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Wednesday 3 February 2016
Man Indicted for Armed Robbery at East Aurora PharmacyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo, NY has returned a two count indictment charging Ryan Peltan, 30, formerly of East Aurora, NY, with armed robbery of a pharmacy and possession of firearm in furtherance of crime of violence. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of 20 years, a fine of $250,000, or both.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the indictment, the defendant entered Larwood’s Pharmacy, located at 597 Oakwood Ave. in East Aurora, on October 24, 2015, and took, by force, a large amount of controlled substances. As reported publicly, during the course of the robbery, Peltan displayed a firearm and threatened the owner, two customers, and a 16 year old clerk before fleeing the pharmacy.
On October 26, 2016, police in Akron, Ohio were investigating a suspicious motor vehicle in a mall parking lot. During the investigation, officers observed the defendant and another individual in a car that contained 23 firearms and numerous amounts and types of controlled substances. These controlled substances were traced to Larwood’s Pharmacy, and were identified as the controlled substances taken from the armed robbery that occurred at Larwood’s. Peltan and the other individual were arrested and remain in custody in Akron, Ohio.
The indictment is the culmination of an investigation on the part of the East Aurora Police Department, under the direction of Chief Shane Krieger and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
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.
Local Man Admits Participation in California to Pittsburgh Cocaine Trafficking RingRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Michael Lyons, 40, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Michael Lyons was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for June 3, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police conducted the investigation that led to the prosecution of Michael Lyons.
Lanham Man Sentenced to 54 Months in Prison for Credit Card Fraud Scheme with Losses of More Than $100,000 in Three MonthsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Rasheed Adedokun, age 26, of Lanham, Maryland, today to 54 months in prison, followed by three years of supervised release, for use of unauthorized access devices, aggravated identity theft, and possession of device making equipment, arising from a scheme to use the personal identifying information, credit card and debit card numbers of victims to purchase goods and services worth more than $100,000. Judge Messitte also entered an order requiring Adedokun to pay restitution of $107,403.61.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief Murray “Jay” Farr of the Arlington County, Virginia Police Department.
According to Adedokun’s plea agreement, on May 14, 2009, he used the credit/debit card of Victim 1 to make over $1,200 in unauthorized purchases in just a few days. On July 11, 2009, Adedokun and three co-conspirators were captured on store surveillance cameras making unauthorized purchases totaling $7,799.10 using the credit/debit cards of nine other victims. On August 5, 2009, Adedokun was arrested by Maryland State Police. Troopers recovered 17 debit cards in Adedokun’s pants pockets and an additional 63 debit cards were found at his residence. Examination of the cards revealed that 18 of the cards’ magnetic strips had been re-encoded with victims’ credit card account information. During a search of Adedokun’s residence, law enforcement also recovered four pages of Social Security Administration screen printouts containing the names and Social Security numbers of 34 individuals, a credit card encoding machine and a computer. A forensic examination of the computer revealed a software program designed to check the validity of a given credit card number, and additional files that contained the names and credit/debit card account numbers that appeared to be assigned to other co-conspirators.
Adedokun was responsible for losses of $107,403.61. Four other co-conspirators have pleaded guilty to their roles in the scheme and are awaiting sentencing. Adetokunbo Babatunde was sentenced to 30 months incarceration and restitution in the amount of $107,403.61. Ridwan Kekere-Ekun was sentenced to one year and one day and restitution in the amount of $107,403.61. Two others are awaiting sentencing. A fifth co-conspirator also pleaded guilty and was sentenced to time served and ordered to pay restitution of $35,000.
Today’s announcement is part of the efforts undertaken 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.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Prince George’s County Police Department, Maryland State Police, and the Arlington County, Virginia Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman and Special Assistant U.S. Attorney Jennifer L. Wine, who are prosecuting the case.
Kansas Man Pleads Guilty in Plot to Explode Car Bomb at Fort Riley in Manhattan, KansasRead the Press Release
John T. Booker Jr., 21, of Topeka, Kansas, pleaded guilty today to attempting to detonate a vehicle bomb on the Fort Riley military base in Manhattan, Kansas.
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Barry Grissom of the District of Kansas made the announcement.
Booker pleaded guilty before U.S. District Judge Carlos Murguia of the District of Kansas to one count of attempted use of a weapon of mass destruction and one count of attempted destruction of government property by fire or explosion. Sentencing will be scheduled at a later date. The parties have stipulated to a sentence of 30 years in federal prison.
“John Booker admitted that he intended to kill U.S. military personnel on American soil in the name of ISIL,” said Assistant Attorney General Carlin. “Thankfully, law enforcement was able to safely identify and disrupt this threat to the brave men and women who risk their lives to defend our country. The National Security Division’s highest priority is countering terrorist threats and protecting American lives by holding accountable those who plot to attack us.”
“If this defendant had succeeded, American soldiers would have died,” said U.S. Attorney Grissom. “The investigators and the attorneys who worked on this case were our line of defense against terrorism. They kept us safe.”
In his guilty plea, Booker admitted he intended to kill American soldiers and to assist ISIL’s fight against the United States. His plan called for constructing a bomb containing 1,000 pounds of ammonium nitrate. Booker intended to trigger the bomb himself and die in the process, and filmed a video he intended Americans to see after his death.
“You sit in your homes and think this war is just over in Iraq,” he said in the video. “Today we will bring the Islamic State straight to your doorstep.”
Unbeknownst to Booker, the bomb that he constructed was made with inert materials, and the two men working with him were undercover informants for the FBI.
The FBI began investigating Booker in March 2014 after he posted on his Facebook page that he wanted to commit jihad. Booker admitted that he tried to enlist in the U.S. Army in order to commit an insider attack against American soldiers like the one at Fort Hood in Texas, but his deadly plans were thwarted when he was denied entry into the Army. In October 2014, Booker began communicating with an undercover FBI informant. He told the undercover FBI informant that he dreamed of being a fighter in the Middle East, and proposed capturing and killing an American soldier.
In March 2015, Booker was introduced to another FBI informant who he believed would help him plan an attack. Booker said he wanted to detonate a suicide bomb because he couldn’t be captured, all the evidence would be destroyed, and he would be guaranteed to hit his target. On March 10, 2015, Booker made a video filmed at Freedom Park near Marshall Army Airfield at Fort Riley in which he pledged allegiance to Abu Bakr al Baghdadi, the leader of ISIL. That month, he rented a storage unit in Topeka where the bomb would be assembled.
On April 10, 2015, Booker and the informants drove to an area near Fort Riley that Booker believed to be a little-used utility gate where they could enter Fort Riley undetected. He was arrested when he made the final connections on the device that he believed would arm the bomb.
The investigation was conducted by the FBI Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Tony Mattivi and David Smith of the District of Kansas, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Kansas Man Pleads Guilty in Plot to Explode Car Bomb at Fort RileyRead the Press Release
KANSAS CITY, KAN. - John T. Booker Jr., 21, of Topeka, Kansas, pleaded guilty today to attempting to detonate a vehicle bomb on the Fort Riley military base in Manhattan, Kan.
U.S. Attorney Barry Grissom of the District of Kansas and Assistant Attorney General for National Security John P. Carlin made the announcement.
Booker pleaded guilty before U.S. District Judge Carlos Murguia of the District of Kansas to one count of attempted use of a weapon of mass destruction and one count of attempted destruction of government property by fire or explosion. Sentencing will be set for a later date. The parties have stipulated to a sentence of 30 years in federal prison.
“If this defendant had succeeded, American soldiers would have died,” said U.S. Attorney Grissom. “The investigators and the attorneys who worked on this case were our line of defense against terrorism. They kept us safe.”
“John Booker admitted that he intended to kill U.S. military personnel on American soil in the name of ISIL,” said Assistant Attorney General Carlin. “Thankfully, law enforcement was able to safely identify and disrupt this threat to the brave men and women who risk their lives to defend our country. The National Security Division’s highest priority is countering terrorist threats and protecting American lives by holding accountable those who plot to attack us.”
In his guilty plea, Booker admitted he intended to kill American soldiers and to assist ISIL’s fight against the United States. His plan called for constructing a bomb containing 1,000 pounds of ammonium nitrate. Booker intended to trigger the bomb himself and die in the process, and filmed a video he intended Americans to see after his death.
“You sit in your homes and think this war is just over in Iraq,” he said in the video. “Today we will bring the Islamic State straight to your doorstep.”
Unbeknownst to Booker, the bomb that he constructed was made with inert materials, and the two men working with him were undercover informants for the FBI.
The FBI began investigating Booker in March 2014 after he posted on his Facebook page that he wanted to commit jihad. Booker admitted that he tried to enlist in the U.S. Army in order to commit an insider attack against American soldiers like the one at Fort Hood in Texas, but his deadly plans were thwarted when he was denied entry into the Army. In October 2014, Booker began communicating with an undercover FBI informant. He told the undercover FBI informant that he dreamed of being a fighter in the Middle East, and proposed capturing and killing an American soldier.
In March 2015, Booker was introduced to another FBI informant who he believed would help him plan an attack. Booker said he wanted to detonate a suicide bomb because he couldn’t be captured, all the evidence would be destroyed, and he would be guaranteed to hit his target. On March 10, 2015, Booker made a video filmed at Freedom Park near Marshall Army Airfield at Fort Riley in which he pledged allegiance to Abu Bakr al Baghdadi, the leader of ISIL. That month, he rented a storage unit in Topeka where the bomb would be assembled.
On April 10, 2015, Booker and the informants drove to an area near Fort Riley that Booker believed to be a little-used utility gate where they could enter Fort Riley undetected. He was arrested when he made the final connections on the device that he believed would arm the bomb.
The investigation was conducted by the FBI Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Tony Mattivi and David Smith of the District of Kansas, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Justice Department Announces New Acting Pardon AttorneyRead the Press Release
The Justice Department announced today that Robert A. Zauzmer will become the new Acting Pardon Attorney effective immediately.
Zauzmer, the Chief of Appeals in the U.S. Attorney’s Office of the Eastern District of Pennsylvania, has been a key player in the department’s implementation of both the 2013 Smart on Crime initiative and the U.S. Sentencing Commission’s retroactive sentence reductions.
“Bob’s long-standing commitment to criminal justice reform and his knack for devising and implementing the department’s sentencing reduction policies made him a natural choice to serve as Pardon Attorney,” said Deputy Attorney General Sally Q. Yates. “Bob also shares my unwavering dedication to the president’s clemency initiative. Given his experience and dedication, I am confident that Bob will hit the ground running.”
“As someone who has been part of the criminal justice system for more than 25 years, I have long been troubled by the imposition of disproportionately lengthy sentences, even as long as life imprisonment, that were imposed on low-level drug offenders on the basis of laws and policies that have since been changed,” said Zauzmer. “I have dedicated much of the past decade to assisting in the efforts to right some of those unfairly long sentences, and it is my profound honor to aid the president in using his clemency power to continue to restore the sense of proportionality and fairness that is at the heart of our justice system.”
As part of his efforts on behalf of the department, Zauzmer has testified multiple times before the U.S. Sentencing Commission on sentencing guideline issues, including the retroactive application of reductions in drug sentences. He also trained federal prosecutors nationwide on how to apply retroactivity in a way that provides relief to all eligible inmates in the most efficient manner possible. From 2012 to 2014, Zauzmer served as a member of the Attorney General’s Advisory Committee (AGAC), working closely with Attorney General Loretta E. Lynch and Deputy Attorney General Yates at a time that they served as chair and vice-chair, respectively, of the AGAC.
The Office of the Pardon Attorney assists the president in the exercise of executive clemency. Under the Constitution, the president’s clemency power extends only to federal criminal offenses. All requests for executive clemency for federal offenses are directed to the Pardon Attorney for investigation and review. After review and recommendation by the Pardon Attorney, the Deputy Attorney General makes a recommendation to the president for final disposition of each application. Executive clemency may take several forms, including pardon, commutation of sentence, remission of fine or restitution, and reprieve.
In December 2013, President Obama directed the department to prioritize applications for clemency from inmates who were sentenced under outdated policies and would have received a lesser sentence under current policies and laws. Since the clemency initiative was announced in April 2014, the president has granted 187 commutations, more than the last five presidents combined.
Jefferson County Man Sentenced to 151 Months on Cocaine Related ChargesRead the Press Release
A Jefferson County man was sentenced on January 26, 2016, to federal prison on cocaine related charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
Darrain D. Bowdry, 30, of Mt. Vernon, Illinois, was sentenced to 151 months in federal prison, with three years’ supervised release following his imprisonment, and fined $400. Bowdry had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that on November 4, 2014, at approximately 2:36 p.m., Bowdry knowingly and intentionally distributed cocaine. Count 2 charged that on November 4, 2014, at approximately 4:05 p.m., Bowdry knowingly and intentionally distributed cocaine.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARCELLO ORDONEZ-RIVAS, age 37, a citizen of Honduras, pled guilty today to a one-count indictment with illegal reentry of a removed alien.
According to court documents, ORDONEZ-RIVAS was found in the United States on September 3, 2015, after having been previously deported on May 8, 2009.
ORDONEZ-RIVAS faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing on April 27, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Former U.S. Citizen Pleads Guilty to Tax Fraud Related to Swiss Financial AccountRead the Press Release
Used Hong Kong Entity and Foreign Accounts in Switzerland, Monaco and Singapore to Conceal Funds
A former U.S. citizen residing in Switzerland pleaded guilty today to one count of filing a false income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
“U.S. taxpayers have been given ample opportunity to come forward, disclose their secret foreign accounts, and come into compliance,” said Acting Assistant Attorney General Ciraolo. “Those individuals and entities who rolled the dice in the hope of remaining anonymous are facing the consequences. The Tax Division remains committed to investigating and prosecuting individual taxpayers with undeclared foreign financial accounts, as well as the financial institutions, bankers, financial advisors and other professionals who facilitate the concealment of income and assets offshore. And as today’s guilty plea clearly indicates, the department’s reach is well beyond Switzerland.”
According to court documents, in 2006, Albert Cambata, 61, established Dragonflyer Ltd., a Hong Kong corporate entity, with the assistance of a Swiss banker and a Swiss attorney. Days later, he opened a financial account at Swiss Bank 1 in the name of Dragonflyer. Although he was not listed on the opening documents as a director or an authorized signatory, Cambata was identified on another bank document as the beneficial owner of the Dragonflyer account. That same year, Cambata received $12 million from Hummingbird Holdings Ltd., a Belizean company. The $12 million originated from a Panamanian aviation management company called Cambata Aviation S.A. and was deposited to the Dragonflyer bank account at Swiss Bank 1 in November 2006.
“IRS Criminal Investigation will continue to pursue those who do not pay the taxes they owe to the United States,” said Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office. “Today’s plea is a reminder that we are committed to following the money trail across the globe and will not be deterred by the use of sophisticated international financial transactions that hide the real ownership of income taxable by the United States.”
On his 2007 and 2008 federal income tax returns, Cambata failed to report interest income earned on his Swiss financial account in the amounts of $77,298 and $206,408, respectively. In April 2008, Cambata caused the Swiss attorney to request that Swiss Bank 1 send five million Euros from the Swiss financial account to an account Cambata controlled at the Monaco branch of Swiss Bank 3. In June 2008, Cambata closed his financial account with Swiss Bank 1 in the name of Dragonflyer and moved the funds to an account he controlled at the Singapore branch of Swiss Bank 2.
In 2012, Cambata, who has lived in Switzerland since 2007, went to the U.S. Embassy in Bratislava, Slovakia, to renounce his U.S. citizenship and informed the U.S. Department of State that he had acquired the nationality of St. Kitts and Nevis by virtue of naturalization.
U.S. District Judge Claude Hilton of the Eastern District of Virginia set sentencing for April 15. Cambata faces a statutory maximum sentence of three years in prison and a fine of up to $250,000. As part of his plea agreement, Cambata agreed to pay $84,849 in restitution to the Internal Revenue Service (IRS).
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-Criminal Investigation, who investigated the case, and Assistant Chief Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Mark D. Lytle of the Eastern District of Virginia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Postal Employee Convicted of Conspiracy ChargesRead the Press Release
St Louis, MO – QUENTIN COOK, Florissant, MO, was convicted of diverting mail believed to contain clothing, marijuana and other items to addresses that he and his co-defendants controlled for their personal gain. Cook and his co-defendants were former Postal employees of the Network Distribution Center in Hazelwood. The three-day trial was held before United States District Judge Ronnie L. White.
According to court documents and testimony presented at trial, Edward Lewis, Sean West, Korey Howard and Quentin Cook are former employees of the United States Postal Service. West, Howard and Cook searched for and identified mail and over-labeled it to redirect it from its original sender’s intended recipient to themselves, Lewis and others. The diverted mail included clothing, marijuana, electronics, computer equipment, pottery and personal effects.
Korey Howard, Florissant, MO; Edward Lewis, Hazelwood, MO; and Sean West, Florissant, MO; pled guilty in December to multiple charges including conspiracy, obstruction of correspondence and theft or receipt of stolen mail. They are scheduled for sentencing in March 2016. A sentencing date has not been set for Quentin Cook.
Each charge carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Postal Service-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorneys Anthony Franks and Dianna Collins are handling the case for the U.S. Attorney’s Office.
Former Office Manager of Henderson, Kentucky, Law Firm Sentenced to 27 Months in Prison for EmbezzlementRead the Press Release
Ordered to pay $264,867.84 in restitution
Money was used to pay personal expenses and make wire transfers to individuals in South Africa
OWENSBORO, Ky. – The former office manager of a Henderson, Kentucky law firm was sentenced in U.S. District Court yesterday, to 27 months in prison, followed by a three year period of supervised release and ordered to pay full restitution by Chief Judge Joseph H. McKinley, Jr. for embezzling $264,867.84 during a 30-month period, from her former employer, announced United States Attorney John E. Kuhn, Jr.
Krista Kaye Graupner, age 45, of Evansville, Indiana, admitted to committing three counts of wire fraud while employed at the law firm of King, Deep & Branaman (KDB) between June of 2012 and December of 2014.
As office manager, Graupner had access to KDB’s bank accounts and was authorized to write checks and initiate ACH payments out of these accounts. During her guilty plea, on October 21, 2015, Graupner admitted to paying her own personal bills using KDB’s funds.
In October of 2014, Graupner also began wiring money from Henderson to various individuals in South Africa who were part of the scheme. Graupner admitted that she would write checks, either for cash or to herself, drawn upon KDB accounts and then use the cash from the KDB checks to wire the money via Western Union to individuals in South Africa. In perpetuating this crime, Graupner made approximately 200 wire transfers from October 2014 through December 2014.
This case was prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the Federal Bureau of Investigation (FBI) and the Henderson Police Department.
Former Chief of Los Angeles Port Police Pleads Guilty to False Statement and Tax Evasion Charges Related to Corruption CaseRead the Press Release
LOS ANGELES – The former chief of police for the Port of Los Angeles pleaded guilty today to federal charges of tax evasion and making false statements to FBI agents who were investigating his acceptance of a bribe in connection with the development of a social networking program that would become the official smartphone app for the Port and would then be marketed to other law enforcement agencies.
Ronald Jerome Boyd, 58, of Torrance, pleaded guilty this afternoon to three offenses and as a result faces a statutory maximum prison term of 11 years in federal prison.
Boyd pleaded guilty before United States District Judge R. Gary Klausner on the day he was scheduled to go to trial on a 16-count indictment that was returned by a grand jury last year.
Boyd pleaded guilty to lying to federal investigators about a scheme related to a smartphone app called Portwatch, which was developed to provide information to the public and to allow citizens to report criminal activity at the port.
In 2011, Boyd and two business partners formed BDB Digital Communications, a company that entered into a revenue-sharing agreement with the company developing Portwatch. The parties involved with BDB intended to generate revenues by marketing and selling a similar app – called Metrowatch – to other government agencies. Boyd was set to receive approximately 13.33 percent of all gross revenues generated by the sale of the Metrowatch application.
According to the indictment in this case, Boyd received his financial interest in return for guaranteeing that the Portwatch contract would be awarded to the company. Prosecutors and the defense have agreed to submit evidence regarding the bribery arrangement to Judge Klausner at sentencing.
Boyd pleaded guilty today to making false statements to special agents with the FBI during an interview in October 2014. Boyd admitted that he lied to the investigators when he denied having any financial interest in Metrowatch or having engaged in a conflict of interest.
“Public officials who use their position of leadership for unlawful personal gain erode the public’s trust in government,” said David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Law enforcement officials at all levels have an obligation to uphold the law and remain loyal to the citizens they swore to serve.”
Boyd also pleaded guilty to tax evasion in relation to his personal income tax return for 2011. In his plea agreement, Boyd admitted receiving income from a security business he operated, At Close Range. The income came from the owner of a company doing business with the Port, American Guard Services, and Boyd admitted that he failed to report that income on his personal income tax returns for years 2007 through 2011.
Additionally, Boyd pleaded guilty to a misdemeanor count of failing to file a 2011 tax return for At Close Range. While he pleaded guilty to one only count of failing to file a tax return for At Close Range, Boyd admitted in his plea agreement that he failed to file tax returns for the business for years 2007 through 2011.
The estimated loss of tax revenue to the Internal Revenue Service for Boyd’s conduct was more than $300,000.
“Our largest enforcement program is directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez.
Judge Klausner scheduled a sentenced hearing for July 25.
The case against Boyd is the product of an investigation by the Federal Bureau of Investigation and IRS – Criminal Investigation.
Former Bull Valley Man Sentenced to 9 Months in Federal Prison for Concealment of Assets from a Bankruptcy TrusteeRead the Press Release
ROCKFORD — A former Bull Valley, Ill. man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for the concealment of assets from a Bankruptcy Trustee. JOSEPH MICHAEL PHELAN, 52, now of Augusta, Ga., was sentenced to 9 months in federal prison to be followed by 3 months of home confinement. Phelan was also placed on 3 years of supervised release and ordered to pay $80,618.78 as restitution. Phelan was the former President of Phezer Enterprises, Incorporated, located in Crystal Lake, Ill.
Phelan, who pleaded guilty to the charge on Sept. 17, 2015, caused a Chapter 7 Bankruptcy Petition to be filed for Phezer Enterprises on Aug. 18, 2008. According to the written plea agreement, after Phelan closed Phezer Enterprises on Aug. 13, 2008, Phelan had three Phezer employees start cutting up and scrapping unused and used Phezer assets, including sheets of stainless steel and various metals. On Aug. 18, 2008, the day Phezer filed for bankruptcy, Phelan sold 21,182 pounds of stainless steel to a scrap metal company. Phelan personally received $15,251.04 for the steel.
As Phelan admitted in the plea agreement, between Aug. 18, 2008 and Aug. 29, 2008, two Phezer employees sold $13,399.24 worth of Phezer metals to a second scrap metal company. The two employees received cash for the scrap and provided the cash to Phelan.
As further stated in the plea agreement, in September and October 2008, Phelan received two checks totaling $51,968.50 issued to him from another scrap metal company for Phezer metals sold to that company. Phelan deposited both checks in his personal bank account. Phelan did not advise the trustee or a secured creditor that corporate assets had been sold to the three scrap metal companies, or account and deliver to the trustee or the secured creditor the proceeds from the sales of Phezer assets.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-In-Charge of the Chicago Office of Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Former Branch Manager of Bank in Manhattan Sentenced for EmbezzlementRead the Press Release
TOPEKA, KAN. - The former branch manager of a bank in Manhattan, Kan., was sentenced Wednesday to 27 months in federal prison for embezzlement, U.S. Attorney Barry Grissom. In addition, she was ordered to pay $277,000 in restitution.
Melissa Vinsonhaler, 34, Manhattan, Kan., pleaded guilty to one count of embezzlement from a bank. In her plea, she admitted the crime occurred while she was branch manager of Kansas State Bank on East Highway 24 in Manhattan, Kan. She embezzled $277,000 from the bank and made false entries in the bank’s ledger to cover up the crime.
Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Former Bookkeeper for the Pinckneyville Rural Fire Protection District Pleads Guilty to Mail FraudRead the Press Release
Tammy L. Kellerman, 53, of Pinckneyville, Illinois, the former bookkeeper for the Pinckneyville Rural Fire Protection District (PRFPD), pled guilty today in United States District Court in Benton to a four-count information charging her with defrauding that municipal entity, announced James L. Porter, Acting United States Attorney for the Southern District of Illinois. The information to which Kellerman pled guilty alleged that between 2004 and 2013, Kellerman used her trusted position with PRFPD to steal over $450,000 in PRFPD funds. Throughout that time period Kellerman regularly used the United States mail to send unauthorized checks drawn on PRFPD’s bank account to pay her personal credit card bills and other expenses and, thereafter, made false entries in PRFPD’s accounting software to conceal her thefts.
Sentencing was set for May 24, 2016, at 9:30 a.m., at the United States District Courthouse in Benton. On each count Kellerman faces up to 20 years in federal prison, a $250,000 fine, and 3 years of supervised release to follow any term of incarceration imposed. Kellerman will also be required to make full restitution to PRFPD. Kellerman will remain on bond pending sentencing.
The investigation leading to the charges and guilty plea was a cooperative effort by the Federal Bureau of Investigation, the Illinois State Police, the Criminal Investigations Division of the Illinois Department of Revenue, and the Illinois Attorney General’s Office.
The federal case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Former Anamosa Correctional Officer Sentenced to PrisonRead the Press Release
A former Anamosa State Penitentiary correctional officer who smuggled contraband into the prison for prisoner use and illegally used controlled substances while possessing assault rifles on duty was sentenced today to more than four years in federal prison.
Garrett Barton, age 29, from Anamosa, Iowa, received the prison term after an October 13, 2015, guilty plea to one count of a Hobbs Act Extortion Under Color of Official Right (accepting bribes to smuggle contraband into the prison) and one count of being an unlawful drug user in possession of firearms.
In a plea agreement, Barton admitted that from July 2010 until February 2015, he was employed as a correctional officer with the Iowa Department of Corrections, serving most of that time at the Anamosa State Penitentiary. In November 2014, Barton accepted cash from an inmate (provided to him through the inmate’s girlfriend) to smuggle two cell phones into the prison for use by inmates. Other public records demonstrated that Barton also smuggled controlled substances into the prison for inmate use. He also sold and traded controlled substances with other correctional officers. The plea agreement reflects that Barton admitted he was an unlawful drug user while employed at the penitentiary. During that time he possessed four personal firearms, and was issued assault rifles scores of times while standing guard duty in the prison towers.
“This defendant chose to place his own greed above the safety of other Iowa Department of Corrections employees as well as the public he was sworn to protect. Those who agree to smuggle contraband into federal and state prisons can expect to join the inmates from whom they are attempting to profit,” said United States Attorney Kevin W. Techau.
Anamosa State Penitentiary Warden William Sperfslage stated after Barton’s sentencing, “Mr. Barton failed in his mission to the citizens of Iowa that he was hired to protect. He also placed his coworkers in danger by providing contraband to offenders. In doing so, we believe it very appropriate that he is now sentenced to a period of incarceration in a correctional facility.” Sperfslage went on to add, “While we find these actions unacceptable, we also recognize they are his actions and not a reflection on the remaining staff that perform their duties every day and who model the positive behavior we work to instill in the offenders we supervise.”
Barton was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Barton was sentenced to 57 months’ imprisonment and fined $7,500. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Barton was released pending imprisonment and is to surrender to the United States Marshals Service in Cedar Rapids on February 24, 2016.
The case was prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Erin Eldridge, and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, and the Iowa Department of Corrections.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-cr-0091-LRR.
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Floyd County Man Sentenced to 165 Months for Receipt of Child PornographyRead the Press Release
PIKEVILLE, Ky. — A Floyd County man, who previously admitted that he received nearly 30,000 images of child pornography, has been sentenced to 165 months in federal prison.
On January 28, U.S. District Judge Danny C. Reeves has sentenced Bret A. Dunning, 53, for receipt of child pornography. Judge Reeves has also ordered Dunning to pay $10,000 in restitution and has assessed a $1,750 fine. Under federal law, Dunning must serve at least 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 15 years. Dunning must register as a sex offender for the rest of his life.
Dunning admitted, at his guilty plea, that he had downloaded child pornography images from the internet. In March 2013, Kentucky State Police conducted a search at Dunning’s residence and found the images. The images depicted prepubescent children engaged in sexually explicit conduct.
Dunning pleaded guilty in October of 2015.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard Marshall, Special Agent in Charge, FBI; and Rodney Brewer, Kentucky State Police Commissioner, jointly announced the sentence.
The investigation was conducted by Kentucky State Police and the FBI. Assistant U.S. Attorney David A. Marye prosecuted this case on behalf of the federal government.
Florida Man Sentenced to Five Years of Probation for Failing to Pay Child SupportRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey Kingman, 51, of Fort Lauderdale, Florida, was sentenced today in U.S. District Court by Judge Jon D. Levy to five years of probation for failing to pay child support. He was also ordered to pay $101,387.74 in restitution. Kingman pled guilty on September 16, 2015.
According to the evidence, Kingman was ordered to pay $216 per week in child support as part of his July 2007 Maine divorce judgment. Between August 2007 and March 2011, he made 57 reduced and variable child support payments totaling $12,150. As of October 2012, Kingman owed $60,112 in child support. From October 2012 through September 2015, Kingman made no child support payments. To date, Kingman owed $101,387.74 in child support.
The conditions of Kingman’s probation include that he pay restitution and child support. In pronouncing sentence, Judge Levy observed that Kingman has caused great harm to his children by financially and emotionally abandoning them over a period of years. Judge Levy also observed that Kingman had obtained full-time employment enabling him to make payments through a wage garnishment. Judge Levy explained that the statutory purposes of criminal punishment include getting defendants to pay restitution and getting parents to pay child support. If Kingman fails to make restitution or pay child-support while on probation, he faces an additional two years in prison.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Maine Department of Health and Human Services, Division of Support Enforcement and Recovery.
Florida Man Pleads Guilty to Bribing Public Official at Georgia Military BaseRead the Press Release
A former agent for a large national trucking company has pleaded guilty for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, in order to obtain lucrative freight-hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Ivan Dwight Brannan, 60, of Jupiter, Florida, pleaded guilty before U.S. District Judge W. Louis Sands of the Middle District of Georgia to one count of bribery of a public official.
During his plea, Brannan admitted that from 2006 to 2012, he provided cash and other items of value to Mitchell Potts, a former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, to ensure that his trucking company client was awarded millions of dollars of business at MCLB-Albany. Brannan also admitted that he directed David Nelson, a truck driver, to provide cash and other things of value to both Potts and Jeffrey Philpot, another official in the DLA Traffic Office at MCLB-Albany. From 2006 to 2012, Brannan and Nelson paid at least $120,000 in bribes to Potts and Philpot.
Potts and Philpot both previously pleaded guilty to one count of bribery of a public official and were sentenced to 10 years and seven years in prison, respectively, for their roles in the conspiracy. Nelson pleaded guilty to one count of bribery of a public official on Oct. 7, 2014, and awaits sentencing.
The U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service are investigating the case. Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia are prosecuting the case.
Florida Man Pleads Guilty to Bribing Public Official at Georgia Military BaseRead the Press Release
WASHINGTON – A former agent for a large national trucking company has pleaded guilty for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, in order to obtain lucrative freight-hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Ivan Dwight Brannan, 60, of Jupiter, Florida, pleaded guilty before U.S. District Judge W. Louis Sands of the Middle District of Georgia to one count of bribery of a public official.
During his plea, Brannan admitted that from 2006 to 2012, he provided cash and other items of value to Mitchell Potts, a former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, to ensure that his trucking company client was awarded millions of dollars of business at MCLB-Albany. Brannan also admitted that he directed David Nelson, a truck driver, to provide cash and other things of value to both Potts and Jeffrey Philpot, another official in the DLA Traffic Office at MCLB-Albany. From 2006 to 2012, Brannan and Nelson paid at least $120,000 in bribes to Potts and Philpot.
Potts and Philpot both previously pleaded guilty to one count of bribery of a public official and were sentenced to 10 years and seven years in prison, respectively, for their roles in the conspiracy. Nelson pleaded guilty to one count of bribery of a public official on Oct. 7, 2014, and awaits sentencing.
The U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service are investigating the case. Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia are prosecuting the case.
Five Individuals Arrested and Charged in Connection with a Fraudulent Multi-Million Dollar Income Tax Refund SchemeRead the Press Release
Federal authorities have arrested five individuals, including three sisters, indicted on federal charges in connection with a scheme that involved over 3,200 fraudulent income tax returns that claimed refunds totaling more than $9 million announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
A federal grand jury indictment returned in Austin and unsealed this week, charges the following defendants with one count of conspiracy to commit mail fraud:
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Natividad Mercado Medina, a 38–year-old Mexican national who formerly lived in Conroe, TX, and now resides in Atlanta, GA;
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Elizabeth Mercado Medina, a 39–year-old Mexican national who now resides in Atlanta, GA;
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Sofia Mercado Medina, a 36-year-old Mexican national, who now resides in Atlanta, GA;
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Bertin Sanchez Garcia, a 28–year-old Mexican national who resides in Georgetown, TX; and,
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Yajaira Limon Lopez, a 36-year-old Mexican national who resides in Houston.
According to the indictment, in 1996, the Internal Revenue Service began issuing Individual Taxpayer Identification Numbers, or “ITINs”. By obtaining an ITIN, an individual who is already disregarding federal law by living in the United States illegally is given the opportunity to comply with federal law by filing taxes. If the applicant can furnish sufficient proof (i.e. foreign birth certificate, national identification card, passport, etc.) that he or she is living in the United States illegally, the IRS will issue that person an ITIN.
The indictment alleges that beginning in 2014 and under the direction of Natividad Medina, the defendants conspired to steal money from the U.S. Treasury and U.S. taxpayers by exploiting the ITIN system. The Medina sisters began by collecting Mexican identification documents from unknown people in Mexico and used those to fraudulently obtain ITINs. The Medina sisters then used those ITINs to submit false and fraudulent income tax returns to the Internal Revenue Service Center in Austin. They requested that the IRS mail refund checks to residences or to one of more than 200 post office boxes in and around the Houston area which Flores and Lopez had rented and maintained on behalf of the Medina sisters. The indictment alleges that since January 2014, more than 3,200 tax returns associated with the relevant post office boxes and residences controlled by the Medina sisters were filed with the IRS. The claimed refunds from the fraudulent ITIN returns amounted to more than $9 million.
Upon conviction, the defendants face up to 20 years in federal prison.
All of the defendants were arrested on Tuesday. The three Medina sisters remain in federal custody following their arrest in Atlanta. Garcia remains in federal custody following his arrest in Georgetown. Lopez remains in federal custody following her arrest in Houston. Detention hearings are expected to be held tomorrow for the Medina sisters in Atlanta and Lopez in Houston. Garcia’s detention hearing is scheduled for 9:00am on February 16, 2016, before United States Magistrate Judge Mark Lane in Austin.
This case was investigated by the Internal Revenue Service-Criminal Investigation together with the U.S. Postal Inspection Service. Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Federal Jury Convicts Former SunTrust Mortgage V.P. and Loan OfficersRead the Press Release
ALEXANDRIA, Va. – Mohsin Raza, 51, along with his wife, Humaira Iqbal, 39, and her two brothers, Farukh Iqbal, 41, and Mohammad Ali Haider, 33, all of Chantilly, were convicted today by a federal jury on charges of conspiracy to commit wire fraud affecting a financial institution and various counts of wire fraud affecting a financial institution.
The defendants were indicted on April 23, 2015. According to court records and evidence at trial, in 2005, Raza, then employed at Bank of America, was hired by SunTrust Mortgage (STM) as a vice president tasked with opening an office in Annandale. Raza hired his wife, another former loan officer from Bank of America, and her brothers, Farukh Iqbal and Haider, to work as loan officers. From 2006 until 2007, they falsified loan applications for borrowers and purchased fake tax documents to support the false loan applications. Sun Trust Mortgage underwriters in Richmond approved the loans based in large part upon the fake documents in the files, and borrowers were given loans to buy homes that they could not afford.
Each defendant convicted yesterday will be sentenced on April 29, 2016, and faces a maximum penalty of 30 years in prison on each of the charges. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Laura Wertheimer, Inspector General for the Federal Housing Finance Agency, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jack Hanly and Special Assistant U.S. Attorney Joseph A. Capone 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. 1:15-cr-109.
Executive Director of New York City Non-Profit Organization and His Wife Each Charged with Corruption OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), announced today the filing of criminal charges against KWAME INSAIDOO, the executive director of United Block Association (“UBA”), a non-profit organization, along with his wife ROXANNA PEARSON, a/k/a “Roxanna Insaidoo,” with fraud and embezzlement charges involving UBA’s contracts to operate senior centers for New York City and the misappropriation of over $953,875. INSAIDOO and PEARSON were arrested this morning in Bay Shore, New York, and are scheduled to appear before U.S. Magistrate Judge Gabriel Gorenstein in Manhattan federal court later today.
U.S. Attorney Preet Bharara said: “As alleged, an executive director of a non-profit organization, with the assistance of his wife, abused his position of trust as a provider of public services to enrich himself and his family. Kwame Insaidoo and Roxanna Pearson allegedly diverted close to a million dollars in public funds designed to assist our city’s elderly and spent it on themselves. I thank our partners in this investigation for their work in rooting out public corruption.”
Commissioner Mark G. Peters said: “The defendants stole food from the mouths of New York's seniors, diverting almost a million dollars from programs designed to provide meals and services to the elderly, according to the criminal complaint. Our investigation revealed systemic vulnerabilities in the Department for the Aging's practices that we are now working with the agency to correct so that City services get to New Yorkers in need – not to crooks who prey on them. I thank the U.S. Attorney for his continued partnership in these investigations.” According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:
UBA is a non-profit organization headquartered in New York, New York, that was controlled by INSAIDOO. UBA has agreements with New York City’s Department for the Aging (“DFTA”) to operate and provide healthy meals and programming for four senior centers in Upper Manhattan. UBA had been awarded contracts with New York City to operate each of these senior centers. These contracts are partly federally funded. Since in or about July 2008, DFTA had paid UBA more than $11,682,213 for purported services performed under those agreements.
In connection with the investigation, DOI auditors discovered, among other things, numerous transfers involving a UBA bank account that had never been disclosed to the City and was involved in transfers of substantial funds that were embezzled by INSAIDOO and PEARSON, including through a shell corporation they had set up. INSAIDOO never disclosed this UBA account, or several other UBA bank accounts, to DFTA in violation of the contract requirements as well as requirements mandated by the City. DOI’s auditors also found evidence of various financial irregularities that potentially had an effect on UBA’s ability to provide services under the City’s contracts.
UBA over-reported and over-billed the City for its supposed purchases of food supplies at the same time INSAIDOO was embezzling funds from UBA. At times, UBA appears to have over-reported total expenses of its four senior centers by more than 500%.
INSAIDOO abused his authority as UBA’s Executive Director and, with the assistance of his wife, PEARSON, caused the misappropriation of over $953,875 to himself, PEARSON, and others. INSAIDOO and PEARSON used these funds to pay for personal expenses, including the mortgage for their Long Island residence, as well as its utilities, the purchase of a late-model luxury sedan, and clothes, insurance, and loan payments, among other things.
PEARSON was purportedly a consultant to UBA until 2012 when she was terminated because her relationship with UBA was in violation of the City’s and DFTA’s anti-nepotism polices. However, INSAIDOO continued to authorize compensation to PEARSON even after UBA terminated her.
INSAIDOO, 59, and PEARSON, 62, both of Bay Shore, Long Island, are each charged with conspiracy to commit wire fraud, wire fraud, embezzlement from a federally funded program, and money laundering, each of which carries a maximum penalty of 20 years in prison. Each is also charged with conspiracy to embezzle from a federally funded program, which carries a maximum penalty of five years in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
U.S. Attorney Bharara praised the work of DOI and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Doddridge County, WV woman sentenced for selling heroin near playgroundRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amanda Dawn Arth, 35, of Greenwood, West Virginia, was sentenced today to 27 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Arth sold heroin in April 2015 near Broadway Playground in Harrison County, West Virginia. She pled guilty in October 2015 to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.”
Assistant U.S. Attorneys Stephen Vogrin, Andrew Cogar, and former Assistant U.S. Attorney Shawn Morgan 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.
Delaware Bank Teller Sentenced for Embezzling $150,000Read the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Amanda Carey, age 28, of New Castle, Delaware, was sentenced today by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware, to 12 months and one day imprisonment and full restitution. The defendant pleaded guilty to committing bank embezzlement, in violation of 18 U.S.C. § 656, in October 2015.
According to statements made today and documents filed in court, the Judge found that Carey’s offense was a serious matter that warranted a term of imprisonment. Carey had embezzled approximately $150,000 from PNC Bank over the course several months last year. According to statements made at the plea hearing, Carey was employed as a teller supervisor at the bank, beginning in January 2015. On June 19, 2015, Carey did not report to work as scheduled. An audit of the bank’s vaults was conducted, and the bank learned that over $150,000 of cash was missing. An arrest warrant was issued for Carey on July 10, 2015, and she was arrested in Emporia, Virginia on July 28, 2015.
U.S. Attorney Oberly gave the following comments: “At a time when some question the need to incarcerate non-violent offenders, cases like this require some actual punishment. Ms. Carey breached her position of trust at the bank and stole nearly $150,000, none of which was recovered. The public needs to be assured that such crimes cannot simply be resolved or deterred through probation, but require some period of incarceration.”
“Ms. Carey took a large amount of money that wasn’t hers, so she must now face the consequences of her actions. There are laws that govern our society and our job as the FBI is to protect people from the criminals who chose to break those laws,” said Kevin Perkins, Special Agent in Charge of the FBI in Delaware.
This case was investigated by the Federal Bureau of Investigation, with the cooperation and assistance of PNC Bank Investigative Services Group.
Crystal Meth Distributor Sentenced to 324 Months in Federal PrisonRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Reymundo Molina-Trujillo, a Mexican national, was sentenced today by United States District Court Judge Nancy J. Rosenstengel to 324 months in federal prison for conspiracy to distribute and possess with intent to distribute controlled substances, namely cocaine and crystal methamphetamine, commonly referred to as "ice."
According to Court documents, Molina-Trujillo pled guilty in October 2015 without a plea agreement. At sentencing, Judge Rosenstengel stated that Molina-Trujillo faced a mandatory minimum sentence of 10 years to life. Judge Rosenstengel sentenced Molina-Trujillo to a total of 324 months in federal prison. There is no parole in the federal prison system. In addition to the prison sentence, Judge Rosenstengel also ordered Molina-Trujillo to serve a 5 year term of supervised release and to pay $100 in court fees.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigations, and the Metropolitan Enforcement Group of Southern Illinois. Assistant United States Attorney Monica A. Stump prosecuted this case.
Connecticut Man Pleads Guilty to Drug Possession After High-Speed PursuitRead the Press Release
BOSTON – Tyvonne Gooden, 25, of Manchester, Conn. pleaded guilty today to possession with intent to distribute heroin and cocaine. U.S. District Judge Mark G. Mastroianni scheduled sentencing for Aug. 17 2016.
On March 20, 2014, Gooden was in possession of 190 bags of heroin and two bags of cocaine after he was caught in Greenfield, Mass. by law enforcement officers following an hours-long chase. The chase began when Gooden sped away from a Massachusetts State Trooper after being pulled over on the highway for a traffic violation.
The charges of possession with intent to distribute heroin and cocaine each provide a sentence of no greater than 20 years in prison, three to five years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Citrus County Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Alan Kenneth Thompson, Jr. (33, Crystal River) has pleaded guilty to distributing child pornography. He faces a mandatory minimum sentence of 5 years, up to 20 years, in prison. A sentencing date has not yet been set.
According to the plea agreement, on or about June 2, 2015, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) determined that Thompson had been using a computer application to post and receive images of child pornography over the Internet. Agents tracked the activity to Thompson’s residence, executed a search warrant, and seized a cellphone and two laptop computers. Forensics analyses confirmed that the devices contained more than 4,500 still images and 84 video files depicting child pornography. Thompson later admitted to the agents that he had been receiving child pornography, and that some of the victims were only four or five years old.
This case was investigated by HSI. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chicago Woman Charged with Posing as Federal Housing Official to Scam Homeowners out of CashRead the Press Release
CHICAGO — A Chicago woman has been charged with posing as a federal housing representative to scam homeowners out of cash, federal authorities announced today.
CYNTHIA WALLACE, 45, of Chicago, is charged with one count of falsely assuming and pretending to be an officer of the United States. Last month Wallace posed as an official from the “Federal Housing Authority” and “H.U.D.” in numerous phone calls she placed to Chicago-area homeowners, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. During the calls, Wallace said the federal government would foreclose on the victims’ homes unless they wired money to a location determined by Wallace.
One of Wallace’s intended targets was a 79-year-old woman from the West Side of Chicago, the complaint states. Two other targets – a husband and wife from south suburban Harvey – wired more than $3,500 to Wallace, according to the complaint.
Wallace was arrested on Jan. 29, 2016, and appeared in court the following day before U.S. Magistrate Judge Michael T. Mason. Judge Mason ordered Wallace detained in federal custody, pending further proceedings. The next court date has not yet been set.
According to the complaint, Wallace – using the alias “Sherry Rice” – told the 79-year-old woman that the woman was entitled to $31,200 from the federal government, but only if the woman first wired $500 to a location determined by Wallace. If the woman didn’t submit the money, Wallace said the government would foreclose on the woman’s home, according to the complaint. The woman notified federal authorities, allowing agents to tape-record subsequent phone calls between her and Wallace. In one recorded call, Wallace told the woman, “We can do whatever we want to do if you’re not compliant,” according to the complaint. The woman did not wire any money.
Wallace later used a different alias – “Shree Box” – to target the Harvey couple, the complaint states. Wallace told the couple that they were qualified for a $12,000 “H.U.D./F.H.A. grant” to avoid foreclosure on their house. In order to receive the purported grant money, Wallace said they had to obtain a home inspection at a cost of $480 – payable via MoneyGram to a location determined by Wallace, the complaint states. The couple wired the money. In a series of subsequent phone calls, Wallace told the couple that they could qualify for a larger grant, a low-interest mortgage loan and mortgage insurance if they wired additional funds, according to the complaint. The couple submitted the additional payments, but then notified federal authorities.
Wallace was arrested when she attempted to claim an additional $1,500 from the couple at a currency exchange on the South Side. The purported MoneyGram was actually a ruse set up by federal authorities, the complaint states.
Wallace is not employed by the Federal Housing Administration, which is a division of the U.S. Department of Housing and Urban Development.
The arrest was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Matthew S. Ebert and Maribel Fernandez-Harvath.
To report suspected fraud, logon to https://www.hudoig.gov/report-fraud or call 1-800-347-3735.
Caldwell Man Sentenced to Prison for Gun CrimeRead the Press Release
BOISE – Isaac Bright, 22, of Nampa, Idaho, was sentenced today to 27 months in prison for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Bright to serve three years of supervised release and have no contact with gang members. The federal sentence imposed will run consecutively with a state sentence that the defendant is now serving. Bright was found guilty on November 5, 2015.
According to court documents, law enforcement stopped a vehicle in which Bright was a passenger because of a traffic violation. During the stop, Bright lied to the officer about his identity and the fact that he was on felony probation at the time. Officers ultimately were able to determine Bright’s identity and confirmed that he had an outstanding warrant for his arrest. During a search of his person, the officer found a loaded handgun in his waistband. Bright was prohibited from possessing a gun because he was previously convicted of the felony crime of kidnapping on May 2, 2014, in Canyon County. Bright was also known to be a documented Norteno gang member.
Bright was charged as a result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. So far, eleven defendants have been sentenced. Guadalupe Serrano, 35, of Caldwell, was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Nicole Danelle Nieto, 31, of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. Jose Manuel Menchaca, 35, of Nampa, was sentenced on May 28, 2015, to 60 months in prison for distributing methamphetamine. On June 17, 2015, Brandi Larrea, 31, of Nampa, was sentenced to 48 months in prison for distributing methamphetamine and Tara Noelle Rivera, 30, of Nampa, was sentenced to 24 months in prison for distributing methamphetamine. Johnny Lee Martinez, 33, of Nampa, was sentenced on July 20, 2015, to 57 months in prison for distributing methamphetamine. Michael David Bradshaw, 31, of Nampa, was sentenced on August 6, 2015, to 66 months in prison for distributing methamphetamine. Kenny P. Breedlove, 35, of Porterville, California, was sentenced on October 22, 2015, to 110 months for possession of methamphetamine with the intent to distribute. Guillermo Farias Jr., 29, of Nampa, was sentenced on October 26, 2015, to time served and three years of supervised release for his role in assisting with methamphetamine distribution. Richard Lobato, 51, of Nampa, was sentenced on December 3, 2015, to 60 months for distribution of methamphetamine. Veronica Cantu, 26, of Nampa, was arrested in Michigan in November and is set for trial in April. One defendant, Ruben Rodriguez, 36, of Nampa, has an outstanding warrant.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
CFO of Berlin, New Hampshire Business Pleads Guilty in Multi-million Dollar Bank Fraud CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Steven D. Griffin, 59, of Berlin, New Hampshire, pleaded guilty before Chief Judge Christina Reiss yesterday to a charge of making a false statement to a financial institution. The charge alleged that in or about March 2011, Griffin submitted or caused to be submitted inflated figures for assets of Isaacson Structural Steel, Inc. (“ISSI”), including inventory, to Passumpsic Savings Bank, and other banks that provided ISSI loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration. Based on the plea agreement, Griffin faces up to three years in prison. Griffin agreed to a restitution order for $500,000.
Griffin was part owner,Vice President and CFO of ISSI, which before its bankruptcy was one of the largest businesses in the North Country. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings, but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, New Hampshire location and then shipped the steel to building sites. Early last year, ISSI’s CEO Arnold Hanson pleaded guilty to conspiring to submit false financial statements. Sentencings for Hanson and Griffin are scheduled for May 2016.
Griffin’s indictment and Hanson’s conspiracy charge allege that between August 2007 and April 2011, ISSI officers regularly submitted false and inflated figures to the banks regarding the value of ISSI’s assets. ISSI submitted these false statements about assets in borrowing base certificates and financial statements. ISSI regularly inflated its assets by one million dollars or more. For example, in August 2007, ISSI officers discussed, and then submitted to the bank, inflated figures for the amount of money owed to ISSI for work done in connection with 303 Third St., a construction project in Boston. In early 2011, officers participated in the submission of an ISSI’s draft financial statement for the financial year 2010, which contained significant overstatements about ISSI’s inventory. That financial statement had an inventory representation of approximately $12 million dollars. In fact, the value of ISSI’s inventory at that time was less than $2 million. Inventory was thus inflated by over $10 million.
In April 2011, the banks learned about issues with ISSI’s inventory figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. The lending banks lost millions of dollars as a result of the fraud. As part of the plea agreement, Griffin admitted that he knowingly submitted false information to the lending banks in 2010 and 2011. At the sentencing hearing, the government anticipates offering evidence showing that Griffin’s criminal activity began as early as 2007.
The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty. Griffin is represented by Paul Volk, Esq. and Douglas Miller, Esq. The investigation, which is ongoing, is being conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.
Bulger Companion Pleads Guilty to Criminal Contempt ChargeRead the Press Release
BOSTON – Catherine Greig, the longtime companion of convicted killer James “Whitey” Bulger, pleaded guilty today in U.S. District Court in Boston in connection with her refusal to testify before a federal grand jury. The investigation centered on whether others assisted her and Bulger during the 16 years they were fugitives from justice.
Ms. Greig, 64, pleaded guilty to one count of criminal contempt. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for April 28, 2016.
Greig is currently serving an eight year sentence for her 2012 conviction of identity fraud and harboring James J. Bulger.
The charge of criminal contempt provides for a sentence or no greater than life in prison to be served subsequent to her current eight-year prison sentence and a fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.
Buffalo Man Charged with Multiple Child Pronography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert Pritchett, 20, of Buffalo, NY, was arrested and charged by criminal complaint with Production, receipt and possession of child pornography and sex trafficking of minors. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorney Aaron J. mango, who is handling the case, stated that according to the complaint, on July 10, 2014, the defendant was arrested by the Cheektowaga Police Department and charged with sexually assaulting and raping a 15 year old girl. The charges were filed after Pritchett had a 14 year old female send him naked pictures using the Kik messaging application in June of 2014. The 14 year old asked the defendant to delete the pictures but he refused. The 14 year old contacted a 15 year old friend who contacted Pritchett in an attempt to get him to delete the pictures. The defendant agreed if the 15 year old met him in person.
The 15 year old met the defendant in South Buffalo, NY and the two boarded a bus to the Galleria Mall in Cheektowaga, NY. Pritchett forced the 15 year old to have oral sex and sexual intercourse with him. The 15 year old reported the assault and rape to the Cheektowaga Police in July 6, 2014. Subsequently, law enforcement officers, acting in an undercover capacity, contacted the defendant through the 15 year old’s telephone. Pritchett agreed to meet the “15 year old” on July 10, 2014 at which time he was arrested.
A subsequent search of the defendant’s cellular telephone revealed naked images of numerous unidentified underage females as well as images of one known underage female (victim 1). According to the complaint, during an interview with officers, victim 1 said she told Pritchett she was 15 years old. She also indicated that the defendant filmed a video chat during which she was naked. After that video session, victim 1 said she began receiving messages on social media from strangers who had seen her video.
On November 8, 2015, the town of Tonawanda Police responded to the Erie County Medical Center for a report of the sexual assault of a 17 year old female (victim 2). Victim 2 told officers she met the defendant on a social media website and eventually began communicating through telephone. Victim 2 said she told Pritchett she was having trouble at her New Jersey residence and wanted to leave. The defendant encouraged victim 2 to come to Buffalo but stated she would have to have sexual relations with his adopted brother when she arrived among other things. Pritchett also convinced victim 2 to place an ad on Backpage.com offering sexual services in exchange for money. On November 6, 2015, victim 2 traveled to Buffalo where the defendant picked her up and took her to a motel in Tonawanda where the two had sex.
On November 7, 2015, the defendant made victim 2 place ads on Backpage.com and meetme.com advertising prostitution services. Later that day, victim 2 has sexual intercourse with an individual who responded to the ad on meetme.com.
On November 8, 2015, victim 2 boarded a bus to head back to New Jersey but she got off at a stop near the airport and called a family friend who drove her to the hospital.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Cheektowaga Police Department, under the direction of Chief David Zack, the Tonawanda Police Department, under the direction of Chief Jerome Ushold, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Timothy Howard.
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.
Bradenton Man Sentenced to Life in Federal Prison for Child Sexual Exploitation OffensesRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Nathan Bryan (40, Bradenton) to life in federal prison for producing child pornography and attempting to entice a minor for illegal sexual activity. The Court also ordered him to forfeit items that he had used while committing the offenses. Bryan pleaded guilty on October 25, 2015.
According to court documents, in April 2014, a detective from the Bradenton Police Department conducted an undercover investigation of Bryan, who was attempting to obtain babysitting jobs by posting and responding to online ads. Bryan communicated with the detective, who Bryan believed was the stepfather of an 8-year-old boy, and made plans to meet the “child” for sex. He also discussed various sex acts that he wanted to perform on the child. On June 21, 2015, Bryan arrived at the prearranged location to meet the “dad” and to have sex with the “child.” During that meeting, he shared a video that he had produced while babysitting that contained explicit images of a young boy.
This case was investigated by the Bradenton Police Department, which is a member of the Federal Bureau of Investigation Child Exploitation Task Force in Fort Myers. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Beavercreek Business Owner Charged with Embezzling $95,550 from Employee Retirement Savings PlanRead the Press Release
PORTLAND, Ore. – Charles W. Buller, 63, of Beavercreek, Oregon, has been charged by federal indictment with embezzling $95,550 from an employee retirement savings plan he controlled. The indictment alleges that Buller was the President and sole owner of Park Place Wood Products, Inc., based in Oregon City, Oregon. Park Place made high-end cabinetry for homes and businesses and in a typical year employed between 10 and 20 people.
Park Place maintained a retirement savings benefit plan for its employees and from July 2011 to December 2012, Buller, as the sole trustee of the plan, allegedly drew eight checks totaling $95,550 on the retirement plan account and converted the money to his own use.
“Employees of small businesses contribute to retirement plans relying on the money being there when they retire, and business owners have a special responsibility to maintain those plans solely for the benefit of their employees” said U.S. Attorney Billy J. Williams. “This office, in partnership with the Department of Labor, will vigorously investigate and prosecute business owners who take money out of their employees’ pockets in this manner.”
This case was investigated by the U. S. Department of Labor, Employee Benefits Security Administration. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
You can download the Indictment attached below.
Baltimore City Landfill Supervisor and Three Other Defendants Sentenced to Prison in Bribery and Illegal Salvaging SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced William Charles Nemec, Sr., age 56, of Baltimore, today to 78 months in prison followed by three years of supervised release for conspiracy and bribery in connection with two schemes: one in which Department of Public Works (DPW) employees sought and accepted cash payments from commercial haulers in return for allowing the haulers to deposit trash at the Quarantine Road Landfill without paying the required disposal fees (bribery scheme); and a second scheme in which DPW employees stole scrap metal from the landfill for personal gain (the junking scheme). Judge Garbis also entered an order that Nemec pay restitution of $6 million.
On February 1, 2016, Judge Garbis sentenced two commercial haulers for their participation in the bribery scheme: Adam Williams, Jr., age 52, of Randallstown, to one year in prison followed by two years of community confinement with work release; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison. Judge Garbis also entered an order that Williams pay restitution of $900,000, and Lowry pay restitution of $180,000.
Yesterday, Judge Garbis sentenced Michael Theodore Bennett, age 46, of Baltimore, an employee at the Baltimore City Landfill, to 46 months in prison and entered an order that Bennett pay restitution of $400,000. Bennett had previously pleaded guilty to conspiracy to steal from a program receiving federal funds, wire fraud and failure to file a tax return in connection with the junking scheme.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
Bribery Scheme
Individuals or companies commercially hauling trash that have registered their vehicles with Baltimore City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. The scale house operators reweigh each truck as it leaves the Landfill.
According to the defendants’ plea agreements, Nemec started working in 1984 for the DPW as a scale house cashier at the Cold Spring Lane Landfill. Back then, Nemec and other cashiers would regularly accept bribes from small and large haulers in lieu of charging disposal fees and then split the bribe money among all the cashiers. That same year, Nemec was transferred to the Quarantine Road Landfill (Landfill) where he engaged in the same type of bribery scheme. Except for short periods of time over the years since 1984, and despite the comings and goings of new scale house employees and supervisors at the Landfill, Nemec and other scale house operators continued to execute the bribery scheme, even after Nemec was promoted to a supervisory position at the Landfill in 2006, and until his arrest on May 12, 2015.
Beginning around 2002, Nemec executed the bribery scheme in tandem with two scale house operators. Nemec and the scale house operators accepted $100 bribe payments from large haulers for each truckload of trash dumped at the Landfill, which saved the haulers many hundreds of dollars per trip to the Landfill. Nemec and others concealed the bribery scheme by not entering a truck’s registration number into the computerized scale system, which meant the transaction was not recorded. Consequently, the transaction would not appear on the scale house’s daily logs and the commercial hauler would not be billed for using the Landfill on that particular occasion.
To maintain the pretense that the trucks had been weighed and the disposal fee paid, Nemec and others would hand the truck drivers fake or blank receipts when they crossed the outbound scale. In return, the commercial haulers, including Larry Lowry and Adam Williams, either paid the $100 bribe through the outbound window at the scale house or met with Nemec or another scale house operator at an off-site location to pay a week’s worth of bribes or more. The commercial haulers always paid the $100 bribes in cash. Nemec and the two scale house operators split the bribes three ways until Nemec became a supervisor, after which they agreed that Nemec would collect and keep Lowry’s bribes as Nemec’s share of the scheme, and Washington and the other employee would collect and keep the bribes paid by the other haulers as their share of the scheme.
By paying the $100 bribes in lieu of the disposal fees to Nemec and other scale house operators, the commercial haulers saved their businesses thousands of dollars each month, which, in turn, cost the City of Baltimore more than $6 million in revenue. For example, from July 1, 2014 through May 1, 2015 alone, Nemec, while working as a landfill supervisor, accepted more than $15,000 in bribe payments from Larry Lowry in return for not charging Lowry approximately $55,000 in required waste disposal fees. Similarly, during the same time period, Adam Williams paid more than $42,000 in bribe payments in lieu of paying $120,000 in required waste disposal fees.
Illegal Junking Scheme
In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
From about 2005 to May 2015, Nemec and other Landfill employees falsely represented to the DPW that they were performing their jobs when in fact they unlawfully collected and sold scrap metal for personal gain during work hours.
Nemec knew that laborers at the Landfill, including Michael Bennett, used their personal cell phones during work shifts to let each other know when and where recyclable scrap metals were being dumped at the Landfill. After collecting and creating piles of the scrap metal, the laborers would transport the scrap metal using their personal pick-up trucks to a private salvage company, frequently making multiple trips during an eight-hour work shift. Bennett and other employees paid other DPW employees to help locate, collect and load the scrap metal onto their trucks.
During 2011 and 2012, Bennett paid Nemec approximately $20 every day to allow them to collect and transport the stolen scrap metal. In addition to not reporting Bennett’s daily trips to the salvage company to sell the stolen metal, which some days could take a total of 3 - 4 hours, Nemec would authorize and submit false time and attendance records to conceal the scheme, so that Bennett and other laborers were able to be paid for work they did not perform while stealing the metal.
Bennett prepared and submitted false time and attendance records, which claimed he had been working, when he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Bennett for work he did not perform.
The loss to the City of Baltimore as a result of the junking scheme was approximately $1 million.
Bennett also failed to report approximately $479,468 of income for tax years 2011 through 2013, the majority of which was obtained from the illegal junking scheme, resulting in a tax loss to the government of $126,273.
To date, five DPW employees and six commercial haulers have been convicted in the schemes.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke and Leo J. Wise, who prosecuted the case.
BBA Aviation to Divest Facilities at Six Airports in Landmark Aviation AcquisitionRead the Press Release
Divestitures Avoid Creating Monopolies or Duopolies for Critical Fueling and Support Services
The Department of Justice announced today that it will require BBA Aviation plc, the parent company of Signature Flight Support, to divest fixed‑base operator assets (FBOs) at six U.S. airports in order to proceed with its $2.065 billion acquisition of Landmark Aviation.
The department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed acquisition, and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The department said that without the required divestitures, the transaction would have created a monopoly for FBO services at three airports and reduced the number of full-service FBO providers from three to two at three others, resulting in higher prices and lower quality of FBO services for consumers.
“The merger would have subjected general aviation customers at six airports to a monopoly or duopoly for critical fueling and support services,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Higher prices and lower quality services were the likely result. Today’s proposed settlement will ensure that customers at these airports will continue to receive the benefits of vigorous competition.”
FBOs provide fuel and related support services to general aviation customers, which include charter, private and corporate aircraft operators. Signature and Landmark own or operate full-service FBOs at airports throughout the United States. Signature and Landmark are the only two full-service FBOs at Washington Dulles International Airport (IAD) in Dulles, Virginia; Scottsdale Municipal Airport (SDL) in Scottsdale, Arizona; and Fresno Yosemite International Airport (FAT) in Fresno, California. Signature and Landmark are two of only three full-service FBOs at Jacqueline Cochran Regional Airport (TRM) in Thermal, California; Westchester County Airport (HPN) in White Plains, New York; and Ted Stevens Anchorage International Airport (ANC) in Anchorage, Alaska. At each of these three airports, the third FBO is much smaller than Signature and Landmark.
Under the terms of the proposed settlement, BBA Aviation must divest Landmark’s FBO assets at each of the six impacted airports to a buyer approved by the Antitrust Division.
BBA Aviation plc is a United Kingdom public limited company headquartered in London. Its subsidiary, Signature Flight Support, a Delaware corporation headquartered in Orlando, Florida, has the world’s largest FBO network and operates approximately 70 FBO facilities in the United States. BBA had worldwide revenues of approximately $2.3 billion in 2014, of which over $900 million were derived from Signature’s U.S. FBO business.
Landmark U.S. Corp LLC and LM U.S. Member LLC (collectively doing business as Landmark Aviation), are Delaware limited liability companies headquartered in Houston and are owned by investment funds managed by the Carlyle Group. Landmark operates approximately 60 FBO facilities in the United States. Landmark had worldwide revenues of over $700 million in 2014, of which over $500 million were derived from its U.S. FBO business.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to James J. Tierney, Chief, Networks & Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 7100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it serves the public interest.
BBA_Landmark CIS (86.52 KB)
BBA_Landmark PFJ (84.97 KB)
BBA_Landmark Hold Separate (105.15 KB)
BBA_Landmark Explanation (26.9 KB)
BBA_Landmark Complaint (115.75 KB)
9 Charged in Federal Court with Circumventing Smog Check Program by ‘Clean Piping’ over 1,300 Vehicles that Were Never TestedRead the Press Release
LOS ANGELES – A federal grand jury has returned a 44-count indictment that charges nine defendants with violating the Clean Air Act by conducting hundreds of fraudulent smog check inspections that falsely certified vehicles had passed emissions tests when different cars and trucks had actually been tested.
The indictment, which was filed yesterday afternoon in United States District Court, focuses on Smogz R Us, a shop that operated on West 54th Street in South Los Angeles. The defendants – who are charged with conspiracy and various counts of making false statements in a record – allegedly performed more than 1,300 fraudulent smog checks at Smogz R Us.
“Environmental protection programs, such as California’s smog check program, are designed to protect our health and safety,” said United States Attorney Eileen M. Decker. “The operator and employees of this smog check facility – one of many on the front lines of limiting air pollution – willfully circumvented testing procedures and allowed as many as 1,300 hundred cars and trucks to emit harmful levels of pollutants.”
The federal Clean Air Act gives primary responsibility for meeting “ambient air quality” standards for pollutants such as ozone, lead, sulfur dioxide and carbon monoxide to the states. As part of California’s plan to meet these air quality standards, the state’s Bureau of Automotive Repair oversees a vehicle inspection program that requires many vehicles in the state – and in the Los Angeles metropolitan area, where ozone pollution is particularly severe – to undergo an emissions test commonly called a smog check. The Clean Air Act prohibits a person from knowingly making false statements and certifications in relation to programs mandated under the Clean Air Act, which includes the California smog check program.
The indictment alleged that the nine defendants engaged in a form of fraudulent smog testing known as “clean piping.” To do this, the defendants entered vehicle identification information into the smog testing equipment, known as the Emissions Inspection System (EIS), to make it appear that a particular vehicle was being tested, but then they performed the emissions test on a second “substitute vehicle” to obtain a passing result for the vehicle that was not actually tested. This process of “clean piping” was allegedly used to conduct more than 1,300 fraudulent smog checks at Smogz R Us, and nearly all of the vehicles supposedly being tested were not even at the testing station. According to the indictment, once the bogus tests were completed, the defendants caused fraudulent Certificates of Compliance to be submitted to California’s Vehicle Information Database, falsely certifying that vehicles passed the smog checks when they were never tested.
The defendants named in the indictment are:
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Jermaine Elroy Williams, also known as “Aria,” 32, of Woodland Hills, who allegedly conducted fraudulent smog inspections at Smogz R Us after his license had been revoked and a Los Angeles Superior Court judge in a criminal case ordered Williams not to have any employment related to smog checks;
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Cheerline May Young, also known as Cheerline Williams, 52, of Athens, who is the mother of Jermaine Williams and was the owner and operator of Smogz R Us;
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Mario Mesa, 47, of Bell Gardens, a licensed smog check technician who allegedly conducted fraudulent smog check inspections at Smogz R Us;
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Jaime Patrick Alvarez, 55, of Baldwin Park, another licensed smog check technician who allegedly conducted fraudulent smog checks;
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Darnell Tyrone Usher, also known as “Who Knew,” 26, of South Los Angeles, who along with Williams was previously ordered by a Los Angeles Superior Court judge not to be employed in the smog or emissions industry;
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Lavell Fay Davenport, also known as “Precept,” 54, of South Los Angeles, who allegedly conducted fraudulent smog inspections;
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Miguel Angel Espinoza, 67, of Maywood, who allegedly facilitated and assisted in fraudulent smog checks;
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Mark Anthony Young, 23, of Woodland Hills, who is the son of Cheerline May Young and allegedly facilitated and assisted in fraudulent smog checks; and
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Cheerline Marie “Cici” Young, 26, of South Los Angeles, who is the daughter of Cheerline May Young and who also allegedly conducted fraudulent smog inspections.
The nine defendants will be summoned to appear for arraignment in United States District Court in the coming weeks.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of conspiracy of conspiracy carries a statutory maximum penalty of five years in federal prison, and the charge of making false statements in a record carries a statutory maximum penalty of two years.
The indictment targeting Smogz R Us is the product of an investigation by the United States Environmental Protection Agency, Criminal Investigation Division.
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4 Arrested on Federal Drug ChargesRead the Press Release
COLUMBUS, Ohio – Four defendants were arrested yesterday morning on charges related to running a marijuana ring between Tuscon, Ariz. and Columbus, Ohio. Investigators have seized more than 2,000 pounds of marijuana and more than $1.2 million in cash in relation to the case.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Columbus Police Chief Kim Jacobs and other members of Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force announced the arrests that took place today. The HIDTA Task Force is operated as part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission.
According to court documents, detectives with Columbus Police and the HIDTA Task Force began in investigation into a multi-kilogram marijuana drug ring in November 2015. Detectives learned large shipments were being imported into Columbus on a monthly basis by a male named “Lucky,” later identified as Damian Edwards, a Jamaican native.
While conducting surveillance, law enforcement officials saw defendants renting and driving large vehicles such as a U-Haul, Dodge Durango and Landstar Ranger semi-tractor trailer and meeting at locations near Polaris Shopping Place before following one another to a hotel nearby.
The defendants were each charged with conspiracy to possess with intent to distribute marijuana, a crime punishable by a range of 10 years up to life in prison, and a $10 million fine.
Initial court appearances for the arrestees are scheduled this afternoon before U.S. Magistrate Judge Norah McCann King. They include:
Damian Edwards, 38, of Columbus
Hopie Dawn Edwards, 34, of Columbus
Theo Lavelle Smith, 33, of Columbus
German Alfredo White, 53, of Jacksonville, Fla.
U.S. Attorney Stewart commended the cooperative investigation by the DEA and Columbus Division of Police, as well as Assistant U.S. Attorneys Michael Hunter and David Bosley, who are prosecuting the case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
20 Charged after FBI Task Force Investigation into Hartford Drug TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced that 20 individuals have been charged with federal narcotics offenses related to the distribution of crack cocaine in Hartford’s North End.
According to allegations made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that DAVID GIL-GRANDE of Manchester received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. GIL-GRANDE supplied cocaine to GERARD BROWN, a.k.a. “Goldie,” ANTHONY SHELTON, a.k.a. “Pretty,” and TREVON TERRY, a.k.a. “B.J.,” who converted much of the cocaine into crack cocaine and distributed both forms of the drug to others for street sale in the area of Barbour Street in Hartford.
The investigation has included the use of court-authorized wiretaps, physical surveillance, controlled drug purchases and seizures of drugs, a firearm, body armor, more than $150,000 in cash, two vehicles and jewelry.
Charged in a 38-count indictment, which was returned by a federal grand jury in Hartford on January 28, 2016, are:
DAVID GIL-GRANDE, 28, of Manchester
ANTHONY SHELTON, a.k.a. “Pretty,” 37, of Hartford
GERARD BROWN, a.k.a. “Gerald Brown” and “Goldie,” 35, of Hartford
TREVON TERRY, a.k.a. “B.J.,” 37, of Newington
NORKA SANCHEZ, 35, of Manchester
LUIS CRUZ, a.k.a. “Gordo,” 37, of Hartford
LONNIE ARNOLD, 35, of Hartford
NATISHA BROWN, 33, of Hartford
EUGENE McCLARY, a.k.a. “Chalk,” 35, of Hartford
CHARLES MORELAND, a.k.a. “Chuck,” 49, of Hartford
JIMMIE SMITH, a.k.a. “Prime,” 43, of Hartford
WILLIAM BRASWELL, a.k.a. “Skills,” “Bubba Skillet” and “Handsome,” 44, of Hartford
DION SMITH, a.k.a. “Uncle Block, 47, of Hartford
RICHARD DURRANT, a.k.a. “Face,” 31, of Hartford
JULIUS NELSON, 31, of Meriden
ANTHONY McKENZIE, 54, of Manchester
ANDRE CARTAGENA, 28, of Hartford
HERIBERTO LEBRON, 33, of Hartford
CARLOS RIVERA, a.k.a. “Los,” 26, of Hartford
ROBERT JONES, a.k.a “Y.O.,” 30, of HartfordOn January 21, 2016, investigators arrested GIL-GRANDE, GERARD BROWN, TERRY and SANCHEZ at their respective residences. SHELTON was arrested the following day at a hotel in Branford.
The investigation culminated yesterday with the arrests of CRUZ, NATISHA BROWN, McCLARY, MORELAND, BRASWELL, DION SMITH, NELSON, McKENZIE, CARTAGENA, RIVERA and JONES.
LEBRON is currently in state custody.
(*ARNOLD, JIMMIE SMITH and DURRANT are currently being sought by law enforcement. Citizens with knowledge of their whereabouts, or with information that may be helpful the investigation of this matter, are encouraged to call the FBI at 203-777-6311.)
The indictment charges GIL-GRANDE, SHELTON, GERARD BROWN, TERRY, SANCHEZ, CRUZ, ARNOLD, NATISHA BROWN, McCLARY, MORELAND, JIMMIE SMITH, BRASWELL, DION SMITH and DURRANT with conspiracy to distribute and to possess with intent to distribute narcotics. If convicted of this charge, based on the type and quantity of narcotics charged, GIL-GRANDE, SHELTON, GERARD BROWN, TERRY and SANCHEZ face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; CRUZ, ARNOLD, NATISHA BROWN, McCLARY, MORELAND and JIMMIE SMITH face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and BRASWELL, DION SMITH and DURRANT face a maximum term of imprisonment of 20 years.
SHELTON, GERARD BROWN, TERRY are charged with one or more counts of possession with intent to distribute, and distribution of, various quantities of crack cocaine, and GERARD BROWN, McKENZIE, CARTAGENA, LEBRON, RIVERA, and JONES are charged with one or more counts of possession with intent to distribute narcotics.
NELSON, McKENZIE, CARTAGENA, LEBRON, RIVERA and JONES are charged with use of telephone to facilitate the distribution of controlled substances, a charge that carries a maximum term of imprisonment of four years.
Finally, the indictment charges SHELTON with one count of possession of a firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years, and one count of possession of body armor by a violent felon, which carries a maximum term of imprisonment of three years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad and the Drug Enforcement Administration are providing valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Tuesday 2 February 2016
Wilton Man Sentenced to Prison for Felon in Possession of a Firearm and Possession of a Stolen Firearm ChargesRead the Press Release
DAVENPORT, IA – On January 29, 2016, Brandon Lysle VanBlarcom, 29, of Wilton, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 72 months in prison for felon in possession of a firearm and possession of a stolen firearm, announced Acting United States Attorney Kevin E. VanderSchel. VanBlarcom was ordered to serve three years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund.
VanBlarcom pleaded guilty to the offenses on October 5, 2015. According to the plea agreement, on February 17, 2015, law enforcement was notified of a burglary in Morrison, Illinois, involving stolen firearms. On March 30, 2015, police officers searched VanBlarcom’s residence and found a Yugoslavian SKS 7.62 x 39 caliber rifle hidden in a crawl space. This gun was verified as having been stolen in the Morrison burglary. VanBlarcom has a prior 2005 felony conviction for burglary in the second degree.
This matter was investigated by the Muscatine Police Department, Muscatine County Sheriff’s Department, Muscatine Drug Task Force, Wilton Police Department, Cedar County Sheriff’s Department, Iowa Division of Narcotics Enforcement, Scott County Sheriff’s Department, Whiteside County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Williamsburg Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Williamsburg, Mo., man was sentenced in federal court today for illegally possessing a firearm.
William Hayward Council, 58, of Williamsburg, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole. Council was sentenced as an armed career criminal due to his prior felony convictions.
On Sept. 1, 2015, Council pleaded guilty to being a felon in possession of a firearm. Council admitted that he was in possession of a sawed-off shotgun on Aug. 23, 2013. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Council has two prior felony convictions for unlawful use of a weapon and three prior felony convictions for distribution of a controlled substance. Council has been convicted of driving while intoxicated on 10 different occasions.
On Aug. 23, 2013, two individuals reported to law enforcement that Council jumped out of his truck and pointed a sawed-off shotgun at them on a rural roadway in Callaway County, Mo. Callaway County sheriff’s deputies went to Council’s residence that day. Deputies knocked on the door to Council’s camper (where he resided) and he opened the door. Deputies instructed Council to step outside the trailer, and informed him they were going to arrest him; however, he stepped back into the camper. Fearing that Council could access the gun, deputies stepped into the camper and grabbed Council, who resisted the deputies’ attempts to arrest him.
After obtaining a search warrant, officers found a New England 12-gauge shotgun, with a barrel length of less than 12 inches, on a bed inside the camper.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Callaway County, Mo., Sheriff’s Department.
Victoria Man Gets 30 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – James Peyton Busbee Jr., 30, of Victoria, has been ordered to federal prison following his conviction of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson.
At a hearing late yesterday, Senior U.S. District Judge John D. Rainey sentenced Busbee to 360 months in federal prison. At the hearing, the agent testified that Busbee used a pipe laced with methamphetamine in the assault. In handing down the sentence, Judge Rainey called the crime “heinous.” The prison term will be immediately followed by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict access to children and the Internet. He must also register as a sex offender and pay $1200 in restitution.
On Feb. 3, 2015, authorities responded to Busbee’s residence in reference to the possible sexual assault of a child. A minor male relative was identified and confirmed the abuse. Busbee also admitted to sexually assaulting the child.
A forensic examination of Busbee’s phone led to the discovery of an electronic video depicting Busbee involved in sexually explicit conduct with the child. Busbee was arrested on the federal charges in April 2015 and has been in custody since that time.
The charges were the result of an investigations conducted by Homeland Security Investigations with the assistance of the Victoria County Sherriff’s Office.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Orlando Men Involved in the Carjacking of A Federal Officer Plead GuiltyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Dante Askins (18) and Gregory McDonald (18) have pleaded guilty to carjacking and using a firearm while committing that offense. They each face a maximum penalty of 25 years in federal prison for the carjacking conviction and a mandatory 7-year consecutive term of imprisonment for the firearm conviction. The sentencing hearing has been scheduled for April 25, 2016.
According to court documents, on August 12, 2015, Askins and McDonald committed an armed carjacking of a U.S. Customs and Border Protection officer at a hotel in Orlando. The victim, who was on vacation with his family, had gone down to his SUV in the hotel parking lot to preload his GPS for a trip to Destin the next morning. Askins ran up to the victim and stuck a long-barreled .22 caliber revolver in his face. He, along with McDonald, and two minors, then forced the victim into the backseat of his vehicle at gunpoint. McDonald pistol whipped the victim three times in the back of the head. The carjackers held the victim for approximately two hours. When OnStar location services contacted the vehicle, the carjackers fled and the victim escaped.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Two Men Sentenced to Federal Prison for Investment FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Chawalit Wongkhiao (29, Jacksonville) and Joshua Gilliland (31, Chattanooga, TN, formerly of Jacksonville) for conspiracy to commit wire fraud. Wongkhiao was sentenced to a term of four years and seven months and Gilliland was sentenced to one year and three months’ imprisonment. The Court also entered a money judgment against Wongkhiao and Gilliland in the amount of $1,120,831.00, the proceeds of the fraud.
Wongkhiao pleaded guilty on August 25, 2015, and Gilliland pleaded guilty on September 25, 2015.
According to court documents, Gilliland and Wongkhiao, doing business as Allied Markets LLC, solicited money for purported investments in foreign currency exchange (“forex”) transactions. Between March 2012 and July 2014, based on their representations, investors gave them substantial amounts of money. Contrary to their representations, Gilliland and Wongkhiao invested only a small portion the total investors’ funds in forex transactions, which resulted in a loss. A large portion of the funds were used for personal expenses, including cash withdrawals, rent, furnishings, clothing, travel, food, and entertainment. They also used some of the funds received from later investors to pay off earlier investors
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Florida Office of Financial Regulation, and the Jacksonville Beach Police Department. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two Men Plead Guilty to Federal Charges for Role in Taco John’s Robbery; Three Additional Men ChargedRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Jan. 29, 2016, Rico Jamal Brown, 27, and Calvin Michael Frederick Brown, 25, pled guilty before U. S. District Judge Ralph R. Erickson to Interference with Commerce by Threats and Violence-Hobbs Act Robbery.
On September 3, 2015, the Taco John’s restaurant, 2601 32nd Avenue South, Fargo, was robbed at gunpoint. During the robbery, two men entered the business and an employee was shot during the course of the robbery. Rico Brown admitted during his plea hearing to aiding and abetting this robbery by participating as a lookout and Calvin Brown admitted to being a get-away driver for the robbery.
Judge Erickson has set sentencing for both men to take place on April 21, 2016, in U. S. District Court, Fargo, ND.
On January 28, 2016, Tommy Trent, 29, made an initial appearance before Magistrate Judge Alice Senechal on charges of Interference with Commerce by Threats and Violence-Hobbs Act Robbery.
Kadeem Malik Muhammed and Carl Eugene Smith, currently charged in Cass County District Court, are both scheduled for a court appearance in federal court on February 5, 2016, at 11:00 am; the case remains sealed until their first appearance.
This case is being investigated by the Fargo Police Department and Alcohol, Tobacco, Firearms, and Explosives (ATFE).
U. S. Attorney Christopher C. Myers is prosecuting the case.
Two Men Plead Guilty to Federal Charges for Role in Fargo Liquor Store RobberiesRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Jan. 29, 2016, Andrew Jerome Ford, and Carlos Henry Bethel, both 28, pled guilty before U. S. District Judge Ralph R. Erickson to Interference with the Commerce by Threats and Violence-Hobbs Act Robbery and Possession of a Firearm in Furtherance of a Crime of Violence.
On September 28, 2015, Bottle Barn Wine and Liquor, 2515 South University Dr., and The Spirit Shop Liquor Store, 1404 33rd St. S., were robbed within an hour of each other. Bethel pled guilty to robbing Bottle Barn while brandishing a firearm and threatening the cashier to hand over money. Ford has agreed to plead guilty to robbing The Spirit Shop through violence or threat of violence and did knowingly possess a firearm in furtherance of the crime of violence.
As part of the plea agreement Ford and Bethel also agreed that they participated or aided and abetted the following crimes:
(a) A home invasion on June 24, 2015, in Hillsboro, North Dakota, where currency was stolen;
(b) A burglary resulting in a stolen firearm in Hillsboro in or about July through September 2015;
(c) A burglary of a vehicle in Fargo, North Dakota, in which monetary instruments were stolen on or about August 24, 2015, and on or about September 24, 2015;
(d) A burglary of a residence in Fargo, resulting in the theft of five firearms on or about September 24, 2015;
(e) Setting fire to four dumpsters in Fargo in an effort to determine law enforcement response time on or about September 28, 2015, as well as robbery of The Spirit Shop Liquor Store in Fargo;
(f) The pistol whipping assault of a victim resulting in serious bodily injury including unconsciousness on or about September 19, 2015 in Fargo; and,
(g) Conspiracy to distribute marijuana in North Dakota.
Judge Erickson has set sentencing for Ford to be held on April 19, 2016, and Bethel’s sentencing is scheduled for April 25, 2016, in the U. S. District Court, Fargo, ND.
This case is being investigated by the Fargo Police Department and Alcohol, Tobacco, Firearms, and Explosives (ATFE).
U. S. Attorney Christopher C. Myers is prosecuting the case.
Two L.A. County Sheriff’s Deputies Involved in Use-of-Force Incident Against Shackled Inmate Found Guilty of Obstruction of JusticeRead the Press Release
LOS ANGELES – Two Los Angeles Sheriff’s deputies who were assigned to the 3000 Floor of the Men’s Central Jail were found guilty this afternoon of falsifying reports with the intent to obstruct justice. The false reports were filed after an incident in which a shackled inmate was struck, kicked, repeatedly hit by a flashlight, and pepper-sprayed by the defendants.
Concluding a two-week trial, a federal jury convicted former deputies Joey Aguiar, 28, and Mariano Ramirez, 40. Both men were found guilty of one count of falsifying records with the intent to obstruct justice, a charge that carries a statutory maximum penalty of 20 years in federal prison.
The jury in the case was unable to reach a unanimous decision on a civil rights offense that alleges the deputies unlawfully beat the victim during the incident on February 11, 2009. The jury reported in open court that it was split 10-2 in favor of guilt.
The jury acquitted Aguiar and Ramirez of conspiring to violate the inmate’s civil rights.
United States District Judge Beverly Reid O’Connell scheduled a sentencing date for April 25. Federal prosecutors have yet to decide if they will retry Aguiar and Ramirez on the unresolved civil rights charge.
Aguiar was convicted of one count of falsification of records for submitting a report that falsely stated the inmate, Bret Phillips, who is now 44, was beaten after he had attempted to headbutt deputy Aguiar’s face and that Phillips violently kicked at Aguiar. Mr. Phillips did neither, according to testimony presented at the trial.
It was undisputed that Mr. Phillips was waist-chained with handcuffs binding his hands to a chain around his stomach throughout the entire beating.
During the trial, Chaplin Paulino Juarez, who was an eyewitness to the event, testified that he repeatedly raised concerns about what he had seen with senior LASD officials, but was rebuffed. Chaplin Juarez ultimately relayed his concerns to the ACLU. The information provided to the ACLU by the chaplain later came to the attention of the FBI. By this time the FBI had begun a wide-ranging investigation into civil rights abuses by the LASD in custodial settings, particularly excessive uses of force by deputies on the 3000 Floor of the Men’s Central Jail. Another witness, who was an inmate when Mr. Phillips was beaten, testified that he hid in the shower to avoid being seen by LASD personnel as he watched the deputies beat a defenseless and unmoving inmate.
Ramirez was found guilty of one count of falsification of records for submitting a report that falsely stated the victim had “viciously kicked his legs at deputies.”
During the incident – which allegedly involved an excessive and unreasonable use of force, according to the still-pending charge in the case – Aguiar and Ramirez punched and kicked the victim before using pepper spray on him and then hitting him repeatedly with a flashlight, according to the testimony at trial.
Soon after the incident, the deputies wrote the false reports, which formed the basis of a referral to the Los Angeles County District Attorney’s Office for potential criminal prosecution of Mr. Phillips.
“These defendants failed to report accurately the circumstances surrounding the beating of an inmate who was restrained with waist chains in an attempt to obstruct a subsequent investigation,” said United States Attorney Eileen M. Decker. “This failure to tell the truth and attempt to thwart oversight tarnishes the outstanding work of law enforcement officers everywhere.”
The case against Aguiar and Ramirez is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 17 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Topeka Woman Pleads Guilty to Sex Trafficking of 17-Year-OldRead the Press Release
TOPEKA, KAN. – A Topeka woman pleaded guilty Tuesday to the sex trafficking of a 17-year-old girl, U.S. Attorney Barry Grissom said.
Tiara Jade Newman, 22, Topeka, pleaded guilty to one count of conspiracy to commit sex trafficking. In her plea, she admitted that on March 21, 2015, she and her husband, co-defendant Reginald Newman, 29, Topeka, Kan., took a 17-year-old girl from Topeka to Junction City, Kan., for the purpose of prostitution.
The Newmans rented two rooms at a Value Place motel in Junction City. The rooms -- one room for performing commercial sex acts and the other where the three slept – were rented March 21 to March 25.
On March 21, Tiara Newman and the girl met a solder from Fort Riley at the Value Place motel. The soldier paid $250 to have sex with both of them.
On March 26, Tiara Newman took the girl along on an “out call” to the Fairfield Inn in Manhattan, Kan. Newman told the customer that the girl was new and she was showing her the business. The customer noticed that the girl was nervous and gave her a tip.
Reginald Newman kept all the money from the commercial sex acts. He pleaded guilty and is set for sentencing April 1.
Tiara Newman’s sentencing is set for May 2. Newman faces a penalty of not less than 15 years and a fine up to $250,000. Grissom thanked the following agencies for their work on the investigation: The Topeka Police Department, Homeland Security Investigations, the Riley County Police Department, the Junction City Police Department, the Kansas Department of Revenue, the Fort Riley Police Department, the Ottawa Police Department, the Shawnee County District Attorney’s Office, the Pottawatomie County Attorney, the Riley County Attorney and local human trafficking victim specialists.
Superseding Indictment Adds Charges Against Alleged Leader of Straw Purchasing SchemeRead the Press Release
PHILADELPHIA – A superseding indictment was filed today against Nakia Adams, 41, address unknown, adding four counts of possession of firearms by a convicted felon and four counts of aiding and abetting the making of a false statement in connection with the purchase of firearms from a federally licensed firearms dealer. Adams was charged by indictment, unsealed in December of 2015, with conspiracy, making false statements to a federal firearms licensee, possession of firearms by a convicted felon, and aiding and abetting.
According to the superseding indictment, Adams used several individuals as “straw purchasers” to obtain firearms from federally licensed firearms dealers. Adams, who is a convicted felon, is prohibited from purchasing firearms himself.
If convicted, the defendant faces a maximum possible statutory sentence of 135 years in prison, possible fines, a $2,000 special assessment, and three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives Reading Field Office and is being prosecuted by Assistant United States Attorney Eric Boden.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.