Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 19 November 2015
Ride or Die Gang Members Sentenced on Firearm and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TYONE BURTON, a/k/a “Peanut,” age 22, and NYSON JONES, a/k/a “Nycie,” age 31, both of New Orleans, were sentenced yesterday after having previously pled guilty to federal firearm and drug violations.
U.S. District Judge Susie Morgan sentenced BURTON and JONES to 121 months and 87 months, respectively. Additionally, both defendants will serve four years of supervised release following imprisonment.
BURTON and JONES were two of twelve defendants charged with conspiring to distribute cocaine base in the St. Roch neighborhood. In addition, all twelve defendants were charged with conspiring to possess firearms in furtherance of their drug trafficking crimes. Three defendants were also charged with conspiring to violate the Racketeer Influenced Corrupt Organization Act, as well as substantive acts of violence.
To date, eight defendants charged in this case have pled guilty to various charges. Co-defendant ANDREALIE LEWIS was previously sentenced to 48 months incarceration; ERVIN SPOONER was previously sentenced to 108 months of incarceration; TRE CLEMENTS was previously sentenced to 96 months; and ROMALIS PARKER was previously sentenced to 70 months. The following co-defendants are currently pending several sentencing hearings over the next three months: MORRIS SUMMERS, age 25, TYRONE BURTON, a/k/a “Man Man,” age 21; and PERRY WILSON, a/k/a “Yummy,” age 24. Three defendants were convicted following trial and are waiting sentencing as well: DELOYD JONES, a/k/a “Puggy,” age 23; BYRON JONES, a/k/a/ “Big Baby,” age 25; and SIDNEY PATTERSON, a/k/a “Duda Man,” age 24.
According to court documents and evidence presented at trial, the defendants were members and associates of the “Ride or Die” gang, which they also referred to as “R.O.D.” The Ride or Die gang was initially formed in or about 2007 and continued to exist through in or about 2013. During the course of the federal investigation into the gang, agents learned that the defendants used a house, located at 1632 Mandeville Street, among other locations, as a base of operations to package, sell, and store narcotics, as well as store firearms.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Nolan D. Paige, Marquest Meeks and Special Assistant United States Attorney Brian Ebarb were in charge of the prosecution.
Prior Felon from Albuquerque Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Trinidad Gallegos, 46, of Albuquerque, N.M., pleaded guilty today in federal court to firearms charges, announced U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI), Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD), and Bernalillo County Sheriff Manuel Gonzales, III. Under the terms of his plea agreement, Gallegos will be sentenced to eight years in federal prison followed by a term of supervised release to be determined by the court.
Gallegos was arrested in July 2015, on an indictment charging him with assaulting a federal law enforcement officer with a deadly weapon and being a felon in possession of a firearm and ammunition on Aug. 20, 2014, in Bernalillo County, N.M. On that day, Gallegos was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Court records reflect that Gallegos has been convicted of possession of a controlled substance, possession and uttering of counterfeit obligations and securities, making false statement, larceny, forgery, conspiracy to commit unlawful taking of a vehicle, possession of methamphetamine with intent to distribute, possession of a firearm or destructive device by a felon and felon in possession of a firearm and ammunition.
During today’s proceedings, Gallegos pled guilty to being a felon in possession of firearms and ammunition. Gallegos admitted that on Aug. 20, 2014, as he attempted to flee from law enforcement officers in a tow truck where he possessed a shotgun and ammunition, he collided into a vehicle driven by a federal law enforcement officer. Gallegos further admitted that after colliding with the officer, he continued driving the tow truck backwards down the street and crashed into another vehicle. Gallegos ran away and broke into homes as he attempted to evade arrest. Gallegos acknowledged that as a convicted felon, he was not allowed to possess firearms or ammunition.
Gallegos remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque offices of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office with assistance from the 2nd Judicial District Attorney’s Office.
Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Portland Man Pleads Guilty to Armed Bank Robbery and Gun ChargesRead the Press Release
Contact: Jamie Guerrette
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Francis J. Ready, 59, of Portland, pled guilty in U.S. District Court to armed bank robbery and using a firearm during the commission of a crime of violence.The charges arose out of the armed bank robberies of TD Bank in Portland on October 3, 2015 and of Bangor Savings Bank (“BSB”) in Portland on October 12, 2015. In both instances, the defendant used a firearm to rob the banks. He absconded with $2,846 from TD Bank and with $14,189 from BSB. Following the BSB robbery, he was apprehended by a Portland Police officer in a nearby parking area and found to be in possession of a silver Harrington and Richardson revolver.
Ready faces up to 25 years in prison, five years of supervised release, and a $250,000 fine on the armed bank robbery charges and a mandatory consecutive seven years in prison for using a firearm to commit the robberies.
The investigation was conducted by the Portland Police Department; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
Portland Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Moses Okot, 27, of Portland has been charged by criminal complaint with being a felon in possession of a firearm.The charge arises out of a shooting that took place on November 16, 2015 in the vicinity of Fore and Market Streets in Portland’s Old Port district. According to the complaint, Okot possessed a Springfield Armory USA Model SA XD-9 subcompact handgun that was recovered from a vehicle that he drove that day. Okot was prohibited from possessing the firearm because of a 2011 conviction for felony murder.
If convicted, Okot faces up to 10 years in prison, three years of supervised release, and a $250,000 fine.
It is expected that Okot will make an initial appearance in federal court today at noon.
The investigation is being conducted by the Portland Police Department; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.Ponemah Man Convicted of Aggravated Sexual Assault on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction of DANA LEE COBENAIS, 23, an enrolled member of the Red Lake Band of Chippewa, for aggravated sexual abuse. A jury returned a guilty verdict after a three-day trial before Senior U.S. District Judge Richard Kyle. A sentencing date has not been set.
As proven at trial, on March 14, 2015, a victim, Jane Doe, had spent part of the day with COBENAIS. When she decided to leave his company, COBENAIS got into her car and would not leave until she agreed to give him a ride. During the course of the ride, COBENAIS grew angry and punched the victim several times in the face. He proceeded to sexually assault her. COBENAIS then got out of the vehicle. The victim drove away but her vehicle ran out of gas near the town of Redby, Minn. Red Lake Police responded to a call for help and noticed that the woman was bleeding extensively. She was taken to the hospital where emergency surgery was performed to repair extensive injuries.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
This case is the result of an investigation conducted by the FBI and Red Lake Police Department.
This case is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:DANA LEE COBENAIS, 23
Ponemah, Minn.Convicted:
- Aggravated sexual abuse, 1 count
Plattsburgh Man Receives 40 Years for Child Pornography ProductionRead the Press Release
PLATTSBURGH, NEW YORK – Heath Powers, age 34, of Plattsburgh, New York, was sentenced today to serve 40 years in prison as a result of his convictions for production, distribution and possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
U.S. District Court Judge Mae A. D’Agostino also ordered Powers to serve a lifetime of supervised release, to begin upon his release from prison. Powers must also register as a sex offender.
Powers, a former youth theater group leader, admitted that between June and August 2014, he used a minor to engage in sexually explicit conduct and took photos of that conduct. Powers distributed images he produced of his victim in the hopes of receiving, from other people, additional child pornography depicting other minors.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Katherine Kopita.
This case is prosecuted as part of 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 http://www.justice.gov/psc/.
Pittsburgh Man Pleads Guilty to Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH -A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Anthony Donald, 48, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Anthony Donald was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for April 8, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Anthony Donald.
Physician Sentenced to 72 Months in Prison for Role in Detroit-Area Medicare Fraud SchemeRead the Press Release
A Detroit-area physician who led and directed a multimillion-dollar Medicare fraud scheme through his medical practice was sentenced today to 72 months in prison.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) made the announcement.
Dr. Hicham A. Elhorr, 48, of Dearborn, Michigan, was sentenced by U.S. District Judge Nancy G. Edmunds of the Eastern District of Michigan. In addition to imposing the prison term, Judge Edmunds ordered Elhorr to pay $2,073,108.16 in restitution.
According to admissions in his plea agreement, from approximately August 2008 through September 2012, Elhorr and his coconspirators fraudulently billed Medicare $4.2 million for purported in-home physician services. Elhorr admitted that he employed unlicensed individuals through his visiting physician practice, House Calls Physicians PLLC, who held themselves out as licensed physicians and purported to provide physician home visits and other services to Medicare beneficiaries in Michigan. The unlicensed individuals prepared medical documentation that Elhorr and other licensed physicians signed as if they had performed the visits when, in fact, no licensed physicians had treated the beneficiaries.
This case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. The case was prosecuted by former Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen and F. Turner Buford of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged approximately 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Philadelphia Man Charged with Illegally Receiving Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Rannie Henley, Sr., 78, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for his mother, after his mother’s death in January 2011 until his fraud was discovered in February 2015. The defendant’s alleged actions resulted in a loss to the government of approximately $60,567.
If convicted, the defendant faces a substantial period of incarceration, a three‑year period of supervised release, restitution to the government of $60,567, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged in Pizzeria RobberiesRead the Press Release
PHILADELPHIA - George Smith, 26, of Philadelphia, PA, was charged today by Indictment with Hobbs Act robberies and attempted Hobbs Act robbery, announced United States Attorney Zane David Memeger.
According to the indictment, on August 20, 2015, Smith robbed the Pizza Hut restaurant at 2916 N. Broad Street, in Philadelphia and, a day later, robbed the Domino’s Pizza at 2628 N. Broad Street. It is further alleged that on August 24, 2015, Smith robbed the 7-Eleven at 2042 N. Broad Street. If convicted of all charges, Smith defendant faces a maximum possible sentence of 60 years in prison, a fine, up to three years of supervised release, a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peabody Man Sentenced to Prison for Stealing Almost a Million Dollars Worth of iPads from EmployerRead the Press Release
BOSTON – The former Director of Technical and Development Operations at a South Boston-based media technology company was sentenced today for a fraud scheme in which he stole almost a million dollars’ worth of iPads and other Apple products from his employer.
Michael S. Denning, 34, of Peabody, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 78 months in prison, three years of supervised release and ordered to pay restitution of $1,391,618. In January 2015, Denning pleaded guilty to one count of mail fraud and one count of filing false tax returns. After Denning was charged with the crime, he went on to commit a similar crime at a different company.
In late 2010, Denning began working at a South Boston-based media technology company. Denning’s job responsibilities included purchasing computer equipment, software, and other technology-based products for use by company employees. Shortly after he was hired, Denning began ordering extra Apple computer equipment, primarily iPads, from a wholesale computer vendor used by the company. Denning then intercepted these packages and sold them for cash, initially on eBay and Craigslist and later to eBay resellers. Denning generated and submitted fraudulent invoices so that the company would pay the wholesale vendor. Denning would change the description on the invoices so that they would appear to be for other items that he had legitimately purchased, such as software licenses, toner cartridges, computer monitors and other items. He also took measures to conceal the fraud with the wholesale vendor, for instance by falsely noting that the iPads ordered were for “new hires.” By the end of 2013, Denning, who was promoted to Director of Technical and Development Operations, had ordered almost a million dollars of Apple computer equipment in this manner. Only a handful of these products were legitimate purchases for employees. Denning also filed income tax returns that falsely listed his salary as his only source of income.
While Denning was negotiating a plea to the above charges, he began working for a new employer, and again developed a scheme involving creating false invoices. By the time the scheme was uncovered, Denning had stolen $380,000. The judge noted that he had considered the additional fraud in imposing the sentence of 78 months.
United States Attorney Carmen M. Ortiz; James V. Buthorn, Acting Special Agent in Charge of the United States Postal Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Offshore Oil Platform Operator Agrees to More Than $41 Million in Penalties for Unauthorized Oil Discharges and Improper Operations in Gulf of MexicoRead the Press Release
In the continuing joint enforcement action by the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Environmental Protection Agency (EPA) and in a separate BSEE administrative action, ATP Oil & Gas Corp. ATP has agreed to resolve actions under the Clean Water Act (CWA) and the Outer Continental Shelf Lands Act (OCSLA) concerning unauthorized discharges of oil and chemicals from a floating oil and gas production platform into the Gulf of Mexico, announced the Department of Justice, BSEE and EPA. The two agreements impose a combined total of $41.85 million in judicial and administrative penalties for the violations.
The first settlement agreement, lodged today in the U.S. District Court for the Eastern District of Louisiana, resolves all U.S. claims against ATP in a case filed in February 2013. The United States alleges that ATP discharged oil and an unauthorized chemical dispersant into the Gulf of Mexico from ATP’s oil and gas production platform known as the ATP Innovator. A BSEE inspection of the ATP Innovator in March 2012 revealed alleged unlawful discharges of oil and a piping configuration that routed an unpermitted dispersant – a chemical mixture to break up oil – into the facility’s wastewater discharge pipe to mask excess oil being discharged into the ocean. At the time of the discovery, ATP was the operator of the facility and ATP Infrastructure Partners (ATP-IP) was the non-operating owner. The ATP Innovator was operating in the Mississippi Canyon area of the Gulf of Mexico, approximately 45 nautical miles offshore of southeastern Louisiana. The platform was removed from the deepwater production site in 2013 and towed to port in Corpus Christi, Texas. ATP is going through a Chapter 7 bankruptcy proceeding and is no longer operating. The penalty and injunctive relief claims against ATP-IP were settled last year and approved by the court in May of this year.
The settlement agreement resolves the judicial claims against ATP by imposing a CWA civil penalty of $38 million. Injunctive relief concerns related to the safe future operation of the ATP Innovator were addressed by ATP-IP in a prior settlement.
A related settlement agreement approved today by the U.S. Bankruptcy Court for the Southern District of Texas resolves the U.S. claim for judicial and administrative penalties that was filed in the bankruptcy action. Through the settlement, ATP agrees to an allowed unsecured claim of $38 million for the judicial civil penalty judgment specified in the District Court Settlement Agreement.
In addition, ATP agrees in the Bankruptcy Settlement Agreement to an administrative penalty of $3.85 million for related violations of OCSLA regulations. BSEE cited ATP for several violations of OCSLA related to the oil discharges and other improper operations on the platform that were identified during the March 2012 inspection and ATP appealed some of those citations to the Department of the Interior’s Board of Land Appeals (IBLA). Through the Bankruptcy Settlement Agreement, the $3.85 million administrative penalty for the citations will be treated as a final allowed claim in the bankruptcy case.
“ATP’s illegal and unsafe actions in the Gulf of Mexico warrant this concerted enforcement effort to deter it and others in the oil and gas industry from committing similar misconduct,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “No operator should place oil production goals ahead of protection of its workers or the marine environment.”
“This case serves as a reminder that BSEE will thoroughly investigate illegal conduct in offshore oil and gas operations and will aggressively pursue enforcement actions where appropriate,” said Director Brian Salerno of BSEE. “We will continue to work with the Department of Justice, the EPA and our other federal partners to bring these types of actions against companies that break the law and put their workers or the environment at risk.”
“Protecting the Gulf means protecting one of the nation’s most vital economic and ecologic resources,” said Regional Administrator Ron Curry, EPA. “Companies operating in the Gulf must do their part in ensuring it remains as healthy and productive as possible.”
The proposed settlement agreement is subject to a 30-day public comment period and court review and approval. A copy of the Settlement Agreement is available on the Department of Justice website at: www.justice.gov/enrd/consent-decrees.
Odessa Brothers Sentenced to Federal Prison for Drug/Firearms ViolationsRead the Press Release
In Midland, two Odessa brothers convicted on federal drug and firearms charges earlier this year were sentenced to lengthy prison terms announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division, Ector County Sheriff Mark Donaldson and Odessa Police Chief Timothy Burton.
Pedro Saucedo Madrid (aka “Kiko”), age 40, and Elizar Saucedo Madrid (aka “Chiquito”), age 38, were sentenced to 460 months and 255 months in federal prison, respectively, by Senior U.S. District Judge Robert A. Junell earlier today.
In August, a federal jury convicted Pedro Saucedo Madrid of one count of conspiracy to possess with intent to distribute a controlled substance; three counts of possession of a firearm during and in relation to a drug trafficking crime; and, two counts of felon in possession of a firearm. The jury also convicted Elizar Saucedo Madrid of one count of conspiracy to possess with intent to distribute a controlled substance; two counts of possession of a firearm during and in relation to a drug trafficking crime; and, one count of felon in possession of a firearm.
On December 5, 2014, HSI special agents, Ector County Sheriff’s deputies and Odessa Police officers executed a search warrant at the defendants’ residence and seized distribution quantities of methamphetamine, heroin and cocaine along with two semi-automatic weapons. During a traffic stop on February 7, 2015, Ector County authorities seized cocaine, methamphetamine, a sawed-off 12-gauge shotgun and three 9mm semi-automatic pistols from inside Pedro Madrid’s vehicle. Testimony revealed that both defendants had prior felony convictions; Pedro in 1993 for Arson in Ector County; and Elizar, in 2008 for Obstruction and Retaliation in Ector County. Courtroom testimony also revealed that Pedro threatened the life of his co-defendant, Albert Prieto of Odessa, in an attempt to prevent Prieto from testifying during trial.
Prieto, who pleaded guilty to the drug conspiracy charge prior to jury selection, was sentenced earlier this month to 63 months in federal prison.
This case was investigated by the Homeland Security Investigations (HSI) together with the Ector County Sheriff’s Department and the Odessa Police Department. Assistant United States Attorney LaTawn Warsaw prosecuted this case on behalf of the Government.
News ConferenceRead the Press Release
News Conference
November 20, 2015
2:30 p.m.
U.S. Attorney’s Office, 445 Broadway, Albany, NY 12207
Second FloorALBANY, NEW YORK – United States Attorney Richard S. Hartunian, along with Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation, and Ronald Whitsett, Assistant Special Agent in Charge at the New York Office of IRS-Criminal Investigation, will hold a news conference tomorrow, November 20, at 2:30 p.m., in the U.S. Attorney’s Office.
The conference concerns the sentencing of Scott Valente, which is scheduled to take place in Albany on November 20, starting at 11 a.m., before the Hon. Gary L. Sharpe, U.S. District Judge.
Media has been granted permission to bring cameras and cell phones to the U.S. Attorney’s Office Second-Floor Conference Room.
News releases will be distributed at the conference. Further information will not be available until the conference.
New Jersey Couple Sentenced for Roles in Tax FraudRead the Press Release
TRENTON, N.J. – A Union County, New Jersey certified public accountant who ran a tax return preparation business with his wife was sentenced today to four years in prison for his role in a multi-year tax fraud scheme, in which he filed hundreds of false tax returns with the IRS to generate fraudulently inflated refunds for clients, some of which he took for himself, U.S. Attorney Paul J. Fishman announced.
Following a two-week trial before U.S. District Judge Anne E. Thompson in June 2015, Courtney Johnson, 45, of Union Township, New Jersey, was convicted of six counts of aiding and assisting in the preparation of false federal income tax returns. Judge Thompson imposed the sentence today in Trenton federal court. Johnson’s wife, Carol Johnson, 45, who ran the business with him, previously pleaded guilty to misprision of a felony and was sentenced Nov. 5, 2015, to three years of probation. The Johnsons operated tax preparation businesses in South Orange and Jersey City, New Jersey.
According to documents filed in this case and the evidence at trial:
Courtney Johnson prepared and filed federal individual income tax returns that were materially false and fraudulent. The returns attached schedules for fictitious businesses that the taxpayers did not own or operate, inflated charitable contributions, fabricated itemized deductions – all to generate fraudulently inflated refunds.
Judge Thompson also sentenced Courtney Johnson to one year of supervised release, fined him $50,000 and ordered him to pay $10,280 in restitution. She ordered Carol Johnson to pay $93,385 in restitution.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Jane H. Yoon and Jillian J. Reyes of the Criminal Division in Newark.
Defense counsel:
Courtney Johnson: Thomas R. Ashley Esq., Newark
Carol Johnson: Leslie Sinemus Esq., South Orange, New Jersey
Montgomery County Man Sentenced to over Three Years in Prison Arising from a $1.1 Million Fraud Scheme Targeting Victims Found on Online Dating SitesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Krist Koranteng, age 34, of Burtonsville and Laurel, Maryland, today to 33 months in prison, followed by three years of supervised release, for a mail and wire fraud conspiracy, and for money laundering, in connection with a scheme in which the conspirators pretended to be romantically interested in the victims in order to cause the victims to send money to Koranteng’s business. Koranteng was also sentenced to five months in prison, consecutive to the fraud sentence, for violating his supervised release related to a previous federal drug conviction. Judge Grimm also entered an order requiring Koranteng to pay restitution of $1,171,657, which represents the full amount of the victims’ losses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, between September 2012 and February 2014, Koranteng and others executed a scheme in which the conspirators searched online dating websites to initiate romantic relationships with men and women, including several elderly individuals, in order to obtain money from those individuals. Members of the conspiracy used phone calls, emails, and text messages to form romantic relationships with the victims.
According to the plea agreement, to execute the scheme, the conspirators used a number of false stories and promises to convince the victims to give money to the members of the conspiracy, including: stories about investing in fake gold that required payments for shipping and storage; fictitious sick family members who needed money; fake hospital bills; and fake plane trips to visit the victims. Members of the conspiracy convinced the victims to mail checks to Kristsons LLC, a corporation that Koranteng created and controlled, or to wire money into bank accounts held in the name of that corporation, which Koranteng also controlled.
To conceal the scheme from the victims, the conspirators created false documents, including false certificates of origin certifying the existence of gold bars, and false documentation creating the impression that the gold bars were being stored at a safe house for a fee.
Koranteng disbursed the money that he received from the victims by transferring money to other accounts, by withdrawing sums of money, and by writing checks to other individuals. For example, on May 30, 2013, Koranteng transferred by wire $39,039.88 from one of his business’ bank accounts to another account, with the knowledge that the transaction involved the proceeds of a criminal offense.
Koranteng was regularly in communication with his co-conspirators immediately following a victim’s transfer of money into Koranteng’s business bank accounts. For example, on February 20, 2013, a victim transferred $25,000 into Koranteng’s business bank account in Maryland. That same day, Koranteng’s co-conspirator sent an email to Koranteng that included two attachments: a receipt for that victim’s wire transfer; and a purported agreement indicating the victim believed she was investing in gold bars by transferring the money to Koranteng.
In addition to receiving money from the victims during the conspiracy, Koranteng also used a false name to order and send roses to one victim. Shortly thereafter, that victim mailed a check in the amount of $65,000 to Koranteng’s business in Maryland, which Koranteng deposited.
Koranteng’s participation in the wire and mail fraud conspiracy violated the terms of his supervised release for a 2013 conviction for conspiracy to distribute and possess with intent to distribute heroin.
United States Attorney Rod J. Rosenstein praised the FBI, U.S. Secret Service and Montgomery County Police Department for their work in the investigation, and thanked the Ohio Attorney General’s Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and David I. Salem, who prosecuted the case.
Mobile Man Sentenced to More Than Five Years in Child Pornography CaseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Theron Bryce Brown, 42, of Mobile, was sentenced this morning to 65 months in prison for receiving child pornography. Following his release from prison, Brown will be supervised for fifteen years by the United States Probation Office and required to register as a sex offender.
Brown pled guilty to receiving child pornography via the internet. As part of his plea, Brown admitted that he received images of child pornography via the internet via a laptop computer in 2010 and 2011.
This case was investigated by the Mobile Police Department and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Sean P. Costello. The investigation was pursued as part of Project Safe Childhood, the Department of Justice’s initiative to combat the proliferation of technology-facilitated sexual exploitation crimes against children. For more information, please visit http://www.justice.gov/psc
Missouri and Arkansas Physician Sentenced to 15 Years for Online Sexual Enticement of a ChildRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Donald Wayne Lamoureaux, age 69, of Hardy, Arkansas, was sentenced today to 15 years in federal prison and ten years of supervised release on one count of Coercion and Enticement of a Minor. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith. Lamoureaux previously practiced family medicine in Horseshoe Bend, Arkansas and Dexter, Missouri and was also employed at the VA Medical facility in West Plains, Missouri.
According to court records, officers with the Fort Smith Police Department began an undercover online investigation on January 4, 2015 directed at individuals who were using the internet to target minors for purposes of engaging in illegal sexual activity. During the operation, an undercover officer entered an internet chat room posing as an adult mother offering her four year old daughter for sexual exploitation. The undercover officer then made contact with the Defendant, later identified as Donald Wayne Lamoureaux. During the online conversation, Lamoureaux stated that he was a family practice doctor living in Northeast Arkansas, and provided the undercover officer with a picture of himself. From the information and picture provided, the undercover officer was able to identify the individual as Donald W. Lamoureaux. Lamoureaux then expressed that he would like to meet the undercover officer and her four year old daughter for sexual purposes. Following more discussion, the undercover officer and Lamoureaux scheduled a meeting for February 6, 2015 at a hotel in West Plains, Missouri with the supposed and stated purpose for him to sexually abuse the child. On February 2, 2015, Lamoureaux asked the undercover officer to set up a bank account so he could deposit money for expenses associated with the transportation of the four-year-old child to meet with him. Lamoureaux made the deposit in the amount of $300.00 on February 4, 2015. He was arrested in West Plains, Missouri on Friday, February 6, 2015, when he arrived at the meeting location.
This case was investigated by the Fort Smith Police Department, Homeland Security Investigations, the Northwest Arkansas/ River Valley Internet Crimes Against Children Taskforce, the West Plains Police Department, and the Southwest Missouri Cyber Crimes Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
The 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.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Mississippi Man Arrested and Charged with Attempted Child Enticement and Transportation of Child PornographyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest and charging by criminal complaint of Clayton Junior Thornburg (53, Luka, Mississippi) for attempted child enticement and transportation of child pornography. If convicted, he faces a maximum penalty of life in federal prison.
According to the criminal complaint, beginning in August, 2015, and continuing through November 18, 2015, Thornburg communicated online with an undercover Homeland Security Investigations special agent who was posing as a 13-year-old girl. During the online communications, Thornburg graphically discussed the illegal sexual activities that he wanted to engage in with the “child” and sent the “child” an image of his penis. Additionally, he sent the “child” both child and adult pornography, including videos that were sadistic in nature.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mexican National Sentenced to 96 Months in Prison for Armed Robbery of a McDonald’s Restaurant in New MexicoRead the Press Release
ALBUQUERQUE – Pablo Salgado-Cervantes, 25, a Mexican national illegally residing in Albuquerque, N.M., was sentenced today in federal court to 96 months and one day in prison for violating the Hobbs Act and federal firearms laws by brandishing a firearm during an armed robbery of a McDonald’s restaurant on Sept. 3, 2014. Salgado-Cervantes will be deported after completing his prison sentence.
Salgado-Cervantes was charged on Sept. 4, 2014, in a criminal complaint with robbing the McDonald’s restaurant located at 5900 Menaul NE in Albuquerque at gunpoint on three separate occasions: July 1, 2014, July 9, 2014 and Sept. 3, 2014. The criminal complaint also charged him with robbing the McDonald’s restaurant located at 8315 Montgomery Blvd. NE in Albuquerque at gunpoint on July 9, 2014.
On Jan. 21, 2015, Salgado-Cervantes was charged in a five-count indictment with four counts of violating the Hobbs Act by robbing a business involved in interstate commerce and one count of brandishing firearms during crimes of violence.
Salgado-Cervantes was arrested on the federal charges on Feb. 9, 2015, after he was transferred into federal custody from state custody where he was facing related state charges. The state charges were subsequently dismissed in favor of federal prosecution.
On Aug. 19, 2015, Salgado-Cervantes pled guilty to Counts 4 and 5 of the indictment. In entering his guilty plea, Salgado-Cervantes admitted that on Sept. 3, 2014, he robbed the McDonald’s restaurant located at 5900 Menaul NE. He also admitted brandishing a firearm to coerce an employee to give him money from the safe. Salgado-Cervantes further admitted hitting the employee with the butt of his firearm before fleeing from the restaurant with the cash he stole.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Mexican National Sentenced to 20 Years Imprisonment for Distributing Methamphetamine, Heroin, and Cocaine in Madison and Norfolk, NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced that Eduardo Valenzuela-Nunez, 34, of Sonora Mexico, was sentenced on November 19, 2015, to 20 years in prison by United States District Judge John M. Gerrard. Valenzuela-Nunez had previously pled guilty for his involvement in a conspiracy responsible for distributing hundreds of pounds of controlled substances in Nebraska as well as throughout the United States. Locally, the conspirators were involved in the distribution of multiple pounds of “ice” methamphetamine, heroin, and cocaine in the Madison and Norfolk, Nebraska, areas dating back to January of 2002.
This case was the result of a joint investigation by the Drug Enforcement Administration, the Nebraska State Patrol, and Homeland Security Investigations.
Mexican National Indicted for Violations of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OMAR RICO-ALMANZA, age 34, a citizen of Mexico, was charged in a one-count Indictment for violations of the Federal Gun Control Act.
According to the Indictment, on or about November 5, 2015, RICO-ALMANZA, an alien present illegally in the United States, was found in possession of a SCCY, Model CPX-2, 9mm semi-automatic pistol.
If convicted of these charges, RICO-ALMANZA faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Mason Woman, Megan Kolberg, Guilty of Embezzling from Mason State BankRead the Press Release
Megan Kolberg Admits to Stealing Over $100,000.00 and Staging Armed Bank Robbery
GRAND RAPIDS, MICHIGAN — United States Attorney Patrick A. Miles, Jr., announced today that Megan Kolberg, age 37, of Mason, Michigan, pled guilty in federal court to bank embezzlement. She faces up to 30 years’ imprisonment, supervised release of up to five years, and will be ordered to pay restitution to Mason State Bank.
According to the plea agreement, Kolberg admitted to embezzling more than $130,000 from Mason State Bank’s Cedar Street branch between December 2009 and May 21, 2013, where she worked as a teller. She regularly embezzled cash from the bank and concealed her embezzlement by making false entries in the bank’s books and records. On May 21, 2013, as bank officials and law enforcement officers were beginning to uncover her embezzlement, Kolberg reported that as she was checking the outside ATM prior to closing the bank for the day, an armed man emerged from some nearby bushes, stole approximately $120,000 from the ATM and her teller drawer, and destroyed the surveillance tape. At her plea hearing, Kolberg admitted that she staged the bank robbery in an effort to explain why the balances of the accounts that she controlled at the bank were greater than the actual cash on hand at the branch.
“Crimes of this nature are not just crimes against an institution, they cause financial losses to the public.” said David P. Gelios, Special Agent in Charge of the FBI, Detroit Division. “It was a strong collaboration between our Lansing office and the Mason Police Department that solved this case and, ultimately, that’s a win for the public.”
Kolberg will be sentenced in the United States District Court for the Western District of Michigan on February 29, 2016 at 2:00 p.m.
The investigation was conducted by the Lansing office of the Federal Bureau of Investigation and the Mason Police Department. The prosecution is being handled by Assistant U.S. Attorney Ronald M. Stella.
END
Man Arrested in Wilkes-Barre After Drug Transaction Sentenced on Firearms Related OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jorge Mojica, age 25, of Wilkes-Barre was sentenced yesterday by U.S. District Court Judge Richard P. Conaboy in Scranton, for possessing and brandishing a firearm in connection with a drug trafficking offense. Judge Conaboy sentenced Mojica to 84 months in prison to be followed by three years of federal supervised release.
According to United States Attorney Peter Smith, Mojica was arrested after selling .12 grams of heroin in the parking lot of Chacko’s Bowling Center on Wilkes-Barre Boulevard, Wilkes-Barre, Pennsylvania. The car Mojica was riding in at the time of the illegal drug transaction was pulled over by police and Mojica was found to be in possession of an additional 2.3 grams heroin and two loaded firearms.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
The case was investigated by the ATF, Wilkes-Barre Police Department, and the Pennsylvania State Police. Special Assistant U.S. Attorney Jill Mathews, of the Luzerne County District Attorney’s Office, and Assistant U.S. Todd K. Hinkley prosecuted the case.
# # #
Luzerne County Man Sentenced to 97 Months in Prison for Receiving and Distributing Child PornographyRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 25-year-old Pittston man who admitted to receiving and distributing child pornography between 2013 and February 2015, was sentenced yesterday to 97 months in prison by U.S. District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney Peter Smith, the defendant, Steven Wolfe, previously pleaded guilty to using a computer to download and distribute images of child pornography to others, including persons in the United Kingdom.
Wolfe was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations and Kent Police in England. Luzerne County Detectives and Pittston Police assisted in the investigation.
Judge Mariani ordered Wolfe to serve five years on supervised release following his prison sentence. Wolfe must also register as a sex offender and comply with all of the requirements of the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative
launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
# # #
Los Banos Woman Indicted for Stealing Social Security BenefitsRead the Press Release
FRESNO, Calif. — Alice Pigg, 63, of Los Banos, was indicted yesterday by a federal grand jury charging her with stealing benefits paid by the United States Social Security Administration (SSA) and concealing material information from the SSA to obtain benefits, United States Attorney Benjamin B. Wagner announced.
According to the indictment, from December 2008 to June 2014, Pigg stole money paid by the SSA by failing to disclose, despite multiple inquiries from the SSA, that she lived with her husband and shared financial resources with her husband. Pigg shared a bank account that received her husband’s salary, which was at least $140,000 a year during the time period in which Pigg stole money from the SSA, and which later received his pension benefit payments. As a result, Pigg obtained SSA benefits to which she was otherwise not entitled and used them for her own personal expenses.
This case is the product of an investigation by the U.S. Social Security Administration, Office of Inspector General. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.
If convicted of stealing public money, Pigg faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of concealing material information for use in obtaining SSA benefit payments, Pigg faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Local Immigration Lawyer Sentenced to 24 Months in Federal Prison on Aggravated Identity Theft ConvictionRead the Press Release
DALLAS — Sherin Thawer, a Dallas attorney, was sentenced today by U.S. District Judge Jane J. Boyle to 24 months in federal prison, following her guilty plea in August 2015 to a federal felony offense stemming from her work in representing aliens, that is, non-U.S. citizens, before the U.S. Department of Homeland Security (DHS), U.S. Citizen and Immigration Service (USCIS), announced U.S. Attorney John Parker of the Northern District of Texas.
Thawer, 45, pleaded guilty to one count of aggravated identity theft. She was initially on pre-trial release following her arrest on an indictment in February 2015; however, she has been in custody since June 15, 2015, when the Court revoked her pre-trial release after finding she violated its conditions by continuing to practice immigration law.
According to documents filed in the case, Thawer represented aliens before USCIS when they were applying for various types of visas to enter or remain in the U.S., including through a U Nonimmigrant Status or U-Visa. To be eligible for a U-Visa, the alien must have been a victim of a certain crime, suffered mental or physical abuse because of the crime, and helped law enforcement in the investigation and/or prosecution of the crime. In addition to the U-Visa application, applicants must submit a Law Enforcement Certification form completed and signed by the certifying official for the law enforcement agency that investigated and/or prosecuted the crime for which the alien was a victim.
On approximately March 21, 2012, Thawer, without authority, knowingly used the name and badge number of a specific police officer to complete the Law Enforcement Certification form that was submitted with a U-Visa application. She knew the officer had not completed the form and that his signature on the form was forged.
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Irving Police Department, and USCIS investigated. Special Assistant U.S. Attorney Dan Gividen and Assistant U.S. Attorney Aaron Wiley prosecuted.
# # #
Lewisburg Man Charged with Tax EvasionRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Bolus of Lewisburg, Pennsylvania, owner of BPK Management has been charged with income tax evasion.
According to United States Attorney Peter Smith, Bolus, age 45, is charged with income tax evasion in a Criminal Information filed yesterday in U.S. District Court in Williamsport. The government alleged that, as president of BPK Management, Bolus understated income and taxes due resulting in a false income tax return for tax year 2012.
The Information alleges in 2012, Bolus underreported taxes by $139,203.
The government also filed a plea agreement, including payment of taxes and penalties with the defendant which is subject to approval by the court.
The investigation was conducted by the Internal Revenue Service Criminal Investigation Division, and the Federal Bureau of Investigation. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under federal law is five years of imprisonment, and a fine of $250,000.
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.
# # #
Las Cruces Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Sylvia A. Jasso, 48, of Las Cruces, N.M., pleaded guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Jasso and her co-defendant Mario L. Vaughns, 46, also of Las Cruces, were arrested in March 2015, and charged in a criminal complaint with conspiracy and possession of methamphetamine with intent to distribute on March 7, 2015, in Doña Ana County, N.M. According to the criminal complaint, on March 7, 2015, New Mexico State Police officers executed a traffic stop on Jasso’s vehicle based on information from the DEA that Jasso was routinely trafficking methamphetamine into Las Cruces. Court documents indicate that law enforcement officers recovered approximately 262 grams of methamphetamine from under the floorboards of Jasso’s vehicle on March 7, 2015.
Jasso and Vaughns were subsequently indicted on June 17, 2015, and charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute on March 7, 2015, in Doña Ana County, N.M.
During today’s change of plea hearing, Jasso pled guilty to a felony information charging her with conspiracy to possess methamphetamine with intent to distribute. Jasso admitted that on March 7, 2015, she and Vaughns traveled to Phoenix, Ariz., to pick up methamphetamine with the intention to travel back to Las Cruces to distribute the methamphetamine when they were stopped by law enforcement.
At sentencing, Jasso faces a maximum statutory penalty of 20 years in federal prison followed by not less than three years of supervised release. A sentencing hearing has yet to be scheduled.
Vaughns pled guilty to the indictment on Oct. 16, 2015, and admitted that on March 7, 2015, he and Jasso traveled to Phoenix to pick up methamphetamine, and were driving back to Las Cruces to distribute the methamphetamine when they were stopped by law enforcement who subsequently found the methamphetamine. At sentencing, Vaughns faces a minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Kansas City Man Indicted in Prairie Village Credit Union RobberyRead the Press Release
KANSAS CITY, KAN. - A federal grand jury Thursday indicted a Kansas City man on a charge of robbing a credit union in Prairie Village, Kan., U.S. Attorney Barry Grissom said.
Tarone Hollins, also known as Tarone Shipp, 41, Kansas City, Mo., is charged with one count of bank robbery. The indictment alleges that on Oct. 22, 2015, Hollins robbed the Community America Credit Union, 7620 State Line Road in Prairie Village, Kan. An affidavit filed in the case alleges that after photos from the robbery were made public the FBI received 11 tips via the Greater Kansas City Crime Stoppers identifying Hollins as the robber.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
KC Man Sentenced for Drug Trafficking, Money LaunderingRead 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 sentenced in federal court today for being the leader of a drug-trafficking conspiracy and for money laundering.
Rudolfo Villareal, also known as “Gordo” and “Rudy,” 41, of Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to 12 years and seven months in federal prison without parole.
On March 18, 2015, Villareal pleaded guilty to being the leader of a conspiracy that distributed 20 kilograms of cocaine and 8,095 kilograms of marijuana over a five-year period from April 2007 to April 2012. Villareal also pleaded guilty to money laundering.
Six co-defendants in addition to Villareal have pleaded guilty and been sentenced in this case. Donald Morgan, also known as “Rone,” 43, of Kansas City, Mo., was sentenced to 11 years and eight months in federal prison without parole. Derrick K. Vaughn, 47, of Kansas City, Mo., was sentenced to six years in federal prison without parole. Paul Tinoco, Sr., 67, of Kansas City, Mo., was sentenced to 15 years in federal prison without parole. Edward M. Sola, 41, of Kansas City, Mo., was sentenced to 10 years in federal prison without parole. James Comer, 37, of Kansas City, Mo., was sentenced to four years in federal prison without parole. Andrea Mabe, 39, of Kansas City, Mo., was sentenced to one year and one day in federal prison.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Drug Enforcement Administration and IRS-Criminal Investigation.
KC Man Pleads Guilty to Bank Robbery, CarjackingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was shot by police officers pleaded guilty in federal court today to bank robbery and to using a firearm in an attempted carjacking.
Steven Marquain Davis, 29, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to bank robbery and to using a firearm during a violent crime (carjacking).
By pleading guilty today, Davis admitted that he used a bomb to rob the Commerce Bank at 922 Walnut St., Kansas City, Mo., on Jan. 9, 2015. Davis entered the bank between 4:10 and 4:20 p.m. Davis, holding a remote control device, approached a teller counter and placed a black duffel bag on the counter. The remote control was described as having a red wire wrapped around it, similar in appearance to the remote used on remote control toys. Davis told the teller “gimme everything” and that “it’s” on the side of the building, which the teller believed referred to a bomb because of the remote he was holding. The teller placed $29,689 in the black duffel bag.
After Davis left the bank, he approached a 2012 Suzuki Grand Vitara on Petticoat Lane, mid-block between Main Street and Walnut Avenue. Davis pulled on the door handle and ordered the driver to open the door. When she refused, he pointed a handgun at her and again stated, “Open the door.” He began banging on the window of her vehicle with the handgun and she drove away from the area.
A witness confronted Davis in the street. Davis pointed a handgun at the witness and stated, “What are you looking at?” Davis tried unsuccessfully to get into two other cars in the area before multiple police officers arrived on the scene. Davis pointed a handgun at the officers, who then fired at Davis and wounded him before taking him into custody. Investigators collected $29,690, a remote device and a Smith & Wesson .38-caliber revolver from the scene where Davis was arrested.
FBI agents located a device that appeared to be a bomb in the southwest area of the bank lobby. FBI and Kansas City, Mo., Police Department bomb technicians responded and determined the explosive device posed an imminent threat to public safety. Bomb technicians rendered the device safe.
Under federal statutes, Davis is subject to a mandatory minimum sentence of seven years in federal prison without parole for the firearm conviction, which must be served consecutively to his sentence for bank robbery, 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. Attorney Justin G. Davids. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Sues Three Michigan Apartment Complexes for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department today filed a lawsuit against the owners and manager of three Michigan apartment complexes – Parkside East Apartments, in East Lansing, Michigan, Holt Manor Apartments in Holt, Michigan, and Kelly Manor Apartments in Owosso, Michigan – for discriminating against families with children.
The lawsuit, filed in the Eastern District of Michigan in Detroit, alleges that the defendants refused to allow children in Parkside East, which consists of 41 one-bedroom apartments, and also refused to allow children in the one bedroom apartments at Holt Manor and Kelly Manor. At Holt Manor, 23 of the 27 apartments are one-bedroom apartments. At Kelly Manor, 17 of the 25 apartments are one-bedroom apartments. The suit names as defendants the Bloomfield Hills, Michigan-based corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc., and Kelly Manor Inc., as well as Bloomfield Hills resident Sudi Hopper, who serves as the rental agent for the three properties.
The allegations are based on evidence collected by the Fair Housing Center of Southeastern Michigan, based in Ypsilanti, Michigan, which had testers posing as prospective residents contact the defendants’ offices and speak with Hopper about renting a one-bedroom apartment. The testing revealed that Hopper did not allow single parent households with a minor child to live in a one-bedroom apartment, but did allow households with two adults to rent such an apartment.
“Although housing discrimination against families with children has been illegal under the Fair Housing Act for more than 25 years, too many families still face such discrimination when they look for housing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of these families.”
“The Fair Housing Act gives parents the right to decide what type of apartment is appropriate for their families,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It is unlawful for landlords to substitute their judgment for that of a parent, and to turn people away from a one-bedroom apartment simply because they have a child. We hope that this complaint sends a message to landlords and renters that we are prepared to defend the rights of all families to fair treatment in housing.”
“The U.S. Department of Justice is committed to protecting the rights of Americans,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan. “We will continue to fight illegal discrimination and ensure the fair housing rights of families wherever they are challenged.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who may have information related to this lawsuit should contact the Justice Department toll-free at 1-800-896-7743, mailbox number 93, or e-mail the Justice Department at [email protected].
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.usdoj.gov/crt/housing or www.hud.gov/fairhousing.
Parkside East Complaint
Justice Department Sues Three Michigan Apartment Complexes for Discriminating Against Families with ChildrenRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against the owners and manager of three Michigan apartment complexes – Parkside East Apartments, in East Lansing, Michigan, Holt Manor Apartments in Holt, Michigan, and Kelly Manor Apartments in Owosso, Michigan – for discriminating against families with children.
The lawsuit, filed in the Eastern District of Michigan in Detroit, alleges that the defendants refused to allow children in Parkside East, which consists of 41 one-bedroom apartments, and also refused to allow children in the one bedroom apartments at Holt Manor and Kelly Manor. At Holt Manor, 23 of the 27 apartments are one-bedroom apartments. At Kelly Manor, 17 of the 25 apartments are one-bedroom apartments. The suit names as defendants the Bloomfield Hills, Michigan-based corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc., and Kelly Manor Inc., as well as Bloomfield Hills resident Sudi Hopper, who serves as the rental agent for the three properties.
The allegations are based on evidence collected by the Fair Housing Center of Southeastern Michigan, based in Ypsilanti, Michigan, which had testers posing as prospective residents contact the defendants’ offices and speak with Hopper about renting a one-bedroom apartment. The testing revealed that Hopper did not allow single parent households with a minor child to live in a one-bedroom apartment, but did allow households with two adults to rent such an apartment.
“Although housing discrimination against families with children has been illegal under the Fair Housing Act for more than 25 years, too many families still face such discrimination when they look for housing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of these families.”
“The Fair Housing Act gives parents the right to decide what type of apartment is appropriate for their families,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It is unlawful for landlords to substitute their judgment for that of a parent, and to turn people away from a one-bedroom apartment simply because they have a child. We hope that this complaint sends a message to landlords and renters that we are prepared to defend the rights of all families to fair treatment in housing.”
“The U.S. Department of Justice is committed to protecting the rights of Americans,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan. “We will continue to fight illegal discrimination and ensure the fair housing rights of families wherever they are challenged.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who may have information related to this lawsuit should contact the Justice Department toll-free at 1-800-896-7743, mailbox number 93, or e-mail the Justice Department at [email protected].
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt/housing-and-civil-enforcement-section. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at http://www.justice.gov/crt/housing-and-civil-enforcement-section or www.hud.gov/fairhousing.
END
15-1436
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Justice Department Settles Immigration-Related Discrimination Claim Against McDonald’sRead the Press Release
The Justice Department announced today that it reached a settlement with McDonald’s USA LLC and its corporate affiliates and subsidiaries (McDonald’s) resolving allegations that McDonald’s discriminated against immigrant employees of McDonald’s-owned restaurants.
The department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) opened its investigation based on information received on its worker hotline. The investigation found that McDonald’s had a longstanding practice of requiring lawful permanent residents to show a new permanent resident card when their original document expired, even though the law prohibits this practice. The investigation further found that the company did not make the equivalent request to its U.S. citizen employees who showed documents that later expired, and that those lawful permanent residents who were asked and could not provide a new card were not allowed to work, some even losing their jobs as a result. This investigation and today’s settlement agreement only address actions by McDonald’s, not its franchises.
“Employers cannot hold lawful permanent residents to a higher standard by placing additional documentary burdens upon them during the employment eligibility verification process,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Requiring unnecessary documentation of individuals based on their citizenship or immigration status is discriminatory, and the Department of Justice will not hesitate to enforce the law and protect the rights of work-authorized immigrants. We commend McDonald’s for its cooperation throughout this investigation and for committing to compensate its current and former employees who lost wages due to these practices.”
Lawful permanent residents have authorization to live and work in the United States on a permanent basis. As proof of that status, a lawful permanent resident receives a permanent resident card, commonly called a “Green Card,” but lawful permanent residents are eligible for multiple documents that show their eligibility to work. Lawful permanent residents do not have to show their permanent resident cards when they start working. Like all workers, they can choose whatever valid documentation they want to establish their employment authorization. While most permanent resident cards contain an expiration date, as a general matter, card holders have permanent work authorization so the expiration of the card does not mean they lose their right to work or their status. Lawful permanent residents who decide to show an unexpired permanent resident card are not required to present any additional documentation when their card expires, and employers cannot request additional documents from them. Moreover, the anti-discrimination provision of the Immigration and Nationality Act (INA) prohibits employers from placing additional documentary burdens on work-authorized employees during the employment eligibility verification process because of their citizenship or immigration status.
Under the settlement agreement, McDonald’s will pay $355,000 in civil penalties to the United States, undergo monitoring for 20 months and train its employees on the INA’s anti-discrimination provision.
The settlement agreement also requires McDonald’s to compensate lawful permanent resident employees of McDonald’s-owned restaurants who lost work or lost their jobs due to these documentary practices. Lawful permanent residents who worked for a corporate-owned McDonald’s location (not a franchise) between Sept. 23, 2012, and March 1, 2015, may be eligible for compensation if they were fired or forced to miss work because they could not show a new card when their permanent resident card was set to expire. More information on the process for obtaining back wages is found in the settlement agreement’s claims procedure http://www.justice.gov/crt/united-states-department-justice-settlement-mcdonald-s-usa-llc.
Current and former McDonald’s employees with questions about this matter may call 1-844-401-3737 or email [email protected].
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; discrimination in the employment eligibility verification process; retaliation; and intimidation. Trial Attorneys Jennifer Deines and Silvia Dominguez-Reese and Equal Opportunity Specialist Joann Sazama of the Civil Rights Division worked on this case.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
McDonald's Settlement Agreement
Justice Department Announces Three Banks Reach Resolutions Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that BNP Paribas (Suisse) SA (BNPP), KBL (Switzerland) Ltd. (KBL Switzerland) and Bank CIC have reached resolutions under the department’s Swiss Bank Program. These banks will collectively pay penalties totaling more than $81 million and continue to cooperate with the department.
“As reflected in today’s agreements, we continue to shine a bright light on the individuals and institutions that have used so-called ‘secret Swiss bank accounts’ to engage in and assist U.S. tax evasion,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “The department, working hand in hand with the IRS, is actively pursuing criminal and civil cases against those engaged in such conduct.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
-
Make a complete disclosure of their cross-border activities;
-
Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
-
Cooperate in treaty requests for account information;
-
Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
-
Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
-
Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
BNPP has had a presence in Switzerland since 1872. BNPP is headquartered in Geneva, Switzerland, and has branches in Zurich, Basel and Lugano, Switzerland. In 2008, BNP Paribas Bank Group agreed to acquire the worldwide operations of Fortis Bank, which was at the time the largest bank in Belgium. This merger closed in May 2010, and its terms required BNPP to absorb Fortis Banque (Suisse) SA.
BNPP opened and maintained accounts for U.S. taxpayers in the name of non-U.S. corporations, foundations, trusts or other legal entities, in which U.S. taxpayers concealed their beneficial ownership of the accounts. BNPP readily accepted accounts in which external trust companies created and administered offshore structures incorporated or based in offshore locations such as the British Virgin Islands, Panama, Liechtenstein and Liberia, for certain of BNPP’s U.S. clients. In certain instances, BNPP took instructions directly from U.S. beneficial owners with power of attorney over the account, including instructions for cash withdrawals, with the funds going directly to the true U.S. beneficial owner.
BNPP also has a Corporate and Institutional Banking (CIB) business line. CIB clients use the expertise of BNPP for specific commercial transactions, and CIB does not provide private banking services. CIB maintained a small number of U.S.-related accounts. In one case, a wealth management relationship manager omitted the existence of a CIB client’s U.S. passport in opening a wealth management account for that client.
Starting in 2003, BNPP issued a policy requiring U.S. residents opening new accounts to provide an IRS Form W-9 and certification that the person was aware of, and fully complied with, tax requirements pertaining to foreign accounts maintained by U.S. persons. BNPP also held mandatory training sessions in 2005 and 2007 to ensure that wealth management employees were aware of and followed its policies for U.S. persons. Despite these policies, BNPP disregarded evidence that many of the accounts were not in fact properly declared, facilitating the tax avoidance schemes of accountholders.
Certain employees of BNPP understood that certain U.S. taxpayers who maintained accounts at BNPP were not complying with their U.S. reporting obligations, and BNPP offered a variety of traditional Swiss banking services that it knew could assist, and did in fact assist, certain U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). For example, BNPP maintained 338 numbered accounts and agreed to hold bank statements and other mail.
BNPP also processed requests for cash withdrawals by U.S. taxpayers from accounts being closed. For example, in early 2012, after part of an account was transferred to a bank in Malaysia, a BNPP employee gave instructions for the withdrawal of the balance of the account in the amount of 238,000 Swiss francs. In November 2009, in light of BNPP’s policy that non-compliant U.S. accounts be closed, an accountholder received permission to withdraw $731,000 in cash, with several employees coordinating the withdrawal so that the accountholder need not “waste time at the cash desk.” And in August and September of 2009, after a BNPP employee informed an accountholder that BNPP had adopted a new U.S.-related account policy, the employee and accountholder agreed that the client would come to BNPP before Sept. 5, 2009, to withdraw the remaining account balance and close the account. Instructions were given to allow the client to withdraw $255,838, as well as 49,233 euros.
Throughout its participation in the Swiss Bank Program, BNPP provided full cooperation to the department. BNPP described in detail the structure of its U.S. cross-border business, including but not limited to the policies BNPP put in place to comply with U.S. law, a summary of the top 20 U.S.-related accounts by assets under management value, a redacted summary of external asset managers and relationship managers with U.S.-related accounts by assets under management and substantial information about U.S.-related accounts associated with external asset managers and relationship managers. BNPP provided a list of the names and functions of all individuals who structured, operated or supervised the cross-border business at BNPP and also provided relevant information concerning its relationship managers.
Since Aug. 1, 2008, BNPP held and managed approximately 760 U.S.-related accounts with a peak value of approximately $1.2 billion in assets under management. BNPP will pay a penalty of $59.783 million.
KBL Switzerland is based in Geneva, with branches in Zurich and Lugano, Switzerland. An additional branch located in Lausanne closed in 2014. KBL Switzerland implemented a strategy from 2009 through May 2010 that substantially sought to increase KBL Switzerland’s assets under management and the business that KBL Switzerland did with external asset managers. The implementation of this strategy led KBL Switzerland to open and maintain significant numbers of U.S.-related accounts, including some accounts for U.S. taxpayers who had been exited from UBS, Credit Suisse or other banks.
KBL Switzerland opened and maintained accounts for certain U.S. taxpayers in the names of corporations, foundations, trusts or other legal entities that were organized in non-U.S. jurisdictions, such as Panama, the British Virgin Islands or Liechtenstein. For many of these accounts, KBL Switzerland accepted IRS Forms W-8BEN or substitute forms that falsely represented that the legal entities that owned the structured accounts had no U.S. taxpayer beneficial owners. KBL Switzerland knew, or had reason to know, that the true beneficial owners of these accounts were U.S. taxpayers. KBL Switzerland also knew, or had reason to know, that certain of these U.S. taxpayers were utilizing the accounts for personal purposes without formal corporate authorization.
In one instance, a KBL Switzerland relationship manager assured a U.S. taxpayer client, who had not provided a Form W-9, that KBL Switzerland would not reveal his identity to the United States. In a separate instance, a different KBL Switzerland relationship manager assured a U.S. taxpayer client that, because of Swiss bank secrecy laws, Switzerland would not freely exchange account information with the United States. And in at least one instance, a KBL Switzerland relationship manager advised a U.S. taxpayer client to avoid bringing account information into the United States.
On the instructions of the U.S. taxpayer clients, KBL Switzerland moved or restructured the assets of U.S.-related accounts in ways that concealed the U.S. nature of those accounts. In late 2009 and early 2010, KBL Switzerland followed the instructions of two external asset managers, concerning four separate U.S.-related accounts that were directly held by U.S. taxpayer clients of KBL Switzerland, to restructure the assets of the accounts into new insurance-policy accounts. These insurance wrapper accounts were titled in the name of a Liechtenstein insurance company for the benefit of the same underlying U.S. taxpayer clients with the same underlying assets. Restructuring the form in which their assets were held at KBL Switzerland allowed these U.S. taxpayers to further hide their identities and undeclared accounts from the IRS and U.S. law enforcement.
In 2012, KBL Switzerland briefly implemented a flawed account closing policy that had the unintended effect of closing a number of U.S.-related accounts through substantial and/or successive asset withdrawals. In one of these instances, KBL Switzerland permitted a U.S. taxpayer client to close an account through a single cash withdrawal of nearly $2 million. In another one of these instances, KBL Switzerland allowed a U.S. taxpayer client to close a structured entity account by using assets in the account to purchase gold worth nearly $200,000, which the U.S. taxpayer client subsequently withdrew in closing the account.
On request of its clients, including undeclared U.S. taxpayers, KBL Switzerland provided Swiss travel cash cards issued by third parties. KBL Switzerland would fund these travel-cash cards with assets maintained in accounts belonging to U.S. taxpayer clients, which enabled U.S. taxpayer clients to access the assets of undeclared accounts wherever they chose, including in the United States. KBL Switzerland also permitted U.S. taxpayer clients to access and utilize the value of assets held in undeclared accounts through loans that were secured by their undeclared assets on deposit with KBL Switzerland.
KBL Switzerland committed to providing full cooperation to the U.S. government and has made timely and comprehensive disclosures regarding its U.S. cross-border business. Among other things, KBL Switzerland has described in detail the structure of its cross-border business for U.S.-related accounts including, but not limited to:
-
The policies and lack of oversight that contributed to the misconduct committed by KBL Switzerland relationship managers and their supervisors;
-
Data on desks and employees with elevated concentrations of U.S.-related accounts;
-
Information on key external asset managers that had significant involvement with U.S.-related accounts;
-
The names and positions of compliance officers and senior managers; and
-
Written narratives on its largest and most problematic U.S.-related accounts.
Since Aug. 1, 2008, KBL Switzerland maintained 277 U.S.-related accounts having a maximum aggregate dollar value in excess of $255 million. KBL Switzerland will pay a penalty of $18.792 million.
Bank CIC is a subsidiary of the French financial group Crédit Mutuel-CIC, one of the largest banking groups in France. In addition to its main office in Basel, Bank CIC has eight branches, all in Switzerland: Lausanne, Zurich, Geneva, Lugano, Locarno, Neuchatel, Fribourg and Sion.
Although Bank CIC did not target U.S. taxpayer-clients, many of Bank CIC’s front-office personnel had some exposure to at least one or more U.S.-related accounts as part of their general client service functions. Periodically, U.S. clients were accepted as walk-ins or referred to Bank CIC by other clients.
Bank CIC offered a variety of traditional Swiss banking services, including hold mail and numbered accounts, that it knew or should have known could assist, and did in fact assist, U.S. clients in the concealment of assets and income from the IRS. A Bank CIC manager or relationship manager communicated with a U.S. taxpayer client through methods such as facsimile and calling prepaid mobile phones at the U.S. taxpayer-client’s request. Bank CIC also allowed accounts with U.S. beneficial owners to be held in the name of non-U.S. entities.
Since Aug. 1, 2008, Bank CIC had 261 U.S.-related accounts, comprising approximately $228 million in assets under management. Bank CIC will pay a penalty of $3.281 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today's resolutions with large and small financial institutions reflect the Swiss Bank Program’s continued success,” said acting Deputy Commissioner International David Horton of the IRS Large Business & International Division (LB&I). “Working with the Department of Justice, we will use the information received from these resolutions to track down U.S. taxpayers who sought to evade taxes by hiding their assets in offshore accounts.”
“The amount of money associated with each agreement is not insignificant, but even more significant is the amount of data that we will receive as a result of the Swiss Bank Program,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “At this point, we’ve already learned so much about the formerly hidden world of offshore banking. This information enables us to vigorously pursue noncompliant individual U.S. taxpayers and guides us in the development of innovative partnerships and methodologies to combat a wide variety of international tax evasion techniques.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and IRS LB&I for their substantial assistance. Ciraolo also thanked Carl D. Wasserman, Paul G. Galindo and Kaycee M. Sullivan, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
-
Justice Department Announces Funding Opportunities for Federally-Recognized Tribes and Tribal ConsortiaRead the Press Release
Grants Available to Support Public Safety Projects in Indian Country
The U.S. Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to American Indian and Alaska Native tribal governments and tribal consortia to support public safety, victim services and crime prevention improvements. The department’s Fiscal Year (FY) 2016 Coordinated Tribal Assistance Solicitation (CTAS) posts today at /media/1097216/dl?inline.
“Since 2010, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded more than 1,400 programs to better serve crime victims, promote community policing and strengthen justice systems.
CTAS is administered by the Department of Justice’s Office of Justice Programs (OJP), including its Bureau of Justice Assistance (BJA), Office of Juvenile Justice and Delinquency Prevention (OJJDP) and the Office for Victims of Crime (OVC); and the Department of Jusitce’s Office of Community Oriented Policing Services (COPS) and Office on Violence Against Women (OVW). The funding can be used to enhance law enforcement, bolster adult and juvenile justice systems, prevent and control juvenile delinquency, serve native victims of crime including, child abuse, sexual assault, domestic violence and elder abuse victims; and support other efforts to combat crime.
Applications for CTAS are submitted through the Department of Justice’s Grants Management System (GMS), which enables grantees to register and apply for CTAS online. Applicants must register with GMS prior to submitting an application. The application deadline is Feb. 23, 2016, at 9:00 P.M. EST.
The FY 2016 CTAS reflects improvements and refinements from earlier versions. Feedback was provided to the department during tribal consultations and listening sessions, and survey assessments, which include tribal leaders’ requests to improve and simplify the department grant-making process. Changes to department grant programs, enacted with the passage of the Tribal Law and Order Act, are incorporated into the CTAS solicitation and in the appropriate purpose areas. More information about all changes to the FY 2016 CTAS Solicitation is available on the CTAS fact sheet at: /media/1097226/dl?inline.
For the FY 2016 CTAS, a tribe or tribal consortium will submit a single application and select from any or all of the nine competitive grant programs referred to as “purpose areas.” This approach allows the department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.
The nine purpose areas (PA) are:
-
PA1 - Public Safety and Community Policing (COPS)
-
PA2 - Comprehensive Tribal Justice Systems Strategic Planning (BJA)
-
PA3 - Justice Systems and Alcohol and Substance Abuse (BJA)
-
PA4 - Corrections and Correctional Alternatives (BJA)
-
PA5 - Violence Against Women Tribal Governments Program (OVW)
-
PA6 - Children’s Justice Act Partnerships for Indian Communities (OVC)
-
PA7 - Comprehensive Tribal Victim Assistance Program (OVC)
-
PA8 - Juvenile Justice Wellness Courts (OJJDP)
-
PA9 - Tribal Youth Program (OJJDP)
Tribes or tribal consortia may also be eligible for non-tribal, government-specific (non-CTAS) federal grant programs and are encouraged to explore other funding opportunities for which they may be eligible. Additional funding information may be found at the Department of Justice’s Tribal Justice and Safety website at www.justice.gov/tribal or the www.grants.gov website.
Today’s announcement is part of the Department of Justice’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
-
Jared S. Fogle sentenced in child pornography caseRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of Jared S. Fogle after being convicted of distributing and receiving child pornography and traveling in interstate commerce to engage in unlawful commercial sex acts with minors. Fogle, 38, of Zionsville, Indiana, was sentenced to 188 months (15 ½ years) in federal prison by U. S. District Judge Tanya Walton Pratt in federal court in Indianapolis.
“Earlier today, the Honorable Tanya Walton Pratt sentenced Jared S. Fogle to 188 months (15 ½ years) in prison. While no sentence will bring back the innocence or relieve the pain of Fogle’s victims, Judge Pratt properly rejected Fogle’s plea for a 5 year sentence and imposed an appropriate sentence of 15 and ½ years. My office works within the federal sentencing laws, and this community has my word that the law was followed today. Those who engage in child exploitation received a clear message today. If you engage in this conduct, you will be investigated, identified, and prosecuted, and you will go to prison.”
Minkler further stated, “my office will continue to protect victims of child exploitation through aggressive prosecution and a close working relationship with law enforcement.”
Between March 2001 and May 2015, Fogle received and viewed child pornography some given to him by his co-conspirator, Russell Taylor (federally charged separately, May 2015). Fogle did this to fuel his sexual fantasies involving children. The child pornography Fogle viewed included homemade material involving victims in Indiana as well as commercially produced files Taylor obtained through internet sources. Fogle knew that the children depicted in the homemade images or videos were under the age of 18 years. He also knew of Taylor’s family relationship or association with the victims, including in many instances, their actual names.
In November 2012, Fogle traveled to New York City and engaged in commercial sex with a 17 year old minor in a hotel there. After the encounter, he sent the victim text messages, offering to pay her a fee if she could find other underage girls to have sex with him. In January 2013, he returned to New York City and engaged in commercial sex with the same victim knowing she was under 18 years old. Fogle later returned to New York and engaged in commercial sex with yet another underage minor.
This case was the result of a joint federal, state and local investigation by the Indiana State Police, Indianapolis Police Department, Federal Bureau of Investigation and the Indiana Internet Crimes Against Children Task Force, with the assistance of the Marion County Prosecutor’s Office.
Indiana State Police Superintendent Doug Carter said, "The Jared Fogle chapter is now closed with the announcement of his sentencing and his removal from a free society. But, tragically, we know sexual crimes against children won't end; there are others who think they won't be caught. Carter concluded, "So with this announcement we also take the opportunity to encourage, in the strongest words possible, any past or current victims of unreported child sex crimes to seek help from law enforcement and bring these vile criminals to justice."
“In our society, children are our most precious resource,” said IMPD Chief Rick Hite. “It is our collective responsibility to protect them from predators and bring to justice anyone who causes them hurt, harm, or danger.”
“As with all child pornography cases, the FBI investigates these cases with a sense of urgency due to the extreme vulnerability of the victims involved; our children,” said FBI Special Agent in Charge, W. Jay Abbott. “This case demonstrates that commitment to investigate those who would possess child pornography. The FBI looks forward to continuing its work on such matters with the United States Attorney’s Office, the Indiana State Police and the Indianapolis Metropolitan Police Department.”
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuted the case for the government, Fogle must pay a $175,000 fine and serve a lifetime of supervised release after his sentence.
Fogle also agreed to pay a total of $1,400,000 in restitution to the 14 victims in the case, 8 of whom are still minors, and forfeit assets of $50,000. This is the largest amount of restitution ever ordered for a child pornography or sex trafficking case in the history of the Southern District of Indiana. The victims will be able to use these funds to pay for counseling and treatment to combat the debilitating life effects of these crimes.
Intoxicated Driver Pleads Guilty to Manslaughter in Fatal Car CrashRead the Press Release
Greenbelt, Maryland – Carlos Arnulfo Chacon Chacon, age 42, of Laurel, Maryland pleaded guilty today to charges arising from a fatal car crash in which the victim died after being in a coma for eight months.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to his plea agreement, at about midnight on February 1, 2014, Chacon Chacon was driving a Toyota Celica northbound on the Baltimore-Washington Parkway. Two motorists noticed that he was driving erratically, weaving across the road and leaving the travel lanes as he went onto the shoulder. They called 911. As one of the witnesses was speaking with the 911 operator, Chacon Chacon crashed his car into a Mitsubishi traveling northbound in the right lane, on a straight area of the highway.
The Mitsubishi went over a stone wall and then went airborne, striking a tree and causing its roof to collapse down into the passenger compartment. Chacon Chacon’s car struck the stone wall, spun around, and struck the stone wall a second time, finally coming to rest partially in the highway, perpendicular to oncoming traffic.
At the accident scene, Chacon Chacon was able to walk away from his vehicle and spoke with police and emergency medical technicians. He twice declined medical treatment and admitted to drinking six beers shortly before driving. He was under the influence of alcohol. A case of beer was in the back seat of his car. His car was not insured.
Emergency medical services cut open the Mitsubishi and extracted the driver who sustained extreme head trauma and experienced cardiac arrest. The driver remained hospitalized in a coma for nearly eight months and died on September 22, 2014.
Chacon Chacon faces a maximum sentence of one year in prison for manslaughter by vehicle – criminal negligence, and six months in prison for driving under the influence of alcohol, driving an uninsured vehicle, reckless driving failure to drive in a single lane. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 18, 2016.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Gustav William Eyler, of the U.S. Justice Department, who are prosecuting the case.
Internet Stalking Nets Northwest Arkansas Man over Eight Years (8.75 Years) in Federal PrisonRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Steven Lesmeister, age 39, of Green Forest, Arkansas, was sentenced on three counts of Stalking. Lesmeister was sentenced to 60 months in federal prison for count one and 60 months in federal prison for count two, with these two terms to run concurrently with each other; He was sentenced to 45 months in federal prison for count three with this term to run consecutively to the terms for the first two counts for a total of 105 months imprisonment and ordered to three years supervised release for each of the three counts to run concurrently. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on several occasions from June, 2014 to April, 2015, a 16 year old minor female in Virginia, a 19 year old female in New York, and a 14 year old minor female in North Carolina all began receiving sexually explicit and threatening text messages and sexually explicit videos of an unknown man on their phones from multiple email accounts. The man in the video would call them by their first name and told at least one of the victims that he knew her full name, address, type of car she drove, place of employment, and where she attended school. Lesmeister was subsequently located and arrested; officers seized and searched his IPad and IPhone revealing numerous email and social media accounts that he had created. His IPad contained the videos that had been sent to some of the victims. It was discovered that Lesmeister had sent hundreds of friend requests to teenage girls on Facebook where he was able to obtain their personal information that he then used to stalk them.
This case was investigated by Department of Homeland Security and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
The 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.
* * * E N D * * *
Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
INOAC Corp. to Pay $2.35 Million for Fixing Prices on Auto PartsRead the Press Release
INOAC Corp. has agreed to plead guilty and to pay a $2.35 million criminal fine for its role in a conspiracy to fix prices and rig bids on certain plastic interior trim automotive parts installed in cars sold to U.S. consumers.
According to the felony charge filed today in the U.S. District Court of the Eastern District of Kentucky, INOAC, based in Nagoya, Japan, and others conspired from as early as June 2004 until at least September 2012 to fix prices and rig bids on parts sold to Toyota Motor Corp., including certain of its subsidiaries and affiliates in the United States and elsewhere.
“INOAC corrupted the competitive process by agreeing with its competitors to fix the prices of certain automotive parts installed in Toyota cars sold in the United States,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Working with the FBI and our other law enforcement partners, the Antitrust Division will continue to protect American car buyers and hold automotive part suppliers accountable for their illegal conduct.”
“The FBI is committed to aggressively investigating individuals who engage in criminal conduct that corrupts the global marketplace,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville Division. “We will continue our work with the Department of Justice Antitrust Division to uncover schemes aimed at creating an unfair competitive advantage by way of price fixing, bid rigging or other illegal means.”
Today’s plea is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.
Including INOAC, 38 companies and 58 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.6 billion in criminal fines. INOAC is being prosecuted by the Antitrust Division’s Chicago Office and the FBI’s Louisville Field Office, Covington Resident Agency, with assistance from the U.S. Attorney’s Office of the Eastern District of Kentucky.
Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Louisville Field Office at 502- 263-6000.
Husband, Wife Sentenced for Drug Trafficking Following Heroin OverdoseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Louis, Mo., man and a Berkeley, Mo., woman have been sentenced for their roles in a drug-trafficking conspiracy after the man suffered a heroin overdose in a Columbia, Mo., hotel room.
Gustavo Ruvalcaba, 45, of St. Louis, and Jennifer Ann Foust, 30, of Berkeley, who are now married, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough on Wednesday, Nov. 18, 2015. Ruvalcaba was sentenced to 12 years and seven months in federal prison without parole. Foust was sentenced to six years in federal prison without parole.
On May 6, 2015, Ruvalcaba and Foust each were found guilty at trial of participating in a conspiracy to distribute heroin, crack cocaine, powder cocaine and methamphetamine from July 2013 to July 2014. Ruvalcaba was also convicted of four counts of possessing heroin, crack cocaine, powder cocaine and methamphetamine, each with the intent to distribute, on July 14, 2014. Foust was also charged in the possession counts but the jury was unable to reach a verdict; the court declared a mistrial on those counts in regard to Foust.
Columbia police officers were dispatched to a room at the Super 8 Motel in response to a heroin overdose on July 14, 2014. Foust had called 911 for Ruvalcaba, who was lying on the floor and being treated by EMS and fire personnel when officers arrived. Officers executed a search warrant for the hotel room and seized 16.4 grams of black tar heroin, 6.6 grams of crack cocaine, 35.3 grams of powder cocaine, 11.6 grams of pure methamphetamine, drug paraphernalia, seven cell phones and $78,525 divided up into 8 different manila envelopes and numerous piles.
St. Charles, Mo., police officers also had found Ruvalcaba and Foust together in an Embassy Suites hotel room about a year earlier, on July 10, 2013. Foust initially told officers that nobody else was in the hotel room, but they heard noises in the bathroom. Officers noticed drugs and drug paraphernalia scattered in plain view throughout the room and a large bundle of cash. The bathroom door was locked and they continued to hear sounds of plastic being rubbed together, water running and the toilet flushing. Officers believed evidence was being destroyed, so they jimmied open the bathroom door and found Ruvalcaba, who was flushing the contents of plastic bags down the sink and toilet. Ruvalcaba was handcuffed and set in a chair.
When one of the officers turned around to speak to Foust, Ruvalcaba quickly ingested some of the 15.4 grams of methamphetamine that was being weighed on a digital scale found in the bedroom. Ruvalcaba, who had chunks of methamphetamine in his mouth and on his face and t-shirt, began to eat the methamphetamine at a fast pace and refused to spit it out. When asked why he had ingested the methamphetamine, Ruvalcaba stated, “You can’t charge me without any evidence.” Officers seized 9.6 grams of crack cocaine, 5.7 grams of methamphetamine, drug paraphernalia, five cell phones and $11,086 (a large amount recovered from Ruvalcaba’s underwear) from the hotel room.
St. Charles police officers arrested Ruvalcaba and Foust again on Sept. 12, 2013, after their vehicle was pulled over on Interstate 70 for operating without proper registration. A K-9 walked around the vehicle and alerted to several areas of the vehicle, including the trunk. Officers found several syringes in a suitcase in the trunk.
Ruvalcaba and Foust were transported to the police station. While they were waiting in the holdover area, Ruvalcaba, whose right hand was handcuffed to the holding bench, reached with his free left hand to remove his shoe and retrieved a package of methamphetamine. Ruvalcaba threw the package of methamphetamine toward Foust, who pulled it toward her with her foot, placed it in her mouth and swallowed it. Officers ordered Foust to open her mouth and noticed a white residue on her tongue; officers also found methamphetamine on the floor where Foust was sitting.
On Dec. 6, 2013, law enforcement officers conducted surveillance of a residence in St. Charles, Mo., after being notified that two packages suspected of containing narcotics were scheduled to be delivered to the residence. After the packages were delivered, Ruvalcaba and Foust exited the residence, and Ruvalcaba placed a microwave oven into a vehicle driven by Foust. Ruvalcaba and Foust then left the residence together and were followed by officers. As officers attempted to stop the vehicle driven by Foust, she rapidly accelerated and drove onto I-70 at a high rate of speed. As Foust attempted to evade officers, she was seen weaving in and out of traffic for several miles at speeds in excess of 90 miles per hour. During the pursuit, Ruvalcaba had his upper torso out of the vehicle, and was observed throwing several packages containing a white substance, suspected to be methamphetamine, from the vehicle.
After the pursuit, officers searched the residence and recovered 15.1 grams of methamphetamine. A resident of the home told investigators he allowed Ruvalcaba and Foust to ship the packages containing methamphetamine to his house. He estimated that the packages received that day contained two kilograms of methamphetamine, which Ruvalcaba had concealed inside the microwave oven.
According to court documents, investigators interviewed a cooperating source in February 2015, who recognized Ruvalcaba and knew him to supply methamphetamine to a mutual associate. The cooperating source saw Ruvalcaba deliver three pounds of methamphetamine to their mutual associate on two different occasions.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the U.S. Postal Inspection Service, the St. Charles City Police Department, the St. Charles County, Mo., Sherriff’s Department and the St. Charles County Regional Drug Task Force.
Hummelstown Man Sentenced to 6 Years in Prison for Heroin and Crack Cocaine Trafficking and Federal Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney=s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Yvette Kane sentenced Devonte Betts, age 21, of Hummelstown, Pennsylvania to 6 years of incarceration today in Harrisburg, Pennsylvania. Betts pleaded guilty to possession of a firearm in furtherance of drug trafficking and possession with intent to distribute a controlled substance on June 15, 2015.
According to United States Attorney Peter Smith, Betts was in the vicinity of 13th and Market Streets in Harrisburg on June 6, 2014 in possession of two loaded firearms, as well as heroin and crack cocaine. Officers from the Harrisburg Bureau of Police apprehended Betts after a brief foot chase. During the chase, a portion of which was captured on local surveillance cameras, Betts tossed the guns from his waistband. The officers immediately collected a loaded 9mm handgun and a loaded .357 firearm from Betts’ flight path. At the time of his arrest, Betts was carrying multiple bags of heroin, crack cocaine and other indicia of drug trafficking.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Bureau of Police. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
# # #
Houston Resident Sentenced for Importing 11 Kilos of Meth into the U.S.Read the Press Release
McALLEN, Texas – A 19-year-old man from Houston has been handed a federal prison sentence following his conviction of importing methamphetamine into the U.S., announced U.S. Attorney Kenneth Magidson. Jose Manuel Trevino Jr. pleaded guilty Nov. 24, 2014.
Today, U.S. District Judge Micaela Alvarez considered Trevino’s young age and ordered to him to serve a total of 75 months in federal prison to be followed by three years of supervised release. In handing down the sentence, Judge Alvarez also noted that this was a serious crime because of how lethal methamphetamine is and that it can be so quick to that lethality.
On Aug. 15, 2014, Trevino was intercepted by a Texas State trooper after he drove his vehicle into the U.S. from Mexico through the Pharr Bridge. Upon investigation, authorities discovered 11 kilograms of methamphetamine hidden within several false compartments in the vehicle’s front fender area.
Trevino admitted he knew he was importing controlled substances into the U.S. and was going to be paid for delivering the narcotics further into the interior of the United States.
Trevino will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by the Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Houston Man Sentenced for Role in Money Laundering ConspiracyRead the Press Release
McALLEN, Texas – A naturalized U.S. citizen residing in Houston has been ordered to federal prison following his conviction in McAllen federal court to conspiring to commit money laundering, announced U.S. Attorney Kenneth Magidson. Alejandro Morales-Flores, 60, pleaded guilty April 16, 2015.
Today, U.S. District Judge Randy Crane handed Morales-Flores a 63-month sentence. After he finishes his prison sentence, he will be on supervised release for three years.
On Oct. 24, 2014, Morales-Flores was driving a tractor-trailer from Houston to the Rio Grande Valley. A trooper with the Texas Department of Public Safety (DPS) stopped him near San Manuel for a traffic violation as he was heading to the Valley. His trailer was found to be empty, but a search resulted in the discovery of several bags containing a total of $1,413,255 in U.S. currency hidden in the sleeper compartment.
Morales-Flores admitted he knew the money was drug trafficking proceeds and that he was being paid to deliver it to unknown individuals in the Rio Grande Valley area.
Morales-Flores was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service by Dec. 7, 2015, to begin serving his sentence.
The charges are the result of an investigation by the Drug Enforcement Administration with assistance from DPS. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS ALBERTO RIVERA-MELENDEZ, age 39 a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Lance M. Africk sentenced RIVERA-MELENDEZ to time served, one year of supervised release, and a $100 special assessment. RIVERA-MELENDEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about August 10, 2015, RIVERA-MELENDEZ was found in the United States after having been officially deported and removed on or about January 16, 2009.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Grand Jury Returns Indictment Alleging Man Made Bomb Threat at Sevier Valley Medical CenterRead the Press Release
SALT LAKE CITY – A federal grand jury returned a one-count indictment Wednesday afternoon charging Michael Sherman Morlang, age 26, of Payson with making a bomb threat to a hospital.
On the morning of Sept. 17, 2015, the Sevier Valley Medical Center in Richfield received a bomb threat. The hospital evacuated everyone possible and remained on lockdown for several hours. Individuals seeking emergency care, including patients in ambulances, had to be diverted to another hospital.
The indictment alleges Morlang called in the bomb threat, conveying information he knew to be false concerning an attempt being made to damage or destroy a building. The potential maximum penalty for the charge is 10 years in prison and a fine of $250,000. An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Morlang is in custody in Idaho on an unrelated warrant. A federal arrest warrant will be issued following today’s indictment.
The Richfield Police Department, the Sevier County Sheriff’s Office, and the FBI have coordinated the investigation of the case. The case is being prosecuted by the U.S. Attorney’s Office in St. George.
Gasoline Refiner to Reduce Emissions at Utah Facility to Resolve Clean Air Act ViolationsRead the Press Release
The Department of Justice and the U.S. Environment Protection Agency (EPA) today announced a settlement with HollyFrontier Corporation subsidiaries (HollyFrontier Refining & Marketing LLC, Frontier El Dorado Refining LLC, Holly Refining & Marketing Company—Woods Cross LLC and Navajo Refining Company LLC) that resolves alleged Clean Air Act violations regarding fuel quality emissions standards and testing requirements at three HollyFrontier facilities. Under a consent decree lodged today in the U.S. District Court for the District of Columbia, HollyFrontier will implement a mitigation project at its refinery in Salt Lake City, Utah, to offset past emissions and pay to the United States a $1.2 million civil penalty.
“This agreement will benefit public health by requiring retrofits of storage tanks at HollyFrontier facilities that will reduce volatile organic compound emissions and use next generation technology to verify these reductions,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and natural Resources Division. “This settlement shows that fuel refiners can and must meet the nation’s standards for controlling the emissions that cause ground level ozone and serious health problems for Americans.”
“Fuel emissions standards help safeguard our nation’s air quality and public health,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This settlement not only means cleaner air for communities in Salt Lake City, it helps ensure a level playing field for fuel refiners that follow the law.”
The Clean Air Act requires fuel refiners to ensure the conventional gasoline they produce meets volatility standards, referred to as Reid Vapor Pressure (RVP) standards. As gasoline evaporates, volatile organic compounds (VOCs) are released, which react in sunlight to form low-level ozone. Breathing ozone can trigger a variety of health problems including chest pain, coughing, throat irritation and congestion and can worsen bronchitis, emphysema and asthma. VOCs also include a wide variety of hydrocarbons, some of which are hazardous air pollutants such as benzene, toluene, xylene and ethyl benzene.
HollyFrontier disclosed to the EPA that three of its refineries—the Navajo Refinery in Artesia, New Mexico, the Woods Cross Refinery in Woods Cross, Utah, and the El Dorado Refinery in El Dorado, Kansas—produced approximately 42 million gallons of gasoline that was introduced into commerce in the Utah, Texas, Arizona, New Mexico and Idaho markets that exceeded the applicable RVP standards. HollyFrontier reported to the EPA that these violations are estimated to have resulted in about 10 excess tons of VOC emissions.
Under the settlement, HollyFrontier will install new equipment on two tanks at its Salt Lake refinery to reduce potentially-toxic VOC emissions by about 96 tons over the lifetime of the consent decree. The company will be required to use next generation pollutant detection technology during the implementation of the mitigation projects and be required to hire a third party to verify its compliance status for the mitigation projects. Due to the enduring nature of the projects, environmental benefits accruing as a result of these projects are anticipated to continue for many years. The facility where the pollution controls will be installed is located in an area that may present environmental justice concerns.
EPA’s Next Generation Compliance Strategy promotes advanced emissions and pollutant detection technology so that regulated entities, the government and the public can more easily see pollutant discharges, environmental conditions and noncompliance.
More information about EPA’s Next Generation Compliance Strategy is available at: http://www2.epa.gov/compliance/next-generation-compliance.
For more information on the settlement or to read the consent decree, visit http://www.justice.gov/enrd/consent-decrees.
Fort Thompson Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on November 17, 2015, by U.S. District Judge Roberto A. Lange.
Roscoe Dan Witt, Jr., age 30, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Witt was indicted by a federal grand jury on March 10, 2015. He pled guilty on August 25, 2015.
Witt was convicted of Assault with a Dangerous Weapon in 2004 and was sentenced to federal custody, followed by supervised release. As a convicted felon, Witt cannot possess any firearms. The current conviction stems from an incident on November 29, 2014, when a call was received at the Crow Creek Bureau of Indian Affairs (BIA) Police Department informing them that someone inside a cream colored Chevrolet Impala was shooting a gun around the old Fort Thompson area. A BIA officer was notified about the call, responded and saw the vehicle
He observed Witt by the driver side door. Witt was walking towards the front door of the store, but then turned around with his hand in his right pocket, opened the back door and put something into the vehicle.
The officer approached the driver side rear door and recovered a Premier 32 Smith and Wesson .32 Caliber handgun with the trigger locked back, as it was ready to be fired by pulling onto the trigger. Contact was made with Witt and he was placed into tribal custody. At the jail, officers recovered from Witt a .32 caliber casing.
The Division of Criminal Investigation laboratory confirmed that the .32 shell casing recovered from Witt was fired from the Premier 32 Smith and Wesson .32 Caliber handgun.
This case was investigated by the BIA. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Witt was immediately turned over to the custody of the U.S. Marshals Service.
Fort Collins Man Indicted by Federal Grand Jury for Being a Felon in Possession of a Firearm After Threatening to Shoot and Burn Down Front Range Community CollegeRead the Press Release
DENVER – Fort Collins resident and former Front Range Community College student David Aaron Moscow, age 30, has been indicted by a federal grand jury in Denver on two counts of being a felon in possession of a firearm, the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Fort Collins authorities announced. Moscow came to the attention of law enforcement after telling a clinical neuropsychologist that he planned to shoot people at Front Range Community College and burn down the school. Firearms were found in Moscow’s home and vehicle, along with a large amount of ammunition found in his home.
According to federal court documents, David Moscow was a student at Front Range Community College in Fort Collins in 2012, but left voluntarily. After leaving he made inappropriate calls to college personnel. He also posted questionable information online about the school. In October 2015, Moscow went back to the school in an attempt to re-enroll. During that process he was questioned about his former inappropriate conduct. After the meeting at the community college Moscow met with several clinical neuropsychologists, telling one of them he had desires to shoot people at the school and burn it down. This prompted a neuropsychologist to contact law enforcement.
An investigation into Moscow revealed that he had a prior felony conviction for Aggravated DUI in 2007 in Arizona. While the neuropsychologist put a Mental Health Hold on Moscow, law enforcement obtained a search warrant for his residence. Moscow was taken into custody on October 23, 2015 for his own safety based on the mental health hold. Also on that date, Fort Collins Police Services executed a search warrants at Moscow’s residence and in his car. They found an AR-15, fully loaded with a 30 round clips in his bedroom closet. They also found hundreds of rounds of ammunition. In addition, a Glock .40 caliber handgun was found in his vehicle. Moscow was also in possession of controlled substances, namely hydrocodone and Ecstasy.
Moscow, possessing the weapons after his Arizona felony conviction, was a felon in possession of a firearm. He was charged in federal court by Criminal Complaint on November 2, 2015. He was indicted by a federal grand jury on November 16, 2015. The defendant has made his initial appearance, where he was advised of the charges against him. He was advised of his rights, and was arraigned, entering a not guilty plea. U.S. Magistrate Judge Michael J. Watanabe ordered Moscow to be held in the custody of U.S. Marshals without bond.
In addition to the federal charges, Moscow was charged in Fort Collins by the Larimer County District Attorney with multiple violations of state law, including Felony Menacing (F5), Violation of Bail Bond Conditions (F6), Violation of a Protection Order (M1), Possession of a Weapon by a Previous Offender (F6), Prohibiting a Large Capacity Magazine During A Crime (F6), Possession of a Controlled Substance (DF4), and Interference with a School-Credible Threat (M1). It has been determined that in order to facilitate the federal prosecution of the firearm charges that the District Attorney’s Office is going to dismiss both the Possession of a Weapon by a Previous Offender charge as well as the charge Prohibiting a Large Capacity Magazine During a Crime. Larimer County District Attorney’s Office will retain the remaining charges.
If convicted of being a felon in possession, the defendant faces not more than 10 years, and up to a $250,000 fine, per count for each of the two counts.
The Moscow case was investigated by Fort Collins Police Services and the ATF with support from Front Range Community College Security. The matter also received substantial attention from Larimer County District Attorney Clifford Riedel’s Office.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Weber.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.