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Saturday 16 January 2016
Columbus Gang Members Plead Guilty to Murder, Rico ChargesRead the Press Release
COLUMBUS, Ohio – Three Columbus men pleaded guilty in connection to a racketeering case involving the organized criminal enterprise known as the Short North Posse.
Allen L. Wright, 30, pleaded guilty to one count of racketeering conspiracy and two counts of murder in aid of racketeering.
Tysin L. Gordon, 30, and Freddie K. Johnson, 29, each pleaded guilty to one count of racketeering conspiracy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Michael Boxler, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs, announced the pleas entered into yesterday before U.S. District Judge Algenon L. Marbley.
The three were charged by a superseding indictment in October 2014. A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons trafficking, extortion and robbery.
Racketeering conspiracy is a crime punishable by up to 20 years in prison. Murder in aid of racketeering carries a potential maximum sentence of life in prison or the death penalty.
U.S. Attorney Stewart commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Friday 15 January 2016
Williamsport Men Indicted for Distribution of Heroin and CocaineRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a grand jury in Williamsport returned a five-count indictment yesterday charging two Williamsport men with conspiracy to distribute heroin and cocaine, distribution of cocaine, and possession with intent to distribute heroin and cocaine.
According to United States Attorney Peter Smith, the indictment alleges, in or around June 2014, Rasheem Jarbar Ruley, age 24, and Antoine Paris Davis, age 38, conspired to distribute heroin and cocaine to drug users and sellers in Williamsport and distributed and possessed those substances with the intent to distribute on four separate occasions. The indictment alleges that Ruley and Davis stored heroin and cocaine at their residence on Tinsman Avenue in Williamsport, including a large bag containing over 100 grams of heroin (136 small bags of heroin packaged for sale), 16 bags of cocaine, and digital scales.
This matter was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County District Attorney’s Office, and the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney George Rocktashel.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Williamsport Man Indicted for Heroin TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Williamsport man was indicted yesterday by a federal grand jury for heroin trafficking and the illegal possession of a firearm.
According to United States Attorney Peter Smith, the grand jury alleges that Braheem Johnson, age 27, engaged in multiple deliveries of heroin in Williamsport in 2015. A search of Johnson’s apartment in May 2015 uncovered a supply of over 1000 packets of heroin bundled for distribution to others. Also recovered was an unlicensed .22 caliber handgun which Johnson was prohibited from possessing under Federal law.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Geoffrey MacArthur.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to life imprisonment, a term of three years supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Washington County Man Convicted of Defrauding HospitalRead the Press Release
PANAMA CITY, FLORIDA – Yesterday afternoon, a federal jury convicted Eon L. Menckeberg, 55, of Chipley, Florida, of six counts of wire fraud for falsely representing to a hospital that he possessed health insurance to obtain specialized medical treatment services for a broken ankle. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2012, Menckeberg visited the Jackson County Hospital emergency room after sustaining a compound fracture to his ankle. He was treated and received surgery for his injury. Subsequently, in September 2012, Menckeberg went to the Wound Trauma Institute at the Northwest Florida Community Hospital to obtain elective hyperbaric-oxygen treatment to aid in the healing of the wound. To pay for the treatments, he falsely told hospital staff that he possessed health insurance through Lloyd’s of London and was president of the Prince Trust. Menckeberg submitted false documents purporting to confirm insurance coverage and authorizing the elective treatments at the hospital. Menckeberg received numerous hyperbaric-oxygen treatments during the next several months, and the treatments and physician costs at the Northwest Florida Community Hospital totaled more than $262,000. Menckeberg was assisted in the fraud by a woman who posed as a Lloyd’s of London broker who told the hospital that Menckeberg had sufficient insurance to cover his medical treatment. The monies owed to the hospital were never paid by Menckeberg.
While the jury was deliberating, the defendant was taken into federal custody pending his sentencing for violating the terms of his pre-trial release for being illegally present in the U.S. At a hearing, it was revealed that Menckeberg was not a United States citizen, but actually a citizen of Suriname. Nineteen years earlier, the Immigration and Naturalization Service denied Menckeberg’s petition to become a permanent resident alien and ordered him to voluntarily depart from the United States by December 26, 1986. Menckeberg failed to do so. Menckeberg subsequently obtained a Florida driver’s license and claimed to be a U.S. citizen born in Florida. Menckeberg has been living and posing as a U.S citizen for the past 19 years.
Menckeberg faces a maximum of 20 years in prison on each count. The sentencing hearing is scheduled for April 14, 2016, at 9:00 a.m. at the United States Courthouse, in Panama City, Florida.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services Division of Insurance Fraud. It was prosecuted by Assistant United States Attorney Stephen M. Kunz.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Universal Aryan Brotherhood Associate Sentenced for Violence Committed in Aid of RacketeeringRead the Press Release
TULSA, Okla.– An associate of the Universal Aryan Brotherhood (UAB) prison gang was sentenced to 57 months in prison today in federal court for violence committed in aid of racketeering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Robert Allen Paul Bryan, 41, of Tulsa, Oklahoma, pleaded guilty on June 4, 2015, before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma.
In connection with his guilty plea, Bryan acknowledged his association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Bryan admitted that in May 2013, he and other UAB members, operating on orders from the UAB’s governing body, restrained a former UAB member while other gang members used a heated knife to burn off the victim’s UAB neck tattoo.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Tulsa Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service-Criminal Investigations Division; the FBI; the Tulsa County Sheriff’s Office and the Oklahoma Department of Corrections investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.
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Universal Aryan Brotherhood Associate Sentenced for Violence Committed in Aid of RacketeeringRead the Press Release
An associate of the Universal Aryan Brotherhood (UAB) prison gang was sentenced to 57 months in prison today in federal court for violence committed in aid of racketeering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Robert Allen Paul Bryan, 41, of Tulsa, Oklahoma, pleaded guilty on June 4, 2015, before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma.
In connection with his guilty plea, Bryan acknowledged his association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma. Bryan admitted that in May 2013, he and other UAB members, operating on orders from the UAB’s governing body, restrained a former UAB member while other gang members used a heated knife to burn off the victim’s UAB neck tattoo.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Tulsa Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service-Criminal Investigations Division; the FBI; the Tulsa County Sheriff’s Office and the Oklahoma Department of Corrections investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.
Two Vallejo Residents Plead Guilty to Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Zalathiel Aguila, 42, and Omar Anabo, 53, both of Vallejo, pleaded guilty today to conspiracy to make false statements on loan applications, United States Attorney Benjamin B. Wagner announced.
According to court documents, between October 2004 and May 2007, Aguila and Anabo operated Vallejo‑based Capital Access LLC, an entity targeting homeowners facing foreclosure. The defendants’ “Keep Your Home” program purported to be a temporary rescue plan whereby “qualified investors” took over the mortgages while the homeowners paid rent and worked on rebuilding their credit. The defendants convinced homeowners to sign over title to their homes, which were then sold to straw buyers. The straw buyers obtained loans under fraudulent pretenses by claiming on loan applications that, for example, they intended to occupy the homes as primary residences and that no part of the down payment for the purchase was borrowed. In fact, Capital Access provided the down payment amounts, and the straw buyers never intended to live in the properties. The defendants stripped the equity from the homes and used it to pay the operating expenses of Capital Access, additional fraudulent home purchases, monthly housing payments on the homes for a limited period of time, and personal expenses.
Many of the distressed homeowners were never told that they were permanently signing over title to their homes to Capital Access. Victim homeowners suffered substantial financial hardship; they lost their homes and were forced to move.
In all, the scheme caused the fraudulent sale of at least $27 million in home properties, involving at least 69 properties across California, and at least $23.99 million in fraudulently obtained property loans. Lenders lost at least $10.47 million as a result.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Aguila and Anabo are scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on April 1, 2016. Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Men Arrested for Conspiring to Illegally Export TurtlesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC COTTRELL, age 44, of Minden, Louisiana, and RAYMOND CHIU, age 72, of Foster City, California, appeared today before United States Magistrate Judge Karen Roby after being arrested on a criminal complaint which charged them with violations of the Lacey Act (16 U.S.C. § 3372), smuggling goods from the United States (18 U.S.C. § 554), and conspiracy (18 U.S.C. § 371).
According to court records, from March 25, 2015 through the present, CHIU and COTTRELL conspired to purchase and smuggle unpermitted turtles, including Diamondback Terrapins.
If convicted, the maximum penalty as to the Lacey Act and conspiracy charges are five years imprisonment, a $250,000 fine, and a three year term of supervised release. The maximum penalties as to the smuggling charge is ten years imprisonment, a $250,000 fine, and a three year term of supervised release. A detention hearing is scheduled for next week.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
Two Members of Al-Shabaab Sentenced for Conspiring to Provide Material Support to the Terrorist OrganizationRead the Press Release
Ali Yasin Ahmed, aka Ismail, 31, and Mohamed Yusuf, aka Abu Zaid, Hudeyfa and Mohammed Abdulkadir, 33, were each sentenced to 11 years in prison by U.S. District Judge John Gleeson of the Eastern District of New York for conspiring to provide material support to al-Shabaab, a designated foreign terrorist organization.
The sentences were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York and Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office.
As stated in court today and according to court documents, between approximately December 2008 and August 2012, the defendants served as members of al-Shabaab in Somalia, where they supported al-Shabaab and its extremist agenda. In early August 2012, the defendants were apprehended in East Africa by local authorities while on their way to Yemen. On Nov. 14, 2012, the FBI took custody of the defendants and brought them to the Eastern District of New York for prosecution. They pleaded guilty on May 12, 2015.
“Ahmed and Yusuf travelled to Somalia to fight on behalf al-Shabaab as part of the terrorist organization's cadre of foreign fighters,” said Assistant Attorney General Carlin. “The National Security Division remains committed to identifying, disrupting and holding accountable all who seek to provide material support to and fight on behalf of designated foreign terrorist organizations.”
“These defendants left their adopted European homes to support al-Shabaab, a violent terrorist organization that has demonstrated its capabilities and motives in numerous terrorist attacks overseas and has publicly called for attacks against the United States,” said U.S. Attorney Capers. “Today’s significant sentences reflect the seriousness of the defendants’ criminal conduct and will serve as a strong deterrent to others considering the path to violence.”
“The guilty plea and sentencing of these men for providing material support to al-Shabaab, demonstrates the U.S. government’s commitment and leadership in prosecuting persons whose intention is to violently assault societies different than their own,” said Assistant Director in Charge Rodriguez. “We remain steadfast in identifying and stopping such attacks. We will continue to work within the framework of the U.S. justice system to hold terrorists accountable for their malicious intentions and criminal actions. Special thanks to all our law enforcement and intelligence community partners on the JTTF, whose joint efforts keep us safe. We are also grateful for the international cooperation we received to bring these terrorism subjects to justice.”
The defendants, both naturalized Swedish citizens, traveled to Somalia intending to wage violent jihad on the U.N.-sanctioned African Union Mission in Somalia (AMISOM) and Somali government forces that were attempting to bring stability to that war-torn country. Once in Somalia, the defendants participated in numerous attacks on government forces. Yusuf is featured in an al-Shabaab propaganda video in which he encourages young men to travel to Somalia and join al-Shabaab and threatened a cartoonist who had depicted the prophet Mohammad. A third defendant, Madhi Hashi, is scheduled to be sentenced on Jan. 29, 2016.
Assistant Attorney General Carlin joined U.S. Attorney Capers in thanking the federal, state and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York.
The prosecution is being handled by Assistant U.S. Attorneys Shreve Ariail, Seth D. DuCharme and Richard M. Tucker of the Eastern District of New York, along with Trial Attorney Annamartine Salick of the National Security Division’s Counterterrorism Section. Trial Attorney Shanna Batten of the Department of Justice’s Office of International Affairs and Dan Stigall of the National Security Division also provided invaluable assistance.
Two Members of Al-Shabaab Sentenced to 11 Years for Conspiring to Provide Material Support to the Terrorist OrganizationRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Ali Yasin Ahmed and Mohamed Yusuf were sentenced to 11 years in prison by United States District Judge John Gleeson for conspiring to provide material support to al-Shabaab, a designated foreign terrorist organization. The defendants, both naturalized Swedish citizens, traveled to Somalia intending to wage violent jihad on the U.N.-sanctioned AMISOM and Somali government forces that were attempting to bring stability to that war-torn country. Once in Somalia, the defendants participated in numerous attacks on government forces, and Yusuf appeared in an al-Shabaab recruiting video aimed at inducing young Muslim men in Western countries to leave their homes and join the terrorist organization.
The sentences were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, John P. Carlin, Assistant Attorney General for National Security, and Diego Rodriguez, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office.
As stated in court today and according to court documents, between approximately December 2008 and August 2012, the defendants served as members of al-Shabaab in Somalia, where they agreed with others to support al-Shabaab and its extremist agenda. In early August 2012, the defendants were apprehended in East Africa by local authorities while on their way to Yemen. On November 14, 2012, the Federal Bureau of Investigation took custody of the defendants and brought them to the Eastern District of New York for prosecution. They pleaded guilty on May 12, 2015.
“These defendants left their adopted European homes to support al-Shabaab, a violent terrorist organization that has demonstrated its capabilities and motives in numerous terrorist attacks overseas and has publicly called for attacks against the United States,” stated U.S. Attorney Capers. “Today’s significant sentences reflect the seriousness of the defendants’ criminal conduct and will serve as a strong deterrent to others considering the path to violence.”
“Ahmed and Yusuf travelled to Somalia to fight on behalf al Shabaab as part of the terrorist organization's cadre of foreign fighters,” said Assistant Attorney General Carlin. “The National Security Division remains committed to identifying, disrupting, and holding accountable all who seek to provide material support to and fight on behalf of designated foreign terrorist organizations.”
FBI Assistant Director-in-Charge Rodriguez stated, “The guilty pleas and sentencing of these men for providing material support to al-Shabaab demonstrates the U.S. government’s commitment and leadership in prosecuting persons whose intention is to violently assault societies different than their own. We remain steadfast in identifying and stopping such attacks. We will continue to work within the framework of the U.S. justice system to hold terrorists accountable for their malicious intentions and criminal actions. Special thanks to all our law enforcement and intelligence community partners on the JTTF, whose joint efforts keep us safe. We are also grateful for the international cooperation we received to bring these terrorism subjects to justice.”
During the time of the charged conspiracy (and thereafter), al-Shabaab successfully recruited individuals from around the world, such as the defendants, to come to Somalia and join the organization. These individuals, known within al-Shabaab as “foreign fighters,” lived, trained, and often fought alongside other native Somali fighters. The foreign fighters were especially valuable to al-Shabaab for several reasons. For example, al-Shabaab frequently made Western foreign fighters the face of its fund-raising and propaganda efforts as part of a broader strategy of emphasizing that the conflict in Somalia was part of a global jihad aimed at creating an Islamic caliphate. Indeed, one of the defendants, Yusuf, is featured in an al-Shabaab propaganda video in which he encouraged young men to travel to Somalia and join al-Shabaab and threatened a cartoonist who had depicted the prophet Mohammad. In addition, Yusuf and Ahmed fought in battles in Somalia against African Union forces. A third defendant, Madhi Hashi, is scheduled to be sentenced on January 29, 2016.
Assistant Attorney General Carlin joined U.S. Attorney Capers in thanking the federal, state, and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Shreve Ariail, Seth D. DuCharme, and Richard M. Tucker, along with Trial Attorney Annamartine Salick of the Department of Justice’s Counterterrorism Section, are in charge of the prosecution. Trial Attorney Shanna Batten of the Department of Justice’s Office of International Affairs, and Dan Stigall, Counsel to the Assistant Attorney General for the National Security Division, also provided invaluable assistance.
The Defendants:
ALI YASIN AHMED, also known as “Ismail”
Age: 31
Nationality: SwedishMOHAMED YUSUF, also known as “Abu Zaid,” “Hudeyfa” and “Mohammed Abdulkadir”
Age: 33
Nationality: SwedishTwo Individuals Charged in Manhattan Federal Court with Extortion PlotRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced that BORIS KOTLYARSKY and BORIS NAYFELD were taken into custody yesterday for seeking payment from a victim who they claimed NAYFELD had been hired to murder. KOTLYARSKY and NAYFELD were presented this afternoon in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Boris Kotlyarsky and Boris Nayfeld conspired to extort $125,000 from a victim, claiming that Nayfeld had been hired to murder the victim. Thanks to the FBI and the NYPD, the victim is unharmed and the defendants are under arrest.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “This is yet another example of the cooperation by the FBI and NYPD through the Eurasian Organized Crime Task Force. We remain committed to keeping dangerous felons off our streets so the people of our communities can live in peace.”
NYPD Commissioner William J. Bratton said: “As alleged, this thuggish story seems like a yarn made only in Hollywood. But today, in New York, these two defendants find themselves charged in brazen extortion plot.”
According to the allegations in the Complaint[1] filed today in Manhattan federal court:
BORIS KOTLYARSKY informed the Victim that a Russian businessman (the “Businessman”) had approached BORIS NAYFELD with a contract to kill the Victim in exchange for a $100,000 payment. KOTLYARKSKY offered to broker a meeting between the Victim and NAYFELD. The Victim understood KOTLYARSKY to be offering the Victim an opportunity to intercede with NAYFELD before NAYFELD killed the Victim.
KOTLYARSKY then arranged a series of meetings between the Victim and BORIS NAYFELD. During these meetings, NAYFELD told the Victim, among other things, that the Businessman had transferred $50,000 to NAYFELD as partial payment on a contract for the Victim’s murder, and that it was good that KOTLYARSKY had intervened on the Victim’s behalf. NAYFELD told the Victim to pay him $125,000. Shortly after the Victim delivered NAYFELD a first payment by check, law enforcement agents arrested NAYFELD and, shortly thereafter, KOTLYARSKY.
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Mr. Bharara praised the outstanding work of the FBI and the NYPD for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Andrew M. Thomas is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Aspiring Rappers Charged with Operating Sex-Trafficking Ring in Chicago and SuburbsRead the Press Release
CHICAGO — Two members of a Chicago-area rap group have been charged with using violence and coercion to force females to engage in prostitution, federal authorities announced today.
SAMUEL NICHOLS and CHARLES FEARS are each charged with one count of engaging in sex trafficking by force, fraud and coercion, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. The pair worked together to recruit females, including minors, to engage in the commercial sex business, the complaint states.
In order to solicit customers, Nichols and Fears posted advertisements on the website Backpage.com that featured photographs of the females wearing lingerie and posing in sexual positions, according to the complaint. Nichols and Fears provided the females with cellular telephones and instructed them to answer calls and schedule meetings with Backpage.com customers, according to the complaint. The meetings primarily occurred in motels in various suburbs, including Naperville, Downers Grove, Schaumburg, Lansing, Harvey, Alsip and Joliet, according to the complaint.
After performing sex acts for money, the females gave the proceeds to Nichols and Fears, the complaint states.
Fears, 22, of Chicago, was arrested this morning. He made an initial court appearance today and is scheduled for a detention hearing at 11:00 am on January 22, 2016 before U.S. Magistrate Judge Kim.
Nichols, 30, formerly of Chicago, was arrested in Tennessee and ordered removed in custody to Chicago.
According to the complaint, Nichols and Fears carried firearms and would often hit, slap and choke the females who worked for them, including one incident in which Nichols beat a female so badly she had to be hospitalized. The pair also supplied the females with drugs and alcohol to help them participate in committing the sex acts, the complaint states.
According to the complaint, Nichols and Fears are members of a Chicago-area rap music group called “Hit Squad.” The group, not to be confused with the 1990s East Coast-based hip hop collective of the same name, posts videos of their music on websites such as YouTube.com, the complaint states.
The charge of sex trafficking by force, fraud or coercion is punishable by a mandatory minimum of 15 years in prison and a maximum of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation and the Carol Stream Police Department, in coordination with the Cook County Human Trafficking Task Force.
The government is represented by Assistant U.S. Attorneys Sarah Streicker, Michelle Petersen and Libby Pozolo.
Complaint
Tioga County Physician and One Other Plead Guilty to Health Care Fraud ChargesRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dr. John Terry, age 65, of Wellsboro and Stephen Heffner, Jr., age 46, of Elkland, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner in Williamsport.
In January 2016, a criminal information was filed in U.S. District Court in Scranton against Terry in connection with fraudulent prescriptions he wrote for Oxycodone, a Schedule II controlled substance.
According to U.S. Attorney Peter Smith, in April 2013, Dr. Terry caused Medicare to be billed for fraudulent prescriptions intended for Heffner knowing that Heffner was not his patient and that the Oxycodone was not actually intended for Heffner but for Dr. Terry’s patient, David Hatch, age 28, of Addison, New York. Medicare paid for the prescription received by Heffner but actually delivered to Hatch.
Dr. Terry also provided prescriptions for Oxycodone and other narcotics to another patient, Thomas Ray, age 52, of Wellsboro, who Terry should have known was not seeking the drugs for legitimate medical purposes. Medicaid paid for medically unnecessary prescriptions written for Ray.
Heffner and Hatch were charged with theft from the Medicare Program arising out of the same incident in separate criminal informations. The government also filed a plea agreement with Hatch. He is scheduled to appear before Chief Judge Conner in Harrisburg to enter a plea of guilty on February 11, 2016.
All three defendants were originally charged together with Ray, in an indictment by a federal grand jury in August 2014. Ray previously pled guilty before Chief Judge Conner and is scheduled to be sentenced on January 20, 2016.
Terry and Heffner are scheduled to be sentenced on April 4, 2016 in Williamsport.
The investigation was initiated in June 2013 by the Drug Enforcement Administration (DEA) drug diversion agents and the Department of Health and Human Services Office of Inspector General. During the execution of a federal search warrant at his office on July 8, 2013, Dr. Terry voluntarily agreed to surrender his medical license and his DEA registration.
The Pennsylvania State Police assisted in the investigation. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for health care fraud under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three People Charged with Sex Trafficking of MinorRead the Press Release
TRENTON, N.J. – Two people appeared in federal court today on charges they conspired to engage in sex trafficking of a minor and engaged in sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Aaron Gray, 29, a/k/a “AR,” Aja Easley, 22, both of Camden, appear this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court. Gray, Easley and a third defendant, Kenneth Mertz, 35, of Collingswood, who remains at large, are each charged in a three-count complaint with conspiracy to engage in sex trafficking of a minor and with sex trafficking of a minor. Gray is also charged with being a felon in possession of a firearm. Gray and Easley were ordered detained without bail.
According to the documents filed in this case:
On March 2, 2015, Easley allegedly communicated with the victim, a minor, using a social media website. She told the victim she was “worried about” the victim because of a previous assault by the victim’s boyfriend. She offered the victim money, clothing and shelter and met with the victim at the Camden Transportation Center. Easley allegedly told the victim about a dating website and said the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Mertz then drove everyone to a motel in Cherry Hill.
At the motel, Gray and Easley allegedly attempted to convince the victim to engage in commercial sex acts and took suggestive photos of the victim, which were used as part of an advertisement on the website. Easley used her cellular telephone to communicate with multiple individuals who responded to the ad. Gray gave the victim instructions on what to do when the respondents arrived. The victim observed Gray in possession of a firearm and also observed a collapsible nightstick, which was later determined to belong to Mertz.
On March 3, 2015, at a motel in Mount Laurel, New Jersey, the victim engaged in sex acts with multiple individuals, who responded to the ad and paid money to the defendants. The defendants later told the victim they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the ad.
On the way to Atlantic City, the defendants allegedly agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
The count of conspiracy to engage in the sex trafficking of a minor carries a maximum penalty of life in prison. The substantive count of sex trafficking of a minor carries a statutory mandatory minimum of 10 years in prison and a statutory maximum of life in prison. The felon-in-possession count carries a maximum statutory penalty of 10 years in prison. Each count also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Michael Morell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney J. Brendan Day in Trenton.
The charges and allegations summarized above are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Methamphetamine Distributors Sentenced to Lengthy Federal Prison TermsRead the Press Release
FORT WORTH, Texas — Three methamphetamine distributors were sentenced today to lengthy federal prison sentences, announced U.S. Attorney John R. Parker of the Northern District of Texas.
U.S. District Judge John McBryde sentenced Angela Cupit, 41, to 360 months in federal prison, Shawn Travis Cathey, 44, to 360 months in federal prison, and Phillip Schenck, 41, to 480 months in federal prison. Each pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine.
Each of the six below-listed co-defendants also pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, and have sentencing dates scheduled for later this month. Each faces a statutory penalty of not less than 5 years and up to 40 years’ imprisonment in federal prison and a $5 million fine.
Eric Summers, 40, of Arlington, Texas
James Gatlin, 40, of Garland, Texas
David Godinez, 35, of Dallas, Texas
Ismael Rico, 32, of Dallas, Texas
Matthew Ryan Thompson, 44, of Mineral Wells, Texas
Celeste Monte Blair, 45, of Jacksonville, Florida
Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, and the Texas Department of Public Safety were in charge of the investigation.
Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Taney County Business Owner Pleads Guilty to Failure to Pay $490,000 in Payroll TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Taney County, Mo., business owner pleaded guilty in federal court today to failing to pay over more than $490,000 in taxes he withheld from his employees’ paychecks.
Carl Justin Gage, 41, of Ridgedale, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with the willful failure to pay over taxes.
Gage owned and operated multiple businesses in Taney County, including Eagle Construction and Excavating, LLC, Gage Excavating, LLC, Gage Family Entertainment, LLC, and Hollister Pizza Company, LLC. The total tax harm (including the employer’s matching portions) due from the four corporations is $490,227. Gage admitted he was aware of these requirements and willfully did not pay over the tax even though he withheld the taxes from the employees’ paychecks.
According to today’s plea agreement, Gage hired a bookkeeper to manage the finances of his businesses, including the payroll and preparation of payroll tax returns. The bookkeeper notified Gage of the payroll tax due and owning, but Gage willfully made the decision each quarter to not pay over the taxes withheld from his employees’ paychecks to the Internal Revenue Service.
Beginning in the fourth quarter of 2010 through the first quarter of 2012, Gage willfully failed to pay over $62,830 in taxes that had been withheld from his employees’ paychecks for Gage Family Entertainment.
Beginning in the third quarter of 2008 through the second quarter of 2010, Gage willfully failed to pay over $176,573 in taxes that had been withheld from his employees’ paychecks for Gage Excavating. On June 18, 2010, Gage began operating his excavating business under the new name, Eagle Construction and Excavating, LLC. Gage continued his scheme to willfully fail to pay over $48,821 in taxes that had been withheld from his employees’ paychecks from the third quarter of 2010 through the fourth quarter of 2011.
Beginning in the fourth quarter of 2008 through the third quarter of 2010, Gage willfully failed to pay over $25,113 in taxes that had been withheld from his employees’ paychecks for Hollister Pizza Company.
Under federal statutes, Gage is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC - Office of Inspector General and IRS-Criminal Investigation.
Spearfish Man Sentenced for Illegal Sexual ActsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Spearfish, South Dakota, man convicted of Travel with Intent to Engage in Illicit Sexual Contact was sentenced on January 11, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Richard Melanson, age 53, was sentenced to 360 months in custody, followed by a lifetime of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Melanson was indicted on April 8, 2014. He pleaded guilty on August 24, 2015.
The conviction stems from Melanson traveling to Guatemala between January 2008 and June 2010, for the purpose of engaging in illicit sexual acts with minors.
This case was investigated by the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Melanson was immediately turned over to the custody of the U.S. Marshals Service.
Sentencings for January 11 - January 13, 2016Read the Press Release
Bradley Lee McGirr, 46, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 13, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. McGirr was arrested in Gillette, Wyoming. He received 300 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Michael Crain, 29, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl o January 13, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Crain was arrested in Wheatland, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
John Thomas Kady, 34, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Kady was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Schoharie Man Admits to Defrauding FEMARead the Press Release
LBANY, NEW YORK – Scott A. Clapper, Jr., age 31, of Schoharie, pleaded guilty today to 13 felony counts of making false statements and submitting false documents in connection with government benefits he received following Hurricane Irene.
The announcement was made by United States Attorney Richard S. Hartunian and Edward Nasiatka, Special Agent in Charge of the Department of Homeland Security’s Office of Inspector General, New York Field Office.
Clapper made false statements and submitted false documents to the Federal Emergency Management Agency (FEMA) following Hurricane Irene, which struck New York in August 2011 and made uninhabitable the Schoharie County home in which Clapper was living at the time.
Clapper told FEMA that his monthly rent at his new home, in Westerlo, was $1,200, when it was really $500. In an effort to document the $1,200 monthly rent, Clapper also submitted to FEMA fake lease agreements and rent receipts containing the forged signature of his landlord. Clapper received $16,426 from FEMA as a result of these falsehoods.
Clapper faces a maximum imprisonment term of 30 years and a maximum fine of $250,000 when he is sentenced on May 9, 2016 by Senior United States District Judge Thomas J. McAvoy. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the New York Field Office of the Department of Homeland Security’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael Barnett.
Rwandan Refugee Who Became Naturalized Citizen Is Convicted for Naturalization FraudRead the Press Release
A man who immigrated to the United States from Rwanda as a refugee in 1998, who was charged with having obtained his citizenship by fraud, was convicted by a jury today after a four-day trial in federal court in Cedar Rapids, Iowa.
Ken Ngombwa, 56, from Cedar Rapids, Iowa, was convicted of one count of unlawfully procuring or attempting to procure naturalization or citizenship; one count of procuring citizenship to which he was not entitled; one count of conspiracy to unlawfully procure citizenship; and one count of making a materially false statement to agents of the Department of Homeland Security.
The evidence at trial showed Ngombwa knowingly made several material false statements to procure entry into the United States as a refugee from Rwanda in 1998. Notably, Ngombwa falsely claimed to be the brother of Faustin Twagiramungu, a former Prime Minister of Rwanda, who lives in exile in Belgium.
The case was referred to the Department of Homeland Security in 2011 by the Prosecutor General of Rwanda.
Ngombwa was ordered detained without bond following return of the verdict today. A detention hearing before Chief United States District Court Judge Linda R. Reade has been set for Wednesday, January 20, 2016, at 1:30 p.m. in federal court in Cedar Rapids.
A sentencing date will be set after a presentence report is prepared.
If convicted on all counts, Ngombwa faces a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, $400 in special assessments, and 12 years of supervised release following any imprisonment. Ngombwa also faces loss of his citizenship in the United States.
The case is being prosecuted by Assistant United States Attorneys Richard L. Murphy and Ravi Narayan, and was investigated by Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00123.
Ronnie Lee McCall Convicted of Sexual Exploitation of MinorsRead the Press Release
GREENEVILLE, Tenn. – On Jan. 14, 2016, after a trial in U.S District Court, a jury convicted Ronnie Lee McCall, 60, of Limestone and Johnson City, Tenn., of four counts related to the sexual exploitation of three minor girls. The convictions include: permitting a child in his custody and control to travel in interstate commerce to produce child pornography; production of child pornography; production of child pornography by a parent; and using a means of interstate commerce to induce a minor to engage in illegal sexual activity (child rape under Tennessee law).
Sentencing has been set for June 6, 2016, before the Honorable J. Ronnie Greer, U.S District Court Judge. McCall faces a mandatory minimum term of 30 years in prison. His wife, Connie Stout McCall, 40, who was charged with the same offenses, pleaded guilty in February 2014 to production of child pornography by a parent. Both have been in federal custody since October 2013.
Nancy Stallard Harr, Acting U.S. Attorney for the Eastern District of Tennessee, noted, "This prosecution underscores the importance of our partnership with local and state authorities, social service agencies, and others in protecting children, who are some of the most vulnerable members of our community. While we cannot reclaim the children's lost childhoods or innocence, we will hold people who sexually victimize children accountable for their conduct."
The Tennessee Department of Child Services, Child Protective Services, Washington County Sheriff's Office, Johnson City Police Department, Washington County Child Advocacy Center, Youth Villages, a bail bondsman and Federal Bureau of Investigation worked together to ensure justice for the victims of Ronnie McCall. Assistant U.S. Attorneys Helen Smith and Corey Shipley represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Rochester Woman Pleads Guilty to Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Phally Suong, 35, of Rochester, NY, pleaded guilty to mail fraud before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Suong worked as a customer service representative for Rochester Gas & Electric Company. The defendant used her position to access RG&E billing systems and alter customer information for inactive accounts awaiting refunds. Suong changed the information in the system from the actual customer’s name to the names of herself and family and friends. As a result, fraudulent refund checks were mailed to the defendant and other individuals totaling over $199,000.
Co-defendant Hoeub Chan received a number of fraudulent refund checks totaling over $72,000 and was sentenced to one year in prison.
Today’s plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for April 15, 2016 before Judge Geraci.
Rochester Man Sentenced for Acting as A “Money Mule”Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Hanks, 47, of Rochester, NY, who was convicted of mail fraud, was sentenced to 12 months in prison by U.S. District Judge David G. Larimer. The defendant was also ordered to pay restitution of $105,100.00 to the victims of the fraud scheme.Assistant U.S. Attorney John J. Field, who handled the case, stated that Hanks worked with co-defendant Ricky Miller and a Jamaican group in a fraudulent sweepstakes telemarketing scheme that targeted elderly individuals. Victims were called on the telephone and told that they had won a sweepstakes prize or lottery. Victims were then asked to pay an upfront fee in order to release the purported winnings.
Hanks and Miller agreed to act as a point of contact in the United States to receive the money from the victims and then forward it to Jamaica after taking a substantial cut. Between January 2012 and September 2013, the victims sent approximately $300,000 to Hanks and Miller.
Ricky Miller was convicted and is awaiting sentencing.
The sentencing is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski, Boston Division.
Professional Cattle Thief Sentenced to 38 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jason Amidon, 28, of Coudersport, Pennsylvania, was sentenced yesterday in United States District Court in Brattleboro, following his guilty plea to one count of Wire Fraud. The charges stemmed from his scheme to defraud two Vermont and eleven other cattle ranchers of approximately $2.1 million by offering to purchase real cattle with counterfeit checks, and by offering to sell cattle that did not in fact exist and pocketing the proceeds. U.S. District Court Judge J. Garvan Murtha sentenced Amidon to 38 months in prison, three years of post-release supervision, and $144,450 in restitution.
The case began after Amidon successfully uttered a counterfeit check for $100,000 to a Lyndonville, Vermont farmer, in exchange for the purchase of 55 Belted Galloway female cattle and their calves, a heritage pedigree breed of cattle. Instead of delivering them to their new home at a co-operative farm in Minnesota as he represented, Amidon, with help from his father, delivered the cows to auction in Greencastle, Pennsylvania, where they were to be sold for beef. The balance of the agreed-upon purchase price was never delivered to the Vermont farmer.
Subsequently, law enforcement agents uncovered a series of frauds related to cattle. From in or about the summer of 2013 to January 2015, Amidon managed to defraud a number of cattle ranchers around the country. Specifically, by use of the internet and stock photography of cattle that were not his, Amidon swindled a cattle rancher in Arkansas into paying Amidon a $55,000 down payment for cattle that did not exist, as well as a cattle rancher in New Mexico into paying a $30,026 down payment for cattle that also did not exist. Those frauds resulted in two separate misdemeanor convictions in Pennsylvania.
Also, at the time of his January 2015 arrest, Amidon faced a third set of charges in Pennsylvania after convincing an Iowa farmer to wire him $135,000 as a down payment for cattle that did not exist. Amidon falsely represented himself to be a cattle broker for an owner who was dying of cancer and who needed to sell his entire herd at a discount; these charges ultimately became part of the federal indictment against him.
Additionally, in or about December 2014, Amidon made a series of arrangements with three other Iowa cattle ranchers to purchase legitimate cattle from them with counterfeit checks, for a total of $556,100; these deals ultimately fell through. At the same time, Amidon attempted to convince ranchers from Nebraska, South Dakota, and Missouri that he desired to purchase their cattle but needed to complete the deal quickly, as Amidon falsely represented that those cattle were required to board a barge leaving for Turkey. Amidon hoped that the urgency and speed of the transaction would deflect attention from the illegitimate funds that would have garnered him $1,201,600 had he been successful in his efforts.
In fashioning its 38 month sentence, the Court stated that it took into its consideration the facts of the case as well as the defendant’s background and personal history.
This case was investigated by the Vermont State Police in cooperation with the Federal Bureau of Investigation. Pennsylvania State Police were also instrumental in the investigation and arrest in Coudersport, Pennsylvania. The United States Attorney expresses his gratitude for their cooperation and impressive investigation.
Amidon was represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Oxford Resident Indicted on Wire Fraud ChargesRead the Press Release
OXFORD, Miss. - United States Attorney Felicia C. Adams and Donald Alway, Special Agent in Charge of the Federal Bureau of Investigation announced today that Tyler L. Smith, age 46, of Oxford, MS, appeared in Court and entered a plea of not guilty to a one Count Indictment charging him with wire fraud. The Indictment alleges that Smith induced lenders to provide him with loans based on false material misrepresentations and then failed to repay the loans. If convicted, Smith faces a maximum of twenty years in prison, a $250,000 fine, three years of post-release supervision and restitution in the amount of loss.
This matter is being prosecuted by the United States Attorney’s Office for the Northern District of Mississippi and the Federal Bureau of Investigation.
A filed copy of the Indictment is attached. An Indictment is merely an allegation of wrongdoing and Smith is presumed innocent until proven guilty.
Owner of String of Marijuana ‘Dispensaries’ Convicted of Drug TraffickingRead the Press Release
A south Puget Sound area resident who tried to hide his illegal drug dealing behind what he falsely claimed was a ‘medical marijuana’ dispensary consistent with state law, was convicted today in U.S. District Court in Tacoma of two federal charges related to drug distribution, announced U.S. Attorney Annette L. Hayes. The jury deliberated 4 hours before finding LANCE EDWARD GLOOR, 37, guilty of conspiracy to distribute marijuana, and manufacturing marijuana. The jury was unable to reach a verdict on conspiracy to commit money laundering and acquitted GLOOR of possession of a firearm in furtherance of a drug trafficking crime. GLOOR faces a mandatory minimum 5 years to 40 years in prison when sentenced by U.S. District Judge Ronald B. Leighton on April 15, 2016.
According to records filed in the case and testimony at trial, GLOOR and his long-time business associate were the subjects of law enforcement investigations as early as 2010. In the fall of 2010, local law enforcement officers executed a search warrant at GLOOR’s home where they discovered more than 70 marijuana plants and a firearm. While awaiting trial on charges filed in state court, GLOOR and his associate opened four so-called marijuana ‘dispensaries:’ Tacoma Cross, Lacey Cross, Seattle Cross, and over on the Kitsap Peninsula, KPN Cross. A joint state and federal law enforcement investigation revealed that these locations claimed to be medical marijuana “non-profit dispensaries” operating under state law, when in fact they were for profit businesses generating millions of dollars in gross revenues totally inconsistent with applicable state requirements. Search warrants were served on the business in 2011, and following that GLOOR claimed he was getting out of the marijuana business. In fact, further investigation and a second round of search warrants in 2013 revealed GLOOR was still operating two of the four dispensaries, but had attempted to hide his ongoing role.
GLOOR was indicted with two co-conspirators in November 2013. His co-conspirators have entered guilty pleas and are awaiting sentencing.
The case was investigated by the Thurston Narcotic Task Force (TNT) and the Drug Enforcement Administration (DEA). The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Marci Ellsworth.
North Little Rock Man Pleads Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Christopher Nichols, 25, of North Little Rock, pled guilty to a Superseding Information charging him with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge J. Leon Holmes. Judge Holmes will sentence Nichols at a later date.
On February 4, 2015, a Federal Grand Jury indicted Nichols on charges of wire fraud as part of a scheme to fraudulently obtain USDA program funds. The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Nichols operated as a sponsor for a feeding program through an organization called "A Vision For Success." Nichols’ aunt worked for DHS and DHS records indicate that his aunt submitted and approved the application for the 2014 contract year and approved the application for the 2014 contract year. "A Vision for Success" had two approved sites. The first was Waits Auto Repair in North Little Rock which at the time, was an auto business operated by Nichols’ uncle, Anthony Waits. The second site had a non-existent address. Claims were submitted that falsely represented the average daily attendance and greatly inflated the number of meals provided because no children were ever fed.
Nichols received a total of approximately $333,136.67. Of this money received, Nichols withdrew approximately $325,735.80 in cash, with a majority of that going to Waits. Nichols’s benefit was approximately $25,000–$35,000. Waits was charged in a Second Superseding Indictment filed on November 4, 2015, with conspiracy as part of a scheme to fraudulently obtain USDA program funds along with Waits’ wife, Gladys Waits, Jacqueline Mills, Dorothy Harper, and Tonique Hatton.
Nichols is the second person to plead guilty out of the nine people previously indicted concerning USDA feeding program funds. The nine indictments detail alleged fraud involving over $9 million in USDA feeding program funds. Kattie Jordan previously pled guilty to conspiracy to commit wire fraud on August 3, 2015.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
New York Man Pleads Guilty to Rushing Airline Cockpit and Saying “Jihad”Read the Press Release
ALEXANDRIA, Va. – David Patrick Diaz, 36, of Poughkeepsie, New York, pleaded guilty today to the charge of interference with flight crew members and attendants.
At his court appearance today, Diaz admitted to shouting threatening statements as he charged the cockpit of a United Airlines flight shortly after it took off from Dulles International Airport in March 2015. After being tackled by a group of passengers, Diaz said the word, “Jihad,” and he also said that there was something in the belly of the plane. The passengers and flight attendants were able to restrain Diaz until the plane returned safely to Dulles.
Diaz was indicted by a federal grand jury on Nov. 19, 2015. Diaz faces a maximum penalty of 20 years in prison when sentenced on April 1, 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 Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Tyler McGaughey and Jonathan Fahey are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-324.
Muskogee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DONNIE EUGENE DREW, age 26, of Muskogee, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Section 922 (g)(1).
The charge arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation, Eastern District of Oklahoma Violent Crime Task Force.
The Indictment alleged that on or about January 27, 2015, within the Eastern District of Oklahoma, the defendant, DONNIE EUGENE DREW, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Hopkins & Allen Arms “Safety Police”, .32 Caliber revolver handgun, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace represented the United States.
Monongalia County man sentenced for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Larry Taylor, 71, of Osage, West Virginia, was sentenced today to 30 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Taylor sold cocaine in Monongalia County, West Virginia. He pled guilty in January 2015 to one count of “Distribution of Cocaine Hydrochloride.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Mexico Man Sentenced to 240 Months in Federal Prison on Methamphetamine ConvictionRead the Press Release
DALLAS, Texas — Alvaro Valencia-Sanchez, 29, from Apatzingan, Michoacan, Mexico, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 240 months in federal prison following his guilty plea in July 2015 to one count of possession with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Valencia-Sanchez’s co-defendant in the case, Francisco Landa-Bravo, 41, also from Apatzingan, Michoacan, Mexico, pleaded guilty in August 2015 to the same offense. He was sentenced to 121 months in federal prison.
According to documents filed in the case, on May 26, 2015, law enforcement officers conducted a controlled buy and purchased five kilograms of methamphetamine from the codefendant Francisco Landa-Bravo. The agents then searched the home belonging to Alvaro Valencia-Sanchez after it was identified as a “stash house” and found another 35 kilograms of methamphetamine, a clandestine laboratory, two firearms, and $68,441.
The Drug Enforcement Administration, Allen Police Department, Garland Police Department, and Rockwall Police Department investigated the case. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
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Meridian Man Sentenced to Prison on Drug ChargesRead the Press Release
Jackson, Miss - Arrington Lorenzo McGlothin, 46, of Meridian, was sentenced today by U.S. District Judge Daniel P. Jordan III to 280 months in federal prison followed by five years of supervised release for possession with intent to distribute more than 50 grams of Methamphetamine and possession of two bullet proof vests after having been previously convicted of a crime of violence, announced U.S. Attorney Gregory K. Davis.
McGlothin was arrested after agents received information that he was distributing narcotics in the Meridian, Lauderdale County areas. A search warrant was conducted at his residence in March, 2015. A seizure of methamphetamine, heroin, marijuana, multiple rounds of ammunition, two bullet proof vests and United States Currency resulted from the search of McGlothin’s residence.
This case is a result of a joint investigation by Homeland Security Investigations and the Mississippi Bureau of Narcotics with assistance from the Lauderdale County Sheriff’s Department. Assistant U.S. Attorney Erin Chalk prosecuted the case.
Marion Inmate Pleads Guilty to EscapeRead the Press Release
Jeffery Eugene Roetzel, 30, an inmate at the Federal Prison Camp at Marion, Illinois, pled guilty on Thursday, January 14, 2016, in United States District Court in Benton to an indictment charging him with escaping from that facility, announced James L. Porter, Acting United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on December 8, 2015, alleged that the escape occurred on November 8th. Roetzel was taken into custody in Poplar Bluff, Missouri, on November 11th. At the time of the escape, Roetzel was serving a 70 month sentence imposed in 2012 in the Western District of Michigan for numerous federal firearms offenses.
Sentencing was set for April 20, 2016, at 10:00 a.m. at the United States Courthouse in Benton. At that time, Roetzel faces up to an additional 5 years in federal prison, a $250,000 fine, and 3 years of supervised release following his incarceration.
Roetzel was returned to the custody of the Federal Bureau of Prisons to await sentencing on the escape charge.
The case was investigated by the United States Marshals Service and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Manchester Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE - Warren Robinson, 57, of Manchester, New Hampshire, pled guilty in the United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
In February 2014, the New Hampshire Crimes Against Children Task Force and the Concord Police Department developed information that images of child pornography were being shared from Robinson’s residence in Manchester, New Hampshire. A search warrant was obtained and executed at that residence in June 2014, resulting in the seizure of a computer belonging to Robinson which contained dozens of videos depicting young children engaged in sexually explicit conduct.
Robinson is scheduled for sentencing in May 2016, and faces a maximum prison term of 10 years, to be followed by a term of at least 5 years of supervised release and a fine of up to $250,000.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Concord, Manchester, Raymond, and Bedford, New Hampshire. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man Accused in Drive-By Shooting of Toddler Sentenced to Federal Prison for Illegal Gun PossessionRead the Press Release
A Seattle man who has been charged in connection with the drive-by shooting death of a Kent, Washington toddler was sentenced today in U.S. District Court in Seattle for a separate crime involving the illegal possession of a firearm, announced U.S. Attorney Annette L. Hayes. DEMARTRAE LESHAWN KIME, 24, was sentenced to 46 months in prison and three years of supervised release for being a convicted felon in possession of a firearm in Seattle on October 25, 2014. At sentencing U.S. District Judge Robert S. Lasnik told the defendant, “I take this case very seriously because you armed yourself and had drugs in the car.”
“This case exemplifies the need to keep firearms out of the hands of convicted felons,” said U.S. Attorney Annette L. Hayes. “This defendant used a gun to threaten people who simply walked past his car at a gas station. I commend the witness who not only alerted police, but helped identify this defendant so he could be held accountable.”
According to records filed in the case, KIME was pulling his car into a gas station at 700 12th Avenue in Seattle as three people were leaving the parking lot to get into a ride share vehicle. KIME rolled down his window, pointed a black handgun at the three and told them “Don’t come up on my car like that homey.” After getting into the ride share car, one of the victims called 9-1-1, and described KIME and his car. Seattle police responded and took KIME into custody while he was pumping gas into his car. One of the victims left the concert he was attending in downtown Seattle to return to the scene and identify KIME as the person who pointed the gun at him. At the time of his arrest KIME had a dozen small packages of cocaine in his pocket. After getting a search warrant, police located a Taurus .45 caliber pistol in the glove compartment of the car that matched the description provided by the victims.
KIME is prohibited from possessing firearms because of his convictions for Theft (2013), Assault (2012) and robbery (2010).
After his October 2014 arrest, KIME was released pending state charges. He failed to appear and was later charged with armed robbery in Oregon. KIME was charged in federal court on June 8, 2015 and was taken in to federal custody in the Western District of Washington on June 12, 2015.
Last month, the King County Prosecutor’s Office filed a second degree murder charge, two counts of assault and one count of unlawful possession of a firearm against KIME in connection with the April 16, 2015 drive by shooting death of one-year-old Malijha Grant. The child was in the back seat of her mother’s car when a gunman in a dark colored sedan opened fire on Lake Fenwick road in Kent.
Following today’s sentencing, KIME will be transferred to state custody on the King County charges. KIME also faces an armed robbery charge in the District of Oregon.
The case was investigated by the Seattle Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute gun crimes in federal court.
Lorain man sentenced to eight years in prison for child pornographyRead the Press Release
James J. Paterson, 49, of Lorain, was sentenced to more than eight years in prison for receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Paterson knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. This took place between September 10, 2010, through on or about November 17, 2014. Paterson possessed two computers that contained child pornography on March 30, 2014, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
Leader of D.C. Metro Area Cocaine Conspiracy SentencedRead the Press Release
ALEXANDRIA, Va. – Jorge Enrique Mendez-Limon, 34, of Berwyn Heights, Maryland, was sentenced today to 180 months in prison for leading a multi-state cocaine distribution conspiracy. Mendez-Limon was also ordered to forfeit $540,000.
According to court documents, Mendez-Limon ran an organization that imported multiple kilograms of cocaine from Mexico for distribution to customers primarily located in Maryland and Virginia. Mendez-Limon utilized a stash house in Maryland to store and prepare cocaine, and to store drug proceeds. A handgun with an obliterated serial number was seized from the stash house in June 2015.
Name
Age
Hometown
Sentencing Details
Jorge Enrique Mendez-Limon
34
Berwyn Heights, Maryland
Sentenced to 180 months today.
Roberto Carlos Esparza-Suarez
26
Dale City
Sentenced to 120 months on Dec. 18, 2015.
Marco Valdez-Hernandez
35
Denver, Colorado
Sentenced to 120 months on Dec. 18, 2015.
Lisette Natalie Cordova
24
Dale City
Sentenced to 24 months today.
Jose Komairo Hernandez-Lopez
34
Woodbridge
Sentenced to 14 months on Dec. 11, 2015.
Joaquin Santana Rivera Mejia
37
Unknown
Sentencing scheduled for Feb. 19, 2016.
Laura Shepherd
38
Berwyn Heights, Maryland
Sentenced to 30 months on Jan. 8, 2016.
Alexander Lorenzo
33
Hyattsville, Maryland
Sentencing scheduled for Jan. 22, 2016.
Christopher Flores
36
Gaithersburg, Maryland
Sentencing scheduled for March 4, 2016.
Josue Emmanuel Rivera-Lemus
32
Riverdale, Maryland
Sentencing scheduled for Jan. 22, 2016.
Fredy Armando Pereira
36
Adelphi, Maryland
Sentenced to 48 months on Dec. 4, 2015.
Jeovany Francisco Andrade
29
Rockville, Maryland
Sentenced to 40 months on Dec. 17, 2015.
Luis Manuel Villa Castelan
34
Bronx, New York
Sentenced to 84 months on Dec. 17, 2015.
Juan Delao
41
Triangle
Sentencing scheduled for Feb. 19, 2016.
This case arose out of a year-long investigation led by a task force of federal and local law enforcement officers into connected cocaine distribution networks in Virginia and Maryland. The defendants represent various components in a criminal enterprise responsible for obtaining and distributing cocaine throughout the Washington, D.C. metropolitan area. The defendants include alleged street level dealers with ties to the transnational 18th Street gang. During the course of arrests in June 2015, agents recovered multiple firearms, distribution quantities of cocaine, and over $45,000 in U.S. currency.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office; and Stephan M. Hudson, Chief of Prince William County Police, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Special Assistant U.S. Attorneys Jennifer Clarke and Andrea Duvall 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-183.
Kentwood Resident and Tax Return Preparer, Gregory Claxton, Pleads Guilty to Evading Payment of Income TaxesRead the Press Release
GRAND RAPIDS, MICHIGAN — Kentwood resident Gregory Claxton, pled guilty in the courtroom of U.S. Magistrate Judge Ray Kent to willfully evading the payment of $148,779 in federal income taxes for the calendar years 2006 through 2012. The indictment alleged he hid his assets from the IRS by placing money and property in the names of others. Claxton faces up to five years in prison, up to $250,000 in fines and must pay over $200,000 in restitution, counting interest.
According to court records, Claxton was a certified public accountant until approximately 2000 and still operates a business in which he prepares tax returns for his clients. Claxton admitted he intentionally deposited the proceeds of his tax preparation business into bank accounts in the name of his wife to avoid the appearance of having the ability to pay his income taxes. Claxton also admitted that, just two days prior to meeting with the IRS to discuss his ability to pay his outstanding tax bill, he transferred the deed of his house to a trust in his wife’s name in an effort to thwart IRS collection efforts.
"With the tax filing season quickly approaching, it is important for people to have confidence that when they pay their taxes, they know their neighbors, co-workers and tax return preparers are doing the same," said Jarod J. Koopman, Special Agent in Charge, IRS – Criminal Investigation.
This case was investigated by Special Agents of Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Sally J. Berens.
END
Justice Department Files Proposed Settlement of Fair Housing Act Lawsuit Against Landlord for Housing Discrimination Based on DisabilityRead the Press Release
The Justice Department filed a proposed settlement of a lawsuit alleging that a Waunakee, Wisconsin, landlord and apartment complex owner violated the Fair Housing Act by discriminating against two residents of Applewood Apartments based on disability.
“Persons with disabilities, like all Americans, have the right to live in housing free of discrimination and harassment from both landlords and tenants,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Civil Rights Division remains committed to enforcing the Fair Housing Act and ensuring that all individuals are able to enjoy the rights it guarantees.”
“The Fair Housing Act prohibits discrimination on many bases, including disability,” said U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin. “Persons living with disabilities have an equal right to protection under the Act and we will enforce the Act when such offensive conduct interferes with their rights to use and enjoyment of their home.”
“No family should have to endure degrading insults and comments in the place they call home,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reflects HUD and the Justice Department’s ongoing commitment to taking appropriate action against individuals who violate the housing rights of persons with disabilities.”
The lawsuit, filed today along with a proposed settlement in the U.S. District Court of the Western District of Wisconsin, alleges that defendants Applewood of Cross Plains LLC (ACP) and William Ranguette discriminated against two residents of Applewood Apartments, a mother and daughter living together, and denied them rights by refusing to renew the residents’ lease because of their disabilities; demanding that they develop a “plan” to deal with the daughter’s purported disability-related behavior (she is a person with Down Syndrome); and pressuring them to move.
Furthermore, the United States alleges that all defendants, which include the residential apartment manager of the building, discriminated against the two residents by failing to take prompt action to correct and end disability-related harassment by other tenants. From the moment the residents moved into the building, other tenants made such statements as calling the daughter “mentally retarded,” and stating “You don’t belong here. . . you belong in an institution.” Complaints to the landlord and building manager, including that other tenants continued with offensive comments, followed them around the building, and interfered with their use of the premises, went unaddressed.
Under the terms of the settlement, which is subject to approval by the U.S. District Court, defendants will pay the complainants $40,000 in damages. Although denying the allegations, defendants ACP and Ranguette have also agreed to maintain non-discrimination housing policies, advertise that they are equal opportunity housing providers and attend fair housing training.
Fighting housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
This case was handled by the Civil Rights Division’s Housing and Civil Enforcement Section and Assistant U.S. Attorney Leslie Herje of the Western District of Wisconsin.
Applewood Complaint
Applewood Consent Decree
Applewood Joint Motion to Enter Consent Decree
Jackson Man Sentenced to Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. - Maurice King, 29, of Jackson, was sentenced on January 14, 2016, by Senior U.S. District Judge David C. Bramlette III, to 51 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, U.S. Attorney Gregory K. Davis announced today.
King was indicted as a result of the Jackson Violent Crime Initiative - a joint initiative between federal, state and local law enforcement agencies who are working together to reduce violent crime in the city of Jackson and to remove violent offenders from the streets of this community. The Initiative is an ongoing operation aimed at making the streets of Jackson and the surrounding communities safe for all citizens. Jackson Violent Crime Initiative partners include the Jackson Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigations (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Secret Service.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Jackson Police Department and the Ridgeland Police Department. Assistant U.S. Attorney Erin Chalk prosecuted the case.
Irondequoit Man Indicted, Charged with Sexually Exploiting 15 Year OldRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a three count indictment charging Jose Alvarado, 27, of Irondequoit, NY, with coercing a minor to engage in unlawful sexual activity, receipt of child pornography and possession of child pornography. The charges carry a minimum penalty of 10 years in prison, a maximum of life, and a$250,000 fine.Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the indictment, Alvarado, then 26 years old, used his iPhone and other digital devices to coerce and entice a 15 year old female that he knew into having sex with him on multiple occasions. The defendant convinced his victim to take graphic photos of herself and send them to him using a texting application. Alvarado then sought to the control the girl through “sextortion” – that is, by threatening to expose the sexually-explicit pictures of her – and other means.
The defendant was arraigned today before U.S. Magistrate Judge Jonathan W. Feldman and is being held pending a bail hearing on January 21, 2016, at 9:30 a.m..
The indictment is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Adam S. Cohen, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, and the New York State Police, Troop E, under the direction of Major Craig Hanesworth. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Inmate Sentenced to Serve an Additional 77 Months in Federal Prison for Mailing Threat Letter to Federal JudgeRead the Press Release
LUBBOCK, Texas — An inmate in state custody on unrelated offenses, Dillon Alex Steele, was sentenced today by Senior U.S. District Judge Sam R. Cummings to serve an additional 77- month sentence in federal prison for mailing a threatening letter to a federal judge last year, announced U.S. Attorney John Parker of the Northern District of Texas.
Steele, 31, pleaded guilty in September 2015 to one count of mailing threatening communications.
According to the factual resume filed in the case, on April 11, 2014, an employee in the Amarillo, Texas, office of U.S. District Judge Mary Lou Robinson received a letter from Steele that was addressed to Judge Robinson and postmarked the previous day. In the letter, the writer stated, in part, “…I’m gonna kill everyone at the courthouse, and the federal building, I’m gonna blow everything up sky high, may-be after nothing but death and destruction someone will listen then!”
Steele admitted he wrote the letter but that he did not intend to carry out his threats, but just call Judge Robinson’s attention to perceived civil rights violations at the Potter County Jail. Steele’s DNA and fingerprints were on the letter and envelope.
The FBI investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
# # #
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula, on January 15, 2016 and entering pleas of Not Guilty were:
- JAMES ANTHONY LOVENGUTH, a 38-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, illegal receipt of a firearm by a person under Information, and possession of a firearm by a prohibited person. If convicted of the most serious charges contained in the indictment, LOVENGUTH faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-01
- TANDA AURORA TROUT, a 36-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, LOVENGUTH faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-01
Appearing before U.S. Magistrate Johnston in Great Falls, on January 13, 2016 and entering pleas of Not Guilty were:
- HARLAN JEROME DEAN MAD PLUME, a 19-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury. If convicted of the charge contained in the indictment, MAD PLUME faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-03
Appearing before U.S. Magistrate Lynch in Missoula, on January 13, 2016 and entering pleas of Not Guilty were:
- OCTAVIO GUADALOPE GARCIA-MORALES, a 29-year-old resident of Mexico, appeared on charges of conspiracy to distribute controlled substances, possession with intent to distribute methamphetamine, and distribution of heroin. If convicted of the most serious charges contained in the indictment, GARCIA-MORALES faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Montana Drug Task Force. PACER Case Reference. 16-05
Appearing before U.S. Magistrate Lynch in Missoula on January 12, 2016 and entering pleas of Not Guilty were:
- GEORGE LESLIE MANLOVE, a 58-year-old resident of Eagle, Idaho, appeared on charges of conspiracy, wire fraud, bank fraud, false statement to federal insured bank, bankruptcy fraud, and money laundering. If convicted of the most serious charges contained in the indictment, MANLOVE faces 30 years in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Labor and the Internal Revenue Service. PACER Case Reference. 16-40
- PAUL LYN NISBET, a 46-year-old resident of Missoula, appeared on charges of conspiracy to commit wire fraud. If convicted of the most serious charge contained in the indictment, NISBET faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Department of Labor and the Internal Revenue Service. PACER Case Reference. 15-43
Appearing before U.S. Magistrate Ostby in Billings, on January 12, 2016 and entering pleas of Not Guilty were:
- CHARITY LEIGH MENDONSA, a 39-year-old resident of Cathedral City, California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, MENDONSA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Montana Division of Criminal Investigation and the Drug Enforcement Administration. PACER Case Reference. 15-147
- JOSEPH EMMANUEL SOBECK, a 43-year-old resident of Ashland, appeared on charges of possession of a firearm not registered in National Firearms Registration and Transfer Record, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, SOBECK faces 10 years in prison, $10,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-153
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Unsealed in Cocaine Trafficking ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced today’s unsealing of a two-count Indictment charging CRAIG JAMES, age 37, of Houston, LAZANDY DANIELS, age 39, and LEON JACKSON, JR., age 41, both of New Orleans, with conspiracy to distribute 5 kilograms or more of a mixture or substance containing cocaine hydrochloride (“powder cocaine”) and 28 grams or more of a mixture or substance containing cocaine base (“crack cocaine”). JAMES and DANIELS are also charged with possessing with intent to distribute 28 grams or more of a mixture or substance containing cocaine base.
If found guilty of the lead conspiracy charge, each defendant faces a mandatory minimum of ten years of imprisonment, a maximum life sentence, a $10,000,000 fine, and at least five years of supervised release.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (DEA) and the New Orleans Police Department (NOPD) in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Hartford Man Sentenced to 5 Years Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KYRIN-ROBERT JACKSON, also known as “Ky,” 25, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for gang-related narcotics trafficking.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with JACKSON and other associates, distributed crack cocaine in the Westland Street area of Hartford.
JACKSON has been detained since his arrest on April 15, 2014. On April 15, 2015, he pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”).
Twenty-five individuals were charged as a result of the investigation. One defendant was convicted after trial and 23 defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending. Scott pleaded guilty and awaits sentencing.
JACKSON previously served approximately 71 months in state prison for assaulting police officers and larceny. On June 5, 2008, Hartford Police detectives received a report of a car that was involved in a robbery in Bloomfield. After spotting the car at a location on Bellevue Street, JACKSON, who attempted to flee, repeatedly drove the vehicle at officers at a high rate of speed and smashed two police vehicles. Three detectives were taken to the hospital as a result of the incident.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Harrisburg Businessman Pleads Guilty to Federal Tax FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Paul Biko, age 65, pleaded guilty yesterday to federal tax fraud before Chief United States District Court Judge Christopher C. Conner in Harrisburg.
According to United States Attorney Peter Smith, in 2008, Biko was the owner of three Harrisburg businesses: Clearview of Harrisburg, Clearview Landscaping and Clearview Builders. As owner, Biko controlled the financial affairs of the three companies including all business bank accounts. For the fourth quarter of 2008, Biko’s companies withheld employment taxes from employees but failed to pay to the IRS the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due to the United States. The government’s estimate of the loss is approximately $674,969.
Biko is scheduled to be sentenced in April 2016.
Biko was charged in an indictment in April 2014. Charges are still pending against Maura Mia Whetsel, age 31, of Harrisburg, the firms’ former Director of Finance and bookkeeper.
The investigation was conducted by the Internal Revenue Service Criminal Investigations. Prosecution was handled by Assistant United States Attorney Joseph J. Terz.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a $10,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.]
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Hagerstown Woman Pleads Guilty to Heroin DistributionRead the Press Release
Baltimore, Maryland – Erica Buffolino, age 25, of Hagerstown, Maryland pleaded guilty today to conspiracy to distribute heroin and 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, Baltimore District Office; Washington County Sheriff Douglas Mullendore; and Acting Hagerstown Police Chief Paul Kifer.
According to Buffolino’s plea agreement, early on April 13, 2015 Buffolino met a 19-year old Clear Spring, Maryland, woman (the victim) at Buffolino’s mother’s residence in Hagerstown. Buffolino was a long-time heroin addict and the victim was a recovering heroin addict who had recently been released from jail. While at the residence, the victim asked Buffolino to give her heroin. Buffolino initially refused, but sometime after 1:30 a.m., she agreed to share her “morning stash” of heroin with the victim, who injected the heroin and became high.
Buffolino later called co-defendant Cory Kline to obtain more heroin. Cory Kline and another co-defendant arrived at the residence sometime after 3:00 a.m. and the victim purchased half a gram of heroin to repay Buffolino for the “morning stash” of heroin that she had shared earlier. According to Buffolino, the victim again asked for some of the heroin and Buffolino initially resisted. Eventually, Buffolino relented and provided some heroin to the victim. After injecting the heroin, the victim became very high and reported feeling ill and wanting to lie down. The victim fell asleep in Buffolino’s bed, but Buffolino woke her up when she noticed the victim was having difficulty breathing. Kline left the residence sometime before 6:00 a.m. Buffolino and the victim got into an argument and the victim left the residence in her car at about 6:15 a.m. The victim spoke to another individual on her cell phone from that time until approximately 7:06 a.m. on April 13. According to this individual, the victim stated she was very high and did not feel right, and the individual could hear the victim throwing up. The victim reported driving to a convenience store parking lot, and then to a nearby church. Toward the end of the call, the victim began nodding off and then stopped speaking. The victim’s body was discovered the following day in her car in a church parking lot in Hagerstown. The medical examiner reported that the cause of death was heroin intoxication. There were no drugs or drug paraphernalia found inside the vehicle, nor does the victim’s cell phone reflect any completed calls or outgoing messages after 7:06 a.m. on April 13.
Buffolino faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for March 22, 2016 at 3:00 p.m.
Cory Allen Kline, age 32, of Hagerstown, Maryland, previously pleaded guilty to conspiracy to distribute heroin and is scheduled to be sentenced on April 11, 2016, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the DEA and Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christina Hoffman and Robert R. Harding, who are prosecuting the case.
Former Memphis Pastor Sentenced to 85 Months for Receiving Child PornographyRead the Press Release
Memphis, TN – A former Memphis pastor has been sentenced to 85 months for knowingly receiving sexual images of a minor. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to information presented in court, between March and April 2015, Demarcus Smith, 32, asked a teenage boy to send him sexually explicit images of himself via the Facebook Messenger app. Smith, a former pastor and minister, also had sexually explicit conversations with the victim through Facebook Messenger.
In August 2015, Smith was indicted on charges in relation to child pornography. He pled guilty to one count of receipt of child pornography in October 2015.
On Friday, January 15, 2016, Smith was sentenced by U.S. District Judge Sheryl H. Lipman to 85 months imprisonment.
The case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the United States Secret Service.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Anyone who has information on the exploitation of minors is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
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 the United States Attorneys' Offices and the
Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former El Dorado Hills Man Pleads Guilty in Scheme That Misappropriated Millions of DollarsRead the Press Release
SACRAMENTO, Calif. — Gregory J. Chmielewski, 46, of West Bend, Wisconsin, pleaded guilty today to two counts of mail fraud for a scheme where he transferred business funds to his own personal use, United States Attorney Benjamin B. Wagner announced.
According to his plea agreement, Chmielewski set up a professional employer organization called Independent Management Resources (IMR). He solicited an Indian tribe to partner with him and provide employee insurance coverage and other employee services at a reduced cost. Chmielewski marketed the insurance coverage to California employers as a low-cost alternative workers’ compensation coverage. Because of the low rates, Chmielewski was successful in obtaining employer clients. Chmielewski then began diverting and misappropriating millions of dollars from IMR accounts for his personal use. Eventually, the company experienced serious cash flow problems and was forced to cease operations, leaving approximately 117 injured workers with approximately $1.8 million in unpaid claims.
This case is the product of an investigation by the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the California Department of Insurance. Assistant U.S. Attorneys Heiko P. Coppola and Andre’ Espinosa are prosecuting the case.
Chmielewski is scheduled to be sentenced on April 1, 2016, by U.S. District Judge Garland E. Burrell Jr. Chmielewski faces a maximum statutory penalty of 20 years in prison and a $250,000 fine or up to twice the gain or loss from the offense. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Denver Massage Parlor Owner Pleads GuiltyRead the Press Release
DENVER – Jung Yoon Choi, age 55, formerly of Aurora, Colorado, pled guilty yesterday before U.S. District Court Judge Robert E. Blackburn to obstructing and impairing the laws of Internal Revenue Service, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Judge Blackburn is scheduled to sentence Choi on April 21, 2016. Choi agreed to be charged by an Information, waiving her Constitutional right to be indicted by a federal grand jury.
According to the information and plea agreement, from January 1, 2009, through December 31, 2010, Choi owned and operated three massage parlors in the Denver Metropolitan area, specifically; Ivy Spa located at 2260 S. Quebec Way, Denver, CO (during 2009); New Image Spa located at 17783 Cottonwood Drive, Parker, CO (during 2010); and Blue Pine Spa located at 6212 East Pine Lane, Douglas County, CO (during 2010).
Choi typically staffed each of her spas with an on-site manager and a number of workers who provided services to customers. The primary service provided by her workers was giving massages. Each of the spas typically had a fee schedule according to which customers paid a door fee ordinarily ranging from $40 to $50, depending on the amount of time requested (30 to 60 minutes were the norm). In addition, customers at the various spas often paid an additional fee which was characterized as a “tip” in many instances for “extra services” provided by Choi’s workers. At times, the “extra services” consisted of prostitution services in violation of Colorado Revised Statute, 18-7-201. Specifically, the workers would engage in sexual acts with customers in exchange for money. Choi was aware that such illicit activity was occurring at times in each of her spas and that business income was being generated from such activity. Choi regularly advertised for her spas using Westword newspaper and Sowet.com. Choi paid the owner of Sowet.com a monthly fee to post favorable reviews on his website touting her various businesses and the women who worked there.
Choi generated substantial income from each of her spas for tax years 2009 to 2010. However, she failed to file personal income tax returns for 2009 and 2010, and thus she did not report her business income for either year and she did not pay any taxes to the IRS. In addition to not filing tax returns and not paying taxes, Choi further impeded the IRS’s collection of taxes by several means, including: using nominees on bank accounts so as to conceal her business income; conducting cash and business transactions using nominees; conducting financial transactions in amounts that were less than $10,000 so as not to trigger the filing of currency transaction reports; and hiding and storing income in the form of cash hoards at various locations.
IRS Special Agents conducted a financial analysis of the Ivy Spa bank account for 2009 and the account showed deposits totaling $118,418. The vast majority of such deposits, $106,322, came from credit card payments from customers at Ivy Spa. The $118,418 in funds deposited into this account represented gross income generated by Choi for tax year 2009.
Choi also utilized nominees to conduct financial transactions in bank accounts for New Image Spa and Blue Pine Spa in 2010. Choi received substantial business income from New Image and Blue Pine Spa throughout 2010 in the form of cash and credit card deposits which she concealed. She regularly took a portion of her cash earnings and secreted the funds in cash hoards at various locations. Particularly, on December 17, 2010, pursuant to a federal search warrant, IRS Special Agents seized approximately $118,575, in cash from a locker at the U-Store-It. In total, Special Agents seized $219,388 in cash from Choi or her associates in late 2010. Such funds represented gross, business income which Choi generated during 2010.
Choi agrees to the forfeiture of $118,575.00 seized on December 17, 2010. The forfeiture of Choi’s assets, including the $118,575.00 identified above, shall not be treated as satisfaction of any fine, restitution, cost of imprisonment, or any other penalty the court may impose.
Choi pled to one count of obstructing and impairing IRS laws which carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Tim R. Neff.