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26 January 2016
Three Indicted in Raleigh Witness Tampering and Obstruction CaseRead the Press Release
RALEIGH – United States Attorney’s Office for the Eastern District of North Carolina announced today that a federal grand jury in Raleigh, North Carolina returned a four count indictment charging DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON with conspiring to tamper with a witness, in violation of the provisions of Title 18, United States Code, Section 1512(k); witness tampering and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(b) and 2; obstruction of an official proceeding and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(c) and 2; and obstruction of justice and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1503(a) and 2.
The investigation revealed that beginning on July 1, 2015, Federal Bureau of Investigation agents and Raleigh Police Department officers interviewed and served federal grand jury subpoenas on individuals believed to have information on the illegal activities of a gang in Raleigh, North Carolina. After learning the identity of a witness subpoenaed to testify before a federal grand jury, DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON discussed a plan to approach the witness and inform the witness that individuals were watching the witness’ child, as a means to influence the witness’ testimony before a federal grand jury.
If convicted, the maximum penalties for the witness tampering counts are not more than 20 years imprisonment, a $250,000 fine, and a term of supervised release of not more than 5 years, following any term of imprisonment. The maximum penalties for the obstruction of justice count is not more than 10 years imprisonment, a $250,000 fine, and up to 3 years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law. The case is being investigated by the Federal Bureau of Investigation and the Raleigh Police Department.
Texas Man Sentenced to 15 Years on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – BRYCE THOMSON, Selma, Texas, was sentenced to 188 months involving his transportation of child pornography from Texas to St. Louis.
According to court documents, on March 2, 2015, Thomson flew from Texas to Missouri with a laptop computer, an IPad, an IPhone, a Samsung phone, a Lexar USB thumb drive and four other thumb drives.
Thomson had placed an ad on Craigslist.org seeking to contact people who were “only into real taboo and extremely forbidden things.” The ad contained adult pornography and animated child pornography. On March 4, 2015, an undercover St. Louis officer contacted Thomson posing as a mother of a girl. During the chat, Thomson stated that he was in St. Louis on business from Texas and that he was interested in various sexual activities. He stated his favorite age was nine to thirteen years old. He sent the officer photos of a minor female in sexually explicit activities and provided his cell phone number for further contact.
On March 5, 2015, Thomson was arrested by the St. Louis County Police at Lambert International Airport as he prepared to depart for Texas. He stated that he arrived in St. Louis on March 2, 2015, for a business convention. He admitted posting the ad on Craigslist. He stated that he had an interest in child pornography for thirty years. He estimated that he had downloaded one million child pornography images or videos in the last thirty years and had exchanged approximately 500,000 child pornography images or videos in that time. The majority of those images depicted females between the age of ten and thirteen. Thomson also told officers that he had inappropriate sexual contact with an eleven-year-old relative in 2000.
Thomson pled guilty in November to one felony count of transportation of child pornography. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the St. Louis County Police Department and the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin handled the case for the U.S. Attorney’s Office.
Tennessee Man Sentenced to 96 Months in Prison for Driving to Minnesota to Have Sex with 13-Year-Old GirlRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of JEFFREY SCOTT EVANS, 51, to 96 months in federal prison for with traveling from Tennessee to Bloomington, Minnesota, for the purpose of engaging in illicit sexual conduct with a 13-year-old female. EVANS pleaded guilty on August 11, 2015, and was sentenced on January 22, 2016, before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn.
“The sexual exploitation of children by predators has reached epidemic proportions nationally and internationally,” said acting Special Agent in Charge William Lowder of HSI St. Paul. “Targeting these predators through the tireless efforts by our HSI special agents has been a high priority for more than a decade. These cases demonstrate how every parent must remain vigilant to Internet predators who may pose in various disguises to meet and ultimately sexually exploit children.”
According to the defendant’s guilty plea and documents filed in court, on June 12, 2015, EVANS used the screen name “taboolooking” on a social media site called “chathour.com,” to initiate a conversation with another user who EVANS believed to be a 13-year-old female. This user was actually an undercover federal agent. EVANS quickly turned the conversation sexual in nature, and discussed traveling from Tennessee to Minnesota to meet and have sex with the child.
According to the defendant’s guilty plea and documents filed in court, between June 12, 2015, and June 22, 2015, EVANS sent dozens of email messages and text messages describing the sexual acts he wanted to engage in with the girl. He also sent sexually explicit photos of himself. In one message, EVANS discussed bringing a digital camera so he could take pictures and video of himself having sex with the 13-year-old female.
According to the defendant’s guilty plea and documents filed in court, on June 22, 2015, EVANS was arrested shortly after he arrived at the Bloomington hotel at which he had planned to engage in illicit sexual relations with the 13-year-old female. Inside EVANS’ hotel room law enforcement found sex toys and lingerie on the bed, as well as a camera and illegal drugs. Inside EVANS’ vehicle, law enforcement found a loaded .38 caliber pistol.
This case was the result of an investigation conducted by Homeland Security Investigations with the assistance of the Bloomington Police Department.
This case was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
Defendant Information:
JEFFREY SCOTT EVANS, 51
Blaine, Tenn.
Convicted:
- Traveling with the intent to engage in illicit sexual conduct, 1 count
Sentenced:
- 96 months in prison
- 15 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tax Preparer Sentenced for Filing False Tax Returns Using Names of Inmates, OthersRead the Press Release
KANSAS CITY, KAN. – A Kansas City tax preparer has been sentenced to 37 months in federal prison for filing false tax returns using the names of prison inmates and others, U.S. Attorney Barry Grissom said Wednesday.
Prayshana Washington, 28, Kansas City, Kan., pleaded guilty to one count of preparing false income tax returns and one count of aggravated identity theft. In her plea, she admitted that from 2012 to 2015 she was in the business of preparing individual income tax returns for clients, who generally paid between $500 and $1,000 for her services. She admitted:
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Filing tax returns for clients containing false claims about dependents, household help income, education credits and American Opportunity Credits.
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Directing the IRS to deposit fraudulent returns onto prepaid debit cards and mail them to addresses she controlled.
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Obtaining names, dates of birth and Social Security numbers for prison inmates and preparing fraudulent income tax returns in their names.
Grissom commended the Internal Revenue Service, Assistant U.S. Attorney Scott Rask and Matthew Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, for their work on the case.
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Shepherdsville Woman Guilty of Stealing $243,000 from Bullitt County EmployerRead the Press Release
Kathleen Marie Farias admits using employer’s funds to pay more than $243,000 in personal expenses over five year period
LOUISVILLE, KY – United States Attorney John E. Kuhn, Jr. announced the guilty plea of Kathleen Marie Farias to charges related to the theft of over $243,000 from her Bullitt County employer, before Judge Greg Stivers in U.S. District Court.
Farias, 53, a resident of Shepherdsville in Bullitt County, entered a guilty plea yesterday, to seven counts of wire fraud in the June 17, 2015 indictment. According to the indictment and to facts admitted by Farias in open court, from June 18, 2009 through September 22, 2014, Farias was employed as the office manager for Prestige Plastics Technology LLC, and was responsible for the business’ accounts payable. Farias used funds from the business’ account to make online bill payments of $243,257.06 for her own personal expenses, which included payments to charge cards and mortgage processors.
The court entered an agreed order of restitution setting forth $243,257.06 as the amount Farias is responsible to repay to her former employer.
If Farias had been convicted at trial, the maximum potential penalties were 140 years in prison, a $1,750,000 fine, and a three year period of supervised release.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and is being investigated by the Federal Bureau of Investigation, Louisville Division.
Farias is scheduled for sentencing before Judge Stivers on April 19 in Louisville, Kentucky.
Seven California Residents Charged with Operating Boiler Room Mortgage Loan Modification SchemeRead the Press Release
New Haven, Conn – A federal grand jury in New Haven has returned an indictment charging seven California residents with conspiracy and fraud offenses stemming from an alleged scheme to defraud homeowners across the United States who were seeking mortgage loan modifications. The 14-count indictment was returned under seal on January 21 and all seven defendants were arrested this morning.
Charged in the indictment are:
ARIA MALEKI, 33, of Santa Ana, Calif.
MEHDI MOAREFIAN, a.k.a. “Michael Miller,” 36, of Irvine, Calif.
KOWIT YUKTANON, a.k.a. “Eric Cannon,” 31, of Huntington Beach, Calif.
CUONG HUY KING, a.k.a. “James Nolan” and “Jimmy, 32, of Westminster, Calif.
DANIEL SHIAU, a.k.a. “Scott Decker,” 30, of Irvine, Calif.
SERJ GEUTSSOYAN, a.k.a. “Anthony Kirk,” 33, of Santa Ana, Calif.
MICHELLE LEFAOSEU, a.k.a. “Michelle Bennett,” 41, of Huntington Beach, Calif.The defendants will make initial appearances at 2:00 p.m. (PST) in federal court in Santa Ana, California, before U.S. Magistrate Judge Douglas F. McCormick. They are scheduled to be arraigned on February 17 before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, Connecticut.
In association with today’s arrests, law enforcement seized approximately $350,000 from various bank accounts, approximately $362,000 from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
“As the indictment alleges, these seven defendants preyed on struggling homeowners in Connecticut and across the United States, falsely offering mortgage relief in exchange for thousands of dollars that the victims clearly could not afford to spend,” said Deirdre M. Daly, U.S. Attorney for the District of Connecticut. “I thank our federal and state law enforcement partners in New England, New Jersey, California and Oklahoma for investigating this matter, shutting down this alleged scam and arresting these seven defendants.”
“Some frauds are complex with multiple dimensions, but our agents coupled with all law enforcement multipliers will inevitably uncover the scheme,” said Terence Opiola, Special Agent in Charge of Homeland Security Investigations (HSI) in Newark. “I commend all of our partners for a job well done.”
“These individuals allegedly took advantage of the national mortgage crisis,” said Shelly A. Binkowski, Postal Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “These arrests clearly demonstrate that those who target hardworking homeowners in today’s challenging economy will be held accountable. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation. The U.S. Postal Inspection Service will continue to investigate these crimes to protect consumers and our nation’s mail system from being used for illegal or dangerous purposes.”
“The arrests and charges announced today serve to remind the public that we will continue the important work of investigating mortgage industry professionals who deceive and defraud homeowners, HUD’s Federal Housing Administration, and mortgage lending institutions to satisfy their greed,” said Christina Scaringi, Special Agent in Charge, HUD OIG, Northeast Region. “As alleged, the conduct of these defendants is particularly troubling as it is yet another reminder of the profit schemes designed to enrich themselves at the expense of lenders and government programs designed to help citizens find their way out of the mortgage crisis of the late 2000’s. We thank our law enforcement partners and the U.S. Attorney’s Office for this joint effort in ensuring these defendants are brought to justice.”
“These individuals are alleged to have engaged in a scheme that deceived and victimized homeowners at a time when the victims were most vulnerable as they were working to stay in their homes,” said Leslie DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General. “We are proud to work with our law enforcement partners on this case and will continue to work with them to bring to justice all fraudsters who attempt to take advantage of unwitting victims.”
“This indictment highlights the collaborative effort of law enforcement across this country to protect home owners and potential buyers against financial fraud,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation. “These seven individuals ultimately failed at attempts to avoid law enforcement by changing the names of their business. Despite the name changes, the mission of profit by deceit remained the same. We will pursue mortgage and financial fraud utilizing all local, state and federal resources available.”
According to the indictment, the defendants jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modification services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
The indictment alleges that, acting as representatives of these entities, the defendants and their co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
The indictment alleges that the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners did not qualify for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
The indictment further alleges that the defendants used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
According to the indictment, the defendants routinely ignored cease and desist orders directed at them, including a December 17, 2013, order from the State of Connecticut Department of Banking to cease and desist from charging advance fees to Connecticut residents for mortgage modification services.
The indictment alleges that MALEKI presided over the entire structure of this scheme, that MOAREFIAN, YUKTANON, KING, SHIAU and GEUTSSOYAN acted as “closers,” and that LEFAOSEU was the head of the processing team.
The indictment charges all of the defendants with conspiracy to commit mail and wire fraud. In addition, MOAREFIAN, YUKTANON, KING, SHIAU, GEUTSSOYAN and LEFAOSEU are each charged with one or more counts of mail fraud, and MOAREFIAN, YUKTANON, KING and SHIAU are charged with one of more counts of wire fraud.
If convicted, the defendants face a maximum term of imprisonment of 20 years on each count, and up to an additional 10 years of imprisonment for participating in a crime that involved telemarketing fraud and victimized 10 or more persons over age 55.
This matter is being investigated by U.S. Department of Homeland Security – Homeland Security Investigations, the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Avi M. Perry and Sarah P. Karwan, with assistance from Assistant U.S. Attorney Joshua Robbins of the U.S. Attorney’s Office for the Central District of California.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Sedalia Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Shane Scott Longie, 39, of Sedalia, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Sept. 1, 2015, Longie pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possess methamphetamine with the intent to distribute in Pettis County, Mo., from August 2012 to March 2013. A confidential informant provided information that Longie was selling multiple ounces of methamphetamine in Sedalia each week. An undercover law enforcement officer purchased a total of 56 grams of methamphetamine from Longie on two occasions in November 2012 and March 2013.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Sedalia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sebago Man Sentenced to Two Years of Probation for Interstate Theft of NarcoticsRead 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 Jeffrey P. Wheeler, Jr., 31, of Sebago, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to two years of probation for theft from interstate shipments. Wheeler also was ordered to pay $1,376.28 in restitution. He pleaded guilty on September 28, 2015.
Court records reveal that between December 2013 and February 2014, Wheeler was employed as a delivery truck driver for United Parcel Service (UPS). During this period, Wheeler stole several shipments of prescription narcotic medications that had been shipped via UPS from the Veterans Administration medical facility in Togus, Maine to outpatient veteran clients.
This case was investigated by the Criminal Investigations Division of the U.S. Department of Veterans Affairs, Office of Inspector General.
Sabinal Income Tax Return Preparer Sentenced to Federal PrisonRead the Press Release
In Del Rio today, Mary Davis Reyes, owner and operator of Fast Tax in Sabinal, TX, was sentenced to 30 months in federal prison for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter in San Antonio.
In addition to the prison term, United States District Judge Alia Moses ordered that Reyes pay $87,371.08 restitution to the Internal Revenue Service and be placed on supervised release for a period of one year after completing her prison term.
On November 19, 2014, Reyes pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. By pleading guilty, Reyes admitted that in April 2009, she knowingly prepared a false and fraudulent income tax return which claimed a $5,673 refund for a client.
According to court records, during tax years 2007 through 2009, Reyes provided false information under the Earned Income (EIC) Provisions of the tax code in order to maximize her clients’ refunds. The IRS-CI investigation determined that Reyes aided and assisted in the preparation and filing of a number of similar false tax returns with a combined loss of $87,371.08.
“Today’s sentencing of Mary Davis Reyes is a reminder to honest taxpayers to take care when choosing a tax return preparer,” said IRS-Criminal Investigation San Antonio Special Agent in Charge William Cotter. “Reyes’ Fast Tax service was in the business of trying to pull a fast one on the IRS. Putting abusive return preparers out of business is a top priority for IRS-CI. Taxpayers looking for tax preparation information are encouraged to visit IRS.gov.”
Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
Rochester Man Sentenced in Sex Trafficking CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr., announced today that Daniel Tanck, 33, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to 150 months in prison and 10 years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Tanck placed an ad on Backpage.com for a minor female victim to engage in prostitution activities. The defendant took pictures of the victim for the Backpage.com ad at his residence on Emerson Street in Rochester. Tanck also transported the victim, who was under 15 years old, for outcalls to service customers.
Tanck was arrested along with Robert Palermo. Palermo was sentenced to 135 months in prison for attempting to hire a hit man to murder the victim in this case.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, the Rochester Police Department, and Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Riceville Man Sentenced to over 11 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced January 22, 2016 to over 11 years in federal prison.
Adam Haacke, age 27, from Riceville, Iowa, received the sentence after an October 26, 2015 guilty plea to one count of possession of child pornography. At the plea hearing, Haacke admitted that, between 2014 and 2015, he knowingly possessed child pornography on a hard drive.
Haacke was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Haacke was sentenced to 135 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Hancock County Sheriff’s Office, the Mitchell County Sheriff’s Office, and the Mason City Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2029.
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Prior Felon from Artesia Pleads Guilty to Federal Narcotics Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Floyd Albert Sherrell, 33, of Artesia, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking and firearms charges under a plea agreement with the U.S. Attorney’s Office.
Sherrell was arrested on Sept. 1, 2015, on an indictment charging him with unlawfully possessing firearms on June 10, 2014, and distributing methamphetamine on June 12, 2014. Both offenses took place in Eddy County, N.M. At the time, Sherrell was prohibited from possessing firearms or ammunition because he previously had been convicted of larceny of a firearm and burglary. The indictment also included forfeiture allegations requiring Sherrell to forfeit $1,300.00 to the United States.
During today’s hearing, Sherrell pled guilty to a felony information charging him with being a felon in possession of firearms and distribution of methamphetamine. In entering his guilty plea, Sherrell admitted that on June 10, 2014, he sold four firearms to an undercover law enforcement agent, and on June 12, 2014, he sold 25 grams of pure methamphetamine to an undercover law enforcement agent.
At sentencing, Sherrell faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Owner of San Franciso Business Pleads Guilty to Filing False Tax ReturnRead the Press Release
SAN FRANCISCO – Sean Love was charged and pleaded guilty to filing a false federal income tax return, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Michael T. Batdorf.
In pleading guilty, Love, 46, of San Francisco, admitted he owned and operated Love Painting, a San Francisco-based sole proprietorship that provided painting services in and around the Bay Area. For the 2009 tax year, Love informed his tax return preparer that Love Painting had received $391,810 in gross business receipts during 2009. Love knew the return preparer would use that figure to report the gross business receipts on Schedule C of his 2009 federal income tax return and that his gross receipts were underreported by an additional $357,135. As a result of underreporting the gross business receipts that should have been reported on Schedule C of his 2009 federal income tax return, additional tax was due and owing to the Internal Revenue Service for his 2009 federal income tax liability in the amount of $119,839. On January 7, 2016, Love was charged by information with filing a false return in violation of 26 U.S.C. §7206(1).
Defendant’s sentencing hearing is scheduled to take place in San Francisco on June 14, 2016, before the Honorable Richard Seeborg, United States District Judge. The maximum penalty for filing a false tax return in violation of 26 U.S.C. § 7206(1) is 3 years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Orofino Man Admits Illegal Gun PossessionRead the Press Release
COEUR D'ALENE - Stephen C. Walker, 23, of Orofino, Idaho, pleaded guilty today to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Walker was indicted by a federal grand jury in Coeur d'Alene on June 16, 2015.
According to the plea agreement, Walker admitted that on October 29, 2014, he had a .22 caliber firearm in his back pocket. The defendant was prohibited from possessing a firearm due to a previous felony conviction for burglary. The defendant was contacted by police around midnight, in an area that had been subjected to burglaries the night before.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for May 10, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by the Orofino City Police Department, the Nez Perce Tribal Police, FBI and ATF.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Operator of Two Macon Co. Companies Pleads Guilty to Securities Fraud and Money Laundering Charges for Defrauding Commodities Trading Investors of Approximately $2.5 MillionRead the Press Release
ASHEVILLE, N.C. – The operator of two companies located in Franklin, N.C. pleaded guilty on Monday, January 25, 2016, to fraud by commodities pool operator and concealment of money laundering charges, for defrauding his investors of approximately $2.5 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, in making today’s announcement.
According to the criminal bill of information filed on January 12, 2016, and related plea documents, beginning in at least August 2011, Barry Carlton Taylor, 64, of Franklin, N.C., solicited investment funds from at least 18 victims totaling approximately $2.5 million. Taylor operated two limited liability companies in Franklin, N.C., “OTC Investments, LLC” (OTC) and “Forex Currency Trade Advisors, LLC” (FCTA). According to filed documents, Taylor misrepresented to his investor victims that he was an expert in the foreign currency exchange market (FOREX) and that their investments would be pooled into trading accounts which he would manage and use to invest in FOREX. Taylor also falsely told his victims that he had created a computer software system that could track the FOREX market, which enabled him to make investments that generated very high rates of return, as much as 2.5% per month.
According to court records, even though Taylor opened and maintained FOREX trading accounts in the names of his two companies neither company was registered as a commodity pool operator. Court records also show that Taylor collected money from the individual victim investors and deposited the funds into these trading accounts, but he then withdrew more than half of the victims’ money and lost the rest due to trading losses, fees and commissions. According to court records, by April 2015 there was very little or no investor funds remaining in the trading accounts Taylor controlled.
According to court records, Taylor concealed the losses from his investors by sending the victims false monthly statements that fraudulently represented that the investors’ principal was intact and that they were realizing profits as promised. Court records also indicate that Taylor used money from other principal investors to make Ponzi-style payments to investors who had asked Taylor to withdraw their profits on their promised returns. Taylor also convinced some of the investors to reinvest their “commissions” rather than accepting payments.
In furtherance of the fraudulent scheme, court records show that Taylor used a number of lies to further induce investors and to conceal the fraud. For example, in January 2015, Taylor sent his customers fraudulent emails claiming that he had halted FOREX trading due to events involving the Swiss National bank. In another example, court records show that Taylor created a fictitious entity and a fictitious person in order to send lulling emails to calm his investors, and later lied to victims telling them he was considering taking legal action against this fictitious individual who was supposedly responsible for their trading losses.
Contrary to promises made to his victim investors, Taylor diverted over half a million dollars of the victims’ investment funds and used them to cover personal expense, such as restaurants, entertainment and shopping, among others.
Taylor was released on bond following his guilty plea. The fraud by commodities pool operator charge carries a maximum prison term of 10 years and a $1 million fine. The concealment money laundering charge carries a maximum prison term of 20 years and a $500,000 fine. A sentencing date for the defendant has not been set.
The case is being investigated FBI. In making this announcement, U.S. Attorney Rose also thanked the U.S. Commodities Futures Trading Commission for their invaluable assistance in this investigation.
The prosecution is being handled by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville.
Operation Green Giant: Muskogee Woman Sentenced to 41 Months for Drug ConspiracyRead the Press Release
“OPERATION GREEN GIANT”
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ANDREANA LYNN HILL, age 38, of Muskogee, Oklahoma was sentenced to 41 months imprisonment, followed by 4 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B).
The Indictment alleged that the defendant and others coordinated and orchestrated the transportation of cocaine from source locations to the Eastern District of Oklahoma and used telephones, cellular and otherwise, to conduct and carry out the organization’s objectives.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department and the United States Marshals Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal prison at which she will serve her nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Onondaga County Woman Pleads Guilty to Theft of Pension FundsRead the Press Release
SYRACUSE, NEW YORK–Lorraine Lorini, 55, of Nedrow, New York, pleaded guilty to one felony count of theft of government money, announced United States Attorney Richard S. Hartunian. Lorini will be sentenced in June and faces up to ten years in prison and a fine of up to $250,000, although under the United States Sentencing Guidelines her actual sentence may be less.
Lorini admitted that she applied for and received pension benefits from the Pension Benefit Guaranty Corporation (PBGC), an independent agency of the United States, on behalf of her mother, who was already deceased. Lorini also admitted that she collected more than $37,000 in pension benefits in her deceased mother’s name and that she retained this money for her own use. As part of her plea, Lorini agreed to make full restitution to PBGC.
This case was investigated by the Office of Inspector General for PBGC, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.
New York State Court Officer Arrested for Robbery ConspiracyRead the Press Release
Earlier today, Nicholas Giovatto, a New York State Court Officer, who had been assigned to the Bronx County Supreme Court, was arrested and charged with robbery conspiracy and related firearm charges by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the New York City Police Department’s (NYPD) Police Impersonation Investigation Unit.[1] The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Steven I. Locke, at the United States Courthouse, 100 Federal Plaza, Central Islip, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Delano A. Reid, Special Agent in Charge, New York Field Division, ATF, and William J. Bratton, Commissioner, NYPD.
“Law enforcement officers who violate their oath to protect the public, whether inside or outside the courthouse, will be held accountable for their actions. No one is above the law,” stated United States Attorney Capers.
“As alleged, the defendant - on more than one occasion - misused his position of trust when he posed as a law enforcement officer to commit home invasion robberies. The defendant apparently believes that a life of crime would be more beneficial than one of protecting and serving. I suspect that now that he has been indoctrinated into the federal judicial system, he will quickly realize he made the wrong choice,” stated ATF Special Agent in Charge Reid.
“This arrest demonstrates that there is no tolerance for corruption at any level. I commend the work of the members of the NYPD Police Impersonation Investigation Unit, the agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the prosecutors of the United States Eastern District who are involved in this investigation,” said Police Commissioner Bratton.
According to the complaint, between December 2011 and March 2012, Giovatto was a member of a robbery crew that conspired to commit armed home invasion robberies of narcotics dealers on Long Island and in Queens. On December 20, 2011, Giovatto and another member of his crew entered a residence in Queens, New York, by falsely identifying themselves as police officers and claiming they had a search warrant for the premises. Upon entering the residence, Giovatto brandished a firearm, while his co-conspirator handcuffed the victim. They then ransacked the premises and stole more than $30,000 and several pieces of jewelry. Giovatto and his co-conspirator targeted this location for robbery because one of the residents was believed to be a narcotics trafficker.
Similarly, the complaint charges that, on March 10, 2012, Giovatto and another member of the robbery crew attempted to enter a residence in Queens, New York, in order to rob the occupants who they believed were involved in marijuana trafficking. Giovatto and his co-conspirator falsely identified themselves as police officers but were denied access to the residence by the intended robbery victims.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and Grace M. Cucchissi are in charge of the prosecution.
The Defendant:
NICHOLAS GIOVATTO
Age: 37
New York, New YorkE.D.N.Y. Docket No. 16-MJ-51 (AKT)
[1] The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Charged with Great Bend Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton indicted Robert Meader, age 31, of Liverpool, New York, yesterday for committing the robbery of the NBT Bank, Route 11, Great Bend, Pennsylvania.
The Grand Jury indictment alleges that Meader robbed the NBT Bank on October 13, 2015, and took $14,147 in United States Currency.
According to U.S. Attorney Peter Smith, the indictment was unsealed today following the arrest of Meader in New York. Meader appeared before U.S. Magistrate Judge Karoline Mehalchick and was detained pending trial. He is presently being held at the Lackawanna County Jail in Scranton.
The case was jointly investigated by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Onondaga County Sheriff’s Office, New York. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Hampshire Couple Indicted in $2 Million Union FraudRead the Press Release
BOSTON – A husband and wife who operated an asbestos removal business were arrested today in connection with a fraudulent “double breasted shop” scheme aimed at enabling them to defraud the Massachusetts Laborers Benefit Fund (MLBF) of more than $2 million. A “double breasted shop” is a business which enters into a collective bargaining agreement with a union while at the same time seeking to avoid its contractual obligations by operating an alter ego non-union company.
Christopher Thompson and Kimberly Thompson, both 52, of Windham, NH, were indicted on 18 counts of mail fraud, one count of benefit fund embezzlement, and 18 counts of filing false documents with an ERISA fund. Also charged are the two corporate entities used by the Thompsons to perpetrate the fraud: AQE, Inc. and Air Quality Experts, Inc. The Thompsons will have an initial appearance before U.S. District Court Magistrate Judge Marianne B. Bowler at 3:00 p.m.
According the indictment, the Thompsons employed members of Tewksbury Local 1421 of the Laborers International Union of North America. The Thompsons allegedly paid members of Local 1421 for jobs which required union participation from the AQE, Inc. payroll which was a union signatory corporation. When the jobs did not require a union signatory company, the Thompsons paid the union members from the Air Quality Experts, Inc. payroll. In these instances, the union members did not receive union rates, and benefits were not paid by the Thompsons to the MLBF which provides medical and pension benefits to 8,000 laborers and their families in Massachusetts. The Thompsons allegedly sent “remittance reports” to the MLBF which failed to report thousands of hours worked by members of Local 1421. By significantly under reporting the hours worked by union members, the Thompsons failed to pay over $2 million to the MLBF.
The mail fraud charges each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the loss or gain from the offense. The benefit fund embezzlement and false statements charges each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the loss or gain from the offense. 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; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Susan Hensley, Regional Director of the Department of Labor, Employee Benefits and Security Administration, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr., Chief of Ortiz’s Public Corruption Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mother and Son Named in Federal Grand Jury Indictments that Allege Smuggling of Ammunition and Firearm Parts to PhilippinesRead the Press Release
LOS ANGELES – A Long Beach woman and her son have been named in federal grand jury indictments that charge them with illegally shipping hundreds of thousands of dollars’ worth of firearms parts and ammunition to their native Philippines – munitions that were concealed in shipments they falsely claimed to be household goods.
Marlou Mendoza, 60, and Mark Louie Mendoza, 30, are named in separate indictments that were returned by a federal grand jury on December 10.
Marlou Mendoza was arrested last week at Los Angeles International Airport as she returned from a trip to the Philippines. The case against Marlou Mendoza, which charges her with illegally shipping ammunition, was unsealed after she was taken into custody on January 20 by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Meanwhile, Mark Mendoza, who is a citizen of the Philippines, remains at large and is believed to be in the Philippines. The United States Attorney’s Office today learned that a federal judge has unsealed the case against Mark Medoza, who is named in an eight-count indictment that charges him with conspiracy, the unlawful export of munitions, smuggling and money laundering.
Mark Mendoza, who was the president of a “tools and equipments” company known as Last Resort Armaments, ordered more than $100,000 worth of ammunition and firearms accessories, much of which was delivered to his parent’s Long Beach residence over a six-month period in 2011. The items that Mark Mendoza ordered included parts for M-16 and AR-15-type rifles, and these parts are listed as defense articles on the United States Munitions List. Pursuant to the Arms Export Control Act, items on the Munitions List may not be shipped to the Philippines without an export license issued by the Department of State.
The money laundering charge against Mark Mendoza alleges that during the first six months of 2011, Mark Mendoza transferred more than $650,000 in proceeds generated by the illegal ammunition exports from an account in the Philippines to a money remitter in Los Angeles.
Marlou Mendoza is named in a three-count indictment that accuses her of failing to provide the required written notice to freight forwarders that she was shipping ammunition. The indictment cites three instances in 2011 when Marlou Mendoza allegedly shipped tens of thousands of rounds of .22-caliber ammunition and bullets.
“The Arms Export Control Act is designed to keep weapons out of the hands of people who may act against the interests of the United States,” said United States Attorney Eileen M. Decker. “The weapons shipments charged in the indictments allowed firearm parts and ammunition to leave the United States and travel to the Philippines, where they could have been sold to anyone. Controlling the trafficking of weapons abroad is critical to protecting American interests abroad.”
The charges against the Mendozas are the product of a joint probe by HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that began in 2011 after U.S. Customs and Border Protection (CBP) officers uncovered a cache of ammunition and firearms parts in an outbound crate being shipped by Marlou Mendoza that had falsely been declared to be household effects. In July 2011, CBP and the Philippine Bureau of Customs (BOC) intercepted and seized three separate shipments from Last Resort Armaments containing approximately 180,000 rounds of .22-caliber ammunition, and more than three dozen receivers for AR-15 and M-16 assault rifles. In November 2012, specials agents with HSI and ATF special agents executed a search warrant at a location associated with Last Resort Armaments, seizing more than 120,000 rounds of .22-caliber ammunition, along with AR-15 trigger assemblies, magazines, sights and rifle barrels.
“The ammunition and accessories seized in this case represent quite an arsenal. Once these goods reached the Philippines, we can’t be certain where they wound up – whether it’s in the hands of hobbyists or those with more menacing intentions,” said Joseph Macias, Special Agent in Charge for HSI Los Angeles. “That’s why such exports are closely regulated, to help prevent sensitive items from falling into the hands of those who might seek to harm America or its interests.”
ATF Los Angeles Special Agent in Charge Eric D. Harden said, “ATF is making clear that it if you are engaged in the business of selling firearms or dealing in munitions, you must comply with industry standards and regulations, no matter where you conduct your business – from a store, at gun shows, or over the Internet.”
Anne Maricich, Acting Director of Field Operations for CBP in Los Angeles, commented: “CBP’s LA/LB Seaport Outbound Team’s expertise in reviewing manifests and determining which shipments to physically inspect are noteworthy. One pattern they encounter is a significant number of illegal firearms, firearms parts and ammunition manifested as ‘household goods and personal effects’ destined for the Philippines. In this case, they flagged such a shipment and seized a substantial quantity of rounds, bullets, weapon parts and accessories in it – which all allegedly lacked required licenses or exemptions in violation of International Traffic in Arms and Export Administration Regulations. It’s rewarding when our partnerships with HSI and ATF advance from intercepting to halting illegal schemes that could jeopardize the public’s safety.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Marlou Mendoza was arraigned in federal court on January 20 and was ordered released on a $10,000 bond pending trial, which is scheduled for March 1 before United States District Judge George H. Wu. If convicted of all three counts contained in the indictment, she faces a statutory maximum penalty of 15 years in federal prison.
Mark Mendoza is charged with conspiracy, three counts of unlawful export of munitions, three counts of export smuggling and one count of money laundering. If he was convicted of all counts in the indictment, Mark Mendoza would face a statutory maximum sentence of 115 years in federal prison.
Minneapolis Man Pleads Guilty to Transporting Woman for ProstitutionRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Jan. 26, 2016, Ronnel Johnson, 31, Minneapolis, Minn., pled guilty before U. S. District Judge Ralph R. Erickson to One Count of Transportation for the Purposes of Prostitution.
This case came to the attention of law enforcement after the North Dakota Highway Patrol stopped a rental vehicle driven by Johnson on I-94 near Valley City, North Dakota. Johnson and his female passenger were traveling from Minneapolis, Minnesota, to Williston, North Dakota. When interviewed by law enforcement during the traffic stop, Johnson and his passenger gave conflicting stories about the purpose of their trip to Williston. A subsequent search of the vehicle revealed cell phones which contained text messages sent and received by Johnson that revealed that he was involved in directing prostitution. Johnson’s cell phone also revealed sexually explicit photographs of at least two women that were identical to photographs that ran in backpage.com advertisements for commercial sex in western North Dakota.
One such victim depicted in photographs that were recovered from Johnson’s cell phone and the backpage.com advertisement reported that Johnson had previously transported her to Williston, North Dakota, for the purpose of prostitution.
Sentencing has tentatively been set for April 18, 2016, at the U. S. District Court in Fargo. Johnson could face up to 10-years in prison, lifetime supervised release, and/or a $250,000 fine.
This case was investigated by the North Dakota Highway Patrol, North Dakota Bureau of Criminal Investigation, Minneapolis Police Department, and the Federal Bureau of Investigation.
Assistant U. S. Attorney Jennifer Puhl is prosecuting the case.
Miami Man Sentenced for Synthetic Drug Distribution and Firearm ConvictionsRead the Press Release
Jean Baptiste Joseph, 26, of Miami, was sentenced last week by United States District Judge Federico A. Moreno to 55 years in prison, following his trial convictions for possession with intent to distribute more than 1 kilogram of ethylone, in violation of Title 21, United States Code, Section 841; possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, Antonio Brooklen, Chief, Miami Gardens Police Department, and Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), made the announcement.
According to trial evidence and court documents, on June 5, 2015, a U.S. Marshals Task Force went to a residence in Miami Gardens, Florida, to arrest Joseph in connection with a separate criminal investigation. The U.S. Marshals took Joseph into custody in his bedroom and, as he was being arrested, they saw in plain view, a loaded AK-47 pistol in the open closet and two Ziploc bags containing more than 1 kilogram of ethylone, a synthetic narcotic, on a television stand.
The Miami Gardens Police Department’s subsequent investigation revealed that, in addition to the assault rifle and ethylone, Joseph also possessed a Ziploc bag with 70 grams of marijuana, a 100-round drum magazine (loaded with 65 AK-47 rounds of ammunition), a high capacity 9 mm magazine, two boxes of 9 mm ammunition, empty pill capsules, empty baggies with marijuana logos, a boot stuffed with money, a digital scale, and Joseph’s passport, Social Security card and Florida identification card.
During recorded phone calls following his arrest, Joseph told his associates that he was caught in his bedroom with his “stick,” which referred to his AK-47, and his “work,” which referred to the narcotics.
Mr. Ferrer commended the efforts of ATF, USMS, and the Miami Gardens Police Department in the investigation and prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Jonathan Osborne and Michael Thakur.
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
Lincoln Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 25, 2016, an Indictment was unsealed charging Zachary A. Olson, 26, of Lincoln, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between October 1, 2014, and October 27, 2015. The charge carries a possible penalty of not less than 10 years, and not more than life imprisonment, and a fine of up to $10,000,000. Following any prison term, there would be a term of supervised release of at least five years.
Olson had an initial appearance in federal court in Lincoln on January 26, 2016. He is scheduled for trial beginning on March 28, 2015. Olson is currently serving a state sentence and was ordered detained pending trial.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Las Cruces Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Robert J. Lambe, 37, of Las Cruces, N.M., pleaded guilty today in federal court to methamphetamine trafficking and firearms charges under a plea agreement with the U.S. Attorney’s Office.
Lambe was arrested on Oct. 15, 2014, on an indictment charging him with possession of methamphetamine with intent to distribute and possession of a firearm in relation to a drug trafficking crime on June 8, 2014, in Doña Ana County, N.M. The indictment was subsequently superseded on Feb. 18, 2015.
During today’s proceedings, Lambe pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and possession of a firearm by a person addicted to controlled substances. In entering the guilty plea, Lambe admitted that on June 8, 2014, he possessed 25 grams of pure methamphetamine and a handgun. Lambe further admitted that at the time, he was an unlawful drug user and was addicted to a controlled substance and was therefore prohibited from possessing a firearm.
At sentencing, Lambe faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Lambe remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Las Cruces Felon Sentenced to 70 Months for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jesse Antillon, Jr., 29, of Las Cruces, N.M., was sentenced today in federal court to 70 months in prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Jaime Montoya of the Las Cruces Police Department.
Antillon was charged in a criminal complaint on July 13, 2014, with unlawfully possessing a firearm on Nov. 6, 2013, in Doña Ana County, N.M. According to the complaint, Antillon was stopped by law enforcement on Nov. 6, 2013, based on an outstanding probation violation warrant, and was found to be in possession of a firearm and ammunition. Antillon was subsequently indicted on the same charge on March 24, 2015. Antillon was prohibited from possessing firearms or ammunition because he had previously been convicted of numerous felony offenses, including aggravated assault with a deadly weapon, child abuse, aggravated assault against a household member with a deadly weapon, possession of narcotics with intent to distribute, attempt to escape from a peace officer and battery upon a peace officer.
On Sept. 11, 2015, Antillon pled guilty to a felony information charging him with possession of a stolen firearm. In entering his guilty plea, Antillon admitted that on Nov. 6, 2013, he entered a vehicle and stole a handgun.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The case is being prosecuted as part of the federal “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 primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Doña Ana County, under this initiative.
Lake City Man Sentenced to 13 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Robert Lamar Starling (31, Lake City) to 13 years in federal prison for transporting child pornography over the Internet. He was also ordered to serve a 15-year term of supervised release and to register as a sex offender. He has been in federal custody since his arrest on May 1, 2014.
According to court documents, beginning in September 2013, FBI agents executed a series of search warrants on several email accounts around the country and determined, among other things, that a user in Lake City, Florida had uploaded images of child pornography to the Internet, using an account on a photo sharing site. Further investigation traced the account back to a residence in Lake City, where Starling resided.
On May 1, 2014, FBI agents and other law enforcement officers executed a federal search warrant at the residence. Starling was not at the residence, but was located later that morning driving his golf cart at the Suwannee Music Park & Campground in Live Oak. During an interview at his campsite, Starling stated that he had produced pornographic images of several prepubescent children. Subsequent analyses of Starling’s laptop computer revealed that it contained more than 8,000 images and over 2,000 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, the Suwannee County Sheriff’s Office, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Announces New Chief Executive Officer of Federal Prison IndustriesRead the Press Release
Attorney General Loretta E. Lynch announced today the hiring of Gary Simpson to serve as the new CEO of Federal Prison Industries (FPI).
“Today, Federal Prison Industries remains the Bureau of Prisons’ largest and most successful reentry program, helping men and women find a new sense of purpose and develop concrete skills that they can bring back to their communities,” said Attorney General Loretta Lynch. “I am pleased to welcome its new CEO, Gary Simpson – an expert in manufacturing operations with 28 years of experience. Over the next few years, Gary will spearhead a business transformation plan to expand FPI’s activities – using a business model that results in no costs to the taxpayers – to ensure that more incarcerated individuals can take advantage of this vital program.”
Gary Simpson comes to FPI with over 28 years of experience in manufacturing operations at Procter and Gamble. Simpson is an expert in the areas of cost effective product launches, operational turnarounds and sourcing optimization. He will use these skills to lead FPI’s business transformation plan.
“I’m honored for the opportunity to lead Federal Prisons Industries through this transformative period,” Simpson said. “For more than 80 years, FPI has provided job skills training to federal inmates and helped prepare them to return to their respective communities. This program has been and will continue to be, a vital part of the Department of Justice’s reentry initiatives.”
FPI is a voluntary industrial work program that operates as a wholly owned government corporation. It is the largest reentry program within the Bureau of Prisons (BOP), providing job skills training to almost 12,000 federal inmates. FPI operates without any appropriations from Congress and instead primarily relies on proceeds generated from the sale of inmate-produced goods to federal agencies, with the Department of Defense being the chief source of business.
FPI benefits not only those within the federal prison system, but society as a whole. Research has shown that participants in the program are 24 percent less likely to reoffend and are 14 percent more likely to obtain employment upon release from custody. In Fiscal Year 2014, $1 million of earnings from FPI helped inmates contribute to financial obligations including court-ordered fines, restitution and familial support.
The hiring of Simpson is one of the steps the department is taking to ensure that FPI remains a viable program in which federal offenders become productive, law-abiding citizens.
Indictment: Olathe Woman’s Schemes Included False Tax Returns, Mail Fraud and Bank FraudRead the Press Release
KANSAS CITY, KAN. – An Olathe woman was charged in an indictment unsealed today with devising a series of schemes to steal public funds by means of tax fraud, mail fraud and bank fraud, U.S. Attorney Barry Grissom said. Three other people also were charged in the case.
The indictment alleges Raquel Odegbaro, 39, owner of Cokeza Styles, an online business that sold hair products, created a series of fictitious companies and filed tax returns in the names of so-called employees that included false information about wages earned, amounts withheld and refunds due.
In addition to tax fraud charges, Odegbaro is accused of making fraudulent claims for unemployment benefits, student loans and food stamps.
Odegbaro is charged with conspiracy to defraud the United States (count one), making false claims (counts two through seven), theft of public money (counts 8 and 9, and counts 24 and 25), aggravated identity theft (counts 10, 11, 20 to 22), conspiracy to commit mail fraud (count 12), mail fraud (counts 13 through 15), making false statements (count 23), theft of public money (counts 16 through 19, and counts 24 and 25), and bank fraud (count 26 and 27).
Also charged are:
Abdirizak Aden, 32, Kansas City, Mo., who is alleged to have rented a UPS mailbox where he received loadable debit cards containing tax refunds that were obtained by fraud. He is charged with conspiracy to defraud the United States (count one), making false claims (counts two through seven), theft of public money (counts 8 and 9, and 16 through 19), aggravated identity theft (counts 10 and 11, and 20 through 22), conspiracy to commit mail fraud (count 12), and mail fraud (counts 13 through 15).
Alexander Limihagati, 33, Overland Park, Kan., who is alleged to have received tax refunds mailed to his address that were obtained by fraud. He is charged with conspiracy to defraud the United States (count one), making false claims (counts two through seven), theft of public money (counts 8 and 9), and aggravated identity theft (counts 10 and 11).
Zia Mkubi Kajanja, 40, Overland Park, Kan., who is alleged to have provided Odegbaro with Social Security numbers and personal information on individuals needed to file tax returns. He is charged with conspiracy to defraud the United States (count one), making false claims (counts two to seven), theft of public money (counts 8 and 9), and aggravated identity theft (counts 10 and 11).
Upon conviction, the crimes carry the following penalties:
Conspiracy to defraud the government (count one): A maximum penalty of 10 years in federal prison and a fine up to $250,000.
Making false claims (count two through seven): A maximum penalty of five years and a fine up to $250,000.
Theft of public money (counts 8, 9, 24 and 25): A maximum penalty of 10 years and a fine up to $250,000.
Aggravated identity theft (counts 10 and 11, and 20 through 22): A mandatory two years (consecutive).
Conspiracy to commit mail fraud (count 12): A maximum penalty of five years and a fine up to $250,000.
Mail fraud (counts 13 through 15): A maximum penalty of 20 years and a fine up to $250,000.
Theft of public funds (counts 16 through 19): A maximum penalty of 10 years and a fine up to $250,000.
False statements (count 23): A maximum penalty of five years and a fine up to $250,000.
Bank fraud (counts 26 and 27): A maximum penalty of 30 years and a fine up to $1 million on each count.
The Internal Revenue Service – Criminal Investigation, the Kansas Department of Children and Families, the U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Department of Education – Office of Inspector General, the U.S. Department of Agriculture – Office of Inspector General, and the U.S. Department of Labor, Office of Inspector General, Office of Labor and Racketeering and Fraud Investigations investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Identity Thief Sent to Prison for More Than 7 Years for Role in Credit Card and Cigarette Trafficking SchemeRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court Chief United States District Judge James C. Dever, III sentenced ALPHA OUMAR DIALLO, 24, of New York, to serve a total of 95 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, and Conspiracy to Commit Access Device Fraud. DIALLO was also ordered to make restitution to numerous victims.
According to the Indictment, DIALLO and co-conspirator Mamadou Bah were participants in a stolen credit card and cigarette trafficking scheme in 2013 and 2014. The purpose of the scheme was to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which were resold in other states. To carry out the scheme, participants acquired stolen credit card data from other conspirators and encoded the stolen data onto the magnetic strip of what appeared to be legitimate gift cards. Approximately 421 stolen credit card accounts were linked to DIALLO during the investigation of the case.
DIALLO admitted his involvement in the fraud, which included multiple fraudulent purchases of cigarettes from a gas station in Halifax County between December of 2013 and January of 2014. At the time of the fraud, DIALLO had absconded from federal supervision in Ohio relating to a prior offense of Access Device Fraud. A search of DIALLO’s residence and vehicle yielded other counterfeit credit cards and a firearm. After initially agreeing to plead guilty to the offense, DIALLO again absconded. DIALLO was later apprehended in Georgia where he attempted to escape the present charges by providing a fake name and date of birth to police.
Investigation of DIALLO’s case was conducted by the United States Secret Service, with the assistance of the Halifax County Sheriff’s Office and the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Highland Resident Pleads Guilty to Child Pornography OffensesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on January 25, 2015, Richard Hogg, 55, Highland, IL, pled guilty to a five-count Indictment charging him, in Count 1, with Distribution of Child Pornography, in Counts 2 and 3, with Receipt of Child Pornography, in Count 4, with Access with Intent to View Child Pornography, and, in Count 5, with Possession of Prepubescent Child Pornography. Hogg was ordered detained (held without bond in the custody of the United States Marshal) immediately after his plea hearing ended. His sentencing date is April 29, 2016, in East St. Louis, Illinois.
On Counts 1 through 3, Hogg faces a term in federal prison of not less than five (5) years but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life after his prison sentence. On Count 4, Hogg faces a term in prison of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. On Count 5, Hogg faces a term in prison of not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life.
The charges arose after an Intelligence Analyst with the FBI found information on the internet that Hogg had engaged in a sexually explicit chat with a person Hogg apparently believed to be a minor female, as well as other reports of Hogg soliciting minors to engage in sex acts. Based on this information, on February 3, 2015, the FBI Intelligence Analyst and a FBI Special Agent went to Hogg’s residence. Hogg admitted chatting online with a girl he believed to be sixteen years old who resided in New York, and that the chats were sexual in nature.
Hogg stated that he began viewing pornography in 2007, and that he gradually started viewing younger females. When asked if images of prepubescent children would be found on his computer, Hogg replied in the affirmative. When asked what the pictures he owned showed with respect to the minor females, Hogg replied "everything." When asked how often he chatted with young females online, Hogg said that it likely occurred a "few times a month." Hogg estimated that he had approximately 1,000 images and four videos of child pornography on his computers, and that they would be found in the "My Pictures" folder. Hogg said that the images typically included a "dad" with their children.
A forensic review of two of Hogg’s desktop computers and of an external hard drive revealed that these devices contained approximately 1,206 image and 54 video files of child pornography, with many of the images being of prepubescent children. The forensic review also indicated that, from on or about July 26, 2014, until on or about November 20, 2014, Hogg distributed image and/or video files via the Internet and that he received image and/or video files of child pornography, on July 26 and August 28, 2014, also via the Internet. Finally, the forensic review revealed that, on or about November 20, 2014, Hogg attempted to access with the intent to view an image of child pornography, via the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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 Aresources.@
The case was investigated by the Federal Bureau of Investigation=s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Health Care Agreement Announced Regarding Care Enhancements at Rehab CenterRead the Press Release
PHILADELPHIA - The Archdiocese of Philadelphia, Catholic Health Care Services has agreed to resolve allegations relating to resident care at St. Monica Center for Rehabilitation and Health Care and St. Monica Manor, announced United States Attorney Zane David Memeger. The Archdiocese of Philadelphia has agreed to improve, or has already improved, care in the following areas: physician orders; wound care and pressure ulcers; medication administration; documentation of care; and transfer and toileting of residents. Pursuant to the agreement, the Archdiocese has also agreed to pay $80,000 in addition to implementing the care enhancements. Although St. Monica Manor has been sold to Center Management Group (“CMG”), CMG has agreed to assume all duties in connection with the settlement agreement.
The matter was analyzed by the Department of Health Office of the Inspector General and Human Services and Healthcare Analyst Consultant Raymond Uhlhorn of the U.S. Attorney’s Office. The matter was handled by Assistant U.S. Attorney Veronica J. Finkelstein.
The settled civil claims are allegations only. There has been no determination of civil liability, and St. Monica Manor denies any such liability.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office by calling 215-861-8200.
Glastonbury Man Admits Embezzling $200K from New Jersey Manufacturer of Health Care SupplementsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CRAIG LARSEN, 53, of Glastonbury, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of interstate transportation of money obtained by fraud stemming from an embezzlement scheme
According to court documents and documents filed in court, LARSEN was employed by Maximum Human Performance (“MHP”), a New Jersey-based company that provided supplements for bodybuilding, strength, weight loss and fitness. In approximately November 2012, LARSEN became the head of MHP’s quality control and had authority to approve bills submitted to MHP by its vendors. Between approximately November 2013 and February 2015, LARSEN presented fraudulent invoices to MHP that falsely represented that a company he controlled, R.E.T.S., had performed quality control services for MHP when no such services had been provided. Through this scheme, LARSEN caused approximately 40 false invoices to be submitted to MHP requesting the payment of approximately $204,000 for services purportedly performed by R.E.T.S., and subsequently used his authority to approve the invoices for payment.
Judge Meyer scheduled sentencing for July 25, 2016, at which time LARSEN faces a maximum term of imprisonment of 10 years.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan Wines.
Georgia Man Sentenced to Prison for Operating an Unlicensed Money Transmitting BusinessRead the Press Release
A Columbus, Georgia resident was sentenced to serve 21 months in prison, followed by three years of supervised release and ordered to forfeit $1,357,476.18 for operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. “Pete” Peterman III for the Middle District of Georgia announced today.
According to court documents, between February 2013 and March 2014, Sawan Shah aka Sunny, owned, operated and managed several money transmitting companies in the Columbus area. Shah offered check cashing services to the public, including cashing of checks that exceeded $1,000. Shah knew that he and his companies were required to be registered with Financial Crimes Enforcement Network (FinCEN) and with the State of Georgia. Neither Shah nor any of the businesses he controlled were registered with FinCEN or the State of Georgia as a money transmitting business or as a check cashier.
As part of his plea, the defendant admitted that several individuals approached him about cashing tax refund checks that were issued in the names of other individuals. Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. Shah charged fees of between 10 and 30 percent of the value of the check, due to his knowledge that the checks were involved in tax fraud. In 2013 and 2014, Shah cashed approximately 567 federal tax refund checks that totaled $1,357,476.18. Shah admitted in plea documents that those checks were the result of fraudulent claims for income tax refunds submitted in the names of stolen identities.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman III commended special agents of Internal Revenue Service (IRS)-Criminal Investigation and the U.S. Secret Service, who investigated the case and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Fort Pierce Resident Sentenced to 75 Months in Prison for Receipt and Possession of Child PornographyRead the Press Release
A Fort Pierce resident was sentenced today to 75 months in prison by United States District Judge Robin L. Rosenberg for receiving and possessing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.
Richard Joseph Ahearn, 56, of Fort Pierce previously pled guilty to one count of receiving child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and one count of possessing child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). After his release from incarceration, Ahearn will be placed on supervised release for 10 years and will have to register as a sex offender.
According to court documents and information disclosed during the court proceedings, Yahoo! reported to the National Center for Missing and Exploited Children (NMEC) several suspected child pornography images that had been uploaded to a Flickr account. The email account and the internet protocol (IP) address associated with that account were connected to a physical address in Fort Pierce, determined to be Ahearn’s residence. The St. Lucie County Sheriff’s Office obtained state search warrants for the Flickr account and associated email accounts. Examination of those accounts revealed sexually explicit online chats with minors. It was also determined that Ahearn was employed as an Information Technology Professional with the St. Lucie County Tax Collector’s Office. After ICE-HSI joined the investigation, a federal search warrant was obtained for Ahearn’s residence and any electronic devices found therein. A subsequent search of Ahearn’s computer revealed images of sexually explicit conduct involving minors (child pornography).
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the St. Lucie County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Daniel E. Funk.
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.
Former Public Defender Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Adam Rissew, 39, a former Monroe County Public Defender currently of Rochester, NY, formerly of Medina, NY, who was convicted of possession of firearm in furtherance of a drug trafficking, was sentenced to 60 months in prison by U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on July 20, 2012, Medina police officers and members of the Orleans County Major Felony Crime Task Force searched Rissew’s then-residence at 305 Catherine Street in the Village of Medina. Officers found and seized in excess of fifty marijuana plants, paraphernalia related to the grow operation, numerous firearms and 684 rounds of various types of ammunition. Among the firearms found and seized was a loaded Glock 9mm semi automatic pistol that was secreted between Rissew’s mattress and box springs. During his plea Rissew admitted he used the pistol to protect his marijuana grow operation.
The sentencing is the result of an investigation by the Medina Police Department, under the direction of Chief Jose Avila, officers of the Orleans County Major Felony Crime Task Force, under the direction of Chief Investigator Joseph Sacco, and Orleans County District Attorney Joseph Cardone.
Former City of Chicago Transportation Official Convicted of Corruption in Awarding of Red-Light Camera ContractsRead the Press Release
CHICAGO — The former assistant transportation commissioner for the city of Chicago was convicted today on federal corruption charges in connection with the awarding of lucrative red-light camera contracts.
After a two-week trial in federal court in Chicago, the jury convicted JOHN BILLS on all counts against him. The counts include nine counts of mail fraud; three counts of wire fraud; one count of extortion under color of official right; one count of conspiracy to commit bribery; three counts of bribery; and three counts of filing false tax returns. Bills, 54, of Chicago, faces a maximum combined sentence of 304 years in prison.
U.S. District Judge Virginia M. Kendall scheduled a sentencing hearing for May 5, 2016, at 10:00 a.m.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph M. Ferguson, Inspector General for the City of Chicago; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
“By accepting bribes in exchange for influencing city contracts, John Bills deprived the city of Chicago of money and honest services,” said Mr. Fardon. “When public officials abuse their power and violate the public trust for personal gain, we will be there to hold them accountable.”
As an assistant transportation commissioner, Bills was a voting member of the city’s Request for Proposal evaluation committee, which sought vendors under the city’s Digital Automated Red Light Enforcement Program. In 2003, the committee recommended awarding contracts to Phoenix-based Redflex Traffic Systems Inc., to install cameras that automatically record and ticket drivers who run red lights. Evidence at trial revealed that from approximately 2003 to 2011, Bills used his influence to expand Redflex’s business with the city, resulting in millions of dollars in contracts for the installation of hundreds of red-light cameras. In exchange for his efforts, Redflex provided Bills with cash and personal benefits, including meals, golf outings, rental cars, airline tickets, hotel rooms and other entertainment.
Some of the benefits were given directly to Bills, while hundreds of thousands of dollars in cash was funneled to him through a friend, MARTIN O’MALLEY. Redflex hired O’Malley as a contractor and paid him lavish bonuses as new cameras were added in Chicago. O’Malley testified at trial that he often stuffed the bonus money into envelopes and gave it to Bills during meals in Chicago restaurants.
Between 2004 and 2008, Chicago paid Redflex approximately $25 million. After KAREN FINLEY became CEO of Redflex in 2007, O’Malley’s commissions escalated and Redflex was awarded a “sole-sourced” contract for another $33 million. The city then followed up that contract with another deal worth $66 million – for the installation of nearly 250 additional red-light cameras.
Bills retired from the city in 2011.
Finley, of Cave Creek, Ariz., pleaded guilty last year to one count of conspiracy to commit bribery. She is scheduled to be sentenced by Judge Kendall on Feb. 18, 2016.
O’Malley, of Worth, pleaded guilty in December 2014 to one count of conspiracy to commit bribery. His sentencing date has not yet been set.
The government is represented by Mr. Fardon and Assistant U.S. Attorneys Laurie J. Barsella and Timothy Storino.
Florida Residents Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Filed More than 860 False Tax Returns Seeking Over $1 Million in Tax Refunds
Two Miami, Florida residents were sentenced to prison for their role in a stolen identity tax refund fraud scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service (IRS) Criminal Investigation announced today.
Roland Alexis, 34, was sentenced today to 42 months in prison followed by three years of supervised release. Alexis’s co-conspirator, Jim Joseph, 31, was previously sentenced to 42 months in prison followed by three years of supervised release on Jan. 20.
“Identity theft and filing false tax returns are serious crimes that inflict tremendous damage on innocent victims,” said Acting Assistant Attorney General Ciraolo. “We will continue to work with our federal and state law enforcement partners to aggressively investigate and prosecute these crimes and, where appropriate, seek the maximum sentence available to punish the perpetrators, deter others from engaging in such behavior, and seek justice for the victims.”
According to the indictment and information disclosed in court proceedings, Joseph and Alexis conspired to file more than 860 false income tax returns claiming more than $1 million in refunds from the IRS. Alexis’s conduct resulted in a tax loss of $1.8 million; Joseph’s conduct resulted in a tax loss of $1.2 million. Joseph and Alexis each pleaded guilty in November 2015 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft, as well as one count of aggravated identity theft.
Between 2007 and July 2014, Joseph, Alexis and others filed false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. Much of the stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to obtain Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed. In late 2009, Alexis and Joseph, along with a co-conspirator, formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file fraudulent tax returns.
In addition to the prison term, U.S. District Judge William Zloch for the Southern District of Florida ordered Joseph to pay $1,225,686.12 in restitution to the IRS. Alexis was also ordered to pay $1,805,332.71 in restitution, forfeit two single family owned properties in Miami and $369,776.18 in proceeds held in a bank account.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Ferrer and Special Agent in Charge Jackson commended special agents of IRS Criminal Investigation and Homeland Security Investigations, who investigated the case and Assistant Chief Gregory E. Tortella of the Tax Division and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida, who prosecuted the case.
Florida Couple Sentenced Involving Tax SchemeRead the Press Release
St. Louis, MO – ALEXSANDR RABIKOV, a native of Belarus and permanent resident of the United States living in the Hallandale Beach, Florida area, was sentenced to 60 months for his part in a conspiracy to file false tax returns and thereby steal government funds. Rabikov’s sentence represents the statutory maximum allowed for the charged offense.
According to court documents, the conspiracy hacked into the computer system of a financial institution in the St. Louis area and obtained personal identifying information of individuals employed by that financial institution, including names, social security account information, addresses and wage information. This information was used to prepare false tax returns. Because the conspiracy possessed detailed wage information of the victims, the false tax returns closely resembled authentic tax returns because income and withholding information included in the false returns closely tracked the victims’ actual numbers.
All of the false tax returns had refunds due, which he collected and deposited into accounts that Rabikov controlled, either personally or through a network of other individuals throughout Florida, including his girlfriend and co-defendant Yulia Belomyttseva.
When agents from IRS-Criminal Investigation arrived at the couples’ beachfront apartment to arrest them, Rabikov and Belomyttseva unsuccessfully attempted to destroy evidence of their scheme by boiling and then freezing laptop computers before the investigating agents entered the apartment.
"Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law," said Karl Stiften, Special Agent in Charge of IRS-Criminal Investigation. "We continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen."
YULIA BELOMYTTSEVA, a Russian national who was also living in Hallandale Beach at the time of the offense with Rabikov, who also pleaded guilty to being part of the conspiracy, was sentenced today to 12 months and 1 day in federal prison.
Both defendants pled guilty to one felony count of conspiracy to file fraudulent federal income tax returns last October. They appeared for sentencing today before United States District Judge Catherine D. Perry.
The case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Federal Bureau of Investigation Arrests Milwaukee Man Who Planned Mass Shooting; Man Charged with Possession of MachinegunsRead the Press Release
Acting United States Attorney Gregory J. Haanstad and Special Agent in Charge Robert J. Shields of the FBI’s Milwaukee Division announced today that Milwaukee resident Samy Mohamed Hamzeh, 23, has been charged with possessing machineguns and a silencer.
According to the criminal complaint, Hamzeh had been under investigation since September 2015. The investigation revealed that, in October 2015, Hamzeh planned to travel to Jordan, enter the West Bank, and conduct an attack on Israeli soldiers and citizens living in the West Bank. Hamzeh later abandoned those plans and began to focus on conducting an attack in the United States.
According to the criminal complaint, Hamzeh has engaged in extensive conversations with two confidential sources (referred to here as CS-1 and CS-2). Those conversations, which were in Arabic, were monitored, recorded, and translated by the FBI beginning in October 2015.
During those recorded conversations, Hamzeh explained that he wanted to commit a domestic act of violence and, earlier this month, he settled on a Masonic temple in Milwaukee as his target.
On January 19, 2016, Hamzeh, CS-1 and CS-2 took a guided tour of the Masonic temple, during which they learned meeting schedules and where people would be located during meetings. In a recorded conversation after they left the temple, Hamzeh, discussed his plans with CS-1 and CS-2. In that conversation, Hamzeh reaffirmed his intention to commit an armed attack on the temple and discussed in further detail how they would carry out the attack.
Hamzeh said that they would need two machineguns so that they each would have one (Hamzeh indicated that one CS already had a machinegun), and also said that they would need three silencers:
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“We want two machineguns, you now have one, so we want two more, and we need three silencers, that’s it.Find out how much all together these will cost, and then we will march.”
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“We want two, like the machinegun you have. . . . And we need silencers. . . . Three, yes three silencers, and that’s it.”
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“. . . each one has a weapon, each one has a silencer gun, the operation will be one hundred percent successful.I am telling you, to go without silencer gun, you will be exposed from the beginning.”
Hamzeh also explained to CS1 and CS2 that, when they executed the attack at the temple, one of the three of them would have to stay at the main door while the others went upstairs to kill the people who would be meeting there:
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“one of us will stay at the door at the entrance and lock the door down, he will be at the main door down, two will get to the lift up, they will enter the room, and spray everyone in the room.The one who is standing downstairs will spray anyone he finds.We will shoot them, kill them and get out.We will walk and walk, after a while, we will be covered as if it is cold, and we’ll take the covers off and dump them in a corner and keep on walking, as if nothing happened, as if everything is normal.But one has to stand on the door, because if no one stood at the door, people will be going in and out, if people came in from outside and found out what is going on, everything is busted.”
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“As long as the one on the door understands he has bigger responsibility than the others.For your information, he has to take care of everyone around him, the comers and the one that wants to go, he has to annihilate everyone, there is no one left, I mean when we go into a room, we will be killing everyone, that’s it, this is our duty, as for the one at the door, he must have 20/20 eye vision and always alert for all the traffic around him.”
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“I am telling you, as I was saying, all three of us get in together, one will go, to the one that is staying at the reception . . . . If she was alone, it is okay, if there were two of them, shoot both of them, do not let the blood show, shoot her from the bottom, two or three shots in her stomach and let her sit on the chair and push her to the front, as if she is sleeping, did you understand?Then stay downstairs, the other two will take the lift to the third floor, go directly to the room, open the door, shoot everyone, move fast even avoiding the lift and take the stairs running down. . . . Using the stairs, the third one on the door will notice us coming down, we will go out together.No one sees anything and no one knows anything.We leave, as if there is nothing, no running, no panic, just regular walking.We’ll get three head covers with three holes in them. . . . we’ll get in all three of us together, the minute we get in, we shoot whoever is in front of us, and all have to be eliminated.One stays down and two will go up quickly.
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“And we will eliminate everyone.”
Hamzeh also explained what his objectives were in committing the attack:
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“I am telling you, if this hit is executed, it will be known all over the world. . . . Sure, all over the world, all the Mujahedeen will be talking and they will be proud of us. . . such operations will increase in America, when they hear about it.The people will be scared and the operations will increase, and there will be problems all over, because more than one problem took place, and this will be the third problem, this will lead to people clashing with each other.This way we will be igniting it.I mean we are marching at the front of the war.”
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“They are all Masonic; they are playing with the world like a game, man, and we are like asses, we don’t know what is going on, these are the ones who are fighting, these are the ones that needs to be killed, not the Shi’iat, because these are the ones who are against us, these are the ones who are making living for us like hell.”
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“Thirty is excellent.If I got out, after killing thirty people, I will be happy 100%. . . . 100% happy, because these 30 will terrify the world.”
Hamzeh made plans to purchase machineguns and silencers from two individuals who, unbeknownst to Hamzeh, were undercover FBI agents. He met with them, along with CS-1 and CS-2, on January 25, 2016. The undercover agents displayed the weapons and a silencer to Hamzeh, told him that the weapons were capable of automatic fire, and explained to him the functioning of the selector switch that allowed the weapons to fire automatically. Hamzeh agreed to a price and paid it to the undercover agents, who then handed Hamzeh a bag containing two automatic weapons and a silencer. Hamzeh carried the bag to the vehicle in which he had traveled to the meeting, and he placed the bag in the trunk of the vehicle. He then was arrested and has been charged with illegally possessing machineguns.
Acting United States Attorney Gregory J. Haanstad said, “Samy Mohamed Hamzeh devised a detailed plan to commit a mass shooting intended to kill dozens of people. He also said that he wanted this mass shooting to be ‘known the world over’ and to ‘ignite’ broader clashes. It is difficult to calculate the injury and loss of life that was prevented by concerned citizens coming forward and by the tireless efforts of the FBI and the Joint Terrorism Task Force.”
Special Agent in Charge of the FBI Robert J. Shields said “The arrest of Samy Mohamed Hamzeh is the result of a well-coordinated undercover law enforcement action, at no time was the public’s safety placed in jeopardy. I would like to commend the efforts of the Joint Terrorism Task Force which includes our local and state law enforcement partners in thwarting an attack that could have resulted in significant injury and /or loss of life.”
This case is being prosecuted by Assistant United States Attorney Paul L. Kanter.
The charges contained in the criminal complaint are only allegations; the defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt.
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Dontre McHenry Sentenced to 293 Months in Prison for Sex Trafficking Teenage Girls Throughout MinnesotaRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 26, to 293 months in prison for recruiting and sex trafficking teenage girls throughout Minnesota. MCHENRY pleaded guilty on October 17, 2014, and was sentenced today before Judge David S. Doty in United States District Court in Minneapolis.
“Human traffickers don’t care whom they victimize, as long as they can profit from it,” said acting Special Agent in Charge William Lowder, of HSI St. Paul. “HSI is dedicated to working with its law enforcement partners in all jurisdictions to identify, pursue, arrest and prosecute the predators involved in human trafficking.”
Assistant U.S. Attorney Laura Provinzino, who is in charge of human trafficking prosecutions, said: “Today, Dontre McHenry was held accountable for recruiting and trafficking the most vulnerable girls in our state—runaways, recent immigrants, and girls in foster care. As our recent anti-trafficking efforts show, protecting our children from violent and manipulative predators is a central mission for the U.S. Attorney’s Office and our law enforcement partners. We will continue to be aggressive in the prosecution of these cases to protect our children from manipulation and violence at the hands of these predators that causes them to be sold for sex.”
According to the defendant’s guilty plea and documents filed in court, from at least January 2013 until March 2014, MCHENRY recruited at least three girls under the age of 18 and prostituted them for his own financial benefit. MCHENRY advertised girls on backpage.com and in chatrooms, and made a sexually-explicit video of a 15-year-old victim. MCHENRY directed the victims about how to talk to men on chat lines, what rates to charge for various sex acts, and how to set up “dates.” The victims were instructed to, and did, give all of the money they were paid for commercial sex acts to the defendant.
According to documents filed in court, on March 13, 2014, Minneapolis police executed a search warrant at a motel room in Roseville, Minnesota, which was previously occupied by MCHENRY and one of the victims. During the search, investigators discovered, among other evidence, handwritten notes and a book entitled “Pimpology: The 48 Laws of the Game.” The handwritten notes included references to trafficking and prostitution, as well as questions that referred to recruiting and coercing minors. Numerous text message conversations from customers arranging to meet with victims to purchase sex were found on the cellphones used by the defendant and the victims.
This case was the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, the St. Paul Police Department, the Rochester Police Department, and the Roseville Police Department.
Assistant U.S. Attorneys Laura M. Provinzino and Melinda A. Williams prosecuted the case.
National Slavery and Human Trafficking Prevention Month
January is National Slavery and Human Trafficking Prevention Month, and the U.S. Attorney’s Office is proud to combine its efforts with federal, tribal, state, and local law enforcement partners to combat trafficking.
As part of that anti-trafficking effort, United States Attorney Andrew M. Luger today announced the guilty plea of PHILLIP DWAYNE LLOYD, a/k/a Marcus Strong, a/k/a Philip Dwayne Loyd, a/k/a Dwayne Smith, a/k/a Alfred Woods, a/k/a “PC,” 44, for recruiting and sex trafficking a 17-year-old girl in January 2015 and for directing and producing a video of the minor engaged in sexually-explicit conduct. LLOYD, who was indicted on May 4, 2015, pleaded guilty yesterday to sex trafficking of a minor and production of child pornography before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
Co-defendant RAQUEL MONE BELCHER, 29, also pleaded guilty yesterday to one count of conspiracy to commit sex trafficking of minors. Both defendants are expected to be sentenced on May 16, 2016 before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
This case is the result of an investigation conducted by the Anoka County Sheriff's Office, Homeland Security Investigations and the Minneapolis Police Department.
United States Attorney Andrew M. Luger today also announced the guilty plea of MYKEL LAMAR HARRIS, 25, for recruiting and sex trafficking a 17-year-old girl in late 2013. HARRIS, who was indicted on October 5, 2015, pleaded guilty yesterday to sex trafficking of a minor before Judge Donovan W. Frank in U.S. District Court in St. Paul.
This case is the result of an investigation conducted by Homeland Security Investigations and the St. Paul Police Department.
Assistant U.S. Attorney Laura M. Provinzino is prosecuting the cases.
Defendant Information:
DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 26
St. Paul, Minn.
Convicted:
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Sex Trafficking of a Minor, 1 count
Sentenced:
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293 months in prison
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Lifetime supervised release
PHILLIP DWAYNE LLOYD, a/k/a Marcus Strong, a/k/a Philip Dwayne Loyd, a/k/a Dwayne Smith, a/k/a Alfred Woods, a/k/a “PC,” 44
Minneapolis, Minn.
Convicted:
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Sex Trafficking of a Minor, 1 count
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Production of Child Pornography, 1 count
RAQUEL MONE BELCHER, 29
Minneapolis, Minn.
Convicted:
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Conspiracy to Commit Sex Trafficking of a Minor, 1 count
MYKEL LAMAR HARRIS, 25
St. Paul, Minn.
Convicted:
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Sex Trafficking of a Minor, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
JOHNSTOWN, Pa. - A citizen of El Salvador has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Walter F. Melgar, 41, of Blair County, Pa.
According to the indictment presented to the court, on Dec. 29, 2015, Melgar, an alien who had been deported from the United States on Dec. 9, 1996, was found in Blair County, Pa. He had unlawfully re-entered this Country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Court Approves Consent Decree in Clean Water Act Case Filed Against City of WaterlooRead the Press Release
CEDAR RAPIDS, IA - The city of Waterloo was sued on October 26, 2015 by the United States and the State of Iowa on multiple counts alleging violations of the Clean Water Act and Iowa law. The violations involved the illegal discharge of untreated sewage, permit violations, and violations relating to the city’s operation and maintenance of its sewer system.
On January 20, 2016, the Federal District Court in Cedar Rapids signed a consent decree between the parties. The consent decree requires the city of Waterloo to comply with the Clean Water Act and take all steps necessary to come into compliance with the Act. The consent decree requires the city to meet several benchmarks, including:
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Continuing to implement rainfall and flow monitoring and a footing drain removal program;
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Implementing a Capacity, Management, Operations and Maintenance (CMOM) Program Plan for the city’s sewer system;
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Completing targeted Condition and Capacity Assessments of the sewer system;
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Creating a Hydraulic Model of the sewer system;
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Developing a Sanitary Sewer Master Plan that proposes specific remedial measures for the sewer system; and
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Completing the remedial measures set forth in the Master Plan.
This settlement mandates that Waterloo make critical structural changes to its sanitary sewer system to improve the quality of Iowa’s waterways. The enforceable schedule established by this consent decree will ensure completion of upgrades needed to handle wet weather events.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “Leadership in the city of Waterloo should be commended for working through this difficult situation and committing to make the improvements to water quality that will result from the settlement.” Techau, however, noted that, “For years the city has been releasing raw sewer water containing pathogens into the Cedar River, threatening public health and impacting all citizens—those who rely on the Cedar River for drinking water as well as Iowans who love to fish and use the river for recreation. So this settlement is not only great news for the citizens of Waterloo but for everyone that cares about clean water.”
Techau went on to add, “This is especially true for those Iowans who live down river from Waterloo. The settlement will safeguard water quality and protect human health by ensuring much needed upgrades to the Waterloo sewer infrastructure that will reduce combined sewage overflows and the public’s exposure to harmful pathogens.”
The case was handled by the Department of Justice, Environmental and Natural Resources Division Trial Attorney Danica Anderson Glaser, Assistant United States Attorney Matthew J. Cole, Assistant Iowa Attorney General David R. Sheridan, the Environmental Protection Agency, and the Iowa Department of Natural Resources.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 6:15-cv-02087.
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Columbus Man Sentenced to 15 Years for Cocaine, Gun CrimesRead the Press Release
COLUMBUS, Ohio – William J. Pate, 45, of Columbus, was sentenced in U.S. District Court to 15 years in prison for possessing cocaine and firearms in furtherance of distributing drugs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), and Colonel Paul A. Pride, Superintendent, Ohio State Highway Patrol, announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, investigators were informed in February 2015 that Pate was actively involved in trafficking large quantities of cocaine. Upon executing a search warrant, investigators discovered more than a kilogram of cocaine and 11 firearms at Pate’s residence in Columbus, Ohio.
Pate pleaded guilty on September 11, 2015 to conspiracy to possess with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking. He has agreed to forfeit a Mercedes SUV and 11 firearms.
U.S. Attorney Stewart commended the cooperative investigation by the DEA and Ohio State Highway Patrol, as well as Assistant United States Attorneys Michael Hunter and Peter Glenn-Applegate, who are representing the United States in this case.
Columbia Man Sentenced on Federal Heroin Conspiracy ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Larry Bookman, age 62, of Columbia, South Carolina, was sentenced to 70 months imprisonment today in federal court. In August 2015, Bookman plead guilty to conspiracy to possess with intent to distribute and to distribute a quantity of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia imposed the sentence. After Bookman completes the term of imprisonment, he will be on federal supervised release for 6 years.
Bookman was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers have been charged by the Eastern District of New York for their role in the drug conspiracy and several have plead guilty. Additionally, five of Bookman’s co-defendants have plead guilty to their role in the drug conspiracy here in South Carolina and have been sentenced as follows: Eric Shawn Bradley, age 47, of Columbia, was sentenced to 210 months with 8 years of supervised release; Kenneth Crawford, age 42, of Washington, D.C., and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release; Charles Bradley, age 32, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 40, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; and Jessany Lyons, age 25, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Four other co-defendants charged in the indictment remain fugitives.
Bookman has a 1992 federal drug conviction for possession of fentanyl and a number of prior state convictions, including possession with intent to distribute marijuana (1974), unlawful possession of a pistol (1976), possession of heroin (1977), receiving stolen goods (1978), financial transaction card theft (1982/1985), possession of heroin (1989), possession of cocaine (1990), possession of heroin (1991), possession of heroin 3rd offense (2000), possession of a controlled substance (2006), assault and battery with intent to kill (2007), possession of stolen vehicle (2007), and possession of heroin 2nd offense (2008).
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, Federal Bureau of Investigation, United States Secret Service, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
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Columbia Man Sentenced for Six Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for robbing six Columbia banks, using a bicycle as his getaway vehicle.
Shaun Christopher Becker, 43, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to four years and nine months in federal prison without parole. The court also ordered Becker to pay $4,490 in restitution.
Becker, who pleaded guilty on Aug. 31, 2015, admitted that he robbed six Columbia banks between Nov. 20, 2014, and Jan. 3, 2015, using a bicycle for transportation and as a getaway vehicle.
On Nov. 20, 2014, Becker stole $3,890 from Missouri Bank II, 2500 Rangeline St. in Columbia. Becker slid a demand note across a teller counter that said, “Put all the bills in the bag, except for $1’s, be quiet, keep smiling, and nobody needs to get hurt. Thank you.” The teller complied and took the note with her to the drive through teller window, where she activated the alarm. She then closed the bag and returned it to Becker, but retained the demand note. Becker fled the bank on a dark-colored bicycle, possibly a mountain bike, and eluded capture.
On Nov. 28, 2014, Becker stole approximately $6,000 from First State Community Bank, 3200 Golden Bear Drive in Columbia. When Becker walked to the teller counter, the teller requested he remove his sunglasses. Becker ignored the teller and pulled a black bank bag from underneath his sweatshirt and laid it on the counter. He retrieved a demand note from within the bag and gave it to the teller. The note essentially stated, “Put all your large bills in the bag, keep smiling and no one will get hurt.” The teller complied and then returned both the bag and note to Becker, who calmly walked out of the bank and fled on a bicycle.
On Dec. 9, 2014, Becker stole $1,810 from UMB Bank, 1516 Chapel Hill Road in Columbia. Becker arrived at the bank riding a blue mountain bike; he entered the bank and walked to the teller counter. Upon reaching the counter, Becker, who was noticeably out of breath, slid a black bank bag and demand note across the counter toward the teller. The note was poorly written in pencil using lower case letters on the torn corner of a white piece of paper. The teller was only able to read the words “big bills” before Becker pulled the note back to himself. The teller concluded she was being robbed and gave Becker her stack of $100 bills. The teller did not include the $50 bills because she assumed they were too small, but relinquished them after Becker gave her a frustrated look. Becker collected the money from the counter, placed it into the black bag, calmly walked out of the bank, then got onto his bicycle and rode away. During the ensuing investigation, a police K-9 officer located the bicycle and a black shoulder bag which contained Becker’s clothing. The items were concealed in a wooded area behind a business located approximately a half-mile from the bank near the MKT Trail. Becker eluded capture.
On Dec. 15, 2014, Becker stole $600 from Boone County National Bank, 1916 Paris Road in Columbia. Becker arrived at the bank riding a bicycle. He laid his bike in the grass at the end of the walkway and walked into the bank. Becker immediately approached the teller counter, retrieving a black bank bag from underneath his sweatshirt as he approached. Once at the teller counter, Becker removed a demand note from the bank bag and presented it to the teller. She complied and gave the defendant $600 cash. Becker, who kept the demand note, then walked out of the bank, stuffing the bag into his pants as he departed. Once outside, he retrieved his bicycle and rode away.
On Dec. 22, 2014, Becker stole $2,000 from Regions Bank, 2114 Paris Road in Columbia. Becker arrived at the bank riding a bicycle, which he parked outside the bank. Becker walked into the bank and immediately approached the teller counter, which was protected by a bandit barrier. Becker produced a bag and a demand note and slid them under the barrier to the teller. The note read, “Put the 100’s, 50’s, and 20’s from the top drawer in the bag.” The teller complied. Becker asked for his note back then walked out of the bank, stuffing the bag into his pants as he departed. Once outside, Becker retrieved his bicycle and rode away. Fresh bicycle tracks were located on a nearby bicycle trail, but Becker eluded capture. Surveillance from a neighboring business revealed that Becker had cased the area on his bicycle prior to the robbery.
On Jan. 3, 2015, Becker stole $1,394 from Boone County National Bank, 205 S. Keene St. in Columbia. Becker immediately approached the teller counter, where he retrieved a black folder from inside his open shirt. The teller recognized Becker as the serial bank robber operating in Columbia, and immediately activated her silent panic alarm. Becker placed the folder on the teller counter where he untied and opened the folder, then laid a demand note on the teller counter. The note essentially read, “Put 50’s and 100’s in the bag, no funny business, and no dye packs or bait money, keep smiling.” The teller complied; as she stepped away to fill the folder, Becker crumpled and ate the demand note. After obtaining the money, Becker left the bank, stuffed the folder into his shirt and fled east, out of view of bank staff. Investigation revealed that Becker escaped the area on a bicycle and fled east along a paved bicycle path near the bank. Approximately three-tenths of a mile from the bank, Becker ditched his bicycle and shed his outer layer of clothing. Becker stashed the clothing, with the folder, alongside a wooded creek that intersected the bicycle path. With the money stuffed into his boots, Becker started walking to a vehicle he had staged nearby.
Responding police officers, who had seen surveillance images from five prior bank robberies committed by Becker, recognized him walking along the shoulder of the road and detained him. A jogger who was on the bicycle path was brought to the scene, and identified Becker as a suspicious person seen walking out of the woods in the vicinity of the bicycle. A police K-9 discovered clothing nearby. Becker was detained for interview by officers and transported to the Columbia Police Department for questioning. At the station, officers recovered $1,394 from Becker that had been stolen from the bank. Becker confessed to the robbery to an FBI special agent, as well as to the other five robberies. He admitted committing the bank robberies to support a costly heroin addiction.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Columbia Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Aaryon Brian Dowdy, a/k/a “Trouble,” age 25, of Columbia, South Carolina, pled guilty today in federal court. Dowdy plead guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a), and 924(e). Chief United States District Terry L. Wooten accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 3, 2014, Dowdy and another individual were involved at an altercation inside a convenience store on Farrow Road in Columbia. Evidence showed that during the altercation, Dowdy pulled a handgun and shot the other individual in the head. Dowdy then fled the scene. The incident was captured on videotape. The Columbia Police Department issued state warrants for Dowdy’s arrest and he was apprehended in Orangeburg on January 14, 2014. At the time of his arrest on January 14, 2014, Dowdy had a loaded .357 caliber handgun in his possession. The investigation revealed that the handgun was the same handgun used in the January 3, 2014, incident. Dowdy is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal state convictions for burglary 2nd degree (2 separate offenses) and attempted burglary 2nd degree.
Mr. Nettles stated that Dowdy faces a maximum of 10 years imprisonment, a fine of $250,000 and a term of supervised release of up to 3 years. However, if the district court determines that Dowdy is an armed career criminal based upon his prior state convictions, he faces a mandatory minimum 15 years imprisonment with a maximum of life, a $250,000 fine, and up to 5 years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Columbia Police Department, the South Carolina State Law Enforcement Division, and the Orangeburg Department of Public Safety and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Carlsbad Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Suzanne Marie Villa, 36, of Carlsbad, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Villa was arrested on Aug. 25, 2015, on a criminal complaint charging her with possession of methamphetamine with intent to distribute on June 12, 2015, in Eddy County, N.M. According to the criminal complaint, Villa was arrested after Pecos Valley Drug Task Force agents notified U.S. Border Patrol Agents at the Border Patrol Checkpoint on Highway 62/180 near El Paso, Texas, to be on the lookout for her vehicle based on investigation indicating that Villa would be transporting drugs to Carlsbad. The U.S. Border Patrol later seized 25.7 grams of methamphetamine and drug paraphernalia from Villa’s vehicle during a checkpoint inspection. Villa was subsequently indicted on Nov. 19, 2015, and charged with conspiracy to possess methamphetamine with intent to distribute on June 12, 2015, in Eddy County.
During today’s proceedings, Villa pled guilty to the indictment and admitted that on June 12, 2015, she was stopped by law enforcement officers and found to be in possession of 25.7 grams of methamphetamine together with other items associated with methamphetamine trafficking including a scale, plastic bags, a glass smoking pipe and $820.00 in cash.
At sentencing, Villa faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Villa remains detained pending her sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
Business Owner Sentenced for $493,000 Employment Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., business owner was sentenced in federal court today for a scheme to defraud the government by failing to pay over to the Internal Revenue Service more than $260,000 that he collected from his employees in employment taxes. Along with more than $232,000 that he failed to pay as his employer portion of the taxes, the total loss to the government was more than $493,000.
Joseph Patrick Balano, 54, of Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to two years and three months in federal prison without parole. The court also ordered Balano to pay $493,443 in restitution. Balano has been in federal custody since his pretrial release was revoked in June 2014 after he committed two crimes involving thefts.
Balano, who pleaded guilty on Aug. 3, 2015, was the owner of Global Employment Group, Inc., doing business as Staffing Connections (Global Employment) in Grandview, Mo., and Kansas City, Mo. Two earlier businesses – Labor Connections and Labor Connections II – were dissolved in 2006, ostensibly because of employment tax issues. In their place, Balano formed Global Employment in December 2006. Employees who had been working for Labor Connections and Labor Connections II began working for Global Employment. Business operations stayed in the same location.
Balano admitted that he withheld employment taxes from his employees, but instead of paying over those taxes to the government, Balano kept most of those taxes for his own personal use. Balano used the money to finance his own personal expenses and expenses for family members, including gambling, mortgage payments (residence and lake house) and car payments.
The total amount withheld from employees but not paid to the IRS from April 2008 to April 2009 was $260,770. In addition, Balano failed to pay the employer portion of the taxes to the IRS as well, in the amount of $232,672. The total amount of loss to the government was $493,443.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Buffalo Man Convicted by A Jury of Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that that a federal jury has convicted Derek McQuiller, 42, of Buffalo, NY, of possession with intent to distribute cocaine. The charge carries a maximum sentence of 30 years in prison, a fine of $2,000,000, or both.
Assistant U.S. Attorneys Edward H. White and Stephanie O. Lamarque, who handled the prosecution of the case at trial, stated that during a traffic stop on April 22, 2015, the defendant threw a plastic bag out of the passenger window. The bag was recovered and found to contain 10 individually wrapped baggies of cocaine. McQuiller threw another plastic bag out of the driver’s side window. That bag was recovered and found to contain marijuana. During a subsequent search of the vehicle, another baggie of cocaine was discovered under the passenger floor mat.
The defendant was transported to the Town of Tonawanda Police Station and three additional baggies of cocaine were found later that night under the bench where McQuiller had been booked. The defendant also was alleged to have given a baggie of cocaine to a female acquaintance earlier that night in a motel room.
McQuiller has five prior state and federal convictions, all for drug trafficking offenses.
Today’s verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.Sentencing is scheduled for May 2, 2016 at 10:00 a.m. before Judge Lawrence J. Vilardo who presided over the trial.