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10 March 2016
St. Louis Area Man Indicted on Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Adam Bernaix of St. Louis, Missouri, was arrested today on an indictment charging him with mail fraud and money laundering in connection with a kickback scheme he is accused of operating from June 2012 until February 2015.
According to the indictment, while a project manager for Albert Arno, Inc., a local commercial HVAC contractor, Bernaix had authority to select subcontractors and authorize their bills to Albert Arno. Bernaix decided to exploit that authority and siphon off funds from his employer through a company he organized through a straw party.
The company, Trident Management Services, billed subcontractors of Albert Arno for “management services.” In order to account for Trident’s bills, Bernaix increased the subcontractors’ invoices to Albert Arno enough to provide extra money to pay Trident’s bills. In truth, Trident provided minimal services to its clients and its bills were only paid by the subcontractors to satisfy Bernaix and keep business flowing to the subcontractors from Albert Arno.
During the nearly three-year period of the fraud scheme, Trident Management Services made more than $350,000 from Albert Arno subcontractors, which proceeds Bernaix is alleged to have divided between himself and the nominal founder and sole officer of Trident Management Services.
If convicted, Bernaix faces up to 20 years imprisonment on each of two mail fraud counts and up to 10 years imprisonment on each of two money laundering counts. Additionally, Bernaix faces up to $250,000 in fines per count and restitution for the victims will be sought pursuant to the Mandatory Victims Restitution Act.
The case was investigated by the Federal Bureau of Investigation, U.S. Postal Inspection Service and IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Sixteen Latin King Gang Members and Associates Arrested for Narcotics Trafficking in Long Beach, New YorkRead the Press Release
A four-count indictment was unsealed today in United States District Court for the Eastern District of New York charging sixteen defendants with four narcotics trafficking conspiracies, including conspiracies to possess with intent to distribute cocaine, cocaine base (crack cocaine), ethylone (molly), and marijuana. The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Anne Y. Shields at the federal courthouse in Central Islip.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA); and Michael Tangney, Commissioner, Long Beach Police Department (LBPD).
“This indictment should serve as notice to all gang members - we will not tolerate the flooding of our streets with illegal drugs. We are committed to rooting out all drug trafficking and gang activity on Long Island,” stated United States Attorney Capers. Mr. Capers thanked the FBI, DEA Long Island Drug Task Force and LBPD for their assistance with the government’s investigation.
“Today, 16 members and associates of the Latin Kings Gang are facing charges related to drug trafficking in parts of Long Island. When criminal operatives and gangs bring in illegal drugs into our neighborhoods, they also bring violence, turf wars and other criminal activity. The FBI will continue to work with our law enforcement partners to dismantle gang activity and keep our communities safe,” said FBI Assistant Director-in-Charge Diego Rodriguez.
DEA Special Agent-in-Charge Hunt stated, “Today’s arrests have dismantled an alleged drug gang that preyed upon the Long Beach community. The indictment charges that this organization illegally distributed cocaine, crack cocaine, ethylone and marijuana; all of which furthered crime, addiction, and violence. Law enforcement worked collaboratively to reclaim this neighborhood for the law abiding citizens who deserve to live without intimidation, fear, and drug trafficking.”
LBPD Commissioner Tangney stated, “The Long Beach Police Department is very appreciative of the assistance the FBI and DEA provided to the LBPD in this joint operation. Removing these dangerous individuals from our streets makes this community that much safer. This joint investigation was very successful and demonstrates that when federal and local law enforcement work together, great results are achieved.”
As alleged in the government’s detention memorandum, the indictment is the product of a two-year investigation during which law enforcement identified the most prolific narcotics traffickers in the Long Beach area, including numerous members and associates of the Latin Kings street gang. Court-authorization was then obtained to intercept telephone communications between the defendants, all of whom were intercepted on multiple occasions engaging in narcotics trafficking activities. The charged conspiracies involved over 50 kilograms of cocaine, five kilograms of crack cocaine, two kilograms of molly, and 500 pounds of marijuana.
If convicted of the charges in the indictment, Amparo, A. Andujar, R. Andujar, Cerda, Cobb, Curry, Diggs, Fernandez, Ojedis, Ramirez, and Rupay face a maximum of life imprisonment. Ayala, Collins, Vanroten, and Wilson face a maximum of 40 years’ imprisonment, and Labella faces a maximum of 20 years’ imprisonment. The charges contained in the indictment are merely allegations, and the 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 Lara Treinis Gatz, Mark E. Misorek, and Grace M. Cucchissi are in charge of the prosecution.
The Defendants:
Jose Giovanny Amparo
Age: 46
Bronx, New YorkAmanda Andujar
Age: 26
Baldwin, New YorkRoxanne Andujar
Age: 36
Baldwin, New YorkJordan Ayala
Age: 20
Long Beach, New YorkFernando Cerda
Age: 38
Long Beach, New YorkTysaun Cobb
Age: 24
Hempstead, New YorkArthur Collins
Age: 38
Island Park, New YorkTravis Curry
Age: 37
Long Beach, New YorkSean Diggs
Age: 28
Long Beach, New YorkNelson Fernandez
Age: 35
Long Beach, New YorkFrank Labella
Age: 35
Oceanside, New YorkDaniel Ojedis
Age: 37
Baldwin, New YorkAnthony Ramirez
Age: 29
Hempstead, New YorkRonald Rupay
Age: 35
Long Beach, New YorkGregory Vanroten
Age: 38
Baldwin, New YorkSly Wilson
Age: 30
Long Beach, New YorkShipping Companies and Engineers Indicted for Concealing Oil PollutionRead the Press Release
A grand jury in Seattle has indicted two shipping companies and two engineers for crimes related to the illegal discharge of oily wastewater from a cargo ship known as the M/V Gallia Graeca, announced U.S. Attorney Annette L. Hayes. The ship’s operator, ANGELAKOS (HELLAS) S.A., its owner, GALLIA GREACA SHIPPING, LTD, and engineers KONSTANTINOS CHRYSOVERGIS and TRYFON ANGELOU are scheduled to be arraigned on the indictment on March 24, 2016. ANGELAKOS (HELLAS) S.A. is a Panama company. GALLIA GREACA SHIPPING, LTD is a Cyprus company.
According to the indictment, the M/V Gallia Graeca travelled from China to Seattle in October 2015. During the voyage, a pollution-control device known as an oil water separator was inoperable, resulting in the accumulation of untreated oily water. On October 16, 26 and 27, 2015, the defendants operated the equipment in a way that bypassed safeguards that prevent the discharge of oily water, resulting in the discharge of more than 5,000 gallons of contaminated water. The indictment alleges that the defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s record book. When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not.
The two engineers and the two companies operating the ship are charged with Falsification of Records in a Federal Investigation, which is punishable by up to 20 years in prison, with Concealment of Material Information from the United States, which is punishable by up to 10 years in prison, and with violating the Act to Prevent Pollution from Ships, which is punishable by up to five years of imprisonment. Each count of conviction is also punishable by a $500,000 fine.
The charges contained in the indictment are only allegations. A person or entity is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs and by Special Assistant Attorney Stephen Bor. Mr. Bor is an attorney with the United States Coast Guard specially appointed to prosecute criminal cases in federal court.
The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division.
Shipping Companies Fined for Falsifying Records Under Defense ContractRead the Press Release
Farrell Lines, Incorporated (Farrell) and DAMCO USA, Inc. (Damco) have paid to the United States of America three million six hundred fifty nine thousand five hundred dollars ($3,659,500.00) in civil penalties regarding Farrell and Damco’s failure to comply with certain terms of its contract with the United States Transportation Command (USTRANSCOM), the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
"The determined federal investigators and the attorneys in my office will continue to strive to ensure that dollars paid from the public fund are properly accounted for and that value is received. The United States Attorney’s Office stands ready to bring proper relief, either criminal or civil, whenever necessary, to make that a fact." noted Acting United States Attorney Porter.
Under Farrell’s contract with USTRANSCOM, it was required to perform international door-to-door and/or port-to-port transportation services to move Department of Defense (DoD) and other Government approved cargo into and out of Afghanistan via multiple modes of transportation (air, sea, and land). Farrell subcontracted its work on the contract to its affiliate, Damco. The price of the contract was based almost exclusively on the weight of the shipments, and documented cargo weights, consisting of "weight tickets" issued by a certified commercial scale for each cargo container, needed to be included with billing invoices to the Government.
With respect to the shipments at issue in this matter, USTRANSCOM discovered that 563 weight tickets submitted by Farrell to support their billing invoices were "recreated" by Damco employees and not authentic weight tickets. Farrell and Damco were cooperative in the investigation.
This matter was investigated by the United States Army Criminal Investigation Command, Defense Criminal Investigative Service, Defense Contract Audit Agency, Naval Criminal Investigative Service, Air Force Office of Special Investigations, and the Office of the Special Inspector General for Afghanistan Reconstruction and handled by Assistant United States Attorney Nathan D. Stump.
Schenectady Man Indicted for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Edwin Ferrer, age 42, of Schenectady, New York, was arraigned today on a charge of being a felon in possession of a firearm and six rounds of ammunition.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
The indictment alleges that on December 18, 2015, Ferrer possessed a Smith & Wesson Model 41, .22 caliber semi-automatic pistol, with a defaced serial number, and six rounds of ammunition.
The charge in the indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
The charge filed against Ferrer carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. 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.
Ferrer was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial scheduled for May 9, 2016 in Syracuse before United States District Judge Frederick J. Scullin, Jr.
This case is being investigated by the ATF and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Saratoga Resident Charged in International Elephant Ivory Trading SchemeRead the Press Release
SAN FRANCISCO – Shahram “Ron” Roohparvar was arrested today in connection with an alleged international elephant ivory trafficking scheme announced Acting United States Attorney Brian Stretch and U.S. Fish and Wildlife Service (USFWS) Special Agent in Charge Jill Birchell.
In an indictment unsealed today, Roohparvar, 61, of Saratoga, was charged with selling art objects made of elephant ivory on the international market. According to the indictment, the sale of elephant ivory has been largely banned and highly regulated since 1976. Federal statutes and international agreements regulate the export of elephant ivory and make it a crime to, among other things, export such products without the proper permits and declarations. According to the indictment, Roohparvar nevertheless offered ivory for sale on the internet, and he exported it in violation of these rules.
The indictment describes three transactions in which Roohparvar allegedly took part between 2012 and 2015. In January of 2012, Roohparvar is alleged to have offered to sell an ivory carving for sale and shipped it to New Zealand; in December of 2013, Roohparvar is alleged to have directed the export of an ivory carving to Australia; and in July of 2015, Roohparvar is alleged to have attempted to export an ivory statue to New Zealand. In all three cases, Roohparvar allegedly initiated the transactions without obtaining the required permits and without filing the necessary declarations with the USFWS. Roohparvar was charged with three counts each of wildlife trafficking, in violation of 16 U.S.C. § § 3373(d), and smuggling, in violation of 18 U.S.C. § 554.
Roohparvar was arrested this morning by Special Agents from the USFWS. He was then arraigned before U.S. Magistrate Judge Joseph C. Spero and released on a $250,000 bond. His next court appearance is scheduled for April 6, 2016, at 2p.m., for an initial appearance before U.S. District Judge Charles R. Breyer.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum statutory penalty for each count of wildlife trafficking is five years’ imprisonment and a $250,000 fine. The maximum statutory penalty for each count of smuggling is 10 years’ imprisonment and $250,000. Additional periods of supervised release, fines, and special assessments also could be imposed, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Laura Vartain Horn is prosecuting the case with the assistance of Yanira Osorio. The prosecution is the result of an investigation conducted by the USFWS Office of Law Enforcement.
Santa Monica Man Faces Five Years in Federal Prison after Pleading Guilty to Conspiring to Engage in Synthetic Identity FraudRead the Press Release
LOS ANGELES – A Santa Monica man pleaded guilty this morning to a federal conspiracy charge stemming from a “synthetic identity” fraud ring that created bogus identities for the purpose of obtaining credit cards.
Yair Shoshani, 38, pleaded guilty to one count of conspiracy to commit bank fraud.
In a plea agreement filed in court, Shoshani, who also used the names “Ben Yahuda” and “Ben Cohen,” agreed to forfeit five properties and nearly $4.5 million in cash, including more than $3.2 million from a Swiss bank account.
Shoshani admitted that he conspired with others to conduct a “bust-out” scheme using synthetic identities and fictitious merchants to defraud banks that issue credit cards. Shoshani and the others created entirely fictitious synthetic identities, applied for credit with those bogus identities and manipulated the credit ratings for the synthetic identities by adding them as authorized users to credit card accounts belonging to real people who had high credit scores. With credit ratings established for the synthetic identities, Shoshani and the others set up fake business to process credit card transactions by the synthetic identities – transactions that were never paid for.
Victim banks in this “bust-out” scheme included JPMorgan Chase Bank, Bank of America, Citibank and Wells Fargo Bank.
Proceeds of the fraud scheme were used to purchase five properties in Los Angeles, West Hollywood and Santa Monica.
Shoshani pleaded guilty before United States District Judge George H. King, who is scheduled to sentence the defendant on June 13. As a result of today’s guilty plea, Shoshani, who has been in custody since June 2014, faces a statutory maximum sentence of five years in federal prison.
“Synthetic identity fraud causes significant loss to our nation’s financial institutions, as this case illustrates,” said United States Attorney Eileen M. Decker. “This guilty plea is a testament to law enforcement’s ability to look behind numerous false identities and fictitious businesses to hold the perpetrators accountable for their fraud. My office will continue to prosecute those that engage in identity fraud to the fullest extent of the law.”
The investigation into Shoshani was conducted by the Los Angeles Field Office of the Federal Bureau of Investigation, the Los Angeles Police Department, and the Los Angeles Sheriff’s Department.
Shoshani’s conviction is the most recent in a line of identity crime prosecutions brought by the U.S. Attorney’s Office. Recent cases include:
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Jeffrey Pineda, 33 of Stevenson Ranch, who pleaded guilty last month to a bank fraud charge after stealing the identities of his personal banking clients to withdraw money from their accounts;
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Robert Lett, 48, and Latanya Lett, 44, of Los Angeles, who pleaded guilty in January to conspiracy to commit mail fraud after defrauding the Employment Development Department out of nearly $1 million through identity theft and disability fraud;
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Vagan Dobazhyan, 53 of Northridge, who was sentenced in January to six years in prison for using counterfeit credit cards;
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Jorge Sanchez, 28 of Moreno Valley, who was sentenced in January to four years in federal prison for using counterfeit debit cards to make ATM withdrawals; and
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Elgrid Adamian, 39 of Sunland, who pleaded guilty in January to bank fraud in a case involving a different “bust-out” scheme resulting in losses of more than $500,000 and the forfeiture of two cars and more than $160,000.
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San Antonio Businessman Sentenced to 14 Years in Federal Prison for Multi-Million Dollar Investment ScamRead the Press Release
In San Antonio today, 54-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, was sentenced to 170 months in federal prison in connection with a multi-million dollar investment fraud scam announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In August 2015, Hernandez pleaded guilty to a federal money laundering charge. By pleading guilty, Hernandez admitted responsibility for managing an estimated $80 million investment portfolio of a Mexican businessman and his family from 2005 to 2014, but had not invested his clients’ money like he had agreed. Hernandez spent their money to purchase homes, planes and other assets for his personal use.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered Hernandez to pay restitution to his victims in the amount of $25,434,939.53 and be placed on supervised release for a period of three years after completing his prison term.
“The defendant’s investment scheme represented one of the deepest betrayals of trust and friendship, committed for sheer greed to finance his lavish and extravagant lifestyle. Moreover, the devastating financial losses suffered by the victims were not inherited wealth; rather, they were the result of a family’s hard work and sacrifice, over several generations,“ said FBI Special Agent in Charge Christopher Combs.
“Today’s sentencing of Armando Hernandez Leal should be a reminder to those individuals who are looking for financial advice. You should take as much care in choosing this person or company as you would in choosing a doctor or a lawyer,” said Special Agent in Charge William Cotter of the Internal Revenue Service - Criminal Investigation, San Antonio Field Office. “Mr. Hernandez Leal’s decision to use his investors’ money to line his own pockets is a serious offense and the punishment must be as serious as the crime.”
This investigation was conducted by special agents from the FBI and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Russ Leachman and Greg Surovic prosecuted this case on behalf of the Government.
Rounds Crew Gang Member Sentenced for Racketeering Conspiracy Involving MurderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Demario Stewart, 27, of Buffalo, NY, who was convicted of racketeering conspiracy involving murder and drug dealing, was sentenced to 216 months in prison by Senior U.S. District Judge William M. Skretny. The defendant is a member of the “Rounds Crew” led by Johnny Rounds.According to Assistant U.S. Attorneys Joel L. Violanti and Wei Xiang, members of the Rounds Crew committed numerous acts of violence and narcotics trafficking on the East Side of Buffalo encompassing Broadway and several intersecting streets. Members of the gang guarded that territory and resorted to acts of violence to insure that no rival gang members or other individuals encroached upon their territory for any reason, including selling or distributing drugs.
Stewart was sentenced for his involvement in the July 10, 2009 murder of Brandon Haugabook on the corner of Paderewski and Townsend Streets in Buffalo.
Acts of violence by the Rounds Crew included the murders of two others who did not have any affiliation with gang activity, and the attempted murders of several others:
The August 12, 2009 murder of Larry Crosland on William Street in Buffalo;
The August 13, 2009 murder of Shawn Kozma on Reed Street in Buffalo. Kozma’s body was found burned a day later on August 14, 2009 in a vacant field on William Street;
Several attempted murders and shootings of rival gang members.
In addition to committing the murders and attempted murder, the Rounds Crew engaged in narcotics trafficking offenses in their territory which included Reed, Detroit, Townsend, and Coit Streets in Buffalo.
Eight members of the Rounds crew have been convicted in this case including leader Johnny Rounds who is scheduled to be sentenced on March 30, 2016 at 9:00 a.m.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent in Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division. Additional assistance was provided by the Erie County District Attorney's Office.
Reinbeck Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
A man who received and possessed child pornography was sentenced today to 30 years in federal prison.
Michael Cottrell, age 43, from Reinbeck, Iowa, received the sentence after an October 13, 2015 guilty plea to one count of receipt of child pornography and one count of possession of child pornography. At the plea hearing, Cottrell admitted that, between 2012 and 2014, he knowingly received child pornography and possessed it on his computer. At the sentencing hearing, the parties and the court discussed Cottrell’s history of sexual contact with minors when he was a juvenile.
Cottrell was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cottrell was sentenced to 360 months’ imprisonment. A special assessment of $200 was imposed, Cottrell was ordered to pay $500 in restitution, and he must serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-82.
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Puretane Executives Admit Laundering Profits from Illegal Butane BusinessRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – March 10, 2016
SAN DIEGO – Former Chief Executive Officer Michael Tandberg and Chief Financial Officer Adam Hopkins of Lahar Manufacturing, Inc., pleaded guilty in federal court today, admitting that they conspired to launder proceeds from their illegal business. Their Newport Beach-based business—operating under the name Puretane—was the first and largest domestic manufacturer and distributor of butane specifically designed for use in making butane hash oil.
Butane hash oil (“BHO”) is a marijuana concentrate similar in appearance to honey or butter. BHO contains extremely high levels of tetrahydrocannabinol, or THC, and can be up to four times more potent than high grade marijuana. BHO is commonly manufactured by packing marijuana into a glass, plastic, or metal tube. Butane is then sprayed into the top of the tube. The butane strips the marijuana of its cannabinoid-containing oils, which drip from the bottom of the tube, often through a filter and into a holding container. The end product is highly-profitable and can be ingested as an oil, consumed in edibles, or solidified to make concentrated forms of cannabis known as “wax.”
During the manufacture of BHO, butane, a flammable gas that is odorless, colorless, and heavier than air, can evaporate out of the substance and collect on the floor, accumulating to explosive levels without proper ventilation. This process creates an invisible, but very real, risk of fires, explosions, and chemical burns. In 2015 alone, there were 33 reported fires and explosions that occurred during the manufacture of BHO in California.
According to the DEA, Butane Hash Oil Extraction Laboratories have caused 10 fires and explosions in San Diego County since January of 2015. In the Southern District of California there have been a number of Butane Hash Oil Extraction cases. In a recent case, defendant Steve Mora was sentenced last month to 40 months in custody after pleading guilty to creating substantial risk to human life while manufacturing Butane Hash Oil. Mora operated a marijuana dispensary where BHO was manufactured and resulted in an explosion in 2014.
News reports indicate that butane-related blasts are happening all over the country. For example, a 2014 article reported that Butane-fueled blasts sent 17 people to a Portland burn unit with serious injuries in the past 16 months, including one Northeast Portland man who later died from his injuries and a 12-year-old girl who suffered multiple broken bones after leaping from a second floor apartment building rocked by a butane explosion. During just the first nine months of 2014, Colorado reported that there were 31 butane hash oil explosions in homes across the State. A 2015 news article reported that at two Northern California burn treatment centers, injuries from BHO explosions accounted for eight to ten percent of severe burn cases, which represents a larger percentage than from car wrecks and house fires combined.
The manufacture of BHO is met by an unregulated and largely underground industry that plays out in garages, basements and kitchens. In this type of setting a spark from something as ordinary as a refrigerator compressor can set off a fiery explosion. Puretane’s butane was marketed specifically for use in the unregulated manufacture of BHO. For example, in October 2014, High Times, a drug culture magazine, featured an article describing Puretane’s butane as “designed specifically for the needs of BHO makers.” Puretane posted a link to the High Times article on its website and social media accounts. Similarly, in January 2015, Puretane hosted a contest, in which it offered a case of Puretane butane to the contestant who could manufacture the highest quality BHO.
Puretane sold its butane in 300 ml canisters for approximately $4-5 per canister to retailers throughout the United States, including to at least 25 retailers in San Diego County such as Raw Smokeshop, Dr. Green’s Ink, and Holy Smoke. From just the period of February to August 2015, Puretane sold more than 400,000 canisters of their butane to retailers.
As part of their pleas, Tandberg and Hopkins agreed to forfeit the money remaining in their corporate bank account and over 66,000 canisters of Puretane butane. Tandberg and Hopkins will appear for sentencing on May 27, 2016, at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS: Case Number 16-CR-460-GPC
Michael Tandberg Age: 54 Newport Beach, CA
Case Number 16-CR-461-GPC
Adam Hopkins Age: 45 Santa Monica, CA
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: 20 years’ imprisonment and $500,000 fine
AGENCY
Homeland Security Investigations
Previously Convicted Felon Sentenced for Illegally Possessing Firearms Stolen in Gun Store BurglariesRead the Press Release
DAYTON, Ohio – Ricky Lasley, 37, of Dayton, was sentenced in U.S. District Court to 52 months in prison for being a felon in possession of a firearm.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Dayton Police Chief Richard Biehl announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, investigators executed search warrants at Lasley’s home and business and discovered three firearms that had previously been stolen from gun shops in the area. A 9mm handgun seized had been stolen from the Miami Armory and the two other firearms had been stolen from Vandalia Range and Armory. Lasley admitted that he obtained the firearms from other individuals.
Lasley pleaded guilty on December 9, 2015 to one count of possession of a firearm by a convicted felon.
“This case accounts for three of the firearms previously stolen from area gun shops, and should send the message that we will continue to go after burglars and those illegally purchasing firearms,” U.S. Attorney Stewart said.
U.S. Attorney Stewart commended the cooperative investigation by ATF, FBI, Dayton Police Department and other members of the Community Initiative to Reduce Gun Violence and the Southern Ohio Safe Streets Task Force, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
Philadelphia Resident Charged with Illegal Reentry After DeportationRead the Press Release
Miguel Rodriguez-Juarez, 40, of Philadelphia, PA, was charged today by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about February 11, 2016, Rodriguez-Flores, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 19, 2001.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Terri Marinari.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Child Pornogrphy ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that John Tarell Grayson, 35, of Erie, PA, pleaded guilty to receipt of child pornography before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated that the defendant requested and received sexually explicit pictures from a child who had not yet reached the age of 18. The pictures were transmitted to the defendant via text message picture attachments on a cellular telephone.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Dunkirk Police Department, under the direction of Chief David ortolano.
Sentencing is scheduled for June 15, 2016 at 11:00 a.m. before Judge Skretny.
Oil and Gas Company Fined $400,000 for Failing to Provide Notification of a Hazardous DischargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WALTER OIL & GAS COMPANY, a Texas corporation residing in Houston, was sentenced today on a one-count Bill of Information which charged the company with failing to provide notification to the National Response Center of a hazardous discharge, in violation of Title 33, United States Code, Section 1321(b)(5)(C). This charge relates to WALTER OIL & GAS COMPANY’s oil and gas production in the Grand Isle area of the Gulf of Mexico. The company previously entered a guilty plea on December 22, 2015.
U.S. District Judge Nannette Jolivette Brown ordered WALTER OIL & GAS COMPANY to pay a total monetary penalty of $400,000 and serve a two-year term of probation. The $400,000 monetary penalty will be divided as follows: $320,000 to the United States Treasury, $40,000 to the Louisiana Department of Environmental Quality, $30,000 to the Louisiana State Police Emergency Services Unit and $10,000 to the Southern Environmental Enforcement Network.
“Our federal and state law enforcement partners are committed to protecting our environment,” stated U.S. Attorney Kenneth Allen Polite, Jr. “We will continue to demand that businesses not illegally pollute the waterways that sit at the center of our culture and economy.”
“The Coast Guard Investigative Service places high priority on the protection of our delicate maritime environment. We will continue to work hand in hand with our law enforcement partners to pursue those who, by their actions, place that environment at peril,” said William Hicks, Acting Special Agent in Charge of the Coast Guard Investigative Service Gulf Region Office in New Orleans.
“Developing domestic sources of energy must be done responsibly, safely and without threatening public health or the environment,” said Doug Parker, Director of EPA’s criminal enforcement division. “The defendant failed to report illegal discharges of production waste fluids believed to be extremely toxic to aquatic environments, and this type of illegal activity compromises the hard work that state, local and federal partners have invested to restore the Gulf of Mexico. Today’s sentencing demonstrates that when companies damage the environment and mislead government officials, they will be held accountable for their actions.”
“The blatant discharge of waste onto our land and into our waterways is an illegal and hazardous act that causes serious harm to human health and the environment,” said Dr. Chuck Carr Brown, DEQ Secretary. “DEQ continues to work closely with its local, state and federal law enforcement partners to ensure that any person or business found to be in violation of environmental laws in the state will be investigated and prosecuted to the fullest extent of the law.”
U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”), the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“LDEQ-CID”), and the Coast Guard Investigative Service Gulf Region (“CGIS”) in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
New York Man Indicted for “Sextorting” a Minor in DelawareRead the Press Release
A federal grand jury in Wilmington, Delaware, indicted a New York man today on charges related to the production and distribution of child pornography and the use of threatening communications, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.
Justin R. Gulisano, 24, of Sodus, New York, was initially arrested on June 30, 2015, in Newark, New Jersey, on a Delaware state arrest warrant for charges related to his sexual exploitation of a child and sexual solicitation of a minor.
According to the indictment, from September 2012 through June 2015, Gulisano attempted to use, persuade, coerce and entice a minor to engage in sexually explicit conduct so that he could produce images of the conduct. In October 2013, Gulisano distributed sexual exploitation images of the minor victim on the Internet. Additionally, the indictment alleges that between April and June 2015, Gulisano threatened to injure the victim’s reputation.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are 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 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.
New York Man Indicted for "Sextorting" a Minor in DelawareRead the Press Release
WILMINGTON, Del. – A federal grand jury in Wilmington, Delaware, indicted a New York man today on charges related to the production and distribution of child pornography and the use of threatening communications, announced U.S. Attorney Charles M. Oberly III of the District of Delaware.
Justin R. Gulisano, 24, of Sodus, New York, was initially arrested on June 30, 2015, in Newark, New Jersey, on a Delaware state arrest warrant for charges related to his sexual exploitation of a child and sexual solicitation of a minor.
According to the indictment, from September 2012 through June 2015, Gulisano attempted to use, persuade, coerce and entice a minor to engage in sexually explicit conduct so that he could produce images of the conduct. In October 2013, Gulisano distributed sexual exploitation images of the minor victim on the Internet. Additionally, the indictment alleges that between April and June 2015, Gulisano threatened to injure the victim’s reputation.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are 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 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.
New Haven Man Pleads Guilty to Federal Firearm Charge Stemming from Violent RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HARRY ANDERSON, a.k.a. “Ace,” 23, of New Haven, pleaded guilty yesterday in New Haven federal court to one count of discharging a firearm in furtherance of a crime of violence.
This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.
In pleading guilty, ANDERSON admitted that on October 21, 2011, he ordered a quantity of crack cocaine from Marquise Moore, whom he knew to be a drug dealer. ANDERSON’s objective in ordering the crack cocaine was not to purchase it, but to rob Moore of the drugs and any cash he had on him at the time. When ANDERSON met Moore, he pulled out a .22 caliber handgun and shot him in the face. ANDERSON then fled, and did not take anything from Moore and did not complete the robbery.
ANDERSON, who is detained, is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 1, 2016, and faces a mandatory minimum term of imprisonment 10 years and a maximum term of imprisonment of life.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Nassau County Man Sentenced to More Than Five Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, FL – Senior United States District Judge Harvey E. Schlesinger has sentenced Jeremy Chris Cartrette (39, Yulee) to five years and six months in federal prison for receiving child pornography over the Internet. He also was ordered to forfeit his computer media and, upon his release from prison, to serve a 15-year term of supervision and register as a sex offender.
According to court documents, during an undercover FBI task force investigation, an officer connected to a host computer and downloaded several images of child pornography. Further investigation traced the host computer to Cartrette’s residence.
On June 19, 2015, law enforcement officers executed a federal search warrant at Cartrette’s home and seized a laptop computer and an external hard drive. During an interview, Cartrette stated that he began downloading child pornography “a couple of years ago,” and that he had tried to quit before but that he “always comes back to it.” Forensic analyses of Cartrette’s computer media revealed at least 7 videos and 19 images of child pornography.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Nassau County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mo Money Tax Return Preparers Plead Guilty to Conspiracy to Defraud the United States and Filing False Tax ReturnsRead the Press Release
Two tax return preparers pleaded guilty to one count of conspiracy to defraud the United States and one count of aiding and assisting in the preparation of a false tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana Boente of the Eastern District of Virginia.
According to court documents, Jeremy Blanchard, 35, and Erik Pittman, 35, both of Memphis, Tennessee, and others prepared numerous false tax returns for the 2011 tax year for customers of their tax return preparation business. Blanchard, who pleaded guilty yesterday, and Pittman, who pleaded guilty today, were preparers in Mo Money Taxes, which operated three locations in the Richmond, Virginia area. Blanchard and Pittman admitted that they created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity credit, to claim tax refunds that customers were not entitled to receive. As part of their guilty pleas, Blanchard and Pittman admitted that their conduct caused a loss to the Internal Revenue (IRS) of more than $250,000, but less than $550,000.
“Fraudulent tax return preparers, like Mr. Blanchard and Mr. Pittman, are facilitating the theft of funds from the American people by preparing false tax returns for customers,” said Acting Assistant Attorney General Ciraolo. “The department will continue to pursue and prosecute these offenders to the fullest extent of the law.”
Blanchard and Pittman each face a statutory maximum sentence of five years in prison and a $250,000 fine on the conspiracy charge and three years in prison and a $250,000 fine on the charge of aiding and assisting in the preparation of false tax returns. U.S. District Judge John A. Gibney for the Eastern District of Virginia set sentencing for June 8, 2016.
Another participant in this scheme, Corey Taylor, 25, of Richmond, pleaded guilty in October 2015 to one count of conspiracy to defraud the United States and one count of aiding and assisting in the preparation of a false tax return. He is awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-Criminal Investigation, the FBI, and the U.S. Postal Inspection Service, who investigated the case and Trial Attorneys Kevin F. Sweeney and Todd Kostyshak of the Tax Division and Assistant U.S. Attorney Stephen Miller of the Eastern District of Virginia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mo Money Tax Return Preparers Plead Guilty Conspiracy to Defraud the United States and Filing False Tax ReturnsRead the Press Release
RICHMOND, Va. – Jeremy Blanchard, 35, and Erik Pittman, 35, both of Memphis, Tennessee, pleaded guilty today to charges of conspiracy to defraud the United States and one count of aiding and assisting in the preparation of a false tax return.
In a statement of facts filed with the plea agreement, Blanchard, Pittman, and others prepared numerous false tax returns for the 2011 tax year for customers of their tax return preparation business. Blanchard, who pleaded guilty yesterday, and Pittman, who pleaded guilty today, were preparers in Mo Money Taxes, which operated three locations in Richmond. Blanchard and Pittman admitted that they created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity credit, to claim tax refunds that customers were not entitled to receive. As part of their guilty pleas, Blanchard and Pittman admitted that their conduct caused a loss to the Internal Revenue Service (IRS) of more than $250,000, but less than $550,000.
Blanchard and Pittman each face a maximum penalty of a total of eight years in prison and a $500,000 fine when sentenced on June 8, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division; and Thomas Jankowski, Special Agent in Charge of IRS-Criminal Investigations, Washington D.C. Field Office, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney. This case was investigated by IRS-Criminal Investigations, the FBI's Richmond Field Office, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Stephen Miller, and Trial Attorneys Kevin F. Sweeney and Todd Kostyshak of the Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-136.
Missouri Man Sentenced for Attempting to Pass Forged PrescriptionsRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Luke Xavier Lore, 48, formerly of Saint Louis, Missouri, was sentenced in the U.S. District Court in Benton, Illinois, on March 9, 2016. Lore had been convicted of two counts of Attempting to Acquire or Obtain a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception or Subterfuge. The District Court sentenced Lore to 9 months in prison, to be followed by 1 year of supervised release, with the first 180 days in a halfway house. The Court also ordered Lore to pay a $200 fine and a $200 special assessment.
According to facts revealed in Court, on February 2, 2015, in Madison County, and on April 6, 2015 in Saint Clair County, Lore created fraudulent prescriptions and attempted to have them passed at pharmacies. In February 2015, he attempted to illegally obtain Hydrocodone, a Schedule II controlled substance, and Alprazolam (trade name: Xanax), a Schedule IV controlled substance. In April 2015, he attempted to illegally obtain Hydrocodone (trade name: Norco).
The case was investigated by Drug Enforcement Administration with the assistance of the Alton Police Department. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Mexican Nationals Plead Guilty to Federal Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two Mexican nationals pled guilty yesterday in federal court in Las Cruces, N.M., to cocaine trafficking charges under plea agreements with the U.S. Attorney’s Office.
Luzelena Lopez, 41, and Alma Ivonne Chavez-Guevara, 35, both Mexican nationals, were arrested in Nov. 2015, and charged in a criminal complaint with conspiracy and possession of cocaine with intent to distribute on Nov. 11, 2015, in Otero County, N.M. According to the criminal complaint, Lopez and Chavez-Guevara were arrested after U.S. Border Patrol agents at the Border Patrol Checkpoint on Highway 70 in Otero County, found approximately 8.7 kilograms (19.22 pounds) of cocaine wrapped in eight bundles inside a duffel bag in their vehicle.
During yesterday’s proceedings, Lopez and Chavez-Guevara pled guilty to a felony information charging them with conspiracy to possess cocaine with intent to distribute. Both women admitted that on Nov. 11, 2015, they were stopped at the Border Patrol Checkpoint on Highway 70. During an inspection of their vehicle, Chavez Guevara admitted that she was present in the United States without permission. Thereafter, the agents found the cocaine in a duffel bag on the rear passenger floorboard. Lopez and Chavez-Guevara admitted that they previously agreed with each other and others to deliver the cocaine to Kansas in exchange for payment.
At sentencing, Lopez and Chavez-Guevara each face a maximum penalty of 20 years in federal prison. Both women will be deported following their incarceration. Lopez and Chavez-Guevara remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo station of the U.S. Border Patrol. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Mescalero Apache Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Corinne Delphine Kinzhuma, 30, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty yesterday afternoon in federal court in Las Cruces, N.M., to assault charges.
Kinzhuma was arrested on Feb. 26, 2015, on a criminal complaint charging her with assaulting a Mescalero Apache man on Dec. 12, 2014, by stabbing him repeatedly in neck, chest, arm and cheek. The assault occurred on the Mescalero Apache Indian Reservation in Otero County, N.M. As a result of the assault, the victim required a chest tube and admission to the surgical intensive care unit for continuous monitoring of his neck wound; he also suffered a fracture of the left radius.
Kinzhuma was subsequently indicted on June 17, 2015, and charged with assault with a dangerous weapon, a knife, with intent to do bodily harm and assault resulting in serious bodily injury on Dec. 12, 2014, in Indian Country in Otero County. During yesterday’s proceedings, Kinzhuma entered a guilty plea to the indictment without the benefit of a plea agreement.
At sentencing, Kinzhuma faces a statutory maximum of ten years in federal prison. Kinzhuma remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Martha’s Vineyard Man Sentenced for Social Security Fraud and Tax EvasionRead the Press Release
BOSTON – An Oak Bluffs man was sentenced today in U.S. District Court in Boston for stealing $160,025 in Social Security benefits and falsifying his 2010 tax return.
Vernon Harris, 63, was sentenced by U.S. District Court Judge Douglas P. Woodlock to six months in prison, three years of supervised release, and was ordered to pay $160,025 in restitution to the Social Security Administration and $21,605 to the Internal Revenue Service. In December 2015, Harris pleaded guilty to theft of public money and tax evasion.
In 2002, Harris applied for Social Security Disability Insurance benefits. In his application, Harris stated that he stopped working in 2001 due to his disabilities; however, in reality, Harris was running a trucking brokerage firm called SilkRoad Logistics out of his home on Martha’s Vineyard when he applied for benefits. Harris wrote himself checks from the business’s account totaling as much as $60,000 to $70,000 in some years and concealed the business from the Social Security Administration (SSA). Harris listed his wife as the proprietor of SilkRoad Logistics on tax returns to conceal the fact that he operated the business. In a 2012 letter Harris sent to the SSA, he falsely affirmed, “my wife is and has been the sole income earner in our household since my disability in 2001.” Harris continued to collect disability benefits while running SilkRoad Logistics until 2015. In total, he illegally received $160,025 in benefits. Harris also falsified information pertaining to SilkRoad Logistics on his 2010 federal income tax return.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Many J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Macy Man Sentenced for Killing His BrotherRead the Press Release
United States Attorney Deborah R. Gilg announced that Daniel Webster, III, age 23, of Macy, Nebraska, was sentenced for his conviction on a charge of voluntary manslaughter. Senior United States District Court Judge Lyle E. Strom sentenced Webster to 48 months of imprisonment to be followed by three years of supervised release.
On August 28, 2014, Webster was at an abandoned house on the Omaha Indian Reservation along with his brother and several other people, some being minors and some being adults. The adults had been drinking throughout the afternoon and early evening. Webster’s brother became increasingly agitated towards his girlfriend causing Webster to intervene. Webster’s brother then began arguing with Webster and a physical altercation ensued. During the altercation Webster stabbed his brother in the neck with a paring knife. Webster’s brother was unarmed at the time. After being stabbed, Webster’s brother attempted to leave the residence, however, he collapsed on the front porch where he later died. An autopsy showed that Webster’s knife had severed his brother’s carotid artery and punctured the trachea.
This case was investigated by the Federal Bureau of Investigation.
Loves Park Man Indicted on Child Pornography ChargesRead the Press Release
ROCKFORD — A Loves Park, Ill. man appeared today before U.S. Magistrate Judge Iain D. Johnson on child pornography charges.
GRANT WOJAHN, 35, of Loves Park, Ill., was indicted on Feb. 2, 2016, by a federal grand jury in Rockford and charged with one count of using a minor to engage in sexual conduct in order to produce child pornography, one count of transporting child pornography via the internet, and two counts of possessing child pornography that had crossed state lines, including an image of a minor under 12 years of age. Wojahn was arrested on Feb. 8, 2016, in Marin County, Cal., and transported by federal authorities back to Rockford. Wojahn pleaded not guilty during his arraignment today before U.S. Magistrate Judge Iain D. Johnston and was ordered held in federal custody until a detention hearing on March 15, 2016, at 2:30 p.m.
Sexual exploitation of a child for the purpose of producing child pornography carries a mandatory minimum of 15 years and a maximum of 30 years in prison, while transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and possessing child pornography carries a maximum of 10 years in prison and up to 20 years in prison for an offense involving a minor under 12 years of age. Each count carries a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment and arrest were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Indictment
Local Music Volunteer Convicted of Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – David Alexander Battle II, 24, who served as a volunteer with the music program at Grace E. Metz Middle School in Manassas, was convicted today by a federal jury on four counts of production of child pornography, attempted coercion and enticement of a minor, receipt of child pornography, and distribution of child pornography.
Battle was arrested by the Manassas City Police Department on June 16, 2015, after law enforcement executed a search warrant at his residence and discovered evidence of child pornography, including two gigabytes of videos that appeared to be child pornography involving infants. Other evidence found at Battle’s residence included child pornography primarily of young boys and girls.
Battle was initially charged on Aug. 6, 2015, and was charged by superseding indictment on Feb. 11, 2016. According to court records and evidence at trial, an Internet Protocol address linked to Battle was used to share 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, coercing and enticing them to send him sexually explicit images of themselves, according to evidence presented at trial. The evidence demonstrated that the defendant personally knew two of the boys he chatted with on this platform.
Battle faces a mandatory minimum penalty of 15 years in prison when sentenced on June 10, 2016. The statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Douglas W. Keen, Manassas City Chief of Police; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jay Prabhu and Special Assistant U.S. Attorney Lauren Britsch are prosecuting the case. The Herndon Police Department and the Northern Virginia/Washington, D.C. Internet Crimes Against Children Task Force (ICAC) assisted in the investigation.
This investigation was a 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.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-274.
Local Man Who Engaged in Sexually Explicit Conversations on Facebook Sent to PrisonRead the Press Release
McALLEN, Texas – A 61-year-old man has been ordered to prison following his conviction of one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. Dennis Ray Frank, of Edcouch, admitted he engaged in inappropriate conversations with a minor female and received a sexually graphic image via email on Nov. 30, 2015.
Today, U.S. District Judge Randy Crane took into consideration the familial relationship and position of trust that Frank held over the minor and handed the defendant a sentence of 156 months in federal prison. Additional information was also presented today, including testimony from an FBI special agent who was able to describe the graphic nature of the sexually explicit conversations involved. Through the use of the Facebook messaging system, Frank chatted with the minor victim for more than two months and discussed topics which included the performance of sexual acts. The Facebook chat messages eventually escalated to discussions regarding plans to have sex with the minor victim during a visit to the Nudist Resort where Frank resided. Testimony also established that Frank engaged the minor victim on web-camera devices in which, on one particular occasion, the defendant masturbated within view of the camera.
Frank was further ordered to pay restitution to the victim in the amount of $2,520 for counseling services and will serve the remainder of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
On Feb. 7, 2013, FBI agents received information from the National Center for Missing and Exploited Children that indicated a young female could be a potential victim of sexual exploitation. Law enforcement soon uncovered the fact that Frank had engaged the minor female child in sexually explicit conversations on Facebook. Upon further investigation, it was determined that Frank had enticed the minor female child to send sexually graphic images of her genitalia to him via email.
Law enforcement executed a search warrant on Frank’s email account, at which time they discovered the image that depicted the minor child’s genitalia. Frank admitted to receiving the child pornography image via his email account on Nov. 5, 2012. He further admitted he had been engaging in those inappropriate conversations and that the young girl had sent him the image.
Frank will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the FBI.
This case, prosecuted by Assistant U.S. Attorneys Alex Benavides and Kimberly Ann Leo, 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."
Leesburg Man Sentenced for Embezzling $2.9 MillionRead the Press Release
ALEXANDRIA, Va. – Victor R. DeAnthony, Jr., 47, of Leesburg, was sentenced today to 36 months in prison for wire fraud for embezzling over $2.9 million from a business based in Herndon. DeAnthony was also ordered to pay $2,902,868 in restitution and forfeiture as well as serve three years of supervised release.
DeAnthony, pleaded guilty on Dec. 22, 2015. According to court documents, DeAnthony admitted to stealing $2,902,868 from Insequence, Inc., a systems engineering and integration company headquartered in Herndon, where he served as president until his termination in 2013. From 2004 through 2013, DeAnthony used corporate funds to make personal purchases and paid himself additional salary and bonus without approval. For instance, DeAnthony caused approximately $556,000 to be paid from Insequence’s corporate bank account to his mortgage lender to pay his monthly mortgage. DeAnthony used the embezzled funds to, among other things, purchase real estate, an automobile, personal watercraft, and a recreational vehicle.
According to court records, in order to conceal the fraud DeAnthony made false entries into the company’s accounting software. For example, in January 2012, DeAnthony wire transferred $59,612.83 from Insequence’s bank account to a title company in order to pay for expenses related to the sale of his personal residence in Leesburg. Later, in accounting records, DeAnthony falsely represented the transaction as a corporate “Facilities: Moving Expense.” Moreover, in May 2012, DeAnthony wire transferred $38,241.62 from Insequence to an account belonging to a law firm in South Carolina that assisted DeAnthony with a personal real estate purchase. In order to disguise the payment, DeAnthony falsely identified the payee as a northern Virginia law firm that the company had hired to negotiate a corporate income tax issue.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris. Assistant U.S. Attorney Uzo Asonye prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-364.
Lawrence Man Sentenced to Prison for Heroin TraffickingRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in U.S. District Court in Boston for trafficking heroin in Haverhill.
Jonathan Santiago, 31, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison and three years of supervised release. In December 2015, Santiago pleaded guilty to possessing with intent to distribute and distributing heroin.
On three occasions, between Nov. 19 and Dec. 1, 2014, Santiago sold drugs to a cooperating witness in Haverhill. Santiago sold a combined 18.3 grams of heroin in the first and second sales. On the third occasion, he sold 17.8 grams of fentanyl. Fentanyl is similar to heroin and morphine, but 30-50 times more powerful. When taken in the same dosage as heroin, fentanyl can cause overdose or death.
The case is part of Operation Zero Tolerance, a joint federal and state investigation of gang-related criminal activity in and around Haverhill focusing particularly on opiate-related drug overdoses. As part of the investigation, law enforcement identified Santiago as an associate of Haverhill gang members.
This case was prosecuted as part of the federal response to New England’s opioid crisis. In 2014, the year in which Santiago was dealing heroin and fentanyl, more than 1,000 people in Massachusetts died of opiate overdoses. In fact, since 2005, more Massachusetts residents have been killed by opiate-related overdoses than in car accidents.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Haverhill Police Chief Alan R. DeNaro, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Narcotics and Money Laundering Unit.
Kingsville Man Heads to Prison for Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Robert Wayne Collins, 63, has been ordered to federal prison following his conviction on one count of possession of child pornography, announced U.S. Attorney Kenneth Magidson. Collins, of Kingsville, pleaded guilty Dec. 1, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos handed Collins a sentence of 84 months. Collins was further ordered to pay a $17,500 fine five years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his plea, the court heard that authorities, while using peer-to-peer software, were able to successfully download of various files containing child pornography from an IP address that was associated with Collins.
In January 2015, agents executed a search warrant at Collin’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 90 images and approximately 160 videos of child pornography. Collins admitted to using the peer-to-peer software to download child pornography.
Collins was arrested on a bond revocation warrant in November 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations investigated with the assistance of 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."
Kenner Woman and Construction Company Plead Guilty to Labor Violations and False StatementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KATIA MURILLO COSTA, age 42, of Kenner, pled guilty today to violating provisions of the Fair Labor Standards Act. Her company, KLV OPERATIONS LLC (“KLV”), also pled guilty to violating the Fair Labor Standards Act and to having representatives make false statements to federal agents.
According to court documents, in November 2013, the U.S. Department of Labor (“DOL”), a department or agency of the United States, began investigating whether KLV was paying its employees proper overtime and minimum wage pay in compliance with the Fair Labor Standards Act. The investigation disclosed that the defendants, KLV and COSTA, failed to pay 47 employees overtime and minimum wage. In addition, representatives of KLV submitted materially false and fraudulent payroll and timesheet records to the DOL, in an effort to make representatives of the DOL believe that KLV was complying with the Fair Labor Standards Act.
COSTA faces a possible penalty of up to six months imprisonment, a fine of up to $10,000, restitution in the amount of approximately $58,679.71, and a special assessment of $25. KLV faces a possible fine of up to $500,000, restitution of approximately $58,679.71, and a special assessment of $400. U.S. District Judge Jane Triche Milazzo set sentencing for June 9, 2016.
U.S. Attorney Polite praised the work of Investigators with the DOL, and Special Agents with the DOL, Office of Inspector General in investigating this matter. Assistant U. S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Joshua Hayworth Sentenced to More Than 16 Years in Prison for Hobbs Act Robbery and CarjackingRead the Press Release
KNOXVILLE, Tenn. – Joshua Hayworth, 25, of Loudon, Tenn., was sentenced on March 10, 2016, by the Honorable Thomas A. Varlan, U.S. District Court Chief Judge, to serve 200 months in federal prison.
After a jury trial in July 2015, Hayworth was convicted of a Hobbs Act robbery at the Burger King located on Simpson Road in Lenoir City, Tenn., which occurred on Jan. 30, 2014, and a carjacking in Knoxville, Tenn., which occurred on Feb. 3, 2014. The trial evidence showed that during the Burger King robbery, Hayworth brandished an airsoft pistol and, while pointing the pistol at the employees, ordered them to fill up a bag with money from the safe. His co-defendant, Timothy Chudley, was employed at the Burger King and, unbeknownst to his co-workers, was in on the robbery. During the commission of the robbery, Hayworth hit Chudley in the head with his pistol, causing Chudley to bleed. Hayworth fled the Burger King in a vehicle that he wrecked less than one mile from the Burger King. He left the accident scene before law enforcement arrived, but the trial evidence revealed that the vehicle contained: the pistol used during the robbery; the robber’s mask, which contained Hayworth’s DNA; Hayworth’s identification card; and prescription medication in Hayworth’s name. Cash from the robbery was also recovered from within the wrecked vehicle and all over the highway. Finally, Hayworth’s cellular telephone, which contained text messages to and from Chudley that showed their planning of the robbery, was also recovered.
Although law enforcement searched for Hayworth, he was not found on the night of the Burger King robbery. Trial evidence revealed that four days after the Burger King robbery, Hayworth carjacked a pregnant woman in Knoxville, Tenn., who was less than one week away from delivering her baby. After he violently wrestled the keys away from her, the pregnant victim had to endure an agonizing wait for an ambulance as she feared that her full-term baby, who was not moving, was dead. Upon arriving at the hospital, it was discovered that the baby was, in fact, healthy.
Agencies involved in this investigation include the Federal Bureau of Investigation (FBI) Safe Streets Task Force, which is made up of agents with the FBI and officers from the Knoxville Police Department and Knox County Sheriff’s Office; Knoxville Police Department; Knox County Sheriff’s Office Major Crimes Unit; Loudon County Sheriff’s Office, and Lenoir City Police Department. Assistant U.S. Attorneys Kelly A. Norris and Cynthia F. Davidson represented the United States.
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Jacksonville Man Sentenced to Federal Prison for Aggravated Identity TheftRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Travis Ware (24, Jacksonville) to two years in federal prison for his role in an identity theft and counterfeit check scheme. He pleaded guilty on November 12, 2015.
According to court documents, on November 23, 2014, troopers with the Florida Highway Patrol pulled over a vehicle occupied by Ware and co-defendants David Lee Mitchell and Hezekiah Williams. During the traffic stop, the troopers observed marijuana inside the SUV. A search of the vehicle revealed 25 counterfeit business checks made out to various individuals and 15 forms of identification from 7 different people. Many of the names on the identification documents matched those printed on the counterfeit checks. Further investigation determined that Ware, Mitchell, and Williams had been driving around three days earlier attempting to fraudulently cash the counterfeit checks and recruiting others to use the ids to cash the checks.
On October 2, 2015, Mitchell and Williams pleaded guilty to attempted bank fraud, possession of counterfeit business checks, and aggravated identity theft. They remain in federal custody pending a sentencing date.
This case was investigated by the Florida Highway Patrol and the United States Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Fumigation Company and Two Individuals Pled Guilty in Connection with Illegal Pesticide Application Resulting in Injuries to a MinorRead the Press Release
Sunland Pest Control Services, Inc. (Sunland), Grenale Williams, 53, of South Bay, and Canarie Deon Curry, 40, of Riviera Beach, pled guilty today in federal court in Fort Pierce before United States District Court Judge Jose E. Martinez in connection with the illegal application of a pesticide that resulted in injuries to a minor child.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Andy Castro, Acting Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, made the announcement.
Sunland, Williams, and Curry, pled guilty for their involvement in the illegal application of sulfuryl fluoride (a pesticide), contrary to the label’s safety requirements, in violation of Title 7, United States Code, Section 136i(b)(1)(B). Sunland also pled guilty to making false statements in connection with the investigation, in violation of Title 18, United States Code, Section 1001. Williams and Curry face a statutory maximum sentence of up to one year in prison and a fine of up to $100,000, to be followed by and a period of supervised release. In addition, Sunland faces up to five years of probation and a $500,000 fine for the false statements conviction. Sentencing is scheduled for May 11, 2016 at 12:00 p.m. in Fort Pierce.
According to court documents, the federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulates the use of pesticides, including those designated for restricted use due to their potential adverse effects, including serious injury. Application of restricted use pesticides is limited to certified applicators or those under the direct supervision of certified applicators. Sulfuryl fluoride, a commonly used antimicrobial in structural fumigations for termites, is one such restricted use pesticide that is registered with the EPA. At the heart of the safe use of such pesticides is compliance with the product label, which includes the written, printed, or graphic matter associated with the pesticide. Under FIFRA, the label is the law, and strict compliance with it is critical to the safe application of the restricted use pesticide. Federal law also prohibits the making of material false statements in a matter within the jurisdiction of the EPA.
Court records and a joint factual statement indicate that in June 2015 residents contracted with Terminix for a home fumigation for termites under an existing warranty. Terminix, without warning or approval, subcontracted the job to Sunland. The fumigation occurred over a weekend and the residents returned to their home on Sunday, August 16, 2015 to find a clearance tag on the front door indicating that it was safe to enter. During the evening several family members became ill, and medical attention was sought for their nine year old son. It was determined that the family’s symptoms were consistent with pesticide poisoning.
A subsequent investigation revealed that contrary to the label requirements for use of the potentially deadly gas, the defendants failed, among other violations, to: provide the Fact Sheet for the pesticide being used; have the required number of properly trained personnel on site following the application of the pesticide; properly aerate the fumigated space; and conduct clearance testing with an approved and calibrated Low Fumigant Level Detection Device. In addition, a clearance tag was left at the premises indicating it was safe to enter when in fact the requisite procedures had not been completed. The family was falsely assured by Terminix and Sunland that the aeration and clearance requirements had been met. Additionally, Sunland representatives misrepresented the specific brand of pesticide that was used and indicated that the fumigation, aeration, and clearance of the home was in accordance with the law when in truth and fact, the defendants were not in compliance.
United States Attorney Wifredo A. Ferrer stated, “Federal regulations are in place to ensure that the public is protected. Individuals and corporations who knowingly side-step the safety protocols that have been instituted expose others to potentially dangerous consequences. The U.S. Attorney’s Office will continue to work with our law enforcement partners to hold those accountable who violate the law.”
“The preventable toxic poisoning of a young boy is a stark reminder of why pesticides must be used properly and responsibly,” said Andy Castro, Acting Special Agent in Charge of EPA’s criminal enforcement program in Florida. “EPA’s investigation revealed numerous FIFRA violations before, during, and after the defendants’ fumigated the victims’ home. These charges demonstrate that those who knowingly misuse pesticide products threaten the most vulnerable among us, and can expect to be prosecuted.”
Mr. Ferrer commended the investigative efforts of the EPA, the Florida Department of Agriculture and Consumer Services, Bureau of Pesticide and Incident Response, and the Florida Office of Agricultural Law Enforcement. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.
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.
Fugitive Captured After Shootout with U.S. Marshals and New York City Detectives Convicted of Assault with A Deadly Weapon and Related Firearms OffensesRead the Press Release
Late this afternoon, following four days of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Oswald Lewis, on charges of assault of federal agents and New York City Detectives by use of a deadly weapon and related firearms offenses. Lewis, also known as “Alexander Louis,” “Junior,” “Andrew Jackson,” “Andre Bernard Jackson,” “John Green,” “Leslie Howard” and “Dre,” faces a maximum sentence of life imprisonment when sentenced on June 23, 2016, by United States District Judge I. Leo Glasser.
The verdict was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Charles G. Dunne, United States Marshal for the Eastern District of New York; William J. Bratton, Commissioner, New York City Police Department; and Delano A. Reid, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division.
Lewis had been wanted since 1991 on numerous drug charges filed in the United States District Court for the Eastern District of Virginia. On August 26, 2014, the U.S. Marshals Service located Lewis in an apartment in the Springfield Gardens section of Queens, New York. Later that evening, Deputy U.S. Marshals and New York City Police Department Detectives went to the apartment to arrest him. When the Deputies entered the apartment, Lewis, who was wearing body armor, yelled that he was holding a hostage and began shooting, barely missing at least one Deputy by mere inches. During the shooting spree, Lewis fired shots out his apartment window at members of the NYPD, who had surrounded the premises. During the exchange of gunfire, Lewis was shot in the arm. He eventually surrendered and was taken into custody. No law enforcement officers were injured.
“These dedicated Deputy U.S. Marshals and NYPD Detectives put their lives on the line every day to protect us from violent criminals such as the defendant Oswald Lewis. His life on the run ended today, and our community is safer for it,” stated Unites States Attorney Capers.”
“Today, US Marshals around the country paused for a moment of silence to remember Deputy US Marshal Josie Wells who was shot and killed by an armed fugitive while serving a warrant in Louisiana one year ago today. The circumstances of the two incidents are similar – a violent fugitive armed with an illegal handgun shooting at law enforcement officers who came to bring him to justice. We are very fortunate that the arrest in New York ended with only minor injuries to Mr. Lewis and no injuries to the law enforcement officers involved. The US Marshals would like to thank the United States Attorney’s Office for the Eastern District of New York for prosecuting Mr. Lewis, and we would like to thank the New York City Police Department for their continued partnership as we work together to keep New York City safe,” stated United States Marshal Dunne.
“ATF Special Agent in Charge Reid stated, “With today’s swift verdict, the defendant will now begin to realize that law enforcement and the criminal justice system remain vigilant and relentless in their pursuit of those who decide to run from their crimes. Finally, Mr. Lewis will face the punishment he has successfully avoided for so many years and hopefully will learn that fugitives - especially those that decide to shoot at law enforcement instead of surrendering - have but one place in society: a jail cell.”
The government’s case is being prosecuted by Special Assistant United States Attorney Jonathan P. Lax.
The Defendant:
OSWALD LEWIS
Age: 44
Queens, New YorkE.D.N.Y. Docket No. 14-CR-523 (ILG)
Founders of Film School for Wounded Veterans Sentenced to PrisonRead the Press Release
Assistant U.S. Attorneys Eric J. Beste (619-546-6695) and Rebecca S. Kanter (619-546-7304)
NEWS RELEASE SUMMARY – March 10, 2016
SAN DIEGO – Judith Paixao and Kevin Lombard, a husband and wife who embezzled federal funds from the Wounded Marine Careers Foundation that were intended to provide job training, benefits and equipment for injured Marines returning from Iraq and Afghanistan were sentenced today, following a July 2015 jury trial.
Paixao was sentenced to six months’ custody and six months’ home confinement; her husband, Lombard, was sentenced to three months’ custody followed by three months’ home confinement. In addition to these custodial sentences, the Court ordered the defendants to pay $150,000 in financial penalties and restitution.
At the hearing, Judge Jeffrey T. Miller, the district court judge who presided over the trial and imposed the sentences, denied the defendants motion for a new trial or judgment of acquittal. In doing so, Judge Miller observed that “whatever commendable vision served to launch the Foundation, that idealism spawned theft, embezzlement and worse.” He noted that there were several “tells,” i.e. facts which created the “lens through which the jury viewed the evidence in this case.” These “tells” included their continuous misrepresentations of donating hundreds of thousands of dollars to the Foundation from the sale of their home, which they actually had lost to foreclosure. Another “tell” related to the defendants’ misrepresentations regarding high-end video cameras acquired by the Foundation and billed to the Department of Veterans Affairs (“VA”) at “bogus” inflated costs.
From 2007-2009, Paixao and Lombard were directors of the Wounded Marine Careers Foundation (“the Foundation”), a tax-exempt entity that trained injured veterans for careers in the film industry. They used the Foundation to defraud the VA and submit false claims to the VA in order to get funds for training and equipment they never provided. Adding insult to injury, the defendants also embezzled funds from the Foundation for their own use.
As detailed in their trial, the defendants made numerous false and misleading statements to the VA in order to obtain funds for training and equipment, and then did not provide all the training or equipment to the veterans. Although the defendants claimed to have donated over $200,000 to start the Foundation, they ended up taking over $400,000 from the Foundation’s accounts over the course of two years.
Rather than paying the Foundation’s creditors (some of whom were members of the Foundation’s Board of Directors), the defendants transferred funds to their own personal credit cards and bank accounts. Although some of this money went to repay expenses they had fronted to the Foundation, evidence presented at trial showed that the defendants ended up taking over $100,000 for themselves. The defendants then used these funds to pay for a variety of personal expenses, including a family vacation in Bermuda; cell phone bills, car insurance and gifts for their family members; prescription medications and counseling costs; wine and dinners for two; and the costs of a New Year’s Day sailing trip around San Diego Bay.
U.S. Attorney Laura Duffy emphasized that “the fraud committed by these defendants - who used money set aside to help wounded veterans and spent it on themselves - was particularly offensive. These defendants capitalized on the misfortune of wounded marines in their time of vulnerability and took advantage of the VA’s commitment to serving wounded veterans to defraud the VA and enrich themselves. War profiteering which takes advantage of our veterans is not in any way, shape or form acceptable.”
The defendants routinely commingled the finances of the Foundation with their personal finances, thereby obstructing the ability of the Internal Revenue Service to monitor the Foundation’s tax-exempt status and determine the defendants’ personal income tax liability.
Among the witnesses who testified at trial were three of the injured veterans who used their vocational rehabilitation benefits to participate in the first training class: Gunnery Sergeant Nick Popaditch and Lance Corporal Joshua Frey. Lance Corporal Frey, who had previously been quoted in a favorable New York Times article, testified at trial that after the article was published the defendants did not give him all the equipment he was promised, and failed to provide him with certain training and job placement.
The trial evidence also showed that Defendant Paixao defrauded the Bob Woodruff Foundation in connection with a restricted grant of almost $100,000 by concealing the fact that one of the intended recipients – a Marine who had been injured in Fallujah – had left the program. Instead of notifying the Bob Woodruff Foundation and asking for a reallocation of the funds, Ms. Paixao took the grant money and used it for other purposes.
In explaining the reason for imposing custodial sentences well below the advisory sentencing guideline range, Judge Miller identified the unique characteristics of each defendant, including their extraordinary community support (including from many members of the military), the low risk of recidivism, and the court’s assessment that the defendants “began with a vision or goal that was worthy” when they first reached out to wounded Marines. Despite these mitigating factors, the Court observed that the defendants “deserved to be prosecuted,” and this case served as important deterrent against those who would be tempted to victimize charitable institutions, their donors or their beneficiaries.
Douglas J. Carver, Special Agent in Charge, VA OIG Western Region stated, “Fraud schemes capitalizing on the misfortune of wounded veterans are particularly egregious. The VA Office of Inspector General will continue to vigorously pursue those who defraud veterans and the Government for personal gain. It is our hope that the successful investigative and prosecutive efforts in this case will serve as a deterrent to others from engaging in criminal activity that cheats veterans and the VA programs designed to assist our nation’s heroes.”
“Today’s sentencing of Kevin Lombard and Judith Paixao sends a clear message that fraud against our veterans will not be tolerated. These veterans endured many sacrifices to protect our country from harm,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. He further added, “IRS Criminal Investigation, in conjunction with our law enforcement partners, is committed to identifying, investigating, and prosecuting individuals who engage in fraud and deceit, and exploit programs designed to benefit others to satisfy their greed.”
DEFENDANTS
Case Number: 13cr3788-JM
Judith Ann Paixao
Age: 61
Afton, Virginia
Kevin Lombard
Age: 64
Afton, Virginia
CHARGES
Count 1: Conspiracy to defraud the United States and commit the offenses (18 U.S.C. § 371).
Guilty as to both defendantsCounts 2-9: Theft from an organization receiving federal funds (18 U.S.C. § 666(a)(1)).
Defendant Paixao: Guilty as to all counts
Defendant Lombard: Guilty on counts 2-4, 6-10Counts 10-12: False claims (18 U.S.C. § 287)
Guilty as to all counts for both defendantsCount 13: Mail fraud (18 U.S.C. § 1341)
Defendant Paixao: GuiltySENTENCES
PAIXAO – 6 months’ custody on all counts, 2 years’ supervised release with a condition of 6 months’ home confinement on all counts, concurrent; $1,300 special assessment; $75,956 restitution ($54,688 to VA and $21,268 to Bob Woodruff Foundation); $76,873 forfeiture
LOMBARD – 3 months’ custody on all counts, 2 years’ supervised release with a condition of 3 months’ home confinement on all counts, concurrent; $1,100 special assessment; $54,688 restitution to VA; $70,873 forfeiture
INVESTIGATING AGENCIES
Department of Veterans Affairs, Office of Inspector General
Internal Revenue Service, Criminal InvestigationFormer Wilmington Housing Authority Employee Sentenced to 12 Months in Prison for EmbezzlementRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Damien Piper, age 34, of Wilmington, Delaware, was sentenced today by the Honorable Gregory M. Sleet, United States District Judge for the District of Delaware, to 12 months and one day in prison, and full restitution. The defendant pleaded guilty to Theft of Public Funds, in October 2015.
According to court filings and statements made in court, the defendant was an Assistant Site Manager for the Wilmington Housing Authority’s Crestview Apartments. In February 2012, he began converting residents’ rental payments to his personal use. Residents often paid their rent by money order. Piper received and altered the money orders, making them payable to himself. Piper deposited the money orders into bank accounts he owned and controlled, and he cashed some of the money orders at check cashing businesses.
From February 10, 2012, and continuing up to and including October 7, 2014, Piper took more than 700 money orders that were designated for the Housing Authority, and he obtained at least $179,000. Piper altered the Housing Authority’s computerized records to conceal the converted payments as “adjustments.” These altered Housing Authority records indicated that less rent was due from the residents. In fact, Piper collected the full amount of rent from the residents and kept the “adjustment” amount for himself.
Judge Sleet stated, among other things, that “the impact on the Housing Authority was real and apparent, if not devastating,” and the defendant “damaged the reputation of the Agency for his own enrichment.”
U.S. Attorney Oberly commented, “The theft of money from those who pay rent to the Wilmington Housing Authority is particularly despicable, and the prosecution of Mr. Piper was warranted. I thank all those involved that helped bring this matter to a successful conclusion.”
This case is the result of an investigation conducted by the U.S. Department of Housing & Urban Development, Office of Inspector General, and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.
Former Stuart Youth Pastor Pleads Guilty to Production and Distribution of Child PornographyRead the Press Release
Today, a former youth pastor pleaded guilty to the production and distribution of child pornography before Chief Magistrate Judge Frank J. Lynch, Jr., in Fort Pierce, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Jeffrey Brian Mobley, 24 of Ocala, formerly of Stuart, Florida pleaded guilty to an indictment, charging four counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e) and two counts of distribution of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1). Mobley faces a mandatory minimum of 15 to 30 years’ imprisonment for the production counts and a mandatory minimum of 5 to 20 years’ imprisonment for the distribution offenses. Mobley is scheduled to be sentenced by U.S. District Judge Jose E. Martinez on May 9, 2016 at 1:30 p.m.
According to the court record, in September 2015, a suspicious conduct report was made to the Martin County Sheriff’s Office concerning a youth pastor, Jeffrey Brian Mobley, and a minor who was under his trust and care through a religious based youth program in Stuart, Florida. During the course of the investigation law enforcement learned that Mobley, while the youth pastor, engaged in sexual intercourse with a minor who was a participant in the church’s youth program. Using various forms of electronic communication, Mobley induced the minor to engage in sexual activity and produced sexually explicit images of their illicit relationship.
This case was brought as part of Project Safe Childhood (PSC), 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Mr. Ferrer commended the investigative efforts of the FBI and Martin County Sheriff’s Office for their work on this case. Mr. Ferrer also thanked the members of the United States Attorney’s Office for the Middle District of Florida for their assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Former Seminole County High School Teacher Sentenced to 27 Years on Federal Child Exploitation ChargesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Gregory A. Vaughn (59, Seminole County) to 27 years in federal prison for enticement of a minor and production of child pornography. He received a concurrent sentence of 20 years' imprisonment for receiving child pornography. Vaughn must serve a life term of supervision following his release and register as a sex offender. The Court also ordered Vaughn to pay $7,500 in restitution.
According to court records, during a span of two years, Vaughn groomed and persuaded a minor to produce and send him explicit images. He informed the girl that he wanted to pay for the pictures, and he structured a pay chart for the types of photos she should take and send to him. Vaughn mailed the girl money, books, candy, clothes, underwear, and makeup in exchange for the pictures she had sent to him.
Vaughn’s cellphone and computer were searched pursuant to a state search warrant and agents were able to recover images of the victim and other children from his computer. Agents also interviewed another victim, who also had been groomed and enticed into producing child pornography by Vaughn.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Niagara Falls Businessman Sentenced for Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Timothy DePetris, 46, of Niagara Falls, NY, who was convicted of bank fraud, was sentenced to 27 months in prison by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution to M&T Bank totaling $177,509.32.Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that the defendant, as owner of Electro-Dyn Choke Corporation in Niagara Falls, caused payroll checks to be issued to him and another individual and negotiated the payroll checks even though he knew there were insufficient funds in corporation’s account at M&T Bank to cover the checks. As a result of the defendant’s conduct, M&T Bank suffered a loss of $177,509.32.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Former Healthcare Employee Indicted for Involvement in Stolen Identity Tax Refund Fraud Scheme and Unauthorized Disclosure of Patient InformationRead the Press Release
A Montgomery, Alabama resident self-surrendered earlier today after she was indicted March 3 on one count of multi-object conspiracy to commit identity theft and wire fraud, two counts of possessing 15 or more unauthorized access devices, two counts of aggravated identity theft and one count of wrongful disclosure of personally identifiable health information, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr., of the Middle District of Alabama.
According to court documents, Alana Wells worked at a healthcare company from June 2011 through August 2013, where she had access to patient information protected from disclosure under the Health Insurance Portability and Accountability Act of 1996. She is alleged to have stolen the names, dates of birth and social security numbers of patients from her employer’s database and provided these identities to Fredrick Hill. Hill then provided the stolen personal identification information to Christopher Davis, who, along with others, used it to file fraudulent federal tax returns with the Internal Revenue Service (IRS) requesting tax refunds.
If convicted, Wells faces a statutory maximum sentence of five years in prison on the conspiracy charge, 10 years in prison for each count of access device fraud, one year in prison for the charge of wrongful disclosure of personally identifiable health information, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, which will be in addition to any other term of imprisonment she receives. She also faces substantial monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Jason H. Poole, Kathryn A. Kimball and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Jonathan S. Ross of the Middle District of Alabama, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former East Haven Zoning Official Who Solicited and Received Payments from Residents is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that FRANK BIANCUR, JR., 41, of West Haven, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of incarceration in a halfway house, followed by two years of supervised release, for seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven. During his term of supervised release, BIANCUR must spend six months in home confinement with electronic monitoring and perform 200 hours of community service.
According to court documents and statements made in court, BIANCUR was employed as the Town of East Haven’s Planning and Zoning Administrator/Zoning Enforcement Officer. In pleading guilty, BIANCUR admitted that he sought and received payments from at least five individuals in exchange for official acts he rendered as the Zoning Enforcement Officer.
In May 2015, a resident of East Haven contacted the East Haven Police Department and the FBI with information that he/she had been extorted by BIANCUR since approximately October 2012 and, as a result, had made cash payments to BIANCUR. On May 19, 2015, BIANCUR called the victim and informed the victim that BIANCUR had to inspect an addition to the victim’s residence. Although BIANCUR stated that he was “fighting” for the victim, he also required a payment of $200 or he would make the victim tear down the addition. On May 21, 2015, the victim engaged in a consensually-recorded meeting with BIANCUR at BIANCUR’s office in East Haven Town Hall. During the meeting, the victim gave BIANCUR $200 in cash, which BIANCUR put in his pocket.
BIANCUR also has admitted that he sought and received $500 cash payments from two additional East Haven residents in order to resolve zoning violations.
BIANCUR was ordered to pay $6,265 in restitution.
BIANCUR was arrested on May 27, 2015. On December 1, 2015, he pleaded guilty to one count of theft of honest services mail fraud.
Prior to his employment by the Town of East Haven, BIANCUR was employed by the City of West Haven and the City of Bridgeport.
This matter was investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
The Connecticut Public Corruption Task Force includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. Citizens are encouraged to report corruption to the Task Force by calling 203-238-0505.
Former CEO of Long Island’s Synergy Brands, Inc. Sentenced to 63 Months in Prison for Operating A Massive Check Kiting SchemeRead the Press Release
Earlier today in Brooklyn federal court, Mair Faibish, the former Chief Executive Officer of Synergy Brands, Inc. (Synergy), was sentenced to 63 months’ imprisonment for his role in defrauding Signature Bank out of $26 million through a massive check kiting scheme, making false statements to the United States Securities and Exchange Commission (SEC), and defrauding investors by overstating the value of the company. The sentencing proceeding was held before U.S. District Judge Eric N. Vitaliano. Faibish was convicted after a three-week jury trial in March 2014.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“The defendant played fast and loose with the truth and with federally insured money, kiting checks back and forth across the Canadian border to defraud auditors, banks, and investors. His actions have now landed him in federal prison,” stated United States Attorney Capers. “We will aggressively investigate and prosecute those who exploit investors and banks.” Mr. Capers extended his grateful appreciation to U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), which led the government’s criminal investigation, and the Nassau County Police Department.
Synergy was a publicly-held food products company that traded on the NASDAQ and Over-the-Counter exchanges and manufactured and distributed various food products. As proven at trial, Faibish and his co-conspirators, on behalf of Synergy, funneled approximately $1.3 billion in checks that were not backed by sufficient funds through Signature Bank, Capital One Bank, and various Canadian bank accounts of associated food manufacturers and distributors in Canada. The Canadian companies then sent checks in corresponding amounts, which were also not backed by sufficient funds, back to Faibish-controlled shell companies. Because the banks made deposited funds immediately available for withdrawal, the scheme artificially inflated the companies’ account balances. Faibish and his co-conspirators used Synergy’s inflated bank account balances to book millions of dollars in fictitious accounts receivable and revenue.
As a result of this fraud, FDIC-insured Signature Bank lost approximately $26 million that Faibish and his co-conspirators had withdrawn before the bank uncovered the scheme. Following the scheme’s collapse, Synergy was taken into bankruptcy, and its publicly traded stock became essentially worthless, causing millions of dollars in investor losses. On November 4, 2014, the Court ordered Faibish to pay $51,166,000 in forfeiture.
The trial evidence also established that Faibish falsely inflated the values of Synergy’s sales, cost of goods sold, and pre-paid expenses in filings with the SEC for the quarter ending June 30, 2008. These material misrepresentations were breaches of the defendant’s fiduciary duties to investors.
This prosecution was the result of efforts 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’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by the office’s Business and Securities Fraud Section. Assistant United States Attorneys Sylvia S. Shweder and Jack Dennehy are in charge of the prosecution. Assistant U.S. Attorney Brian D. Morris of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendant:
MAIR FAIBISH
Age: 55
Residence: Huntington Station, New YorkE.D.N.Y. Docket No. 12-CR-265 (ENV)
Federal Court Permanently Enjoins Los Angeles County Pizza Parlor and its Owner from Accruing Payroll Tax LiabilitiesRead the Press Release
LOS ANGELES – A federal judge has ordered that Evnol, Inc., which operates Palisades Pizza, and the company’s owner, Christopher H. Bandt, timely file payroll tax returns and pay payroll taxes.
In an order filed on Monday, United States District Judge Manuel L. Real entered a permanent injunction requiring Evnol and Bandt to timely file payroll tax returns and pay any payroll taxes that accrue.
According to the civil lawsuit filed by the United States, Evnol has repeatedly failed to timely file payroll tax returns or pay payroll taxes.
“Since the third quarter of 2007, Evnol has repeatedly failed to comply with its employment tax obligations despite repeated efforts by the IRS to bring it into compliance,” according to the government’s lawsuit. “Specifically, Evnol consistently failed to meet its obligations to make complete federal employment tax deposits and routinely failed to file timely employment and unemployment tax returns.”
The permanent injunction entered by the Court requires the defendants to stay current on their federal employment tax obligations.
Judge Real issued a default judgment against Evnol and Bandt, in part, because of “their refusal to participate in this litigation,” Judge Real wrote in his order.
United States Attorney Eileen M. Decker complimented the revenue officer of IRS Field Collection for investigating and preparing the civil case. “Without the hard work of the IRS and the continued flow of tax revenue, government could not function,” said United States Attorney Decker. “Now that tax season is upon us, this case is an important reminder that everyone meet their obligations and file accurate tax returns in a timely manner.”
Father and Son Indicted for String of Robberies Including Garden Oaks Post OfficeRead the Press Release
HOUSTON – Two men have been charged in a seven-count indictment for their roles in a spree of Houston-area robberies committed within the span of one week in January 2016, announced U.S. Attorney Kenneth Magidson.
Joe Robert Martinez, 40, of Houston, and his son, Joe Robert Martinez, 21, of Hockley, were indicted March 3, 2016. The elder Martinez was already in custody, but the son was arrested today. Both are expected in federal court before U.S. Magistrate Judge Frances Stacy tomorrow at 10:00 a.m.
Both are accused of conspiracy to interfere with commerce by robbery, aiding and abetting interference with commerce by robbery and aiding and abetting the use of a firearm during the commission of a crime of violence.
The elder Martinez was previously charged by complaint for the Jan. 28, 2016, armed robbery of the Garden Oaks Post Office located at 3816 North Shepherd in Houston. During the course of the investigation, law enforcement discovered additional robberies allegedly involving him and his son. Specifically, both defendants have been charged with the armed robberies of Taqueria Launica #3 at 10900 Beechnut on Jan. 21, 2016, and Timewise Foodstores #107 at 3316 Crosstimbers on Jan. 26, 2016. The elder Martinez is the only defendant charged in the Garden Oaks post office robbery.
The indictment alleges the father and son interfered with interstate commerce by robbery at each of these business locations. As part of the conspiracy, one or more co-conspirators would enter the store, display a firearm and take by threat of force cash, cigarettes and personal property of employees.
For the charges of conspiracy and interference with commerce by robbery, both face up to 20 years in prison. If convicted of brandishing a firearm during a crime of violence they also face a minimum of seven years which must be served consecutively. If convicted of any additional firearms charges, they would also face another mandatory consecutive sentence of 25 years in prison.
The charges are the result of an investigation conducted by the U.S. Postal Inspection Service, in conjunction with the Houston Police Department. Assistant U.S. Attorneys Joe Porto and Heather Winter are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Eufaula Woman Sentenced to 72 Months, Eufaula Man and Checotah Woman Sentenced to 21 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KERENSA KAELENE MARA, age 38 and MARQUIS WAYNE BRANDT a/k/a Mark Brandt, age 40, both of Eufaula, Oklahoma and REBEL LYNN CRABTREE, age 47, of Checotah, Oklahoma, were sentenced for Drug Conspiracy, in violation of Title 21, United States Code, Section 846.
The defendants were sentenced as follows:
BRANDT: 21 months imprisonment, followed by 3 years of supervised release.
CRABTREE: 21 months imprisonment, followed by 3 years of supervised release.
MARA: 72 months imprisonment, followed by 3 years of supervised release.
Charges arose from an investigation by the Navarro County Sheriff’s Department in Texas, the District 18 District Attorney’s Drug Task Force, the Oklahoma Bureau of Narcotics, the Drug Enforcement Administration and the United States Department of Veterans Affairs, Office of Inspector General. The defendants were indicted in July, 2015 and pled guilty in August, 2015.
The Indictment alleged that beginning in or about October 2014 and continuing to in or about January 2015, in the Eastern District of Oklahoma and elsewhere, the defendants knowingly and intentionally agreed together, with each other, and with other persons known and unknown to the Grand Jury, to illegally obtain Schedule II and IV controlled substances by means of presenting fraudulent prescriptions to pharmacies and conspired to possess with intent to distribute and distribute Schedule II and IV controlled substances.
As part of the conspiracy the defendants would obtain stolen prescription pads, legitimate DEA numbers and copies of doctor’s signatures from the Jack C. Montgomery Veterans Affairs Medical Center, for the purpose of forging prescriptions of controlled substances. The defendants would recruit people to present those forged prescriptions on their behalf in return for pay and then distribute the fraudulently obtained illegal drugs or trade illegal drugs for other drugs.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings.
Assistant United States Attorney Edward Snow represented the United States.
Eric Dillon Indicted for 7-Eleven Hobbs Act Robbery and Causing DeathRead the Press Release
HAMMOND- United States Attorney David Capp announced today that an Indictment was filed charging Eric M. Dillon, 27, of Gary, Indiana with one count of Hobbs Act Robbery, one count of using a firearm during a crime of violence and one count of causing death during a crime of violence.
On January 20, 2016, at approximately 4:30 am, Dillon allegedly entered the 7-Eleven store at 6031 Hohman Avenue, Hammond, Indiana. Dillon entered the store with a handgun, demanded money, and shot and killed the clerk.
United States Attorney Capp said, “this tragic act of violence will not be tolerated in our community. My office and federal law enforcement will continue to utilize all of our resources to work with our state and local partners to apprehend and prosecute these perpetrators.”
This case was investigated by the Hammond Police Department and the Federal Bureau of Investigation with assistance from the Lake County Prosecutor’s Office. The case is being prosecuted by Assistant United States Attorneys Thomas M. McGrath and Jennifer Chang.
Anyone with any knowledge of Eric Dillon or his associates is urged to call the FBI at 219-769-3719 or 317-595-4000. All phone calls will be treated confidentially.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Ellicott City Man Admits to Distributing Heroin Leading to Overdose DeathRead the Press Release
Baltimore, Maryland – Ian Daniel Ugol, age 24, of Ellicott City, Maryland pleaded guilty today to distribution of heroin.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA), Baltimore District Office; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief Gary Gardner of the Howard County Police Department.
DEA Assistant Special Agent in Charge Don Hibbert stated, “The Drug Enforcement Administration is focused not only on large scale drug traffickers, but also on cases where the distribution of an illegal drug has a direct causal link to the death of an individual. The arrest and guilty plea in this case illustrates that the results of the illegal distribution of narcotics to users are not only tragic, but are often deadly.”
According to his plea agreement, on November 13, 2013, Ugol communicated with the victim through social media, text messaging and telephone conversations to arrange for Ugol to obtain heroin for the victim’s use. During that time, Ugol was also in contact with another individual known as a source for heroin. Between 10:58 pm on November 13, 2013, and four minutes after midnight on November 14, 2013, there were five short telephone conversations and one text between Ugol and the source of supply arranging for Ugol to obtain heroin for the victim. According to text messages, Ugol and the victim met at or near a bowling alley in Ellicott City to arrange for the victim and Ugol to get the heroin. Before 7:00 a.m. on November 14, 2013, the victim was discovered by his parents at their home, unconscious and was not breathing. He was pronounced dead at 7:13 a.m. and the medical examiner determined that the cause of death was heroin and oxycodone intoxication.
Ugol faces a maximum sentence of 20 years in prison for distribution of heroin. U.S. District Judge Marvin J. Garbis has scheduled sentencing for August 17, 2016, 2016 at 2:15 p.m.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, and Howard County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Andrea L. Smith, who is prosecuting this Organized Crime Drug Enforcement Task Force case.