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16 March 2016
Colorado Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Colorado man convicted of two counts of Possession with Intent to Distribute a Controlled Substance was sentenced on March 7, 2016, by U.S. District Judge Roberto A. Lange.
Nathan Van Weeda, age 44, was sentenced to 51 months in custody, 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and forfeiture of $1,327 in cash, a stun gun, two cell phones, and an iPod Touch.
Weeda was indicted by a federal grand jury on October 15, 2014. He pled guilty on December 7, 2015.
The conviction arose from an October 1, 2014, incident when a South Dakota Highway Patrol Trooper stopped a vehicle for speeding. Weeda was the driver. When the trooper made contact with Weeda, he smelled the odor of burnt marijuana coming from within the vehicle and saw a marijuana pipe in plain view on the console area. The trooper advised Weeda that he would just issue him a warning. While Weeda was talking to the trooper, Weeda appeared to be overly nervous for someone being issued only a warning ticket. The trooper learned that Weeda did not have a driver’s license and told Weeda he would be cited for No Valid Driver License.
Weeda admitted the marijuana pipe in the vehicle belonged to him, but said it was legal in Colorado. He denied having any marijuana in the car. The trooper searched the vehicle and found various drug paraphernalia, which included seven baggies of methamphetamine totaling 6.8 ounces. When Weeda was arrested, the trooper located $1,327 in cash in Weeda’s front pocket. Before he left for jail, Weeda turned over a plastic bag that contained methamphetamine from the inside pocket of his jeans.
This case was investigated by the South Dakota Highway Patrol. Assistant U.S. Attorney Jay Miller prosecuted the case.
Weeda was immediately turned over to the custody of the U.S. Marshals Service.
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Clay County Man Sentenced on Gun Related ChargesRead the Press Release
A Clay County, Illinois, man was sentenced on March 15, 2016, to federal prison on gun related charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
Jeremy S. Johnson, 40, of Flora, IL, was sentenced to 87 months’ imprisonment and three years’ supervised release following his imprisonment. Johnson had previously pleaded guilty to one count in a federal indictment.
Count 1 charged that on December 2014, to January 12, 2015, in Clay County, Johnson, who having previously been convicted by a court of a felony, did knowingly possess, in and affecting interstate and foreign commerce, (1) a New England Firearms .17 caliber rifle; (2) a Glock .40 caliber pistol; and (3) a Hi-Point .40 caliber pistol.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, the Southeastern Illinois Drug Task Force, the Richland County Sheriff’s Office, and the Illinois State Police.
The case is being handled by Assistant United States Attorney George Norwood.
Chubbuck Man Sentenced for Wire Fraud and Theft of Government FundsRead the Press Release
POCATELLO - Travis John Attanasio, 54, of Chubbuck, Idaho, was sentenced today in United States District Court to 18 months in prison followed by three years of supervised release, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Attanasio to pay $259,563 in restitution. He pleaded guilty to the charges on December 1, 2015.
According to court proceedings, Attanasio admitted that between June 29, 2012, and October 30, 2014, he defrauded a disabled veteran and the federal government of $259,563.12. Attanasio volunteered to serve as the fiduciary for the veteran, and instead of conserving the victim’s funds and monthly benefits from the Veterans Affairs, he spent them at various retail and online vendors. The purchases included gold and silver coins, guns, and a trailer. In addition, Attanasio requested and received a portion of the victim’s conserved Social Security funds that he subsequently spent. During the time Attanasio received and spent the funds, he knew that the victim was a disabled veteran living in a state veteran’s home.
The case was jointly investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the Social Security Administration Office of Inspector General with help from the Pocatello Police Department. The case was being prosecuted by a Special Assistant U.S. Attorney as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office to prosecute social security fraud.
Chicago Man Sentenced to 15 Years in Federal Prison for Possessing Thousands of Photos and Videos of Child PornographyRead the Press Release
CHICAGO — A Chicago man who traded more than 5,000 photos and 600 videos of children being sexually exploited has been sentenced to 15 years in federal prison.
Using the email account [email protected], DEVIN JONES traded the images and videos with others via the Internet. Many of the photos and videos depicted real children, including toddlers, being sexually abused. The images included portrayals of sadistic and masochistic conduct and other depictions of violence.
Jones, 27, of Chicago, pleaded guilty last year to one count of possession of child pornography. U.S. District Judge Edmond E. Chang sentenced Jones on Monday to 15 years in prison.
“Defendant’s crime is a damaging, exploitative and violent one,” Assistant U.S. Attorney Yasmin N. Best argued in the government’s sentencing memorandum. “Each time defendant viewed and distributed an image of a sexually abused child, he exploited that child.”
Jones admitted in a plea agreement that on Feb. 20, 2013, he received files on his laptop containing images of child pornography, including what appeared to be prepubescent females exposing their private areas. Later that day, Jones replied to the sender with several other photographs and a video depicting children engaged in sexually explicit conduct.
In addition to trading the pornographic images, Jones admitted in the plea agreement that from 2007 to 2013, he engaged in inappropriate and often sexual contact with approximately six minor children between the ages of five and nine years old.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Cook County Sheriff Thomas J. Dart; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Chesapeake Man Sentenced for Armed Robberies Involving 14 VictimsRead the Press Release
NORFOLK, Va. – Raymond Wyche, 47, of Chesapeake, was sentenced today to the maximum possible penalty, 51 months in prison, for his role in eight armed robberies in Virginia Beach and Chesapeake.
Wyche pleaded guilty on Dec. 3, 2015. The date and location of the eight armed robberies are listed in the table below.
Date
Location
Feb. 11, 2014
7-Eleven, 6673 Indian River Road, Virginia Beach
March 19, 2014
Wilco-Hess, 6048 Indian River Road, Virginia Beach
March 25, 2014
7-Eleven, 201 S. Witchduck Road, Virginia Beach
April 25, 2014
Exxon, 841 S. Military Highway, Virginia Beach
June 6, 2014
BP, 4900 Princess Anne Road, Virginia Beach
June 25, 2014
Exxon, 1102 S. Military Highway, Chesapeake
June 29, 2014
7-Eleven, 5444 Virginia Beach Boulevard, Virginia Beach
July 16, 2014
Gulf, 6029 Indian River Road, Virginia Beach
According to court documents, on March 19, 2014, Wyche entered the Wilco-Hess gas station located on Indian River Road in Virginia Beach, brandishing what looked like a real firearm at two employees and demanded that they give him all the money in the cash registers. The employees complied and gave him the money in the cash registers which totaled approximately $376.
On June 25, 2014, Wyche entered an Exxon gas station in Chesapeake and brandished what looked like a real firearm at the employee and demanded that she give him all the money in the cash registers. The employee complied and gave the defendant the money in the cash registers which totaled approximately $275.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis.
This case was investigated by ATF’s Washington Field Division with assistance from the Chesapeake and Virginia Beach Police Departments. Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler prosecuted 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. 2:15-cr-97.
Career Offender from Valencia County Sentenced to 12 Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Ricky Gallegos, 41, of Jarales, N.M., was sentenced today in federal court in Albuquerque, N.M., to 12 years in prison followed by five years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Gallegos was arrested in Jan. 2015, on a criminal complaint charging him with possessing methamphetamine with intent to distribute on Jan. 20, 2015, in Bernalillo County, N.M. According to the criminal complaint, Gallegos fled from DEA agents after they observed him participate in a drug transaction. After a brief pursuit, the agents apprehended Gallegos who was in possession of 1.20 kilograms (2.6 pounds) of methamphetamine which he attempted to conceal by burying the drugs under his vehicle.
Gallegos was indicted on the same charge on Feb. 10, 2015. On April 16, 2015, Gallegos pled guilty to the indictment and admitted that on Jan. 20, 2015, he was in possession of 1.2 kilograms of methamphetamine. Gallegos acknowledged that while he was attempting to flee from the officers, he crashed his vehicle into a dirt pile. He further acknowledged that before the officers apprehended him, he buried the methamphetamine and his wallet in the wreckage.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Canadian Man Detained on Money Laundering Charges Stemming from Conspiracy to Smuggle Narwhal TusksRead the Press Release
Gregory R. Logan was held in custody today, pending his trial on money laundering charges related to a conspiracy to smuggle narwhal tusks from Canada, through Maine, to customers in the continental United States announced Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. Logan, 58, of St. John, New Brunswick, was extradited to the United States on March 11, 2016, to face trial in the U.S. District Court for the District of Maine in Bangor. Judge John A. Woodcock Jr. ruled today that Logan must remain in custody until his trial which is currently scheduled for May 3, 2016.
Logan, a retired member of the Royal Canadian Mounted Police, was indicted in November 2012 and charged with conspiracy, smuggling and money laundering. Logan was arrested in Canada, based on a request from the United States, in December 2013. Logan pleaded guilty to a related wildlife smuggling crime in Canada and the terms of his extradition limit the case against him in the United States to conspiracy to launder money and money laundering. To prove those counts at trial, the United States must show that Logan committed “specified unlawful activities” or “SUAs,” and that he “laundered” the illegal proceeds of those SUAs. As alleged in the indictment, Logan’s SUAs were smuggling narwhal tusks into the United States and then selling them to collectors. Logan then laundered the proceeds by having the money transferred out of the United States in order to further the smuggling conspiracy.
Also charged in the original indictment were Jay G. Conrad of Lakeland, Tennessee, and Andrew J. Zarauskas of Union, New Jersey. Zarauskas was convicted after a jury trial in Bangor and sentenced to 33 months in prison. Conrad has pleaded guilty and is awaiting sentencing.
According to the indictment, starting in 2000, Logan smuggled at least 250 narwhal tusks worth more than $2 million by transporting them across the border in false compartments in his vehicle. Conrad and Zarauskas, and others, bought the narwhal tusks from Logan, knowing the tusks had been illegally imported into the United States and sold or attempted to sell the tusks after their illegal importation. Logan retired from the Royal Canadian Mounted Police in 2003.
Narwhals are medium-sized toothed whales that are native to the Arctic. Given the threats to their population, narwhals are protected domestically by the Marine Mammal Protection Act and internationally by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) – an international treaty to which more than 170 countries, including the United States and Canada, are parties. It is illegal to import narwhals, or their parts, into the United States without a permit and any such importation must be declared to U.S. Customs and Border Protection and the U.S. Fish and Wildlife Service.
“As this case shows, wildlife trafficking can involve millions in illegal transactions, compounding the damage it does to the wealth and diversity of life on our planet,” said Assistant Attorney General Cruden. “By pursuing the criminal financial transactions that flow from trafficking, we are making a less attractive and more costly enterprise. We are extremely grateful to Canadian law enforcement authorities and all of our international partners who are side by side with us in the fight against such trade.”
“Modern wildlife crime investigations often track money as much as they track animals,” said Deputy Chief Ed Grace of Law Enforcement for the U.S. Fish and Wildlife Service. “This case shows the breadth of the illegal wildlife trade, normally associated with elephant ivory and rhino horn. Even species of the deep polar waters are not safe until we extinguish the market for protected animals and with it, the livelihood of criminal profiteers who benefit from their exploitation.”
“There is a global commitment to erase profits from trade in protected marine mammals,” said Assistant Administrator Eileen Sobeck of the National Oceanic and Atmospheric Administration Fisheries. “We're grateful for the cooperation that has led to justice being served and will continue to work with our international, federal and state law enforcement partners to ensure marine resources are protected now and into the future.”
The charges against Logan are merely allegations and he is presumed innocent unless and until proven guilty in a court of law. Money laundering is a felony punishable by a maximum sentence of 20 years in prison and fines of up to $500,000.
The case was investigated by special agents of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Fish & Wildlife Service, Office of Law Enforcement; and Wildlife Officers from Environment and Climate Change Canada. The case is being prosecuted by Senior Trial Attorney James B. Nelson and Trial Attorney Lauren D. Steele of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division. The Justice Department’s Office of International Affairs provided substantial assistance.
Camden County, New Jersey, Woman Admits Defrauding FEMA Relating to Major DisastersRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman today admitted her role in defrauding the Federal Emergency Management Agency following Super Storm Sandy, U.S. Attorney Paul J. Fishman announced.
Andrea Knoerzer 53, of Voorhees, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of disaster benefits fraud.
According to documents filed in this case and statements made in court:
When a natural disaster or federal emergency occurs in the United States, federal agencies, such as FEMA, provide relief and assistance to affected individuals and entities. FEMA provides financial assistance by, among other things, helping affected individuals repair their property.
Due to FEMA’s vast size and the typically large number of victims resulting from a disaster, FEMA frequently has been targeted in disaster fraud schemes by individuals or groups seeking money to which they were not entitled. These individuals accomplished their schemes by submitting fraudulent applications to FEMA for among other things, repairs and rental assistance.
In October 2012, the various counties of southern New Jersey, including Cape May County, suffered significant damage due to wind, rain, and flooding as a result of Hurricane Sandy. On Oct. 30, 2012, President Obama signed a Presidential Disaster Declaration for the State of New Jersey pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistant Act, enabling eligible individuals to seek financial assistance from FEMA when displaced by the storms.
Knoerzer admitted that she applied for FEMA benefits on Nov. 1, 2012. She claimed that her house in Ocean City was her primary residence, that the storm damaged it, and that it was unfit for occupancy. She also claimed that the storm damaged her 2001 Volvo station wagon. In reality, Knoerzer’s primary residence was in Voorhees and her Volvo was not in Ocean City. After FEMA awarded her temporary rental assistance, Knoerzer admitted that she submitted fraudulent documents to FEMA to secure continued disaster assistance through FEMA’s rental assistance program. Knoerzer received $13,373 from FEMA’s emergency rental assistance funds and $7,500 for transportation assistance to which she was not entitled.
The charge to which Knoerzer pleaded guilty carries a maximum potential penalty of 30 years in prison and a fine of $250,000. Sentencing is scheduled for June 23, 2016.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory Null, for investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden in the criminal case.
Defense counsel: A. Charles Peruto Esq., Philadelphia
Camden County, New Jersey, Man Charged with Defrauding City of Trenton and Others of $5.6 Million in Payroll Tax SchemeRead the Press Release
TRENTON, N.J. – The owner and president of a Camden County, New Jersey, payroll processing company was charged today with defrauding more than 50 clients – including the City of Trenton – out of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
John Scholtz, 67, of Winslow, New Jersey, was charged by complaint with wire fraud, fraud against a local government receiving federal funds, and money laundering. He is scheduled to appear in court later today before U.S. Magistrate Judge Douglas E. Arpert.
According to the complaint:
Scholtz owned and operated Innovative Payroll Services LLC (IPS), a company that provided payroll services to clients in New Jersey and elsewhere. His clients included municipalities, educational institutions, and various small- to medium-sized, privately held companies. Each payroll period, IPS provided its clients with a payroll summary setting forth the payroll taxes owed for that period. IPS clients then deposited the specified payroll taxes into an IPS bank account, where IPS held the funds until they were remitted to the taxing authorities.
Starting at least in June 2015, Scholtz allegedly withdrew funds from that IPS account and used them to pay for his own expenses, including as a deposit on a $1.8 million house in Florida, credit card payments, investments in other businesses, and payments for cars, boats and airplanes.
Over time, this ongoing misappropriation of funds caused many IPS clients to be in delinquent status with the IRS and state and local taxing authorities. As clients’ tax deposit funds came in, IPS used such funds to pay other clients’ taxes owed for prior pay periods, as well as penalties and interest. As a result of the scheme, more than 50 IPS clients sustained over $5.6 million in losses based on federal tax deposits that IPS failed to make, as well as associated penalties and interest. The City of Trenton was an IPS client from July 2009 to January 2016 and is one of the IPS clients whose tax deposit funds were misappropriated by Scholtz.
The count of wire fraud with which Scholtz is charged carries a maximum potential penalty of 20 years in prison; the count of fraud against a local government receiving federal funds and the count of money laundering each carry a maximum penalty of 10 years in prison. All three charges also carry a fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Mercer County Prosecutor’s Office, under the direction of Acting Prosecutor Angelo Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Lisa Mathewson Esq. of Philadelphia and Brian Reilly Esq., Assistant Federal Public Defender
Attorney General Loretta E. Lynch Statement on President Obama’s Nomination of Chief Judge Merrick Garland to the Supreme CourtRead the Press Release
Attorney General Loretta E. Lynch released the following statement regarding the President’s nomination of Chief Judge Merrick Garland to the Supreme Court:
“I commend President Obama on his nomination of Chief Judge Merrick Garland as an associate justice on the Supreme Court. In all of his prior work – from his time at the Department of Justice, where he prosecuted terrorists like Ted Kaczynski and Timothy McVeigh, to his 19-year service on the United States Court of Appeals for the District of Columbia Circuit – Judge Garland has earned a reputation for fairness and the respect of colleagues across the ideological spectrum. His impeccable credentials, steadfast fidelity to the law and firm devotion to the public interest make him an outstanding choice to sit on our nation's highest court, where I am certain he will serve with integrity and wisdom. I strongly support the President's choice and I urge Congress to approve Judge Garland’s nomination and fill this important position without delay.”
Athens-Area Real Estate Scam Artist Pleads GuiltyRead the Press Release
George F. Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced that Jackie Williams, age 42, from Bishop, Georgia, pleaded guilty to Wire Fraud today before the Honorable C. Ashley Royal, United States District Judge. As part of her guilty plea, Ms. Williams admitted to orchestrating a real estate fraud which victimized several people in the Athens, Georgia area. Ms. Williams now faces a sentence of up to 20 years in prison and a $250,000.00 fine.
“Ms. Williams stole hard-earned money from people who trusted her,” said Acting U.S. Attorney George F. Peterman, III. “Her scheme harmed victims across numerous counties, and I commend the tenacious efforts of our law enforcement partners to bring her to justice.”
In pleading guilty, Ms. Williams admitted to defrauding investors from 2012-2014; specifically, she induced people to invest in a purported real estate business, claiming that she bought distressed homes and sold them for a substantial profit. However, in numerous cases Ms. Williams never purchased the home that she told her victims she had used their money to buy, and she created falsified documents, such as fake purchase contracts and mortgage preapproval letters, to perpetuate her fraud. In fact, Ms. Williams used her investors’ money for her own personal gain, and/or to pay off portions of the money she had borrowed from previous investors. As part of her guilty plea, Ms. Williams admitted that she owes $563,097.01 in restitution to eight victims.
J. Britt Johnson, Special Agent in Charge FBI Atlanta Field Office, stated: "The FBI is pleased with the role it played in bringing this case forward for federal prosecution. Today's guilty plea will begin the process of holding the defendant responsible for her greed-based criminal conduct and will hopefully provide some solace and relief to her victims."
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Sheriff’s Offices for Barrow, Madison and Oconee County. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Armed Methamphetamine Trafficker Sentenced to 20 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. handed down a 20-year prison sentence today to Joseph Michael Osborne on drug conspiracy and firearms offenses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Osborne, 38, of Charlotte, to serve five years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to court proceedings and filed court documents, beginning in at least 2014 continuing through April 2015, Osborne was part of a drug conspiracy involving the distribution of methamphetamine in and around Mecklenburg County. According to court records, Osborne sold methamphetamine to an undercover officer. On April 2, 2015, law enforcement executed a search warrant at Osborne’s residence and seized 254 grams of 98.1% pure methamphetamine, five handguns, one of which was stolen, an AR-15 assault-style firearm, and $35,733 in cash. Osborne pleaded guilty in October 2015 to conspiracy to distribute methamphetamine and possession of firearms in furtherance of drug trafficking.
Osborne is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Rose thanked HSI and CMPD for their investigative efforts. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Arizona Man Sentenced to 70 Months for Federal Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Ricardo Salcido, 29, of Avondale, Ariz., was sentenced today in federal court in Las Cruces, N.M., to 70 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Salcido and his co-defendant Jonathan Benitez-Tirado, 22, of Phoenix, Ariz., were arrested on Oct. 9, 2014, on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute on Sept. 10, 2014, in Luna County, N.M. According to the criminal complaint, Homeland Security Investigations (HSI) agents initiated surveillance of a vehicle driven by Salcido after receiving information that he was helping Benitez-Tirado transport 3.5 pounds of methamphetamine to Deming, N.M. During a traffic stop, HSI agents discovered three bags of crystal methamphetamine weighing approximately 1.34 kilograms (three pounds) under the spare tire of the vehicle driven by Salcido.
On April 9, 2015, Salcido pleaded guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute. In entering the guilty plea, Salcido admitted that from Sept. 3 to 10, 2014, he conspired with Benitez-Tirado to transport approximately 1.34 kilograms of methamphetamine to a pre-arranged location and distribute the methamphetamine to another individual.
Benitez-Tirado also pled guilty to the same charges on April 9, 2015. At sentencing, Benitez-Tirado faces a maximum of 20 years in federal prison followed by not less than three years of supervised release. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Deming and Phoenix offices of HSI and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Alleged Heroin Dealer Charged with Distributing Fatal DoseRead the Press Release
SYRACUSE, NEW YORK – Anthony Vita, 36, of Syracuse, New York was arrested yesterday in Virginia Beach, Virginia on a complaint filed in United States District Court for the Northern District of New York (Syracuse) charging him with distributing a controlled substance (heroin) resulting in the death of another person, announced United States Attorney Richard S. Hartunian
The victim, a twenty-four year old resident of Camillus, New York, was five months pregnant when she died of a heroin and fentanyl overdose on November 7, 2015 at her home, as alleged in the complaint. The complaint further alleges that Investigators recovered a text message exchange between Vita and the victim on the night of her death that included arrangements for them to meet so he could sell her heroin and a hypodermic needle.
Following his court appearance in Norfolk, Virginia, Vita was ordered to remain in custody pending his appearance in federal court in Syracuse, New York sometime next week.
The charge filed against Anthony Vita carries a mandatory minimum sentence of 20 years in prison, and a maximum sentence of life imprisonment, a fine of up to $1,000,000.00, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by United States Drug Enforcement Administration (DEA) and the Town of Camillus (New York) Police Department and is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Alabama Man Sentenced to 55 Years for Aggravated Sexual Abuse of a ChildRead the Press Release
An Alabama man was sentenced today to 660 months in prison and a lifetime term of supervised release for his aggravated sexual abuse of a child under the age of 12, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama.
Rick Lee Evans, 43, a truck driver from Talladega, Alabama, was convicted by a federal jury on Dec. 11, 2015, of one count of aggravated sexual abuse of a child under 12.
According to the evidence introduced at trial, Evans, a former U.S. Army soldier, and his then-wife, a Department of Defense employee, were residing in Germany when they were asked to take temporary custody of a five-year-old child whose parents were deployed to Iraq with the U.S. Army. Trial evidence showed that from May 2007 to December 2008, while the child lived with Evans, he sexually abused the child on multiple occasions.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama prosecuted the case. U.S. Army Criminal Investigations Division and the FBI’s Birmingham, Alabama, Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
15 March 2016
Woonsocket Resident Sentenced to 15 Years in Prison on Drug & Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Miguel Colon, 55, of Woonsocket, was sentenced today to 15 years in federal prison for trafficking heroin and cocaine, and for carrying a firearm in furtherance of his drug trafficking activities. At the time of his arrest in April 2015, law enforcement seized three kilograms of cocaine and a loaded firearm found stashed inside a hidden compartment inside Colon’s vehicle and nearly 900 grams of heroin hidden inside a self-storage unit rented by Colon.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Colon to serve 5 years supervised release upon completion of his prison term. Colon pleaded guilty on October 28, 2015, to possession with the intent to distribute 100 grams or more of heroin, possession with the intent to distribute 500 grams or more of cocaine, being a felon in possession of a firearm and carrying a firearm during a drug trafficking crime.
Colon’s sentence is announced by United States Attorney Peter F. Neronha; Woonsocket Acting Police Chief Captain Michael R. Lemoine; Providence Police Chief Colonel Hugh T. Clements, Jr.; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
According to court documents and information presented to the court, Woonsocket and Providence Police Detectives, independent of one another, developed information that approximately once a month Miguel Colon traveled by vehicle to Texas and/or Florida to obtain large quantities of cocaine and/or heroin which he transported back to Rhode Island. In late April 2015, law enforcement developed information that Colon was on a drug run to Texas and Florida, and that he was scheduled to arrive in Rhode Island with the drugs on April 27.
In the early morning hours of April 27, local, state and federal law enforcement, posted along Route 95 in unmarked vehicles, spotted Colon’s vehicle and followed it until it came to a stop in the parking lot of a motel in North Attleboro, Mass. Law enforcement quickly surrounded the vehicle and removed Colon. A Rhode Island State Police K-9 indicated the presence of narcotics inside the vehicle. With the assistance of North Attleboro and Massachusetts State Police, a court authorized search of the vehicle resulted in the discovery of three kilos of cocaine, approximately one pound of marijuana and a loaded semi-automatic firearm stashed inside a sophisticated hydraulically-controlled hidden compartment. Also located in the vehicle were keys to self-storage units at a Woonsocket storage facility.
A Rhode Island court authorized search of two storage units rented by Colon at the Woonsocket storage facility resulted in the seizure of approximately 900 grams of heroin, and various items used in the packaging and distribution of drugs.
A court authorized search of Colon’s residence resulted in the seizure of drug ledgers which contained entries of amounts of money listed next to names, some of which were the names of individuals known to Woonsocket Police as drug dealers in the City of Woonsocket. Law enforcement also seized live ammunition, several small seedling sized marijuana plants and a State of Rhode Island marijuana caregiver card issued to Colon.
Colon has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
United States Resolves Civil Suit Against Westbury-Based Mortgage LenderRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, David A. Montoya, Inspector General for the Department of Housing and Urban Development, and Frederick W. Gibson, Acting Inspector General for the Federal Deposit Insurance Corporation today announced the settlement of claims against Continental Mortgage Bankers d/b/a Financial Equities and its president, Walter Stashin, in United States v. Rainy Day Holdings, LLC. et al., Civil Action No. CV-15-5576. The case is pending in federal court in Central Islip before United States District Judge Joseph F. Bianco.
Continental and Stashin participated in a federal program sponsored by the United States Department of Housing and Urban Development (HUD) that allowed the lenders to make mortgage loans that are insured by the Federal Housing Administration (FHA) in the event of default. The complaint alleged that for at least eight loans, Continental and Stashin funneled payments on borrowers’ loans through a purported charitable organization, the Rainy Day Foundation, in order to avoid defaults and delinquencies that could trigger governmental investigation. The funneled payments artificially suppressed Continental’s comparative delinquency and default rates, as compiled and computed by the FHA. In the settlement, Continental and Stashin admitted to making the payments and that the payments altered the company’s delinquency and default rates. Continental and Stashin agreed to pay three hundred thousand dollars ($300,000) in settlement of the United States’ claims.
“The resolution of this matter, including the defendants’ admissions to wrongdoing, both help to restore the integrity of the FHA mortgage insurance program as well as to serve as a warning to others who would abuse federal mortgage programs,” stated United States Attorney Capers. “We will continue to vigorously pursue those who engage in such activity. We thank the HUD Office of the Inspector General, HUD Office of Program Enforcement, and the FDIC Office of the Inspector General for their outstanding work and support in investigating this matter.”
HUD Inspector General Montoya stated, “This settlement brings to a close Continental Mortgage Bankers’ deceptive practices while a participant in the FHA Direct Endorsement Lender Program. Their attempts to profit at the expense of unsuspecting investors and the public posed a risk to our mortgage insurance pool. The HUD Office of Inspector General will continue to work with our partners at the U.S. Attorney’s Office to expose and pursue those who abuse HUD’s programs.”
FDIC Acting Inspector General Gibson said “The FDIC OIG is pleased to have supported the Department of Justice and the Department of Housing and Urban Development in bringing about today’s settlement. By leveraging our resources, we can broaden the government's efforts to pursue damages resulting from misconduct that has harmed the nation's financial institutions and its mortgage markets. The civil penalties imposed today should send a strong message to others that fraudulent practices like those perpetrated by Mr. Stashin and his firm will not be tolerated.”
The United States’ case in this matter is being litigated by Assistant United States Attorneys Edward Newman, John Vagelatos, and Robert Schumacher.
Two North Carolina Residents Sentenced to Prison for Tax FraudRead the Press Release
Two Charlotte, North Carolina, area residents have been sentenced to prison for their involvement in a fraudulent trust tax return scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Marlowe Williams, 68, was sentenced today to seven months in prison to be followed by seven months of home confinement as part of his two years of supervised release. Williams’ co-conspirator, Joan Clark, was sentenced on Feb. 18 to 20 months in prison to be followed by two years of supervised release. Williams and Clark were jointly ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $601,780. In November 2015, both Williams and Clark pleaded guilty to conspiracy to defraud the United States. Clark also pleaded guilty to an additional conspiracy charge connected to another scheme for which she was indicted in May 2015.
According to court documents and statements in court, in early 2011, Williams and Clark established a trust that purported to be for charitable purposes and then filed tax returns in the name of the trust for tax years 2008, 2009 and 2010. Each tax return fraudulently requested a tax refund of $300,000. Williams and Clark established at least two bank accounts in the name of the trust to receive the tax refunds and disburse the funds for personal use. Williams and Clark received $601,780 in tax refunds from the IRS as a result of filing these false tax returns.
Clark was also sentenced for her participation in a separate conspiracy in which she, along with co-defendant Daniel Heggins of Charlotte, operated Guarantor Manufactures Inc. (GMI), a business that purported to help individuals who were in debt. Clark and her co-conspirators in that scheme prepared and filed false tax returns on behalf of GMI’s clients claiming fraudulent tax refunds from the IRS in the amount of their clients’ debts. The intended loss of the conspiracy exceeded $4 million. Heggins pleaded guilty in November 2015 to conspiracy to defraud the United States and is awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rose commended special agents of IRS-Criminal Investigation and the FBI, who investigated the case and Assistant U.S. Attorney Mike Savage of the Western District of North Carolina and Trial Attorney Todd Kostyshak of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Troy Man Pleads Guilty to Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Michael C. Matzen, age 35, of Troy, New York, pled guilty yesterday to committing two bank robberies over the course of two days in East Greenbush and Latham.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division.
On March 19, 2015, Matzen entered a TD Bank branch in East Greenbush with his face partially covered. He presented a teller with a note demanding money and stating he had a gun. The defendant took $500 and then fled the bank.
The following day, Matzen walked into a Trustco Bank branch in Latham with his face partially covered. Again he presented a teller with a note demanding money and stating he had a gun. The defendant took $5,750 and then fled the bank.
Matzen faces up to 20 years in prison, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on July 26, 2016 by United States District Judge Gary L. Sharpe. Matzen also faces a fine of up to $250,000, and may be ordered to forfeit the money he took during the robberies, or pay restitution to his victims. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Federal Bureau of Investigation in coordination with the Colonie Police Department and East Greenbush Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.Statement from Head of the Civil Rights Division Vanita Gupta Regarding Ferguson, Missouri, City Council Vote to Approve Consent DecreeRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, released the following statement regarding the Ferguson, Missouri, City Council vote to approve the proposed consent decree with the Department of Justice:
“Tonight, the city of Ferguson, Missouri, took an important step towards guaranteeing all of its citizens the protections of our Constitution. We are pleased that they have approved the consent decree, a document designed to provide the framework needed to institute constitutional policing in Ferguson, and look forward to filing it in court in the coming days and beginning to work with them towards implementation.”
Spring Hill Man Pleads Guilty to Embezzlement SchemeRead the Press Release
Robert Majors, 58, of Spring Hill, Tenn., pleaded guilty on March 10, 2016, to two counts of wire fraud in connection with a scheme to embezzle more than $600,000 from his former employer, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a plea hearing before U.S. District Court Judge Aleta Trauger, Majors admitted that, while employed for more than seven years as Controller for Irving Materials, Inc. (“IMI”), he fraudulently embezzled more than $600,000 from IMI. Majors stated that he used electronic wire transfers from an IMI bank account into his personal bank account to embezzle the funds. Majors admitted that he concealed his fraud by recording the transfers as company purchases of fixed assets, such as concrete, in the company’s journal entries. Majors admitted to using the embezzled funds for a variety of personal reasons, including paying his mortgage and other loans, credit card bills, to make home repairs, and to pay for a cruise to Italy.
Majors faces up to 20 years in prison on each wire fraud count, a criminal fine of up to $250,000 for each count, and forfeiture of any criminal proceeds. He will also be ordered to pay restitution in the amount of $642,500. Majors will be sentenced by Judge Trauger on June 15, 2016. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Southern Tennessee Medical Center, LLC to Pay $2.48 Million to Settle False Claims Act and Overpayment AllegationsRead the Press Release
Southern Tennessee Medical Center, (STMC) located in Winchester, Tenn., has agreed to pay the United States $2,481,856.50 to settle False Claims Act and overpayment allegations, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. In December 2015 STMC submitted a voluntary self-disclosure to the U.S. Attorney’s Office and to the Office of Inspector General for the Department of Health and Human Services. An investigation by the company’s compliance program into STMC’s billing for in-patient geriatric psychiatric services prompted the self-disclosure.
Based upon an extensive investigation conducted by STMC, the United States alleged that STMC submitted certain claims and received payment for: (1) medically unnecessary days of in-patient geriatric psychiatric services and (2) in-patient geriatric psychiatric services for which a Physician Certification or Recertification was not obtained. The time period covered by the settlement agreement spans January 1, 2009 through December 31, 2014.
“When medical providers self-disclose potential violations directly to the U.S. Attorney’s Office they avoid the costs associated with protracted investigations and minimize the risks of costly fines and exclusion under the False Claims Act,” said Acting U.S. Attorney Jack Smith, for the administration of this settlement. “When potential violations were discovered by this provider’s compliance program, they responded appropriately, avoided harsher penalties and resolved the issue quickly.”
Under the settlement agreement, STMC will pay $1,628,098.50 to resolve the United States’ allegations that it submitted false claims to Medicare primarily during the period from January 2009 to December 2014 for medically unnecessary in-patient geriatric psychiatric services. STMC will also pay $853,758.00 to resolve overpayment allegations relating to the billing of in-patient geriatric psychiatric services for which a Physician Certification or Recertification was not obtained.
"We welcome self-disclosures from the health care community," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "Working together we can help safeguard taxpayer dollars and strengthen the financial position of the Medicare Trust Fund."
The United States encourages all healthcare providers to self-disclose any known violations that have resulted in the submission of improper claims to federal healthcare programs. This case was investigated by the United States’ Attorney’s Office for the Middle District of Tennessee and the U.S. Department of Health & Human Services Office of Inspector General. Assistant U.S. Attorney Jason Ehrlinspiel represented the United States.
Silver Spring Felon Admits Distributing Acetyl Fentanyl Resulting in Death and Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland –Jeffrey Sean Nazari, age 44, of Silver Spring, Maryland, pleaded guilty today to charges of distributing a controlled substance analogue, and being a felon in possession of a firearm. Nazari admitted that death resulted from the use of the acetyl fentanyl analogue that he distributed.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, Nazari knew and periodically sold heroin and other drugs to the victim for about five years. On January 4, 2015, Nazari and the victim communicated by text message and Nazari agreed to provide the victim with drugs. Nazari went to the victim’s residence and distributed acetyl fentanyl to the victim. The next day, the victim was found dead and the Office of the Chief Medical Examiner determined that the victim’s cause of death was acetyl fentanyl intoxication. The victim died as a result of ingesting the acetyl fentanyl analogue provided by Nazari.
On January 6, 2016, another drug customer went to Nazari’s residence. As the customer left the area, members of law enforcement stopped and searched the customer’s vehicle and recovered residue from the acetyl fentanyl analogue that Nazari had sold to the customer, as well as drug paraphernalia with acetyl fentanyl analogue and heroin residue.
On January 7, 2015, a search warrant was executed at Nazari’s residence. When law enforcement entered, Nazari was in the basement bathroom, attempting to flush drugs down the toilet. Law enforcement seized from the basement bathroom approximately 7.5 grams of acetyl fentanyl analogue, 10 grams of cocaine, and nine grams of testosterone. In addition, members of law enforcement seized two digital scales from the basement bedroom closet, and a loaded .380 caliber handgun from the basement bedroom nightstand. Nazari had previous felony convictions and was prohibited from possessing firearms or ammunition.
Nazari and the government have agreed that if the Court accepts the plea agreement Nazari will be sentenced to between 10 and 15 years in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for July 25, 2016 at 1:00 p.m. Nazari remains detained.
United States Attorney Rod J. Rosenstein praised the DEA, Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Nicolas A. Mitchell, who are prosecuting the case.
Serial Pharmacy Robber Sentenced to 32 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bryan McMahon, 31, of Burlington, was sentenced yesterday for Interference with Commerce by Robbery. Chief District Judge Christina Reiss sentenced McMahon to 32 months in prison, to be followed by three years of supervised release.
According to Court records, McMahon admitted to having committed three pharmacy robberies in Burlington. First, on December 18, 2014, McMahon robbed the Lakeside Pharmacy on Pearl Street in Burlington, Vermont. For this robbery, McMahon was dressed in ski goggles, a surgical mask, gloves, and a Santa Claus hat when he obtained Oxycontin and Methadone by stating “I’ve got something for you” while gesturing to his waist area.
On April 3, 2015, McMahon again robbed the Lakeside Pharmacy while dressed in aviator-style sunglasses, a surgical mask, and rubber gloves, obtaining Methadone by stating “I’m armed; I’ll shoot you; they won’t give it to me at the hospital.” Shoeprints near the scene of this robbery were later matched to a pair of white sneakers recovered from McMahon’s residence.
Finally, on April 27, 2015, McMahon entered the Rite Aid Pharmacy on North Avenue in Burlington, Vermont, wearing an orange vest, surgical mask, and rubber gloves. McMahon approached the pharmacy counter, demanded Methadone, and stated “quickly, I have something.” A short time after he exited the pharmacy, McMahon was confronted by Burlington Police Officers in Ethan Allen Park. A search of McMahon’s jacket revealed the two stolen bottles of Methadone. Burlington Police Officers also recovered an orange vest and surgical mask near the pharmacy. DNA testing by the Vermont Forensic Laboratory located McMahon’s DNA on both items.
United States Attorney Eric S. Miller commended the investigative efforts of the Burlington Police Department, the Vermont Forensic Laboratory, and the Drug Enforcement Administration. The United States was represented by Assistant U.S. Attorney Jonathan Ophardt. McMahon was represented by Assistant Federal Defender Steven L. Barth, Esq.
Scituate Man Admits to Interstate Travel for Illicit Sexual ContactRead the Press Release
PROVIDENCE, R.I. – Randy A. Collins, 44, of Scituate, RI, pleaded guilty in federal court in Providence to interstate travel for illicit sexual conduct, admitting to the court that on September 2, 2015, he left his place of employment in Franklin, Mass., during his workday, to meet with and have sexual contact with a person he believed to be a 14-year-old female. The person he had been communicating with online was actually a law enforcement officer assigned to the Rhode Island Internet Crimes Against Children (ICAC) task force. Collins was arrested by Rhode Island State Police and Homeland Security Investigations when he arrived at a designated location in Cranston, RI, where he thought he was going to meet with the 14-year-old girl.
Collins’ guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Appearing before U.S. District Court Chief Judge William E. Smith on Thursday, Collins admitted to the court that he answered an advertisement posted on Craigslist which he believed had been posted by a 14-year old female seeking to obtain an iPhone6. According to information presented to the court, during the exchange of emails, a Rhode Island State Police Detective posing as the young teenager repeatedly informed Collins that he was communicating with a 14-year-old. Collins acknowledged the information and responded that he was still interested in meeting with her. Collins turned the exchange to a sexual nature and proposed obtaining the iPhone in exchange for sex.
Collins was initially charged on September 4, 2015, by way of a federal criminal complaint and made an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan. Collins was indicted by a federal grand jury on September 30, 2015.
Randy Collins is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on May 26, 2016.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Roofing Contractor Sentenced for Pocketing Employee Payroll Tax WithholdingsRead the Press Release
WILMINGTON, Del. – Robert Smulski, age 58, of Wilmington, Delaware, was sentenced to twelve months and one day of imprisonment and two years of supervised release, and was ordered to pay $484,339.28 in restitution to the Internal Revenue Service for the willful failure to pay over employment taxes. Smulski previously pled guilty to the charges on September 30, 2015. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the sentence handed down today by the Honorable Gregory M. Sleet, Judge of the United States District Court for the District of Delaware.
Smulski was the owner and President of Smulski Enterprises, Ltd., a roofing company in Wilmington, Delaware. As the owner and President, Smulski was responsible for ensuring that the employees' payroll tax withholdings were paid over to the government. Between 2006 and 2012, Smulski Enterprises withheld payroll taxes from its employees' paychecks. But instead of paying that money over to the IRS, Smulski instead used it to pay himself and his personal creditors.
The unpaid employment taxes from 2006 through 2012 totaled $484,339.28.
This case was investigated by Special Agents of IRS-Criminal Investigation, and was prosecuted by Assistant United States Attorney Jennifer Hall.
Rochester Man Sentenced for Enticement of A 14 Year Old GirlRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that William Martin, Jr., of Rochester, NY, who was convicted of enticement, was sentenced to 10 years in prison and 20 years supervised release by Chief U.S. District Judge Frank P. Geraci.Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that in February 2015, the Rochester Police Department was alerted to text message communications between the defendant and a 14 year old girl as well as the exchange of provocative photographs on Facebook. The minor victim later told police that the two exchanged naked photos and one video.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Craig Hanesworth, and the Gates Police Department, under the direction of Chief James VanBrederode. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.Retired High School Teacher Pleads Guilty to Attempting to Engage in Illicit Sex with a MinorRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a retired high school teacher in Sedalia, Mo., pleaded guilty in federal court today to arranging to meet a woman and her 14-year-old daughter (actually an undercover law enforcement officer) for illicit sexual activity.
Paul Robert Cannon, 71, of Sedalia, Mo., pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to attempting to induce a minor to engage in illicit sexual activity.
According to court documents, Cannon posted an advertisement on Craigslist on Jan. 18, 2016, entitled “Grandpa looking for a couple with kids.” The posting read, “Grandpa looking for a couple that would like to include their kids in sexual fun. White man, very discreet, very safe, retired teacher, and well endowed. Age and race are not an issue.”
On Jan. 21, 2016, a detective with the Boone County, Mo., Sheriff’s Department responded to the Craigslist advertisement, portraying himself as a single mother with a 14-year-old daughter. Over the next six days, the detective exchanged numerous e-mails with Cannon. In these exchanges, Cannon described various sex acts he intended to perform with the minor daughter. He also offered to have sex with both the mother and minor daughter together and said he was looking for “a continuing relationship.” The detective also exchanged numerous texts with Cannon in which Cannon described various sex acts he intended to perform with the minor daughter.
The undercover detective arranged to meet Cannon at a Columbia, Mo., restaurant this afternoon. Cannon offered to buy lunch for the mother and daughter before going to their residence for a sexual rendezvous. When Cannon arrived at the restaurant, he was redirected to another nearby restaurant, where he was arrested.
Under federal statutes, Cannon is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI and the Boone County Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Placer County Woman Sentenced to 14 Years in Prison for Multimillion Dollar Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. - United States District Judge John A. Mendez sentenced Vera Kuzmenko, 46, of Loomis, today to 14 years in prison for multiple counts of mail and wire fraud, witness tampering, and money laundering associated with her involvement in a mortgage fraud scheme that cost financial institutions over $16 million, United States Attorney Benjamin B. Wagner announced.
On December 4, 2015, after a 16-day trial, a federal jury returned guilty verdicts for Kuzmenko and Rachel Siders, 40, of Roseville. Siders is scheduled to be sentenced on June 21, 2016.
According to evidence presented at trial, from late 2006 through early 2008, Kuzmenko and Siders engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. They were responsible for securing more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. Records introduced at trial showed Vera Kuzmenko received millions of dollars.
Kuzmenko, who had been a licensed real estate agent for part of the scheme, created fraudulent loan applications on behalf of the straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. The loan paperwork also hid from lenders millions of dollars of payments that went to the defendants. She also served as a straw-buyer herself. With respect to the witness tampering count, the evidence showed that after Kuzmenko learned the FBI was investigating her, she told various witnesses to lie to the FBI and blame a dead woman for the fraud.
U.S. Attorney Wagner stated: “There were many causes for the mortgage crisis that decimated the national economy and hit the Sacramento region so especially hard. One factor that did not help, and that contributed to the explosion of foreclosures in our neighborhoods was the proliferation of mortgage fraud schemes like the one operated by Vera Kuzmenko. My office will continue to seek to hold accountable those who profited from such schemes, and the sentence imposed today is a significant reminder that there is a heavy price to pay for those who seek to profit through fraud.”
“Vera Kuzmenko’s scheme cost financial institutions over $16 million,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Fraud in the mortgage industry has played a major role in almost crippling this nation’s economy. While today’s sentencing cannot reverse the damage caused by these defendants, IRS-CI is committed to investigate individuals who engage in deceptive and fraudulent behavior, fueled by greed.”
“As the mastermind of a scheme to intentionally defraud members of her own community, Vera Kuzmenko, coordinated a network of individuals who perpetrated a multimillion-dollar fraud scheme,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation Sacramento field office. “Her sentence cannot undo the damage done to her community’s trust and financial well-being, but it will ensure justice for victims and serve as a warning to other would-be fraudsters.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Lee S. Bickley and Michael D. Anderson and Special U.S. Attorney David J. Ward are prosecuting the case.
On October 20, 2015, Judge Mendez sentenced co-defendants Peter Kuzmenko, 37, of West Sacramento, to 19 years in prison; Aaron New, 41, of Sacramento, to 11 years and three months in prison; Nadia Kuzmenko, 36, formerly of Loomis, to eight years in prison; and Edward Shevtsov, 52, of North Highlands, to eight years in prison. They were found guilty on February 13, 2015, after a 21-day trial, of multiple counts of mail and wire fraud associated with the mortgage fraud scheme. In addition, Peter Kuzmenko, Edward Shevtsov, and Aaron New were found guilty of money laundering associated with the scheme, and Nadia Kuzmenko was found guilty of witness tampering.
Petersburg Man Sentenced for Armed Robbery and Gun CrimesRead the Press Release
RICHMOND, Va. – Deontae Jamar Hargrave, 23, of Petersburg, was sentenced today to 237 months in prison for two separate offenses, including robbery affecting interstate commerce, and using, possessing, carrying, brandishing and discharging a firearm in furtherance of a crime of violence.
Hargrave was indicted by a federal grand jury on March 4, 2015. According to court documents, on Nov. 3, 2014, Hargrave robbed a 7-Eleven convenience store in Petersburg and brandished a .40 caliber firearm. Hargrave threatened the cashier with the firearm and demanded the funds in the cash register. When they cashier paused, Hargrave raised the firearm next to the cashier and fired a round into a display case behind the clerk. Hargrave obtained approximately $40 and three packs of cigarettes from the robbery. Subsequently, Hargrave sent a threatening letter which was the subject of testimony at the sentencing hearing.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Office; and John I. Dixon III, Chief of Petersburg Bureau of Police, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-37.
Pennsylvania Man Charged with Hacking Apple and Google E-Mail Accounts Belonging to More Than 100 People, Mostly CelebritiesRead the Press Release
LOS ANGELES – A Pennsylvania man was charged today with felony computer hacking related to a phishing scheme that gave him illegal access to over 100 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Ryan Collins, 36, of Lancaster, Pennsylvania, has signed a plea agreement and agreed to plead guilty to a felony violation of the Computer Fraud and Abuse Act. In the plea agreement also filed today, Collins agreed to plead guilty to one count of unauthorized access to a protected computer to obtain information.
Although Collins has been charged in Los Angeles, the parties have agreed to transfer the case to Harrisburg in the Middle District of Pennsylvania, near Collins’ home, for the entry of his guilty plea and sentencing. Once he enters the guilty plea, Collins will face a statutory maximum sentence of five years in federal prison. The parties have agreed to recommend a prison term of 18 months, but that recommendation will not be binding on the sentencing judge.
“Today, people store important private information in their online accounts and in their digital devices,” said United States Attorney Eileen M. Decker. “Lawless unauthorized access to such private information is a criminal offense. My Office remains committed to protecting sensitive and personal information from the malicious actions of sophisticated hackers and cyber criminals.”
According to factual basis in the plea agreement, from November 2012 until the beginning of September 2014, Collins engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from Apple or Google and asked victims to provider their usernames and passwords. When the victims responded, Collins then had access to the victims’ e-mail accounts. After illegally accessing the e-mail accounts, Collins obtained personal information including nude photographs and videos, according to his plea agreement. In some instances, Collins would use a software program to download the entire contents of the victims’ Apple iCloud backups.
The charge against Collins stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence linking Collins to the actual leaks or that Collins shared or uploaded the information he obtained.
Many of Collins’ victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Collins accessed at least 50 iCloud accounts and 72 Gmail accounts, most of which belonged to female celebrities.
“By illegally accessing intimate details of his victims' personal lives, Mr. Collins violated their privacy and left many to contend with lasting emotional distress, embarrassment and feelings of insecurity,” said David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We continue to see both celebrities and victims from all walks of life suffer the consequences of this crime and strongly encourage users of Internet-connected devices to strengthen passwords and to be skeptical when replying to emails asking for personal information.”
The case against Collins is the product of an ongoing investigation by the Federal Bureau of Investigation.
Owner of Costa Rican Call Center Sentenced to Nine Years in Prison for Defrauding Elderly through Sweepstakes ScamRead the Press Release
A dual U.S.-Costa Rican citizen was sentenced yesterday to 108 months in prison for his role in a $1.88 million sweepstakes fraud scheme that victimized hundreds of elderly U.S. residents, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Geoffrey Alexander Ramer, 36, formerly of Falls Church, Virginia, was sentenced today by U.S. District Judge Max O. Cogburn Jr. of the Western District of North Carolina. Ramer was also ordered to pay $2,871,430.35 in restitution and to forfeit $1,886,018.
On Sept. 15, 2014, Ramer pleaded guilty to one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering and four counts of international money laundering in connection with the telemarketing fraud scheme.
According to the plea documents, from 2008 through December 2013, Ramer owned and operated call centers located in Costa Rica. Ramer admitted that he and his co-conspirators called U.S. residents, many of whom were elderly, and falsely informed the victims that they had won a substantial cash prize in a sweepstakes, and that, in order to receive their prize money, the victims were to send money to Costa Rica for a purported refundable insurance fee. After receiving the victims’ money, the co-conspirators would contact the victims to falsely inform them that the prize amount had increased and the victims needed to send additional money for more purported fees, Ramer admitted. According to the plea, Ramer and his co-conspirators would continue these attempts to collect additional money until the victims went broke or discovered the fraud. Ramer admitted that he and his co-conspirators utilized VoIP phones that displayed a Washington, D.C., area code in order to conceal that they were calling from Costa Rica, and sometimes falsely claim to be from a U.S. federal agency to give victims a false sense of security. The co-conspirators kept the victims’ funds, never provided any winnings to the victims and used the funds to continue the call centers’ operation and for the co-conspirators’ personal benefit, Ramer admitted.
Plea documents state that, along with his co-conspirators, Ramer was responsible for causing more than $1.88 million in losses to hundreds of elderly Americans.
The U.S. Postal Inspection Service, the Internal Revenue Service-Criminal Investigation, the FBI, the Federal Trade Commission and the Department of Homeland Security are investigating the case. Senior Litigation Counsel Patrick M. Donley and Trial Attorney William H. Bowne of the Criminal Division’s Fraud Section are prosecuting the case.
North Miami Beach Resident Sentenced to 7 Years in Prison for Stolen Identity Tax and Unemployment Insurance Claims Fraud SchemesRead the Press Release
A North Miami Beach resident was sentenced to 84 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $585,070, for his participation in stolen identity tax and unemployment insurance claims fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), William Hernandez, Chief, North Miami Beach Police Department (NMBPD), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Elton Lloyd Bandoo, a/k/a “Ebdaiceman”, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on February 6, 2015, law enforcement executed a federal search warrant at Bandoo's residence. While executing the search warrant, law enforcement seized several computers and external media devices that contained the personal identification information (PII) of approximately 27,000 victims. In addition, law enforcement discovered papers, including billing forms from a medical facility, handwritten lists of names, dates of birth, and Social Security numbers, and printed lists of names, dates of birth, and Social Security numbers, of approximately 1,400 individuals. Bandoo's fingerprints were discovered on the papers containing the victims' PII.
The IRS confirmed that the PII on which Bandoo's fingerprints were discovered was used to file fraudulent tax returns, many in the names of deceased individuals, seeking $1,073,112 in fraudulent refunds. Bandoo’s IP address was used to request $11,804 in unauthorized payments on nine fraudulent unemployment insurance claims.
In total, the amount of intended loss resulting from Bandoo’s fraudulent schemes is $14,826,443.
Mr. Ferrer commended the investigative efforts of IRS-CI, NMBPD, DOL-OIG, ICE-HSI, and ATF. This case was prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Methamphetamine Trafficker Sentenced to 15 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. -- On March 14, 2016, Tito Charles, 30, of Greeneville, Tenn., was sentenced to serve 15 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Charles will be supervised for 10 years by U.S. Probation.
Charles pleaded guilty to a federal indictment charging him with conspiring to distribute methamphetamine. He was obtaining high purity methamphetamine from sources of supply near Atlanta, Ga., and Chattanooga, Tenn., and distributing the drug in east Tennessee. In February 2015, Greene County deputies arrested Charles in a parking lot in Greeneville, Tenn., with approximately one pound of methamphetamine and $31,391 in cash. He was released on bond later that same day. In March 2015, a multi-agency team investigating the drug trafficking network that Charles was a part of and arrested him again as he was transporting an additional pound of methamphetamine into Greene County via Highway 172.
This investigation was a collaborative effort of several law enforcement agencies including the Greene County Sheriff’s Office, Hawkins County Sheriff’s Office, Third Judicial Drug Task Force, Greeneville Police Department, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Homeland Security Investigations, and Drug Enforcement Administration. The Third Judicial District Attorney’s Office also provided assistance in the prosecution of the case. Assistant U.S. Attorney J. Christian Lampe represented the United States.
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Man Who Murdered Wife Sentenced Federally for Unlawfully Possessing Multiple FirearmsRead the Press Release
Jackson, TN – A Jackson man who fatally shot his wife has been sentenced federally for unlawful possession of multiple firearms. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Michael Allen Smith Sr., 44, of Jackson, Tennessee, unlawfully possessed multiple firearms, including a Ruger .40 caliber pistol, which he used to fatally shoot his wife.
On August 9, 2013, Jackson Police Department (JPD) officers were dispatched on a shots-fired call in the Hollyridge Cove area of Jackson. Officers arrived on the scene and made contact with two children. One of the children reportedly advised that their father, Smith, had killed their mother, Christy Smith. Upon entering the residence, officers discovered the body of Christy Smith lying unresponsive in the hallway with a large pool of blood coming from her head. The Assistant County Coroner arrived on the scene and pronounced the victim dead. A single gunshot wound to the face in her nose was determined to be the cause of death. The victim also had wounds to the forehead consistent with blunt force trauma.
Subsequent to the murder, JPD investigators spoke with one of the Smiths’ children, who advised that their parents had been arguing for the past couple of days. The child said they overheard Smith threaten their mother earlier that day, stating that Christy Smith was not going to leave him. The defendant eventually left the residence to go pick up his other child. Once Smith returned, he attempted to get Christy Smith to leave with him, but she refused. Smith then instructed the children to leave the residence and deliver peaches to their neighbors. Shortly after leaving, one of the children received a phone call from a relative instructing them to check on their mother. When they
returned, Smith was no longer there, but their mother, Christy Smith, was lying on the floor unresponsive and in a pool of blood.
Law enforcement was able to apprehend Smith in the early morning hours of August 10, 2013. A search warrant was executed on the Smiths’ residence, which yielded multiple firearms that belonged to the defendant.
In August 2015, Smith pled guilty to multiple counts of felony firearm possession.
On Monday, March 14, 2016, Smith was sentenced by Chief U.S. District Judge J. Daniel Breen to 120 months, the statutory maximum allowed under federal law, for unlawfully possessing multiple firearms.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Jackson Police Department.
Assistant U.S. Attorney Matthew Wilson prosecuted this case on the government’s behalf.
Louisville Attorney Guilty of Wire Fraud and Money LaunderingRead the Press Release
Ordered to pay $1,602,327.14 to multiple victims including $268,459.06 to St. Mary’s Church and $245,993.67 to WHAS Crusade for Children
LOUISVILLE, Ky. – A Louisville attorney pleaded guilty in United States District Court yesterday, before Magistrate Judge Dave Whalin, to criminal counts of wire fraud and money laundering, stemming from his activities as the executor of seven estates in Louisville, announced United States Attorney John E. Kuhn, Jr.
“Attorneys are professionally and ethically bound to serve their clients’ best interests,” stated U.S. Attorney John Kuhn. “We simply cannot tolerate attorneys or any other fiduciaries using their positions of trust to steal from those they are obligated to protect. This prosecution serves the principle of justice and vindicates the breach of a trust that is an absolutely essential component of a multitude of professional relationships.”
David Cary Ford, 53, admitted that from November 6, 2008, through February 11, 2015, while a practicing attorney, he served as executor of the estates of Saundra A. Benzinger, Kenneth L. Keith, William T. Lawson, Mary Helen Pfeffer, Elinor E. Starr, Mary Augustine Starr, and Richard Steinmetz. Ford took funds from those estates totaling approximately $1,666,671.18, and used those estates’ funds for personal expenses and enjoyment, including significant gambling activity, instead of using the funds as designated by the decedents of those estates, or for the benefit of the beneficiaries of those estates, in the following amounts:
$ 737,981.00 Estate of Saundra Benzinger
$ 492,862.18 Estate of Elinor Starr
$ 290,315.00 Estate of Mary Starr
$ 62,343.00 Estate of Kenneth Keith
$ 26,300.00 Estate of Richard Steinmetz
$ 17,025.00 Estate of Mary Helen Pfeffer
$ 8,200.00 Estate of William Lawson
Specifically, as executor of these estates, Ford was authorized at various banks to pay estate expenses. However, Ford also used these estate accounts, without authorization, to withdraw cash and to pay his personal expenses with estate client funds. In his capacity as executor, Ford processed these withdrawals of estate funds and mischaracterized them as estate expenses.
Further, Ford admitted that from July 21, 2014, to July 28, 2014, he laundered fraud proceeds by using funds from one estate to conceal the depletion of the funds from another estate. Specifically, to promote his unlawful activity and to conceal or disguise the source and nature of proceeds from that unlawful activity, on July 24, 2014, after depleting the funds of the Estate of Kenneth L. Keith, Ford took $35,960.18 from the estate of Elinor E. Starr, in a cashier’s check, deposited those funds into his escrow account, and then on July 28, 2014, used $25,000 of those funds to pay a beneficiary of the Estate of Kenneth L. Keith.
As part of the plea agreement, Ford agreed to make restitution to the beneficiaries of the estates ($1,554,555.36 to various charities, nonprofits and religious organizations, and $47,771.78 to individuals) in the following amounts:
Victim Amount
St. Mary’s Church
$ 268,459.06
Passionist Community
$ 245,993.67
Passionist Nuns
$ 245,993.67
WHAS Crusade For Children
$ 245,993.67
National Shrine of St. Elizabeth Ann Seton
$ 134,229.53
Franciscan Sisters of Allegany, Inc.
$ 134,229.53
Archdiocese of Louisville
$ 89,486.35
St. Francis of Assisi Church
$ 44,743.18
Catholic Foreign Mission Society of America, Inc.
$ 44,743.18
Sisters of Charity of St. Joseph’s
$ 44,743.18
Nazareth Literary and Benevolent Institution, Inc.
$ 44,743.18
L.S. (an individual)
$ 24,300.50
C.P. (an individual)
$ 17,025.00
Little Sisters of the Poor
$ 5,598.59
L.A. (an individual)
$ 3,099.48
C.B. (an individual)
$ 3,099.48
Holy Family Catholic Church
$ 2,799.30
Our Mother of Sorrows Catholic Church
$ 2,799.30
R.S. (an individual)
$ 82.44
V. S. (an individual)
$ 82.44
P.S. (an individual)
$ 82.44
Total
$1,602,327.14
Ford faces a maximum penalty of forty years’ imprisonment, $750,000 in fines, and supervised release for a period of three years. Sentencing is scheduled on June 6, 2016, in Louisville.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and it results from an investigation conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
Lincoln Man Sentenced for Methamphetamine Conspiracy and Violation of Supervised ReleaseRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 15, 2016, David Lane Erickson, 29, of Lincoln, was sentenced to a total of 123 months in prison for conspiracy to distribute 50 grams or more of a mixture or substance containing methamphetamine; commission of a felony while on pretrial release; and violation of his supervised release terms. Erickson was sentenced to five years (60 months) on the drug charge and a consecutive three months for commission of that offense while on supervised release. In addition, in a separate case, he was sentenced to an additional five years (60 months) consecutive to the other sentences for violating the terms of his supervised release imposed as part of a 2007 federal sentence for conspiracy to distribute methamphetamine and use of a firearm during a drug-trafficking offense. Erickson will serve five years on supervised release following the new prison term. He was also ordered to forfeit $10,500.00 in cash.
Information provided to law enforcement indicated Erickson was involved in the distribution of at least 50 grams, (approximately 1 ¾ ounces), of methamphetamine in the Lincoln area between June 1, 2015, and October 21, 2015. On October 1, 2015, Lincoln Police officers attempted to stop a vehicle driven by Erickson. After a vehicle pursuit, Erickson abandoned the car which was later searched, and officers found four bags containing approximately 43 grams of methamphetamine and $9,000.00 in cash. On October 13, 2015, he was arrested in Omaha by the Metro Fugitive Task Force, and an additional $1,500.00 in cash was found in his possession.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the Metro Fugitive Task Force.
Lawyer with Former Jersey City, New Jersey, Practice Admits Structuring Cash DepositsRead the Press Release
NEWARK, N.J. – A lawyer who previously practiced in Jersey City, New Jersey, today admitted structuring approximately $200,000 in cash to avoid reporting requirements, U.S. Attorney Paul J. Fishman announced.
Magdy Fouad Anise, a/k/a “Michael Anise,” 52, of Aberdeen, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to Count Two of an indictment charging him with structuring.
According to the documents filed in this case and statements made in court:
Anise was an attorney at Anise & Anise, Attorneys at Law, located in Jersey City. From 2009 through 2011, Anise received cash kickbacks from doctors and others in exchange for personal-injury client referrals. In lieu of cash, Anise asked a doctor who gave him kickbacks to pay him with gold bars, give money to Anise’s church and pay Anise’s mortgage.
Anise admitted that from 2009 through 2012, he made cash deposits into five different bank accounts that he controlled in amounts less than $10,000, the amount that would have triggered the filing of a currency transaction report (CTR) with the IRS.
CTRs require disclosure of the identity of the individual who conducted the transaction and the individual or organization for whom the transaction was completed. Many individuals involved in illegal activities are aware of these reporting requirements and take active steps to cause financial institutions not to file CTRs in order to avoid detection of the movement of large amounts of U.S. currency. These steps are referred to as “structuring” and involve making multiple cash deposits or withdrawals in amounts of $10,000 or less on the same day or consecutive days in order to avoid CTR filings.
The charge of structuring cash transactions to avoid reporting requirements carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 22, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Roy Greenman Esq., Union
Lanham Man Convicted for Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Junaidu Saljan Savage, a/k/a James Kamara, age 29, of Lanham, Maryland, for conspiring to commit bank fraud and for aggravated identity theft arising from a scheme to defraud a bank by using account holders’ personal information to take over their accounts.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department..
According to testimony at his six day trial, from January 1, 2012 through April 2012, Savage conspired with Jayad Zainab Ester Conteh, Paul Anthony Williams and others to defraud a bank. Conteh, a bank teller, looked up bank account holder information on the computer system without authorization and disclosed the account holders’ personal identifying information to Savage and other co-conspirators. Using that information, Savage would call the bank pretending to be the account holder, change certain account information and order checks on the compromised account to be delivered by overnight mail. Savage and other co-conspirators would obtain those checks, including by intercepting the checks upon delivery at the actual account holders’ addresses. Wilson cashed the checks at bank branches in Maryland.
Trial evidence showed that as a result of the conspiracy at least seven bank account holders’ accounts were improperly accessed, with intended losses of more than $120,000.
Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, was convicted after trial and sentenced to 64 months in prison for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.
According to court documents and trial testimony, in July 2014, after Conteh had reported to prison to begin serving her sentence, Savage went to visit her relatives. An audio and video recording of the meeting reveal that Savage told Conteh’s relatives that he was involved in her criminal conduct and would pay the restitution ordered by the Court. In late August 2014, Savage’s girlfriend provided $6,000 in cash to a relative of Conteh as partial payment of Conteh’s restitution.
Co-conspirator Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.
Savage faces a maximum sentence of 30 years in prison and a fine of $1 million for the bank fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell III scheduled Savage’s sentencing for June 24, 2016, at 9:30 a.m.
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 praised the U.S. Postal Inspection Service, Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas P. Windom and Ray D. McKenzie, who are prosecuting the case.
Keshena Teacher Indicted for Theft from Menominee Indian High SchoolRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 15, 2016, a federal grand jury returned a single-count indictment against Leona M. Dixon (age: 32) of Keshena, Wisconsin, charging her with one count of theft of property in violation of Title 18 U.S.C. Sections 661 and 1153. If convicted, the defendant faces a sentence of up to 5 years imprisonment, a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, Dixon intentionally stole 23 iPad tablets and 3 laptops from Menominee Indian High School. These items were valued at approximately $8,600.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Investigation leads to federal narcotics and firearms indictmentRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced the indictment of 11 Lafayette-area residents on charges for a variety of narcotics and firearms offenses.
Those named in the 23-count indictment unsealed February 22, 2016 are:
Carroll Griffin, 32, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, five counts of unlawful use of a communication facility, one count of maintaining a premises for the purpose of distribution of controlled substances, and one count of possession of a firearm in the furtherance of a drug trafficking crime.
Joshua Griffin, 33, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, three counts of distribution of cocaine base, four counts of unlawful use of a communication facility, and one count of maintaining a premises for the purpose of distribution of controlled substances.
Alvontre Griffin, 19, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, four counts of unlawful use of a communication facility, one count of possession of a stolen firearm, and one count of maintaining a premises for the purpose of distribution of controlled substances.
Jeremy Tyler, 29, of Rayne, La., is charged with one count of conspiracy to distribute cocaine base, one count of possession with intent to distribute cocaine base, and one count of unlawful use of a communication facility.
Chester Tyler, 20, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of possession with intent to distribute cocaine base, and one count of unlawful use of a communication facility.
Josh Tyler, 33, of Scott, La., is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, and one count of unlawful use of a communication facility.
Nathan George, 34, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, and one count of unlawful use of a communication facility.
Ronnie Thomas, 35, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of unlawful use of a communication facility, and one count of distribution of cocaine base.
Ashton Ventroy, 26, of Lafayette, is charged with one count of conspiracy to distribute cocaine base, one count of conspiracy to distribute methamphetamine, and one count of unlawful use of a communication facility.
London West, 25, of Duson, La., is charged with one count of conspiracy to distribute cocaine base, one count of unlawful use of a communication facility, one count of possession of a firearm by a convicted felon, and one count of possession of a stolen firearm.
Johnny Huntley, 21, of Duson, is charge with one count of possession of a firearm by a convicted felon and one count of possession of a stolen firearm.
The defendants face various possible penalties depending on the drug quantity involved, their role in the charged offense, and their criminal histories.
The charges resulted from a long-term investigation coordinated by the FBI’s Lafayette Resident Agency Safe Streets Gang Task Force. The FBI, ATF, Lafayette Metro Narcotics Unit, Lafayette Police Department, Lafayette Sheriff’s Office, St. Landry Sheriff’s Office, St. Mary Sheriff’s Office, Iberia Parish Sheriff’s Office, and the Louisiana National Guard Counter Drug Unit participated in the investigation. Assistant U.S. Attorneys Robert C. Abendroth and Kelly Uebinger are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Independence Man Sentenced to 27 Years for Drug-Trafficking Conspiracy Resulting in Two DeathsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for his role in a drug-trafficking conspiracy that resulted in the shooting deaths of three persons during a home invasion in Independence and the shooting of a 12-year-old boy in the home.
Kevin M. Finley, also known as “Tubbs,” 36, of Independence, was sentenced by U.S. District Judge Beth Phillips to 27 years in federal prison without parole.
On Sept. 10, 2015, Finley pleaded guilty to participating in a conspiracy to distribute methamphetamine and to two counts of using a firearm during and in relation to the drug-trafficking conspiracy, causing the deaths of two persons.
Finley admitted that he and several co-defendants planned to steal as much as three pounds of methamphetamine by robbing the residence of Martin “Tomas” Dominguez-Gregorio in Independence. During the robbery attempt, in the early morning hours of Nov. 16, 2012, Martin “Tomas” Dominguez-Gregorio, his girlfriend, Maria Guadalupe Hernandez-Corona, and her son, Antonio Hernandez, were killed; Miguel Hernandez, Maria Hernandez’s then-12–year-old son, was wounded.
Finley met with co-defendants Raul Soto, also known as “Choch,” 25, of Kansas City, Kan., Carlos Zambrano, Jr., also known as “Los,” 30, of Kansas City, Mo., and Antonio Cervantes, III, also known as “Taz,” 34, of Independence, to plan the robbery on Nov. 15, 2012. Finley and Soto were both in possession of firearms.
Finley and Soto entered a shed behind the house. Finley admitted that they bound and beat two occupants inside the shed. One of those occupants was Antonio Hernandez. Finley and Soto then dragged Antonio Hernandez into the main house. Finley and Soto demanded drugs and money from the occupants, but the victims denied having any drugs or money. Finley and Soto both fired their weapons inside the house. Finley was responsible for the deaths of Dominguez-Gregorio and Hernandez-Corona, who were both killed by the gunfire. Soto was responsible for the death of Antonio Hernandez, who was killed by the gunfire. Miguel Hernandez was wounded as a result of the gunfire.
Following the robbery, a motorcycle and a TV were removed from the residence and placed into the back of Phillips’ truck.
Soto was sentenced to 27 years in federal prison without parole. Cervantes was sentenced to 10 years in federal prison without parole. Zambrano was sentenced to five years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kansas City, Mo., Police Department.
Guyanese National Convicted of Mortgage FraudRead the Press Release
A Guyanese national was convicted following a federal jury trial on charges stemming from his leadership and participation in an extensive mortgage fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ravindranauth “Ravi” Roopnarine, 56, of Guyana, was charged by indictment with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18, United States Code, Section 1343. On Friday, March 11, 2016, a twelve-person jury convicted Roopnarine on all three counts, after a four day trial presided over by United States District Judge Jose E. Martinez.
According to publicly filed documents and statements made in court, on December 9, 2010, a Fort Pierce federal grand jury indicted Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme. Kamla Seecharan, Deo Seecharan and Rovetto previously pled guilty and were sentenced. Roopnarine in mid-2015 waived extradition and returned from Trinidad and Tobago to the Southern District of Florida.
According to the court documents, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties. Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers. In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan.
Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.
U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release. In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively. U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.
Judge Martinez has set a sentencing hearing for Roopnarine on May 10, 2016, at 1:30 p.m. in the Fort Pierce U.S. Courthouse. Roopnarine faces a statutory maximum sentence of up to 30 years in prison and/or a $1,000,000 fine.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago. The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and James V. Hayes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Glen Carbon Man Pleads Guilty to Armed RobberyRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Jonathan Michael Malone, 53, of Glen Carbon, Illinois, pled guilty to criminal charges in the United States District Court in East Saint Louis, Illinois. Malone was charged in the first count with Interference of Commerce by Robbery in violation of Title 18, United States Code, Section 1591, in the second count with Brandishing a Firearm During and In Relation to a Crime of Violence in violation of Title 18, United States Code, Section 924(c), and in the third count with Unlawful Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Section 922(g). The armed robbery charge carries a maximum penalty of twenty years in prison, a $250,000 fine, and three years of supervised release. The brandishing of a firearm charge carries a maximum penalty of life in prison and not less than seven years of prison, to run consecutive to any term imposed on the armed robbery charge, a $250,000 fine, and not less than five years of supervised release. The felon in possession of a firearm charge carries a maximum penalty of ten years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for July 12, 2016.
Court records indicate, and the defendant admitted in open court, that on January 14, 2016, Malone robbed the One Stop Shop Gas Station in Maryville, Illinois. During the robbery, Malone brandished a handgun at the owner. Furthermore, Malone possessed the handgun unlawfully after having been previously convicted of armed robbery.
The case was investigated by the Glen Carbon Police Department, the Maryville Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Glen Burnie Felon Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Tercel Baker, age 33, of Glen Burnie, Maryland today to 12 years in prison followed by four years of supervised release for possession with intent to distribute cocaine base.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on January 8, 2015, and as part of an investigation of drug and gun violations, members of the Maryland State Police and HSI saw Baker leave his apartment and drive away in a Gold Lexus SUV. After Baker committed several traffic violations, they stopped his vehicle. A K9 was ordered to scan the car and alerted for the presence of contraband. A subsequent search of the vehicle, Baker and his apartment resulted in the seizure of a total of 58.4 grams of crack cocaine, 42.84 grams of marijuana, 26 oxycodone pills, a .40 caliber firearm and $12,000 in cash. Baker admitted to law enforcement that he was a middle man, and that he cooked the cocaine into crack at his house.
Baker has two prior felony drug convictions and was on federal supervised release for being a felon in possession of a firearm at the time of this offense.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Patricia C. McLane and A. David Copperthite, who prosecuted the case.
German Shipping Companies Sentenced to Pay $1.5 Million for Illegally Discharging Oil into the OceanRead the Press Release
The German shipping companies Briese Schiffahrts GmbH & Co. KG and Briese Schiffahrts GmbH & Co. KG MS “Extum,” who owned and operated the cargo ship M/V BBC Magellan, pleaded guilty today to failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships and tampering with witnesses by persuading them to provide false statements to the U.S. Coast Guard concerning a bypass hose on the vessel that was being used to discharge oil into the sea.
The two companies were sentenced to pay a total of $1.25 million in fines and a $250,000 community service payment to the National Fish and Wildlife Foundation to fund projects that enhance coastal habitats of the Gulf of Mexico and bolster priority fish and wildlife populations. In addition, the ship M/V BBC Magellan is banned from doing business in the United States for the next five years. The pleas and sentences were announced by Assistant Attorney General John C. Cruden for the Justice Department’s Environmental and Natural Resources Division and Acting U.S. Attorney Christopher P. Canova for the Northern District of Florida.
The operation of a marine vessel, such as the M/V BBC Magellan, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
In March 2015, during an inspection at the Port of Pensacola, the U.S. Coast Guard discovered an improperly attached rubber hose. Officials later determined that, between January and March 2015, the crew of the M/V BBC Magellan, acting on behalf of the vessel’s owner, had installed and illegally used the rubber hose to remove oily wastes from the vessel’s holding tanks and discharged them directly into the ocean. The crew also failed to make the required entries in the vessel’s oil record book. When questioned about the hose’s purpose and how oily wastes were discharged from the ship, the chief engineer instructed other crew members to lie to the Coast Guard.
“Shipping companies that transport commerce across open seas must respect the international laws and obligations of their trade, which exist to prevent the spoiling of oceans and marine habitat,” said Assistant Attorney General Cruden. “This egregious behavior by shipping companies, which included intentional deception and witness tampering, will not be tolerated. We will continue to prosecute companies and their officers for these crimes.”
“Future generations deserve to enjoy clean and safe coastal waters, and we will continue to prosecute environmental crimes to prevent pollution of our natural resources,” said Acting U.S. Attorney Canova. “Our federal environmental laws rightfully require companies to record their oil waste disposal to keep them accountable and to protect our oceans and marine life.”
“When a company knowingly fails to comply with our nation’s environmental laws, it can have a devastating effect on both public health and wildlife,” said Acting Special Agent in Charge Andy Castro of the Environmental Protection Agency’s (EPA) criminal enforcement program in Florida. “The defendants in this case falsified entries in their vessel’s log books to hide the true nature of its open water discharges. Today’s court action should signal to would-be violators that the American people will not allow the flagrant violation of U.S. laws.”
The case was investigated by U.S. Coast Guard Sector Mobile, the U.S. Coast Guard Investigative Service and the EPA. The case was prosecuted by Assistant U.S. Attorney J. Ryan Love for the Northern District of Florida and Trial Attorney Brandy N. Parker of the Environmental Crimes Section of the Department of Justice Environmental and Natural Resources Division.
German Shipping Companies Sentenced to Pay $1.5 Million for Illegally Discharging Oil into the OceanRead the Press Release
PENSACOLA, FLORIDA – The German shipping companies Briese Schiffahrts GmbH & Co. KG and Briese Schiffahrts GmbH & Co. KG MS “Extum,” who owned and operated the cargo ship M/V BBC Magellan, pled guilty today to failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships, and tampering with witnesses by persuading them to provide false statements to the U.S. Coast Guard concerning a bypass hose on the vessel that was being used to discharge oil into the sea. The two companies were sentenced to pay a total of $1.25 million in fines and a $250,000 community service payment to the National Fish and Wildlife Foundation to fund projects that enhance coastal habitats of the Gulf of Mexico and bolster priority fish and wildlife populations. In addition, the ship M/V BBC Magellan is banned from doing business in the United States for the next five years. The pleas and sentences were announced by Christopher P. Canova, Acting U.S. Attorney for the Northern District of Florida, and by Assistant Attorney General John C. Cruden for the Justice Department’s Environmental and Natural Resources Section.
The operation of a marine vessel, such as the M/V BBC Magellan, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
In March 2015, during an inspection at the Port of Pensacola, the U.S. Coast Guard discovered an improperly attached rubber hose. Officials later determined that, between January and March 2015, the crew of the M/V BBC Magellan, acting on behalf of the vessel’s owner, had installed and illegally used the rubber hose to remove oily wastes from the vessel’s holding tanks and discharged them directly into the ocean. The crew also failed to make the required entries in the vessel’s oil record book. When questioned about the hose’s purpose and how oily wastes were discharged from the ship, the chief engineer instructed other crew members to lie to the Coast Guard.
“Future generations deserve to enjoy clean and safe coastal waters, and we will continue to prosecute environmental crimes to prevent pollution of our natural resources,” said Acting U.S. Attorney Christopher P. Canova. “Our federal environmental laws rightfully require companies to record their oil waste disposal to keep them accountable and to protect our oceans and marine life.”
“Shipping companies that transport commerce across open seas must respect the international laws and obligations of their trade, which exist to prevent the spoiling of oceans and marine habitats,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environmental and Natural Resources Division. “This egregious behavior by shipping companies, which included intentional deception and witness tampering, will not be tolerated. We will continue to prosecute companies and their officers for these crimes.”
“When a company knowingly fails to comply with our nation’s environmental laws, it can have a devastating effect on both public health and wildlife,” said Andy Castro, Acting Special Agent in Charge of the Environmental Protection Agency’s (EPA) criminal enforcement program in Florida. “The defendants in this case falsified entries in their vessel’s log books to hide the true nature of its open water discharges. Today’s court action should signal to would-be violators that the American people will not allow the flagrant violation of U.S. laws.”
The case was investigated by U.S. Coast Guard Sector Mobile, the U.S. Coast Guard Investigative Service, and the EPA. The case was prosecuted by Assistant U.S. Attorney J. Ryan Love for the Northern District of Florida and Trial Attorney Brandy N. Parker of the Environmental Crimes Section of the Department of Justice Environmental and Natural Resources Division.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fourteen Individuals Charged in Multistate ConspiracyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg returned a ten-count indictment on February 24, 2016 against fourteen individuals, charging them with a multistate conspiracy to fraudulently obtain cheaper insurance for commercial bus carriers in Pennsylvania and fraudulently impeding and obstructing the proper administration and enforcement of bus safety regulations by the U.S Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA). The indictment was unsealed today following the arrests of eight of the defendants.
According to U.S. Attorney Peter Smith, the individuals charged in the indictment are:
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Pao Hua Yu, age 52, New York, NY, in custody;
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Wen (aka “When”) Zhou, age 41, Syracuse, NY, in custody;
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Ming Di (aka “De”) Yu, age 59, Wind Gap, PA, in custody;
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Shiao Wen Hsieh (aka “Cicely”), age 58, State College, PA, in custody;
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Bing Lin Pan (aka “Pan Bing Lin”), age 55, Flushing, NY, in custody;
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Ming Zhong Yu, age 35, Brooklyn, NY, in custody;
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Yalin Liu (aka “Alan”), age 50, Philadelphia, PA, in custody;
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You Guo Yang (aka “Jackie Wong”), age 43, Flushing, NY, in custody;
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To Lee (aka “Leo”), age 40, Brooklyn, NY, fugitive;
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Tom Chen (aka “Xiao Long Chen and “Xing Lu Chen”), age 53, Brooklyn, NY, fugitive;
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Tian Jian Pan (aka “Dong Sheng Zheng”), age 55, Flushing, NY, fugitive;
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Xiu Cheng Zheng (aka “Ah Sen”), age 55, Court Norcross, GA, fugitive;
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Samantha Mei (aka “Yu Hua Mei”), age 45, Brooklyn, NY, fugitive; and
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Wei Ming He (aka “Wei Ho,” “Weiming He,” “Ming Wei,” “Xue Dong”), age 47, Clemson, South Carolina, fugitive.
The indictment continues an ongoing investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Criminal Investigations of the Pennsylvania Attorney General’s Office, and the U.S. Department of Transportation, Office of Inspector General which previously resulted in July 2015 charges against eight restaurant owners and managers in the State College, Pennsylvania area who were engaged in recruiting, placing, harboring, concealing and transporting unauthorized aliens by commercial buses, vans and other vehicles to and from restaurants in the State College area, where they would work and be housed during their employment.
The indictment charges that the defendants owned bus carriers that operated out of New York City. The defendants are alleged to have conspired with each other to defraud state and federal authorities by filing to incorporate their bus carriers in Pennsylvania, falsely representing that the bus carriers were headquartered in Pennsylvania, and that their buses were located and garaged in Pennsylvania when in fact they were operating the bus carriers out of New York City. Using these fraudulent representations, the defendants obtained operating authority along with licenses, stickers and other authority indicating that the buses met federal and state safety standards.
However, in many cases, the buses used by the defendants had not been properly maintained and did not meet the safety requirements to transport travelers in interstate commerce. Inspections of buses routinely revealed unsafe and hazardous conditions on the buses, which caused them to be routinely shut down and their licenses and operating authority terminated by U.S. Department of Transportation. The defendants did not have proper maintenance programs to monitor the safety of buses. Moreover, the defendants knowingly employed drivers who had not undergone pre-employment drug tests, as required by law, and in many cases were not qualified or properly trained to drive commercial buses in interstate commerce. These unsafe and hazardous conditions were knowingly concealed from Pennsylvania and Federal authorities.
Drivers employed by the defendants would routinely operate buses for more than one company and would maintain more than one log in order to conceal their excessive hours of driving time.
When the defendants’ buses and corporations were shut down by state and federal authorities for repeated safety violations, the defendants would immediately create another shell corporation and would fraudulently use the same defective and dangerous buses to transport passengers in interstate commerce. These violations led to safety violations and accidents where passengers were injured and, in some cases, killed.
The indictment also seeks the forfeiture of all assets of the criminal organization.
“Today's operation sends a strong message that HSI and our law enforcement partners are ever vigilant against those seeking to manipulate the system to gain an unfair advantage over their competitors," said Jack Staton, acting special agent in charge of HSI Philadelphia. "The combined resources of a joint federal, state and local law enforcement operation present a formidable obstacle to any alleged criminal group attempting to undercut the many legitimate businesses that play by the rules.”
“The criminal indictments are an important step in addressing those who willfully disregard laws designed to protect all travelers on our nation’s roadways,” said FMCSA Acting Administrator T.F. Scott Darling, III. “We are proud of the rigorous enforcement of federal safety regulations by FMCSA special agents that helped lead to a multi-Agency investigation culminating in today’s action by the U.S. Attorney’s Office. We will continue to vigorously enforce safety regulations with the goal of removing unsafe commercial vehicles, drivers and carriers from our highways and roads.”
In May 2012, FMCSA announced that it had declared 26 bus operations to be imminent hazards to public safety and order to immediately shut down; evidence of criminal activity discovered by FMCSA special agents during the unprecedented year-long investigation was turned over to the U.S. Department of Transportation Office of Inspector General and to the U.S. Department of Justice leading to the criminal indictment by the U.S. Attorney’s Office.
https://www.fmcsa.dot.gov/newsroom/us-department-transportation-shuts-down-26-bus-operations-unprecedented-sweep
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Criminal Investigation of the Pennsylvania Attorney General’s Office, the U.S. Department of Transportation, Office of Inspector General and assisting the investigation was State College, Philadelphia and New York Police Departments, New York Department of Motor Vehicle and New York Department of Transportation. Assistant U.S. Attorneys William Behe and William Houser, along with Special Assistant U.S. Attorney Robert LaBar of the Pennsylvania Attorney General’s Office coordinated the investigation and the grand jury presentation and have been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
One count of conspiracy to commit mail and wire fraud carrying a maximum penalty under federal law of up to 20 years and $250,000 fine, eight counts of mail fraud carrying a maximum penalty under federal law of up to 20 years and $250,000 fine for each count and conspiracy to defraud carrying a maximum penalty of up to 5 years and a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Prison Guard Pleads Guilty to Smuggling Drugs into Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Anthony Jermaine Creech, of Blackville, South Carolina, has entered a guilty plea in federal court in Charleston, to providing marijuana to inmates at Estill FCI, a violation of 18 U.S.C. § 1791. United States Magistrate Judge Mary Gordon Baker of Charleston accepted the guilty plea. Sentence will be imposed after a district judge has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 8, 2015, Creech, while working as a prison guard at Estill FCI, delivered one ounce of marijuana to an inmate at the prison. When confronted by authorities, Creech admitted to smuggling in marijuana and other contraband to inmates in exchange for money, and resigned his position at the prison. Estill FCI is a medium security federal prison in Estill, South Carolina.
Mr. Nettles stated the maximum penalty is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. Assistant United States Attorney Nick Bianchi of the Charleston office is prosecuting the case.
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Former Harris Township Supervisor Convicted of Producing Child Pornography and Obstruction of JusticeRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher G. Lee, age 66, a resident of Boalsburg, Pennsylvania, was convicted Friday of production, receipt and possession of child pornography as well as obstruction of justice. The four-day trial was held before U.S. District Court Judge Matthew W. Brann in Williamsport.
Lee is a former Harris Township Supervisor and the ex-director of the Boal Mansion Museum in Boalsburg, PA. It was because of his affiliation with the Boal Mansion Museum that Lee had access to teenage boys, who volunteered or worked at the museum as docents or tour guides. Some of these boys later became victims of his production of child pornography.
According to U.S. Attorney Peter Smith, the jury returned with the verdict of guilty of producing and receiving child pornography after approximately two hours of deliberation. The jury of six men and six women also convicted Lee of possessing images of child pornography, including images of prepubescent children under the age of 12 years old. Finally, after hearing Lee attempt to have his cousin assist him in having his cellular telephone that was in the custody of the FBI “wiped remotely” in multiple recorded phone calls, the jury convicted Lee of obstruction of justice. These counts carry enhanced penalties requiring a mandatory minimum of 20 years’ imprisonment.
Judge Brann has not scheduled a sentencing date for Lee, but Lee will remain detained pending a sentencing hearing.
This investigation was conducted by the Federal Bureau of Investigation and the State College Police Department and was prosecuted by Assistant United States Attorneys Meredith A. Taylor and Francis P. Sempa.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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