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Wednesday 2 December 2015
Stark County duo charged with counterfeitingRead the Press Release
A pair from Stark County were indicted for allegedly counterfeiting $20 bills, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Keith Bloomfield, 20, of Canton, and Jordan R. Custer, 20, of Canal Fulton, were charged wtih with aiding and abetting one another in making counterfeit obligations of the United States. The indictment alleges that Bloomfield and Custer, aiding and abetting one another, falsely made, forged, and counterfeited approximately 20 falsely made, forged and counterfeited twenty-dollar Federal Reserve notes, obligations of the United States, in violation of Title 18, United States Code, Sections 471 and 2.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Carmen E. Henderson, and was investigated by the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Spirit Lake Man Pleads Guilty and is Sentenced for Aggravated Sexual AssaultRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Dec. 2, 2015, Alonzo Chico, 48, St. Michael, ND, pleaded guilty to two counts of abusive sexual contact of a minor and was sentenced before U. S. District Judge Ralph R. Erickson to serve 20 years in prison. Judge Erickson also sentenced Chico to serve 10 years supervised release and to pay a $200 special assessment to the Crime Victims’ Fund.
Chico lived in the home of the child-victim’s grandmother on the Spirit Lake Reservation. Sometime between the fall of 2010 and the spring of 2011, Chico touched the child in private areas while the child lay sleeping and was startled awake. On another occasion during this same time frame, Chico grabbed the child by the arm and attempted to have the child touch him in his private area.
This case was investigated by the Federal Bureau of Investigation (FBI).
Assistant U. S. Attorney Janice Morley prosecuted this case.
South Charleston man pleads guilty to Federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pleaded guilty today in federal court in Charleston, West Virginia, to distribution of heroin, announced United States Attorney Booth Goodwin. Gavin Edwards, 32, of South Charleston, entered his guilty plea today to the federal drug charge.
Edwards admitted that on December 8, 2014, he sold approximately half a gram of heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT). Edwards completed the drug deal in the parking lot behind his apartment at 4832 Kanawha Turnpike Avenue in South Charleston. Edwards further admitted that on December 10, 2014, he sold the same confidential informant approximately 1.6 grams of heroin.
On December 16, 2014, detectives with MDENT executed a search warrant for the apartment and located over 250 grams of marijuana, over 250 grams of crack, and approximately $5,930 in cash. During the search, officers also recovered an additional $1,569 in cash that Edwards had in his pockets.
Edwards faces up to 20 years in federal prison and a $1 million fine when he is sentenced on March 16, 2016, in federal court in Charleston.
This case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
The case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Somerset County, New Jersey, Man Charged with Using Bogus Non-Profit to Deceive Seniors into Unnecessary Genetic TestingRead the Press Release
Paid Healthcare Providers to Falsely Claim Tests Were Necessary, Defrauding Medicare of More than $1 million
NEWARK, N.J. – A Somerset, New Jersey, man was arrested this morning and charged with using the non-profit The Good Samaritans of America to defraud the Medicare program by convincing hundreds of senior citizens to submit to unnecessary genetic testing, U.S. Attorney Paul J. Fishman announced.
Seth Rehfuss, 41, was charged by criminal complaint with one count of healthcare fraud. He is scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
From July 2014 and continuing through the present, Seth Rehfuss and others used The Good Samaritans of America to gain access to low-income senior housing complexes. Rehfuss and other members of the scheme claimed that The Good Samaritans of America was a “trusted non-profit” that assisted senior citizens in navigating federal benefit programs. In reality, The Good Samaritans of America was a front to present information about genetic testing. Rehfuss used advertisements for free ice cream to ensure attendance at the presentations.
In order to convince senior citizens to submit to genetic testing, Rehfuss used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing. In addition, Rehfuss claimed that the genetic testing allowed for “personalized medicine.”
As part of the scheme, defendant Rehfuss and others frequently took DNA swabs in the community rooms where the presentations took place or made arrangements to visit the senior citizen’s apartment on another day to take the DNA swab. Regardless of the timing or location of the swabbing, the DNA swab was collected without the involvement of any healthcare provider and without any determination by a healthcare provider that such testing was medically necessary or appropriate.
In order to get the tests authorized, Rehfuss used advertisements on Craigslist to recruit healthcare providers for the scheme. After entering into contractual relationships with The Good Samaritans of America, the healthcare providers received requisition forms that often included a patient’s personal information, Medicare information, medication lists and diagnosis codes. The healthcare providers were paid thousands of dollars per month to sign their names to requisition forms authorizing testing for patients they never examined and were in no way involved in the patients’ care or treatment. As a result, Rehfuss caused the Medicare program to pay more than $1 million to two clinical laboratories, from which defendant Rehfuss obtained commissions of tens of thousands of dollars.
The investigation revealed that Rehfuss and others were actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
The healthcare fraud charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, along with investigators from the United States Attorney’s Office for the District of New Jersey and the U.S. Marshals Service Asset Forfeiture Program, with the investigation leading to the charges.
The pending charges against Rehfuss are merely allegations, and he is considered innocent unless and until proven guilty.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Defense counsel: TBD
Siloam Springs Man Sentenced to over 9 Years in Prison for Distribution of Methamphetamine with a FirearmRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Manuel Patrick Camarillo, aka “Sick”, age 25, of Siloam Springs, Arkansas was sentenced yesterday to 52 months in federal prison for two counts of Distribution of Methamphetamine, and to 60 months in federal prison for one count of Carrying a Firearm during a Drug Trafficking Crime, followed by three years of supervised release. The sentences will run consecutively. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
In his plea agreement, Camarillo admitted that in April 2015 he twice distributed methamphetamine in exchange for money, and during one transaction produced a .40 caliber Ruger P94 handgun.
This case was investigated by the Fourth Judicial Drug Task Force, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Second Texas Fugitive Sentenced for Aggravated Identity Theft and Manufacturing Counterfeit CurrencyRead the Press Release
Jacksonville, Florida – Senior United States District Judge Henry Lee Adams has sentenced Joe Eugene Loving (47, Texas) to five years and five months in federal prison for manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. As part of the sentence, the Court also ordered Loving to pay restitution to the businesses he had defrauded.
According to court documents, on February 2, 2015, the Green Cove Springs Police Department received information that two individuals, later identified as Loving and John Thomas Humphreys (46, Texas), were manufacturing counterfeit Federal Reserve notes in their room at the Astoria Hotel in Clay County. The two men had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by deputies from the Clay County Sheriff’s Office. Loving was in possession of a counterfeit $100 bill at the time of his arrest.
During an interview with law enforcement, Humphreys and Loving stated that they had been involved in a drug deal in Texas in December 2014 and had been on the run ever since. They estimated printing and passing at least $10,000 in counterfeit currency. In addition, they admitted using the identities of others to do so.
During a subsequent search of their hotel room, agents located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media that had been used to manufacture the counterfeit currency.
On November 10, 2015, Humphreys was sentenced to four years and six months in federal prison for his role in this case. He was also ordered to pay restitution to the businesses he had defrauded.
A third individual, Paul Corbin Pennington, Jr., was also charged in this case for passing counterfeit currency. Pennington, a maintenance worker at the Astoria Hotel, loaned Loving and Humphreys his computer. Loving and Humphreys then used the computer to print counterfeit checks. Pennington confessed to law enforcement that he had passed counterfeit currency in Clay County. On October 13, 2015, Pennington was sentenced to 141 days in federal prison and was ordered to pay restitution to the businesses he had defrauded.
This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the U.S. Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Postal employees charged with stealing mailRead the Press Release
Two people from Northeast Ohio were charged wtih mail theft by a postal employee, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Indicted are Joseph W. Dixon, III, 36, of Parma, and Tiffany C. Miller, 26, of Cleveland.
The indictment against Dixon charges that, while he was a Postal Service employee, he stole mail from a Postal Service collection box in Brook Park.
A separate indictment against Miller charges that, while she was a Postal Service employee, she stole mail from Postal Service collection boxes in Cleveland and an envelope addressed to a resident of Euclid.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to each case, including the defendants’ prior criminal record, if any, the defendants' roles in the offenses and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These cases are being prosecuted by Assistant United States Attorney Justin Seabury Gould. The cases were investigated by the United States Postal Service, Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Philadelphia Check Cashing Agency and One Owner Charged with Money LaunderingRead the Press Release
PHILADELPHIA – Cottman Check Cashing, LP, located in Philadelphia, PA, and Steven Kessler, 50, of Cherry Hill, NJ, one of Cottman’s owners, were charged by indictment, unsealed today, with eight counts of aiding and abetting aggravated structuring of financial transactions, announced United States Attorney Zane David Memeger. Kessler was also charged with conspiring to structure financial transactions.
According to the indictment, between 2009 and 2011, Kessler conspired with a sports bookmaker, Jerold Cohen, charged elsewhere, to help the bookmaker cash 76 checks from one of his bettors, totaling approximately $670,000, without triggering a report that would have to be provided to the U.S. government. Kessler allegedly helped Cohen cash those checks at Cottman Check Cashing.
According to the indictment, Cohen obtained the 76 checks from a single bettor to settle the bettor’s losses. Cohen allegedly knew that a report would have to be filed with the government if he cashed any check over $10,000. To conceal the nature of his business and the total amount of his income, Cohen allegedly directed the bettor to write the checks in amounts just under $10,000. The bettor did as he was instructed and, because he was often in debt in an amount that far exceeded $10,000, the bettor would provide Cohen with several checks at one time, each for an amount just under $10,000. Cohen then took those checks to Cottman Check Cashing to be cashed because of his longtime friendship with Kessler. It is alleged that Cohen knew Kessler would help him by cashing the checks so as to avoid triggering a report that must be filed with the government when a cash transaction is over $10,000. Kessler’s alleged assistance included cashing the checks himself, failing to keep business records of most of the transactions, and making Cottman Check Cashing available to perform the money laundering. The indictment charges that the structured transactions were part of a pattern of illegal activity involving transactions of more than $100,000 in a 12-month period.
If convicted, Kessler faces up to 85 years in prison, three years of supervised release, a fine, a $900 special assessment, and criminal forfeiture of up to $670,175. Cottman Check Cashing faces supervised release, a fine, an $800 special assessment, and criminal forfeiture of up to $670,175.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvanian Man Pleads Guilty to Conspiracy to Smuggle Turtles out of the United States and to Using a Fictitious Name and AddressRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN TOKOSH, age 54, of Pennsylvania, pled guilty today to an indictment charging him with conspiring to smuggle turtles out of the United States, violating the Lacey Act, and using a fictitious name and address in a mailing.
According to court records, from late 2011 to the fall of 2014, TOKOSH and five other named individuals conspired to smuggle turtles from the United States and to have used false labels on packages of turtles being shipped in foreign and interstate commerce. TOKOSH is also alleged to have violated the Lacey Act, which prohibits trafficking in illegally taken wildlife, and to have used a fictitious name and address in mailings that were sent in furtherance of the scheme.
TOKOSH admitted that he was part of a group of individuals involved in capturing North American Wood turtles, which are a threatened species, from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. TOKOSH’s role in the conspiracy was to capture the North American Wood turtles from their native habitat in Pennsylvania, where it is illegal to hunt them, and then to ship them to a middleman in Covington. TOKOSH also admitted to using the alias “Jay Rockington” in an effort to disguise that he was the source of the turtles.
TOKOSH faces a maximum term of imprisonment of five years, a fine of $250,000, and up to 3 years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for February 24, 2016.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Pennsylvanian Man Pleads Guilty to Conspiracy to Smuggle Turtles out of the United States and to Using a Fictitious Name and AddressRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN TOKOSH, age 54, of Pennsylvania, pled guilty today to an indictment charging him with conspiring to smuggle turtles out of the United States, violating the Lacey Act, and using a fictitious name and address in a mailing.
According to court records, from late 2011 to the fall of 2014, TOKOSH and five other named individuals conspired to smuggle turtles from the United States and to have used false labels on packages of turtles being shipped in foreign and interstate commerce. TOKOSH is also alleged to have violated the Lacey Act, which prohibits trafficking in illegally taken wildlife, and to have used a fictitious name and address in mailings that were sent in furtherance of the scheme.
TOKOSH admitted that he was part of a group of individuals involved in capturing North American Wood turtles, which are a threatened species, from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. TOKOSH’s role in the conspiracy was to capture the North American Wood turtles from their native habitat in Pennsylvania, where it is illegal to hunt them, and then to ship them to a middleman in Covington. TOKOSH also admitted to using the alias “Jay Rockington” in an effort to disguise that he was the source of the turtles.
TOKOSH faces a maximum term of imprisonment of five years, a fine of $250,000, and up to 3 years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for February 24, 2016.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Pennsylvania Woman Convicted for Millions of Dollars in Fraudulent Sales of Telecom EquipmentRead the Press Release
NEWARK, N.J. – A Pennsylvania woman was convicted today for her role in a long-running, large-scale scheme involving the fraudulent sale of telecommunications equipment belonging to a company she worked for as a consultant, U.S. Attorney Paul J. Fishman announced.
Following an 11-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court, Juanita L. Berry, 47, of Phoenixville, Pennsylvania, was convicted of four counts of wire fraud, which caused more than $3.5 million in losses, and two counts of tax evasion for evading taxes in 2010 and 2011. The jury deliberated for 75 minutes before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
From 2008 to 2011, Berry worked as a consultant for an Indiana company that installed and removed telecommunications systems, first as a sales representative and later as the company’s vice president for major accounts. Initially, Berry worked out of the company’s Levittown, Pennsylvania, facility and, later, out of its Dayton, New Jersey, facility. The “brains” of the telecommunications systems the company installed and removed were the electronic circuit boards of varying complexity that range in price between several hundred to tens of thousands of dollars.
Berry owned a company named J. Starr Communications Inc., (J. Starr) through which she arranged her consulting agreement and allegedly operated her fraudulent scheme.
Without the knowledge or authorization of the telecommunications company’s management, Berry sold both used cards and new cards with other telecommunications equipment owned by the company as though such equipment belonged to her or J. Starr. She then pocketed the proceeds from such fraudulent sales. Berry deceived employees at the Levittown and Dayton facilities into thinking that the shipments of used cards were part of the telecommunications company’s normal course of business. Between 2008 and 2011, the Florida company that purchased the cards from Berry or J. Starr wired in excess of $3.5 million in payment to J. Starr’s bank account.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s conviction.
The government is represented by Senior Litigation Counsel Andrew Leven and Assistant U.S. Attorney Lucy Muzzy of the U.S. Attorney’s Office in Newark.
Defense counsel: David E. Schafer Esq., Lawrenceville, New Jersey
Payroll Administrator Pleads Guilty to Tax Evasion for Diverting Employees’ Wage Payments into her Personal Bank Account and Not Reporting the Money to the IRSRead the Press Release
A payroll administrator pled guilty to tax evasion for diverting employees’ wage payments into bank accounts under her control and failing to report the money as gross income to the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Rodolfo Llanes, Chief, Miami Police Department (MPD), made the announcement.
Marilyn McDaniel, 67, of Garner, North Carolina, pled guilty to one count of attempting to evade or defeat tax, in violation of Title 26, United States Code, Section 7201.
According to court documents, McDaniel was the payroll administrator for a company and her sole responsibility was to report the employee hours and pay to the company’s payroll service provider. In early 2010, a former employee contacted the company’s accountant regarding a letter from the IRS indicating that the individual worked at the company in 2008 and that the individual failed to pay taxes on that income. The company’s payroll records revealed that in 2008 there were wage payments being made to the employee, but the wage payments were not deposited into the employee’s account. Instead, the wages were deposited into McDaniel’s personal bank account.
In addition, the company’s payroll records also showed that McDaniel had submitted false wage reports on behalf of sixteen other former employees and that approximately $1.7 million in wage payments in the names of those former employees were diverted from the company’s bank accounts into accounts controlled by McDaniel and her daughter. The company’s employees did not give McDaniel permission to have checks issued in their names or have those checks deposited into her personal bank account.
McDaniel did not report or pay taxes on the stolen money that was diverted from the company into her and her daughter’s account, as she failed to file an individual tax return with the IRS for calendar year 2009. In total, McDaniel’s total tax due and owing is $547,792.14.
Sentencing is scheduled for February 8, 2016 at 3:30 p.m. before U.S. District Judge Joan A. Lenard. McDaniel faces a maximum statutory sentence of five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI, Miami Police Department and Miami-Dade State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
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.
Owner of Scott County Produce Business Pleads Guilty to Wire FraudRead the Press Release
LEXINGTON — The owner of a local produce business in Scott County, Ky., has admitted to fraudulently obtaining business loans, by falsifying information on the loan applications.
On Monday, William C. Thompson, 52, pleaded guilty, before Senior U.S. District Judge Joseph Hood, to wire fraud and making false statements on loan applications.
Thompson admitted that, in 2013, he submitted loan applications to receive thousands of dollars from federally funded agencies within the U.S. Department of Agriculture. However, in order to conceal his poor credit history, he used his son’s social security number on the applications. Thompson also made the false statements on the application to hide that he had previously filed for bankruptcy. If the agencies had known Smith’s credit history, they would not have issued him the loans.
The investigation was conducted by the U.S. Department of Agriculture, Office of Inspector General; U.S. Department of Agriculture, Farm Services Agency; and the Central Kentucky Agricultural Credit Association. Assistant U.S. Attorney Jim Arehart is prosecuting this case on behalf of the federal government.
Thompson is scheduled to be sentenced on March 7, 2015. He faces a maximum of 30 years in prison. However, the Court must consider the U.S. Sentencing guidelines and the federal statutes before imposing a sentence.
Owner and Employees of Defense Contracting Firm Charged with Conspiracy to Defraud the U.S. Department of Defense and to Violate the Arms Export Control ActRead the Press Release
NEWARK, N.J. – The owner and two employees of a New Jersey defense contracting business were charged today in connection with an alleged scheme to fraudulently acquire lucrative manufacturing contracts with the U.S. Department of Defense (DoD), U.S. Attorney Paul J. Fishman announced.
Ferdi Murat Gul, a/k/a “Fred Gull,” 39, of Turkey, was charged with one count of wire fraud conspiracy, one count of conspiring to violate the Arms Export Control Act and five counts of violating the act. Fatih Civi, a/k/a “Frank Civi,” 44, of Paterson, New Jersey, and Serap Basci, a/k/a “Sarah Basci,” 29, of Clifton, New Jersey, both naturalized U.S. citizens born in Turkey, were arrested today and each charged in a separate complaint with one count of wire fraud conspiracy and one count of conspiring to violate the Arms Export Control Act for their roles in conspiring with Gul to defraud the DoD and to export military technical drawings to Turkey without prior approval from the U.S. Department of State. Civi and Basci made their initial court appearance earlier today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Gul remains at large.
According to the documents filed in this case and statements made in court:
Gul is the principal owner, chief executive officer, and general manager of two companies: Bright Machinery Manufacturing Group Inc. (BMM), a defense contracting company in Paterson, New Jersey; and FMG Machinery Group (FMG), a purported manufacturing company with addresses in Paterson, New Jersey, and Long Island City, New York. Gul also has an ownership interest in HFMG Insaat (HFMG), a manufacturing company located in Turkey. Civi is BMM’s production manager; Basci is BMM’s sales and purchasing manager, and is responsible for handling the company’s government sales, commercial sales, and purchasing activities.
Over the past five years, BMM allegedly obtained hundreds of contracts with the DoD by falsely claiming that the military parts it contracted to produce would be manufactured in the United States. From October 2010 through June 2015, the total value of the contracts awarded to BMM under this scheme was $7.3 million.
The complaint alleges that Gul routinely submitted to DoD electronic bids that contained false representations about BMM’s purported domestic manufacturing operations. He submitted quotes to the DoD claiming that BMM would provide military goods manufactured in the United States, when in fact the company relied almost exclusively on Gul’s Turkish-based production facilities at HFMG. Gul routinely and unlawfully exported drawings and technical data, some of which was subject to U.S. export control laws, in order to secretly manufacture military parts in Turkey. Gul, Civi, and Basci then supplied those foreign-made parts to unwitting DoD customers in the United States.
The conspirators allegedly took substantial measures to conceal their illicit manufacturing activities and ongoing fraud. Gul and Basci routinely submitted forged certifications and fabricated information by e-mail to DoD representatives in New Jersey, which falsely represented that BMM and its U.S.-based subcontractors performed necessary quality control procedures in their purported domestic manufacture of military parts. Civi routinely met with DoD representatives at BMM’s Paterson facility to review and confirm the same false information that had been electronically submitted by Gul and Basci. DoD personnel were deceived into authorizing payment to BMM for military parts that were not, in fact, manufactured in the United States, in direct violation of DoD protocol and, in some instances, U.S. export control laws. The conspirators’ shipping and banking transactions were conducted in a manner to eliminate any direct links between the conspirators’ foreign manufacturing process at HFMG and their U.S. based-operations at BMM.
BMM fraudulently acquired 346 contracts from the DoD, purportedly for the domestic manufacture of military parts. Some of these contracts included the manufacture of parts for torpedoes used in U.S. Navy submarines, bomb ejector racks and armament utilized in U.S. Air Force aircraft, and firearms and mine clearance systems used by U.S. military personnel abroad. In several instances, subsequent testing by the DoD revealed that parts supplied by the conspirators had numerous design flaws and non-conformities and were unusable.
The count of wire fraud conspiracy carries a maximum penalty of 20 years in prison and a fine of $250,000. The count of conspiracy to violate the Arms Control Export Act carries a maximum penalty of five years in prison and a fine of $250,000. The counts of violating the Arms Control Export Act carry a maximum penalty of 20 years in prison and a $1 million fine.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin of the office’s Asset Forfeiture Unit, in Newark, along with the assistance of Trial Attorney David Recker of the Justice Department’s National Security Division.
The charges and allegations contained in the federal criminal complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Operator of ‘Revenge Porn’ Website Sentenced to 2½ Years in Federal Prison in Email Hacking Scheme to Obtain Nude PhotosRead the Press Release
LOS ANGELES – A Northern California man who operated the Internet’s best-known “revenge porn” website was sentenced late this afternoon to 30 months in federal prison for hiring another man to hack into e-mail accounts to steal nude photos that were later posted on his website.
Hunter Moore, 29, of Woodland, California, who operated the now-defunct isanyoneup.com, was sentenced by United States District Judge Dolly M. Gee.
In addition to the prison term, which Moore was ordered to begin serving by January 22, Judge Gee ordered the defendant to pay a $2,000 fine.
In sentencing Moore, Judge Gee called the conduct “particularly reprehensible.”
Moore pleaded guilty in February to one count of unauthorized access to a protected computer to obtain information for purposes of private financial gain and one count of aggravated identity theft.
The alleged hacker – Charles Evens, 26, of Studio City, California – was sentenced last month to 25 months in federal prison after he pleaded guilty to the same two felony counts.
Moore operated the website http://isanyoneup.com, where he posted, among other things, nude or sexually explicit photos of victims. The pictures were submitted by individuals, without the victim’s permission, for purposes of revenge, Moore admitted in court.
However, to obtain more photos for the website, Moore instructed Evens to gain unauthorized access to – in other words, to hack into – Google e-mail accounts, according to Moore’s plea agreement. Moore sent payments to Evens in exchange for nude photos unlawfully obtained from the victims’ accounts. Moore then posted the illegally obtained photos on his website, without the victims’ consent, he admitted in the plea agreement.
The plea agreement discusses one specific incident in late 2011 when Moore sent an email to Evens that stated Moore would like as many nude pictures from hacked emails accounts as possible. In response, Evens accessed a victim’s e-mail account without authorization and obtained pictures, Evens provided the pictures to Moore, and Moore paid $145.70 to defendant Evens using Paypal. One of the nude photos was posted on isnayoneup.com on December 29, 2011, according to the plea agreement.
Evens admitted that he hacked into email accounts belonging to hundreds of victims.
The investigation in this case was conducted by the Federal Bureau of Investigation.
Ohio couple charged with marijuana traffickingRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Robert Bamberger, 53, and Tammy Bamberger, 46, both of Martins Ferry, Ohio, with marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Robert and Tammy Bamberger were allegedly discovered in November 2015 in possession of marijuana in Ohio County, West Virginia. They are each charged with one count of “Possession with Intent to Distribute Marijuana.” They each face up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, and the United States Postal Inspection Service are leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Nine Methamphetamine Traffickers Sentenced to Federal PrisonRead the Press Release
STATESVILLE, N.C. – Nine methamphetamine traffickers have been sentenced over a two-day period to prison terms ranging from one to 17.5 years, as a result of two related Organized Crime Drug Enforcement Task Force (OCDETF) investigations, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Caldwell County Sheriff Alan C. Jones; Lenoir Police Chief Scott Brown; Catawba County Sheriff Coy Reid; and Hickory Police Chief Tom R. Adkins.
The following defendants were sentenced on Monday, November 30, 2015:
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Justo Manuel Gonzalez, 29, of Newton, N.C. was sentenced to 210 months in prison, followed by five years of supervised release (5:14-cr-59).
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Christopher Waylon Joyner, 31, of Sparta, N.C., was sentenced to 131 months in prison, followed by five years of supervised release (5:15-cr-69).
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Christopher Everett Triplett, 35, of Hudson, N.C. was sentenced to 75 months in prison, followed by four years of supervised release (5:14-cr-50).
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Marixa Dawn Hart, 27, of Warrensville, N.C., was sentenced to 31 months in prison, followed by three years of supervised release (5:15-cr-7).
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Paul Lewis King, Jr., 71, of North Wilkesboro, N.C. was sentenced to nine months in prison, followed by two years of supervised release, nine of which in home detention (5:15-cr-34)
The following defendants were sentenced on Tuesday, December 1, 2015:
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Anthony Lee Day, 40, of Crumpler, N.C., was sentenced to 130 months in prison, followed by five years of supervised release (5:15-cr-5).
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Brian Len Ledford, 39, of Newton, N.C. was sentenced to 78 months in prison, followed by three years of supervised release (5:15-cr-14).
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Miguel Angel Cerda-Rodriguez, 29, of Conover, N.C. was sentenced to 46 months in prison, followed by five years of supervised release (5:14-cr-77)
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Rene Antonio Garcia, 54, of Hickory, N.C. was sentenced to time served (approximately one year) followed by four years of supervised release (5:14-cr-82).\
The two OCDETF investigations, codenamed “Dixie Crystal” and “Lay Low,” are being led by HSI and DEA, respectively, with the assistance of the Caldwell County Sheriff’s Office, Lenoir Police Department, Catawba County Sheriff’s Office, and Hickory Police Department, and law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee.
According to court documents, to date, more than 80 individuals have been convicted as a result of the two related investigations. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized more than 10 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and numerous firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
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New York Woman Pleads Guilty to Credit Card Fraud ConspiracyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Xiu Fang Zhang, 21, of New York, New York, pled guilty today in U.S. District Court to conspiring to commit credit card fraud.
According to evidence introduced at the plea hearing, between January 3 and January 6, 2015, Zhang and others used counterfeit credit cards to make purchases at retail stores and pharmacies in Maine. Zhang used counterfeit credit cards to purchase over $7,500 worth of items from Lowes, Home Depot, Bon-Ton, Rite Aid and Sears. She was paid by a co-conspirator for each fraudulent purchase.
Zhang faces up to five years in prison and a $250,000 fine. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Secret Service and the Auburn and South Portland Police Departments.
Nebraska Therapist Sentenced in Health Care Fraud CaseRead the Press Release
U.S. Attorney Deb Gilg and Nebraska Attorney General Doug Peterson announced that a Lincoln-area woman must repay more than $192,000 to the state of Nebraska and serve 12 weekends in jail over the next year after pleading guilty to committing health care fraud. Melissa Prentice-Erickson must also serve six months under house arrest and a 5 year term of probation, under a sentence handed down this afternoon by U.S. District Judge John Gerrard.
Prentice-Erickson formerly was a mental health therapist who ran her practice in Aurora, NE. An investigation by the Attorney General’s Medicaid Fraud and Patient Abuse Unit, Magellan Behavioral Health, and the program integrity unit of the Nebraska Department of Health and Human Services found that Prentice-Erickson submitted 2614 false claims for payment to Nebraska Medicaid between November 2009 and July 2014. She was paid $192,761.98 for services she never rendered. A federal grand jury indicted her on 26 counts of health care fraud as a result of her actions.
The case was prosecuted by Mark Collins of the Attorney General’s Office and Alan Everett of the U.S. Attorney’s Office.
Navajo Man Sentenced to 74 Months in Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Farrell Bowman, 29, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 74 months in prison for his involuntary manslaughter conviction. Bowman will be on supervised release for three years after completing his prison sentence.
Bowman was arrested in Jan. 2015, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Bowman killed two Native American men with his vehicle when he crashed into their vehicle while he was driving under the influence of alcohol. The crash occurred on July 3, 2014, in a location within the Navajo Indian Reservation in San Juan County, N.M. Bowman was subsequently indicted on the same charges on Jan. 21, 2015.
On Aug. 12, 2015, Bowman pled guilty to the indictment and admitted killing the two victims by driving recklessly while under the influence of alcohol which rendered him incapable of exercising clear judgment and a steady hand in operating a vehicle. He also acknowledged that he operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety, the Farmington office of the FBI and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case.
Ms-13 Gang Member Admits Role in Witness Retaliation Murder ConspiracyRead the Press Release
NEWARK, N.J. – A MS-13 gang member from Somerset County, New Jersey, today admitted relaying instructions to murder government witnesses from incarcerated gang members, New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
Jose Romero-Aguirre, a/k/a “Conejo,” 29, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to Count 26 of an indictment charging him with conspiracy to commit murder in furtherance of a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
According to the documents filed and statements made in court:
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches, or “cliques,” of MS-13 operate throughout the United States, including Plainfield, New Jersey. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang.
According to statements made by Romero-Aguirre in court, he was a member of the Plainfield Locos Salvatrucha (PLS) clique of MS-13 from at least August 2011. Romero-Aguirre admitted that he conspired with other members of MS-13 to engage in racketeering activity, including acts of murder, robbery, extortion and drug trafficking.
Romero-Aguirre admitted that one of the central rules of MS-13 forbids any member from ever providing information about the gang’s criminal activity to the police. According to Romero-Aguirre, MS-13 members began investigating the arrest of several members of his clique in or around July 2011. Romero-Aguirre participated in phone calls with other incarcerated MS-13 members and discussed the need to find and kill the witnesses responsible for these arrests. Romero-Aguirre agreed to relay the murder instructions from the incarcerated members to the other MS-13 members at large, including a message that the MS-13 members had 24 days to eliminate one of the government witnesses. Romero-Aguirre also admitted that he agreed to pass these murder instructions because he believed it would preserve his own position within MS-13.
The conspiracy charge to which Romero-Aguirre pleaded guilty carries a maximum potential penalty of ten years in prison and a $250,000 fine. He remains detained pending his sentencing, which is currently scheduled for March 16, 2016.
Twelve additional members and associates of the PLS clique of MS-13 are scheduled for trial in front of U.S. District Judge Stanley R. Chesler on February 9, 2016. The charges include several counts of murder, attempted murder, robbery, extortion, witness retaliation and sexual assault.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, and the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s plea. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, and the Plainfield Police Department, for their work on the case.
The government is represented by Assistant United States Attorneys James Donnelly and Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark as well as Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section.
Defense counsel: Christopher L. Patella Esq., Bayonne, New Jersey
Missouri Man Sentenced for Possession of Child PornographyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Nov. 30, 2015, Billy Wynn Jr., 32, was sentenced before U. S. District Judge Ralph R. Erickson to serve 14 years in prison for receipt of child pornography. Judge Erickson also sentenced Wynn to serve 20 years supervised release and to pay a $200 special assessment to the Crime Victims’ Fund.
In September 2013, Wynn moved to North Dakota after which it was discovered that he was involved in a child pornography ring which was sharing child pornography via web-based email accounts. Wynn created various email accounts in alias names to access the child pornography and communicate directly with members of the child pornography ring. As part of this investigation, which originated in North Dakota, other individuals, including the administrator of one such web-based account, have been arrested.
This case was investigated by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations.
Assistant U. S. Attorney Jennifer Puhl prosecuted this case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood, in conjunction with the Internet Crimes Against Children (ICAC) Task Force help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, and/or computer technology to sexually exploit children. The ICAC program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Miami-Dade, Florida, Police Officer Sentenced to 10 Years in Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A former lieutenant with the Miami-Dade Police Department, Internal Affairs, was sentenced today to 120 months in prison for his role in a narcotics conspiracy, including purchasing six firearms for a drug trafficking organization and smuggling those weapons through security checkpoints at the Miami International Airport, U.S. Attorney Paul J. Fishman announced.
Ralph Mata, 46, a/k/a “the Milk Man,” of Broward County, Florida, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to an information charging him with one count of aiding and abetting a narcotics conspiracy, one count of conspiring to distribute cocaine and one count of engaging in monetary transactions in property derived from unlawful activity. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From June 2012 through November 2012, Mata purchased at least six firearms from a gun store in Florida, which ultimately were provided to members of the Juan Arias Drug Trafficking Organization. Using his prior experience as a lieutenant assigned to the Miami International Airport, as well as his law enforcement contacts at the airport, Mata and others smuggled the six firearms through airport security checkpoints and onto a commercial airliner destined for the Dominican Republic.
Mata also provided advice, guidance and counsel to Juan Arias regarding the means and methods the drug trafficking organization should use to import and distribute cocaine. Mata transported narcotics proceeds for the organization.
He also engaged in monetary transactions in property derived from the sale of narcotics. On March 28, 2013, Mata traveled from Miami to New Jersey and received approximately $60,000 in narcotics proceeds from Juan Arias and others. Using a portion of that $60,000, Mata made separate $10,000 cash deposits at two different bank locations in Fort Lee, New Jersey. As payment for his assistance to the drug trafficking organization, Mata accepted a total of approximately $100,000 in cash and gifts from the Juan Arias drug trafficking organization.
In addition to the prison term, Judge Wigenton sentenced Mata to five years of supervised release and fined $15,000. As part of his plea, Mata must forfeit the $75,405 seized on April 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing. He also thanked the Miami FBI, the Miami-Dade Police Department, the Miami-Area Corruption Task Force and the U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, New York, for their assistance with the investigation.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Mary E. Toscano, Deputy Chief of the General Crimes Unit, Criminal Division, and José R. Almonte of the Special Prosecutions Division in Newark and Barbara Ward, Acting Chief, Asset Forfeiture and Money Laundering Unit.
Defense counsel: Jay V. Surgent Esq., Parsippany, New Jersey, and Bruce H. Fleisher Esq., Miami
Metro Denver Bank Senior Vice President Sentenced for EmbezzlementRead the Press Release
DENVER – Candice L. White, age 43, of Centennial, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 3 months in prison, followed by 5 years supervised release with a condition of 200 hours of community service, for the crime of embezzlement by a bank officer or employee, U.S. Attorney’s Office announced with the Special Inspector General for Troubled Asset Relief Program (SIGTARP). White was also ordered to pay restitution totaling $92,780.27 to Front Range Bank. On August 12, 2015, White pled guilty to two counts of embezzlement by a bank officer. White was first indicted by a federal grand jury in Denver on March 24, 2015.
According to the stipulated facts contained in the plea agreement, from at least July 2009 through March 2011, White, a Senior Vice President of Front Range Bank, knowingly and intentionally embezzled $92,930.27 from client accounts at the Bank. The plea agreement calls for White to pay restitution in this amount back to the Bank, which has already reimbursed its clients for their losses. The defendant accomplished her embezzlement by requesting cashier’s checks and withdrawing cash from escrow accounts and other accounts that were not closely monitored by the victim account holders. She would then use the embezzled money for her own personal use.
White was familiar with the victim accounts because she was the bank representative assigned to the accounts. To carry out her embezzlement, the defendant approached a teller at the bank with a type of withdrawal slip and falsely informed the teller that she needed the cashier’s check or cash for the client or to pay a bill on the client’s behalf. Due to her status as a Senior Vice President at the Bank, the tellers trusted that White was telling the truth and had the required supporting documentation for the transactions.
“As this case demonstrates, the Department of Justice and the U.S. Attorney’s Office takes seriously holding bank officials accountable for violations of federal law,” said U.S. Attorney John Walsh. “The defendant admitted to embezzlement, and will not only experience prison, but will also do substantial community service and pay significant restitution.”
"White took advantage of unsuspecting bank customers who trusted her to keep their money safe. Instead, she deceived everyone by embezzling their money for her own personal use," said FBI Denver Special Agent in Charge Thomas Ravenelle. "The FBI will continue to work with our law enforcement partners to protect people's bank accounts from embezzlers and other fraudulent schemes."
“While she was a senior vice president at a TARP bank, Candice White embezzled from the bank, a crime for which she will now serve time in prison,” said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). “Ripping off a TARP bank is akin to ripping off taxpayers who funded the bailout. White embezzled from bank customers, abused the trust of the American taxpayer, and used her position of authority to deceive her co-workers. The TARP bailout was not created to bailout bank executives. SIGTARP will work tirelessly to bring justice to all those committing crime inside TARP banks.”
Because Front Range Bank received TARP funds, the Special Inspector General (SIGTARP) assisted the FBI in the investigation.
White was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Massachusetts Man Pleads Guilty to Transporting an Individual for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE - Rafael Reyes, 33, of Boston, Massachusetts, appeared in United States District Court on Thursday and pled guilty to crimes involving the transportation of a minor in interstate commerce for prostitution, announced Acting U.S. Attorney Donald Feith.
In February of 2014, Homeland Security Investigations, Manchester, New Hampshire, and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a minor female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution, including Reyes.
Reyes is scheduled to be sentenced in March 2016.
The case was investigated by the Manchester, New Hampshire Homeland Security Investigations and the Salem Police Department, in conjunction with the police departments of Boston, Massachusetts and Manchester, New Hampshire, as well as the New Hampshire Internet Crimes Against Children Task Force (NH ICAC). This case is being prosecuted by Assistant United States Attorneys Nick Abramson and Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Massachusetts Man Pleads Guilty to Drug ChargesRead the Press Release
CONCORD, N.H. – Luis Nieves, 33, of Haverhill, Massachusetts pleaded guilty in the United States District Court for the District of New Hampshire to one count of possessing fentanyl with the intent to distribute it, announced Acting United States Attorney Donald Feith.
On June 24, 2015, Nieves was arrested while attempting to deliver over two kilograms of the narcotic controlled drug fentanyl to a purchaser in Manchester, New Hampshire. According to the plea agreement, Nieves is responsible for at least 4 kilograms but less than 12 kilograms of fentanyl. Nieves is scheduled for sentencing on March 7, 2016. He is facing a maximum statutory sentence of twenty years in prison and criminal fines of up to $1,000,000.
This prosecution arose from an investigation conducted by the Drug Enforcement Administration, the Manchester Police Department and the Massachusetts State Police. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
Mansfield Man Sentenced for Armed Bank Robbery and Possession of Child PornographyRead the Press Release
BOSTON – George Englehart, 51, was sentenced today by U.S. District Court Judge F. Dennis Saylor to 151 months in prison and five years of supervised release. In September 2015, Englehart pleaded guilty to armed bank robbery and possession of child pornography.
In April 2014, Englehart, who was dressed in dark clothes with a scarf hiding his face, entered a Bank of America in Mansfield, Mass. He approached a teller, brandished what appeared to be a black semi-automatic handgun, and demanded that the teller give him money. The teller complied with and gave Englehart $878. Englehart fled and was located and arrested a short time later in possession of $878 and what appeared to be a black semi-automatic handgun. The weapon was later determined to be a BB gun. During Englehart’s booking, his cell phone was found to contain numerous images of children engaged in sexually explicit conduct.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Mansfield Police Chief Ronald A. Sellon, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Mandeville Postal Worker Pleads Guilty to Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGELA MITCHELL, age 40, of Mandeville, pled guilty to Theft of Mail.
According to court records, as a result of a complaint from the Postmaster of the Mandeville Post Office, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into MITCHELL, an employee of the Postal Service assigned to the Mandeville Post Office. It was determined that MITCHELL had stolen a credit card from a post office box and used the stolen card on three occasions without authorization, resulting in approximately $460 in fraudulent charges.
MITCHELL faces a maximum penalty of five years of imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for March 23, 2016.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Man Sentenced for Unlawful Possession of A FirearmRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jose Galvan-Lopez, 44, a Mexican national who most recently resided in Granite City, was sentenced on December 1, 2015, to one year and one day in federal prison for the offense of Unlawful Possession of a Firearm by an Illegal Alien.
Galvan-Lopez pled guilty to the federal charge on August 10, 2015. He has been continually confined since his arrest in Granite City, Illinois on May 8, 2015. At his change of plea hearing in August, Galvan-Lopez admitted that he is an illegal alien who has been previously deported from the United States to Mexico, and that he had purchased a stolen 9mm assault rifle and ammunition for $50.00 in cash in St. Louis, Missouri, in 2013.
Upon release from federal custody, Galvan-Lopez acknowledged that he will be deported again.
The investigation which resulted in Galvan-Lopez’ arrest and conviction was conducted by the Granite City, Illinois Police Department and by the Immigration and Customs Enforcement (ICE) Agency.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Man Pleads Guilty to Facilitating Computer Hacking of Vermont CompanyRead the Press Release
Nima Golestaneh, 30, an Iranian national, pleaded guilty to charges of wire fraud and unauthorized access to computers related to his involvement in the October 2012 hacking of a Vermont-based engineering consulting and software company.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eric S. Miller of the District of Vermont and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
According to the plea agreement, Golestaneh conspired with others to hack the network and computers at Arrow Tech Associates Inc. (Arrow Tech) in order to steal valuable company software and business information. Golestaneh’s role in the conspiracy was to acquire servers in other countries for his co-conspirators to use remotely in order to launch computer intrusions into victim companies, including Arrow Tech, thereby masking their true location and identity.
As part of the conspiracy, in October 2012, a co-conspirator used servers in third-party countries, which were provided by Golestaneh, during a successful unauthorized cyber intrusion into Arrow Tech’s computer network. As part of this intrusion, the co-conspirator stole the company’s sophisticated software product and other proprietary information.
In November 2013, Golestaneh was arrested in Turkey in connection with the indictment. He was extradited to the United States on Feb. 12, 2015 pursuant to a Mutual Legal Assistance Treaty.
“This case proves the power of close cooperation among victims, law enforcement and the international community,” said Assistant Attorney General Carlin. “With continued partnerships like these, cyber crimes will not go unanswered. At the National Security Division, we will continue to follow the facts and evidence wherever they lead to ensure there are no safe havens for hackers.”
“This case illustrates that no part of the United States is immune from cyber intrusions,” said U.S. Attorney Miller. “Further, as the department has shown time and again, cyber criminals are not immune from the law because they hack from faraway countries that they perceive as offering a safe haven. Working with our colleagues at FBI and other law enforcement agencies, we can and will identify them and we will make every effort to arrest and prosecute them.”
“Those who have committed or are committing similar computer intrusions are on notice,” said Special Agent in Charge Vale. “We can identify them and we will pursue their arrest no matter where they reside or how long it takes.”
The case was investigated by the FBI’s Albany Division’s Cyber Squad. The case is being prosecuted by First Assistant U.S. Attorney Eugenia Cowles of the District of Vermont and Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance in this matter.
Golestaneh Plea Agreement
Man Pleads Guilty to Facilitating Computer Hacking of Vermont CompanyRead the Press Release
Nima Golestaneh, 30, an Iranian national, pleaded guilty to charges of wire fraud and unauthorized access to computers related to his involvement in the October 2012 hacking of a Vermont-based engineering consulting and software company.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eric S. Miller of the District of Vermont and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
According to the plea agreement, Golestaneh conspired with others to hack the network and computers at Arrow Tech Associates Inc. (Arrow Tech) in order to steal valuable company software and business information. Golestaneh’s role in the conspiracy was to acquire servers in other countries for his co-conspirators to use remotely in order to launch computer intrusions into victim companies, including Arrow Tech, thereby masking their true location and identity.
As part of the conspiracy, in October 2012, a co-conspirator used servers in third-party countries, which were provided by Golestaneh, during a successful unauthorized cyber intrusion into Arrow Tech’s computer network. As part of this intrusion, the co-conspirator stole the company’s sophisticated software product and other proprietary information.
In November 2013, Golestaneh was arrested in Turkey in connection with the indictment. He was extradited to the United States on Feb. 12, 2015 pursuant to a Mutual Legal Assistance Treaty.
“This case proves the power of close cooperation among victims, law enforcement and the international community,” said Assistant Attorney General Carlin. “With continued partnerships like these, cyber crimes will not go unanswered. At the National Security Division, we will continue to follow the facts and evidence wherever they lead to ensure there are no safe havens for hackers.”
“This case illustrates that no part of the United States is immune from cyber intrusions,” said U.S. Attorney Miller. “Further, as the department has shown time and again, cyber criminals are not immune from the law because they hack from faraway countries that they perceive as offering a safe haven. Working with our colleagues at FBI and other law enforcement agencies, we can and will identify them and we will make every effort to arrest and prosecute them.”
“Those who have committed or are committing similar computer intrusions are on notice,” said Special Agent in Charge Vale. “We can identify them and we will pursue their arrest no matter where they reside or how long it takes.”
The case was investigated by the FBI’s Albany Division’s Cyber Squad. The case is being prosecuted by First Assistant U.S. Attorney Eugenia Cowles of the District of Vermont and Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance in this matter.
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Las Cruces Man Sentenced to 100 Months in Federal Prison for Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Armando Conrad Gonzales, 34, of Las Cruces, N.M., was sentenced today in federal court for his conviction on drug trafficking and firearms charges. Gonzales was sentenced to 100 months in federal prison followed by four years of supervised release.
Gonzales was charged in July 2014, with two co-defendants who previously had been arrested. Co-defendant Charles Douglas Notbohm, Jr., 51, of Tucson, Ariz., was arrested in Lordsburg, N.M., on Feb. 21, 2014, after officers executed a search warrant on the vehicle in which he was traveling and found more than 116 grams of methamphetamine. On May 21, 2014, Notbohm and co-defendant James Richard Reeves, 46, also of Tucson, were indicted and charged with conspiracy and possession of methamphetamine with intent to distribute. On July 16, 2014, Notbohm, Reeves and Gonzales were charged in a superseding indictment with conspiracy and possession of methamphetamine with intent to distribute. The superseding indictment also charged Gonzales with being a felon in possession of a firearm
Gonzales pled guilty on Nov. 18, 2014, to Counts 1 and 3 of the superseding indictment, charging him with a methamphetamine distribution conspiracy and being a felon in possession of a firearm. In entering his guilty plea, Gonzales admitted making an agreement with Reeves to purchase four ounces of methamphetamine from Reeves which Reeves and Notbohm were to transport from Tucson to Las Cruces. Gonzales further admitted that on April 11, 2014, he possessed a firearm and ammunition even though he was prohibited from doing so based on his status as a convicted felon.
On Sept. 18, 2014, Reeves pled guilty to the two methamphetamine trafficking charges in the superseding indictment without the benefit of a plea agreement. At sentencing, Reeves faces a sentence of not less than five years and not more than 40 years in prison. Reeves remains in custody pending a sentencing hearing which has yet to be scheduled.
Notbohm pled guilty on Oct. 7, 2014, to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In entering his guilty plea, Notbohm admitted that on Feb. 21, 2014, he and Reeves were driving from Tucson to Las Cruces for the purpose of delivering methamphetamine to Gonzales. He further admitted that as the two men were driving through Lordsburg, they were stopped by a police officer who found more than 116 grams of methamphetamine in their vehicle. Notbohm was sentenced on Aug. 20, 2015, to 87 months in prison followed by three years of supervised release.
This case was investigated by Deming office of Homeland Security Investigations and the Lordsburg Police Department, and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
Kenneth Culver Sentenced to 37 Months ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Kenneth Culver, age 39, of Steger, Illinois, was sentenced Tuesday, December 1, 2015, in federal court by Judge Joseph S. Van Bokkelen after pleading guilty to 2 counts of bank robbery.
Kenneth Culver was sentenced to 37 months imprisonment and 2 years supervised release.
According to documents in the case, Culver robbed a Chase Bank within Munster, Indiana on August 12, 2014 and again on December 3, 2014. Culver passed a note to the tellers demanding money and stole $2675 and $1200 on each respective occasion. Culver was initially arrested and charged in Lake County Court with the August robbery. While on bond for the first robbery, he committed the second offense. He was then charged with both crimes in federal court.
This case was the result of an investigation by the Federal Bureau of Investigation in coordination with the Munster Indiana Police. The case was handled by Assistant United States Attorney Thomas M. McGrath.
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Jury Convicts KCK Man of $1 Million Meth Conspiracy in St. Joseph, Across Four-State RegionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was convicted by a federal trial jury today of his role in a large-scale conspiracy that distributed more than 15 kilograms of methamphetamine in St. Joseph, Mo., and across a four-state region.
Anselmo Salazar, also known as “Crazy Eyes,” 49, of Kansas City, Kan., was found guilty of participating in a conspiracy to distribute methamphetamine from Jan. 1, 2009, to Nov. 12, 2013. Salazar was also found guilty of participating in a money-laundering conspiracy that involved financial transactions of the proceeds of illegal drug-trafficking.
In 2010, the Buchanan County Drug Strike Force and the Drug Enforcement Administration initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri, northeast Kansas, southern Iowa and Nebraska.
Salazar is among 24 defendants charged in a Nov. 15, 2013, federal indictment. Salazar, along with co-defendants Carlos Alberto Yanez, 33, of Lee’s Summit, Mo., and Marvin Carl Rogers, 54, of Gladstone, Mo. were the primary sources of supply for methamphetamine for the entire organization. Yanez and Rogers have pleaded guilty and await sentencing.
Yanez and Salazar obtained methamphetamine in up to pound quantities and then delivered the methamphetamine to co-defendant Shannon Martinez (also known as “Big Homie”), 38, of St. Joseph, and another man charged in a separate case. Martinez, in turn, sold the methamphetamine to others to distribute. Martinez has pleaded guilty and awaits sentencing.
On Oct. 11, 2011, Salazar was arrested after a traffic stop in Platte County, Mo. Salazar, who was was driving Yanez’s vehicle, was in possession of 42 one-pound bundles of marijuana, 25 grams of cocaine and 80 grams of methamphetamine. Salazar was on his way to deliver the methamphetamine to St. Joseph for Yanez, and to pick up cash payment for the delivered methamphetamine.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Tuesday, Dec. 1, 2015.
Salazar is jointly and severally liable to forfeit to the government a money judgment of $976,800, which was received in exchange for the unlawful distribution of methamphetamine, based on a conservative purchase price of $1,850 an ounce (for 50 percent pure methamphetamine) and the distribution of more than 15 kilograms of methamphetamine by conspirators.
In addition, among the property that must be forfeited to the government by Salazar’s co-defendants are three cars, a pick-up truck, a motorcycle and approximately $116,389 that was seized from several co-defendants by law enforcement officers during the investigation.
Under federal statutes, Salazar is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Patrick C. Edwards. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the FBI, the Kansas City, Mo., Police Department, the St. Joseph, Mo., Police Department and the Buchanan County, Mo., Sheriff’s Department.
Jury Convicts KC Man of Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today for his role in a conspiracy to distribute crack cocaine and for illegally possessing several firearms.
Marcus McIntosh, 59, of Kansas City, was found guilty of the charges contained in an Aug. 26, 2014, federal indictment. McIntosh was found guilty of his role in a conspiracy to distribute crack cocaine between April 1 and Aug. 8, 2014. McIntosh was also found guilty of distributing crack cocaine and being a felon in possession of several firearms.
McIntosh sold crack cocaine to undercover detectives and confidential informants on several occasions between May and August 2014. On Aug. 8, 2014, law enforcement officers executed a search warrant at a residence that McIntosh was using as a “trap house,” a place to store and sell crack cocaine. McIntosh was placed under arrest; an adult woman and a child were also inside the residence.
During their search of the residence, investigators found a safe under the bed in a bedroom that contained approximately 49.6 grams of crack cocaine, approximately 29.2 grams of powder cocaine and $1,820. In another bedroom, investigators found a loaded Ruger .22-caliber handgun on top of an entertainment center, a Remington 12-gauge shotgun located next to the entertainment center and a loaded PW Arms 9mm handgun between the mattresses on the bed.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McIntosh has two prior federal felony convictions for possessing crack cocaine with the intent to distribute, and prior state felony convictions for carrying a concealed weapon and robbery.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three and half hours before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, Nov. 30, 2015.
Two co-defendants, who are brothers, have pleaded guilty to participating in the conspiracy by distributing crack cocaine that was supplied to them by McIntosh. Tyrone Campbell, Jr., 30, of Raytown, was sentenced to eight years in federal prison. Tyronn Campbell, 25, of Kansas City, Mo., was sentenced to three years and 10 months in federal prison without parole.
Under federal statutes, McIntosh is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and Adam Caine. It was investigated by the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Junction City Man Sentenced to Life on Murder, Drug ChargesRead the Press Release
TOPEKA KAN. – A Junction City man was sentenced Wednesday to life in federal prison for murdering a woman to keep her from giving information to federal law enforcement officers about his involvement in drug trafficking, U.S. Attorney Barry Grissom.
Marcus D. Roberson, 33, Junction City, Kan., was convicted in a jury trial in March 2014 on the following counts:
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One count of murder in the March 3, 2010, shooting of Crystal K. Fisher.
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One count of conspiracy to distribute crack cocaine.
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One count of conspiracy to distribute powder cocaine.
During trial, prosecutors presented evidence that Roberson lured the 25-year-old Fisher to a location near an alley in central Junction City where he shot her four times at close range. Her body was found seated in the driver’s side of her vehicle in the 700 block of West 11th Street in Junction City. She had been shot four times. The murder weapon, a .40 caliber pistol, was found in a pond behind a Walmart in Junction City.
Prosecutors also presented evidence of Roberson’s involvement in a drug trafficking organization that distributed powder and crack cocaine in and throughout the Junction City area.
Co-defendants include:
Virok D. Webb, who was sentenced to 360 months in federal prison.
Kennin Dewberry, who was sentenced to 240 months.
Jamaica L. Chism, who was sentenced to 84 months.
Megan N. Fuller, who was sentenced to 42 months.
Alisha A. Escobedo, who was sentenced to time served and five years on supervised release.
Caress Jackson, who was sentenced to time served and two years on supervised release.
Keishana Johnson, who was sentenced to time served and three years on supervised release.
Grissom commended the Junction City Police Department, the Drug Enforcement Administration, Assistant U.S. Attorney Jared Maag and Assistant U.S. Attorney Mike Warner for their work on the case. Also assisting in the investigation were the Riley County Police Department, the Grandview Plaza Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation, the U.S. Army Criminal Investigations Command at Ft. Riley, the Dickinson County Drug Enforcement Unit, the Kansas Department of Wildlife and Parks Tourism and the Park City Police Department.
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Irondequoit Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Mitchell Ruoff, 22, of Irondequoit, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of a firearm with an obliterated serial number. The charge carries a maximum Penalty of five years in prison, a fine of $250,000.00, or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated on February 4, 2014, during a pre-arranged meeting, Ruoff sold a .22 caliber revolver to an undercover law enforcement officer for $400.00. The manufacturer’s serial number on the firearm had been ground off, a fact which Ruoff acknowledged during the sale.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for March 1, 2016 at 2:00 p.m. before Judge Wolford.
Indictment Charges Two Citizens of the Dominican Republic in A Drug ConspiracyRead the Press Release
PHILADELPHIA – Luis Manuel Gomez Rodriguez, 37, and Jose Antonio Rosario Reyes, 55, both of the Dominican Republic, with local residences in Philadelphia, Pennsylvania, are charged in a four count indictment with conspiracy to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin within 1,000 feet of the Abraham Lincoln High School in Philadelphia, and possession of a firearm in furtherance of a drug trafficking felony, announced United States Attorney Zane David Memeger. The indictment charges that Gomez Rodriguez and Rosario Reyes possessed with intent to distribute approximately 12 kilograms of heroin at a residence on Battersby Street in the Mayfair section of Philadelphia, as well as a loaded 9 mm handgun and extensive drug trafficking and packaging paraphernalia on October 22, 2015.
According to the indictment, the named defendants were members of a drug organization that received, prepared and packaged multi-kilogram quantities of heroin for street sale and distribution in Philadelphia. The organization used the premises at 7563 Battersby Street in Philadelphia, as a stash house for concealing and storing kilogram quantities of heroin, as a location to cut, prepare and package heroin for street sale in Philadelphia, as well as a place to store proceeds from drug sales and to maintain records from those sales.
The indictment charges that the organization concealed inside 7563 Battersby Street premises multi-kilogram quantities of heroin intended for cutting and packaging, placing the kilograms of heroin inside pieces of furniture containing hidden compartments. It is further charged that the organization employed multiple workers on a periodic basis to mill, prepare, cut and package heroin for street sale and maintained in the basement of the premises extensive paraphernalia, including strainers, grinders, presses, scales, a bucket, ziplock bags, glassine envelopes and two large ziplock bags containing cutting substances, all of which were for use in the cutting and packaging of heroin for street sale. The indictment further charges that, on October 22, 2015, at the time of a warrant-authorized search of the 7563 Battersby Street premises, Luis Manuel Gomez Rodriguez and Jose Antonio Rosario Reyes, both workers in the drug organization, possessed inside the residence approximately 12 kilograms of heroin, which were found concealed in compartments inside two pieces of furniture, a 9 mm Kel-Tech Luger handgun loaded with 7 live rounds of ammunition, approximately $79,286 in United States currency, and a significant amount of heroin trafficking paraphernalia and packaging material.
If convicted, Luis Manuel Gomez Rodriguez and Jose Antonio Rosario Reyes each face a maximum penalty of life imprisonment, an effective mandatory minimum sentence of 15 years’ imprisonment, lifetime supervised release, at least 5 years supervised release, a fine of $30,250,000, and a $400 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Indianapolis tax preparer sentenced in fraud schemeRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, today announced the sentencing of an Indianapolis woman who prepared fraudulent tax returns earning her clients returns they were not entitled to. Amber Lynch, 34, was sentenced to two years in federal prison by U. S. District Judge Jane Magnus-Stinson.
“Filing false tax returns is stealing; there is no other way to characterize it,” said Minkler. “If you steal from the U. S. Treasury, you will be held accountable.”
Amber Lynch is a former employee of the H&R Block Company who started preparing returns from her home. Returns completed between 2010 and 2013 were flagged by the IRS Fraud Detection Center in Kansas City when a pattern of household help income, abnormal student loan interest and education credits was detected. Over 400 returns were identified as coming from Lynch’s apartment.
Several of her client taxpayers were interviewed by investigators and all stated many of the deductions listed by Lynch on their returns were completely false. Lynch filed tax returns for one client two consecutive years without the client’s authorization. In total, Lynch attempted to steal over $400,000.
Special Agent in Charge Stephen Boyd stated, “The sentencing of Ms. Lynch sends a clear message to the people of Indianapolis that what she was doing was illegal, and there is a price to pay. One of IRS Criminal Investigations main objectives is to ensure that all tax practitioners, tax preparers, and others who practice in the tax law profession adhere to professional standards and follow the law. Those who break the law will be held accountable for their actions.”
According to Assistant U.S. Attorney Bradley P. Shepard, who prosecuted this case for the government, Lynch must serve one year of supervised release after her sentence.
Harrisburg Man Indicted on Heroin and Cocaine Trafficking ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man has been indicted by a federal grand jury in Harrisburg on multiple charges involving the unlawful distribution of controlled substances.
According to United States Attorney Peter Smith, Curtis Waldron, age 40, was charged in a two count indictment with unlawfully distributing heroin, cocaine and marijuana on October 2, 2015, and with possessing with the intent to distribute heroin, cocaine and crack cocaine since at least January 2015.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Harrisburg Police Department, Dauphin County Drug Task Force and the Dauphin County Probation Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments 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 on each count is 40 years of imprisonment as well as a 5 year mandatory minimum term 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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General Electric to Pay $2.25 Million for Violating Federal and State Environmental Laws in Waterford, New YorkRead the Press Release
ALBANY, NEW YORK: The General Electric Company (“GE”) has agreed to pay a $2.25 million civil penalty to resolve a complaint alleging violations of federal and state environmental laws in connection with GE’s use of an incinerator at a manufacturing facility that it once owned and operated in Waterford, New York, announced the United States Attorney’s Office for the Northern District of New York, the Department of Justice, the Environmental Protection Agency (“EPA”), the New York State Attorney General’s Office, and the New York State Department of Environmental Conservation (“DEC”). Both the complaint and the settlement agreement were filed today in United States District Court in Albany.
The allegations in the civil complaint, which is docketed as United States of America and the State of New York v. General Electric Company, Civil No. 1:15-CV-1431, include the following:GE owned the Waterford facility from 1947 through 2006, and continued to operate it through early 2007. GE manufactured various products at the facility, including sealants made of silicone. The silicone manufacturing process generated hazardous waste. GE sought and received permits from DEC to dispose of the hazardous waste onsite, subject to compliance with the Clean Air Act (CAA) and the Resource Conservation and Recovery Act (RCRA). GE disposed of hazardous waste in a rotary kiln incinerator that included an automatic waste feed cut-off system designed to shut down the incinerator if GE deviated from operating parameters designed to ensure compliance with the CAA and RCRA. Unbeknownst to federal and state authorities, GE used a computer program to override the incinerator’s automatic waste feed cut-off system, allowing GE to continue to burn hazardous waste in the incinerator in violation of its CAA and RCRA permits. On at least 1,859 occasions during the period of September 2006 until February 2007, GE employees manually overrode the automatic waste feed cut-off system, thereby potentially exposing the public and the environment to harmful hazardous air pollutants, such as carbon monoxide, dioxins, and furans. Though its employees were violating federal and state law, GE submitted routine compliance reports to the United States and the State of New York falsely attesting to compliance with RCRA, the CAA, and permits issued pursuant to those statutes.
First Assistant United States Attorney Grant C. Jaquith said: “By operating a system to bypass safety controls, GE put the public and the environment in harm’s way. This office will continue to pursue vigorously companies that thwart laws designed to protect public health, safety, and our environment.”
“GE violated the Nation’s and New York’s bedrock environmental laws that were put in place to protect the American public and the environment from harmful air pollution and hazardous materials,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division (ENRD). “This settlement penalizes GE for these violations of law, and represents the combined efforts of the federal government and the state of New York to uphold the law and protect public health.”
“Our laws are critical to protecting the environment and ensuring the health and safety of the public,” said New York State Attorney General Eric T. Schneiderman. “GE ignored its duty to comply with clean air and hazardous waste laws at the Waterford facility. Today’s settlement holds GE accountable for its illegal actions – and reflects my office’s continuing commitment to impose significant consequences on any company that puts New Yorkers in jeopardy by breaking environmental laws. In addition, this settlement represents a strong cooperative effort between the State and the United States to protect public health and the environment.”
“GE overrode a system designed to deal with dangerous air pollutants from a hazardous waste incinerator,” said Judith A. Enck, EPA Regional Administrator. “By overriding the system, GE allowed the hazardous waste to continue to be fed into the incinerator, leading to levels of carbon monoxide that exceeded the permit limits.”
“Violations of New York State’s environmental laws and regulations are serious offenses, which carry serious consequences,” said DEC’s Acting Commissioner Basil Seggos. “This fine is the result of the collaborative efforts of state and federal partners working together to accomplish a shared mission to protect our citizens and communities and should send a strong message that New York State has zero tolerance for those who shirk environmental policies and procedures put in place as protections. I commend DEC’s Law Enforcement Officers for their determined vigilance in this investigation. This is a great example of the important work they perform in the course of their sworn duty to protect the citizens of New York and the environment.”
This case was investigated by EPA and DEC, and is being handled by Assistant United States Attorneys Thomas Spina Jr. and Adam J. Katz, New York State Assistant Attorneys General Maureen F. Leary and James C. Woods, an attorney from the Department of Justice’s Environmental Enforcement Section, and assistant regional counsel from EPA’s office in New York City.
Franklin American Mortgage Company Agrees to Pay $70 Million to Resolve Alleged False Claims Act Liability Arising from Federal Housing Administration-Insured Mortgage LendingRead the Press Release
WASHINGTON – Franklin American Mortgage Company has agreed to pay the United States $70 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. Franklin American is headquartered in Franklin, Tennessee.
“Franklin promised that its loans met HUD’s quality standards in order to obtain HUD insurance, but ignored widespread, systemic defects in those loans,” said U.S. Attorney John F. Walsh of the District of Colorado. “This case is the latest step in our ongoing effort to hold lenders accountable for fraudulent conduct that wreaked havoc on our housing market.”
“This settlement is another step forward in the government’s efforts to hold lenders accountable for the harm caused by years of improper and inadequate underwriting of mortgages insured by the federal government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this settlement makes clear, we will hold accountable anyone whose conduct results in loss to the government, whether it is a large bank or a smaller mortgage lender.”
During the time period covered by the settlement, Franklin American participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, the FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance; to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices; and to self-report any deficient loans identified by their quality control program.
The settlement announced today resolves allegations that Franklin American failed to comply with certain FHA origination, underwriting and quality control requirements. As part of the settlement, Franklin American admitted to the following facts: between Jan. 1, 2006, and March 31, 2012, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. Franklin American’s FHA loan production grew substantially from 2006 until 2010. During this time, Franklin American employed unqualified junior underwriters to perform important underwriting functions. Franklin American also set high quotas for its underwriters and subjected underwriters to discipline if they did not meet their quotas. The company also sought to incentivize the production of loans by offering bonuses to its FHA underwriters. Loans underwritten by Franklin American were later reviewed in post-close audits. Oftentimes, those audits did not satisfy HUD’s requirements. Nevertheless, the audits identified substantial percentages of seriously deficient loans underwritten by Franklin American. Although these deficient loans were shared with management, Franklin American reported very few deficiencies to HUD. Franklin American’s conduct caused the FHA to insure hundreds of loans that were not eligible and, as a result, the FHA suffered substantial losses when it later paid insurance claims on those loans.
“The resolution of this matter against Franklin American reflects that all loan originators, whether large or small, receive the same scrutiny of their FHA loan underwriting practices,” said Inspector General David A. Montoya of the HUD Office of Inspector General (OIG). “The FHA program depends on the good faith and utmost integrity of the participants in the program and we will continue to devote substantial resources to identify instances in which participants in the FHA program fail to meet those standards.”
“Today’s settlement demonstrates HUD’s commitment to hold lenders accountable for serious violations of FHA requirements,” said General Counsel Helen R. Kanovsky of HUD’s Office of General Counsel. “We’re pleased that Franklin American accepted financial responsibility for its actions, which will restore funds to FHA.”
The settlement was the result of a joint investigation conducted by HUD, HUD OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Colorado.
Franklin American Mortgage Company Agrees to Pay $70 Million to Resolve Alleged False Claims Act Liability Arising from Federal Housing Administration-Insured Mortgage LendingRead the Press Release
Franklin American Mortgage Company has agreed to pay the United States $70 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. Franklin American is headquartered in Franklin, Tennessee.
“This settlement is another step forward in the government’s efforts to hold lenders accountable for the harm caused by years of improper and inadequate underwriting of mortgages insured by the federal government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this settlement makes clear, we will hold accountable anyone whose conduct results in loss to the government, whether it is a large bank or a smaller mortgage lender.”
“Franklin promised that its loans met HUD’s quality standards in order to obtain HUD insurance, but ignored widespread, systemic defects in those loans,” said U.S. Attorney John F. Walsh of the District of Colorado. “This case is the latest step in our ongoing effort to hold lenders accountable for fraudulent conduct that wreaked havoc on our housing market.”
During the time period covered by the settlement, Franklin American participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, the FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance; to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices; and to self-report any deficient loans identified by their quality control program.
The settlement announced today resolves allegations that Franklin American failed to comply with certain FHA origination, underwriting and quality control requirements. As part of the settlement, Franklin American admitted to the following facts: between Jan. 1, 2006, and March 31, 2012, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. Franklin American’s FHA loan production grew substantially from 2006 until 2010. During this time, Franklin American employed unqualified junior underwriters to perform important underwriting functions. Franklin American also set high quotas for its underwriters and subjected underwriters to discipline if they did not meet their quotas. The company also sought to incentivize the production of loans by offering bonuses to its FHA underwriters. Loans underwritten by Franklin American were later reviewed in post-close audits. Oftentimes, those audits did not satisfy HUD’s requirements. Nevertheless, the audits identified substantial percentages of seriously deficient loans underwritten by Franklin American. Although these deficient loans were shared with management, Franklin American reported very few deficiencies to HUD. Franklin American’s conduct caused the FHA to insure hundreds of loans that were not eligible and, as a result, the FHA suffered substantial losses when it later paid insurance claims on those loans.
“The resolution of this matter against Franklin American reflects that all loan originators, whether large or small, receive the same scrutiny of their FHA loan underwriting practices,” said Inspector General David A. Montoya of the HUD Office of Inspector General (OIG). “The FHA program depends on the good faith and utmost integrity of the participants in the program and we will continue to devote substantial resources to identify instances in which participants in the FHA program fail to meet those standards.”
“Today’s settlement demonstrates HUD’s commitment to hold lenders accountable for serious violations of FHA requirements,” said General Counsel Helen R. Kanovsky of HUD’s Office of General Counsel. “We’re pleased that Franklin American accepted financial responsibility for its actions, which will restore funds to FHA.”
The settlement was the result of a joint investigation conducted by HUD, HUD OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Colorado.
Francisco Melgar-Cabrera Sentenced to Life ImprisonmentRead the Press Release
ALBUQUERQUE – Francisco Melgar-Cabrera was sentenced this afternoon in federal court in Albuquerque, N.M., to life imprisonment for his conviction on felony murder and Hobbs Act charges arising from the murder of Stephanie Anderson and the armed robberies of two Albuquerque-area restaurants in June 2009. Melgar-Cabrera, 32, a Salvadoran national, was sentenced to life imprisonment on the felony murder charge and 20 years in prison on the Hobbs Act charges.
In announcing the sentence, U.S. Attorney Damon P. Martinez said, “Although the life sentence imposed on Melgar-Cabrera cannot restore Stephanie Anderson to her family and friends, I hope it brings them a measure of comfort and closure.” The U.S. Attorney commended the seasoned officers and career prosecutors who devoted more than six years to bring justice to Ms. Anderson’s family and the others who were victimized by Melgar-Cabrera and his three cohorts. “In particular, I want to recognize Assistant U.S. Attorney Louis E. Valencia and ATF Special Agent Paul Jessen, both of whom were on the case from the beginning and repeatedly delayed retirement plans until all four defendants were convicted and sentenced. They exemplify the Justice Department’s resolve to hold criminals accountable.”
“I am extremely proud of the work of this office and our law enforcement partners on this case. I would like to recognize the investigative efforts of ATF Special Agents – especially the efforts of ATF Special Agent Paul Jessen, who for years doggedly pursued Melgar-Cabrera for his role in Stephanie Anderson’s murder. I hope the life sentence imposed today brings some peace to Stephanie’s family,” said Special Agent in Charge Thomas G Atteberry of ATF’s Phoenix Division. “ATF is committed to working with our law enforcement partners – at home and around the world – to take violent criminals off the streets and bring them to justice.”
“Violent criminals are grabbing headlines lately, but today’s sentencing proves they are no match for law enforcement as we work together to bring them to justice, no matter where they try to hide or how long it takes to find them,” said FBI Acting Special Agent in Charge Robert White. “Stephanie Anderson’s murder was a tragic loss for our community and the FBI and its partners were not going to let this crime go unpunished. Many dedicated professionals worked tirelessly with us on this case, including the FBI Legal Attaché in San Salvador, the U.S. Department of State, U.S. Department of Justice Office of International Affairs, U.S. Attorney’s Office, the FBI’s Transnational Anti-Gang Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, the Government of El Salvador, and the Albuquerque Police Department.”
“We hope today’s sentencing brings a sense of closure and justice to Ms. Anderson’s family and all of those involved,” said Chief Gorden Eden, Jr., of the Albuquerque Police Department. “Our goal in law enforcement is to pursue justice no matter how long it takes or how many hurdles we may face. I am thankful for all of our law enforcement partnerships and the positive impact we are able to have especially when dangerous criminals like Melgar-Cabrera are prosecuted in the federal system.”
Melgar-Cabrera and two co-defendants Marvin Aguilar-Lopez and Pablo De Leon Ortiz, both Salvadoran nationals, were indicted in Oct. 2009, and charged with violating the Hobbs Act by robbing a business involved in interstate commerce, felony murder and firearms offenses. The charges arose from the armed robbery of a Denny’s Restaurant located at 1602 Coors Blvd. NW in Albuquerque on June 20, 2009, and the murder of Ms. Anderson, a cook at the restaurant.
In April 2010, the indictment was superseded to add Melgar-Cabrera’s brother, Jose Melgar-Cabrera, also a Salvadoran national, as a defendant. Jose Melgar-Cabrera was charged as an accessory after the fact for assisting Melgar-Cabrera’s flight to avoid apprehension. A second superseding indictment, filed in Oct. 2010, added four new robbery and firearms offenses against Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz that arose out of the armed robbery of a Lone Star Steakhouse & Saloon located at 10019 Coors Blvd. NW in Albuquerque on June 13, 2009.
The trial of Melgar-Cabrera for the armed robbery of two businesses involved in interstate commerce and felony murder began on Aug. 25, 2015 and ended Sept. 3, 2015, when the jury returned a verdict of guilty on all three charges. The evidence established that Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz robbed the Lone Star Steakhouse at gunpoint at 11:00 a.m. on June 13, 2009. Witnesses testified seeing two masked men with firearms rush the restaurant’s general manager, who was on his way to deposit the prior day’s receipts, and push their guns into his stomach. One of the masked men took the money bag from the general manager and the other took money from the general manager’s wallet. A third man drove the two masked men away in a gold-colored car. The evidence revealed that Melgar-Cabrera was the man who drove the two masked men, Aguilar-Lopez and De Leon Ortiz, away from the Lone Star Steakhouse.
The evidence also established that on the morning of June 20, 2009, Melgar-Cabrera, Aguilar-Lopez and De Leon-Ortiz, who were masked and armed, charged into the Denny’s Restaurant, brandished their weapons, and demanded that everyone get down on the floor. The men were in the Denny’s for a few minutes during which a frenzy of activity ensued including the following: a restaurant employee dropped a tray of beverages and Aguilar-Lopez slipped on the wet floor and fired his weapon; De Leon-Ortiz grabbed the manager, held a gun to his head, and threatened to kill him if he didn’t turn over the restaurant’s money; and Melgar-Cabrera threatened a waitress and demanded that she open the cash register. After Melgar-Cabrera and De Leon-Ortiz grabbed cash out of the register, the three men fled from the restaurant. Shortly thereafter, Ms. Anderson, who was struck by the bullet fired by Aguilar-Lopez, died of a gunshot wound.
Aguilar-Lopez and De Leon Ortiz each entered guilty pleas to armed robbery and felony murder charges. Aguilar-Lopez was sentenced to 40 years in prison and De Leon Ortiz was sentenced to a 35-year term of imprisonment. They will be deported after completing their prison sentences. Jose Melgar-Cabrera pled guilty to being an accessory after the fact and was sentenced to 48 months in prison. After completing his prison sentence, Jose Melgar-Cabrera was deported to El Salvador.
This case was investigated by the Albuquerque offices of ATF and FBI and APD and was prosecuted by Assistant U.S. Attorneys Louis E. Valencia and Presiliano A. Torrez.
Fort Smith Man Sentenced to Ten Years for Transporting Two Minors to Houston to Work as ProstitutesRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Odis Charles Grant, Jr., age 30, aka “Flawless”, of Fort Smith, Arkansas, was sentenced today to 120 months in prison followed by five years of supervised release after pleading guilty to one count of Transportation of Minors with Intent to Engage in Criminal Sexual Activity. The Honorable P.K. Holmes III presided over the hearing in the United States District Court in Fort Smith.
In his plea agreement, Grant admitted to transporting two juveniles from Fort Smith to Texas in November, 2014 with the intent that the two minor females engage in prostitution in the Houston, Texas area. Grant utilized Facebook to recruit and communicate with the minors. Grant also admitted to directing another individual to take photographs of the minors which were used in ads posted in the escort section of a website. According to the minors, they engaged in prostitution while in Houston and provided the money to Grant.
This case was investigated by the Fort Smith Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Former West Virginia State Trooper sentenced for distributing oxymorphoneRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a former West Virginia State Trooper was sentenced today in federal court in Charleston, West Virginia, to two years and six months in federal prison for distribution of oxymorphone. Christopher Lee Saunders, 43, of Beckley, previously pleaded guilty in June 2015 to the federal drug charge.
Saunders admitted that on January 22, 2015, he sold oxymorphone to a confidential informant working with law enforcement. The drug deal took place at the Walmart parking lot located off Robert C. Byrd Drive in MacArthur.
This case was investigated by the West Virginia State Police, and was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Former Huntsville, Alabama, Police Officer Sentenced for Excessive Use of Force and Obstruction of JusticeRead the Press Release
Former Huntsville, Alabama, Police Officer Brett Russell, 48, was sentenced today to 18 months in prison by U.S. District Court Judge Abdul K. Kallon of the Northern District of Alabama for violating the civil rights of a Huntsville man.
On July 30, 2015, a federal jury in Huntsville convicted Russell of deprivation of rights under color of law for assaulting and injuring G.H., a detainee in his custody, as well as obstruction of justice for filing a false police report regarding this incident. According to evidence presented at trial, on Dec. 23, 2011, G.H. was detained in the rear of a police vehicle parked in a hotel parking lot. After initially uttering profanity and kicking a rear window, G.H. had since been sitting handcuffed, compliant and non-resisting for approximately 30 minutes. As officers attempted to remove G.H. from the vehicle to place shackles on him, Russell yanked G.H. from the vehicle. While G.H. was lying handcuffed on the ground, Russell repeatedly punched and kneed G.H. Other officers placed leg shackles on G.H. and Russell transported G.H. to the Madison County Jail. When the jail refused to accept G.H. because of his injuries, Russell transported G.H. to the Huntsville Hospital. Subsequently, Russell wrote and submitted a false incident report claiming that G.H. tried to kick and head butt the officers. Further, Russell omitted from the false report any reference to the fact that he had used force on G.H.
“Law enforcement officers who abuse their power to willfully subject those in their custody to violence and pain will be held accountable,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in such acts of criminal misconduct.”
“The defendant’s abusive and dishonorable behavior is being punished and an errant officer brought to justice,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “I thank the FBI and the Civil Rights Division for their work on this case.”
This case was investigated by the FBI’s Florence Resident Agency. It was prosecuted by Trial Attorney Carroll McCabe of the Civil Rights Division and Assistant U.S. Attorneys Daniel Fortune and Xavier O. Carter Sr. of the Northern District of Alabama.
Former Huntsville Police Officer Sentenced for Excessive Use of Force and Obstruction of JusticeRead the Press Release
BIRMINGHAM – U.S. District Court Judge Abdul K. Kallon today sentenced former Huntsville Police Officer Brett Russell, 48, to 18 months in prison for violating the civil rights of a Huntsville man.
On July 30, 2015, a federal jury in Huntsville convicted Russell of deprivation of rights under color of law for assaulting and injuring G.H., a detainee in Russell’s custody, as well as obstruction of justice for filing a false police report regarding this incident. According to evidence presented at trial, on Dec. 23, 2011, G.H. was detained in the rear of a police vehicle parked in a hotel parking lot. After initially uttering profanity and kicking a rear window, G.H. had since been sitting handcuffed, compliant and non-resisting for approximately 30 minutes. As officers attempted to remove G.H. from the vehicle to place shackles on him, Russell yanked G.H. from the vehicle. While G.H. was lying handcuffed on the ground, Russell repeatedly punched and kneed G.H. Other officers placed leg shackles on G.H. and Russell transported G.H. to the Madison County Jail. When the jail refused to accept G.H. because of his injuries, Russell transported G.H. to the Huntsville Hospital. Subsequently, Russell wrote and submitted a false incident report claiming that G.H. tried to kick and head butt the officers. Further, Russell omitted from the false report any reference to the fact that he had used force on G.H.
“The defendant’s abusive and dishonorable behavior is being punished and an errant officer brought to justice,” said Northern District of Alabama U.S. Attorney Joyce White Vance. “I thank the FBI and the Civil Rights Division for their work on this case.”
“Law enforcement officers who abuse their power to willfully subject those in their custody to violence and pain will be held accountable,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in such acts of criminal misconduct.”
The FBI’s Florence Resident Agency investigated the case. Assistant U.S. Attorneys Daniel Fortune and Xavier O. Carter Sr., and Trial Attorney Carroll McCabe of the Civil Rights Division prosecuted the case.
Former Enzyme Company Owner Sentenced to Prison for Filing False Tax Returns and PerjuryRead the Press Release
An Indiana resident was sentenced to more than two years in prison for filing false federal income tax returns and perjury, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Jared E. Hochstedler, 40, of Fort Wayne, Indiana, was sentenced to 27 months in prison, one year of supervised release and ordered to pay $1,232,739 in restitution to the Internal Revenue Service (IRS). According to court documents, Hochstedler pleaded guilty on Feb. 26 to two counts of willfully filing false income tax returns for 2008 and 2009 and one count of committing perjury during a deposition conducted by the U.S. Securities and Exchange Commission (SEC).
Hochstedler owned Enzyme Environmental Solutions (EESO), a company focused on creating cleaning products using enzymes. As the owner of EESO, Hochstedler participated in stock exchanges of EESO stock with third party companies for which he received more than $2.8 million. Hochstedler failed to report these funds as income on his 2008 and 2009 individual income tax returns. In addition, Hochstedler received loans from these third party companies which he did not repay. Hochstedler used a substantial portion of the loan proceeds for personal expenditures and failed to report that income on his tax returns. In 2009, Hochstedler also sold stock in another company for more than $1 million and failed to report the full amount of the proceeds as a capital gain on his 2009 tax return.
In June 2009, in the course of an investigation, the SEC deposed Hochstedler under oath regarding the stock transactions he executed with the third parties. During the deposition, the SEC inquired about the details of the transactions and Hochstedler lied about the nature of the transactions and the amount of money he received.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Richard M. Rolwing and Christopher P. O’Donnell of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Former Enzyme Company Owner Sentenced to Prison for Filing False Tax Returns and PerjuryRead the Press Release
WASHINGTON – An Indiana resident was sentenced to more than two years in prison today for filing false federal income tax returns and perjury, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Jared E. Hochstedler, 40, of Fort Wayne, Indiana, was sentenced to 27 months in prison, one year of supervised release and ordered to pay $1,232,739 in restitution to the Internal Revenue Service (IRS). According to court documents, Hochstedler pleaded guilty on Feb. 26 to two counts of willfully filing false income tax returns for 2008 and 2009 and one count of committing perjury during a deposition conducted by the U.S. Securities and Exchange Commission (SEC).
Hochstedler owned Enzyme Environmental Solutions (EESO), a company focused on creating cleaning products using enzymes. As the owner of EESO, Hochstedler participated in stock exchanges of EESO stock with third party companies for which he received more than $2.8 million. Hochstedler failed to report these funds as income on his 2008 and 2009 individual income tax returns. In addition, Hochstedler received loans from these third party companies which he did not repay. Hochstedler used a substantial portion of the loan proceeds for personal expenditures and failed to report that income on his tax returns. In 2009, Hochstedler also sold stock in another company for more than $1 million and failed to report the full amount of the proceeds as a capital gain on his 2009 tax return.
In June 2009, in the course of an investigation, the SEC deposed Hochstedler under oath regarding the stock transactions he executed with the third parties. During the deposition, the SEC inquired about the details of the transactions and Hochstedler lied about the nature of the transactions and the amount of money he received.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Richard M. Rolwing and Christopher P. O’Donnell of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
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