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3 March 2016
Monroe men sentenced to more than 12 years each in prison for roles in methamphetamine conspiracyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that two men from Monroe were each sentenced Tuesday to 151 months in prison for their roles in a methamphetamine conspiracy.
Vacarra Rogers, 35, and Kevin Honeycutt, 36, both of Monroe, were sentenced by U.S. District Judge Robert G. James on one count of conspiracy to possess with intent to distribute methamphetamine. Honeycutt was also sentenced for one count of possession with intent to distribute methamphetamine and one count of possession of a firearm by a convicted felon. They were also sentenced to five years of supervised release.
Evidence admitted at a two-day trial ending on December 3, 2015, showed that Rogers was arrested on August 2, 2014, on Louisiana state charges related to illegal possession and distribution of methamphetamine. Co-defendant Kendra Turner, 25, of Monroe, was driving the car at the time of the arrest. During an October 8, 2014 visit to the jail, Turner was heard on recorded jailhouse calls talking to Rogers about her driving to Texas to obtain methamphetamine. Later that day, Turner, Rogers and Honeycutt further discussed the trip. Turner was arrested on October 10, 2014, on her way back from Texas. Honeycutt was then arrested and admitted to waiting for a delivery of methamphetamine from Turner. Honeycutt stated that he had obtained $5,000 from Ruby Jane McMillan, 29, of Farmerville, La., to purchase methamphetamine for her. Honeycutt set up a delivery of methamphetamine for McMillan, and she was later arrested.
“This sentence should send a message that trafficking drugs has serious consequences,” Finley stated. “We will continue to prosecute those who bring these dangerous drugs into our communities.”
Turner pleaded guilty on July 10, 2015, and McMillan pleaded guilty September 12, 2015, to one count each of conspiracy. Turner was sentenced to five years of supervised probation on January 4, 2016, and McMillan was sentenced on the same day to 38 months in prison and three years of supervised release.
Assistant U.S. Attorney Earl M. Campbell is prosecuting the case. The DEA and the Monroe Metro Narcotics Task Force investigated the case.
Manhattan U.S. Attorney Announces Bribery Charges Against Chairman of New Jersey-Based Federal Credit UnionRead 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 Field Office of the Federal Bureau of Investigation (“FBI”), and David E. Beach, Special Agent-in-Charge of the New York Field Office of the United States Secret Service, announced today the unsealing of a superseding indictment charging TREVON GROSS with accepting over $150,000 in bribes as the Chairman of the Board of a federal credit union that served primarily low-income local residents in New Jersey.GROSS was bribed by the operators of Coin.mx, an unlawful Bitcoin exchange operated by co-defendant Anthony Murgio.GROSS surrendered to the FBI earlier today and is expected to be presented this afternoon in Manhattan federal court.
According to the allegations contained in the superseding indictment unsealed today and the criminal complaints previously filed in this case[1]:
The Unlawful Bitcoin Exchange
Anthony Murgio, GROSS’s co-defendant, knowingly operated Coin.mx, an unlawful internet-based Bitcoin exchange, in violation of federal anti-money laundering laws and regulations, including those requiring money services businesses like Coin.mx to meet registration and reporting requirements set forth by the United States Treasury Department. Murgio and his co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoin exchange scheme by operating through a phony front company called “Collectables Club,” and by maintaining a corresponding phony “Collectables Club” website. In doing so, they sought to deceive the major financial institutions through which they operated into believing their unlawful Bitcoin exchange business was simply a members-only association of individuals who discussed, bought, and sold collectable items, such as stamps and sports memorabilia.
In addition to lying to financial institutions, Murgio and his co-conspirators deceived U.S. banks and credit card issuers into authorizing credit and debit card payment and ACH (Automated Clearing House) transactions to purchase Bitcoins through Coin.mx. In particular, Murgio and his co-conspirators deliberately misidentified and miscoded customers’ credit and debit card transactions, in violation of bank and credit card company rules and regulations, and limited the dollar amount of individual transactions engaged in by their customers, in order to deceive banks into allowing the transactions to be completed, and avoid arousing suspicion from the banks. Murgio and his co-conspirators also knowingly instructed their Coin.mx customers to lie to banks about the Bitcoin exchange transactions the customers were executing through Coin.mx, and to state falsely that they were for the exchange of collectables items, and not for Bitcoins.
GROSS Secretly Sells Control of the Federal Credit Union to Murgio
In approximately 2014, in an effort to evade potential scrutiny from financial institutions and others about the nature of Coin.mx, Murgio, Yuri Lebedev, and their co-conspirators acquired control of HOPE FCU, a federal credit union in New Jersey with primarily low-income members. GROSS, who was the Chairman of the Board of HOPE FCU, allowed Murgio, Lebedev, and their co-conspirators to take control of HOPE FCU and assisted their efforts in exchange for bribes, which GROSS directed Murgio to pay to bank accounts under GROSS’s control. In total, at GROSS’s direction, Murgio and his co-conspirators paid over $150,000 to accounts under GROSS’s control. GROSS, in turn, spent proceeds from the bribes on personal expenses, including payments on his personal credit cards. With GROSS’s assistance, Murgio installed his co-conspirators, including Lebedev, on HOPE FCU’s Board of Directors and transferred Coin.mx’s banking operations to HOPE FCU.
Murgio, Lebedev, and their co-conspirators operated HOPE FCU as a captive bank for their unlawful Bitcoin exchange until at least early 2015.At that time, after discovering that substantial payment processing activity was being conducted through HOPE FCU, the National Credit Union Administration (“NCUA”) forced HOPE FCU to cease engaging in such activity, and Murgio thereafter found new, overseas payment processing channels for his unlawful business. In October 2015, in connection with the charged conduct, the NCUA placed HOPE FCU into conservatorship, and thereafter liquidated it.
* * *
GROSS, 46, of Jackson, New Jersey, is charged with one count of corruptly accepting payments as an officer of a financial institution, which carries a maximum sentence of 30 years in prison.
Murgio and Lebedev were arrested on July 21, 2015, and are each charged with one count of conspiracy to corruptly make payments to an officer of a financial institution, which carries a maximum sentence of five years in prison. Murgio is also charged with corruptly making payments to an officer of a financial institution, which carries a maximum sentence of 30 years in prison. In addition, Murgio is charged with one count of conspiracy to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business, each of which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Trial is presently scheduled in this case for October 31, 2016, before the Honorable Alison J. Nathan.
Mr. Bharara praised the investigative work of the FBI and the Secret Service.He also thanked the National Credit Union Administration for their assistance with the investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Eun Young Choi and Daniel S. Noble are in charge of the prosecution.
The charges contained in the indictment 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 superseding indictment and the complaints, and the description of the indictment and complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mandeville Man Indicted for Theft of Veteran’s Benefits and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RICKY P. TEMPLET, age 53, of Mandeville, was indicted today for Theft of Government Funds and Aggravated Identity Theft.
According to court records, this investigation was initiated by the United States Department of Veterans Affairs (“VA”), Office of Inspector General (“VA-OIG”) after the VA determined TEMPLET was fraudulently obtaining VA benefits. The VA-OIG determined that TEMPLET had become his mother’s VA Fiduciary the day before his mother passed away in 2013. As a VA Fiduciary, TEMPLET was obligated to notify the VA when his mother passed away. After his mother’s death, TEMPLET received and deposited sixteen U.S. Treasury checks totaling approximately $26,441. TEMPLET was arrested by Special Agents with the VA-OIG at the St. Tammany Parish Jail. He will appear before a U.S. Magistrate Judge on Friday morning.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, TEMPLET faces a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, and a $250,000 fine as to Counts 1-16 and he faces a mandatory consecutive sentence of two years as to the Aggravated Identity Theft charge (Count 17).
U.S. Attorney Polite praised the work of the United States Department of Veterans Affairs, Office of Inspector General. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
Local Postal Service Employee Pleads Guilty to Stealing from MailsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sheila Fullmer, 60, of Caledonia, NY, who was convicted of engaging in theft during the course of performing her official government duties, was sentenced to 18 months probation by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Fullmer was employed as a mail clerk at the Rochester Processing and Distribution Center, assigned to manual mail sorting area. On October 20 and 21, 2015, law enforcement agents observed the defendant rifling through mail and stealing gift cards and other items from the mail. Fullmer was also seen using a gift card that had been reported missing by its sender. The defendant was found to be in possession of approximately $600 of other stolen gift cards and cash.
The sentencing is the result of an investigation by the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Leesville man pleads guilty to burglary on the Fort Polk military postRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a Leesville resident pleaded guilty to burglarizing homes and a truck on the Fort Polk military installation.
Dakota Cole Yarbrough, 22, of Leesville, La., pleaded guilty before U.S. District Judge Patricia Minaldi to one count of simple burglary of an inhabited dwelling. According to the guilty plea, Yarbrough was driven to the outskirts of the Fort Polk base around 10 p.m., on August 5, 2015. He then illicitly crossed the fence onto the installation. Once on Fort Polk, he illegally entered two residences where families were sleeping and stole personal belongings from the homes. He also broke into and stole items from a pickup truck. The Vernon Parish Sheriff’s Office found many of the stolen items in Yarbrough’s residence after a search on August 10, 2015.
Yarbrough faces 12 years in prison, three years of supervised release and a $2,000 fine. A sentencing date of June 9, 2016 was set.
The Fort Polk Directorate of Emergency Services and the Vernon Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
KC Man Pleads Guilty to Throwing Molotov Cocktails at Congressional OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to throwing Molotov cocktails at the local congressional office of U.S. Rep. Emanuel Cleaver II.
Eric G. King, 29, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charge of using explosive materials to commit arson, contained in an Oct. 7, 2014, federal indictment.
On Sept. 11, 2014, at 2:52 a.m., a window was broken and two Molotov cocktails were thrown at Cleaver’s congressional office located at 101 W. 31st Street, Kansas City, Mo. The office was unoccupied at the time of the incident. A hammer used to break the window was recovered from the scene, as well as two broken Molotov cocktails. There was no fire damage to the building.
Video footage shows King, wearing a large backpack, walking to the congressional office. King retrieved two Molotov cocktails from his backpack, then walked around the parking lot for a few minutes in an apparent effort to hide from cars that were passing by. The video footage shows King throwing a hammer through the west window then lighting the two Molotov cocktails. The first Molotov cocktail bounced off the side of the building. King threw the second Molotov cocktail through the window then sprinted away from the office.
Detectives with the Kansas City, Mo., Police Department were investigating King in connection with a series of anti-government related incidents of vandalism in the immediate vicinity of the congressional office. The incidents occurred over the Labor Day weekend in 2014 and involved the spray painting of anti-government/anarchy graffiti. One of the incidents was at a Bank of America, from which investigators obtained video surveillance footage that showed King spray painting the bank.
Investigators reviewed social media and Facebook posts by King and noted one post from Sept. 3, 2014, that read, “KC Fight Back celebrated its first labor day with a lovely variety of action, action and more action against a series of government and Financial properties.” Other posts included King posting “KC Fight Back Insurrectionist Collective is alive,” and “these cops aren’t going to kill themselves, get to the streets.” On Aug. 10, 2014, King posted “I want to leave kc better than I found or an ashes.” A social media post by King on the day before the congressional office was attacked read, “KC Fight Back has been in serious in its Insurrection activity, and that is the thing that is giving me the most pride in my life.”
King was arrested as he was leaving his apartment on Sept. 16, 2014. When officers opened the backpack King was carrying at the time, they found a can of red spray paint, Kingsford Charcoal Lighter fluid, and a clear plastic soda bottle (containing a clear liquid) with a tube sock placed over it.
Officers searched King’s apartment and found a hand-written letter entitled “Operation House Committee.” The letter, in part, was a list that contained the following: “(1) Paint thinner/alcohol, (2) face cover/hand cover/all tattoos covered, (3) Three bottles glass, (4) paper towels, old rags/lighter, (5) drive/driver, must be someone trust with.” The letter then mentioned the steps to light the devices, then said to “use hammer/sledgehammer to break door,” “light bottles, throw them, light curtains,” and repeat these steps on “government buildings, all things police, certain law firms, corporations…” The first part of the backside of the letter read, “The arsons committed on Sept 11, 2014 were committed solely by the KC FIGHT BACK Insurrectionist Collective.”
The Molotov cocktails recovered from the congressional office were analyzed by the ATF crime lab in order to identify any DNA that might be present and a profile was developed from one of the bottles and one of the wicks. A sample of King’s DNA was obtained via a search warrant; King’s DNA matched the DNA found on both the wick and bottle.
Under federal statutes King is subject to a sentence of 10 years in federal prison without parole. 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 C. Edwards. It was investigated by the FBI and the Kansas City, Mo., Police Department, the Federal Protective Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Isleta Pueblo Man Sentenced to Prison for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Warren Chewiwi, 42, a member of Isleta Pueblo who resides in Bosque Farms, N.M., was sentenced today in federal court in Albuquerque, N.M., to 23 months in prison for his domestic assault by a habitual offender conviction. He will be on supervised release for three years after completing his prison sentence.
Chewiwi was arrested on Aug. 12, 2015, on an indictment charging him with domestic assault of an intimate partner by a habitual offender on Sept. 8, 2013, in Isleta Pueblo in Valencia County, N.M. According to the indictment, Chewiwi was charged as a habitual offender based on his two prior domestic violence convictions in Isleta Pueblo Tribal Court. Isleta Tribal Pueblo Court records reflect that Chewiwi’s prior convictions occurred in 2010 and 2013.
On Dec. 1, 2015, Chewiwi pled guilty to the indictment and admitted that on Sept. 8, 2013, he assaulted the victim, his intimate partner, by grabbing her by the hair, jerking her around the room and hitting her with an open hand while he was under the influence of alcohol. He also acknowledged his two prior tribal court convictions.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Pueblo of Isleta Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Investigation results in charges against four business owners and an employee for violations of the Indian Arts and Crafts ActRead the Press Release
Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that an investigation conducted by the United States Fish and Wildlife Service (USFWS) has resulted in the filing of charges against four Southeast Alaska business owners and an employee for violations of the Indian Arts and Crafts Act (IACA).
The United States filed charges against Juneau resident and business operator Vinod “Vinny” L. Sippy, 38, d.b.a. Diamond Island, Icy Strait, and Gemstone Heaven; Juneau resident and business operator Norma M. Carandang, 60, d.b.a. Northstar Gift Shop; Puerto Rican resident and Ketchikan business owner Gabriel T. Karim, 33, d.b.a. Alaskan Heritage; Skagway resident and business owner Rosemary V. Libert, 56, d.b.a. Lynch and Kennedy Dry Goods, Inc.; and Libert’s seasonal employee, a resident of Huntington Beach, California, Judy M. Gengler, 65, for the illegal misrepresentation of bone art carvings as made by Alaska Natives or Indians, when in fact they were made by local non-native carvers.
The charges were filed as a result of an investigation conducted by USFWS based on complaints by summer tourists who were told that bone carvings that they purchased from Alaska shops in Southeast Alaska were authentic bone carvings made by Alaska Natives or Indians, when they were not. As a result of these complaints, the USFWS started an investigation looking into local Southeast businesses misrepresenting non-native bone carvings as made by Alaska Natives or Indians in May 2014.
The maximum penalty for violating the IACA as charged is one year in prison and $100,000 fine. Arraignment dates have not been set.
Ms. Loeffler commends the USFWS for their investigation of these cases with the assistance of Indian Arts and Crafts Board in Washington D.C. and the Alaska Attorney General’s Office – Consumer Protection Unit.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Individual Sentenced for His Participation in Extortion SchemeRead the Press Release
SAN JUAN, P.R. – On March 1, 2016, defendant Diomedes Joshua Alcantara-Troche was sentenced by United States District Court Judge Jay A. Garcia-Gregory to serve a term of imprisonment of 2 years, and 3 years of supervised released, for his participation in an extortion scheme, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On December 1, 2014, the victim received a telephone call from two unidentified males. The individuals, who were later identified as inmates currently incarcerated in a state prison, advised the victim that they had kidnapped her son, and would harm him unless the victim provided them with $6,000.00 US Dollars (USD). The inmates later agreed to lower the request to $1,000. The inmates also warned the victim not to contact the police or they would harm her son. Upon receiving the initial extortion telephone call from the inmates, the victim went to withdraw the money and with the assistance of a bank employee she managed to contact her son, who is a federal agent. Her son confirmed that he had not been kidnapped. The victim agreed to assist federal law enforcement agents and proceeded to comply with the instructions provided by the inmates to make the payment of $1,000.00 USD.
The inmates instructed the victim to bring $1,000.00 USD, to an area in Carolina. Upon receiving the money, the inmates stated that they would release her son without incident. After arriving at the location the federal agents spotted Alcantara-Troche driving a car that belonged to his girlfriend, Lorenly Garcia-Echevarria. Alcantara-Troche was detained by federal agents. Alcantara-Troche indicated that his girlfriend, Lorenly Garcia-Echevarria provided him the cellular telephone and the vehicle used to pick up the extortion money. Alcantara-Troche and Garcia-Echevarria were going to earn approximately $300.00 USD for their participation in the extortion scheme.
Co-defendant Lorenly Garcia was also sentenced to 2 years for her participation.
“This is a very common extortion scheme used by inmates in state prison in order to make some easy money from victims who fear their loved ones are in danger. We urge the public to contact law enforcement if they receive threats similar to this one,” said U.S Attorney Rosa Emilia Rodríguez-Vélez.
The case was investigated by HSI and the FBI and prosecuted by Special Assistant United States Attorney Normary Figueroa.
Immigrant Smuggler Indicted for Kidnapping Persons Seeking to Enter the United States, and Defrauding Their Relatives in the United StatesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 10-count indictment today against Martin Carranza-Sanchez, 45, resident of Mexico, charging him with kidnapping Mexican citizens seeking assistance in entering the United States without documentation, and with a scheme to defraud the families of persons seeking to enter the country, United States Attorney Benjamin B. Wagner announced. Carranza-Sanchez is charged with conspiracy to commit hostage taking, conspiracy to commit wire fraud, wire fraud, interstate communications to obtain ransom or reward, and carrying a firearm during a crime of violence. He was arrested at the border on January 21, 2016, and currently is in federal custody in Fresno, based on a complaint previously issued in this case.
The indictment alleges that Carranza-Sanchez and others conspired to obtain payment from people residing in the United States through various means, including by taking hostage their undocumented immigrant family members and friends who were seeking entry into the United States, and by falsely representing to the U.S. residents that their relatives had been smuggled into the United States. In five instances between December 2010 and November 2015, involving six victims, the indictment alleges that Carranza-Sanchez held the undocumented immigrants hostage in Mexico, threatened to harm them, and, on occasion, did harm them. He allegedly told the U.S. residents that he would harm or kill the immigrants if the U.S. residents did not pay him immediately. Carranza-Sanchez also is charged with fraud for falsely representing to U.S. residents that he would release the undocumented immigrants and deliver them to the United States upon receipt of payment by the U.S. residents.
“Kidnapping and fraud are serious federal crimes, regardless of the legal status of the victims in this country,” said U.S. Attorney Wagner. “The abuse and exploitation of undocumented immigrants is unacceptable, and we will continue to investigate and prosecute those who engage in such criminal conduct.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Angela L. Scott is prosecuting the case. The investigation is ongoing.
Carranza-Sanchez is currently detained in the Eastern District of California. If convicted, Carranza-Sanchez faces a maximum statutory penalty of life in prison. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Harvard-Trained Mutual Fund Manager Convicted of Securities Fraud and Obstruction of JusticeRead the Press Release
BOSTON – A Harvard-trained mutual fund manager was convicted today in connection with a scheme to use a mutual fund’s money to issue fictitious loans.
Daniel Thibeault, 41, of Framingham, pleaded guilty to one count of securities fraud and one count of obstruction of justice. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for June 16, 2016.
Thibeault was the owner of Graduate Leverage, LLC, an asset management and financial advisory firm he founded while a student at Harvard Business School, from which he graduated in 2004. Thibeault was also the co-portfolio manager of the GL Beyond Income Fund, a mutual fund launched in March 2012 that, according to its marketing materials and securities filings, purported to invest in loans to individuals who were “less susceptible to economic downturns, such as medical doctors, dentists, veterinarians, attorneys and business owners.”
Beginning no later than February 2013, Thibeault caused the Fund to issue several dozen loans, with values of hundreds of thousands of dollars, in the names of individuals who were his personal friends or acquaintances. In fact, those individuals had never applied to borrow money from Graduate Leverage, were unaware that the loans had been issued in their names, and did not receive any money. Instead, the money was diverted from the Fund into a Graduate Leverage operating account and used, at Thibeault’s direction, to pay the operating expenses of Graduate Leverage and its affiliated entities, Thibeault’s personal expenses, and interest on loans Thibeault had previously caused the Fund to issue. Some of the money was also transferred to Thibeault’s personal bank account. This use of investor money was contrary to GL’s representations to the Fund’s actual and prospective investors, and was not disclosed to them. By the time of Thibeault’s arrest in December 2014, more than $15 million – or more than 40 percent of the total assets purportedly held by the Beyond Income Fund – had been diverted as a result of Thibeault’s scheme.
Shortly before Thibeault’s arrest, the Securities and Exchange Commission opened a formal investigation into possible fraud at the Fund, and commenced an unannounced examination at GL’s offices in Waltham. As part of the examination, the SEC interviewed Thibeault. At today’s proceeding, Thibeault admitted that numerous statements he made to the SEC during the interview were false and intended to obstruct the SEC’s examination.
The charge of securities fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $5 million. The charge of obstruction of justice provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of 250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Brian A. Perez -Daple of Ortiz’s Economic Crimes Unit.
Hartford Grocery Store Owner Sentenced to 18 Months in Federal Prison for Food Stamp FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SALIH KAYA, 55, of West Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for committing food stamp fraud at his Hartford grocery store.
The federal food stamp program, known as the Supplemental Nutrition and Assistance Program (“SNAP”), is administered by the USDA’s Food and Nutrition Service (“FNS”) and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefit Transfer (“EBT”) card. SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents and statements made in court, KAYA has owned Green Apple Market, located at 264 Farmington Avenue in Hartford, since it opened on July 1, 2008. Between November 2010 and March 2014, KAYA illegally exchanged food stamps for cash and other ineligible items with customers at the store.
The FNS estimates that a reasonable sales figure for Green Apple Market, given the size, amenities and location of the store, should be no more than $60,000 per year. However, during this period, sales for the store totaled more than $2.6 million.
Judge Meyer ordered KAYA to pay restitution in the amount of $1,878,474.84.
KAYA was arrested on June 25, 2014. On March 5, 2015, he pleaded guilty to one count of food stamp fraud.
This matter was investigated by the U.S. Department of Agriculture, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Hammond Woman Sentenced for Making False Income Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SHIMEKA MILTON-FLAX, age 36, of Hammond was sentenced today after previously pleading guilty to preparing fraudulent tax returns.
U.S. District Judge Jane Triche Milazzo sentenced MILTON-FLAX to five years of probation and ordered her to pay $251,259 in restitution to the Internal Revenue Service (“IRS”).
According to court records, MILTON-FLAX knowingly prepared materially false tax returns for two individuals in that the return reported business losses and expenses that were completely fictitious in order to fraudulently inflate the tax refund received from the Internal Revenue Service. In total, Special Agents of the IRS confirmed that the defendant prepared and filed at least 48 fraudulent tax returns for 17 clients.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney G. Dall Kammer was in charge of the prosecution.
Guatemalan Drug Trafficker Pleads Guilty to Using U.S. Registered Aircraft to Transport Thousands of Kilograms of CocaineRead the Press Release
RICHMOND, Va. – Fernando Josue Chang-Monroy, 36, of Guatemala City, Guatemala, pleaded guilty today for his in role in an international drug trafficking conspiracy involving the use of United States registered aircraft purchased in the Eastern District of Virginia to transport 2,000 kilograms of cocaine in Central and South America.
“Chang-Monroy admitted today to participating in an international drug-trafficking conspiracy involving the transportation of thousands of kilograms of cocaine across Central and South America using aircraft purchased within the Eastern District,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “I commend our partners in state, federal, and international law enforcement for their cooperative efforts to unravel this massive drug conspiracy.”
“The plea agreement received from Chang-Monroy, a cocaine transporter in the international drug trade, is a reminder that justice will be served,” said Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division. “The DEA will continue to pursue the highest level of drug traffickers and work with our international and domestic partners to dismantle these criminal enterprises that threaten to bring these dangerous drugs inside our borders. As a result of the extraordinary efforts of U.S. law enforcement working together with our Guatemalan law enforcement partners, a significant drug trafficker in Central America has been brought to justice. This case serves as an example that there are no borders when it comes to prosecuting international narco-traffickers.”
“I am exceptionally proud of the teamwork with our federal partners,” said Colonel David R. Hines, Hanover County Sheriff. “This case is a perfect example of commitment and dedication among local and federal agencies working toward a common goal of serving our communities. I could not be more proud of the agencies and individual officers who worked so diligently to bring this case to a successful conclusion.”
In a statement of facts filed with the plea agreement, Chang-Monroy admitted to his role in the conspiracy to purchase two United States registered aircraft in the Eastern District of Virginia, for the purpose of transporting large amounts of cocaine from clandestine airstrips in Venezuela to clandestine airstrips in Honduras. Also as part of the conspiracy, Chang-Monroy arranged with the Venezuelan military for the safe passage of the drug trafficking aircraft through Venezuelan air space.
The first aircraft purchased by Chang-Monroy, a Beechcraft King Air C90 (“King Air C90”), was sold to a known Honduran drug trafficking organization in exchange for a percentage from the sale of the cocaine that was successfully transported on the aircraft and later distributed. On or about Oct. 27, 2013, the King Air C90 flew to Apure, Venezuela, where 1,000 kilograms of cocaine was loaded onto the aircraft and then successfully transported to Limon, Honduras. The second aircraft purchased by Chang-Monroy, a Beechcraft King Air E90 (“King Air E90”), was sold to a Colombian drug trafficking organization in exchange for U.S. currency. In order to prepare the King Air E90 for its illegal activities, Chang-Monroy arranged for multiple test flights to ensure its airworthiness, painted the aircraft to conceal its identity, and selected pilots to operate the aircraft during its trip to transport the cocaine. On or about March 2, 2014, the King Air E90 flew to Apure, Venezuela, and was loaded with 1,000 kilograms of cocaine. Prior to departure, upon seeing Venezuelan military aircraft overhead, the King Air E90 pilot refused to take off. Due to this delay, the cocaine was off-loaded from the King Air E90 and the Venezuelan military aircraft destroyed the King Air E90. On Sept. 10, 2015, Chang-Monroy was arrested in Guatemala City, Guatemala, and extradited to the United States on Dec. 1, 2015.
Chang-Monroy was indicted by a federal grand jury on May 6, 2015, and faces a maximum penalty of life in prison sentenced on July 18, 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; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Thomas M. Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington D.C. Field Office; Colonel David R. Hines, Hanover County Sheriff; and Colonel Thierry Dupuis, Chief of Chesterfield County Police, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson.
This case was investigated by the DEA and IRS-CI in partnership with the FBI, Richmond Police Department, Virginia State Police, the DEA Guatemala Country Office, and the DEA Bogota Country Office. Assistant U.S. Attorneys Erik S. Siebert, Dominick S. Gerace, and Peter S. Duffey are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-75.
Greer Man Pleads Guilty to Illegal Dumping in Violation of the Clean Water ActRead the Press Release
Contact Person: Jamie Schoen (864) 282-2100
Greenville, South Carolina ---- United States Attorney Bill Nettles stated that Timothy Howard, age 50, of Greer, South Carolina has entered a guilty plea in federal court in Anderson, to two counts of Violating Pretreatment Standards of the Clean Water Act, violations of 33 U.S.C. §§ 1317 and 1319, and 40 C.F.R. 403.5(b)(8). United States District Judge Timothy M. Cain of Anderson accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on April 2, 2011, Timothy Howard used an American Waste hauling truck to dump waste into a grease trap outside of a Publix in Greenville County, South Carolina. The grease trap was connected to the ReWa - Renewable Water Resources system. The site was not a designated waste disposal discharge point, and the illegal dumping violated both the Clean Water Act and Howard’s permit with ReWa.
On June 18, 2013, Howard again was caught illegally dumping into another grease trap. The grease trap on this date was located behind a closed restaurant in Lyman, South Carolina, and was connected to the Town of Lyman system. Again, this was not a designated discharge point, and dumping at this site violated both the Clean Water Act and the Town of Lyman regulations. At all times relevant to the charges, Timothy Howard was the owner and operator of American Waste, Inc., also known as American Waste Septic Tank Service.
Mr. Nettles stated the maximum penalty for each count of Violating Pretreatment Standards of the Clean Water Act is imprisonment for 3 years and/or a fine of $50,000 per day of the violations.
The case was investigated by agents of the Environmental Protection Agency, the Office of Criminal Investigations for South Carolina Department of Health and Environmental Control, the Greenville County Sheriff’s Office, the Duncan Police Department, and the Lyman Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville is prosecuting the case.
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Fourteen People Indicted on Charges Involving A Bootleg Cigarette SchemeRead the Press Release
St. Louis, MO –Fourteen people have been charged in a federal indictment alleging a large-scale conspiracy to traffic in contraband cigarettes. Twelve of the fourteen defendants were arrested earlier today, and the two remaining defendants are expected to surrender in the near future. The indictment had been returned on February 18, 2016, but remained sealed until the arrests today. The defendants are primarily from New York and the Atlanta area.
The indictment alleges that the defendants purchased large quantities of cigarettes in Missouri and Georgia, where the state tax on cigarettes is substantially lower than in New York, transported them to New York, sold the cigarettes without paying the New York tax, and concealed the transactions, resulting in a substantial profit.
According to the indictment, the State of Missouri and the State of New York require that a tax stamp be affixed to each package of cigarettes as proof of tax payments. New York currently imposes a combined state-local tax of $5.85 per package, compared with Missouri which imposes combined state-local tax of 22 to 24 cents per package in St. Louis County and St. Louis City. It is estimated that the tax loss for New York State is in excess of twenty million dollars.
If convicted, conspiracy to traffic in contraband cigarettes and money laundering carries a maximum penalty of five years in prison, and/or a fine up to $250,000; each count of trafficking in contraband cigarettes carries a maximum of five years in prison and/or fines up to $250,000; each count of money laundering carries a maximum of 20 years in prison and/or fines up to $500,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and IRS Criminal Investigation, with the assistance of multiple federal, state and local law enforcement agencies in Missouri, New York, Georgia, Indiana and Illinois.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Fourteen Indicted in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Thirteen individuals, most from the Wichita Falls, Texas, area, charged in a federal indictment with offenses stemming from their respective roles in a methamphetamine distribution conspiracy, remain in federal custody after making their initial appearances in federal court in Fort Worth, Texas, and pleading not guilty to the charges. One defendant charged in the indictment remains in state custody. A trial date of April 11, 2016, has been set. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
The indictment alleges the conspiracy began before mid-2011 and continued to the date of the indictment, February 10, 2016. Count One of the indictment charges the following six defendants with conspiracy to possess with intent to distribute 50 grams or more of methamphetamine:
Cleto Tarin, 52
Miguel Antonio Martinez, 31
Marcus Caldwell, 32
Hector Salvidar, 33
Bobby Frie, Jr., 30
Ramondo Acuna, 31If convicted on this count, the statutory penalty is not less than five years or more than 40 years in federal prison and a $5 million fine.
Count Two of the indictment charges the following eight defendants with conspiracy to possess with intent to distribute methamphetamine:
David Sheppard, 39
Kendra Ward, 27
Susan Williams, 28
Eric Overstreet, 27
Robert Baggott, 45
Cecil Hindman, 51
Oscar Melanson, 31
Jonathan Morris, 31Defendant Hindman has not yet made his initial appearance in federal court; a writ has been issued to transfer him from state custody to federal custody. If convicted on this count, the statutory penalty is a maximum of 20 years in federal prison and a $1 million fine.
An indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wichita Falls Police Department are conducting the investigation.
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Fourteen Additional Defendants Charged for Felony Crimes Related to 2014 Standoff in NevadaRead the Press Release
The Justice Department announced today that a federal grand jury in Nevada has charged 14 additional defendants in connection with the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nevada, area on April 12, 2014.
“The Department of Justice is committed to protecting the American people and defending the rule of law,” said Attorney General Loretta E. Lynch. “Today’s actions make clear that we will not tolerate the use of threats or force against federal agents who are doing their jobs. We will continue to protect public land on behalf of the American people, uphold federal law, and ensure that those who employ violence to express their grievances with the government will be apprehended and held accountable for their crimes.”
“Our democracy provides lawful ways individuals can respond if they disagree with their government, but if you resort to violence or threats, you will be held accountable under the law,” said FBI Director James B. Comey.
A superseding criminal indictment was returned by the grand jury on March 2 and now charges a total of 19 defendants. The 14 new defendants are Melvin D. Bundy, 41, of Round Mountain, Nevada; David H. Bundy, 39, of Delta, Utah; Brian D. Cavalier, 44, of Bunkerville; Blaine Cooper, 36, of Humboldt, Arizona; Gerald A. DeLemus, 61, of Rochester, New Hampshire; Eric J. Parker, 32, of Hailey, Idaho; O. Scott Drexler, 44, of Challis, Idaho; Richard R. Lovelien, 52, of Westville, Oklahoma; Steven A. Stewart, 36, of Hailey; Todd C. Engel, 48, of Boundary County, Idaho; Gregory P. Burleson, 52, of Phoenix; Joseph D. O’Shaughnessy, 43, of Cottonwood, Arizona; and Micah L. McGuire, 31, and Jason D. Woods, 30, both of Chandler, Arizona.
The newly-added defendants are each charged with one count of conspiracy to commit an offense against the United States and conspiracy to impede or injure a federal officer, and at least one count of using and carrying a firearm in relation to a crime of violence, assault on a federal officer, threatening a federal law enforcement officer, obstruction of the due administration of justice, interference with interstate commerce by extortion and interstate travel in aid of extortion. The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.
Twelve defendants were arrested earlier today. Two defendants, Cavalier and Cooper, were already in federal custody in the District of Oregon.
Charges against the original five defendants, Cliven D. Bundy, 69, of Bunkerville; Ryan C. Bundy, 43, of Mesquite, Nevada; Ammon E. Bundy, 40, of Emmet, Idaho; Ryan W. Payne, 32, of Anaconda, Montana; and Peter T. Santilli Jr., 50, of Cincinnati, remain the same.
The superseding indictment alleges that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville on April 12, 2014. The defendants are alleged to have planned, organized and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody. In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.
The superseding indictment charges that Cliven Bundy was the leader, organizer and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion. The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives.
If convicted, the maximum penalties for the charges are: five years and a $250,000 fine for conspiracy to commit an offense against the United States; six years and a $250,000 fine for conspiracy to impede and injure a federal law enforcement officer; 20 years and a $250,000 fine for assault on a federal law enforcement officer; 10 years and a $250,000 fine for threatening a federal law enforcement officer; 10 years and a $250,000 fine for obstruction of the due administration of justice; 20 years and a $250,000 fine for interference with interstate commerce by extortion; and 20 years and a $250,000 fine for interstate travel in aid of extortion. The use and carry of a firearm in relation to a crime of violence charge carries a five year mandatory minimum to be served consecutively.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The case is being investigated by the FBI and the Bureau of Land Management. It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan of the District of Nevada.
Bundy Superseding Indictment
Fourteen Additional Defendants Charged for Felony Crimes Related to 2014 Standoff in NevadaRead the Press Release
WASHINGTON – The Justice Department announced today that a federal grand jury in Nevada has charged 14 additional defendants in connection with the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nevada, area on April 12, 2014.
“The Department of Justice is committed to protecting the American people and defending the rule of law,” said Attorney General Loretta E. Lynch. “Today’s actions make clear that we will not tolerate the use of threats or force against federal agents who are doing their jobs. We will continue to protect public land on behalf of the American people, uphold federal law, and ensure that those who employ violence to express their grievances with the government will be apprehended and held accountable for their crimes.”
“Our democracy provides lawful ways individuals can respond if they disagree with their government, but if you resort to violence or threats, you will be held accountable under the law,” said FBI Director James B. Comey.
A superseding criminal indictment was returned by the grand jury on March 2 and now charges a total of 19 defendants. The 14 new defendants are Melvin D. Bundy, 41, of Round Mountain, Nevada; David H. Bundy, 39, of Delta, Utah; Brian D. Cavalier, 44, of Bunkerville; Blaine Cooper, 36, of Humboldt, Arizona; Gerald A. DeLemus, 61, of Rochester, New Hampshire; Eric J. Parker, 32, of Hailey, Idaho; O. Scott Drexler, 44, of Challis, Idaho; Richard R. Lovelien, 52, of Westville, Oklahoma; Steven A. Stewart, 36, of Hailey; Todd C. Engel, 48, of Boundary County, Idaho; Gregory P. Burleson, 52, of Phoenix; Joseph D. O’Shaughnessy, 43, of Cottonwood, Arizona; and Micah L. McGuire, 31, and Jason D. Woods, 30, both of Chandler, Arizona.
The newly-added defendants are each charged with one count of conspiracy to commit an offense against the United States and conspiracy to impede or injure a federal officer, and at least one count of using and carrying a firearm in relation to a crime of violence, assault on a federal officer, threatening a federal law enforcement officer, obstruction of the due administration of justice, interference with interstate commerce by extortion and interstate travel in aid of extortion. The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.
Twelve defendants were arrested earlier today. Two defendants, Cavalier and Cooper, were already in federal custody in the District of Oregon.
Charges against the original five defendants, Cliven D. Bundy, 69, of Bunkerville; Ryan C. Bundy, 43, of Mesquite, Nevada; Ammon E. Bundy, 40, of Emmet, Idaho; Ryan W. Payne, 32, of Anaconda, Montana; and Peter T. Santilli Jr., 50, of Cincinnati, remain the same.
The superseding indictment alleges that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville on April 12, 2014. The defendants are alleged to have planned, organized and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody. In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.
The superseding indictment charges that Cliven Bundy was the leader, organizer and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion. The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives.
If convicted, the maximum penalties for the charges are: five years and a $250,000 fine for conspiracy to commit an offense against the United States; six years and a $250,000 fine for conspiracy to impede and injure a federal law enforcement officer; 20 years and a $250,000 fine for assault on a federal law enforcement officer; 10 years and a $250,000 fine for threatening a federal law enforcement officer; 10 years and a $250,000 fine for obstruction of the due administration of justice; 20 years and a $250,000 fine for interference with interstate commerce by extortion; and 20 years and a $250,000 fine for interstate travel in aid of extortion. The use and carry of a firearm in relation to a crime of violence charge carries a five year mandatory minimum to be served consecutively.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The case is being investigated by the FBI and the Bureau of Land Management. It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan of the District of Nevada.
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Fourteen Additional Defendants Charged for Felony Crimes Related to 2014 Standoff in NevadaRead the Press Release
LAS VEGAS, Nev. – The federal grand jury in Nevada has charged 14 more defendants in connection with the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nev. area on April 12, 2014, over the removal of Cliven Bundy’s cows from public lands, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Laura Bucheit for the FBI in Nevada.
“This investigation began the day after the assault against federal law enforcement officers and continues to this day,” said U.S. Attorney Bogden. “We will continue to work to identify the assaulters and their role in the assault and the aftermath, in order to ensure that justice is served.”
A superseding criminal indictment was returned by the grand jury on Wednesday, March 2, and now charges a total of 19 defendants. The 14 new defendants are Melvin D. Bundy, 41, of Round Mountain, Nev., David H. Bundy, 39, of Delta, Utah, Brian D. Cavalier, 44, of Bunkerville, Nev., Blaine Cooper, 36, of Humboldt, Ariz., Gerald A. DeLemus, 61, of Rochester, N.H., Eric J. Parker, 32, of Hailey, Idaho, O. Scott Drexler, 44, of Challis, Idaho, Richard R. Lovelien, 52, of Westville, Okla., Steven A. Stewart, 36, of Hailey, Idaho, Todd C. Engel, 48, of Boundary County, Idaho, Gregory P. Burleson, 52, of Phoenix, Ariz., Joseph D. O’Shaughnessy, 43, of Cottonwood, Ariz., and Micah L. McGuire, 31, and Jason D. Woods, 30, both of Chandler, Ariz.
Twelve defendants were arrested earlier today. Two defendants, Brian D. Cavalier and Blaine Cooper, were already in federal custody in the District of Oregon.
“These indictments and subsequent arrests send an irrefutable message to the American people that our determination remains steadfast to protect them and pursue individuals who participate in violent acts of this nature,” said Special Agent in Charge Bucheit.
The newly-added defendants are charged with one count of conspiracy to commit an offense against the United States and conspiracy to impede or injure a federal officer, and at least one count of using and carrying a firearm in relation to a crime of violence, assault on a federal officer, threatening a federal law enforcement officer, obstruction of the due administration of justice, interference with interstate commerce by extortion, and interstate travel in aid of extortion. The indictment also alleges five counts of criminal forfeiture which upon conviction would require forfeiture of property derived from the proceeds of the crimes totaling at least $3 million, as well as the firearms and ammunition possessed and used on April 12, 2014.
Charges against the original five defendants, Cliven D. Bundy, 69, of Bunkerville, Nev., Ryan C. Bundy, 43, of Mesquite, Nev., Ammon E. Bundy, 40, of Emmet, Idaho, Ryan W. Payne, 32, of Anaconda, Mont., and Peter T. Santilli, Jr., 50, of Cincinnati, Ohio, remain the same.
The superseding indictment states that the charges result from a massive armed assault against federal law enforcement officers that occurred in and around Bunkerville, Nev., on April 12, 2014. The defendants are alleged to have planned, organized, and led the assault in order to extort the officers into abandoning approximately 400 head of cattle that were in their lawful care and custody. In addition to conspiring among themselves to plan and execute these crimes, the defendants recruited, organized, and led hundreds of other followers in using armed force against law enforcement officers in order to thwart the seizure and removal of Cliven Bundy’s cattle from federal public lands. Bundy had trespassed on the public lands for over 20 years, refusing to obtain the legally-required permits or pay the required fees to keep and graze his cattle on the land.
The superseding indictment charges that Cliven Bundy was the leader, organizer, and chief beneficiary of the conspiracy, and possessed ultimate authority over the conspiratorial operations and received the economic benefits of the extortion. The remaining defendants are charged as leaders and organizers who conspired with Bundy to achieve his criminal objectives.
The maximum penalties for the charges are stated below.
Conspiracy to Commit an Offense Against the United States – 5 years, $250,000 fine
Conspiracy to Impede and Injure a Federal Law Enforcement Officer – 6 years, $250,000 fine
Assault on a Federal Law Enforcement Officer – 20 years, $250,000 fine
Threatening a Federal Law Enforcement Officer – 10 years, $250,000 fine
Use and Carry of a Firearm in Relation to a Crime of Violence – 5 years minimum and consecutive
Obstruction of the Due Administration of Justice - 10 years, $250,000 fine
Interference with Interstate Commerce by Extortion - 20 years, $250,000 fine
Interstate Travel in Aid of Extortion – 20 years, $250,000 fine
The case is being investigated by the FBI and the Bureau of Land Management. It is being prosecuted by Assistant U.S. Attorneys Steven W. Myhre and Nicholas D. Dickinson and Special Assistant U.S. Attorneys Nadia J. Ahmed and Erin M. Creegan.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Four Bureau of Corrections Officers Arrested on Charges of Providing Prison ContrabandRead the Press Release
St. Croix, USVI – Waheeda Ali, 32, Abdul Robinson, 38, Patrick Richards, 41, Eustace Roper, 51, were arrested yesterday pursuant to criminal complaints filed against them on Tuesday, March 1, 2016, United States Attorney Ronald W. Sharpe announced today. They made their initial appearance before U.S. Magistrate Judge George Cannon in district court yesterday. All defendants were released on bail pending the filing of formal charges.
The complaints resulted from years of investigative work by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation who conducted a probe into official corruption within the Virgin Islands Bureau of Corrections.
The complaints charge all defendants with varying counts of providing contraband in prison, promoting dangerous prison contraband and conflict of interest. If convicted of providing prison contraband, the defendants face a maximum of one year of incarceration. If convicted of promoting dangerous prison contraband, they face a maximum sentence of five years’ incarceration. If convicted of conflict of interest, they face a minimum sentence of one year of incarceration and a maximum sentence of five years.
A complaint is merely an informal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Former Tribal Casino Employee Pleads Guilty to EmbezzlementRead the Press Release
WICHITA, KAN. – A former tribal casino employee pleaded guilty Wednesday to embezzlement, U.S. Attorney Barry Grissom said today.
Donald M. Collins, 32, Wetmore, Kan., pleaded guilty to one count of embezzlement and theft from an Indian tribal organization. In his plea, he admitted the crime took place while he worked as a Players Club Representative for the Sac and Fox Casino, which is owned by the Sac and Fox Nation of Kansas and Nebraska.
Collins made counterfeit player cards and placed unearned free play on player cards belonging to his friends. Collins and others played the cards. The value of the counterfeit cards, along with winnings generated by the cards, caused a total loss to the casino of $30,766.
Sentencing is set for July 7. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Kansas State Gaming Agency investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Former Tax Preparer Sentenced to Six Years for Filing More Than $700,000 in False Tax ReturnsRead the Press Release
Memphis, TN – A woman has been sentenced to 72 months for submitting fraudulent federal income tax returns that defrauded the government of more than $700,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Tracey D. Montaño, Special Agent in Charge of IRS-Criminal Investigation, announced the sentence today.
According to information presented in court, Bridget Pollard, 45, of Memphis, owned and operated Freedom Tax Service, a local tax preparation business. For the 2008 tax year, Pollard utilized an electronic filing identification number (EFIN) to electronically process and file tax returns. Pollard submitted 97 returns to the Internal Revenue Service (IRS) that falsely and fraudulently claimed credits for first-time homebuyers (FTHBC) and business owners (Schedule C).
Pollard reportedly told clients that all they had to do to qualify for FTHBC was have the intention to purchase a home. Many clients were unaware that Pollard was actually filing a tax return on their behalf; they thought they were simply applying for a home loan. Furthermore, Pollard filed false Schedule C tax forms for clients who were in fact unemployed.
The total amount of fraudulent claims made by Pollard was in excess of $700,000.
In December 2015, Pollard was convicted by a federal jury on 12 counts of submitting fraudulent federal income tax returns.
On Wednesday, March 2, 2016, Chief U.S. District Judge Jon P. McCalla sentenced Pollard to six years in federal prison.
This case was investigated by IRS-Criminal Investigation.
Assistant U.S. Attorneys David Pritchard and Damon K. Griffin prosecuted the case on the government’s behalf.
Former Mandeville Postal Worker Sentenced for Stealing Credit Cards from the MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHNNY BAHAM, age 53, of Mandeville, was sentenced today after previously pleading guilty to stealing the United States mail.
According to court records, BAHAM was employed as a contract letter carrier in Mandeville. A federal investigation revealed that in December 2014, BAHAM stole first class mail containing two $75 Master Card gift cards from his mail route.
U.S. District Judge Eldon E. Fallon sentenced BAHAM to three years’ probation, $150 in restitution, and a $250 fine.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
Former Jail Administrator from Stone County, Arkansas, Pleads Guilty to Instructing Inmates to Assault Another PrisonerRead the Press Release
The Justice Department announced that Randel Branscum, 56, a former chief deputy and jail administrator with the Stone County Sheriff’s Office in Mountain View, Arkansas, pleaded guilty late yesterday to violating the civil rights of a prisoner when he instructed two other inmates to beat that prisoner and then arranged for the beating to occur. One of those inmates, Matthew McConniel, also pleaded guilty late yesterday to the same charge as Branscum, while the other inmate, James Beckham, pleaded guilty to the same civil rights offense on Feb. 26, 2016.
During his guilty plea before Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas, Branscum admitted that while acting under his authority as jail administrator, he approached the inmates in their cell and asked them to “handle” the victim. Branscum then forced the victim into the cell and allowed the victim to be beaten by Beckham and McConniel as instructed. During the assault, the victim was repeatedly struck and his head was punched into a windowsill causing a laceration and other injuries. Branscum admitted that after the beating, he gave Beckham and McConniel tobacco.
Branscum is expected to receive a sentence of 12 months and a day in federal prison. He will be sentenced at a later date.
“Branscum abused his authority as a law enforcement officer by facilitating the assault of an individual in custody,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously pursue and hold accountable members of law enforcement who violate their oath and the civil rights of others.”
“Branscum’s actions undermine the credibility of all law enforcement officers, and he must be held accountable,” said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas. “We will not tolerate the violation of anyone’s rights, and law enforcement officers who break the law and violate their oath to protect the public will continue to face the consequences of their actions.”
This case was investigated by the FBI, and was prosecuted by Special Litigation Counsel Gerard Hogan, and Trial Attorneys Gabriel Davis and Samantha Trepel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Former Jail Administrator from Stone County, Arkansas, Pleads Guilty to Instructing Inmates to Assault Another PersonRead the Press Release
WASHINGTON – The Justice Department announced that Randel Branscum, 56, a former chief deputy and jail administrator with the Stone County Sheriff’s Office in Mountain View, Arkansas, pleaded guilty late yesterday to violating the civil rights of a prisoner when he instructed two other inmates to beat that prisoner and then arranged for the beating to occur. One of those inmates, Matthew McConniel, also pleaded guilty late yesterday to the same charge as Branscum, while the other inmate, James Beckham, pleaded guilty to the same civil rights offense on Feb. 26, 2016.
During his guilty plea before Chief U.S. District Court Judge Brian S. Miller of the Eastern District of Arkansas, Branscum admitted that while acting under his authority as jail administrator, he approached the inmates in their cell and asked them to "handle" the victim. Branscum then forced the victim into the cell and allowed the victim to be beaten by Beckham and McConniel as instructed. During the assault, the victim was repeatedly struck and his head was punched into a windowsill causing a laceration and other injuries. Branscum admitted that after the beating, he gave Beckham and McConniel tobacco.
Branscum is expected to receive a sentence of 12 months and a day in federal prison. He will be sentenced at a later date.
"Branscum abused his authority as a law enforcement officer by facilitating the assault of an individual in custody," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. "The Justice Department will continue to vigorously pursue and hold accountable members of law enforcement who violate their oath and the civil rights of others."
"Branscum’s actions undermine the credibility of all law enforcement officers, and he must be held accountable," said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas. "We will not tolerate the violation of anyone’s rights, and law enforcement officers who break the law and violate their oath to protect the public will continue to face the consequences of their actions."
This case was investigated by the FBI, and was prosecuted by Special Litigation Counsel Gerard Hogan, and Trial Attorneys Gabriel Davis and Samantha Trepel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Former Alcorn State University Police Officer Pleads Guilty to Assaulting Former StudentRead the Press Release
The Justice Department announced that Berthurm Allen, 42, a former police officer with the Alcorn State University (ASU) Police Department in Lorman, Mississippi, pleaded guilty today in federal court to violating the civil rights of an arrestee.
During his guilty plea before Senior U.S. District Judge David Bramlette III of the Southern District of Mississippi, Allen admitted that while acting under his authority as an ASU police officer, he elbowed the victim in the face and threw the victim to the ground without legal justification. He also admitted that he misrepresented the circumstances surrounding the incident in his official police report to minimize his exposure to allegations of misconduct. Allen’s actions caused injuries to the victim’s nose and face. According to information presented in court, the incident occurred at the Claiborne County Jail in Port Gibson, Mississippi, and was recorded by the jail’s surveillance cameras.
“When police officers violate the laws they swear to uphold, it threatens the credibility of our criminal justice system,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute and hold accountable those officers who violate the constitutional rights of people in their custody.”
“The use of excessive force by law enforcement officers is a violation of the officer’s oath to protect the constitutional rights of all persons, even those in custody,” said U. S. Attorney Gregory K. Davis of the Southern District of Mississippi. “Ensuring that law enforcement officers do not victimize the citizens they are sworn to serve and protect is a top priority of this office.”
This case was investigated by the FBI’s Jackson Division, and is being prosecuted by Trial Attorneys Julia Gegenheimer and Sheldon L. Beer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Christopher Wansley of the Southern District of Mississippi.
Florida Man Pleads Guilty to StalkingRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Charles Mack, 51, of Clearwater, Florida, pleaded guilty today in U.S. District Court to stalking.
Court records reveal that between January 2014 and May 2015, Mack sent a series of harassing emails and text messages to his ex-wife, who was living in Maine, despite her repeated requests that he stop the communications. Mack’s conduct caused the victim substantial emotional distress.
Mack faces up to five years in prison and a fine of up to $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation.
Fishers Tax Return Preparer pleads guilty in fraud schemeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that David R. Franklin, 43, Fishers, has pled guilty to three counts of procuring the preparation of false federal income tax returns before U.S. District Judge Tanya Walton Pratt.
“When someone cheats on their tax returns, let’s call it what it is-stealing,” said Minkler. “Federal budgets are not bottomless accounts and when individuals steal from the government, the difference must be made up by honest tax-paying citizens.”
Franklin owned and operated more than 20 Instant Tax Service (ITS) tax preparation stores in Indianapolis. On August 8, 2013, United States District Judge Sarah Evans Barker granted a permanent civil injunction against Franklin and ITS. This action ordered Franklin and ITS from directly or indirectly preparing, filing or assisting in the preparation or filing of any federal tax return.
The Internal Revenue Service-Criminal Investigation initiated an investigation of Franklin. The investigation revealed that Franklin trained and directed his employee return preparers regarding the preparation of federal income tax returns. Specifically, Franklin counseled and advised his employees to prepare false and fraudulent federal income tax returns for multiple clients from 2010 through 2012.
As a specific means of generating false returns, Franklin directed his employees to prepare Form 1040 Schedule C forms reporting inflated business income or losses, which then resulted in unauthorized earned income credits and refunds for taxpayer clients of ITS.
As a result of these efforts by Franklin, more than 2,300 false federal income tax returns were filed by ITS between 2010 and 2012, which resulted in a loss to the Internal Revenue Service and the American public of $1,501,000.
As part of Franklin’s plea agreement, he will be ordered by the court to pay full restitution for the criminal tax loss of $1,501,000.
“With tax season upon us, I want to assure the American taxpayers that IRS Criminal Investigation is focused on protecting revenue by investigating abusive tax return preparers,” said IRS Criminal Investigation Special Agent in Charge James D. Robnett. “While most return preparers are honest and provide excellent service, a few unscrupulous tax preparers file false and fraudulent returns to defraud their clients and the United States government. Today we are putting those dishonest tax preparers on notice; we are watching your activities more closely than ever before. Today’s guilty plea should send a loud message to those dishonest return preparers thinking of engaging in criminal activity.”
According to Assistant United States Attorney James M. Warden, who is prosecuting the case for the government, each offense is punishable by a maximum sentence of three (3) years’ imprisonment, a $250,000 fine, and one (1) year supervised release following any term of imprisonment. Warden added that the sentence imposed on each count may be ordered to be served consecutively to the other counts. Sentencing date is scheduled for October 14, 2016.
Final Barrio Azteca Member in El Paso Sentenced to Federal Prison on RICO, Drug Trafficking and Money Laundering ChargesRead the Press Release
In El Paso today, 40-year-old Barrio Azteca member Roberto Meza was sentenced to 120 months in federal prison for his role in a racketeering enterprise. Meza was the 17th and final defendant to be sentenced to federal prison as a result of this investigation.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, and Homeland Security Investigations Special Agent in Charge Waldemar Rodriguez.
On August 21, 2015, Meza pleaded guilty to one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, one count of conspiracy to possess with intent to distribute a controlled substance, and one count of money laundering.
According to court records, from August 1, 2010, to September 10, 2014, the members of this organization conducted their affairs through a pattern of racketeering to include murder, attempted murder, extortion, assault, and drug trafficking.
Other defendants sentenced in this investigation include:
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Juan Pablo Espino, age 38 – sentenced to 299 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy and money laundering charges;
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Fernando Madrid, age 42 – sentenced to 110 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Raul Lopez, age 35 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Manuel Minjares, age 55 -- sentenced to 300 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Eugene Lozano, age 44 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to RICO conspiracy charge;
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Rigoberto Alvarado-Mendez, age 42 – sentenced to 90 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Gabriel Aldana, age 44 – sentenced to 90 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Richard Rene Espino, age 35 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Christopher Ytuarte, age 42 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy and money laundering charges;
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Rito Miguel Alvarez, age 37– sentenced to 240 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Ramon Sanchez, age 49 – sentenced to 120 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Hector Bernal, age 46 – sentenced to 110 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge;
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Jose Angel Barrios, age 45 – sentenced to 240 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy and Murder in Aid of Racketeering charges;
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Eddie Mendoza, age 32 – sentenced to 110 months imprisonment; fined $2,000 after pleading guity to the RICO conspiracy charge;
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Barbara Rodriguez, age 36 – sentenced to one year imprisonment followed by three years of supervised release after pleading guilty to the RICO conspiracy and drug distribution conspiracy charges; and,
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Juan Carlos Nunez, age 24 – sentenced to 60 months imprisonment; fined $2,000 after pleading guilty to the RICO conspiracy charge.
“As a result of these sentencings, the Barrio Azteca criminal enterprise was held accountable for three gang related murders and the principal Barrio Azteca leaders were removed from the streets of El Paso. The FBI will continue to investigate criminal enterprise groups in the El Paso Area of Responsibility to maintain safety in the community,” stated FBI Special Agent in Charge Douglas E. Lindquist.
Waldemar Rodriguez, Special Agent in Charge of HSI El Paso, said, “This case exemplifies the effectiveness of law enforcement joining forces to protect our community from violent gangs. This sentence makes clear that HSI will not allow thugs, who think they are above the law, to rule our streets. We will continue to work with our law enforcement partners and the community at large to bring criminals to justice.”
This case resulted from an investigation led by the FBI El Paso - Safe Streets Gang Task Force, and the El Paso Police Department, with significant assistance by the El Paso Sheriff’s Office, Texas Department of Public Safety, Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and several other law enforcement agencies.
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Federal Judge Sentences Tuscaloosa County Man to 14 Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal judge on Monday sentenced a Tuscaloosa County man to 14 years in prison for receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Alabama Law Enforcement Agency Acting Secretary Stan Stabler.
U.S. District Judge L. Scott Coogler sentenced ADAM SHANE SWINDLE, 34, on one count each of receiving and possessing child pornography in 2014.
The defendant used peer-to-peer file-sharing computer software to receive and possess videos depicting children under the age of 12 being raped and sodomized. The simple possession of these images is a crime of violence.
“This defendant is NOT a minimal offender and therefore deserves a harsh sentence of imprisonment,” the government said in a court filing.
The FBI and ALEA State Bureau of Investigation investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell prosecuted.
Dominican Man Pleads Guilty to Misrepresenting A Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Alberto Martinez, of the Dominican Republic, has pleaded guilty to a two-count indictment alleging that he misrepresented a social security number and falsely claimed to be a U.S. citizen while attempting to get a New Hampshire driver’s license.
On November 5, 2015, a New Hampshire State Trooper requested assistance from U.S. Immigration and Customs Enforcement and Removal Operations (ICE-ERO) in identifying an individual who was attempting to renew a New Hampshire driver’s license.
The individual initially claimed to be a United States Citizen born in Puerto Rico. He had filled out and signed a renewal application on which he had entered a social security number which had not been assigned to him and had answered “yes” to the question “Are you a United States citizen?”
ICE-ERO agents informed the defendant that they intended to submit his fingerprints to the Department of Homeland Security’s Integrated Automated Biometric Identification System (IAFIS) and the Automated Biometric Identification System (IDENT) for comparison to FBI and ICE databases. Before being fingerprinted, the defendant admitted that his true name was Alberto Martinez, that he was born in the Dominican Republic and is a citizen of the country, and that he illegally entered the United States about six years earlier by walking across the United States border with Mexico.
Martinez will be sentenced at 10:00 AM on June 20, 2016, and will be deported after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the New Hampshire State Police. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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District Court Enters Permanent Injunction Against Virginia-Based Sprout Producer and its Owner to Prevent Distribution of Adulterated FoodRead the Press Release
The U.S. District Court for the Eastern District of Virginia entered a consent decree of permanent injunction against Henry’s Farm Inc., of Woodford, Virginia, and its owner, Soo C. Park, to prevent the distribution of adulterated food, the Department of Justice announced today. Henry’s Farm manufactured and distributed a variety of soybean sprouts and repackaged and distributed mungbean sprouts.
The department filed a complaint in the U.S. District Court for the Eastern District of Virginia at the request of the U.S. Food and Drug Administration (FDA), alleging that the company and its owner have a history of processing food products under insanitary conditions.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. Under the consent decree, defendants cannot process or distribute food until they report to FDA the actions they have taken to bring their operations into compliance with the federal Food, Drug and Cosmetic Act (FDCA), including cleaning and sanitizing the facility and equipment therein, and FDA notifies the defendants that they appear to be in compliance with specific remedial actions set forth in the decree and the FDCA.
“Insanitary conditions at food processing facilities can pose well-known risks to consumers, but such risks can be effectively mitigated if companies handling food take proper precautions,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to combat and deter conduct that leads to the distribution of adulterated food to consumers.”
“It’s the FDA’s responsibility to protect consumers from potentially harmful food entering the food supply,” said FDA’s Associate Commissioner Melinda K. Plaisier for regulatory affairs. “When a company continues to produce food that presents a risk for consumers, the FDA will take whatever steps necessary to protect public health.”
According to the complaint, in December 2014, FDA investigators inspected Henry’s Farm’s manufacturing facility at 5500 Fair Oaks Lane in Woodford and found numerous insanitary conditions, including: standing water in the sprout production room; sprout debris at various places along the packaging line and floor; three dead insects and a live spider on packing material in the processing room and three dead insects in the seed storage area.
As alleged in the complaint, FDA investigators discovered the presence of L. mono at the facility, including samples taken from food contact surfaces and a sample of finished sprout product collected in May 2012. L. mono is food-borne bacteria that can cause serious illness or even death in consumers. Eating food contaminated with L. mono poses the greatest risk to populations with impaired or weaker immune systems, including pregnant women, infants and the elderly.
According to the complaint, the FDA inspected Henry’s Farm’s facility three times before the December 2014 inspection — in June 2014, December 2013 and May 2012. As alleged in the complaint, in each prior inspection, FDA investigators found inadequate sanitation practices including: standing water in sprout production areas; sprout debris on food contact surfaces; failure to maintain cleaning logs; rodent activity in the sprout production area and failure to use any antimicrobial treatment to reduce the hazard of pathogens that may be present on seed for sprouting. As alleged in the complaint, FDA repeatedly warned defendants that further action could be taken if the insanitary conditions persisted.
The government is represented by Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel Tara Boland of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
Henry's Farm Consent Decree of Permanent Injunction
Department of Justice Announces New Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
Attorney General Loretta E. Lynch announced a new Award for Distinguished Service in Community Policing at a roundtable during her Community Policing Tour stop in Portland, Oregon.
The Attorney General’s Award recognizes individual state, local or tribal sworn police officers and deputies for exceptional efforts in community policing. The winning officer(s) or deputy and/or deputies will have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing.
“I have made building trust between law enforcement officers and the communities we serve a top priority for the Department of Justice,” said Attorney General Lynch. “Honoring the outstanding work of our rank and file is a significant part of that effort. This award will represent and uplift the often unsung work being done every day by law enforcement officers throughout the nation.”
Within each category an award will be given to law enforcement agencies serving small, medium and large jurisdictions including:
- Agencies serving populations fewer than 50,000
- Agencies serving populations 50,000 to 250,000
- Agencies serving populations over 250,000
By distinguishing and rewarding these efforts, the Department of Justice strives to promote and sustain its national commitment to community policing and to advance policing practices that are fair, impartial and procedurally just.
With the Attorney General’s Award for Distinguished Service in Community Policing, the Office of the Attorney General recognizes that within and across the various law enforcement agencies that make up the more than 18,000 units across the country, individual officers can have a transformational impact on their agencies and the communities they serve by embracing the philosophy of community policing and incorporating it into their daily work.
The application for nominees will be posted next week at https://www.justice.gov/ag/community-policing-award.
Delaware Cheese Company Pleads Guilty to Food Adulteration ChargeRead the Press Release
U.S. District Court Also Issues Permanent Injunction Against Company and Two Principals
Roos Foods Inc., a Delaware company, pleaded guilty to a misdemeanor violation of the Federal Food, Drug and Cosmetic Act (FDCA), in the U.S. District Court for the District of Delaware, the Department of Justice announced today. U.S. Magistrate Judge Sherry R. Fallon accepted the company’s guilty plea and sentenced Roos Foods to pay a fine of $100,000.
In addition to the company’s guilty plea, Roos, and its principals, Ana A. Roos and Virginia Mejia, agreed to a consent decree of permanent injunction. The consent decree of permanent injunction was entered by U.S. District Court Judge Richard G. Andrews on Jan. 26.
Roos Foods distributed several varieties of ready-to-eat cheese, including ricotta, queso fresco and fresh cheese curd and sold and distributed its products to wholesale customers in Maryland, New Jersey, Virginia and Washington D.C., according to the criminal information filed on Jan. 22. A civil complaint along with the proposed consent decree was also filed on that same date. The criminal charge and civil complaint allege that Roos distributed cheese connected to a 2014 outbreak of Listeria monocytogenes (L. mono).
“The Department of Justice will use all of the tools available to us – criminal and civil – to ensure that the food we buy is free from dangerous bacteria and is safe to eat,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to work aggressively with the Food and Drug Administration (FDA) to combat and deter conduct leading to the distribution of adulterated food to consumers.”
“The criminal and civil cases demonstrate the need for the government to protect consumers from adulterated food,” said U.S. Attorney Charles M. Oberly III for the District of Delaware. “Manufacturers of our nation’s food supplies, such as Roos, must comply with the law and when violators are found they should expect to be prosecuted and, if necessary, put out of business.”
The criminal information alleged that on Feb. 21, 2014, the Centers for Disease Control and Prevention (CDC) reported that a total of eight people (five adults and three newborns) in Maryland and California were infected with L. mono. According to the CDC, several of the Maryland patients reported having eaten soft or semi-soft cheeses in the month before becoming ill.
L. mono is the bacterium that causes the disease listeriosis. Listeriosis is most commonly contracted by eating food contaminated with L. mono. Listeriosis can be serious, even fatal, for high-risk groups such as unborn babies, newborns and those with impaired immune systems.
Unlike many other foodborne microbes, L. mono bacteria are capable of adapting and growing even at refrigerator temperatures. Thus, the presence of L. mono in ready-to-eat foods is a particularly significant public health risk.
As alleged in the information, following a report that L. mono had been isolated from cheese manufactured by Roos Foods, the FDA inspected the firm’s Kenton, Delaware facility and established that ready-to-eat cheese products were adulterated in that they had been prepared, packed or held under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health. As alleged, FDA found numerous failures to implement effective monitoring and sanitation controls in accordance with current Good Manufacturing Practices.
The information alleged that the FDA inspection revealed significant sanitation deficiencies, such as widespread roof leaks in the manufacturing area, including over open manufacturing equipment; rust flakes on the manufacturing equipment from corroded roof trusses and metal roofing; un-cleanable surfaces on walls, floors and ceilings and product residue on equipment that had purportedly been cleaned. In addition, as alleged in the information, FDA collected environmental samples and found L. mono on 12 surfaces in the facility.
On March 11, 2014, the FDA suspended the food facility registration of Roos Foods after determining there was a reasonable probability that food manufactured, processed, packed, or held by Roos Foods would cause serious adverse health consequences or death to humans. A company without a food facility registration cannot distribute any food products. Roos Foods has not reopened.
“Consumers rely on the FDA to help ensure that their food is safe and wholesome,” said Deputy Commissioner Howard Sklamberg of FDA’s Global Regulatory Operations and Policy. “When companies put themselves above the law and produce food that puts the public's health at risk, we will see that they are brought to justice.”
The civil complaint alleged that Roos Foods and the two individual defendants violated the FDCA by, among other things, introducing or delivering for introduction into interstate commerce articles of food that were adulterated in that the food was prepared, packed or held under insanitary conditions whereby it may have become contaminated with filth or rendered injurious to health.
As part of the consent decree, defendants represented to the court that, at the time of entry of the consent decree, they were not engaged in receiving, preparing, processing, packing, holding, or distributing any type of food at or from any location. The permanent injunction requires the defendants to notify the FDA if they intend to resume such operations. In addition, the defendants must take a series of safety related steps under the permanent injunction before they can resume such operations.
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Oberly commended the investigative efforts of the FDA’s Office of Criminal Investigation. The criminal case is being prosecuted by Trial Attorney Heide L. Herrmann of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorneys Jennifer Welsh and Edmond Falgowski of the District of Delaware. They were assisted by Associate Chief Counsel Laura Pawloski of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
The government is represented in the civil case by Trial Attorney Megan Englehart of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Patricia Hannigan of the District of Delaware, with the assistance of Associate Chief Counsel Shannon M. Singleton of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Delaware, visit its website at https://www.justice.gov/usao-de.
Delaware Cheese Company Pleads Guilty to Food Adulteration ChargeRead the Press Release
WILMINGTON, Del. - Roos Foods Inc., a Delaware company, pleaded guilty to a misdemeanor violation of the Federal Food, Drug and Cosmetic Act (FDCA), in the U.S. District Court for the District of Delaware, U.S. Attorney Charles M. Oberly, III announced today. U.S. Magistrate Judge Sherry R. Fallon accepted the company's guilty plea and sentenced Roos Foods to pay a fine of $100,000.
In addition to the company's guilty plea, Roos, and its principals, Ana A. Roos and Virginia Mejia agreed to a consent decree of permanent injunction. The consent decree of permanent injunction was entered by U.S. District Court Judge Richard G. Andrews on Jan. 26.
Roos Foods distributed several varieties of ready-to-eat cheese, including ricotta, queso fresco and fresh cheese curd and sold and distributed its products to wholesale customers in Maryland, New Jersey, Virginia and Washington D.C., according to the criminal information filed on Jan. 22. A civil complaint along with the proposed consent decree was also filed on that same date. The criminal charge and civil complaint allege that Roos distributed cheese connected to a 2014 outbreak of Listeria monocytogenes (L. mono).
"The Department of Justice will use all of the tools available to us - criminal and civil - to ensure that the food we buy is free from dangerous bacteria and is safe to eat," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division. "We will continue to work aggressively with the Food and Drug Administration (FDA) to combat and deter conduct leading to the distribution of adulterated food to consumers."
"The criminal and civil cases demonstrate the need for the government to protect consumers from adulterated food," said U.S. Attorney Charles M. Oberly III for the District of Delaware. "Manufacturers of our nation's food supplies, such as Roos, must comply with the law and when violators are found they should expect to be prosecuted and, if necessary, put out of business."
The criminal information alleged that on Feb. 21, 2014, the Centers for Disease Control and Prevention (CDC) reported that a total of eight people (five adults and three newborns) in Maryland and California were infected with L. mono. According to the CDC, several of the Maryland patients reported having eaten soft or semi-soft cheeses in the month before becoming ill.
L. mono is the bacterium that causes the disease listeriosis. Listeriosis is most commonly contracted by eating food contaminated with L. mono. Listeriosis can be serious, even fatal, for high-risk groups such as unborn babies, newborns and those with impaired immune systems.
Unlike many other foodborne microbes, L. mono bacteria are capable of adapting and growing even at refrigerator temperatures. Thus, the presence of L. mono in ready-to-eat foods is a particularly significant public health risk.
As alleged in the information, following a report that L. mono had been isolated from cheese manufactured by Roos Foods, the FDA inspected the firm's Kenton, Delaware facility and established that ready-to-eat cheese products were adulterated in that they had been prepared, packed or held under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health. As alleged, FDA found numerous failures to implement effective monitoring and sanitation controls in accordance with current Good Manufacturing Practices.
The information alleged that the FDA inspection revealed significant sanitation deficiencies, such as widespread roof leaks in the manufacturing area, including over open manufacturing equipment; rust flakes on the manufacturing equipment from corroded roof trusses and metal roofing; un-cleanable surfaces on walls, floors and ceilings and product residue on equipment that had purportedly been cleaned. In addition, as alleged in the information, FDA collected environmental samples and found L. mono on 12 surfaces in the facility.
On March 11, 2014, the FDA >http://www.fda.gov/Food/RecallsOutbreaksEmergencies/Outbreaks/ucm386726.htm< suspended the food facility registration of Roos Foods after determining there was a reasonable probability that food manufactured, processed, packed, or held by Roos Foods would cause serious adverse health consequences or death to humans. A company without a food facility registration cannot distribute any food products. Roos Foods has not reopened.
"Consumers rely on the FDA to help ensure that their food is safe and wholesome," said Deputy Commissioner Howard Sklamberg, FDA's Global Regulatory Operations and Policy. "When companies put themselves above the law and produce food that puts the public's health at risk, we will see that they are brought to justice."
The civil complaint alleged that Roos Foods and the two individual defendants violated the FDCA by, among other things, introducing or delivering for introduction into interstate commerce articles of food that were adulterated in that the food was prepared, packed or held under insanitary conditions whereby it may have become contaminated with filth or rendered injurious to health.
As part of the consent decree, defendants represented to the court that, at the time of entry of the consent decree, they were not engaged in receiving, preparing, processing, packing, holding, or distributing any type of food at or from any location. The permanent injunction requires the defendants to notify the FDA if they intend to resume such operations. In addition, the defendants must take a series of safety related steps under the permanent injunction before they can resume such operations.
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Oberly commended the investigative efforts of the FDA's Office of Criminal Investigation. The criminal case is being prosecuted by Trial Attorney Heide L. Herrmann of the Justice Department's Consumer Protection Branch and Assistant U.S. Attorneys Jennifer Welsh and Edmond Falgowski of the District of Delaware. They were assisted by Associate Chief Counsel Laura Pawloski of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
The government is represented in the civil case by Trial Attorney Megan Englehart of the Justice Department's Consumer Protection Branch and Assistant U.S. Attorney Patricia Hannigan of the District of Delaware, with the assistance of Associate Chief Counsel Shannon M. Singleton of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney's Office for the District of Delaware, visit its website at https://www.justice.gov/usao-de.
Convicted Felon Involved in a 2015 Shoot-Out Admits to Illegal Possession of a GunRead the Press Release
Greenbelt, Maryland – Anthony Tyrone Smith, Jr., age 31, of Capitol Heights, Maryland, pleaded guilty on March 2, 2016 to being a felon in possession of a firearm, in connection with a shoot-out at a Capitol Heights carryout.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Interim Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on January 20, 2015, Smith was inside a carryout restaurant located in the 4800 block of Marlboro Pike in Capitol Heights. As Smith was leaving (but was still in the vestibule area), two masked men armed with guns approached the carryout entrance. Smith retreated from the vestibule area back into the carryout. Security footage shows Smith holding a black handgun. Smith and the two masked men exchanged gunfire through the doorway between the vestibule area and the waiting area inside the carryout. Smith was shot in the right hand. The masked men fled and Smith ran away to a barbershop across the street from the carryout. Responding Prince George’s County Police officers followed a blood trail from the carryout to the barbershop. The officers recovered a loaded .38 caliber semi-automatic pistol from under a sink in the bathroom. The gun had smears of blood on it. Smith admitted that he possessed the gun while he was in the carryout. Investigation revealed that the gun had been reported stolen in Susquehanna Township, Pennsylvania in 2014. Smith has two previous felony drug convictions and was prohibited from possessing a firearm or ammunition.
Smith faces a maximum penalty of 10 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for June 20, 2016, at 1:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew L. Paeffgen and Assistant U.S. Attorney Ray D. McKenzie, who are prosecuting the case.
Cleveland man charged with threatening the PresidentRead the Press Release
A Cleveland man was charged in federal court with making threats against the President, said Acting U.S. Attorney Carole S. Rendon.
Jonathan W. Smead, 35, was arrested on a criminal complaint. He is detained and is scheduled to appear before U.S. Magistrate Judge Nancy A. Vecchiarelli on March 9.
According to the complaint:
On Feb. 28 at approximately 10:16 CST, the U.S. Secret Service, Chicago Field Office received a call, which was forwarded to the Secret Service’s Cleveland Office. The caller stated “I want to kill President Obama.” The caller continued to speak about past assassins including John Wilkes Booth and Lee Harvey Oswald. The caller then stated he “wants to kill Hillary Clinton.” The caller then identified himself as Jonathan Smead and provided is Social Security number, date of birth, and said he is living with his grandmother on Spring Road in Cleveland. Finally, Smead stated he “wants federal charges, not little state charges.”
Smead was interviewed on Feb. 29. He admitted to making the phone call and said he had been drinking alcohol prior to making the call. He said he does not wish harm on the President or Clinton. He stated he had recently been watching the television show “The West Wing” and he is very interested in past presidents, specifically Abraham Lincoln and John F. Kennedy. He stated he visited the Texas Book Depository years ago as a tourist. During a consensual search, agents located two books in Smead’s bedroom related to the Kennedy assassination.
This case is being investigated by the U.S. Secret Service, with assistance from the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Kevin Filiatraut.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clarkson Construction Employee Sentenced for $442,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former director of information technology for Clarkson Construction Company was sentenced in federal court today for a $442,000 fraud scheme in which he used the firm’s credit card to purchase equipment that he re-sold for personal profit.
Rodney J. Tatum, 44, of Branson, Mo., formerly of Kansas City, Mo., was sentenced by U.S. District Judge Fernando J. Gaitan to one year and three months in prison. The court also ordered Tatum, who paid $62,412 in restitution at today’s sentencing hearing, to pay a total of $442,810 in restitution.
Tatum was employed by Clarkson Construction Company, one of the Midwest’s largest construction companies, from 1991 until a federal criminal complaint was filed on Aug. 12, 2014. He was Clarkson’s director of information technology since 2003. In this role, he oversaw all of Clarkson’s IT activities at all of Clarkson’s business entities.
On Oct. 27, 2014, Tatum pleaded guilty to mail fraud. Tatum admitted that he ordered hundreds of thousands of dollars of expensive computer and communication equipment (including hundreds of solid state hard drives, other computer equipment, and 23 iPhones) between October 2013 and September 2014. Tatum used the company’s credit card to order equipment that the company did not need and never saw. He then resold this equipment for personal profit without the company’s authorization.
Tatum hid his fraud by bulk purchasing merchandise that could be used for his department and by faking invoice reports so the company would not suspect him. Tatum spent the proceeds of his fraud scheme on such luxury items as customized motorcycles, a boat, jet skis and a large motor home. According to court documents, Tatum earned an annual salary of $120,000 while employed by Clarkson Construction. Despite his income, he used embezzled money on personal expenses and vehicles, and yet still incurred significant debt.
Once the fraud was found, the company was forced to internally audit their entire inventory to establish the amount lost. Altogether, the offense conduct resulted in a $436,243 loss for Clarkson Construction Company.
In addition, Tatum used the money to obtain custom work on a motorcycle at Stedman Motorsports in Alabama, and then falsely reported it as fraudulent activity. He made four payments to them on the custom work provided, and then took back all payments with a fabricated story. This resulted in a $6,567 loss for Stedman Motorsports.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the FBI.
Chicago-Area Resident Indicted in Stolen Identity Refund Fraud Scheme Involving Victims from the U.S. Air ForceRead the Press Release
A federal grand jury sitting in Chicago, Illinois returned an indictment on Feb. 11 against a resident of a Chicago suburb, charging him with 10 counts of wire fraud, 10 counts of aggravated identity theft and one count of access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois. The defendant had his initial court appearance earlier today.
Jonathan Herring aka Byron Taylor, Marco Brown and Quang Dang of Harvey, Illinois, participated in a stolen identity refund fraud scheme, according to allegations in the indictment. Herring obtained the means of identification of actual individuals, including their names and social security numbers and used this information to prepare false tax returns. Herring is alleged to have obtained stolen identities of members of the U.S. Air Force, among others. Herring used the stolen identities to electronically file false income tax returns seeking tax refunds with the Internal Revenue Service (IRS). Herring is alleged to have received the fraudulently obtained tax refunds in the form of direct deposits into various bank accounts that he controlled.
If convicted, Herring faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, 10 years in prison for one count of access device fraud and a mandatory sentence of two years in prison for aggravated identity theft, which will run consecutive to any other prison term he receives. Herring also faces substantial monetary penalties, supervised release, and restitution.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo commended special agents of IRS Criminal Investigation, who investigated the case and Trial Attorneys Michael C. Boteler and Timothy M. Russo of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Chambersburg Woman Sentenced to 36 Months in Prison for Extortionate Attempt to Shut Down A Rival Tax Preparation BusinessRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Maria Colvard, age 50, of Chambersburg, was sentenced today to 36 months in prison by United States District Court Chief Judge Christopher C. Conner in Harrisburg, for extortion in connection with an attempt to shut down a rival tax preparation business.
Colvard was convicted in June 2015 after a four-day jury trial on two counts of extortion and one count of aiding the impersonation of an employee of the United States.
According to U.S. Attorney Peter Smith, between February and May 2013, Colvard convinced an employee at Tax Max LLC, a tax preparation service owned by Colvard in Chambersburg and Hanover, Pennsylvania, to claim to be a criminal investigator with the Internal Revenue Service to shut down the rival business, known as Christina’s Tax Service, also located in Chambersburg. The employee, Merarys Paulino, then claimed to be an IRS agent and demanded money from Christina’s Tax Service as well as its client list. Paulino previously entered a guilty plea to impersonating an IRS agent.
Colvard also faces deportation as a non-citizen.
This case was investigated by the United States Treasury Inspector General for Tax Administration (TIGTA) and was prosecuted by Assistant United States Attorney Daryl F. Bloom.
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Centralia Man Sentenced to Fourteen Years in Federal Prison for Possession of Firearms by FelonRead the Press Release
A Centralia man, who pled guilty to two counts of possession of a firearm by a felon, was sentenced to 168 months in federal prison on March 2, 2016, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Darryll W. Kaufman, 25, of Centralia, Illinois, received a 168-month sentence, actually calculated as two 84-month sentences which were ordered to be served consecutively, one to the other, for possession of firearms by a felon. Following release from imprisonment, Kaufman will serve a 3-year term of supervised release. Kaufman was also fined $600 and was ordered to pay a $200 special assessment. Kaufman pleaded guilty to the charges on July 21, 2015.
"This is a deservedly lengthy sentence for a young man. All of the law abiding citizens of Southern Illinois should be thankful to the federal court for removing such a dangerous individual from our society." said Acting United States Attorney Porter.
The charges arose from incidents in Patoka and Greenville, Illinois, where Kaufman possessed fifteen firearms that he had stolen in residential burglaries in those communities. Noting that Kaufman had a lengthy criminal history after being trained as a criminal by his mother, the sentencing judge called Kaufman a "violent, dangerous man who is likely to recidivate. I question whether there is a place for you in civilized society. I see nothing but a dim future for you." The judge also set these sentences to run consecutive to a 10-year sentence that Kaufman is serving in the Illinois Department of Corrections for a separate burglary that Kaufman committed in Cumberland County in 2013.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and members of the Marion County Sheriff’s Departments. The case was prosecuted by Assistant United States Attorney Stephen B. Clark.
Carmi Man Pleads Guilty to Four Counts of Distributing Methamphetamine in White CountyRead the Press Release
Bobby D. Morrill, Jr., 38, of Carmi, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with four counts of distributing methamphetamine, 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 four offenses occurred in 2015 on August 31st, and September 8th, 9th, and 16th. The indictment further alleged that the offenses occurred in White County.
Sentencing was set for June 22, 2016, at 10:00 a.m. at the United States Courthouse in Benton. On each count Morrill faces up to 20 years’ imprisonment, a $1 million fine, and 3 years to life on supervised release following his incarceration.
Morrill has been held without bond in the custody of the United States Marshal since his appearance on the federal charges in January. He was returned to the custody of the Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Canadian Truck Driver Arrested for Attemping to Smuggle Two Polish Citizens into the U.S.Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Leszek Budzyna, 50, a citizen of Canada, was arrested and charged by criminal complaint with attempted alien smuggling and making false statements. In addition, Monika Gondek, 47, and Jerzy Mariusz Madej, 54, both of Poland, were also arrested and charged by criminal complaint with eluding examination and inspection by immigration officials. Budzyna faces a maximum sentence of five years in prison and a fine of $250,000. Gondek and Madej face a maximum sentence of six months in prison and a fine of $5,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on March 1, 2016, Budzyna was driving a commercial truck and attempted to enter the United States at the Peace Bridge Port of Entry. Budzyna indicated to a Customs and Border Protection officer that he was traveling to the U.S. to pick up a trailer and that he was traveling alone. Budzyna was referred for a secondary inspection.
During the secondary inspection, the truck was x-rayed and something was detected in the cab of the truck. Officers entered the truck and discovered Gondek and Madej hidden in the sleeper area of the cab of the truck.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and are being detained.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
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.
Brooklyn Man Sentenced in Manhattan Federal Court in Connection with Advance Fee SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that OCTAVIO LOMBARDO, a/k/a “Otto Lombardo,” was sentenced today in Manhattan federal court to two years in prison for wire fraud stemming from his scheme to defraud small business owners of more than $1 million through an advance fee scheme. LOMBARDO lied to small business owners by claiming to have the ability and expertise to structure investment loans for their businesses through LOMBARDO’s exclusive relationships with small community banks across the United States, when in fact he did not have the ability to obtain such financing. In connection with the scheme, LOMBARDO induced over 30 business owners to pay an upfront fee that was purportedly to pay for expenses incurred during the due diligence process prior to the loan’s closing. Instead, LOMBARDO used the vast majority of the money he received from the business owners – over $1 million in total – on his own personal expenses, including rental payments, club dues, food, and other personal items. LOMBARDO pled guilty on September 21, 2015, before United States District Judge Jesse M. Furman, who also imposed today’s sentence.
U.S. Attorney Preet Bharara said: “Octavio Lombardo lied to dozens of small business owners who looked to him for help in obtaining financing. Lombardo purported to have expertise and relationships with community banks that would facilitate investment loans at favorable terms. But in fact, he had no such expertise or relationships, just the gumption to steal his clients’ money. Today he has been held to account for his crime.”
According to the Complaint, the Indictment, and other statements made in open court:
From at least in or about 2007 through in or about 2013, LOMBARDO engaged in a fraudulent scheme to mislead small business owners into paying an upfront due diligence fee, typically in the amount of $25,000, in connection with loans that LOMBARDO promised to obtain for the small business owners. During this period, LOMBARDO held himself out to the business owners as having the ability and expertise to structure investment loans for their businesses through LOMBARDO’s purported exclusive relationships with small community banks across the United States. In truth and in fact, LOMBARDO had no ability to provide such financing, and none of the businesses at issue received a loan through LOMBARDO during this period of time.
In connection with the scheme, LOMBARDO made a series of false and misleading misrepresentations to the business owners, including: (i) that LOMBARDO could obtain interest-only loans in amounts ranging from $1 million to $75 million by consolidating the lending power of several small community banks into a trust, which he would manage through his holding company, Lombardo & Company; (ii) that, in order to structure the loan appropriately, LOMBARDO needed to conduct due diligence of the businesses, including by obtaining corporate and financial documentation, and by conducting site visits; (iii) that LOMBARDO required a non-refundable upfront payment – generally in the amount of $25,000 – to cover the expenses incurred during the due diligence process, including legal and other professional fees, taxes, appraisals, and the like; and (iv) that this fee would be incorporated into the final loan agreement, so that the business owners would ultimately “get back” the upfront payment once the financing was in place.
As a result of these misrepresentations, LOMBARDO obtained over $1 million in so-called due diligence payments from more than three dozen business owners. LOMBARDO spent the vast majority of the due diligence payments on his own personal expenses, including, among other things, rental payments, club dues, food, and other personal items. For example, LOMBARDO spent more than $300,000 on rental payments for his residence in Brooklyn, more than $100,000 on membership dues for a private gun club located in Manhattan, and more than $50,000 on restaurants and purchases of wine and liquor.
Once he received the due diligence payments, LOMBARDO made a variety of excuses to the business owners – including, among others, that he was having health problems and had been hospitalized, that he was traveling, and that he had a new grandchild – in order to explain the delay in closing the loans.
Ultimately, LOMBARDO did not provide any of the loans to the business owners as promised.
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In addition to his prison sentence, LOMBARDO, 68, of Brooklyn, New York, was sentenced to three years of supervised release. The Court further ordered LOMBARDO to pay $1,038,500 in restitution.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Amy Lester and Damian Williams are in charge of the prosecution.
British Virgin Islands Man Pleads Guilty to Alien SmugglingRead the Press Release
St. Thomas, USVI- Ashemba Frett, 22, of Tortola, British Virgin Islands, pleaded guilty today in District Court to encouraging and inducing aliens to illegally enter the United States, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement, the United States Coast Guard (USCG) conducted a safety stop on a vessel in Jersey Bay, St. Thomas, U.S. Virgin Islands. The vessel was operated by an unidentified individual. The USCG saw Frett jump into the water and retrieved him. A Hatian national and a national from the Dominican Republic were aboard the vessel . Frett admitted that the Dominican Republic national paid him $700 to travel to St. Thomas from Tortola and that Frett knew that he did not possess proper documents to lawfully enter the United States.
Frett faces a maximum sentence of 10 years’ imprisonment and a $250,000 fine. A sentencing date has been set for July 7, 2016. District Judge Curtis V. Gomez continued Frett on pre-trial release pending sentencing.
The case wa s investigated by the USSG, U.S. Customs and Border Protection (CBP) , Office of Air and Marine (AMO), U.S. Immigration and Customs Enforcement ’s ( ICE) Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Bozeman Man Sentenced for Illegal Possession of an Unregistered Machine GunRead the Press Release
BILLINGS – William Kristofer Wolf, 53, of Bozeman, Montana, was sentenced today in Billings federal court for the illegal possession of an unregistered machine gun. U.S. District Court Judge Susan Watters sentenced Wolf to 72 months incarceration and 3 years supervised release.
Wolf was indicted by a grand jury in April of last year on two counts: Illegal Possession of a Machine Gun and Possession of a Firearm not Registered in the National Firearms Registration and Transfer Record. At trial, the government introduced evidence that Wolf publicly and repeatedly expressed intent to acquire and possess dangerous weapons, including flamethrowers, incendiary ammunition, and napalm, and ultimately did acquire the sawed-off automatic shotgun that lead to his arrest. Minutes after taking possession of the illegal firearm Wolf stated that he did not “believe in anything but extreme.” He was convicted in November of last year following a three day jury trial.
In his weekly online radio show, named “The Montana Republic,” Wolf discussed his anti-government views and his plans to overthrow local, state, and federal governments by force. He advocated the affirmative targeting of law enforcement officers, politicians, and judges and stated on numerous occasions that he considered agents of local, state, and federal government to be his “targets .” After holding a “committee of safety meeting” on January 29, 2015, Wolf stated, “my preferred method would be to drop 500 pounds of napalm through the roof of the courthouse and burn it to the ground and roast some marshmallows on it.” Wolf tried to recruit those at the meeting to his cause telling them, “that’s why I say you don’t want me doing this because I don’t believe in doing anything that’s not extreme and right now wiping that place out, would be my extreme movement.”
In its sentencing arguments, the government emphasized the extreme nature of Wolf’s views, and his repeatedly articulated intent to target law enforcement officials and in effect to wage a war on all branches of government. Wolf made repeated statements about his intent to target government and law enforcement personnel: “I just need to kill the public officials,” and “all agents of the government, all judiciary, and all police officers are targets.” Wolf believed that law enforcement officials at every level of government had committed “constitutional violations” and that he was therefore justified in using any means necessary to “restore our constitutional republic.” Wolf did not retreat from these views in his trial testimony or attempt to deny his ultimate intent to harm government and law enforcement officials.
Emphasizing the extreme nature of Wolf’s views, coupled with the concrete steps he took to put his violent plans into action, the government argued that the criminal sentencing guidelines did not adequately reflect the gravity of his crime and the danger he poses to society. Taking these factors into account, the government urged the court to impose a sentence greater than that indicated by the guidelines. The government argued that Wolf’s actions in obtaining the machine gun were merely a step towards committing other offenses, including assault on law enforcement officers and arson. .
The government also argued that Wolf’s lack of prior criminal history was not indicative of his risk to society, given the extreme nature of his views and his articulated intent to commit mass acts of violence. As evidence of this intent, the government cited at least 24 instances in which Wolf stated his intent to kill someone or engage in acts that would bring about deaths or serious injuries.
“The sentence in this case sends a strong message to those, like Mr. Wolf, who seek to wage a violent war not only against the government but against society as a whole,” said Montana U.S. Attorney Mike Cotter. “It should serve as a deterrent to others who would follow his lead and choose to espouse anarchy and violence. The FBI is to be commended for its thorough work of investigating Mr. Wolf and ultimately helping to bring him to justice.”
The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Danya Atiyeh, Trial Attorney, from the Counterterrorism Section, National Security Division, of the United States Department of Justice. The case was investigated by the FBI.
Batesland Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that a Batesland, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on February 29, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
William Morrisette, age 26, was sentenced to 14 months in custody, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Morrisette was indicted for the charge on October 20, 2015, and pled guilty on November 13, 2015.
The conviction stems from Morrisette being in possession of a Ruger 9mm handgun on August 23, 2015, near Pine Ridge, after having been previously convicted of a felony assault on a federal officer.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Morrisette was immediately turned over to the custody of the U.S. Marshals Service.
Baltimore Man Sentenced for East Texas Child Exploitation ViolationsRead the Press Release
BEAUMONT, Texas — A 36-year-old Baltimore, MD man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Ian Christian Anderson pleaded guilty on Sep. 10, 2015 to enticement of a minor and was sentenced to 135 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, in January 2015, Anderson began an on-line relationship with a 14-year-old girl in the Eastern District of Texas. After several weeks of communicating with the victim, Anderson traveled from his home near Baltimore, Md., to the victim's hometown in Texas, on two separate occasions in February and March 2015. On both trips Anderson engaged in sexual relations with the 14-year-old that constituted felony sexual assault under the laws of the State of Texas. Anderson also used his cellular telephone to send sexually explicit text messages to the victim in which he attempted to persuade her to engage in future similar sexual relations. Anderson was indicted by a federal grand jury on May 7, 2015.
This case was prosecuted 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
This case was investigated by the Federal Bureau of Investigation, the Lumberton Police Department and the Hardin County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Anthony Bitterling Ordered to Pay $1,062,181 in RestitutionRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Anthony Bitterling, 42, of Winamac, Indiana, was sentenced before District Court Judge Joseph S. Van Bokkelen for conspiracy to commit healthcare fraud.
Bitterling was sentenced to 24 months’ imprisonment, 400 hours of community service, 2 years of supervised release and ordered to pay $1,062,181 in restitution.
According to documents filed in the case, Bitterling along with co-defendants’ Kahley Vergon-Mayotte, 29, of Reynolds and Roy Dunn, 62, of Monticello, Indiana ran an ambulance company that fraudulently billed Medicare for transportation of Medicare recipients to dialysis appointments. The defendants’ fraud resulted Medicare paying out over one million dollars for medically unnecessary ambulance transportation.
Dunn was sentenced on January 8, 2016 to 30 months’ imprisonment, 2 years supervised release and ordered to pay $1,062, 181 in restitution.
Vergon-Mayotte is scheduled to be sentenced on March 17, 2016.
This case was the result of an investigation by the Federal Bureau of Investigation, Indiana State Attorney General Medicaid Fraud Control Unit and the United States Department of Health and Human Services, Office of Inspector General. This case was handled by Assistant United States Attorney Diane L. Berkowitz.
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