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Friday 8 January 2016
Attorney General Loretta E. Lynch Statement on Capture of Joaquin ‘Chapo’ Guzman LoeraRead the Press Release
Today, Attorney General Loretta E. Lynch released the following statement on the capture of Joaquin ‘Chapo’ Guzman Loera:
“Today’s capture of Joaquin ‘Chapo’ Guzman Loera by Mexican authorities is a blow to the international drug-trafficking syndicate he is alleged to have led, a victory for the citizens of both Mexico and the United States, and a vindication of the rule of law in our countries. Guzman’s latest attempt to escape has failed, and he will now have to answer for his alleged crimes, which have resulted in significant violence, suffering and corruption on multiple continents. I commend the Government of Mexico for this arrest, and I salute the Mexican law enforcement and military personnel who have worked tirelessly in recent months to bring Guzman to justice. The U.S. Department of Justice is proud to maintain a close and effective relationship with our Mexican counterparts, and we look forward to continuing our work together to ensure the safety and security of all our people.”
2nd Former Postal Employee Sentenced in Mail Theft ConspiracyRead the Press Release
PROVIDENCE, R.I. – Joan Manuel Mustafa, 28, of Providence, was sentenced today to 24 months in federal prison for his role in a conspiracy to steal U.S. Treasury checks from the U.S. mail, and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The bank funds were then withdrawn or used to make retail purchases with the use of debit cards.
At sentencing, Mustafa was also ordered to serve 2 years supervised release upon completion of his prison term, and to perform 100 hours of community service. Mustafa pleaded guilty on October 21, 2015, to one count each of conspiracy, theft of mail and theft of public money or property.
Mustafa’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Eileen Neff, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office.
A co-defendant in this matter, Erick Vera-Garzon, 36, of Providence, was sentenced last month to 36 months in federal prison. Vera-Garzon pleaded guilty on September 23, 2015, to conspiracy, theft of mail and theft of public money or property.
An investigation by the Providence Police Department Intelligence and Organized Crime Unit and the United States Postal Service (USPS) Office of Inspector General (OIG) resulted in the seizure of approximately $1.6 million dollars worth of stolen U.S. Treasury checks, several dozen stolen gift cards, and more than $165,000 in cash gained as a result of the sale of stolen checks and gift cards.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the disappearance of U.S. Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The missing checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center. At the same time, independent of the USPS-OIG investigation, a Providence Police Department detective developed information that Vera-Garzon was selling stolen U.S. Treasury checks at 20% of face value to buyers on the streets of Rhode Island and New York. The investigation determined that many of the stolen checks were deposited in bank accounts that had been opened in Rhode Island, Massachusetts and New York in the names of some of the individuals whose checks had gone missing. The funds were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, and the purchase of money orders.
Based on the information developed by the Providence Police Department Intelligence and Organized Crime Unit, court authorized search warrants were obtained and executed at Mustafa and Vera-Garzon’s residences on April 16, 2015. Law enforcement seized more than 900 stolen U.S. Treasury checks valued at approximately $1.6 million dollars, several dozen gift cards and more than $53,000 in cash. Vera-Garzon and Mustafa were arrested on April 16, 2015.
The cases were prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Richard W. Rose.
Agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Thursday 7 January 2016
‘Dirty Block’ Gang Leader Sentenced to Life in Prison for Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – The leader of a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, New Jersey, was sentenced today to life in prison for drug conspiracy and weapons charges, U.S. Attorney Paul J. Fishman announced.
Mykal Derry, a/k/a “Koose,” 35, of Atlantic City, was previously convicted of conspiracy to distribute one kilogram or more of heroin, distributing heroin, maintaining a place for the purposes of storing and distributing heroin, possessing, brandishing and discharging firearms in furtherance of the drug conspiracy and using a communications device in furtherance of a drug trafficking crime. Mykal Derry was convicted following a six-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Mykal Derry was the leader of the gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City and controlled the lucrative drug trafficking area of the Stanley Holmes public housing complex, Brown’s Park and the surrounding area.
The evidence showed that Derry and other members of the group routinely carried loaded handguns and engaged in at least eight drug related shootings between October 2010 and February 2013, including the shooting of a teenager on April 17, 2011, which left the teenager paralyzed. The trial testimony of a cooperating witness established that Derry had his cousin shoot the teenager because he was cooperating with police in an earlier case involving Derry and other drug associates’ assault of the teenager in October 2010.
Additional testimony established that Mykal Derry and his brother, Malik Derry, a/k/a “Lik,” 24, also of Atlantic City, planned and carried out the shooting murder of a rival drug dealer in Atlantic City on the evening of Feb. 10, 2013. Mykal Derry told members of his gang that he wanted them to “put him down” (referring to an order to shoot the rival dealer) when they saw him. Malik Derry shot the victim in the head from close range while riding a bicycle past him as the victim stood in front of an Atlantic City restaurant.
The murder weapon, a stolen .380 caliber semi-automatic handgun, was later recovered from the drop ceiling in an apartment located on Green Street in Atlantic City, which, at the time, was shared by Mykal Derry and his girlfriend, Kimberly Spellman, 34, of Egg Harbor Township, New Jersey. Atlantic City police detectives also found 18 “bricks” of heroin (approximately 900 individual packets of heroin) and drug packaging materials inside the apartment.
The evidence presented by the government at trial consisted of recordings of hundreds of telephone calls and text messages between Mykal Derry and over twenty other members of the drug gang, physical evidence including the recovery of twenty firearms, ballistics evidence from shooting scenes, crime scene evidence from eight different shooting scenes in Atlantic City, recovery of substantial quantities of heroin and drug packaging materials, approximately $40,000 in drug proceeds, the testimony of dozens of FBI agents and Atlantic City police detectives, the testimony of ballistics experts, a narcotics expert, and the testimony of two cooperating witnesses who had previously pleaded guilty to federal drug trafficking offenses.
Malik Derry still awaits sentencing after being convicted at trial of conspiracy to distribute one kilogram or more of heroin, possessing and discharging firearms in furtherance of the conspiracy and using a communications device in furtherance of a drug trafficking crime. Spellman previously pleaded guilty to a superseding information charging her with conspiracy to distribute heroin and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police, the Atlantic County Sheriff’s Office, the Northfield Police Department, the Vineland Police Department, the Brigantine Police Department, and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense Counsel: Emmett Madden Esq., Philadelphia
Zuni Pueblo Man Pleads Guilty to Federal Murder ChargeRead the Press Release
ALBUQUERQUE – Douglas Burt, 19, a member and resident of Zuni Pueblo, pled guilty today in federal court in Albuquerque, N.M., to a second degree murder charge. Under the terms of his plea agreement, Burt he will be sentenced within the range of 204 to 264 months in federal prison followed by a term of supervised release to be determined by the court.
Burt and his co-defendant Dusty Chavez, 23, also a member and resident of Zuni Pueblo, were arrested in Nov. 2014, on a criminal complaint charging them with murdering a man on Oct. 28, 2014, in the Zuni Indian Reservation in McKinley County, N.M. Burt and Chavez were subsequently indicted on a murder charge on Nov. 19, 2014.
During today’s change of plea hearing, Burt pled guilty to a felony information charging him with second degree murder. According to the plea agreement, Burt and Chavez instigated a fight with the victim during which Chavez threw the victim to the ground and started kicking and punching the victim. Burt also kicked the victim; Chavez hit the victim in the head with a rock, and Burt stabbed the victim in the chest. The autopsy report revealed that the victim died as a result of blunt force trauma to the head and stab wounds to the chest.
Chavez has entered a not guilty plea to the indictment. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Burt has been in federal custody since his arrest. He remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorneys Elaine Y. Ramirez and Kyle T. Nayback are prosecuting the case.
White Horse Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a White Horse, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 5, 2016, by U.S. District Judge Roberto A. Lange.
Sage Miner, age 32, was sentenced to 12 months and 1 day in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Miner was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on May 15, 2015. He pled guilty to Assault Resulting in Serious Bodily Injury on October 22, 2015.
The conviction arose from a March 21, 2015, incident at White Horse. Miner was at his cousin’s house, as was the victim. Miner began yelling at the victim and he and the victim began pushing each other. Miner threw the victim towards the door and the victim fell. Miner went over and started hitting the victim with his fists at least ten times. He also kicked the victim’s head or body with the steel-toed boots he was wearing at least three times. Miner continued yelling at the victim and had to be pulled off. Miner left the house, but ran back through the front door and starting hitting the victim again, at least ten times on this occasion. He was again pulled off the victim and his cousin told him to leave. Miner then began fighting with his cousin. Miner left the house a second time, and his cousin locked the door and returned to tend to the victim, who was sitting up on the kitchen floor. Miner ran in the back door, jumped on top of the victim, and hit him at least seven times on this occasion. Miner said if anyone tried to help the victim, he would come after them next. Miner’s cousin could not pull him off the victim, so he left to get help. When he returned to his home, the victim was unconscious on the floor and Miner was gone. The victim suffered multiple facial injuries and fractures, including a blowout fracture of the orbital eye socket. After he was released from the hospital, the victim continued to have problems, including ongoing balance problems, dizziness, and headaches.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Miner was immediately turned over to the custody of the U.S. Marshals Service.
West Suburban Doctor Sentenced to Two Years in Federal Prison for Falsely Approving Unnecessary TreatmentRead the Press Release
CHICAGO — A west suburban physician was sentenced today to two years in prison for fraudulently certifying patients as confined to the home, allowing healthcare agencies to bill Medicare for millions of dollars in unnecessary in-home treatment.
As an employee and part-owner of Bloomingdale-based Home Care Physicians Inc., DR. ARTHUR DAVIDA received referrals from home-health agencies asking him to certify the patients as confined to the home. Although he knew that at least 20 percent of the patients were not confined to the home, Davida nonetheless provided the certification – allowing the agencies to bill Medicare for treatment that Davida knew was not medically necessary. Davida acknowledged in a plea agreement that he provided the certifications because he feared that, if he didn’t, the home-health agencies would stop sending him the referrals.
In imposing the 24-month sentence, U.S. District Judge John J. Tharp Jr. described the crime as a “very serious offense,” and one that involved “stealing money” from the Medicare program.
Davida, 62, of Bloomingdale, pleaded guilty last year to a health care fraud charge contained in a criminal information. According to the plea agreement, Davida began working at Home Care Physicians in 2009, and started conducting in-home visits in 2010. From 2010 and continuing through August 2013, Davida certified numerous patients as confined to the home and in need of skilled nursing services, when, in fact, they were able to leave their homes and did not need such services. The certifications caused the home-health agencies to submit claims to Medicare for payment of bills pertaining to medically unnecessary services.
Home-health agencies were paid more than $20 million by Medicare based on orders signed by Davida. Given his admission that 20 percent of these patients were not confined to the home, Davida acknowledged in the plea agreement that he caused losses of at least $4 million to the Medicare program.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General. The government is represented by Assistant United States Attorney Stephen Chahn Lee.
The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the FBI and HHS, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Department of Justice and HHS to prevent fraud and enforce anti-fraud laws around the country.
To report health care fraud or to learn more about HEAT, logon to: StopMedicareFraud.gov.
Uzbek National Sentenced to 25 Years in Prison on Terrorism ChargesRead the Press Release
Fazliddin Kurbanov, 33, an Uzbek national, was sentenced today to 25 years in federal prison by Senior U.S. District Judge Edward J. Lodge of the District of Idaho for conspiring and attempting to provide material support to a designated foreign terrorist organization and possessing an unregistered destructive device.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wendy J. Olson of the District of Idaho and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division made the announcement.
Judge Lodge also sentenced Kurbanov to a term of supervised release of three years and imposed a fine of $250,000. Kurbanov, who was convicted in August 2015 after a 20-day trial, will also face deportation proceedings at the end of his prison sentence.
“Fazliddin Kurbanov was sentenced for conspiring and attempting to provide material support to the Islamic Movement of Uzbekistan and procuring bomb-making materials in the interest of executing a terrorist attack on American soil,” said Assistant Attorney General Carlin. “Thankfully, the threat posed by Kurbanov was disrupted by the tireless efforts of the law enforcement community and its partners. Defending our nation from the threat of terrorism, whether at home or abroad, remains the highest priority of the National Security Division, and we will continue to hold accountable those who seek to harm to our country and our citizens.”
“The lengthy term of imprisonment imposed by the Court ensures that this defendant, who by his words and acts was intent on taking American lives, does not and will not pose any further threat to the safety and security of our community,” said U.S. Attorney Olson. “The investigation, prosecution, and now sentence in this case demonstrate the cooperative law enforcement effort by federal, state and local agencies to protect our national security and prevent acts of terrorism. I commend the men and women at every level of law enforcement and prosecution, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“The worst of intentions on the part of Mr. Kurbanov, that is the mass killing of Americans, were thwarted by the best of collaboration on the part of the entire law enforcement community,” said Special Agent in Charge Barnhart.
According to evidence presented at trial:
Between the summer of 2012 and his arrest in May 2013, Kurbanov, who was living in Boise, Idaho, communicated by email and Skype with a person or persons operating a website for the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization. Kurbanov discussed with the website administrator his animosity toward Americans, particularly the military; his desire to build a bomb; possible targets in the United States, including military bases in Idaho and Texas; and his need for instruction on how to construct and remotely detonate a bomb. Additionally, Kurbanov searched for and later discussed with an FBI confidential human source targets including military bases in the United States, specifically West Point Military Academy in New York. The website administrator instructed the defendant to obtain a specific anti-virus software to protect the IMU’s website and to obtain and provide any amount of money. The defendant contacted his brother, who lived overseas, about obtaining the anti-virus software and he sent the software to Kurbanov. Shortly before his arrest, the defendant caused an Idaho corporation to open, through which he intended to funnel money to the IMU.
Between at least Nov. 15, 2012, and May 16, 2013, Kurbanov possessed bomb-making components at his Boise apartment, including a hollow hand grenade, a hobby fuse, ammunition containing smokeless powder, tannerite, aluminum powder, potassium nitrate, charcoal, yellow sulfur powder and fertilizer. He purchased these items during the summer and fall of 2012. FBI special agents observed the bomb-making components during a court-authorized search of Kurbanov’s apartment in November 2012 and seized many of the same items during a second court-authorized search in May 2013.
Kurbanov’s activities were closely monitored by federal agents during the investigation and no terrorist attack occurred.
During the sentencing hearing, an explosives expert provided evidence that the bomb-making components Kurbanov possessed were capable of causing significant harm. Prosecutors argued that these capabilities, coupled with Kurbanov’s many statements of hatred toward Americans and desire to kill them, warranted the lengthy sentence.
Kurbanov still faces a separate one-count indictment returned in May 2013 in federal court in Utah alleging that from about Jan. 14, 2013, continuing through Jan. 24, 2013, he taught and demonstrated how to make explosive devices, and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction. His alleged intent was that the teaching, demonstration and information be used for and in furtherance of an activity that would constitute a federal crime of violence. The Utah indictment was returned in May 2013, at the same time as the Idaho indictment.
The Idaho case was investigated by the FBI’s Joint Terrorism Task Force with assistance from the Boise Police Department, the Immigration and Customs Enforcement’s Homeland Security Investigations, the Ada County, Idaho, Sheriff’s Office and the Canyon County, Idaho, Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco of the District of Idaho and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Union County, New Jersey, Man Arrested, Charged with Aiming Laser Pointer at WABC-TV HelicopterRead the Press Release
NEWARK, N.J. - A Union County, New Jersey, man was arrested today and charged with aiming a laser pointer at a WABC-TV helicopter, U.S. Attorney Paul J. Fishman announced.
Stiven Lopez-Bender, 26, of Elizabeth, New Jersey, was charged by complaint with one count of aiming a laser pointer at an aircraft. Lopez-Bender is scheduled to make his initial appearance today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
On Nov. 11, 2015, a reporter working for WABC-TV, Channel 7, New York, an affiliate of ABC Inc., requested a helicopter operator, also working on behalf of WABC, to fly the helicopter to a location in Elizabeth to cover a story on a house fire. At approximately 5:20 pm, while facing south at an altitude of approximately 1,000 feet, a green laser was aimed at and struck the flight deck of the helicopter through the main windshield.
The reporter and the helicopter operator saw Lopez-Bender emerge from a sports utility vehicle, reach into the passenger side, and then point a green laser at the helicopter, causing a second laser strike to the helicopter.
The helicopter operator lowered the helicopter to approximately 500 feet. As Lopez-Bender walked towards an apartment building, Lopez-Bender turned and again pointed the green laser towards the helicopter before entering the apartment building.
The helicopter operator then circled the area at an altitude of approximately 800 feet.
Within approximately 10 minutes, the helicopter was again lasered from a window in the apartment building Lopez-Bender had just entered.
The count with which Lopez-Bender is charged carries a maximum punishment of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force, under the direction of FBI Special Agent in Charge Richard M. Frankel, and members of the Elizabeth Police Department, under the direction of Police Director James Cosgrove, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Two heroin dealers plead guilty to Federal drug chargesRead the Press Release
CHARLESTON, W.Va. – Two drug dealers pleaded guilty today in federal court to heroin charges, announced Acting United States Attorney Carol Casto.
Keon Terrell Ross, 24, of Detroit, pleaded guilty to possession of heroin with intent to distribute. Ross admitted that on October 20, 2015, he traveled from Detroit to Charleston with approximately a kilogram of heroin that he intended to distribute. Law enforcement found Ross with the heroin in his hotel room at the Best Western on Washington Street East in Charleston. Ross faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 7, 2016.
Antoine Joshua Broner, 37, of Charleston, pleaded guilty to distribution of heroin. Broner admitted that on August 4, 2015, he sold heroin to a confidential informant working with law enforcement. Following the drug deal, officers seized $615 from Broner’s house in Charleston, $75 of which was pre-recorded buy money used in the controlled purchase with the confidential informant. Broner further admitted to possessing additional heroin at his residence that he intended to distribute. Broner faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 4, 2016.
The investigation of Ross was conducted by the Charleston Police Department and the Metropolitan Drug Enforcement Network Team (MDENT). The investigation of Broner was conducted by MDENT. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. The defendants entered their guilty pleas before United States District Judge Thomas E. Johnston.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Two Public Employees Who Evaded Paying Taxes Are SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that two public employees who previously pleaded guilty to tax evasion offenses have been sentenced in Hartford federal court. Yesterday, U.S. District Judge Alvin W. Thompson sentenced TROY HESTER, 43, of Hartford, to 10 months of imprisonment, followed by three years of supervised release. Today, Judge Thompson sentenced MICHAEL CARTER, 52, of New Haven, to four years of probation, the first six months of which CARTER must serve in home confinement under electronic monitoring.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had little or no money withheld from their wages.
According to court documents and statements made in court, during the 2008 through 2013 tax years, HESTER, while employed by the Metropolitan District Commission in Hartford, paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480. HESTER had submitted a Form W-4 claiming that he was “exempt” from federal withholding.
HESTER was ordered to pay more than $79,000 in back taxes and interest.
The investigation also revealed that HESTER failed to pay more than $24,000 in state taxes from 2007 through 2012.
CARTER, who was employed by the Connecticut Department of Mental Health and Addiction Services and worked as a nurse at the Connecticut Valley Hospital in Middletown, submitted a false Form W-4 to the state indicating that he had 99 exemptions and was exempt from tax withholding. As a result, no money was withheld from his wages. During the 2010 through 2012 tax years, CARTER paid no federal income taxes on more than $282,000 in income he received, resulting in a federal tax loss of $53,344.
CARTER was ordered to pay more than $56,000 in back taxes and interest.
This ongoing investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
Three Men Sentenced to a Total of over 17 Years for Theft of Firearms from Berryville, Arkansas Gun StoreRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that three men were sentenced today on one count each of Aiding and Abetting the Theft of Firearms from a Federal Firearms Licensee. Taz Bibey, age 19, of Tillamook, Oregon was sentenced to 40 months in federal prison and two years of supervised release; Timothy Brown, age 50, of Eureka Springs, Arkansas was sentenced to 120 months in federal prison and three years of supervised release; Andrew Davis, age 26, of Eureka Springs, Arkansas was sentenced to 46 months in federal prison and two years of supervised release. The three defendants were also ordered to pay restitution in the amount of $17,734 jointly and severally. The Honorable P.K. Holmes, III handed down the sentences in the United States District Court in Fort Smith.
According to court records, on May 8, 2015, Kings River New and Used Guns located in Berryville, Arkansas was burglarized, and 55 guns were stolen. On May 11, it was determined by the ATF that all of the firearms had traveled in interstate commerce. On May 13, officers from the Branson, Missouri Police Department responded to the Four Seasons Inn regarding two individuals that would not leave the business. The two individuals, Andrew Davis and Taz Bibey, agreed to leave the inn after police arrived. Officers then received a second phone call from the hotel that one of the individuals was trying to get back into the room to retrieve a gun. Hotel Management entered the room and retrieved a Glock .45 caliber model 21 handgun. Subsequent investigation revealed the handgun was stolen from Kings River on May 8 and that the serial number had been defaced. Officers learned that Davis and Bibey had been associating with Timothy Brown who was also staying at the Inn. Brown was located and stated that Davis and Bibey had come to his room and were showing off some guns they had. Officers located some ammunition, several syringes with methamphetamine residue, and a smoking pipe in Brown’s room. Brown was arrested and taken into custody for the drugs. Davis and Bibey were interviewed and both admitted their role in the offense and implicated Brown by stating that the idea to burglarize the gun shop was his. They admitted to entering the business and loading the guns into boxes and transferring them to Brown’s van where he was waiting. The guns were then transported to Missouri for distribution. An individual in Missouri admitted to purchasing three guns from Brown. In his interview, Brown admitted to being with Davis and Bibey on the day in question and to disposing of at least one of the firearms in exchange for methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Branson Police Department, and the Arkansas State Police. Assistant U.S. Attorney David Harris prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Three Bronx Men, Including A Corrections Officer, Charged in Manhattan Federal Court with Armored Car Robbery ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced that MICHAEL SANTIAGO, a corrections officer at Downstate Correctional Facility in Fishkill, New York, KENNETH SMITH, and BRUCE COLLAZO, a/k/a “Tonz,” were arrested this morning for participating in a conspiracy to rob a series of armored cars in the Bronx, New York. SANTIAGO, SMITH, and COLLAZO were presented today in Manhattan federal court before United States Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “Michael Santiago, a corrections officer entrusted with the safekeeping of the community, Kenneth Smith, and Bruce Collazo are charged with conspiring to conduct a series of brazen daytime armed robberies, provoking gun violence on busy streets, and putting lives at risk. Together with our partners at the FBI and the NYPD, we are committed to keeping our neighborhoods safe by taking violent criminals off the streets.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, over several months, the defendants conspired to brazenly hold up armored car operators at gunpoint for cash. This vicious activity put everyday citizens in the forefront of violence, and the FBI-NYPD Violent Crimes Task Force stands with our law enforcement partners to investigate and bring all those involved to justice.”
NYPD Commissioner William J. Bratton said: “This is the type of collaboration we rely on to keep our city safe. This operation, taken down earlier this morning in raids across the Bronx, is the most significant case since the re-formation of the oldest task force in law enforcement history. Together, NYPD detectives and FBI agents arrested these defendants who, among other things, engaged in a massive midday shoot-out on a busy Bronx street, as alleged. Tonight, our city – because of the hard work of agents, detectives, and prosecutors – is a little bit safer.”
According to the Complaint[1]:
Between August and December 2015, SANTIAGO, SMITH, and COLLAZO, along with other members of the robbery crew who remain at large, participated in gunpoint robberies of armored car operators. Specifically, on August 24, 2015, December 4, 2015, and December 15, 2015, members of the crew robbed armored car operators of thousands of dollars in cash at gunpoint. During the December 15, 2015, robbery, a member of the crew exchanged gunfire with the operator of the armored vehicle before escaping on foot.
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SANTIAGO, 29, SMITH, 34, and COLLAZO, 20, all of the Bronx, New York, are each charged with one count of conspiracy to commit Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; and one count of using or carrying firearms during and in relation to, or possessing firearms in furtherance of, a crime of violence, which firearms were discharged, which carries a maximum sentence of life in prison, and a mandatory consecutive minimum sentence of 10 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.
Mr. Bharara praised the efforts of the FBI, the NYPD, the New York State Department of Corrections and Community Supervision, and the Office of Special Investigation in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Matthew Podolsky is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Texas Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
HOUSTON – Omar Faraj Saeed Al Hardan, 24, a Palestinian born in Iraq, has been charged in a three-count indictment alleging that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
U.S. Attorney Kenneth Magidson, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Brian M. Moskowitz of Homeland Investigations (HSI) in Houston made the announcement.
The three-count indictment was returned Jan. 6, 2016 and unsealed tonight. He will have his initial appearance tomorrow at 10:00 a.m CST in Houston before U.S. Magistrate Judge John R. Froeschner.
Al Hardan entered the United States as an Iraqi refugee on or about Nov. 2, 2009. He was granted legal permanent residence status on or about Aug. 22, 2011, and resides in Houston.
He is charged with one count each of attempting to provide material support to ISIL, procurement of citizenship or naturalization unlawfully and making false statements.
The indictment alleges that Al Hardan attempted to provide material support and resources, including training, expert advice and assistance, and personnel – specifically himself – to a known foreign terrorist organization. According to the allegations, he also knowingly responded, certified and swore untruthfully on his formal application when applying to become a naturalized U.S. citizen. He allegedly represented that he was not associated with a terrorist organization when, in fact, he associated with members and sympathizers of ISIL throughout 2014, according to the charges. The indictment further alleges that during an interview in October 2015, Al Hardan falsely represented that he had never received any type of weapons training, when he allegedly received automatic machine gun training.
The charge of attempting to provide material support to terrorists carries a maximum sentence of 20 years in federal prison and a maximum fine of $250,000. The charge of false citizenship procurement carries a maximum sentence of 25 years in prison (if the offense was committed to facilitate an act of international terrorism). The charge of making false statements carries a maximum sentence of eight years in prison. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
The charges are the result of an investigation conducted by the FBI’s Joint Terrorism Task Force and HSI with the assistance of the Houston Police Department. Assistant U.S. Attorney Ralph Imperato is prosecuting the case along with Trial Attorney Kashyap Patel of the National Security Division’s Counterterrorism Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Omar Faraj Saeed Al Hardan, 24, a Palestinian born in Iraq, has been charged in a three-count indictment alleging that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Brian M. Moskowitz of Immigration and Customs Enforcement's Homeland Security Investigations (HSI) in Houston made the announcement.
The three-count indictment was returned on Jan. 6, 2016, and was unsealed today. He will have his initial appearance tomorrow at 10:00 a.m CST in Houston.
Al Hardan entered the United States as an Iraqi refugee on or about Nov. 2, 2009. He was granted legal permanent residence status on or about Aug. 22, 2011, and resides in Houston.
He is charged with one count each of attempting to provide material support to ISIL, procurement of citizenship or naturalization unlawfully and making false statements.
The indictment alleges that Al Hardan attempted to provide material support and resources, including training, expert advice and assistance, and personnel – specifically himself – to a known foreign terrorist organization. According to the allegations, he also knowingly responded, certified and swore untruthfully on his formal application when applying to become a naturalized U.S. citizen. He allegedly represented that he was not associated with a terrorist organization when, in fact, he associated with members and sympathizers of ISIL throughout 2014, according to the charges. The indictment further alleges that during an interview in October 2015, Al Hardan falsely represented that he had never received any type of weapons training, when he allegedly received automatic machine gun training.
The charge of attempting to provide material support to terrorists carries a maximum sentence of 20 years in federal prison and a maximum fine of $250,000. The charge of false citizenship procurement carries a maximum sentence of 25 years in prison (if the offense was committed to facilitate an act of international terrorism). The charge of making false statements carries a maximum sentence of eight years in prison. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
An indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The charges are the result of an investigation conducted by the FBI’s Joint Terrorism Task Force and HSI with the assistance of the Houston Police Department. Trial Attorney Kashyap Patel of the National Security Division’s Counterterrorism Section is prosecuting the case along with Assistant U.S. Attorney Ralph Imperato of the Southern District of Texas.
Al Hardan Indictment
Sex Offender Sentenced to Life Imprisonment Plus Additional Ten Years in Federal Child Exploitation CaseRead the Press Release
Fort Smith - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Jack Lambeth, age 58 of Midwest City, Oklahoma, was sentenced today to Life In Prison without the possibility of parole on charge of Interstate Travel with Intent to Engage in Aggravated Sexual Abuse of a Minor in violation of 18 U.S.C. 2241(c). An additional ten (10) years was imposed per statute due to the defendant’s status as a sex offender. The sentencing took place before the Honorable P.K. Holmes, III in the United States District Court in Fort Smith.
Court records reflect that in March of 2015, the Fort Smith Police Department began an undercover investigation directed at individuals who were using the internet to target minors for sexual activity. During the operation, an undercover officer entered an internet chat room utilizing an online persona of an adult mother offering her 8 and 9 year old children for sexual exploitation. Lambeth, a registered sex offender from Oklahoma, began chatting with the undercover officer about the possibility of having a sexual encounter with the children. During the month of March, Lambeth made specific plans to travel to Arkansas to engage in such sexual acts, and also sent the undercover officer sexual devices to be used on the minors. On or about March 28th, Lambeth was arrested by the Fort Smith Police Department after he contacted the undercover officer stating he was at a local motel. In August, Lambeth pleaded guilty to crossing a state line with the intent to engage in a sexual act with a minor under 12 years of age. At sentencing, the Government presented the Court with evidence that Lambeth had previously been convicted of raping a minor and, in a subsequent case, a federal child pornography offense.
This case was investigated by Fort Smith Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (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.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Schenectady Couple Indicted for Mail FraudRead the Press Release
ALBANY, NEW YORK – Jeragh Powell, age 25, and Kimberly Powell, age 37, both of Schenectady, New York, were arraigned today on an indictment charging them with mail fraud in connection with a lottery scheme that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
The indictment alleges that the Powells mailed documents that falsely informed elderly victims that they had won lottery prizes and were required to pay fees and taxes in order to claim their prizes. Members of the conspiracy also called elderly victims with instructions on mailing the payments for sham taxes and fees. Elderly victims sent tens of thousands of dollars to the defendants and their co-conspirators, and the defendants then sent a portion of the payments they received to co-conspirators in Jamaica, Jeragh Powell’s country of citizenship.
The Powells were indicted on January 6, 2016. They face up to 20 years of imprisonment and a $250,000 fine, if convicted. They were arraigned today before Magistrate Judge Christian F. Hummel and detained pending their satisfaction of a Court-ordered bond. Their trial is scheduled to take place before District Judge Mae A. D’Agostino.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
San Felipe Pueblo Man Sentenced for Assaulting a Kewa Pueblo ChildRead the Press Release
ALBUQUERQUE – Gregory Kyle Chavez, Jr., 29, a resident and member of San Felipe Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 14 months in prison for his assault conviction. Chavez will be on supervised release for three years following his incarceration.
Chavez was arrested on July 6, 2015, on a criminal complaint charging him with assault resulting in substantial bodily injury. According to the complaint, on June 13, 2015, in Kewa Pueblo in Sandoval County, N.M., Chavez assaulted a two-year Kewa Pueblo child. The child victim suffered injuries to the left facial and forehead area including dark bruising and swelling to the left eye, left cheek, right jaw and bruising on the neck as a result of the assault.
On Sept. 29, 2015, Chavez pled guilty to a felony information charging him with assault resulting in substantial bodily injury, and admitted assaulting the child on June 13, 2015, causing the child serious bodily injury.
This case was investigated by the Southern Pueblos Agency of the BIA Office of Justice Services and was prosecuted by Assistant U.S. Attorney Sarah Mease.
Sacramento Man Arrested for Terrorism OffenseRead the Press Release
SACRAMENTO, Calif. — A Sacramento resident was arrested today on a federal charge of making a false statement involving international terrorism. Aws Mohammed Younis Al-Jayab, 23, is charged in a criminal complaint that was unsealed today in the U.S. District Court for the Eastern District of California following his arrest. He is in custody and will be making an initial appearance Friday in federal court in Sacramento at 2:00 PM.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, United States Attorney Benjamin B. Wagner of the Eastern District of California, and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.
“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”
“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner. “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”
“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento Field Office. “The public plays an equal, if not more important, role in protecting the community. We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group—whether in person or online—to voice their concerns to law enforcement.”
According to the complaint, Al-Jayab is a Palestinian born in Iraq, who emigrated from Syria to the United States as a refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations. In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria. On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria. Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004. He returned to the United States on Jan. 23, 2014, and settled in Sacramento.
The complaint alleges that on October 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The complaint alleges that all of those answers were materially false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine. 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.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Joint Terrorism Task Force (JTTF), a team of federal, state, and local law enforcement agents and officers investigating domestic and international terrorism. Assistant United States Attorney Jill Thomas and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is ongoing.
Rochester Man Is Sentenced for Mail Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Hoeub Chan, of Rochester, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to one year in prison and ordered to pay restitution to Rochester Gas & Electric Company totaling $72,151 the Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant conspired with Phally Suong who worked as a customer service representative for Rochester Gas & Electric Company. Suong used her position to access RG&E billing systems and alter the customer information for inactive accounts awaiting refunds. Suong changed the information in the system from the names of actual customers to the names of herself, family and friends, including Chan. This resulted in fraudulent refund checks being mailed to these individuals. Chan received a number of fraudulent refund checks totaling over $72,000.
Charges are pending against Suong. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Rapid City Man Convicted of Possession of Firearm and Ammunition by a Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that Clayton M. High Wolf, age 53, of Rapid City, South Dakota, was found guilty of Possession of Firearm and Ammunition by a Prohibited Person as a result of a federal jury trial in Rapid City, South Dakota. The jury returned the guilty verdict on January 7, 2016.
The charge carries a maximum penalty of 10 years in custody and/or a $250,000 fine, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from High Wolf being in possession of a Smith & Wesson .22 caliber pistol and Remington .22 caliber ammunition when he was stopped by police officers on July 17, 2014, at Rapid City. He had previous felony convictions with prison time exceeding a year, which prohibits him from possessing a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Rapid City Police Department. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Providence Landlord Sentenced in Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – Rony Metellus, 52, of Providence, was sentenced on Wednesday to 42 months in federal prison for setting fire to an occupied three family tenement building he owned, in an arson-for profit scheme and insurance fraud scheme, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Metellus to serve 3 years supervised release upon completion of his prison term. Metellus pleaded guilty on August 3, 2015, to one count of defrauding an insurance company – wire fraud.
According to court records and information presented to the court, an investigation by the Providence Fire Department Arson Squad, the Providence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Rhode Island Attorney General’s Office, determined that an early morning fire on July 23, 2014, to an occupied three family tenement at 346 Admiral Street in Providence was intentionally set. The investigation determined that the building’s owner, Rony Metellus, intentionally set fire to the building in a scheme to collect insurance payments.
At the time of the fire, three adults and three children were living in a first floor apartment. The second and third floors, including the apartment where the fire was intentionally set, were vacant. The building sustained significant damage.
At the time of his guilty plea, Metellus admitted to the court that he drove from his Providence home at approximately 3:30 a.m. on the morning on July 23, 2014, set fire to the Admiral Street building, and quickly returned home as Providence fire apparatus were responding to the fire. Metellus admitted that he hired a public adjuster to represent him in filing an insurance claim for damages to the burned building. Records indicate a claim was filed with the insurer, Lloyd’s of London.
Metellus has been detained in federal custody since his arrest on August 8, 2014.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Milind M. Shah.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Property Manager Sentenced to 15 Months in Prison for Role in Multimillion-Dollar Mortgage FraudRead the Press Release
CAMDEN, N.J. – A property manager was sentenced today to 15 months in prison for his role in a scheme to defraud financial institutions as part of a multimillion-dollar mortgage fraud that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood, New Jersey, area, U.S. Attorney Paul J. Fishman announced.
Paul Watterson, 55, of Mountainside, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Watterson and his conspirators identified homes in Wildwood and Wildwood Crest and recruited straw buyers to purchase those properties at the inflated rates. The straw buyers had good credit scores, but lacked the financial resources to qualify for mortgage loans. Watterson created fraudulent loan applications that contained false information about the straw buyers’ employment, income, assets and intended use of the properties. Watterson also obtained on behalf of his conspirators false documents to support the phony loan applications for certain straw purchasers. Watterson’s actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Watterson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Watterson’s conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. Watterson received $273,600 from five separate real estate transactions.
In addition to the prison term, Judge Simandle sentenced Watterson to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Thomas R. Ashley Esq., Newark
Prominent Bend Plumber Sentenced for Filing False Tax ReturnsRead the Press Release
PORTLAND, Ore. – On Tuesday, January 5, 2015, U.S. District Court Chief Judge Ann Aiken sentenced Gary L. Ford, 55, of Bend, Oregon, today to 18 months in prison for filing false tax returns in 2007, 2008, and 2009. Judge Aiken also sentenced Ford to serve one year of supervised release and ordered him to pay $580,454 in restitution, representing the amount Ford failed to report to the IRS.
According to court documents, since 1992 Gary Ford has been the sole proprietor of Summit Plumbing in Bend, Oregon, specializing in new residential construction in Central Oregon. Ford’s company routinely undercut competitor’s bids. This imbalance in the marketplace greatly benefitted Ford’s business. In 2007, on a loan application for a new $1.2 million vacation home in the PGA West golf club and resort in La Quinta, CA, Ford claimed he earned $26,500 per month. Ford’s spending habits supported this claim. In 2009 alone, he spent more than $900,000 on personal expenses, $355,000 on real estate, and $280,000 on other investments. These were Ford’s personal expenses in excess of his business expenses.
Meanwhile, Ford filed tax returns claiming he lived at or below the poverty line, even going so far as to claim refunds for the years in question. In reality, between 2006 and 2009, Ford failed to report almost $1.7 million in income and to pay more than $580,000 in federal income taxes. In fact, in most years, Ford paid more in interest on his three properties than he claimed as income. Ford evaded his full tax obligation by simply failing to include as income monies received from customers who did not issue him a Form 1099. In other words, the only income Ford reported was the payments that his customers independently reported to the IRS.
“Mr. Ford’s case is an example of what happens when someone selfishly puts their own unfettered wants above the common good and the law,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “Mr. Ford accumulated properties and spent lavishly while utterly shirking his civic duty to pay an honest tax. Not only that, but he left many competitors in the lurch as he undercut their bids due to the simple fact that knowing he would not be paying his taxes allowed him to recklessly offer lower bids. That’s not fair, that’s not just, and IRS CI will always fight to ensure everyone on the playing field is playing by the same rules.”
This case was investigated by Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Prison Guard Convicted of Having Sex with InmatesRead the Press Release
HOUSTON – A former prison guard at the federal prison camp in Bryan has entered a guilty plea to two counts of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson.
Marshall Thomas, 35, of College Station, was charged with engaging in a sexual relationship in July 2014 with two different inmates while he was employed as a correctional officer.
Beginning in March 2014, Thomas began supervising a female inmate at federal prison camp. Soon after, he began making inappropriate comments to her and began to hug, kiss and touch her inappropriately whenever they would be alone. On or about July 19, 2014, Thomas directed her to go into the back of the dry storage room behind several boxes. At that time, Thomas began to kiss her, unzipped his pants and pulled down her pants. She resisted his efforts to have intercourse, but he did it anyway.
Thomas told her that if she reported any of the inappropriate conduct he would “flag” her and that “it was his career and her good time.”
On the same day, Thomas was also supervising another inmate. While she was in the kitchen getting something to eat, Thomas told her to go to the salad room, where he began to kiss her and attempted to engage in sexual intercourse. She resisted. He then used his fingers to vaginally penetrate her.
U.S. District Judge Gray Miller accepted the guilty plea today and has set sentencing for April 1, 2016. At that time, he faces up to 15 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the Office of the Inspector General. Assistant United States Attorneys Ruben R. Perez and Jill Stotts are prosecuting the case.
Pittsburgh Man Pleads Guilty in Counterfeit Currency SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and making counterfeit currency, United States Attorney David J. Hickton announced today.
William Perry Bagley, 32, pleaded guilty to two counts before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that from in and around May 2013 to June 20, 2013, Bagley made counterfeit currency and Bagley and others conspired to make and pass counterfeit currency.
Judge Diamond scheduled sentencing for May 3, 2016 at 10 a.m. The law provides for a total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Bagley.
Pittsburgh Man Pleads Guilty in California to PA Drug Trafficking SchemeRead the Press Release
PITTSBURGH -A local resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of crack cocaine, United States Attorney David J. Hickton announced today.
Harold Neal, 54, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Harold Neal was intercepted over the wire conspiring with others to possess with intent to distribute and distribute crack cocaine, which was shipped, in powder form, from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for May 4, 2016. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued Neal’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Harold Neal.
Patriarch of Family Drug Trafficking Ring Pleads Guilty, Faces 35 Year Sentence for Distribution of Fentanyl, Cocaine, Meth and HeroinRead the Press Release
Assistant U.S. Attorneys Joseph S. Green (619) 546-6955 and Lara W. Worm (619) 546-9697
NEWS RELEASE SUMMARY – January 7, 2016
SAN DIEGO – Hugo Adalberto Adrian Ramirez pleaded guilty this afternoon to conspiracy to distribute methamphetamine, cocaine, heroin and fentanyl in connection with a family drug trafficking ring that Ramirez directed.
Ramirez entered his guilty plea before U.S. Magistrate Judge Karen S. Crawford and remains in custody pending a sentencing hearing on March 7, 2016 at 9 a.m. before U.S. District Judge William Q. Hayes.
According to admissions in court and in his plea agreement, Ramirez conspired with family members, including his wife, sister, two adult children, and nephew, to distribute controlled substances within Southern California and to various locations throughout the United States, including the New York/New Jersey area and North Carolina.
According to his plea agreement, the government will recommend a sentence of no more than 35 years.
Ramirez directed and participated in all aspects of the conspiracy, including acquiring and negotiating the sale of controlled substances, conducting and directing counter-surveillance of law enforcement, and collecting drug proceeds. As a part of the conspiracy, Ramirez frequently changed his cellular telephone in a failed attempt to thwart law enforcement.
Ramirez also used his minor children to promote the conspiracy, including directing minor children to run errands, pass messages, and conduct counter-surveillance of law enforcement officers investigating Ramirez’s activities.
Ramirez admitted to organizing numerous shipments of methamphetamine, cocaine and heroin to sub-distributors in North Carolina, including approximately 6.6 kilograms of methamphetamine and 57.4 grams of heroin seized by law enforcement agents on August 22, 2014. Ramirez also admitted to the distribution of multi-kilogram quantities of cocaine and fentanyl to sub-distributors in New Jersey, including approximately 3 kilograms of cocaine and 1 kilogram of fentanyl seized by law enforcement agents on May 23, 2014.
Fentanyl is a synthetic opiate considered 50 to 100 times more powerful than morphine. It is typically administered to people in chronic pain, including end-stage cancer patients, and is also used as an anesthetic during surgery. Just a small amount – even a few grains - can be fatal. Authorities across the country have noted an increase in fatal overdoses of heroin that is spiked with fentanyl.
“This family operated a cross-country drug network that supplied users with dangerous and potentially deadly drugs like fentanyl,” said U.S. Attorney Laura Duffy. “With this final plea out of 12 arrested defendants, we have interrupted the supply and hopefully kept users from making a tragic mistake.”
“It is important that the residents of San Diego are aware of the danger of this powerful and potentially lethal drug,” says DEA San Diego Special Agent in Charge William R. Sherman. “DEA will continue to investigate and arrest distributors and manufacturers of this poison. It is marketed as a better high than heroin, but this clandestinely manufactured fentanyl is hundreds of times more potent than heroin.”
Kynan Barrios, Special Agent-In-Charge with the Bureau of Land Management in California stated, “Collaboration among law enforcement is vital to combating complex transnational criminal organizations that use America's public lands to smuggle dangerous drugs across international borders. These actions cause environmental degradation and threats to public safety throughout California as well as other states. The BLM is committed to ensuring these lands are safe to visit and remain healthy for the use and enjoyment of present and future generations.”
Ramirez’s guilty plea marks the 12th guilty plea in this case. Ramirez’s family members who participated in the conspiracy have received sentences ranging from 14 months to 10 years. Ramirez’s wife, Maria Ayala, received a sentence of 70 months following her guilty plea to laundering money in furtherance of the family’s drug trafficking operation. His son, Hugo Norberto-Adrian, Jr., received a sentence of 10 years in prison for conspiracy to distribute controlled substances.
Co-defendant Sonja Shenelle Holder, a New York rapper known as “Sonja Blade,” who pled guilty to money laundering charges in connection with this case on October 27, 2015, is scheduled to be sentenced on Monday, January 11, 2016. In her plea agreement, Holder admitted to laundering approximately $326,545 in cash to promote the acquisition of narcotics.
This investigation was conducted under the federal Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against major drug trafficking.
DEFENDANTS Criminal Case No: 14-CR-3057 Sentence
Hugo Adalberto Adrian Ramirez 42 Corona, CA Pending
Hugo Norberto-Adrian Jr. 21 Corona, CA 120 months
*Paul Dwight Doyley 49 Ashbury Park, NJ Fugitive
Sonja Shenelle Holder 37 Brooklyn, NY Pending
*Victor Jesus Gastelum 44 Unknown Fugitive
Sandra Bustos Juarez 32 Charlotte, NC 87 months
Alberto Mina 38 Charlotte, NC 87 months
Noe Mina 26 Charlotte, NC 87 months
Ricardo Mendoza 36 Ontario, CA Pending
Crystal Adrian 19 Corona, CA 15 months
Ghazi Catalan 22 Unknown Pending
Marvin Ventura Soto 25 Huntington Park, CA 120 months
Maria Ayala 44 Corona, CA 70 months
Sara Gricelda Adrian 41 Corona, CA 14 months
*Fugitives
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances in violation of Title 21, U.S.C. 841(a)(1) and 846; Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million dollar fine.
AGENCIES
Drug Enforcement Administration
Bureau of Land Management
Internal Revenue Service
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego Police Department
Immigration and Customs Enforcement, Homeland Security Investigations
Fontana Police Department
Riverside County Sheriff’s Department
ICE Enforcement and Removal Operations
San Diego County Sheriff’s Department
*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
North Miami Beach Resident Pleads Guilty for his Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
A North Miami Beach resident pled guilty for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity (DEO), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Daiman Williams, 23, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, Williams faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, on or about January 18, 2013, a state probation compliance check was performed on Williams at his residence in North Miami Beach, FL. During the compliance check of Williams’ residence, officers found a Toshiba laptop that contained a list of personal identifying information (PII). A forensic examination of the laptop revealed a series of documents containing over two thousand (2,000) pieces of PII, which included the names, Social Security numbers, and dates of birth for hundreds of school teachers and medical patients. In addition, credit reports, tax returns, and other miscellaneous PII were found in the laptop. Further investigation revealed that several of the individuals identified from the laptop had been victims of identity theft related to the fraudulent filing of their federal income tax returns.
On or about August 26, 2014, another state probation compliance check was performed on Williams at his residence. In connection with the compliance check, law enforcement searched Williams’ phone and found a video of the defendant holding a firearm and then storing the firearm in the trunk of a white Lexus vehicle. The vehicle was found in the driveway of Williams’ residence. Officers opened the trunk of the vehicle and discovered the firearm, ammunition and PII for more than 50 individuals, including names, dates of birth and Social Security numbers of homeowners’ insurance applications and completed income tax forms.
The intended loss to the government was $643,205.
Williams is scheduled to be sentenced on March 17, 2016 at 9:30 a.m. before United States District Judge Federico A. Moreno.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, DEO, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Hampton Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE - James Bednarcyk, 28, of Claremont, New Hampshire, pled guilty on Thursday in United States District Court for the District of New Hampshire to possessing child pornography, announced Acting United States Attorney Donald Feith.
In April 2014, an undercover investigation led by the Vermont Attorney General’s Office resulted in the identification of Bednarcyk’s residence in Claremont, New Hampshire as a potential location from which images of child pornography were being shared through the internet. A search warrant was obtained and executed for Bednarcyk’s Claremont residence in September 2014, and a computer was seized which contained a substantial number of images and videos of child pornography.
Bednarcyk is scheduled for sentencing in April 2016, and faces a maximum prison term of 10 years, to be followed by term of at least 5 years of supervised release and a fine of up to $250,000.
The case was investigated by the Vermont Attorney General’s Office and the Hampton, New Hampshire Police Department, in conjunction with Homeland Security Investigations (HSI) Manchester, the New Hampshire Crimes Against Children Task Force (NH ICAC), and the police departments of Claremont and Portsmouth, New Hampshire. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Tazewell Resident Jerisen Amundsen Sentenced to 127 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On Jan. 7, 2016, Jerisen Lee Amundsen, 20, of New Tazewell, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 127 months in prison as a result of his conviction for distribution of child pornography. Following his release from prison, Amundsen will be supervised by the U.S. Probation Office for life and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Amundsen pleaded guilty in May 2015 to federal charges stemming from an international undercover investigation into trading child pornography on the Internet. A federal search warrant was executed at Amundsen’s residence and a forensic examination of Amundsen's computer revealed that he had collected 1009 still images and 187 videos of child pornography, in addition to posting child pornography on the Internet.
Nancy Stallard Harr, Acting U.S. Attorney, emphasized the importance of pursuing child pornography offenders. “The successful collaborative efforts of federal, state and law enforcement agencies in this investigation have resulted in this defendant no longer being able to circulate images and videos of the sexual abuse of children to others. This sentence should send a message that the United States will aggressively investigate and prosecute those who choose to participate in the continued victimization of children, our most vulnerable members of society, through the circulation of child pornography on the Internet.”
This investigation was conducted locally by U.S. Homeland Security Investigations, Knoxville Police Department’s Internet Crimes Against Children Task Force, and the Tennessee Highway Patrol. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Orleans Man Sentenced to 10 Years in Prison on Narcotics and Firearm ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TYRONE TAYLOR, age 47, of New Orleans, was sentenced today after having previously pled guilty to possession with intent to distribute 100 grams or more of heroin and a quantity of cocaine hydrochloride, as well as possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Eldon E. Fallon sentenced TAYLOR to serve 120 months in prison, followed by four years of supervised release, and a $200 special assessment
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones was in charge of the prosecution
Mississippi Woman Sentenced for Making False Statements to New Orleans Immigration CourtRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARINA ARNEDO ROJAS-ZAYED, age 34, a resident of Ocean Springs, Mississippi, was sentenced today after previously pleading guilty to one count of making false statements to an agency of the United States.
U.S. District Judge Jane Triche Milazzo sentenced ROJAS-ZAYED to three years probation, a $500 fine, a $100 special assessment, and 200 hours of community service.
According to court records, from on or about July 2012 until on or about August 2013, ROJAS-ZAYED represented before the New Orleans Immigration Court that she was a licensed attorney in the state of Alabama, when in truth she knew she was not a licensed attorney. During hearings before the New Orleans Immigration Court, she appeared and assumed the role of attorney for aliens, albeit fraudulently. When Immigration Judges referred to ROJAS-ZAYED as “counsel,” she did not dispel the judges of this notion or attempt to correct the record. Additionally, ROJAS-ZAYED entered her notice of appearance on behalf of aliens in approximately 42 immigration cases before at least five different Immigration Courts in the United States. Specifically, she submitted numerous documents to the Immigration Courts indicating she was a licensed attorney, although she is not.
U.S. Attorney Polite praised the work of Homeland Security Investigations (HSI) in investigating this matter. Assistant United States Attorney Julia K. Evans was in charge of this prosecution.
Milwaukee Woman Sentenced to Prison for Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
Acting United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin, announced that on January 5, 2016, Tina M. Gentry (age: 48) of Milwaukee was sentenced to a total of six months imprisonment based on her conviction for filing false tax returns with the Internal Revenue Service in violation of Title 18, United States Code, Section 287. Gentry was also ordered to pay $57,000 in restitution payable to the IRS.
According to the indictment, Gentry assisted individuals in falsely obtaining federal income tax refunds from the IRS. To obtain the refunds, Gentry prepared tax returns claiming false and fraudulent federal taxable income and federal income tax withheld, when she knew that none of the individuals she prepared returns for had federal taxable income or federal income tax withheld. In total, Gentry caused approximately 112 federal income tax returns to be filed with the IRS, falsely claiming federal income tax refunds of more than $90,000.
The case was investigated by Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Lisa A. Wesley
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McLaughlin Man Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Child Abuse was sentenced on January 5, 2016, by U.S. District Judge Charles B. Kornmann.
Clifford Wayne Kills Crow, Jr., a/k/a Clifford Wayne Kills Crow Indian, Jr., age 26, was sentenced to 3 years of probation and a special assessment of $100 to the Federal Crime Victims Fund, restitution.
Kills Crow was indicted by a federal grand jury on October 14, 2015. He pled guilty on December 15, 2015.
The conviction stems from an incident on July 22, 2015, when an officer was dispatched to a residence in McLaughlin, in regards to an intoxicated father who had struck his child. Upon arrival at the home, law enforcement made contact with Kills Crow, who was outside the residence crying and sobbing, stating to law enforcement that he had “messed up” by getting angry at his juvenile son and striking him with his belt. Law enforcement noticed several welts on the victim’s back.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Marrero Homeowner Pleads Guilty to Theft of $50K in Home Elevation Grant FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CINDY DANDRIDGE, age 43, of Marrero, pled guilty today to theft of government funds.
According to court documents, DANDRIDGE owned a home in Marrero. In September and October 2010, DANDRIDGE executed application documents with the Home Elevation Mitigation Grant Program (“HMGP”), with the understanding that the grant monies would be used to elevate her home.
In January 2011, DANDRIDGE received federal HMGP grant monies totaling $50,000 and deposited these federal funds into her personal bank accounts. However, instead of using the monies to elevate her home, DANDRIDGE used the grant monies to pay for personal expenses.
The maximum penalty for theft of government funds is ten years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. U.S. District Judge Mary Ann Vial Lemmon set sentencing for April 13, 2016.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Marlin Maurice Jackson Sentenced to 3 Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced MARLIN MAURICE JACKSON, 36, to 36 months imprisonment, followed by 3 years of supervised release. He also ordered payment of $ 615,536 in restitution
jackson was named in a Criminal Information filed on April 28, 2015. He pled guilty to one count of false, fictitious, and fraudulent claims for refunds, in violation of Title 18, United States Code, Section 287. Evidence presented at JACKSON’s plea and sentencing showed that JACKSON used the identities of others, often without their knowledge, to prepare and file fraudulent tax returns.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon is handling the case on behalf of the government.
“As filing season is upon us, the message should be clear that if you engage in fraud at the expense of other taxpayers in order to enrich yourself, as Marlin Jackson did in this case, IRS Criminal Investigation will investigate your criminal actions and ensure that you are held responsible.” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.
Man Sentenced to 10 Years for Traveling to Colorado to Engage in Sexual Acts with a MinorRead the Press Release
DENVER – A Nevada man was sentenced to 120 months in prison yesterday in U.S. District Court in Denver for traveling across state lines with the intent to engage in illicit sexual conduct with a minor, announced Colorado U.S. Attorney John Walsh and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Brian Franklin Howard, 38, of Las Vegas, pleaded guilty on Sept. 11, 2015, to one count of travel with intent to engage in illicit sexual conduct with a 10-year-old minor child. He has been in custody since his arrest on April 2, 2015. U.S. District Judge Christine M. Arguello of the District of Colorado, who sentenced Howard, also ordered the defendant to serve 10 years of supervised release.
According to the plea agreement, a U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) agent, posing undercover as a single mother of two minor children, came into contact with Howard online. Howard then arranged to meet the mother and her children and flew from Las Vegas to the Denver International Airport, where he met the undercover agent, confirmed his intent to have sex with children and was arrested.
“Defendant’s chilling and detailed effort to come to Colorado to rape children fully deserves the severe sentence imposed by Judge Arguello,” said U.S. Attorney John Walsh. “Let this case serve as a warning.”
“Anyone who travels hundreds of miles across state lines to have sex with a 10-year-old is a danger to children everywhere,” said David A. Thompson, special agent in charge of HSI Denver. “Under our Operation Predator program, HSI identifies and targets these predators to rescue and bring justice to their young victims, and help protect other children by apprehending these predators in our communities.”
ICE-HSI investigated this case. Assistant U.S. Attorney Alecia Riewerts of the District of Colorado and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Little Eagle Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on January 4, 2016, by U.S. District Judge Charles B. Kornmann.
Mary Jo Madison, age 37, was sentenced to 16 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Madison was indicted by a federal grand jury on August 11, 2015. She pled guilty on November 2, 2015.
The conviction stems from an incident on July 7, 2015, when Bureau of Indian Affairs (BIA) law enforcement was dispatched to a residence in Little Eagle, in reference to an assault. Officers were advised that a group of females were fighting and one was bleeding from the head. Madison and others initially approached the victim and another person and started a verbal altercation. The altercation escalated and Madison went to a car, retrieved a metal bar, and struck the victim on the head at least one time. A neighbor across the street also described the incident to the BIA officers, stating he too saw Madison strike the victim on the head with a metal bar. None of the other people involved in this altercation had weapons.
The victim was transported by ambulance to Mobridge for treatment. As a result of the assault, the victim sustained head injuries, including two lacerations that formed a “T” on her scalp, one laceration was 4 cm long and the other 3 cm long. Following treatment, the victim did not require hospitalization and was released to her home.
Following the assault, Madison fled the area in a black vehicle heading towards Timber Lake. A second BIA officer responded to the call and passed a vehicle matching the description dispatch had provided. The vehicle was stopped and the officer was able to identify and detain Madison. Madison was interviewed the following day and admitted to striking the victim on the head with a metal bar.
This case was investigated by the BIA, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Madison was immediately turned over to the custody of the U.S. Marshals Service.
Leader of International, $200 Million Credit Card Fraud Scam Sentenced to 80 Months in PrisonRead the Press Release
TRENTON, N.J. – A New York man was sentenced today to 80 months for leading one of the largest credit card fraud schemes ever charged by the U.S. Department of Justice, U.S. Attorney Paul J. Fishman announced.
Tahir Lodhi, 56, of Hicksville, N.Y., previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in Court:
Lodhi directed the activities of a number of other conspirators in fabricating more than 7,000 false identities to obtain tens of thousands of credit cards. They doctored credit reports to pump up the spending and borrowing power associated with the cards. Lodhi and others then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts, causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would:
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“Make up” a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus.
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“Pump up” the credit of the false identity by providing false information about that identity’s creditworthiness to the credit bureaus. Believing the furnished information to be accurate, the credit bureaus would incorporate this material into the false identity’s credit report, making it appear that the false identity had excellent credit.
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“Run up” large loans using the false identity. The higher the fraudulent credit score, the larger the loans that the defendants could obtain. These loans were never repaid, and Lodhi and his conspirators reaped the profits.
The Sham Companies
The enormous size and scope of the criminal fraud enterprise required Lodhi and his conspirators to construct an elaborate network of false identities. Across the country, Lodhi and his conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses of the false identities.
They created dozens of sham companies that did little or no legitimate business, obtained credit card terminals for the companies and then ran up charges on the fraudulent cards. To accept payments in the form of credit cards, a business must establish a merchant account with an entity known as a merchant processor. The merchant processor provides the business with equipment to process credit cards, receives payments from credit card companies for credit cards run at the business, and deposits those payments, minus a fee, into the business’ bank account. When the merchant processors shut down accounts operated by the conspirators for fraud, they would apply for new terminals and create new companies.
The sham companies also served as “furnishers,” providing the credit bureaus with false information about the credit history of numerous false identities of people who purportedly worked at or owned the companies.
Tradelines
Lodhi and his conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud.
Tradelines come in two varieties: primary tradelines and authorized user tradelines. Primary tradelines are lines of credit in a credit history. If a credit card user has primary tradelines in good standing, it can have a significant impact on the user’s credit score, enabling the user to borrow more from credit card issuers. Lodhi and his conspirators, however, trafficked in fraudulent primary tradelines.
A second kind of tradeline is the “authorized user” tradeline, where a credit card holder adds another, so-called “authorized user,” to a credit card account. This raises the credit score of the authorized user, who inherits some of the primary user’s credit history.
Certain of Lodhi’s conspirators created and sold fake lines of credit for false identities made up by Lodhi and others. These fraudulent primary tradelines were then used to increase the credit limits on fraudulent cards, so that the conspirators could reap even larger profits. Lodhi and other conspirators used the authorized user tradelines to create new identities.
Complicit Businesses
Lodhi and his conspirators also relied upon complicit businesses, including several jewelry stores in the Jersey City, N.J., area, to extract money from the fraudulent cards. The complicit businesses would allow certain conspirators to conduct sham transactions on the phony cards and would then receive the proceeds from the credit card companies and split them with the other conspirators. These complicit businesses maintained multiple credit card merchant processing accounts at the same time. By operating dozens of accounts, these businesses furthered the conspiracy by allowing more fraudulent transactions to be processed before the merchant processors shut down the account. The proceeds from these merchant terminals were deposited into various business checking accounts, and the money was paid out to the owners of the complicit businesses, along with other conspirators.
Lavish SpendingThe conspiracy generated enormous profits for Lodhi and his conspirators – even though they spent millions of dollars sustaining the elaborate network of drop addresses and running credit reports on the thousands of false identities. Records of the New York and New Jersey Departments of Labor reveal that many of Lodhi’s conspirators had no reported legitimate employment in the last five years. Nonetheless, Lodhi and his conspirators used the proceeds of the criminal enterprise to buy luxury automobiles, electronics, spa treatments, expensive clothing and millions of dollars in gold. They also stockpiled large sums of cash. Law enforcement discovered approximately $70,000 in cash in the oven of one of Lodhi’s conspirators.
Lodhi’s conspirators also moved millions of dollars through accounts under their control, and wired millions of dollars overseas. An analysis of 169 bank accounts of the defendants, sham companies, and complicit businesses has identified $60 million dollars in proceeds that flowed through the accounts, much of it withdrawn in cash. The conspirators wired millions of dollars to Pakistan, India, the United Arab Emirates, Canada, Romania, China and Japan. Due to the massive scope of the conspiracy, which involved more than 25,000 fraudulent credit cards, loss calculations are ongoing. Final figures may grow beyond the present confirmed losses of more than $200 million.
The investigation previously resulted in the arrest of 22 defendants and the seizure of more than $4 million in gold from jewelry stores in Jersey City.
In addition to the prison term, Judge Thompson sentenced Lodhi to five years of supervised release and fined him $25,000.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to today’s guilty plea. He also thanked postal inspectors under the direction of Postal Inspector in Charge Marie L. Kelokates, the U.S. Secret Service, under the direction of Special Agent in Charge David Beach, and the U.S. Social Security Administration for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the Economic Crimes Unit and Barbara Ward of the Asset Forfeiture Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Howard Simmons Esq., New York
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Lapwai Man Sentenced for StrangulationRead the Press Release
COEUR D’ALENE – Robert Ryan Johnson, Jr., 36, of Lapwai, Idaho, was sentenced yesterday to 18 months in prison for strangulation, U.S. Attorney Wendy J. Olson announced. The court also ordered Johnson to serve three years of supervised release following his sentence and complete a one year anger management counseling course. He pleaded guilty to the charge on October 20, 2015.
According to the plea agreement, in March 2014, Johnson got into an argument with his intimate or dating partner. Johnson admitted that during the argument he grabbed the victim by the neck and strangled or attempted to strangler her.
“The strangulation statute and the Violence Against Women Act are useful tools to fight domestic violence crimes that endanger women and children in Native American communities,” said Olson. “This violence tears apart families, damages children, and may even have lethal consequences.”
The case was investigated by the Nez Perce Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted in federal court because the crime occurred on the Nez Perce Indian Reservation and the defendant is an enrolled member of a federally recognized tribe.
Kurbanov Sentenced to 25 Years in PrisonRead the Press Release
BOISE – Fazliddin Kurbanov, 33, an Uzbek national, was sentenced today to 25 years in federal prison by Senior U.S. District Judge Edward J. Lodge of the District of Idaho for conspiring and attempting to provide material support to a designated foreign terrorist organization and possessing an unregistered destructive device.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wendy J. Olson of the District of Idaho and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division made the announcement.
Judge Lodge also sentenced Kurbanov to a term of supervised release of three years and imposed a fine of $250,000. Kurbanov, who was convicted in August 2015 after a 20-day trial, will also face deportation proceedings at the end of his prison sentence.
“Fazliddin Kurbanov was sentenced for conspiring and attempting to provide material support to the Islamic Movement of Uzbekistan and procuring bomb-making materials in the interest of executing a terrorist attack on American soil,” said Assistant Attorney General Carlin. “Thankfully, the threat posed by Kurbanov was disrupted by the tireless efforts of the law enforcement community and its partners. Defending our nation from the threat of terrorism, whether at home or abroad, remains the highest priority of the National Security Division, and we will continue to hold accountable those who seek to harm to our country and our citizens.”
“The lengthy term of imprisonment imposed by the Court ensures that this defendant, who by his words and acts was intent on taking American lives, does not and will not pose any further threat to the safety and security of our community,” said U.S. Attorney Olson. “The investigation, prosecution, and now sentence in this case demonstrate the cooperative law enforcement effort by federal, state and local agencies to protect our national security and prevent acts of terrorism. I commend the men and women at every level of law enforcement and prosecution, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“The worst of intentions on the part of Mr. Kurbanov, that is the mass killing of Americans, were thwarted by the best of collaboration on the part of the entire law enforcement community,” said Special Agent in Charge Barnhart.
According to evidence presented at trial:
Between the summer of 2012 and his arrest in May 2013, Kurbanov, who was living in Boise, Idaho, communicated by email and Skype with a person or persons operating a website for the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization. Kurbanov discussed with the website administrator his animosity toward Americans, particularly the military; his desire to build a bomb; possible targets in the United States, including military bases in Idaho and Texas; and his need for instruction on how to construct and remotely detonate a bomb. Additionally, Kurbanov searched for and later discussed with an FBI confidential human source targets including military bases in the United States, specifically West Point Military Academy in New York. The website administrator instructed the defendant to obtain a specific anti-virus software to protect the IMU’s website and to obtain and provide any amount of money. The defendant contacted his brother, who lived overseas, about obtaining the anti-virus software and he sent the software to Kurbanov. Shortly before his arrest, the defendant caused an Idaho corporation to open, through which he intended to funnel money to the IMU.
Between at least Nov. 15, 2012, and May 16, 2013, Kurbanov possessed bomb-making components at his Boise apartment, including a hollow hand grenade, a hobby fuse, ammunition containing smokeless powder, tannerite, aluminum powder, potassium nitrate, charcoal, yellow sulfur powder and fertilizer. He purchased these items during the summer and fall of 2012. FBI special agents observed the bomb-making components during a court-authorized search of Kurbanov’s apartment in November 2012 and seized many of the same items during a second court-authorized search in May 2013.
Kurbanov’s activities were closely monitored by federal agents during the investigation and no terrorist attack occurred.
During the sentencing hearing, an explosives expert provided evidence that the bomb-making components Kurbanov possessed were capable of causing significant harm. Prosecutors argued that these capabilities, coupled with Kurbanov’s many statements of hatred toward Americans and desire to kill them, warranted the lengthy sentence.
Kurbanov still faces a separate one-count indictment returned in May 2013 in federal court in Utah alleging that from about Jan. 14, 2013, continuing through Jan. 24, 2013, he taught and demonstrated how to make explosive devices, and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction. His alleged intent was that the teaching, demonstration and information be used for and in furtherance of an activity that would constitute a federal crime of violence. The Utah indictment was returned in May 2013, at the same time as the Idaho indictment.
The Idaho case was investigated by the FBI’s Joint Terrorism Task Force with assistance from the Boise Police Department, the Immigration and Customs Enforcement’s Homeland Security Investigations, the Ada County, Idaho, Sheriff’s Office and the Canyon County, Idaho, Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco of the District of Idaho and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Kentuckiana Anesthesiologist Guilty of Unlawful Distribution of Controlled Substances, Health Care Fraud, Conspiracy and Money LaunderingRead the Press Release
LOUISVILLE, Ky. – A Kentuckiana anesthesiologist pleaded guilty today in U.S. District Court to charges of unlawful distribution or dispensing of controlled substances, health care fraud, conspiracy and money laundering announced United States Attorney John E. Kuhn, Jr.
Jaime Guerrero, age 48, formerly a medical physician with offices in Louisville, Kentucky, and Jeffersonville, Indiana, pleaded guilty to 31 counts of a 35 count Superseding Indictment before U.S. District Judge Greg N. Stivers.
According to terms of the plea agreement, Guerrero will forfeit the proceeds from these offenses, including his license to practice medicine and real property owned by Guerrero Real Estate Investments, LLC. Further, the defendant will pay $827,000 in victim restitution to nine health care benefit programs. In return, at the time of sentencing, the United States has agreed to recommend a 100 month sentence in prison, followed by a three year period of supervised release.
According to the plea agreement, from November 1, 2009, continuing through January 1, 2013, Guerrero conspired with others to knowingly and intentionally distribute and dispense, schedule II and III controlled substances to patients, without a legitimate medical purpose and beyond the bounds of professional medical practice. Beginning November 1, 2009, and continuing through May 8, 2014, Guerrero admitted to distributing and dispensing Schedule II and III controlled substances to patients (listed in counts 2-26) without a legitimate medical purpose beyond the bounds of professional medical practice. Beginning on or about January 6, 2010, and continuing through September 16, 2011, Guerrero knowingly and intentionally distributed and dispensed, and caused to be distributed and dispensed Hydrocodone, a Schedule III controlled substance, to patient S.O., without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in S.O.’s death on or about September 24, 2011.
Guerrero further pleaded guilty to three counts of health care fraud for fraudulently billing various health care benefit programs and for submitting fraudulent claims for patient health care counseling. Specifically, on May 26, 2011, June 15, 2011, and June 22, 2011, Guerrero saw more than 100 patients on each of the dates, by himself, and spent approximately 3 minutes or less with each patient, and fraudulently billed various health care benefit programs, for office visits at a higher code than the service provided. Between July 9, 2010 and July 22, 2010, Guerrero travelled outside of the United States and directed staff personnel to provide group counseling sessions for patients in his absence. The group sessions were then billed as individual counseling sessions, and as if Guerrero personally provided the service. Additionally, between January 1, 2008, and continuing through June 15, 2012, Guerrero falsely and fraudulently submitted over 100 claims to various health care benefit programs for office visits at a higher code than the service provided; for office visits that were not medically necessary or within the course of usual medical practice; submitting claims for services that were not sufficiently documented in the patient’s medical record; and making claims for office visits as though a physician saw the patient, when in fact, a nurse practitioner saw the patient. Guerrero agreed to pay $827,000 in victim restitution to nine health care benefit programs
Finally, Guerrero pleaded guilty to a single money laundering charge for redeeming (paying the taxes) on a building located at 1201 West Wall Street in Jeffersonville, Indiana, with $89,556.25 in cash derived from unlawful activity - the unlawful dispensing and distribution of controlled substances and health care fraud.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), Indiana and Kentucky Medicaid Fraud Control Units, and Louisville Metro Police Department (LMPD).
Justice Department Settles Lawsuit with Niagara County, New York, Alleging Discrimination Against Pregnant Corrections OfficerRead the Press Release
The Department of Justice announced today that it has entered into a consent decree with Niagara County, New York, resolving allegations that the county discriminated against Corrections Officer Carisa Boddecker because of her sex and pregnancy.
The consent decree, entered today by the U.S. District Court for the Western District of New York, resolves the United States’ complaint filed on May 13, 2013, that the Niagara County Sheriff’s Office (NCSO) discriminated against Boddecker when it revoked her restricted duty assignment and forced her to take an extended leave of absence during her pregnancy, although she was able to work. The complaint alleged that NCSO violated Title VII by refusing to let Boddecker do the same sort of work while pregnant that it allowed for other non-pregnant employees with temporary medical conditions. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, including pregnancy, as well as race, color, national origin and religion.
“It takes the strength and determination of women like Carisa Boddecker to stand up and speak out against sex-based discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice remains firmly committed to ensuring that public employers do not discriminate against employees because of their pregnancies.”
Under the terms of the consent decree, NCSO must review its existing anti-discrimination policies and procedures and adopt and implement new policies to protect its employees from discrimination on the basis of sex, including pregnancy. The consent decree requires NCSO to conduct training of its employees to ensure that any future complaints of discrimination are handled properly. NCSO also has agreed to offer Boddecker $94,000 in back pay, compensatory damages and attorney’s fees, as well as restore the seniority and pension benefits that she lost as a result of her forced leave of absence.
The case was prosecuted by Trial Attorneys Elizabeth Banaszak and Kathleen Lawrence of the Civil Rights Division.
The continued enforcement of Title VII remains a priority of the Justice Department’s Civil Rights Division. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s Employment Litigation Section (website).
Niagara County Consent Decree
Niagara County Order Approving Stipulated Consent Decree with Modification
Judge Sentences Penn Hill Man to 6 Years in Prison for Conspiring to Deal Heroin, CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 72 months’ imprisonment on his conviction of conspiracy to distribute cocaine and heroin, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Douglas Smith, Jr., 43, of Penn Hills, Pa.
According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Douglas Smith, Jr. was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier, and heroin, which the conspirators obtained in Cleveland, Ohio, and transported to the Western District of Pennsylvania for further distribution.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Douglas Smith, Jr.
Jefferson County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 28-year-old Port Arthur, Texas man has been sentenced to 15 years in federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cesar Estuardo Hernandez-Cruz pleaded guilty on Aug. 5, 2015, to production of child pornography and was sentenced to 180 months in federal prison on Jan. 6, 2016 by U.S. District Judge Marcia A. Crone.
According to information presented in court, in August 2014, Hernandez-Cruz attended a funeral where he met a 12-year-old minor. Afterwards, he found the child’s profile on the social media site, Facebook and began communicating online. Hernandez-Cruz persuaded the child to send him nude photos and asked the minor to meet him for sex. The victim did send Hernandez-Cruz photos but refused to meet in person. Federal agents recovered the sexually explicit photos that Hernandez-Cruz persuaded the child to produce. Hernandez-Cruz was indicted on June 3, 2015 and charged with child pornography violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Lesley A. Bartow and Randall L. Fluke.
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International Operation Concludes in Montana; Convicts 21 Defendants of Child Pornography-Related CrimesRead the Press Release
MISSOULA – The United States Attorney's Office for the District of Montana announces today the conclusion of an international operation that convicted twenty-one defendants of child pornography related crimes. These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child pornography.
Operation Kingdom Conqueror was initiated in 2011. FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip regarding a potential child pornography suspect. In early 2012, the FBI obtained a search warrant for the residence of Paul Wencewicz in Polson, Montana. During their search, the agents discovered that Wencewicz was operating an online bulletin board where members advertised and traded sexually explicit images of young girls. The bulletin board was named Kingdom of Future Dreams (KOFD), and was created by Wencewicz in 2009. Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.
Through their investigation, agents discovered that the KOFD bulletin board was housed on a server in the Isle of Jersey, one of the Channel Islands of the United Kingdom. Through cooperation with local police, state and federal agents were able to track down members of the bulletin board who resided in the United States and to obtain search warrants for their residences. Searches were conducted by federal officers in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas, and California. The KOFD conspiracy identified thirteen defendants in the United States in addition to Wencewicz of Polson. Through their investigation of the KOFD defendants, agents learned that eight of the fourteen defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme. Agents gained access to the board in April of 2013 and were able to identify additional members.
As a result of this investigation and prosecution, the following individuals have been convicted of Conspiracy to Advertise Child Pornography and sentenced as follows:
- Paul Wencewicz, age 49, Polson, Montana
Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution
- Scott Long, age 55, Portland, Oregon
Sentence – 200 months BOP, Lifetime Supervised Release, $29,859 restitution
- Steve Humiston, age 58, Tacoma, Washington
Sentence – 210 months BOP, Lifetime Supervised Release, $5,000 fine, $29,859 restitution
- Phillip Morris, age 43, Jeffersonville, Indiana
Sentence – 216 months BOP, Lifetime Supervised Release, $29,859 restitution
- Tony Bronson, age 55, Gary Indiana
Sentence – 224 months BOP, 10 years Supervised Release, $29,859 restitution
- Jeffrey Woolley, age 55, Nicholasville, Kentucky
Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution
- Charles Crosby, age 45, Trenton, New Jersey
Sentence – 210 months BOP, Lifetime Supervised Release, $29,859 restitution
- John Johnson, age 59, Locust Grove, Virginia
Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution
- Joseph Purificato, age 25, Mount Vernon, Missouri
Sentence – 180 months BOP, 10 years Supervised Release, $29,859 restitution
- Ian Nosek, age 44, Charlottesville, Virginia
Sentence – 216 months BOP, Lifetime Supervised Release, $29,859 restitution
- Robert Krise, age 67, Gaithersburg, Maryland
Sentence – 180 months BOP, Lifetime Supervised Release, $29,859 restitution
- John Merchberger, III, age 48, Dayton, Maine
Sentence – 220 months BOP, Lifetime Supervised Release, $5,000 fine
- Daniel Brown, age 27, Taylors, South Carolina
Sentence – 180 months BOP, Lifetime Supervised Release
- Marc Edoria age 24, Sacramento, California
Sentence – 180 months BOP, 10 years Supervised Release
- Tony Gustafson age 49, Hastings, Nebraska
Sentence – 200 months BOP, Lifetime Supervised Release
- Ryan Hatfield age 26, Mount Washington, Kentucky
Sentence – 180 months BOP, 10 years Supervised Release
- David Woods age 37, Corfu, New York
Sentence – 180 months BOP, 15 years Supervised Release
- Shawnston Beaudoin age 31, Kennesaw, Georgia
Sentence – 210 months BOP, Lifetime Supervised Release
The following defendants were convicted at trial of participating in a Child Exploitation Enterprise and Conspiracy to Advertise Child Pornography and were sentenced as follows:
- Joshua Petersen, age 45, Prescott, Arizona
Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution
- Steven Grovo, age 35, Shirley, Massachusetts
Sentence – 220 months BOP, Lifetime Supervised Release, $29,859 restitution
- Defendant Richard Pitts, age 28, from Cathedral City, California pled guilty to Conspiracy to Distribute Child Pornography and was sentenced to 84 months in the Bureau of Prisons and 15 years of supervised release.
The final defendant sentenced today as part of the operation in Missoula is Shawnston Beaudoin, 31, of Kennesaw, Georgia. Beaudoin pleaded guilty to the conspiracy charge on September 30, 2015. If called upon to prove its case at trial, the United States was prepared to demonstrate that Beaudoin became an active member of Dark Moon in October of 2012. He remained an advanced member of the board until April of 2013. During that time he posted to the advanced member section of the board. His posts included URL hyperlinks and preview images of child pornography. He also requested child pornography from other members, and responded to and commented on other members’ postings. Chief U.S. District Court Judge Dana Christensen presided over the sentencing.
“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse," said Assistant Attorney General Caldwell. "For the victim children, this trauma lasts the rest of their lives. Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children."
“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said Michael Cotter, U.S. Attorney for the District of Montana. “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children. As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled. We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”
Other federal agency Task Force partners expressed a similar commitment. “The FBI is dedicated to protecting the most innocent amongst us,” said Eric Barnhart, Special Agent in Charge. “We will continue to work with our law enforcement partners at home and abroad to identify, locate, and arrest individuals who prey on children and then attempt to hide their illegal activities behind a veil of technology.”
“Our special agents with Homeland Security Investigations have investigated child sexual exploitation cases for many years,” added David A. Thompson, special agent in charge of HSI Denver, which oversees Montana. “However, in collaborated efforts with other law enforcement agencies like this investigation we sometimes uncover networks and are ultimately able to apprehend many predators in our communities, and rescue many traumatized child victims. We appreciate the opportunity to continue such investigations to protect the most innocent and vulnerable members of our society.”
State law enforcement agencies were similarly committed to the successful conclusion of the operations. “Bringing closure to this massive investigation sends a message to the cyber child pornography criminals,” said Bryan Lockerby of the Montana Division of Criminal Investigation. “There is no place to hide and no place where we can’t get you.”
Prosecutors for the United States are Assistant U.S. Attorney Cyndee L. Peterson along with Maureen C. Cain with the U.S. Department of Justice, Child Exploitation & Obscenity Section. The investigation is a cooperative effort between the Federal Bureau of Investigation, United States Department of Justice - Child Exploitation and Obscenity Section, Montana Department of Criminal Investigations, the Helena Police Department, Homeland Security Investigations, and the Montana Internet Crimes Against Children Task Force.
The Judgments in this case are the product of diligent work by the very dedicated and skilled professionals who were involved in Operation Kingdom Conqueror and Operation Moon Runner. Protection of the public is one of our primary missions in these cases. Children within the United States as well as around the world are safer because these boards have been taken down. As long as children continue to be sexually exploited through the use of the Internet and these bulletin boards, this office will remain committed to that mission,” concluded United States Attorney Cotter.
International Operation Concludes in Montana; Convicts 21 Defendants of Child Pornography-Related CrimesRead the Press Release
An international operation that led to the conviction of 21 defendants for child pornography-related crimes concluded today in the District of Montana. These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child sexual exploitation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana, Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division, Special Agent in Charge David A. Thompson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Denver Field Office and Division Administrator Bryan Lockerby of the Montana Division of Criminal Investigation made the announcement.
Operation Kingdom Conqueror began in 2011 when FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip that ultimately led to the discovery of Kingdom of Future Dreams (KOFD), an online bulletin board operated by Paul Wencewicz, 49, of Polson, Montana, that members used to advertise and trade sexually explicit images of young girls. Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.
The KOFD bulletin board was housed on a server in the Isle of Jersey. Through cooperation with local police and British authorities, the United States obtained the boards’ data, allowing U.S. federal agents to identify 13 defendants in the United States in addition to Wencewicz and conduct searches in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas and California. This investigation revealed that eight of the 14 KOFD defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme. After gaining access to the board in April 2013, agents identified additional members.
Today, the final defendant, Shawnston Beaudoin, 31, of Kennesaw, Georgia, was sentenced to 210 months in prison and lifetime supervised release. Beaudoin pleaded guilty to conspiracy to advertise child pornography on Sept. 30, 2015. In connection with his plea, Beaudoin admitted that he became an active member of Dark Moon in October 2012 and remained an advanced member of the board until April 2013. During that time, he posted hyperlinks and preview images of child exploitation to the advanced member section of the board. Beaudoin also requested child pornography from other members and responded to and commented on other members’ postings. Chief U.S. District Court Judge Dana Christensen of the District of Montana presided over the sentencing.
In addition to Beaudoin, the following individuals have been convicted of conspiracy to advertise child pornography and sentenced as follows:
- Paul Wencewicz, 49, of Polson, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Scott Long, 55, of Portland, Oregon, was sentenced to 200 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Steve Humiston, 58, of Tacoma, Washington, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine and $29,859 in restitution;
- Phillip Morris, 43, of Jeffersonville, Indiana, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Tony Bronson, 55, of Gary, Indiana, was sentenced to 224 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;
- Jeffrey Woolley, 55, of Nicholasville, Kentucky, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Charles Crosby, 45, of Trenton, New Jersey, was sentenced to 210 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- John Johnson, 59, of Locust Grove, Virginia, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Joseph Purificato, 25, of Mount Vernon, Missouri, was sentenced to 180 months in prison and 10 years supervised release and was ordered to pay $29,859 in restitution;
- Ian Nosek, 44, of Charlottesville, Virginia, was sentenced to 216 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- Robert Krise, 67, of Gaithersburg, Maryland, was sentenced to 180 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution;
- John Merchberger III, 48, of Dayton, Maine, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay a $5,000 fine;
- Daniel Brown, 27, of Taylors, South Carolina, was sentenced to 180 months in prison and lifetime supervised release;
- Marc Edoria, 24, of Sacramento, California, was sentenced to 180 months in prison and 10 years supervised release;
- Tony Gustafson, 49, of Hastings, Nebraska, was sentenced to 200 months in prison and lifetime supervised release;
- Ryan Hatfield, 26, of Mount Washington, Kentucky, was sentenced to 180 months in prison and 10 years supervised release; and
- David Woods, 37, of Corfu, New York, was sentenced to 180 months in prison and 15 years supervised release.
The following defendants were convicted at trial of participating in a child exploitation enterprise and conspiracy to advertise child pornography and were sentenced as follows:
- Joshua Petersen, 45, of Prescott, Arizona, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 restitution; and
- Steven Grovo, 35, of Shirley, Massachusetts, was sentenced to 220 months in prison and lifetime supervised release and was ordered to pay $29,859 in restitution.
Richard Pitts, 28, of Cathedral City, California, pleaded guilty to conspiracy to distribute child pornography and was sentenced to 84 months in prison and 15 years of supervised release.
“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse,” said Assistant Attorney General Caldwell. “For the victim children, this trauma lasts the rest of their lives. Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children.”
“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said U.S. Attorney Cotter. “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children. As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled. We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”
The FBI, ICE-HSI, the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the Montana Department of Criminal Investigations, the Helena, Montana, Police Department and Montana ICACTF investigated the case. CEOS Trial Attorney Maureen C. Cain and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Houston Man Sentenced in Humble Bank RobberyRead the Press Release
HOUSTON – The final defendant convicted in the March 2015 robbery of the Shell Federal Credit Union on Wilson Road in Humble has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Derrick Devon Malone, 24, of Houston, was one of four members of a bank robbery gang who pleaded guilty for their roles in the crime.
Today, U.S. District Judge Alfred H. Bennett ordered Malone to serve a total of 164 months in federal prison to be immediately followed by five years of supervised release. Christopher Parker, 28, Shaterrika Monique West-Malone, 26, and Crystal Gail McCain-Sims, 25, all also of Houston, were previously sentenced to respective prison terms of 200, 142 and 108 months of imprisonment.
On March 19, 2015, West-Malone entered the bank shortly before the robbery to determine whether there was a security guard in the premises. Malone and Parker then entered the bank at approximately 11:00 a.m. During their entry, Malone, who was armed with a pistol, injured a departing bank customer by throwing her back inside the bank onto the floor.
At that time, Parker approached the new customers desk and confronted a bank employee and two customers who were sitting opposite her. He yelled at the employee, “Give me the money [expletive].” He then grabbed a customer’s cash and identification cards from the counter and jumped onto the tellers’ counter to join Malone, who was pointing his pistol at the heads and bodies of the tellers. Malone screamed at the tellers - “Hurry we will shoot you [expletive], give me the money [expletive], give me the money [expletive], all the money [expletive].”
Parker also shouted, “We want money, I’ll shoot you.” After seizing the cash from the bank and from a customer, Malone and Parker ran out the door, climbed into the vehicle of McCain-Sims, who was the getaway driver and fled the scene together with the accomplices.
Malone and Parker were captured shortly thereafter the robbery. West-Malone was arrested that afternoon because an alert deputy had seen her leave the getaway vehicle and enter her apartment. McCain-Sims was arrested later after law enforcement identified her as the owner of the getaway vehicle.
Customers and employees inside the credit union positively identified the two men. All four defendants eventually pleaded guilty.
The charges and convictions were the result of an investigation conducted by the FBI’s Violent Crime Task Force to include the Harris County Sheriff’s Office and the Houston Police Department. Assistant U.S. Attorney Michael Kusin is prosecuting the case.
Hoover, Alabama Man Charged with Possession of Child PornographyRead the Press Release
Joseph Whitlow Blackburn, 68, of Hoover, Alabama, was charged today and pleaded guilty to a criminal information charging him with possession of child pornography, announced David Rivera, U. S. Attorney for the Middle District of Tennessee.
According to charging documents and the plea agreement, between January 30, 2013 and April 16, 2013, agents with the Internet Crimes Against Children (ICAC) Task Force were conducting an investigation into the sharing of child pornography over the Internet and identified on two separate occasions, video files that depicted child pornography. ICAC Task Force agents subsequently identified the IP address associated with the child pornography downloads and obtained a federal search warrant for the house in Hoover, Alabama where Blackburn lived.
In April 2013 agents executed the search warrant and seized computers and other electronic storage devices. A forensic examination of these devices later revealed pornographic images depicting children. According to the plea agreement entered into with the government, Blackburn admitted that he possessed child pornography and agreed to accept a 3-year prison term, to be followed by 10 years of supervised release. Other conditions of release are also specified in the plea agreement, including requiring Blackburn to register as a sex offender.
This case was transferred to the Middle District of Tennessee due to a potential conflict in the Northern District of Alabama which required recusal. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee.
Holiday Man Indicted for Multiple Bank RobberiesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Anthony Maresca (53, Holiday) with five counts of armed bank robbery, one count of armed attempted bank robbery, and three counts of possessing and using a firearm during a crime of violence. The alleged robberies occurred in Pinellas, Pasco, and Hernando counties between November 2014 and May 2015. If convicted on all counts, he faces up to life in federal prison. The indictment also notifies him that the United States intends to forfeit the money he obtained from the robberies, as well as the firearm he used during the offenses.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, the Pasco County Sheriff’s Office, the Hernando County Sheriff’s Office, the Clearwater Police Department, and the Pinellas Park Police Department. It will be prosecuted by Assistant United States Attorneys Michael Leeman and Simon Gaugush.