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5 February 2016
New York Investment Fund Managers Plead Guilty for Orchestrating Two Multi-Million Dollar Fraud SchemesRead the Press Release
Earlier today, John R. Lakian and Diane W. Lamm, who managed Capital L Financial Group, LLC (Capital L) and Aegis Capital Fund, LLC (Aegis Capital), each pleaded guilty to two counts of securities fraud for defrauding investors out of millions of dollars in two separate schemes. When sentenced, the defendants face a maximum sentence of 20 years’ imprisonment on each count.
Today’s guilty pleas 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).
“The defendants played a confidence game, stealing investors’ hard-earned money through lies and deceit to use for their own purposes” stated United States Attorney Capers. “We remain steadfast in our commitment to the investigation and prosecution of those who prey on investors and enrich themselves by means of financial fraud.”
“Lakian and Lamm misled investors, and capitalized on their misfortune, in an effort to bolster their own financial portfolios. The FBI and our partners will continue our efforts to bring to justice those who employ schemes to take advantage of unwitting victims,” stated FBI Assistant Director-in-Charge Rodriguez.
Between 2009 and 2013, the defendants were involved in two schemes to steal investors’ money. In the first, the defendants obtained more than $11 million by promising Capital L investors that their money would be used to purchase, consolidate, and sell registered investment advisory businesses. Instead, Lakian and Lamm diverted more than $3 million of it to themselves and to entities they owned and controlled. In the second scheme, the defendants perpetrated their fraud through their management of the liquidation of Aegis Capital, a North Carolina-based investment fund. Instead of returning investment proceeds to investors, Lakian and Lamm diverted more than $2 million of investors’ money to themselves and to restaurant businesses they controlled.
Today’s pleas took place before United States District Judge Frederic Block at the United States Courthouse in Brooklyn, New York.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Whitman Knapp is in charge of the prosecution.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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’s 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, visit http://www.StopFraud.gov.
The Defendants:
JOHN R. LAKIAN
Age: 73
New York, New YorkDIANE W. LAMM
Age: 55
New York, New YorkE.D.N.Y. Docket No. 15-CR-0043 (FB)
Muskegon Defendants, Larry Dwayne Diggs and Tunisia Phillips-Lark, Plead Guilty to Drug, Firearm, Witness Tampering, and Perjury OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – Larry Dwayne Diggs, also known as "Montana" and "Montie," of Muskegon, Michigan pled guilty to federal drug, firearm, and witness tampering offenses, U.S. Attorney Patrick Miles announced today. Diggs’ codefendant, Tunisia Phillips-Lark, pled guilty to one count of perjury. Diggs faces a minimum of five years in prison and a maximum of life in prison; Lark faces up to five years in prison.
Diggs admitted at his plea hearing that on July 2, 2015, he possessed a quantity of "crack" cocaine and a Glock pistol while at a gas station in Muskegon, Michigan. He was on his way to sell the "crack" cocaine to a customer and possessed the loaded handgun for protection. Muskegon Township Police were dispatched to the scene on a report of a possible narcotics transaction. Diggs fled when police arrived, leaving behind the handgun and cocaine. Investigation revealed that the handgun was stolen, and that Diggs had previously been convicted of a felony.
Diggs further admitted at his plea hearing that after he was incarcerated, he tampered with a witness who had been subpoenaed to testify against him. He called Phillips-Lark from jail and instructed her to lie to a federal grand jury investigating the July 2, 2015 incident. Phillips-Lark subsequently testified falsely before the grand jury. In addition, Phillips-Lark and Diggs conspired to tamper with another witness so that this witness would not "implicate" Diggs.
Lark, in turn, admitted at her plea hearing that she lied about Diggs when she testified before the federal grand jury. She admitted that she did so to help him try to avoid charges.
The charges in this case are the result of a joint investigation by the Muskegon Township Police Department and the Muskegon Violent Crime Task Force, which includes the Federal Bureau of Investigation (FBI), the Michigan State Police (MSP), and the Muskegon City Police Department. The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and witness tampering in the Muskegon area.
END
Mescalero Apache Man Pleads Guilty to Federal Methamphetamine Distribution ChargeRead the Press Release
ALBUQUERQUE – Wallace Rice, 23, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty this morning in federal court in Las Cruces, N.M., to a methamphetamine distribution charge under a plea agreement with the U.S. Attorney’s Office.
Rice was one of 34 individuals charged with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014 in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Rice was arrested on Dec. 29, 2015, on a criminal complaint charging him with distribution of methamphetamine on March 25, 2015, in Otero County, N.M. According to the complaint, on March 25, 2015, Rice sold approximately one gram of methamphetamine to undercover law enforcement agents in Mescalero.
During today’s proceedings, Rice pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and admitted that on March 25, 2015, he sold .75 grams of pure methamphetamine to an individual who, unbeknownst to him, was an undercover law enforcement agent for $100.00.
At sentencing, Rice faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Rice remains in custody pending a sentencing hearing which has yet to be scheduled.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Alta Braham is prosecuting the tribal cases.
Mentor couple charged with tax evasionRead the Press Release
A husband and wife from Mentor were charged with tax evasion, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Guy Ficco, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.
Edgardo Morales, 55, and Paula Morales, 48, both of Mentor, are charged with attempting to evade taxes. Specifically, a criminal information alleges that from 2010 to 2012, they owned a bar and entertainment business called The 800 Club in Cleveland. They are alleged to have substantially under-reported the business’s revenues to the Internal Revenue Service on the corporate tax returns associated with the business.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by IRS-CI.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Member of International Child Exploitation Conspiracy Sentenced to 216 Months in PrisonRead the Press Release
A Bronx, New York, man was sentenced to 216 months in prison today for his participation in two websites that were operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Section Chief Calvin Shivers of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Karlo Hitosis, 32, was sentenced by U.S. District Judge T.S. Ellis of the Eastern District of Virginia, who also ordered Hitosis to serve 10 years of supervised release. Last year, Hitosis pleaded guilty to one count of conspiracy to produce child pornography. The investigation, Operation Subterfuge, identified more than 300 minor victims in the United States and an estimated 1,600 minor victims were lured to the websites.
In connection with his guilty plea, Hitosis admitted that members of the conspiracy created false profiles on social networking sites, such as YouTube, posing as young teenagers to lure children to the websites they controlled. Once on the conspirators’ websites, the conspirators showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Using these videos, the conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras, which the website automatically recorded. Conspirators earned points based on their contribution to the success of website objectives, which allowed them access to the sexually exploitative videos of children. Law enforcement agencies have disabled both websites.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Tracy Doherty-McCormick prosecuted the case. CEOS Trial Attorney Ravi Sinha assisted with the prosecution.
VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center. The South Africa Police Service, Family Violence, Child Protection, and Sexual Offenses, Gauteng; Dutch Police Service Agency, KLPD; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in the investigation. The U.S. Attorney’s Office of the Southern District of New York also contributed to the investigation and the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of International Child Exploitation Conspiracy SentencedRead the Press Release
ALEXANDRIA, Va. – Karlo Hitosis, 32, of Bronx, New York, was sentenced today to 18 years in prison for participation in two websites that were operated for the purpose of coercing and enticing minors, as young as eight years old, to engage in sexually explicit conduct on web camera. Hitosis was also sentenced to 10 years of supervised release and ordered to register as a sex offender.
Hitosis pleaded guilty on Oct. 30, 2015. According to court records, members of the conspiracy to which these men belonged created false profiles on social networking sites, such as YouTube, which portrayed themselves as young teenagers. They used these profiles to lure children to the websites they controlled. Once a child was on the websites, conspirators played pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Using these videos, conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras, which the website automatically recorded. Based on their contribution to the success of website objectives, conspirators earned access to additional sexually exploitative videos of children. During the FBI’s investigation, named Operation Subterfuge, an estimated 1,600 minors were lured to the two websites. More than 300 minor victims have been identified by U.S. law enforcement, and an additional 43 victims have been identified in Canada by the Royal Canadian Mounted Police and the National Child Exploitation Coordination Centre. Law enforcement has disabled both websites.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Calvin Shivers, Section Chief, FBI Violent Crimes Against Children Section, made the announcement after sentencing by U.S. District Judge T.S. Ellis III.
Assistant U.S. Attorney Tracy Doherty-McCormick and Trial Attorney Lauren Britsch of the Child Exploitation and Obscenity Section (CEOS) of the U.S. Department of Justice prosecuted the case. Trial Attorney Ravi Sinha of CEOS assisted with the prosecution.
The FBI’s Major Case Coordination Unit (MCCU) led the investigation with the assistance of Operation Rescue Me, and the FBI’s Digital Analysis and Research Center. Other active partners in the investigation include the South Africa Police Service, Family Violence, Child Protection, and Sexual Offenses, Gauteng; Dutch Police Service Agency, KLP; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; and the Australian Federal Police, Child Protection Operations, Sydney. Also contributing to the investigation and prosecution was the U.S. Attorney’s Office for the Southern District of New York.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-172; 1:15-cr-42.
Member of Cherry Hill Group ‘UDH’ Sentenced to 30 Years in Prison for Racketeering Conspiracy, including MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, today to 30 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Many of the shootings and murders in Baltimore City result from disputes between rival drug gangs,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2007 to 2013 Evans was a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
Evans admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members. In addition to selling drugs, Evans admitted that he participated in a robbery on January 15, 2007, in which the victim was stabbed. Evan also admitted that on October 5, 2010, he and a co-defendant committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members. After stealing $150 from one of the victims, Evans’ co-defendant began to shoot at the two individuals. One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds. The murder was captured on CCTV. A Baltimore City jury acquitted Evans and his co-defendant of this murder.
Finally, Evans admitted that November 11, 2013, in the 100 block of South Monroe Street in Baltimore, he started a fight with another individual, produced a large 10 inch kitchen knife and began stabbing and slicing at the victim. Evans took $50 from the victim. The victim was taken to Shock Trauma with stab wounds to his head, upper back and hands. The knife was recovered at the scene. CCTV captured the assault. Approximately seven minutes later, Evans walked into a hospital four blocks away, complaining of a slice wound to the palm of his left hand. Evans pleaded guilty to this first degree assault in Baltimore City Circuit Court and was sentenced to 12 years in prison.
Throughout the course of Evans’ involvement in the UDH drug conspiracy Evans knew that the conspiracy involved between 840 grams and 2.8 kilograms of crack cocaine and between three and 10 kilograms of heroin
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Mellette County Individuals Charged with Conspiracy to Distribute a Controlled Substance and Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that two men and a woman from the Corn Creek Community in Mellette County, South Dakota, have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Henry Paul Gorisek, Jr., age 46; Helen Ann Clifford, age 43; and Ty Wesley Clifford, age 22, were indicted on January 21, 2016. On January 26, 2016, and February 3, 2016, they appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 14, 2014, and September 19, 2015, Gorisek, and Helen and Ty Clifford knowingly and intentionally combined, conspired, confederated and agreed with other persons to knowingly and intentionally distribute and possess with intent to distribute methamphetamine and marijuana. The Indictment also alleges that on or about September 19, 2015, in Mellette County, Gorisek, and Helen and Ty Clifford knowingly possessed a firearm and were prohibited persons because they are users of and addicted to a controlled substance. Gorisek is also alleged to be a prohibited person because of a prior felony.
The charges are merely an accusation and Gorisek, Helen Clifford, and Ty Clifford are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
All three were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
McLaughlin Man Charged with Multiple CountsRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Kidnapping, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Jason Martinez, age 40, was indicted on January 21, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on February 4, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $1,000,000 fine, up to life of supervised release, a mandatory special assessment of $5,000, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 9, 2015, Martinez caused and attempted to cause his intimate partner to engage in a sexual act by the use of force. Martinez is also accused of willfully kidnapping the same victim, as well as assaulting her with a shovel which caused serious bodily injury.
The charges are merely accusations and Martinez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Martinez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Livingston County Man Sentenced to Eight Years in Prison for Distributing Child PornographyRead the Press Release
Peoria, Ill. – Daniel W. Craver, 56, of Chatsworth, Ill., was sentenced yesterday to eight years (96 months) in prison for distributing child pornography. The court also ordered that Craver remain on supervised release for 10 years following his release from incarceration. Craver will be required to register as a sex offender.
Craver pleaded guilty on Oct. 14, 2015. According to court documents, Craver was identified after the FBI learned that a computer located within his residence was using a peer-to-peer file sharing program to download and share files containing child pornography. Based on this information, the FBI obtained and executed a search warrant for Craver’s residence on Apr. 9, 2014. During the search, Craver agreed to be interviewed and admitted that he accessed child pornography with the computer in his living room and traded and distributed the images and videos using a peer-to-peer file sharing program.
At the conclusion of the search, the FBI seized numerous items of computer equipment. A forensic examination of the seized items revealed the presence of 665 images and 103 videos of minors engaged in sexually explicit conduct.
Craver has remained in the custody of the U.S. Marshals Service since he was arrested on Feb. 23, 2015.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case which was investigated by the FBI and the East Peoria Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Letter carrier charged with worker's compensation fraudRead the Press Release
A letter carrier for the U.S. Postal Service has been charged with defrauding the Department of Labor, law enforcement officials said.
Douglas A. Joachim, 51, of Wadsworth, concealed and falsified his medical condition and physical abilities to the Labor Department’s worker’s compensation program. He is employed as a letter carrier and, on numerous occasions, was receiving disability payments through the worker’s compensation program. He willingly made false, fictitious and fraudulent statements about his medical condition, which resulted in these benefits being paid, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the U.S. Postal Service Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Law Enforcement to Host Faith-Based Security SummitRead the Press Release
DALLAS — The U.S. Attorney’s Office for the Northern District of Texas, the FBI’s Dallas Division and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Dallas are hosting a Faith-Based Security Summit that will provide faith-based leaders with information to improve security and develop protocols to protect houses of worship.
The Summit will be held the afternoon of Tuesday, February 9, 2016, at the FBI’s Dallas Field Office. Approximately 150 individuals representing faith-based leadership in North Texas are expected to attend.
“Our places of worship are uniquely vulnerable as they struggle to balance sanctity and security,” said U.S. Attorney John Parker of the Northern District of Texas. “The free exercise of religion guaranteed by our Constitution is an empty promise without a safe and peaceful environment in which to worship. Although violence in places of worship is sadly not a new problem, recent tragic events across the country have highlighted the challenges of fostering a culture that is both welcoming and safe. This summit will address some of those challenges.”
Thomas M. Class, Sr., Special Agent in Charge of the Dallas FBI said, “We in the FBI, along with our partners in law enforcement, are committed to protecting the safety and First Amendment rights of all faith-based groups. Through this summit, it is our hope to further strengthen our relationship with the communities we serve and to share valuable information that could be instrumental in saving lives.”
Katrina W. Berger, Special Agent in Charge of HSI Dallas, said, “To fulfill law enforcement’s primary role of public safety, we must stay relevant to the times. Unfortunately, in our society today, this means providing our faith-based leaders with basic training tools to escape and survive an active-shooter situation. Our places of worship and their congregations are especially vulnerable to be targeted by these horrific acts.”
The Summit will provide faith-based leaders information and tools to assist them in developing security programs, protocols and emergency action plans. It will also provide information on risk assessment, crisis response plans, deterring threats, information sharing and active shooter situations.
In addition to U.S. Attorney Parker and Special Agents in Charge Class and Berger, speakers will include subject matter experts from the FBI and HSI. In addition, several members of the Dallas-Fort Worth faith-based community will participate in a round-table panel discussion.
Registration for this Summit is closed. It is also closed to the media.
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Kenel Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kenel, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Dylan Demery, age 23, was indicted on January 21, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on February 4, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 1, 2016, Demery forcibly resisted, opposed, impeded, intimidated, and interfered with an officer from the Bureau of Indian Affairs. The incident happened while that officer was employed as a federal law enforcement officer with the Bureau of Indian Affairs, assigned to perform law enforcement functions and was also engaged in the performance of his official duties.
The charge is merely an accusation and Demery is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Demery was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Kemp and Jones Indicted in Interstate Armed Jewelry Theft CaseRead the Press Release
PANAMA CITY, FLORIDA – Abigail Lee Kemp, 24, of Smyrna, GA, and Lewis Jones III, 35, of Atlanta, GA, were arraigned today in federal court after a grand jury returned an indictment charging them with conspiracy, obstructing commerce by robbery, and brandishing a firearm during a crime of violence. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges that, between April 2015 and January 2016, Kemp and Jones conspired to commit armed robberies at a series of jewelry stores, including Jared Vault, Zales Outlet, and Reeds Jewelers. It further alleges that Kemp and Jones brandished and used a firearm during the robbery of Reeds Jewelers. The trial is scheduled for March 21, 2016, at 8:15 a.m. at the United States Courthouse in Panama City.
The potential penalties for both the conspiracy and obstructing commerce by robbery counts are a maximum of 20 years in prison. For brandishing a firearm during a crime of violence, the punishment is a minimum of seven years and a maximum of life in prison, to run consecutive to any penalty on the other counts.
Kemp and Jones were first charged by criminal complaint last month. They were arrested together in the Smyrna, Georgia, area on Friday, January 8, 2016, on charges related to the armed robberies of six jewelry stores in Panama City Beach, Florida; Woodstock, Georgia; Dawsonville, Georgia; Bluffton, South Carolina; Mebane, North Carolina; and Sevierville, Tennessee. The charging documents reflect that, in each robbery, the robber brandished a firearm and ordered the employees to the back of the store where they were forced to lie face down on the ground with their hands zip tied behind their backs. Hundreds of thousands of dollars-worth of jewelry was then removed from the jewelry display cases.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kathryn D. Risinger is prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Justice Department Reaches $470 Million Joint State-Federal Settlement with HSBC to Address Mortgage Loan Origination, Servicing and Foreclosure AbusesRead the Press Release
The Justice Department, the Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau, along with 49 state attorneys general and the District of Columbia’s attorney general, have reached a $470 million agreement with HSBC Bank USA NA and its affiliates (collectively, HSBC) to address mortgage origination, servicing and foreclosure abuses.
“This agreement is the result of a coordinated effort between federal and state partners to hold HSBC accountable for abusive mortgage practices,” said Acting Associate Attorney General Stuart F. Delery. “This agreement provides for $370 million in creditable consumer relief to benefit homeowners across the country and requires HSBC to reform their servicing standards. The Department of Justice remains committed to rooting out financial fraud and holding bad actors accountable for their actions.”
“This settlement illustrates the department’s continuing commitment to ensure responsible mortgage servicing,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The agreement is part of our ongoing effort to address root causes of the financial crisis.”
“Even as the mortgage crisis recedes, the U.S. Trustee Program will continue to combat mortgage servicer abuse of the federal bankruptcy laws so that homeowners are given their legal right to try to save their homes,” said Director Cliff White of the Justice Department’s U.S. Trustee Program. “Homeowners in financial distress sometimes depend on chapter 13 bankruptcy to help them catch up on their payments. When banks violate bankruptcy laws at the expense of homeowners and other creditors, they must pay a price. This settlement holds HSBC accountable for its actions and helps to protect the most vulnerable homeowners.”
“Mortgage servicers have a responsibility to help struggling borrowers remain in their home, not to push them into foreclosure,” said General Counsel Helen Kanovsky of HUD. “This agreement is another example of how multiple agencies in the federal government and state attorneys general across the country are working to make sure the mortgage industry treats consumers fairly.”
“This agreement not only provides relief to borrowers affected by HSBC’s past practices, it puts in place protections for current and future homeowners through tough mortgage servicing standards,” said Iowa Attorney General Tom Miller. “For years we’ve worked together to hold mortgage servicers responsible for their past conduct. We’re doing that here through this settlement and we’ll continue to address bad conduct in the future.”
The settlement reflects a continuation of enforcement actions by the department and its federal and state enforcement partners to hold financial institutions accountable for abusive mortgage practices. The settlement parallels the $25 billion National Mortgage Settlement (NMS) reached in February 2012 between the federal government, 49 state attorneys general and the District of Columbia’s attorney general and the five largest national mortgage servicers, as well as the $968 million settlement reached in June 2014 between those same federal and state partners and SunTrust Mortgage Inc. This settlement with HSBC is the result of negotiations that, as has been reported in HSBC Holdings plc’s Annual Report and Accounts, began following the announcement of the NMS.
Under the agreement announced today, HSBC has agreed to provide more than $470 million in relief to consumers and payments to federal and state parties, and to be bound to mortgage servicing standards and be subject to independent monitoring of its compliance with the agreement. More specifically, the settlement provides that:
- HSBC will pay $100 million: $40.5 million to be paid to the settling federal parties; $59.3 million to be paid into an escrow fund administered by the states to make payments to borrowers who lost their homes to foreclosure between 2008 and 2012; and $200,000 to be paid into an escrow fund to reimburse the state attorneys general for investigation costs.
- By July 2016, HSBC will complete $370 million in creditable consumer relief directly to borrowers and homeowners in the form of reducing the principal on mortgages for borrowers who are at risk of default, reducing mortgage interest rates, forgiving forbearance and other forms of relief. The relief to homeowners has been underway and will likely provide more than $370 million in direct benefits to borrowers because HSBC will not be permitted to claim credit for every dollar spent on the required consumer relief.
- HSBC will be required to implement standards for the servicing of mortgage loans, the handling of foreclosures and for ensuring the accuracy of information provided in federal bankruptcy court. These standards are designed to prevent foreclosure abuses of the past, such as robo-signing, improper documentation and lost paperwork, and create new consumer protections. The standards provide for oversight of foreclosure processing, including third-party vendors, and new requirements to undertake pre-filing reviews of certain documents filed in bankruptcy court. The servicing standards ensure that foreclosure is a last resort by requiring HSBC to evaluate homeowners for other loss-mitigation options first. In addition, the standards restrict HSBC from foreclosing while the homeowner is being considered for a loan modification.
The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia. Compliance with the agreement will be overseen by an independent monitor, Joseph A. Smith Jr., who is also the monitor for the NMS and SunTrust settlement. Smith has served as the North Carolina Commissioner of Banks and is also the former chairman of the Conference of State Banks Supervisors. Smith will oversee implementation of the servicing standards required by the agreement, will certify that HSBC has satisfied its consumer relief obligations and will file regular public reports that identify any quarter in which HSBC fell short of the standards imposed in the settlement. The parties may seek penalties for non-compliance.
The agreement resolves potential violations of civil law based on HSBC’s deficient mortgage loan origination and servicing activities. The agreement does not prevent state and federal authorities from pursuing criminal enforcement actions related to this or other conduct by HSBC, or from punishing wrongful securitization conduct that is the focus of President Barack Obama’s Financial Fraud Enforcement Task Force Residential Mortgage-Backed Securities Working Group. State attorneys general also preserved, among other things, all claims against Mortgage Electronic Registration Systems. Additionally, the agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits.
The Department of Treasury, the Federal Trade Commission, the Department of Agriculture, the Veterans Administration and the Special Inspector General for the Troubled Asset Relief Program also made critical contributions to reaching this settlement.
Jury Convicts Schenectady Man of Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury on Friday convicted Charles McCormick, Jr., age 22, of Schenectady, New York, of conspiring to distribute and possess with intent to distribute crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
McCormick faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 3 years and up to life, when he is sentenced on June 15, 2016 by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The jury convicted McCormick following a three-day trial. The evidence at trial demonstrated that McCormick worked with others to sell crack cocaine in Schenectady and Rutland, Vermont.
This case was investigated by the Federal Bureau of Investigation and the Schenectady Police Department, in connection with the Capital District Safe Streets Gang Task Force. The Task Force includes members from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Schenectady District Attorney’s Office, the New York State Department of Corrections, the New York National Guard Counter-Drug Task Force, and the Albany County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorneys Kofi Sansculotte and Sean O’Dowd.
Jamaican Man Sentenced to 10 Years in Lottery Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Paul Laing, 31, of Sandy Bay, Jamaica, was sentenced today to 10 years in prison for conspiracy to launder monetary instruments, in connection with his leadership role in an extensive Jamaican lottery fraud scheme. Laing was also ordered to pay $705,500 in forfeiture and restitution to victims of his offense.
Laing pleaded guilty on Oct. 16, 2015. According to a statement of facts filed with his plea agreement, Laing admitted to defrauding numerous elderly victims, including an 85-year-old woman who resided in Great Falls. Laing would contact his victims via phone calls and faxes and falsely inform them that they had won the lottery. He would then tell them that in order to collect their winnings they would need to send money to him and his co-conspirators to pay various alleged taxes and fees. Laing instructed victims to send funds through wire transfers, the US Mail and other means directly to him in Jamaica, or to co-conspirators in the United States. Those co-conspirators would keep a portion of the proceeds and then transfer the remainder to Laing.
Through this scheme, Laing received hundreds of thousands of dollars from his victims, several of whom depleted their life savings to satisfy his repeated demands for payment. Meanwhile, none of the victims ever received the lottery winnings that Laing had promised them.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Maria L. Kelokates, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Terence S. Opiola, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Samantha P. Bateman, Karen Ledbetter Taylor, and Gene Rossi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14cr416.
Jacksonville Man Charged in $1.3 Million Tax FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Carmel Linot with one count of conspiracy, four counts of theft of government funds, and four counts of aggravated identity theft. If convicted, he faces a maximum penalty of 5 years in federal prison for the conspiracy charge, 10 years’ imprisonment for each theft of government funds charge, and 2 years in federal prison for each identity theft charge. The indictment also notifies Linot that the United States intends to forfeit assets traceable to proceeds of the offense.
According to the indictment, between January 2011 and June 2012, in Duval County and elsewhere, Linot conspired with others to obtain the names and Social Security numbers of juveniles and then filed or caused to be filed fraudulent tax returns using that information. The indictment also alleges that the conspiracy involved the filing of 1,800 false and fraudulent federal income tax returns, resulting in $1.3 million in refunds being paid out. The conspiracy included the theft of the personal identifying information (“PII”) of juveniles from a website in Palm Beach County, Florida. These identities were then used in some of the false and fraudulent tax returns.
Linot is also charged in four individual counts of theft of government property, in which it is alleged that Internal Revenue Service tax refunds were electronically deposited into his bank account in June 2012. The theft charges are the basis of four separate aggravated identity theft charges because names and Social Security numbers of persons were used unlawfully in order to claim the four fraudulent refunds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Dale Campion.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on February 1, 2016 and entering pleas of Not Guilty were:
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JOSEPH CURTIS MORRISON, JR., a 53-year-old resident of Ashland, appeared on charges of involuntary manslaughter.If convicted of the charge contained in the indictment, MORRISON faces 8 years in prison, $250,000 in fines and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-06
Appearing before U.S. Magistrate Ostby in Billings on January 28, 2016 and entering pleas of Not Guilty were:
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GARRETT JAY COSTA, SR., a 44-year-old resident of Crow Agency, appeared on charges of aggravated sexual abuse.If convicted of the charge contained in the indictment, COSTA faces life in prison, $250,000 in fines and lifetime supervised release.The case was investigated by the Bureau of Indian Affairs.PACER Case Reference. 16-03
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Heroin Distributor Gets Nearly 33 Years in Federal Prison in Mexican Mafia CaseRead the Press Release
LAREDO, Texas – Nearly two dozen people have been ordered to prison in relation to a drug conspiracy involving heroin, cocaine and methamphetamine, announced U.S. Attorney Kenneth Magidson. All were charged in a 2013 indictment alleging members and associates of the Texas Mexican Mafia prison gang were involved in the drug conspiracy. They had all previously pleaded guilty in the case.
Juan Pablo Contreras, 43, of Laredo, was found to be the main distributor of heroin. He would buy the drugs wholesale from Mexico and distribute it locally and to San Antonio. Today, U.S. District Judge Diana Saldana ordered he serve 390 months in federal prison.
Over the past two weeks, numerous others have also been sentenced.
Modesto Ramirez Jr., 46, Julio Jesus Rangel, 33, Jaime Tomas Hernandez-Rocha, 48, Pablo Contreras Jr., 44, Guadalupe Mario Contreras, 53, Carlos Contreras, 33, and Raul Victoriano Rojas, 43, would secure kilogram amounts of heroin from Juan Pablo Contreras. With the exception of Ramirez, who was convicted of possession with the intent to distribute heroin, all pleaded guilty to the conspiracy. Guadalupe Mario Contreras was sentenced to 262 months while Carlos Contreras and Pablo Contreras Jr. each received 210 months. Both Rojas and Ramirez each received sentences of 198 months, while Rangel was sentenced to a 240-month-term of imprisonment. Hernandez-Rocha was found to be the gang’s enforcer and received 252 months of federal imprisonment.
Steve Contreras, 37, Eufrosina Lopez, 44, Jose Fernando Lomeli, 27, and Luis M. Salinas, 48, each pleaded guilty to possession with the intent to distribute heroin and received respective sentences of 76, 78, 60 and 70 months in prison. Orlando Ibarra, 35, pleaded guilty to possession with intent to distribute less than 500 grams of cocaine and received a sentence of 32 months.
Victor Contreras, 25, Martin Contreras Jr., 27, Guadalupe Bedarte, 32, Jorge Guerra, 43, Christopher O’Bryant, 29, Juan Leopoldo Arvizo, 30, Eduardo Santa Cruz, 35, and Yvonne Hernandez, 43, were convicted on conspiracy charges. Victor Contreras received a sentence of 71 months, while Contreras Jr. and Bedarte got 83 and 46 months, respectively. Guerra and O’Bryant each received 12 months and one day of imprisonment, while Arvizo, Cruz and Hernandez were ordered to serve 33, 37 and 97 months in federal prison, respectively.
Monica Ortega, 40, was sentences to 151 months for her conviction of conspiracy to maintain drug-involved premises, while Arnulfo Valdez, 45, was convicted of conspiracy to commit money laundering and sentenced to 108 month in prison.
Ana Rosa Contreras, 31, also pleaded guilty to the money laundering conspiracy and received a sentence of three years of probation. She is married to Carlos Contreras. She and her husband admitted to having purchased their residence in the prestigious Lakeside subdivision with the proceeds of drug sales. As a result, the court ordered the property to be forfeited to the government. The residence is valued at more than $300,000.
Previously, Richard Cruz Rodriguez, 48, of San Antonio, was ordered to serve 48 months in prison for use of a communication facility to facilitate a felony drug offense.
Mario Alberto Rodriguez, 28, will be sentenced at a later date.
The indictment is part of an Organized Crime Drug Enforcement Task Force investigation named “Operation X3,” which was conducted by agents of the FBI, Drug Enforcement Administration, Homeland Security Investigations and IRS – Criminal Investigations. They were assisted at different times by the U.S. Marshals Service, police departments in Laredo, Austin and San Marcos, U.S. Customs and Border Protection, Texas Department of Public Safety - Criminal Investigations Division and the LaSalle County Sheriff’s Office. Assistant U.S. Attorney Andy Guardiola are prosecuting the case.
Head of Jewelry Store Kidnapping Conspiracy SentencedRead the Press Release
PHILADELPHIA - Salahudin Shaheed, 35, of Philadelphia, PA, was sentenced today to 365 months in prison for his role in an attempted robbery of a center city jewelry store, in which an employee of the store was kidnapped. Shaheed pleaded guilty, October 7, 2015, to conspiracy, kidnapping, and attempted Hobbs Act robbery. In addition to the prison term, U.S. District Court Judge Harvey Bartle III ordered restitution in the amount of $9,983.97, five years of supervised release and a $300 special assessment.
Shaheed recruited defendants Khayree Gay and Basil Buie, a/k/a “Basil Tucker,” to rob National Watch and Diamond Exchange, at 101 S. 8th Street in Philadelphia to obtain luxury watches, jewelry, and money which Shaheed said could be found there. The defendants conducted surveillance of National Watch and its employees from a parking lot at 733 Chestnut Street, to identify and then, in disguise, abduct an employee from whom they would forcibly obtain keys, security codes, and the code to the company’s safe from which the robbers would steal luxury watches, jewelry, and money.
On April 4, 2015, the defendants watched an employee that Shaheed had targeted. When the employee entered the garage and approached her car, Shaheed and Buie, wearing masks, gloves, and sunglasses, confronted the victim, Shaheed assaulted her with a Taser, and she was forced into a van. She was beaten over a several hour period, while the defendants drove to various locations. Buie, was sentenced to 15 years in prison; Gay is awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Maureen McCartney.
Head Governor of FAM Mob Sentenced to 120 MonthsRead the Press Release
Memphis, TN – The alleged head governor of FAM Mob, a violent street gang based throughout North Memphis and Shelby County, has been sentenced to 120 months for felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to information presented in court, 28-year-old Jarvis Lewis, aka Jabo, of Memphis, unlawfully possessed a Jimenez Arms 9mm pistol.
On October 27, 2014, Memphis Police officers responded to shots fired at the Ridgecrest Apartments Complex. The complex is allegedly used as the headquarters of FAM Mob, a violent street gang prevalent in Frayser, Northhaven, Raleigh and Millington.
Upon arriving on the scene, officers learned that two men with guns — one of them being Lewis — entered a unit in the apartment complex, according to information presented in court. After locating the unit, officers asked for the defendants to leave the residence. The defendants refused to comply, and law enforcement entered the apartment. Lewis and his co-defendant were in the apartment’s master bedroom. A loaded 9mm pistol, partially sticking out of a bag of sugar, was also located by law enforcement while searching the apartment.
FAM Mob’s hierarchy allegedly consists of a head governor, governors, CEOs, big "homies" and little "homies." Lewis allegedly became the leader of FAM Mob after its former head governor, James McCracken, was indicted federally in November 2014 for violating the Hobbs Act. The Hobbs Act makes it a federal crime to commit a robbery that interferes with interstate commerce. In July 2011, McCracken and other FAM Mob members allegedly robbed a drug dealer who was trafficking narcotics manufactured outside of the district.
In November 2015, a federal jury convicted Lewis of one count of felony possession of a firearm.
On Friday, February 5, 2016, U.S. District Judge Sheryl H. Lipman sentenced Lewis to 120 months in federal prison.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department; Shelby County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.
Assistant U.S. Attorneys Kevin Whitmore and Elizabeth Rogers prosecuted this case on the government’s behalf.
Guilty Verdicts Returned Against Pair of Sex TraffickersRead the Press Release
PHILADELPHIA – A federal jury today returned guilty verdicts against Kevino Graham, 34, and Raffael Robinson, 30, both of Philadelphia, PA, on the charge of sex trafficking by force. Graham was convicted of two counts of sex trafficking by force and one count of attempted sex trafficking by force; Robinson was convicted of the single count against him. U.S. District Court Judge C. Darnell Jones scheduled a sentencing hearing for May 26, 2016. Co-defendants Brian Wright and Renato Teixera pleaded guilty and are awaiting sentencing.
Between May 2009 and August 2013, the defendants ran a striptease club and brothel, which they called “Passionate Touch,” at a property they leased in the Cathedral Park section of Philadelphia. Graham advertised this business on a website he created for Passionate Touch, in advertisements on Backpage.com, and he had business cards handed out in local communities. Graham engaged in sadistic acts of violence toward the victims personally, and at times directed his co-defendants to do so, to cause the victims to engage in commercial sex acts. Raffael Robinson worked for Graham, providing security at the business and running errands for the business Robinson benefitted financially and personally engaged in acts of violence toward one of the victims. Graham ran the club while Wright collected the money and Teixeira helped to recruit females to work for the venture and posted prostitution advertisements for the females. Between September 1, 2011 and January 31, 2012, all of the defendants engaged in acts of force, threats, fraud and coercion to cause young women to engage in prostitution.
Graham and Robinson each face a mandatory minimum term of 15 years in prison with a maximum possible sentence of life, a possible fine, at least five years of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Special Victims’ Unit and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
Grand Jury Indicts Jarvis Hardy in Shooting of DEA Task Force OfficerRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JARVIS HARDY, age 26, a resident of New Orleans, was charged in an eight-count Indictment attempted murder of a federal law enforcement officer (Count One); discharging one firearm during and in relation to a crime of violence and a drug trafficking crime (Count Two); possessing a second firearm in furtherance of a drug trafficking crime (Count Three); possession with intent to distribute 28 grams or more of cocaine base (“crack”) (Count Four); and four counts of distribution of quantities of cocaine base (“crack”) (Counts 5-8).
According to court documents, on January 26, 2016, agents and task force officers with the Drug Enforcement Administration (DEA) executed a search warrant for 5300 Douglas Street and an arrest warrant for HARDY. During the execution of the warrants, DEA Task Force Officer Stephen C. Arnold, was shot multiple times by HARDY. Following the shooting, investigating agents recovered two firearms from HARDY’s residence, as well as amounts of cocaine base (“crack”). The execution of the warrants followed an extended investigation of HARDY by the DEA that included multiple undercover purchases of cocaine base.
If convicted, HARDY faces a maximum term of imprisonment of twenty years, a fine of $250,000 and five years of supervised release following any term of imprisonment as to Count One; for the firearm charges in Counts Two and Three, HARDY faces a consecutive minimum term of imprisonment of five years up to life imprisonment for one firearm count and a consecutive minimum term of imprisonment of twenty-five years to life imprisonment for the second firearm count, each count also carries a potential fine of $250,000 and five years of supervised release; as to Count Four, HARDY faces a minimum term of imprisonment of five years and a maximum term of forty years, a potential fine of $5,000,000 and four years of supervised release; as to Counts 5-8, HARDY faces as to each count, a maximum term of imprisonment of twenty years, a fine of $1,000,000 and three years of supervised release.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U. S. Attorneys William J. Quinlan, Jr. and David Haller are in charge of the prosecution.
Georgia Felon Responsible for Three State Police Chase Pleads Guilty to Federal Firearm ChargeRead the Press Release
Contact Person: Jamie Schoen
Greenville, South Carolina ---- United States Attorney Bill Nettles stated that yesterday afternoon Mark Stone entered a guilty plea in federal court in Anderson, to Possessing a Firearm After a Felony Conviction, in violation of Title 18, United States Code, Section 922. United States District Judge Timothy M. Cain of Anderson accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on June 29, 2015, Macon County officers attempted to pull Stone over for speeding. Stone fled from police, beginning a chase through North Carolina, South Carolina, and Georgia. Stone was eventually arrested in Oconee County, where he fled from officers on foot. Inside Stone’s vehicle, officers found a loaded .22 caliber rifle with a round in the chamber. Due to Stone’s prior convictions, including burglary, Stone was prohibited from carrying firearms at the time of his arrest.
Mr. Nettles stated the maximum penalty for Possessing a Firearm after a Felony Conviction is imprisonment for Life, and/or a fine of $250,000.
The case was investigated by agents of the ATF, Macon County Sheriff’s Office, the Rabun County Sheriff’s Office, and the Oconee County Sheriff’s Office. Assistant United States Attorney Jamie Schoen of the Greenville office is prosecuting the case.
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Four Former Shelby County Jailers Sentenced for Conspiring to Distribute OxyContinRead the Press Release
Memphis, TN – Four former Shelby County Corrections Deputies have all been sentenced to federal prison for attempting to smuggle and distribute OxyContin inside a correctional facility. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
The defendants and their respective sentences include:
• Anthony Thomas: 1 month, 6 months home detention, 3 years supervised release
• Marcus Green: 12 months and 1 day, 2 years supervised release
• Torriano Vaughn: 12 months and 1 day, 3 years supervised release
• Brian Grammer: 12 months and 1 day, 2 years supervised releaseAccording to information presented in court, all four defendants participated in a scheme to smuggle what they thought were OxyContin pills inside of the Shelby County Jail on multiple occasions between May and December 2014. After inmates informed law enforcement officers of the defendants’ illicit conduct, an undercover investigation was initiated. The investigation involved law enforcement agents posing as associates of cooperating inmates. These inmates would make arrangements with the jailers to have various amounts of OxyContin pills smuggled into jail in exchange for hundreds of dollars.
The undercover agents met with each jailer at various locations in the city. Three undercover transactions were conducted with each defendant. During these transactions, the agents provided the defendants with several hundred dollars and varying amounts of pills, which were presumed to be OxyContin. In actuality, the pills were "placebos," pills or substances that have no therapeutic effect. After each transaction, the defendants would smuggle the presumed OxyContin pills into the jail and provide them to cooperating inmates. All of the placebos provided to the jailers were ultimately recovered by law enforcement agents.
The investigation was conducted by the Tarnished Badge Task Force, which is comprised of the Federal Bureau of Investigation; Shelby County Sheriff’s Department; and Memphis Police Department.
Assistant U.S. Attorneys John Fabian, Mark Erskine, and David Pritchard represented the government in the cases.
Former Police Department Employee Pleads Guilty to Computer IntrusionRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Tonia Bright (53, Tampa) pleaded guilty today to two counts of obtaining information from a protected computer for a fraudulent purpose. Each count carries a maximum sentence of five years in federal prison. Her sentencing date has not yet been set.
According to the plea agreement, Bright was a civilian employee of the Tampa Police Department and worked as a community service officer. As part of her authorized duties, Bright took reports from citizens related to incidents not requiring the response of a sworn police officer. In this capacity, she had access to local, state, and federal law enforcement databases, including the National Crime Information Center (NCIC) computerized index that contains the personally identifiable information (PII) of millions of individuals. Bright’s use of these databases was restricted to the performance of her authorized duties.
Between 2009 and 2014, Bright accessed NCIC and other password-protected law enforcement databases to obtain PII, and then provided it to her friend, Rita Monique Girven, on at least ten occasions. Girven used the information to file fraudulent federal income tax returns and claim refunds to which she was not entitled. When Girven received the fraudulently obtained refunds, she shared some of the proceeds with Bright. Girven previously pleaded guilty in a separate case. On November 20, 2015, she was sentenced to 12 years in federal.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Tampa Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Former Manager of York Federal Credit Union Charged with Embezzlement and Tax EvasionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Chief Executive Officer-Manager of the HD York Federal Credit Union in York, Pennsylvania has been charged with embezzlement from the Credit Union and with evading federal income taxes.
According to U.S. Attorney Peter Smith, Sherry Garner, age 53, of Red Lion, Pennsylvania, is charged in a Criminal Information with bank larceny. The Information alleges that Garner embezzled $252,106 from the credit union between 2010 and 2013 and failed to report $70,983 in stolen income on her federal income tax return for 2011, thereby evading $19,069 in federal income taxes.
In a plea agreement filed with the Information, Garner also admitted that the total tax loss of $62,704 on her unreported income. Garner has agreed to make restitution to both the credit union and the IRS as ordered by the Court.
HD York Federal Credit Union merged with White Rose Credit Union on May 30, 2014.
No date has yet been scheduled for Garner’s arraignment on the charges. The charges in the Information carry an aggregate maximum term of 15 years imprisonment and $350,000 fine.
The case was investigated by the Harrisburg Offices of the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
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 for Health Care Fraud is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum term of imprisonment for False Statements in Health Care Matters is 5 years imprisonment.
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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Former Holyoke Man Sentenced for Benefit FraudRead the Press Release
BOSTON – A former Holyoke man was sentenced yesterday in U.S. District Court in Springfield for fraudulently using another person’s identity to obtain governmental benefits.
Eddie Saez, 56, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison, three years of supervised release and ordered to pay restitution of $76,288 to the Social Security Administration, $83,865 to the Commonwealth of Massachusetts, Executive Office of Health and Human Services, and $20,573 to the Commonwealth of Massachusetts, Department of Unemployment Assistance. In November 2015, Saez pleaded guilty to three counts of false use of a social security number.
Saez used another individual’s name and Social Security number to obtain Social Security benefits, payments under the MassHealth Personal Care Attendant (PCA) program, and unemployment compensation. In addition to receiving Social Security benefits under a false identity, Saez manipulated the PCA program by paying himself under his real name, and by claiming to perform services to himself under his false identity. When the PCA services where terminated, Saez obtained unemployment benefits in his real name.
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; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Region, made the announcement. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Office.
Former Healy Lake Tribe First Chief and Tribal Administrator Sentenced for Conversion of Federal Government and Tribal FundRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Fairbanks woman was sentenced on Friday, February 5, 2016, in federal court in Fairbanks after being found guilty of converting federal government and tribal funds to her own use.
JoAnn Polston, 60, of Fairbanks, Alaska, was sentenced by U.S. District Judge Ralph R. Beistline to three years’ probation with special conditions including 90 days home confinement and cooperation with representatives of the Healy Lake Tribe concerning whereabouts and disposition of tribal funds, and payment of restitution of $4,577.61 to the Bureau of Indian Affairs and $102,860.20 to the Healy Lake Tribe. Polston had pled guilty in September 2015.
Assistant U.S. Attorney Yvonne Lamoureux, who prosecuted the case, noted that according to filings with the court, between 2009 and 2012, Polston knowingly converted to her own use money belonging to the Bureau of Indian Affairs and the Healy Lake Tribe. Specifically, Polston, as the First Chief and Tribal Administrator for the Healy Lake Tribe, abused her position of trust to write herself checks and transfer money from the Tribe’s bank accounts to her personal bank account. Polston also submitted and received per diem payments from the BIA in the amount of $4,577.61 to which she was not entitled because Polston had previously paid herself per diem payments from the Healy Lake Tribe’s bank accounts for the same trips. Between August 2009 and May 2012, Polston knowingly converted the Tribe’s money to her own use by writing herself checks and transferring money into her account in the amount of at least $10,914.20. Between May 2009 and June 2013, Polston also paid herself $91,946.00 without backup documentation, above and beyond her salary payments or other authorized payments.
In sentencing Polston, Judge Beistline noted that misuse of federal funds jeopardizes other native and rural communities that receive federal funds.
“The results of this prosecution reflect the Department of Interior Office of Inspector General’s commitment to pursue fraud involving the Department’s programs and its commitment to its trust responsibility to Native Americans,” said U.S. Department of the Interior Office of Inspector General Special Agent in Charge David House. “Public corruption in Native American communities is especially egregious because it usually comes at the expense of vital tribal programs intended for the benefit of the entire tribal community.”
Ms. Loeffler commends the Federal Bureau of Investigation and the Department of the Interior Office of Inspector General for conducting the investigation leading to the successful prosecution of Polston.
Former Fresno Teacher’s Aide Pleads Guilty to Marijuana Cultivation Operation in Trinity CountyRead the Press Release
FRESNO, Calif. —Kevin Nouthai Yang, 48, of Fresno, pleaded guilty today to conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on property that he owned in Hayfork in the Shasta Trinity National Forest, United States Attorney Benjamin B. Wagner announced.
According to court documents, Yang, who was then a high school teacher’s aide for the Central Unified School District, was found at the Hayfork property during the execution of a federal search warrant. U.S. Forest Service agents had obtained the search warrant after seeing hundreds of large, mature marijuana plants growing on Yang’s property. Yang was in the process of harvesting marijuana and was in possession of 324 pounds of marijuana, 200 marijuana plants, and a firearm. Some of the marijuana grown on Yang’s property had already been distributed to Fresno. In pleading guilty, Yang also agreed to the forfeiture of the property and the seized firearm.
Yang is scheduled for sentencing on May 2, 2016. He faces a maximum prison term of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service and Trinity County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Former EAA Principal and Vendor Plead Guilty to Conspiracy to Commit BriberyRead the Press Release
Kenyetta Wilbourn Snapp, 40, a former Educational Achievement Authority (“EAA”) principal of Denby High School and later of Mumford High School, pleaded guilty today to conspiracy to commit federal program bribery and federal income tax evasion charges, United States Attorney Barbara L. McQuade announced. Glynis Thornton, 53, an after-school tutoring vendor, pleaded guilty to conspiracy to commit federal program bribery.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Snapp admitted to selecting Thornton’s company, Making a Difference Everyday (“M.A.D.E.”), as the after-school tutoring vendor for Denby High School and then Mumford High School. In exchange, Thornton paid Snapp monetary kickbacks totaling approximately $58,000, as a reward for Snapp selecting and retaining M.A.D.E. as the after-school tutoring vendor. Thornton admitted that she disguised payments to Snapp by causing checks to be issued payable to a M.A.D.E. employee’s company, rather than paying Snapp directly. The M.A.D.E. employee would then deposit and withdraw the money and give it to Snapp. Snapp also admitted to failing to report the kickback payments as income during taxable year 2012.
Snapp entered into a plea agreement that calls for a sentence of between 37-46 months in custody. Thornton entered into a plea agreement that calls for a sentence of between 24-30 months in custody.
"Public corruption crimes are always disappointing, but it is even more heartbreaking when a school principal takes bribes," McQuade said. "Squandering school funds in exchange for bribes is especially disturbing in this case because Detroit's school children already face so many financial challenges." McQuade said.
"Ms. Snapp and Ms. Thornton's efforts to divert funds from the struggling Detroit Public School District and students trying to better themselves is particularly disturbing," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "These convictions represent the commitment of the FBI and our partners to expose and shut down schemes that would rob our communities of the education and services that they count on and deserve."
IRS-CI Special Agent in Charge Koopman stated, "When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the trust of the people they serve. IRS-CI will continue to hold them accountable for their actions".
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
Former Corrections Officer Pleads Guilty to Attempting to Smuggle MarijuanaRead the Press Release
Memphis, TN – A former corrections officer for a federal correctional institution in Arkansas has pled guilty to attempting to smuggle contraband into the facility. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.
In September 2015, John Brooks, 28, of Jonesboro, Arkansas, was employed as a corrections officer at Federal Correctional Complex (FCC) Forrest City, Arkansas when he accepted money in exchange for agreeing to smuggle marijuana into the facility and to inmates.
On Thursday, February 4, 2016, Brooks pled guilty to one count of accepting money in exchange for agreeing to smuggle marijuana into the institution, in violation of his official duties.
Brooks is scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman on Thursday, May 5, 2016. He faces up to 15 years imprisonment when sentenced. Brooks also faces a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation (FBI).
Assistant U.S. Attorney David Pritchard is prosecuting this case on the government’s behalf.
Federal Jury Finds St. Paul Man Guilty of Armed Robbery of Roseville Pawn ShopRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of MARVIN SPENCER, 53, for the armed robbery of Pawn America in Roseville, Minn., on July 21, 2014. On April 8, 2015, SPENCER was charged in a superseding indictment with one count of Interference with Commerce by Robbery; one count of Conspiracy to Interfere with Commerce by Robbery; one count of Using, Carrying and Discharging a Firearm During and in Relation to a Crime of Violence; and one count of Being a Felon in Possession of Ammunition. On February 3, 2016, following a three-day trial, a federal jury found SPENCER guilty on all counts.
As proven at trial, on July 21, 2014, at approximately 5:30 p.m., SPENCER, and co-defendant DERRICK LYNCH, entered the Roseville, Minn. Pawn America. SPENCER, who was armed with a semi-automatic handgun, shot a store employee in the leg and then fired at least one more round in the direction of several store employees. While SPENCER was shooting, LYNCH used a heavy tool to smash a display case and then removed approximately $58,350 worth of jewelry from the case. Before leaving the pawn shop, SPENCER helped LYNCH place the stolen jewelry into a duffle bag.
As proven at trial, SPENCER and LYNCH fled the scene in a vehicle with one other individual who later admitted involvement in receiving some of the stolen jewelry. LYNCH was apprehended in Woodbury, Minn., on August 8, 2014. SPENCER was arrested in Moline, Ill., on August 26, 2014. SPENCER, a career criminal with a violent history, admitted to discharging a firearm during the robbery, but claimed that the first shot was accidental. LYNCH, who was indicted on October 7, 2014, pleaded guilty on December 17, 2014, to the armed robbery and to aiding and abetting SPENCER in using and, carrying and discharging the firearm. Sentencing hearings will be set at a later date.
The case is being prosecuted by Assistant U.S. Attorneys Thomas Hollenhorst and Benjamin Bejar.
This case is the result of an investigation conducted by the Roseville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Moline Police Department.
Defendant Information:
MARVIN SPENCER, 53
St. Paul, MN
Convicted:
- Interference with Commerce by Robbery, 1 count
- Conspiracy to Interfere with Commerce by Robbery, 1 count
- Using, Carrying and Discharging a Firearm During and in Relation to a Crime of Violence, 1 count
- Felon in Possession of Ammunition, Armed Career Criminal, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts St. Petersburg Man for Ammunition and Drug OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Tony Donnell Mathis (48, St. Petersburg) guilty of being a felon in possession of ammunition, and possession with the intent to distribute cocaine base (“crack cocaine”). He faces a maximum penalty of life in federal prison. A sentencing hearing is scheduled for April 22, 2016.
Mathis was indicted in December 2014.
According to evidence and testimony presented at trial, on or about September 25, 2014, Mathis operated a drug house, and was in possession of a loaded firearm, a distribution quantity of crack cocaine, and body armor. With prior convictions, including fleeing or eluding, aggravated assault, battery of a law enforcement officer, burglary, and robbery, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Rachel K. Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Executive of Stamford Company Charged with Insider TradingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that DENNIS W. HAMILTON, 45, of Norwalk, was arrested today on a criminal complaint charging him with insider trading.
Following his arrest, HAMILTON appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $2 million bond into home confinement with electronic monitoring.
As alleged in the criminal complaint, HAMILTON was employed as Vice President of Tax at Harman International Industries, Incorporated (“Harman”) in Stamford. Harman is a publicly-held company whose shares trade on the New York Stock Exchange under the ticker symbol “HAR.”
Beginning in 2009, Harman allowed directors, members of its executive committee and certain other insiders to buy or sell Harman securities in the public market only during a declared trading window period. In August 2013, HAMILTON was included on Harman’s insider trading list, and he was subsequently notified when the window in which he could engage in open market purchases of Harman securities was open, and that all trades must be cleared in advance with Harman’s general counsel. On September 27, 2013, HAMILTON and other Harman employees were advised via email that the “window period” within which they may engage in open market purchases or sales of Harman securities had closed.
In October 2013, HAMILTON received material, non-public information about Harman’s financial results for the first quarter for the fiscal year ending 2014, including drafts of Harman’s Form 10-Q filing and an earnings press release. He and other Harman executives also participated in a conference call with Harman’s Audit Committee, during which a draft resolution declaring a quarterly cash dividend on Harman’s common stock was discussed.
On October 30, 2013, HAMILTON, an insider in possession of material, non-public information, purchased 17,000 shares of HAR for between $72.07 and $72.67 per share, through a Charles Schwab account in the name of HAMILTON and his wife. On October 30, 2013, the closing price of HAR was $72.02. On October 31, 2013, Harman announced positive first quarter earnings for fiscal year 2014. On that date, the closing price of HAR was $81.02.
Between October 31, 2013 and November 5, 2013, through his Charles Schwab account, HAMILTON wrote at least 200 covered calls on HAR at a strike price of $70.00 with an expiration date of November 16, 2013 for a premium of $203,366. Through the use of some of these covered calls, HAMILTON realized a gain of $131,958 on the 17,000 shares of HAR he had purchased on October 30, 2013.
The complaint charges HAMILTON with securities fraud-insider trading, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In a parallel action, the Securities and Exchange Commission today announced related civil charges against HAMILTON. (Securities and Exchange Commission v. Dennis Wayne Hamilton, 3:16-cv-00192)
This ongoing investigation is being conducted by the Federal Bureau of Investigation with valuable assistance from Harman International Industries.
The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Dent County Woman Charged on Federal Fraud ChargesRead the Press Release
St. Louis, MO – DEMEA LOYD, Salem, MO, was indicted by a federal grand jury on five felony counts of wire fraud. She appeared in federal court Thursday, in St. Louis.
The indictment alleges that Loyd owned two stores in Washington and Rolla, Missouri. She entered into a contract with Sears Authorized Hometown Stores, LLC to exclusively distribute Sears merchandise from these two stores. The agreement states that Loyd would distribute Sears merchandise on a consignment basis and that the merchandise would remain Sears’ property until ownership was transferred to a customer. In exchange, Loyd was paid a commission based on the amount of sales. Loyd was to deposit all proceeds from each store into a “holding” account until they could be transferred to Sears. The indictment states that from April 2013 to December 2014, Loyd embezzled approximately $400,000 from Sears, by making unauthorized withdrawals from the holding account and falsifying the monthly statements to hide the missing funds.
If convicted, each count of wire carries a maximum penalty of twenty years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Rolla and Washington, Missouri Police Departments. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Delaware County Man Charged in Fraud SchemeRead the Press Release
PHILADELPHIA - Jean Baptiste Alvarez, a/k/a “Alex,” 43, of Aldan, PA, was charged yesterday by superseding indictment with conspiracy to defraud the United States with respect to claims, aggravated identity theft, misuse of Social Security number, and aiding or assisting in tax preparation of false federal income tax returns, announced United States Attorney Zane David Memeger.
According to the indictment, Alvarez and “PR,” charged elsewhere, engaged in a scheme to obtain payment of false, fictitious, and fraudulent claims through the preparation and filing of false U.S. Individual Income Tax Returns. Alvarez allegedly stole and improperly obtained from a health care facility the personal identifying information, including names and SSNs of individuals, without the knowledge of those individuals. It is further alleged that Alvarez sold and distributed the above-described stolen personal identifying information, including names and SSNs, to be used on tax returns for the purpose of obtaining payment of false claims through the filing of fraudulent tax returns in the names of the stolen identities. Alvarez, “PR” and others allegedly obtained fraudulent tax refunds by using the stolen names and SSNs of those individuals.
If convicted, the defendant faces a mandatory minimum sentence of two years in prison with a maximum possible sentence of 44 years in prison, up to three years of supervised release, a possible fine, and a $1,100 special assessment.
The case was investigated by IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Terri A. Marinari.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant in Murder Case Pleads to Felony Firearm PossessionRead the Press Release
Memphis, TN – A defendant allegedly involved in the murder of 7-year-old Kirsten Williams has pled guilty in federal court to a separate charge of unlawfully possessing a firearm. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in court, Jordan Clayton, 22, of Memphis, unlawfully possessed a Glock .40 caliber pistol.
On April 14, 2015, officers with the Multi-Agency Gang Unit went to a tattoo parlor on North Highland to arrest Clayton on other charges. When officers entered the business, they saw the defendant drop a handgun in a filing cabinet. During a search of the tattoo parlor, officers recovered the Glock .40 caliber pistol from the filing cabinet where Clayton was seen dropping it.
On Friday, February 5, 2016, Clayton pled guilty to one count of felony firearm possession.
Clayton is scheduled to be sentenced by U.S. District Judge John T. Fowlkes Jr. on Thursday, May 5, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department; Shelby County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.
Assistant U.S. Attorneys Marques Young and Stephen Hall are prosecuting this case on the government’s behalf.
David Elbert Hall Sentenced to 120 Months on Marijuana Conspiracy and Firearm ChargesRead the Press Release
GREENEVILLE, Tenn. – David Elbert Hall, 54, of Kingsport, Tenn., was sentenced on Feb. 2, 2016, by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 120 months in federal prison for his role in an extensive marijuana distribution conspiracy centered in the Eastern District of Tennessee and the Western District of Virginia and possessing one or more firearms in furtherance of drug trafficking.
According to the plea agreement on file with U.S. District Court, Hall admitted that between 2003 and 2015 he conspired to distribute and was accountable for at least 100 but less than 400 kilograms of marijuana. After another individual received shipments of marijuana from California, Hall often stored them at his farm in Mendota, Va. Hall also stipulated that he sold marijuana to a number of people, including his son, Michael Elbert Hall, 29, of Kingsport, who was previously convicted and sentenced in federal court to serve 12 months and one day for a marijuana conspiracy charge. Hall acknowledged that the bulk of the marijuana attributed to his son came from him.
In April 2015, Hall was pulled over for a traffic stop in Kingsport. A search of his person and vehicle resulted in the seizure of approximately $32,496.00 in cash, over three pounds of marijuana and a loaded 9mm pistol. A search warrant was subsequently obtained for Hall’s Kingsport residence, which resulted in the seizure of approximately 110 firearms, $56,989.00 in cash, thousands of rounds of ammunition and over six more pounds of marijuana. Two of the firearms were determined to be stolen.
Others who were previously sentenced in this conspiracy included: Morris Anthoney Phillips, 39, and Antonio Barrington Parsley, 24, both of Culver City, Ca.; Glenn Draughn, 69, of Kingsport, Tenn.; Larry Thomas Williams, 68, of Mendota, Va.; and Kenny Russell, 57, of Kingsport, Tenn., who were sentenced to 144 months, 46 months, 63 months, 140 months and 60 months in federal prison respectively.
Law enforcement agencies participating in this investigation include the Tennessee Bureau of Investigation, Internal Revenue Service - Criminal Investigation, Second District Judicial Drug Task Force, Kingsport Police Department, Russell County, Virginia Sheriff’s Office and LA IMPACT (Los Angeles Interagency Police Apprehension Crime Task Force), which includes the Hawthorne, Hermosa Beach, Alhambra, Pomona, Inglewood and Culver City Police Departments. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Columbus Men Indicted in Charges for Seven Armed RobberiesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Lawrence W. Bell, Jr., 30, and Chad A. Titpton, 19, both of Columbus, with charges related to seven bank, restaurant and business robberies in Ohio in an indictment returned in Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Reynoldsburg Police Chief Jim O’Neill, Columbus Police Chief Kim Jacobs, Springfield Police Chief Stephen P. Moody, Chillicothe Police Chief Keith Washburn, Fairfield County Sheriff Dave Phalen, Zanesville Police Chief Kenneth Miller, Mount Vernon Police Chief Roger A. Monroe, Delaware Police Chief Bruce Pijanowski and Ohio State Highway Patrol Superintendent Paul Pride announced the indictment returned yesterday.
The indictment alleges that Bell committed armed robberies at the Fifth Third Bank in Springfield, Ohio; Century National Bank in Zanesville, Ohio; First Service Federal Credit Union in Reynoldsburg, Ohio; Cooper State Bank in Columbus, Ohio; First Service Federal Credit Union in Mount Vernon, Ohio and Fifth Third Bank in Chillicothe, Ohio.
He is also charged with five counts of using a firearm in relation to a crime of violence.
Tipton also allegedly took part in the robbery at Cooper State Bank in Columbus, Ohio, including using a firearm in relation to the crime.
Robbery involving a deadly weapon is a crime punishable by up to 25 years in prison. Using a firearm during and in relation to a crime of violence carries a maximum penalty of up to life in prison.
Bell is in custody and there is a warrant for Tipton’s arrest.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant U.S. Attorney Timothy Prichard, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Co-Conspirators in Upstate Counterfeiting Ring Plead Guilty to Federal ChargesRead the Press Release
Contact Person: Jamie Schoen (864) 282-2100
Greenville, South Carolina ---- United States Attorney Bill Nettles stated that yesterday afternoon Jose Alfredo Felix, Jr. , a/k/a “Smiley”; Benjamin Andrew Hinson; Penny Leigh Pilgrim; and Christine Nicole Snelson, each have entered a guilty plea in federal court in Anderson, to Conspiring to Pass Counterfeit Currency, in violation of Title 18, United States Code, Section 371. Additionally, Felix, Jr. entered a guilty plea to Manufacturing Counterfeit Currency, a violation of 18 U.S.C. § 471; Possessing a Firearm after a Felony Conviction, in violation of 18 U.S.C. § 922(g) and 924(e); and Passing Counterfeit Currency, in violation of 18 U.S.C. § 472. Additionally, Hinson entered a guilty plea to Manufacturing Counterfeit Currency, in violation of 18 U.S.C. § 471. United States District Judge Timothy M. Cain of Anderson accepted the guilty pleas and will impose their sentences after he has reviewed the presentence reports which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Benjamin Hinson and Maranda Hopper, a co-conspirator who has already pled guilty, began manufacturing counterfeit currency in the summer of 2015. Hinson distributed counterfeit to fellow co-conspirators, including Jose Felix, Jr., and passed the fake bills at stores around the Upstate.
Felix joined in manufacturing and distributing counterfeit to fellow co-conspirators, including Penny Pilgrim and Christine Snelson, and the three passed counterfeit to businesses in the Upstate. Additionally, Snelson and Felix worked together to pass the counterfeit to individuals on Craig’s List who were selling goods. When Felix was arrested in late August 2015, he was in possession of a stolen vehicle with stolen plates, counterfeiting supplies, a Hi-point 9mm pistol, and ammunition. Felix was a convicted felon at the time of his arrest, and therefore, prohibited from carrying firearms. Co-conspirators in this ring were responsible for passing counterfeit currency throughout the Upstate, Midlands, and North Carolina.
The co-conspirators were indicted on the counterfeiting charges in October of 2015. Co-conspirators Maranda Hopper, Donald Wesley West, and Ashley King have already pled guilty for their roles in the conspiracy.
Mr. Nettles stated the maximum penalty for Manufacturing Counterfeit Currency is imprisonment for 20 years and/or a fine of $250,000, the maximum penalty for Felon in Possession of a Firearm is imprisonment for Life and/or a fine of $250,000, the maximum penalty for Passing Counterfeit Currency is imprisonment for 20 years and/or a fine of $250,000, and the maximum penalty for Conspiracy to Pass Counterfeit Currency is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the U.S. Secret Service, the ATF, the Spartanburg Police Department, the Spartanburg County Sheriff's Office, the Columbia Police Department, the Greenville City Police Department, the Pickens County Sheriff's Office, the Anderson Police Department, the Anderson County Sheriff’s Office, the Easley Police Department, the Jackson County Sheriff's Office, the Fletcher Police Department, and by South Carolina Probation and Parole. Assistant United States Attorney Jamie Schoen of the Greenville office is prosecuting the case.
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City of Birmingham Bans the Box on Employment ApplicationsRead the Press Release
U.S. Attorney and Department of Labor Applaud Birmingham as First in Alabama to Make the Change
BIRMINGHAM – The City of Birmingham is now the first city in Alabama to “Ban the Box” on its hiring applications, a move that should help ex-offenders find jobs and decrease the likelihood that they will return to prison.
Birmingham Mayor William A. Bell, U.S. Attorney Joyce White Vance, U.S. Deputy Secretary of Labor Chris Lu, and The Dannon Project Executive Director Kerri Pruitt announced the change Thursday in a press conference at the U.S. Attorney’s Office.
In Alabama, more than 30,000 people are in prison or jail. The vast majority of those inmates – about 95 percent – will eventually return to the community. In Jefferson County alone, about 2,000 people return from prison annually.
"The city will continue to lead the way by expanding existing programs and furthering our reach,” Mayor Bell said. “There is no such thing as a disposable person. We must take the time and make the effort to offer second chances to the thousands of people impacted by these statistics.”
“There is strong data showing that finding a job substantially reduces an ex-offender’s likelihood of returning to prison,” U.S. Attorney Vance said. “For those who believe former inmates are unsafe or unfit for the workplace, there is also ample data showing that employed ex-offenders have better retention rates, better performance metrics, and pose no greater risk within the workplace than those without a conviction history.”
“Birmingham is taking an important step to give people with a criminal history a fair shot to compete for jobs and a chance to be judged on their qualifications,” said Deputy Secretary Lu. “I applaud the leadership of Mayor Bell and U.S. Attorney Vance, and I look forward to working with them to support the full re-entry of ex-offenders.”
“We are very thankful for the opportunity to educate returning citizens, as well as the extended community, about the valuable support that Ban the Box offers in giving everyone equal access to employment,” said Dannon Director Pruitt.
Many employers require job applicants to disclose conviction and arrest history on the initial job application. Often, when that disclosure is made, the applicant is immediately removed from further consideration for employment. The national “Ban the Box” campaign encourages governments and private employers to delay consideration of offense history within the hiring process.
Data shows that ex-offenders who are able to find a job are about half as likely to reoffend as those who are unable to find employment. Removing barriers to a successful return to society for individuals coming out of prison helps them become productive members of society and reduces the likelihood they will commit new crimes.
More than 100 cities and counties and 19 states, including Georgia, have joined companies like Walmart, Target, Home Depot and Koch Industries to ban the box. Late last year, President Obama called upon the Office of Personnel Management to ban the box within federal employment applications.
In Alabama, Jefferson County sends more people to state prison than any other county, which underscores the important role the City of Birmingham has taken in removing the conviction box from its initial employment applications.
Chester County Man Charged in Alleged Telemarketing SchemeRead the Press Release
PHILADELPHIA - An information was filed yesterday charging Marc Roy Ferry, 35, of Downingtown, Pennsylvania, with one count of wire fraud and two counts of money laundering, announced United States Attorney Zane David Memeger.
According to the information, from at least about 2009 to about March 2014, defendant Marc Roy Ferry and Ari Tietolman, charged elsewhere, used Tietolman’s network of telemarketers in Canada to target American seniors citizens with deceptive telemarketing calls, selling worthless or non-existent services and then debiting seniors’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services as well as a discount prescription card.
During these calls, Tietolman’s telemarketers made various false representations, such as they were calling on behalf of, or are affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers also misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers assured consumers they would not debit the consumers’ bank accounts and then did just that after the consumer provided their bank account information.
Tietolman attempted to conceal his involvement in the scheme by employing defendant Marc Roy Ferry and others to run “front” companies, including First Consumers, LLC, and process the fraud money. Tietolman paid Ferry and others to form corporations in the United States. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman instructed Ferry and others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Ferry sent Tietolman online logins and passwords so Tietolman and others could control these United States bank accounts from Canada.
Tietolman sent, or had others send, Ferry and others bank account information for the victims in the United States. Using computer programs and printers provided by Tietolman, Ferry and others used the victims’ bank account information to print remotely created checks (“RCCs”), in the United States. The RCCs were all made payable to the fraud companies and did not require a signature by the account holder. Because these RCCs did not require the account holder’s consent each time a check was created and submitted to the bank for payment, the account holder-victim had no opportunity to object or prevent the debit from occurring. Ferry and others deposited the RCCs in bank accounts held by the fraud companies, per Tietolman’s instructions. Tietolman instructed Ferry and others to deposit the RCCs in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the checks were deposited, Tietolman instructed Ferry and others to wire the majority of the funds to accounts in Canada.
Tietolman and others operated this scheme since at least 2005. Since May 2011, Tietolman, Ferry, and others have used this scheme to take more than $13 million from tens of thousands of senior citizens in the United States.
If convicted, the defendant faces a maximum possible sentence of 70 years in prison, three years of supervised release, a $750,000 fine or up to double the amount involved in the money laundering, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the U.S. Department of Homeland Security’s Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Buffalo Man Arrested for Production of Child PornographyRead 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 Sherrod Ogletree, 20, of Buffalo, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
“For the second time in three days, social media was the avenue by which a defendant gained access to a child, with serious consequences ensuing thereafter," said U.S. Attorney Hochul. “Just as parents go to great lengths to protect their children from street criminals and predators, the public needs to be particularly vigilant to the dangers lurking on-line. Also for the second time this week, today's case demonstrates the pernicious link between child pornography and the trafficking in children"
“Sherrod Ogletree’s arrest won’t repair the damage he has caused to his victims but should serve as a warning to individuals engaged in this type of depraved behavior. HSI and our partners will continue to pursue individuals who prey on children and we are determined to bring exploiters like Ogletree to justice. ” said James Spero, Special Agent in Charge for HSI Buffalo.”
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that according to the complaint, on August 20, 2015, a minor victim (victim 1) contacted the Buffalo Police Department indicating that she was being “sextorted” through Facebook by an account known as “Mrss Guwop.” Victim 1 was instructed by “Mrss Guwop” to contact “her manager” and to pay $20, give a Samsung Galaxy electronic Tablet and have sex with “Mrss Guwop’s” manager. If victim 1 refused, “Mrss Guwop” threatened to post screenshots of conversations between “Mrss Guwop” and victim 1 during which victim 1 agreed to work as a prostitute.
Law enforcement officers had victim 1 contact “the manager” from her cellular telephone. A male answered the phone and victim 1 told him she was on her way to meet him. Victim 1 was instructed to go to a residence on Woodlawn Avenue in Buffalo. Law enforcement officers went with victim 1 to the residence and Ogletree, identified as “Mrss Guwop,” was arrested on state charges.
Subsequent investigation determined a second minor victim (victim 2). A review of a Facebook conversation between “Mrss Guwop” and victim 2 revealed that “Mrss Guwop” knowingly solicited the production of pornographic images from victim 2. Victim 2 stated numerous times that she was a minor but “Mrss Guwop” continued to ask for pornographic images to be sent. During a subsequent interview with law enforcement officers, victim 2 indicated that she took pictures but never sent them to anyone when in fact she did send the pictures to “Mrss Guwop” through Facebook.
The complaint is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bucks County Law Firm Partner Convicted of Insider TradingRead the Press Release
PHILADELPHIA – Herbert Sudfeld, 64, of Doylestown, PA, was convicted today on charges of insider trading and making a false statement. He faces a maximum possible sentence of 25 years in prison, a three-year period of supervised release, and a possible fine.
Sudfeld was a partner in a Pennsylvania law firm that represented Harleysville Group, Inc., in its merger with Nationwide Mutual Insurance Company. According to court testimony, Sudfeld knew the merger was imminent and knew he had a fiduciary duty to keep it confidential. On September 28, 2011, prior to the public announcement of the merger agreement, Sudfeld contacted his stock broker to purchase Harleysville stock. On September 29, 2011, Harleysville and Nationwide publicly announced the merger and Harleysville stock rose by approximately 85 percent over the prior day’s trading. Sudfeld then sold the shares he had bought a day earlier, netting personal profits of approximately $75,530.
Sudfeld falsely told FBI agents, who were investigating insider trading, that he was not aware of the Harleysville stock transactions until several days to a week later. Sudfeld also falsely told investigators that he had informed his broker that he could not be involved in trades of Harleysville stock due to his position at his law firm. He further stated that he did not discuss Harleysville trades with his broker until after they were completed, which was also false.
The case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
Bowdoinham Man Sentenced to 57 Months for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel Lajoie, Jr., 46, of Bowdoinham, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 57 months in prison to be followed by five years of supervised release for possession of child pornography. Lajoie pleaded guilty to the charge on October 8, 2015.
According to court records and proceedings, between April 29 and June 3, 2012, the defendant used a computer and peer-to-peer software to make available for sharing videos of child pornography. A federal agent, acting in an undercover capacity, downloaded seven of those videos and traced them to a computer Lajoie used at a residence in Oakland, Maine. Lajoie’s computer was seized and examined and investigators found over 50 images and 110 videos of child pornography.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Task Force.
Beltsville Man Sentenced to Prison in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Bertrand Awah Essem, age 27, of Beltsville, Maryland today to 27 months in prison followed by two years of supervised release for conspiring to commit bank fraud.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea, from October 2010 to July 2012, Essem recruited college students at the University of Maryland Eastern Shore, promising that they could make some easy money. Essem told the recruits to open a bank account, obtain a debit card and PIN number associated with that debit card, and provide that information to Essem. After the recruits opened the bank accounts, Essem collected the debit cards and PIN numbers and gave them to another co-conspirator.
Essem told the recruits that money would be transferred into these accounts from The Home Depot. A conspirator would order materials with Home Depot stores, supplying a victim’s stolen credit card number that was obtained through other means. Within a few days, a conspirator canceled the order and requested that the refund be placed on the co-conspirator’s debit card, including the debit cards of co-conspirators recruited by Essem.
The recruits, including Stanley Nmesirionye and Dosis Feludu, would be required to withdraw the majority of the money from the bank account and give that to Essem. The recruit could keep a portion, in some cases as much as $300.
During the course of the fraud scheme, Essem collected $264,757.29 from the co-conspirators he recruited. From December 13, 2010, to March 2011, a total of 69 refunds from The Home Depot were credited to bank accounts of individuals recruited by Essem.
Co-defendants Godfred Obeng, age 38, of Glen Allen, Virginia; Stanley Nmesirionye, age 24, of Owings Mills, Maryland; Dosis Feludu, age 25, of Salisbury, Maryland; and Gideon Turkson age 24, of Burtonsville, Maryland previously pleaded guilty to their participation in the fraud scheme and await sentencing.
Today’s announcement is part of the efforts undertaken 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’s 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.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service and U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Baltimore Co-Conspirator Sentenced to Nine Years in Prison for Five RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Randy Jones, age 39, of Baltimore, today to nine years in prison followed by three years of supervised release for robbing five stores.
The sentence 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, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement and court documents, on September 24, 2014, Jones, co-conspirator Daryl Norris and another individual entered the Game Stop on Liberty Road in Baltimore, pointing fake guns, which appeared to be real, at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.
Jones admitted to committing four other robberies from August 26 to December 15, 2014 with Norris and/or others, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; 7-Eleven on Pleasant Plains Road in Towson, Maryland; Metro PCS in Baltimore; and the same Game Stop store.
The total loss from the five robberies was $15,312.51.
Darryl Norris, age 37, of Baltimore, previously pleaded guilty to robbing the video game store, and admitted to six other robberies. Judge Russell sentenced Norris on October 16, 2015 to nine years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Bonnie S. Greenberg, who prosecuted the case.
Antwon Willis and Ericka Simmons Found Guilty by Jury TrialRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Antwon Willis, 45, of Richton Park, Illinois and Ericka Simmons, 28, of Lansing, Illinois, were found guilty, after a five-day jury trial, of conspiring to distribute heroin.
The jury also found that both were responsible for distributing at least 100 grams of heroin. The defendants will be sentenced in May and are in custody.
This case was prosecuted as a result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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