Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 15 December 2015
California Man Sentenced to 151 Months in Prison for Transporting Heroin to Monroe CountyRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 36-year-old California resident was sentenced to 151 months (12 years and seven months) in prison today by Senior U.S. District Court Judge Richard P. Conaboy in Scranton, for transporting heroin from California to Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Francisco Martinez-Rubio, a citizen of Mexico who was living in Fresno, California at the time of his arrest, admitted to transporting 23 kilograms of heroin from California to the Mt. Pocono area of Monroe County in July 2014.
Martinez-Rubio was indicted by a federal grand jury in July 2014, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police. He pleaded guilty on September 8, 2015, to possession with intent to distribute more than one kilogram of heroin.
Judge Conaboy ordered Martinez-Rubio to serve five years on supervised release following his prison sentence. Martinez-Rubio also faces possible deportation after serving his prison sentence.
Previously, Judge Conaboy sentenced co-defendants Jose Rosario Huizar-Rios to 46 months in prison, Livier Cantor-Huizar to 41 months in prison, and Yolanda Barreto-Rincon to 57 months in prison. Martinez-Rubio recruited those co-defendants to help him transport the drugs.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
# # #
Bethlehem Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted a man from Bethlehem, Pennsylvania for drug trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Clyford Francois, age 36, with possession with intent to distribute cocaine in May 2015. The indictment also charges Francois, a convicted felon, with possessing two firearms in furtherance of his drug trafficking activities. Francois was initially taken into custody by Hanover Township Police on a traffic stop.
The investigation is being conducted by the Bureau of Alcohol, Tobacco and Firearms Enforcement, the Federal Bureau of Investigation, and the Hanover Township Police Department. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments contain only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Baton Rouge Resident Indicted in Wire Fraud Scheme Involving $1.3 MillionRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced the unsealing of an indictment returned by a federal grand jury charging THOMAS J. TANNER, JR., age 49, of engaging in a scheme to defraud his former employer, ISC Constructors, LLC, along with Chevron U.S.A., Inc., of $1,300,000.
Specifically, the indictment charges that throughout 2013 and 2014, while working as the project manager of a job site in Pascagoula, Mississippi, TANNER caused false payroll information and false documentation to be submitted to ISC and Chevron. According to the indictment, TANNER caused the false documents to be submitted via email from the job site in Mississippi to ISC Headquarters in Baton Rouge, LA. Based on the false representations, TANNER unlawfully benefitted both financially and professionally over the course of approximately 14 months. The indictment charges TANNER with four counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The indictment also includes forfeiture allegations.
U.S. Attorney Green stated: “Corporate fraud has increased in scope both in the United States and worldwide. Moreover, the high-speed nature of communications today has allowed corporate executives to, at times, transmit fraudulent documents via e-mail, with the belief that the documents will be quickly reviewed and approved and the underlying fraudulent scheme will not be discovered. My office will continue to devote the resources necessary to aggressively identify these schemes and prosecute those involved, as corporate fraud almost always results in the loss of significant corporate funds and, more importantly, corporate integrity.”
Assistant Special Agent-in-Charge Dan Evans stated: “The FBI New Orleans Division will continue to investigate allegations of wire fraud and similar while collar crimes that defraud Louisiana employers and residents.”
This ongoing investigation is being conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Paul L. Pugliese.
NOTE: An indictment is an accusation by a grand jury and a defendant is presumed innocent unless and until adjudicated guilty at trial or through a guilty plea.
Baton Rouge Resident Convicted of Stealing Federal Dollars in Fraudulent Tax Refund SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that LAGUARDIA COSTON, age 28, of Baton Rouge, Louisiana, pled guilty before Senior U.S. District Judge James J. Brady to theft and conversion of government funds, in violation of Title 18, United States Code, Section 641. During the guilty plea hearing, COSTON admitted to preparing and filing numerous fraudulent tax returns using stolen personal identifiers, such as names and social security numbers, of 73 separate victims. In addition, COSTON admitted to unlawfully obtaining $102,000 in tax refunds from the U.S. Treasury.
As a result of IRS data analysis, COSTON was identified as a suspect in the preparation of fraudulent tax returns. In many instances, COSTON used names and social security numbers of unknowing victims to prepare fraudulent W-2 Forms that were then used to electronically file the fraudulent tax returns. COSTON also admitted to unlawfully obtaining tax refunds in the form of U.S. Treasury checks and electronic bank deposits.
U.S. Attorney Green stated: “This case is another example of my office working in conjunction with the IRS to aggressively identify and prosecute criminals who use stolen identities to defraud the United States and unlawfully obtain money to satisfy their own greed. We look forward to continuing our work with IRS-CI and other investigative agencies in the fight against such conduct.”
Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “We are pleased with Ms. Coston’s conviction. Identity theft is an on-going problem and IRS-CI will continue to vigorously investigate and prosecute those engaged in these illegal activities. Our agency will continue to work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system. Participation in refund fraud schemes does not pay and those who do so will be prosecuted and held accountable for their illegal activities.”
This ongoing investigation is being conducted by the Internal Revenue Service’s Criminal Investigation Division. This matter is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Attorney and Stock Promoter Sentenced for Roles in Securities Fraud Conspiracy Involving ConnectAJet.comRead the Press Release
DALLAS — Attorney Martin Cantu, who was the CEO of Connect-a-Jet, and his co-defendant, stock promoter Jason Wynn, were sentenced today by U.S. District Judge Ed Kinkeade on felony convictions stemming from their roles in a conspiracy to deceive potential investors about the business of Connect-a-Jet, announced U.S. Attorney John Parker of the Northern District of Texas.
Cantu, 59, of San Antonio, Texas, was sentenced to 35 months in federal prison and was ordered to surrender his law license. Wynn, 33, of Lantana, Texas, was sentenced to serve a five-year term of probation. Judge Kinkeade ordered them to pay $423,938.66 in restitution. In addition, both defendants are subject to large SEC restitution orders; Wynn’s is nearly $11 million and Cantu’s is approximately $800,000.
Cantu was convicted at trial in May 2015 on both counts of an indictment charging one count of conspiracy to commit securities fraud and one count of securities fraud. Cantu, pleaded guilty in April 2015 to the conspiracy offense
Connect-a-Jet (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, founded the company and began its development. By the time Cantu became involved with the business, Wynn and Cantu had abandoned plans to turn the company into a legitimate business and instead focused on pumping and dumping the stock of Connect-a-Jet. Connect-a-Jet was traded on an exchange known as the Pink Sheets and had tens of thousands of public investors. Cantu, who is a licensed attorney with the state of Texas, owned the majority of shares of CAJT.
From approximately May to October 2007, Cantu and Wynn conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements, including ads in USA Today and commercials on CNBC, to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept and design stage. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices. As part of the conspiracy, Cantu engaged in a cover-up of his crimes including providing false testimony to the Securities and Exchange Commission.
The indictment also named co-conspirator Ryan Reynolds, a former stockbroker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
Over the course of 15 days in the fall of 2007, Cantu realized $552,341 in profits from the sale of 250,000 CAJT shares he controlled, which represented 83% of his total number of shares. Cantu sold these shares through an account in the name of his father. From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million.
Today’s announcement is part of efforts underway 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 www.stopfraud.gov.
The FBI investigated the case. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch prosecuted.
# # #
Attorney General Loretta E. Lynch Announces $2.7 Million in Grants to Strengthen the Justice System's Response to Sexual AssaultRead the Press Release
Attorney General Loretta E. Lynch today announced seven awards totaling $2.7 million in funding through the Department of Justice’s Office on Violence Against Women’s Sexual Assault Justice Initiative (SAJI) to improve how the justice system in general, and prosecution in particular, handles sexual assault cases. The seven pilot sites will implement performance measures that reflect promising practices for prosecuting sexual assault and promoting justice for victims, receiving technical assistance from AEquitas: The Prosecutor’s Resource on Violence Against Women and participating in the evaluation of the initiative.
“Sexual and domestic violence is a heinous crime, inflicting physical and emotional trauma that can linger for years, with grave consequences for survivors and their loved ones; for neighborhoods and communities and for our country as a whole,” said Attorney General Lynch. “The Department of Justice is committed to doing everything it can to help prevent, investigate and prosecute these horrendous crimes – including working to ensure that our greatest partners in this effort, the state and local law enforcement officers on whom we all rely, have the tools, training and resources they need to fairly and effectively address allegations of sexual assault and domestic violence.”
The seven pilot sites that will receive funding through the OVW’s Sexual Assault Justice Initiative are: Jefferson County Commission, Birmingham, Alabama; city of Los Angeles, Los Angeles; Cobb County Board of Commissioners, Marietta, Georgia; city and county of Honolulu, Honolulu; New Hampshire Department of Justice, Concord, New Hampshire; Cherokee Nation, Tahlequah, Oklahoma; and county of Sauk, Baraboo, Wisconsin. The awards for each site range from $390,000 – $400,000.
Attorney General Lynch made the announcement at an event announcing the release of a Justice Department guidance on “Identifying and Preventing Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence,” in Washington, D.C. The grants are part of the Justice Department’s ongoing commitment to protecting women from violence and strengthening the capacity of communities to respond to domestic and sexual violence.
The demonstration initiative is designed to strengthen the justice system’s response to sexual violence and enhance collaborations among sexual assault victim services providers, law enforcement agencies and sexual assault medical forensic services providers. With funding from the Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program, the Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Grant Program and the Tribal Governments Grant Program, SAJI sites will be able to use the funds to strengthen services in their communities that support sexual assault victims.
For more information on OVW and its programs, please visit: www.justice.gov/ovw.
Alabama Resident Indicted for Stolen Identity Tax Refund Fraud SchemeRead the Press Release
An Alabama resident was arrested today after being indicted on Dec. 9 by a federal grand jury sitting in Montgomery, Alabama, on 15 counts of wire fraud, 15 counts of aggravated identity theft and two counts of passing U.S. Treasury checks with a false endorsement, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. of the Middle District of Alabama.
According to the allegations in the indictment, James Vernon Battle, a resident of Montgomery County, used stolen personal identification information to prepare and file false federal income tax returns for tax years 2013 and 2014 for the purpose of obtaining fraudulent tax refunds. Battle directed the Internal Revenue Service (IRS) to issue the requested refunds by depositing the funds onto prepaid debit cards and by issuing U.S. Treasury checks.
If convicted, Battle faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, a mandatory minimum sentence of two years in prison for aggravated identity theft and a statutory maximum sentence of 10 years in prison for each count of passing a U.S. Treasury check with a false endorsement. He also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
***media Advisory***Read the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, joined by West Virginia State Police Major Tim Bradley and Mercer County Commissioner and Community Connections Executive Director Greg Puckett, will announce a new partnership to expand access to naloxone at a press conference at the Princeton Detachment of the West Virginia State Police on Wednesday, December 16, 2015, at noon.
Naloxone, a medication that can reverse the effects of opioid overdose and is commonly known as Narcan, has been successfully utilized by law enforcement and first responders to prevent drug overdose. U.S. Attorney Goodwin will introduce the new partnership between the West Virginia State Police and Community Connections that will provide overdose prevention training to West Virginia State Troopers in Mercer, McDowell, and Wyoming Counties.
WHO:
- United States Attorney Booth Goodwin
- West Virginia State Police Major Tim Bradley
- Mercer County Commissioner and Community Connections Executive Director Greg Puckett
WHAT:
- Press conference to announce expansion of access to naloxone through a new partnership
WHERE:
- WV State Police – Princeton Detachment
- 910 Oakvale Road
- Princeton, WV 24740
WHEN:
- Wednesday, December 16, 2015, at noon.
Follow us on Twitter: SDWVNews
Monday 14 December 2015
Wetzel County, WV man convicted of financial fraudRead the Press Release
WHEELING, WEST VIRGINIA – Clarence Joseph Jackson, 48, of New Martinsville, West Virginia, was convicted of financial fraud in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Jackson, also known as “Butch Jackson,” owned and operated Jackson’s Used Cars LLC in Wetzel County, West Virginia. Jackson’s business maintained an account at Union Bank, Inc. As a financial institution, Union Bank is required to file a Currency Transaction Report with the United States Department of the Treasury for any transaction in excess of $10,000. Multiple transactions are to be treated as a single transaction if the financial institution has knowledge that the individual transactions are by, or on behalf of, the same person, and the transactions cause currency in excess of $10,000 to be received or disbursed by the financial institution during any one business day. Between November 25, 2014 and December 10, 2014, Jackson attempted to avoid the aforementioned reporting requirements by dividing a large amount of cash proceeds into multiple different deposits into the business account at Union Bank.
Jackson pled guilty to a criminal Information charging him with one count of “Structuring Transactions to Evade Reporting Requirements.” He faces up to five years in prison and a fine of up to $250,000. In pleading guilty, Jackson also agreed to pay a money judgment in the amount of $23,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge James E. Seibert presided.
Visalia Man Pleads Guilty to Sex TraffickingRead the Press Release
FRESNO, Calif. — Tyrell Richmond, 33, of Visalia, pleaded guilty today to sex trafficking a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitutes who appeared to be underage. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. Richmond collected all of the money received by the girls, and did not permit them to leave their motel rooms, other than to get ice.
Richmond is scheduled to be sentenced on March 28, 2016. He faces a sentence of between 10 years and life in prison and a $250,000 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 Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
U.S. Border Patrol Supervisor Sentenced to 21 Months in Prison for Placing Hidden Camera in Women’s RestroomRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Alessandra Serano (619) 546-8104 and Lara Stingley (619) 546-8403
NEWS RELEASE SUMMARY – December 15, 2015
SAN DIEGO – U.S. Supervisory Border Patrol Agent Armando Gonzalez was sentenced in federal court today to 21 months in prison for placing a hidden camera in a floor drain of the women’s restroom at the Chula Vista Border Patrol station to capture images of female private parts.
In handing down the sentence, U.S. District Judge Roger T. Benitez said the “facts of this case were shocking,” and he described the conduct as “egregious” and “a violation of trust.” Gonzalez was permitted to remain free on bond until January 22, when he is required to report to the U.S. Bureau of Prisons.
During today’s hearing, Assistant U.S. Attorney Alessandra Serano told the court that the defendant’s crimes warranted a significant sentence, noting that the camera was in place for about 18 months and the defendant spent a lot of time editing, naming and saving the videos.
“When Armando Gonzalez put a video camera down the drain of a women’s restroom, he also put his career, his honor and his freedom down that drain,” said U.S. Attorney Laura Duffy. “This is a fitting sentence for a man who sullied his badge with such despicable behavior.”
Gonzalez pleaded guilty in May to one count of making a false statement to a federal officer and seven counts of video voyeurism. He admitted that he placed a hidden camera in a floor drain of the women’s restroom at the Chula Vista Border Patrol station to capture images of female private parts.
Gonzalez, a supervisor, also admitted that when Border Patrol superiors confronted him about the camera, he lied to cover up his crimes, saying that he’d placed the camera in the bathroom to conduct a drug investigation of one of his female employees.
According to the plea agreement, Gonzalez acknowledged that he captured video images of the unclothed private parts of seven women – all federal employees - who used the bathroom between July 24, 2013 and April 11, 2014. The videos were as short as 24 seconds and as long as nine minutes, 17 seconds.
The defendant saved the video images from those instances, and dozens of others, on an SD card he kept hidden at his workplace, the plea agreement said. Gonzalez admitted that after the hidden camera was discovered, he destroyed or discarded the hard drive from the Apple MacBook used to edit the videos before law enforcement had a chance to execute a search warrant at his home.
DEFENDANT Case Number: 15cr0806-BEN
Armando Gonzalez Age 47 El Cajon, CA
SUMMARY OF CHARGES
One Count, False Statements to a Federal Officer, in violation of 18 U.S.C. 1001
Maximum Penalty: Five years in prison, $250,000 fine
Seven Counts, Video Voyeurism, in violation of 18 U.S.C. 1801
Maximum Penalty: One year in prison, per count, and $100,000 fine per count
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Department of Homeland Security
San Diego Police Department
U.S. Attorney Announces Department of Justice is Reviewing Darrius Stewart ShootingRead the Press Release
Memphis, TN – In light of multiple inquiries regarding the July shooting of teenager Darrius Stewart by a Memphis police officer, U.S. Attorney Edward L. Stanton III has announced that the Department of Justice (DOJ), in tandem with its Civil Rights Division, the U.S. Attorney’s Office, and the Federal Bureau of Investigation is conducting a comprehensive review of the matter.
In July, Stewart’s shooting was referred by local authorities to the Tennessee Bureau of Investigation (TBI). The TBI subsequently prepared a report for consideration by the Shelby County District Attorney General’s Office. In early November, a state grand jury declined to indict Memphis police officer Connor Schilling on charges related to the death of Stewart.
The DOJ has been conducting an independent, comprehensive, and careful review of the evidence collected related to the shooting of Stewart. A team of agents, along with experienced prosecutors from the U.S. Attorney’s Office and the DOJ’s Civil Rights Division in Washington, D.C., are conducting the review which encompasses all of the circumstances surrounding Stewart’s death.
At this time, the DOJ’s review is ongoing. The U.S. Attorney’s Office cannot disclose any information about the Department’s internal deliberations.
The U.S. Attorney’s Office and its federal, state and local partners take very seriously all allegations of civil rights violations by law enforcement officers. The Department will continue to devote the necessary resources to examine any such allegations and will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
U.S. Army National Guard Soldier Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
CHICAGO — A soldier in the U.S. Army National Guard pleaded guilty today to federal charges that he conspired with his cousin to provide material support to a foreign terrorist organization in the Middle East.
HASAN R. EDMONDS, 23, of Aurora, pleaded guilty to one count of conspiring to provide material support to a foreign terrorist organization, and one count of attempting to provide material support to a foreign terrorist organization. The terrorist organization is identified in a written plea agreement as the Islamic State of Iraq and the Levant, commonly referred to as ISIL, ISIS, or the Islamic State.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
“The top priority of federal law enforcement is to protect the safety of our citizens, both here and abroad,” said U.S. Attorney Fardon. “We will vigorously investigate and prosecute those who align themselves with ISIL and its mission of brutal violence.”
“Hasan and Jonas Edmonds conspired to provide material support to ISIL,” said Assistant Attorney General Carlin. “They admitted planning to wage violence on behalf of ISIL in the Middle East and to conduct an attack on our soil. Thanks to the efforts of many prosecutors, agents, and analysts, we were able to ensure these plotters did not attain their violent endgames, and with these guilty pleas, they will be held accountable. Counterterrorism remains the Department’s highest priority, and we will continue use all available tools to combat ISIL, a foreign terrorist organization that rapes, murders and enslaves Muslims and non-Muslims alike.”
According to the plea agreement, Hasan Edmonds and his cousin, JONAS M. EDMONDS, devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. On March 25, 2015, Jonas Edmonds drove Hasan Edmonds to Midway International Airport in Chicago so that Hasan Edmonds could board a flight to the Middle East, according to the plea agreement. After dropping off Hasan Edmonds, Jonas Edmonds went to Hasan Edmonds’ residence and retrieved several of Hasan Edmonds’ National Guard uniforms, which Jonas Edmonds planned to wear as a disguise during a planned attack at the National Guard base in Joliet, the plea agreement states.
Hasan Edmonds is a member of the Army National Guard and had trained at the Joliet installation.
Law enforcement agents on the Chicago FBI’s Joint Terrorism Task Force arrested Hasan Edmonds at Midway Airport before he could board his flight. Shortly thereafter the agents arrested Jonas Edmonds at his home.
The cousins are citizens of the United States.
The charges against Hasan Edmonds carry a combined maximum sentence of 30 years in prison and $500,000 fine. U.S. District Judge John Z. Lee scheduled a sentencing hearing for March 18, 2016, at 11:00 a.m.
Jonas Edmonds, 30, of Aurora, pleaded guilty last week to one count of conspiring to provide material support to a foreign terrorist organization, and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism. He faces a maximum sentence of 23 years in prison when he is sentenced by Judge Lee on Jan. 27, 2016, at 2:00 p.m.
The Joint Terrorism Task Force is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard provided significant assistance in the investigation.
The government is represented by Assistant United States Attorneys Barry Jonas and John Kness of the Northern District of Illinois; and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Plea Agreement
U.S. Army National Guard Soldier Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
A soldier in the U.S. Army National Guard pleaded guilty today to federal charges that he conspired with his cousin to provide material support to a foreign terrorist organization in the Middle East.
Hasan R. Edmonds, 23, of Aurora, Illinois, pleaded guilty to one count of conspiring to provide material support to ISIL, a designated foreign terrorist organization, and one count of attempting to provide material support to ISIL.
The charge was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division.
“Hasan and Jonas Edmonds conspired to provide material support to ISIL,” said Assistant Attorney General Carlin. “They admitted planning to wage violence on behalf of ISIL in the Middle East and to conduct an attack on our soil. Thanks to the efforts of many prosecutors, agents and analysts, we were able to ensure these plotters did not attain their violent endgames, and with these guilty pleas, they will be held accountable. Counterterrorism remains the department’s highest priority, and we will continue use all available tools to combat ISIL, a foreign terrorist organization that rapes, murders and enslaves Muslims and non-Muslims alike.”
“The top priority of federal law enforcement is to protect the safety of our citizens, both here and abroad,” said U.S. Attorney Fardon. “We will vigorously investigate and prosecute those who align themselves with ISIL and its mission of brutal violence.”
According to the plea agreement, Hasan Edmonds and his cousin, Jonas M. Edmonds, devised a plan for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Hasan Edmonds admitted that on March 25, 2015, Jonas Edmonds drove Hasan Edmonds to Midway International Airport in Chicago so that he could board a flight to the Middle East. According to the plea agreement, after dropping off Hasan Edmonds, Jonas Edmonds went to Hasan Edmonds’ residence and retrieved several of Hasan Edmonds’ National Guard uniforms, which Jonas Edmonds planned to wear as a disguise during a planned attack at the National Guard base in Joliet, Illinois.
Hasan Edmonds is a member of the Army National Guard and had trained at the Joliet installation.
Law enforcement agents on the FBI’s Chicago Joint Terrorism Task Force arrested Hasan Edmonds at Midway Airport before he could board his flight. Shortly thereafter the agents arrested Jonas Edmonds at his home. The cousins are citizens of the United States.
The charges against Hasan Edmonds carry a combined maximum sentence of 30 years in prison and $500,000 fine. U.S. District Judge John Z. Lee of the Northern District of Illinois scheduled a sentencing hearing for March 18, 2016.
Jonas Edmonds, 30, of Aurora, pleaded guilty last week to one count of conspiring to provide material support to a designated foreign terrorist organization and one count of making a materially false statement to a law enforcement officer regarding an offense involving international terrorism. He faces a maximum sentence of 23 years in prison when he is sentenced by U.S. District Judge John Z. Lee on Jan. 27, 2016, at 2:00 p.m.
The case is being investigated by the FBI’s Chicago Joint Terrorism Task Force. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard provided significant assistance in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois; and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Hasan Edmonds Superseding Information
Two-Year Prison Sentence for Marijuana Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. —Ezequiel Armas-Ortiz (Armas), 49, of Michoacán, Mexico, was sentenced today to two years in prison by U.S. District Judge Lawrence J. O’Neill for conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation on public land, United States Attorney Benjamin B. Wagner announced.
According to court documents, Armas and co-defendant Macedonio Madrigal-Herrera (Madrigal), 44, also of Mexico, were responsible for watering 2,719 marijuana plants in the Brush Creek drainage of in the Sequoia National Forest in Tulare County. The marijuana cultivation activities caused extensive damage to the public land and natural resources. Zinc phosphide, a toxic pesticide from Mexico, was found at the site, along with fertilizer and trash. Trees and plants, newly generated following the 2002 McNally Fire, were cut down to make room for the marijuana. Water was diverted from a nearby stream that supports trout. Armas was also ordered to pay $4,200 in restitution to the U.S. Forest Service for the damage caused by his wrongful conduct.
Armas pleaded guilty on October 19, 2015. Madrigal is scheduled for a status conference in federal court in Fresno on January 19, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California National Guard, California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Two more defendants sentenced in Detroit to Huntington heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – Two men who participated in a heroin conspiracy between 2012 and 2015 were the latest defendants sentenced today in federal court in Huntington, West Virginia, announced United States Attorney Booth Goodwin. Sean L. Gist, 22, of Detroit, was sentenced to five years and three months in federal prison after previously pleading guilty to conspiracy to distribute 100 grams or more of heroin. Paul A. Roberts, Jr., 22, of Huntington, was sentenced to five years of probation after previously pleading guilty to maintaining a residence for the distribution of heroin.
From December of 2013 to January of 2015, Gist participated in a conspiracy, led by Kenneth E. Baxter, that transported heroin from Detroit to Huntington for distribution. Once the drugs reached Huntington, Gist provided heroin to multiple individuals for distribution. Gist also distributed heroin himself, arranged for the sale of heroin to a confidential informant on January 28, 2015, at Harris Riverfront Park in Huntington, and admitted that he possessed a firearm in connection with the conspiracy.
Roberts helped to secure one of the residences used in the conspiracy located at 403 Homestead Place in Huntington. From October of 2014 to December of 2014, Roberts, Coty E. Richardson, and others used the residence to store, package, and distribute heroin. On December 6, 2014, a United States Postal Inspector intercepted a package containing approximately 230 grams of heroin addressed to the residence. After agents delivered the package, they executed a search warrant, located Roberts in the residence, and seized heroin, equipment used to package and distribute heroin, more than $6,500 in cash, and four guns.
Several defendants have been convicted of federal drug charges as a result of the investigation, including Dustin S. Barton, who pleaded guilty in August of 2015 to distributing heroin, and Warren G. Howard, Jr., who pleaded guilty on December 7, 2015, to distributing heroin. This investigation has also resulted in prison sentences for additional defendants for their roles in the conspiracy, including Kenneth Baxter, who was sentenced to seven years and three months, Coty Richardson, who was sentenced to five years and ten months, Ramone L. Wells, who was sentenced to four years, and Pricilla Lee Dylan, who was sentenced to two years and nine months.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Two Individuals Indicted for Bank and Wire FraudRead the Press Release
SAN JUAN, Puerto Rico– On December 9, 2015, a Federal grand jury returned a seventy-nine count indictment charging Miosotis Ribot-Figueroa (Ribot) with bank fraud, wire fraud, and aggravated identity theft and charging Ribot and José F. González-Guzmán (González) with a total of four counts of monetary transactions in property derived from specified unlawful activity, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) is in charge of the investigation. The indictment was unsealed today upon the arrest of both defendants.
These charges stem from a scheme utilized by Ribot from approximately May to October 2014 to make thirty four unauthorized bank transfers from the bank account of her employer to bank accounts controlled by Ribot and/or González totaling approximately $490,165.42. Ribot was employed as an assistant controller for a Puerto Rico company that sold, distributed, and provided service for medical equipment. As a part of the scheme, Ribot logged into her employer’s computer network and accessed their bank’s system for processing payments and bank transfers to vendors and customers. Ribot then processed thirty-four unauthorized bank transfers to herself and González. Ribot submitted false and fraudulent invoices to correspond to the fraudulent bank transfers. Ribot also submitted false information into a journal voucher system to reflect that the bank transfer had been authorized by a supervisor. In doing so, Ribot utilized the names and signature of others to further the scheme to defraud.
Ribot and González are also charged with a total of four counts of monetary transactions in property derived from specified unlawful activity related to transactions in excess of $10,000 utilizing the stolen funds. Those four transactions have a total value of approximately $75,406.82.
The indictment alleges thirty-four counts of bank fraud, a violation of Title 18, United States Code, Sections 1344, thirty-four counts of wire fraud, a violation of Title 18, United States Code, Section 1343, seven counts of aggravated identity theft, of a violation of Title 18, United States Code, Section 1028A(a)(1), related to the possession and use without lawful authority of a means of identification in relation to bank fraud and wire fraud charged in the indictment, and four counts of monetary transactions in property derived from specified unlawful activity, a violation of Title 18, United States Code, Section 1957, related to monetary transactions in excess of $10,000 using the stolen funds. The total value of the fraud was approximately $490,165.42. Defendants are facing a money judgment of $490,165.42, a forfeiture allegation of a lot of land located in the Municipality of Gurabo with a surface of 509,000 acre, equivalent to 2,003.92 square meters, and a Vessel, a 2002 Doral International Model 360SE named Cizañas.
If found guilty, Ribot faces a maximum penalty of thirty years in prison for bank and wire fraud, ten years in prison for monetary transactions in property derived from specified unlawful activity, and a mandatory two year consecutive term in prison for aggravated identity theft. If found guilty, González faces a maximum penalty of ten years in prison for monetary transactions in property derived from specified unlawful activity.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Seth Erbe.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Two Charleston men plead guilty in Federal court to heroin traffickingRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty today to federal heroin charges, announced United States Attorney Booth Goodwin. Anthony Lamar Jordan Honeycutt, 35, of Charleston, West Virginia, pleaded guilty in federal court in Huntington to possession with intent to distribute heroin. Leon Wilson, Jr., 43, of Charleston, pleaded guilty in federal court in Charleston to distributing heroin.
On December 16, 2014, drug task force officers working with the Metropolitan Drug Enforcement Network Team stopped Honeycutt in downtown Charleston. Honeycutt was on his way to deliver heroin to a confidential informant working with law enforcement. Officers found Honeycutt in possession of approximately 42 grams of heroin at the time of his arrest. Honeycutt faces up to 20 years in federal prison and a $1 million fine when he is sentenced in federal court in Huntington on March 14, 2016. The case against Honeycutt was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
Another defendant, Leon Wilson, Jr., admitted that in May of 2015, he sold heroin to a confidential informant working with law enforcement authorities on three separate occasions. The drug deals took place at Wilson’s Charleston apartment. After these drug deals, the Kanawha County Sheriff’s Department executed a search warrant at Wilson’s residence. Officers found over $1,000 cash in Wilson’s possession, which included some of the pre-recorded buy money used in one of the drug deals with the confidential informant. Wilson faces up to 20 years in federal prison and a $1 million fine when he is sentenced in federal court in Charleston on March 16, 2016. The case against Wilson was investigated by the Kanawha County Sheriff’s Department, Sheriff’s Tactical Operations Patrol Team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down drug trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Turlock and Merced Hydroponics Supply Store Owner Pleads Guilty to Structuring Cash Transactions and Filing a False Tax ReturnRead the Press Release
FRESNO, Calif. —Branden Adam Eidson, 35, of Turlock, pleaded guilty today to structuring financial transactions and filing a false tax return, United States Attorney Benjamin B. Wagner announced.
According to court documents, Eidson, the owner of Hooked Up Hydroponics, a hydroponics supply store, failed to report more than $1.2 million in income from his business for the tax years 2008 through 2010. This unreported income resulted in a tax loss to the Internal Revenue Service of more than $430,000. In addition to misreporting his income, Eidson deposited more than $1.5 million in cash into his bank accounts in amounts of $10,000 or less to prevent his banks from filing Currency Transaction Reports on those transactions.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Drug Enforcement Administration. Assistant United States Attorney Grant B. Rabenn and Special Assistant U.S. Attorney Katherine Plante are prosecuting the case.
Eidson is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 21, 2016. Edison faces a maximum statutory penalty of five years in prison and a $250,000 fine for structuring, and three years and a $250,000 fine for filing a false tax return. 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.
Topeka Man Sentenced for CarjackingRead the Press Release
TOPEKA KAN. – A Topeka man was sentenced Monday to three years in federal prison for carjacking, U.S. Attorney Barry Grissom said.
Marcus Anthony Montoya, 23, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on Jan. 12, 2015, he and a co-defendant physically assaulted a Topeka man and stole the keys to the victim’s 1999 Ford Mustang. The assault occurred in the 1800 block of Michigan Avenue in Topeka. The victim didn’t get his car back until March 29, 2015. The car had suffered extensive damage.
Co-defendant Michael Minh Koy, 25, Topeka, Kan., is set for sentencing March 14.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jarred Maag for their work on the case.
Topeka Man Sentenced for Bank RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Monday to three years in federal prison for bank robbery, U.S. Attorney Barry Grissom said.
Kirk Mychale Sexton, 27, Topeka, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Jan. 9, 2015, he robbed the Equity Bank at 3825 S.W. 29th Street in Topeka. He entered the bank wearing a blue hoodie with the words “Topeka Water” on the back and handed a clerk a note demanding money. He left the bank with the cash. Police stopped him nearby after seeing red dye from a dye pack on his clothes.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Timothy Chesser Sentenced for Methamphetamine Manufacturing ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On Dec. 14, 2015, Timothy Chesser, 35, of Harriman, Tenn., was sentenced to serve 240 months in prison, by the Honorable Pamela L. Reeves, U.S. District Judge, for conspiracy to manufacture 50 grams or more of methamphetamine (meth) and possession of precursors used to manufacture meth. Upon his release from prison, he will be supervised by the U.S. Probation Office for 10 years. His federal sentence is consecutive to any Roane County, Tennessee state sentence he may receive for pending charges.
Chesser was charged along with several others in a July 2014 indictment. He pleaded guilty to the offenses described above in August 2015. According to documents on file with U.S. District Court, between 2012 and 2014, Chesser conspired with at least one other person to manufacture and distribute at least 50 grams of meth in various locations in east Tennessee. According to pharmacy records and the statements of others, he purchased, or had others purchase for him, pseudoephedrine that he used to manufacture meth.
This case was investigated by the Roane County Sheriff’s Office, Harriman Police Department, Rockwood Police Department, Kingston Police Department, Tennessee Bureau of Investigation, and Federal Bureau of Investigation. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
###
Thirty-Four Facing Federal and Tribal Charges Arising Out of Methamphetamine Trafficking on Mescalero Apache ReservationRead the Press Release
ALBUQUERQUE – Thirty-four individuals are facing federal and tribal drug charges as the result of an 18-month multi-agency investigation spearheaded by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and thirteen non-Natives are charged in six indictments and a criminal complaint filed in the U.S. District Court for the District of New Mexico in Nov. and Dec. 2015. Sixteen other members of the Mescalero Apache Tribe are 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 allegedly led by Lorenzo Saenz, a member of the Mescalero Apache Tribe, which distributed methamphetamine within the Reservation. It 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.
“Methamphetamine has a disproportionate devastating impact on tribal communities, accounting for up to 40% of violent crime on reservations,” said District of New Mexico U.S. Attorney Damon P. Martinez. “This investigation is an example of the Justice Department’s commitment to working with Tribal Governments to improve the safety of Native communities and increase awareness of the dangers of methamphetamine use.”
“I want to thank the BIA’s Division of Drug Enforcement and Office of Justice Services, the DEA and the U.S. Attorney’s Office for the many, many hours they put forth during this investigation,” said President Danny Breuninger of the Mescalero Apache Tribe. “Before and since taking Office as the President of the Mescalero Apache Tribe, I heard complaints from our Tribal Members and saw the pain and suffering caused by illegal drug use and sales on our Reservation. Many of our young people are being poisoned by methamphetamine and lives are being shattered by senseless drug-related injuries and deaths. As the leader of my Tribe, it is my job to do all I can to preserve the safety and welfare of our people and to preserve our culture, traditions and customs. The great majority of our Tribal Members are great people who work hard every day to support their families and raise their children with the values and traditions that have been passed down generation after generation. But continuing to do this is very hard when our Tribal Members’ lives are being torn apart by illegal drug use. I call on the Federal Government, including the President, the Attorney General and Congress, to continue supporting and working with BIA and tribal police departments in these types of collaborative efforts throughout Indian Country. Thank you again for all of the support and dedication in serving the Mescalero Apache Tribe.”
Saenz and four other members of the Mescalero Apache Tribe are charged in four federal indictments with distributing methamphetamine within the Mescalero Apache Reservation. Saenz and a co-defendant are alleged to have participated in a methamphetamine trafficking conspiracy during which they sold methamphetamine to undercover agents on multiple occasions. Saenz was one of two federal defendants arrested on Dec. 11, 2015, when 13 of the 16 tribal defendants were also arrested. A third federal Mescalero Apache defendant is in state custody on unrelated charges and the remaining two have yet to be arrested.
Thirteen non-Natives, alleged members of two drug trafficking organizations that supplied the methamphetamine distributed within the Mescalero Apache Reservation, are charged in two other federal indictments and a federal criminal complaint. Eight of the non-Natives are charged with methamphetamine trafficking and money laundering offenses in a 24-count indictment; three are charged with methamphetamine trafficking offenses in a five-count indictment; and two are charged with methamphetamine trafficking offenses in a criminal complaint. Eight of the non-Natives have been arrested, two are in state custody on unrelated charges, and three have yet to be arrested.
“The DEA and Bureau of Indian Affairs dismantled three drug trafficking organizations distributing methamphetamine on the Mescalero Apache Reservation and across southeastern New Mexico,” said Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division. “This is our warning to others who think they can hide their crimes on Tribal Lands: we are coming for you.”
“The BIA would like to thank the DEA and the U.S. Attorney’s Office for an outstanding collaborative effort that shows the resolve of our law enforcement partners to address the issue of illicit drug use in Indian Country and their dedication to provide safe communities for Indian people,” said Special Agent in Charge William McClure of District IV of BIA’s Office of Justice Services. “The many hours and resources that went in to this operation have increased the safety of tribal community members and reduced their fear of the danger posed by these individuals charged and their associates.”
“Methamphetamine continues to have a devastating effect on Native American families and communities throughout Indian Country,” said Gary Cunningham, Regional Agent in Charge of BIA’s Division of Drug Enforcement. “The results of this multi-agency investigation are a great example of what can be accomplished when the Bureau of Indian Affairs and other federal, state and local law enforcement agencies combine efforts and resources to remove these drug trafficking organizations from our communities. Indian Country is grateful for these partnerships and BIA will continue to work with our law enforcement partners to aggressively remove these negative elements from our communities.”
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.
The following additional agencies assisted the investigating agencies with law enforcement operations on Nov. 20, 2015 and Dec. 11, 2015: U.S. Marshals Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, New Mexico State Police, HIDTA Interagency Metro Narcotics, New Mexico National Guard, Chaves County Metro Narcotics Task Force, Pecos Valley Drug Task Force, Alamogordo Police Department, Ruidoso Police Department, Socorro Police Department Sunland Park Police Department and Tularosa Police Department.
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.
Defendants Charged in Federal Indictments
The indictment filed in United States v. Saenz, 15-CR-4105 RB, charges Alvino L. Saenz, 49, a member of the Mescalero Apache Tribe, with distribution of methamphetamine. Saenz was arrested on Dec. 11, 2015.
The indictment filed in United States v. Lester, 15-CR-4106 RB, charges Glen Joel Lester, 38, a member of the Mescalero Apache Tribe, with distribution of methamphetamine. Lester has yet to be arrested and is considered a fugitive.
The indictment filed in United States v. Saenz, et al., 15-CR-4110 RB, charges Lorenzo Y. Saenz, 51, and Rona Antone Morin, 44, both members of the Mescalero Apache Tribe, with conspiracy and distribution of methamphetamine. Saenz was arrested on Dec. 11, 2015. Morin has yet to be arrested and is considered a fugitive.
The indictment filed in United States v. Tafoya, et al., 15-CR-4112 RB, charges the following eight non-Natives with methamphetamine trafficking and money laundering offenses:
-
Carlos Tafoya, Jr., 34, of Socorro, N.M., was arrested on Nov. 13, 2015.
-
Robin Lee Lovelace, 55, of Alamogordo, N.M., was arrested on Nov. 13, 2015.
-
Jerilyn Lee Muñoz, 27, of Artesia, N.M., was arrested on Nov. 20, 2015.
-
Patricia Kay Portillo, 54, of Carrizozo, N.M., is in state custody on unrelated charges and will be transferred to federal custody to face the charges in the indictment.
-
Robert Alan Rutledge, 33, of Alamogordo, N.M., was arrested on Dec. 2, 2015.
-
Justin Aaron Hudkins, 33, of Alamogordo, N.M., was arrested on Nov. 20, 2015.
-
Audrey J. Gomez, 30, of Hobbs, N.M., was arrested on Nov. 20, 2015.
-
Tandie Sheree Bettag, 37, of Alamogordo, N.M., was arrested on Dec. 8, 2015, after she was transferred from state custody to federal custody.
The indictment filed in United States v. Herrera, et al., 15-CR-4407 RB, charges the following three non-Natives with methamphetamine trafficking offenses:
-
Octavio Herrera, 53, of Ruidoso Downs, N.M., has yet to be arrested and is considered a fugitive.
-
Rumaldo Varela Enriquez, 45, of Lovington, N.M., has yet to be arrested and is considered a fugitive.
-
Johnny Flowers, 50, of Hobbs, N.M., has yet to be arrested and is considered a fugitive.
The criminal complaint filed in U.S. v. Boutte, et al., 15-MJ-4009, charges the following two non-Natives with methamphetamine trafficking offenses:
-
Cedric James Boutte, 32, of Clovis, N.M., is in state custody on unrelated charges and will be transferred to federal custody to face the federal charges against him.
-
Tanya Schree Cain, 33, of Clovis, N.M., was arrested on Nov. 20, 2015.
Members of the public with information on the whereabouts of the five federal fugitives (Rumaldo Varela Enriquez, Johnny Flowers, Octavio Herrera, Glen Joel Lester and Rona Antone Morin) are asked to contact the DEA in Las Cruces at (575) 526-0700. Tips also can be “texted” to Tip411.
Defendants Charged in Tribal Criminal Complaints
The following members of the Mescalero Apache Tribe are charged in Mescalero Apache Tribal Court with conspiracy and possession of methamphetamine:
-
Geraldine Jacqueline Baca, 45 (not arrested)
-
Wynette R. Baca, 48
-
Niles Caje
-
Lydia Yolanda Cervantes, 57
-
Teresa Cooper
-
Raenette Rose Evans, 34
-
Louise Glossop, 28
-
Rosemary Harrington, 32
-
Timothy R. Johnson, 26
-
Cullen Kaydahzinne, 27
-
Theresa Rae Lester, 25 (not arrested)
-
Bryan P. Martinez, 32 (not arrested)
-
Ventura Peralta, 35
-
Sheri R. Platero, 36
-
Jeanette Robinson
-
Rebekah J. Victor, 32
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
-
San Jose Man Pleads Guilty to $37M Cisco FraudRead the Press Release
SAN JOSE – Cuong Cao “Calvin” Dang pleaded guilty in federal court late Friday afternoon to running a business selling products stolen from Cisco Systems by its employees, Acting United States Attorney Brian Stretch, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth announced today. In pleading guilty, Dang admitted to running Network Genesis, whose business, according to the plea agreement, was “overwhelmingly that of buying and selling merchandise stolen from Cisco” by its employees. Dang admitted that from January 2006 until Network Genesis was raided by federal law enforcement officers in January 2013, sales revenues totaled approximately $37,000,000.
According to the plea agreement, Dang, 45, of San Jose, Calif., owned and operated Network Genesis, based in San Jose, from approximately January 2006 until January 23, 2013. He also owned The Dang’s Investment, Inc. (TDI), which managed residential and commercial real estate properties Dang bought using profits generated from Network Genesis. Dang also worked at Cisco for almost five years between 1999 and 2004. He admitted to having a small network of Cisco employees who delivered stolen Cisco merchandise to Network Genesis for resale to customers both in and outside California. Dang admitted that, to cover his tracks, he changed the serial numbers on the stolen merchandise and created fraudulent “test sheets” to give to customers. (A test sheet shows the diagnostic information, including the serial number, for a particular part.)
To conceal how much he was making from the scheme, Dang admitted using nominees to launder the illicit proceeds. He directed some of his customers to send checks to his co-defendants instead of paying Network Genesis directly. In return for commissions from Dang, his co-defendants cashed some of those checks and deposited others into their own bank accounts, then withdrew the cash in structured amounts and funneled the money back to Dang. In this way, Dang was able to obtain large amounts of cash without having the money go through bank accounts associated with him or his businesses.
Dang was initially indicted by a federal Grand Jury on July 24, 2013, when he was charged with conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349; six substantive mail fraud counts, in violation of 18 U.S.C. § 1341; two counts of engaging in financial transactions using criminally derived proceeds, in violation of 18 U.S.C. § 1957; and forfeiture allegations.
The grand jury returned a superseding indictment on October 30, 2013, in which seven additional defendants were charged with various offenses relating to Dang’s scheme. In the superseding indictment, Dang was also charged with six counts of money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(A)(i) and (a)(1)(B)(i). Under the plea agreement, he admitted guilt to one count each of conspiracy to commit mail fraud (Count One), substantive wire fraud (Count Two), money laundering (Count Eight), and engaging in financial transactions using criminally derived proceeds (Count Seventeen). Dang is currently free on a $2.5M secured bond.
Dang’s sentencing hearing is scheduled for March 28, 2016, at 1:30 p.m., before the Honorable Edward J. Davila, United States District, in San Jose. The maximum statutory penalties he faces are: (1) for Count One, 20 years’ imprisonment and twice the gross gain he derived from the offense; (2) for Count Two, the same penalty as Count One; (3) for Count Eight, 20 years’ imprisonment and $500,000, or twice the value of the property involved in the transaction, whichever is greater; and (4) for Count Seventeen, 10 years’ imprisonment and $250,000, or twice the value of the property involved in the transaction, whichever is greater. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Restitution would usually also be ordered to be paid to the victim; however the parties agreed in the plea agreement that no restitution should be ordered in light of a Civil Settlement Agreement entered into between Dang and Cisco in Case No. 5:14-cv-01789-EJD.
A co-defendant, former Cisco employee Loc Xuan Hoang, pleaded guilty on February 11, 2015, to conspiring with Dang to commit mail fraud. His sentencing is pending. The superseding indictment remains pending against the following co-defendants: Emily Le, David Huynh, Thuy Nguyen, Long Pham, and Edwin Lin, each of whom is scheduled to return to court on December 21, 2015, at 1:30 p.m., for further status. Co-defendant Hieu Nguyen is a fugitive. (Any person with knowledge of his whereabouts is urged to contact IRS Criminal Investigation at 510-529-1923.)
Assistant United States Attorney David R. Callaway is prosecuting the case with the assistance of Elise Etter and Karen Bishop. The prosecution is the result of an investigation by the IRS Criminal Investigation, with the assistance of the Santa Clara R.E.A.C.T. Task Force.
Rochester Man Sentenced for Passing Coutnerfeit MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Dashawn Sanders, 25, who was convicted of conspiracy to pass counterfeit currency, was sentenced to 14 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Sanders conspired with co-defendants Tiffany Key, Shamell McCullough and Turemail McCullough to pass approximately $10,980 of counterfeit $20 bills at local retailers, including Walmart and Dollar General.
Tiffany Key has been convicted and is awaiting sentencing. Charges are pending against Shamell and Turemail McCullough. 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.
Today’s sentencing is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.Pennsylvania man convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raheem Cuffee, 31, of Philadelphia, Pennsylvania, was convicted of heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Cuffee was among 21 individuals charged in a 65-count federal indictment in November 2014. The indictment disrupted a drug distribution operation designed to transport large quantities of heroin and prescription painkillers across state lines from Pennsylvania into West Virginia for redistribution and sale. The leader of the operation, Juwan Woods, 32, of Philadelphia, Pennsylvania, pled guilty in April 2015 to one count of “Aiding and Abetting the Distribution of Oxycodone within 1000 feet of a Protected Location.” Woods was sentenced to 87 months in prison in August 2015.
Specifically, Cuffee sold heroin near Wiles Hill Playground in April 2014 in Monongalia County, West Virginia. He pled guilty to one count of “Aiding and Abetting Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Metro Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pee Dee Area Men Charged in Drug ConspiracyRead the Press Release
Contact Person: First Assistant U.S. Attorney Beth Drake (803) 929-3000
Columbia, South Carolina------United States Attorney Bill Nettles stated that nine individuals were charged in a 22-count indictment returned by the Florence Division Grand Jury for conspiring to distribute cocaine, cocaine base and heroin in the Pee Dee area of South Carolina [including Darlington, Florence and Williamsburg counties] in violation of Title 21, United States Code Section 846. This case originated with an investigation into the illegal activities of neighborhood street gangs in Hartsville, SC. Those recently indicted and arrested as part of this coordinated local, state and federal investigation were Otis Craig Dollard; Patrick O’Neal Hines, a/k/a “Bam”; Keith Huggins, a/k/a “Little Keith”; Justin Martin Jackson, a/k/a “Juiceman”; Benjamin Unique McCoy a/k/a “Paypa”; Chavis Vantay McCray, a/k/a “Chavo Manifoe”; Anthony James Pressley, a/k/a “Styler”; Roderick Scott, a/k/a “Bucket” and Tavares Lamore Wingate, a/k/a “Black.”
During the arrest and search warrants executed as part of this coordinated effort, law enforcement seized over a kilogram of cocaine, five ounces of cocaine base, cash and three firearms that were used as part of this drug trafficking network.
These arrests follow months of intense investigation and evidence collection by local, state and federal law enforcement partners that focused on concerns about violence, gangs and substantial drug trafficking in the Pee Dee area. Assisting in the investigation and apprehension operation included members of the FBI, SLED, Fifteenth Circuit Drug Enforcement Unit, Darlington County Sheriff’s Office Drug Unit, Florence County Sheriff’s Office, Florence Police Department, Sumter County Sheriff’s Office, Sumter Police Department, Williamsburg County Sheriff’s Office and the South Carolina Department of Probation, Parole and Pardons Services.
The case is assigned to Assistant United States Attorney Christopher D. Taylor. The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####
Owners of Nick’s Roast Beef Charged with Skimming Nearly $6 Million in CashRead the Press Release
BOSTON – The two owners of Nick’s Famous Roast Beef in Beverly, and the wife of one of the owners, were charged in an indictment unsealed today in U.S. District Court in Boston in connection with skimming nearly $6 million in cash receipts from the business over a six year period, and not reporting that cash income on their business or personal tax returns.
Nicholas Koudanis, 65, of Topsfield, Nicholas Markos, 69, of Lynn, and Eleni Koudanis, 60, were charged with one count of conspiracy to defraud the United States by obstructing the IRS and 10 counts of aiding and assisting in the filing of false tax returns. Steven Koudanis, 39, the son of Nicholas and Eleni Koudanis, was charged with one count of endeavoring to obstruct and impede the due administration of the Internal Revenue Laws.
According to the indictment, Nicholas Koudanis and Nicholas Markos own Nick’s Famous Roast Beef in Beverly, which only accepts cash payment. From 2008 to 2013, Nicholas Koudanis and Markos allegedly skimmed more than $1 million in cash receipts each year which they failed to report on either the corporate tax returns or their personal tax returns, thereby avoiding the payment of nearly $1 million each in personal income taxes during that period. According to the indictment, the two personally split up the cash receipts every week, determining how much to deposit into the business’s bank account and report on their tax returns, how much to use to pay suppliers and employees, and how much to keep for themselves. The indictment alleges that Eleni Koudanis had primary responsibility for the book-keeping functions of the business, and also recruited employees, including her son Steven Koudanis, to create false cash register receipts to use in connection with an IRS tax audit of Nick’s Famous Roast Beef. The true cash register receipts were allegedly destroyed and not provided to the tax preparer who prepared the business and personal tax returns. According to the indictment, Nicholas and Eleni Koudanis also amassed more than $1.6 million in cash as of December 2014, which they kept in a safe in their home.
The charge of conspiracy to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Each tax charge provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Orthodox Jewish Rabbi Sentenced to More Than Three Years in Prison for Role in Conspiracy to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - An Orthodox Jewish rabbi was sentenced today to 38 months in prison for his role in a conspiracy to coerce a Jewish man to give his wife a religious divorce – referred to as a “get” – through threats of violence, U.S. Attorney Paul J. Fishman announced.
Martin Wolmark, 57, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to travel in interstate commerce to commit extortion. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Aug. 7, 2013, Wolmark, an ordained Orthodox Jewish rabbi, spoke with a woman and her brother about obtaining a Jewish divorce from the woman’s recalcitrant husband. A get is a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce. Unbeknownst to Wolmark, the woman and the brother were actually undercover FBI agents.
During the conversation, which was recorded by law enforcement, Wolmark informed the agents that there were two ways to go about obtaining a get from such a recalcitrant husband, one of which was to “nail him.” Wolmark also told the agents that coercing the husband into giving a get could be expensive. He then recommended that the agents speak with his colleague, Mendel Epstein, 70, of Lakewood, New Jersey, who he knew had previously used violence to coerce recalcitrant husbands into giving gets to their wives. Wolmark then initiated a conference call with the agents and Epstein.
On Aug. 14, 2013, the agents met with Epstein at his home to discuss the case further. On Oct. 2, 2013, Wolmark convened a rabbinical court (a “beth din”) with Epstein and Jay Goldstein in his office in Suffern, New York. The purpose of this proceeding was to determine whether there were grounds under Jewish law to coerce the husband into giving the get. The female agent also attended and recorded the meeting. During this meeting, Epstein discussed openly the plan to kidnap and assault the purported husband in order to obtain the get.
On Oct. 9, 2013, a group of Wolmark’s conspirators – including Jay Goldstein, 61, Moshe Goldstein, 32, Avrohom Goldstein, 36, Simcha Bulmash, 32, Binyamin Stimler, 40, David Hellman, 33, and Sholom Shuchat, 31, all of Brooklyn, and Ariel Potash, 42, of Monsey, New York – traveled from New York to a warehouse in Edison, New Jersey, with the intent of forcing the purported husband to give his wife a get by means of violence and threats of violence.
In addition to the prison term, Judge Wolfson ordered Wolmark to serve two years of supervised release and pay a $50,000 fine.
Avrohom Goldstein, Potash, Shuchat, Moshe Goldstein, Hellman, and Bulmash have all pleaded guilty to one count of traveling in interstate commerce to commit extortion. Avrohom Goldstein and Potash were sentenced Nov. 19, 2015 to 45 and 14 months in prison, respectively. Shuchat was sentenced to time served on Nov. 19, 2015. Moshe Goldstein was sentenced Nov. 16, 2015 to 48 months in prison. Hellman and Bulmash were sentenced Nov. 17, 2015 to 44 and 48 months in prison, respectively.
Epstein, Jay Goldstein and Stimler were all convicted at trial on April 21, 2015. Epstein, who was convicted of conspiracy to commit kidnapping, is scheduled for sentencing on Dec. 15, 2015. Stimler and Jay Goldstein, both convicted of conspiracy to commit kidnapping and attempted kidnapping, are scheduled for sentencing on Dec. 15, 2015 and Dec. 16, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel: Benjamin Brafman Esq., New York
Northfield Vermont Man Charged with Unlawfully Possessing and Transferring ExplosivesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark McCloud, 45, of Northfield, Vermont has been charged in United States District Court with: (1) unlawfully possessing explosive devices; and, (2) unlawfully transferring an explosive device, in violation of federal law.
According to a Criminal Complaint and Affidavit filed today, the United States alleges that on December 9, 2015 McCloud lit an explosive device he was holding in his hand outside his residence in Northfield. The device exploded and McCloud lost his left hand and multiple bystanders were injured. The United States alleges the explosive device was made of copper tubing and explosive powder. According to the complaint affidavit, in executing a search warrant at McCloud’s residence, law enforcement officers found several feet of fusing materials consisting of fusing material commonly known as “quick match” or “instantaneous fuse.”
The United States also alleges that earlier that day McCloud gave one of these explosive devices to a neighbor and therefore, unlawfully transferred the explosive device. The Vermont State Police removed this device from the neighbor’s residence and it is currently being stored in an explosive bunker pending further analysis.
The District Court issued a summons for McCloud to appear for an initial appearance on December 21, 2015. If convicted, McCloud faces a maximum possible penalty of ten years in prison for each charge and fines of up to $250,000. If convicted, McCloud’s actual sentence will be advised by the Federal Sentencing Guidelines.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Vermont State Police, and the Northfield Police Department. The United States is represented by Assistant U.S. Attorney Joseph Perella.
Newington Man Admits Stealing Social Security Benefits Delivered to Deceased GrandmotherRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of theft of public funds.
According to court documents and statements made in court, NEWMAN’s grandmother was entitled to receive Social Security Administration (“SSA”) monthly benefit payments starting in 1980. The payments were made by direct deposit into a bank checking account. Although NEWMAN’s grandmother passed away in October 1996, the direct deposit payments continued until June 2014.
In March 2011, NEWMAN began accessing the funds in the account to make electronic payments on his credit card. From the time of his grandmother’s death until June 2014, approximately $220,729 of monthly benefit payments, net of Medicare premiums, were directly deposited into her bank account. NEWMAN used $218,079 of the funds for his own benefit.
Judge Hall scheduled sentencing for March 9, 2016, at which time NEWMAN faces a maximum term of imprisonment of 10 years, a fine of up to twice the amount of money stolen, and mandatory restitution to the Social Security Administration.
This matter is being investigated by the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anastasia Enos King.
New York Attorney Found Guilty in Manhattan Federal Court of Fraud in Connection with A Scheme to Purchase Maxim MagazineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HARVEY NEWKIRK, formerly counsel at Bryan Cave LLC, the New York law firm, was found guilty today of wire fraud in connection with his participation in a scheme to fraudulently induce lenders to provide tens of millions of dollars toward the purchase of Maxim Magazine and related assets (“Maxim”).
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found, Harvey Newkirk, a lawyer and officer of the court, defrauded lenders out of millions of dollars by lying as part of a scheme to acquire Maxim Magazine. Sworn to practice law ethically, Newkirk instead practiced deceit and dishonesty. For that, the jury has convicted him of a serious federal crime.”
As established by the evidence at trial:
In connection with the potential purchase of Maxim by a company (the “Company”) controlled by Calvin Ramarro Darden (“Darden Junior”), from in or about August 2013 to on or about February 11, 2014, NEWKIRK told a series of lies to lenders to induce the lenders to provide tens of millions of dollars in capital toward the purchase of Maxim. In order to mislead the lenders into believing that they would receive sufficient collateral for their loans, NEWKIRK falsely promised them that Calvin Darden (“Darden Senior”), the former Senior Vice President of U.S. Operations of UPS, and a member of the Board of Directors of Coca-Cola Enterprises, Target Corporation, and Cardinal Health, Inc., would pledge his personal stock holdings in the latter three companies as collateral for the loans. In addition to knowingly making this false promise, NEWKIRK concealed from lenders that, as NEWKIRK knew, the stock owned by Darden Senior was subject to restrictions, and could not be pledged as collateral for any loans. NEWKIRK further falsely promised at least six lenders that each would have a first and sole priority interest in the purported collateral when, as NEWKIRK well knew, only one lender could have any such interest.
NEWKIRK, who represented the Company in the attempted Maxim acquisition in his capacity as an attorney at Bryan Cave, engaged in the fraud in part because NEWKIRK secretly owned part of the Company’s parent company (the “Parent Company”), and would share in any of the Parent Company’s profits resulting from the acquisition. NEWKIRK hid his partial ownership of the Parent Company from Bryan Cave and others. NEWKIRK further lied to Bryan Cave about his relationship with Darden Senior, falsely claiming that Darden Senior had been NEWKIRK’s client for many years when, in truth and in fact, and as NEWKIRK well knew, NEWKIRK had never represented Darden Senior.
In the course of the fraud, NEWKIRK provided lenders with account statements that purported to show Darden Senior’s stock holdings. In truth, however, the account statements were fake documents, and Darden Senior was not providing any financial support for the purchase of Maxim. Also in the course of the fraud, NEWKIRK went to great lengths to hide from Darden Senior, and from Bryan Cave, the existence of a lawsuit filed by one lender in which that lender sought to obtain the collateral of Darden Senior that NEWKIRK had fraudulently pledged to the lender. NEWKIRK deliberately caused a default judgment to be entered against Darden Senior in that lawsuit, knowing that he had concealed the existence of the lawsuit from both Darden Senior and Bryan Cave.
Furthermore, after one of the lenders placed approximately $5.5 million in escrow at Bryan Cave, Darden Junior arranged for a fraudulent email to be sent to NEWKIRK that purported to have been authored by the lender. In response to that fraudulent email, and with knowledge that the email was in fact fraudulent, NEWKIRK released approximately $4.9 million of the lender’s money from the escrow account to fund the purchase of Maxim. Moreover, in an effort to close the deal, NEWKIRK also falsely represented to another individual that approximately $12 million, consisting of funds supposedly provided by, or secured by the personal assets of, Darden Senior, had been placed in escrow at Bryan Cave. In truth and in fact, no funds were ever held in escrow at Bryan Cave in connection with the purchase of Maxim, other than the $5.5 million placed in escrow by the lender described above, which was subsequently misappropriated by NEWKIRK. Lenders lost a total of $8 million in connection with the fraud.
NEWKIRK was found guilty of one count of wire fraud, and found not guilty of one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Sentencing is scheduled for April 14, 2016, before United States District Judge Jed S. Rakoff, who presided over the trial. NEWKIRK faces up to 20 years in prison on the wire fraud charge. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of NEWKIRK will be determined by the judge.
Mr. Bharara praised the investigative work of the United States Secret Service and the Federal Bureau of Investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Andrew C. Adams and Sarah E. Paul are in charge of the prosecution.
Maryland Man Charged for Alleged Support of the ISIL Terrorist OrganizationRead the Press Release
Baltimore, Maryland – Mohamed Elshinawy, 30, of Edgewood, Maryland, was arrested on Friday, December 11, 2015, on a federal criminal complaint charging him with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; obstruction of agency proceedings; and making false statements and falsifying or concealing material facts. Elshinawy is scheduled to have his initial appearance at 2:45 p.m. today before U.S. Magistrate Judge Beth P. Gesner of the District of Maryland in Baltimore.
The criminal complaint was announced by U.S. Attorney Rod J. Rosenstein of the District of Maryland; Assistant Attorney General for National Security John P. Carlin; and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
“This case demonstrates how terrorists exploit modern technology to inculcate sympathizers and build hidden networks, but federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt their evil schemes,” said U.S. Attorney Rosenstein. “The affidavit alleges that Mr. Elshinawy initially told the FBI that he was defrauding the terrorists, but further investigation showed that Mr. Elshinawy was supporting the terrorists and misleading the FBI.”
“According to the allegations in the complaint, Mohamed Elshinawy received money he believed was provided by ISIL in order to conduct an attack on U.S. soil,” said Assistant Attorney General Carlin. “When confronted by the FBI, he lied in order to conceal his support for ISIL and the steps he took to provide material support to the deadly foreign terrorist organization. He will now be held accountable for these crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue and disrupt those who seek to provide material support to ISIL.”
The affidavit filed in federal court alleges that in June 2015, the FBI became aware of an individual located in Egypt who was attempting to send money to the United States, possibly for nefarious purposes. The investigation revealed that on June 28, 2015, that individual wire transferred $1,000 to Elshinawy. The FBI interviewed Elshinawy on July 17, 2015. The affidavit alleges that Elshinawy first claimed that his mother had sent him the money, and then that the money was to purchase an iPhone for a friend. Later, he admitted that a childhood friend had contacted him a few months earlier to connect him, through social media, with an unidentified member of ISIL (referred to in the complaint as the “unidentified ISIL operative”). Elshinawy began communicating with the unidentified ISIL operative through a method of communication used by ISIL. The defendant also admitted that he understood the individual in Egypt who wire transferred the money on June 28, 2015, also to be an ISIL operative (referred to in the complaint as the “Egyptian ISIL operative”).
Elshinawy said that he had received a total of $4,000 in two payments –$1,000 through Western Union and $3,000 through PayPal – and that the ISIL operative instructed Elshinawy to use the monies for “operational purposes,” which Elshinawy understood to mean causing destruction or conducting a terrorist attack in the United States. Elshinawy stated that ISIL instructed him that if he ever came under surveillance by law enforcement, he should stop whatever activities he was doing in connection with executing an attack. Elshinawy claimed, however, that he never intended to carry out an attack and was only trying to get money from ISIL.
The affidavit further alleges that during a second interview with the FBI on July 20, 2015, Elshinawy stated emphatically that he received no other funds from ISIL other than the $4,000 he had previously disclosed. Later, however, Elshinawy said that he remembered receiving another payment of $1,200 from ISIL through Paypal, from the same unidentified ISIL operative, by order of a man in Syria. In this instance, Elshinawy explained that in order to receive the transfers from the unidentified ISIL operative, he engaged in a scheme by which he pretended to sell printers on eBay that would serve as a cover for the payments he received from ISIL.
A review of PayPal records indicates that Elshinawy allegedly concealed at least $3,500 of $7,700 that he received from ISIL operatives through his PayPal account between March and June 2015, specifically, $1,500 on March 23; $1,000 on April 16; $1,000 on May 1; $3,000 on May 14; and $1,200 on June 7. In total, Elshinawy allegedly received at least $8,700 from individuals he understood to be associated with ISIL.
According to the affidavit, Elshinawy used social media, multiple email accounts and “pay as you go” phones subscribed to him under various aliases to communicate with the individuals he understood to be associated with ISIL.
The social media communications between Elshinawy and his childhood friend were in Arabic, and many contained jihadist rhetoric found in ISIL- and other terrorist-related propaganda.
The investigation revealed that on Feb. 17, 2015, Elshinawy pledged his allegiance to ISIL and asked his childhood friend to deliver his message of loyalty. He stated that he was a soldier of the state, a common reference to ISIL, but temporarily away. Elshinawy also stated that his soul was over there with the jihadists and that every time he saw the news, he smiled. At the time of this conversation, ISIL recently had conducted a series of attacks and gained territory in Iraq. On Feb. 16, 2015, a video was publicly released showing the execution of 21 Egyptian nationals in Libya by ISIL extremists.
Also on Feb. 17, 2015, the childhood friend told Elshinawy to seek God’s help and not tell anyone his plans for a terrorist attack. Elshinawy agreed and acknowledged that it is a crime in the United States. He further declared his allegiance to committing jihad.
The investigation also revealed that on April 27, 2015, Elshinawy told his brother that he had pledged allegiance to ISIL and that he had received money from ISIL and expected to receive even more. In further communications with his brother in May 2015, Elshinawy stated his desire to die as a martyr for the Islamic State (ISIL), and in August 2015, he directed his brother to take steps to conceal their communications and any communications with the childhood friend, because Elshinawy believed his relationship with ISIL had been compromised.
Elshinawy’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. The maximum sentence of imprisonment for attempting to provide material support to a designated foreign terrorist organization is 15 years; for obstruction of agency proceedings is eight years; and for making material false statements is eight years.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christine Manuelian who is prosecuting the case, with the assistance John Gibbs of the National Security Division’s Counterterrorism Section.
Maryland Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Defendant Allegedly Received Money from Individuals Overseas to be used for “Operational Purposes” in the United States
When Confronted by the FBI the Defendant Allegedly Lied to the FBI and Concealed his Support for ISIL
Mohamed Elshinawy, 30, of Edgewood, Maryland, was arrested on Friday, Dec. 11, 2015, on a federal criminal complaint charging him with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; obstruction of agency proceedings; and making false statements and falsifying or concealing material facts. Elshinawy will have his initial appearance today at 2:45 p.m. EST before U.S. Magistrate Judge Beth P. Gesner of the District of Maryland in Baltimore.
The criminal complaint was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
“According to the allegations in the complaint, Mohamed Elshinawy received money he believed was provided by ISIL in order to conduct an attack on U.S. soil,” said Assistant Attorney General Carlin. “When confronted by the FBI, he lied in order to conceal his support for ISIL and the steps he took to provide material support to the deadly foreign terrorist organization. He will now be held accountable for these crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue and disrupt those who seek to provide material support to ISIL.”
“This case demonstrates how terrorists exploit modern technology to inculcate sympathizers and build hidden networks, but federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt their evil schemes,” said U.S. Attorney Rosenstein. “The affidavit alleges that Mr. Elshinawy initially told the FBI that he was defrauding the terrorists, but further investigation showed that Mr. Elshinawy was supporting the terrorists and misleading the FBI.”
The affidavit filed in federal court alleges that in June 2015, the FBI became aware of an individual located in Egypt who was attempting to send money to the United States, possibly for nefarious purposes. The investigation revealed that on June 28, 2015, that individual wire transferred $1,000 to Elshinawy. The FBI interviewed Elshinawy on July 17, 2015. The affidavit alleges that Elshinawy first claimed that his mother had sent him the money, and then that the money was to purchase an iPhone for a friend. Later, he admitted that a childhood friend had contacted him a few months earlier to connect him, through social media, with an unidentified member of ISIL (referred to in the complaint as the “unidentified ISIL operative”). Elshinawy began communicating with the unidentified ISIL operative through a method of communication used by ISIL. The defendant also admitted that he understood the individual in Egypt who wire transferred the money on June 28, 2015, also to be an ISIL operative (referred to in the complaint as the “Egyptian ISIL operative”).
Elshinawy said that he had received a total of $4,000 in two payments –$1,000 through Western Union and $3,000 through PayPal – and that the ISIL operative instructed Elshinawy to use the monies for “operational purposes,” which Elshinawy understood to mean causing destruction or conducting a terrorist attack in the United States. Elshinawy stated that ISIL instructed him that if he ever came under surveillance by law enforcement, he should stop whatever activities he was doing in connection with executing an attack. Elshinawy claimed, however, that he never intended to carry out an attack and was only trying to get money from ISIL.
The affidavit further alleges that during a second interview with the FBI on July 20, 2015, Elshinawy stated emphatically that he received no other funds from ISIL other than the $4,000 he had previously disclosed. Later, however, Elshinawy said that he remembered receiving another payment of $1,200 from ISIL through PayPal, from the same unidentified ISIL operative, by order of a man in Syria. In this instance, Elshinawy explained that in order to receive the transfers from the unidentified ISIL operative, he engaged in a scheme by which he pretended to sell printers on eBay that would serve as a cover for the payments he received from ISIL.
A review of PayPal records indicates that Elshinawy allegedly concealed at least $3,500 of $7,700 that he received from ISIL operatives through his PayPal account between March and June 2015, specifically, $1,500 on March 23; $1,000 on April 16; $1,000 on May 1; $3,000 on May 14; and $1,200 on June 7. In total, Elshinawy allegedly received at least $8,700 from individuals he understood to be associated with ISIL.
According to the affidavit, Elshinawy used social media, multiple email accounts and “pay as you go” phones subscribed to him under various aliases to communicate with the individuals he understood to be associated with ISIL.
The social media communications between Elshinawy and his childhood friend were in Arabic, and many contained jihadist rhetoric found in ISIL- and other terrorist-related propaganda.
The investigation revealed that on Feb. 17, 2015, Elshinawy pledged his allegiance to ISIL and asked his childhood friend to deliver his message of loyalty. He stated that he was a soldier of the state, a common reference to ISIL, but temporarily away. Elshinawy also stated that his soul was over there with the jihadists and that every time he saw the news, he smiled. At the time of this conversation, ISIL recently had conducted a series of attacks and gained territory in Iraq. On Feb. 16, 2015, a video was publicly released showing the execution of 21 Egyptian nationals in Libya by ISIL extremists.
Also on Feb. 17, 2015, the childhood friend told Elshinawy to seek God’s help and not tell anyone his plans for a terrorist attack. Elshinawy agreed and acknowledged that it is a crime in the United States. He further declared his allegiance to committing jihad.
The investigation also revealed that on April 27, 2015, Elshinawy told his brother that he had pledged allegiance to ISIL and that he had received money from ISIL and expected to receive even more. In further communications with his brother in May 2015, Elshinawy stated his desire to die as a martyr for the Islamic State (ISIL), and in August 2015, he directed his brother to take steps to conceal their communications and any communications with the childhood friend, because Elshinawy believed his relationship with ISIL had been compromised.
The maximum sentence of imprisonment for attempting to provide material support to a designated foreign terrorist organization is 15 years; for obstruction of agency proceedings is eight years; and for making material false statements is eight years. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Christine Manuelian of the District of Maryland, with the assistance of Trial Attorney John Gibbs of the National Security Division’s Counterterrorism Section.
Elshinawy Complaint
Man Arrested in Penn-North One Week After Baltimore Riots Sentenced to 42 Months in Prison for Federal Gun ChargeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Robert “Meech” Tucker, age 24, of Baltimore, today to 42 months in prison, followed by three years of supervised release, for illegal possession of a gun by a previously convicted felon.
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; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
“Mr. Tucker threw a loaded gun on the ground and it fired, then he pretended to be injured. His actions incited misguided bystanders who attacked innocent police officers,” said U.S. Attorney Rod J. Rosenstein. “This case shows the challenges that police officers sometimes face as they work to protect the community and save lives.”
According to court documents, on May 4, 2015, a citizen notified police officers that a man was armed with a handgun in the Penn-North section of Baltimore, near a pharmacy that was burned during street riots the previous week. Officers alerted the CitiWatch camera operators, and a camera operator located Tucker, who matched the description.
The camera operator confirmed that Tucker was displaying characteristics of an armed gunman. Officers then drove their marked patrol car into the area. When the patrol car stopped, Tucker ran. Tucker then removed a handgun from his waistband area and threw it to the ground, causing it to fire. Fortunately no one was hit by the bullet. Police arrested Tucker and recovered a .357 Magnum revolver handgun loaded with two live rounds and one spent cartridge casing.
Meanwhile, bystanders wrongly shouted that a police officer shot Tucker in the back, people yelled and threw bricks and bottles at police officers, and a television network mistakenly reported that the police had shot Tucker.
Tucker was transported to the hospital, but he was not injured.
Tucker also admitted that five weeks earlier, on March 29, 2015, he committed an assault in violation of state law. In that incident, CitiWatch cameras in the area of Penn-North recorded Tucker striking a man in the back of the head with his fist. The man fell to the ground and was injured. The man was taken to the hospital and treated for his injury. The camera operator continued to monitor Tucker until he was located by Baltimore Police officers and arrested.
Federal prosecutors have charged four other defendants for crimes committed during the Baltimore riot on April 27, 2015. Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, was charged with obstruction of firefighters during a civil disorder and for aiding and abetting arson. Donta Betts, age 19, of Baltimore, is charged with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. Darius Raymond Stewart, age 21, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 24, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew Hoff, a Baltimore Assistant State’s Attorney assigned to handle federal Exile cases, who prosecuted the case.
Keshena Man Sentenced for Assault on 6 Month Old ChildRead the Press Release
Acting United States Attorney Gregory J. Haanstad announced that Derrick M. Corn (32), Keshena, Menominee Indian Reservation, WI., was sentenced on December 9, 2015 by Chief Judge William C. Griesbach to 60 months imprisonment for the assault of a six-month old child resulting in substantial bodily injury to the child, in violation of Title 18, United States Code, Section 113(a)(7). Corn is the father of the child. Upon his release, Corn will be on federal supervised release for 3 years.
In pronouncing sentence, Judge Griesbach noted the serious injuries to the child including multiple skull fractures. He also rejected Corn’s claim that the injuries occurred when his child was submerged under water for a period of time while taking a bath. Corn claimed he was shaving at the time and was not paying attention to the child. Judge Griesbach referenced the complete lack of evidence supporting Corn’s claim and cited to the extensive medical reports disproving his claim.
The case was investigated by the Federal Bureau of Investigation and the Menominee Tribal Police Department and was prosecuted by Assistant U.S. Attorney Ben Whittemore and William Roach.
# # # # #
Insurance Agency Owner Convicted of Stealing More Than $1.7 Million in Fraud SchemeRead 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 a federal jury in Hartford today found EARL O’GARRO, JR., 32, formerly of Marlborough, guilty of defrauding a specialty lender, insurance carriers and the State of Connecticut. The trial before U.S. District Judge Alvin W. Thompson began on December 8 and, after deliberating for approximately one hour, the jury returned verdicts of guilty on all three counts.
“The defendant took advantage of friends and associates in the insurance industry to support a lifestyle he couldn’t afford,” said U.S. Attorney Daly. “I thank the FBI and our trial team for their expert investigation and prosecution of this matter, which led to a swift verdict of guilty.”
“Today, victims of fraud have been given some degree of closure by the jury’s decision,” said FBI Special Agent in Charge Ferrick. “The FBI and our law enforcement partners intend to continue to pursue these types of violations to the fullest extent of the law.”
According to the evidence at trial, O’GARRO was the President, Chief Executive Officer and an owner of Hartford-based Hybrid Insurance Agency, LLC (“Hybrid”), a wholesale insurance brokerage specializing in placing excess and surplus line insurance products.
Beginning in approximately April 2013, O’GARRO defrauded Capital Premium Financing, Inc., a specialty lender that provides premium financing on behalf of insured entities. O’GARRO falsely represented to Capital Premium Financing that an insurance carrier, AmTrust E&S Insurance Services, Inc. (“AmTrust”), had issued insurance policies for four companies, that these companies were using Capital Premium Financing’s services to finance their premium payments, and that Hybrid had brokered the contracts and was entitled to collect the premiums on behalf of AmTrust. In fact, O’GARRO knew that AmTrust had not issued policies for any of these four companies. Relying on O’GARRO’s misrepresentations, Capital Premium Financing subsequently released $849,282.55 in premium payments to Hybrid on the purported insurance policies. O’GARRO converted the funds to his own use.
In July 2013, as part of an effort to prolong the scheme, O’GARRO created an email address and Internet domain name similar to that of AmTrust in order to assume a false identity as an AmTrust underwriter. Posing as an AmTrust underwriter, O’GARRO sent an email to Capital Premium Financing to falsely verify the existence of the four policies.
Hybrid also served as the wholesale broker for certain insurance policies held by the City of Hartford. In July 2013, O’GARRO directed the city to transfer $868,244 in premiums to Hybrid. After the City of Hartford wired Hybrid the funds, O’GARRO intentionally withheld $669,997 in premium payments from the appropriate excess insurance carries, Starr Indemnity & Liability Company, Inc. and National Casualty Company. Instead, O’GARRO converted the money to his own use. In fact, approximately 17 minutes after receiving the funds, O’GARRO wired $300,000 to Capitol Premium Financing as partial repayment for the monies he had been caught stealing from them. O’GARRO then falsely advised the city that the premium payments had been remitted to the insurers.
The evidence at trial also established that, in approximately July 2013, O’GARRO, on behalf of Hybrid, submitted a false application to the State of Connecticut Department of Economic and Community Development (“DECD”) for a $500,000 loan. In his application, O’GARRO provided false information concerning his and Hybrid’s financial condition. Based in part on these false statements, DECD approved Hybrid’s loan application and mailed a $250,000 check to Hybrid. O’GARRO used a substantial portion of these loan funds to make a payment on a million dollar condominium he had purchased in the Dominican Republic and to pay tuition at his children’s private school.
The jury found O’GARRO guilty of two counts of wire fraud and one count of mail fraud. Each charge carries a maximum term of imprisonment of 20 years. Judge Thompson scheduled sentencing for March 7, 2016.
O’GARRO has been released on a $500,000 bond since his arrest on November 21, 2014. He will now be subject to electronic monitoring while awaiting sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Avi M. Perry and Michael J. Gustafson.
Indictment Charges Alleged Leader of Straw Purchasing SchemeRead the Press Release
PHILADELPHIA - Nakia Adams, 41, address unknown, was charged by indictment, unsealed today, with conspiracy, making false statements to a federal firearms licensee, possession of firearms by a convicted felon, and aiding and abetting, announced United States Attorney Zane David Memeger. The charges arise from Adams’ use of several individuals as “straw purchasers” to obtain firearms from federally licensed firearms dealers. Adams, as a previously convicted felon, is prohibited from purchasing firearms himself.
If convicted, the defendant faces a maximum possible statutory sentence of 90 years in prison, possible fines, a $1,200 special assessment, and three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives Reading Field Office and is being prosecuted by Assistant United States Attorney Eric Boden.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Huntington man pleads guilty to Federal gun chargeRead the Press Release
HUNTINGTON, W.Va. – A convicted felon from Huntington, West Virginia, pleaded guilty today to a federal gun charge, announced United States Attorney Booth Goodwin. Semaj Markes Leondre Figg, 24, entered a guilty plea in federal court in Huntington to being a felon in possession of a firearm.
On April 29, 2015, Figg was arrested by members of the Huntington Police Department for a parole violation. At the time of his arrest, officers found Figg to be in possession of a loaded CZ Model 52, 7.62 x 25 caliber pistol. Figg was prohibited from possessing any firearm under federal law because of a 2014 felony conviction in Cabell County Circuit Court for conspiracy to deliver cocaine.
Figg faces up to ten years in federal prison and a $250,000 fine when he is sentenced in federal court in Huntington on March 14, 2016.
This case was investigated by the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
The prosecution is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
-
Follow us on Twitter: SDWVNews
-
Hanford Man Pleads Guilty to Stealing over $100,000 from Lemoore Naval Air Station AutoportRead the Press Release
FRESNO, Calif. — Christopher Michael Whitacre, 50, of Hanford, pleaded guilty today to theft in a special maritime or territorial jurisdiction, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January 1, 2011, and July 31, 2013, Whitacre, who was a supervisor at an auto service center at the Naval Air Station in Lemoore, stole approximately $111,900 in cash from the center. Whitacre stole the cash incrementally by accepting money from customers who purchased gasoline at the gas pump but then entering a lower amount for the transaction and pocketing the difference. He changed the dates or amounts of gasoline delivered to the center to cover up the discrepancy between the actual amount of gasoline that was sold and the amount of gasoline purported to be sold through cash register transaction records.
This case is the product of an investigation by the Navy Criminal Investigation Service. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
Whitacre is scheduled to be sentenced by United States District Judge Dale A. Drozd on May 16, 2016. Whitacre faces a maximum statutory penalty of five years in prison and a $250,000 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.
Gwinn Felon, Kevin Leonard Houle, Sentenced to Prison for Possessing A FirearmRead the Press Release
MARQUETTE, MICHIGAN — Kevin Leonard Houle, 42, of Gwinn, Michigan, was sentenced to 84 months in prison, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. District Judge R. Allan Edgar also ordered Houle to serve three years of supervised release following his prison term.
On August 4, 2015, Houle pleaded guilty to being a felon in possession of a firearm. The charge arose from an investigation surrounding the discharge of a firearm during a domestic dispute on March 20, 2015. Officers arrived on the scene, whereupon Houle led them in a high speed car chase through a residential area. Houle then abandoned his car and fled on foot. He was found hiding in a neighbor’s residence. He admitted that he had taken a rifle and shot several holes in the windshield of his vehicle after arguing with his wife. Houle had previously been convicted of felony drug and robbery charges in New Hampshire.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Forsyth Township Police Department and the Michigan State Police investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
END
Greenville, Texas, Man Sentenced to 10 Years in Federal Prison for Attempting to Entice an Individual he Believed to be a 15-Year-Old Female to Engage in Sexual ActivityRead the Press Release
DALLAS — Michael Henry Shahan, 32, of Greenville, Texas, was sentenced today by U.S. District Judge David C. Godbey to 10 years in federal prison, following his guilty plea in September 2015 to one count of attempted enticement of a minor, announced John Parker, U.S. Attorney for the Northern District of Texas.
According to documents filed in the case, in November 2015, an officer with the Hopkins County Sheriff’s Office who was working online in an undercover capacity posing as a 15-year-old female encountered an individual who was later identified as Shahan. During their ensuing chats over a two-month period, Shahan sent the girl, whom he knew was 15-years-old, sexually explicit nude photographs of himself and insisted he wanted to meet her and engage in sexual activity with her. Their mid-January 2015 planned meeting was thwarted when Shahan’s wife did not stay home from work as expected and make available what was then the couple’s only car. The officer obtained an arrest warrant and Shahan was arrested soon thereafter. Shahan had images of child pornography on his cell phone as well as numerous chats about the contents of traded child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Hopkins County Sheriff Office investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
# # #
Grand Jury Returns Federal Indictment Charging Tremonton Man with Production and Possession of Child Pornography, Coercion and EnticementRead the Press Release
SALT LAKE CITY – A federal grand jury returned a three-count indictment Wednesday afternoon charging Jeremy Rose, age 38, of Tremonton, with production of child pornography, possession of child pornography, and coercion and enticement.
Rose was arrested Thursday morning and had an initial appearance late this afternoon before U.S. Magistrate Judge Evelyn Furse. The indictment was unsealed at the hearing. Rose was released on conditions of supervised release and will have electronic monitoring.
Rose, a former Tremonton police officer, was prosecuted in state court following an investigation by the Utah Internet Crimes Against Children task force. He was sentenced to 270 days in jail and 36 months of probation in November 2014. He was also ordered to register as a sex offender and complete 60 hours of community service.
Federal prosecutors sought a Department of Justice waiver which allowed them to pursue federal charges against Rose for the conduct. Because the prior prosecution left substantial federal interests unvindicated, Utah prosecutors received authorization to prosecute Rose.
“In consultation with the Department of Justice and after careful deliberation, we believe that a federal prosecution is warranted given the facts of this case,” John W. Huber, U.S. Attorney for Utah, said today. “There are areas of criminal law where we share concurrent jurisdiction with state prosecutors. Production and possession of child pornography is one of those areas. This is not a decision we made lightly. However, given the serious nature of the alleged crime, we presented the case to a grand jury this week and will proceed with a federal prosecution of Mr. Rose,” Huber said.
The first count of the indictment alleges that between the spring of 2012 and June 2013, the defendant knowingly induced, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct. The second count of the indictment alleges possession of child pornography. The final count of the indictment alleges that Rose induced, enticed, and coerced an individual, who had not reached the age of 18, to engage in sexual activity for which a person can be charged with a criminal offense. The FBI has joined the investigation for the federal case.
The potential maximum penalty for production of child pornography is 30 years in prison with a minimum mandatory 15-year sentence. Possession of child pornography carries a maximum potential penalty of 10 years. The enticement and coercion count has a 30-year maximum sentence with a 10-year minimum mandatory sentence. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Grand Forks Man Sentenced for Possession and Receipt of Child PornographyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Dec. 14, 2015, Alan Douglas Eslinger, 44, Grand Forks, North Dakota, was sentenced before U. S. District Judge Ralph R. Erickson to serve 16 years in prison for one count of Receipt of Child Pornography and three counts of Possession of Child Pornography. Judge Erickson also sentenced Eslinger to serve a lifetime of supervised release and pay a $400 special assessment to the Crime Victims Fund.
This case came to the attention of law enforcement after an agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force (ICAC), discovered a computer geographically located in ND that was sharing child pornography in a peer-to-peer (P2P) network. Homeland Security Investigators traced the IP address to an industrial park located in northeast Grand Forks, ND. Working with the network administrator of the industrial park, BCI agents were able to pinpoint the specific location in the industrial park where Eslinger was operating his computer. Based upon this evidence, BCI Special Agents obtained and executed a search warrant for a garage leased by Eslinger in the industrial park. Seized as a result of the search warrant were various electronic media which contained more than 12,000 images and 900 videos of child pornography.
"Child pornography exists as a permanent record of the sexual exploitation of a child, and this victimization continues every time that image is transmitted, downloaded, shared or viewed," said William Lowder, acting special agent in charge of HSI St. Paul. "HSI special agents and our law enforcement partners take special pride in seeking justice on behalf of those children who have been sexually exploited and victimized.”
This was Eslinger’s second conviction for possessing child pornography. In 2007, Eslinger was dishonorably discharged from the Army after he was court martialed for possessing child pornography in 2001.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, the Grand Forks Police Department, and the Grand Forks Sheriff’s Department.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Garrett County Attorney Sentenced to Prison for Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles sentenced Angela M. Blythe, age 52, of Oakland, Maryland, today to a year and a day in prison, followed by three years of supervised release, for conspiring to commit bank fraud, bank fraud and two counts of making a false statement to a bank. Judge Quarles also entered an order requiring Blythe to forfeit $696,517 and pay restitution of $948,203.25. Blythe was convicted by a federal jury on October 9, 2015, after a nine day trial
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
Blythe was an attorney licensed to practice in Maryland and West Virginia, with an office in Oakland, Maryland. She was a settlement attorney in real estate transactions.
According to evidence presented at the nine day trial, from 2000 to 2005, Blythe conducted real estate settlements on at least seven occasions involving a co-conspirator whose identity she concealed from the financial institution loaning the funds for the transaction. Blythe filed mortgages on behalf of the co-conspirator, frequently at the last minute, which enabled her to pay the sales proceeds from the transaction to the co-conspirator and not to the named seller. Blythe recorded mortgages and deeds in Garrett County, Maryland and Preston County, West Virginia, which concealed her co-conspirator’s participation in the transactions and receipt of funds.
For example, in April 2004, Blythe transferred ownership of a restaurant/bed and breakfast which bordered on Deep Creek Lake for $0 consideration from her co-conspirator to a fictitious church trustee and church. Louis Strosnider subsequently applied for a mortgage loan of $2,250,000 to purchase the property. Blythe prepared a fraudulent settlement statement which stated that the bank was lending $1,725,000; the remainder of the purchase price was made up of a fictitious $750,000 down payment and $341,379.94 which Blythe was to collect from Strosnider at the settlement. According to the fraudulent settlement statement, Blythe was to pay a purported mortgage company $1,972,427.82 from the proceeds. At the closing in October 2004, Blythe failed to collect Strosnider’s funds as described in the settlement statement. In addition, she distributed the proceeds of the sale not to the fictitious trustee and church, but to her co-conspirator.
In a related case, Louis W. Strosnider, III, age 49, of Oakland, and Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 51, of Accident, Maryland, were previously indicted on conspiracy and bank fraud charges. Strosnider previously pleaded guilty to his participation in the conspiracy and is awaiting sentencing. VanSickle has pleaded not guilty. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Philip A. Selden, who are prosecuting the case.
Fresno Woman Pleads Guilty to Conspiring to Structure More Than $100,000 in Proceeds of Drug TraffickingRead the Press Release
FRESNO, Calif. — Aseel Al-Saber, 24, of Fresno, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.
According to court documents, Al-Saber and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of marijuana that had been shipped from Fresno and other cities in California and sold in Florida and other states. Al-Saber’s bank account was used to deposit and withdraw more than $72,000 of marijuana trafficking proceeds in amounts of $10,000 or less to prevent Currency Transaction Reports from being filed by the banks, which are prepared for any transaction over $10,000 in cash. In addition, Al-Saber recruited two other individuals to have more than $30,000 in proceeds of marijuana trafficking funneled through their respective bank accounts. In total, members of the conspiracy structured transactions involving more than $7.5 million in drug trafficking proceeds.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.
On February 11, 2015, Chad Riffle, 23, of Citrus Springs, Florida, was sentenced to five years in prison after pleading guilty to the structuring conspiracy. Jeremy Michael Murphy, 26, of Monroe, Ohio; Peter Capodieci, 24, of Crystal River, Florida; Miguel Gonzalez, 32, of Fresno; and Bree Benson, 21, of Citrus Springs, Florida, have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing.
Charges remain pending against Brandon Michael Thomas, 25, of Fresno, and. Ashley Starling Thomas, 28, of Lake Charles, Louisiana. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Al-Saber is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 28, 2016 at 8:30 a.m. The maximum statutory penalty for conspiracy to structure is five years in prison and a $250,000 fine. The actual sentences, 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.
Franklin Woman Sentenced to Two Years Probation for Social Security TheftRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Barbara Phillips, 66, of Franklin, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years of probation and fined $3,000 for theft of public money. She was also ordered to pay $31,496.37 in restitution to the Social Security Administration.
According to court records, from about August 2011 until December of 2013, Phillips withdrew social security funds being deposited in her deceased mother’s checking account. In all, Phillip’s stole over $31,000 by drafting checks to herself from the decedent’s account.
The investigation was conducted by the Social Security Administration Office of the Inspector General.
Fourth Defendant Pleads Guilty to Multi-Million Dollar Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a fourth defendant pleaded guilty in federal court today to his role in an elaborate fraud scheme in which conspirators impersonated representatives of Kansas City-based Cerner Corporation to entice dozens of physicians to invest more than $6 million, to sell an MRI to a Dallas area hospital for more than $1 million and to influence the outcome of several court proceedings.
David Hernon, 54, of Fishers, Ind. (formerly of Richardson, Texas), waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges him with participating in a conspiracy to commit wire fraud from Aug. 25, 2008, to Feb. 19, 2015.
Hernon is the fourth defendant to plead guilty. David Tayce, 66, of Lucas, Texas, and Richard Bryant, 40, and his wife, Christina Bryant, 40, both of Sachse, Texas, have also pleaded guilty to their roles in the conspiracy.
Co-conspirators created dozens of companies which were designed to impersonate existing credible industry leaders. For each company, co-conspirators created a meticulous infrastructure that became the foundation for their fraud. For example, co-conspirators registered an Internet domain similar to other existing company domains in order to make e-mail accounts appear legitimate, leased virtual office space in the city of the existing company, established telephone numbers in the area code of the existing company and impersonated actual people who worked for the real companies. Co-conspirators then used these fake “employee” identities as well as the identities of fictional employees to communicate with investors, conduct business transactions, and manipulate court proceedings. They provided fabricated documents, agreements, quotes, and invoices that purported to be from the fake and fictional employees.
One of the companies that the co-conspirators impersonated was Cerner Corporation, which is a global supplier of health care information technology solutions, services, devices, and hardware. Cerner, which has more than 14,000 employees globally, is headquartered at 2800 Rockcreek Parkway, North Kansas City, Mo.
Co-conspirators impersonated Cerner to obtain investments, conduct business transactions and manipulate court proceedings. For example:
-
Co-conspirators impersonated Cerner in the fraudulent sale of a purported newly developed MRI system to Dallas Medical Center, and then conspired to cover it up by providing false testimony during the litigation of a subsequent lawsuit. Co-conspirators convinced employees of Dallas Medical Center and Prime Health Care (which acquired the hospital during the course of the fraud scheme) that they were working with Cerner. As a result, Dallas Medical Center transmitted two wire payments to the co-conspirators’ bank account totaling $1,061,550.
-
Co-conspirators solicited investments from more than 50 physicians totaling over $6 million, from February 2012 to December 2013, based upon false representations of commitments of other customers and investors – including Cerner – along with false financial statements and projections. Co-conspirators showed MRI images that were altered to make the images appear to have been created by an “iHeart” machine when they were not. Co-conspirators showed physicians demonstrations of a Lux Imaging Systems MRI, which was represented to be brand new technology manufactured by Lux Imaging Systems. In reality, it was actually an MRI system put together with used components, which co-conspirators disguised by removing and concealing its original labels, and concealing that Lux Imaging Systems was an entity created and controlled by the co-conspirators.
-
Co-conspirators used this fraudulent infrastructure to manipulate the filing and settlement of the involuntary bankruptcy of CMI Holding Company, Inc., in the Northern District of Texas. Co-conspirators impersonated bondholders in filing the bankruptcy, and then continued to impersonate them throughout the negotiation of the settlement of the bankruptcy. Incredibly, the co-conspirators also impersonated an investor, which enabled them to participate in settlement discussions from the other side of the litigation as well. As part of this scheme, they used fabricated documents and communications purporting to be from Cerner to obtain a larger settlement. Co-conspirators also created an entity to receive the funds of the settlement in place of the bondholders, and later conspired to cover it up by providing false testimony in another case.
-
Co-conspirators used this fraudulent infrastructure to manipulate the trial of LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., in the Eastern District of Texas, by providing false testimony during the trial about Cerner and causing the admission of fabricated evidence purporting to be documents and agreements with Cerner in the trial.
Co-conspirators used this elaborate infrastructure of business entities, Web site domains, phone numbers, addresses, bank accounts and identities as a shield to prevent others from detecting their fraud, all while the co-conspirators continued to use this scheme repeatedly over several years to mislead new investors, new business partners and new courts.
Under federal statutes, Hernon, Tayce and the Bryants are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI.
-
Four Uvalde Texas Syndicate Members Sentenced to Life in Federal PrisonRead the Press Release
In Del Rio, a federal judge sentenced 29 Uvalde/Hondo-area Texas Syndicate (TS) members over the past two weeks to federal prison, including four defendants to life imprisonment, for various racketeering and drug trafficking offenses committed in Uvalde, San Antonio and the surrounding areas announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
United States District Judge Alia Moses sentenced TS members and Uvalde residents George “Curious” Sanchez, age 40; Raul “Fatboy” Rodriquez, age 42; Mike “Big Mike” Cassiano, age 39; and, Cristobal “Little Cris” Velasquez, age 37, to life in federal prison for conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute.
On April 2, 2015, jurors in Del Rio convicted Sanchez of conspiracy to violate the RICO statute. Evidence presented during his trial revealed that Sanchez, along with fourteen other TS members and associates, conspired since 2002 to commit three murders and distribute more than five kilograms of cocaine, 100 kilograms of marijuana and three ounces of methamphetamine. Jurors also found Sanchez guilty of conspiracy to commit murder in aid of racketeering and murder in aid of racketeering for the murder of Rogelio Mata on October 13, 2002, in Uvalde. Mr. Mata was murdered for his failure to follow TS rules.
On July 1, 2013, in a separate jury trial in Del Rio, Sanchez’s co-defendants Raul Rodriquez, Mike Cassiano and Cristobal Velasquez were convicted of conspiracy to violate the RICO statute. Rodriquez also was convicted of the substantive charge of violent crime in aid of racketeering for his role in the murder of Rogelio Mata. Velasquez was found guilty of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005 in Uvalde. Cassiano also was found guilty of two counts of conspiracy to commit violent crime in aid of racketeering for his role in the murder of Jose Guadalupe de la Garza and the November 9, 2009, murder of Jesse James Polanco in Uvalde. Judge Moses sentenced the remaining ten defendants, all of whom pleaded guilty prior to jury selection to conspiracy to violate the RICO statute, to prison terms ranging from five years to life. A 15th defendant, Inez Mata, pleaded guilty to the RICO conspiracy charge prior to jury selection. He died of natural causes in Uvalde in March 2015 while awaiting sentencing in this case.
In addition to the RICO defendants, 15 other TS members and associates were sentenced to federal prison for their roles in a drug trafficking enterprise. Eli Torres, age 39, of Uvalde, and Alfredo Tapia, III (aka “Naco”), age 44, of Hondo, were sentenced to 300 months and 240 months imprisonment, respectively, after a jury convicted them of conspiracy to possess with intent to distribute cocaine.
Jurors found that Torres participated in this drug distribution ring as a member of the TS prison gang using the gang’s drug distribution connections to aid him in obtaining cocaine to sell on the streets of Uvalde from August 1, 2009, until September 28, 2011. Torres was also found guilty of possession with the intent to distribute 500 grams or more of cocaine within 1,000 feet of the Sacred Heart Parish School in Uvalde.
Jurors also found Tapia guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana during that same time period. Drug transactions were conducted at Tapia’s home and on one occasion a person was held at gun point in Tapia’s backyard until that person paid his drug debt. Tapia was associated with members of the Texas Syndicate prison gang and facilitated their distribution of cocaine and marijuana.
The remaining 13 defendants, including former Bandera County Sheriff’s Deputy Thomas Cuellar, pleaded guilty prior to trial to conspiring to distribute controlled substances in the Uvalde and Hondo areas. In addition to the narcotics charges, Cuellar also pleaded guilty to unlawfully accessing a police department computer in order to obtain law enforcement information regarding the co-conspirators. Judge Moses sentenced Cuellar to 40 months incarceration while sentencing the others to federal prison terms ranging from 48 months to 151 months.
According to testimony at trial, the Texas Syndicate is a violent prison gang that has spread its influence into Texas cities and towns. Members of the Texas Syndicate are bound by a set of rules that ensure loyalty and participation in the enterprise’s criminal activities and are subject to strict and harsh discipline, including death, for violating the rules. The rules require that a member continue his participation in the organization even after his release from prison. Membership is for life and the gang comes first above all else, to include family.
The case resulted from a joint investigation by the Federal Bureau of Investigation with the Texas Department of Public Safety--Criminal Investigations Division, San Antonio Police Department, Medina County Sheriff’s Office and the Bandera County Sheriff’s Office. Also assisting in the investigation was the 38th Judicial District Adult Probation Gang Unit, Texas Department of Criminal Justice and the U.S. Bureau of Prisons. The U.S. Marshals Service, U.S. Immigration and Customs Enforcement-Customs and Border Protection and the Uvalde County Sheriff’s Department assisted in making the arrests. Assistant United States Attorneys Patrick Burke, Ralph Paradiso, Erica Giese and Matthew Watters handled this matter on behalf of the Government.
Former Stockbroker Pleads Guilty to Fraud and Tax EvasionRead the Press Release
BOSTON – A previously convicted former stockbroker pleaded today in U.S. District Court in Springfield in connection with an investment scheme which defrauded victims of more than $600,000.
Jeffrey Eldred Gallagher, 72, of Bradenton Beach, Fla., pleaded guilty to one count of wire fraud, three counts of engaging in an illegal monetary transaction and two counts of tax evasion. As alleged in the Information, in 1989, Gallagher was convicted in an earlier federal case of one count of mail fraud and three counts of interstate transportation of stolen property in connection with illegal options trading while he was a stockbroker at Paine Webber, Inc. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 29, 2016.
From at least 2008 through early 2012, Gallagher persuaded friends and associates to pay him money to invest on their behalf, and made promises that the investments would yield guaranteed returns of 10 to 15 percent. Gallagher then commingled investor funds with his own personal funds, and paid some investors with monies given to him by other investors. When investors asked Gallagher for the return of their investments, he provided numerous false explanations concerning his attempts to repay them, such as by falsely claiming that his mother, who is still alive, had died on several different dates. In a similar effort to stall for time, Gallagher wrote investors more than 40 bad checks totaling $1,783,375. In sum, 23 investors lost a total of approximately $617,475.
As part of the scheme, in 2009 and 2010, Gallagher used approximately $249,703 of investor monies for his personal benefit, but did not report any of this income on his federal income tax returns for those years.
The charges of wire fraud and engaging in an illegal monetary transaction each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of tax evasion provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.