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Monday 14 December 2015
Former Prison Guard Admits Smuggling Contraband into Philadelphia PrisonRead the Press Release
PHILADELPHIA – Joseph Romano, 31, previously employed at The Philadelphia Industrial Correctional Center (“PICC”) and the Riverside Correctional Facility, pleaded guilty today to attempted extortion which interfered with interstate commerce and two counts of attempted distribution of controlled substances. Romano agreed to deliver OxyContin pills to a prisoner in exchange for $1,000.
To obtain the contraband and payment, Romano arranged a meeting with the inmate’s purported associate at locations in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Romano, and Romano subsequently smuggled the contraband past prison security and delivered it to an inmate.
U.S. District Court Judge Paul S. Diamond remanded the defendant into federal custody and scheduled a sentencing hearing for March 14, 2016. Romano faces a statutory maximum sentence of 40 years in prison, possible fines, supervised release, and a $300 special assessment.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
Former Newport News School District Maintenance Worker Sentenced for Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Timothy Paul Morgan, 51, of Newport News, was sentenced today to 75 months in prison and five years of supervised release for receipt of child pornography.
Morgan pleaded guilty on Aug. 17, 2015. According to court documents, Morgan was identified by law enforcement investigating the trading of child pornography over peer-to-peer networks.
Beginning in August 2014, law enforcement download 13 complete files of suspected child pornography from an IP address registered to Morgan. A search warrant was executed at Morgan’s residence on Jan. 22, 2015, and his computer and external hard drive were recovered. Morgan admitted he had only one computer, he was the only person with access to it, and that he had downloaded child pornography using a peer-to-peer file sharing program found on the computer. A forensic exam of the computer and external hard drive revealed a total of 118 images and 55 videos depicting child pornography. The files dated back to 2004 and included images of young female minors engaging in sexual acts with an adult male.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr17.
Former Marshall running back sentenced in Federal court for cyberstalkingRead the Press Release
HUNTINGTON, W.Va. – A 23-year old former Marshall University running back from Hollywood, Florida, was sentenced today in federal court in Huntington, West Virginia, to two years in federal prison, announced United States Attorney Booth Goodwin. Kevin LaShawn Grooms, Jr., previously pleaded guilty in September of 2015 to cyberstalking. After Grooms is released from prison, he will be on supervised release for three years.
Grooms admitted to using a cell phone to send threatening messages to his ex-girlfriend beginning on March 24, 2015, and continuing into the early hours of the next day. Grooms sent the threatening messages using Instagram and text. Grooms further admitted that his conduct placed his ex-girlfriend in reasonable fear of death or serious bodily injury, and caused her to suffer substantial emotional distress. An investigation conducted by the Federal of Bureau of Investigation revealed that Grooms sent 158 messages to his ex-girlfriend within 8 hours of being released from the Western Regional Jail on March 24, 2015. Grooms was under a Domestic Violence Protection Order at the time he sent the messages. The messages sent by Grooms consisted of photographs and attached messages that mocked the strength of domestic restraining orders and repeatedly threatened his ex-girlfriend.
Grooms met his ex-girlfriend in September of 2012, when they were both enrolled at Marshall University. Grooms admitted to engaging in a pattern of activity that included stalking, threatening the use of a deadly weapon, and harassing and assaulting his ex-girlfriend throughout their relationship.
U.S. Attorney Booth Goodwin stated, “Those who use modern technology to stalk, threaten, and harass need to understand the seriousness of the crime. We will continue to investigate and prosecute these offenses. We will not tolerate such dangerous intimidation.”
The Federal Bureau of Investigation and the Huntington Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
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Former Glen Burnie Man Pleads Guilty to a Robbery Conspiracy and to the August 2014 Robbery of an Exxon Gas StationRead the Press Release
Baltimore, Maryland - Robin Tyrone Smith, age 27, formerly of Glen Burnie, Maryland, pleaded guilty today to a robbery conspiracy and to the armed robbery of an Exxon Station convenience store on August 7, 2014.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, Smith conspired with others to rob the Exxon Station convenience store located at 7898 Ridge Road in Hanover, Maryland on August 7, 2014. Specifically, on August 7, 2014, Smith, who was captured on video surveillance, entered the Exxon armed with a gun and shot the store clerk during the robbery. The store clerk died at the scene.
According to the plea agreement, the evidence would show that on the day before the Exxon robbery, Smith burglarized an apartment near his residence at the time. Items taken during the burglary included a .45 caliber Springfield Armory XD 45 firearm, .45 caliber hollow point ammunition, an X-box gaming system and games for the system. The stolen gun was used by Smith in the robbery. Also on August 6, 2014, Smith sold some of the stolen X-box games at a store located in the Arundel Mills Mall. Smith provided his Maryland State Identification card at the store and witnesses have identified Smith as the person who sold the stolen games on that date. Surveillance video from the store shows Smith wearing the same clothing and shoes as he wore during the Exxon robbery.
Clothing and other evidence connecting Smith to the robbery and murder was also seized as a result of the execution of several search warrants during the investigation.
Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to 40 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 1, 2016. Smith remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell and Matthew C. Sullivan, who are prosecuting the case.
Former Basketball Star Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Arthur Long, 42, of Rochester, NY, who was convicted after a jury trial of possession with intent to distribute methylone (Ecstasy) and marijuana, using a premises for drug trafficking and possession of a firearm in furtherance of drug trafficking crimes, was sentenced to 81 months in prison by Chief U.S. District Judge Frank P. Geraci.Assistant U.S. Attorneys Jennifer M. Noto and Robert A. Marangola, who handled the prosecution of the case, stated that in July 2013, the Rochester Police Department conducted an investigation that culminated in the execution of search warrants at the defendant’s home on Chi Mar Drive in Chili, NY. Officers also searched Long’s vehicle, a 1977 Cadillac Eldorado. During the execution of the warrants, investigators recovered ecstasy tablets and capsules containing Methylone, marijuana, an AK-47 rifle and a stolen .45 cal handgun, along with packaging materials.
The sentencing is the culmination of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Federal Detainee Sentenced for Importing “Molly” and then Smuggling Designer Drug into Essex Correctional FacilityRead the Press Release
Boston – A federal detainee being held at the Essex County Correctional Facility was sentenced today in connection with importing several kilograms of methylone, also known as “molly,” from China and distributing it in Massachusetts. He also admitted to smuggling a small quantity of the designer drug alpha-PVP, also known as “flakka,” into the Essex County Correctional Facility.
Harold Bates, 33, of Rockland, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 100 months in prison and three years of supervised release. In September 2015, Bates pleaded guilty to one count each of conspiracy to import methylone, importation of methylone, possession with intent to distribute methylone, and possession of a controlled substance by an inmate.
In October 2013, Bates began ordering substantial quantities of methylone over the Internet from his supplier based in China. Bates and the supplier discussed methods of concealing the drugs to avoid detection. When the methylone packages were shipped to Bates, the Chinese supplier included documents that falsely described the packages as containing samples of household items such as cosmetics with a value of $10 to $20 when, in fact, the drugs were worth considerably more.
Federal agents discovered Bates’s scheme and, in December 2013, obtained search warrants for two international packages. Both packages contained half a kilogram of methylone, which is a synthetic cathinone or “designer drug.”
In March 2014, Bates was arrested and charged with importing and distributing methylone. He was ordered detained and sent to the Essex County Correctional Facility. Shortly after Bates’s arrival, law enforcement officers learned that Bates had smuggled 4.70 grams of alpha-PVP, another synthetic cathinone (also known as “flakka”), into the facility by inserting the drugs into his rectum.
United States Attorney Carmen M. Ortiz; James V. Buthorn, Inspector in Charge of the U.S. Postal Inspection Service; Plymouth County District Attorney Timothy J. Cruz; Rockland Police Chief John R. Llewellyn; and Essex County Sheriff Frank G. Cousins, Jr., made the announcement today. The case is being prosecuted by Assistant U.S. Attorney James E. Arnold of Ortiz’s Narcotics and Money Laundering Unit.
Eustis Man Sentenced to More Than 37 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II has sentenced William Henry Keehn, II (52, Eustis) to 37 years and 6 months in federal prison for sexually exploiting children by producing and receiving child pornography. The Court also ordered him to pay restitution in the amount of $2,020 to the victims. Keehn pleaded guilty on June 30, 2015.
According to court documents, beginning as early as 2005, Keehn hid video cameras in the bathrooms of his former residence in order to obtain naked images of four minors in his custody. In 2014, Keehn sexually assaulted another minor in his custody and recorded that abuse using his computer. Keehn also received and collected hundreds of images depicting the sexual abuse and exploitation of minors from at least 2008 until the day before his arrest, on February 17, 2015.
“The sentencing in this case reflects the dedication and teamwork between FDLE’s Cyber Crimes Task Force and HSI,” said Danny Banks, special agent in charge of FDLE’s Orlando Regional Operations Center. “It is so important to ensure that individuals prosecuted for child exploitation and abuse are brought to justice, our job is to make sure that happens.”
"As this sentence makes clear, those who abuse our children face serious consequences," said Susan L. McCormick, special agent in charge of HSI Tampa. "The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. That is why we owe it to all children affected by these cases to work tirelessly to seek answers, and ultimately – justice."
This case was investigated by the Florida Department of Law Enforcement Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Karen L. Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dominican Man Pleads Guilty to Identity TheftRead the Press Release
BOSTON – Daniel Araujo Guerrero, 36, of the Dominican Republic, pleaded guilty today in U.S. District Court in Boston to fraudulently using the identity of an American citizen. U.S. District Judge Denise J. Casper scheduled sentencing for Jan. 5, 2016.
In July 2014, Guerrero, who resided in Lawrence, went to the Massachusetts Registry of Motor Vehicles and submitted an application for a license using a name and Social Security number belonging to an individual from Puerto Rico.
The charge of identity theft provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated by the Homeland Security Investigations Document and Benefit Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney David G. Tobin and Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Departments of Justice and Homeland Security Announce Joint Guidance to Employers on Internal Form I-9 AuditsRead the Press Release
The Department of Justice’s Civil Rights Division and the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE) announced today the issuance of a joint Guidance for Employers Conducting Internal Employment Eligibility Verification Form I-9 Audits.
Under the Immigration and Nationality Act (INA), employers are required to verify the work-authorization of their employees using the Form I-9 and are prohibited from knowingly hiring unauthorized workers. Employers seeking to ensure their Form I-9 practices comply with federal law are increasingly conducting internal audits of their Forms I-9. To ensure that these audits are conducted properly and do not discriminate against employees, ICE and OSC have collaborated to issue formal guidance on the topic.
“Employers have a responsibility to ensure their Form I-9 practices are in compliance with the Immigration and Nationality Act,” said Director Sarah Saldaña of ICE. “If used properly, audits can be an effective tool to achieve this end.”
“Today’s guidance provides critical information for employers to ensure that their internal audits of I-9 forms are conducted fairly and accurately, without discrimination or retaliation against their employees,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Without clear and effective guidelines, internal audits can create barriers to employment for work-authorized individuals.”
The joint guidance was developed by the two agencies with significant input from the Department of Homeland Security’s Office of Civil Rights and Civil Liberties, the U.S. Citizenship and Immigration Services, the Department of Labor, the National Labor Relations Board, the Equal Employment Opportunity Commission and stakeholders around the country.
This guidance is part of the six-month action plan of the Interagency Working Group for the Consistent Enforcement of Federal Labor, Employment and Immigration Laws (interagency working group). The interagency working group’s goals are to enhance coordination in those cases where federal responsibilities to enforce labor, employment and immigration laws may overlap; to ensure that workers who cooperate with labor and employment enforcement may continue to do so without fear of retaliation; to ensure that unscrupulous parties do not attempt to misuse immigration enforcement or labor laws to thwart or manipulate worker protections or labor and immigration enforcement; and to ensure the effective enforcement of these laws.
Among other things, the guidance provides employers with information regarding the scope and purpose of audits; considerations before conducting internal audits; details regarding how to correct errors, omissions or other deficiencies found on Forms I-9 and how to cure deficiencies related to E-Verify queries; and guidance regarding the anti-discrimination mandate. The joint guidance can be found on DHS’s website https://www.ice.gov/sites/default/files/documents/Document/2015/i9-guidance.pdf and on the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) website /media/807576/dl?inline.
ICE is responsible for enforcing the employer sanctions provision of the INA, and OSC enforces the anti-discrimination provision of the statute. For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc.
Colombian Alien Smuggler Sentenced to 11 MonthsRead the Press Release
ALBANY, NEW YORK – Daniel Humberto Pulido-Mojica, age 30, a citizen of Colombia, was sentenced on Friday to serve 11 months in prison for alien smuggling, announced United States Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.
In August, Pulido-Mojica pled guilty before United States District Court Judge David N. Hurd to transporting aliens unlawfully present in the United States. Judge Hurd also sentenced Pulido-Mojica to a two-year term of supervised release, to begin after his release from jail.
Pulido-Mojica, a lawful permanent resident of the United States living in Corona, New York, was prosecuted after he was encountered by Border Patrol just south of the international border between the United States and Canada near Champlain, New York. He was driving a van and transporting five illegal aliens. Pulido-Mojica had pulled up to the border shortly after midnight on June 20, 2015 and picked up the five aliens who had just illegally crossed the border from Canada on foot. Pulido-Mojica intended to drive the aliens to New Jersey, but he was stopped and arrested, together with his passengers.
The smuggled aliens, Brianth Steven Pineda Vallejo, age 23, from Colombia, Jacqueline Roberta Costa, age 39, of Brazil, Rafael Da Conceicao Santos, age 25, of Brazil, Miguel Eduardo Jara Elgueta, age 26, of Chile and Vipan Saini, age 38, of India, were also prosecuted. All but Costa were convicted of the misdemeanor offense of entry without inspection. Costa was convicted of the felony offense of re-entry of a removed alien.
This case was investigated by the U.S. Border Patrol and prosecuted by Edward P. Grogan.
Chicago Couple Sentenced for Multi-Million Dollar State Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A Chicago couple convicted nearly one year ago of taking millions of dollars in state grant funds for their personal benefit and use was sentenced today. U.S. District Judge Richard Mills ordered Leon Dingle, Jr., 78, to serve six years in the federal Bureau of Prisons, to be followed by three years of supervised release. Leon Dingle was also ordered to pay restitution in the amount of $2,900,000 to the Illinois Department of Public Health. Leon Dingle’s wife, Karin, 76, was sentenced to three years in federal prison and ordered to pay $2,100,000 in restitution jointly and severally with her husband. Both were ordered to report to the Bureau of Prisons within 90 days to begin serving their respective sentences.
Judge Mills ordered that $1,093,380 from the sale of various assets belonging to the Dingles, currently in the custody of the U.S. Clerk of the Court, be applied toward payment of the restitution ordered.
Nearly one year ago, on Dec. 17, 2014, a jury convicted Leon and Karin Dingle following a weeks-long trial. Evidence presented by the government demonstrated that the Dingles used non-profit organizations as straw grantees to fraudulently solicit and obtain more than $11 million in grant funds awarded by the Illinois Department of Public Health. The majority of the grant funds were non-competitively awarded and paid up-front, for programs related to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness.
During the time of the fraud scheme, from 2004 to June 2010, the Dingles owned and operated the for-profit corporation known as Advance Health, Social and Educational Associates, Inc., (AHSEA). Leon Dingle served as the president, CEO, treasurer, and sole shareholder of AHSEA; Karin Dingle served as vice-president and secretary.
Cheko’s Crew/7th Street Gang Members Plead Guilty to Rico, Admit Roles in Two MurdersRead 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 Jordan Hildalgo, 24, and Ritchie Juarbe, 25 both of Buffalo, NY, pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison, a $250,000 fine, or both.“This case demonstrates that when it comes to murder – or indeed any gang activity – our Office will pursue relentlessly until every perpetrator is brought to justice,” said U.S. Attorney Hochul.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendants were members of the Cheko’s Crew/7th Street Gang which was responsible for multiple acts of violence and the distribution of illegal narcotics on the West Side of Buffalo between 2000 and 2012. The narcotics included heroin, crack cocaine, cocaine, and marijuana.
The defendants admitted their roles in the murders of two people:
• On November 6, 2008, Hidalgo and Juarbe went to Raquan Lloyd’s house where Hidalgo shot and killed Lloyd. After the murder, Juarbe discarded the murder weapon, throwing it into the Niagara River.
• On August 11, 2009, Hidalgo participated in the murder of Eric Morrow, a rival 10th Street Gang member, who was shot and killed at the corner of West and Auburn Avenues in Buffalo. Following the murder, Hidalgo got into a getaway vehicle driven by Ritchie Juarbe.A total of 18 defendants have been charged in this case. To date, 14 have been convicted.
The pleas are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
The defendants will be sentenced on April 7, 2016 at 12:30 p.m. before Judge Arcara.
California Man Pleads Guilty to Money Laundering Charge in KansasRead the Press Release
WICHITA, KAN. – A California man pleaded guilty Monday to a federal money laundering charge in Kansas, U.S. Attorney Barry Grissom said.
Andris Cukurs, 69, Glendale, Calif., pleaded guilty to one count of conspiracy to commit money laundering. In his plea, he admitted that on Nov. 14, 2014, he was carrying $314,855 in cash in his car when he was stopped on I-70 by the Dickinson County Sheriff’s Department. Cukurs had an agreement with another person to deliver the money, which he knew was derived from the distribution of drugs.
Sentencing is set for March 3. Both parties have agreed to recommend a sentence of 30 months in federal prison. Grissom commended the Kansas Highway Patrol, the Dickinson County Sheriff’s Department, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
Barbour County, WV man convicted of methamphetamine traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Daniel Lee Canter, 30, of Volga, West Virginia, was convicted of methamphetamine trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Canter was discovered in possession of methamphetamine in November 2014 in Lewis County, West Virginia. He pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000. 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 Stephen Warner prosecuted the case on behalf of the government. The Lewis County Sheriff’s Department and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Alien Smuggler Sentenced to 9 MonthsRead the Press Release
ALBANY, NEW YORK – Christopher Square, age 29, of Kahnawake, Quebec, Canada, was sentenced on Friday to serve 9 months in prison for alien smuggling, announced United States Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.
In August, Square pled guilty before United States District Court Judge David N. Hurd to transporting aliens unlawfully present in the United States. Judge Hurd also sentenced Square to serve a two-year term of supervised release, to begin after his release from prison.
Square, a dual citizen of the United States and Canada, was prosecuted after he was encountered by Border Patrol on May 3, 2015 just south of the international border between the United States and Canada near Fort Covington, New York with three illegal alien passengers in the van he was driving. Square was observed driving near the border on the Akwesasne Mohawk Indian reservation, and then leaving the reservation and driving toward Fort Covington. When a marked Border Patrol vehicle approached the van Square was driving, Square pulled off the road and stopped, and three people were seen exiting the van and hiding nearby. Square was promptly stopped and arrested. The three people who exited his van were found hiding nearby and they were detained as aliens unlawfully present in the United States.
Two of the smuggled aliens, Ruie Huang, 28, from China, and Bi Rong Chen, 37 of Canada, were convicted of the misdemeanor offense of entry without inspection.
This case was investigated by the U.S. Border Patrol and prosecuted by Edward P. Grogan
34 Individuals Facing Federal and Tribal Charges Relating to Methamphetamine Trafficking on the Mescalero Apache ReservationRead the Press Release
Thirty-four individuals are facing federal and tribal drug charges as the result of an 18-month multi-agency investigation spearheaded by the Drug Enforcement Administration (DEA) and Bureau of Indian Affairs (BIA) into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 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 November and December 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 southern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the reservation.
In August 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 percent of violent crime on reservations,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “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, 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 Regional Agent in Charge Gary Cunningham 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 and Dec. 11: 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.
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
***media Advisory***Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, President Danny Breuninger of the Mescalero Apache Nation, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Assistant Special Agent in Charge John R. Burge of District IV of the BIA’s Office of Justice Services will hold a press conference to discuss charges recently filed pursuant to two federal initiatives on MONDAY, DECEMBER 14, 2015 AT 11:30 A.M. at the Las Cruces office of the DEA. No further information will be released until the press conference.
WHO: U.S. Attorney Damon P. Martinez for the District of New Mexico
President Danny Breuninger of the Mescalero Apache Nation
Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division
Assistant Special Agent in Charge John R. Burge of District IV, BIA Office of Justice Services
Gary Cunningham, Regional Agent in Charge, BIA’s Division of Drug Enforcement
WHAT: Announcement of Results of Significant Investigation in Mescalero Apache Nation and Southern New Mexico
WHEN: MONDAY, DECEMBER 14, 2015, 11:30 A.M.
WHERE: DEA Office
2290 E. Griggs Avenue
Las Cruces, NM 88001
OPEN PRESS
NOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 11:15 am. Inquiries regarding logistics should be directed to Laila Rico at 915-832-6074 or 915-892-4733 or [email protected].
Friday 11 December 2015
Waldorf Man Indicted in Scheme to Export Firearm Parts and AccessoriesRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Brian Thomas Platt, age 39, of Waldorf, Maryland, for illegally attempting to export and exporting firearms parts and other items designated as defense articles. The indictment was returned on December 7, 2015 and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office; and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
To further the security and foreign policy of the United States, the export from the United States of certain items designated as defense articles is controlled. Before exporting defense articles, the exporter is required to obtain an export license and identify the nature of the defense articles to be exported, the end-recipient and the purpose for which they are intended.
According to the three count indictment, on the following occasions, Platt exported and caused the exportation of the following firearm parts and accessories designated as defense articles on the U.S. Munitions List, without first obtaining the required licenses and authorizations: on June 24, 2014, an Uzi trigger group and two Uzi top covers, from the United States and destined to France; on August 14, 2014, three M-16 selectors, three M-16 disconnectors, three M-16 auto sear assemblies and three M-16 hammers from the United States and destined to Thailand; and on October 4, 2014, an 18 ½ inch IMI Factory Galil 5.56mm barrel from the United States and destined for Finland.
Platt faces a sentence of 20 years in prison on each of three counts for unlawful export of defense articles. An initial appearance was held on December 8, 2015 and Platt was released under the supervision of U.S. Pretrial Services. Platt is scheduled to be arraigned in U.S. District Court in Greenbelt on December 21, 2015 at 3:00 p.m.
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 commended HSI Baltimore, DCIS and ATF for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mara Zusman Greenberg, who is prosecuting the case.
Two Montreal Men Sentenced for Possession of Counterfeit Access Devices at the Highgate Springs Port of EntryRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Boris Alfonsa Caro-Silva, 25, and Idriss Bedhiaf, 26, both of Montreal, Canada, were sentenced today in Burlington for possession of at least fifteen counterfeit access devices when they attempted to enter the United States at the port of entry in Highgate Springs, Vermont in December 2014. U.S. District Judge Geoffrey W. Crawford sentenced both men to time-served and a fine. Caro-Silva and Bedhiaf each paid a fine in the amount of $2,000 prior to the sentencing hearing.
According to court records, on December 13, 2014, U.S. Customs and Border Protection officers encountered Caro-Silva and Bedhiaf as they attempted to enter the United States at the Highgate Springs port of entry. After referring the men to secondary inspection, officers discovered forty-five prepaid MasterCard and Tim Horton’s gift cards between the two men. The cards contained numbers written in black marker across the back. Caro-Silva acknowledged that the cards contained other individuals’ credit card information, and that he intended to withdraw whatever cash he could from ATMs and return a portion of the proceeds to another individual who had given him the cards in the Montreal area. Bedhiaf maintained that he had found the cards on the sidewalk near his home and was traveling to New York City to go shopping. Utilizing a credit card reader, law enforcement determined that the information contained on the cards’ magnetic strips did not correspond to the numbers printed on the face of the cards. Caro-Silva and Bedhiaf were arrested and charged with possession of counterfeit access devices.
This matter was investigated by Homeland Security Investigations and Customs and Border Protection. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Caro-Silva was represented by Elizabeth K. Quinn of the Federal Defender’s Office, and Bedhiaf was represented by Michael J. Straub.
Thomas Martinez Pleads Guilty to Federal Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD) announced today that Thomas Martinez, 26, of Albuquerque, N.M., pleaded guilty this morning to federal carjacking and firearms charges. Under the terms of his plea agreement, Martinez will be sentenced within the range of 20 to 35 years in prison followed by a term of supervised release to be determined by the court.
The U.S. Attorney said that Martinez was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. “As a general matter, this initiative targets violent and repeat offenders based on their prior criminal convictions. Periodically, we prosecute individuals who do not have any prior convictions because they are alleged to have engaged in extraordinary violent conduct that seriously jeopardized the community’s safety,” said U.S. Attorney Martinez. “Federal prosecution of Martinez under the initiative is based on his one-day violent crime spree on July 22, 2015.”
Martinez was charged with carjacking and firearms offenses in a criminal complaint filed on July 23, 2015. He subsequently was indicted on Aug. 11, 2015, and charged with two counts of carjacking and two counts of brandishing and discharging a firearm during a crime of violence. According to the indictment, Martinez committed all four crimes on July 22, 2015, in Bernalillo County, N.M., as he attempted to evade APD officers who were seeking to arrest him on a warrant arising out of an unrelated state court case.
Court filings reflect that Martinez committed the first carjacking as he attempted to flee from officers who were conducting surveillance in the vicinity of a hotel in northeast Albuquerque. Martinez ran to a sedan occupied by a driver and three children as the driver was entering a ramp onto Interstate 40. Martinez brandished a firearm at the driver, pushed the driver into the sedan’s passenger seat, and used the sedan to continue his flight from the officers. The children were able to get out of the vehicle before Martinez drove away with the driver. An APD officer who was attempting to prevent the carjacking was dragged by the Chevrolet as Martinez drove away. As Martinez continued his flight, the driver of the sedan attempted to get Martinez to stop the vehicle, and Martinez responded by discharging the firearm in an attempt to shoot the driver. When Martinez slowed down, the driver was able to jump out of the sedan.
Martinez continued his flight in the sedan and abandoned the vehicle in a neighborhood in southeast Albuquerque. There Martinez forced his way into another vehicle which was occupied by an older man seated in the front passenger seat. As Martinez began to drive away, another man confronted Martinez, got into the vehicle, and began fighting with Martinez. During the fight, Martinez attempted to discharge his gun at the man. Shortly thereafter, the man was able to disarm Martinez, and Martinez was arrested by APD officers on state charges.
Martinez was arrested on the federal charges on Oct. 7, 2015, after he was transferred from state custody to federal custody. The related state charges against Martinez have been dismissed in favor of federal prosecution.
During today’s proceedings, Martinez pled guilty to two counts of carjacking and one count of discharging a firearm during a crime of violence. Martinez remains in federal custody pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case as part of the “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Texas and Florida Residents Indicted for Retail Fraud SchemeRead the Press Release
BOISE - Alejandro Hidalgo, 26, Dilcia Martinez-Marquez, 25, Enrique Matos-Herrera, 29, Luis Mejias-Fiz, 25, and Jose Salazar-Quintana, 29, of Amarillo, Texas, and Eslay Monzon, 42, of Homestead, Florida, were indicted by a federal grand jury on December 8, 2015, for their participation in a pre-paid debit card retail fraud scheme, U.S. Attorney Wendy J. Olson announced. Hidalgo, Matos-Herrera, Mejias-Fiz, Monzon, and Salazar-Quintana are each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Martinez-Marquez is charged with conspiracy to commit wire fraud and wire fraud. The Defendants were arraigned on December 10, 2015, and trial has been set for February 2, 2016, before Senior U.S. District Judge Edward J. Lodge.
The Indictment charges the defendants with devising a scheme to defraud retail stores in Idaho by materially false and fraudulent pretenses, representations, and promises. The indictment alleges that the defendants traveled to Idaho for the purpose of executing their scheme, rented hotel rooms, and traveled to numerous retail stores in the Boise area on October 14 and 15, 2015. Additionally, the indictment alleges that the defendants made purchases of merchandise and gift cards using pre-paid debit cards that they had re-encoded with unauthorized debit card account numbers belonging to unknowing card holders.
Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony.
The case was investigated by the Meridian Police Department and the United States Secret Service.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tampa Man Sentenced to More Than 19 Years for Transporting A Minor Across State Lines to Engage in Sexual ActivityRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven has sentenced Stephen Farris Underwood (47, Tampa) to 19 years and 7 months in federal prison for transporting a minor across state lines to engage in sexual activity.
According to court documents, Underwood traveled from Tampa to Missouri to meet a minor with whom he had been corresponding online. Underwood picked the boy up from a Missouri shopping center and transported him to his residence in Florida. It was Underwood’s intent that he and the minor would live together as a couple in Tampa. Underwood engaged in numerous sex acts with the minor while he was at his home. The parents of the minor, who was 15 at the time, did not give Underwood permission to leave the state with their son.
This case was investigated by the Hillsborough County Sheriff’s Office, the Mountain View (Missouri) Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Summit County councilwoman indicted for allegedly taking bribesRead the Press Release
A Summit County councilwoman was named in an 11-count federal indictment, charged with taking cash bribes and other things of value in exchange for official actions, including help with court cases, impeding a pending IRS investigation and assistance obtaining a liquor license, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Tamela Lee, 57, of Akron, was indicted on six counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement.
“The charges in this case are extremely serious, because our public officials owe the community the highest level of integrity and honesty,” Dettelbach said. “Working with the FBI, we will continue to pursue corruption allegations so that the public can trust its elected officials.”
“Ms. Lee and the three other defendants must be held accountable for their crimes,” Anthony said. “She was supposed to lawfully represent the people that elected her, but rather, was motivated by her own self interests. The FBI will continue to root out public corruption, whether it is elected officials that violate their oath and the law or citizens that bribe them to do so.”
Three others were also indicted.
Omar Abdelqader, 49, of North Canton, was indicted on seven counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and two counts of making false statements to law enforcement.
Abdelrahman Abdelqader, 42, of Canton, was indicted on two counts: obstruction of justice and making false statements to law enforcement. Samir Abdelqader, 19, of Fairlawn, was indicted on one count of making false statements to law enforcement.
Omar Abdelqader was affiliated with several convenience stores and other businesses in the Akron area, including the Bi-Rite on Diagnonal Road. Abdelrahman Abdelqader is his brother and Samir Abdelqader is his nephew, according to the indictment.
Lee solicited and accepted things from Omar Abdelqader, including money, loans, campaign contributions, home improvements, home maintenance and consumer goods. These were provided directly by Omar Abdelqader, or through Bi-Rite, according to the indictment.
In return, Lee performed and promised to perform official acts for Omar Abdelqader and other businesses in Akron for which he served as a conduit to Lee. These actions included helping Omar Abdelqader and his designees navigate government bureaucracy, achieve favorable outcomes in judicial and administrative proceedings and obtain streamlined access to information, according to the indictment.
For example, on July 5, 2013, Lee caused to be sent a letter to the State of Ohio Liquor Control Commission on behalf of Person 7’s store, recommending approval of a liquor license application.
On June 8, 2014, Omar and Samir Abdelqader discussed Samir obtaining a bond regarding criminal charges he was facing. About 40 minutes later, Omar and Lee discussed the councilwoman emailing or calling the judge. On June 12, Lee called Judge 2’s chambers several times. The next day Lee asked Omar for money, and he directed her to the Bi-Rite to collect the money, according to the indictment.
On June 14, 2014, Lee sent a text message to Omar informing him that the judge and bailiff returned her call. She then sent a text message to Omar stating: “I am going to bed, I am angry and frustrated and broke…bye,” according to the indictment.
Later that day, Omar instructed Lee to send her daughter to the Bi-Rite to pick up cash. Three days later, Lee spoke to Judge 2 and told the judge she was related to Samir Abdelqader, according to the indictment.
In July 2014, Lee and Omar spoke repeatedly about fundraising for her campaign. Omar told Person 9 that he had collected $800 in donations for Lee. Omar explained the Lee provided service. “In other words, I am keeping her because we need her, man,” Omar told Person 9, who responded: “She is better than an attorney to us!” according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Linda Barr following an investigation by the Federal Bureau of Investigation, with assistance from the Akron Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Statement of Manhattan U.S. Attorney Preet Bharara on the Convictions of Former New York State Senate Majority Leader Dean Skelos and His Son Adam SkelosRead the Press Release
“The swift convictions of Sheldon Silver and Dean Skelos beg an important question – how many prosecutions will it take before Albany gives the people of New York the honest government they deserve?”
Six Indicted in Alleged Mortgage Fraud, Bank Fraud, Identity Theft SchemeRead the Press Release
PROVIDENCE, R.I. – A 22-count federal grand jury indictment unsealed in U.S. District Court in Providence on Thursday charges six individuals, including a Rhode Island real estate attorney, a real estate agent, a licensed loan originator, a former loan officer, a loan processor and a real estate investor, with allegedly participating in a conspiracy to obtain money they were not entitled to from financial institutions and individuals through mortgage loans, residential property sales and fees.
The indictment represents the latest federal charges to be filed in a wide-ranging series of ongoing investigations by the United States Attorney’s Office, the U.S. Department of Housing and Urban Development Office of Inspector General, the U.S. Secret Service and the Rhode Island State Police Financial Crimes Unit into alleged mortgage fraud in Rhode Island.
According to the indictment returned on Wednesday, it is alleged that between 2007 and 2014, the defendants conspired to execute a scheme which caused prospective homebuyers to obtain mortgages from financial institutions based upon materially false loan applications and fraudulent supporting documentation. It is also alleged that as part of the conspiracy, false representations were made in order to obtain fees to which the defendants were not entitled or to make a profit selling property in which they had an ownership interest. It is further alleged that in some instances, thousands of dollars were fraudulently obtained by misrepresenting on a Housing and Urban Development form the amount of funds due or to be paid to one of the parties involved in a transaction.
It is alleged that in numerous instances, the defendants concealed their involvement in the scheme by conducting business under the names of several different entities and individuals. It is alleged that at times, the defendants used stolen identities to further the fraud and to conceal their connection to the real estate transactions.
The indictment is announced by United States Attorney Peter F. Neronha; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The indictment charges:
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Attorney Louis Marandola, 41, of Providence, R.I., with one count of conspiracy, five counts of bank fraud, three counts of wire fraud and six counts of aggravated identity theft.
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Brian R. McCaffrey, 38, of East Greenwich, R.I., a licensed loan originator, with one count of conspiracy, two counts of bank fraud and two counts of aggravated identity theft.
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Raffaele M. Marziale, 41, of Bristol, R.I., a former loan officer, with one count of conspiracy, two counts of bank fraud and two counts of aggravated identity theft.
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Lauren Sienko, 33, of Rehoboth, Mass., a loan processor, with one count of conspiracy, two counts of bank fraud and one count of aggravated identity theft.
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Gina M. Ronci Mohamed, 45, of Lincoln, R.I., a licensed real estate agent, with one count of conspiracy, two counts of bank fraud, two counts of aggravated identity theft, and one count of false statement.
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Edwin Rodriguez, 35, of Pawtucket, R.I., a real estate investor, with one count of conspiracy, once count of bank fraud, two counts of aggravated identity theft and two counts of witness tampering.
Attorney Louis Marandola, Edwin Rodriquez and Lauren Sienko were released on unsecured bond following their arraignment on Thursday before U.S. District Court Magistrate Judge Patricia A. Sullivan. Brian McCaffrey, Raffaele Marziale and Gina Ronci Mohamed were released on unsecured bond following their arraignment today before Magistrate Judge Patricia A. Sullivan. Not guilty pleas were entered on behalf of all of the defendants.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. This indictment reflects the most recent charges filed by the U.S. Attorney’s Office in a wide-ranging series of ongoing investigations into alleged mortgage fraud in Rhode Island.
In September, Franchesco Franco, 34, of Providence, a former mortgage loan originator, pleaded guilty to conspiracy to commit bank fraud. Franco admitted to participating in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to him who is deceased.
In a separate matter, it is alleged that Dylan T. Kelly, 40, of Providence, whose real estate appraiser’s license expired in September 2008, continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of a licensed appraiser without his permission or knowledge. Kelley is charged by way of an information with false statements on a loan application.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and William J. Ferland.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
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Seventeen Defendants Targeted in A Criminal Complaint Alleging Broad-Ranging Drug Trafficking ConspiracyRead the Press Release
SAN FRANCISCO – Seventeen defendants were named in a federal criminal complaint alleging a criminal conspiracy to traffic heroin announced Acting United States Attorney Brian J. Stretch, Drug Enforcement Administration Special Agent in Charge John J. Martin, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth.
The complaint, unsealed today, alleges the following defendants participated in the conspiracy:
- Eutimio Reyna-Ceron, aka "Tony" aka "Gordo" aka "Little Tony"
- Marcelino Reyna-Ceron, aka "Anthony Rodriguez," aka "Anthony Rodriguez Carrillo"
- Cornelio Reyna-Ceron, aka "Carlos Alberto Mondragon-Guzman"
- Elizabeth Reyna-Rodriguez, aka "Lisa”
- Ramon Medina, aka "Mon"
- Remigio Madrigal Solorio, aka "Mingo"
- Santiago Rubio Chavez, aka "Calamargo"
- Rodolfo Rivera Herrera, aka "Fito"
- Raymundo Doval-Duran, aka "Brian"
- Cristino Vargas Mondragon, aka "Kiti" aka "Kiki" aka "Kitz"
- Julio Cesar Barbosa, aka "Montana”
- Brigido Rangel
- Angel Gudino-Urbina, aka "Ramon Gudino-Urbina"
- Robert Erickson
- William Anderson, aka "Billy"
- Jaime Sandoval, aka "Cajas"
- Valentin Camacho Toledo, aka "Leobardo Carillo Mondragon," aka "Arturo Hernandez Salazar”
According to the complaint, beginning in August of 2014 or earlier, the defendants conspired with one another to manufacture, possess, and distribute heroin. The complaint describes a sophisticated operation including the receipt, processing and distribution of the drugs.
Eutimio Reyna-Ceron is alleged to have managed the day-to-day distribution operation by, among other things, taking calls from customers and dispatching couriers to deliver drugs to the customers. He is alleged to have directed the distribution of about a kilogram of heroin per week. According to the complaint, Marcelino Reyna-Ceron allegedly managed the money generated by the illegal drug proceeds with the help of Elizabeth Reyna-Rodriguez, who maintained the group’s bank accounts. Marcelino Reyna-Ceron also allegedly obtained cars for the couriers to use when distributing the drugs. Cornelio Reyna-Ceron is alleged to have sold drugs to confidential government informants and to have delivered money to suppliers. Defendants Medina, Solorio, and Chavez are alleged to have been couriers who processed, prepared and delivered the drugs.
Defendants Herrera and Doval-Duran are alleged to have run separate distribution networks and to have shared intelligence with Eutimio Reyna-Ceron regarding sources of supply and law enforcement activity in their area. Herrera and another drug dealer who is alleged to have frequently purchased heroin from him, Robert Erickson, are charged with distributing heroin that resulted in the overdose death of a Santa Rosa woman in September.
Defendants Toledo, Mondragon, and Sandoval are alleged to have taken part in the conspiracy by supplying the organization with drugs. Mondragon and his lieutenants, Rangel and Gudino, were arrested in an August 12, 2015, raid. In that raid, law enforcement agents found over twenty kilograms of heroin and just under ten kilograms of 99.1% pure methamphetamine hidden in secret compartments inside car tires in Mondragon’s garage. On the same day, officers also arrested Barbosa, who worked as a courier for Mondragon. William Anderson is alleged to have been a frequent customer of Mondragon, purchasing an ounce of heroin each day for resale to others.
The complaint charges that all defendants were engaged in a conspiracy to distribute one kilogram of heroin or more, in violation of 21 U.S.C. § 846, which carries a ten-year mandatory minimum sentence. Additionally, a number of defendants were also charged with violation of 21 U.S.C. § 841(a)(1) for distribution or possession with intent to distribute heroin. The maximum statutory penalty for a violation of 21 U.S.C. §841(a)(1) and 846 is life imprisonment and a fine of $10,000,000. Herrera and Erickson are charged with distribution of heroin resulting in death, which carries a twenty-year mandatory minimum sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Most of the defendants were taken into custody during raids that took place at ten separate locations yesterday. The locations included five Santa Rosa homes, as well as homes in Manteca, Modesto, Rohnert Park, San Jose, and Newman, Calif. An additional defendant, Jose Ricardo Chavez-Yanez, was arrested and charged with possession with intent to distribute methamphetamine after he was allegedly found “attempting to flush suspected methamphetamine down the drain of a sink in the garage,” during the raid of one of the homes. All the defendants, with the exception of Gudino-Urbina and Erickson made an initial appearance today before the Honorable Sallie Kim, United States Magistrate Judge. Gudino-Urbina is a fugitive and Erickson currently is incarcerated on other charges. The defendants will appear before the court again in a series of further hearings that will begin on Tuesday, December 15, 2015.
The prosecution is the result of a two-year joint investigation by the Drug Enforcement Administration, Internal Revenue Service, and Santa Rosa Police Department. The prosecution team is also thankful for the efforts of the Sonoma County District Attorney’s Office whose support provided valuable assistance.
Rochester Man Pleads Guilty to Arson ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Matthew L. Mateo, a/k/a Red, 26, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to arson of a commercial building. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years, a fine of $250,000 or both.Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that on September 22, 2013, Mateo and Eddie L. Vaughn, a/k/a Elbow, transported Molotov cocktails to the Miami Deli Grocery at 176 Genesee Street in Rochester. Vaughn broke the store window with a brick. Mateo and Vaughn then lit a Molotov cocktail which Vaughn threw into the store. The Molotov cocktail exploded upon hitting the store floor and spread fire throughout the building. The interior and exterior of the store were burned and extensively damaged.
Vaughn has also been convicted of arson.
Today’s plea is the culmination of an investigation conducted by the Arson Task Force, which is comprised of Investigators of the Rochester Fire Department, Rochester Police Department, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mateo will be sentenced on March 15, 2016 at 3:30 p.m. before Judge Geraci. Vaughn is scheduled to be sentenced February 3, 2016 at 3:00 p.m., also before Judge Geraci.
Qatar Military Official and Wife Plead Guilty to Federal ChargesRead the Press Release
In San Antonio today, a military official from Qatar pleaded guilty to visa fraud and his wife pleaded guilty to misprision of a felony involving two domestic employees who were also citizens of foreign countries announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI) in San Antonio.
According to court records, 46-year-old Hassan Al-Homoud and his 39–year-old wife, Zainab Al-Hosani, a citizen of the United Arab Emirates, along with their children, currently reside in San Antonio while Al-Homoud is attending military training at Camp Bullis. In mid-2014, the defendants allegedly brought with them to the U.S. two females--a housemaid and a servant who worked for the family. The housemaid is a citizen of Indonesia; the servant is a citizen of Bangladesh. Both were in the U.S. on visas sponsored by Al-Homoud. By pleading guilty, the defendants admitted that they falsified the documents required to secure the visas for the two women.
The workers’ circumstances were discovered by an officer of the San Antonio Police Department in early April, when he encountered one of the workers in apparent distress along Camp Bullis Rd. This led law enforcement officers to a nearby apartment occupied by the workers, furnished with only a pallet on the floor for sleeping.
Statutorily, the defendants face up to ten years in federal prison. However, pursuant to the plea agreement, provided the terms and conditions are satisfied including restitution to each of the victims, Al-Houmoud will be placed on probation for five years, and his wife for three years. Both remain on bond pending sentencing scheduled for February 9, 2016, before United States District Judge Orlando Garcia in San Antonio. Further, in accordance with the plea agreement, both of them will be immediately removed from the U.S. following sentencing.
This case was investigated by Homeland Security Investigations (HSI) in San Antonio. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Portland Man Sentenced to Three Years for Crack Cocaine Distribution ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Samuel Collins, 47, of Portland, Maine, was sentenced today to three years in prison and three years of supervised release in connection with charges of conspiring to distribute cocaine base, often referred to as crack cocaine.
Court records reveal that between December 2013 and January 2015, Collins conspired with others to sell crack cocaine in Portland, Maine. Members of the conspiracy would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors who would sell the drugs in the Portland area. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine
from Collins and determined that Collins let other members of the conspiracy sell drugs from his apartment.Marco Gordon previously was sentenced to eleven years in connection with this conspiracy and Robert Joiner, Jr. was sentenced to three years. Several other members of the conspiracy have entered guilty pleas and await sentencing.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation, the Portland, South Portland, Biddeford, and Lewiston Police Departments, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Drug Enforcement Administration. The Maine Drug Enforcement Agency and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Owner of Harwood Heights Home Health Care Company Indicted in Medicare Fraud and Kickback SchemeRead the Press Release
CHICAGO — The owner of a Harwood Heights home health care company paid kickbacks to marketers in exchange for referring elderly patients to the company for unnecessary treatment funded by Medicare, according to a 17-count federal indictment announced today.
The indictment alleges that JACQUELINE TUANQUI paid kickbacks to marketers to induce the referral of Medicare beneficiaries to her company, Hexagram Home Health Care LLC. Tuanqui paid the bribes even though some of the patients did not qualify for the in-home treatment her company provided, according to the indictment. Medicare paid Hexagram at least $450,000 for treatment rendered to patients who were referred there as a result of a kickback, the indictment contends.
Tuanqui, 53, of Bartlett, is charged with one count of conspiracy to pay or receive healthcare kickbacks, and eight counts of paying kickbacks to induce referrals of Medicare beneficiaries.
In addition to Tuanqui, an outside marketer was also charged in the scheme. SUSIE AVELLANOSA, the owner of Elgin-based Allied Care Services Inc., received payments from Tuanqui in exchange for referring non-homebound Medicare beneficiaries to Hexagram, according to the indictment. Avellanosa, 57, of Elgin, is charged with one count of conspiracy to pay or receive healthcare kickbacks, and eight counts of receiving kickbacks in return for referring Medicare beneficiaries.
Tuanqui and Avellanosa pleaded not guilty yesterday during arraignments before U.S. Magistrate Judge Mary M. Rowland. Their next court appearance is scheduled for Jan. 28, 2016.
The indictment contends that the scheme began in approximately November 2012 and lasted until approximately April 2014. As part of the conspiracy, Tuanqui and Avellanosa signed written contracts that were designed to conceal the true nature of the kickback agreement, which called for Avellanosa to be paid for supplying a pre-determined number of patients to Hexagram per month, according to the indictment. The written agreements fraudulently stated that Avellanosa would be paid based on the number of hours she worked, without any mention of the true nature of the scheme, the indictment states.
The kickback and kickback conspiracy counts are punishable by up to five years in prison and a $250,000 fine. If convicted, restitution is mandatory and the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was returned last month and unsealed yesterday. It was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.
The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Department of Justice and HHS to prevent fraud and to enforce anti-fraud laws around the country.
The government is represented by Trial Attorney Brooke Harper of the Justice Department’s Criminal Division Fraud Section.
To report healthcare fraud or to learn more about it, logon to: StopMedicareFraud.gov.
Indictment
Oregon Couple Sentenced to Prison for Tax CrimesRead the Press Release
EUGENE, Ore. – Billy J. Williams, Acting U.S. Attorney for the District of Oregon, announced that a Coos County couple was sentenced yesterday to federal prison for tax crimes they were convicted of in October 2014.
Ronald Joling, 72, and Dorothea Joling, 73, both of Coquille, Oregon, were found guilty of conspiracy to defraud the United States by obstructing the Internal Revenue Service (IRS) in its attempt to collect a substantial tax debt owed by the Jolings. Ronald Joling was additionally convicted of tax evasion and filing false income tax returns.
Evidence at trial detailed the Jolings’ illegal efforts over close to twenty years to keep the IRS and the Oregon Department of Revenue from collecting almost $2 million they owed in back taxes, penalties and interest. The Jolings’ efforts to thwart the IRS included their use of sham trusts, a corporation sole, bank accounts in the names of nominees, a warehouse bank, bogus money orders, bills of exchange, bonds, and filing false tax returns with the IRS. When those efforts failed, the Jolings resorted to intimidation tactics and threats. Witnesses testified at trial that in response to attempts to collect taxes owed, the Jolings threatened them with arrest, criminal prosecution and lawsuits. In one instance, the Jolings took out a newspaper advertisement in the Coquille Valley Sentinel accusing a local government employee of malfeasance just for performing her job. The Jolings also filed retaliatory bogus liens against federal judges, the federal court clerk’s office, and federal prosecutors who were involved in the criminal case. A federal grand jury has indicted the Jolings for filing these liens and that separate criminal case is pending.
Rather than pay their taxes, the Jolings spent about $750,000 on a motel and restaurant in Coquille and tracts of land in Linn County. They attempted to conceal their interest in these properties from the IRS by placing them in sham trusts.
After the Jolings were convicted at trial in October 2014, Chief U. S. Judge Ann Aiken ordered them to return to court in April 2015 for sentencing. The Jolings refused and instead fled Oregon. Arrest warrants were issued, and in October 2015 the United States Marshals Service located and apprehended the Jolings in Clarkdale, Arizona.
At yesterday’s hearing Judge Aiken ordered Ronald Joling to serve 97 months and Dorothea Joling to serve 48 months in prison. Each defendant must also pay more than $1.2 million to the IRS in outstanding federal taxes.
Acting U.S. Attorney Williams noted, “This is an egregious case. Not only did the Jolings refuse to pay their fair share of taxes like the rest of us, they retaliated against federal employees who were just doing their jobs. After a jury convicted them at trial, they cowardly refused to show up for sentencing and fled the state. They were fugitives for six months, requiring additional resources to locate and arrest them in Arizona. They are now in custody and will serve their appropriately lengthy sentences.”
This case was investigated by the IRS, Criminal Investigation, with assistance from the U.S. Marshal’s Service. It was prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Chris Cardani.
Nine Charged in $6 Million Dollar Broward Telemarketing Securities Fraud SchemeRead the Press Release
A Miami federal grand jury indicted nine individuals for operating a Broward County telemarketing scheme (“a boiler room”) that targeted investors throughout the country and ultimately defrauded them out of $6.6 million dollars.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and the Securities and Exchange Commission (SEC), made the announcement.
Thomas A. Guerriero, 39, of Deerfield Beach, Diana P. Lovera (D. Lovera), 32, of Deerfield Beach, Victor Lovera (V. Lovera), 28, of Deerfield Beach, Edward R. Sachs, 56, of Boca Raton, Andrew J. Bourdeaux, 28, of Davie, Joseph Loish, 58, of Pompano Beach, Steven Goldstein, 60, of Sunrise, Steven Sharaf, 63, of Pembroke Pines, and Frank Penaloza, 29, of Pompano Beach, were charged by indictment with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Additionally, Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, and Goldstein are charged with substantive counts of mail and/or wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343. Guerriero is also charged with witness tampering and obstruction of justice, during the course of an SEC investigation, in violation of Title 18, United States Code, Sections 1005 and 1512(b)(1).
U.S. Attorney Wifredo A. Ferrer stated, “Securities fraud jeopardizes the financial well-being of our citizens. The U.S. Attorney’s Office and our enforcement partners will continue to identify for prosecution, those individuals who use deception, scare tactics and undue pressure to strip others of their hard-earned financial investments.”
“This case demonstrates our commitment to rooting out fraudsters who bilk millions of dollars from investors every year,” said George L. Piro, Special Agent in Charge, FBI Miami. “Criminals are always devising new methods to defraud unsuspecting investors. Accordingly, we are continuously adapting our investigative techniques in order to hold them accountable for their unscrupulous actions.”
According to allegations contained in the indictment Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, Goldstein, Sharaf, and Penaloza solicited investors throughout the United States to buy stock shares of Oxford City Football Club, Inc. (“Oxford City”), a Deerfield Beach, Florida corporation that claimed to manage a portfolio involving sports, education, media, and real estate businesses. The defendants sold stock directly from the company in private placement offerings.
The indictment alleges that from July 2013 through July 2015, the defendants conspired to misappropriate investor money for their personal benefit by making false statements, during the course of a telemarketing scheme, regarding the Oxford City stock. According to the indictment, the defendants used high-pressure, strong-armed tactics to intimidate and coerce individuals to invest in Oxford City. Over the course of the scheme, the defendants and their co-conspirators caused over 150 individuals to buy shares of Oxford City restricted stock for approximately $6.6 million.
Today, the SEC announced parallel civil charges against Guerriero and Oxford.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorney Kevin B. Hart from the Antitrust Division of the Department of Justice.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Niagara Falls Man Charged with Assaulting A Probation OfficerRead 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 Monsuru Giwa, 24, of Niagara Falls, NY, was arrested and charged by criminal complaint with assaulting a federal officer. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on November 24, 2015, U.S. Probation Officers attempted to search the defendant’s Niagara Falls residence. An officer approached Giwa on the porch and directed the defendant to put his hands behind his back. As the officer attempted to place handcuffs on Giwa, he attempted to break free causing the officer to be pulled off the porch and onto the ground suffering leg lacerations Giwa then fled the scene.
The defendant made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being detained.
The criminal complaint is the culmination of an investigation on the part of the United States Probation Department, under the direction of Anthony SanGiacomo and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
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.New Federal Veterans Treatment Court Program Begins Next Month on Fort HoodRead the Press Release
Beginning next month, qualified veterans charged with committing misdemeanors while on Fort Hood will be eligible to participate in a pilot program designed to provide an alternative to a federal conviction announced United States Attorney Richard L. Durbin, Jr.
The Fort Hood Federal Veterans Treatment Court, "Veterans Endeavor for Treatment and Support" or "VETS," will work to divert veterans with service-connected mental health or substance abuse disorders out of the court system and into enduring treatment solutions with the Department of Veterans Affairs.
This initiative will be supervised by the United States District Court for the Western District of Texas and run by United States Magistrate Judge Jeffrey C. Manske with the support of United States Attorney Durbin.
This new program at Fort Hood is believed to be the first of its kind on a U.S. Army installation. It will provide a defendant-veteran whose deployments led to a diagnosis of post-traumatic stress manifesting in substance abuse which results in a DWI/DUI the opportunity to avoid a federal conviction for that offense if he or she completes a 12-18 month treatment and supervision program with the Veterans Affairs and the Court.
VETS requires enrollees to engage in intensive multi-stage professional counseling and treatment for issues involving substance abuse, mental health, disability, finances, and other difficulties, including those related to their military service. They must also abide by strict rules of conduct, follow rigorous treatment plans, and attend mandatory scheduled hearings before Judge Manske.
The treatment court model also builds upon the Department of Justice 'Smart on Crime' initiative to bolster prevention and reentry efforts to deter crime and reduce recidivism
“This initiative, directed at veterans, will serve justice by directing them to available resources. We especially hope to provide alternatives for criminal conviction for veterans whose military service may have contributed to their current conditions and conduct,” stated United States Attorney Richard L. Durbin, Jr. “We hope this program will lead the way for similar initiatives to develop in other federal jurisdictions near major military bases where veterans congregate.”
VETS is a joint partnership carried out by the United States District Court, United States Attorney's Office, and Pretrial Services Office for the Western District of Texas, the Department of Veterans Affairs, U.S. Army III Corps and Fort Hood, and the Military Veteran Peer Network operating with "Bring Everyone in the Zone."
The initiative was inspired by examples of similar programs in state jurisdictions and the Department of Justice. More than 160 of these courts exist in state and federal jurisdictions nationwide.
Navajo Man Pleads Guilty to Federal Arson ChargeRead the Press Release
ALBUQUERQUE – Derek C. Toledo, 28, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an arson charge under a plea agreement with the U.S. Attorney’s Office.
Toledo was arrested in May 2015, on a criminal complaint charging him with arson and was indicted on that same charge on June 9, 2015. According to court filings, Toledo set fire to the residence of a Navajo woman and her three children on May 9, 2015, on the Navajo Indian Reservation in San Juan County, N.M., following an argument.
During today’s proceedings, Toledo pled guilty to the indictment and admitted that on May 9, 2015, he maliciously set fire to the residence of his former girlfriend and her two children. Toledo admitted using a hand lighter to ignite charcoal lighter fluid he had sprayed inside the home and onto flammable items he had thrown on the floor.
At sentencing, Toledo faces a statutory maximum penalty of life in federal prison. Toledo is in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Milton Man Convicted of Child Exploitation CrimesRead the Press Release
PENSACOLA, FLORIDA – Yesterday afternoon, a federal jury convicted Milton resident Robert F. Matlack, 79, of attempted commercial sex trafficking and attempted enticement of a minor for sex. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in July 2015, Matlack communicated online with someone who turned out to be an undercover law enforcement officer. The purpose of Matlack’s contact was to meet a 12-year-old child for sexual activity. During trial, the jury heard evidence of Matlack e-mailing and text messaging his desires for a 12-year-old child. Matlack was arrested when he arrived at the arranged meeting location in Milton, Florida, where he thought he would meet a 12-year-old child. He possessed $180 to pay for the illicit sex acts. Also seized from his vehicle were blister packs of Viagra.
For the attempted commercial sex trafficking charge, Matlack faces a minimum of 15 years in prison and a maximum of life in prison. For the attempted enticement of a minor charge, Matlack faces a minimum of 10 years in prison and a maximum of life in prison. The sentencing hearing is scheduled for February 23, 2016, at 12:30 p.m.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Middlesex County, New Jersey, Man Convicted of Trying to Import More Than 500 Grams of Heroin into the United StatesRead the Press Release
NEWARK, N.J. – A Sayreville, New Jersey, man was convicted today by a federal jury for his role in a conspiracy to import heroin from India into the United States, U.S. Attorney Paul J. Fishman announced.
Adolphus Nwokedi, 47, was convicted of an indictment charging him with one count of conspiring with others to import 100 grams or more of heroin. He was convicted following a three-day trial before U.S. District Judge Esther Salas in Newark federal court. The jury deliberated for about three hours before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
From Oct. 2013 through Dec. 2013, Nwokedi conspired with an individual in India to ship a parcel containing heroin into the United States. In return for $3,000, Nwokedi agreed to accept the package at his business address in Newark and then deliver it to another conspirator living in Bronx, New York. On Dec. 11, 2013, customs officers at the John F. Kennedy International Airport mail facility intercepted the parcel and found 524 grams of heroin. On Jan. 2, 2014, agents with Homeland Security Investigations conducted a controlled delivery of the parcel. Nwokedi personally accepted the parcel in Newark and was subsequently arrested.
The conspiracy count carries a mandatory minimum of five years in prison and a maximum potential penalty of 40 years in prison. Sentencing is set for March 21, 2016.
U .S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark
Mexican National Sentenced for Meth DistributionRead the Press Release
POCATELLO – Carlos Beltran-Vega, 58, a Mexican national most currently living in Rigby, Idaho, was sentenced yesterday by Chief U.S. District Judge B. Lynn Winmill to 135 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Beltran-Vega pleaded guilty to the charge on August 26, 2015.
According to the plea agreement and sentencing hearing, On February 16, 2015, law enforcement received information that Beltran-Vega , along with co-Defendants, had a large amount of methamphetamine in a cooler at a hotel in Idaho Falls, Idaho. Officers conducted surveillance on the hotel room and observed Beltran-Vega, along with another man exit the hotel room and get into a vehicle. The two men had possession of a red cooler when they went from the hotel room into the vehicle. A short time later the vehicle was stopped, and a canine alerted to the presence of drugs in the cooler. Methamphetamine was found in the cooler. A subsequent search of the hotel room revealed a larger amount of methamphetamine.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, the Bonneville Country Sheriff’s Office, the Idaho Falls Police Department, and the Nampa Police Department. The case was prosecuted jointly by the attorneys from the United States Attorney’s Office and the Bonneville County Prosecutor’s Office. The remaining defendants are scheduled to be sentenced on December 21.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Man Sentenced to 20 Months in Prison for Conspiracy to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Kurt Reovan, 37, of Georgia, to 20 months in prison and three years of supervised release for conspiracy to distribute marijuana, United States Attorney Ronald W. Sharpe announced.
On June 8, 2015, Reovan pleaded guilty to conspiracy to distribute marijuana. Court records show that on February 13, 2015, Reovan and Amari Stroy, 23, of Union City, Georgia, were apprehended at the Cyril E. King Airport on St. Thomas with approximately 9.9 kilograms of marijuana in a checked suitcase. Reovan brought the marijuana to St. Thomas on a flight that originated in Atlanta, Georgia. On September 17, 2015, Stroy was sentenced to eight months in
prison and one year of supervised release for possession of marijuana.This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted by Assistant United States Attorney David White.
Lynn Man Pleads Guilty to Charges of Naturalization, Passport, and Social Security FraudRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in U.S. District Court in Boston in connection with his attempts, following an illegal entry to the United States approximately 25 years ago, to gain citizenship and remain in the country.
Princehakeem Awolesi, 48, pleaded guilty to illegally obtaining United States citizenship and a U.S. passport, and using a false Social Security number. Awolesi was arrested in August 2015 and charged with violating various federal immigration and social security laws. U.S. District Court Judge Indira Talwani scheduled sentencing for March 17, 2016.
In 2005, as part of his application for naturalization, Awolesi submitted a false birth certificate and made numerous false statements to the officials deciding whether he qualified for citizenship, including his use of a prior identity. Awolesi was granted citizenship in 2005 and applied for a passport the same year, again concealing his use of another identity. Later, when applying for a replacement passport, Awolesi used a social security number he had obtained by making false statements to the Social Security Administration.
As a result of the conviction on the citizenship charge, Awolesi’s United States citizenship will be revoked.
The charges of naturalization and passport fraud each provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of falsely obtaining a social security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Criminal Division.
Johnson County Man Sentenced to 17+ Years for Child PornRead the Press Release
KANSAS CITY, KAN. – A Johnson County man was sentenced Thursday to 210 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Jacob N. Hilton, 29, Gardner, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he traded child pornography over the Internet with a man in Australia who was arrested by the Queensland Police during a child pornography investigation. The man’s records showed he had been in contact with Hilton and the Australian police passed the information on to investigators in Kansas. Investigators obtained a warrant and found evidence in Hilton’s Gmail account that he sent child pornography to the Australian man.
Grissom commended the Queensland Police, the FBI and Assistant U.S. Attorney for their work on the case.
Jackson Man Sentenced to Prison for Bankruptcy FraudRead the Press Release
Jackson, Miss - William David Dickson, aka Butch Dickson, 59, of Jackson, was sentenced on Thursday, December 10, 2015, by U.S. District Court Judge Tom S. Lee, to 57 months in federal prison followed by three years of supervised release for the fraudulent receipt of over $9 million and concealment of a bank account containing funds belonging to the bankruptcy estate of Community Home Financial Services, Inc., announced U.S. Attorney Gregory K. Davis, Acting U.S. Trustee Henry G. Hobbs, Jr. of Region 5, and FBI Special Agent in Charge Donald Alway.
Dickson placed Community Home Financial Services, Inc. in bankruptcy on May 23, 2012 in the Southern District of Mississippi. Dickson devised a scheme and artifice to defraud the bankruptcy court and the Chapter 11 trustee by fraudulently causing funds of the debtor’s bankruptcy estate to be transferred to multiple accounts outside of the country.
The Chapter 11 Trustee, Kristina M. Johnson, along with the U.S. Trustee’s Jackson, MS office referred this matter to the U.S. Attorney’s office. The investigation was conducted by the FBI, with assistance from the Chapter 11 Trustee. The case was prosecuted by Assistant U.S. Attorney Scott Gilbert.
Illinois Man Pleads Guilty to Defrauding Foreign Investor of $500,000Read the Press Release
ALEXANDRIA, Va. – Thomas A. Kopec, 48, of New Lenox, Illinois, pleaded guilty today to wire fraud for cheating a Panamanian investor out of $500,000.
In a statement of facts filed with the plea agreement, Kopec admitted to soliciting $500,000 from the victim for a purported investment vehicle for purchasing securities and acquiring a bank. Kopec took steps in pursuing the purported investment in order to lull the victim into thinking the investment was proceeding as planned. In truth, Kopec misappropriated the moneys and spent them on personal and other expenses at retail establishments including Best Buy, Wal-Mart, and the Apple Store. Kopec started the scheme in Illinois, but relocated it to the Eastern District of Virginia, and caused the issuance of interstate wires originating in the Eastern District of Virginia in order to obtain and misappropriate the victim’s money.
Kopec was indicted by a federal grand jury on June 5, 2014. The indictment was placed under seal until Kopec’s arrest earlier this year. Kopec faces a maximum penalty of 20 years in prison when sentenced on March 4, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Kosta S. Stojilkovic is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-204.
Idaho Falls Man Pleads Guilty to Sexual Exploitation of Minor ChildRead the Press Release
POCATELLO - Justin Dixson, 42, of Idaho Falls, Idaho, pleaded guilty yesterday to sexual exploitation of a minor child, U.S. Attorney Wendy J. Olson announced. Dixson was indicted by a federal grand jury in Pocatello on May 27, 2015.
According to the plea agreement, Dixson admitted that between July 2014, and February 2015, law enforcement agents were able to download 27 files of child pornography from his computer. Additional images of child pornography were located on Dixson’s computer hardware when his residence was searched pursuant to a search warrant in April 2015. Among those images were images of a minor child being sexually abused by Dixson, and Dixson admitted to taking pictures of the abuse. In total, law enforcement discovered approximately 1,712 suspected images and videos of child pornography on the defendant’s computer. The National Center for Missing and Exploited Children reported that of these, 438 images and 29 videos depicted children previously identified to law enforcement as victims of sexual abuse and exploitation.
The charge of sexual exploitation of a minor child is punishable by up to 30 years in prison, a maximum fine of $250,000.00, and up to life supervised release.
Sentencing is set for March 2, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Idaho Internet Crimes Against Children Task Force (ICAC), Idaho Falls Police, U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Marshals Service (USMS).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Husband and Wife Sentenced in Witness Tampering CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Mindy Konopski, 34, who was convicted of obstruction of a court order, and her husband, Andrej Konopski, 29, both of Savona, NY, who was convicted of witness tampering, were each sentenced to six months in prison and six months home detention by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the couple harassed and intimidated witnesses in the federal prosecution of Mindy Konopski’s brother Jonathan Fernandes. He was convicted after a jury trial in August 2015 of multiple drug charges relating to the manufacture and distribution of methamphetamine, as well as witness tampering. Mindy and Andrej Konopski confronted an individual they believed was cooperating against Fernandes in a threatening and intimidating matter and obtained a false statement from that individual that was later used in court documents filed by Fernandes. Jonathan Fernandes will be sentenced on January 8, 2016.
Today’s sentencings are the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, and the Steuben County Sheriff’s Department, under the direction of Sheriff David Cole.
Gun Charge Filed Against Allentown ManRead the Press Release
PHILADELPHIA – Victor Morales, 30, of Allentown, PA, was charged yesterday by indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on June 12, 2015, Morales was in possession of a Smith & Wesson, Model SW40GVE, .40 caliber semi-automatic pistol, with a live round of .40 caliber ammunition in the chamber, and a magazine loaded with 13 live rounds of .40 caliber ammunition.
If convicted, Morales faces a maximum term of ten years in prison, up to three years of supervised release, a maximum fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Eric A. Boden.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gila River Woman Sentenced to Federal Prison for Selling MethamphetamineRead the Press Release
PHOENIX – On Dec. 10, 2015, Delphine Corrine Morgan, 37, of Blackwater, Ariz. and a member of the Gila River Indian Community, was sentenced by U.S. District Judge Steven P. Logan to 92 months in prison, followed by a term of three years of supervised release. Morgan previously pleaded guilty to possession with intent to distribute less than 50 grams of a mixture or substance containing methamphetamine.
According to court documents, on March 13, 2015, Morgan sold less than 50 grams of a mixture or substance containing a detectable amount of methamphetamine to an undercover officer at her residence located on the Gila River Indian Community. Morgan had sold methamphetamine to this same undercover officer on one prior occasion.
The investigation in this case was conducted by the Gila River Police Department and the Bureau of Indian Affairs. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-2015-0330-PHX-SPL
RELEASE NUMBER: 2015-121_Morgan
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Former Property Manager Sentenced to 41 Months in Prison for Stealing over $380,000 from Employer and ClientsRead the Press Release
WASHINGTON – Lorraine Cyr, 58, was sentenced today to 41 months in prison for embezzling over $380,000 from her employer and properties that she managed, announced U.S. Attorney Channing D. Phillips, Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Cyr, of Palm Bay, Fla., pled guilty in July 2015 in the U.S. District Court for the District of Columbia to one count each of wire fraud and income tax evasion. She was sentenced by the Honorable Senior Judge Royce C. Lamberth. Following her prison sentence, Cyr will be placed on three years of supervised release. She also must pay $380,537 in restitution to a property management company and various other victims of her scheme, as well as $96,112 to the IRS. She also must pay a forfeiture money judgment in the amount of $342,917.
According to a statement of offense submitted at the plea hearing, Cyr worked from 2001 until 2009 for a property management company, referred to in court documents as “Property Management Company A,” in Washington, D.C. She was vice president of operations during her last four years of employment, handling duties such as management of payroll, bank accounts, budgeting, invoicing, and tax preparation for the company and its clients. The clients consisted largely of cooperative and condominium apartment buildings in the District of Columbia.
In 2009, Cyr started her own property management company, Lorraine Cyr Management Group, Inc., also in Washington, D.C., in which she performed similar duties for various clients, including some who transitioned to her new firm. In her new role, she had virtually unfettered discretion to manage the business affairs of her clients, who granted her access to bank accounts to manage their operations and expenses.
Between July and November of 2009, prior to resigning from “Property Management Company A,” Cyr embezzled $37,620, which she used for personal purposes, including spending at casinos and various retailers. Then, between March 2010 and April 2011, while at her own firm, she stole $342,917 in funds from eight clients. She used the money for expenses such as spending at casinos, hotels, amusement parks, clothing stores, restaurants, and other retailers.
The tax charge stems from Cyr’s evasion of income taxes on the money that she was stealing, as well as the legitimate income that she was earning, during the course of her scheme.
In announcing the sentence, U.S. Attorney Phillips, Special Agent in Charge Jankowski and Chief Lanier commended the work of those who investigated the case from IRS-CI and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Thomas Swanton and Anthony Saler, who handled forfeiture issues; former Assistant U.S. Attorney Mary Chris Dobbie; Paralegal Specialist Tasha Harris; Legal Assistant Angela Lawrence, and former Paralegal Specialists Heather Sales and Nicole Wattelet. Finally, they expressed appreciation for the work of Trial Attorney Jeffrey McLellan, of the Department of Justice’s Tax Division, who assisted on the tax matter, and Assistant U.S. Attorney David A. Last, who investigated and prosecuted the case.
Former President of Investment Services Company Indicted on Charges That He Stole over $1 Million from ClientsRead the Press Release
WASHINGTON – Brian J. Ourand, 54, the former president of a company that provides financial services and investment advice, has been indicted by a federal grand jury on charges that he embezzled more than $1 million from his clients’ bank and credit card accounts.
The indictment was announced today by U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Ourand, formerly of Washington, D.C. and Chicago, was arrested on Dec. 8, 2015, by the FBI in Chicago. He made his first appearance later that day in the U.S. District Court for the U.S. District Court for the Northern District of Illinois and was released pending further proceedings. The indictment, which was unsealed today, was returned on Dec. 3, 2015, in the U.S. District Court for the District of Columbia, where Ourand is to appear on Dec. 21, 2015.
The indictment charges Ourand with two counts of mail fraud, nine counts of wire fraud, two counts of aggravated identity theft, and four counts of first-degree theft. It also includes a forfeiture allegation seeking all proceeds from the crimes.
According to the indictment, Ourand began working for the Washington D.C.-based financial services company in 1986, and later became a vice president and eventually president of the firm. The company terminated his employment in August of 2011.
As alleged in the indictment, Ourand and the company provided advisory and financial management services to high net-worth individuals, most of whom were current and former professional athletes. Among the services they provided were paying invoices and bills, coordinating tax preparation, and providing estate planning on behalf of individual clients. The charges involve Ourand’s activities involving four clients, all of whom were current or former professional athletes. According to the indictment, beginning as early as May of 2003, and continuing through July of 2011, Ourand schemed to embezzle money from these clients.
The indictment alleges that Ourand diverted at least $1 million in total funds from the clients’ bank accounts and credit card accounts to himself and for the benefit of those close to him. It also alleges that Ourand sought to conceal his embezzlement by generating false documentation in support of purported business-related and other authorized expenses.
Among other things, the indictment alleges, Ourand used the stolen money to pay for hotel stays, meals at restaurants, retail purchases, gym memberships, and other expenses.
The Securities and Exchange Commission has a separate case pending against Ourand that is awaiting administrative proceedings. The SEC charged Ourand with fraud.
Charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
In announcing the indictment, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorney Kevin Lowell, also of the Asset Forfeiture and Money Laundering Section; Paralegal Specialist Tasha Harris; Legal Assistant Angela Lawrence, and former Paralegal Specialist Heather Sales. Finally, they commended the work of Assistant U.S. Attorney David A. Last, who is prosecuting the case.
Former New York City Corrections Officer Pleads Guilty to Multimillion Dollar Tax Refund ConspiracyRead the Press Release
A Middle Island, New York resident pleaded guilty today in the U.S. District Court for the Eastern District of New York to one count of conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Rodney Chestnut, a retired corrections officer for the New York City Department of Corrections, pleaded guilty to count one of the pending indictment, which alleged that between 2008 and 2012, he participated in a scheme to submit false tax returns seeking fraudulent income tax refunds in excess of $3.4 million to the Internal Revenue Service (IRS). According to the indictment, Chestnut worked with Clive Henry, a former IRS employee in the business of preparing tax returns, and another individual, to recruit clients to this scheme, which involved using fraudulent IRS Forms 1099-OID to falsely claim refunds of taxes that never paid over to the IRS. The indictment alleged that Chestnut, Henry and the other individual collected fees from clients based on a percentage of the refunds received, and supplied the clients with correspondence containing false and frivolous claims to send to the IRS in response to IRS warning letters regarding the false tax returns.
In 2013, a federal court permanently enjoined Chestnut from promoting a tax fraud scheme involving fraudulent Forms 1099-OID and from preparing tax returns for anyone other than himself.
U.S. District Judge Kiyo A. Matsumoto scheduled sentencing for May 12, 2016. Chestnut faces a statutory maximum sentence of five years in prison and a fine of up to $250,000, or twice the loss from the offense. Henry pleaded guilty to conspiracy to defraud the United States on Nov. 17. His sentencing is set for March 23, 2016.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Erin Pulice, Mark Kotila and Jeffrey A. McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.