Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 March 2016
Muldrow Man Pleads Guilty to Firearm Possession in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that EDWARD ROBERT SALDANA II, age 30, of Muldrow, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2); POSSESSION OF FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A) and POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE AND OXYCODONE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The charge arose from an investigation by the Sallisaw Police Department and the Drug Enforcement Administration. The defendant was indicted in February, 2016.
The Indictment alleged that on or about December 10, 2015, within the Eastern District of Oklahoma, the defendant, knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine and a mixture or substance containing a detectable amount of oxycodone, Schedule II controlled substances.
It further alleges on the same date, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and did so in furtherance of a drug trafficking crime.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not less than 5 years or more than Life imprisonment, up to a $1,500,000.00 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Montana U.S. Attorney's Office and Confederated Salish and Kootenai Tribal Defenders Program to Host Offender Reentry TrainingRead the Press Release
PABLO – The U.S. Attorney’s Office for the District of Montana and the Tribal Defenders Holistic Defense Program of the Confederated Salish and Kootenai Tribes (CSKT) will present a training on offender reentry issues on March 29 and 30, 2016, on the campus of the Salish Kootenai College in Pablo, Montana. The program is titled “Reentry in Tribal Communities” and will focus on the difficulties faced by Native American offenders returning to their communities following incarceration in state and federal prison facilities.
The training is in keeping with efforts in recent years by both the State of Montana and the US Department of Justice to reduce the rate of recidivism and promote successful reintegration into society for individuals who have been incarcerated. The goal of such efforts is to break the cycle of incarceration that is too prevalent in both tribal and non-tribal communities. A critical step towards accomplishing that goal is to address the many obstacles to successful reentry that offenders face following their release. The speakers bring a broad range of knowledge and expertise on how to navigate those obstacles.
The focal point of Day One of the training will be presentations by members of the Muscogee (Creek) Nation Reintegration Program, which has received national recognition and is considered a model for effective reentry programs. The second day will begin with a presentation on historical trauma by University of Montana professor Dr. Gyda Swaney, followed by a presentation by the CSKT Tribal Defenders on the Flathead reentry program, which is currently under development. Their program includes work programs for returning offenders, reentry intake and assessment tools, mental health issues for reentering adults, and the collateral consequences of convictions and special legal issues faced by those returning to the community after incarceration. Day two will also include presentations from Montana Department of Corrections staff. They will discuss the accomplishments of the Montana Reentry Task Force, and the resources available through the Task Force.
“This training reflects a concerted federal, tribal, and state effort to reduce recidivism and promote successful offender reintegration into our tribal communities,” said U.S. Attorney for the District of Montana Mike Cotter. “The diverse range of expertise possessed by the presenters represents a unique opportunity to share and exchange experience and knowledge about successful reentry techniques both on and off the reservation. By continuing to work cooperatively and to share our accumulated knowledge, we can facilitate successful reentry in all Montana communities.”
“This training will give a perspective regarding the circumstances of reentry in a tribal community, said Ann Sherwood, Managing Attorney for the CSKT Tribal Defenders. “We also hope to begin a discussion regarding better ways for the criminal justice system to address mental health and addiction issues in order to reduce recidivism.”
The Training will take place at the Johnny Arlee and Victor Charlo Theatre on the Salish Kootenai Campus.
Mississippi Woman Pleads Guilty in Terrorism InvestigationRead the Press Release
Jaelyn Delshaun Young, 20, of Starkville, Mississippi, pleaded guilty today in the Northern District of Mississippi to conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division.
Young pleaded guilty before Chief U.S. District Judge Sharion Aycock of the Northern District of Mississippi to conspiring with Muhammad Oda Dakhlalla to provide material support to ISIL. Dakhlalla pleaded guilty to the same charge on March 13, 2016. Young was remanded to the custody of the U.S. Marshals Service to await sentencing, which will be scheduled at a later date.
The investigation was conducted by the FBI’s Jackson Division Joint Terrorism Task Force and the Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys Clay Joyner and Bob Norman of the Northern District of Mississippi and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Mississippi Woman Pleads Guilty in Mail Fraud InvestigationRead the Press Release
OXFORD, Mississippi – Tammi Henderson Palasini, 53, of Indianola, Mississippi, plead guilty today in the Northern District of Mississippi to Count One of the attached Indictment which charged her with devising and executing a scheme to defraud investors, including U.S. Military veterans, through the use of the U.S. Mail, in violation of 18 U.S.C. 1341.
The plea was announced by U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Inspector in Charge Tom Noyes of the U.S. Postal Inspection Service, and U.S. Veteran’s Affair Special Agent in Charge John Werner.
Palasini plead guilty before Chief U.S. District Judge Sharion Aycock of the Northern District of Mississippi. Palasini was remanded to the custody of the U.S. Marshals Service to await sentencing which is currently scheduled for August 10, 2016, at 11:00 a.m. in Aberdeen, Mississippi. Palasini faces a maxmium of 20 years in prison, a $250,000 fine or both.
The investigation was conducted by the U.S. Postal Inspection Service and U.S. Department of Veteran Affairs, Office of Inspector General. The case is being prosecuted by the U.S. Attorney’s Office, Northern District of Mississippi.
Minnesota Resident Sentenced for His Role in A Staged RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced today that Michael Bambery, age 21, of Minneapolis, Minnesota, was sentenced for his conviction of theft of property in Indian Country. Magistrate Judge Thomas D. Thalken sentenced Bambery to nine months of incarceration to be followed by a one year term of supervised release. Bambery was further ordered to pay restitution in the amount of $907. Bambery’s accomplice, Steven Schulze, was sentenced to three years of probation on March 28, 2016.
Schulze was an employee of the Pony Express, a convenience store in Rosalie, Nebraska owned by the Winnebago Tribe of Nebraska. On August 15, 2015, Schulze and Bambery executed a staged robbery wherein Bambery purported to rob Schulze at gunpoint. In actuality, Bambery used a toy gun. Schulze gave Bambery $907 from the register. Bambery later reneged on a promise to give Schulze some of the money.
Bambery was on probation in Minnesota at the time of this offense.
This case was investigated by the Federal Bureau of Investigation.
Michigan Man Pleads Guilty to Scheme to Defraud Hospitals and UniversityRead the Press Release
Troy Mitchell McCormick, 50, of Commerce Township, Michigan, pleaded guilty today in U.S. District Court in Nashville, Tenn., to charges of mail and wire fraud, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee for the administration of this case.
During a plea hearing before U.S. District Court Judge Marvin E. Aspen, McCormick admitted engaging in a scheme to defraud while employed as a sales representative and Vice President for Business Development at Emdeon, a company headquartered in Nashville, Tennessee, that provided data and information services to hospitals, health systems and other customers in the healthcare industry. McCormick was responsible for overseeing the accounts of certain Emdeon customers located in Michigan, including Memorial Health Care, Spectrum Health Systems, CareTech Solutions and the University of Michigan.
McCormick admitted that he fraudulently fabricated contracts between his Emdeon and these client customers and that he forged signatures on these contracts. As a result of McCormick’s forged contracts, these customers were billed inflated amounts and McCormick received more than $100,000 in additional incentive compensation.
McCormick further admitted taking certain steps to conceal his scheme, including posing as fictitious hospital and university employees and using email addresses in the names of these fictitious employees to correspond with his employer regarding the fraudulent contracts. McCormick also acknowledged that he manufactured and mailed a counterfeit check for $77,304.12 in an effort to cover up a forged contract.
After Emdeon learned of this scheme, Emdeon refunded any improper payments to its customers.
McCormick is scheduled to be sentenced by Judge Aspen on September 19, 2016.
He faces up to 20 years in prison and a $250,000 fine on each fraud count, in addition to forfeiture of any money or property derived from the fraud. McCormick will also be ordered to pay restitution to any victims of his offense. McCormick’s sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Mexican Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Angel Rayas-Villasenor, of Mexico, was sentenced to time served after pleading guilty today to illegally reentering the United States after having been previously deported. Rayas-Villasenor will be deported to Mexico.
The Nashua Police Department arrested Rayas-Villasenor on November 26, 2015 for driving without a license. Fingerprints taken by the Nashua Police in connection with the arrest matched fingerprints on file relating to the defendant’s prior deportation. ICE ERO Deportation Officers arrested Rayas-Villasenor on December 8, 2015, after observing the Rayas-Villasenor exit his residence. Following his arrest, Rayas-Villasenor was transported to the Manchester ICE Office where he was booked and processed, which included obtaining a full set of his fingerprints. Those fingerprints were submitted to the Department of Homeland Security’s Automated Biometric Identification System (IDENT) for comparison to a database of known fingerprints. IDENT matched the fingerprints to those in the database taken from the defendant on the occasion of his previous deportations to Mexico from Nogales, Arizona on August 6, 2014, and again on August 12, 2014.
The case was investigated by the Nashua Police Department and the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
###
Methamphetamine Dealer Sentenced to 7 YearsRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today a methamphetamine dealer to 84 months in prison, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Paul Corbi, 35, of Asheville, N.C. was also ordered to serve four years of supervised release following his prison term.
Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office and Sheriff Van Duncan of the Buncombe County Sheriff’s Office (BCSO) join U.S. Attorney Rose in making today’s announcement.
According to filed documents and statements made in court, on July 18, 2014, law enforcement conducted a traffic stop of the vehicle Corbi was driving. During the course of the traffic stop, law enforcement recovered methamphetamine, some of which was packaged in a manner consistent with re-distribution, and a set of scales. They also found a plastic bag containing methamphetamine and $3,130 in cash in Corbi’s pockets. In total, law enforcement seized approximately 47 grams of methamphetamine, with an approximate street value of $4,700. According to court records, at the time of his arrest Corbi had several outstanding state arrest warrants, including one for assaulting a government employee in state court. In June 2015, Corbi pleaded guilty to one count of possession with intent to distribute methamphetamine.
Corbi is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled DEA and the Buncombe County Sheriff’s Office. Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Merced Man Arrested for Distributing Marijuana and Cocaine Nationwide Through the Silk Road and Other Dark-Web Marketplace WebsitesRead the Press Release
FRESNO, Calif. — David Ryan Burchard, 38, of Merced, was arrested late Monday, charged in a criminal complaint with distribution of marijuana and cocaine on dark-web marketplaces, including the Silk Road, United States Attorney Benjamin B. Wagner announced. Burchard made his initial appearance on the complaint today before U.S. Magistrate Judge Erica P. Grosjean in Fresno.
According to the criminal complaint, Burchard, using the moniker “Caliconnect,” was a major narcotics vendor on the Silk Road and other dark-web marketplaces, including Agora, Abraxas, and AlphaBay. Dark-web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. In addition, dark-web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin. While not inherently illegal, digital currency is used by dark-web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.
According to the complaint, Burchard accepted orders for marijuana and cocaine on dark-web marketplaces and then mailed the narcotics from post offices in Merced and Fresno County to his customers throughout the United States. Burchard was paid primarily in Bitcoin. Federal law enforcement estimates that Burchard, whose sales through the Silk Road were in excess of $1.4 million before that website was closed, was one of the largest vendors on the Silk Road. The complaint alleges that after federal law enforcement shut down the Silk Road website and arrested its founder in October 2013, Burchard transferred his narcotics business to Agora and then to AlphaBay, which are other dark-web marketplaces.
“The Department of Justice and our federal law enforcement partners will continue to investigate and prosecute major interstate narcotics traffickers,” said U.S. Attorney Wagner. “Those traffickers who believe they can escape the scrutiny of law enforcement by conducting their business on the dark-web and receiving payments in digital currency are mistaken.”
“HSI and our partners are at the forefront of combating illicit activities and financial crimes now seen in virtual currency systems,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Criminals continue to spread their businesses through online black‑markets using digital currency like Bitcoin, however they do not escape the reach of law enforcement who will continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”
“The combined efforts of law enforcement agencies in this type of investigation produce a formidable force against narcotics trafficking,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “With the increase use of the dark-web to facilitate the drug trade and other illicit activities, IRS-CI will continue to trace the complex financial transactions that identify where the money comes from and where it goes.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to vigorously protect the U.S. Mail against all forms of criminal misuse.”
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation, the U.S. Postal Inspection Service, and the Fresno Police Department, with assistance from Trial Attorney Anitha Ibrahim of the U.S. Department of Justice’s Computer Crimes and Intellectual Property Section. Assistant United States Attorney Grant Rabenn is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Louisville Man Detained Pending Charges of Advertising, Receipt and Transportation of Child PornographyRead the Press Release
Defendant is a former high school teacher who was employed by Kentucky Country Day of Louisville
LOUISVILLE, Ky. – A Louisville man formerly employed by Kentucky Country Day of Louisville as a high school physical education teacher and assistant coach with the school’s athletics department was detained today pending trial for violating child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
Matthew Graves, age 38, is charged in an indictment with Advertising, Transportation, and Receipt of child pornography. These charges stem from his use of the social media messaging application KIK.
Matthew Graves was arrested by federal authorities on March 21, 2016, and arraigned on March 24, 2016. Defendant is currently in the custody of the U.S. Marshals Service. A Detention hearing was held today before Magistrate Judge Lindsay. No trial date has been set.
If convicted at trial, defendant faces a mandatory prison term of fifteen years and a maximum of 100 years. He also faces a period of supervised release of between 5 years and life.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the FBI and LMPD.
***
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab "resources."
***
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Leader of Pharmacy Burglary Ring Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
WAYCROSS, GA – Bradley Williams, 33, from Russell Springs, Kentucky, was sentenced yesterday by Chief District Court Judge Lisa Godbey Wood to 151 months in prison following his conviction for possession with intent to distribute oxycodone and hydrocodone, Schedule II controlled substances. Williams was one of three defendants charged and convicted in the United States District Court for the Southern District of Georgia in an indictment involving a pharmacy burglary in Waycross, Georgia.
The evidence presented during multiple guilty plea and sentencing hearings showed that Williams and his coconspirators traveled from Russell Springs, Kentucky to Waycross on January 25, 2015, where they broke into a local pharmacy and stole more than 9,000 oxycodone and hydrocodone pills. The group intended to distribute the stolen drugs in Russell County, Kentucky. Williams was the leader of the group and had a long history of similar conduct dating back to 2004. His history of pharmacy burglaries included locations in Ohio, Tennessee and Kentucky.
U.S. Attorney Edward Tarver said, “Williams and his cohorts traveled far and wide in search of a vulnerable pharmacy from which to steal powerful pain meds. The ill-gotten fruit of their crime spree was intended to put money in their pockets and to fuel drug addictions in their home towns. Fortunately, the excellent working relationship between the DEA and local police forces in Georgia and Kentucky put an end to their criminal activities.”
In addition to Bradley Williams, the other Defendants convicted and sentenced as part of this prosecution were:
Stephen Williams, 37, Russell Springs, Kentucky, 27 months in prison; and,
Shawn Weddle, 34, Windsor, Kentucky, 32 months in prison.
The prosecution of this case resulted from an investigation conducted by the DEA, the Waycross Police Department, the Russell Springs (KY) Police Department, the Jamestown (KY) Police Department, the Russell County (KY) Sheriff’s Office, and the United States Marshal’s Service. The case was prosecuted by Assistant United States Attorney Karl Knoche. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Laurel Resident Sentenced for His Role in A Staged RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced today that Steven Schulze, age 29, of Laurel, Nebraska, was sentenced for his conviction of theft of property in Indian Country. Magistrate Judge Thomas D. Thalken sentenced Schulze to three years of probation and ordered him to pay restitution in the amount of $907. Schulze’s accomplice, Michael Bambery, is scheduled for sentencing on March 31, 2016.
Schulze was an employee of the Pony Express, a convenience store in Rosalie, Nebraska owned by the Winnebago Tribe of Nebraska. On August 15, 2015, Schulze and Bambery executed a staged robbery wherein Bambery purported to rob Schulze at gunpoint. In actuality, Bambery used a toy gun. Schulze gave Bambery $907 from the register. Bambery later reneged on a promise to give Schulze some of the money.
This case was investigated by the Federal Bureau of Investigation.
Last of the Defendants Involved in the Wal-Mart Check Cashing Scheme Pleads GuiltyRead the Press Release
Montgomery, Ala. – Audrey Valisha Porterfield, 44, of Montgomery, Alabama, pleaded guilty yesterday to conspiring to steal federal funds, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Previously, all six of Porterfield’s co-defendants pleaded guilty to the same offense. Those co-defendants were: Courtney Deon Gardner, 26; Joye Nicole Perdum, 31; Tamala Caprice Avery, 34; Tocory Dewayne Washington, 31; Brittney Kae Ball, 33; and Joshua Jerome Bean, 25, all from Montgomery. The defendants’ convictions stemmed from their involvement in a scheme to cash fraudulent United States Treasury checks at the Wal-Mart Stores, Inc. store on Ann Street in Montgomery.
According to court documents, Gardner and Ball worked as tellers in the money center of the Ann Street Wal-Mart store. Porterfield was a cashier. While on their jobs, Gardner, Ball, and Porterfield cashed fraudulent and stolen Treasury checks brought to the store by the other members of the scheme—Washington, Bean, Perdum, and Avery. The seven co-conspirators shared the proceeds of the fraudulently cashed checks. The investigation revealed that the scheme resulted in a total loss of around $290,000.00 to the victims—including the United States Government and Wal-Mart Stores, Inc.
Each defendant faces a maximum sentence of 5 years in federal prison. Chief United States District Judge Keith Watkins will sentence all defendants on July 20, 2016 at 9:30 AM.
The case was investigated by the United States Secret Service and the Montgomery Police Department. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Jury Convicts Mesquite Man of Trafficking in MarijuanaRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has returned guilty verdicts against Edilberto Maso Diaz, 55, of Mesquite, on all counts as charged in a marijuana conspiracy, announced United States Attorney Kenneth Magidson. The jury deliberated for less than five hours today before convicted Diaz of conspiracy to possess with intent to distribute marijuana and three separate counts of possession with intent to distribute marijuana.
The conspiracy, which occurred primarily in 2013, involved more than 2,200 kilograms of marijuana.
During the two-day trial, the government presented testimony that Diaz owned a small trucking company, E & E Trucking, and conspired with others to transport marijuana within his tractor trailers concealed amongst a load of produce. One of the co-conspirators would obtain the marijuana from Mexico. Two drivers that worked for E & E Trucking would drive one of Diaz’s tractor trailers to the Rio Grande Valley to pick up a load of produce and would then proceed to another location to load the marijuana.
The government presented 10 witnesses which included testimony regarding three seizures of marijuana at the Border Patrol Checkpoint near Falfurrias - 1,110 kilograms, 348 kilograms and 815 kilograms on March 27, May 10, and Sept. 6, 2013, respectively. In each instance, law enforcement arrested the driver and seized the marijuana that was concealed in Diaz’s tractor trailers. Each seizure of marijuana was intended for delivery to the Dallas area and the proceeds shared amongst Diaz and his co-conspirators.
Senior U.S. District Judge Janis Graham Jack presided over the trial and will set sentencing at a later date. At that time, Diaz faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine.
The charges are the result of an investigation conducted by the Drug Enforcement Administration. Assistant U.S. Attorneys Chad W. Cowan and Amanda Gould are prosecuting the case.
Jury Convicts Binghamton Man on Eight Counts of Sex Trafficking and Prostitution of MinorsRead the Press Release
BINGHAMTON, NEW YORK –Antonio Ballard, 25, of Binghamton, New York, was convicted yesterday on eight counts of engaging in a sex trafficking and prostitution business involving three minor girls. The verdict followed a week-long trial, announced United States Attorney Richard S. Hartunian. Ballard faces a minimum sentence of 10 years and up to life in prison when he is sentenced on July 27, 2016 by Senior United States District Judge Thomas J. McAvoy. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
"The exploitation of minors in the commercial sex trade represents inhumanity in its worst form. It violates our laws, shocks our conscience and will be vigorously prosecuted," said United States Attorney Hartunian.
"The sexual exploitation of minors will not be tolerated," said FBI Special Agent in Charge Andrew W. Vale. "Mr. Ballard's crimes are as shocking as they are heinous and thanks to the combined efforts of law enforcement, our community is safe from a depraved and dangerous man."
The evidence at trial showed that from August 2014 through December of 2014, in Broome County, New York, Ballard recruited three minor girls to engage in commercial sex acts and prostitution with men. Ballard benefitted from prostituting these minors by receiving 50% of the proceeds that they earned from performing sex acts. Using a cellular telephone, Ballard caused the minors to be photographed in sexually provocative poses and then posted these images on an internet advertising site.
This case was investigated by the Federal Bureau of Investigation ("FBI")-Albany Division, New York State Police, and the Binghamton Police Department and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Judge Orders New Jersey Investor to Serve a Year in Prison for Bid Rigging at Tax Lien AuctionsRead the Press Release
Thirteen Individuals and Three Companies Have Been Convicted or Pleaded Guilty in the Investigation to Date
A former bidder for a Pennsylvania tax liens investment company was sentenced to serve a prison term of 12 months and one day and pay a $25,000 criminal fine for conspiring to rig bids at New Jersey tax lien auctions, the Department of Justice announced today.
James Jeffers Jr., of Mount Holly, New Jersey, was sentenced today by U.S. District Judge Susan D. Wigenton of the District of New Jersey. Jeffers was convicted by a jury on Oct. 2, 2015 after a multi-week criminal trial. The jury found Jeffers guilty of violating Section One of the Sherman Act by conspiring to allocate and rig bids at municipal tax lien auctions that were held in the state of New Jersey from at least 1998 until at least February 2009. Jeffers’s conviction resulted from his conduct as a bidder for Crusader Servicing Corp., which pleaded guilty in September 2012 to participating in the same conspiracy. Jeffers also bid for Crusader’s successor company during the conspiratorial period.
Jeffers participated with others in the conspiracy not to bid against one another at municipal tax lien auctions. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens which earned a higher interest rate. Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition, the department said.
Today’s charge is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
This ongoing investigation is being conducted by the Antitrust Division’s New York Office and the FBI’s Atlantic City, N.J., office. Including Jeffers, a total of thirteen individuals and three companies have been convicted or have pleaded guilty as part of the investigation. Anyone with information concerning bid rigging or fraud related to municipal tax lien auctions should contact the Antitrust Division’s New York Office at 212-335-8000, visit www.justice.gov/atr/contact/newcase.htm or contact the Atlantic City Resident Agency of the FBI at 609-677-6400.
Jefferson County, Kentucky, Man Sentenced to 92 Months for an Attempted Murder-For-Hire SchemeRead the Press Release
LOUISVILLE, Ky. – A Jefferson County, Kentucky, man was sentenced today in United States District Court, by Senior Judge Charles R. Simpson III, to 92 months in prison followed by a three year period of supervised release, for an attempted murder-for-hire scheme, announced United States Attorney John E. Kuhn, Jr.
Earl D. Grigsby, 52, was charged with use of interstate commerce facilities in the commission of murder-for-hire, in a single count indictment on January 21, 2015. Grigsby pleaded guilty to the charge on January 8, 2016. The defendant is currently in federal custody, but was in the custody of the Louisville Metro Department of Corrections at the time of the charged incident.
According to the plea agreement, during the late summer months of 2014, defendant Grigsby attempted to find someone to kill his wife, with whom he was involved in a divorce. The FBI learned of the plan and arranged for an undercover FBI agent, posing as a “hit man” to visit with the defendant, who by this time was serving a jail sentence. The undercover FBI agent discussed the plan with the defendant, at one point telling the defendant that he would "kill the [expletive]" for "25 grand." This jailhouse conversation was conducted telephonically in jail and was recorded by the jail phone system and on a concealed video recorder used by the undercover FBI agent. The defendant planned to pay the undercover FBI agent with the proceeds of an insurance policy on his wife. After the meeting with the "hit man," the defendant wrote a letter to an associate which refers to "Dutch" (the undercover FBI agent) and tells the associate that "Dutch" was going to take care of "that other truck" and wants to make sure "that other truck ... will not come back on us." The defendant placed the letter in the mail on or about October 15, 2014.
This case was prosecuted by Assistant United States Attorney Thomas W. Dyke and was investigated by the Federal Bureau of Investigation (FBI).
Indictment: Clerk Stole $13,000 from Post OfficeRead the Press Release
WICHITA, KAN. - A postal clerk was indicted today on a federal charge of stealing more than $13,000 from the Rock, Kan., post office where she worked, U.S. Attorney Barry Grissom said.
Micah E. Hutchinson, 25, Arkansas City, Kan., is charged with one count of employee theft from the U.S. Postal Service.
The indictment alleges that from October to December 2015 Hutchinson issued to herself money orders worth approximately $13,780. She cashed the money orders and used the money for her own benefit.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Postal Service – OIG investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER GRAND JURY INDICTMENTS
Lindsay Lee McElfresh, 39, Le Roy, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred June12, 2014, in Coffey County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years on the distribution charge, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. The Wichita Police Department and the Kansas Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Steven Alfaro (alias Felipe Alfaro), 27, Wichita, Kan., and Danielle K. Blaes, 27, are charged with two counts of possession with intent to distribute methamphetamine, two counts of possessing a firearm in furtherance of drug trafficking, and two counts of unlawful possession of a firearm by users of controlled substances.
In addition, Alfaro is charged with one count of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of a drug trafficking crime, three counts of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of a firearm by a user of controlled substances, and one count of unlawful possession of ammunition following a felony conviction.
The crimes are alleged to have occurred in 2015 and 2016 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm or ammunition following a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a firearm by users of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Gabriel Romero-Miramontes, 36, a citizen of Mexico, is charged with two counts of unlawful possession of a firearm or ammunition while unlawfully in the United States. The crimes are alleged to have occurred Feb. 2, 2016, in Sedgwick County, Kan.
If convicted he faces a maximum of 10 years in federal prison and a fine up to $250,000 on each count. The Kansas Highway Patrol and Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Arturo Garcia-Olivas, 25, a citizen of Mexico, in charged with unlawfully re-entering the United States after being deported. He was found March 25, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Randy J. Johnson, 30, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 13, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Guatemalan Man Guilty of Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Victor Lopez, of Guatemala, pleaded guilty to illegally reentering the United States after having been previously deported.
On February 15, 2016, a New Hampshire State Police Trooper stopped a vehicle for speeding on I-93 in Windham. There were five individuals in the vehicle. Two of the individuals provided the Trooper with foreign ID cards, and the defendant and two others refused to provide identification and refused to answer any questions. The Trooper requested that the ICE ERO Deportation Officer respond to assist with the identification of those three individuals in the vehicle. Using a mobile identification unit, one of the Deportation Officers submitted the defendant’s fingerprints to the Department of Homeland Security’s Automated Biometric Identification System (IDENT) for comparison to databases of known fingerprints. IDENT indicated that the fingerprint impressions submitted were a match to those taken from the defendant, Victor Lopez, on the occasion of his previous deportation from the United States to Guatemala.
Following the receipt of this information, the Deportation Officer asked the defendant if he had any immigration documents that allowed him to be present in the U.S. to which he replied, “No.” A full set of digital fingerprint impressions were obtained from the defendant and again submitted to the Department of Homeland Security’s Automated Biometric Identification System (IDENT) which confirmed that the fingerprints were an exact match to prints taken from the defendant on the occasion of his previous deportation to Guatemala in 2012.
Mr. Lopez’s sentencing has been set for July 7, 2016, and he will again be deported after serving his sentence.
The case was investigated by the Department of Homeland Security and the New Hampshire State Police and is being prosecuted by Assistant U.S. Attorney Alfred Rubega.
###
Fresno Police Officer Receives Award for His Contributions to the Mission of the Department of JusticeRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2015 winner of the Eastern District of California Outstanding Investigator Award for the Fresno Division. This is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state and local law enforcement in addressing public safety issues in this region.
The 2015 Fresno Division’s Outstanding Investigator Award goes to Fresno Police Detective David Fries for his work on cases of sex trafficking of minors. Detective Fries is deserving of recognition for his diligent, principled work. With cases that are difficult to build and involve reluctant and sometimes antagonistic victims, Det. Fries works tirelessly until the case is closed. His efforts have been essential to the successful prosecution of these cases.
U.S. Attorney Wagner stated: “It is my honor to recognize David Fries for the difficult and important work of bringing to justice those who prey upon some of the most vulnerable members of our community. It is in large part due to the hard work of Detective Fries and his colleagues that the Eastern District of California is seen as a national leader in the investigation and prosecution of the commercial exploitation of children. We thank him for his service.”
Recent cases that Detective Fries has investigated are:
Maurice Hunt: This case involved the trafficking of a 13-year-old girl. Hunt sexually assaulted, beat and trafficked this girl in Fresno and Bakersfield for 10 days. Hunt represented himself at trial and was convicted of sex trafficking of a minor, obstruction of justice, and witness tampering charges. His 50-year prison sentence was recently upheld on appeal.
Tyrell Richmond: This case involved three 16-year-old runaway girls trafficked by Richmond in Fresno and Visalia. They were required to turn over all the cash they earned and were not permitted to leave their motel room, other than to get ice. Richmond pleaded guilty on December 14, 2015, and is scheduled to be sentenced April 11, 2016, for sex trafficking of a minor.
Tryvell Powell: This case involved the sex trafficking of a 16-year-old girl in Fresno for about five months by Powell in which he forced the victim to earn a quota of $300 per day. Powell threatened to kill her and her unborn child if she left him. Powell pleaded guilty to enticement of a minor and was sentenced to 10 years and 10 months in prison.
Four Indicted for Meth Conspiracies in Jasper, Greene CountiesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four individuals were indicted by a federal grand jury today in two separate and unrelated conspiracies to distribute methamphetamine in Jasper County, Mo., and in Greene County, Mo.
USA v. Soto-Garcia, et al.
Santiago Soto-Garcia, 23, Destiny O’Brien, 20, and Michael L. Gonzalez, also known as “Chavez,” 23, were charged in a three-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s superseding indictment replaces an indictment returned by the grand jury on Aug. 25, 2015, and includes two additional charges.
According to court documents, law enforcement officers had received information that Soto-Garcia and O’Brien were multiple-pound distributors of methamphetamine. Members of the Ozark Drug Enforcement Team were conducting surveillance at a Joplin, Mo., residence when they saw a 2006 BMW driven by Soto-Garcia leaving the residence. The vehicle was stopped and officers saw two pistols on the floorboard by the feet of Gonzalez, a passenger in the rear seat. O’Brien was a passenger in the front seat.
All of the defendants were told to get out of the car. Both Soto-Garcia and O’Brien were arrested for resisting arrest after struggling with officers. A K-9 alerted to the presence of narcotics in the BMW. Officers found a package that contained 501 grams of methamphetamine in O’Brien’s purse, and found approximately seven grams of methamphetamine on O’Brien.
Today’s indictment alleges that Soto-Garcia, O’Brien and Gonzalez participated in a conspiracy to distribute methamphetamine in Jasper County from Nov. 1, 2013, to Aug. 11, 2015. They are also charged together, as in the original indictment, in one count of possessing methamphetamine with the intent to distribute.
Soto-Garcia, O’Brien and Gonzalez are also charged together in one count of aiding and abetting each other to possess firearms in furtherance of the drug-trafficking conspiracy. They allegedly possessed a Hi-Point .40-caliber firearm and a Kel-Tec .223-caliber firearm on Aug. 11, 2015.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Jody Larison. It was investigated by the Drug Enforcement Administration, the FBI, the Missouri State Highway Patrol, the Ozark Drug Enforcement Team, the Joplin, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
USA v. Nemecek
Caleb E. Nemecek, 25, of Chadwick, Mo., was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Nemecek participated in a conspiracy to distribute methamphetamine in Greene County, Mo., and Jasper County, Mo., from Nov. 7, 2014, to Nov. 17, 2015. The indictment also charges Nemecek with two counts of possessing methamphetamine with the intent to distribute.
Nemecek is also charged with possessing a firearm in furtherance of the drug-trafficking conspiracy. Nemecek allegedly possessed a Sig Sauer handgun on Nov. 7, 2014.
This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Missouri State Highway Patrol, the Springfield, Mo., Police Department; the Oklahoma State Highway Patrol; the Greene County, Mo., Sheriff’s Department; the Joplin, Mo., Police Department; the Ozarks Drug Enforcement Team; and the Drug Enforcement Administration.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Former Pastor of Louisville Parish Sentenced to 33 Months for Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky, parish, Stephen A. Pohl, 57, was sentenced today in United States District Court, by United States District Judge David J. Hale, to 33 months in prison followed by a life term of Supervised Release for violating federal child exploitation laws, announced United States Attorney John E. Kuhn, Jr. There is no parole in the federal criminal justice system.
“Viewing child pornography over the internet is a crime with untold and horrific consequences for these defenseless child victims,” said United States Attorney John Kuhn. “Protecting children is a national priority of the Department of Justice. My Office will continue to prosecute those who harm the most vulnerable and those who perpetuate these crimes through their internet devices.”
Pohl pleaded guilty to a single charge of knowingly accessing, via the Internet, with intent to view material that contained images of child pornography between January and August 2015. Under federal law, child pornography involves visual depictions of minors under the age of 18 engaged in sexually explicit conduct. Pohl was initially charged with the same offense by criminal complaint on August 21, 2015. The complaint was filed after law enforcement officials executed two federal search warrants on August 12, 2015, in the work and living areas used by Pohl in the parish office and rectory of St. Margaret Mary Catholic Community, located at 7813 Shelbyville Road, in Louisville, Kentucky.
The investigation began after a child told his mother that Pohl had taken pictures of him that made him feel “weird.” When the child’s parents confronted Pohl about the pictures of their son, they saw similar pictures of another child and reported the matter to law enforcement. Law enforcement officials obtained the search warrants based on the inappropriate images. It is important to note that no child pornography images of Saint Margaret Mary school children were found on the digital devices seized and examined as a result of the search warrants. All child pornography evidence and the charge in this case relate to Pohl’s online searches and viewing.
Law enforcement officials arrested Pohl in Indian Rocks Beach, Florida, on Friday evening, August 21, 2015. Pohl was then held at the Pinellas County Jail until his transfer to the custody of the United States Marshals Service. He appeared in United States District Court for the Western District of Kentucky on September 2, 2015. After pleading guilty to the charge in January 2016, Pohl surrendered to the United States Marshals Service where he will remain until designation by the Bureau of Prisons.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Federal Bureau of Investigation in conjunction with Louisville Metro Police Department’s Crimes Against Children Unit conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Navy Noncommissioned Officer Sentenced to 24 Months in Prison for Accepting Bribes While Serving in AfghanistanRead the Press Release
WASHINGTON – A former Navy noncommissioned officer was sentenced today to 24 months in prison for accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (OSI) made the announcement.
Donald P. Bunch, 46, of Pace, Florida, was sentenced by Senior U.S. District Judge Roger Vinson of the Northern District of Florida, who also ordered Bunch to pay a $5,000 fine and to forfeit $25,000. Bunch pleaded guilty on Sept. 18, 2015, to a one-count information charging him with accepting bribes.
According to the plea agreement, from February 2009 to August 2009, Bunch worked as a U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan, Bunch admitted.
Bunch was responsible for replenishing food and supplies at the HA Yard and for selecting vendors from a pre-determined list to provide the necessary items, according to his plea. In connection with his guilty plea, Bunch admitted that his predecessor had instructed him to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered money for the purpose of influencing their contracts. Bunch admitted that he accepted a total of approximately $25,000 in bribes from the vendors and as a result, he secured on their behalf more frequent and lucrative contracts. Bunch sent greeting cards stuffed with proceeds of the bribes to his wife and used the money to pay for the construction of a new home.
The FBI, SIGAR, CID, DCIS and OSI investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida prosecuted the case.
Former Navy Noncommissioned Officer Sentenced to 24 Months in Prison for Accepting Bribes While Serving in AfghanistanRead the Press Release
A former Navy noncommissioned officer was sentenced today to 24 months in prison for accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (OSI) made the announcement.
Donald P. Bunch, 46, of Pace, Florida, was sentenced by Senior U.S. District Judge Roger Vinson of the Northern District of Florida, who also ordered Bunch to pay a $5,000 fine and to forfeit $25,000. Bunch pleaded guilty on Sept. 18, 2015, to a one-count information charging him with accepting bribes.
According to the plea agreement, from February 2009 to August 2009, Bunch worked as a U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan, Bunch admitted.
Bunch was responsible for replenishing food and supplies at the HA Yard and for selecting vendors from a pre-determined list to provide the necessary items, according to his plea. In connection with his guilty plea, Bunch admitted that his predecessor had instructed him to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered money for the purpose of influencing their contracts. Bunch admitted that he accepted a total of approximately $25,000 in bribes from the vendors and as a result, he secured on their behalf more frequent and lucrative contracts. Bunch sent greeting cards stuffed with proceeds of the bribes to his wife and used the money to pay for the construction of a new home.
The FBI, SIGAR, CID, DCIS and OSI investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida prosecuted the case.
Former Concord Resident Sentenced to over Three Years in Prison for Religious Hate CrimeRead the Press Release
OAKLAND - Hugo John Scherzberg was sentenced to 41 months in prison yesterday for his religious hate crime conviction in relation to the March 20, 2010, fire at a church in Pittsburg, Calif., announced Acting United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill A. Snyder.
Scherzberg, 48, formerly of Concord, admitted in his plea agreement to using gasoline and a lighter to set fire to the Church of the Living God, Christian Workers for Fellowship, Temple #21 (Workers Fellowship) located on Harbor Street in Pittsburg. Scherzberg admitted he set fire to the church because he felt God had dealt him a poor hand in life. He also admitted he chose the Pittsburg church in particular because it had the words “Living God” in its name and it was “readily accessible.” At the time of the fire, a separate congregation, Shiloh Missionary Baptist Church, also rented the church building for religious services. Scherzberg admitted that his actions caused significant damage to the entire church building and property within the building, and that almost the entire church building required reconstruction. Losses totaled more than $490,000, according to insurance claims.
Scherzberg was indicted by a federal grand jury on March 5, 2015, on one count of burning the church building because of its religious character, in violation of 18 U.S.C. §§ 247(a)(1) and (d)(3), and on a second count of arson of a building used in activities affecting interstate commerce, in violation of 18 U.S.C. § 844(i). Scherzberg pleaded guilty to the first charge on January 13, 2016.
Scherzberg has been detained since his arrest on November 23, 2014, for setting fire to another church, the Pilgrim Community Church of San Francisco. He was prosecuted, convicted, and sentenced in state court to an 18-month jail term for that incident before being taken into custody by federal authorities and making his first federal court appearance on May 11, 2015. He will begin serving his sentence immediately .
The Honorable Haywood S. Gilliam, Jr., U.S. District Judge, in Oakland ordered the sentence. In addition to the term of imprisonment, Judge Gillium ordered the defendant to 3 years supervised release and $491,940.99 in restitution. In ordering the sentence, Judge Gilliam noted, among other things, that the defendant’s actions likely created fear and terror in the community, and that this sentence reflects the seriousness of the crime.
Assistant U.S. Attorney Andrew S. Huang prosecuted this case with the assistance of Vanessa Quant, Trina Khadoo, and Stephanie Mitchell. The Civil Rights Division, U.S. Department of Justice, also assisted in the prosecution. The prosecution is the result of an investigation by the ATF and the Contra Costa County Fire Investigation Unit, with assistance from the San Francisco Fire Department, San Francisco Police Department, and San Francisco District Attorney’s Office.
FnD Gang Members Sentenced for Racketeering, Narcotics, and Violent Crimes, including the Mother’s Day ShootingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that four gang members from the Frenchmen/Derbigny gang, or “FnD,” were sentenced today for charges related to racketeering, narcotics, and crimes of violence. Among those violent crimes was the shooting of a second-line parade on Mother’s Day, May 12, 2013, in which twenty people suffered gunshot-related injuries.
The four defendants were all brothers and members of FnD, a gang that operated in the Seventh Ward of New Orleans with its hub at Frenchmen and North Derbigny Streets. The defendants included the leader, TRAVIS SCOTT, a/k/a “Trap,” a/k/a “Slim,” age 31, SHAWN SCOTT, a/k/a “Shizzle,” age 27; STANLEY SCOTT, a/k/a “Stizzle,” age 24; and AKEIN SCOTT, a/k/a “Keemy,” age 22. SHAWN SCOTT, STANLEY SCOTT, and AKEIN SCOTT all pled guilty on September 9, 2015. TRAVIS SCOTT pled guilty on October 13, 2015.
U.S. District Judge Ivan L.R. Lemelle sentenced TRAVIS and AKEIN SCOTT to life imprisonment plus 10 years consecutive, to be followed by 5 years of supervised release. SHAWN and STANLEY SCOTT were each sentenced to 40 years of imprisonment with credit for time served, to be followed by 5 years of supervised release. Restitution to the victims will be determined at a later date.
According to court documents, the FnD gang was an enterprise engaged in racketeering under federal law. TRAVIS SCOTT, AKEIN SCOTT, SHAWN SCOTT, and STANLEY SCOTT, as members of this gang, conspired to commit numerous overt acts in furtherance of the gang’s activities. Gang members sold illegal drugs, such as heroin and crack cocaine, and they committed acts of violence, including shootings. FnD members often sold drugs in the Frenchmen Meat Market, a convenience store located at the corner of Frenchmen and North Derbigny Streets. FnD members used intimidation, violence, and threats of violence to maintain the gang’s control over turf that extended from Elysian Fields Avenue, North Johnson Street, the I-10 Interstate Highway, St. Anthony Street, and North Claiborne Avenue.
Pursuant to plea agreements, TRAVIS SCOTT pled guilty to four counts in the Third Superseding Indictment, including one shooting. STANLEY SCOTT pled guilty to six counts, including perpetrating three shootings. SHAWN SCOTT pled guilty to five counts, which included two shootings. AKEIN SCOTT pled guilty to eight counts of the Third Superseding Indictment, which included his perpetrating five shootings in New Orleans. AKEIN SCOTT and SHAWN SCOTT pled guilty to the Mother’s Day shooting that occurred on May 12, 2013. All four defendants pleaded guilty to racketeering conspiracy and conspiracy to distribute over one kilogram of heroin.
Additional FnD members JEREMIAH JACKSON, GRALEN BROWN, BRIAN BENSON, and RICHMOND SMITH have previously pled guilty to gun and drug-related charges and are awaiting sentencing. CRYSTAL SCOTT pled guilty to drug-related charges and was previously sentenced to 120 months in prison, followed by 5 years of supervised release and a $100 special assessment.
This prosecution was the product of the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang Unit (“MAG”). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
U.S. Attorney Polite praised the work of the ATF as part of the MAG Unit in investigating this matter. Assistant United States Attorneys Matthew Payne and Shirin Hakimzadeh, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office were in charge of the prosecution.
Federal inmate charged with possession of a controlled substanceRead the Press Release
A federal grand jury returned a one-count indictment charging Terrance Bonner, 44, with possession of a prohibited object by a federal inmate, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 5, 2014, Bonner, an inmate in the Elkton Federal Correctional Institution, possessed AB-FUBINACA, a controlled substance.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Elkton Federal Correctional Institution. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Court Permanently Bars Detroit-Area Tax Preparer from Preparing Federal Tax ReturnsRead the Press Release
The U.S. District Court for the Eastern District of Michigan has issued an order permanently barring Mia Jordan, a Southfield, Michigan, tax preparer, from preparing federal tax returns for others, the Justice Department announced today. Jordan consented to the civil injunction order.
According to the complaint, Jordan operated a business that provided tax return preparation support services under the name MIA-FILE as recently as 2014. The complaint states that Jordan, through MIA-FILE, prepared approximately 371 tax returns for tax processing years 2013 and 2014. The Internal Revenue Service (IRS) closed examinations on 94 of the tax returns prepared by MIA-FILE, and 87, or 95 percent, of those examined returns resulted in additional tax assessments, the complaint alleges. Many of the returns that Jordan prepared for customers allegedly contained false deductions and credits, including inflated deductions for charitable contributions, home mortgage interest and real estate taxes. The complaint also states that the returns manipulated taxpayer data for the purposes of claiming the Earned Income Tax Credit, for which the customer would otherwise be ineligible.
The United States alleged in the complaint that the actual purpose of MIA-FILE was to permit Jordan’s cousin, Nataki Davis, formerly known as Nataki Barnes, to continue to prepare tax returns herself and together with Jordan, despite an IRS investigation into Davis’s own abusive tax return preparation practices. In June 2013, Davis was enjoined for a period of five years from preparing tax returns either individually or through any individual or entity working in concert with her. On Jan. 8, 2016, the U.S. District Court for the Eastern District of Michigan entered an agreed injunction order permanently barring Davis from preparing returns.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Duenweg Sex Offender Pleads Guilty to Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a convicted sex offender in Duenweg, Mo., pleaded guilty in federal court today to receiving child pornography over the Internet.
Paul L. Sipeer, 65, of Duenweg, pleaded guilty before U.S. District Judge M. Douglas Harpool to receiving child pornography over the Internet. Sipeer has been in federal custody without bond since his arrest in January 2016.
Sipeer is a registered sex offender with a 1992 conviction for sexual abuse in the first degree involving the physical harm of a 7-year-old child. According to court documents, Sipeer admitted that he sexually molested at least three other children besides the victim of the crime resulting in his conviction. Sipeer also admitted that he began accessing child pornography within one year of his release from prison in 1994.
By pleading guilty today, Sipeer admitted that he received child pornography between July 1, 2012, and Jan. 26, 2016.
According to court documents, Homeland Security Investigations (HSI) agents learned that Sipeer was conducting online money transfers between $10 and $20 several times a month during the summer of 2015 to individuals in the Philippines. Money transfers, conducted through Western Union and MoneyGram, are often used to send funds to pay for sexual performances by children in the Philippines. In prior investigations conducted by HSI, small amounts of money, typically between $5 and $100, are often sent to individuals in the Philippines. Often the senders would send additional payments for continued and/or repeat performances.
Upon further investigation, agents learned that Sipeer had been making money transfers to various individuals in the Philippines since January 2013, in amounts ranging up to $480.
Law enforcement officers contacted Sipeer at his residence on Jan. 26, 2016. Sipeer told the officers he sent money to the Philippines to pay for “sex shows.” Sipeer said he has sent approximately $1,200 to the Philippines in total. Sipeer also confessed that he had been actively downloading images depicting child pornography from the Internet. Several images of child pornography, depicting children younger than 10 years old, were located on Sipeer’s computer.
Under federal statutes, Sipeer is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
District Man Pleads Guilty in Fraud Schemes Targeting Tenants at Apartment Complex He ManagedRead the Press Release
WASHINGTON – Tyi Michael Tunstall, 30, of Washington, D.C., has pled guilty to charges stemming from various schemes in which he used personal identifying information from others to steal more than $75,000, announced U.S. Attorney Channing D. Phillips and James M. Murray, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
At the time of these offenses, Tunstall was on probation in an earlier fraud case. He used some of the proceeds of these schemes to pay his court-ordered restitution in the earlier case.
Tunstall pled guilty on March 28, 2016 to wire fraud and obstruction of justice. He is to be sentenced June 13, 2016 by the Honorable James E. Boasberg of the U.S. District Court for the District of Columbia. Under federal sentencing guidelines, he faces a likely sentence of 33 to 41 months in prison. He also will be required to pay restitution and a forfeiture money judgment.
Tunstall previously pled guilty in September 2013 to a charge of mail fraud. He was sentenced in March 2014 in the U.S. District Court for the District of Columbia to five years of probation, with special conditions that he complete six months of home confinement to be followed by 20 weekends in jail. He also was ordered to pay $61,543 in restitution in that case.
According to a statement of offense, signed by the defendant as well as the government, Tunstall worked from July 2014 to July 2015 for a company that managed a senior citizens’ apartment complex in Washington, D.C., first as an office assistant and later as the complex’s manager. From Sept. 8 through Oct. 27, 2015, he worked at a staffing agency that assigned him to a call center for three credit unions. He used both workplaces as a means to carry out his schemes, as outlined below:
Identity Theft and Fraud at the Apartment Complex:
In one scheme, Tunstall stole the personal identifying information of an 83-year-old resident of the complex and used the information to open multiple accounts at financial institutions from March 2015 to October 2015. He used one card multiple times, causing American Express to incur $1,785 in losses. Tunstall also placed orders on a credit account at Montgomery Ward, causing $225 in losses.
In a separate scheme, Tunstall diverted to himself at least 22 checks and money orders from tenants to the apartment complex, totaling $8,723. These checks and money orders were intended to be used for rent, cable and community room rental. Tunstall added his name to the payee and/or memo line of the checks and money orders and kept them for his personal use.
Tunstall also created 18 additional counterfeit checks, using the names of the apartment complex and two other persons whose information he obtained. Some of these checks were returned, but Tunstall eventually received $1,640.
Identity Theft and Fraud at the Call Center:
While working at the credit union call center, Tunstall accessed a credit union member’s bank accounts. He created a counterfeit check using this account information in the amount of $61,525 and deposited it into his personal bank account. He also transferred $20,000 of the victim’s money to an account that he controlled and that he had set up in the name of the 83-year-old victim.
Tunstall used $52,512 of the proceeds from these schemes to pay off his restitution balance in the earlier case at the U.S. District Court for the District of Columbia.
**
In addition to these acts, while he was on probation, Tunstall made a series of false representations to his probation officer and submitted forged documents to the Court, regarding his employment and other issues. This led to a probation revocation hearing on Oct. 29, 2015. At that time, Tunstall told the Court that he was able to pay the balance of his restitution because his grandmother had provided the money. In fact, as Tunstall well knew, he used the money that he had fraudulently obtained from others to pay off the restitution balance. His probation was revoked after the hearing and he has remained in custody ever since.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Murray commended the work of those who investigated the case from the Secret Service’s Washington Field Office. They also expressed appreciation for the assistance provided by the Montgomery County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Nicole Hinson and Assistant U.S. Attorney John Marston. Finally, they acknowledged the work of Assistant U.S. Attorney Peter C. Lallas, who is prosecuting the matter.
Defendant sentenced to 21 months in prison for reentering the United States illegallyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a defendant was sentenced Monday to 21 months in prison on one count of re-entry of a removed alien.
Jose Juan Rodriguez-Guarda, 32, of Chiapas, Mexico, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of re-entry of a removed alien. According to the October 27, 2015 guilty plea, Rodriguez-Guarda had illegally re-entered the United States multiple times since 2009 after being removed. In June 2012, Rodriguez-Guarda was removed as an aggravated felon from the United States after being convicted of attempted human smuggling in Arizona in 2011.
Rodriguez-Guarda was arrested in Virginia on January 25, 2013, two days after he had kidnapped his girlfriend at knife point in Bossier Parish and took her to Virginia where he already had their 7-year-old daughter. The defendant pleaded guilty to simple kidnapping in Bossier Parish District Court on June 22, 2015.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Defendant sentenced to 13 months in prison for reentering the United States multiple times illegallyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican national was sentenced Monday to 13 months in prison on one count of re-entry of a removed alien.
Saul Abundis Cordova, 39, of Ocampo, Mexico, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of re-entry of a removed alien. According to evidence presented at the November 17, 2016, guilty plea, Shreveport Police arrested Cordova on January 15, 2015, for driving while intoxicated, and on July 22, 2015, he was convicted of driving while intoxicated for the fourth time. Cordova had been removed from the United States to Mexico on at least three previous occasions in 2008, 2009 and 2014. The removal on June 12, 2014, occurred after Cordova was convicted of felony possession of Schedule II controlled substances, cocaine, which resulted in a sentencing enhancement of a convicted felon.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Defendant sentenced for contraband cigarette conspiracyRead the Press Release
HUNTINGTON, W. Va. - Mr. Fodie Koita entered a guilty plea and was sentenced today for conspiring to transport contraband cigarettes, announced Acting United States Attorney Carol Casto. Koita, who has been incarcerated since September 23, 2015, was sentenced to credit for time served and placed on supervised release for three years. Upon discharge, Koita is being transferred to Indiana for additional fraud charges that are pending there, along with possible deportation proceedings through the Department of Homeland Security.
Koita, an immigrant from Mali, along with Mr. Yahya Willia, drove from New York City to Huntington to purchase contraband cigarettes in 2010. These cigarettes were purchased from Smokin’ Aces, a storefront that purported to be a discount tobacco store. The Smokin’ Aces store was actually an undercover storefront staffed by law enforcement agents posing as illegal brokers of contraband, including contraband cigarettes. The Smokin’ Aces investigation began in May 2010 and was concluded in March 2011. The contraband cigarettes did not have a tax stamp, meaning the conspirators purchased the cigarettes at a lower price than if they were taxed by the state of West Virginia. When the cigarettes were transported from West Virginia and resold in other states where cigarette taxes are higher, the conspiracy members received a greater profit from the illegal sales. In December 2010, Koita and Willia purchased 2,340 cartons of contraband cigarettes, transported the contraband from West Virginia to New York, and resold the cigarettes in New York. Willia was convicted in 2011 and subsequently deported to Nigeria by the Department of Homeland Security.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Huntington Police Department, and the West Virginia State Police conducted the investigation. Assistant United States Attorneys Erik S. Goes and Meredith George Thomas handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as the result of a significant undercover investigation that targeted criminal activity in the Huntington area, including illegal drugs and firearms crimes. The operation led to a substantial number of prosecutions, and was made public in March 2011 after a federal grand jury returned over 50 indictments.
-
Follow us on Twitter: SDWVNews
-
Cleveland man sentenced to three years in prison for tax fraudRead the Press Release
A Cleveland man was sentenced to three years in prison for fraudulently claiming nearly $140,000 in tax refunds, said Acting U.S. Attorney Carole S. Rendon and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
Gerald D. Dotson, 45, previously pleaded guilty to three counts of making false claims.
Dotson filed a series of false tax returns during 2011, 2012 and 2013 claiming falsified wage income and tax credit information for individuals resulting in at least $139,675 in fraudulent refunds.
"As the tax-filing deadline approaches, this sentence should serve as a reminder that all of us are obligated to pay our fair share and not defraud the government," Rendon said.
“The nation’s tax system should not be seen as a free standing ATM for criminals to ransack at will for personal enrichment,” Enstrom said. “Honest taxpayers are the real victims with these schemes and IRS-CI will ensure those responsible are held accountable for their actions.”
Dotson was ordered to pay $139,675 in restitution.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Internal Revenue Service – Criminal Investigation.
Cleveland man faces additonal charge related to sex trafficking of childrenRead the Press Release
A grand jury returned a three-count superseding indictment charging Ronnie L. Pratt, Jr., 20, with three counts of sex trafficking children, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Pratt utilized the website backpage.com to advertise and traffic three minor girls, one of whom was under the age of 14 at the conduct began, according to court documents.
The conduct took place between July and November 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Carmen Henderson following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chicago Businessman Pleads Guilty to Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A Chicago businessman today pled guilty to fraudulently inducing two separate state agencies to issue separate, but nearly identical, grants to his not-for-profit entity. George E. Smith, 66, owned and operated Diversified Behavioral Comprehensive Care, a not-for-profit entity described as offering comprehensive and holistic social services and mental health care to youth and their families. In addition, Smith owned and operated three for-profit entities: Diversified Behavioral Services, Inc., Management Planning Institute, Inc., and the Institute for Positive Child and Family Development.
From 2005 through 2011, Smith, through both his for-profit and not-for profit entities, received millions of dollars in funding from agencies of the state of Illinois, including the Illinois Department of Human Services, the Illinois Department of Children and Family Services, and the Illinois State Board of Education.
At today’s hearing, Smith admitted that he induced DCFS and ISBE to issue two separate, but nearly identical grants to Diversified Behavior Comprehensive Care: a $450,000 grant awarded by DCFS on Sept. 2, 2008, under the Students at Risk Program; and a $342,000 grant awarded by the State Board of Education on Sept. 8, 2008. According to the terms of the grants, awarded within 10 days of each other, both provided for services to be provided to the same at-risk population in the Chicago area during fiscal year 2009. The populations served, sources of referral, services to be provided, and the goals for each grant were essentially identical. Neither DCFS nor ISBE were aware of the issuance of an identical grant by the other state agency. Smith then converted the duplicate funding to his personal and business use.
In addition, Smith admitted that as part of the scheme, in February 2009, he caused the Department of Human Services to award a third grant of $200,000 to DBCC to provide community services relating to the prevention, intervention, treatment and rehabilitation of alcohol and other drug abuse and dependency. Smith admitted that he submitted and caused to be submitted false and fraudulent documentation to DHS falsely representing the amount of community services DBCC actually provided under the DHS grant and fraudulently caused DHS to pay DBCC a total of $138,901.
Smith appeared today before U.S. Magistrate Judge Tom Schanzle-Haskins to enter his guilty pleas to two counts of mail fraud and one count of money laundering. Sentencing has been scheduled for July 25, 2016.
According to terms of the plea agreement, the government has agreed to recommend a sentence at the low end of the advisory sentencing guidelines range. The government and the defendant agree that the amount of restitution owed to the State of Illinois as a result of the mail fraud offense is between $400,000 and $550,000. Smith was allowed to remain on bond pending sentencing.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG) and the Internal Revenue Service, Criminal Investigations Division.
California Man Sentenced to Federal Prison for Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Edwin Rodriguez, 34, of Bell Gardens, Calif., was sentenced today in federal court in Albuquerque, N.M., to 57 months in prison for his heroin trafficking conviction. Rodriguez will be on supervised release for three years after he completes his prison sentence.
Rodriguez was arrested on a criminal complaint charging him with a heroin trafficking offense after the DEA seized 2.3 kilograms (5.07 pounds) of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque on Feb. 4, 2015. The heroin was concealed in a false compartment in Rodriguez’s baggage. Rodriguez was indicted on Feb. 25, 2015, and charged with possession of heroin with intent to distribute.
On Dec. 16, 2015, Rodriguez pled guilty to possession of heroin with intent to distribute and admitted that on Feb. 4, 2015, he possessed heroin, which he wrapped in bundles and concealed in his suitcase while traveling through Albuquerque on the Greyhound Bus.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Bronx Man Arrested for Sexual Exploitation, Enticement, Extortion, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of KELVIN ACOSTA on five counts stemming from his sexual exploitation and enticement of minors, his possession and receipt of child pornography, and his extortion of victims for money and child pornography.
Manhattan U.S. Attorney Preet Bharara said: “Kelvin Acosta is charged with preying on children in the way parents fear most. He allegedly messaged teenage girls on Facebook, tricked them into providing their email addresses, hacked their email accounts, found sensitive images and videos of them, and then threatened to send these videos and images to their friends and family – unless they created child pornography for him. Together with our partners at the FBI, we are committed to protecting children from those who seek to entice, exploit, or extort them.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, Kelvin Acosta enticed and extorted minors for compromising photos and video chats. We can’t charge Mr. Acosta for taking advantage of the trust of impressionable young girls, but we can charge him with enticement, extortion and being in possession of child pornography. The FBI will continue to investigate and bring to justice those who exploit our children.”
According to the Complaint[1]:
In 2015, ACOSTA communicated through Facebook and other means with minors in order to induce them to produce and provide child pornography for his benefit. ACOSTA manipulated his victims into providing information about their online accounts that enabled him to take over those accounts and extort his victims.
For example, ACOSTA victimized a 13-year-old girl by contacting her over Facebook and telling the victim that he could get her a job at Barnes & Noble if she provided him with her email address and phone number. ACOSTA then told her that he needed a code that was sent to her phone via text message. The victim did not know that ACOSTA had accessed her email account and used the “forgot password” function, prompting the email provider to send a text message to the phone number on file to reset the password. Once ACOSTA received the code from this victim, he told her that he had hacked her account; he said he is a hacker who does this all the time. He told her that he would send her friends and family the nude photographs in her email account unless she sent him additional child pornography. Faced with this threat of humiliation, she complied. ACOSTA directed the victim to video chat him, to undress, and to engage in sexually explicit conduct. ACOSTA told the victim he was taking pictures of her during this incident. This victim estimated that she had several video chats with ACOSTA during which she was naked or engaging in sexual acts.
ACOSTA engaged in similar conduct with respect to a second victim, a 17-year-old girl. After hacking her email account, ACOSTA told this victim that he had two videos of her having sex, and that he was going to send these videos to her family and friends if she did not do what he said. ACOSTA directed the victim to video chat him and engage in sexually explicit conduct. In the face of ACOSTA’s threats, the second victim complied with his demands, including that she pay him $600.
* * *
ACOSTA, 26, of the Bronx, New York, was arrested on March 29, 2016. ACOSTA is charged with one count of enticement of a minor to engage in illegal sexual activity, which carries a maximum sentence of life in prison; one count of sexual exploitation of a child, which carries a maximum sentence of 50 years in prison; one count of receipt of child pornography, which carries a maximum sentence of 40 years in prison; one count of possession of child pornography, which carries a maximum sentence of 20 years in prison; and one count of extortion, which carries a maximum sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning KELVIN ACOSTA that may be relevant to the investigation should contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara praised the outstanding efforts of the FBI and the New York City Police Department in this investigation, and thanked the Brooklyn District Attorney’s Office for its valuable cooperation. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bangor Resident Pleads Guilty to Distributing Crack CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Antonio Gordon, 32, of Bangor pleaded guilty today U.S. District Court to distributing cocaine base, commonly known as “crack cocaine.”
According to Court records, on three occasions between December 2014 and January 2015, the defendant distributed crack cocaine in Bangor to a witness working with federal and state law enforcement authorities.
The defendant faces up to 20 years in prison, a $1,000,000 fine and from three years to life on supervised release.
The case was investigated by the U.S Drug Enforcement Administration and the Maine Drug Enforcement Agency.Ava Man Pleads Guilty to Producing Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ava, Mo., man pleaded guilty in federal court today to producing child pornography.
Brett Corcoran, 26, of Ava, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Sept. 30, 2015, federal indictment. Corcoran has been in federal custody since his arrest.
By pleading guilty today, Corcoran admitted that he used a minor victim to produce child pornography between Jan. 1 and May 13, 2015. According to court documents, Corcoran engaged in numerous text conversations with a 14-year-old victim. He sent pornographic images of himself to her, and solicited images from the child victim.
Under federal statutes, Corcoran is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Mary’s County, Maryland, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Atlanta Woman and St. Thomas Man Arrested Attempting to Smuggle Marijuana and Hashish into the Virgin IslandsRead the Press Release
St. Thomas, USVI- Daniell Sherre Combs, 31, of Atlanta, Georgia, and C’quan Celestine, 21, of St. Thomas, made their initial appearance on Saturday, March 26, 2016, before U.S. Magistrate Ruth Miller after being charged in a complaint with possession with intent to distribute marijuana and hashish, United States Attorney Ronald W. Sharpe announced today. Combs and Celestine were detained pending preliminary and detention hearings set for March 30, 2016.
According to the complaint, on Friday, March 25, 2016, Combs and Celestine arrived together at the Cyril E. King Airport, St. Thomas, U.S. Virgin Islands, on board a Spirit Airlines flight from Fort Lauderdale, Florida. U.S. Customs and Border Protection (CBP) officers approached Combs and Celestine after they had removed their bags from the carousel in the baggage claim area. They were taken to secondary inspection where CBP officers searched their bags and found a large plastic bag of a green leafy substance that tested positive for marijuana, four bottles of oil that tested positive for THC (hashish), 63 grams of hashish, and several baked goods laced with marijuana.
Under federal law if convicted of possession with intent to distribute marijuana or hashish, Combs and Celestine face a maximum of five years in prison and a $250,000 fine. This case is being investigated by CBP and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Arizona Man and U.S. Citizen Residing in Germany Sentenced for Sexual AssaultRead the Press Release
PHOENIX – Two men were sentenced yesterday in the District of Arizona for the sexual assault of a 17-year-old girl in Landstuhl, Germany, in October 2013.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John S. Leonardo of the District of Arizona, Special Agent James Boerner of the U.S. Army Criminal Investigative Command (CID), Acting Special Agent in Charge Justin Tolomeo of the FBI’s Phoenix Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
U.S. District Judge David G. Campbell of the District of Arizona sentenced Joseph S. Martin, 20, of Peoria, Ariz., to 96 months in prison, and Christopher J. Heikkila, 21, a U.S. citizen previously residing in Weilerbach, Germany, to 84 months in prison. In September 2015, a jury convicted the men of one count of sexual abuse and one count of abusive sexual contact each.
According to the evidence presented at trial, on or about Oct. 19, 2013, Martin and Heikkila sexually assaulted a 17-year-old girl in Landstuhl while she was incapacitated after they had used social media to specifically target the victim and plan the assault. At the time, Martin and Heikkila were employees of the Army & Air Force Exchange Service on Ramstein Air Force Base in Ramstein, Germany, as well as dependents of civilian employees of the military, according to trial evidence. The Military Extraterritorial Jurisdiction Act gives U.S. federal courts jurisdiction over felonies committed abroad by certain persons employed by or accompanying the U.S. military.
The Army CID and the FBI’s Phoenix Division and Washington Field Office investigated the case. Assistant U.S. Attorney Joseph E. Koehler of the District of Arizona and Senior Trial Attorneys Christine Duey and Michael Sheckels of the Criminal Division’s Human Rights Special Prosecutions Section (HRSP) prosecuted the case. HRSP Special Counsel Stacey Luck provided substantial assistance.
CASE NUMBER: CR-14-00678-PHX_DGC
RELEASE NUMBER: 2016-027_ Martin_ Heikkila
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
*******media Advisory*******Read the Press Release
WASHINGTON – Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kevin W. Techau of the Northern District of Iowa, Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa, and Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division, will deliver remarks and participate in an intellectual property protection and cybersecurity roundtable co-hosted by Iowa State University on WEDNESDAY, MARCH 30, 2016. Following the keynote address, there will be a media tour and interview opportunities available with the Department of Justice officials at the BioRenewables Complex.
PLEASE NOTE, THE ROUNDTABLE DISCUSSION IS UNDER CHATHAM HOUSE RULES REGARDING AUDIENCE QUESTIONS AND PARTICIPATION. THE CONTENT OF THE DISCUSSION CAN BE REPORTED ON, BUT WITHOUT AUDIENCE MEMBER ATTRIBUTION OR IDENTIFICATION. GOVERNMENT PARTICIPANTS MAY BE IDENTIFIED AND QUOTED BY NAME.
IOWA STATE UNIVERSITY ROUNDTABLE
WHO: Assistant Attorney General for National Security John P. Carlin
U.S. Attorney Kevin W. Techau of the Northern District of Iowa
Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa
Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division
WHAT: Remarks and roundtable discussion targeted to businesses involved in agriculture, agricultural bioscience, biotech and bio renewables addressing trade secret theft and cybersecurity issues.
WHEN: WEDNESDAY, MARCH 30, 2016
9:00 a.m. CDT/ 10 a.m. EDTWHERE: Iowa State University
Memorial Union – Campanile Room
2229 Lincoln Way
Ames, IA 50011
OPEN PRESSNOTE: Press inquiries regarding logistics should be directed to Steve Young at [email protected]. AAG Carlin interview requests should be directed to [email protected] or (202) 353-5418.
BIO-RENEWABLES COMPLEX TOUR
WHO: Assistant Attorney General for National Security John P. Carlin
U.S. Attorney Kevin W. Techau of the Northern District of Iowa
Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa
Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division
WHAT: Tour of the complex followed by media availability
WHEN: WEDNESDAY, MARCH 30, 2016
10:15 a.m. CDT/ 11:15 a.m. EDTWHERE: Iowa State University
BioRenewables Complex
617 Bissell Road
Ames, IA 50011
OPEN PRESSNOTE: Press inquiries regarding logistics should be directed to Steve Young at [email protected]. AAG Carlin interview requests should be directed to [email protected] or (202) 353-5418.
28 March 2016
Westminster Man Pleads Guilty to Distribution of HeroinRead the Press Release
Baltimore, Maryland – Alexander E. Agniadis, age 28, of Westminster, Maryland pleaded guilty today to distribution of heroin.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeffrey Spaulding of the Westminster Police Department; Carroll County Sheriff James DeWees; and Carroll County State’s Attorney Brian DeLeonardo.
According to Agniadis’ plea agreement, at approximately 3:30 p.m. on December 28, 2014, Agniadis distributed heroin to an individual in the vicinity of Medinah Circle in Westminster. Text messages show that the individual contacted Agniadis to obtain heroin. According to witnesses Agniadis and the individual met at about 3:30 p.m., and Agniadis gave the individual a small amount of heroin. The individual was not in contact with his family or anyone else after that time and his phone reflects only unanswered calls and incoming texts from that time forward. The individual was found dead on January 5, 2015. The Medical Examiner determined that the victim died of heroin intoxication.
As part of the investigation, in early January 2015, heroin was purchased from Agniadis. On January 14, 2015, a search warrant was executed at Agniadis’ residence and law enforcement recovered 14 individually wrapped glassine bags containing heroin, and additional bags with heroin residue.
Agniadis and the government have agreed that if the Court accepts the plea agreement Agniadis will be sentenced to between four and six years in prison. As part of his plea agreement, Agniadis will also be required to pay restitution of $6,200 to the victim’s family for the cost of his funeral and final arrangements. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 24, 2016 at 11 a.m.
United States Attorney Rod J. Rosenstein commended the DEA and the Carroll County Drug Task Force comprised of the Maryland State Police, Westminster Police Department, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Andrea L. Smith, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Washington Park Woman Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Amber M. Salts, a 29-year old, Washington Park, Illinois, woman was sentenced on March 25, 2016, in federal district court, in East St. Louis, Illinois, for violation of Sex Offender Notification and Registration Act (SORNA), the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Salts was sentenced to 30 months in federal prison, to be followed by ten years of supervised release, and ordered to pay a $100 Special Assessment and a $250 fine.
In approximately April 2015, Salts moved from Missouri to Illinois without registering or updating her registration as a sex offender in either state. Salts was aware of these registration requirements at the time of her offense. Salts was convicted of Permitting the Sexual Abuse of a Child in 2009 in Madison County, Illinois, and was required to register as a sex offender thereafter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Two from Marion guilty of dealing "blue drop heroin" that resulted in fatal overdoseRead the Press Release
Two Marion men pleaded guilty to selling a mixture of heroin and fentanyl that resulted in an overdose death last year, law enforcement officials said.
Eric Creagh, 32, and Rashawn D. Thomas, 27, each pleaded guilty to one count of drug trafficking that resulted in death.
Creagh sold Thomas “blue drop heroin” -- a mixture of heroin and fentanyl that had been dyed blue -- on May 22, 215. Later that day, Thomas sold a portion of the “blue drop heroin” to Christopher Wolford, who used the drug at his home, which ultimately caused him to overdose and die, according to court documents.
Creagh and Thomas are scheduled to be sentenced later this year. Under the terms of their guilty pleas, Creagh is expected to be sentenced to nearly 16 years in federal prison, while Thomas is expected to be sentenced to nine years in federal prison.
“Heroin and fentanyl abuse has caused on unprecedented wave of overdose deaths in our community over the past year,” said Acting U.S. Attorney Carole S. Rendon. “The only way we can stem this tide is with a comprehensive approach focused on prevention, treatment, prescribing practices and enforcement. Those who sell fentanyl and heroin that kills people deserve to go to prison.”
“On May 28, 2015 the City of Marion reached out to our federal and state partners asking for assistance with a Blue Drop Heroin overdose epidemic,” Marion Police Chief William Collins said. “Through combined efforts of our local drug task force, MARMET/METRICH, DEA, BCI and the US Attorney’s Office, an unprecedented 14-day investigation took place and resulted the arrests of Eric Creagh and Rashawn Thomas. These individuals were charged at the federal level in hopes that they would receive the kind of prison sentence that would fit the criminal offense, today we see our hopes fulfilled in that they will serve 16 years and 9 years respectively for their crimes against this community. Marion Law Enforcement will continue to seek harsh prison sentences for those whom seek to destroy our community.”
DEA Special Agent in Charge Timothy J. Plancon said: “DEA and our law enforcement partners have made it a priority to investigate the distribution of drugs that result in death. The efficiency in which this investigation was conducted, taking dangerous drug dealers off of the street, demonstrates the strong level of cooperation among all of our partners. We are focused on bringing to justice those individuals that are responsible for the increasing heroin problem in Ohio and across the United States.”
“I commend the work of the local, state, and federal authorities who worked so aggressively to get the supplier of this so-called ‘blue drop’ heroin off the streets,” said Attorney General DeWine. “Drugs like heroin and fentanyl are devastating lives and tearing families apart every day in this state. Traffickers must be held responsible, and investigators with my office’s Bureau of Criminal Investigation are available to work with local authorities anywhere in Ohio to help make that happen.”
Members of the Drug Enforcement Administration, the Marion Metro Drug Enforcement Unit (MARMET), the Marion Police Department and the Marion County Sheriff's Office executed search warrants at two homes owned by Creagh on June 10. Creagh was arrested and law enforcement agents recovered approximately one kilogram of a heroin/fentanyl mixture, blue fabric dye, a face mask with a filtration system and rubber gloves, two hydraulic presses and approximately $60,000 in cash, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Thomas Weldon following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
Two New York Men Each Sentenced to over Two Years in Prison for Defrauding Home Depot Through ‘Double-Dipping’ SchemeRead the Press Release
TRENTON, N.J. – Two Brooklyn, New York, men were sentenced to prison today for fraudulently obtaining more than $250,000 through an elaborate “double-dipping” scheme that they committed at various Home Depot locations throughout the United States, including New Jersey, U.S. Attorney Paul J. Fishman announced.
Renauld Medard, 75, and Wesly Dieudonne, 31, were sentenced to 30 and 28 months in prison, respectively. They were previously convicted on all counts of an indictment charging them with one count of conspiracy to commit wire fraud and four counts of wire fraud. They were convicted following a four-day trial before U.S. District Judge Anne E. Thompson, who imposed the sentences today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
As part of the scheme, Medard and Dieudonne purchased various items from Home Depot locations in New Jersey, New York, Maryland, Connecticut and Pennsylvania using cash, credit cards or store credit. Medard and Dieudonne also went to Home Depot stores and compiled identical sets of goods as listed in receipts from previous purchases. Under the guise that they had forgotten to purchase an item, usually an inexpensive one, they used receipts from previous purchases to deceive cashiers into believing that the new sets of goods had already been bought.
Medard and Dieudonne also went to Home Depot to return items stolen in the scheme. In some instances, they presented a receipt in order to effectuate the return. In other instances, they obtained a refund for store credit without presenting a receipt. From July 2009 through November 2011, Medard and Dieudonne fraudulently obtained Home Depot store credit and refunds totaling over $250,000.
In addition to the prison terms, Judge Thompson ordered Medard to serve three years of supervised release and pay $260,477.79 in restitution. Dieudonne was ordered to serve three years of supervised release and pay $197,632.79 in restitution.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Jeffrey Wood in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Andrew D. Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel:
Medard: Robert John Haney Esq., Princeton, New Jersey
Dieudonne: Andrea Bergman Esq., Trenton
Two Konawa Men Sentenced for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JASON PAUL NUNLEY, age 40 and MASON NUNLEY, age 23, both of Konawa, Oklahoma were sentenced in federal court for CONSPIRACY, in violation of Title 21, United States Code, Section 371. JASON NUNLEY was sentenced to 48 months imprisonment, followed by 3 years of supervised release and MASON NUNLEY was sentenced to 33 months imprisonment, followed by 3 years of supervised release.
The Informations filed, alleged that beginning in or about May 20, 2015, and continuing until on or about June 4, 2015 and July 29, 2015, in the Eastern District of Oklahoma, the defendants, did knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States, namely, distribution of methamphetamine.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshals Service and the Drug Enforcement Administration.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The defendants will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which they will serve their nonparoleable sentences.
Assistant United States Attorney Shannon Henson represented the United States.
Three Sentenced for Bulk Cash SmugglingRead the Press Release
HOUSTON – Two Houston residents and one man from Brownsville have been sentenced to federal prison for their roles in the attempted smuggling of a large amount of U.S. currency. Victor Flores, 45, and José Juan Saavedra, 40, both of Houston, and Ricardo Cavazos-Garza, 51, of Brownsville, previously pleaded guilty in August 2015.
Today, U.S. District Judge Lee H. Rosenthal sentenced Flores, Cavazos and Saavedra to 30, 28 and 24 months, respectively. Each must also serve three years of supervised release following completion of their prison terms. As part of their respective plea agreements, they each agreed to forfeit their interest in two separately seized sums of cash totaling $838,460.
The money had been derived from narcotics trafficking and was destined for Mexico.
On April 27, 2015, law enforcement seized $578,420 in Edinburg. The investigation revealed it had been loaded at a residence on the 6200 block of Foxleigh in Houston. The additional sum of $260,040 was seized from that same residence the following day, which was found packaged within a void between the bed and bed liner of a pickup truck parked in the garage.
The investigation concluded that the pickup and money was destined its intended ultimate destination - Mexico. All three men were taken into custody at the time of the seizure.
All defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of a joint effort among Homeland Security Investigations, Drug Enforcement Administration, Harris County Sheriff’s Office and the Houston Police Department. Assistant U.S. Attorney Bryan Best is prosecuting the case.
Three Men Plead Guilty to Engaging in A $2.5 Million Fraud Involving Dozens of Fraudlent Loans from Banks and Credit Unions Throughout the NortheastRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that BINDER TAL, BALDEV TAL, a/k/a “David Tal,” a/k/a “Ashok Kumar,” and SHARIFUL MINTU each pled guilty to conspiring to commit bank fraud before U.S. District Court Judge Vincent L. Briccetti.
Manhattan U.S. Attorney Bharara stated: “Through various lies about their employment and income, Binder Tal, Baldev Tal, Shariful Mintu and their coconspirators obtained more than $2.5 million in loans and lines of credit. The banks and credit unions that the defendants defrauded were left holding the bag when the vast majority of these loans defaulted. Thanks to the outstanding investigative work of the U.S. Postal Inspection Service, IRS Criminal Investigation Division, and New York State Police Auto Crimes Unit, these defendants will now be held accountable for their crime.”
According to the Informations to which the defendants pled guilty and other court documents:
From 2007 to August 2015, BINDER TAL, BALDEV TAL, MINTU, and their co-conspirators fraudulently obtained loans and lines of credit from banks, credit unions, and other lending institutions. The defendants obtained the loans by providing materially false information to the lenders about the borrowers’ assets, including but not limited to false information about the borrowers’ employment and income. Through their scheme, the defendants and their co-conspirators fraudulently obtained more than $2.5 million in proceeds in connection with dozens of loan applications and applications for lines of credit. The vast majority of the loans and lines of credit went into default, and millions of dollars were not repaid.
As part of the scheme to defraud, the defendants used the proceeds to personally enrich themselves and their families. For example, the fraudulently obtained proceeds from the loans and lines of credit were used toward, among other things, credit card debts for personal expenses of the defendants, business expenses, and debts arising from other fraudulently obtained loans, to conceal the fraudulent nature of these loans.
In addition, the defendants and their co-conspirators also engaged in extensive efforts to perpetuate and conceal the fraudulent scheme. These efforts included, but were not limited to, multiple members of the conspiracy acting as the borrowers for different loans, falsely claiming that the purpose of the loans was to purchase or finance used luxury automobiles, when in fact many of the automobiles were never purchased or leased by the defendants or their co-conspirators, and the loan proceeds were later distributed to other members of the conspiracy and to entities they controlled.
* * *
BINDER TAL, 34, and, BALDEV TAL, 34, both from Oresfield, Pennsylvania, pled guilty on February 24, 2016, and February 29, 2016, respectively, to one count of conspiring to commit bank fraud. MINTU, 36, of Montgomery, New York, pled guilty today to the same charge, which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
BINDER TAL and BALDEV TAL are scheduled to be sentenced on June 1, 2016. SHARIFUL is scheduled to be sentenced on July 07, 2016.
Mr. Bharara praised the outstanding efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation Division, and the New York State Police Auto Crimes Unit.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys John P. Collins, Jr. is in charge of the prosecution.