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Monday 8 February 2016
Ohio Convicted Murderer Pleads Guilty to 2005 Murder of Woman at Fort Knox Military BaseRead the Press Release
Ohio Woman had been missing since 2005
PADUCAH, Ky. – A Toledo, Ohio, convicted murderer pleaded guilty before Senior Judge Thomas B. Russell, in United States District Court, on Friday, February 5, 2016, to a Federal Information charging him with the 2005 murder of a woman at Fort Knox Military Base, announced United States Attorney John E. Kuhn, Jr.
In court, defendant Ernest Otto Smith, 49, admitted that on or about January 7, 2005, he murdered Cathy M. Barnett willfully, deliberately, maliciously, and with premeditation, on the grounds of Fort Knox, within the special territorial jurisdiction of the United States.
According to the plea agreement, on January 3, 2005, Smith robbed and shot and killed James Dillingham in Toledo, Ohio. It is believed Barnett was present during the murder. Shortly after the murder, Smith and Barnett fled Toledo and ultimately headed south to Kentucky in Smith’s van. Smith had formerly lived and worked near Fort Knox.
During the trip to Kentucky Smith decided to murder Barnett because she witnessed the Dillingham murder and could tell the police about the murder. On January 7, 2005, Smith’s van broke down in Kentucky and Smith and Barnett hitchhiked and they were dropped off near Fort Knox. Smith and Barnett walked approximately one quarter of a mile down a service road off the main highway, into a wooded area located on the grounds of Fort Knox, in Meade County, Kentucky. In the wooded area, Smith first attempted to break Barnett’s neck, and then beat her on the head with a tree branch until Smith knew Barnett was dead. Smith left Barnett’s body in the woods and eventually traveled to Tennessee where he was arrested in Nashville on January 21, 2005. In March 2006, Smith was convicted in Ohio of the Dillingham murder and was sentenced to 32 years of imprisonment.
In late 2010, Smith spoke with his former parole officer, Dan Van Vorhis, who asked Smith what happened to Barnett. Over the course of several recorded conversations, Smith explained to Van Vorhis the details of her murder. Smith also identified where Barnett’s remains would be found. The Federal Bureau of Investigation (FBI) searched and found Barnett’s remains on the grounds of Fort Knox, in the wooded area identified by Smith.
As a result of his guilty plea, Smith faces a mandatory sentence of life in prison, and a potential $250,000 fine.Smith was in the custody of the Ohio Department of Prisons. His sentencing before Senior Judge Russell is scheduled for March 22, 2016, at 3:00pm in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation.
North Carolina Man Charged in Fraudulent U.S. Treasury Check SchemeRead the Press Release
A Clayton, North Carolina, resident was arrested yesterday after being indicted on Dec. 2 by a federal grand jury sitting in Raleigh, North Carolina, on one count of conspiracy to commit theft of public money, 25 counts of theft of public money and two counts of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
Felipe Hurtado aka “Juan de Dios” is alleged to have conspired with check cashers during the years 2011 and 2012 to cash U.S. Treasury checks issued as a result of fraudulent tax returns filed in the names of third parties. According to the allegations in the indictment, Hurtado provided the check cashers with U.S. Treasury checks in the names of payees purportedly living in New York. These checks ranged in value from approximately $5,000 to $10,000. The indictment alleges that the check cashers deposited the U.S. Treasury checks into their business bank accounts and then provided Hurtado with cash equal to the value of the check minus a check cashing fee. The third party payees were not present when the checks were cashed. The indictment further alleges that Hurtado cashed U.S. Treasury checks in the names of individuals whose identities had been stolen.
If convicted, Hurtado faces a statutory maximum sentence of five years in prison for the conspiracy charge, 10 years in prison for each count of theft of public funds and a two year mandatory sentence for the counts of aggravated identity theft. He also faces substantial monetary penalties, supervised release and restitution.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of Internal Revenue Service-Criminal Investigation, who investigated the case and Trial Attorneys Nathan Brooks and Lauren Castaldi of the Tax Division, who are prosecuting this case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Eastern District of North Carolina for their assistance.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Norfolk College Student Pleads Guilty to Coercing and Enticing a MinorRead the Press Release
NEWPORT NEWS, Va. – Dylan Allen Jeffries, 26, of Clifton Forge, pleaded guilty today to charges of coercion or enticement of a minor.
In a statement of facts filed with the plea agreement, Jeffries, who previosuly attended college in Norfolk, acknowledged using two social networking accounts to communicate with at least two underage girls, then ages 12 and 13. The communication revealed that Jeffries was aware of their age at the time he communicated with them. Jeffries also acknowledged possessing a hard drive on which he illegally stored photos and videos of underage girls. Jeffries admitted to receiving many of the images from the girls depicted in them through social media and email communications.
Jeffries was indicted by a federal grand jury on Nov. 16, 2015. He faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison when sentenced on May 10, 2016. The maximum and mandatory minimum statutory sentences are prescribed by Congress and are 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorneys Kaitlin C. Gratton and Lisa R. McKeel are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr83
Montesano Man Charged with Illegal Firearms PossessionRead the Press Release
SEATTLE – A Montesano man arrested early Saturday morning is charged by criminal complaint with illegal firearms possession, announced U.S. Attorney Annette L. Hayes. The complaint alleges that DANIEL SETH FRANEY, 33, a/k/a Abu Dawuud, possessed firearms in violation of a permanent protection order prohibiting him from possessing firearms. On multiple occasions between September and November 2015, FRANEY handled several firearms, to include firing fully automatic machineguns on one occasion. FRANEY will appear in U.S. District Court in Tacoma today, February 8, 2016, at 2:30 PM.
“This defendant possessed firearms, including machine guns, even though he knew he was prohibited from doing so. He also discussed attacking members of the military and law enforcement,” said U.S. Attorney Annette L. Hayes. “I commend the FBI and the Joint Terrorism Task Force for their diligent efforts to pursue all available leads to ensure the public was protected from any possible harm.”
As set forth in the complaint, beginning in April 2015, multiple Washington state residents began reporting to law enforcement that they had heard FRANEY espouse violent rhetoric, particularly in support of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. They also reported hearing FRANEY advocate for the killing of non-Muslim Americans, particularly members of the U.S. military and law enforcement. One citizen reported that FRANEY repeatedly asked to purchase a firearm from the citizen, despite FRANEY’s admissions that he is not legally allowed to possess firearms.
FRANEY was captured on audio attempting to acquire firearms, particularly AK-47s. FRANEY also discussed what he deemed were good targets for an attack. In discussing his attack aspirations, FRANEY repeatedly referred to his support for ISIL.
“The FBI works diligently to have a positive relationship with the Muslim community,” said Frank Montoya, Jr., Special Agent in Charge of the FBI’s Seattle Division. “From our conversations with Muslim community leaders, we know they reject this type of violent ideology and actively contribute to the security of our community, Washington State, and our country.”
FRANEY is charged by complaint with three counts of unlawful possession of firearms and two counts of unlawful possession of machineguns. Each count is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg for the Western District of Washington, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. The investigation was conducted by the FBI’s Joint Terrorism Task Force, which combines investigators from federal, state, and local law enforcement. Task force members include the Seattle Police Department, the Pierce County Sheriff’s Department, the Federal Protective Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and elements of the U.S. Army’s 902nd Military Intelligence Group. In addition, the Grays Harbor County Sheriff’s Department contributed significantly to this investigation.
Mineral County, WV man convicted of unlawful possession of nine firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eric Donald Wilson, 45, of Ridgeley, West Virginia, pled guilty to unlawful possession of firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Wilson, who has a previous felony conviction in state court in Maryland, was discovered in September 2015 in unlawful possession of nine firearms in Mineral County, West Virginia. He was previously convicted of the felony offense of “Second Degree Assault” in the District Court for Baltimore City, Maryland.
Wilson pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Man Pleads Guilty to Federal Charges in Contract Kickbacks and Phony Billing SchemesRead the Press Release
WASHINGTON – Bryan D. Wright, 53, of Laytonsville, Md., pled guilty today to taking part in a scheme in which he paid kickbacks to an executive with an investment banking firm in return for construction management contracts, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
In addition, Wright admitted taking part in a related scheme in which he submitted invoices for work that was not performed.
Wright pled guilty to one count of conspiracy to engage in wire fraud and one count of conspiracy to engage in money laundering. Conspiracy to engage in wire fraud carries a statutory maximum of five years in prison and conspiracy to engage in money laundering carries up to 10 years. Both charges also carry potential financial penalties. Under federal sentencing guidelines, Wright faces a likely range of 27 to 33 months in prison and a fine of up to $100,000. The Honorable Amy Berman Jackson is to sentence Wright at a date to be determined later.
The plea agreement calls for Wright to pay restitution to the investment banking firm. He also must pay a forfeiture money judgment of $623,347, representing his share of the illegal proceeds generated by the schemes. The plea agreement further calls for Wright to forfeit his interest in assets seized as part of the investigation, including $320,227.13 from bank accounts and six rare coins.
According to a statement of offense, signed by the defendant as well as the government, Wright is the president of P&E Services, a company used in furtherance of the scheme.
The statement of offense describes these activities from 2011 through 2013:
In mid-2011, Wright was contacted by a person described in court documents as “Co-Conspirator 1.” This person was a vice president in the Washington, D.C. office of an investment banking firm and oversaw the firm’s real estate development investments in the regional area. In that role, “Co-Conspirator 1” was authorized to approve construction-related invoices.
Over the months that followed, “Co-Conspirator 1” steered construction management contracts to Wright, tied to a commercial development project in Hanover, Md. Between October 2011 and May 2013, “Co-Conspirator 1” authorized $760,609 in payments from the investment banking firm to Wright’s company, P&E Services. Additionally, “Co-Conspirator 1” directed a general contracting company hired for the project to make payments to P&E Services; the contractor paid P&E Services $417,708 between January 2012 and January 2013. The investment banking firm reimbursed the contractor for the money that was paid to P&E Services.
In total, Wright and P&E Services received approximately $1,178,317 in payments from the investment banking firm and general contracting company. In turn, Wright paid “Co-Conspirator 1” approximately $588,622 of the funds, retaining the other $589,695.
In a related scheme, Wright conspired with “Co-Conspirator 1” to submit three phony invoices to the investment banking firm. Wright received $114,003 from this scheme. He paid “Co-Conspirator 1” $80,351 of these proceeds, retaining the other $33,652.
Wright retained a total of $623,347 from his participation in the two schemes.
No other charges have been filed in the investigation, which is ongoing.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris and C. Rosalind Pressley and Legal Assistants Angela Lawrence and John Lowell. Finally, they acknowledged the work of Assistant U.S. Attorneys David A. Last and Zia Faruqui, who are investigating and prosecuting the matter.
Manager of Predatory Loan Modification “Law Firm” Sentenced to PrisonRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Valerie Chu (619) 546-6750
NEWS RELEASE SUMMARY – February 8, 2016
SAN DIEGO – San Diego businessman Michael Nazarinia was sentenced today to 9 months in custody for his role in a fraudulent mortgage loan modification business that duped hundreds of struggling homeowners.
The business, known as “Haffar & Associates,” owned by figurehead attorney Mohamed Haffar, recruited new customers using telemarketers who lied to clients in order to induce more than 1,000 people to sign up to pay more than $3.5 million in total.
Haffar & Associates Scheme
Nazarinia’s co-conspirator Charles Rose managed a call center staffed with as many as 30 telemarketers, whose job was to recruit new clients. Rose trained the telemarketers, wrote telemarketing scripts for use on calls with potential clients, wrote form letters for the salespeople to send to potential clients, and recorded his own sales calls for telemarketers to emulate. Rose pleaded guilty in July, admitting that he and his business partners, including Nazarinia, trained telemarketers to make statements to potential clients that were false, such as the following:
- “Haffar & Associates has a 98% success rate.”
- “Haffar & Associates has never lost a home to foreclosure.”
- “We have had no complaints with the California state bar.”
- “When you sign up with Haffar & Associates you will be represented by a law firm, and an attorney will negotiate on your behalf.”
- “Once you sign up, you will be protected by the power of the law firm and the bank cannot foreclose on your home.”
- “You definitely qualify for a loan modification.”
- “Our team has settled countless loans with just about every lender, and we have built up connections with the banks and deal directly with many bank’s legal departments.”
- “We have direct phone numbers at banks to help you get your loan modification. We can go through the ‘back door’ at the bank to get your loan modified.”
- “We have had great success with your mortgage lender.”
- “Your lender will not deal with you because you don’t know how to deal with them.”
- “We conduct a forensic audit of the original loan documents in order to discover whether the lender . . . violated one of many predatory lending laws . . . . [Then] our lawyers can use these violations to either sue or threaten to sue the banks, therefore leveraging the lender into providing our client with a work out solution.”
- “We have a 100% money back guarantee.”
- “You will be paid a refund of your fee if Haffar & Associates is unsuccessful at obtaining a loan modification on your behalf, but no one has ever asked for a refund.”
In reality, Haffar & Associates did not have anything close to a 98% success rate in obtaining loan modifications for their clients. Similarly, Haffar & Associates did not have any special connections with banks or the legal departments of banks. The business also did not have sufficient numbers of staff or staff experienced enough to successfully complete loan modifications. And many dissatisfied customers never received refunds they requested. Although existing clients were not getting loan modifications, the telemarketers were encouraged to keep selling.
For his part, Nazarinia generated a fraudulent lease agreement, which was used to fraudulently delay eviction after Haffar & Associates failed to negotiate a modification for a client. Nazarinia also admitted to filing a false 2010 income tax return, omitting almost $100,000 in illegal income from Haffar & Associates. Among other things, Nazarinia supervised Haffar & Associates “case managers,” who submitted loan modification applications and negotiated with the banks on behalf of clients. Despite the representations made to clients, attorney Haffar did not directly supervise Nazarinia’s case managers, and instead, Nazarinia and the case managers provided legal services to clients without Haffar’s input or direction. Haffar rarely reviewed the clients’ files and almost never provided direction to the case managers. According to Rose’s plea agreement, Haffar, Nazarinia, and Rose all understood that Haffar’s fees were his compensation for the risk he took in allowing Nazarinia and Rose to use his name, bar license, and law firm, and not for any actual work Haffar did on loan modification cases.
After Haffar & Associates stopped doing new business, Rose and Nazarinia started a new company, called “REST Report Matters,” selling a product they claimed would facilitate mortgage lenders’ review of homeowners applications for loan modifications. Rose admitted as part of his guilty plea that he made false representations to potential clients in order to induce them to sign up and pay their fees. They told homeowners that the product was the only available tool that could definitely tell homeowners the modification terms their lenders would provide.
Federal Law Enforcement Condemns Loan Modification Schemers
United States Attorney Laura E. Duffy reiterated her belief that, “The real tragedy of this case is that the defendants chose to profit from the suffering of others. In difficult economic times, they exploited a particularly vulnerable segment of our population, homeowners who were desperately trying to make ends meet and stay in their homes.”
“Fraudulent mortgage fraud schemes affect consumers at the most basic level, jeopardizing their ability to retain ownership of their homes,” said Robert Wemyss, Inspector in Charge of the U.S. Postal Inspection Service – Los Angeles Division. "The U.S. Postal Inspection Service will continue to investigate these crimes to protect consumers and our nation's mail system from being used for illegal or dangerous purposes.”
“Using the guise of a law office and a legal team, the defendants preyed upon financially desperate homeowners struggling to keep a roof over their head,” stated Erick Martinez, Special Agent in Charge of IRS Criminal. “As today’s sentencing shows, those who find ways to profit by taking advantage of distressed homeowners and fail to report the income will be brought to justice.”
“Michael Nazarinia preyed on others’ misfortune to line his own pockets,” said Federal Housing Finance Agency – Office of Inspector General Special Agent in Charge Leslie DeMarco. “The sentence he received today provides justice and will hopefully act as a deterrent to anyone else who might be tempted to engage in similar conduct.”
Rose is scheduled to be sentenced on April 11, 2016, also by Judge Houston. Attorney Haffar has also pleaded guilty to tax charges relating to the venture, and admitted that he had no existing knowledge or experience in loan modifications when he started the business in 2008. Haffar stipulated to his disbarment in November 2011 for his conduct. He was formally disbarred in June 2012, and obligated to pay over $192,000 to reimburse former Haffar & Associates clients. Haffar pleaded guilty to the federal criminal charge in August 2014, and was sentenced to three months in prison in January 2015.
Another participant who worked for Rose’s telemarketing company, Stacy Tuers, pled guilty on tax charges in May 2015. As part of Tuers’s guilty plea, he admitted that he knew the telemarketers were making false statements to potential clients, but continued to sell Haffar & Associates loan modification services. Tuers is scheduled to be sentenced on the tax offense on March 10, 2016.
DEFENDANT
Michael Nazarinia, 15CR2718-JAH Age: 41 San Diego, CA
CHARGES
Mail fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary loss or gain, $100 special assessment, restitution.
Subscribing to a false tax return, in violation of 26 U.S.C. § 7206(1)
Maximum Penalties: 3 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED:
Charles Rose, 15CR1786-JAH Age: 32 San Diego, CA
Mohamed Haffar, 14CR2251-JAH Age: 36 San Diego, CA
Stacy Tuers, 15CR1342-JAH Age: 54 San Diego, CA
AGENCIES
United States Postal Inspection Service
Internal Revenue Service – Criminal Investigation
Federal Housing Finance Agency – Office of Inspector General
Man Sentenced in Pill Mill CaseRead the Press Release
DALLAS — Muhammad Taylor, 32, was sentenced on Friday by U.S. District Judge Sidney A. Fitzwater to 30 months in federal prison on a felony conviction stemming from his involvement in a pill mill operation during parts of 2013-2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Taylor, most recently a resident of Houston, Texas, pleaded guilty in October 2015 to one count of unlawful use of a communication facility.
Last month, co-defendants Shane Barron, 27, of Austin, Texas, and Tonya Sue Griggs, 34, of Dallas, who pleaded guilty to the same offense, were each sentenced to 37 months in federal prison.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Taylor, Barron and Griggs, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies. Many of those defendants have pleaded guilty and are awaiting sentencing.
According to documents filed for Taylor, in February 2014, he and another co-conspirator met in the parking lot outside a pharmacy located on FM 1960 in Houston. The two entered the pharmacy together and exited a short while later. Taylor got into his own car and drove away, but was stopped a short time later by law enforcement officers, who seized approximately 154 10mg hydrocodone in an un-labeled prescription bottle from Taylor.
Taylor called the co-conspirator to tell him about the stop and that law enforcement had seized the pills he had just obtained even though he had the paperwork. The co-conspirator told Taylor not to worry, and that he would take care of it.
Taylor admitted he obtained these hydrocodone with the intent to distribute them at a later time, and he further admitted that he used his cell phone to coordinate obtaining and selling the hydrocodone.
Last month, a physician, Dr. Richard Andrews, 63, of Dallas, and pharmacists, Ndufola Kigham, 44, of Arlington, Texas, and Kumi Frimpong, 55, of Grand Prairie, Texas, were arrested on charges outlined in a superseding indictment that charged them with offenses related to their roles in the conspiracy. They are on bond; trial is set for June 2016. All three were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and pharmacists Kigham and Frimpong from dispensing controlled substances. Also, Kigham surrendered her stock of controlled substances that she had at her pharmacy to DEA.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters is prosecuting.
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Lexington Man Sentenced for Mortgage FraudRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Michael Yant, age 40, of Lexington, South Carolina, was sentenced today in federal court in Columbia, South Carolina, for Wire Fraud, a violation of 18 U.S.C. § 1343, in connection with a mortgage fraud scheme. United States District Judge Joseph F. Anderson, Jr., of Columbia sentenced Yant to five months of incarceration, to be followed by five months home confinement. Yant also was ordered to pay almost $270,000 in restitution to the U.S. Department of Housing and Urban Development.
Evidence presented at the change of plea hearing established that between November 2011 and December 2013, Yant and others committed mortgage fraud on approximately fifteen Federal Housing Administration (FHA) loans. Specifically, Yant engaged in a prohibited rent-to-own scheme. Yant collected rent from future buyers and used those funds for the buyer’s down payment at closing. Further, Yant added buyers to other people’s credit accounts as authorized users to enhance the buyer’s credit scores
Yant admitted to falsifying and submitting bank statements of buyers, paying off buyers’ debt and collection accounts, as well as falsifying buyers’ vehicle bills of sale in an effort to forge the origination of the buyer’s down payments. Also, Yant provided forged W-2’s and paystubs for buyers, as well as prepared false employment verifications to conceal the buyer not being an employee of certain businesses. Further, Yant secured FHA loans for buyers who would not otherwise qualify by paying off the buyers’ debt and collection accounts to increase the buyers’ credit scores.
The case was investigated by the United States Department of Housing and Urban Development, Office of the Inspector General, and the United States Postal Inspection Service. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.
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Katy Couple Charged with Enslaving ServantRead the Press Release
HOUSTON – A couple residing in Katy has been taken into custody following the filing of a criminal complaint alleging forced labor, withholding documents, conspiracy to harbor an illegal alien and visa fraud, announced U.S. Attorney Kenneth Magidson.
Chudy and Sandra Nsobundu, 56 and 50, respectively, were arrested today and expected to make their initial appearance before U.S. Magistrate Judge Nancy Johnson at 10:00 a.m. tomorrow. The criminal complaint was filed under seal Feb. 5, 2016, and automatically unsealed upon their arrests today.
The victim is a 38-year-old Nigerian national. According to the affidavit in support of the complaint, she was subjected to physical and verbal abuse while employed by the Katy couple and regularly referred to as “the idiot.” The victim allegedly worked every day from 5:30 a.m. until 1:00 a.m. and was responsible for cleaning the house, making meals and taking care of five children. The criminal complaint alleges she was told she could not watch television or even sit down during her work hours. She was also allegedly told to sleep on the floor and could not use warm water to bathe or wash her hair. The affidavit also claims that she was not allowed to eat fresh food and was only permitted the leftovers from the previous prepared meals. Further, if the victim even wanted some milk for her tea, she would have to actually strain the milk out of the children’s cereal bowls, according to the allegations. In one instance of alleged abuse, the criminal complaint charges that Sandra Nsobundu drug the victim by her hair and hit her across her face because she did not like the socks the victim put on one of the children.
The victim did not have access to a phone and could not communicate with her family, according the charges. Her movements were mostly limited to the residence and allegedly only allowed out for short walks with the youngest children around her block. The charges outlined in the complaint indicate the victim also did not have access to her passport and other travel documents.
The defendants had previously agreed to pay the woman 20,000 Nigerian nairas - $100 U.S. dollars per month, according to the charges. The Nsobundus allegedly never paid the victim for any of her work here in the U.S.
The victim was rescued Oct. 10, 2015, after more than two years with the Nsobundus in the U.S., following a tip to the National Human Trafficking Resource Center.
If convicted of forced labor, the defendants face up to 20 years in federal prison. For visa fraud, the maximum penalty is a 25-year-federal prison term, while the withholding documents and harboring conspiracy carry as possible punishment a maximum five and 10 years, respectively, upon conviction. All of the charges could also result in a $250,000 maximum fine.
The investigation leading to the filing of criminal charges was the result of an investigation conducted by members of the Human Trafficking Rescue Alliance in Houston, which includes Homeland Security Investigations, Fort Bend Sheriff’s Office and the Department of State - Diplomatic Security Service. Assistant U.S. Attorneys Julie N. Searle and Ruben R. Perez are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Justice Department Sues to Permanently Shut Down Liberty Tax Service Franchise OwnerRead the Press Release
South Carolina Man Allegedly Owns Three Liberty Tax Service Stores Accused of Preparing Fraudulent Tax Returns
Three Columbia-area, South Carolina Liberty Tax Service franchises deliberately prepare false federal income tax returns in order to increase their customers’ refunds, according to a civil lawsuit filed today by the Justice Department. The United States’ complaint asks the U.S. District Court for the District of South Carolina to permanently bar the alleged franchisee for all three locations, Christopher Paul Haynes of Irmo, South Carolina, from preparing federal tax returns for others.
According to the suit, Haynes and his employees prepare tax returns that include misstatements such as false or inflated Schedule C (Profit or Loss From Business) income and expenses, bogus dependents, false filing statuses and improper unreimbursed employee business expenses. For example, the complaint alleges that Haynes’s employees included a bogus “arts and crafts” business on one customer’s tax return and a bogus “hair care” businesses on another’s. In each case, according to the complaint, the false statements purported to allow the customer to qualify for a larger Earned Income Tax Credit and receive inflated tax refunds from the Internal Revenue Service (IRS).
The lawsuit states that Haynes’s Liberty Tax Service offices have prepared more than 9,700 federal income tax returns since 2010. Based on adjustments the IRS has made to tax returns prepared and filed by Haynes’s Liberty Tax Service offices for 2010 to 2013, the average tax deficiency for tax returns audited in connection with the IRS’s investigation of Haynes is $3,834 per tax return, according to the suit.
The complaint also alleges that Haynes does not report to the IRS the wages he pays some of his employees, even though the report is required by law. According to the complaint, Haynes also fails to withhold and pay over to the IRS federal employment taxes for those same employees.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s 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.
Houston Man Charged in Garden Oaks Post Office RobberyRead the Press Release
HOUSTON - A 40-year-old man has been arrested following the filing of a criminal complaint alleging he robbed a post office and brandished a firearm during a crime of violence, announced U.S. Attorney Kenneth Magidson.
Joe Robert Martinez, of Houston, was taken into custody Friday and is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 10:00 a.m. today.
Martinez is charged with robbing the post office in Garden Oaks, located at 3816 North Shepherd in Houston on Jan. 28, 2016. The criminal complaint alleges he entered the post office and inquired about tracking a package. He then exited the building, but soon returned with a gun and allegedly demanded the clerk open the cash drawer and give him money. He ordered her to her knees, then he left with the currency, according to the allegations.
If convicted, he faces up to 25 years in prison for the robbery in addition to mandatory minimum of seven years for the firearms charge.
The charges are the result of an investigation conducted by the U.S. Postal Inspection Service in cooperation with the Houston Police Department. Assistant U.S. Attorneys Joe Porto and Heather Winter are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Guilty Plea in Electric Meter Tampering ScamRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that James E. Nordhausen, age 51, of Ellicott, Maryland,
According to statements made at the plea hearing today and documents filed in court, the defendant worked with others to alter the electric meters affixed to residential and commercial buildings in Delaware and elsewhere. The defendant solicited residents and business owners, telling them that he would install an energy efficient “device” on their electric meters. The defendant gave the victims a flier, stating that he worked for a company called “eShield Technologies”. The flier stated that the installation fees were $500 for a residence, and one month’s average electricity bill for commercial locations. After collecting a fee, the defendant and others altered the electric meters at the victims’ locations. The alterations impacted the power companies’ ability to detect the power used by the victims. As a result, the victims’ electricity bills decreased significantly. Eventually, power company technicians noticed that the meters were the subject of tampering, and the victims became liable for the previously unbilled energy usage. The defendant, together with others, tampered with at least 37 meters, in at least 24 different locations in Delaware and elsewhere, obtaining at least $12,000 in fees.
This case is being investigated by the Federal Bureau of Investigation, with the cooperation and assistance of Delmarva Power, a PHI company.
Greyhound Lines to Resolve Americans with Disabilities ViolationsRead the Press Release
Under the terms of a consent decree filed by the Justice Department today, Greyhound Lines Inc., the nation’s largest provider of intercity bus transportation, will implement a series of systemic reforms to resolve allegations that it repeatedly violated the Americans with Disabilities Act (ADA). Greyhound will pay $300,000 in compensation to certain passengers with disabilities identified by the department and will retain a claims administrator to compensate an uncapped number of additional passengers who have experienced disability discrimination.
The consent decree, pending approval by the U.S. District Court for the District of Delaware, resolves the department’s complaint that Greyhound engaged in a nationwide pattern or practice of violating the ADA by failing to provide full and equal transportation services to passengers with disabilities. The alleged violations include failing to maintain accessibility features on its bus fleet such as lifts and securement devices, failing to provide passengers with disabilities assistance boarding and exiting buses at rest stops; and failing to allow customers traveling in wheelchairs to complete their reservations online.
“The ADA guarantees people with disabilities equal access to transportation services so that they can travel freely and enjoy autonomy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Today’s agreement marks a major step toward fulfilling the promise of the ADA, and we applaud Greyhound for entering the consent decree.”
“We are fully committed to ensuring equal access to all opportunities society has to offer, including transportation services,” said U.S. Attorney Charles M. Oberly III of the District of Delaware.
Under the terms of the agreement, Greyhound – which serves more than 3,800 destinations and more than 18 million passengers each year across North America – will compensate several classes of passengers who faced barriers because of their disabilities. Through a claims administrator, Greyhound will compensate individuals who experienced barriers based on disability during the three years prior to today’s filing. There is no cap on the number of individuals who may submit claims or on the total amount to be disbursed by Greyhound through this process. In addition, Greyhound will be required to pay a total of $300,000 among specific individuals identified by the department who experienced ADA violations. Greyhound will also pay a civil penalty to the United States in the amount of $75,000.
In addition, the agreement mandates that Greyhound implement a series of systemic reforms, including the following:
- hire an ADA Compliance Manager;
- require all employees and contractors who may interact with the public to attend annual in-person training on the ADA;
- provide technical training to all employees and contractors on the proper operation of accessibility features of Greyhound’s fleet;
- report every three months to the department on its compliance efforts; and
- ensure that persons with disabilities can make reservations for travel, and lodge disability-related requests, through its online booking system.
Individuals who experienced disability-related discrimination while traveling or attempting to travel on Greyhound buses during the previous three years may be eligible to receive a monetary award. The claims administrator for the fund will be posted on Greyhound’s website, and on the department’s Disability Rights Section’s website at www.ada.gov following entry of the consent decree by the court. Questions about making claims should be directed to the claims administrator.
To read the consent decree and complaint, please visit www.ada.gov. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Greyhound Consent Decree
Greyhound Lines to Resolve Americans with Disabilities ViolationsRead the Press Release
WILMINGTON, Del. – Under the terms of a consent decree filed by the Justice Department today, Greyhound Lines Inc., the nation’s largest provider of intercity bus transportation, will implement a series of systemic reforms to resolve allegations that it repeatedly violated the Americans with Disabilities Act (ADA). Greyhound will pay $300,000 in compensation to certain passengers with disabilities identified by the department and will retain a claims administrator to compensate an uncapped number of additional passengers who have experienced disability discrimination.
The consent decree, pending approval by the U.S. District Court for the District of Delaware, resolves the department’s complaint that Greyhound engaged in a nationwide pattern or practice of violating the ADA by failing to provide full and equal transportation services to passengers with disabilities. The alleged violations include failing to maintain accessibility features on its bus fleet such as lifts and securement devices, failing to provide passengers with disabilities assistance boarding and exiting buses at rest stops; and failing to allow customers traveling in wheelchairs to complete their reservations online.
“The ADA guarantees people with disabilities equal access to transportation services so that they can travel freely and enjoy autonomy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Today’s agreement marks a major step toward fulfilling the promise of the ADA, and we applaud Greyhound for entering the consent decree.”
“We are fully committed to ensuring equal access to all opportunities society has to offer, including transportation services,” said U.S. Attorney Charles M. Oberly III of the District of Delaware.
Under the terms of the agreement, Greyhound – which serves more than 3,800 destinations and more than 18 million passengers each year across North America – will compensate several classes of passengers who faced barriers because of their disabilities. Through a claims administrator, Greyhound will compensate individuals who experienced barriers based on disability during the three years prior to today’s filing. There is no cap on the number of individuals who may submit claims or on the total amount to be disbursed by Greyhound through this process. In addition, Greyhound will be required to pay a total of $300,000 among specific individuals identified by the department who experienced ADA violations. Greyhound will also pay a civil penalty to the United States in the amount of $75,000.
In addition, the agreement mandates that Greyhound implement a series of systemic reforms, including the following:
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hire an ADA Compliance Manager;
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require all employees and contractors who may interact with the public to attend annual in-person training on the ADA;
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provide technical training to all employees and contractors on the proper operation of accessibility features of Greyhound’s fleet;
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report every three months to the department on its compliance efforts; and
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ensure that persons with disabilities can make reservations for travel, and lodge disability-related requests, through its online booking system.
Individuals who experienced disability-related discrimination while traveling or attempting to travel on Greyhound buses during the previous three years may be eligible to receive a monetary award. The claims administrator for the fund will be posted on Greyhound’s website, and on the department’s Disability Rights Section’s website at www.ada.gov following entry of the consent decree by the court. Questions about making claims should be directed to the claims administrator.
To read the consent decree and complaint, please visit http://www.ada.gov/greyhound/greyhound_cd.html. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
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Former South Bend, Indiana, Police Officer Pleads Guilty to Violating Civil Rights of ArresteeRead the Press Release
The Justice Department announced today that Theodore Robert, 41, a former police officer with the South Bend, Indiana, Police Department (SBPD), pleaded guilty today in federal court to violating the civil rights of an arrestee.
During his guilty plea before U.S. Magistrate Judge Christopher A. Nuechterlein of the Northern District of Indiana, Robert admitted that, acting under his authority as an SBPD officer, he punched a handcuffed victim in the face, as multiple officers attempted to intervene. He also admitted that, prior to punching the victim in the face, he forcefully pushed the victim into a wall and pressed his arm against the victim’s head and throat. Robert’s actions caused the victim to suffer a laceration above the eye. According to information presented in court, the incident occurred at the St. Joseph County Jail in South Bend and was recorded by the jail’s surveillance cameras.
“When police officers violate the laws they swear to uphold, it threatens the credibility of our criminal justice system,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute and hold accountable those officers who violate the constitutional rights of people in their custody.”
A sentencing hearing has been scheduled for May 19, 2016. Robert faces a maximum sentence of 10 years in prison.
This case was investigated by the FBI Indianapolis Division’s South Bend Resident Agency. The case is being prosecuted by Trial Attorneys Stephen Curran and Sanjay Patel of the Civil Rights Division, with the assistance of the U.S. Attorney’s Office of the Northern District of Indiana.
Robert Plea Agreement
Former South Bend, Indiana, Police Officer Pleads Guilty to Violating Civil Rights of ArresteeRead the Press Release
WASHINGTON – The Justice Department announced today that Theodore Robert, 41, a former police officer with the South Bend, Indiana, Police Department (SBPD), pleaded guilty today in federal court to violating the civil rights of an arrestee.
During his guilty plea before U.S. Magistrate Judge Christopher A. Nuechterlein of the Northern District of Indiana, Robert admitted that, acting under his authority as an SBPD officer, he punched a handcuffed victim in the face, as multiple officers attempted to intervene. He also admitted that, prior to punching the victim in the face, he forcefully pushed the victim into a wall and pressed his arm against the victim’s head and throat. Robert’s actions caused the victim to suffer a laceration above the eye. According to information presented in court, the incident occurred at the St. Joseph County Jail in South Bend and was recorded by the jail’s surveillance cameras.
“When police officers violate the laws they swear to uphold, it threatens the credibility of our criminal justice system,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute and hold accountable those officers who violate the constitutional rights of people in their custody.”
A sentencing hearing has been scheduled for May 19, 2016. Robert faces a maximum sentence of 10 years in prison.
This case was investigated by the FBI Indianapolis Division’s South Bend Resident Agency. The case is being prosecuted by Trial Attorneys Stephen Curran and Sanjay Patel of the Civil Rights Division, with the assistance of the U.S. Attorney’s Office of the Northern District of Indiana.
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Former Rockford Physician Pleads Guilty to Bankruptcy FraudRead the Press Release
ROCKFORD — A former Rockford physician pleaded guilty today before U.S. District Judge Frederick J. Kapala to making false statements in a bankruptcy case. LYNN Y. ZOIOPOULOS (also known as Lynn Shelton-Zoiopoulos), 60, now of Chicago, Ill., filed a Chapter 7 Bankruptcy Petition on Aug. 11, 2009. According to the written plea agreement, Zoiopoulos signed a declaration under penalty of perjury that the schedules she filed in the bankruptcy case were true and correct to the best of her knowledge, information, and belief. However, as Zoiopoulos admitted in the plea agreement, she had an interest in the estate of her deceased grandmother that she had intentionally concealed in order to deceive the bankruptcy trustee.
In the plea agreement, Zoiopoulos also admitted to defrauding her grandmother’s estate. According to the plea agreement, Zoiopoulos was appointed Executor of her deceased grandmother’s estate in 2001. As Executor, Zoiopoulos opened a bank account with the balance reaching up to $855,178 in May 2006. In October 2008, Zoiopoulos used $550,000 of the money from that account to purchase an annuity contract, which after its purchase became an asset of the estate. Between June 2008 and November 2012, with the intent to deceive and defraud the estate, Zoiopoulos embezzled assets of the estate by converting them to her own use, knowing she had a fiduciary duty not to use the assets of the estate for her personal benefit. Zoiopoulos further admitted she tried to conceal her embezzlements by not filing the required inventory, accounting, tax returns, and status reports for the estate.
Zoiopoulos also admitted she intended to conceal her embezzlements by sending $35,000 to her sister for the purpose of lulling her sister into believing the estate was being properly administered. Along with the payment, Zoiopoulos sent her sister a letter indicating she had invested the rest of the estate money. Zoiopoulos admitted in the plea agreement that she had not reinvested the money, but had embezzled it, and had sent the letter to her sister for the purpose of preventing her sister from making further inquiries into the status of the estate.
In October of 2012, Zoiopoulos took the remaining balance of the annuity, $227,170.18, and used the money for her personal benefit although she knew the money was an asset of the estate.
Providing material false statements or documents under penalty of perjury in a bankruptcy case carries a maximum penalty of 5 years in prison, a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years, and restitution. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Zoiopoulos is set for May 12, 2016, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorneys Michael D. Love and Margaret J. Schneider.
Plea Agreement
Former Maintenance Manager at Foster Farms Pleads Guilty to Conspiring to Commit Mail FraudRead the Press Release
FRESNO, Calif. — Surjit Toor, 61, of Hilmar, pleaded guilty today to conspiring to commit mail fraud in a scheme that defrauded Foster Farms of nearly $47,000, United States Attorney Benjamin B. Wagner announced.
According to court documents, Surjit Toor was a maintenance manager at the Foster Farms processing plant in Livingston and was responsible for selecting third-party vendors to perform work at the plant. From February 2012 to April 2012, he conspired with his son, Raju Toor, 34, who ran a construction company, to bill Foster Farms for work that the construction company never performed. The falsely billed projects included the construction of an inspection catwalk and the modification of a large metal tank designed to hold ammonia. After fraudulently receiving payment from Foster Farms, Raju Toor transferred the majority of the funds back to his father.
As part of his plea agreement, Surjit Toor agreed to pay $46,979 in restitution to Foster Farms, which he provided to the court today. Raju Toor entered into a deferred prosecution agreement with the United States, which was approved by the court on January 29, 2016. According to the agreement, if Raju Toor does not engage in any fraudulent conduct, does not commit any crime, and the restitution amount is paid by the time of the sentencing of Surjit Toor, then after a 12 month period, the United States will seek dismissal of the charges against Raju Toor in the indictment.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.
Surjit Toor is scheduled to be sentenced by United States District Judge Dale A. Drozd on May 16, 2016, at 10:00 a.m. Surjit Toor faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Las Cruces Elementary School Janitor Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – David Anaya Garcia, 32, of Las Cruces, N.M., pleaded guilty today in federal court to a federal child pornography charge. At the time he committed the crime, Garcia was employed as a janitor in a Las Cruces elementary school.
Garcia was arrested in July 2015, on a criminal complaint charging him with distribution of child pornography and possession of child pornography. According to the complaint, Homeland Security Investigations (HSI) initiated the federal investigation leading to Garcia’s arrest in June 2015, after the New Mexico Office of the Attorney General reported that an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Garcia’s residential address was being used to download child pornography. The Las Cruces Police Department and HSI arrested Garcia and executed a federal search warrant at his residence on July 1, 2015.
Garcia was subsequently indicted on Sept. 16, 2015, and charged with distributing child pornography on March 26, 2015, receiving child pornography from March 2015 through April 2015, and possessing child pornography on July 1, 2015. All offenses charged in the indictment occurred in Doña Ana County, N.M.
During today’s proceedings, Garcia pled guilty to receipt and distribution of child pornography and admitted that between March 12, 2015 and April 30, 2015, he distributed child pornography through file-sharing software that allowed others to download the images and videos he saved to a shared folder. Garcia further admitted that on July 2, 2015, agents from HSI executed a search warrant on his home where they seized an HP Pavilion laptop containing five images and 88 videos depicting child pornography and a thumb-drive containing 56 images and 55 videos depicting child pornography.
At sentencing, Garcia faces a statutory mandatory minimum penalty of five years and a maximum of 20 years in federal prison followed by not less than five years of supervised release. Garcia will also be required to register as a sex offender.
This case was investigated by the Las Cruces office of HSI, the Las Cruces Police Department, the New Mexico Office of the Attorney General, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case is being prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Hell’s Angels Associate Sentenced for Destroying EvidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Timothy M. Stone, 36, of East Rochester, NY, who was convicted of being an accessory after the fact to an assault with a dangerous weapon in aid of racketeering activity, was sentenced to 12 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that in the late night hours on May 31, 2006, a male patron at Spenders Bar in Rochester was assaulted with a baseball bat. At the time, Spenders Bar was equipped with interior surveillance cameras that recorded the area in the bar where the assault occurred. The recordings were stored on a computer hard drive. In the early morning hours on June 1, 2006, Stone – knowing that others had committed the assault with the baseball bat in aid of racketeering – went to Spenders Bar, forcibly removed the hard drive, and took the hard drive from the bar. The defendant later destroyed the hard drive and the baseball bat used to commit the assault to assist the perpetrators of the assault in order to prevent their apprehension by the police.
This case was part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Monterey (California) Hell's Angels President Richard W. Mar, Rochester Hell's Angels members James H. McAuley, Jr., of Oakfield, NY, and Jeffrey A. Tyler, of Rochester, and Donna Boon, of Oakfield, NY, were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. Three other defendants – Paul Griffin, of Blasdell, NY, Richard E. Riedman, of Webster, NY, and Gordon L. Montgomery, of Batavia, NY – were convicted for their roles in the methamphetamine conspiracy. Griffin was sentenced to probation and Riedman to 37 months in prison. Montgomery will be sentenced on May 3, 2016.
Rochester Hell's Angels member Robert W. Moran, Jr., of Rochester, along with Gina Tata, also of Rochester, are charged in the same indictment with assault with a dangerous weapon in aid of racketeering activity, and McAuley, Moran and Tata are charged with conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. In addition, Tata is charged with being an accessory after the fact to the assault and conspiracy.A jury trial for the remaining six defendants – Mar, McAuley, Moran, Boon, Tyler and Tata – is scheduled to begin on March 7, 2016, before U.S District Judge Lawrence J. Vilardo. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, the City of Batavia Police Department, under the direction of Chief Sean Shawn Heubusch, and the Village of LeRoy Police Department.
Former Freedom Industries owner latest sentenced for role in chemical spillRead the Press Release
CHARLESTON, W.Va. – A former owner of Freedom Industries was sentenced today to three years of probation and a $20,000 fine for an environmental crime connected to the 2014 Elk River chemical spill, announced Acting United States Attorney Carol Casto. William E. Tis, of Verona, Pennsylvania, previously pleaded guilty to unlawfully discharging refuse matter in March 2015. Tis is one of six former officials of Freedom Industries, in addition to Freedom Industries itself as a corporation, to be prosecuted for federal crimes associated with the chemical spill.
On January 9, 2014, a major chemical leak was discovered in Charleston at the above-ground storage tank area owned and operated by Freedom Industries (Freedom) on the Elk River. Freedom used these storage tanks to keep and process chemicals, and the leak consisted primarily of 4-methylcyclohexane methanol (MCHM), a chemical used in the coal mining industry as a cleansing agent. A significant amount of MCHM leaked into the Elk River, flowed into a water treatment plant, and contaminated the water supply of Charleston and the surrounding areas for several days. Freedom did not have a permit required by law that would have allowed the company to discharge MCHM into the Elk River.
Tis, along with co-defendants Dennis P. Farrell and Charles E. Herzing, owned Freedom until December 2013, when they sold their shares to a Pennsylvania corporation. From 2004 until the 2013 sale, Tis served as the secretary of Freedom. In this role, Tis had the responsibility and the authority to ensure that Freedom and its facility on the Elk River complied with the law.
Freedom had a permit issued by West Virginia’s Department of Environmental Protection that allowed for the discharge of storm water and groundwater subject to monitoring and reporting requirements. However, this permit did not allow for the discharge of MCHM, and required the development and maintenance of a storm water plan and a groundwater plan. Generally, storm water and groundwater plans identify potential sources of pollution and outline steps to prevent, contain, and reduce pollutants.
Tis admitted that he was aware of the permit and was put on notice that Freedom was required to have a storm water plan. He further admitted that he had the responsibility to ensure that Freedom complied with the permit by having a storm water and groundwater plan in place. During Tis’ tenure as a corporate officer, Freedom never developed a storm water or groundwater plan, which was a contributing cause to the chemical spill.
Tis is one of five defendants that have been sentenced as part of the investigation into the chemical spill. Robert J. Reynolds, of Apex, North Carolina, who worked as an environmental consultant with Freedom, was sentenced on February 1, 2016, for negligently discharging a pollutant. Charles E. Herzing, of McMurray, Pennsylvania, a former owner and vice president of Freedom, was sentenced on February 2, 2016, for unlawfully discharging refuse matter. Freedom, as a corporation, was sentenced on February 4, 2016, for negligently discharging a pollutant, unlawfully discharging refuse matter, and knowingly violating an environmental permit. Michael E. Burdette, of Dunbar, a former plant manager for Freedom’s facility on the Elk River, was sentenced on February 4, 2016, for negligently discharging a pollutant.
Dennis P. Farrell, of Charleston, a former Freedom president and owner, pleaded guilty in August 2015 to violating the Refuse Act and violating a permit by failing to have a pollution prevention plan. Farrell is scheduled to be sentenced on February 11, 2016.
Gary Southern, of Marco Island, Florida, the president of Freedom at the time of the spill, pleaded guilty in August 2015 to negligently discharging a pollutant, unlawfully discharging refuse matter in violation of the Refuse Act, and violating a permit by failing to have a pollution prevention plan. Southern is scheduled to be sentenced on February 17, 2016.
The investigation of the chemical spill was conducted by the Federal Bureau of Investigation and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorneys Philip H. Wright, Larry R. Ellis, and Eric P. Bacaj, as well as the Environmental Protection Agency’s Regional Criminal Enforcement Counsel Perry D. McDaniel, are handling the prosecutions. United States District Judge Thomas E. Johnston imposed the sentence, and will preside over the remaining sentencing hearings associated with the chemical spill.
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Former Controller of Company in Lenexa to $135,000 EmbezzlementRead the Press Release
KANSAS CITY, KAN. – The former controller of a company in Lenexa pleaded guilty Monday to embezzling more than $135,000, U.S. Attorney Barry Grissom said.
Alan Wenk, 43, pleaded guilty to two counts of bank fraud. In his plea, he admitted the crimes occurred while he worked as the regional controller and corporate accounts payable manager for Performance Contracting Group, Inc. (PCG), headquartered in Lenexa. The company, with 50 offices throughout the United States, is made up of several companies that provide a wide range of services and products including demolition; lead and asbestos abatement; thermal, fire and acoustical insulation; and recycling processes.
Wenk caused PCG to issue fraudulent checks for payment to him and to business entities he controlled. In all, he fraudulently received 20 checks totaling approximately $135,560.
Sentencing is set for May 16. He faces a maximum penalty of 30 years and a fine up to $1 million on each count. Grissom commended the U.S. Postal Inspection Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Florida Man Pleads Guilty in Manhattan Federal Court in Connection with Two Multimillion-Dollar Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOSEPH DEL VALLE, an owner and partner of various investment companies, pled guilty today in Manhattan federal court to wire fraud and aggravated identity theft charges for operating two fraudulent schemes that resulted in more than $5 million in investor losses. DEL VALLE pled guilty to a four-count Indictment before United States District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara stated: “Joseph Del Valle convinced his clients to invest millions of dollars in his real estate and restaurant projects. But in reality, his clients were only investing in Del Valle’s personal slush fund that he used to supplement his self-indulgent lifestyle. Del Valle’s plea today will ensure that he can no longer victimize any other investors.”
According to the Indictment, and other statements made in open court:
The Project Miami Scheme
Beginning in 2005, JOSEPH DEL VALLE, a co-conspirator (“CC-1”), and an employee of Vanquish Acquisition Partners LLC began soliciting investors for a real estate development project in the Little Havana neighborhood of Miami (referred to herein as “Project Miami”). Project Miami involved two high-rise buildings in which the bottom floors would house retail shops and the top floors would be residential condominiums. Project Miami was designed to provide affordable housing to middle-income individuals and included an arrangement for financing so that purchasers of the condominiums would receive government-subsidized mortgages. From 2005 through 2007, DEL VALLE, CC-1, and the employee obtained approximately $6.4 million from investors for Project Miami.
Prior to making any investments, investors were told that the investment was solely for Project Miami. Investors were provided with various materials that specified the investments were for Project Miami, and that DEL VALLE and his company would only take a 5 percent management fee. However, almost immediately after investors transferred funds for Project Miami, almost all of which were sent to banks in Manhattan, New York, DEL VALLE and CC-1 transferred amounts far greater than 5 percent to other bank accounts and began using the funds for other purposes, including investments in a wine magazine and for DEL VALLE’s personal use. For example, in October 2007, DEL VALLE used $30,000 of investor money in Europe for, among other things, hotels, restaurants, a cruise, and cash withdrawals. In total, DEL VALLE and CC-1 used more than $3 million for other investments or personal expenses.
When investors became suspicious and requested financial statements for their investments and a return of their money, DEL VALLE represented to investors in phone calls and e-mail communications that the investment funds were secure when, in fact, a large portion of the investors’ money had already been misappropriated and/or diverted to other uses. DEL VALLE also falsely told investors that financial statements were in the process of being prepared and would be mailed to them shortly, but in fact, DEL VALLE and CC-1 had not provided any financial information to the accountant responsible for the preparation of financial statements of the relevant entities.
The Project WT/Bistro, Project Chateau & Project Rioja Scheme
From 2009 through 2014, DEL VALLE conducted a second scheme in which he solicited investors to wire investments to various bank accounts for the purpose of investing in three purported investment projects, Project WT (later named Project Bistro), Project Rioja, and Project Chateau, all of which DEL VALLE controlled. According to DEL VALLE, Project WT/Bistro was created for the purpose of raising money to expand two restaurants, Project Chateau was created for the purpose of raising money to invest in the high-end segment of the hospitality industry, and Project Rioja was created for the purpose of raising money to invest in the high-end segment of the wine industry. DEL VALLE raised more than $2 million from investors for these projects.
Among other things, DEL VALLE falsely represented to investors that their money would be used solely to fund the specific projects in which the investors had decided to invest. However, almost immediately after investors transferred funds to bank accounts controlled by DEL VALLE, DEL VALLE withdrew money from the bank accounts (often through debit card purchases, ATM withdrawals, and wire transfers) and spent approximately all of the funds on restaurants, hotels, clothing, mortgage payments, and payments to DEL VALLE’s family members and his fiancée, among other things. In addition, to induce investors to invest money in the specific projects, DEL VALLE frequently sent investors multiple fabricated emails that purported to come from well-known chefs and businesspeople.
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DEL VALLE, 61, of Aventura, Florida, pled guilty to one count of conspiracy to commit wire fraud and two counts of wire fraud, both of which carry a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. DEL VALLE will be sentenced May 10, 2016.
Mr. Bharara praised the work of the FBI.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ 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. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Aimee Hector and Damian Williams are in charge of the prosecution.
Five Men Charged with Conspiracy to Distribute 55 Kilograms of NarcoticsRead the Press Release
NEWARK, N.J. – Five men who were arrested in Passaic County, New Jersey, with a combined 55 kilograms of heroin and cocaine in their possession appeared in Newark federal court today, U.S. Attorney Paul J. Fishman announced.
Edwin Alamo Jr., 21, of Bronx, New York, Sauro D. Estevez Figueredo, 48, of Miami, Florida, Emmanuel Gonzalez, 31, of Bronx, New York, Alberto Mora, 52, of Morriston, Florida, and Porfirio Peralta-Nunez, 37, of Jersey City, New Jersey, are each charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute a kilogram or more of heroin. Figueredo and Mora are also charged with one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
All five defendants appeared this afternoon before U.S. Magistrate Judge James B. Clark III and were remanded into custody.
According to the complaint filed today:
On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Figueredo and Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Gonzalez and Alamo drove to the tractor trailer and left with a suitcase given to them by Mora. Later, Peralta-Nunez arrived at the tractor trailer with two empty bags and left shortly afterwards with the bags filled.
Subsequent traffic stops later revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession and 13 kilograms of heroin in Peralta-Nunez’s possession. Law enforcement also found 20 kilograms of cocaine still remaining at the tractor trailer, resulting in a total of 55 kilograms of seized narcotics. All five defendants were arrested that day.
The drug distribution conspiracy charges each carry a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine.
The government is represented by Assistant U.S. Attorney Meredith Williams and Mary Toscano, Deputy Chief of the General Crimes Unit of the U.S. Attorney’s Office in Newark.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s charges.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense Counsel:
Alamo: Chester Keller Esq., First Assistant Public Defender, Newark
Figueredo: Michael D’Alessi Esq.
Gonzalez: James Murphy Esq., Princeton, New Jersey
Mora: David Schafer Esq., Assistant Federal Public Defender, Trenton
Peralta-Nunez: Brian Neary., Esq., Hackensack, New Jersey
Ex-CEO of McAllen-Based Trucking Company Sentenced in $11 Million Fraud SchemeRead the Press Release
HOUSTON – The former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry, has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Sergio Lagos, 46, pleaded guilty Jan. 20, 2015, to conspiracy to commit wire fraud and six counts of wire fraud. Also sentenced today were Aurelio “Jim” Aleman, 62, and Oscar Barbosa, 53, former chief operations officer and former controller for the company, respectively, who pleaded guilty to conspiracy to commit wire fraud on Sept. 16, 2013.
Today, U.S. District Judge Kenneth M. Hoyt ordered Lagos to serve a total of 97 months in federal prison to be immediately followed by three years of supervised release. Aleman and Barbosa were handed respective sentences of 47 and 24 months, also followed by three-year-terms of supervised release. The court further ordered restitution in the amount of $15,970,517.37 which includes payment for attorney fees and investigative fees incurred by GE Capital in investigating the magnitude and extent of the defendants’ fraud.
According to records, Aleman and Lagos entered into a financing agreement with GE Capital Corporation (GECC) under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV justified advances on the line of credit by submitting “borrowing base certificates” to GECC.
Lagos admitted that from March 2008 through the end of January 2010, he joined in a scheme to defraud and swindle GECC, a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. At the plea hearing, Lagos admitted he schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos and his co-defendants misrepresented USADV’s true operating performance and financial results to include the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
Lagos signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise have been permitted. Lagos perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos also admitted to submitting false financial statements to auditors and GECC.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy and is no longer operational.
The three defendants were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant U.S. Attorney (AUSA) Casey N. MacDonald and former AUSA Grady J. Leupold prosecuted the case.
Erie Woman Had Role in Mexico to Texas to Erie Cocaine Distribution RingRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Sammar Aimee Melchor, 34, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Melchor engaged in a conspiracy to distribute and possess with intent to distribute between five and fifteen kilograms of cocaine which she obtained from other co-conspirators. The court was also advised that on or about October 28, 2014, Melchor distributed and possessed with intent to distribute 6 ounces of cocaine. The court was advised that the cocaine was distributed in Erie as part of a large network transporting cocaine from Mexico into Texas, and from Texas to Erie, Pennsylvania concealed in hidden compartments in vehicles.
Judge Cercone scheduled sentencing for June 13, 2016. The law provides for a total sentence of years 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives conducted the investigation that led to the prosecution of Melchor.
Erie Felon Sentenced to Prison for Illegally Possessing PistolRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 24 months in jail on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Vincent Andrew Feliciano, 25.
According to information presented to the court, Feliciano was found in possession of a Springfield Armory .40 caliber pistol in his residence in Erie, at the time a federal search warrant was being executed. Feliciano is prohibited from possessing firearms because he is a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Prior to imposing sentence, Judge Cercone discussed the seriousness of the defendant’s unlawful possession of a firearm and the fact that Feliciano was on parole from an earlier firearm possession conviction in state court.
U.S. Attorney Hickton commended the Organized Crime Drug Enforcement Task Force (OCDETF) for the investigation leading to the successful prosecution of Feliciano. The OCDETF task force includes The Department of Homeland Security, Immigration and Customs Enforcement, the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Defendant Sentenced to 5 Years in Prison for Marijuana Cultivation Operation in the Sierra National ForestRead the Press Release
FRESNO, Calif. — Juan Pedro Jimenez, 40, of Mexico, was sentenced today to five years in prison for conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possess with intent to distribute marijuana in connection with a large-scale cultivation operation on Chowchilla Mountain in Mariposa County in the Sierra National Forest in Mariposa County, United States Attorney Benjamin B. Wagner announced.
According to court documents, Jimenez was found at the cultivation site on public land in July. Agents removed 6,919 marijuana plants from the site and found fertilizer, trash, water lines, and propane tanks. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Water was diverted from a nearby creek to irrigate the plants. Jimenez pleaded guilty on November 18, 2015.
This case was the product of an investigation by the U.S. Forest Service and the Mariposa County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Dearborn Heights Resident Charged with Illegal Possession of FirearmRead the Press Release
A 21-year-old Dearborn Heights man was charged in a criminal complaint with possession of a firearm by an unlawful user of a controlled substance, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. According to the complaint, on October 5, 2015, Khalil Abu-Rayyan purchased a .22 caliber revolver from a sporting goods store in Dearborn Heights. At the time of purchase, Abu-Rayyan made a false statement on ATF Form 4473, stating “no” in response to a question that asks whether the purchaser is an unlawful user of a controlled substance. On November 15, 2015, Abu-Rayyan attempted to purchase another pistol from a different sporting goods store, however, due to pending state charges, was unable to purchase the pistol. On that occasion, Abu-Rayyan again falsely stated on ATF Form 4473 that he was not an unlawful user of a controlled substance. Abu-Rayyan subsequently admitted to law enforcement that he was an habitual user of marijuana during the time period in which he purchased the .22 caliber revolver. Abu-Rayyan has also since pleaded guilty to possession of marijuana in a state case, and is currently awaiting trial in state court on the charge of carrying a concealed weapon in an automobile. According to the complaint, photographs and postings on Abu-Rayyan's social media sites, as well as conversations with an undercover FBI employee, indicated his support for the Islamic State of Iraq and Levant, a designated foreign terrorist organization, and his desire to conduct a martyrdom operation, including with the use of firearms. On February 4, 2016, FBI agents arrested Abu-Rayyan on charges of being an unlawful user of a controlled substance (marijuana) in possession of a firearm which travelled in interstate commerce. Abu-Rayyan appeared in federal court in Detroit before United States Magistrate Elizabeth Stafford, and was assigned appointed counsel and ordered temporarily detained pending a hearing. That hearing was scheduled for today, but it was adjourned at the request of Abu-Rayyan because he has recently retained an attorney. The hearing is now scheduled for February 10. "Threats of this nature, regardless of where they originate, or who they target, are always taken seriously," said David P. Gelios, Special Agent in Charge, FBI - Detroit Division. "The FBI acted quickly and comprehensively to investigate and arrest Mr. Rayyan upon the receipt of information that he posed a potential public safety threat. The investigative actions prior to his arrest included 24/7 surveillance to ensure there was a prompt response to any attempted violent act." If convicted of the charged offense, Abu-Rayyan faces a term of up 10 years in federal prison. A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.Clarksburg man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brian K. Dixon, 47, of Clarksburg, was sentenced today to 15 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Dixon sold heroin in Harrison County. He pled guilty in October 2015 to one count of “Distribution of Heroin.”
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Chiropractor Sentenced for Insurance FraudRead the Press Release
COLUMBUS, Ohio – Jeffrey R. Shope, 45, of Blacklick, Ohio, was sentenced in U.S. District Court to one year and one day in prison for one count of insurance fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Lieutenant Governor Mary Taylor, Director of Ohio Department of Insurance and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, Shope was a licensed chiropractor and owner of True Health Chiropractic in Westerville, Ohio. From January 2009 to December 2012, Shope made false statements to defraud federal health care benefit programs and obtained nearly $700,000 in fraudulent payments. Shope would bill for equipment and services not rendered to maximize insurance payments and would bill two separate programs for identical services provided to the same patients on the same day.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Ohio Department of Insurance, as well as Assistant United States Attorney Ken Affeldt, who represented the United States in this case.
Charlotte Man Sentenced to over 10 Years for Armed Robbery and CarjackingRead the Press Release
CHARLOTTE, N.C. – Earlier today, U.S. District Judge Max O. Cogburn, Jr. handed down a lengthy prison term to a Charlotte man involved in a 2014 armed robbery and carjacking, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn ordered Davonte Antonio Smith, 24, of Charlotte to serve 121 months in prison and two years of supervised release.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to filed court documents and court proceedings, on or about June 25, 2016, at approximately 8:30 p.m., Smith and a conspirator robbed and carjacked a victim in the parking lot of a Sam’s Mart, located in Charlotte, N.C. Court records show that Smith made arrangements to meet the victim to buy a pound of marijuana from him in exchange for $3,800. Court records show that Smith and his conspirator instead assaulted and robbed the victim at gunpoint, and Smith fled the scene in the victim’s vehicle. According to court records, Smith drove at high speeds to try to elude the police before being apprehended.
Smith pleaded guilty in May 2015 to one count armed robbery and one count of carjacking. In handing down the sentence today, Judge Cogburn stated that, “These violent crimes need to be stopped-must be stopped.”
Smith is currently in 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 by the ATF and CMPD. Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Charlotte Area Tax Return Preparer Sentenced to 27 Months for $2.6 Million Tax Return FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte-area tax return preparer was handed down a 27-month prison sentenced today for aiding or assisting in the filing of a false claim for tax refund, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Fitzroy E. Lawrence, 48, of Charlotte, was also ordered by U.S. District Judge Max O. Cogburn to serve 2 years under court supervision and to pay $2,635,641.00 as restitution to the Internal Revenue Service.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman, III, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to the filed court documents and today’s sentencing hearing, for tax years 2008 through 2011, Lawrence aided and assisted in the preparation of hundreds of false tax returns which were filed with the IRS, seeking fraudulent tax refunds totaling approximately $2.6 million. Court records show that many of the filed fraudulent tax returns included false wages and false dependent information. In June 2015, Lawrence pleaded guilty to one count of aiding or assisting in filing a false claim against the United States.
Judge Cogburn noted that that conduct in this case was “egregious” and emphasized the importance for all Americans to pay their fair share of taxes.
Lawrence will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
IRS-CI investigated the case. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution. Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Charleston pill dealer pleads guilty in Federal courtRead the Press Release
CHARLESTON, W.Va. – A Charleston man caught smuggling oxycodone through the mail pleaded guilty today, announced Acting United States Attorney Carol Casto. Kenneth Edward Campbell, 48, entered his guilty plea in federal court to conspiracy to distribute oxycodone.
On August 23, 2013, the United States Postal Inspection Service intercepted a package containing oxycodone that had been sent from Detroit to an address in Charleston. An undercover officer posing as a mail carrier delivered the package and confronted the man who accepted delivery. That man told police that Campbell had offered to give him oxycodone if he would allow the drug parcel to be delivered to his residence. Officers used the man to conduct a controlled delivery of the package to Campbell at his place of employment on the West Side of Charleston. Campbell was arrested upon taking possession of the package.
Campbell faces up to 20 years in federal prison when he is sentenced on May 11, 2016.
This case was investigated by the United States Postal Inspection Service and the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The hearing was held before United States District Judge John T. Copenhaver, Jr.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Canadian Sentenced to Five Years for Mail and Wire Fraud ConspiracyRead the Press Release
RICHMOND, Va. – David Solomon, aka David Chityal, 39, of Budapest, Hungary, was sentenced today to 60 months in prison for his role in a conspiracy to commit mail and wire fraud.
Solomon pleaded guilty on Nov. 30, 2015. According to court documents, Solomon admitted that he was incarcerated in a federal correctional facility with an individual identified as Conspirator 1, from approximately September 2009 to March 8, 2010. Conspirator 1 previously was convicted in the Eastern District of Virginia of a $126 million fraud scheme, sentenced to 100 years in prison, and was ordered to pay approximately $128 million in restitution to victims of his fraud. Conspirator 1 previously had conveyed certain assets to his Bankruptcy Estate for this restitution, including approximately $2 million in tax refunds. When Solomon was released from prison and deported to his native Canada, he remained in touch with Conspirator 1, and together they engaged in a scheme to obtain these approximately $2 million in tax refunds so that Conspirator 1 could obtain a particular New York attorney for his criminal appeal. Using this attorney, Solomon and Conspirator 1 changed the Internal Revenue Service (IRS) power of attorney forms so that the tax refund checks would be sent to the New York attorney, not Conspirator 1’s Bankruptcy Estate for his victims. In September 2010, the IRS sent the $2 million tax refund checks to the New York attorney, who in turn sent the checks to an attorney in Canada. The Canadian attorney flew to the federal correctional facility in which Conspirator 1 was incarcerated and Conspirator 1 endorsed the checks. The Canadian attorney then flew with the negotiated checks to the Turks and Caicos Islands to deposit them in a trust account. He was within hours of depositing the checks when the lawyer for Conspirator 1’s Bankruptcy Estate trustee learned what had happened and contacted the Canadian attorney. The tax refunds were returned to the Bankruptcy Estate and paid to Conspirator 1’s fraud victims.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas M. Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington D.C. Field Office; David Bowers, Acting Inspector in Charge of the Washington Division of the United States Postal Inspection Service (USPIS); and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Jessica D. Aber and Thomas A. Garnett are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:12cr44.
Bowie Drug Trafficker Convicted for $108 Million Drug Distribution and Money Laundering ConspiraciesRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Andracos Marshall, a/k/a “Draco,” age 41, of Bowie, Maryland, for conspiracy to distribute cocaine, possession with intent to distribute cocaine, and for money laundering conspiracy.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; Chief of Police Robert D. MacLean of the U.S. Park Police; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas Jankowski the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police;.
According to evidence presented at his 13-day trial, from at least January 2011 through January 2015, Marshall conspired with Anthony Torrell Tatum, Ishmael Ford-Bey and others to distribute cocaine and heroin in Prince George’s County, including Oxon Hill, Maryland, and Washington, D.C.
Testimony showed that in from January 2011 until August 2012, Ford-Bey, assisted by Marshall, received multiple kilogram shipments of cocaine from a source in California.
According to witness testimony and court documents, on August 15, 2012, the Texas Department of Public Safety stopped a refrigerated box truck that was transporting 13 boxes, each containing approximately 10 kilograms of cocaine. The boxes were to be delivered to Ford-Bey in Temple Hills, Maryland. A controlled delivery of the boxes was arranged. On August 17, 2012, law enforcement established surveillance at the meeting location in Marlow Heights, Maryland. A few minutes after the truck arrived, a vehicle registered to Ford-Bey at a Mitchellville address arrived at the location. Law enforcement observed the truck driver and Ford-Bey unloading the drugs into Ford-Bey’s vehicle. As Ford-Bey left the area, he was followed by another vehicle being driven by Marshall. As law enforcement officers pursued Ford-Bey, Marshall drove his vehicle in a manner to thwart law enforcement efforts to stop him. Ford-Bey and Marshall eventually abandoned their vehicles after a high-speed chase on I-495 and ran away. Agents recovered the vehicles, the cocaine, cell phones, and other evidence. Marshall remained a fugitive until he was arrested in January 2015.
In an effort to disguise and hide their drug proceeds, Marshall and his co-conspirators used aliases and false identifications and created numerous business entities, which had little, if any, legitimate business. Evidence showed that the co-conspirators used the aliases and false identifications to rent facilities used to further their drug trafficking activities. According to information presented at trial, Marshall and his co-conspirators also rented storage facilities and apartments that were used in furtherance of the drug conspiracy. For example, on February 22, 2013, a third party leased an apartment for Marshall in the 3800 block of Tunlaw Road in Washington, D.C. Investigation revealed that Tatum and Ford-Bey were visitors to the apartment. On October 1, 2013, a search warrant was executed at the apartment. Agents located a safe which contained $823,640 in cash, several expensive watches, and jewelry. In addition, agents recovered scales, three heat sealers, a coffee grinder, a currency counter, and other drug paraphernalia, as well as approximately 150 grams of cocaine base.
Marshall faces a mandatory minimum sentence of five years in prison and a maximum of life in prison for the conspiracy, and for possession with intent to distribute controlled substances; and a maximum of 20 years in prison for money laundering conspiracy. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for June 6, 2016, at 11 a.m.
Five defendants, including Marshall, were convicted federally for their participation in the conspiracy. Co-conspirators Anthony Torrell Tatum, age 37, of Arlington, Virginia; Ishmael Ford-Bey, age 40, of Mitchellville, Maryland; Terrin Tamal Anderson, age 29, of Waldorf, Maryland; and David Allen Jones, age 40, of District Heights, Maryland; previously pleaded guilty and were sentenced to 27 years in prison, 33 years in prison, 12 years in prison and 45 months in prison, respectively. Judge Chasanow also entered an order requiring Tatum and Ford-Bey to pay a $108 million money judgment, and a forfeiture order for personal property, including luxury vehicles, jewelry and cash.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Prince George’s County Police Department, U.S. Park Police, U.S. Postal Inspection Service, IRS-CI, ATF and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston, Ray D. McKenzie, and Thomas P. Windom, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baltimore Man Convicted of Heroin Trafficking Resulting in Death of 21 Year Old Central Pennsylvania ResidentRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eugene Stallings, Jr., age 28, of Baltimore, Maryland, was convicted on February 5, 2016 of heroin trafficking that resulted in death and other charges after a 4-day jury trial in Harrisburg before Chief U.S. District Court Judge Christopher C. Conner.
According to United States Attorney Peter Smith, the jury returned with a guilty verdict to all five counts on the indictment relating to Stallings after less than 2 hours of deliberation. The jury convicted Stallings, aka Bruno, of conspiring to distribute and for distributing more than 100 grams of heroin to Ashley Gries, Danny Forrester, Gabriel Stouffer, and Michael DeCarlo between October 2013 and April 2014. Gries, Forrester and Stouffer traveled from the Shippensburg, Pennsylvania area to purchase heroin from Stallings in Baltimore, and then engaged in heroin trafficking in the Franklin and Cumberland County areas. Gries, Forrester, Stouffer and DeCarlo have pleaded guilty for the roles in the drug trafficking organization.
According to the evidence presented at trial, heroin obtained from Stallings led to the death of 21 year old Kyle Golter in Shippensburg, on February 7, 2014. Franklin County Coroner Jeffrey R. Conner determined that Golter’s death was the result of heroin toxicity. The jury also convicted Stallings of conspiring to distribute and for distributing heroin that resulted in Golter’s death. This charge carries an enhanced penalty requiring a mandatory minimum 20 years’ imprisonment.
U.S. Attorney Smith stated that, “Golter’s death was a senseless tragedy and the serious penalties that the defendant faces reflect the dangerous consequences of trafficking heroin.”
Chief Judge Conner has not scheduled a sentencing date for Stallings, but Stallings will remain detained pending a sentencing hearing.
This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, the Shippensburg Police Department, and the Cumberland County Drug Task Force. The case is being prosecuted by Assistant United States Attorneys Meredith A. Taylor and Scott Ford.
This case is part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baltimore Felon Convicted of Federal Gun Charge and RobberyRead the Press Release
Baltimore, Maryland – A federal jury convicted Alfred Patterson, age 50, of Baltimore, Maryland, late last Friday, February 5, 2016, for robbing a drug dealer and using a gun during the robbery.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to the evidence presented at his five day trial, on January 28, 2015, Baltimore City Police officers were observing the 3600 and 3700 blocks of Beehler Avenue, a known high-crime area. The officers saw a vehicle pull up. Patterson was in the passenger seat. The victim got into the rear side of the car and left the door open, providing officers with an unobstructed view into the car. They saw a brief struggle between the victim, the driver of the car, and Patterson. The officers saw Patterson pull out a handgun and point it at the victim, who jumped out of the car and ran away. The car then drove off at high speed.
The officers radioed to stop the car. Two officers pulled the car over several blocks away and removed the driver and Patterson from the car. A loaded .38 caliber revolver and two ziplock bags of heroin were on the passenger seat where Patterson had been sitting. The officers recovered the gun and the heroin, and arrested Patterson and the driver.
Under an initiative by the Baltimore City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City State’s Attorney’s Office and the United States Attorney’s Office, prosecutors and police review cases of defendants arrested for firearms violations and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
Patterson faces a maximum penalty of 20 years in prison for the robbery and life in prison for using and brandishing a gun during a crime of violence. There is no probation or parole in the federal criminal justice system. U.S. District Judge Richard D. Bennett scheduled Patterson’s sentencing for April 12, 2016, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the Drug Enforcement Administration for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Aaron S. J. Zelinsky and Special Assistant U.S. Attorney Lauren E. Perry, who are prosecuting the case.
Bahamian Man Sentenced to 60 Months in Prison for Alien SmugglingRead the Press Release
A Bahamian man was sentenced to 60 months in prison by U.S. District Judge Kenneth A. Marra in West Palm Beach, following his second conviction for alien smuggling.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Department of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Detric Demetris Butler, 32, of Bahamas, was sentenced on February 5, 2016, following his conviction for one count of transporting aliens into the United States, in violation of Title 8, United States Code, Section 1324(a), as well as one count of failure to heave to a vessel, in violation of Title 18, United States Code, Section 2237.
According to court documents, Butler was at the wheel of a boat from the Bahamas during the night of September 8, 2015, four miles off the Florida coast in the early morning hours opposite St. Lucie County. With Butler in the boat were 20 other passengers, all unauthorized aliens from Haiti and the Bahamas. Two of the aliens aboard were unaccompanied minors. Upon approach by a U.S. Coast Guard cutter, Butler took the helm and attempted to flee and evade the intercepting U.S. vessel. After Butler ignored hailing and a warning shot fired across the bow, the Coast Guard stopped Butler’s vessel with a shotgun blast into the engine of his boat.
Butler was previously convicted of alien smuggling, in 2013, and had been sentenced to three years (36 months) in prison.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the assistance of the U.S. Coast Guard. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Attorney General Lynch to Travel to Portland as Part of National Community Policing TourRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch will travel to Portland in the coming months as part of her national Community Policing Tour. In this phase, the Attorney General will visit six jurisdictions around the country that have excelled in each of the six pillars discussed in the President’s Task Force on 21st Century Policing final report: (1) Building Trust and Legitimacy; (2) Policy and Oversight; (3) Technology and Social Media; (4) Community Policing and Crime Reduction; (5) Officer Training and Education; and (6) Officer Safety and Wellness. The Attorney General is kicking off her tour THURSDAY, FEBRUARY 11, and FRIDAY, FEBRUARY 12, in Miami-Dade County, Florida, to highlight Pillar 1—Building Trust and Legitimacy. In addition to Miami-Dade County, Florida, and Portland, Attorney General Lynch will also visit Indianapolis, Indiana; Fayetteville, North Carolina; Phoenix, Arizona; and Los Angeles, California. The stop in Portland will highlight Pillar 4—Community Policing and Crime Reduction.
“One of my top priorities as Attorney General is strengthening relationships between law enforcement officers and the communities we serve and protect,” said Attorney General Loretta Lynch. “During the second phase of my community policing tour, I will be highlighting some of the innovative efforts underway around the country to build trust, foster cooperation, and enhance public safety. I look forward to meeting with law enforcement officers, local leaders, and residents in the weeks and months ahead to discuss how we can ensure that every American benefits from neighborhoods that are supportive, safe, and strong.”
We are honored to have the Attorney General visit as part of her national community policing tour,” said U.S. Attorney Billy J. Williams of the District of Oregon. “Portland is making progress towards community trust building and enhancing public safety. The city is not unique in experiencing some of the same challenges felt by other communities, including unaddressed mental health needs, racial and ethnic inequities, and gun violence. These issues are being faced head-on with strong partnerships between police and community partners to develop collaborative solutions for stronger, safer, and healthier neighborhoods. We are pleased to highlight the good work done thus far, and will use the visit to further the goals of building community safety and constitutional policing.”
The Attorney General’s national Community Policing Tour builds on President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the President’s Task Force on 21st Century Policing final report. The first phase of the tour launched on May 19, 2015, in Cincinnati, Ohio, and also included visits to Birmingham, Alabama; Pittsburgh, Pennsylvania; East Haven, Connecticut; Seattle, Washington; and Richmond, California.
Additional details may be found at: http://justice.gov/ag/community-policing-tour
Attorney General Lynch to Travel to Phoenix as Part of National Community Policing TourRead the Press Release
PHOENIX – Attorney General Loretta E. Lynch will travel to Phoenix in the coming months as part of her national Community Policing Tour. In this phase, the Attorney General will visit six jurisdictions around the country that have excelled in each of the six pillars discussed in the President’s Task Force on 21st Century Policing final report: (1) Building Trust and Legitimacy; (2) Policy and Oversight; (3) Technology and Social Media; (4) Community Policing and Crime Reduction; (5) Officer Training and Education; and (6) Officer Safety and Wellness. The Attorney General is kicking off her tour Thursday, February 11, and Friday, February 12, in Miami-Dade County, Florida, to highlight Pillar 1-Building Trust and Legitimacy. In addition to Miami-Dade County, Florida, and Phoenix, Attorney General Lynch will also visit Portland, Oregon; Indianapolis, Indiana; Fayetteville, North Carolina; and Los Angeles, California. The stop in Phoenix will highlight Pillar 5-Officer Training and Education.
“One of my top priorities as Attorney General is strengthening relationships between law enforcement officers and the communities we serve and protect,” said Attorney General Loretta Lynch. “During the second phase of my community policing tour, I will be highlighting some of the innovative efforts underway around the country to build trust, foster cooperation, and enhance public safety. I look forward to meeting with law enforcement officers, local leaders, and residents in the weeks and months ahead to discuss how we can ensure that every American benefits from neighborhoods that are supportive, safe, and strong.”
“Arizona’s law enforcement agencies have made great strides in implementing the principles of community policing, and we are honored that the Attorney General has chosen to highlight Arizona during her national tour,” said U.S. Attorney John S. Leonardo of the District of Arizona. “We take pride in being a leader in officer training and education.”
The Attorney General’s national Community Policing Tour builds on President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the President’s Task Force on 21st Century Policing final report. The first phase of the tour launched on May 19, 2015, in Cincinnati, Ohio, and also included visits to Birmingham, Alabama; Pittsburgh, Pennsylvania; East Haven, Connecticut; Seattle, Washington; and Richmond, California.
RELEASE NUMBER: 2016-006_Natl Policing Tour
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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.
Attorney General Lynch Expands National Community Policing Tour with Trip to Miami-Dade County, FloridaRead the Press Release
Second Phase to Highlight Six Jurisdictions Effectively Implementing Recommendations from the President’s Task Force on 21st Century Policing Final Report
Attorney General Loretta E. Lynch will travel to Miami-Dade County, Florida, on THURSDAY, FEBRUARY 11, 2016, and FRIDAY, FEBRUARY 12, 2016, to launch the second phase of her national Community Policing Tour. In this phase, the Attorney General will visit six jurisdictions around the country that have excelled in each of the six pillars discussed in the President’s Task Force on 21st Century Policing final report: (1) Building Trust and Legitimacy; (2) Policy and Oversight; (3) Technology and Social Media; (4) Community Policing and Crime Reduction; (5) Officer Training and Education; and (6) Officer Safety and Wellness. The trip to Miami Dade County will highlight Pillar 1 – Building Trust and Legitimacy. As part of the tour, Attorney General Lynch will also visit Portland, Oregon; Indianapolis; Fayetteville, North Carolina; Phoenix; and Los Angeles in the coming months.
“One of my top priorities as Attorney General is strengthening relationships between law enforcement officers and the communities we serve and protect,” said Attorney General Lynch. “During the second phase of my Community Policing Tour, I will be highlighting some of the innovative efforts underway around the country to build trust, foster cooperation and enhance public safety. I look forward to meeting with law enforcement officers, local leaders and residents in the weeks and months ahead to discuss how we can ensure that every American benefits from neighborhoods that are supportive, safe and strong.”
“We in South Florida are proud of the work we have done to implement the recommendations outlined in the President’s Task Force on 21st Century Policing,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Through active engagement and meaningful dialogue, members of law enforcement work hard to build trust with the communities they serve. As an example of this approach, the city of Doral Police Department has adopted the Blue Courage initiative, a training and leadership development course which focuses on how to enhance their officers’ effectiveness and relationships with the citizens they serve. Many other local departments have also developed robust community policing initiatives. During Attorney General Loretta Lynch’s visit this week, we will share strategies and continue to identify and cultivate the best practices for creating stronger and safer communities.”
While in Miami-Dade County, the Attorney General will be joined by U.S. Attorney Ferrer, Director Ronald Davis of the Office of Community Oriented Policing Services (COPS Office), Assistant Attorney General Karol V. Mason of the Office of Justice Programs and Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division for a convening with law enforcement, local officials and other members of the community at Miami Dade College’s Wolfson Campus in downtown Miami.
The Attorney General will also host a youth town hall with student “Peace Ambassadors" to discuss police-community relations and visit the Doral Police Department to recognize the department’s commitment to community policing strategies through the Blue Courage initiative. Also during her visit, Attorney General Lynch will hold a press availability at the historic Freedom Tower, visit with Miami-Dade Police Department officers and thank them for their service to the community, tour the Black Police Precinct & Courthouse Museum and visit staff at the U.S. Attorney’s Office of the Southern District of Florida.
The Attorney General’s national Community Policing Tour builds on President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the President’s Task Force on 21st Century Policing final report. The first phase of the tour launched on May 19, 2015, in Cincinnati and also included visits to Birmingham, Alabama; Pittsburgh; East Haven, Connecticut; Seattle; and Richmond, California.
Attorney Arrested for Stealing from the Department of Housing and Urban DevelopmentRead the Press Release
Montgomery, Ala. – Christopher B. Pitts, 46, a Georgia resident who was previously an attorney practicing in Montgomery, Alabama was arrested today after being indicted on February 2, 2016 for nine counts of wire fraud, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama.
According to the allegations in the indictment, between 2005 and 2008, Pitts served as a closing attorney for the sales of all homes owned by the United States Department of Housing and Urban Development (HUD) in northern and central Alabama. As the closing attorney, it was Pitts’s job to receive purchase money, pay closing costs, and transmit to HUD the remaining purchase money. The indictment alleges that, at least eight times, Pitts did not perform this last step—paying HUD the net proceeds from a sale. Instead, Pitts used money from the sales of HUD-owned homes for personal expenses, such as paying off mortgages held by his wife. In total, Pitts caused HUD to lose around $1.1 million.
If convicted, Pitts faces a maximum sentence of 30 years in prison. He also faces substantial monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by HUD’s Office of Inspector General. Assistant U.S. Attorney Jonathan S. Ross is prosecuting the case.
Armed Career Criminal from Albuquerque Sentenced to 22 Years for Firearms Offenses Arising Out of Armed Robbery in Santa FeRead the Press Release
ALBUQUERQUE – Elias Atencio, 38, of Albuquerque, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 22 years in prison followed by three years of supervised release for his conviction on firearms charges. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Patrick Gallagher of the Santa Fe Police Department.
U.S. Attorney Damon P. Martinez said that Atencio was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
ATF Special Agent in Charge Thomas G. Atteberry stated, “No greater priority exists in our enforcement efforts than taking an armed career criminal off the streets. We will continue to aggressively support the U.S. Attorney’s violent crime initiative targeting the ‘worst of the worst’ offenders.”
“The City of Santa Fe is better for getting this hardened career criminal off our streets. He was a serious threat to not only the innocent cashiers behind the counters, but also customers who walked into the stores,” said Santa Fe Police Chief Patrick Gallagher. “Atencio’s litany of dangerous felonies range from armed robbery, burglary and assault with a deadly weapon and show that he wasn’t afraid to put others in danger to get his way. This conviction locks away that threat for a very long time and sends a message to other criminals that law enforcement agencies are working together to stop lawbreakers threatening our residents.”Atencio was charged in March 2013, in a three-count indictment with being a felon in possession of a firearm and ammunition; committing commercial robbery in violation of the Hobbs Act; and brandishing a firearm during a crime of violence. According to the indictment, Atencio committed the three offenses on Feb. 23, 2012, in Santa Fe County, N.M. At the time, Atencio was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including armed robbery, forgery, aggravated assault with a deadly weapon, and burglary.
On Aug. 6, 2014, Atencio entered guilty pleas to the two firearms offenses charged in Counts 1 and 3 of the indictment. In his plea agreement, Atencio admitted that on Feb. 23, 2012, he unlawfully possessed a .45 caliber semiautomatic pistol. Atencio admitted brandishing the firearm when he robbed the Walgreens store located at 1096 St. Francis Drive in Santa Fe, N.M. Atencio was arrested in this case in April 2013, after he was transferred to federal custody from state custody.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Santa Fe Police Department with assistance from the 1st Judicial District Attorney’s Office. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Arizona Man Sentenced After Stop with 12 Pounds of MethRead the Press Release
WICHITA, KAN. – An Arizona man was sentenced Monday to 5 years in federal prison for driving 12 pounds of methamphetamine from Arizona to Kansas, U.S. Attorney Barry Grissom said.
Jose Francisco Beltran, 39, Tucson, Ariz., pleaded guilty to one count of interstate travel in furtherance of drug trafficking. In his plea, he admitted that on Aug. 27, 2015, the Kansas Highway Patrol stopped him on Interstate 70 in Lincoln County, Kan. Troopers discovered approximately 12 pounds of methamphetamine and a half pound of powder cocaine. He told investigators he picked up the drugs in Arizona and was delivering them to Wichita, Kan.
Grissom commend the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Matt Treaster for their work on the case.
Albuquerque Man Sentenced to Five Years for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Victor Sanchez, Jr., 45, of Albuquerque, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 60 months in prison followed by four years of supervised release for his heroin trafficking conviction.
On May 28, 2015, Sanchez pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Sanchez admitted that on Oct. 28, 2013, deputies of the Bernalillo County Sheriff’s Office executed a search warrant at his residence where they seized approximately 240 grams of heroin. Sanchez further admitted that when deputies arrived at his residence, he attempted to flush the heroin down a toilet but deputies entered the bathroom before he could do so.
This case was investigated by the Bernalillo County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
This case is being 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Acoma Pueblo Man Sentenced to Fifteen Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Emery Vallo, Sr., 60, a member and resident of Acoma, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 15 years in federal prison for his child sexual abuse conviction. Vallo will be on supervised released for five years following his release from prison. He also will be required to register as a sex offender.
Vallo was arrested on Oct. 23, 2015, on an indictment alleging that he sexually abused the child victim from May 1, 2002 through Sept. 1, 2003, and attempted to sexually abuse the child victim from March 1, 2007 through Sept. 1 2007. The charges alleged in the indictment took place in Indian Country in Cibola County, N.M.
On Nov. 6, 2015, Vallo entered a guilty plea to an aggravated sexual abuse charge. In entering his guilty plea, Vallo admitted sexually molesting a child on two separate occasions between May 2002 and Sept. 2003. He also admitted attempting to sexually molest the same child between March 2007 and Sept. 2007. Vallo also acknowledged sexually molesting a five-year-old child approximately 40 years ago when he was 18 years old. Although the statute of limitations has long since lapsed on that crime, Vallo acknowledged the crime to provide solace to the victim who is still affected by the incident.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney David Adams as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
*****media Advisory*****Read the Press Release
ALBUQUERQUE – Officials from the U.S. Department of Justice, Bernalillo County Commission and University of New Mexico Health Sciences Center will meet with the media at 11:00 A.M. on TUESDAY, FEBRUARY 9, 2016, to discuss ongoing efforts to educate New Mexico’s youth and young adults about the perils of heroin and prescription drug abuse. They will be joined by community stakeholders.
WHO:
U.S. Attorney Damon P. Martinez
Bernalillo County Commissioner Maggie Hart Stebbins
Special Agent in Charge Terry Wade, FBI Albuquerque Division
Assistant Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
Dr. Joanna G. Katzman, Director, UNM Pain Center
Michel Disco, Assistant Dean for External Programs, UNM College of Pharmacy
Ryan P. Cangiolosi, Senior Strategic Advisor & Director of Strategic Communications at the UNM Health Sciences Center
WHEN:
TUESDAY, FEBRUARY 9, 2016, 11:00 a.m.
WHERE:
U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
This dialogue with the media, which is presented by the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, will begin at 11:00 a.m. It will follow the 10:00 a.m. screening of Chasing the Dragon: The Life of an Opiate Addict, a 45-minute documentary film unveiled last week by the FBI and DEA which is aimed at educating students and young adults about the dangers of addiction. The documentary profiles the stories of several people who either abused opiates or had family members become addicts, and looks at the tragic consequences associated with opioid abuse. The documentary, which is intended to reach students and young adults before they become addicted, may be viewed at https://www.fbi.gov/news/stories/2016/february/raising-awareness-of-opioid-addiction. Note: the documentary includes profanity which has been muted on the version available at this link.
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 is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. This dialogue is part of the prevention and education component of the HOPE Initiative.
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media may begin to arrive at 10:45 a.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Friday 5 February 2016
Winter Park Man Charged with Failing to Pay Withheld Employee Payroll Taxes to the Internal Revenue ServiceRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging William Bruce O’Donoghue (61, Winter Park) with failure to pay over federal employee payroll taxes. If convicted, he faces a maximum penalty of 30 years in federal prison.
According to the indictment, O’Donoghue was the President and majority owner of Control Specialists, a traffic engineering company in Central Florida. As president and majority owner, O’Donoghue exercised control over the company’s business affairs, including approving all payments by the company and controlling all of the company’s bank accounts.
Throughout 2009 and 2010, O’Donoghue caused Control Specialists to withhold payroll taxes from its employees, but failed to pay over those withheld payroll taxes to the IRS. During that same time period, O’Donoghue caused Control Specialists to make thousands of dollars in expenditures for his personal benefit, including approximately $125,000 in cash payments to fund his campaign for Congress. The amount of payroll taxes withheld by Control Specialists and not paid over to the Internal Revenue Service during this period is approximately $219,962.95.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Vincent S. Chiu.