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Thursday 17 December 2015
Modesto Man Indicted for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging Javier Haro, 34, of Modesto, with being a felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Modesto Police Department. Assistant United States Attorney Daniel Griffin is prosecuting the case.
According to court documents, on July 27, 2015, Haro was in possession of a Glock 9 mm handgun, a Smith and Wesson 9 mm handgun and 9 mm ammunition. The indictment alleges that Haro has prior felony convictions.
If convicted, Haro faces a maximum statutory penalty for each count of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Missouri man charged with drug trafficking, unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Casey Tyler Nagy, 28, originally of Missouri, with distribution of LSD and unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Nagy is alleged to have distributed lysergic acid diethylamide (LSD) in June 2015 in Wetzel County, West Virginia while in unlawful possession of a firearm. Nagy was convicted of the felony offense of “Distribution of Marijuana” in the Criminal District Court of Orleans Parish, Louisiana. As a result of that conviction, he is prohibited from possessing a firearm. At the time of the purported drug offense in June 2015, Nagy was allegedly discovered in unlawful possession of a .303 caliber rifle.
Nagy is charged with one count of “Distribution of LSD,” for which he faces up to 10 years in prison and a fine of up to $500,000. He is further charted with one count of “Felon in Possession of a Firearm,” for which he faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Martinsville Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Millington Man Sentenced to 25 Years for Running Teen Sex Trafficking RingRead the Press Release
Memphis, TN – A 51-year-old Millington man who trafficked multiple underage teens for sex has been sentenced to serve a quarter-century in prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
"Trafficking the bodies of minors for financial gain is reprehensible and will not be tolerated," said U.S. Attorney Stanton. "Michael Lilley found this out the hard way. His deplorable actions have earned him a quarter-century sentence in federal prison with no chance of parole."
According to information presented in court, from May to September 2013, Lilley had four minors engage in commercial sex acts out of his Millington home, backhouse, van, and other locations. The victims were 15-, 16-, and 17-year-old students, some of whom attended Millington-area high schools.
Lilley used text messages and explicit photos of the teens to market them to various males willing to pay for sex. In addition to trafficking the victims out of his residence and vehicle, Lilley transported the juveniles to local restaurants and homes where they would engage in commercial sex acts. Lilley collected the proceeds provided from patrons, splitting them with the victims.
According to court information, the teens were trafficked for as little as $60 per sexual endeavor. Text messages disclosing conversations between Lilley and clients regarding price ranges were displayed in court.
Physical evidence presented during Lilley’s trial in September 2015 included images of both used and unused condoms and condom wrappers throughout his home and vehicle. Trafficking victims testified, recollecting their experiences working for Lilley while underage teens.
On September 22, 2015, a jury found Lilley guilty of four counts of sex trafficking of a minor; one count of conspiracy to commit sex trafficking; three counts of sexually exploiting a minor; one count of attempting to sexually exploit a minor; three counts of distributing visual depictions of a minor engaged in sexually explicit conduct; and one count of possessing at least one digital storage device containing visual depictions of minors engaged in sexually explicit conduct.
On Thursday, December 17, 2015, Lilley was sentenced by U.S. District Judge John T. Fowlkes Jr. to 25 years imprisonment. He will also be required to serve 20 years of supervised release.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Unit.
First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Miami-Dade County Resident Sentenced to 8 ½ Years in Prison for Identity Theft Fraud Scheme Involving Skimming and Manufacturing Credit Cards and Filing False Tax ReturnsRead the Press Release
A Miami-Dade County resident was sentenced to 102 months in prison, to be followed by 3 years of supervised release, for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards and file false federal income tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami Dade Police Department (MDPD), made the announcement.
Christopher M. Mack, 31, previously pled guilty to one count of possession of fifteen or more counterfeit and unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of possession of device making equipment, in violation of Title 18, United States Code, Section 1029(a)(4), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Mack engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant. Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of approximately 600 individuals, loose sheets of paper filled with over 1,000 SocialSecurity numbers, and thirteen white envelopes containing approximately $200,000 worth of Western Union money order receipts.
Law enforcement reviewed the contents of the spiral notebooks and discovered numerous handwritten entries detailing the filing of federal tax returns. The IRS confirmed that the entries corresponded to fraudulently filed tax returns submitted to the agency.
Mr. Ferrer commended the investigative efforts of IRS-CI and the MDPD. The case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Memphis Man Sentenced to 85 Months for Mortgage Fraud, Identity TheftRead the Press Release
Memphis, TN – A Memphis man has been sentenced to more than seven years in federal prison as a result of his conviction in two separate cases involving mortgage fraud and identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, Marcus Jerome Payne, 46, of Memphis, and a co-conspirator fraudulently obtained two mortgage loans totaling approximately $530,000 between December 2008 and March 2009. Payne and his co-conspirator were able to apply for and obtain the mortgage loans by unlawfully using the name, social security number and other personal identifying information of another person.
Payne and his co-conspirator fraudulently obtained a mortgage loan of more than $265,000 from Fifth Third Bank. They obtained another loan of more than $264,000 from CitiBank. The loans were secured to buy two residential properties located in the city’s Central Avenue area.
In July 2015, Payne pled guilty to one count of conspiracy to commit mail, wire and bank fraud for his role in the mortgage loan fraud scheme.
Payne’s co-conspirator, Booker Smith, 32, of Memphis, pled guilty to one count of bank fraud in October 2015. He’s scheduled to be sentenced by U.S. District Judge Samuel H. Mays on Friday, January 8, 2016. He faces up to 30 years and a fine of up to $1 million when sentenced. He will also be ordered to pay restitution in the total amount of $265,155.22.
Payne also pled to unrelated charges of wire fraud and identity theft which were outlined in a criminal information filed by the U.S. Attorney’s Office. The wire fraud charge alleged that Payne fraudulently obtained two other mortgage loans for residences in Shelby County. The loans totaled approximately $661,200 between January and March 2006.
The criminal information also alleged that Payne fraudulently used the name of another individual to obtain an Arkansas Driver’s License, a mortgage loan origination agreement, and credit between June 2010 and July 2015.
On Tuesday, December 15, 2015, Payne was sentenced by Judge Mays to serve 85 months. He was also ordered to pay restitution in the total amount of $265,289.40 and forfeit $521,000.
This case was investigated by the Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation Division; U.S. Postal Inspection Service; and the U.S. Department of Housing and Urban Development Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Massachusetts Man Pleads Guilty to Transporting A Minor for Illegal Sexual ActivityRead the Press Release
CONCORD, NEW HAMPSHIRE - Lawrence Marks, 35, of Tewksbury, Massachusetts, appeared in United States District Court today and pled guilty to transportation of a minor in interstate commerce for illegal sexual activity, announced Acting U.S. Attorney Donald Feith.
In November of 2014, the New Hampshire State Police were conducting an investigation into the possible sexual abuse of several children in Franklin, New Hampshire. The investigation led to Lawrence Marks of Tewksbury, Massachusetts whom several witnesses identified as a man seen frequently with one of the minor children. Marks subsequently confessed to taking the child from New Hampshire to Massachusetts on several occasions where he engaged in sexual activity with her.
“Protecting our children from predators such as Mr. Marks is one of the top priorities of this office,” stated Acting U.S. Attorney Donald Feith. “This case demonstrates the results that can be achieved when local, state and federal law enforcement combine their resources to identify these perpetrators and bring them to justice.”
Marks is scheduled to be sentenced on March 30, 2016. He faces a mandatory minimum sentence of 10 years.
The case was investigated by the New Hampshire State Police and the Franklin Police Department in conjunction with the Federal Bureau of Investigation and the Billerica, Massachusetts, Police Department. This case is being prosecuted by Assistant United States Attorney Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Maryville Woman Sentenced for Murder-for-Hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Maryville, Mo., woman was sentenced in federal court today for a murder-for-hire scheme in which she negotiated with an undercover federal agent and, without realizing it, her intended victim.
Kristina M. Swinford, 33, of Maryville, was sentenced by U.S. Chief District Judge Greg Kays to eight years and six months in federal prison without parole.
Swinford, who pleaded guilty on May 20, 2015, admitted that she contacted two individuals to kill the wife of her ex-boyfriend. Her intended victim is identified in court documents as “AM.”
According to court documents, Swinford met three times with an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives to negotiate the murder-for-hire. Following her third meeting with the ATF agent, Swinford also negotiated via Facebook with another person, without realizing that she was actually communicating with her intended victim, who had created an online profile under another person’s name.
On Aug. 25, 2014, a cooperating source in Taylor County, Iowa, reported to law enforcement authorities about traveling to Maryville and having a discussion with Swinford. Swinford complained about AM and made it clear she wanted AM kidnapped, killed or gone. AM had gone through a brief separation from her husband, according to court documents, and during that time he was involved in a relationship with Swinford. After C.M. broke up with her, both AM and CM reported harassment and stalking behavior by Swinford. AM and her husband had been granted ex parte orders of protection in an effort to keep Swinford from stalking or harassing them.
The cooperating source was instructed to meet with Swinford again and provide her with the contact information of an undercover ATF agent if she still wanted someone to kill AM. The undercover agent contacted Swinford on Aug. 28, 2014, and arranged to meet.
Swinford met with the undercover agent on three separate occasions, each time sitting in a vehicle in a Wal-Mart parking lot in Bethany, Mo., and discussed several scenarios for killing AM. Swinford discussed several ways in which the undercover agent could gain access to AM suggesting that he make it appear that AM was killed in a drug deal gone bad, that AM be kidnapped from her house or kidnapped while she was walking (so there would be no blood at AM’s house). Swinford also discussed several ways in which AM would actually be murdered, suggesting that AM be shot, beaten and shot a couple times then thrown in the river or buried, that she be shot in the face and the chest or maybe both times in the face, or that AM be provided a lethal dose of drugs. Swinford told the undercover agent that she wanted AM to suffer and that AM should be beaten for five to 10 minutes before she was killed.
Swinford agreed to pay $10,000 prior to AM being killed and another $10,000 afterward. She provided the undercover agent with a photo of AM, a map of her house and other information. At the third meeting on Sept. 10, 2014, the undercover agent told Swinford he could pick up AM after she dropped her kids off at school, then kill her and cut off her hands and head and toss them into the river to make it look like Mexican drug dealers. Swinford agreed with this plan and the undercover agent told her to get a hold of him when she got the money.
On Sept. 19, 2014, AM reported to local law enforcement authorities that Swinford had been discussing AM’s murder on Facebook. According to court documents, AM had created a false Facebook account for a real person she knows, who is identified in court documents as WB. AM told authorities she created the account because her husband had blocked his Facebook account so she could not view her husband’s Facebook page.
AM reported that on Sept. 18, 2014, she had logged in to delete the fake account but found a message from Swinford from Aug. 9, 2014, addressed to whom Swinford clearly thought was the real WB. AM used the false Facebook account to engage Swinford in a lengthy conversation. During the conversation, Swinford expressed her dislike for AM. According to AM, further in the conversation, she and Swinford discussed WB (the real person but fake Facebook account) harming her (AM).
AM told police that she was terrified and had no way of knowing if Swinford had spoken to anyone else about having her hurt or murdered. ATF agents had not notified AM or her husband that ATF had been conducting the investigation into Swinford hiring the undercover agent.
This case was prosecuted by Assistant U.S. Attorney Alison Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maryville, Mo., Department of Public Safety.
Martha’s Vineyard Man Pleads Guilty to Social Security Fraud and Tax EvasionRead the Press Release
BOSTON – An Oak Bluffs man pleaded guilty today in U.S. District Court in Boston to stealing $160,025 in Social Security benefits and falsifying his 2010 tax return.
Vernon Harris, 63, pleaded guilty to theft of public money and tax evasion after being charged in an Information in November 2015. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 10, 2016.
In 2002, Harris applied for Social Security Disability Insurance benefits. In his application, Harris stated that he stopped working in 2001 due to his disabilities; however, in reality, Harris was running a trucking brokerage firm called SilkRoad Logistics out of his home on Martha’s Vineyard when he applied for benefits. Harris wrote himself checks from the business’s account totaling as much as $60,000 to $70,000 in some years and concealed the business from the Social Security Administration (SSA). In a 2012 letter Harris sent to the SSA, he falsely affirmed that “my wife is and has been the sole income earner in our household since my disability in 2001.” Harris continued to collect disability benefits while running SilkRoad Logistics until 2015. In total, he illegally received $160,025 in benefits. Harris also falsified information pertaining to SilkRoad Logistics on his 2010 federal income tax return.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Manhattan U.S. Attorney and FBI Assistant Director Announce Charges Against Leaders of Bronx Heroin Organization in Connection with Overdose Death of Vermont Man and Attempted Murder of Rival Drug TraffickerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of an indictment charging RAMON CRUZ, a/k/a “Guille,” and FRANCHESCA MORALES, a/k/a “Checa,” with conspiring to distribute heroin from 2010 through 2015, including trafficking heroin from the Bronx to Rutland, Vermont, which caused the death of a Vermont man (the “Victim”). CRUZ, MORALES, and JONATHAN SANTIAGO have also been charged with possessing firearms in connection with their attempt to murder a rival drug dealer. SANTIAGO was also charged with participating in the heroin conspiracy, as was NAJON FLANDERS, a dealer for CRUZ and MORALES.
CRUZ and MORALES were previously arrested on December 2, 2015, on a complaint. They will be arraigned on December 29, 2015, in magistrate’s court. SANTIAGO and FLANDERS are in state custody on unrelated charges and will now be transported to federal custody to face the charges filed today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ramon Cruz and Franchesca Morales pumped massive quantities of heroin, not only to the streets of the Bronx, but to rural communities as far north as Rutland, Vermont. The defendants’ alleged heroin dealing led not only to the tragic overdose death of a Vermont man, but also a deadly gun battle with a rival drug dealer. Heroin is on the rise, both in our cities and in rural communities, but so is law enforcement’s effort to combat it. Today’s charges reflect the commitment of my office and our law enforcement partners to pursue and prosecute drug traffickers who are fueling the growing heroin epidemic.”
FBI Special Agent in Charge Diego Rodriguez said: “As alleged, the defendants used their name, ‘Flow Heroin Organization,’ not only in the marketing of their drug bags stamped with the word ‘Flow,’ but also as a business plan by trafficking heroin all the way from the Bronx to Vermont. In their wake they left gun violence to protect their territory and at least one known overdose victim. The FBI will continue to aggressively investigate and work with our law enforcement partners to disrupt and dismantle such violent criminal organizations that threaten the innocent members of our community.”
According to the allegations contained in the Indictment returned today in Manhattan federal court[1]:
Beginning in 2010 and up to December 2015, CRUZ, the leader of the Flow Heroin Organization (“Organization”), received kilogram-quantities of heroin from various suppliers. CRUZ and multiple workers broke down the heroin into smaller quantity “bundles,” containing individual baggies of heroin, which primarily bore the stamp “Flow.” SANTIAGO was, in 2010, a street deputy for CRUZ responsible for heroin sales. After SANTIAGO’s arrest in 2010, MORALES replaced him, although SANTIAGO continued to oversee MORALES from prison. From 2010 through 2015, CRUZ, MORALES, and SANTIAGO relied on street-level dealers, typically members of a gang (“Gang-1”), who sold the heroin to addicts in the Bronx. FLANDERS was one of the street level dealers.
In early 2012, the Organization began distributing Flow heroin in Rutland, Vermont. CRUZ and MORALES used various co-conspirators, including FLANDERS, to transport the heroin to Rutland and recruit street level heroin addicts to sell the heroin for them. On August 28, 2012, one of these co-conspirators provided Flow heroin to a local dealer, who in turn sold some of the Flow heroin to the Victim on the morning of August 29, 2012. The Victim then used the Flow heroin and later died of a heroin overdose. Even after the Victim died, and, indeed, despite knowing that their heroin had caused his death, CRUZ and MORALES continued to traffic large quantities of Flow heroin from the Bronx to Rutland.
The Organization also engaged in acts of violence to protect its territory and its members. In particular, in 2015, members of the Organization made efforts to shoot and kill a rival narcotics dealer (the “Rival”) who is a member of a gang (“Gang-2”) that is a rival to Gang-1. On October 31, 2015, the Rival fired shots at a group of individuals that included MORALES and another member of the Organization. CRUZ and SANTIAGO urged MORALES to kill the rival in retaliation, and CRUZ provided MORALES with a gun for this purpose. On November 1, 2015, MORALES, along with other members of the Organization, including a member of Gang-1 (“Victim-2”), fired shots at the Rival. Weeks later, on November 24, 2015, the Rival shot and killed Victim-2. Subsequent to this homicide, CRUZ and MORALES attempted to locate the Rival, who was in hiding, to murder him. On November 30, 2015, MORALES believed she had located the Rival; she and CRUZ armed themselves, met, and went to kill the Rival, but did not succeed.
CRUZ and MORALES were arrested the next day, December 1, 2015. Law enforcement seized a loaded gun from CRUZ’s apartment and a second loaded gun inside a hidden compartment in MORALES’s car. In connection with the arrest, law enforcement also seized hundreds of grams of heroin, the Flow heroin “stamp,” and tens of thousands of dollars.
CRUZ, 51, of the Bronx, New York, and MORALES, 27, of the Bronx, New York, are each charged with one count of conspiracy to distribute heroin that resulted in a death, which carries a maximum sentence of life in prison, and one count of possession of a firearm that was discharged during a drug trafficking crime, which carries a maximum sentence of life in prison.
SANTIAGO, 28, of the Bronx, New York, is charged with conspiracy to distribute heroin, which carries a maximum sentence of life in prison, and one count of possession of a firearm that was discharged during a drug trafficking crime, which carries a maximum sentence of life in prison.
FLANDERS, 25, of Orange County, New York, is charged with conspiracy to distribute heroin, which carries a maximum sentence of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
Mr. Bharara thanked the FBI’s New York Field Division, the New York City Police Department, the New England Division of the Drug Enforcement Administration, the Rutland, Vermont, Police Department, New York State Department of Correctional Services, and the U.S. Attorney’s Office for the District of Vermont for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Russell Capone, Robert Allen, and Shawn Crowley are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney and FBI Assistant Director Announce Arrest of Former Lawyer Stuart Schlesinger for Defrauding Clients of More Than $3 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of STUART SCHLESINGER for defrauding his clients by failing to pay them millions of dollars in personal injury settlements that SCHLESINGER had obtained on their behalf. SCHLESINGER was arrested today by the FBI in Westhampton, New York, and was presented in Manhattan federal court before Chief U.S. Magistrate Judge Frank Maas.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, Stuart Schlesinger violated the trust of his clients – and the oath he took as an attorney – by lying about the proceeds of his clients’ settlements and keeping the funds for himself. Schlesinger’s alleged actions and greed victimized those already in difficult situations. Thanks to the FBI’s diligent investigation, Schlesinger will now have to answer for his crimes in federal court.”
Assistant Director-in-Charge Diego Rodriguez stated: “As alleged, Schlesinger was supposed to provide legal services for personal injury cases - not take more than $3 million in settlements proceeds to pay his personal expenses. Today’s arrest is a step forward in restoring the public’s trust and a reminder that this type of dishonorable behavior will not go unpunished.”
According to the allegations in the criminal Complaint,[1] SCHLESINGER was a named partner at the law firm of Julien & Schlesinger, P.C., until his disbarment by the New York State Appellate Division, First Judicial Department, on or about September 15, 2015. From at least October 2008 to in or about December 2015, SCHLESINGER executed a scheme to defraud his clients by failing to pay them the proceeds from personal injury settlements that SCHLESINGER had obtained on their behalf. As part of the scheme, SCHLESINGER falsely represented to his clients, by means of telephone calls and e-mail communications, that he had not yet received settlement proceeds and that he was unable to distribute settlement proceeds because of ongoing litigation involving the clients’ cases. In reality, SCHLESINGER deposited settlement proceeds into his law firm’s bank account and then transferred those funds to an operating account to pay the law firm’s expenses and his own personal expenses.
The complaint alleges that SCHLESINGER defrauded at least eight victims of over $3 million in settlement proceeds.
* * *
The Complaint charges SCHLESINGER, 75, of Westhampton, New York, with one count of wire fraud, in violation of Title 18, United States Code, Section 1343, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the FBI’s outstanding investigative efforts. Mr. Bharara also thanked the Departmental Disciplinary Committee of the New York Appellate Division, First Judicial Department, for its assistance in this investigation.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Laroche is in charge of the prosecution.
The charge in the Complaint constitutes merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Pleads Guilty to Penny Stock SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Jamie Boye, 33, of Portville, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to conspiracy to commit securities fraud. The charge carries a maximum sentence of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant participated in a scheme between October 22, 2008 and September 15, 2011 involving penny stocks. Boye and others utilized several websites registered through an internet domain registrar and web hosting company. One of the websites utilized by the defendant was www.trypennystocks.com. The website was used to tout approximately 29 penny stocks. During the course of the scheme, Boye and others were compensated by third-parties to tout certain penny stocks. In total, the defendant was compensated $498,714.25 during the scheme. The scheme involved at least 10 victims.
The plea is the culmination of an investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.
Sentencing is scheduled for April 15, 2016 at 12:30 p.m. before Judge Arcara.
Long-Time Wilmington Housing Authority Employee Sentenced for Half-Kilogram of Cocaine Found in His Work VanRead the Press Release
WILMINGTON, Del. – United States District Court Judge Richard G. Andrews sentenced Edwin Hernandez, 46, of Wilmington, Del. to 18 months in prison followed by 4 years of supervised release, and Hector Hernandez, 37, of New Castle, Del., to 60 months in prison followed by 4 years of supervised release. Both men pled guilty yesterday to charges relating to the attempted distribution of a half-kilogram of cocaine in Wilmington, Del.
The sentences were announced by United States Attorney for the District of Delaware Charles M. Oberly, III and Gary Tuggle, Special Agent in Charge of the Philadelphia Field Division of the Drug Enforcement Administration (DEA).
According to statements made at the sentencing hearings and documents filed in court, Edwin and Hector Hernandez, who are brothers, conspired to distribute a significant amount of cocaine. Edwin Hernandez was arrested on February 5, 2015, in the CVS Pharmacy parking lot at 1005 Delaware Avenue in Wilmington, Delaware. At the time of his arrest, while on duty as Maintenance Superintendent for the Wilmington Housing Authority, Edwin Hernandez was in possession of more than 500 grams of cocaine, which is valued at over $50,000. The cocaine was found in a Wilmington Housing Authority van. Hector Hernandez was arrested at the same time, nearby in his own vehicle, while in possession of a loaded handgun. Hector Hernandez later admitted to supplying his brother with the cocaine earlier that day.
Edwin Hernandez worked at the Wilmington Housing Authority for 24 years. His employment was terminated after his arrest in this case.
The case is the product of an investigation conducted by the Drug Enforcement Administration (“DEA”) Drug Trafficking Task Force, which is part of the New Castle County HIDTA, a collaborative effort among federal, state, and local law enforcement agencies. The DEA Drug Trafficking Task Force includes members from the following agencies: DEA, Delaware State Police, New Castle County Police Department, Newark Police Department, Department of Homeland Security – Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Delaware Attorney General’s Office. Assistant United States Attorney Elizabeth L. Van Pelt prosecuted the case on behalf of the United States.
Justice Department Announces Three Banks Reach Resolutions Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Bordier & Cie Switzerland (Bordier), PBZ Verwaltungs AG (PBZ) and PostFinance AG reached resolutions under the department’s Swiss Bank Program. These banks collectively will pay penalties of more than $15 million.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Bordier was founded in 1844 in Geneva, Switzerland, where it maintains its headquarters. Five generations of the Bordier family have run the bank over the subsequent 170 years. Bordier has three additional Swiss offices in Zurich, Bern and Nyon, and outside of Switzerland, Bordier has two asset management companies – one in London and one in Paris. Additionally, Bordier is affiliated with two independent entities with local banking licenses: Bordier Bank (TCI) Ltd., established in 1986 under the laws of the Turks and Caicos, and Bordier & Cie (Singapore) Ltd., established in 2011 under the laws of Singapore. Structurally, Bordier is led by its “Comité de Direction,” which is composed of the partners, the chief financial/administrative officer, the General Counsel, the communications director and two senior wealth managers.
Bordier was aware that some of its U.S. clients were using their accounts at Bordier to evade U.S. taxes and reporting requirements. In certain account files, Bordier had notes stating, “Declared: No.” In other instances, the U.S. taxpayer-client informed Bordier that he or she did not plan to declare his or her account in the United States. For one account, a U.S. taxpayer-client refused to provide a copy of his passport, despite repeated requests from Bordier, and in 1998, this client signed bank forms with a fake signature to avoid potential recognition. This accountholder eventually told Bordier that he did not want to declare the account in the United States because he was a lawyer and would be disbarred. In 2000, one U.S. taxpayer-client informed Bordier, “I am glad to know that there are no U.S. securities subject to U.S. withholding tax. I do not intend to declare this account to the U.S. authorities.” For one account where the ultimate beneficial owner was a U.S. person, Bordier noted in the files, “Client will introduce a South African friend domiciled in Monaco who will invest in USA and transfer funds to the client.”
In a limited number of instances, Bordier actively facilitated the evasion of U.S. taxes and reporting requirements for some of its U.S. accountholders. For example, Bordier made repeated transfers of undeclared assets under $10,000 to the Montreal bank account of a U.S. taxpayer-client in Canada in order to help the client avoid U.S. tax and reporting obligations and keep the undeclared assets hidden. For one such transfer, the U.S. taxpayer-client requested his “usual order of chocolate” from Bordier in order to institute these transfers. Bordier was aware that the U.S. taxpayer-client withdrew the amounts in cash: “Telephone [call from U.S. taxpayer-client]. Please transfer US$8,000 to Montreal as usual. He will pick up the cash. . . .” In 2002, according to file notes made by the former relationship manager, Bordier transmitted undeclared assets to a U.S. taxpayer-client in a hidden manner (“sous forme cache” in French). Bordier’s conduct allowed the bank to increase the undeclared U.S. taxpayer assets that it managed, thereby increasing the fees it generated.
Another U.S. taxpayer-client refused to sign Bordier’s Declaration of Non-U.S. Status form, which would have indicated that she was a U.S. person, despite it being required as part of Bordier’s account opening procedures. When the U.S. taxpayer-client asked Bordier about the impact of the UBS investigation, Bordier told the U.S. taxpayer-client that she “cannot call, that her capital is protected and that she multiplies her risks by calling the bank often. She should only call once a year when she is in Europe.”
From 2008 to the present, Bordier maintained approximately 292 U.S.-related accounts with a total of $440.8 million in assets under management. Bordier will pay a penalty of $7.827 million.
PBZ was a private bank operating in Zurich. From 2001 to November 2013, PBZ Verwaltungs AG operated as AKB Privatbank Zürich AG and was a subsidiary of Aargauische Kantonalbank. Prior to 2001, PBZ operated as BFZ Bankfinanz AG, a bank founded in 1988 and headquartered in Zurich. In November 2013, Aargauische Kantonalbank sold AKB Privatbank to Privatbank IHAG Zürich AG, and since July 2014 it has operated as PBZ Verwaltungs AG. PBZ Verwaltungs AG has ceased its banking activities and had its banking license revoked by Aug. 29, 2014.
As early as 2008, PBZ knew that some U.S.-related accounts held untaxed funds, which were described within PBZ in one instance as “Schwarzgeld” or “black money.” PBZ knew that U.S. persons had a duty under U.S. law to report their income to the Internal Revenue Service (IRS) and to pay taxes on that income, including all income earned in accounts maintained by PBZ in Switzerland. Despite this knowledge, PBZ opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared to the IRS or the U.S. Department of the Treasury, as U.S. law required. As of Feb. 19, 2010, PBZ formally renounced its previous practice of accepting “manifestly untaxed assets from foreign clients.”
In 2001, PBZ entered into a Qualified Intermediary (QI) agreement with the IRS. As a QI, PBZ agreed to supply the IRS with information and to withhold tax in connection with trades in U.S. securities. The agreement’s purpose was to ensure that, with respect to U.S. securities held in an account at PBZ, non-U.S. accountholders would be subject to the proper U.S. tax rates on withholding and that U.S. accountholders would properly pay U.S. taxes. As a practical matter, PBZ reported income pursuant to the QI agreement on only one of its U.S.-related accounts. For each U.S. client who did not provide a W-9, PBZ blocked any trading in U.S. securities, which, in PBZ’s view, obviated any payment or reporting obligation under the QI agreement.
PBZ opened accounts for foundations and other entities set up in Panama, Liechtenstein and any of several island countries – the Bahamas, the British Virgin Islands, the Cayman Islands, the Marshall Islands, St. Kitts and Nevis and the Turks and Caicos Islands – that PBZ knew were beneficially owned by U.S. persons. For instance, accounts were opened for three British Virgin Islands corporations that really belonged to a single U.S. person as the beneficial owner. In another instance, a U.S. resident beneficial owner of a Marshall Islands corporation gave instructions on an account nominally held by a domiciliary entity that resulted in the transfer of the account to the beneficial owner’s brother, who lived abroad.
PBZ also offered a variety of traditional Swiss banking services – including hold mail and numbered accounts – that it knew could assist, and did assist, U.S. taxpayers in concealing their identity from the IRS by minimizing the paper trail associated with their undeclared assets and income. From time to time, PBZ assisted its U.S. clients in sending money to themselves, relatives, business partners or other businesses in the United States by issuing checks drawn on PBZ’s own bank account. Issuing such checks is a service routinely provided by banks to clients and is similar to cashier’s checks in the United States. But under the circumstances present with respect to the U.S. clients, because these checks listed only PBZ as the accountholder, they did not reveal that the funds were ultimately paid out of the U.S. clients’ Swiss bank account. One such check issued was in the amount of $301,000. U.S. clients were thus able to utilize this technique to conceal their ownership of a Swiss bank account.
From at least 2008 through 2014, PBZ maintained and serviced 171 U.S.-related accounts having a maximum aggregate value of more than $101 million. PBZ will pay a penalty of $5.57 million.
PostFinance, headquartered in Bern, is a wholly-owned subsidiary of Swiss Post, the Swiss state-owned enterprise responsible for Swiss postal and other essential public infrastructure services. The Swiss parliament established PostFinance’s predecessor in 1906 to provide payment services to retail customers. PostFinance operated as a division of Swiss Post until June 26, 2013, when it became a bank under Swiss law.
For decades, PostFinance has provided the predominant means of payment in Switzerland. Customers pay bills and receive payments, electronically or in person, at post offices in Switzerland through PostFinance accounts. PostFinance has 45 branch offices, all in Switzerland, and roughly 40 percent of Swiss residents have an account with PostFinance. Until 2008, the names of PostFinance’s customers were publicly available. PostFinance was not subject to Swiss bank secrecy laws until June 26, 2013, when it received its license to operate as a bank under Swiss law.
Before and since Aug. 1, 2008, PostFinance was required by Swiss law and government mandate to provide accounts to persons living in Switzerland, regardless of nationality, and to Swiss nationals living outside of Switzerland. Consequently, PostFinance provided accounts to U.S. taxpayers living in Switzerland, as well as to Swiss nationals living in the United States, including U.S.-related accountholders who transferred assets to PostFinance from UBS or other banks under investigation by the department.
PostFinance has never offered private banking or wealth management services to any of its customers. Instead, PostFinance engaged in basic consumer retail banking and payment services. U.S. taxpayers resident in Switzerland, as well as U.S.-Swiss dual nationals, may obtain “current” accounts, which are comparable to checking accounts in the United States. Savings accounts, fixed income retirement accounts and credit cards may be obtained only by Swiss residents.
PostFinance was aware that citizens and resident aliens of the United States had a legal duty to report their assets and income to the IRS and to pay taxes on the basis of all their income, including income earned from accounts that PostFinance maintained on their behalf. Largely due to its obligations under Swiss law, however, PostFinance nevertheless opened and maintained undeclared accounts belonging to customers who were subject to U.S. tax and were not complying with their U.S. tax obligations.
Since Aug. 1, 2008, PostFinance maintained a total of 2,731 U.S.-related accounts having a maximum aggregate value of approximately $290 million. PostFinance will pay a penalty of $2 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Kaycee M. Sullivan, Brian D. Bailey and Paul G. Galindo, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Indictment: Kansas-based Scam Cost Turkish Investor MillionsRead the Press Release
KANSAS CITY, KAN. - An Olathe man was indicted Thursday on federal charges of devising a fraud scheme that cost a Turkish investor millions of dollars, U.S. Attorney Barry Grissom said.
Nagy Shehata, 55, Olathe, Kan., and Laura Lee Sorsby, 62, Texarkana, Texas, are charged in a superseding indictment with one count of conspiracy to commit wire fraud and four counts of wire fraud. In addition, Shehata is charged with two counts of money laundering.
The indictment alleges the crimes occurred while Shehata was the president and registered agent for Premier Investment Group, Inc., and Sorsby was president of Can Am International, LLC, headquartered in Dallas. They offered an investor in Turkey investments in building a shopping mall in Turkey and a hospital in Syria. The investor transferred 6 million Euros (more than $8 million) for the hospital project. The defendants diverted the money to their own use. Shehata bought an $855,000 house and an $111,000 auto. Sorsby bought a $77,000 car and a $163,000 house. They promised the investor to return his money but they never gave the money back.
If convicted, they face a maximum penalty of 20 years and a fine up to $250,000 on the conspiracy count and each of the wire fraud counts, and a maximum penalty of 10 years and a fine up to $250,000 on each of the money laundering counts. The FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER GRAND JURY INDICTMENTS
Samantha C. Elmer, 33, Lawrence, Kan., is charged with one count of international parental kidnapping, one count of making a false statement on a passport, and one count of aggravated identity theft.
Elmer initially was charged in a criminal complaint unsealed Dec. 9 that alleged she took her two daughters to Europe to prevent her former husband from lawfully taking custody of the children.
If convicted, she faces a maximum penalty of three years in federal prison and a fine up to $250,000 on the parental kidnapping charge, a maximum penalty of 10 years and a fine up to $250,000 on the charge of making a false statement on a passport, and a mandatory two years (consecutive to other counts) on the identity theft charge. The following agencies worked on the investigation: the Lawrence Police Department, the FBI, Homeland Security Investigations, the Douglas County District Attorney’s Office, the Eudora Police Department, the Overland Park Police Department and the Johnson County District Attorney’s Office. Assistant U.S. Attorney Chris Oakley is prosecuting.
Omar Martinez, 31, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 8, 2015, in Ford County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Alleged Post Office RobberRead the Press Release
PHILADELPHIA - Antwoine Tomlin, 32, of Philadelphia, was charged today by indictment with committing an armed robbery, on November 19, 2015, at the United States Post Office, located at 6382 Castor Ave, Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger. Tomlin was also charged with use of a firearm in connection with that robbery.
If convicted Tomlin mandatory minimum term of 25 years in prison with a maximum possible sentence of life, supervised release, a possible fine and a $100 special assessment.
The case was investigated by the United States Postal Inspection Service and Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hugo Man Sentenced to 63 Months for Possession of ExplosiveRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNETH JAMES HEBERT, a/k/a Keno, age 51, of Hugo, Oklahoma was sentenced to 63 months imprisonment and 3 years Supervised Release for being a FELON IN POSSESSION OF EXPLOSIVE, in violation of Title 18, United States Code, Sections 842(i)(1), 844(a)(1) and 2. The jury trial began on Monday, September 21, 2015 and concluded on September 22, 2015 with the guilty verdict.
The defendant was convicted in September, 2015 by a federal jury. The evidence at trial proved that in or about January 2014, the exact date being unknown to the Grand Jury, within the Eastern District of Oklahoma, the defendant, having been convicted in the District Court of Choctaw County, Oklahoma, for a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, an explosive, to-wit: ATLAS SF Electric Blasting Caps, which had been shipped and transported in interstate commerce.
The verdict obtained was the result of an investigation by the Hugo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending transportation to the federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorneys Chris Wilson represented the United States.
Howells and Vaisey Sentenced for Child ExploitationRead the Press Release
SYRACUSE, NEW YORK – Stephen M. Howells, II, 40 of Hermon, New York, was sentenced today to serve 580 years in prison in connection with his sexual exploitation of six children, including two St. Lawrence County girls he abducted with his girlfriend, Nicole F. Vaisey, 26, also of Hermon, from a roadside vegetable stand on August 13, 2014, announced United States Attorney Richard S. Hartunian, Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division, and St. Lawrence County Sheriff Kevin Wells. Vaisey was also sentenced today to serve 300 years in prison for her role in the offenses, including her participation in the sexual exploitation of four of the children. The Court also ordered the forfeiture of property used by the defendants in the commission of these crimes, consisting of two cars, a computer and five hard drives, a camera, and two iPhones.
On May 8th, Howells pled guilty to all twenty-one federal charges: conspiracy to sexually exploit minors, fifteen counts of sexual exploitation of children, involving six victims, and five counts of possession of child pornography. On May 14th, Vaisey also pled guilty to conspiracy to sexually exploit minors, as well as nine counts of sexual exploitation of children, involving four victims.
From September of 2013 through August 15, 2014, Howells and Vaisey conspired to sexually exploit children for the purpose of producing videos and pictures of such conduct. Howells used his position as a registered nurse to obtain drugs to administer to the six children to sedate them. On at least sixteen dates specified in the indictment, Howells sexually abused six young girls, ages 5 – 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey made arrangements with close friends and family to spend time with four of the children, and then betrayed their trust. Howells and Vaisey also developed, planned, and carried out a scheme to abduct children to sexually abuse them. On August 13, 2014, they kidnapped two Amish children from their family’s roadside farm stand by pretending to be customers. Howells forced the children into the car and Vaisey drove off. The two children were restrained as captives in Howells’ and Vaisey’s home until they were released in a remote location the next night. An ongoing manhunt and investigation resulted in the arrests of Howells and Vaisey and searches that helped uncover the other child sexual abuse by them.
United States Attorney Richard S. Hartunian said: "The sentences imposed today are a reflection of the monstrous crimes committed by Stephen M. Howells, II and Nicole F. Vaisey against the most vulnerable among us – our children. Howells and Vaisey will never be able to abduct, drug, and sexually abuse children again. Our hearts go out to the six children victimized by
Howells and Vaisey, and to all children who are subject to sexual exploitation. It is our hope that these severe sentences will deter others from engaging in such depraved conduct. Our commitment to promoting prevention, protecting children, and combatting child sexual abuse is complete and unwavering."
"Today’s sentencing is a culmination of an investigation into the unspeakable crimes committed against innocent victims within St. Lawrence County. The St. Lawrence County Sheriff’s Office has worked towards this conclusion in a cooperative investigative effort with our Federal, State and Local partners. This collaborative effort to bring these two to justice and stand responsible for their actions shows how well law enforcement can work together for the victims and citizens that we serve. The Sheriff’s Office appreciates the public support that has been demonstrated for the victims and the law enforcement agencies that were involved," said St. Lawrence County Sheriff Kevin Wells.
"The unspeakable acts against innocent children committed by Stephen Howells and Nicole Vaisey represent some of the most heinous and evil crimes ever committed in Troop B. It was through the collective efforts of all law enforcement agencies working tirelessly that these two depraved individuals will be brought to justice and will never pose a threat to our children and our communities again," said New York State Police Major Charles Guess, Troop B Commander.
"Stephen Howells and Nicole Vaisey represent the horrifying reality of the danger our families and children face; they are predators that plotted and schemed to harm those that are most precious to us," said Special Agent in Charge Andrew W. Vale. "It is our sworn duty to protect our community’s children, and the unfathomable suffering of Howells and Vaisey’s victims and their family is our daily reminder of that duty. Today’s sentencings are the culmination of tremendous efforts made by the FBI, the United States Attorney’s Office, the St. Lawrence County Sheriff’s Office, and the New York State Police."
This case was investigated by FBI, the St. Lawrence County Sheriff’s Office and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher, Tamara Thomson, and Steven D. Clymer.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN LOPEZ-PINEDA, age 29, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to court records, on or about September 24, 2015, LOPEZ-PINEDA was found in the United States after having been officially deported and removed on or about May 30, 2014.
LOPEZ-PINEDA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for February 4, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harwich Man Indicted on Firearms and Drug ChargesRead the Press Release
BOSTON – Timothy Fletcher, 33, of Harwich, Mass., was indicted today on being a felon in possession of firearms and ammunition, possession of cocaine base with intent to distribute and possession of cocaine with intent to distribute.
On April 3, 2015, Fletcher possessed a Taurus, .380 caliber pistol, a Tisas, .45 caliber pistol, six rounds of .380 caliber ammunition, 58 rounds of .45 caliber ammunition and 60 rounds of 9mm ammunition.
In this matter, the government alleges that the defendant was an armed career criminal. The charge of being a felon in possession provides for a mandatory minimum sentence of 15 years and no greater than a lifetime in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Each of the narcotics charges provides for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $2 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Barnstable Police Chief Paul MacDonald; and Yarmouth Police Chief Frank Frederickson, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Harrisburg Man Charged with Possession of A Weapon in Furtherance of Heroin TraffickingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal Grand Jury in Harrisburg returned an indictment yesterday charging Jamar McMillan, age 31, with possession with the intent to distribute heroin and possession of a weapon in furtherance of a drug trafficking crime.
According to United States Attorney Peter Smith, McMillan, a resident of Dauphin County is also charged with possessing a firearm after having been previously convicted of a felony offense.
This case arose as a result of an arrest of McMillan in August 2015, and an investigation by the Harrisburg Police Department Vice Unit and the Federal Bureau of Investigation. Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hardy County, WV man sentenced for role in manufacturing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Johnny Biggs, 36, of Moorefield, West Virginia, was sentenced in federal court for his role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Biggs was discovered in May 2015 in Hardy County, West Virginia in possession of materials commonly used to manufacture methamphetamine. Those materials included a bottle, coffee filters, drain cleaner, batteries, cold medicine, and fuel. Biggs pled guilty in October 2015 to one count of “Possession of Material used in the Manufacture of Methamphetamine.”
Biggs was sentenced to 21 months in prison for the possession charge. He was also sentenced to an additional 15 months in prison for violating the terms and conditions of a previously imposed period of supervised release. The sentences will be served consecutively for a total of 36 months in prison. Further, Biggs was ordered to pay restitution in the amount of $13,937.46.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Fremont Man Indicted for Attempting to Travel to Join Terrorist GroupRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco returned an indictment that was unsealed today, charging Adam Shafi with one count of attempting to provide material support or resources to a designated foreign terrorist organization, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment, Shafi, 22, of Fremont, Calif., is alleged to have attempted to provide personnel to al-Nusrah Front (ANF), an organization designated by the Department of State as a Foreign Terrorist Organization and as a Specially Designated Global Terrorist entity. The indictment alleges that at the time Shafi provided the support, he knew ANF was a designated foreign terrorist organization and that the organization had engaged and was engaging in terrorist activity and terrorism in violation of Title 18, United States Code, Section 2339B.
An affidavit filed by an agent of the Federal Bureau of Investigation in connection with a criminal complaint filed in the same matter also alleges that Shafi was stopped at San Francisco International Airport on June 30, 2015, as he was about to board a non-stop flight to Istanbul, Turkey. As explained in the affidavit, Turkey is a common point of entry into Syria for foreign fighters hoping to join terrorist organizations such as ANF and Islamic State of Iraq and the Levant (ISIL). The affidavit details a number of telephone conversations Shafi had with his friends in the days and weeks leading up to his trip during which he expressed his love of “Jaulani,” the amir of ANF, his willingness to “die with them,” his hope that “Allah doesn’t take [his] soul until [he has] at least, like, a couple gallons of blood that [he’s] spilled for him,” his fear of meeting Allah “when [his] face has no scars on it,” and his progress in saving enough money for his trip.
Shafi was arrested on July 3, 2015, based on the complaint filed in this matter. Both the complaint and indictment were unsealed late this morning in open court when Shafi appeared before the Honorable Sallie Kim, United States Magistrate Judge, for his arraignment. Shafi is currently in custody, but has moved for bail. A bail hearing is scheduled for December 22, 2015 at 1:30 p.m. before the Honorable Magistrate Judge Kim.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted for a violation of 18 U.S.C. § 2339B, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions and National Security Unit at the United States Attorney’s Office, the Federal Bureau of Investigation, and members of the Joint Terrorism Task Force.
Four-time Convicted Drug Dealer Caught by Feds Bribing Gun Case WitnessRead the Press Release
PITTSBURGH - A former Pittsburgh resident pleaded guilty in federal court to charges involving bribery and illegal firearm possession, United States Attorney David J. Hickton announced today.
Monroe Blanks, III, 29, currently incarcerated on a parole violation, pleaded guilty before United States District Judge Donetta W. Ambrose to all of the charges he faced at two different cases.
In connection with the guilty plea, the court was advised that Blanks had previous convictions that include three felony drug trafficking convictions in 2006 and another in 2012. On March 3, 2015, Pittsburgh Police stopped Blanks’ vehicle and found that he possessed a loaded 9mm caliber Glock handgun. Federal law prohibits individuals with any previous conviction for a crime punishable by more than one year in prison from possessing a firearm or ammunition. Over the next four months, Blanks contacted numerous persons in an effort to bribe witnesses. Federal investigators learned of the bribery scheme and arrested Blanks after determining that he had paid an individual thousands of dollars to come to Court and lie.
By signing a written plea agreement and pleading guilty to all of his crimes, Blanks has agreed to serve 188 months (over 15 ½ years) in federal prison and he will be supervised by the United States Probation Office for another five years following his release from prison. Judge Ambrose scheduled the formal imposition of sentence for April 6, 2016 at 10 a.m.
Blanks’ co-defendants have each been charged and are currently awaiting their February 29, 2016 trial date before Allegheny County Court of Common Pleas Judge Anthony Mariani.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police for conducting the investigation that led to the prosecution of Monroe Blanks, III.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime Section of the Office of the United States Attorney, represented the federal government.
Four Romanian Nationals Charged in Bribery SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Dumitru Martin, 55, a Romanian citizen residing in Long Island, New York, and Anamaria Cruceru, 48; Constantin Schiller, 62; and Marcelle Banaga, 40, all of whom reside in Romania, charging them with conspiracy to commit bribery and with bribery of a public official, United States Attorney Benjamin B. Wagner announced.
According to court documents, Martin owns and operates a Romanian company called Polaris M. Holdings (Polaris), and Cruceru, Schiller, and Banaga are employees. From October 2014 through December 2015, Martin, Cruceru, Schiller, and Banaga conspired with each other to bribe a United States Air Force (USAF) contracting officer in connection with the awarding of multimillion dollar contracts to Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of the contract. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Koglaniceanu Air Base in Romania. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal the bribe payment. Thereafter, as part of the conspiracy, the defendants caused a $100,000 wire transfer from Romania to a bank account in the United States as payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement and there was no contract to be awarded to Polaris.
“Attacking corruption and collusion in federal contracting is important both to ensure the integrity of federal programs and to protect taxpayer dollars,” U.S. Attorney Wagner said. “Working with the FBI and our other law enforcement partners, we will continue to root out and prosecute those who attempt to corruptly influence federal contracting officials.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
Martin was arrested and is currently in custody in Sacramento. The remaining defendants reside in Romania, and the U.S. Department of Justice will initiate requests for their extradition.
If convicted, the defendants each face a maximum statutory penalty of five years in prison on the conspiracy charges and 15 years in prison for the bribery count, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Defendants Sentenced to Prison for Paying and Accepting Bribes and GratuitiesRead the Press Release
Four defendants have been sentenced to prison terms, by U.S. District Judge Daniel T.K. Hurley in West Palm Beach, for paying and accepting bribes and gratuities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Pamela Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, United States Social Security Administration, Office of Inspector General (SSA-OIG), Shimon R. Richmond, Special Agent in Charge, Miami Region, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Irma Davidian, 52, of Boca Raton, was sentenced to 10 years in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution. Davidian previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.
Gladys Roman, 47, of Pompano Beach, was sentenced to 40 months in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution. George Lopez, 35, of Pompano Beach, was sentenced to 54 months in prison, followed by three years of supervised release and was ordered to pay $300,673.42 in restitution. Both defendants previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.
Maria Sanchez, 50, of Pembroke Pines, was sentenced to four months in prison and four months of house arrest, to be followed by three years of supervised release. The defendant previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
Co-defendant Alejandro Lomoso, 56, of Southwest Ranches, previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371 and is scheduled to be sentenced on January 6, 2016.
According to court records, Davidian was in the business of representing persons who sought to obtain government benefits, including Social Security, Medicaid and Food Stamp benefits. Davidian would claim that, for a payment ranging from $2,000-$5,000, she could obtain those benefits for individuals regardless of their personal circumstances. Roman was employed by the Florida Department of Child and Family Services (DCF) as an interview clerk and inputted information from those persons applying for Medicaid and Food Stamps benefits into a DCF computer. The Medicaid applications would then be assigned to a DCF case worker whose job title was an Economic Self-Sufficiency Specialist (ESS).
In or about April 2009, Roman submitted applications to DCF on behalf of Davidian’s clients and did so from her home or a public library and would add or change information to enhance the application. Davidian repeatedly asked Roman if there was an ESS worker at DCF who Davidian could pay to approve DCF applications. Lopez was an ESS for DCF. His duties included approving or denying requests for Medicaid and Food Stamp benefits. In or about 2012, Lopez agreed that, in exchange for money, he would approve applications submitted by Davidian on behalf of her clients.
Davidian submitted applications on behalf of her clients to Roman so that they could be forwarded to DCF. Davidian submitted fraudulent documents with some of the applications in order to make it appear that her clients met the benefit requirements. Davidian instructed Roman to assign Lopez as the ESS worker in order to ensure that some of the fraudulent applications would be approved.
Roman would then fraudulently approve benefits for applicants who were not otherwise qualified. If benefits for Medicaid or Food Stamps were properly denied by another DCF employee, Lopez logged into the DCF computer system and overrode the denial and approved the benefits. Beginning in or about 2012 through in or about January 2014, every other week, Davidian paid Roman and Lopez each $500. As a result of the scheme, Roman and Lopez assisted Davidian to seek more than $5,000,000 in fraudulent benefits.
Court records further indicate that Sanchez and Lomoso worked as claims representatives for the SSA. From in or about 2008 through in or about early 2011, Sanchez and Lomoso would periodically receive applications from Davidian on behalf of persons seeking SSA benefits. In exchange for payment, Sanchez and Lomoso would expedite and/or modify the application process. Davidian gave, offered, and promised approximately $9,500 in U.S. currency to Lomoso and approximately $13,000-$15,000 to Sanchez in exchange for performing their official acts.
Mr. Ferrer commended the investigative efforts of the FBI, Florida Attorney General’s Office, SSA-OIG, HHS-OIG, MFCU and the Florida Department of Children and Families OIG. Attorney General Pam Bondi’s Office of Statewide Prosecution will handle the state law violations. The federal matters are being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Cape Cod Residents Charged in Drug and Money Laundering RingRead the Press Release
BOSTON – Four Cape Cod residents were charged in an indictment unseal today in U.S. District Court in Boston in connection with drug and money laundering offenses.
David Landry, 27; his mother, Diane Johnson, 50, both of Mashpee; Justin Groom, 26, of Hyannis; and Evan Lopes, 27, of East Wareham, were named in an indictment charging possession with intent to distribute marijuana, conspiracy to manufacture marijuana, money laundering, possession with intent to distribute methylone (also known as “molly”), being a felon in possession of a firearm and money laundering conspiracy.
The indictment alleges that from May 2014 to January 2015, Landry and Groom conspired to manufacture and distribute marijuana, and possessed marijuana with the intent to distribute it. Landry, who was arrested and has been in custody since Sept. 12, 2014, is alleged to have continued participating in the criminal offense while in jail on state charges. Groom is also charged with eight counts of money laundering in connection with using the proceeds of the illegal activities to pay the rent of the Cheryl Lane house. It is also alleged that Lopes, aided by Landry, possessed with intent to distribute methylone on Jan. 15, 2015. The indictment further alleges that Landry, a convicted felon, constructively possessed a CZ model CZ100, .40 caliber semi-automatic pistol on Jan. 21, 2015.
Finally, the indictment alleges that from 2010 to 2015 Landry and his mother, Diane Johnson, conspired to launder drug proceeds in order to disguise the nature of the funds and continue the drug trafficking activity.
The charges of conspiracy to distribute marijuana and possession of marijuana and methylone with intent to distribute provide for a sentence of no greater than 20 years in prison, a mandatory minimum of three years of supervised release and up to a lifetime, and a fine of $1 million. The charges of money laundering and money laundering conspiracy provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Barnstable Police Chief Paul MacDonald; Barnstable County Sheriff James M. Cummings; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Cape & Islands District Attorney Michael O'Keefe, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Ted Heinrich of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former post office employee convicted of embezzling fundsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ceressa B. Patterson, 29, of Fairview, West Virginia, was convicted of stealing funds from the United States Postal Service today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Patterson, formerly employed at the Pentress, West Virginia Post Office, embezzled nearly $2,000 from the post office by taking proceeds from the sale of money orders and stamps for her own personal use.
Patterson pled guilty today to one count of “Misappropriation of Postal Funds.” She faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The United States Postal Service Office of Inspector General investigated.
United States Magistrate Judge Michael John Aloi presided.
Former Union President Charged with Embezzling Union FundsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was charged with embezzling and misusing funds belonging to Alaska Railroad Workers Union Local 183. Jeffrey Davies was the President of the Union between 2011 and 2014. The federal indictment alleges that Davies stole more than $100,000 in union funds in the form of cash withdrawals, checks and by paying for personal expenses with a union debit card.
Davies, 41, was indicted by a federal grand jury of one count of embezzling labor union assets. The case will be set for arraignment in federal court in the coming weeks. According to First Assistant U.S. Attorney, Kevin R. Feldis, the maximum penalties for this offense include up to five years in prison and a $250,000 fine.
Mr. Feldis noted that “the charges in this case are a good reminder to all organizations that they should have processes in place to safeguard against potential theft and misuse of funds, including performing regular internal audits and requiring multiple officials to be involved in financial oversight. I commend the FBI and the U.S. Department of Labor for their investigation of this case.”
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Tax Return Preparer Pleads Guilty to Theft of Public Money and Aggravated Identity TheftRead the Press Release
A former tax return preparer and resident of New Orleans, Louisiana, pleaded guilty today to one count of theft of public funds and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U. S. Attorney Kenneth A. Polite, Jr. for the Eastern District of Louisiana.
Donald Stewart, 59, prepared tax returns under the business names Stewart’s Tax Service and Stewart LTD from approximately 2001 through 2008, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number, according to court documents. Stewart admitted that he used the means of identification of individuals, including their names and social security numbers, without lawful authority, to electronically file false federal income tax returns with the IRS that claimed income refunds. From January 2011 through February 2012, Stewart caused approximately $37,809 in federal and state tax refunds in the names of others to be electronically deposited into bank accounts under his control. Stewart also admitted to cashing or depositing U.S. Treasury checks totaling approximately $539,393 and payable to other individuals at a bank in the New Orleans area.
U.S. District Judge Eldon E. Fallon set sentencing for March 17, 2006. Stewart faces a statutory maximum sentence of 10 years in prison for the theft of public money charge and a mandatory term of two years in prison for the aggravated identity theft charge, which must run consecutive to any other prison term he receives. As to each count, Stewart also faces a fine of $250,000, or twice the gross gain or loss caused by the offense and terms of supervised release.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren M. Castaldi of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Tax Return Preparer Pleads Guilty to Theft of Public Money and Aggravated Identity TheftRead the Press Release
WASHINGTON -- A former tax return preparer and resident of New Orleans, Louisiana, pleaded guilty today to one count of theft of public funds and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U. S. Attorney Kenneth A. Polite, Jr. for the Eastern District of Louisiana.
Donald Stewart, 59, prepared tax returns under the business names Stewart’s Tax Service and Stewart LTD from approximately 2001 through 2008, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number, according to court documents. Stewart admitted that he used the means of identification of individuals, including their names and social security numbers, without lawful authority, to electronically file false federal income tax returns with the IRS that claimed income refunds. From January 2011 through February 2012, Stewart caused approximately $37,809 in federal and state tax refunds in the names of others to be electronically deposited into bank accounts under his control. Stewart also admitted to cashing or depositing U.S. Treasury checks totaling approximately $539,393 and payable to other individuals at a bank in the New Orleans area.
U.S. District Judge Eldon E. Fallon set sentencing for March 17, 2006. Stewart faces a statutory maximum sentence of 10 years in prison for the theft of public money charge and a mandatory term of two years in prison for the aggravated identity theft charge, which must run consecutive to any other prison term he receives. As to each count, Stewart also faces a fine of $250,000, or twice the gross gain or loss caused by the offense and terms of supervised release.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren M. Castaldi of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Resident of Dracut, Massachusetts Sentenced to 27 Months in Prison for Fraud OffensesRead the Press Release
CONCORD, N.H. – Kurt Sanborn, a 48-year-old former resident of Dracut, Massachusetts, has been sentenced to 27 months in prison, announced Acting United States Attorney Donald Feith.
In May 2003, Sanborn used a private $500,000 loan to buy a home in Manchester, New Hampshire. In exchange, the private lenders received a first mortgage on the Manchester property which was recorded at the Hillsborough County Registry of Deeds.
In October 2003, Sanborn asked a mortgage company for a $685,000 loan to buy a second home in Gilford, New Hampshire. The mortgage company agreed to finance the transaction if it received first mortgages on the Manchester and Gilford properties. To deceive the mortgage company, Sanborn caused a mortgage discharge that contained the private lenders’ forged signatures to be filed with the Hillsborough County Registry of Deeds. Sanborn’s conduct involving interstate wire communication and documents that were delivered by the U.S. Postal Service as part of the fraud served as the basis for wire and mail fraud charges.
Sanborn was also charged with bank fraud based on his conduct in February 2004 in acquiring a $150,000 loan from a federally insured bank in exchange for a second mortgage on the Manchester property. Sanborn concealed from the bank the private lenders’ mortgage on the Manchester property.
In October 2004, Sanborn sold the Manchester property without disclosing the private lenders’ mortgage on the property to the new owners. He then used the proceeds of the sale to make a $185,000 payment to the mortgage company and to fully repay the $150,000 loan from the federally insured bank.
Sanborn pleaded guilty to the charges in May 2014.
The case was investigated by the United States Postal Inspection Service. It was prosecuted by AUSA Robert Kinsella.
Former Postal Employee Sentenced to Prison in Mail Theft ConspiracyRead the Press Release
PROVIDENCE, R.I. – Erick Vera-Garzon, 36, of Providence, was sentenced today to 36 months in federal prison for his role in a conspiracy to steal U.S. Treasury checks from the mail and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The bank funds were then withdrawn or used to make retail purchases with the use of debit cards.
An investigation by the Providence Police Department Intelligence and Organized Crime Unit and the United States Postal Service (USPS) Office of Inspector General (OIG) resulted in the seizure of approximately $1.6 million dollars worth of stolen U.S. Treasury checks, dozens of stolen gift cards, and more than $165,000 in proceeds gained as a result of the sale of stolen checks and gift cards.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Vera-Garzon to serve two years supervised release upon completion of his prison term. Vera-Garzon pleaded guilty on September 23, 2015, to conspiracy, theft of mail and theft of public money or property.
Vera-Garzon’s sentence is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Eileen Neff, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office.
Joan Manuel Mustafa, 28, of Providence, a former co-worker of Vera-Garzon, pleaded guilty on October 21, 2015, to conspiracy, theft of mail and theft of public money or property. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 8, 2016.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the disappearance of U.S. Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The missing checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center. At the same time, independent of the USPS-OIG investigation, a Providence Police Department detective developed information that Vera-Garzon was selling stolen U.S. Treasury checks at 20% of face value to buyers on the streets of Rhode Island and New York. The investigation determined that many of the stolen checks were deposited in bank accounts that had been opened in Rhode Island, Massachusetts and New York in the names of some of the individuals whose checks had gone missing. The funds were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, and the purchase of money orders.
Based on the information developed by the Providence Police Department Intelligence and Organized Crime Unit, court authorized search warrants were obtained and executed at Mustafa and Vera-Garzon’s residences on April 16, 2015. Law enforcement seized more than 900 stolen U.S. Treasury checks valued at approximately $1.6 million dollars, several dozen gift cards and more than $53,000 in cash. Vera-Garzon and Mustafa were arrested on April 16, 2015.
The cases are being prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Richard W. Rose.
Agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Ochsner Clinic Credit Union Manager Charged with Stealing over $1MRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACQUELINE RAY, age 60, of Biloxi, Mississippi, was charged yesterday in a Bill of Information one count of stealing over $1 Million from Ochsner Clinic Federal Credit Union in connection with bank larceny during her employment there.
According to the Bill of Information, RAY was employed by Ochsner Clinic Federal Credit Union (OCFCU), as a credit union manager and had been employed at OCFCU for nearly thirty years. From around 2007 to 2013, RAY stole at least $1 Million Dollars by creating numerous fictitious loans on the books of OCFCU. RAY created approximately 149 fictitious loans.
No loan documentation existed on any of the fictitious loans. RAY controlled the day-to-day operation of OCFCU. These fictitious accounts were all coded in the OCFCU data processing system so that no statement of account would be generated, thus hiding RAY’S fraudulent scheme.
The proceeds from the fictitious loan would be in the form of a check drawn on the OCFCU and deposited in accounts controlled by RAY, or converted to cash.
RAY also made false deposits into a local bank to make it appear that she had money in accounts she controlled, when she really did not. RAY would steal cash from these falsely inflated accounts.
If convicted, RAY faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release, as well as restitution for the money taken.
The U.S. Attorney’s Office reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Former Hedge Fund Manager and New York Attorney Indicted in Multimillion Dollar Fraud SchemeRead the Press Release
BROOKLYN, N.Y. – A seven-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging Martin Shkreli, the founder and managing member of hedge funds MSMB Capital Management LP (MSMB Capital) and MSMB Healthcare Management LP (MSMB Healthcare) and former Chief Executive Officer of Retrophin Inc. (Retrophin), a biopharmaceutical company that trades under the ticker symbol RTRX; and Evan Greebel, a former partner at the New York office of Katten Muchin Rosenman LLP who served as outside counsel to Retrophin.[1] Shkreli is charged with securities fraud, securities fraud conspiracy, and wire fraud conspiracy for orchestrating three interrelated schemes: schemes to defraud investors in MSMB Capital and MSMB Healthcare and a scheme to misappropriate Retrophin’s assets. Greebel is charged with wire fraud conspiracy for his role in the Retrophin scheme. Shkreli and Greebel will be arraigned later today before United States Magistrate Judge Robert M. Levy, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, Martin Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit. His plots were matched only by efforts to conceal the fraud, which led him to operate his companies, including a publicly traded company, as a Ponzi scheme, where he used the assets of the new entity to pay off debts from the old entity. When regulators and auditors questioned Shkreli’s decisions, he joined forces with Evan Greebel, who used his law license and training to conceal and further the scheme,” stated United States Attorney Capers. “The charges and arrests announced today reflect our commitment to hold accountable corporate executives and licensed professionals who betray their positions of trust in order to fraudulently enrich themselves.” Mr. Capers thanked the Securities and Exchange Commission, New York Regional Office (SEC), and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their significant cooperation and assistance during the investigation.
“The charges announced today describe a securities fraud trifecta of lies, deceit, and greed. As charged, Martin Shkreli targeted investors and retained their business by making several misrepresentations and omissions about key facts of the funds he managed. He continued to lie about the success of the investments and used assets from Retrophin to payoff MSMB investors. In the end, Shkreli and Greebel used a series of settlement and sham consulting agreements that resulted in Retrophin and its investors suffering a loss in excess of $11 million. While the charges announced today are significant, they are but one example of what’s left to come as the FBI continues this investigation,” stated FBI Assistant Director-in-Charge Rodriguez.
As detailed in the indictment and below, between September 2009 and September 2014, Shkreli, together with others, orchestrated three interrelated fraudulent schemes: (i) a scheme to defraud investors and potential investors in MSMB Capital, (ii) a scheme to defraud investors and potential investors in MSMB Healthcare, and (iii) a scheme to defraud Retrophin.
The MSMB Capital Hedge Fund Scheme
Between September 2009 and January 2011, Shkreli and his co-conspirators falsely represented to potential investors, among other things, that: (i) MSMB Capital was a transparent investment vehicle for sophisticated investors with monthly liquidity; (ii) Shkreli would only receive a one percent management fee per year based on net assets of the partnership; (iii) Shkreli was entitled to receive twenty percent of the limited partners’ net profits for the year; and (iv) MSMB Capital had retained independent certified public accountants as auditors who would issue an audit report on the annual financial statements. Shkreli also failed to disclose to investors that he had lost all the money he managed in Elea Capital, his prior hedge fund, and that Lehman Brothers had a $2.3 million default judgment against him. Finally, Shkreli lied to his biggest investor telling him that MSMB Capital had $35 million in assets under management, when in fact MSMB Capital had less than $700 in its bank and brokerage accounts. Based on these and other false representations, Shkreli and his co-conspirators induced approximately $3 million in investments from eight investors.
In February 2011, MSMB Capital failed to settle a short position of more than 11 million shares of Orexigen Therapeutics, Inc. (OREX) that Merrill Lynch ultimately closed at a loss of over $7 million. At this time, MSMB Capital also suffered more than $1 million in other trading losses. Based on these trading losses, the value of assets in MSMB Capital’s bank and brokerage accounts, not including the OREX losses at Merrill Lynch, declined from more than $1.12 million on January 31, 2011 to $58,500 at the end of February 2011. MSMB Capital did not engage in any trading after February 2011.
For months following the complete loss of the investments in MSMB Capital and the end of trading activity, Shkreli continued to send fabricated performance updates to investors that touted profits of as high as forty percent since inception. In September 2012, more than eighteen months after MSMB Capital had lost all its assets, Shkreli sent an email to MSMB Capital investors informing them that he was winding down the fund and that “original MSMB investors (2009) have just about doubled their money net of fees.” Shkreli also misappropriated funds from MSMB Capital by withdrawing more than $200,000 from MSMB Capital, which was far in excess of the one percent management fee and the twenty percent net profit incentive allocation permitted by the partnership agreement.
The MSMB Healthcare Hedge Fund Scheme
Following the collapse of MSMB Capital after the failed OREX trades, from approximately February 2011 to November 2012, Shkreli solicited investments in MSMB Healthcare from potential investors while concealing from them his disastrous past performance as a portfolio manager for MSMB Capital and Elea Capital and the $7 million liability that Shkreli owed Merrill Lynch for the February 2011 OREX trades. Shkreli also falsely represented that MSMB Healthcare had $55 million in assets under management. Based on these and other false representations, Shkreli and his co-conspirators induced approximately $5 million in investments from thirteen investors.
As with MSMB Capital, Shkreli provided MSMB Healthcare investors with performance updates that were based, in large part, on an internal inflated valuation of Retrophin, his private biopharmaceutical company that had received investments from MSMB Healthcare. Here again, Shkreli misappropriated funds by withdrawing money from MSMB Healthcare that was far in excess of the one percent management fee and the twenty percent net profit incentive allocation permitted by the partnership agreement. Additionally, without the investors’ knowledge or consent, Shkreli improperly used MSMB Healthcare assets to pay for obligations that were not the responsibility of MSMB Healthcare, including using at least $900,000 to settle claims brought by Merrill Lynch in connection with the failed OREX trades.
The Retrophin Misappropriation Scheme
Between March 2011 and September 2014, Shkreli and Greebel, together with others, engaged in a scheme to defraud Retrophin by misappropriating Retrophin’s assets in an effort to pay off Shkreli’s personal and unrelated professional debts and obligations. Specifically, Shkreli and Greebel defrauded Retrophin by causing it to: (i) transfer Retrophin shares to MSMB Capital even though MSMB Capital never invested in Retrophin; (ii) enter into settlement agreements with defrauded MSMB Capital and MSMB Healthcare investors to settle liabilities owed by Shkreli and the funds; and (iii) enter into sham consulting agreements with other defrauded MSMB Capital, MSMB Healthcare, and Elea Capital investors as an alternative means to settle liabilities owed by Shkreli and his hedge funds.
In December 2012, despite the fact that Retrophin’s books and records did not reflect any investments by MSMB Capital, Shkreli and Greebel engaged in a series of fraudulent and backdated transactions to create the appearance of an investment by MSMB Capital in Retrophin. They orchestrated these transactions, in part, to support Shkreli’s false representations to the U.S. Securities and Exchange Commission in November 2012 that MSMB Capital was still in operation and had $2.6 million in assets under management.
Between February 2013 and August 2013, Shkreli and Greebel, together with others, caused Retrophin to enter into settlement agreements with MSMB Capital and MSMB Healthcare investors to resolve their claims and threats of claims which were based on Shkreli’s false representations about the exceptional performance of the funds. Notably, Shkreli and Greebel did not seek authorization from the Board prior to entering into these fraudulent settlements. Shkreli and Greebel caused Retrophin to pay more than $3.4 million in cash and RTRX stock to settle claims with seven MSMB Capital and MSMB Healthcare investors.
In August 2013, when Retrophin’s external auditor questioned the settlement agreements and determined that Retrophin was not responsible for the claims resolved in the settlement agreements, Shkreli and Greebel caused MSMB Capital and MSMB Healthcare to execute indemnification agreements and promissory notes for the benefit of Retrophin even though they knew that the funds had no assets. Shkreli and Greebel, together with others, then devised an alternative approach to settle with the remaining defrauded hedge fund investors, namely, settlement agreements under the guise of consulting agreements. On October 16, 2013, when Shkreli initially questioned this new approach, Greebel explained, “We can call it a settlement agreement, but given [the auditor’s] recent behavior they may require it to be disclosed in the financials. I was trying to prevent that issue.” Between September 2013 and March 2014, Shkreli and Greebel caused Retrophin to enter into four sham consulting agreements with defrauded investors from the funds. Retrophin did not receive any legitimate consulting services based on these sham agreements, but paid more than $7.6 million in cash and RTRX stock to settle claims that the auditors had previously determined were not the responsibility of Retrophin.
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The criminal case has been assigned to United States District Judge Kiyo A. Matsumoto. If convicted, Shkreli and Greebel each face a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Winston Paes, Alixandra Smith, and David Kessler are in charge of the prosecution.
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The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendants:
MARTIN SHKRELI
Age: 32
Residence: New York, New YorkEVAN GREEBEL
Age: 42
Residence: Scarsdale, New YorkE.D.N.Y. Docket No. 15-CR-637 (KAM)
[1] The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Former East Bay Mortgage Brokerage Owner Sentenced to PrisonRead the Press Release
SAN FRANCISCO – Gabriela Tigges was sentenced today to 12 months and one day in prison, and ordered to pay a $20,000 fine and $208,186.78 in restitution, for her involvement in a bank fraud scheme related to a fraudulent mortgage loan application and a fraudulent mortgage loan modification application, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Tigges, 60, of Martinez, Calif., pleaded guilty on October 1, 2015, to two counts of bank fraud. According to the plea agreement, Tigges admitted she caused a client to submit a fraudulent mortgage loan application to World Savings Bank in approximately October 2005. She also admitted submitting a fraudulent mortgage loan modification. Tigges’ conduct eventually cost the bank $208,186.78
The loan at issue was for the purchase of Tigges’s own home by a client of her mortgage brokerage located in the East Bay, Pan American Funding Group. That mortgage loan application contained numerous misrepresentations regarding the transaction and Tigges’s client. For example, the loan application inflated Tigges’s client’s income and misrepresented the source of that individual’s down payment, which had been provided by Tigges. The application also failed to disclose that Tigges and her client had agreed on a much higher purchase price than that disclosed to the lender and that Tigges would be placing her own $275,000 lien on the property after World Savings funded the loan. Ultimately, Tigges’ client was unable to make the mortgage payments and, in early 2008, deeded the property back to Tigges.
Tigges then posed as her client to negotiate a modification of the loan with the mortgage holder, Wachovia Mortgage (which, by then, had purchased World Savings before being purchased by Wells Fargo Bank). Tigges later stopped making payments on the loan (which was still held in Tigges’ client’s name), prompting Wells Fargo to foreclose on the property in September 2010. Wells Fargo sold the property in 2011, and calculated its losses on the loan to be $208,186.78.
Tigges, was indicted by a federal grand jury on August 9, 2012. She was charged with two counts of bank fraud and one count of aggravated identity theft.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following a guilty plea on two counts in violation of 18 U.S.C. § 1344. The government agreed to move for dismissal of the aggravated identity theft charge as part of the plea agreement. Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release, imposed a $20,000 fine, and ordered the defendant to pay restitution to Wells Fargo in the amount of $208,186.78. The defendant has been in custody since April 2015, when she returned to the United States from Brazil after a five-year absence from this country.
Assistant U.S. Attorney Kyle F. Waldinger is prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Bank Manager at Fulton Bank in Lancaster Charged with FraudRead the Press Release
PHILADELPHIA – Fernando Sanchez, 42, of Lancaster, Pennsylvania, was charged yesterday by Information with three counts of wire fraud, announced United States Attorney Zane David Memeger. While employed as a bank manager at Fulton Bank in Lancaster, Sanchez fraudulently took approximately $99,105.09 from the bank account of the Manor Shopping Center Merchants Association.
According to the information, from about May 2010 until about July 2014, Sanchez took money from the Merchants Association bank account to pay his own personal expenses. He removed money from the account using dozens of cashier’s checks which he deposited in his own account in another bank, and also by making online electronic transfers of funds to pay his personal expenses.
If convicted, the defendant faces a maximum possible sentence of 60 years in prison, three years of supervised release, restitution, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fifth Conspirator Admits to the Robbery of an Owings Mills Jewelry Store Including Kidnapping and Brandishing a GunRead the Press Release
Baltimore, Maryland – Aleksey Sosonko, age 35, of Owings Mills, Maryland, pleaded guilty today to conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Sosonko was part of a conspiracy to rob an Owings Mills, Maryland, jewelry store. In the course of the conspiracy, Sosonko participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.
Specifically, on July 22, 2012, Sosonko, MaratYelizarov, Grigory Zilberman and another conspirator robbed a home in Reisterstown, Maryland. Zilberman was familiar with the layout of the home, having been there as a guest on a number of occasions. Zilberman knew that the residents of the home owned firearms and he had handled and fired some of the weapons. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, Sosonko, Yelizarov, Zilberman and the co-conspirator traveled to the home in Reisterstown. Dressed all in black and wearing ski masks and latex gloves, the co-conspirators entered the home through the unlocked garage door. The co-conspirator was armed with a handgun when they entered the residence. Sosonko, Yelizarov, and Zilberman grabbed long guns and carried them throughout the home. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. One of the co-conspirators beat the resident when he tried to resist while another conspirator tied up the resident with a belt and a cord. For approximately one hour the robbers ransacked the home looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
A co-conspirator devised a plan to commit an armed robbery of a jewelry store, and recruited Sosonko, Yelizarov, Zilberman, Igor Yasinov, Peter Magnis and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to Sosonko’s plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, Sosonko, Yelizarov, Yasinov, Magnis and another conspirator met at the residence of a sixth conspirator to prepare for the kidnapping and robbery, including handling the firearms and donning masks and gloves. Yelizarov and one of the conspirators then drove to Zilberman’s home in order to alert the others of the employee’s departure. Early in the morning on January 16, 2013, Yelizarov and the other conspirator followed the employee from Zilberman’s home for a while, and then stopped. Meanwhile, Sosonko,Yasinov, Magnis and another co-conspirator, driving in a rental car obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, Sosonko, Yasinov, Magnis and the other co-conspirator removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Sosonko,Yasinov, Magnis, and the co-conspirator continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and a co-conspirator drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. Yelizarov and another co-conspirator were stationed near the jewelry store to act as “look-outs.” Sosonko and a co-conspirator entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car. Throughout the kidnapping and robbery, Sosonko and the other conspirators used their cell phones to communicate with each other.
On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, the conspirator traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Sosonko received at least $60,000 for his role in the crimes.
Sosonko faces a maximum sentence of 20 years in prison for the robbery conspiracy; a maximum of life in prison for kidnapping; and a minimum mandatory sentence of seven years, and a maximum of life in prison for brandishing a firearm in relation to a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 2, 2016.
Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, and Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, Igor Yasinov, age 26, of Baltimore, and Marat Yelizarov, age 28, of Pikesville, previously pleaded guilty to their roles in the robbery conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Federal Jury Finds Pojoaque Pueblo Man Guilty on Assault and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Santa Fe, N.M., returned a verdict last night finding Gerald James Viarrial guilty on assault and firearms charges after a three-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge William McClure of District IV of the BIA’s Office of Justice Services.
Viarrial, 53, a member of Pojoaque Pueblo who resides in Santa Fe, N.M., was charged with assault, firearms and child abuse offenses in a seven-count indictment filed on Jan. 21, 2015. The indictment charged Viarrial with assaulting a female and two minors with a firearm; assaulting one of the minors by strangulation, causing him to suffer serious bodily injury; committing child abuse; and brandishing a firearm during a crime of violence. The indictment alleged that Viarrial committed six of the seven crimes in Indian Country in Santa Fe County on a date between July 15, 2010 and Aug. 15, 2010, and that the assault resulting in serious bodily injury occurred on March 24, 2014. The female victim is Viarrial’s former intimate partner and the mother of his children (mother).
Law enforcement authorities first learned about Viarrial’s criminal conduct on March 24, 2014, when they received a verbal report of child abuse from a social service provider. The report indicated that a teenager, one of the minor male victims, had requested help to keep his mother, his siblings and himself safe from abuse from Viarrial. Upon receipt of that report, the BIA and Pojoaque Pueblo Tribal Police Department initiated an investigation which resulted in the filing of tribal charges against Viarrial on March 31, 2014, and subsequently, the filing of federal charges against Viarrial. The related tribal court charges against Viarrial were dismissed in favor of federal prosecution.
Trial of the case began on Dec. 14, 2015, and concluded last night around 9:00 p.m., when the jury returned a verdict finding Viarrial guilty on all four assault charges and the firearms charge. The United States dismissed one of the child abuse charges before the case was submitted to the jury, and the jury acquitted Viarrial on the second child abuse charge.
During the trial, the mother testified that in Aug. 2010, Viarrial forced her and her seven children to accompany him to a shooting range located in Pojoaque Pueblo. Upon their return to their home, Viarrial became enraged when he could not locate keys for one of his vehicles. He angrily blamed the children for losing the keys, and forced the mother and the children back to the shooting range to search for the keys. When they were unable to find the keys, Viarrial ordered the mother and children to line up and paced in front of them, firearm in hand, as he yelled at them. The mother testified that Viarrial raised the handgun and pointed it at the two oldest children, who were then 11 and 13 years old, and threatened to kill them for being “worthless.” The mother observed this while holding her six-month old infant and thinking that Viarrial was going to kill all of them. At that point, Viarrial became distracted by a telephone call and eventually permitted the mother and children to return home.
The mother and two minor male victims, who also testified about the Aug. 2010 ordeal, testified that they were too scared of Viarrial to report the assault. The eldest of the two minor male victims testified that on March 23, 2014, he reported Viarrial’s continuing abusive behavior to the director of the Pojoaque Pueblo Social Services. The teenager told the director that he was worried about what Viarrial might do if he contacted law enforcement authorities. The day after the teenager reported Viarrial’s abusive behavior, Viarrial assaulted him by strangling him. Several witnesses witnessed the assault during which Viarrial told the teenager, “if you ever tell the police what I do, I will kill you.”
Viarrial testified in his own defense, and denied assaulting the mother and children in Aug. 2010. He also denied assaulting the teenager in March 2014.
“The Justice Department has made the safety of Native American women a top priority because violence against them and their children has a devastating impact throughout tribal communities,” said U.S. Attorney Damon P. Martinez. “We are committed to working with tribal communities to decrease the number of Native American women who fall victim to violence; to strengthen the capacity of tribal governments to respond to violent crimes; and to ensure that abusers are held accountable.”
“BIA’s Office of Justice Services is committed to providing the necessary resources to enhance the federal response to addressing violence against Native women and to assist tribes in their efforts to ensure safety for Native women and their children,” said BIA Special Agent in Charge William McClure. “I commend the BIA agents and the officers of the Pojoaque Pueblo Tribal Police Department for the exemplary way in which they responded to the report of abuse that ultimately led to last night’s guilty verdict against Viarrial.”
At sentencing, Viarrial faces a statutory maximum penalty of ten years in prison on each of the four assault charges, and a mandatory minimum penalty of seven years on the firearms charge. The sentence imposed on the firearms charge must be served consecutive to any sentence imposed on the assault charges. Viarrial remains in federal custody pending sentencing which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Pojoaque Pueblo Tribal Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Kyle T. Nayback and Novaline D. Wilson pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Federal Jury Finds Cruise Ship Employee Guilty of Smuggling Cocaine into the United StatesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Desrick Gordon (23, St. Vincent and the Grenadines) guilty of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and possession with the intent to distribute 5 kilograms or more of cocaine. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for March 11, 2016. Gordon was indicted on August 21, 2015.
According to evidence presented at trial, Gordon was part of a drug distribution ring that imported cocaine into the United States from Roatan, Honduras using cruise ship employees at several ports in the United States. Gordon, along with five other crewmen from Norwegian Cruise Line, received packages of cocaine from a source of supply in Honduras while the cruise ship was docked there. The packages ranged from 750 grams to a full kilogram of cocaine.
Once the ship had docked in Tampa, the crewmen gathered at a restaurant near the port to remove their secreted cocaine packages. They then met with two local drug traffickers, who had ties to the Honduran source of supply, to provide them with the packages of cocaine. The two local traffickers were stopped by law enforcement after leaving the Channelside District. Agents seized 10 packages of cocaine with a total weight of more than 7.5 kilograms. In addition, agents also seized more than $50,000 from the crewmen.
The five other cruise ship employees, Jason Carmichael, Teffan Delice, Johnson Cherubin, Alfred Ince, and Arkine John, previously pleaded guilty for their roles in this case. They will be sentenced in January 2016.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Gregory Nolan.
Federal Jury Convicts Pittsburgh Man on Drug ChargeRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury of nine women and three men found Rodney Howard guilty of one count of Possession with Intent to Distribute 100 Grams or More of Heroin, United States Attorney David J. Hickton announced today.
Rodney Howard, 31, was tried before United States District Judge Mark R. Hornak in Pittsburgh, Pennsylvania..
According to Assistant United States Attorneys Cindy K. Chung and Stephen Gilson, the evidence presented at trial established that on or about Sept. 18, 2014, Howard possessed with the intent to distribute 100 grams or more of a mixture and substance which contained heroin, a Schedule I controlled substance.
Judge Hornak scheduled sentencing for April 18, 2016 at 2 p.m. The law provides for a maximum total sentence of not less than five years and up to forty years in prison, a fine of $5,000,000, 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, if any, of the defendant.
The Federal Bureau of Investigation and the Allegheny County Sheriff’s Office conducted the investigation that led to the prosecution of Howard.
Federal Jury Convicts North Carolina Couple of FraudRead the Press Release
GREENEVILLE, Tenn. - Following a 13-day trial in U.S. District Court, a jury convicted Ricky Anthony Lanier, 48, and his wife Katrina Reshina Lanier, 43, both of LaGrange, N.C., of conspiracy to commit wire fraud, wire fraud, and major fraud against the United States.
Sentencing is set for 9:00 a.m., on June 20, 2016, in U.S. District Court in Greeneville. Ricky Lanier faces a possible sentence of up to 60 years in prison and $1 million in fines; Katrina Lanier faces a possible sentence of up to 50 years in prison and $750,000 in fines. The Laniers agreed to forfeit their interests in approximately $170,000 in funds seized from bank accounts as well as five houses in Kinston, N.C., purchased with proceeds of the fraud.
According to the evidence presented at trial, the Laniers conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Department of Veterans Affairs’ (VA) Service-Disabled Veteran-Owned Small Business (SDVOSB) program and the Small Business Administration’s (SBA) 8(a) Business Development program. The scheme involved false representations that JMR Investments was eligible as an 8(a) business and that Kylee Construction was eligible as an SDVOSB and an 8(a) business. Ricky Lanier, who had previously owned and operated an 8(a) business receiving government contracts, became ineligible to participate in the 8(a) program after that business graduated from the 8(a) program in 2008. Lanier used a friend and service-disabled veteran as the purported owner of Kylee Construction, representing that the friend was involved in the daily management of the business, even while the friend was working for a government contractor in Afghanistan. The Laniers used a business owned by Ricky Lanier’s college roommate, JMR Investments, as a front to obtain construction contracts from the National Park Service and other federal agencies under the 8(a) program, misrepresenting the friend’s involvement in the management and operation of the business. The scheme also involved sub-contracting out all or almost all of the work on the contracts in violation of program requirements. Among other contracts, Ricky Lanier defrauded the National Park Service in connection with a contract to replace a wastewater treatment facility at the Tremont Institute in the Great Smoky Mountains National Park, falsely representing that subcontractor costs were over $400,000 more than they actually were, resulting in the award of a contract for $1.1 million when all work on the project was performed by a Kodak contractor for $550,000. Lanier also fraudulently obtained a $1.3 million construction contract at the James H. Quillen VA Medical Center which had been set aside for SDVOSBs.
As a result of the false representations, Kylee Construction was awarded over $5 million in government contracts and JMR Investments was awarded over $9 million in government contracts, to include contracts for construction at the VA Medical Center at Mountain Home, Tenn., and in the Great Smoky Mountains National Park. The Laniers received almost $2 million in financial benefit from the scheme, using accounts of the shell companies for payment of personal expenses.
Nancy Harr, Acting U.S. Attorney for the Eastern District of Tennessee said, “The integrity of the Service-Disabled Veteran-Owned Small Business program is vital to its continued success. The U.S. Attorney’s Office will aggressively pursue and prosecute those who attempt to defraud that federal program and therefore the United States.”
“Consistent with Public Law 109-461, awarding contracts to Service-Disabled Veteran-Owned Small Business (SDVOSB) firms is the highest priority within the Small Business programs for VA. Today’s guilty verdict is indicative of the hard work and successful relationships between VA OIG, DOJ, and our law enforcement partners to protect the integrity of the SDVOSB program, and deter those who attempt to defraud our government,” said Special Agent in Charge Monty Stokes, VA, Office of Inspector General, Southeast Field Office.
Kevin Kupperbusch, Special Agent in Charge, SBA, Office of Inspector General (OIG), stated, “Effective partnerships among several law enforcement agencies as well as aggressive investigative efforts were key in bringing these defendants to justice. These convictions should serve as a deterrent to others who intend to take advantage of disabled military veterans and defraud the Federal Government through its various contracting programs.”
Special Agent in Charge Bill Gulsby, Department of Interior, OIG, joined in recognizing the efforts of the investigative team in protecting these important programs.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the VA, OIG; SBA, OIG; with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Neil Smith and David Gunn represented the United States at trial.
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Ellwood City Man Charged with Possessing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A Beaver County resident was indicted on Dec. 16, 2015, by a federal grand jury in Pittsburgh, Pennsylvania, on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment named Lucas Avery Klobetanz, 39, formerly of Ellwood City, Pa., as the sole defendant.
According to the indictment, on or about Oct. 8, 2015, Klobetanz distributed videos and images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about Dec. 4, 2015, Klobetanz knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 60 years in prison, a fine of $500.000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
El Salvadoran National Pleads Guilty to False Claim to U.S. CitizenshipRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIGUEL MENDEZ-GUSMAN, age 36, a citizen of El Salvador, pled guilty today to a one-count Indictment for false claim to United States citizenship.
According to the Indictment, MENDEZ-GUSMAN falsely and willfully represented himself to be a citizen of the United States on or about July 28, 2015.
MENDEZ-GUSMAN faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for March 17, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
El Paso Businesswoman Sentenced in False Tax Return CaseRead the Press Release
In El Paso today, 44 year-old Blanca Arcelia Ramos Estrada, owner of Blanca and Sons Tax Service in El Paso, appeared before United States District Judge Kathleen Cardone and was sentenced to one year and a day in federal prison followed by 1 year of supervised release, ordered to pay $140,000 in restitution and ordered to perform 100 hours of unpaid community service for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
On June 22, 2015, Estrada pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. By pleading guilty, Ramos admitted she fraudulently inflated income amounts for her clients in order to maximize their refunds under the Earned Income (EIC) Provisions of the tax code. The IRS investigation determined that Ramos aided and assisted in the preparation and filing of a number of similar false tax returns with combined losses of approximately $140,000.
IRS Criminal Investigation Special Agent in Charge William Cotter said, “Taxpayers should choose carefully when hiring a tax preparer to avoid unscrupulous preparers, such as Ms. Ramos, who file false and fraudulent returns to defraud the government and their own clients. Our Special Agents use their investigative and financial expertise to detect and hold accountable abusive preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. Taxpayers should always insist on reviewing their return before signing it, and question any items they do not fully understand. Today’s sentence is a firm reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public.”
This case was investigated by the IRS-CI. Assistant United States Attorneys Steven R. Spitzer and William R. Harris prosecuted this case on behalf of the Government.
East St. Louis Woman Pleads Guilty to Firearm ChargesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Delenthegia "Del" Beard-Hawkins, 54, of East St. Louis, Illinois, pleaded guilty today to a Superseding Indictment which charges her and David L. Bradford in Count 3 with Transfer of a Firearm to a Previously Convicted Felon, and which charges her, alone, in Count 4 with Unlawful User in Possession of a Firearm. The remaining charges name David L. Bradford alone. Bradford is also of East St. Louis and formerly of Madison, Illinois.
As to Bradford, Please Note - An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty of all charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The maximum penalty for each of Counts 3 and 4 is up to 10 years in federal, a $250,000 fine, 3 years’ supervised release and a $100 special assessment.
According to court documents, with respect to Count 3, on February 22, 2014, Beard-Hawkins purchased a Romarm Cugir Draco, 7.62 x 39 mm caliber semiautomatic pistol in Missouri and traveled with it to East St. Louis, Illinois, where she left it with Bradford knowing or having reasonable cause to believe that Bradford was a convicted felon. With respect to Count 4, on March 4, 2014, Beard-Hawkins was arrested in possession of a Magnum Research Desert Eagle, .50 caliber semiautomatic pistol and an amount of marihuana. Beard-Hawkins is an illegal user of marihuana and had been illegally using marihuana on a regular basis for several months prior to her arrest on March 4, 2014.
Bradford’s trial on the Superseding Indictment is scheduled for April 2016.
Information leading to the charges against Beard-Hawkins and Bradford was obtained in an investigation conducted by the Bureau of Alcohol, Tobacco Firearms and Explosives. The case is being handled by Assistant United States Attorney Kit Morrissey.
District Man Pleads Guilty to Second-Degree Murder While Armed in Shooting of Cousin in Northeast WashingtonRead the Press Release
WASHINGTON – Roosevelt Robinson, 67, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed stemming from the shooting death last summer of his cousin, U.S. Attorney Channing D. Phillips announced.
Robinson pled guilty in the Superior Court of the District of Columbia. He is to be sentenced on Feb. 26, 2016, by the Honorable Michael Ryan.
According to the government’s evidence, on Friday, Aug. 21, 2015, at approximately 10:35 a.m., Robinson rode his bicycle to the house of his cousin, Loretta Carswell, 63, in the 3700 block of 18th Street NE. He confronted Ms. Carswell outside, accusing her of stealing a ring from him that he intended to give to his daughter. This was an ongoing accusation based on a time when Ms. Carswell safeguarded some of Robinson’s valuables. Every time this issue had been raised, Ms. Carswell denied knowing what Robinson was talking about.
When Robinson confronted Ms. Carswell on Aug. 21, 2015 and asked her about the ring, Ms. Carswell said she did not have it and gave Robinson a look that he interpreted as dismissive. Robinson told her: “Girl, you know I should kill you for doing what you did.” Ms. Carswell responded by saying, “You can go ahead and kill me if you want to, I done told you I don’t have your ring.” At that point, Robinson pulled out a Ruger .357-caliber Magnum revolver and shot Ms. Carswell one time in the head in front of her home. The bullet entered her forehead.
Immediately after the shooting, Robinson rode his bicycle down the street to his home in the 3600 block of 18th Street NE. Robinson barricaded himself inside until the Metropolitan Police Department (MPD) was able to arrest him approximately 30 hours later. In an interview with the police, Robinson confessed to shooting his cousin in the head.
In announcing the guilty plea, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker of the Victim/Witness Assistance Unit and Paralegal Specialist Vanessa Trent-Valentine. He also praised the efforts of Assistant U.S. Attorney Christine Macey, who investigated and prosecuted the case.
Des Allemands Man Pleads Guilty to Mail Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK JOSEPH DURAN, age 29, of Des Allemands, pled guilty today to a three-count Indictment charging him with mail fraud.
According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. On August 25, 2010, DURAN submitted a fraudulent application to the GCCF claiming that he worked as a deckhand on a fishing vessel during the year 2010, before the oil spill. Documentation in support of DURAN’s claim included a falsified letter from a commercial fisherman indicating that DURAN had worked as a deckhand on his fishing vessel for a twelve month period before the spill, when in fact he had not. Based on DURAN’s fraudulent application, the GCCF mailed checks totaling $28,000 to DURAN to which he was not entitled.
DURAN faces a maximum prison term of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for March 17, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Departments of Justice, Homeland Security and Labor Announce Selection of Phase II Anti-Trafficking Coordination TeamsRead the Press Release
The U.S. Departments of Justice, Homeland Security and Labor announced today the selection of six new Anti-Trafficking Coordination Teams. These teams will lead Phase II of the ACTeam Initiative, an interagency effort to streamline federal criminal investigations and prosecutions of human trafficking offenses.
The six new ACTeams will be based in Cleveland; Minneapolis; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Each team will serve under the leadership of the local U.S. Attorney and the highest-ranking federal investigative agents in the regional field offices of the FBI, U.S. Immigration and Customs Enforcement (ICE) and Department of Labor.
“Human trafficking robs victims of their liberty, exploits them for labor and for sex, and infringes not only on their rights, but on their essential humanity,” said Attorney General Loretta E. Lynch. “Through the ACTeam Initiative, we are harnessing resources across the federal government to ensure that our multi-agency fight against human trafficking is as comprehensive and effective as possible. In the days and months ahead, the Department of Justice will continue to work alongside our federal partners to prosecute wrongdoing, support survivors, and bring this devastating crime to an end.”
“The Anti-Trafficking Coordination Team (ACTeam) Initiative is an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh C. Johnson of Homeland Security. “It highlights our commitment to increase capacity to rescue victims and bring perpetrators of these terrible crimes to justice. Our collective efforts are amplified when we work together in furtherance of shared missions like this. And, through DHS’s Blue Campaign, we will remain focused on ending human trafficking in the United States.”
“A trafficking victim shouldn’t have to spend time trying to determine whether they have a Department of Labor issue or a Department of Justice issue,” said Secretary Thomas Perez of the Department of Labor. “Their basic rights are being violated, and we can accomplish so much more to redress those crimes when we work together. The Anti-Trafficking Coordination Team Initiative, by bringing our respective departments’ collective resources and expertise to bear, is helping us build a whole even greater than the sum of our individual parts.”
“Human trafficking is a modern day form of slavery that destroys lives and exploits the most vulnerable in our society,” said Director James B. Comey of the FBI. “These Anti-Trafficking Coordination Teams are the most effective way to investigate human trafficking by allowing us to work in a collaborative, victim-oriented manner.”
The new teams were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).
The new ACTeams will collaborate with the human-trafficking subject matter experts in the Federal Enforcement Working Group to implement a strategic action plan in their respective districts. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice.
Launched in 2011 by the Attorney General and Secretaries of Labor and Homeland Security, the ACTeam Initiative established six Phase I ACTeams in Atlanta; El Paso, Texas; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; and Miami. In these ACTeam districts, prosecutions of forced labor, international sex trafficking and adult sex trafficking rose even more markedly than they did nationally. For instance, the number of defendants convicted rose 86 percent in ACTeam districts, compared to 14 percent in non-ACTeam districts, and 26 percent nationwide. Based on this demonstrated record of success, Attorney General Lynch, Labor Secretary Perez and Homeland Security Secretary Johnson launched Phase II of the ACTeam Initiative earlier this year. The fight against human trafficking remains a top priority for the three officials and they have committed to collaborating with other governmental and non-governmental partners to continue to enhance their anti-trafficking efforts.
Departments of Justice, Homeland Security and Labor Announce Selection of Phase II Anti-Trafficking Coordination TeamsRead the Press Release
WASHINGTON – The U.S. Departments of Justice, Homeland Security and Labor announced today the selection of six new Anti-Trafficking Coordination Teams. These teams will lead Phase II of the ACTeam Initiative, an interagency effort to streamline federal criminal investigations and prosecutions of human trafficking offenses.
The six new ACTeams will be based in Cleveland; Minneapolis; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Each team will serve under the leadership of the local U.S. Attorney and the highest-ranking federal investigative agents in the regional field offices of the FBI, U.S. Immigration and Customs Enforcement (ICE) and Department of Labor.
“Human trafficking robs victims of their liberty, exploits them for labor and for sex, and infringes not only on their rights, but on their essential humanity,” said Attorney General Loretta Lynch. “Through the ACTeam Initiative, we are harnessing resources across the federal government to ensure that our multi-agency fight against human trafficking is as comprehensive and effective as possible. In the days and months ahead, the Department of Justice will continue to work alongside our federal partners to prosecute wrongdoing, support survivors, and bring this devastating crime to an end.”
"The Anti-Trafficking Coordination Team (ACTeam) Initiative is an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh C. Johnson of Homeland Security. “It highlights our commitment to increase capacity to rescue victims and bring perpetrators of these terrible crimes to justice. Our collective efforts are amplified when we work together in furtherance of shared missions like this. And, through DHS’s Blue Campaign, we will remain focused on ending human trafficking in the United States.”
“A trafficking victim shouldn’t have to spend time trying to determine whether they have a Department of Labor issue or a Department of Justice issue,” said Secretary Thomas Perez of the Department of Labor. “Their basic rights are being violated, and we can accomplish so much more to redress those crimes when we work together. The Anti-Trafficking Coordination Team Initiative, by bringing our respective departments’ collective resources and expertise to bear, is helping us build a whole even greater than the sum of our individual parts.”
“Human trafficking is a modern day form of slavery that destroys lives and exploits the most vulnerable in our society,” said Director James B. Comey of the FBI. “These Anti-Trafficking Coordination Teams are the most effective way to investigate human trafficking by allowing us to work in a collaborative, victim-oriented manner.”
The new teams were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).
The new ACTeams will collaborate with the human-trafficking subject matter experts in the Federal Enforcement Working Group to implement a strategic action plan in their respective districts. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice.
“We are honored that the District of Oregon has been selected as an ACTeam,” said United States Attorney Billy J. Williams. “We have a fantastic team of agents and prosecutors who are dedicated to identifying and fighting human trafficking in all forms. We have been working closely with our partners at the FBI, HSI/ICE, the Department of Labor, and the Civil Rights Division at DOJ, with positive results, and are excited to enhance our ability to rescue victims and prosecute traffickers through this intensive and collaborative national initiative.”
“We believe that human trafficking is a form of modern day slavery that – rightly – demands our attention,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “That we were chosen to receive one of the Anti-Trafficking Coordination teams is testament to the fact that we have both a significant need and established partnerships already in place to take on this challenge. The victims deserve nothing less.”
“Trafficking victims need all of us in law enforcement to hear their cries for help,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) in Seattle. “No one should be forced to live in a world of fear, isolation and servitude --particularly in our country, which prides itself on its freedoms. Our collective team efforts will enable us to rescue more victims and ensure the perpetrators of these crimes are brought to justice.”
Launched in 2011 by the Attorney General and Secretaries of Labor and Homeland Security, the ACTeam Initiative established six Phase I ACTeams in Atlanta; El Paso, Texas; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; and Miami. In these ACTeam districts, prosecutions of forced labor, international sex trafficking and adult sex trafficking rose even more markedly than they did nationally. For instance, the number of defendants convicted rose 86 percent in ACTeam districts, compared to 14 percent in non-ACTeam districts, and 26 percent nationwide. Based on this demonstrated record of success, Attorney General Lynch, Labor Secretary Perez and Homeland Security Secretary Johnson launched Phase II of the ACTeam Initiative earlier this year. The fight against human trafficking remains a top priority for the three officials and they have committed to collaborating with other governmental and non-governmental partners to continue to enhance their anti-trafficking efforts.
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Defendant Sentenced in Manhattan Federal Court to 30 Years in Prison for Shooting at Police Officer and Murdering A 19-Year-Old VictimRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DARREN MORRIS was sentenced yesterday in Manhattan federal court to 30 years in prison on firearms charges relating to a July 2009 Bronx murder and a November 2009 attempted shooting of a New York City Police Department (“NYPD”) police officer.
Manhattan U.S. Attorney Preet Bharara said: “As part of a Bronx robbery crew, Darren Morris lived a life of violence, including participating in a July 2009 murder and a November 2009 attempted shooting of a police officer. With his conviction and sentence, Morris will no longer pose a threat to the safety of the Bronx community he once terrorized.”
MORRIS was originally charged in September 2011 with robbery and firearms offenses, in connection with his involvement in an attempted home invasion robbery and subsequent police shooting occurring on or about November 2009. During the robbery, MORRIS struck one of the victims in the head with a gun, causing the gun to discharge one round. While fleeing the scene of the robbery, MORRIS also fired several shots at a police officer who pursued him. Two other defendants, Michael Campbell and Alphonso Campbell, were also charged in connection with the attempted robbery.
In January 2013, the United States Attorney’s Office obtained a 24-count Superseding Indictment charging nine defendants, including MORRIS and Michael Campbell, in a wide-ranging robbery conspiracy, and numerous robbery, attempted robbery, carjacking, and firearm charges. As part of that Superseding Indictment, Michael Campbell and Patrick Lewis were charged in the December 26, 2010, murder of victim Patrick Woodburn, 20, of the Bronx, in the area of 3527 Mickle Avenue in the Bronx. The Superseding Indictment alleged that MORRIS, Lewis, Michael Campbell, and other members of their Bronx robbery crew committed a number of armed robberies of drug traffickers and commercial businesses between approximately 2009 and 2012.
Further investigation revealed that MORRIS and Michael Campbell participated in the shooting and murder of victim Jordan Jones, 19, of the Bronx, on or about July 5, 2009, in the area of Monticello Avenue and Nereid Avenue in the Bronx. On March 18, 2014, the United States Attorney’s Office obtained another Superseding Indictment, adding murder charges against MORRIS relating to the killing of Jones.
On February 11, 2014, Michael Campbell pled guilty to participating in the murders of both Woodburn and Jones. On July 1, 2014, the Honorable John F. Keenan sentenced Michael Campbell to 30 years in prison. On February 18, 2014, Lewis pled guilty to participating in the murder of Woodburn, and to his involvement in the charged robbery conspiracy. On September 17, 2014, Judge Keenan sentenced Lewis to 25 years in prison. A number of the other charged members of the robbery crew also pled guilty, and received lengthy sentences (a full table follows).
On September 23, 2014, MORRIS pled guilty to two firearm counts, and admitted during his plea allocution to discharging his firearm during his flight from an attempted home invasion robbery in November 2009, and to shooting and killing Jones in July 2009 in connection with an ongoing dispute with a rival criminal group. On December 16, 2015, Judge Keenan sentenced MORRIS to 30 years in prison in relation to those offenses.
* * *
A chart containing the names, charges of conviction, sentencing dates, and sentences imposed on each defendant is attached.
Mr. Bharara praised the investigative work of the NYPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by the Office’s Violent and Organized Crimes Unit. Assistant United States Attorneys Christopher J. DiMase and Jessica Masella are in charge of the prosecution.
U.S. v. Darren Morris, et al.
DEFENDANT
CHARGES OF CONVICTION
SENTENCE DATE
SENTENCE
DARREN MORRIS
Use of a Firearm In Furtherance of a Crime of Violence (2 counts)
December 16, 2015
30 years
MICHAEL CAMPBELL
Use of a Firearm In Furtherance of a Crime of Violence (2 counts)
July 1, 2014
30 years
PATRICK LEWIS
Use of a Firearm In Furtherance of a Crime of Violence & Robbery Conspiracy
September 17, 2014
25 years
JAMAL FRAZER
Use of a Firearm In Furtherance of a Crime of Violence & Robbery Conspiracy
February 25, 2014
154 months
TYRIEK SKYFIELD
Use of a Firearm In Furtherance of a Crime of Violence
January 30. 2014
10 years
PRINCE WAREHAM
Use of a Firearm In Furtherance of a Crime of Violence
January 30, 2014
7 years
RASHID TURNER
Use of a Firearm In Furtherance of a Crime of Violence
January 31, 2014
7 years
ANTHONY FRANCIS
Robbery
February 24, 2014
6 years
ALPHONSO CAMPBELL
Use of a Firearm In Furtherance of a Crime of Violence
April 3, 2013
5 years