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18 February 2016
Operation Smokin’ Bones Drug Conspirator Pleads GuiltyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ilian David Gomez Mathews (25, Orlando) today pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. He faces a maximum penalty of 40 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between November 2012 and November 2015, Mathews conspired with others to ship at least 15 kilograms of cocaine through the U.S. mail from Puerto Rico to Orange and Osceola counties for distribution. Mathews admitted to distributing the majority of the cocaine, which was typically between 500 grams and two kilograms per month. As part of the scheme, tens of thousands of dollars were transported as bulk cash back to Puerto Rico, to the cocaine supply source.
In November 2015, federal and local law enforcement arrested five individuals, including Mathews, for drug trafficking, as part of Organized Crime and Drug Trafficking Task Force Operation “Smokin’ Bones.” Those individuals were indicted in December 2015. Mathews is the first defendant to plead guilty. The remaining individuals, Jose Javier Nieves Torres (45, Kissimmee); Dennis Rodriguez De Jesus (38, Kissimmee); Ramon Alberto Castro Ortega (26, St. Cloud); and Hector Manual Sanchez Garay (55, Orlando) are awaiting trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney J. Bishop Ravenel.
Oklahoma Man Pleads Guilty to Making Bomb ThreatRead the Press Release
BEAUMONT, Texas – An Oklahoma man has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Parker Ryan Little, 19, of Wagoner, OK, pleaded guilty in federal court today to charges of making a false bomb threat in an appearance before U.S. Magistrate Judge Keith Giblin.
According to information presented in Court, on April 11, 2015, an emergency call was placed stating that a person who identified himself as “M.S.” had just shot his mother, strapped a bomb to his 21 year old daughter’s chest and was armed with an AR-15. The caller provided an address in Port Neches, Texas. The call was placed from a telephone number that was later determined to be associated with Google Voice, a telephone service that makes calls via the internet. Due to the nature of the call, the Jefferson County SWAT team was dispatched to the address. After approximately two and one half hours, SWAT team members made contact with the occupant of the residence, who had no knowledge or involvement in the alleged incident.
That same night, the Corinth Police Department received a similar call. Corinth Police Officers were dispatched to a home in Shady Shores, Texas, which is located in Denton County. Denton County dispatch received a call from a male stating he had shot his mother, strapped a bomb to his sister and was in possession of a knife and a rifle. The call was placed from the same Google Voice number used to make the emergency call earlier in the day in Port Neches. The Denton bomb squad, the Denton County Sheriff’s Department SWAT and the Texas Rangers responded to the address in Shady Shores. Eventually, two male occupants and one female occupant exited the residence. No evidence of the reported incident was found inside the home. The occupants were determined to have no involvement in the incident.
During the course of the investigation, it was determined that a computer hacker nicknamed “Demon” had been contacting a former resident of the Port Neches address and a resident of the Shady Shores home and making various threats. Investigators, utilizing subpoenas and search warrants, were able to determine that the email address used to initiate the Google Voice account and a register Twitter account @DeMoNTheLord were owned by the defendant, Parker Little. Little used these accounts to harass well known on-line gamers, some of whom had millions of Twitter followers, and attempt to coerce them into following @DeMoNTheLord on Twitter or mention @DeMoNTheLord, a positive light, presumably to help him gain more followers and increase his own stature. If they would not comply with his demands, he would seek revenge on them in various ways, including “swatting” or “doxxing.” “Swatting” has become prevalent among gamers, targeting those who livestream or broadcast themselves and their game play live over the internet. “Swatting” involves the placing of a hoax call to 9-1-1, usually reporting a serious crime such as a hostage situation or active shooter in order to draw a response from law enforcement. “Doxxing” or “doxing” is the Internet-based practice of researching and broadcasting personally identifiable information about an individual, posting it in public forums. Investigators were able to identify at least 7 other victims of Parker’s on-line harassment, some of whom were “swatted” in a manner similar to the victims in Port Neches and Shady Shores.
Little faces a term of imprisonment of not more than 10 years, a fine not to exceed $250,000 or twice the pecuniary loss to the victim or gain to the defendant. He also faces a term of supervised release of not more than three years following his release from custody. A sentencing date has not been determined at this time.
This investigation was conducted by the Federal Bureau of Investigation, the Texas Rangers, the Port Neches Police Department, Jefferson County Sheriff’s Department, the Corinth Police Department and the Denton County Sheriff’s Department. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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Oakmont Man Charged with Financial CrimesRead the Press Release
PITTSBURGH, PA: An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of bankruptcy fraud, money laundering, conspiracy and structuring financial transactions, United States Attorney David J. Hickton announced today.
The five-count indictment, returned on Feb.16, named Louis Lamanna, 50, of Oakmont, Pa.
According to the superseding indictment presented to the court, Lamanna committed bankruptcy fraud when he filed for personal bankruptcy and failed to disclose numerous assets such as open and closed bank accounts, various transfers of funds, and his ownership of a luxury vehicle. The luxury vehicle was ultimately sold, and Lamanna laundered the approximately $32,000 obtained from the sale of the vehicle and hid those proceeds from the bankruptcy court and his creditors. Lamanna also conspired with others to structure more than $170,000 in cash withdrawals from accounts at PNC Bank and First Commonwealth Bank for the purpose of evading currency transaction reporting requirements in a further attempt to hide funds from the bankruptcy court and his creditors.
The law provides for a maximum total sentence of 45 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oakland Resident Sentenced to 12 Months’ Imprisonment in Tax Fraud ConspiracyRead the Press Release
OAKLAND – Tanya Keith was sentenced today to 12 months’ imprisonment for conspiracy to file false federal tax returns, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. Today’s sentence follows Keith’s September 17, 2015, guilty plea to the conspiracy charge.
On January 15, 2015, Keith, 48, of Oakland, was charged in a thirteen-count indictment along with co-defendants, Cassandra Tompkins, 48, of Oakland, Cordia Spearman, 46, of Vacaville; and Damien Mitchell, 52, of El Sobrante. All four defendants were charged with conspiracy to file false federal tax returns, in violation of 18 U.S.C. § 286. Keith was also charged with wire fraud, in violation of 18 U.S.C. § 1343, and aggravated identity theft, in violation of 18 U.S.C. § 1028A. Tompkins and Mitchell faced additional related charges.
Pursuant to her plea agreement, Keith admitted that between January 15, 2011, and May 15, 2012, she, along with Tompkins, Spearman and Mitchell, obtained the names and social security numbers of other individuals and used the information to prepare false federal income tax returns. Keith acknowledged that defendants filed a total of 219 false federal income tax returns with the IRS. Defendants claimed over $678,000 in tax refunds of which $287,498 was paid by the IRS.
All four defendants entered guilty pleas to the conspiracy change. Tompkins, Spearman, and Mitchell pleaded guilty on August 20, 2015. Tompkins acknowledged maintaining notebooks that listed the names and other personal identifying information for taxpayers, along with false W-2s, which she filed with the IRS. Further, all four defendants admitted to receiving a portion of the improperly obtained tax refunds.
Keith’s sentence was handed down by the Honorable James Donato, U.S. District Judge. Judge Donato also sentenced Keith to pay $19,944 in restitution and to serve 3 years of supervised release. Keith will begin serving her sentence on April 18, 2016.
Judge Donato previously sentenced Tompkins and Spearman for their respective roles in the scheme. Judge Donato sentenced Tompkins to 20 months’ imprisonment and Spearman to 3 years of probation, 6 months of which will include electronic monitoring. Mitchell’s sentencing has not yet been scheduled.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
North Carolina Man Pleads Guilty in U.S. Treasury Check SchemeRead the Press Release
A Smithfield, North Carolina, man pleaded guilty today to one count of a dual object conspiracy to defraud the United States and commit theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
According to court documents, Oscar Barahona Fiallos, 52, owned and operated a tax preparation business in Smithfield. In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties. The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina. Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, less a check cashing fee. After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators. He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents.
Fiallos faces a statutory maximum sentence of five years in prison. In his plea agreement, he has agreed to pay restitution to the United States in the amount of $2,802,496. The sentencing hearing is set for June.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Pleads Guilty in Tax Refund Fraud SchemeRead the Press Release
A Raleigh, North Carolina, man pleaded guilty today to one count of conspiracy to commit theft of public money and one count of theft of public money, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina announced.
According to court documents, in 2011 and 2012 Wilfredo Acosta Hidalgo, 47, conspired with check cashers to cash U.S. Treasury refund checks issued as a result of fraudulently-filed income tax returns. Hidalgo provided the check cashers with U.S. Treasury checks issued to third-parties in whose name the fraudulent returns were filed. The check cashers deposited the U.S. Treasury checks into their business bank accounts and provided Hidalgo with cash equal to the value of the U.S. Treasury checks, less a check-cashing fee. The third-party payees were not present when the Treasury checks were cashed.
Hidalgo faces a statutory maximum sentence of five years in prison for the conspiracy charge and 10 years in prison for the charge of theft of public funds. In his plea agreement, he has agreed to pay restitution to the United States in the amount of $4,280,871. Hidalgo’s sentencing has not been scheduled.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Pleads Guilty in Tax Refund Fraud SchemeRead the Press Release
WASHINGTON – A Raleigh, North Carolina, man pleaded guilty today to one count of conspiracy to commit theft of public money and one count of theft of public money, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina announced.
According to court documents, in 2011 and 2012 Wilfredo Acosta Hidalgo, 47, conspired with check cashers to cash U.S. Treasury refund checks issued as a result of fraudulently-filed income tax returns. Hidalgo provided the check cashers with U.S. Treasury checks issued to third-parties in whose name the fraudulent returns were filed. The check cashers deposited the U.S. Treasury checks into their business bank accounts and provided Hidalgo with cash equal to the value of the U.S. Treasury checks, less a check-cashing fee. The third-party payees were not present when the Treasury checks were cashed.
Hidalgo faces a statutory maximum sentence of five years in prison for the conspiracy charge and 10 years in prison for the charge of theft of public funds. In his plea agreement, he has agreed to pay restitution to the United States in the amount of $4,280,871. Hidalgo’s sentencing has not been scheduled.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Sentenced to 42 Months in Prison for ExtortionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KEVAHN THORPE, 25, of Brooklyn, N.Y., was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 42 months of imprisonment, followed by two years of supervised release, for extorting a Connecticut resident last summer.
According to court documents and statements made in court, between June 26 and July 7, 2015, THORPE sent text messages and made phone calls to a Connecticut resident, demanding money and a pair of sneakers from the victim. If the victim failed to comply, THORPE threatened to publish certain information that he knew would damage the victim’s reputation.
On July 7, 2015, the victim met with THORPE at a Manhattan hotel and gave him an envelope with $4,000 cash in it. THORPE was arrested at that time.
On November 4, 2015, THORPE pleaded guilty to two counts of extortion.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New York Attorney Who Defrauded Two International Companies Out of Hundreds of Thousands of Dollars Sentenced to More Than Four Years in PrisonRead the Press Release
TRENTON, N.J. – A New York attorney was sentenced today to 57 months in prison for defrauding two multi-national companies out of hundreds of thousands of dollars by fraudulently billing them for services that were never provided, U.S. Attorney Paul J. Fishman announced.
After a two-week trial before U.S. District Judge Michael Shipp in June 2015, a jury deliberated for three hours before convicting Marijan Cvjeticanin, 52, of St. James, New York, of all nine counts of the indictment charging him with mail fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to the documents filed in this case and the evidence presented at trial:
From September 1996 to September 2012, Cvjeticanin worked for Wildes & Weinberg P.C., a New York law firm specializing in immigration law, first as a paralegal and then as an attorney. Among other clients, the firm represented Automatic Data Processing Inc. (ADP) and Broadridge Financial Solutions Inc. (Broadridge) in connection with various immigration law matters. Cvjeticanin was the case manager handling day-to-day tasks, such as preparing Department of Labor certifications and applications for permanent residency for certain foreign workers of those companies employed in the United States on a temporary basis.
The application process required ADP and Broadridge to place job advertisements in the geographic location where the relevant position was located and demonstrate that there were no minimally qualified United States citizens available to fill that position. Wildes & Weinberg arranged for an independent advertising agency to contract with ADP and Broadridge to place the advertisements.
At some point prior to 2010, Cvjeticanin caused ADP and Broadridge to replace the independent advertising agency with Flowerson Holdings Inc., a/k/a Flowerson Advertising (Flowerson). Unbeknownst to Wildes & Weinberg, ADP, or Broadridge, Cvjeticanin was the owner and principal of Flowerson. From that point until September 2012, Flowerson purportedly handled all of the certification advertisement obligations for ADP and Broadridge. In reality, Cvjeticanin did not place the majority of the advertisements as required and instead pocketed the monies paid to him by ADP and Broadridge.
In September 2012, Wildes & Weinberg learned through a routine audit of employee email accounts that Cvjeticanin owned and controlled Flowerson and fired him. The subsequent investigation revealed that between 2010 and September 2012, ADP and Broadridge collectively paid Flowerson approximately $579,000 for advertisements relating to permanent residency applications. Virtually all of the invoices that Flowerson submitted to ADP and Broadridge included charges for advertisements purportedly placed in Computer World magazine as well as advertisements placed in newspapers such as The New York Times, The Boston Globe, The Star-Ledger, The Seattle Times, and others. However, Cvjeticanin never placed the majority of advertisements. Instead, he kept the money for his personal benefit.
The investigation also revealed that from time to time the government would conduct audits of labor certifications submitted on behalf of ADP and Broadridge and request additional information from the filer, including copies of the print advertisements that had been placed. Cvjeticanin was responsible for gathering the print advertisements responsive to the government audit requests. Because Cvjeticanin had not placed most of the print advertisements, he was unable to provide the copies. Cvjeticanin took out advertisements after he received notice of the audit. Cvjeticanin then fraudulently superimposed those advertisements on a newspaper from another date and made a photocopy, which he submitted to the government. The photocopied submissions purported to show that the relevant advertisements had been placed on the appropriate dates.
In addition, during today’s sentencing proceeding, prosecutors asserted that Cvjeticanin had also been practicing law in the immigration courts after his conviction despite having been suspended from such practice by the U.S. Department of Justice, Executive Office for Immigration Review, Board of Immigration Appeals. Cvjeticanin was suspended from practice before the Board of Immigration Appeals, the immigration courts, and the Department of Homeland Security as of Nov. 2, 2015, because of his felony convictions in this matter. Cvjeticanin was also ordered to notify his clients of his suspension. Nevertheless, Cvjeticanin continued to represent clients before the immigration courts in New York City into 2016. Cvjeticanin is also currently the subject of disbarment proceedings in New York State.
In addition to prison time, Judge Shipp sentenced Cvjeticanin to three years of supervised release and ordered him to forfeit $668,977.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola, Newark Field Office, and the U.S. Department of State Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge David Schnorbus, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Dennis C. Carletta of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey; Thomas Ambrosio, Esq., Lyndhurst, New Jersey
New Orleans Man and His Restaurant Plead Guilty to Employing Unauthorized Aliens and Making False StatementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KE LIAN ZHAO, age 50, of Kenner, pled guilty to employing unauthorized aliens at his restaurant, LA JUMBO CHINA BUFFET (“JUMBO BUFFET”), and JUMBO BUFFET pled guilty to two counts of making false statements to federal agents.
According to court documents, from a time unknown but prior to August 2011 and continuing through March 2015, ZHAO knowingly and unlawfully hired or recruited three aliens for employment in the United States, knowing the aliens were unauthorized, as defined by section (h)(3) of Title 8, United States Code, Section 1324a. After hiring the unauthorized aliens, ZHAO continued to employ them in the United States, knowing that it was unlawful to employ such aliens.
During this time frame, JUMBO BUFFET knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Homeland Security (“DHS”) in response to a Notice of Inspection and administrative subpoena, requesting an inspection of I-9 Forms. When DHS agents requested information about the employees of JUMBO BUFFET working at the restaurant on or about January 16, 2013, JUMBO BUFFET provided false and fictitious documents showing that it only employed Asian workers during this period. In fact, witness interviews, surveillance, and other admissible evidence, including statements from a company representative with authority to bind the company, confirm that JUMBO BUFFET employed Hispanic workers, who were unauthorized aliens as defined by Title 8, United States Code, Section, 1324a(h)(3), and unlawfully employed them at the restaurant.
Further, on or about September 26, 2013, JUMBO BUFFET, knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Labor’s Wage and Hour Division (“WHD”) in response to a Request for Information dated September 18, 2013, notifying JUMBO BUFFET, of the existence of a Fair Labor Standards Act investigation. JUMBO BUFFET did not pay its workers according to the Fair Labor Standards Act. Some employees worked six days a week, for approximately 12 hours per day and did not receive overtime pay or minimum wage. When WHD investigators requested payroll information from JUMBO BUFFET, the company altered payroll documents to make it look as if it had complied with minimum wage and overtime pay requirements, when witness statements, surveillance, and other evidence show that employees worked in excess of a 40 hour work week, without being paid overtime, and were not paid minimum wage.
ZHAO faces a possible penalty of up to six months imprisonment, a fine of up to $3,000 per alien and a special assessment of $100. JUMBO BUFFET faces a possible fine of up to $500,000 and a special assessment of $400. Additionally, ZHAO and JUMBO BUFFET may be found to be jointly and severally liable for $52,305.78 in restitution. U.S. District Judge Jane Triche Milazzo set sentencing for May 19, 2016.
U.S. Attorney Polite praised the work of the U.S. Department of Labor, Wage and Hour Division, the U.S. Department of Labor, Office of Inspector General, the United States Department of Homeland Security, and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Sharan E. Lieberman is in charge of the prosecution.
New Orleans Man Sentenced in Ethylone Drug CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAI VAN TRAN, age 33, of New Orleans, was sentenced yesterday for attempting to possess with intent to distribute almost two kilograms of ethylone.
U.S. District Judge Martin L.C. Feldman sentenced TRAN to 36 months imprisonment, three years of supervised release, and a special assessment of one hundred dollars.
According to court records, on March 19, 2014, the United States Postal Inspection Service in New Orleans identified an International Express Mail parcel from China addressed to a local restaurant that contained approximately two kilograms of ethylone powder. Ethylone, a drug similar to MDMA (“ecstasy” or “molly”), is an isomer of butylone, which was prohibited as a Schedule I drug controlled substance earlier in 2014. Postal Inspectors removed the ethylone from the intercepted parcel and replaced it with two kilograms of a decoy non-drug powder in anticipation of making an undercover delivery of the parcel on the following day. TRAN eventually appeared at the restaurant and received the parcel.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service and the Tactical Diversion Squad of the DEA New Orleans Field Division in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Nebraska Man Sentenced for Counterfeit iPad Return ScamRead the Press Release
BOSTON – A Nebraska man was sentenced yesterday for his role in a conspiracy to purchase genuine Apple iPads from large retail stores, return counterfeit iPads for a full refund, and resell the genuine iPads for cash.
Ernesto Leyva, 27, of Lincoln, Nebraska, formerly of Miami, Florida, was sentenced by District of Nebraska Senior U.S. District Court Judge Richard G. Kopf to 15 months in prison, three years of supervised release and ordered to pay $27,745.33 in restitution.
Leyva was indicted in the District of Massachusetts in July 2015, and subsequently pleaded guilty in October 2015, to one count of conspiracy to traffic in counterfeit goods and transport stolen goods. Co-defendants, Yoan Sanchez Rodriguez, 26, formerly of Hialeah, Florida and Yulaisy Dominguez, 27, formerly of Hialeah, Florida, were also charged in the same conspiracy.
Between December 2012 and December 2013, Leyva engaged in a conspiracy to purchase genuine iPads from Walmart and Target and then return counterfeit iPads to the stores, for a full refund. He would then resell the genuine iPads. The scheme began shortly after Christmas in 2012 and was concentrated on Walmart stores in the Northeast (Massachusetts, New Jersey, New Hampshire, Maine, and Connecticut) between December 2012 and February 2013 and Target stores in Florida in July 2013. The total retail losses to both store chains were over $80,000.
Leyva was arrested in Nebraska in July 2015 and in October 2015 the case was transferred for a plea and sentencing from the District of Massachusetts to the District of Nebraska. Defendants Rodriguez and Dominguez, who are married, are fugitives.
Members of the public who have questions, concerns or information regarding this case or knowledge of the whereabouts of Rodriguez and Dominguez should call 617-748-3274, and messages will be promptly returned.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney’s Office also wishes to thank the United States Attorney’s Office for the District of Nebraska for the role they played in the resolution of the case. This case is being prosecuted by Assistant United States Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit and Assistant United States Attorney William W. Mickle, II from the District of Nebraska.
Nassau County Man Arrested and Federally Charged with Receiving Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Clement Ashford Reeves, Jr. (73, Yulee) has been charged by indictment with receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison and a potential life term of supervision. Reeves was arrested at his residence on February 16, 2016.
This case was investigated by the U.S. Department of Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Woman Charged with Making Twitter ThreatsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Safya Roe Yassin, 38, of Buffalo, Missouri, was charged today with communicating threats of violence over the Internet.
Yassin, a U.S. citizen, was charged in a federal criminal complaint that was filed under seal in the U.S. District Court in Springfield, Missouri, on Feb. 17, 2016. She remains in federal custody pending a detention hearing, which is scheduled for February 23, 2016 at 3:00 p.m.
An affidavit filed in support of the complaint alleges that Yassin maintained several social media accounts, including numerous Twitter accounts and a Facebook account, and used a Twitter account to post a threat against two FBI agents. On Aug. 24, 2015, Yassin allegedly posted the names, residences (city, state and ZIP code) and phone numbers of the two FBI agents under the words, “Wanted to kill.”
According to the affidavit, the threat originated with a Twitter account associated with ISIL. During the investigation, federal investigators identified multiple Twitter accounts allegedly used by Yassin, many of which were suspended by Twitter.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and Abram McGull II of the Western District of Missouri.
Mission Woman Sentenced for Theft of Government PropertyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Theft of Government Property was sentenced on February 16, 2016, by U.S. District Court Judge Roberto A. Lange.
Denise Sanchez, age 21, was sentenced to time served in custody, 2 years of supervised release, $100 special assessment to the Federal Crime Victims Fund, and $1,809.25 restitution.
Denise Sanchez was indicted for Theft of Government Property by a federal grand jury on September 9, 2015. She pled guilty on December 2, 2015.
On August 25, 2015, Sanchez was arrested for being intoxicated while pregnant and was transported to the Indian Health Services Hospital in Rosebud, South Dakota, for a medical evaluation. Sanchez left the hospital and went to the Community Health Representatives Program Building next to the hospital where she stole a microwave and several food items. Sanchez found keys to a Dodge Durango owned by the Community Health Representatives Program and drove away in the vehicle. Sanchez was located in Valentine, Nebraska the following day and the stolen items were recovered.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Sanchez has criminal charges pending in Cherry County, Nebraska, and she will be released to authorities in Cherry County.
Mission Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 16, 2016, by U.S. District Roberto A. Lange.
Julie Little Thunder, age 38, was sentenced to 87 months in custody, 4 years of supervised release, $100 to the Federal Crime Victims Fund and forfeiture of $1,640 in cash.
Little Thunder was indicted by a federal grand jury on May 19, 2015. She pled guilty to the Indictment on December 1, 2015.
On April 9, 2015, a search warrant was executed at Little Thunder’s residence in Todd County, South Dakota. Little Thunder was located in a bedroom in the residence that contained a safe with $1,640 in cash and 34 grams of methamphetamine. The investigation revealed that beginning in 2013, Little Thunder received distributable quantities of methamphetamine from outside suppliers. Little Thunder and her suppliers knew she would distribute the methamphetamine in South Dakota. Over the course of the conspiracy, Little Thunder distributed more than 500 grams of methamphetamine in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorneys Ted McBride and SaraBeth Donovan prosecuted the case.
Little Thunder was immediately turned over to the custody of the U.S. Marshals Service.
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Minnesota Man Indicted for Dealing Firearms without a LicenseRead the Press Release
At Least Three Guns Sold by Feldman Were Recovered From or Connected to Twin Cities Crime Scenes
U.S. Attorney Andrew M. Luger for the District of Minnesota today announced a federal indictment charging Eitan Benjamin Feldman, 28, of Saint Paul, Minnesota, for illegally dealing in firearms without a license and lying on at least nine firearms transaction records. The defendant is expected to appear later today before Magistrate Judge Mayeron in U.S. District Court in Minneapolis, Minnesota.
“There is far too much gun violence in the Twin Cities,” said U.S. Attorney Luger. “Violent crimes involving guns are often committed by people who cannot legally obtain a firearm, but they find a way. According to today’s indictment, Feldman was one of those ways. This defendant engaged in the business of dealing guns without a license. He didn’t conduct background checks on the people to whom he sold the guns and at least three of the guns were connected to Twin Cities crime scenes. Thanks to the dedicated special agents of the ATF, Feldman today is in custody and there is one less backdoor through which potential criminals can get a gun.”
“Today’s arrest should send a message to unlicensed firearm dealers who put the public at risk each time they sell a firearm to a potential criminal,” said Special Agent in Charge James Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) St. Paul Field Division. “They are recklessly circumventing the criminal background check system and it is a crime.”
According to the indictment and documents filed in court, between January 2014 and January 2016, Feldman engaged in a regular pattern and practice of unlawfully dealing in firearms without a license by repeatedly purchasing firearms and offering them for resale within days of getting them. Feldman routinely purchased firearms offered by out-of-state Federal Firearms Licensees (FFLs) through websites such as gunbroker.com, an online firearms auction site. Feldman arranged to have the firearms transferred to L.E. Gun Sales, a FFL in Minnesota, where he received and took possession of the guns after completing and signing the appropriate documentation and submitting to a National Instant Criminal Background System (NICS) check.
According to the indictment and documents filed in court, during the same time period, Feldman regularly listed and offered the same firearms for sale – often at a higher price than what he paid – on armslist.com, a website that allows individuals to list firearms for sale. Of the 41 guns Feldman purchased and re-sold during this time, the average time he actually possessed a gun before offering it for resale was only nine days.
According to the indictment and documents filed in court, Feldman would sometimes include on his for-sale listings on armslist.com a false story indicating that he had actually owned a particular firearm for much longer than he had or concoct a reason why he was then selling the gun. For example, on one listing for a 20-guage pump-action shotgun that Feldman had possessed for only two days before listing on armslist.com, Feldman wrote that he, “is a gun collector, has had the shotgun for two years, never shot it.” On another listing for a .38 caliber handgun that he had possessed for only seven days before listing for resale, Feldman wrote, “bought a couple of years ago but only taken to the range a few times.” In yet another listing for a semiautomatic 9mm carbine rifle that he had possessed for only six days, Feldman claimed that the rifle had been “sitting in [his] closet for a few months” and that he had not fired it for about four months.
According to the indictment and documents filed in court, in July 2015, an ATF Special Agent told Feldman that some of the firearms he had received at L.E. Gun Sales and subsequently sold, had been linked to crime scenes within days of Feldman taking possession of and selling the guns.
According to the indictment and documents filed in court, on April 26, 2015, the Minneapolis Police Department (MPD) recovered a loaded Ruger .380 pistol when responding to a gun-pointing assault. The weapon was submitted for National Integrated Ballistics Information Network (NIBIN) analysis, which showed that the weapon had also been used on March 19, 2015, in a shots-fired incident from which MPD recovered two spent shell casings. Feldman had purchased this same weapon on March 12, 2015, only seven days before the shots-fired incident and 45 days before it was recovered from the gun-pointing crime scene.
According to the indictment and documents filed in court, on May 28, 2015, MPD responded to a narcotics call, during which they recovered a Bersa Thunder .380. This same gun had been purchased by Feldman 18 days earlier on May 10, 2015.
According to the indictment and documents filed in court, on Aug. 25, 2015, Bloomington Police (BPD) identified and stopped several vehicles involved in the transport of at least 50 pounds of marijuana from California to Minnesota. In one of the vehicles, BPD officers recovered a backpack containing two loaded handguns, one of which was a Taurus .38-caliber revolver. One of the suspects admitted that both guns belonged to him and that he had bought the Taurus revolver from a private seller in Minneapolis. That same gun was purchased only three months earlier by Feldman on May 10, 2015.
According to the indictment and documents filed in court, on July 17, 2015, ATF Special Agents executed a search warrant at Feldman’s home in Saint Paul and seized five shotguns. Feldman had completed the transfer of each shotgun at L.E. Gun Sales and had listed and offered each shotgun for resale on armslist.com between two and 25 days of receiving them at L.E. Gun Sales. ATF Special Agents also recovered three firearm bills of sale, showing that Feldman had sold four firearms to three different individuals. Feldman had received the four firearms at L.E. Gun Sales between three and 24 days before reselling them.
According to the indictment and documents filed in court, during at least nine transactions at L.E. Gun Sales in which Feldman received the four firearms seized during the search and 23 other firearms that he offered for resale, he falsely represented his residential address on the Form 4473.
According to the indictment and documents filed in court, on Oct. 2, 2015, ATF Special Agents served Feldman with a written Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law, warning him that his continuous and repetitive firearm-related activity appears to make him an unlicensed “dealer in firearms” and that he should stop immediately or risk criminal prosecution. Despite the warning, Feldman continued his unlawful dealing in firearms on at least eight more occasions.
According to the indictment and documents filed in court, on Dec. 3, 2015, ATF Special Agents made an undercover purchase of a .38-caliber revolver from Feldman, a gun that he had received 10 days prior. The undercover officer paid Feldman $260 in the parking lot of a local shopping mall. Feldman never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Feldman conducted no background check.
According to the indictment and documents filed in court, on Jan. 21, 2016, ATF Special Agents made an undercover purchase of a Hi-Point 9mm semiautomatic carbine rifle from Feldman, a gun that he had received seven days prior. The undercover officer paid Feldman $250 in the parking lot of a local shopping mall. Feldman never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Again, Feldman conducted no background check.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, Saint Paul Police Department and Bloomington Police Department.
Assistant U.S. Attorney Benjamin Bejar for the District of Minnesota is prosecuting the case.
Midland Man Found Guilty of Attempted Murder of Border Patrol AgentRead the Press Release
In Del Rio today, a federal jury found Carl Wayne Wiley guilty of attempted murder of a federal agent, announced United States Attorney Richard L. Durbin, Jr., Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
Wiley was found guilty of one count of attempting to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties, one count of assaulting, resisting, opposing, impeding, or interfering with one or more United States Border Patrol Agents using a deadly or dangerous weapon, and two counts of using and discharging a .45 caliber Ruger revolver during and in relation to the commission of the aforementioned crimes of violence.
According to court records, Wiley was wanted for Murder and Attempted Murder in Midland, TX and was fleeing prosecution. He was originally spotted by Border Patrol Agents in Sanderson, TX in the early morning hours of June 29, 2014. Wiley took agents on a high speed pursuit before crashing his vehicle. He fled on foot into the brush and avoided arrest by stealing an ATV, then a Ford F-350 pickup truck and several firearms from nearby ranches.
On June 30, 2014, an off-duty Comstock Border Patrol Agent observed the Ford F-350 truck traveling east on Highway 90 near the Comstock Border Patrol checkpoint. The vehicle suspiciously and abruptly turned around short of the checkpoint and proceeded west back toward Comstock, TX. Approximately four miles north of Comstock, an agent attempted to conduct a vehicle stop in order to investigate the suspicious activity. When the agent activated the emergency equipment, Wiley crashed through a ranch fence and continued driving further into the ranch. The vehicle came to a stop after colliding with a tree and Wiley absconded on foot into the brush. Wiley led responding agents on a foot pursuit, and when one agent was closing in on him, Wiley shot at him. Wiley continued to evade agents, shooting again at a group of agents as those agents honed in on his position. The agents were eventually able to surround Wiley and successfully apprehended him after a struggle.
“Wiley was a one-man crime wave crashing across the expanse of West Texas as he fled murder and attempted murder charges in Midland. It is a miracle he did not seriously injure any agents or citizens during his rampage. The agents who risked life and limb to catch him are to be commended for their courage and professionalism. This conviction should remove him from the street for some time to come,” stated United States Attorney Richard L. Durbin, Jr.
Wiley faces up to 20 years imprisonment each for the attempted murder charge and the assault charge. He faces a mandatory ten years for the use of a firearm during and in relation to the commission of a crime of violence. The defendant remains in custody pending sentencing, which is scheduled for June 6, 2016.
This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the United States Border Patrol, Val Verde County Sheriff’s Office and the Midland Police Department. Assistant United States Attorneys Ralph Paradiso and Katherine Griffin prosecuted this case on behalf of the Government.
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Mexican Springs Man Sentenced to Twenty Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – David Castillo, 38, an enrolled member of the Navajo Nation who resides in Mexican Springs, N.M., was sentenced today in federal court in Santa Fe, N.M., to 20 years in federal prison for his child sexual abuse conviction. Castillo will be on supervised release for ten years after completing his prison sentence. He also will be required to register as a sex offender.
Castillo was arrested May 17, 2015, on a two-count indictment charging him with aggravated sexual abuse of a child under the age of 12. The indictment alleged that Castillo sexually assaulted a child on a date between May 1, 2006 and Sept. 4, 2006, and again on a date between Dec. 20, 2006 and Jan. 8, 2007. He was charged with committing the two crimes on the Navajo Indian Reservation in McKinley County, N.M.
On Sept. 14, 2015, Castillo pled guilty to a two-count felony information charging him with aggravated sexual abuse. In entering his guilty plea, Castillo admitted sexually assaulting the victim in the summer of 2006, when the victim was eight years old. He also admitted sexually assaulting the victim over the Christmas holiday in 2006, when the victim was nine years old. According to the plea agreement, Castillo sexually assaulted the victim five times during the periods of time on the Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Sarah Mease.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Medford Felon Sentenced to 10 Years Federal Prison for Possessing FirearmRead the Press Release
MEDFORD, Ore. - On Wednesday, February 17, 2016, U.S. District Judge Ann Aiken sentenced Carl Gene Dunlap, 40, of Medford, Oregon, to 10 years in federal prison, following his conviction for being a felon in possession of a firearm. Dunlap’s 10-year sentence is the maximum allowed under federal law. Dunlap was also ordered to serve three years of supervised release after he completes his prison term.
On January 13, 2014, near Central Point, Oregon, Dunlap was showing off a 9mm handgun to an acquaintance when it accidentally discharged, striking the person in the groin. Dunlap fled the scene. The wounded person was rushed to the hospital and survived the gunshot, but did not identify Dunlap as the shooter. Jackson County Sheriff’s deputies collected the spent shell casing and bullet that had passed through the victim. Later that evening, Dunlap was arrested on an unrelated probation violation warrant. That arrest followed a chase in which Dunlap jumped from a moving vehicle and attempted to elude the police on foot. Weeks later, Medford police recovered a 9mm handgun at a Medford motel. The Bureau of Alcohol Tobacco and Firearms Forensic Laboratory matched the spent shell casing found at the scene of the earlier shooting to the seized firearm. Additional investigation revealed Dunlap as the shooter.
Dunlap’s prior felony convictions include coercion, third degree assault, robbery in the third degree, felony attempt to elude, felon in possession of a firearm, unlawful use of a motor vehicle, and 12 separate convictions for possession of methamphetamine. Dunlap also has 17 misdemeanor convictions which include fourth degree assault, resisting arrest, menacing, recklessly endangering another, and misdemeanor attempt to elude.
This case was investigated jointly by the Jackson County Sheriff’s Office, Medford Police Department, Central Point Police Department, and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Logan County woman sentenced for preparing fraudulent tax returnsRead the Press Release
CHARLESTON, W.Va. – A Logan County woman was sentenced to five years of probation, with five months of this sentence to be served on home incarceration, and ordered to pay $188,665 in restitution for a preparing fraudulent tax returns, announced Acting United States Attorney Carol Casto. Maria Antoinette Martin, 64, of Chapmanville, previously pleaded guilty in October 2015 to the federal tax crime.
From 2011 through 2013, Martin admitted to preparing 43 fraudulent tax returns from her home. She falsely claimed Earned Income Tax Credits and Child Tax Credits for her clients, knowing her clients did not qualify for these inflated tax credits. Martin also knew that falsely claiming these tax credits would increase the amount of federal income tax refunds for her clients. Once Martin electronically filed the returns, she received the tax refunds by direct deposit in bank accounts designated by her. Martin then split the tax refunds with her clients. As a result of her fraud, the United States Treasury paid $188,665 in fraudulent refunds.
The Internal Revenue Service’s Criminal Investigation unit conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
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Local Man Sentenced to Prison for Role Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 14 months of incarceration; three years supervised release and was ordered to pay $204,252.16 in restitution on his conviction of fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Derek Holt, 22, of Pittsburgh, PA.
According to the information presented to the court, Derek Holt and his conspirators agreed to defraud account holders at Pittsburgh area banks by a remote deposit, mobile-banking scheme in which Derek Holt and conspirators deposited fictitious checks into victim accounts, and later withdrew cash at the Rivers Casino and ATMs.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF), for conducting the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort is the United States Attorney's Office for the Western District of Pennsylvania, the Department of Homeland Security, the United States Secret Service, the United States Postal Inspection Service, and the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Lexington Man Sentenced 10 Years for Distributing Child PornographyRead the Press Release
LEXINGTON — A 23-year-old Lexington man, who previously admitted to distributing child pornography images on the internet, has been sentenced to ten years in federal prison.
On Wednesday, U.S. Chief District Judge Karen Caldwell sentenced Joshua Gilley, ordered him to serve a lifetime term of supervised release, and ordered that he register as a sex offender, following his release from prison. Under federal law, Gilley must serve at least 85 percent of his sentence.
According to his plea agreement, between 2012 and 2013, Gilley distributed numerous child pornography images to others, via email. Gilley admitted that a search warrant at his home revealed thousands of child pornography images, including more than 900 sexual abuse images of prepubescent children.
The case started when an FBI investigator noticed child pornography images being distributed online. The FBI later traced the source of those images to a computer that was operated by Gilley.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard Marshall, Special Agent in Charge, FBI; Mark Barnard, Chief of Lexington Police; and Rodney Brewer, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI’s Violent Crimes Against Children Section, the Lexington Police, and the Kentucky State Police’s Electronic Crime Branch. Assistant U.S. Attorney David A. Marye prosecuted this case on behalf of the federal government.
KCK Man Charged with Drug TraffickingRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man was indicted Wednesday on federal drug trafficking charges, U.S. Attorney Barry Grissom said.
Damien D. Campbell, 29, Kansas City, Kan., is charged with one count of possession with intent to distribute crack (count one), one count of possession with intent to distribute marijuana (count two), one count of unlawful possession of a firearm in furtherance of drug trafficking (count three), and one count of unlawful possession of a firearm following a felony conviction (count four). The crimes are alleged to have occurred Feb. 3, 2016, in Kansas City, Kan.
An investigator’s affidavit filed in the case alleges officers of the Kansas City (Kansas) Police Department served a search warrant Feb. 3 at Campbell’s residence in the 2900 block of North 63rd in Kansas City, Kan. They seized 26 grams of synthetic marijuana, 127 grams of marijuana, 1.6 grams of crack cocaine, two .40 caliber handguns and more than $38,000 in cash.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on count one, a maximum penalty of five years and a fine up to $250,000 on count two, not less than five years and a fine up to $250,000 on count three, and a maximum penalty of 10 years and a fine up to $250,000 on count four. The Kansas City (Kansas) Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney James Ward is prosecuting.
OTHER GRAND JURY INDICTMENTS
Jose Robles-Trevizo, 50, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 2, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Miguel Parga-Chavez, 44, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 12, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Christian Robert Orr, 42, Osawatomie, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Dec. 21, 2015, in Miami County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indianapolis man convicted in federal court on robbery and firearm chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction of an Indianapolis man for committing two armed robberies at Southside businesses. Robert E. Fox, 35, Indianapolis, was found guilty after a two-day jury trial before U.S. District Judge Jane Magnus-Stinson. Fox was found guilty of two counts of robbery and two counts of using a firearm during and in relation to a crime of violence.
“Reducing violent crime in our communities is one of the highest priorities of my office,” said Minkler. “Those who illegally possess firearms and use them to commit crimes will face the hammer of federal justice.”
On July 30, 2014, Fox entered the White Castle Restaurant in the 2100 block of Shelby Street and pointed a firearm at four employees there ordering them to get on the ground. Fox then took money from the cash register and fled. On August 5, 2014, he entered the Speedway gas station in the 2300 block of East Prospect Street and robbed the clerk at gunpoint taking cash, cigarettes, and the clerk’s mobile phone.
According to Assistant United States Attorneys Matthew J. Lasher and Michelle Brady, Fox faces a minimum of 32 years in federal prison. No future sentencing date has been set.
Guyanese Woman Sentenced to 75 Months for Trafficking in Counterfeit Credit CardsRead the Press Release
ALBANY, NEW YORK – Georgette Jackman, age 37, a citizen of Guyana and former resident of Brooklyn, New York, was sentenced today to serve 75 months in prison for a scheme in which she and others used counterfeit credit cards to purchase more than $400,000 in gift cards from grocery stores.
The announcement was made by U.S. Attorney Richard S. Hartunian and Todd Laster, Special Agent in Charge of the Buffalo Field Office of the U.S. Secret Service.
U.S. District Judge Mae A. D’Agostino sentenced Jackman to 51 months on her convictions for conspiracy to commit access device fraud and trafficking in counterfeit access devices. Judge D’Agostino additionally sentenced Jackman to two years of imprisonment on an aggravated identity theft conviction, which must be served consecutively to the other sentence of imprisonment Jackman received. Jackman, who pleaded guilty in October 2015, also faces deportation from the United States following the completion of her term of imprisonment.
From February 2012 through January 2013, Jackman and co-conspirators Jamese Williams and Terry Nicholas travelled together by car to stores throughout New York, Massachusetts, New Hampshire, Vermont and Connecticut, including approximately 47 Price Chopper grocery stores. During these trips, Jackman provided Williams and Nicholas with hundreds of counterfeit credit cards bearing stolen account numbers and embossed names that did not correspond to the actual account holders whose account numbers were stolen. Williams and Nicholas used these cards to purchase $435,465 worth of gift cards, which they gave to Jackman.
In December 2015, Nicholas and Williams were sentenced to 61 and 57 months in prison, respectively, for their involvement in the conspiracy.
This case was investigated by the U.S. Secret Service and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Golden Grove Inmate Sentenced for Possession of Prison ContrabandRead the Press Release
St. Croix, USVI – Senior District Court Judge Raymond L. Finch sentenced today Rodney Stanley, 30, an inmate at the Golden Grove Adult Correctional Facility on St. Croix, to one month of imprisonment for possession of prison contraband, United States Attorney Ronald W. Sharpe announced. Judge Finch also ordered Woods to serve one year of supervised release and pay a $25 mandatory assessment. By law, the sentence of imprisonment must be consecutive to the sentence he is currently serving for voluntary manslaughter.
On October 9, 2015, Stanley pleaded guilty to one count of possession of prison contraband. As part of his plea, Woods admitted that on November 15, 2012, while he was an inmate at Golden Grove, he possessed a cellular telephone which was hidden in his cell in the head of his mattress. Cellular telephones are prohibited contraband in correctional facilities because they are known to be used by prisoners to intimidate witnesses, orchestrate narcotics transactions, and facilitate other criminal activity, including murders.
The case was investigated by the Virgin Islands Bureau of Corrections and the U.S. Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Rami S. Badawy.
Global Telecommunications Company and Its Subsidiary Charged in Massive Bribery Scheme Involving Uzbek Official; Company to Pay $795 Million in PenaltiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, the Assistant Attorney General for the Criminal Division of the Department of Justice (“DOJ”), Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), and Clark E. Settles, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) Washington, D.C., Field Office, announced today the filing of criminal charges against VimpelCom Limited (“VimpelCom”), the world’s sixth-largest telecommunications company, with securities publicly traded in New York, and its wholly owned Uzbek subsidiary, Unitel LLC (“Unitel”) for conspiring to violate the Foreign Corrupt Practices Act (“FCPA”) by paying more than $114 million in bribes to a government official in Uzbekistan. VimpelCom was also charged with violating the FCPA’s internal control provisions.
Mr. Bharara also announced that in connection with the filed charges, Unitel pleaded guilty today before United States District Judge Edgardo Ramos, and that SDNY and the DOJ entered into a deferred prosecution agreement (“DPA”) with VimpelCom. Pursuant to the DPA, VimpelCom admitted to participating in the charged conspiracy. VimpelCom will pay a total criminal penalty of $230,163,199.20 to the United States, including $40 million in criminal forfeiture. VimpelCom further agreed to implement rigorous internal controls, retain a compliance monitor for a term of three years, and cooperate fully with the Government.
In related proceedings, VimpelCom reached a settlement with the U.S. Securities and Exchange Commission (“SEC”) and the Public Prosecution Service of the Netherlands (“PPS”). Under the terms of its resolution with the SEC, VimpelCom agreed to pay $375 million in disgorgement of profits and prejudgment interest. VimpelCom agreed to pay the PPS a criminal penalty of $230,163,199.20, yielding a total criminal penalty of $460,326,398.40, and a global resolution amount of more than $835 million. SDNY and the DOJ agreed under the DPA to credit the criminal penalty paid to PPS, and the SEC separately agreed to credit the forfeiture amount paid to the United States. Thus, the total of U.S. criminal and regulatory penalties paid by VimpelCom is $795,326,398.40.
DOJ also filed a civil complaint today seeking forfeiture of $550 million held in Swiss bank accounts which represent proceeds of illegal bribes paid, or property involved in the laundering of those payments, to the Uzbek official by VimpelCom and two other telecommunications companies operating in Uzbekistan. A previous complaint filed by DOJ seeks $300 million in proceeds of illegal bribes paid, or property involved in the laundering of those payments, by these companies to the same Uzbek official. In that case, on January 11, 2016, United States District Judge Andrew L. Carter, Jr. entered a partial default judgment against all potential claimants other than the Republic of Uzbekistan. As alleged in the two complaints, the telecommunications companies paid $850 million in bribes to the Uzbek official to obtain and retain the ability to do business in Uzbekistan.
Manhattan U.S. Attorney Preet Bharara said: “Today we mark the resolution of criminal charges and civil proceedings against corrupt corporate entities that made bribery a foundation of their business model. As they have admitted in court filings, VimpelCom, the world’s sixth largest telecommunications company, with securities traded in New York, and its subsidiary, Unitel, built their business in Uzbekistan on over $114 million in bribes funneled to a government official. Those payments, falsely recorded in the company’s books and records, were then laundered through bank accounts and assets around the world, including through accounts in New York.”
Assistant Attorney General Leslie R. Caldwell said: “These cases combine a landmark FCPA resolution for corporate bribery with one of the largest forfeiture actions we have ever brought to recover bribe proceeds from a corrupt government official. The Criminal Division’s FCPA enforcement program and our Kleptocracy Initiative are two sides of the same anti-corruption coin. The FCPA resolution in this case is also one of the most significant coordinated international and multi-agency resolutions in the history of the FCPA, and demonstrates our commitment both to pursuing justice and to bringing about corporate reform.”
IRS-CI Chief Richard Weber said: “Today’s admission of guilt by VimpelCom and Unitel to paying bribes to government officials is a victory for all who fight corruption at all levels. It also demonstrates the skill and tenacity of IRS Criminal Investigation special agents when it comes to delving underneath layers of financial transactions designed to conceal illegal payments for gain. The global economy demands a level playing field for all. When certain VimpelCom and Unitel executives chose to use deception in order to continue this scheme and take advantage of insider knowledge, they also chose to become criminals. IRS-CI pledges to continue our efforts on the international stage to stop corrupt financial schemes such as this one.”
HSI Special Agent in Charge Settles said: “HSI special agents and our law enforcement partners will continue to investigate financial crimes committed by corrupt foreign officials. We will not permit ill-gotten gains to be laundered through U.S. financial markets.”
According to the allegations contained in the criminal Informations and civil complaints, which were filed today in Manhattan federal court, the statement of facts set forth in the DPA, and other publicly available information:
Between approximately 2006 and 2012, VimpelCom and Unitel, through various executives and employees, paid more than $114 million in bribes to illegally obtain telecommunications business in Uzbekistan. The bribes were paid to an Uzbek government official who was a close relative of a high-ranking government official and who exercised influence over Uzbek telecommunications industry regulators. VimpelCom and Unitel structured and concealed the bribes through various payments to a shell company that certain VimpelCom and Unitel management knew was beneficially owned by the foreign official. The bribes were paid on multiple occasions over a period of approximately seven years so that VimpelCom could enter the Uzbek market and Unitel could gain valuable telecom assets and continue operating in Uzbekistan.
Under the direction and control of the Uzbek government official, the more than $114 million in bribery proceeds were laundered through accounts held in Latvia, the United Kingdom, Hong Kong, Ireland, Belgium, Luxembourg, and Switzerland. The illicit funds were transmitted through financial institutions in the Southern District of New York before they were deposited into accounts in those countries.
As a further part of the scheme, VimpelCom falsified its books and records and attempted to conceal and disguise the bribery scheme by classifying payments as equity transactions, consulting agreements, and so-called repudiation agreements and reseller transactions. VimpelCom likewise failed to implement and enforce adequate internal accounting controls, which allowed the bribe payments to occur without detection. Moreover, when the VimpelCom Board of Directors sought FCPA legal opinions assessing corruption risks in the transactions, certain members of VimpelCom management withheld crucial information from outside counsel performing the review, rendering the opinions worthless.
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Unitel was charged, and pleaded guilty to, one count of conspiring to violate the anti-bribery provisions of the FCPA. VimpelCom was charged in a two-count Information with conspiracy to violate the anti-bribery and books and records provisions of the FCPA, and with violating the FCPA’s internal controls provisions.
Mr. Bharara thanked the Fraud Section of the DOJ’s Criminal Division for their collaboration and praised the efforts of IRS-CI, the IRS Global Illicit Financial Team, and HSI in the investigation. He also thanked the SEC’s Division of Enforcement for its significant assistance in the investigation. Mr. Bharara also thanked law enforcement colleagues within the PPS, the Swedish Prosecution Authority, the Office of the Attorney General in Switzerland and the Corruption Prevention and Combating Bureau in Latvia, as well as Belgium, France, Ireland, Luxembourg, Norway and the United Kingdom. Mr. Bharara also thanked the Department of Justice’s Office of International Affairs for its significant assistance in this matter.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the FCPA Unit of the Fraud Section of DOJ’s Criminal Division. Assistant United States Attorney Edward A. Imperatore, Senior Litigation Counsel Nicola Mrazek, and Trial Attorney Ephraim Wernick are in charge of the prosecution. AFMLS Trial Attorney Marie M. Dalton is handling the forfeiture aspects of the case.
Georgia Trader Pleads Guilty to Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
More Than 150,000 Press Releases Stolen from Three Major Newswire Companies, Used to Generate Approximately $30 Million in Illegal Trading Profits
NEWARK, N.J. – Arkadiy Dubovoy, 51, of Alpharetta, Georgia, today admitted his role in an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that allegedly generated approximately $30 million in illegal profits, New Jersey U.S. Attorney Paul J. Fishman announced.
Arkadiy Dubovoy pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging him with conspiracy to commit wire fraud. He was arrested on Aug. 11, 2015, in connection with a federal indictment brought by the District of New Jersey charging five individuals – two computer hackers and three securities traders – in a large-scale, international conspiracy to hack and steal press releases containing confidential nonpublic financial information relating to hundreds of companies traded on the NASDAQ and NYSE from three newswires.
“Today, another defendant pleads guilty to his role in an international plot to loot non-public press releases from three major newswire companies and exploit them for millions in illicit proceeds,” U.S. Attorney Fishman said. “The conviction of Arkadiy Dubovoy, who admitted trading on the stolen information and splitting the profits with hackers in Ukraine, was made possible by the hardworking prosecutors and agents who unraveled this unprecedented scheme.”
“For more than three decades, the Secret Service has been a leader in investigating cybercrimes and protecting the U.S. financial infrastructure,” Joseph P. Clancy, Director of the U.S. Secret Service, said. “This case embodies a vital part of the agency’s integrated mission and the success that we have achieved in investigating these highly complex crimes. There will always be inherent challenges in investigating cybercrime, but the Secret Service is committed to working with our law enforcement and global partners to safeguard the Nation’s financial infrastructure.”
In addition to Arkadiy Dubovoy, the 23-count New Jersey federal indictment charges Ivan Turchynov, 27, Oleksandr Ieremenko, 24, and Pavel Dubovoy, 32, all of Ukraine, and Igor Dubovoy, 28, of Alpharetta, Georgia. The defendants are all charged with wire fraud conspiracy, securities fraud conspiracy, wire fraud, securities fraud, and money laundering conspiracy. Additionally, Ivan Turchynov and Oleksandr Ieremenko are charged with computer fraud conspiracy, computer fraud, and aggravated identity theft. Igor Dubovoy pleaded guilty to his role on Jan. 20, 2016.
The U.S. Attorney’s Office for the Eastern District of New York (EDNY), in a related indictment charged four securities traders: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania, Vladislav Khalupsky, 45, of Brooklyn, New York and Odessa, Ukraine, Leonid Momotok, 47, of Suwanee, Georgia, and Alexander Garkusha, 47, of Cummings and Alpharetta, Georgia. The EDNY defendants are charged with wire fraud conspiracy, securities fraud conspiracy, securities fraud, and money laundering conspiracy. On Dec. 21, 2015, Alexander Garkusha pleaded guilty to Count One of the EDNY indictment charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Between February 2010 and August 2015, Turchynov and Ieremenko, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire. They used a series of targeted cyber-attacks, including “phishing” attacks and SQL injection attacks, to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.
At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.
The hackers shared the stolen releases with the traders using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use the overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email, which was sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases for publicly traded companies from Marketwired and PRN. Trading data obtained over the course of the investigation showed that, after the shopping list was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their trading activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.
The traders traded on stolen press releases containing material nonpublic information about the following publicly traded companies that included, among hundreds of others: Align Technology, Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign, Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
At today’s plea hearing, Arkadiy Dubovoy admitted that when he purchased the stolen press releases from the computer hackers operating in Ukraine, he knew they contained earnings announcements for publicly trading companies that had not yet been made public. Arkadiy Dubovoy also admitted that he sent the releases to either Korchevsky or Khalupsky so that they could review them and determine which trades would be profitable based on the stolen material information.
Arkadiy Dubovoy also admitted that he directed others, including Igor Dubovoy and Korchevsky, to manage the brokerage account he used as part of the scheme. He also admitted that he provided the hackers with access to at least one of his trading accounts so that they could confirm how much money was being made from the stolen information. According to Arkadiy Dubovoy, his arrangement with the hackers gave them approximately 50 percent of any profits resulting from the stolen press releases they provided.
The conspiracy charge to which Arkadiy Dubovoy pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Acting Special Agent in Charge Jeffrey Wood, with the ongoing investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Andrew S. Pak, Daniel Shapiro, David M. Eskew, and Nicholas Grippo of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, Assistant U.S. Attorney Svetlana M. Eisenberg of the General Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: Michael Critchley, Sr., Esq., Michael Critchley, Jr., Esq., Critchley, Kinum & Vazquez, LLC
Former teacher sentenced to nearly five years in prison for child pornographyRead the Press Release
A former school teacher was sentenced to nearly five years in prison for possession of child pornography, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Jacob Garlock, 27, was sentenced to 57 months in prison. He previously pleaded guilty to one count of child pornography.
This case was prosecuted by Assistant U.S. Attorney Michael Sullivan following an investigation by the FBI.
Former Customs and Border Protection Officer Sentenced to Eight Years for Receiving Bribes and Drug TraffickingRead the Press Release
TUCSON– Yesterday, Johnny G. Acosta, 38, of Douglas, Ariz., was sentenced to eight years in prison by U.S. District Judge Cindy K. Jorgenson. Acosta was previously employed as a United States Customs and Border Protection (CBP) Officer at the Douglas, Ariz. Port of Entry, where he began working in 2008. Acosta previously pleaded guilty to felony charges of conspiracy to import more than 1,000 kilograms of marijuana and accepting bribes as a public official.
U.S. Attorney John S. Leonardo stated, “As a port of entry inspector, Acosta served at the front line of America’s effort to keep illicit drugs from flowing into our country. He broke the public trust by succumbing to greed. Corrupt officials like Acosta degrade the public’s faith that their government employees will faithfully execute the laws of the United States. It is a top priority of the U.S. Attorney’s Office and our law enforcement partners to vigilantly protect the integrity of our government. The successful prosecution of Acosta was due to the hard work, perseverance, and ingenuity over the last three years of the Cochise Border Corruption Task Force, which includes the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility, CBP Internal Affairs, Homeland Security Investigations (HSI), and the Douglas Police Department.”
“Those in law enforcement capacities are supposed to uphold our nation’s laws, not willingly break them,” said acting special agent in charge for U.S. Immigration and Customs Enforcement, Office of Professional Responsibility - Western Region, Martin Suarez. “It’s always difficult when the actions of a single officer stain the honor and integrity of law enforcement officers who choose to put their lives on the line in order to uphold the law. Guarding against illegal or unethical behavior is not an option; it’s an obligation we have to the people we serve.”
“This sentencing demonstrates the continued commitment of the FBI and its law enforcement partners to identify and root out corrupt public officials. The FBI takes all allegations of corruption seriously as we hold our public officials to the highest levels of integrity,” stated FBI Special Agent in Charge Douglas G. Price.
Acosta, a lifelong resident of Douglas, spent his entire career with CBP at the Douglas Port of Entry. The investigation led to the indictment of Acosta and five other individuals on an array of drug-related charges. On October 20, 2015, Acosta was arrested by the FBI at the International Border in Nogales, Ariz., as he attempted to flee into Mexico to avoid prosecution.
Two of the co-defendants in the case have pleaded guilty to charges in connection with the conspiracy to import marijuana into the United States. One of those defendants, Ricardo Peralta-Cuevas, was previously sentenced to 37 months in prison. The other defendant is pending sentencing. A third defendant is scheduled to enter a guilty plea on February 22, 2016. The remaining two defendants in the Indictment remain fugitives.
The prosecution was handled by Assistant U.S. Attorney Wallace H. Kleindienst in the Tucson Office.
CASE NUMBER: CR-15-00775-TUC-CKJ
RELEASE NUMBER: 2016-011_Acosta
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Chief Financial Officer Admits to Stealing $1.6 Million from Three EmployersRead the Press Release
Greenbelt, Maryland –Christopher C. Camut, age 53, of Baltimore, Maryland, pleaded guilty today to conspiracy to commit wire fraud arising from a scheme to fraudulently obtain at least $1.6 million from three companies at which he was employed as the chief financial officer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
At various times between January 2007 and August 2014, Camut was the chief financial officer for three companies. Company A is a non-profit organization that develops microbicides that can provide women in developing countries with protection against HIV infection. Company B manufactures products for the medical industry, and Company C develops medical countermeasures against biological and chemical threats.
According to his plea agreement, from January 2008 to May 2014, Camut created false emails, engagement letters, agreements and invoices to make it appear as if financial institutions had provided services to the companies. He caused the companies to issue checks payable to the financial institutions, which Camut then deposited into his personal bank accounts. Over the period of six years, Camut stole at least $1,618,951 from the three companies.
Camut created agreements between coconspirator Kaitlyn Jones and Companies A, B and C, which falsely represented Jones’ profession. Camut caused the three companies to transfer by wire and issue checks payable to Jones, although Jones performed no work for the companies. Camut and Jones shared the proceeds received from the companies.
To facilitate the fraud, Camut repeatedly forged on documents the name and signature of a bank employee, to make it appear as if the bank had performed work for Companies A and C, when it had not. Camut forged the victim’s name over 15 times.
Camut has agreed to forfeit and pay restitution of $1,618,951.
Camut and the government have agreed that if the Court accepts the plea agreement, Camut will be sentenced to 80 months in prison. U.S. District Judge Peter J. Messite has scheduled sentencing for May 19, 2016 at 9:30 a.m.
Kaitlyn Jones, age 48, of Reisterstown, Maryland, pleaded guilty to her participation in the conspiracy and awaits sentencing.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Leah Jo Bressack and David I. Salem, who are prosecuting the case.
Former Bank President IndictedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that an Indictment was filed charging Mark Warne, 46, of Brook, Indiana with ten counts of Bank Fraud and four counts of Identity Theft.
According to the Indictment, Warne, a former President of Community State Bank, allegedly devised a scheme to defraud the bank. Warne allegedly caused Community State Bank to issue over six million dollars in fraudulent loans. Warne is alleged to have obtained the loans using the identities of four known individuals, three of whom were related to Warne and none of whom received any of the proceeds of the loans.
The Indictment further alleges that Warne concealed the loans from bank board members by creating two sets of minutes for the meetings of the board of directors, one for the bank’s board of directors to read and approve and second for the Federal Deposit Insurance Corporation (FDIC) examiners to review. While the minutes shown to the FDIC examiners made it appear as if the bank’s board of directors was aware of the loans, the actual board minutes made no mention of the loans. Warne served as President of Community State Bank from on or about September of 2010 to September of 2015. Warne’s employment with Community State Bank ended after his scheme to defraud the bank was uncovered.
This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Joshua P. Kolar and Abizer Zanzi.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Federal Jury in Sherman Convicts Oklahoma Man for Endangered Species ViolationsRead the Press Release
African Leopard mount shipped in interstate commerce
SHERMAN, Texas – After just over 3 hours of deliberations, a federal jury in Sherman found a Calvin, Oklahoma man guilty of committing Lacey Act and Endangered Species Act violations in connection with the shipment of an African Leopard trophy mount from Oklahoma to the Eastern District of Texas yesterday, announced U.S. Attorney John M. Bales today.
Steven Michael Seibert, 56, is owner-operator of Triple S Wildlife Ranch near Calvin, Oklahoma. Seibert offers guided hunts of domestic and exotic wildlife on this 3,000 acre, high fenced, ranch. Seibert also commercially trades in taxidermy via his website “Wildlife Creations”.
In August of 2012 Agents with U.S. Fish and Wildlife learned that Seibert was offering a full body mount, African Leopard trophy for sale on his website for $3,995.00. African Leopards are listed as an endangered Species under the Endangered Species Act and therefore it is unlawful to offer them for sale in interstate commerce. Fish and Wildlife agents had been in contact with Seibert on previous occasions regarding his international shipments of taxidermy wildlife and so the agents knew that Seibert was aware of the restrictions on trading in endangered species.
Agents contacted Seibert in an undercover capacity posing as Denton, Texas resident interested in purchasing the leopard mount. Seibert told the “buyer” that although the leopard trophy was in his inventory in Oklahoma, he could sell the leopard to a Texan so long as they could “keep it straight” that the leopard was actually being sold by another Texas resident in Bonham. On August 13, 2012, Seibert’s delivery driver delivered the leopard to the undercover agent at a self-storage unit in Denton, Texas. The driver also presented an invoice that indicated that the seller was a Bonham, Texas resident. When questioned by agents, the driver advised that Seibert had instructed him to tell “anyone who asked” that the leopard had come from Bonham, Texas. Agents called Seibert and claimed that they had just learned about the leopard transaction and asked him explain it. Seibert claimed that the leopard had come from Bonham, Texas and had “never left Texas.” Agents knew this to be false because they had conducted surveillance on the delivery truck from the ranch in Oklahoma all the way to Denton, Texas.
Seibert testified at trial that the leopard he sold to the undercover agent was actually owned by the Bonham resident who had purchased it at an auction in Ft. Worth, Texas in 2011. Seibert told the jury that he was only “helping” the Bonham man sell the leopard. However, the Bonham resident told the jury that it was Seibert who had purchased the leopard at the Ft. Worth auction and that he had no financial interest in it whatsoever. The government offered evidence that the leopard purchased at the Ft. Worth auction was actually a different leopard and that the leopard Seibert had sold to the undercover agent had been at Seibert’s hunting lodge since at least January of 2010.The jury also found that the false invoice Seibert had prepared was a Lacey Act violation. The Lacey Act prohibits the use of a false label in connection with the sale of wildlife in interstate commerce.
Seibert is facing up to five years in prison and a $250,000.00 fine. A sentencing date has not been set.
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement in Ft. Worth, Texas, and was prosecuted by Assistant U.S. Attorney Jim Noble.
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Federal Judge Sentences Coin and Precious Metals Dealer and His Company for Defrauding over 380 Customers NationwideRead the Press Release
CHARLOTTE, N.C. – A coin and precious metals dealer and his company responsible for defrauding more than 380 customers of over $15 million were sentenced in federal court late Wednesday, February 17, 2016, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. sentenced Hannes Tulving, Jr., 60, of Newport Beach, California to 30 months in prison and three years of supervised release. The company was ordered to pay a $10 million fine and was placed on a probationary period of two years. Judge Cogburn reserved his ruling on the amount of restitution owed by Tulving and the company for 90 days.
Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and statements made in court, Hannes Tulving was the sole owner, shareholder and president of The Tulving Company, Inc. (Tulving Co.), a California-based business that sold coins, bullion, and other precious metals over the Internet. Court records show that from about August 2013 to January 2014, Tulving and his company executed a scheme to defraud customers nationwide by inducing them to place orders for coins and other merchandise knowing those orders could not be fulfilled. Court records show that the customers paid for the merchandise expecting their orders to be delivered within a certain time frame as advertised on the company’s website.
Court documents show that Tulving and his company accepted the customers’ payments but failed to deliver some of the merchandise. Instead, they diverted the customers’ payments to fulfill other customers’ orders, to pay company debts and to return the money to previous customers who did not receive their merchandise. According to court documents filed in the case, the defendants defrauded more than 380 victims nationwide of over $15 million. Hannes Tulving and the Tulving Co. each pleaded guilty to one count of wire fraud in August 2015.
In handing down Tulving’s sentence, Judge Cogburn noted what a staggering amount of money was stolen from the victims in such a short period of time. He also noted the seriousness of the offense and said that, “People were seriously harmed and their lives are affected. These people saved up money and they were hurt.”
Hannes Tulving will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The U.S. Secret Service handled the investigation. Assistant U.S. Attorney Kevin Zolot prosecuted this case.
Federal Judge Sentences Buncombe Co. Man to Nine Months in Prison for Tax EvasionRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Jarrett D. Mitchem, 66, of Hendersonville, N.C. to 9 months in prison on tax evasion charges, Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Mitchem was also ordered to serve 2 years under court supervision after he is released from prison, plus an additional 3 months of home confinement. The court ordered that he pay $151,089 as restitution to the Department of Treasury.
U.S. Attorney Rose is joined in making today’s announcement Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
“Hiding money in secret offshore accounts and failing to report the income generated from those accounts is a crime that my office takes very seriously. Tax cheats like Mitchem who choose not to pay their fair share and increase the burden on honest taxpayers will be prosecuted for their actions. Citizens must ask themselves, is it worth a stint in federal prison to be a tax cheat?” said U.S. Attorney Rose.
“The Internal Revenue Service, Criminal Investigation is committed to ensuring respect for our laws; particularly with taxpayers who would use Swiss banks to conceal their foreign investments and income,” said IRS-CI Special Agent in Charge Holloman.
In February 2009, the Union Bank of Switzerland (UBS) entered into a deferred prosecution agreement with the United States on charges of conspiring to defraud the United States by impeding the IRS, by helping U.S. taxpayer clients hide funds from the IRS in secret offshore accounts. As part of its deferred prosecution agreement, UBS also agreed to provide to the government the identities of, and account information for, of persons who likely had engaged in actions designed to evade United States income tax liabilities, including Mitchem’s.
According to court records, beginning on or about November 1995, Mitchem opened a Swiss bank account at UBS. Court records show that in 2005, Mitchem transferred to his UBS account approximately $4 million he inherited from his parents, who also maintained a bank account at UBS.
Court documents indicate that in or about May 2011 an IRS revenue agent contacted Mitchem regarding the UBS accounts. According to court records, Mitchem initially withheld some information pertaining to his UBS accounts but agreed to provide the UBS bank records after he was confronted by the IRS agent. However, court records show that Mitchem only provided bank records for his parents’ UBS account and not his personal UBS account.
In November 2011, Mitchem filed his federal tax return forms for tax years 2004 through 2007, in which he failed to claim capital gains and substantial interest income from money held in his UBS bank account. Mitchem admitted in court and in filed documents that he knew his earnings should have been claimed and that he willfully omitted reporting them to avoid the payment of additional income tax. Mitchem also admitted that the tax loss associated with the unclaimed income from his Swiss bank account is over $150,000.
Mitchem will be ordered to report to the Federal Bureau of Prison upon designation of a designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS-CI. The case was prosecuted by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville.
Farmington Man Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Ulibarri, 29, of Farmington, N.M., made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. Ulibarri remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow.
Ulibarri was arrested yesterday by the Bureau of Alcohol, Tobacco, Firearms and Explosives for unlawfully possessing a firearm and ammunition in San Juan County, N.M., on Aug. 15, 2015. The criminal complaint alleges that on that day, officers of the Farmington Police Department responded to a restaurant in Farmington after receiving a report that Ulibarri carried a rifle into the restaurant. The officers located Ulibarri in the restaurant; he allegedly was holding a rifle, which he refused to drop despite repeated commands from the officers. The complaint alleges that an officer had to forcibly remove the rifle, which was loaded with four rounds of ammunition, from Ulibarri.
The criminal complaint states that Ulibarri was prohibited from possessing firearms or ammunition on Aug. 15, 2015, because of his status as a convicted felon. Ulibarri previously had been convicted of residential burglary, larceny and criminal damage to property in the 11th Judicial District Court for the State of New Mexico.
Ulibarri was arrested on related state charges on Aug. 15, 2015. Those charges have been dismissed in favor of federal prosecution.
If convicted of the crime charged in the criminal complaint, Ulibarri faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Farmington Police Department, with assistance from the 11th Judicial District Attorney’s Office. Assistant U.S. Attorney Jacob A. Wishard is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including San Juan County, under this initiative.
Eight Federally Charged as Part of Violent Crime InitiativeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest of eight defendants on federal firearms and drug charges (see chart below). Penalties for the various offenses range from 5 to 40 years’ imprisonment. The arrests are the result of a violent crime initiative being jointly undertaken by the United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hillsborough County Sheriff’s Office (HCSO).
“Fighting violent crime is a top priority of my Office,” said U.S. Attorney Bentley. “We’re doing that by prosecuting felons possessing firearms and drug traffickers in the areas most victimized by violent crime. We’re very grateful for the hard work and dedication of ATF and our tremendous local partners, the Hillsborough County Sheriff’s Office and the Hillsborough County State Attorney’s Office.”
“ATF will continue to work with our law enforcement partners and commit personnel and specialized resources in order to remove from our community individuals that use a gun to commit acts of violence,” said Special Agent in Charge Regina Lombardo, ATF-Tampa.
"Due to the increase in violent crimes involving firearms around the country, it is critical that we address these issues immediately through a variety of enforcement efforts. One effective measure are joint operations such as this, where we can optimize our manpower and strategically focus on offenders who put the citizens in our county in danger," stated Colonel Donna Lusczynski of the Hillsborough County Sheriff’s Office.
An indictment is merely a formal charge that a defendant has committed violations of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. They will be prosecuted by Assistant United States Attorneys Natalie Hirt Adams, Michael Leeman, Shauna Hale, Taylor Stout, and Carlton C. Gammons.
These cases are prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to combat violent crime in our communities.
East Hampton Man Pleads Guilty to Using Computer to Entice Minors to Engage in Sexual ActivityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, announced that KEITH HAESSLY, 46, of East Hampton, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to using a computer to persuade minors to engage in unlawful sexual activity.
According to court documents and statements made in court, between approximately August 2013 and June 2015, HAESSLY, using video chat programs such as Skype and Omegle, posed as a young female and used previously-recorded videos of females to entice numerous boys to engage in sexual activity over webcams. HAESSLY then made recordings of the boys engaged in sexual activity, and distributed some of the images he recorded to an individual in Virginia.
To date, investigators have identified 48 individual victims. The effort to identify additional victims is ongoing.
HAESSLY has been detained since his arrest on June 3, 2015. At the time of his arrest, he was a member of the Connecticut Air National Guard.
HAESSLY pleaded guilty to one count of use of an interstate facility to persuade a minor to engage in unlawful sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years, a maximum term of imprisonment of life and a fine of up to $250,000. A sentencing date is not yet scheduled.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, with the assistance of the Connecticut Air National Guard Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on February 16, 2016, by U.S. District Judge Roberto A. Lange.
Andrew High Bear, age 38, was sentenced to 5 months in custody, 2 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund.
High Bear was indicted for Assault with a Dangerous Weapon and Assault Resulting in Substantial Bodily Injury to an Intimate Partner by a federal grand jury on August 11, 2015. He pled guilty to Assault Resulting in Substantial Bodily Injury to an Intimate Partner on November 30, 2015.
The conviction arose from a May 21, 2015, incident at Eagle Butte, SD, when the victim said something that angered High Bear. High Bear went to strike the victim as she lay on the bed. To shield herself, the victim rolled on her side and put her arms over her head. High Bear hit the victim at least twice on the back of the head so hard that each time she was hit, the victim saw a flash of light. Her head began to bleed. Because she was facing away from High Bear, the victim was unable to see if High Bear had an object or weapon in his hand while he was hitting her. When the victim attempted to flee, High Bear grabbed her arm to stop her, causing bruising on her upper right arm. The victim pulled away and went to a neighbor’s house to call for help. When the Cheyenne River Sioux Tribe Police responded and entered the apartment, they saw a sharp spoon lying on the ground with what appeared to be blood on it. The victim had a laceration to the back of her head.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
High Bear was immediately turned over to the custody of the U.S. Marshals Service.
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Drunk Driver Sentenced to Three Years in Prison for Manslaughter in Fatal Car CrashRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Carlos Arnulfo Chacon Chacon, age 42, of Laurel, Maryland today to three years in prison followed by one year of supervised release for manslaughter by vehicle – criminal negligence, driving under the influence of alcohol, driving an uninsured vehicle, reckless driving, and failure to drive in a single lane charges.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to his plea agreement, at about midnight on February 1, 2014, Chacon Chacon, who was in the United States illegally, was driving a Toyota Celica northbound on the Baltimore-Washington Parkway. Two motorists noticed that he was driving erratically, weaving across the road and leaving the travel lanes as he went onto the shoulder. They called 911. As one of the witnesses was speaking with the 911 operator, Chacon Chacon crashed his car into a Mitsubishi traveling northbound in the right lane, on a straight area of the highway.
The Mitsubishi went over a stone wall and then went airborne, striking a tree and causing its roof to collapse down into the passenger compartment. Chacon Chacon’s car struck the stone wall, spun around, and struck the stone wall a second time, finally coming to rest partially in the highway, perpendicular to oncoming traffic.
At the accident scene, Chacon Chacon was able to walk away from his vehicle and spoke with police and emergency medical technicians. He twice declined medical treatment and admitted to drinking six beers shortly before driving. He was under the influence of alcohol, with a blood-alcohol level of .17 percent. A case of beer was in the back seat of his car. His car was not insured.
Emergency medical services cut open the Mitsubishi and extracted the driver, Yolanda Michelle Holt, age 36, of Columbia, Maryland, who sustained extreme head trauma and experienced cardiac arrest. Ms. Holt remained hospitalized in a coma for nearly eight months and died on September 22, 2014. Ms. Holt, a District of Columbia public school employee, left behind three children.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Gustav William Eyler, of the U.S. Justice Department, who prosecuted the case.
District Man Found Guilty of Beating a Man and Joining in Slashing a Good Samaritan Who Attempted to Stop the AttackRead the Press Release
WASHINGTON – Frank G. Smith, 34, of Washington, D.C., has been found guilty by a jury of aggravated assault and simple assault for his role in the attack of two men that took place in December 2013 near the entrance to the U Street Metro station in Northwest Washington, U.S. Attorney Channing D. Phillips announced today.
Smith was found guilty on Feb. 17, 2016, following a trial in the Superior Court of the District of Columbia. The Honorable Florence Pan scheduled sentencing for April 22, 2016.
According to the government’s evidence, in the early morning hours of Dec. 21, 2013, Smith and others attacked a man who had been involved in a traffic dispute with one of Smith’s friends. That man was taken down to the ground near the U Street Metro entrance, at 10th and U Streets NW, and Smith and his friends began kicking him as he lay on the ground defenseless.
A second man, the Good Samaritan, saw the beating taking place. He yelled at Smith and Smith’s friends to stop kicking the man on the ground, who appeared unconscious. When they refused to stop, the Good Samaritan intervened by pushing Smith and the others away from the man on the ground. One of Smith’s friends then began fighting with the Good Samaritan. As the Good Samaritan separated from his first attacker, he noticed that he was cut and bleeding across the right side of his chest. Smith then continued attacking him, at which point the Good Samaritan felt and saw that his left hand had been cut to the bone between his index finger and thumb. As the police arrived on the scene, Smith stopped his attack and attempted to walk away, but he was stopped by the police and identified at the scene by the victim who was cut.
No knife or sharp object was recovered from Smith, but he had blood on his face and clothes. Subsequent DNA analysis revealed that the Good Samaritan’s DNA was found on Smith’s clothes.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by Bode Technologies. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Paralegal Specialists Lynda Randolph, Donville Drummond, and Allison Daniels; Criminal Investigator Melissa Matthews; Litigation Technology Supervisor Joshua Ellen; and Assistant U.S. Attorneys Patricia A. Riley and Chrisellen Kolb. Finally, he praised the work of former Assistant U.S. Attorney Kathleen Connolly, who secured the indictment, and Assistant U.S. Attorneys Laura Crane and Fernando Campoamor-Sanchez, who tried the case.
Department of Justice and Federal Trade Commission Encourage Massachusetts to Consider Expanding Treatment Options for GlaucomaRead the Press Release
Agencies Submit Joint Statement Regarding Proposed Legislation Addressing Glaucoma Care by Optometrists in Massachusetts
The Department of Justice’s Antitrust Division and the Federal Trade Commission (FTC) have issued a joint statement encouraging the Massachusetts legislature to consider expanding the services that optometrists can provide to glaucoma patients. The statement describes the potential benefits to patients of enhanced competition among glaucoma care providers, including greater access to timely and cost competitive care. It recommends that the legislature only maintain restrictions on the ability of optometrists to treat glaucoma that are necessary to ensure patient health and safety.
The joint statement is in response to a request by Massachusetts State Representative Bradley H. Jones for views on the possible competitive effects of Massachusetts House Bill 1973 (HB 1973), which would expand the scope of practice for optometrists in Massachusetts and permit them to treat glaucoma and other optical diseases.
“Patients suffering from glaucoma – which affects 2.7 million Americans nation-wide – deserve safe, effective and affordable treatment options,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “As our statement explains, increasing competition among glaucoma care providers in Massachusetts, consistent with patient safety, can help provide greater access to care that is also more timely and cost competitive.”
The agencies’ comments are limited to HB 1973’s effect on glaucoma care. Glaucoma is the second leading cause of blindness worldwide, but early diagnosis and managed treatment offer protection against the risk of vision loss or blindness. With respect to glaucoma care, HB 1973 would allow optometrists in Massachusetts – like optometrists in other states – to treat glaucoma patients using medications, subject to certain training and referral requirements. Providing optometrists a role in glaucoma care, with conditions the legislature finds appropriate to ensure patient safety, has the potential benefit to bring the benefits of competition to Massachusetts health care consumers.
Dallas Man Sentenced to 13 Months in Federal Prison for Aiming Laser Pointer at a DPS HelicopterRead the Press Release
DALLAS — Orlando Jose Chapa, 37, of Dallas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 13 months in federal prison following his guilty plea in November 2015 to indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney John Parker of the Northern District of Texas.
Chapa, who is on bond, was ordered to surrender to the Bureau of Prisons on March 24, 2016.
According to documents filed in the case, on or about May 30, 2015, in the Dallas Division of the Northern District of Texas, Chapa knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter and at the flight path of that aircraft. Chapa aimed the laser at the helicopter from his driveway as it was flying overhead.
The FBI, Texas DPS and the Dallas Police Department investigated. Special Assistant U.S. Attorney Lara Burns prosecuted the case.
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Couple Sentenced for Production of Child PornographyRead 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 Alfred Dasilva, 47, of Greece, NY and Sharon Sexton, 46, of Gates, NY, who were convicted of production of child pornography were sentenced by Chief U.S. District Court Judge Frank P. Geraci. Dasilva received 250 months in prison and Sexton 190 month in prison. Both defendants were also sentenced to 25 years supervised release and will have to register as sex offenders upon release from prison.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the investigation began when a school resource officer employed by the Gates Police Department was informed by a school official that Sexton was taking nude photos of a female student. The ensuing investigation determined that Sexton sent these photos to her boyfriend, Alfred Dasilva. Sexton was interviewed by law enforcement and admitted to both taking the photos and then sending them to Dasilva. She told officers that she took the photos and sent them to Dasilva because he asked her to, and that Dasilva used the naked photos to “fantasize.”Federal investigators examined Dasilva’s cellphone and also located a video of a child performing oral sex on Dasilva. Sexton admitted to being the person who took the video. Several online chats were also recovered from the cellphone in which Sexton and Dasilva graphically discussed engaging in sexual conduct with children.
The defendants were also charged in State Court related to sexual activity with a child and endangering the welfare of a child. Those charge remain pending.
The sentencings are the culmination of a joint investigation by the Gates Police Department and the Federal Bureau of Investigation Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
Convicted felon sentenced for possessing “zip” guns and ammunitionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Bossier City man was sentenced Wednesday to 77 months in prison for illegally possessing ammunition.
Sidney Joseph Patterson, 45, of Bossier City, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of ammunition by a convicted felon. He was also sentenced to serve three years of supervised release. According to the October 1, 2015 guilty plea, Bossier Parish Sheriff’s deputies began investigating the January 9, 2015 discharge of a homemade “zip gun” firearm at Patterson’s residence, which wounded Patterson in the back. Found at the residence was the discharged zip gun and three other zip guns loaded with two rounds of 12 gauge shotgun ammunition and one round of .380 caliber ammunition. Prior to this offense, Patterson had other felony drug convictions.
A “zip gun” is an improvised firearm not manufactured by a firearms manufacturer or gunsmith, ranging in quality from crude weapons that are as much a danger to the user as the target, to high-quality arms.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and the Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Convicted Murderer and Known Gang Member Among Two Guilty for Gun Crimes After TrialsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced guilty verdicts in two separate gun-related trials that each concluded on Wednesday, February 17, 2016. Antuan Rochelle Gaines, 36, of Little Rock was found guilty by a jury of being a felon in possession of a firearm, and Justin Patrick Stegall, 30, of Benton, was found guilty by a jury for being in possession of an unregistered short-barreled rifle. United States District Judge Kristine G. Baker presided over the two-day trial of Gaines and United States District Court Judge Billy Roy Wilson presided over the two-day trial of Stegall.
According to evidence presented at trial, on November 4, 2013, Little Rock Police Department homicide detectives and other uniformed officers approached Gaines and six other known members of the Highland Park Pirus—a Blood-affiliated gang in central Arkansas—in the parking lot adjacent to Ugly Mike’s Records on 12th Street to attempt to conduct interviews in connection with the homicide of Marcus Hunter. When Little Rock Patrol Officer Charles Starratt got out of his patrol car, he saw Gaines reach toward his waist band and bend down behind a car. He then heard the sound of metal hitting the asphalt.
When Officer Starratt searched behind the car he found a loaded Kimber, .45 caliber pistol. The pistol had been reported stolen after a residential burglary a few months prior. Gaines, who has a prior conviction for first-degree murder in Case No. CR-94-1194 in Pulaski County Circuit Court, was indicted on July 2, 2014, for being a felon in possession of a firearm.
As presented during the Stegall trial, on September 10, 2013, Stegall was discovered to have a loaded, unregistered short barreled in his vehicle, which was located in a shopping center in Benton. Benton Police Department officers had responded to the scene to locate the vehicle after dispatch received a call from a driver who reported that a man had flashed a gun at him in a road rage incident. A vehicle matching the description given by the victim was seen driving into the shopping center. An employee of one of the stores informed the responding officers that she noticed the vehicle because it zoomed through a shopping center parking lot crowded with children and families, which she thought was dangerous.
This employee then directed police to a neighboring restaurant where they located Stegall, the driver of the vehicle. After Stegall’s arrest officers found the loaded, unregistered short barreled rifle, along with seven other firearms in his vehicle.
Gaines’ sentencing will be scheduled by the Court at a later date. Stegall is set to be sentenced on May 19, 2016. Both defendants face a statutory maximum penalty of 10 years in the Bureau of Prisons and a fine of up to $250,000.
The Gaines case was investigated by the Little Rock Police Department and prosecuted by Assistant United States Attorneys Benecia B. Moore and Julie Peters. The Stegall case was investigated by the Benton Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives and prosecuted by Assistant United States Attorneys Edward Walker and Erin O’Leary.
Concord Man Sentenced on Firearm ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE: Nicholas Ethier, 36, of Concord, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire for possession of a firearm by a convicted felon in violation of federal law, announced United States Attorney Emily Gray Rice. The Court imposed a term of 37 months’ imprisonment, followed by three years of supervised release.
During the early morning hours of January 28, 2015, Ethier got into an argument with his neighbor and fired a weapon out the front door of his residence in Concord, New Hampshire. The Bureau of Alcohol Tobacco and Firearms classified the weapon Ethier fired as a .32 caliber machinegun. No one was harmed in the incident. The Concord Police Department obtained a search warrant for Ethier’s apartment and found ammunition in the residence. Ethier was prohibited from possessing a firearm or ammunition because he was previously convicted of reckless conduct, a felony punishable by imprisonment for a term exceeding one year.
“The extremely dangerous conduct of the defendant, the discharge of a machinegun in a downtown Concord neighborhood, underscores the importance of ensuring that prohibited persons do not possess firearms,” stated United States Attorney Emily Gray Rice. “Our office will continue to combat the threat posed when convicted felons possess firearms.”
This case was investigated by the Concord Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
Coeur d'Alene Tribal Man Charged with Aggravated Sexual AssaultRead the Press Release
COEUR D'ALENE - Jeremy J. Bohlman, 37, who lived on the Coeur d’Alene Indian Reservation, was arrested yesterday on charges of aggravated sexual assault, U.S. Attorney Wendy J. Olson announced. Bohlman was indicted by a federal grand jury on December 15, 2015.
The indictment alleges Bohlman, a tribal member, knowingly caused the victim to engage in a sex act by use of force against the victim. It is further alleged that Bohlman was previously convicted of a sex offense.
Aggravated sexual assault is punishable by up to life in prison, a $250,000 fine, and supervised release up to life.
The case is being investigated by Federal Bureau of Investigation (FBI) and Coeur d’Alene Tribal Police.
An Indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chelsea Produce Distributor Sentenced for Filing False Insurance ClaimsRead the Press Release
BOSTON – A Chelsea produce distributor was sentenced in U.S. District Court today for defrauding his insurance companies by submitting bogus claims.
John S. “Yanni” Alphas, 56, of Weston was sentenced by U.S. District Judge Douglas P. Woodlock to 15 months in prison to be followed by three years of supervised release. He was ordered to pay $160,876 in restitution and a fine of $60,000. Alphas pleaded guilty to one count of wire fraud in August 2014.
Alphas is the president of The Alphas Company, a wholesale distributor of produce that operates out of the Chelsea Produce Market in Massachusetts. Between 2007 and 2011, Alphas submitted ten fraudulent insurance claims for produce shipments that he said had been lost en route, had been stolen, or had arrived spoiled, frozen, or in otherwise unusable condition. In most instances, however, Alphas had suffered no losses at all; his produce had arrived in usable condition. On the other occasions, Alphas inflated his actual losses, sometimes by tens of thousands of dollars.
In total, the Court found Alphas sought insurance payments that exceeded his actual losses by approximately $450,000. Of that amount, his insurers paid him approximately $178,000, although he had only suffered approximately $19,000 in legitimate losses on the relevant insurance claims.
When imposing sentence, the Court also took into account a separate false statement that Alphas made during the course of the sentencing proceedings. While proceedings were underway, Alphas submitted a license application to the United States Department of Agriculture in which he falsely certified that he had never been convicted of a felony in federal court. The Court found that this misrepresentation to a government agency merited an additional three months of incarceration beyond what the Court would have imposed for the underlying insurance fraud.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided by the Massachusetts Insurance Fraud Bureau. The case is being prosecuted by Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.