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11 March 2016
Real Estate Development Company and Its President Ordered to Pay $1 Million in Restitution for Securities Fraud and Wildlife ViolationsRead the Press Release
Wildlife Management, LLC, an Alameda County development company, and its President, James Tong, were sentenced today for securities fraud and violations of the Endangered Species Act, announced Acting U.S. Attorney Brian J. Stretch and U.S. Fish and Wildlife Service (USFWS) Special Agent in Charge Jill Birchell. Today’s sentence, handed down by the Honorable Jon S. Tigar, U.S. District Judge, is a global resolution of state and federal criminal charges against the defendants that will include payments totaling $1 million in restitution to entities that protect the environment and a conservation easement on 107 acres of land in Contra Costa County.
Wildlife Management, LLC, based in Dublin, Calif., financed and developed residential and commercial real estate projects in the East Bay. Real estate developers like Wildlife Management are required to mitigate for the loss of threatened or endangered species when a project impacts a protected species or its habitat. During the development of the Dublin Ranch North real estate project in Dublin, a person acting on behalf of Wildlife Management submitted to the City of Dublin a forged $3.2 million mitigation receipt from the Ohlone Preserve Conservation Bank with the intent to deceive the City into believing Wildlife Management had purchased mitigation credits when it had not. Wildlife Management pleaded guilty to securities fraud, in violation of 18 U.S.C. § 513(a), on January 8, 2016.
As part of the sentence, Judge Tigar ordered Wildlife Management to serve one year probation and pay $175,000 in restitution to resolve the federal case. The restitution will be paid to the National Fish & Wildlife Foundation, a non-profit organization established by Congress to administer such funds.
Tong, 70, of Pleasanton, Calif., and President of Wildlife Management, pleaded guilty to a criminal violation of the Endangered Species Act, 16 U.S.C. §§ 1538(a)(1)(G) and 1540(b)(1), on January 8, 2016. In his plea agreement, Tong admitted that he directed the grading activities at Dublin Ranch North without the City’s required mitigation measure and without authorization from wildlife officials. The grading activities caused sediment to run off into a pond that provided habitat for the California Tiger Salamander. In the federal case, Tong was charged with one count of violating the Endangered Species Act. Tong also pleaded nolo contendere to a criminal forgery charge pending against him in state court. To resolve both the federal and state criminal cases, Tong has agreed to pay $350,000 to the Alameda County Fish and Game Commission, $175,000 to the Contra Costa County Fish and Wildlife Propagation Fund, and $300,000 to the California Department Fish and Wildlife. The funds paid to the California Department of Fish and Wildlife will be split equally between the Pollution Account and the Preservation Fund. Judge Tigar’s sentence today converts the parties’ agreements to an order of the Court. Judge Tigar also ordered Tong to serve one year of probation, to serve four months home detention, and to provide a conservation easement on a 107-acre parcel of land in Contra Costa known as the Brown Ranch. The conservation easement provides habitat for endangered species and will prohibit any future owners from developing the property. The easement has an estimated value of $3 million. In addition, Judge Tigar ordered Tong to place more than $300,000 into an account to manage the Brown Ranch conservation easement in perpetuity.
Assistant U.S. Attorney Maureen Bessette is prosecuting the federal case with the assistance of Melissa Dorton. Deputy Attorney Generals Jason Malinsky and Brett Morris prosecuted the state case. The prosecution was the result of an investigation by the California Department of Fish and Wildlife and the USFWS Office of Law Enforcement.
Previously Deported Mexican Citizen Heads to Prison for Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Mexican citizen caught entering the U.S. illegally has been ordered to federal prison following his conviction of possessing child pornography, announced U.S. Attorney Kenneth Magidson. Jesus Hernandez-Ramos pleaded guilty Jan. 4, 2016.
Today, Senior U.S. District Judge Janis Graham Jack handed him a sentence of 86 months in federal prison to be followed by a lifetime of supervised release. Hernandez-Ramos will also be ordered to register as a sex offender. As an illegal alien, he is expected to face deportation proceedings following his release.
Hernandez-Ramos was apprehended in April 2014 by Border Patrol agents as part of a group of people that were being smuggled into the U.S. When questioned, Ramos admitted to being here illegally. At the time of his arrest, authorities seized a cellular telephone from Ramos. Forensic analysis of the device ultimately revealed more than 980 images and 35 videos of child pornography.
Many of the images also depicted infants.
Ramos was arrested on the federal charges in November 2015 and has been in custody since the time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Duval County Sherriff’s Office, Border Patrol and the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
New York Woman Charged with Using Bogus Clinical Research Company as Part of Three-Year Immigration Fraud SchemeRead the Press Release
NEWARK, N.J. – An Elmont, New York, woman was arrested today for allegedly orchestrating a multi-pronged H-1B visa fraud scheme through her shell Newark-based company, Care Worldwide (CWW), U.S. Attorney Paul J. Fishman announced.
Raina Massey, 51, is charged by complaint with two counts of wire fraud, one count of visa fraud, and one count of aggravated identity theft. She is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
Non-United States citizens must have some kind of authorization to work legally in this country. H-1B visas are non-immigrant visas designed to allow U.S.-based employers to recruit and employ non-U.S. citizen professionals. H-1B visas are employer, not employee, driven, and are only issued for a specified, limited duration for “specialty occupations.”
Foreign workers admitted under the H-1B program are known as “beneficiaries” of the visas. To obtain an H-1B visa, an employer has to apply on behalf of the beneficiary and complete various forms required for the visa to be approved. One of those forms is U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services Form I-797C, which is used to memorialize, among other things, that an application for an H-1B visa has been successfully filed on behalf of an H-1B beneficiary and that the application has been vetted by the U.S. government. Beneficiaries do not have to pay any fees in connection with the visa application and are not responsible for finding their own employment.
From February 2012 through March 2015, Massey and others executed the fraud scheme through her company, CWW, which purported to be a clinical research company, but was actually a shell company that did little to no legitimate work of any kind. Massey and others sought out and advertised for qualified foreign professionals, purportedly to work for CWW in clinical research positions as beneficiaries of H-1B visas. These beneficiaries became victims of the scheme because the advertised positions did not actually exist.
For one set of victims, Massey engaged in “benching,” a form of fraud in which Massey and others falsely represented that the beneficiaries would have specialty technical jobs waiting for them upon their arrival at CWW. After taking illegal payments from these beneficiaries, Massey and others then completed applications for H-1B visas for these beneficiaries. However, when the beneficiaries arrived in the United States, Massey and others employed them in menial tasks, such as handing out flyers on street corners.
For a second set of victims, Massey and others, after illegally taking payments from the victims, never actually applied for H-1B visas. Massey and others provided these victims with false and fraudulent Form I-797Cs, which contained receipt numbers from other, previously filed, H-1B visa applications.
For a third set of victims, Massey and others, after illegally taking payments from the victims based on fraudulent representations regarding H-1B visas, never provided any documentation whatsoever to the victims.
In all cases, Massey and others demanded and took illegal payments from victims in exchange for purportedly filing H-1B visa applications on behalf of the victims.
Each wire fraud count carries a maximum penalty of 20 years in prison; the visa fraud count carries a maximum penalty of 10 years in prison; and the aggravated identity theft count carries a mandatory sentence of two years in prison, to run consecutive to any sentence imposed on any other count. Each count carries a potential fine of up to $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of State, under the direction of Special Agent in Charge David Schnorbus of the New York Field Office, and investigators from the U.S. Attorney’s Office, under the direction of Supervisory Criminal Investigator Thomas Mahoney, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Zach Intrater, Chief of the Criminal Division’s General Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Haven Man Sentenced to 6 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAWN HILL, 32, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 72 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on December 12, 2012, ATF agents and New Haven Police officers executed a search warrant at a residence on Norton Street in New Haven where HILL had been residing. As New Haven SWAT team members forced entry into the second floor apartment, HILL discarded a fully-loaded Sig Sauer, P229, .40 caliber pistol through a window in a bedroom where a 9-year-old child was sleeping. The pistol was quickly recovered by law enforcement and HILL was arrested.
The firearm had been reported as stolen from Wilmington, N.C.
HILL’s criminal history includes numerous felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
HILL has been detained since February 2013. On June 22, 2015, as the evidence was about to begin in his trial, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Mississippi Man Pleads Guilty in Terrorism InvestigationRead the Press Release
WASHINGTON – Muhammad Oda Dakhlalla, 23, of Starkville, Mississippi, pleaded guilty today in U.S. District Court in Aberdeen, Mississippi, to conspiring to provide material support to a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division.
Dakhlalla pleaded guilty before Chief U.S. District Judge Sharion Aycock of the Northern District of Mississippi to conspiring with another individual to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Dakhlalla was remanded to the custody of the U.S. Marshals Service to await sentencing, which will be scheduled at a later date.
The investigation was conducted by the FBI’s Jackson Division Joint Terrorism Task Force and the Washington Field Office. The case is being prosecuted by the U.S. Attorney’s Office of the Northern District of Mississippi and the National Security Division’s Counterterrorism Section.
Mississippi Man Pleads Guilty in Terrorism InvestigationRead the Press Release
Muhammad Oda Dakhlalla, 23, of Starkville, Mississippi, pleaded guilty today in U.S. District Court in Aberdeen, Mississippi, to conspiring to provide material support to a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division.
Dakhlalla pleaded guilty before Chief U.S. District Judge Sharion Aycock of the Northern District of Mississippi to conspiring with another individual to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Dakhlalla was remanded to the custody of the U.S. Marshals Service to await sentencing, which will be scheduled at a later date.
The investigation was conducted by the FBI’s Jackson Division Joint Terrorism Task Force and the Washington Field Office. The case is being prosecuted by the U.S. Attorney’s Office of the Northern District of Mississippi and the National Security Division’s Counterterrorism Section.
Dakhlalla Plea Agreement
Dakhlalla Factual Basis
Mescalero Apache Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Glen Joel Lester, 38, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Lester was one of 34 individuals charged in Dec. 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Lester was arrested on Dec. 15, 2015, on an indictment charging him with two counts of methamphetamine distribution. During today’s change of plea hearing, Lester pled guilty to both counts of the indictment and admitting selling methamphetamine to an undercover law enforcement agent on two occasions. The first drug sale occurred on Aug. 19, 2015, in Mescalero, and involved the sale of $500 worth of methamphetamine. The second drug sale took place in Mescalero on Sept. 10, 2015, and involved the sale of $1,500 worth of methamphetamine.
At sentencing, Lester faces a statutory maximum penalty of 20 years in prison followed by not more than three years of supervised release. His sentencing hearing has yet to be scheduled.
Lester is the fourth of the 18 federal defendants to enter a guilty plea. The following defendants previously entered guilty pleas:
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On March 9, 2016, Robin Lee Lovelace, 56, of Alamogordo, N.M., pled guilty to methamphetamine trafficking charges.Under the terms of her plea agreement, Lovelace will be sentenced to 12 years in prison followed by a term of supervised release to be determined by the court.
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On Feb. 17, 2016, Jerilyn Munoz, 28, of Artesia, N.M., pled guilty to a money laundering conspiracy charge.At sentencing, Munoz faces a statutory maximum penalty of 20 years in prison followed by not more than three years of supervised release.
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Wallace Rice, 23, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty to a methamphetamine distribution charge on Feb. 5, 2016. At sentencing, Rice faces a statutory maximum penalty of 20 years in federal prison followed by not less than three years of supervised release.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Alta Braham is prosecuting the tribal cases.
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Mercer County, New Jersey, School Bus Driver Arrested on Charges of Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON N.J. – A Mercer County, New Jersey, man is scheduled to make his initial court appearance today on charges that he distributed images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Christopher Walsh, 31, of Yardville, New Jersey, a school bus driver, was arrested on the evening of March 10, 2016, and charged by complaint with three counts of distributing images or video files containing child pornography via e-mail. He is due to appear later today before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to the criminal complaint:
From June 15, 2014, to Jan. 10, 2016, Walsh’s e-mail account either sent or received 1,590 files that contained images of child sexual abuse. On Oct. 19, 2014, Walsh e-mailed another person an image depicting child sexual abuse, stating that Walsh himself was depicted in the image. From July 30, 2015, to Aug. 2, 2015, Walsh exchanged e-mails with another email user in which he stated that he liked young children, that he was babysitting for particular children of whom he hoped to get photographs and with whom he hoped to “play,” and that one of the children had Down’s syndrome. During the exchange, Walsh sent a video depicting child sexual abuse to the other user.
Walsh also sent additional videos to another email account on Aug. 5, 2015, stating that he, Walsh, created one video and that the other video depicted a child he had met on a school trip.
Each count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Molly S. Lorber and Elisa T. Wiygul 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 considered innocent unless and until proven guilty.
Medina man charged with sending nearly a half-million dollars from cocaine conspiracy through U.S. mailRead the Press Release
A Medina man was named in a 13-count federal indictment, charged with using the U.S. mail to transfer nearly a half-million dollars related to a cocaine distribution conspiracy, said Acting U.S. Attorney Carole S. Rendon.
Nelson Figueroa, 35, is accused of mailing U.S. currency 13 times in July and August 2015. The total amount of currency mailed is approximately $456,770, according to the indictment.
Prosecutors are seeking to forfeit the money involved in the alleged crime.
This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the U.S. Postal Inspection Service.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan Man Sentenced to 30 Years in Prison for Production, Receipt, and Possession of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MATTHEW VADO was sentenced in Manhattan federal court on Wednesday, March 9, to 30 years in prison for production, receipt, and possession of child pornography. VADO pled guilty to eight counts of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography on October 15, 2015, before United States District Judge Paul A. Engelmayer, who imposed VADO’s sentence.
According to the Complaint, the Indictment, and other statements made in open court, between June 2013 and June 2014, VADO engaged in chats over the Internet with multiple minor children between the ages of 9 and 15. In those chats, VADO induced eight children to send sexually explicit images of themselves to VADO over the internet, and among other things, sought to persuade one child to engage in a sexual act with a dog. VADO used “Kik Messenger,” a mobile communication application, to contact at least one child, and also used the application to induce the production of, and to receive, sexually explicit images and videos of the child as well as to send pornographic images of himself to the child. VADO employed a username on Kik Messenger that was not his real name.
VADO, 33, of Manhattan, was sentenced to 30 years in prison and supervised release for life.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation.
The FBI encourages the public to report suspected child predators and any related suspicious activity by calling them at (212) 384 -1000. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children at 1-800-843-5678 or www.cybertipline.com.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Max Nicholas is in charge of the prosecution.
MS-13 Gang Member Pleads Guilty to Double-MurderRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Arnolvin Umanzor Velasquez (aka “Momia” and “Lito”), a member of the Brentwood Locos Salvatruchas (BLS) clique of La Mara Salvatrucha, also known as the MS-13 street gang, pleaded guilty to his involvement in the December 18, 2011 execution-style murders of two brothers, Ricardo and Enston Ceron. After committing the murders, Velasquez fled to El Salvador, and he later relocated to Georgia. On May 19, 2015, he was found and arrested in Flowery Branch, Georgia, by a Federal Bureau of Investigation SWAT team and later transferred to the Eastern District of New York in custody.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, FBI, New York Field Office, and Timothy Sini, Commissioner, Suffolk County Police Department.
“The Ceron brothers’ murders are another example of the senseless violence unleashed by the MS-13 on our communities, including the gang’s own members who violate the gang’s rules. One brother was executed because he was trying to distance himself from the MS-13, and the other was killed, merely because of his relationship with the other victim,” stated United States Attorney Capers. “As a result of the tenacious investigation by this Office and our partners with the FBI’s Long Island Gang Task Force, Velasquez and other MS-13 gang members who commit callous acts of violence will be held accountable and face justice.”
“The violence that often erupts between mutual and rival gang members not only affects the criminals involved in this insidious behavior, but innocent people living in the neighborhoods in which they operate. The murders of Ricardo and Enston Ceron signify the unfortunate reality that gangs are responsible for a significant percentage of violent crime in many jurisdictions. We’re dedicated to disrupting and dismantling gangs that pose a threat to the safety and stability of our communities and undermine the values we strive to uphold,” stated Assistant Director-in-Charge Rodriguez.
“Gang violence in Suffolk County threatens the very fabric of our communities, and we must do everything we can to disrupt gangs such as MS-13. Today’s conviction sends a clear message that we will not tolerate gangs and the senseless violence they cause. That is why the Suffolk County Police Department is committed to working with all of our law enforcement partners—particularly the United States Attorney’s Office and the FBI—to make Suffolk County an even safer County than it is already,” stated Commissioner Sini.
As set forth in prior court filings, a detention letter, and the defendant’s statements during his guilty plea, the BLS clique killed Enston Ceron because he was not attending meetings or “putting in work” for the gang, and the clique member were concerned that he might cooperate with law enforcement authorities if he were arrested. The BLS clique also murdered his brother, Ricardo Ceron, who belonged to the Western clique of the MS-13, because they were concerned he would retaliate if he learned that the BLS killed his brother. On December 18, 2011, Velasquez and Sergio Cerna (“Taz”), who had agreed to carry out the murders and were armed with .22 caliber and 9mm semi-automatic handguns, asked Enston and Ricardo Ceron for a ride home from a party. When the car stopped in the vicinity of Lincoln Avenue and Stockton Streets in Brentwood, Velasquez and Cerna executed the Ceron brothers, shooting them in the head and torso at close range. Velasquez and Cerna exited the car and when another vehicle approached the murder scene and stopped, Cerna fired multiple shots at the driver, striking him once in the chest. The driver survived the shooting.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or cliques, the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in this district. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 30 murders, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
Velasquez faces a maximum sentence of life in prison when sentenced by United States District Judge Joseph F. Bianco on June 23, 2016. The charges in the superseding indictment against the other defendants remain pending and are merely allegations. Those defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Paul G. Scotti are in charge of the prosecution.
The Defendant:
ARNOLVIN UMANZOR VELASQUEZ (“Momia” and “Lito”)
Age: 23
Brentwood, New York and Flowery Branch, GeorgiaE.D.N.Y. Docket No. 15-CR-087 (S-2)(JFB)
Lafayette man pleads guilty to drug smuggling using the Silk Road websiteRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man pleaded guilty Wednesday to buying drugs overseas and shipping them to himself.
Michael Munro Jr., 37, of Lafayette, pleaded guilty before U.S. Magistrate Judge Carol B. Whitehurst to one count of smuggling controlled substances and one count of possession with intent to distribute Schedule IV narcotics. The plea will become final when approved by U.S. District Judge Dee D. Drell. According to the guilty plea, Munro was arrested in November of 2014 and July of 2015 for buying illegal narcotics online overseas and having them delivered to U.S. Post Offices and FedEx locations in Lafayette and surrounding areas. Munro told agents that in March of 2014 he began ordering pills via the internet using the Silk Road website. Munro admitted to ordering Xanax, Alprazolam and OxyContin at various times. He also stated that he would order 1,000 to 1,500 Xanax bars at a time and sell 3,000 OxyContin pills per week.
Munro faces 20 years for the smuggling count and five years in prison for possession with intent to distribute. He also faces three years of supervised release and a $250,000 fine. A sentencing date was not set.
Homeland Security Investigations investigated the case with the assistance of the U.S. Postal Inspection Service and Lafayette Metro Narcotics. Assistant U.S. Attorneys Robert F. Moore and John Luke Walker are prosecuting the case.
Judge Sentences Heroin Dealer to 24 Years in Federal PrisonRead the Press Release
PITTSBURGH - A former resident of Homestead, Pa., has been sentenced in federal court in to 24 years’ incarceration, followed by five years of supervised release, on his conviction of conspiracy to distribute and possess with the intent to distribute over one kilogram of heroin, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Thomas Hopes, 24.
According to information presented to the court, Hopes played a major role in a conspiracy to distribute and possess with intent to distribute heroin, and possessed a firearm in the course of the drug trafficking conspiracy. Hopes also possessed with intent to distribute heroin.
Prior to imposing sentence, Judge Bissoon concluded that Thomas Hopes was responsible for between one and three kilograms of heroin, which she called a poison that he chose to sell on the street for profit.
Assistant United States Attorneys Conor Lamb and Ryan Hart prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Allegheny County Sheriff’s Office, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Thomas Hopes. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Irving Man Sentenced to 293 Months in Child Sex Trafficking Conspiracy Involving 12-Year-Old Female VictimRead the Press Release
DALLAS — Marcos Antonio Rodriguez-Mejia, a/k/a, Brady Rodriguez-Cruz, 33, of Irving, Texas was sentenced today by U.S. District Judge Jane J. Boyle for his role in a sex trafficking conspiracy involving a 12 year old female. U.S. Attorney John Parker of the Northern District of Texas made the announcement this afternoon.
Rodriguez-Mejia was sentenced to 293 months in federal prison on one count of conspiracy to commit sex trafficking of children and 120 months in federal prison for one count of possession of counterfeit documents. Rodriguez-Mejia’s sentence is to be served concurrently.
A federal jury convicted Rodriguez-Mejia in November 2015 for his role in the conspiracy. He also pleaded guilty to one count of possession of counterfeit documents. On October 22, 2015, Luis Rivera, 19, also of Irving, pleaded guilty to one count of conspiracy to commit sex trafficking of children. Rivera is scheduled to be sentenced April 14, 2016.
In the conspiracy, Rodriguez-Cruz acted as the “john,” and Rivera acted as the “pimp.” The government presented evidence at trial that from approximately December 23, 2014, through December 25, 2014, Rodriguez-Cruz and Rivera agreed to cause Jane Doe, a 12-year-old child, to engage in a commercial sex act.
Rivera met Jane Doe, along with three other minor females, in Irving. Shortly after he met the minor females, Rivera learned that Jane Doe was 12-years-old. Rivera and his friends, including one minor friend, took the four minor females to an empty apartment in Irving, where they stayed overnight. The minor females had no money, so they were not able to eat that day.
The next day, the group left the abandoned apartment and went to Rivera’s minor friend’s apartment, and Rivera told the four minor females that they needed to engage in commercial sex acts to earn money for food. Rivera then made several phone calls seeking potential commercial sex customers for the minor females. He planned to charge $100 for sexual intercourse with one of the minors. Rivera reached Rodriguez-Cruz and Rodriguez-Cruz agreed to come to the location to engage in a commercial sex act. Rodriguez-Cruz brought another man with him to the apartment. Rivera told the four minor females to line up so the men could select who they wanted to have sex with, and Rodriguez-Cruz selected the youngest girl, 12-year-old Jane Doe. Rodriguez-Cruz then negotiated the price for sex with a girl down to $50. Shortly thereafter, he engaged in commercial sex acts with Jane Doe, paid Rivera and his minor male friend approximately $50, and hastily left.
The government also presented evidence at trial that on August 28, 2015, when officers with the Irving Police Department executed a traffic stop on a vehicle driven by Rodriguez-Cruz, they found him in possession of an unlawfully obtained, counterfeit U.S. Permanent residence card. That card was issued in another name but bore Rodriguez-Cruz’s photograph.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce and John Kull prosecuted.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on March 8, 2016 and entering pleas of Not Guilty were:
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CHERYL LYNN LITTLE DOG, a 43-year-old resident of East Glacier, appeared on charges of harboring a fugitive, and false statements to federal law enforcement.If convicted of the most serious charge contained in the indictment, LITTLE DOG faces 5 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation and the United States Marshals Service.PACER Case Reference. 16-09
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HEATHER RAE SCHWARZROCK, a 25-year-old resident of Poplar, appeared on charges of theft from a local government receiving federal funding and theft.If convicted of the most serious charge contained in the indictment, SCHWARZROCK faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-07
Appearing before U.S. Magistrate Ostby in Billings on March 8, 2016 and entering pleas of Not Guilty were:
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ASHLEY SHANTELL REYNA, a 28-year-old resident of Billings, appeared on charges of false statement during purchase of a firearm.If convicted of the charge contained in the indictment, REYNA faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 16-29
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TERRY MALENE SEMINOLE, a 54-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury.If convicted of the charge contained in the indictment, SEMINOLE faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference. 16-11
Appearing before U.S. Magistrate Johnston in Great Falls on March 7, 2016 and entering pleas of Not Guilty were:
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SEIVERT DAYDRILL RUNNINGCRANE, a 34-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury.If convicted of the charge contained in the indictment, RUNNINGCRANE faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation and Blackfeet Law Enforcement Services.PACER Case Reference. 16-17
Appearing before U.S. Magistrate Ostby in Billings on March 7, 2016 and entering pleas of Not Guilty were:
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JOSE ANTONIO GOMEZ-GRANDA, a 37-year-old citizen of Peru, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.If convicted of the most serious charge contained in the indictment, GOMEZ-GRANDA faces life in prison, $10,000,000 in fines and 5 years supervised release.The case was investigated by the HIDTA.PACER Case Reference. 16-28
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ROBERTA LOUISE HART, a 28-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury.If convicted of the charge contained in the indictment, HART faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference. 15-130
Appearing before U.S. Magistrate Ostby in Billings on March 4, 2016 and entering pleas of Not Guilty were:
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RENE FLORES, a 38-year-old resident of Tacoma, Washington, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine.If convicted of the most serious charge contained in the indictment, FLORES faces life in prison, $10,000,000 in fines and 5 years supervised release.The case was investigated by the HIDTA.PACER Case Reference. 16-28
Appearing before U.S. Magistrate Ostby in Billings on March 3, 2016 and entering pleas of Not Guilty were:
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JOHN LAWRENCE FELLER, JR., a 34-year-old resident of Lame Deer, appeared on charges of felony child abuse.If convicted of the charge contained in the indictment, FELLER faces 10 years in prison, $50,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference. 16-10
Appearing before U.S. Magistrate Ostby in Billings on March 2, 2016 and entering pleas of Not Guilty were:
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NATHAN MARTIN SHIKE, a 42-year-old resident of Billings, appeared on charges of felon in possession of a firearm.If convicted of the charge contained in the indictment, SHIKE faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 15-152
Appearing before U.S. Magistrate Ostby in Billings on February 29, 2016 and entering pleas of Not Guilty were:
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CODY ALAN CHURCHILL, a 22-year-old resident of Roundup, appeared on charges of possession of an unregistered firearm.If convicted of the charge contained in the indictment, CHURCHILL faces 10 years in prison, $10,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 15-119
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JEFFERSON SCOTT PERRIGO, a 42-year-old resident of Laurel, appeared on charges of possession of a stolen firearm.If convicted of the charge contained in the indictment, PERRIGO faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 15-120
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RUSSELL KAY VANDYKE, a 38-year-old resident of Billings, appeared on charges of felon in possession of a firearm and ammunition.If convicted of the charge contained in the indictment, VANDYKE faces 10 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 16-23
Appearing before U.S. Magistrate Johnston in Great Falls on February 29, 2016 and entering pleas of Not Guilty were:
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THOMAS JOSEPH WEHNER, a 40-year-old resident of Moyie Springs, Idaho, appeared on charges of distribution of methamphetamine resulting in death, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of firearms, possession of stolen firearms, and transportation of stolen firearms.If convicted of the most serious charges contained in the indictment, WEHNER faces life in prison, $10,000,000 in fines and 6 years supervised release.The case was investigated by the Russell Country Drug Task Force and the Great Falls Police Department.PACER Case Reference. 16-14
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If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Glenmont Woman Indicted for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Tammy A. Grumme, age 41, of Glenmont, New York, was arraigned today on an indictment accusing her of stealing Social Security Survivor’s Insurance Benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration (SSA) Office of the Inspector General.
Grumme is charged with submitting false statements to the SSA from March 2011 through May 2013, claiming that she was the caregiver for her minor son, a surviving child, and that he resided with her. In January 2011, an Albany County Court Judge awarded primary physical custody and sole decision-making authority to the child’s grandparents. The indictment alleges that based on that court order, and the fact that the child did not reside with her, Grumme collected nearly $80,000 in benefits for her and her son that she was not entitled to receive.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Grumme faces up to 10 years of imprisonment, a term of post-imprisonment supervised release of up to 3 years, and a $250,000 fine, if convicted. 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.
Grumme was arraigned today before U.S. Magistrate Judge Daniel J. Stewart. She was detained pending a trial scheduled for May 10, 2016 before U.S. District Judge Frederick J. Scullin, Jr.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Fugitive Felon Sent to Federal Prison for Gun and Drug PossessionRead the Press Release
CORPUS CHRISTI, Texas – A previously convicted felon has been ordered to serve 10 years in federal prison following his convictions for illegally possessing a firearm and methamphetamine, announced U.S. Attorney Kenneth Magidson. Doroteo Ray Garcia, 38, of Corpus Christi, pleaded guilty to the charges Sept. 28, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Garcia to 120 months on each count of conviction to beserved concurrently. The sentence will be immediately followed by five years of supervised release.
In 2012, Garcia was convicted of a federal felony narcotics charge. Following his release from prison, he was to serve three years of supervised release. When he failed to follow all of the conditions of that release a warrant was issued for his arrest.
On May 6, 2015, members of the U.S. Marshals Service (USMS) - Violent Fugitive Task Force attempted to serve that warrant and observed him driving a silver Ford pickup in Corpus Christi. The Corpus Christi Police Department (CCPD) pulled in behind Garcia’s vehicle and activated their emergency lights, at which time Garcia accelerated and attempted to evade the officers. A high speed chase ensued. Garcia eventually left the roadway and his pickup became stuck in loose sand. When he was taken into custody, Garcia had a pair of “brass knuckles” in his pocket and officers observed a Lorcin pistol behind the center console within easy reach of the driver’s seat. Officers also discovered several small plastic bags containing methamphetamine inside the truck.
Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation by CCPD, Bureau of Alcohol, Tobacco, Firearms and Explosives, USMS and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Robert D. Thorpe Jr.
Former Oklahoma State Senator Sentenced to over 3 Years for $1.8 Million in Wire Fraud and Tax EvasionRead the Press Release
TULSA, Okla.—Former Oklahoma State Senator Ricky L. Brinkley was sentenced today to serve 37 months in federal prison for fraudulently obtaining over $1.8 million dollars from the Better Business Bureau and for tax evasion. In addition to the prison term, United States District Court Judge Claire V. Eagan ordered Brinkley to pay $1,829,033.86 representing proceeds of the wire fraud scheme.
United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma; FBI Special Agent in Charge Scott L. Cruse of the Oklahoma City Division; IRS-Criminal Investigation Special Agent in Charge R. Damon Rowe of the Dallas Field Office; and Oklahoma State Bureau of Investigation Director Stan Florence made the announcement.
“Today’s sentencing is the result of a joint effort by the U.S. Attorney’s Office, the FBI, the IRS-CI, and the OSBI, to ensure that justice was served. The former senator will now face the consequences of his actions for betraying the public’s trust that was placed in him,” said U.S. Attorney Williams. “My office will vigorously pursue and hold public officials accountable by seeking criminal charges when the facts and the law support it. I commend our law enforcement partners for their investigative work, and the Assistant U.S. Attorneys who successfully prosecuted the case.”
“I am pleased with the final result in the sentencing of Ricky L. Brinkley and want to express my sincere gratitude to U.S. Attorney Danny Williams and his team of prosecutors whose professionalism and hard work ensured that justice was served in this matter. I also want to thank Director Stan Florence of the Oklahoma State Bureau of Investigation as well as SAC R. Damon Rowe of the Criminal Investigation Division of the Internal Revenue Service for the cooperative spirit in which they joined with the FBI in the investigation of this important case,” stated FBI Special Agent in Charge Cruse. “It is our hope that Ricky Brinkley’s sentencing will serve as a warning to anyone who may be thinking about padding their income by stealing from their employer. There are consequences for criminal activities of this nature and we will continue to work closely with all of our law enforcement partners to catch these criminals and bring them to justice.”
“Unfortunately, we continue to see the public’s confidence in the tax system shaken by individuals such as Mr. Brinkley, who apparently feel they can operate above the law, and skip out on paying their fair share of income taxes,” stated IRS-CI Special Agent in Charge Rowe. “Investigating and prosecuting cases involving fraudulent income tax return filing is a vital part of IRS’ enforcement strategy. All income, including embezzled money, is taxable. The Better Business Bureau was not Mr. Brinkley’s personal piggy bank, and today's sentence sends a positive message to honest taxpayers—a reminder that the justice system works, and that filing a false tax return is a crime that will be punished.”
On August 20, 2015, Brinkley, 54, of Owasso, Oklahoma, pleaded guilty to five-counts of wire fraud and one-count of subscribing to a false tax return. Brinkley represented the 34th District, including Owasso, Collinsville, Skiatook, Sperry, Turley, and Tulsa.
From August 2, 1999 to April 26, 2015, Brinkley was employed as the President and Chief Executive Officer and then the Chief Operations Officer of the Better Business Bureau. During his employment, Brinkley was responsible for the operation, accounting, and financial management including paying bills and signing checks on behalf of the Better Business Bureau.
From November 2005 to February 2015, Brinkley diverted in excess of $1.2 million dollars through the creation of fraudulent invoices for services not rendered, and improperly represented these invoices as reimbursement for legitimate expenses. He fraudulently signed checks, transferred, used, and disbursed funds to pay personal expenses and debts including mortgage payments, expenses for pool cleaning services at his home, and his personal American Express, Discover, and Visa cards.
Furthermore, Brinkley used his employer’s credit card to make cash withdrawals at automated teller machines located within casinos to support his gambling habit and he would also create and process for payment false invoices using company funds for payment.
In addition, Brinkley failed to report approximately $165,625 in income for tax year 2013 to the Internal Revenue Service.
The case was investigated by the FBI, the IRS-Criminal Investigation, and the OSBI; and prosecuted by Assistant United States Attorneys Clinton J. Johnson, Shannon Cozzoni, and Catherine Depew.
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Former Department of Veterans Affairs Nurse Sentenced to 60 months in prison for Altering and Falsifying VA Computer RecordsRead the Press Release
Enrique Martinez Mathews, a former Registered Nurse at Veteran Affairs (VA) Medical Center Miami, was sentenced on March 2, 2016, to 60 months in prison after previously pleading guilty to altering and falsifying VA Computer Records (obstruction and computer related fraud), in violation of Title 18, United States Code, Sections 1519 and 1030.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division (VA OIG), made the announcement.
According to the court record, Martinez interfered with an internal investigation at the VA Medical Center Miami. The internal investigation related to the death of a veteran in Martinez’s care. The internal investigation revealed that Martinez altered VA patient records of the veteran under his care, while the patient recovered in the Surgical Intensive Care Unit at the VA in Miami. The defendant’s actions caused appropriate medical treatment to be withheld from the veteran, who later passed away. Martinez then altered additional records in an attempt to conceal his actions.
U.S. Attorney Wifredo Ferrer stated, “Protecting our veterans is a national concern. Together with our partners at the Veterans Affairs Administration, the U.S. Attorney’s Office will identify for prosecution those individuals who compromise the personal information and potential safety and security of our citizens.”
Special Agent in Charge Monty Stokes said, “This investigation represents the VA OIG’s commitment to investigate obstruction as well as alterations of medical records that needlessly compromise veterans’ care and subject them to harm. We will continue to vigorously investigate employees whose actions corrupt the integrity of VA’s health care records relied upon by VA clinicians who treat our nation’s heroes.”
Mr. Ferrer commended the investigative efforts of the VA OIG. The case was prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and Jonathan Kobrinski.
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.
Final Defendant Pleads Guilty in Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
The final defendant pled guilty in a stolen identity tax refund fraud scheme involving student financial services accounts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Delany De-Leon Colon, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Emmanuel Avrilien, 23, of Miami, pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of theft of government money, in violation of Title 18, United States Code, Section 641. The defendant was remanded into custody after his guilty plea was accepted by the Court.
Co-defendants Andy Lamour, 22, Tamica Smith, 26, Marie Joseph, 25, and Gerrey Cherrelus, 22, all of Miami, each previously pled guilty to the same two charges, and Sandy Jean-Louis, 21, of Miami, previously pled guilty to the conspiracy charge. All of the co-defendants have been sentenced. As part of their plea agreements, Avrilien, Lamour, Smith, Joseph, Cherrelus and Jean-Louis agreed to pay restitution in the amounts of $98,481.00, $26,172.00, $17,395.00, $22.399.00, $13,242.00, and $28,561.63, respectively.
According to court documents, Lamour, Cherrelus and Jean-Louis were students at Miami Dade College; Avrilien, Lamour, Smith and Joseph were employees of a Target Store. From April 17, 2012 to January 24, 2013, the defendants participated in a tax fraud scheme where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. and/or Citibank accounts. Avrilien paid the other defendants for allowing their accounts to receive the stolen tax refunds, and directed Lamour to recruit other Target Store employees and Miami Dade College students to participate in the scheme.
Court documents also state that Avrilien and unknown co-conspirators filed a total of 145 fraudulent tax returns which directed the tax refunds to be deposited into one of the other defendant’s accounts. After the tax refunds were deposited into a defendant’s account, that defendant withdrew the money from the account at ATMs or through counter withdrawals.
Sentencing for Avrilien is scheduled for May 19, 2016 at 10:30 a.m. before Chief Judge K. Michael Moore. At sentencing, the Avrilien faces up to five years in prison for the conspiracy charge, and up to ten years in prison for the theft of government money charge.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to USPIS, IRS-CI, and the FBI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
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.
Federal Jury Convicts Four West Coast Crips Street Gang Members of Racketeering Conspiracy Involving Murders, Sex Trafficking and RobberyRead the Press Release
For Further Information, Contact Assistant U.S. Attorneys Todd Robinson (619) 546-7994 and David Leshner (619) 546-7921
NEWS RELEASE SUMMARY – March 11, 2016
SAN DIEGO, CA – Four members of the West Coast Crips criminal street gang were convicted by a federal jury today of participating in a racketeering enterprise involving execution-style murders, a takeover robbery, witness intimidation and other acts of violence.
The jury found defendants Terry Carry Hollins, Jermaine Gerald Cook, Marcus Anthony Foreman and Wilbert Ross guilty of Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity at the conclusion of a five-week trial and about eight hours of deliberations. The jury also found Ross guilty of two counts of sex trafficking. U.S. District Judge Dana M. Sabraw set sentencing for June 24, 2016 at 1 p.m. The defendants face up to life in prison.
The four convicted defendants were arrested and charged in 2014 as part of a larger investigation involving 36 other defendants. Thirty-four have pleaded guilty. One, Cleotha Young, went to trial in June 2015, was convicted by a jury and sentenced to 20 years in prison. The lead defendant, Randy Graves, is set for trial on March 28, 2016.
“As a result of today's verdicts, and the dozens of guilty pleas that preceded them, these ruthless and ultra-violent gang members will likely serve decades in prison, unable to further terrorize San Diego neighborhoods,” said U.S. Attorney Laura Duffy. “Today, Hollins, Cook, Foreman and Ross were held accountable for executing their friends, random people, and anyone else who dared to challenge them. With this verdict, the jury has said, ‘Enough!’”
"Today's convictions are an example of the FBI's commitment to working with our law enforcement partners in identifying, disrupting and dismantling violent street gangs that prey upon the vulnerable and threaten the safety of our communities" commented FBI Special Agent in Charge, Eric S. Birnbaum. "The FBI and our partners will continue to aggressively investigate and prosecute those who victimize our communities and undermine the safety and security of our neighborhoods.”
The federal racketeering statute known as “RICO” historically has been used to prosecute mobsters and organized crime, but federal prosecutors have been using the statute on street gangs in recent years because the gangs are increasingly acting as organized criminal enterprises.
During this trial, prosecutors set out to show the jury how the defendants worked together as a criminal enterprise to commit six murders, to use a 15-year-old girl and another female as prostitutes, and to commit robbery on behalf of the West Coast Crips.
The government called about 100 witnesses, including several street gang members, a shooting victim, friends and associates of the defendants, representatives from the Medical Examiner’s Office and dozens of San Diego Police Department homicide and gang detectives, police officers and criminalists.
The evidence presented by the government included court-authorized wiretap interceptions and recordings of telephone, cell phone and jailhouse conversations between the defendants and others, as well as cell phone videos of the defendants celebrating their West Coast Crips membership and discussing the crimes they were committing.
The jury found that the defendants acted as a criminal enterprise to commit the following murders and other violent acts:
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Defendant Cook fatally shot Joseph Hutchins, a 19-year-old who was fatally shot while riding his bicycle down Orange Avenue for wearing a red shirt, the color of a rival gang.
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Defendant Foreman approached the victim, Andres Caldera, asked for a cigarette then issued a gang challenge to him: “Where are you from?” When Caldera answered by asking where Foreman was from, Foreman yelled, “I am from West Coast 30s!” and pulled out a .40-caliber handgun, firing a single shot at Caldera’s face.
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Foreman, Ross and Hollins robbed a Logan Heights business in takeover style, forcing employees onto the floor and holding guns to their heads. During a police chase, the trio ditched their getaway car and the gun, but officers arrested all three and recovered the gun - which was the same gun used in the murder of Caldera.
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West Coast Crip member Meashal Fairley was murdered in front of a San Diego nightclub because of Fairley’s suspected cooperation with law enforcement. Hollins and Cook were connected to the scene of the crime through DNA evidence.
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Another killing occurred in the parking lot of a fast food restaurant. Defendant Ross had a dispute with a man over a rental car. They set up a meeting at the restaurant, supposedly to resolve the dispute. But upon arrival, the man was attacked by a group of West Coast Crips led by Ross. In self-defense, the man fatally stabbed one of his attackers, Jeffrey “JJ” Rees.
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West Coast Crips member Paris Hill was murdered by fellow Crips for giving a statement to police about the Rees murder. In one recording, Hollins told his cellmates: “That's how we did the boy…When it was time . . . I seen it all in his face . . . but cuz blue, he was a gangster though. And he
knew that . . . it was his doing.” Prosecutors argued before the jury that this was an admission that he participated in Hill’s murder.
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Chyrene Borgen, a West Coast Crip associate, was gunned down at a Halloween party after she had criticized the defendants for murdering Meashal Fairley. Following this murder, several defendants posted photos of themselves on Facebook from the murder scene. Defendant Hollins is wearing a T-shirt that said: “3 BABIEZ, YELLOW TAPE GANG, ANYBODY KILLA.” The defendants appeared on cell phone videos boasting about their crimes.
This case was prosecuted by Assistant U.S. Attorneys Todd Robinson, David Leshner, Jose Castillo and Stephen Wong.
These guilty verdicts are the fruit of the collaborative work of the FBI’s East County Regional Gang Task Force and the Violent Crimes Gang Task Force, the San Diego Police Department’s gang and homicide units; the ATF; the El Cajon Police Department; the La Mesa Police Department; San Diego County Probation; the IRS; U.S. Postal Inspectors; the San Diego County Sheriff’s Department; and the California Highway Patrol.
This investigation was coordinated by an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was created to consolidate and coordinate all law enforcement resources in this country's
battle against major drug trafficking rings, drug kingpins, and money launderers.
DEFENDANTS
Case Number: 14mj1494
Terry Carry Hollins Age: 33 San Diego
Jermaine Gerald Cook Age: 31 San Diego
Marcus Anthony Foreman Age: 28 San Diego
Wilbert Ross Age: 32 Chula Vista
SUMMARY OF CHARGES
All Defendants:
Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity, in violation of Title 18, U.S.C. Section 1962 (d)
Maximum Penalty, based on the underlying racketeering crimes: Up to life in prison.
Defendant Ross:
Sex Trafficking of a Minor, in violation of 18 USC 1591
Maximum Penalty: Life in prison
Sex Trafficking by Force, Fraud or Coercion, in violation of 18 USC 1591
Maximum Penalty: Life in prison
INVESTIGATING AGENCIES
San Diego Police Department Gang and Homicide Units
East County Regional Gang Task Force
Violent Crimes Task Force - Gang Group
Task Force agencies include:
FBI
San Diego Police Department
ATF
El Cajon Police Department
La Mesa Police Department
San Diego County Probation
IRS
U.S. Postal Inspectors
San Diego County Sheriff’s Department
California Highway Patrol.
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Federal Jury Convicts Boise Man of Possession with Intent to Distribute Marijuana and Unlawful Possession of a FirearmRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Shaun McNabb, 35, of Boise, Idaho, was convicted by a federal jury of possession of a controlled substance with intent to distribute and unlawful possession of a firearm. McNabb was charged by a superseding indictment on February 23, 2016.
According to the evidence presented at trail, on December 25, 2014, a Boise Police officer observed McNabb driving early in the morning and believed he was driving on a suspended license.McNabb pulled into a Shell gas station without signaling and the officer initiated a traffic stop. Before the officer could exit his patrol vehicle, McNabb had already got out of his vehicle, and refused the officer’s repeated commands to get back into his vehicle. McNabb was placed under arrest for driving without privileges and resisting or obstructing officers.A drug dog later gave a positive alert for the presence of drugs within the vehicle. The vehicle was then searched, where the officer located a grey backpack in the trunk. In the backpack the officer found a 45 caliber handgun, a magazine containing ten 45 caliber rounds, one loose 45 caliber round, a digital scale, and two large vacuum sealed bags containing more than one pound of marijuana. Because McNabb had previously been convicted of a felony, he was prohibited from possessing firearms under federal law.
McNabb is set for sentencing on June 1, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. For possession of marijuana with intent to distribute, McNabb faces not more than five years in prison, a maximum fine of $250,000, and at least two years of supervised release. For unlawful possession of a firearm, McNabb faces not more than 10 years, in prison, a maximum fine of $250,000, and not more than three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boise Police Department.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Federal Jury Convicts A Serial Convenience Store RobberRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Joshua Anthony Rivera (28, Orlando) guilty of interfering with interstate commerce by robbery, brandishing a short-barreled shotgun in the course of committing those robberies, and possessing a firearm as a convicted felon. He faces a mandatory minimum term of 35 years, up to life, in federal prison. A sentencing hearing is scheduled for June 1, 2016. Rivera was indicted on August 26, 2015.
According to evidence presented at trial, between June 7 and June 17, 2015, Rivera robbed three convenience stores and a grocery store using a short-barreled shotgun. During the trial, victims of those robberies testified about their terrifying experiences, including one father whose young daughter had been with him during the robbery. In addition, surveillance videos revealed that the robber had worn some of the same articles of clothing during multiple robberies, particularly the same pair of athletic shoes. Trial evidence also showed that Rivera had used the same short-barreled shotgun during each robbery, and also had used the same Ford Expedition during at least two of the robberies.
When law enforcement officers arrested Rivera at his hotel, shortly after the last robbery, they found articles of clothing, the short-barreled shotgun, the Ford Expedition, and several other items matching those used during the robberies.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Plant City Police Department, the Manatee County Sheriff’s Office, and the Pasco County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Taylor G. Stout.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the March 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Rodney Mark Aguirre. Felon in Possession of Firearms and Ammunition. Aguirre, 27, of Tulsa, is charged with possession of firearms including shotguns and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. In addition, he would forfeit the firearms involved in the firearm offense. The Drug Enforcement Administration is the investigating agency.
Gary Dewayne Benedict. Felon in Possession of Firearms. Benedict, 44, of Broken Arrow, is charged with possession of firearms after prior felony convictions. If convicted, he faces the statutory maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Jeffrey Scott Bruce. Bank Robbery. Bruce, 51, is charged with robbing Arvest Bank in January 2016. If convicted, he faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the case.
Michelle Ranee Krafft. Possession with Intent to Distribute Methamphetamine and Possession with Intent to Distribute Marijuana. Krafft, 35, of Owasso, is charged with possession with intent to distribute methamphetamine and marijuana. If convicted, she faces the statutory maximum penalty of 20 years in prison and a $1,000,000 fine for possession with intent to distribute methamphetamine and the statutory maximum penalty of five years in prison and a $250,000 for possession with intent to distribute marijuana. In addition, she faces the forfeiture of drug proceeds and property used to facilitate the drug offenses. The Owasso Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives were the investigating agencies.
William Jeffrey Johnson Jr. Coercion and Enticement, Sex Trafficking of Children, and Interstate Trafficking and Racketeering. Johnson Jr., 26, of Midwest City, Oklahoma, is charged with enticing and recruiting a girl, whom he believed to be 15 years old, to engage in prostitution. If convicted, he faces the statutory minimum penalty of 10 years in prison and a $250,000 fine for coercion and enticement and sex trafficking of children charges; and a statutory maximum penalty of five years in prison and a $250,000 fine for the interstate trafficking and racketeering charge. The Tulsa Police Department is the investigating agency.
Miguel Lara-Rodriguez. Reentry of Removed Alien. Lara-Rodriguez, 37, is charged with having returned to the United States unlawfully after being deported in October 2004 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Juan Carlos Ramirez-Saldiva. Reentry of Removed Alien. Ramirez-Saldiva, 41, is charged with having returned to the United States unlawfully after being deported in July 2006 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jesus Juan Rosales, Sergio Yanez, Jose Luis Rodriguez-Almader, Ivan Jimenez, Eddy Alejandro Hernandez, Margarita Solis Rodriguez, Romeo Flores, and Andres Rubio. Drug Conspiracy Rosales, 35, of Bixby; Yanez, 30, of Broken Arrow; and Rodriguez-Almader, 27, Jimenez, 34, Hernandez, 27, Rodriguez, 35, Flores, 31, and Rubio, 26, all of Tulsa, are charged with conspiracy to possess with intent to distribute 500 grams or more of cocaine and 500 grams or more of methamphetamine. If convicted, the statutory minimum penalty is 10 years and a maximum penalty of life in prison, and a $10,000,000 fine. In addition, the defendants face a criminal forfeiture money judgment representing proceeds of the drug conspiracy, and forfeiture of seized currency. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigating agencies.
Luis Ernesto Saldana-Plaza. Reentry of Removed Alien. Saldana-Plaza, 32, is charged with having returned to the United States unlawfully after being deported in August 2007 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Rodrigo Segovia-Barraza. Reentry of Removed Alien. Segovia-Barraza, 30, is charged with having returned to the United States unlawfully after being deported in September 2013 from Eagles Pass, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Marcos Suazo-Otero. Reentry of Removed Alien. Suazo-Otero, 40, is charged with having returned to the United States unlawfully after being deported in March 2009 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
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Evgeny Buryakov Pleads Guilty in Manhattan Federal Court in Connection with Conspiracy to Work for Russian IntelligenceRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that EVGENY BURYAKOV, a/k/a “Zhenya,” pled guilty today to conspiring to act in the United States as an agent of the Russian Federation, without providing prior notice to the Attorney General.
U.S. Attorney Preet Bharara said: “An unregistered intelligence agent, under cover of being a legitimate banker, gathers intelligence on the streets of New York City, trading coded messages with Russian spies who send the clandestinely collected information back to Moscow. This sounds like a plotline for a Cold War-era movie, but in reality, Evgeny Buryakov pled guilty today to a federal crime for his role in just such a scheme. More than two decades after the end of the Cold War, Russian spies still seek to operate in our midst under the cover of secrecy. But in New York, thanks to the work of the FBI and the prosecutors in my office, attempts to conduct unlawful espionage will not be overlooked. They will be investigated and prosecuted.”
Assistant Attorney General John P. Carlin said: “Evgeny Buryakov pleaded guilty to covertly working as a Russian agent in the United States without notifying the Attorney General. Foreign nations who attempt to illegally gather economic and other intelligence information through espionage pose a direct threat to U.S. national security. The National Security Division will continue to work with our law enforcement partners to identify and hold accountable those who illegally operate as covert agents within the United States.”
According to the Complaint, the Indictment, other court filings, and statements made during court proceedings:
Beginning in 2012, bURYAKOV worked in the United States as an agent of Russia’s foreign intelligence agency, known as the “SVR.” BURYAKOV operated under “non-official cover,” meaning he entered and remained in the United States as a private citizen, posing as an employee in the Manhattan office of a Russian bank, Vnesheconombank, also known as “VEB.” SVR agents operating under such non-official cover – sometimes referred to as “NOCs” – typically are subject to less scrutiny by the host government, and, in many cases, are never identified as intelligence agents by the host government. As a result, a NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the United States Attorney General. Department of Justice records indicate that BURYAKOV never notified the United States Attorney General that he was, in fact, an agent of the Russian Federation.
BURYAKOV worked in New York with at least two other SVR agents, Igor Sporyshev and Victor Podobnyy. From November 22, 2010, to November 21, 2014, Sporyshev officially served as a trade representative of the Russian Federation in New York. From December 13, 2012, to September 12, 2013, Podobnyy officially served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. The investigation, however, showed that Sporyshev and Podobnyy also worked as officers of the SVR. For their roles in the charged conspiracy, Sporyshev and Podobnyy were charged along with BURYAKOV in January 2015. However, Sporyshev and Podbonyy no longer lived in the United States and thus were not arrested.
BURYAKOV’s Co-Conspirators Are Recorded Inside the SVR’s New York “Residentura”
During the course of the investigation, the FBI recorded Sporyshev and Podobnyy speaking inside the SVR’s offices in New York, known as the “Residentura.”
The FBI obtained the recordings after Sporyshev attempted to recruit an FBI undercover employee (“UCE-1”), who was posing as an analyst from a New York-based energy company. In response to requests from Sporyshev, UCE-1 provided Sporyshev with binders containing purported industry analysis written by UCE-1 and supporting documentation relating to UCE-1’s reports, as well as covertly placed recording devices. Sporyshev then took the binders to, among other places, the Residentura.
During subsequent recorded conversations, Sporyshev and Podobnyy discussed, among other things, Sporyshev’s SVR employment contract and his official cover position, their work as SVR officers, and the FBI’s July 2010 arrests of 10 SVR agents in the United States, known as the “Illegals.”
Sporyshev and Podobnyy also discussed BURYAKOV’s prior service with the SVR in South Africa. BURYAKOV worked in South Africa between approximately 2004 and 2009, officially as a representative of VEB. During a conversation about Sporyshev’s cover position in New York, Podobnyy related that, when BURYAKOV was working in South Africa, he had dinner with an SVR official and BURYAKOV’s supervisor at VEB and that, during the dinner, the SVR official told the VEB official that BURYAKOV was an “employee of the Service,” i.e., the SVR.
Further, Sporyshev and Podobnyy were recorded discussing, among other things, their (i) attempting to recruit New York City residents as intelligence sources for Russia; (ii) tasking BURYAKOV to gather intelligence; and (iii) transmitting intelligence reports prepared by BURYAKOV back to SVR headquarters in Moscow.
The directives from the SVR to BURYAKOV, Sporyshev, and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential United States sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
BURYAKOV’s Intelligence Taskings
Sporyshev was responsible for relaying intelligence assignments from the SVR to BURYAKOV.
BURYAKOV Drafts a Proposal for the SVR’s “Active Measures Directorate”
In May 2013, Sporyshev and Podbonyy were recorded discussing a proposal that BURYAKOV had drafted about a planned deal in which Bombardier Aircraft Company (“Bombadier”) in Canada would manufacture certain airplanes in Russia. Sporyshev noted that Canadian “unions were resisting” and that BURYAKOV’s “proposal [was] for MS” – the SVR’s Active Measures Directorate – to “pressur[e] the unions and secur[e] from the company a solution that is beneficial to us.” Other evidence developed during the investigation showed that, around the time of this conversation, BURYAKOV had conducted Internet searches relating to Bombardier and labor unions and, earlier, had obtained news articles regarding the planned deal and also attended a conference in Canada that Bombardier personnel also attended.
BURYAKOV Assists Sporyshev in Attempting to Obtain Sensitive Information About the New York Stock Exchange
Also, on May 21, 2013, Sporyshev called BURYAKOV, greeted him, and then described a tasking from “top sources” relating to three questions that ITAR-TASS, a Russian news agency, could put to the New York Stock Exchange. Sporyshev called the defendant back approximately 20 minutes later. During the call, BURYAKOV proposed questions regarding (i) exchange traded funds (ETFs), including the “mechanisms of their use to destabilize the market;” (ii) “curbing of trading robot activities;” and (iii) “technical parameters” and “other regulations directly related to the exchange.” On July 8, 2013, a purported “bureau chief” for ITAR-TASS sent an email to an employee of the New York Stock Exchange that parroted the questions that BURYAKOV proposed to Sporyshev.
BURYAKOV Assists Sporyshev in Analyzing the Effect of Sanctions
Another example of an intelligence tasking occurred in late March 2014. Specifically, on March 28, 2014, Sporyshev was recorded telling BURYAKOV that Sporyshev needed help researching the “effects of economic sanctions on our country,” among other things. A few days later, on April 2, 2014, Sporyshev called BURYAKOV and stated, in an intercepted conversation, that he had not seen BURYAKOV in a while, and asked to meet BURYAKOV outside VEB’s office in Manhattan in 20 minutes. A court-authorized search of BURYAKOV’s computer at VEB revealed that, at around the time of this telephone call, BURYAKOV conducted the following internet searches: “sanctions Russia consiquences” [sic] and “sanctions Russia impact.”
Two days later, on April 4, 2014, BURYAKOV called Sporyshev and, in an intercepted conversation, stated that he (BURYAKOV) “wrote you an order list,” and suggested that they meet. Approximately 20 minutes later, Sporyshev met BURYAKOV in the driveway of BURYAKOV’s home. Their encounter, which was captured by a video surveillance camera located near BURYAKOV’s residence, lasted approximately two minutes. On the video footage, the defendants appeared to exchange a small object.
Clandestine Meetings and Communications
During the course of their work as covert SVR agents in the United States, BURYAKOV, Sporyshev, and Podobnyy regularly met and communicated using clandestine methods and coded messages, in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. These efforts were designed, among other things, to preserve their respective covers as an employee of VEB (BURYAKOV), a trade representative of the Russian Federation in New York (Sporyshev), and an attaché to the Permanent Mission of the Russian Federation to the United Nations (Podobnyy).
During the investigation, the FBI intercepted numerous calls between BURYAKOV and Sporyshev in which one of the men told the other that he needed to meet for some purpose, such as to transfer an item (such as a “ticket,” “book,” or “list,”) or for a purported social purpose. In fact, BURYAKOV and Sporyshev used this coded language to signal that they needed to exchange intelligence information.
FBI surveillance revealed that, at some of these meetings between BURYAKOV and Sporyshev, they exchanged documents or other small items. Notably, despite discussing on approximately a dozen occasions the need to meet to transfer “tickets,” BURYAKOV and Sporyshev were – other than one occasion where they discussed going to a movie – never observed attending, or discussing in any detail, events that would typically require tickets, such as a sporting event or concert.
BURYAKOV’s Receipt of Purported Official United States Government Documents
In the summer of 2014, BURYAKOV met multiple times with a confidential source working for the FBI (“CS-1”) and an FBI undercover employee (“UCE-2”). Both CS-1 and UCE-2 purported to be working on a casino development project in Russia.
During a conversation recorded on July 22, 2014, Sporyshev warned BURYAKOV that meeting with UCE-2 might be a “trap” but authorized BURYAKOV to go ahead so he could make a better assessment.
During the course of the subsequent meetings, and consistent with his interests as a Russian intelligence agent, BURYAKOV demonstrated his strong desire to obtain information about subjects far outside the scope of his work as a bank employee. During these meetings, BURYAKOV also accepted documents that were purportedly obtained from a U.S. government agency and which purportedly contained information potentially useful to Russia, including information about United States sanctions against Russia.
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BURYAKOV, 41, pled guilty to one count of conspiring to act in the United States as an agent of the Russian Federation without providing notice to the Attorney General, which carries a maximum sentence of five years. This statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the judge.
BURYAKOV will be sentenced on May 25, 2016, at 11:00 a.m.
U.S. Attorney Bharara praised the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III, Brendan F. Quigley, and Stephen J. Ritchin of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance provided by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
East St. Louis Man Pleads Guilty to Conspiring to Commit Sex Trafficking of Children by Force, Fraud, and Coercion and to Sex Trafficking of A Child by Force, Fraud, and CoercionRead the Press Release
Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today, that Michael Johnson of East St. Louis, Illinois pled guilty in federal district court to one count of conspiracy to commit sex trafficking of children by force, fraud, and coercion and three counts of child sex trafficking by force, fraud, and coercion. Johnson was detained, that is, held without bond, pending sentencing, which is scheduled for July 26, 2016, at 9:30 AM before the Honorable Staci M. Yandle, United States District Judge. At sentencing, Johnson faces any term of imprisonment or life imprisonment on the conspiracy count, followed by a minimum of five years on supervised release. Johnson faces a mandatory minimum sentence of fifteen (15) years imprisonment up to life imprisonment on the three counts of sex trafficking of a child by force, fraud, and coercion, followed by a minimum of five years on supervised release. In addition to a term of imprisonment, Judge Yandle could impose a fine of up to $250,000 per count. The Court will also impose a special assessment fee of $100 per count.
Facts revealed in open court showed that in approximately April 2009, Johnson agreed with a coconspirator to operate a prostitution business. Sometime after that point but from at least approximately December 2009 and continuing through July 2013, Johnson began recruiting enticing, and obtaining more women to work in his business, including four minor victims. Johnson recruited two of the minors from the East St. Louis, IL area while they were homeless. He recruited the other two minors over a chat line and over the internet. Johnson used fear, threats of physical harm, actual physical harm, lies, and verbal manipulation to cause the minor victims to engage in sex intercourse or other sex acts for money. Johnson and his coconspirator photographed the minors and created advertisements offering their services in the escorts section of Backpage.com. Three of the victims turned over all of the cash to Johnson and the fourth turned over a portion. Johnson knew or was aware of, but carelessly disregarded how old the minor victims actually were. The youngest of the four minor victims began working for Johnson when she was 15 years old.
The case was investigated by the Federal Bureau of Investigation Springfield Division and members of the FBI’s Child Exploitation Task Force in Fairview Heights. Assistant United States Attorney Monica A. Stump is prosecuting 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 the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Drunk Driver Convicted of Involuntary Manslaughter in Fatal Baltimore-Washington Parkway Car CrashRead the Press Release
Greenbelt, Maryland – A federal jury convicted Charles Jerome Wiggins, age 25, of Cottage City, Maryland, late yesterday of two counts of involuntary manslaughter and reckless driving.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to evidence presented at the three day trial, on December 12, 2013 at 2 a.m., Wiggins was driving a car on the Baltimore-Washington Parkway. His wife, Kiana Wiggins, who had turned 34 that day, was in the front passenger seat, and his sister-in-law, Angel Barbour, age 21, was sitting in the back behind her. His sister-in-law’s boyfriend was also sitting in the back seat. Wiggins rear-ended a pickup truck that was driving in the same direction. The truck went into the woods, and Wiggins’s car flipped over and skidded on its roof more than 200 feet. The two women were killed. Wiggins was found to have a blood alcohol level of .19%.
Wiggins faces a maximum sentence of sixteen years in prison for the two involuntary manslaughter counts, and six months in prison for reckless driving. U.S. District Judge George J. Hazel has scheduled sentencing for June 21, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Conor Mulroe, of the U.S. Department of Justice, who prosecuted the case.
Daughter of Former Federal Employees Pleads Guilty to Stealing over $700,000 in Retirement BenefitsRead the Press Release
WASHINGTON – Stephanie Carethers, 47, of Capitol Heights, Md., pled guilty today to a charge of first-degree theft for taking approximately $702,000 in federal retirement pension benefits after her mother’s death, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Acting Inspector General for the U.S. Office of Personnel Management (OPM).
Carethers pled guilty in the U.S. District Court for the District of Columbia. She is to be sentenced on June 16, 2016, at 10:00 a.m., by the Honorable Colleen Kollar-Kotelly. Under the District of Columbia’s voluntary sentencing guidelines, she faces a possible sentence of six to 24 months of incarceration. Carethers also has agreed to pay restitution in an amount of $702,949.
According to the statement of the offense, signed by the defendant, OPM manages pension benefits for retired employees of the United States government. The Civil Service Retirement System (CSRS) is a retirement system covering federal employees who entered covered federal service before Jan. 1, 1987. Upon retirement from civil service, the federal employees covered by CSRS become CSRS annuitants and are entitled to CSRS benefits throughout their lifetimes. In addition, a CSRS annuitant has the option to elect a survivor benefit for his/her spouse; if selected, a spousal benefit allows for the annuitant’s surviving spouse to continue to receive a reduced amount of benefits throughout the spouse’s lifetime.
OPM pays retirement annuity benefits to the retired federal government employee only during his/her lifetime; payments cease upon the employee’s death. OPM pays survivor annuity benefits to the annuitant’s spouse only during his/her lifetime; payments cease upon the spouse’s death.
The defendant’s mother worked for the federal government from 1941 to 1986. From 1941 to 1945, she worked for the Executive Office of the President for Emergency Management, and then worked for the U.S. State Department from 1945 to 1986. She died on April 23, 2001. The defendant’s father also worked for the U.S. government until his retirement in June 1986. He died on March 7, 2002, surviving his wife by about one year.
Although Carethers notified Maryland’s Division of Vital Records that her mother died, she did not notify OPM. Unaware of the death, OPM paid approximately $495,967 in retirement annuity benefits from 2001 until March 2010 by way of direct deposits into a SunTrust Bank savings account solely in the name of the defendant’s parents.
Although Carethers likewise notified Maryland’s Division of Vital Records that her father died on March 7, 2002, she did not notify OPM. However, OPM learned of his death and suspended his retirement annuity benefits in July 2002. Carethers subsequently called OPM’s Office of Retirement Programs, identifying herself as the daughter. She requested that survivor annuity benefits application forms be sent to her mother, not disclosing that her mother actually was deceased. She then caused an application to be sent to OPM fraudulently requesting survivor annuity benefits for her mother; the application contained the forged signature of her mother. Because her mother was deceased, she was not eligible for survivor annuity benefits. Based on this application and unaware of the death of the defendant’s mother, OPM paid approximately $206,982 in survivor annuity benefits. These payments were directly deposited into a SunTrust Bank checking account solely in the name of the defendant’s parents.
From 2001 to 2010, Carethers used the fraudulently obtained payments that OPM sent after her mother’s death to buy items and services for herself and others.
In announcing the plea, U.S. Attorney Phillips and Acting Inspector General Vint expressed appreciation for the work performed by Special Agents and analysts from OPM’s Office of Inspector General. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Cruise Ship Employee Sentenced to 10 Years for Drug SmugglingRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara today sentenced Desrick Gordon (23, St. Vincent and the Grenadines) to 10 years in federal prison for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine. The Court also ordered him to forfeit $53,369, which is traceable to proceeds of the offense. A jury found Gordon guilty on December 16, 2015.
According to evidence presented at trial, Gordon was part of a drug distribution ring that imported cocaine from Roatan, Honduras using cruise ship employees at several ports of call in the United States. Gordon, along with five other crewmen from Norwegian Cruise Line, received packages of cocaine from a source of supply in Honduras while the cruise ship was docked there. The packages ranged from 750 grams to a full kilogram of cocaine.
Once the ship had docked in Tampa, the crewmen gathered at a restaurant near the port to remove their secreted cocaine packages. They then met with two local drug traffickers, who had ties to the Honduran source of supply, to provide them with the packages of cocaine. The two local traffickers were stopped by law enforcement after leaving the Channelside District. Agents seized 10 packages of cocaine with a total weight of more than 7.5 kilograms. In addition, agents seized $53,369 from the crewmen.
“The strong sentencing in this case is the culmination of great investigative casework conducted by Homeland Security Investigations special agents and highlights our joint efforts with our many law enforcement partners to keep our communities safe by preventing criminals from transporting dangerous narcotics into our country,” said Susan L. McCormick, special agent in charge of HSI Tampa.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Gregory Nolan.
Convicted felon indicted on federal firearms chargeRead the Press Release
Evansville –United States Attorney Josh J. Minkler announced today that an Evansville man was indicted by a federal grand jury with being a felon in possession of a firearm. Jason E. Galloway, 38, was arrested by Evansville Police after being called to his former wife’s residence as a result of a domestic disturbance.
“Convicted felons have no right to carry a firearm in the state of Indiana,” said Minkler. “If someone chooses to willfully violate federal law, they will face serious consequences.”
According to a police report generated by the Evansville Police Department, police were called to the 1100 block of N. Main Street on January 21, 2016, on a domestic violence incident. When officers arrived, they spoke with Galloway’s former wife who stated Galloway had waived a gun around the house and threatened to shoot her. Officers found a stolen .22 caliber revolver in the house, loaded with eight rounds of ammunition. Galloway left before officers arrived but they found him behind a nearby gas station and placed him under arrest.
Galloway cannot legally possess a firearm because he has three felony convictions. The convictions include:
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Manufacturing methamphetamine, Henderson County, Kentucky, in 2000
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Criminal recklessness resulting in serious bodily injury, in Posey County, Indiana, 2010
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Battery by means of a deadly weapon, Vanderburgh County, Indiana, in 2013
This case was investigated by the Evansville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Assistant United States Attorney Kyle M. Sawa, who is prosecuting this case for the government, Galloway could face up to 10 years imprisonment if convicted.
Galloway had his initial appearance before Magistrate Judge Matthew P. Brookman and was remains in the custody of the United States Marshal Service. He has been in custody since his January arrest.
An indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Chicago Psychiatrist Who Took Kickbacks to Prescribe Mental Health Medication Sentenced to Nine Months in Federal PrisonRead the Press Release
CHICAGO — A Chicago psychiatrist was sentenced today to nine months in federal prison for accepting nearly $600,000 in fees and benefits from pharmaceutical companies in exchange for prescribing a medication to his patients.
DR. MICHAEL J. REINSTEIN prescribed the drug Clozapine to thousands of elderly and indigent patients in Chicago-area nursing homes and hospitals. In exchange for his efforts, the pharmaceutical companies provided Dr. Reinstein with consulting fees and entertainment expenses, including meals, tickets to sporting events, and all-expense-paid vacations. At one point in the early 2000s, Dr. Reinstein was the largest prescriber of the drug to Medicaid recipients in the United States.
Dr. Reinstein, 72, of Skokie, pleaded guilty last year to one count of violating the federal Medicare and Medicaid Anti-Kickback Statute. In addition to the nine-month sentence, U.S. District Judge Sharon Johnson Coleman also imposed forfeiture of $592,000, and ordered Dr. Reinstein to perform 120 hours of community service.
“Reinstein abused his position of public trust as a physician and took advantage of the faith and trust of his mentally ill patients in order to enrich himself,” Assistant U.S. Attorney Eric S. Pruitt argued in the government’s sentencing memorandum.
Clozapine is an anti-psychotic medication with potentially serious side effects, particularly for elderly patients. While Clozapine has been shown to be effective for treatment-resistant forms of schizophrenia, it is also known to cause a potentially deadly decrease in white blood cells, as well as seizures and inflammation of the heart muscle.
Dr. Reinstein has been a psychiatrist in the Chicago area since 1973, with an office in Chicago’s Uptown neighborhood. According to his plea agreement, he prescribed Clozaril, the brand-name version of Clozapine, long after less expensive, generic versions were available, because the manufacturer of Clozaril paid him thousands of dollars to promote the drug at speaking engagements.
After the deal with the brand-name manufacturer ended in 2003, Dr. Reinstein agreed to switch his patients to the generic version, but only after its manufacturers, Teva Pharmaceuticals USA Inc. and IVAX Pharmaceuticals LLC, agreed to pay him a consulting fee and finance a Clozapine research study performed by a Reinstein-affiliated entity. At Dr. Reinstein’s request, Teva also agreed to hire an individual whom Dr. Reinstein described as an important source of patient referrals. Between July 2006 and July 2011, Teva paid the individual approximately $112,000 to enter white blood cell data into a national Clozapine registry.
Reinstein previously agreed to pay the United States and the State of Illinois $3.79 million to settle a civil lawsuit. Teva and IVAX also paid the United States and the State of Illinois $27.6 million to settle civil allegations that they violated state and federal False Claims Acts.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.
The government is represented by Mr. Pruitt.
Businessman Convicted of Making False Statements to Bank to Secure over $750,000 in FundingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that CHARLES RICHARD BARBER, age 65, of Jackson, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to making false statements to a financial institution in order to secure over $750,000 in funding, in violation of Title 18, United States Code, Section 1014. As a result of his conviction, BARBER faces a term of imprisonment, a term of supervised release following imprisonment, a fine, a restitution order, and forfeiture of the proceeds of the fraud. The sentencing date has not yet been set.
During the guilty plea hearing, BARBER admitted to the following facts. In October 2014, BARBER worked for an entity that had an ownership interest in Hometown Credit of Jackson, a finance company that provided short-term loans to individuals. Hometown Credit was funded, in part, through a $750,235 line of credit with Highlands Bank. The collateral for the line of credit consisted of Hometown Credit’s loan portfolio. As a result, Highlands Bank had a vested interest in the value of that loan portfolio and required Hometown Credit to provide it with monthly reports about its loan portfolio as a condition for the line of credit.
To ensure continued access to the line of credit, BARBER admitted that he submitted false reports to Highlands Bank in order to hide the sharply declining value of Hometown Credit’s loan portfolio and thus ensure continued access to the line of credit. BARBER admitted further that his actions resulted in Highlands Bank losing approximately $590,000.
United States Attorney Green said: “Fraud against our banks, credit unions, and the financial industry threatens not just the financial institutions themselves, but also their customers, borrowers, employees, and the taxpayers. I commend our excellent partners with the FBI, the Louisiana Inspector General’s Office, and the Louisiana Office of Financial Institutions for their work on this important matter, along with the dedicated efforts of our prosecutors. Our office will continue to aggressively pursue such fraud regardless of its sophistication or complexity.”
This ongoing matter is being investigated by the Baton Rouge Resident Office of the Federal Bureau of Investigation and the Louisiana Inspector General’s Office, with the assistance of the Louisiana Office of Financial Institutions. It is being prosecuted by Assistant United States Attorneys René Salomon and Adam Ptashkin.
Broward Resident Convicted for his Participation in a Fraudulent Jamaica Based Lottery SchemeRead the Press Release
A Broward County resident pled guilty today for his role in a Jamaica based telemarketing fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Delany De-Leon Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Delroy Drummond, 26, of Broward County, pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Drummond is scheduled to be sentenced on May 31, 2016 at 1:15 p.m. by U.S. District Judge William P. Dimitrouleas. At sentencing, Drummond faces a maximum statutory sentence of up to twenty years in prison.
According to documents and information presented in Court, beginning in or about April 2015, Drummond’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Drummond.
In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of the fraudulent scheme. At that time, Drummond was confronted with the fact that he was participating in a lottery scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.
In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who had been falsely told he/she had won a $2.5 million lottery prize. Drummond used fraudulent identification in order to receive these funds. In May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed he/she had won a lottery prize. Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims located throughout the United States. As a result of the fraudulent scheme, the victims lost approximately $500,000.
Mr. Ferrer commended the investigative efforts of USPIS, Homeland Security Investigations, U.S. Marshal Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami Dade Police Department Economic Crimes Unit. The case is being prosecuted by Assistant United States Attorney Randy Katz.
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.
Brothers Sentenced in Meat Fraud CaseRead the Press Release
Jalel Aossey, age 41, and his brother Yahya Nasser Aossey, age 46, both of Cedar Rapids, Iowa, the former co-owners of Midamar Corporation (Midamar) and ISA, Inc. (d/b/a Islamic Services of America, Inc.), were sentenced in federal district court in Cedar Rapids, Iowa, today for their roles in a scheme to defraud customers and consumers of meat products sold by Midamar and certified by ISA as meeting certain international halal standards. The corporate entities owned by the Aosseys, and previously by their father, William B. Aossey, who founded the businesses, were sentenced in related cases on February 25, 2016.
Jalel Aossey, former president of Midamar, previously pleaded guilty to one count of conspiring to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud.
Jalel Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to serve 12 months and one day imprisonment and fined $30,000. In addition, he was ordered to pay a special assessment of $100. Aossey will be required to serve a three-year term of supervised release after the prison term and to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of that agreement and his plea agreement, Aossey was required to divest his interest in Midamar and to no longer be associated with the management or operations of Midamar.
Yahya Aossey previously pleaded guilty as a responsible corporate officer to two counts of selling, transporting, and offering for sale and transportation in commerce, meat and meat food products that were misbranded at the time of sale or transportation. As part of a plea agreement, prosecution on a conspiracy charge was deferred for a period of five years, subject to compliance with the terms of a pretrial diversion agreement.
Yahya Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to serve a three year term of probation and fined $5,000. In addition, he was ordered to pay a special assessment of $50. As part of his conditions of probation, Aossey was ordered to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of the consent decree and his plea agreement, Aossey will be permitted to continue as the owner and operator of Midamar. The consent decree also imposes several requirements on Midamar regarding corrective actions to guard against future violations.
William B. Aossey was previously sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 24 months imprisonment and fined $60,000. Aossey was also ordered to forfeit $184,983 representing proceeds of the fraud. In addition, he was ordered to pay costs of prosecution of $16,824 and a special assessment of $1,500.
Midamar was previously sentenced to pay a fine of $20,000 and ordered to forfeit $600,000. Midamar was also placed on probation for five years. As a special condition of probation, Midamar will be required to abide by all terms of a consent decree entered into with the USDA Food Safety Inspection Service. The consent decree requires Midamar to take a variety of corrective actions and to remove certain corporate officials, including Jalel Aossey and William B. Aossey, from the business. Midamar was also ordered to pay a special assessment of $400.
ISA was previously sentenced to pay a fine $60,000 and ordered to pay a special assessment of $400. ISA was also ordered to forfeit $600,000. The forfeiture judgment was ordered joint and several with Midamar. ISA must also abide by a 5 year term of probation.
“The United States Attorney’s Office, in conjunction with our law enforcement partners, is dedicated to curbing business fraud wherever it’s found,” said United States Attorney Kevin W. Techau following sentencing. “The public has a right to expect that domestic food products will be properly labeled and distributed in accordance with law. That was not done in this case. We will continue to pursue those who lie, cheat and steal from the public.”
“IRS Criminal Investigations is committed to unraveling complex financial transactions and schemes of this nature to assist our law enforcement partners,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigations. “The proceeds of illegal activity are used as fuel to continue their criminal conduct.”
Special Agent-in-Charge, Anthony Mohatt, USDA, Office of Inspector General Investigations, Midwest Region stated: “We greatly appreciate the efforts of the United States Attorney’s Office, and our investigative partners who worked tirelessly to bring to justice the corporations and individuals who engaged in a blatant, long-term pattern of activities designed to circumvent USDA regulations for financial gain. The results of this investigation highlight our agencies goal to strengthen USDA’s ability to implement and improve safety and security measures to protect the public health.”
The cases were prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy L. Vavricek and investigated by the United States Department of Agriculture Office of Inspector General Investigations and Internal Revenue Service Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are: 14-CR-00138-LRR (Jalel and Yahya Aossey); 14-CR-00116-LRR (William B. Aossey, Jr.); 14-CR-00138-LRR (Midamar & ISA).
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Armed Robber Sentenced to over 11 Years in Prison for Robbing Three Towson Businesses in a WeekRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Elbert Darell Crump, age 46, of Towson, Maryland, today to 135 months in prison followed by three years of supervised release for robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on January 14, 2015 Crump entered the Dollar Tree on Joppa Road in Towson, wearing a face mask. Crump pointed a semi-automatic handgun at a cashier and demanded money. Crump took cash out of the register drawer, a dollar from a nearby customer, and fled.
On January 20, 2015, Crump entered the Gino’s Burgers and Chicken Restaurant on LaSalle Road in Towson. Crump produced a firearm and demanded money from the employees. When the manager/employee had difficulty opening a cash register, Crump struck the manager in the head with the firearm, knocking him to the ground. Another employee helped the manager open the cash registers and Crump took the cash. A video recording shows Crump pointing the firearm in the direction of some of the customers as well as the employees.
The next day, Crump entered the Toys ‘R Us store on Putty Hill Avenue in Towson, wearing a face mask. Crump pointed a gun at a cashier and demanded money. The cashier ran out the front door. Crump pointed his gun at another employee, forcing the employee to open eight cash registers and put the cash into a bag. During this time, several customers and employees called 911. Police from Baltimore County responded quickly and surrounded the store. Several customers who were inside fled the store and were moved to safety by the police. Crump attempted to leave by the front and then the back of the store, but returned inside once he saw the police outside.
Baltimore County tactical officers and hostage negotiators arrived. Police were advised by fleeing customers that Crump was armed and that customers remained inside. Crump asked two customers to help him hide and handed them about $400. Crump hid in a large box on a shelf. The customers who received the money left the store, told police where Crump was hiding and gave the police the money. Tactical officers and canine officers subsequently entered the store and located Crump, hiding in the box on the shelf. A 24 hour search of the store took place before the .380 caliber handgun was located in the baby section inside a bag with $1,650 taken by Crump from all of the registers.
Video recordings of all three robberies identified Crump as the robber. The firearm was registered to Crump’s girlfriend with whom Crump was staying. Clothes worn by Crump during the robberies were found at their residence.
Crump had previously been convicted of at least one crime of violence and one drug offense.
United States Attorney Rod J. Rosenstein commended the Baltimore Police Department, FBI and Baltimore County State’s Attorney=s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and James A. Crowell IV, who prosecuted the case.
Andes Woman Indicted for Social Security FraudRead the Press Release
BINGHAMTON, NEW YORK – Deborah E. Cottrell, age 65, of Andes, New York, was arraigned yesterday on an indictment accusing her of concealing her marriage and making false statements to the Social Security Administration (SSA) in order to obtain Survivor’s Insurance Benefits.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the SSA Office of the Inspector General.
The indictment alleges that Cottrell began to collect Survivor’s Insurance Benefits in 1998 and remarried in 2006, which disqualified her from receiving benefits. The indictment alleges that Cottrell continued to receive benefits following her remarriage and in July 2014, mailed a form to the SSA falsely stating that she had not remarried.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Cottrell faces up to 20 years of imprisonment, 2 years of post-imprisonment supervised release and a $250,000 fine, if convicted on all counts of the indictment. 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.
Cottrell was arraigned yesterday in Binghamton before U.S. Magistrate Judge Therese Wiley Dancks. She was released on a bond pending a trial scheduled for May 9, 2016 before U.S. District Judge Thomas J. McAvoy.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Alton Man Sentenced in Craigslist Counterfeit ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that Tony Young Jr., 21, of Alton, Illinois, was sentenced in the U.S. District Court in East Saint Louis, Illinois, on the charge of Conspiracy to Manufacture, Possess and Pass Counterfeit United States Currency. The district court sentenced Young to 19 months in federal prison, to be followed by 3 years of supervised release.
Young pled guilty to the charge in United States District Court on November 18, 2015. During his plea, he admitted that he along with several others, had engaged in an agreement to manufacture counterfeit United States Currency and then use the currency to buy vehicles. Once in possession of the vehicles they would then resell them for genuine United States currency.
During August of 2013, the group contacted a person in Sandoval, Illinois, who had listed his vehicle for sale on Craigslist. Young, along with the other conspirators then met with the seller in Sandoval, Illinois and purchased the vehicle for $2,400 in counterfeit $100 Federal Reserve Notes. Young and others involved in the conspiracy were arrested a short time after the fraudulent purchase by law enforcement from Carlyle, Clinton County and Sandoval.
The investigation in this case was conducted by the Carlyle and Sandoval Police Departments, the Clinton County Sheriff’s Office and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Additional Federal Child Exploitation Charges for Former Live Oak Police SergeantRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that a federal grand jury has returned a superseding indictment against Kyle Adam Kirby (35, Live Oak) charging him with production, attempted production, and possession of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison on each of the production and attempted production charges, and up to 30 years’ imprisonment on each of the possession charges. Kirby was arrested on October 27, 2015, and is being detained pending his trial. His arraignment on the superseding indictment is scheduled for March 24, 2016.
According to court documents, FBI agents and other law enforcement officers executed a federal search warrant at Kirby’s residence as the result of an online child pornography investigation. That same morning, the Live Oak police chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of the patrol car computer used by Kirby revealed that it contained images depicting minor children engaged in sexually explicit conduct.
A superseding indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Abingdon Man Sentenced on Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – An Abingdon man was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon on federal drug conspiracy charges, United States Attorney John P. Fishwick Jr. announced today.
Michael Bowman, 59, of Abingdon, Va., previously pled guilty to one count of conspiracy to distribute methamphetamine. Yesterday in District Court, Bowman was sentenced to 240 months in federal prison and three years of supervised release thereafter. The defendant was also ordered to forfeit real property, multiple firearms, and ammunition.
“Ice methamphetamine is particularly addictive and deadly form of methamphetamine which is destroying communities and ruining lives,” United States Attorney John P. Fishwick said today. “Today’s sentence sends the message that we will not tolerate these substances coming into our communities and will continue to work with our law enforcement partners to put those who deal this deadly drug in federal prison.”
According to evidence presented to the District Court, Bowman was the head of a large, “ice” methamphetamine conspiracy that operated in Southwest Virginia, Eastern Kentucky and Tennessee. In approximately 2013-2014, Bowman, and others, regularly received large supplies of ice methamphetamine from sources of supply in the Southwest United States.
Bowman and his co-conspirators would typically transport this ice methamphetamine from the Southwest United States to Virginia and Kentucky via interstate highways, coordinating among themselves to avoid law enforcement drug interdiction efforts along the way. Once in Virginia, Bowman would sell the drug to others, who would further distribute it for sale to end users.
The investigation of the case was conducted by the Bristol Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bristol Office of the Drug Enforcement Administration, the Virginia State Police, the Sheriff's Offices of Washington County, Russell County, Tazewell County, and Smyth County, the Commonwealth's Attorney's Offices of Russell County and Tazewell County and the police departments of Abingdon and Lebanon. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
10 March 2016
Winnebago Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Deborah R. Gilg announced that Duane Rouillard, age 27, of Winnebago, Nebraska, was sentenced for his conviction for assaulting a federal officer. Senior United States District Court Judge Joseph F. Bataillon sentenced Rouillard to 24 months of imprisonment to be followed by three years of supervised release.
On May 11, 2015, an Officer with the BIA Office of Justice Services responded to a domestic disturbance call at Rouillard’s residence. When the Officer arrived he found Rouillard’s mother and cousin attempting to restrain Rouillard to prevent him from taking any further violent actions. When the officer attempted to handcuff Rouillard, Rouillard spat on the Officer’s face and neck. This was the fifth time Rouillard has been convicted of assaulting a law enforcement officer.
This case was investigated by the Bureau of Indian Affairs.
Westbank Gang Members Sentenced for Conspiring to Sell Crack Cocaine and Firearms PossessionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that three members of a Westbank gang associated with the Harvey Hustlers were sentenced today after previously pleading guilty to violations of the Federal Controlled Substances Act and the Federal Firearms Act.
U.S. District Judge Jane Triche Milazzo sentenced GLEN HOUSTON and JARRIN HARRIS, both age 22, were each sentenced to ten years in prison for conspiring to distribute more than 280 grams of crack cocaine and possess firearms in furtherance of drug trafficking. BRITTANY CONNER, age 22, was sentenced to four years of probation for conspiring to distribute crack cocaine.
This prosecution is the product of an ongoing investigation into the drug trafficking by this and other Westbank gangs. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Taskforce, the Jefferson Parish District Attorney’s Office, and members of the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Myles Ranier was in charge of the prosecution.
Westbank Drug Dealer SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANDRE ADDISON, age 24, of Avondale, was sentenced today after previously pleading guilty to conspiracy to distribute cocaine base (“crack”).
U.S. District Judge Lance M. Africk sentenced ADDISON to 87 months in prison, followed by 5 years of supervised release, and a $100 special assessment.
According to court documents, ADDISON pled guilty to being a member of a twelve defendant offshoot of the larger Harvey Hustlers group that was involved in the distribution of heroin and crack cocaine in the Avondale and Waggaman areas of Jefferson Parish. ADDISON admitted to acquiring ounce quantities of powder cocaine and then using members of the conspiracy to cook that cocaine into crack, which would then be sold on the streets of Jefferson Parish. ADDISON’s co-conspirators have admitted their participation in multiple murders and shootings in Jefferson Parish.
This case is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, Special Agents of the Federal Bureau of Investigation’s New Orleans Gang Taskforce, the Jefferson Parish District Attorney’s Office, ,and officers of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, are in charge of the prosecution.
Weslaco Man Heads to Prison for Trafficking MarijuanaRead the Press Release
LAREDO, Texas – Santiago Martinez, 39, of Weslaco, has been ordered to prison for 10 years following his conviction of conspiracy to possess with the intent to distribute in excess of 1,000 kilograms of marijuana, announced United States Attorney Kenneth Magidson. Martinez pleaded guilty April 3, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty plea, handed Martinez a 120-month sentence to be immediately followed by five years of supervised release. The court also ordered that the judgment reflect that an order of forfeiture was entered against Martinez in the amount of $11,555,000 which was based on the amount of marijuana transported by the organization during the span of the conspiracy.
A Laredo grand jury returned an indictment Dec. 3, 2013, which alleged Martinez acted as a leader and organizer within a drug trafficking organization that purchased and transported marijuana from the United States-Mexico border to regional distributors in Memphis, Tenn., and Tampa, Fla.
According to court documents, the organization used “low boy” trailers and recreational camping trailers with hidden compartments to transport the marijuana, in 300 to 500 kilogram loads, twice per month. Proceeds from the sale and transportation of this marijuana were collected and sent back to South Texas. These proceeds were placed in hidden compartments in tractor trailers or recreational camping trailers or were deposited into numerous bank accounts.
Since 2001, law enforcement has seized more than 3,500 kilograms of marijuana and more than $1.3 million tied to this drug trafficking organization. The largest seizure of marijuana occurred on Jan. 7, 2011, at which time two tractors, hauling trailers, arrived approximately one hour apart at the U.S. Border Patrol checkpoint on Highway 1017 east of Hebbronville. Inside hidden compartments in the trailers, agents found more than a 1000 kilograms of marijuana. One tractor was headed to Memphis and the other to Tampa.
The largest cash seizure occurred on Aug. 4, 2012, in Florida when law enforcement officers found seven bundles of money, totaling $831,539 in a lead-lined hidden compartment in a camping trailer.
Martinez admitted he purchased marijuana and arranged for its transportation and that a number of the vehicles used by this organization were titled in his name. Martinez further admitted he conspired to move more than 10,000 kilograms of marijuana.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The case is being investigated by the Drug Enforcement Administration with the assistance of the FBI. Former Assistant United States Attorney (AUSA) Elizabeth R. Rabe prosecuted the case. AUSA Toni L. Trevino handled the sentencing today.
Virginia Music Volunteer Convicted of Production of Child PornographyRead the Press Release
A Virginia man who served as a volunteer with the music program at Grace E. Metz Middle School in Manassas, Virginia, was found guilty today by a federal jury of four counts of production of child pornography, one count of attempted coercion/enticement of a minor, one count of distribution of child pornography and two counts of receipt of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., and Chief Douglas Keen of the Manassas City Police Department made the announcement.
According to evidence presented at trial, David Alexander Battle II, 24, of Manassas, used his home computer to share images of child sexual exploitation via webcam on a chat website in April 2015. Battle also posed as a minor girl on another chat platform and chatted with minor boys, including two boys he personally knew, coercing and enticing them to send him sexually explicit images of themselves. The trial evidence also showed Battle’s laptop contained gigabytes of child sexual exploitation files.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jay Prabhu of the Eastern District of Virginia are prosecuting the case. HSI and the Manassas City Police Department investigated the case, with assistance from the Herndon, Virginia, Police Department and the Northern Virginia/Washington, D.C., Internet Crimes Against Children Task Force.
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.
United States Files Suit Against California Telemarketer to Halt Unlawful Robocalls Promoting Solar Panel SalesRead the Press Release
The Department of Justice filed a civil complaint in the U.S. District Court for the Central District of California, to halt a telemarketing campaign that allegedly resulted in over a million illegal phone calls to consumers who had placed their phone numbers on the Do Not Call Registry, the Department of Justice announced today.
The complaint charges that KFJ Marketing, Sunlight Solar Leads LLC, Go Green Education and the owner of those companies, Francisco Salvat, violated the Telemarketing Sales Rule by operating a telemarketing campaign that delivered pre-recorded “robocall” messages warning consumers about a purported looming “14 percent increase” in their energy bill. The calls invited consumers to “press one” to lower their electric bill. Consumers who did were connected with one of the defendants’ employees, who asked about the consumer’s interest in solar panels.
If the consumer expressed interest in solar panels, the telemarketer scheduled an appointment with a private solar installation company and sold the consumer’s information to that company as a customer lead. When consumers asked the defendants not to call them again, the complaint alleges their requests were often ignored.
The complaint alleges that the defendants violated federal law by placing 1.3 million calls to phone numbers on the Do Not Call Registry and by failing to transmit accurate caller ID information.
“Federal law protects the privacy interests of American consumers by prohibiting calls made to numbers on the national Do Not Call Registry and otherwise limiting calls made by telemarketers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the Federal Trade Commission (FTC) to ensure entities like those named in today’s lawsuit are penalized when they make unwanted and unlawful phone calls.”
“Mr. Salvat’s companies ignored the Do Not Call Registry and made illegal robocalls,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Breaking the law isn’t a great way for a company to introduce itself to potential customers.”
The matter was investigated by the FTC and referred to the Department of Justice’s Consumer Protection Branch after the FTC determined it had reason to believe the defendants’ conduct was violating the law and that a proceeding would be in the public interest. The complaint seeks civil penalties as well as injunctive relief.
The matter is being handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, with assistance from Sarah Schroeder and Sylvia Kundig from the FTC.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by preponderance of the evidence.
Two men appear on Federal heroin charges in CharlestonRead the Press Release
CHARLESTON, W.Va. – Two men appeared in federal court today on heroin charges, announced Acting United States Attorney Carol Casto.
Timothy A. Johnson, 46, of Charleston, was sentenced to five years in federal prison for possession with intent to distribute heroin. Johnson previously pleaded guilty and admitted that on April 23, 2015, law enforcement seized 200 grams of heroin, 384 grams of cocaine, 8 grams of crack, and over $29,000 at his Charleston residence. The seized currency included over $2,000 in pre-recorded buy money used by law enforcement to purchase heroin from a drug dealer that Johnson supplied. Law enforcement also recovered a loaded handgun, a .40 caliber pistol, from his residence.
In a separate drug prosecution, Jerome Anthony Smith, 41, of Williamson, pleaded guilty to distribution of heroin. He admitted that from May to August 2014, during the course of several controlled purchases, he distributed both heroin and crack to a confidential informant working with law enforcement. The drug deals took place in the Williamson area. Smith faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 9, 2016.
The investigation of Smith was conducted by the U.S. Route 119 Drug Task Force and the Mingo County Sheriff’s Office. The Metropolitan Drug Enforcement Network Team conducted the investigation of Johnson. Assistant United States Attorney Jennifer Rada Herrald handled the prosecutions. The defendants appeared before United States District Judge Thomas E. Johnston.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Men and a Woman Charged with Robbing Stilwell, Kan., BankRead the Press Release
KANSAS CITY, KAN. - Two men and a woman were charged here today in a federal criminal complaint alleging they robbed a bank, engaged in a high-speed chase with a 19-month-old child in their car, and fired at police officers who were pursuing them, U.S. Attorney Barry Grissom said.
Jacob L. Smith, 18, Kansas City, Kan.; Gary Jordan, 39, Kansas City, Kan.; and Danille Morris, 26, Kansas City, Kan.; are charged with one count of bank robbery and one count of brandishing firearms during the robbery
A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges Jordan and Smith were armed with handguns on March 9 when they entered the First National Bank at 7460 W. 199th Street in Stilwell, Kan. Morris and her 19-month-old daughter waited outside in the getaway car. Morris had helped to case the bank before the robbery.
Smith and Jordan held the tellers at gunpoint before fleeing with cash stuffed in a backpack. Jordan took the wheel of the getaway car. During the next 25 minutes, the robbers were pursued by the Kansas Highway Patrol, the Leawood Police Department and other law enforcement agencies as they fled across the Kansas/Missouri state line. During the chase, Smith fired at officers from the car. After the car overturned on a sharp turn, the defendants were arrested. Throughout the chase, the child was in a car seat fastened to the back seat of the defendants’ car.
If convicted, the defendants face a maximum penalty of 25 years and a fine up to $250,000 on the bank robbery charge, and a penalty of not less than seven years and not more than life on the brandishing charge. Agencies assisting in the investigation include the FBI, the Johnson County Sheriff’s Office, the Kansas Highway Patrol, the Leawood Police Department and the Kansas City Police Department. Assistant U.S. Attorney Sheri Catania is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Former Rabobank Traders Sentenced to Prison for Manipulating U.S. Dollar and Japanese Yen LIBOR Interest RatesRead the Press Release
Two former derivatives traders at Rabobank Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) – including the bank’s former global head of liquidity and finance in London – were sentenced to prison today for manipulating the London Interbank Offered Rates (LIBOR) for the U.S. Dollar (USD) and Japanese Yen (JPY), benchmark interest rates to which trillions of dollars in interest rate contracts were tied.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Anthony Allen, 44, of Hertsfordshire, England, the bank’s former global head of liquidity and finance in London, was sentenced to 24 months in prison by U.S. District Judge Jed S. Rakoff of the Southern District of New York. Anthony Conti, 46, of Essex, England, a former senior trader on the bank’s money markets desk in London, was sentenced to 12 months and one day in prison. A federal jury convicted the defendants on Nov. 5, 2015, after a four-week trial. Allen was found guilty of one count of conspiracy to commit wire fraud and bank fraud and 18 counts of wire fraud. Conti was found guilty of one count of conspiracy to commit wire fraud and bank fraud and eight counts of wire fraud.
“Allen and Conti were entrusted to set LIBOR, a critically important interest rate benchmark,” said Assistant Attorney General Caldwell. “Their scheme to manipulate this rate to increase their bank's profits undermined the integrity of our financial markets and the public's confidence in the fairness of the financial system. This case demonstrates our commitment to work with domestic and foreign law enforcement authorities and regulators to hold financial criminals responsible for their crimes and ensure the integrity of the marketplace for investors worldwide.”
“Large banks, like other companies, only conspire and commit fraud through their executives,” said Assistant Attorney General Baer. “The Department of Justice will continue to hold those executives accountable for their role in corporate wrongdoing. Working with our partners at the Criminal Division and FBI, the Antitrust Division will continue to target fraud and collusion to ensure that markets function as they should – freely, fairly and competitively.”
“The prison sentences imposed today underscore the serious nature and extent of manipulation that Conti and Allen undertook as part of their scheme to defraud financial institutions and investors,” said Assistant Director in Charge Abbate. “The investigative and prosecutorial team that investigated and tried this case in court are to be commended for their dedicated and tireless work in furtherance of uncovering the LIBOR-related fraud and holding accountable those who committed these crimes.”
LIBOR is the primary benchmark for short term interest rates for several currencies around the world and is used as a reference rate for many financial products, including interest rate contracts, mortgages, credit cards and student loans. At the time relevant to the charges, LIBOR was calculated for 10 currencies at 15 maturities, ranging from overnight to one year, and was published by the British Bankers’ Association (BBA), a London-based trade association, based on submissions from a panel of 16 banks, including Rabobank.
The evidence at trial showed that the defendants actively participated in a scheme to rig the USD and JPY LIBORs to benefit their own trading positions, as well as those of their colleagues. Specifically, between 2005 and 2009, the evidence showed that Allen oversaw a system in which Rabobank employees who traded LIBOR-linked derivatives made improper requests to the employees who submitted Rabobank’s LIBOR contributions to the BBA. Conti was the primary USD LIBOR submitter and Paul Robson, who previously pleaded guilty to the conspiracy charge, was the primary JPY LIBOR submitter.
In addition to Allen, Conti and Robson, two other former Rabobank employees have been convicted in the Rabobank LIBOR investigation. Lee Stewart and Takayuki Yagami each pleaded guilty to one count of conspiracy in connection with their roles in the scheme. Two other former Rabobank employees, Tetsuya Motomura, 43, of Tokyo, and Paul Thompson, 50, of Dalkeith, Australia, have also been charged and are awaiting trial. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rabobank entered into a deferred prosecution agreement with the department on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
The FBI investigated the case. Senior Litigation Counsel Carol Sipperly and Assistant Chief Brian Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division prosecuted the case. The Criminal Division’s Office of International Affairs and Deputy Chief Daniel Braun and Assistant Chief Brent Wible of the Criminal Division’s Fraud Section are thanked for their substantial assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, played a major role in the LIBOR investigation. The Securities and Exchange Commission also played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Taylor County, Kentucky Man Sentenced to 30 Months in Prison for Multiple Counts of Firearm ViolationsRead the Press Release
District Judge imposes the maximum sentence
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the sentencing of a Taylor County, Kentucky man this week by United States District Judge Greg N. Stivers, to 30 months in prison, the maximum sentence for the offenses charged under the federal sentencing guidelines, for multiple counts of firearm violations.
Christopher Cox, of Campbellsville, previously pleaded guilty to an eight count indictment on November 23, 2015. Cox pleaded guilty to four charges of being a felon in possession of a firearm and four charges of possession of a firearm by a person convicted of a misdemeanor crime of domestic violence.
According to information presented in court to support the felony charges, Cox was previously convicted on June 4, 2002, in Taylor Circuit Court, of the felony offense of possession of marijuana while in possession of a firearm. On January 13, 2009, in Madison County District Court, located in Richmond, Kentucky, Cox was convicted of assault in the 4th degree (domestic violence). Cox pleaded guilty to an altercation with his then girlfriend in which he had attempted to choke her while driving a vehicle. The Police Report noted “visible red marks” on the woman’s neck.
Cox came to the attention of law enforcement when he purchased a 9mm pistol from a Campbellsville shop without filling out the proper paperwork (Form 4473). The shop owner notified law enforcement who noticed Cox had a previous felony conviction. Further, around the same time of the purchase of the pistol, law enforcement uncovered that Cox had pawned three long guns at a pawn shop in Campbellsville. Those firearms were a Mossberg 12 gauge shotgun, a Mossberg 20 gauge shotgun, and a Remington bolt-action rifle. Cox had purchased the guns from a store in Lexington using a stolen social security number.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) in connection with the Campbellsville Police Department.
Sunbury Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
COLUMBUS, Ohio – Mark W. Wolfe, 50, of Sunbury, Ohio, pleaded guilty in U.S. District Court to distribution of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Westerville Police Chief Joseph Morbitzer announced the plea entered into today before U.S. Magistrate Judge Terence P. Kemp.
According to court documents, undercover investigators observed files containing child pornography being shared through an IP address belonging to Wolfe. During a search warrant executed on July 31 at Wolfe’s residence, investigators discovered a laptop containing approximately 486 videos and 203 images of child pornography. The files were located in several folders on the computer under the user name “Mark.” Some of the videos showed children as young as eight-to-10 months old being sexually abused.
Further forensic analysis of the computer revealed Skype chat messages between Wolfe and several other individuals. In these conversations, Wolfe allegedly distributed child pornography files and claimed to have previously engaged in sex acts with minors and stated that his favorite age is five to ten years old.
Wolfe was charged by indictment in September 2015. He pleaded guilty to one count of distribution of child pornography, which is punishable by at least five years and up to 20 years in prison.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill, who is prosecuting the case.