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Tuesday 10 November 2015
Vacaville Man Pleads Guilty to Defrauding California Air National Guard of Approximately $200,000 in Leave and False Expenses SchemeRead the Press Release
SACRAMENTO, Calif. — Thomas Venable, 46, of Vacaville, pleaded guilty today to theft concerning programs receiving federal funds in connection with his operation of a sustained leave and false expenses scheme while he was a Major in the California Air National Guard, United States Attorney Benjamin B. Wagner announced.
According to court documents, between April 2008 and April 2010, Venable obtained nearly $195,528 from the California Air National Guard (CA ANG) in wages, benefits, and expense reimbursements to which he was not entitled. Venable was assigned to a detail with the California Emergency Management Authority (Cal-EMA) that was available only to active duty CA ANG members. At the same time, Venable was frequently deployed for training and duty with the U.S. Air Force, and he was employed full time by the University of California-San Francisco Police Department (UCSF-PD). While deployed on federal duty or while working for the UCSF-PD between April 2008 and April 2010, Venable intentionally failed to use required military or other leave and collected double compensation from the federal government and the state of California. During the same period, Venable also filed at least 19 false travel and expense reimbursement claims that were unrelated to his CA ANG work but that were paid as though they were legitimate.
Venable also admitted that, for more than a year, he concealed from his direct supervisors at the CA ANG that he had joined the Texas Air National Guard in February 2009, resulting in Venable’s discharge from the CA ANG and his ineligibility for employment with Cal-EMA. In doing so, Venable affirmatively misrepresented his duty status to CA ANG staff.
This case is the product of an investigation by the United States Department of Defense, Defense Criminal Investigative Service, and the California Highway Patrol, Office of Internal Affairs. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Venable is scheduled to be sentenced by U.S. District Judge John A. Mendez on February 16, 2016. Venable faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
United States Settles Pregnancy Discrimination Action Against Triborough Bridge and Tunnel AuthorityRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, today announced the filing of a Complaint and Settlement Agreement in United States v. Triborough Bridge and Tunnel Authority a/k/a MTA Bridges and Tunnels, Civil Action No. CV-15-6417 to settle violations of Title VII of the Civil Rights Act of 1964 ("Title VII").
In its Complaint, the United States alleges that the Triborough Bridge and Tunnel Authority ("TBTA") routinely required pregnant Bridge and Tunnel Operating Force Officers, whose duties include protecting the safety and security of many of the major bridges and tunnels in the New York City area, to surrender their guns and work in less than full duty status regardless of their physical condition or ability to perform the requirements of the job. In one case, Officer Lori Ann DiPalo, then early in her pregnancy, provided a written opinion from her personal physician certifying that she could perform the full range of her duties. Nonetheless, without examining her, the TBTA determined that simply because DiPalo was pregnant, she could not perform her full duties or safeguard a firearm. The TBTA stripped DiPalo of her firearm privileges and forced her to choose between toll booth duty or disability leave for the remainder of her pregnancy.
Under the terms of the settlement, the TBTA will revise its EEO policy to reflect Title VII’s requirements, as well as create a new policy addressing fitness for duty status and workplace accommodations for Bridge and Tunnel Officers. The TBTA will also train all its employees on Title VII and the protection that Title VII affords pregnant employees. The TBTA will pay Officer DiPalo $100,000 in damages and $106,500 in damages collectively to a group of twelve other officers affected by the TBTA’s discriminatory practice.
"Title VII prohibits discrimination against pregnant employees" stated U.S. Attorney Capers. "This Settlement Agreement ensures that pregnant Bridge and Tunnel Operating Force Officers able to perform their duties will not be forced to accept lesser roles simply because they are pregnant."
The United States’ claims were litigated by Assistant United States Attorney Kelly Horan Florio. The United States Equal Employment Opportunity Commission also participated in the settlement process.
Una Pareja Sentenciada a Prisión por Fraude HipotecarioRead the Press Release
FRESNO, California – Dos residentes de Bakersfield fueron sentenciados el martes por el Juez Superior del Distrito de los Estados Unidos Anthony W. Ishii por sus implicaciones en una trama de fraude hipotecario en Bakersfield, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
Lucía Yolanda Chávez, de 37 años de edad, fue sentenciada a cuatro años de prisión por conspiración a cometer fraude bancario, fraude por correo y fraude por cable además de ser ordenada a pagar 1.8 millones de dólares en restitución. Joseph Chávez, de 41 años de edad, fue sentenciado a tres años de prisión por conspiración a cometer fraude bancario, fraude por correo y fraude por cable y fue ordenado a pagar 1.44 millones de dólares en restitución. Lucía Chávez también fue ordenada a desposeerse de los intereses de aproximadamente 110,000 de dólares incautados de una cuenta bancaria y a pagar una cantidad de dinero personal establecida por decisión judicial de 1.6 millones dólares de lo embargado. Joseph Chávez fue ordenado a pagar lo establecido por decisión judicial en 3 millones de dólares de dinero personal de lo embargado.
Según documentos del tribunal, los demandados conspiraron junto con otros colaboradores también demandados para usar ¨compradores de paja¨ para comprar propiedades residenciales en Bakersfield construidas por la empresa constructora Pershing Partners LLC (Pershing Partners) perteneciente a Lucía Chávez y por la empresa constructora Jara Brothers Investments (JBI) perteneciente a los co-demandados Eliseo Jara y Sergio Jara. Los conspiradores pagaban a los compradores de paja para comprar las propiedades de Pershing Partners y JBI y financiaban las compras con préstamos que obtenían de entidades de crédito para los compradores de paja basándose en solicitudes de préstamo falsas y fraudulentas. Para llevar a cabo la conspiración, los conspiradores usaron la empresa Paragon Home Mortgage para obtener y gestionar los préstamos. Lucía Chávez también había sido empleada por Paragon Home Mortgage desde aproximadamente agosto del 2006, y adquirió titularidad de Paragon Home Mortgage de los co-demandados Eliseo Jara Jr. y Sergio Jara en el 2007. Joseph Chávez fue empleado por Paragon Home Mortgage aproximadamente desde junio del 2006 a octubre del 2007 donde trabajaba como agente de préstamos y gerente de la oficina. Joseph Chávez y Lucía Chávez se declararon culpables el 10 de abril del 2015.
Las solicitudes de préstamo en las que figuran los nombres de los compradores de paja contenían declaraciones falsas por parte de estos mismos en relación a sus empleos, sus ingresos, sus bienes, sus intenciones de habitar las propiedades como residencias personales y el origen de los recursos de la cuota inicial para la compra de las propiedades. Los conspiradores ocultaban a las entidades de crédito que las mismas empresas constructoras proporcionaban los fondos para algunas de las cuotas iniciales de los compradores de paja. Los conspiradores también sometían documentación falsa a las entidades de crédito tales como los estados de cuentas falsas y alteradas que pretendían mostrar que los compradores de paja tenían saldos altos en las cuentas de banco, comprobaciones falsas de los fondos bancarios de los compradores de paja, comprobaciones falsas de alquileres que pretendían proceder de los dueños de las viviendas que alquilaban, comprobantes de pago falsos y comprobaciones de empleo falsas.
El caso es el producto de una investigación llevada a cabo por el Servicio de Recaudación de Impuestos - Investigaciones Criminales (IRS-CI) y la Oficina Federal de Investigación (FBI). Los Procuradores Auxiliares de los Estados Unidos Kirk E. Sherriff y Henry Z. Carbajal III procesaron el caso.
El 13 de octubre del 2015 los co-demandados Eliseo Jara y Sergio Jara fueron condenados a seis años y medio a la prisión cada uno y la co-demandada Melissa Jara fue condenada a cinco años de Libertad bajo Supervisión. El co-demandado Antonio Pérez-Marcial fue condenado el 12 de mayo del 2014 a tres años y 10 meses a la prisión y la co-demandada Arlene Jeanette Mojardín fue condenada el 18 de mayo del 2015 a dos años y medio a la prisión por sus implicaciones en la conspiración. La co-demandada Candace Gonzales se declaró culpable, con antelación, de la conspiración para cometer fraude bancario, fraude por correo y fraude por cable y la fecha de su audiencia para dictar la condena queda fijada para el 26 de octubre del 2015. El co-demandado Ricardo Salinas se declaró culpable, con antelación, de fraude bancario y su audiencia también queda fijada para el 26 de octubre del 2015.
U.S. Attorney’s Office recognizes Western District of Louisiana VeteransRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: United States Attorney Stephanie A. Finley announced that the U.S. Attorney’s Office will honor the men and women of the Western District of Louisiana and their family members who have served in the U.S. Armed Forces with a video presentation.
The presentation features employees from the U.S. Attorney’s offices, courthouse employees and their family members in all five divisions of the District, Shreveport, Lafayette, Alexandria, Lake Charles and Monroe. The video will be available for public viewing from November 10th to November 20th in the lobby of the U.S. federal courthouses in Shreveport and Lafayette. There will be an honor board in all five courthouses.
“There is never enough that we can say or do that adequately thanks the men and women who have heeded the call to serve,” Finley stated. “This presentation is just a small way to honor them. As a member of the U.S. Air Force, I am aware of how special and significant it is to have these veterans in our communities and how important it is for us to recognize their service. We owe them a debt of gratitude for their unwavering willingness to put service before self and safeguard our freedoms. This Veterans Day, I hope everyone remembers those who continue to serve. We salute them and celebrate their service to this Great Nation!”
Western District of Louisiana employees being honored for their service are:
United States Army - Aaron J. Broussard, F. Michael Campbell, U.S. District Judge Dee D. Drell, Robert W. Gillespie Jr., U.S. District Judge Richard T. Haik, David C. Joseph, Deborah Ritchey Mahony, C. Vincent Mangum, Joseph T. Mickel, Howard C. Parker, Edward Prokopf, Victor Sheppard, U.S. District Judge Tom Stagg (deceased), Fifth Circuit Chief Judge Carl E. Stewart, Chris Turner and U.S. District Judge Donald E. Walter.
United States Navy - Joseph G. Jarzabek, Daniel J. McCoy and Ryan Turner.
United States Coast Guard - Dennis K. Austin and U.S. Magistrate Judge Patrick Hanna.
United States Marin Corps - Angelo Iorio.
United Stated Air Force - Mitzie Cochrane, U.S. Attorney Stephanie A. Finley, Samuel W. Glass Sr., John S. Odom Jr., F. Michael O’Mara, Ryan Peck, Charlene Pullum, U.S. District Judge James T. Trimble Jr. and U.S. Marshal Henry L. Whitehorn Sr.
Immediate family members of the personnel in the Western District of Louisiana U.S. Attorney’s Office and U.S. District Court System being honored for their service are:
United States Army - Gerald Champagne, Steven L. Dupont, Doyce Ray Hebert, Eric Iorio, Shelton Julian, Joseph LeJeune, David A. McBride, Joseph R. Nolan, Michael E. Schaff and Barney W. Skipper.
United States Navy - Kyle Alwert, Thomas P. Cagney, David Cochrane, Leon Gordon Jones and John L. Witt.
United States Air Force - John T. Julian and Alan Williams.
United States Marine Corps - Stephen Box.
Of those listed above, two have received Purple Hearts and other medals for their actions during various wars. Shelton Julian, the grandfather of Assistant U.S. Attorney Karen King, served in the U.S. Army during World War II. He was assigned to the 92nd Infantry, Buffalo Division. During his service, he received the Purple Heart and one Oak Leaf Cluster. United States District Court Judge Tom Stagg served in the U.S. Army during WWII in Europe from 1944-1946. During his service, he received the Combat Infantry Badge, the Bronze Star for Valor, the Bronze Star for Meritorious Service and two Purple Hearts. Judge Stagg died on June 23, 2015. Steven Dupont, son of FDA Investigator Charles Dupont, served in the U.S. Army from 2008 until 2010 and was stationed at Headquarters and Headquarters Company, 3d Squadron, 2d Stryker Cavalry Regiment at Rose Barracks in Vilseck, Germany. He was assigned to Ghostrider Company as a Forward Observer during Operation Enduring Freedom in Afghanistan. Dupont was killed in action on October 24, 2010, in Rangrizan, Afghanistan. Specialist Dupont was awarded the Bronze Star, the Purple Heart, the NATO Medal and the Combat Action Badge, posthumously. While on active duty, he received the National Defense Service Medal, Afghanistan Campaign Medal, Global War on Terrorism Service Medal, Army Service Ribbon and the Overseas Service Ribbon.
The Purple Heart is given to military members who are wounded or killed in action. The Bronze Star of Valor is awarded for acts of heroism, acts of merit or meritorious service in a combat zone and is the fourth-highest combat decoration awarded to military members. The Oak Leaf Cluster denotes subsequent decorations and awards.
Information about the location of the five federal courthouses within the Western District can be found at the following link: http://www.justice.gov/usao-wdla/contact-us.
Two More New Haven Hotels Agree to Comply with Americans with Disabilities ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two New Haven Hotels, the Omni Hotel at Yale and Village Suites (formerly Premiere Hotel and Suites), have entered into settlement agreements with the U.S. Attorney’s Office as a result of an ongoing review to determine if certain New Haven-area hotels are being operated in compliance with the Americans with Disabilities Act (ADA).
Under federal law, private entities that own or operate “places of public accommodation,” which includes hotels, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and to undertake periodic reviews to determine compliance by covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
As part of a compliance review survey, 12 randomly-selected New Haven area hotels were asked to complete and return a survey form. Onsite inspections to confirm survey responses were then conducted and each hotel was reviewed for its compliance with federal law. Six of the surveyed hotels were found to have ADA violations. The government has been working with the owners and operators of each hotel found in violation in an effort to secure voluntary compliance. Previously, three of the six hotels found in violation, the La Quinta Inn and Suites, Courtyard Marriott and New Haven Hotel, entered into settlement agreements with the government. The government continues to work with the remaining hotel to secure a voluntary compliance agreement and address existing ADA violations.
The hotel survey was conducted in accordance with the Justice Department’s statutory responsibility to review compliance with federal law, and not in response to any specific complaint against any of the hotels within the scope of the review. Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation within the District of Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorneys David Nelson, Vanessa Avery, and Ndidi N. Moses, in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Two Miami Residents Plead Guilty for Involvement in Stolen Identity Tax Refund Fraud RingRead the Press Release
Defendants Stole Identities of Prisoners and Deceased Individuals
Two Miami residents pleaded guilty for their role in a stolen identity tax refund fraud conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Wifredo Ferrer of the Southern District of Florida announced today.
Jim Joseph and Roland Alexis pleaded guilty to one count of a multi-object conspiracy to defraud the Internal Revenue Service (IRS), commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft. Joseph pleaded guilty on Nov. 9 and Alexis pleaded guilty Nov. 5. According to court documents, between 2007 and July 2014, Joseph, Alexis and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. The stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to put Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed.
In late 2009, Alexis formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida, and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file more than 860 fraudulent tax returns. Alexis’s conduct resulted in a tax loss of $1.8 million and Joseph’s conduct resulted in a tax loss of $1.2 million.
Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge and a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge. Joseph and Alexis must serve the two-year sentence for aggravated identity theft in addition to any sentence the court imposes on the conspiracy charge. Both charges carry a statutory maximum fine of $250,000.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Ferrer commended special agents of the IRS-Criminal Investigation and Homeland Security Investigations, who investigated the case, and Assistant Chief Gregory E. Tortella of the Tax Division and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Convicted for Participating in A $95 Million International Market Manipulation SchemeRead the Press Release
BROOKLYN, NY – Late yesterday, defendants Gary Kershner, an Arizona business owner, and Songkram Roy Sahachaisere, a California stock promoter, were convicted by a federal jury in Brooklyn on all counts for their role in a $95 million international market manipulation scheme. The jury’s verdict followed a five week trial before United States District Judge Eric N. Vitaliano. The defendants were convicted of conspiracy to commit securities fraud, conspiracy to commit wire fraud, two counts of securities fraud, four counts of wire fraud, and two counts of making false statements to federal agents. Kershner and Sahachaisere are the eighth and ninth defendants convicted in this case.
The guilty verdicts were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Through lies and deceit, the defendants took advantage of the investing public and sold them worthless stock of shell companies that were propped up by false press releases. We and our partners in law enforcement are committed to rooting out fraud in the financial markets,” stated United States Attorney Capers. Mr. Capers extended his appreciation to the FBI, which led the government’s investigation, and thanked the Internal Revenue Service, Criminal Investigation, New York; Homeland Security Investigations, Department of Homeland Security, Buffalo; Treasury Inspector General for Tax Administration; the Royal Canadian Mounted Police; and law enforcement authorities in England, Thailand, and China for their assistance in this case.
The evidence at trial established that Kershner and Sahachaisere, together with others, engaged in an international “pump and dump” operation, fraudulently inflating the share price of worthless penny stocks, and then dumping billions of shares on unsuspecting victim investors across the globe. Kershner was responsible for drafting the false press releases and Sahachaisere was responsible for promoting the worthless companies based on the false press releases.
When sentenced by United States District Judge Eric N. Vitaliano, Kershner and Sahachaisere face a sentence of up to 20 years in prison.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Christopher A. Ott, Tyler Smith, and Mark Bini are in charge of the prosecution, with assistance provided by Assistant United States Attorney Melanie Hendry of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendants:
Gary Kershner
Age: 75
Tucson, ArizonaSONGKRAM ROY SAHACHAISERE
Age: 45
Newport Beach, CaliforniaE.D.N.Y. Docket No. 13-CR-452 (S-2) (ENV)
Two California Residents Convicted in $819,000 Insider Trading SchemeRead the Press Release
SAN FRANCISCO – Today, Christian Keller and John Gray each pleaded guilty to one count of conspiracy and one count of securities fraud, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The guilty pleas stem from an insider trading scheme involving material, non-public, inside information from Rovi Corporation, and one other publicly-traded company, that generated illegal profits in excess of $819,000.
Keller, 41, of Los Altos, and Gray, 39, of Irvine, were charged by information filed September 2, 2015, with participating in an insider trading scheme. According to the information, Keller provided Gray with material, non-public, inside information between 2009 and 2012. Prior to 2012, Keller worked at a public company, the name of which was not disclosed in the information, where Keller had access to material, non-public, confidential information, which Keller provided to Gray and which Gray used to execute securities transactions.
In early 2012, Keller was employed by Rovi Corporation, in Santa Clara, Calif., as a Vice President of Corporate Finance and Investor Relations. Keller provided Gray with material, non-public, confidential information relating to the performance and revenue estimates of Rovi Corporation. Gray, and others, then executed a series of securities transactions using the inside information, sometimes in the brokerage accounts of third persons to conceal the scheme. From the illegal trading profits, Gray paid Keller a total of approximately $46,000 in cash. Each defendant was changed with one count of conspiracy, in violation of 18 U.S.C. § 371, one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff, and related regulations, and aiding and abetting securities fraud, in violation of 18 U.S.C. § 2.
Both defendants currently are released from custody pending sentencing. Keller is scheduled to appear for sentencing on April 19, 2015, before the Honorable Jeffrey S. White, District Judge. Gray’s sentencing, also before Judge White, is scheduled for April 5, 2015.
The maximum statutory penalty for conspiracy in violation of 18 U.S.C. § 371 is 5 years in prison and a fine of not more than $250,000, or twice the gross gain or twice the gross loss, whichever is greater. The maximum statutory penalty for securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff is 20 years in prison and a fine of not more than $5 million. However, any sentence following convictions for these offenses would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Adam A. Reeves is prosecuting the case with the assistance of Beth Margen and Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
Trucking Company Employee Charged with Stealing U.S. MailRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Luzerne County man has been charged with stealing mail from multiple United States Post Offices.
According to United States Attorney Peter Smith, Steven Dubravski, Sr., age 55, of Lattimer Mines, Pennsylvania, is charged with theft of mail in a Criminal Information filed today in the United States District Court in Scranton. Dubravski was employed by a trucking company and was responsible for picking up and delivering mail for United States Post Offices in Luzerne County. It is alleged that Dubravski stole cash and other items of value from inside multiple mail items intended for delivery to postal customers. The amount of loss is approximately $2,800. The thefts are alleged to have occurred from March 2013 through March 2014. Dubravski was fired by his employer after the company learned what had happened.
The government has filed a plea agreement with the defendant which is subject to the approval of the Court.
No date has been scheduled as yet for a hearing in the case.
The case was investigated by the United States Postal Service, Office of Inspector General. The defendant is being prosecuted by Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing guidelines.
Theft of mail is punishable by up to 5 years’ imprisonment and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tres Hombres Sentenciados Hoy Por Tráfico de Droga en el Condado de KernRead the Press Release
FRESNO, California – Hoy, el Juez del Distrito de los Estados Unidos Lawrence J. O´Neill dictó sentencia a tres demandados en dos casos por traficar con metanfetamina, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
En el primer caso, José Mojarro Cruz, alias Shyboy, de 28 años de edad, y residente de Bakersfield fue condenado a 15 años y nueve meses a la prisión por conspirar para distribuir y poseer con intento de distribuir metanfetamina y heroína. Se declaró culpable de los hechos el 21 de abril del 2015. El co-demandado Arnoldo Delgado García (Delgado), alias Fabricio Rene Delgado-Perea, de 35 años de edad, y ciudadano de México fue condenado a 11 años y cuatro meses a la prisión. El 11 de mayo del 2015 se declaró culpable de conspirar para distribuir y poseer con intento de distribuir metanfetamina y heroína.
Según documentos del tribunal, los demandados distribuían, regularmente, metanfetamina y heroína a varios comerciantes de droga y consumidores del Condado de Kern desde mayo del 2013 hasta enero del 2014. Los demandados reconocieron haber distribuido entre 15 y 45 kilos de metanfetamina y más de 1.000 gramos de heroína. El co-demandado Erik Gesus Rivera, de 28 años de edad, y residente de Bakersfield se declaró culpable de posesión con intento de distribuir metanfetamina, y el 21 de septiembre del 2015 fue condenado a dos años de prisión.
Este caso fue el producto de una investigación por el Destacamento Especial para la Lucha Contra las Drogas y el Crimen Organizado (Organized Crime Drug Enforcement Task Force u OCDETF) a través de las Aplicaciones de Ley de Inmigración y Aduanas de los Estados Unidos (U.S. Immigration and Customs Enforcement o ICE), las Investigaciones de la Seguridad de la Patria (Homeland Security Investigations o HSI), la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration o DEA), la Oficina del Sheriff del Condado de Kern y el Destacamento Especial para las Áreas de Tráfico de Droga de Alta Intensidad del Tri-Condado del Sur (Southern Tri-County High Intensity Drug Trafficking Area Task Force o HIDTA). El Procurador Auxiliar de los Estados Unidos Brian K. Delaney procesó el caso.
Caso nº 1:14-cr-048 LJO
En el segundo caso, el Juez O´Neill, condenó a Juan Lascano Jr., de 32 años de edad, y residente de Bakersfield, a 10 años de prisión. El 27 de julio del 2015, Lascano se declaró culpable de distribución de metanfetamina.
Según documentos del tribunal, Lascano y sus co-demandados conspiraron para distribuir metanfetamina en cantidades de una libra por el área de Bakersfield. El 21 de septiembre del 2015, el co-demandado Guillermo Magallanes, de 36 años de edad, y residente de Bakersfield, se declaró culpable de conspiración para distribuir metanfetamina y el co-demandado Pascual Gonzales Magallanes, de 44 años de edad, y residente de Bakersfield, se declaró culpable de distribución de metanfetamina.
La audiencia para dictar sentencia de los dos co-demandados está programada para el 14 de diciembre del 2015. Guillermo Magallanes se enfrenta a una pena máxima establecida por la ley de cadena perpetua y una multa de 5 millones de dólares, y Pascual Gonzales Magallanes se enfrenta a una pena máxima establecida por la ley de 40 años en prisión y una multa de 2 millones de dólares. El tribunal, no obstante, se reserva la decisión sobre las sentencias propiamente dichas hasta que todos los factores aplicables establecidos por la ley y por las Directrices Federales para Dictar Sentencia sean consideradas, tomando en cuenta un número determinado de variables.
Además de los cargos criminales, los Estados Unidos está pidiendo la incautación de 31,242 de dólares, un Lexus IS250 F Sport del 2014, y un Acura TL sedán del 2012, efectos de la actividad del tráfico ilegal de droga.
Este caso es el producto del Destacamento Especial de Lucha Contra las Drogas y el Crimen Organizado (Organized Crime Drug Enforcement Task Force u OCDETF) a través de la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration o DEA), la Oficina Federal de Investigación (FBI), la Oficina del Sheriff del Condado de Kern y el Departamento de Policía de Bakersfield. El Procurador Auxiliar de los Estados Unidos Brian K. Delaney está procesando el caso. 1:15
Tortola Man Indicted on Bulk Cash Smuggling ChargeRead the Press Release
St. Thomas, USVI – A federal grand jury returned a one-count indictment on November 5, 2015, charging Kevin Henley, 21, of Tortola, British Virgin Islands, with Bulk Cash Smuggling, United States Attorney Ronald W. Sharpe announced today.
Henley was arrested on October 7, 2015, and was released on home confinement with electronic monitoring after posting a $25,000.00 cash bond pending trial. His arraignment and advice of rights on the indictment are scheduled to occur on November 12, 2015.
According to the indictment and court documents, agents of the Department of Homeland Security Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), were conducting surveillance in Red Hook, St. Thomas, when they observed Henley load several packages on his British registered vessel docked at the American Yacht Harbor. Henley departed the American Yacht Harbor, but his vessel soon stalled, and he was escorted back to the ferry dock by a passenger ferry. As Henley approached the dock, he grabbed a black duffle bag from his vessel and attempted to flee the dock without the other packages and without securing the vessel. Henley was immediately apprehended by HSI agents. Upon inspection of Henley’s duffle bag, agents found approximately $256,386.00 cash in U.S. Currency. Henley was arrested and charged with failure to declare his currency before departing the United States Virgin Islands.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty. This case is being investigated by HSI, and is being prosecuted by Assistant United States Attorney Delia L. Smith.
Three sentenced in methamphetamine trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Garland Samuel Butler, 51, Samuel Scott Butler, 24, and Kate Lynn Baker, 21, all of Saint Marys, West Virginia, were sentenced in federal court this week for their role in a methamphetamine trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants sentenced this week were among six individuals charged in a 19-count federal indictment in June 2015 stemming from a methamphetamine trafficking operation in Pleasants County, West Virginia. They were each discovered in possession of pseudoephedrine, an ingredient commonly used to manufacture methamphetamine. They each pled guilty in August 2015 to one count of “Possession of Material Used in the Manufacture of Methamphetamine.”
Samuel Butler was sentenced to 24 months in prison. Garland Butler and Kate Lynn Baker were each sentenced to probation for a term of two years.Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasant’s County Sheriff’s Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Three convicted in Baltimore to West Virginia heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three individuals were convicted in federal court today for their role in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants convicted today conspired with an extensive group of individuals to participate in drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into locations in West Virginia, Virginia, and Pennsylvania. The operation was disrupted in June 2015 by a 163-count federal indictment encompassing 41 defendants.
Jeffrey David Murphy, 34, of Martinsburg, pled guilty today to:
• One count of “Aiding and Abetting Possession with Intent to Distribute Heroin” for which he faces up to 20 years in prison and a fine of up to $1,000,000,
• One count of “Aiding and Abetting Interstate Travel in Aid of Racketeering” for which he faces up to five years in prison and a fine of up to $250,000, and
• One count of “Use of a Telephone to Facilitate the Distribution of Heroin” for which he faces up to four years in prison and a fine of up to $250,000.Veronica Thomas, 24, of Chambersburg, Pennsylvania, pled guilty today to one count of “Conspiracy to Distribute Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000.
Cameron Stinebaugh, 28, of Berkeley Springs, West Virginia, pled guilty today to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” He faces up to five years in prison and a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Three Long Island Men Plead Guilty in White Plains Federal Court in Connection with Sullivan County ArsonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that NICHOLAS MOTTA and DOMINIC MOTTA pled guilty today in White Plains federal court to attempted mail fraud in connection with a scheme to obtain insurance proceeds by committing arson. Previously, on October 23, 2015, a third defendant, ANTHONY PERSO, pled guilty to attempted mail fraud in connection with the same arson and insurance fraud scheme. All defendants pled guilty before the U.S. District Judge Nelson S. Román. The MOTTAS are scheduled to be sentenced on February 11, 2016; PERSO is scheduled to be sentenced on January 29, 2016.
According to the allegations contained in the indictment and information adduced during the Court proceedings:
In the early morning hours of February 10, 2010, during an extraordinary blizzard, a shuttered bar in Swan Lake, New York, formerly known as Kilcoin’s, was set ablaze and destroyed. PERSO was among the individuals who set the fire. NICHOLAS and DOMINIC MOTTA owned the bar, and arranged the arson by having others, including PERSO, travel to Sullivan County to set the bar afire, in order to make a claim to recover proceeds from the insurance company. In pursuing the insurance claim, DOMINIC MOTTA deceived the insurance company about the fire in order to attempt to obtain more than $100,000 in insurance proceeds. The insurance company, however, detected the arson, and ultimately denied DOMINIC MOTTA’s claim when MOTTA repeatedly failed to respond to requests by the insurance company that he answer questions about the fire under oath.
* * *
DOMINIC MOTTA, 59, and NICHOLAS MOTTA, 43, both of Islandia, New York, and PERSO, 32, of Medford, New York, each pled guilty to one count of attempted mail fraud. The offense carries a maximum penalty of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the Suffolk County District Attorney’s Office, the Suffolk County Police Department, and the Sullivan County Sheriff’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Allee and George Turner are in charge of the prosecution.
Three Charged with Hacking into E*Trade and Scottrade in Massive Data Breach and Identity Theft SchemeRead the Press Release
ATLANTA – Three individuals were charged in an indictment unsealed today with an international scheme to hack into E*TRADE Financial Services Corporation and Scottrade Financial Services, Inc. to steal sensitive personal identifying information from millions of customers and build their own securities brokerage using the companies’ proprietary databases.
“The massive scale of these data breaches is staggering. But the methods and goals of this scheme are all too familiar and highlight the critical threat that cyber-crime poses to our nation’s economic security,” said U.S. Attorney John Horn. “The indictment alleges that the defendants launched sophisticated cyber-attacks against financial institutions and stole personal identifying information of millions of customers. The charges announced today send a clear message that international borders will not impede our efforts to prosecute cyber-criminals who seek to breach our computer networks.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “This investigation, and the charges announced today, clearly illustrates that the FBI and its partners will not tolerate attacks of any kind on our nation’s financial infrastructure, and will continue to pursue those responsible as part of our collective effort to protect our citizens’ personal information. While corporations that hold our citizens’ data continue to be the targets of the evolving cyber threat, they are also the key to defeating it. This investigation is a prime example of how collaborative efforts between the public and private sector lead to tangible results in the fight against digital crimes.”
According to the indictment unsealed today: Between November 2012 and August 2014, Gery Shalon, a/k/a/ Garri Shalelashvili, Joshua Samuel Aaron, and an unidentified third hacker conspired to hack into the computer networks of financial institutions and media companies to steal customer data. In online chats, Shalon and the hacker discussed their plan to use the stolen customer contact information to build their own brokerage database for marketing stocks to potential investors, boasted about their early success in “cold-calling” investors, and expressed hope that a bank would pay to acquire their database.
The indictment alleges that Shalon directed the hacker to breach companies with large customer databases of investors, including E*TRADE and Scottrade, and the hacker infiltrated their networks using sophisticated hacking techniques. In late November 2013 and early December 2013, the hacker breached Scottrade’s network and E*TRADE’s network using overseas servers provided by Shalon. After gaining a foothold in both networks, the hacker asked Shalon for the login credentials of a customer account at both companies in order to locate their customer databases. In response, Aaron provided Shalon with login credentials that Aaron wrongfully obtained from a United States victim, including the victim’s username and password, and Shalon sent the information to the hacker.
The indictment alleges that, using the victim’s login credentials, the hacker located E*TRADE’s and Scottrade’s customer databases. Shalon and the hacker discussed the personal identifying information information visible in the databases, and at Shalon’s direction, the hacker exported stolen customer data, including names, residential addresses, phone numbers, and email addresses, to an overseas server provided by Shalon.
In total, the defendants compromised customer databases containing the personal information of more than 10 million customers of E*TRADE and Scottrade alone.
A federal grand jury in Atlanta, Ga., returned a 10-count sealed indictment against Shalon, Aaron, and the third hacker on October 27, 2015. The indictment was unsealed today. The indictment charges them with one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit computer fraud, two counts of computer fraud, and three counts of aggravated identity theft. Shalon, 31, a resident of Israel, was arrested by Israeli law enforcement in Savyon, Israel on July 21, 2015, and remains in custody in Israel, where extradition proceedings are pending. Aaron, 31, a United States citizen and resident of Israel, is not in custody.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with valuable assistance provided by the New York Field Office of the United States Secret Service. E*TRADE and Scottrade cooperated fully in the investigation. Foreign law enforcement partners also made significant contributions to the investigation, including the exceptional support and cooperation provided by the National Cyber Unit of the Israel Police. Valuable assistance also was provided by the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of New York.
Assistant United States Attorney Nathan P. Kitchens is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Texas Woman Pleads Guilty in Credit Card Fraud SchemeRead the Press Release
BOISE – Brooke Ashley Darby, 29, of Fort Worth, Texas, pleaded guilty today to one count of wire fraud and one count of aggravated identity theft for her role in a credit card fraud scheme that targeted local retailers in June 2015, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Darby traveled to the District of Idaho, along with her co-defendant, for the purpose of making fraudulent purchases of gift cards and merchandise from retail stores, using stolen credit card numbers encoded onto stock gift cards. Darby admitted to obtaining the stock gift cards encoded with unauthorized credit card numbers, and making purchases at retail stores on June 23 and June 24, 2015. In all, Darby admitted that, together, she and her co-defendant purchased approximately $13,095.90 in gift cards and merchandise with the fraudulently encoded gift cards. Upon her arrest, Darby and her co-defendant were found in possession of approximately 250 gift cards encoded with unauthorized credit card numbers. As part of her plea, Darby also agreed to forfeit a sum of money equivalent to the proceeds in gift cards and merchandise obtained by virtue of the charged offenses.
Wire Fraud is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not more than three years, and a $100 special assessment. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100. Sentencing is set for January 25, 2016, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the United States Secret Service and the Boise Police Department.
Texas Man Charged with Wire Fraud and Money LaunderingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Bradley Boyd, 43, of Rhome, Texas, was charged by criminal complaint with wire fraud and money laundering. The charges carry a maximum penalty of 20 years in prison and a $500,000 fine.Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Boyd was president of River Cities Sawing (RCS), a concrete business involved in highway infrastructure projects. RCS entered into a factoring arrangement with a New York financing company, Durham Funding.
Boyd caused RCS to prepare and submit to Durham Funding approximately 60 fraudulent invoices totaling $1,500,000. Based on the fraudulent invoices, the financing company sent RCS approximately $970,000 between March 1, 2011 and July 1, 2011. The defendant used the money to make payments on loans, pay RCS expenses and pay personal expenses.
Boyd made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and was released on conditions. He is due back in court on February 3, 2016, at 9:00 am.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Texas Fugitive Sentenced to Prison for Aggravated Identity Theft and Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – Senior United States District Judge Henry Lee Adams today sentenced John Thomas Humphreys (46, Texas) to four years and six months in federal prison for manufacturing counterfeit Federal Reserve notes and for false representation of a Social Security number. As part of the sentence, the Court also ordered Humphreys to pay restitution to the businesses that he had defrauded.
According to the plea agreement, on February 2, 2015, the Green Cove Springs Police Department received information that two individuals, later identified as Humphreys and Joe Eugene Loving, were manufacturing counterfeit Federal Reserve notes in their hotel room at the Astoria Hotel in Clay County. The two men had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by the Clay County Sheriff’s Office. Deputies found Loving in possession of a counterfeit $100 bill following his arrest.
During an interview with law enforcement, Humphreys and Loving stated that they had been involved in a drug deal in Texas in December 2014 and had been on the run ever since. They estimated printing and passing at least $10,000 in counterfeit currency. In addition, they printed counterfeit checks using the identities of others.
During a subsequent search of the hotel room, agents located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media that had been used to manufacture the counterfeit currency.
On September 11, 2015, Loving pleaded guilty to manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. His sentencing hearing is scheduled for December 1, 2015.
A third individual, Paul Corbin Pennington, Jr., was also charged in this case for passing counterfeit currency. Pennington, a maintenance worker at the Astoria Hotel, loaned Loving and Humphreys his computer. Loving and Humphreys then used the computer to print counterfeit checks. Pennington confessed to law enforcement that he had passed counterfeit currency in Clay County. On October 13, 2015, Pennington was sentenced to 141 days in federal prison and was ordered to pay restitution to the businesses that he had defrauded.
This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the United States Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Taos Pueblo Man Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE—Keith E. Lucero, 27, a member and resident of Taos Pueblo, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 37 months in federal prison followed by three years of supervised release for his conviction on involuntary manslaughter and assault resulting in serious bodily injury charges.
Lucero was arrested on July 28, 2014, on an indictment charging him with killing an Indian man and assaulting another Indian man, causing him to suffer serious bodily injury on March 2, 2014. The indictment alleged that Lucero committed these crimes while driving under the influence of alcohol in Indian Country in Taos County, N.M.
According to court filings, Lucero killed a Taos Pueblo man who was in Lucero’s vehicle during a crash in El Prado, N.M., while Lucero was under the influence of alcohol. Another Taos Pueblo man who was also a passenger in the vehicle sustained serious bodily injuries as a result of the crash.
On June 3, 2015, Lucero pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Pueblo Department of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
Suitland Woman Pleads Sentenced to Prison for Stealing over $115,000 in Social Security Retirement BenefitsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Theresa Darlene Snead, age 56, of Suitland, Maryland today to 18 months in prison, followed by three years of supervised release, for theft of government property in connection with a scheme to steal over $115,000 in social security benefits. Judge Chasanow also entered an order requiring Snead to pay restitution of $115,388.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to Snead’s plea agreement, between May 1986 and her death on January 10, 2003, Individual A received monthly retirement benefits from the Social Security Administration (SSA). At the time of her death, Individual A was living with Snead. Individual A’s death was not reported to SSA. Between January 2003 and March 2014, when the benefits were terminated, SSA continued to mail Individual A’s monthly benefits check to Snead’s address in Suitland.
Snead admitted that after Individual A’s death she cashed the SSA checks at a local liquor store, using an identification card bearing Individual A’s name, but Snead’s photograph. Snead signed the back of each check in Individual A’s name. SSA paid a total of $115,388 in retirement benefits after Individual A’s death. Snead admitted that she knew she was not entitled to these benefits.
United States Attorney Rod J. Rosenstein commended the SSA Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren Perry and Assistant U. S. Attorney Lindsay Eyler Kaplan, who prosecuted the case.
St. Thomas Man Indicted on Bulk Cash Smuggling ChargeRead the Press Release
St. Thomas, USVI – A federal grand jury returned a one-count indictment on November 5, 2015, charging Kevin Greaves, 43, of St. Thomas, with Bulk Cash Smuggling, United States Attorney Ronald W. Sharpe announced today.
Greaves was arrested on August 22, 2015, and was released on home confinement with electronic monitoring after posting a $25,000.00 cash bond pending trial. His arraignment and advice of rights on the indictment are scheduled to occur on November 12, 2015.
According to the indictment and court documents, Department of Homeland Security Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) agents were conducting surveillance in the East End area of St. John when they observed Greaves approach a vessel that had signaled its arrival from Tortola, BVI, to Greaves at an area overlooking Haulover Bay, St. John. Greaves traveled from the lookout area to Haulover Bay, met with the occupants of the vessel, then departed after a brief encounter. HSI agents followed Greaves to the Pine Peace area where they stopped him and questioned him about his travels. Greaves told agents that he went to Haulover Bay to discuss a welding job with a mechanic. Agents conducted a search of Greaves’ vehicle and found two duffle bags containing $118,000.00 cash in U.S. currency. Greaves was arrested and charged with failure to declare the currency after it arrived in the United States Virgin Islands from a place outside the United States.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty. This case is being investigated by HSI, and is being prosecuted by Assistant United States Attorney Delia L. Smith.
St. Louis Company Charged with OSHA Violation that Caused Worker's DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Pacific, Mo., company was charged in federal court today with violating an OSHA regulation and causing the death of a Raymore, Mo., ironworker.
DNRB, Inc., doing business as Fastrack Erectors, located in Pacific, was charged in an information filed in the U.S. District Court in Kansas City, Mo.
In July 2014, Fastrack was a subcontractor in the construction of a 300,000-square-foot distribution warehouse located in Kansas City, Mo. Fastrack is an American Institute of Steel Construction-certified steel erection company that specializes in structural steel, miscellaneous steel, pre-engineered metal buildings, ornamental metal handrail, and precast installation. Fastrack supplied on-site supervisors (who are based in the St. Louis, Mo., area) while the ironworkers were hired from the union local in Kansas City, Mo.
On July 24, 2014, two Fastrack ironworker employees were receiving a bundle of roof decking sheet metal and setting it on top of the building’s bar joists. The employees’ task required them to guide the decking bundle to land it. Each decking bundle was 26 feet long by 36 inches wide. The employees accessed the top of the building from a scissor lift and walked approximately 15 feet along a joist without wearing any fall protection. They walked on trusses that were nine inches wide, or bar joists which were five inches wide. Other ironworkers secured the decking to the trusses with screws and welds. These workers did not use fall protection.
Eric Roach, 22, one of the employees landing the decking, fell approximately 30 feet to the ground and was transported to a local hospital where he died the following day.
Fastrack was a subcontractor to ARCO National Construction-KC, Inc. According to court documents, the contract between ARCO and Fastrack required that Fastrack “personnel who are working or present at heights in excess of 6 feet shall be provided, by (Fastrack) adequate fall protection.” Fastrack allegedly failed to enforce the use of fall protection.
According to the information filed today, no fall protection equipment was provided by the company. Both working foremen on the site were told, or questioned, about the lack of fall protection equipment, the information says, and were in a position to personally observe employees failing to use fall protection equipment. At least one of the foremen allegedly was working on the decking in the immediate area of the employees; he failed to wear fall protection himself and failed to enforce the use of fall protection by the employees.
Federal statutes require that each employee engaged in a steel erection activity who is on a walking/working surface with an unprotected side or edge more than 15 feet above a lower level shall be protected from fall hazards by guardrail systems, safety net systems, personal fall arrest systems, positioning device systems or fall restraint systems.
Dickinson cautioned that the charge contained in this information is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Occupational Safety and Health Administration and the Department of Labor – Office of Solicitor.
St. Croix Woman Sentenced to 18 Months in Prison for Manufacture of MarijuanaRead the Press Release
St. Croix, USVI – District Court Chief Judge Wilma A. Lewis on November 6, 2015, sentenced
Gail Leung, 57, to 18 months in prison for manufacture of marijuana, United States Attorney Ronald W. Sharpe announced today.Judge Lewis also ordered Leung to serve two years of supervised release, and pay a $100 special assessment and $5,000 fine.
On June 11, 2015, Leung pleaded guilty to manufacture of marijuana. As part of her plea, she agreed to pay a forfeiture money judgment in the amount of $3,000. According to court documents, Leung knowingly and intentionally grew marijuana plants on her property in Estate Mount Pleasant, St. Croix. On May 28, 2014, the U.S. Drug Enforcement Administration (DEA) removed a total of 200 marijuana plants from the property.
This case was investigated by the DEA. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Seven Defendants Convicted for Their Roles in $33 Million Tax Refund SchemeRead the Press Release
FRESNO, Calif. — After a three-and-a-half week trial, a federal jury in Fresno has found four defendants guilty of participating in a tax refund scheme claiming more than $33 million in federal tax refunds, United States Attorney Benjamin B. Wagner announced.
Fresno residents Gaylene Lynette Bolanos,58; and Leroy Donovan Combs, 74; Madera County resident Charles Wayne Uptergrove, 57; and Ladonna Lee Moon, 55, of Texas, were convicted of submitting false claims against the United States. Bolanos was also found guilty of conspiracy to defraud. The jury was unable to reach a verdict as to Rodney Edwin Moon, of Texas.
Prior to trial, co-defendants James Karam Schwartz, 60, and Louie Calles, 65, pleaded guilty to submitting false claims against the United States. Another co-defendant, Oswald Georgner, 66, of Fresno, pleaded guilty to the conspiracy to defraud. Each of the defendants is awaiting sentencing.
According to court documents and testimony at trial, between August 2008 and October 16, 2008, Bolanos and Georgner conspired to submit false claims for income tax refunds. Bolanos and Georgner worked with others, including Combs, Uptergrove, Calles, Schwartz, and Ladonna Lee Moon to submit false tax returns in an attempt to eliminate their debts and receive sizable tax refunds by submitting their tax returns with false claims of interest income and withholding citing IRS Form 1099-OID.
As part of the scheme, the defendants submitted false tax returns to the IRS seeking more than $33 million in fraudulent tax refunds. As a result of these fraudulent tax refund claims, the IRS issued approximately $400,000 in fraudulent refunds. The tax returns were fraudulent because the defendants listed their debts, bills, and other non-income items as interest income. The defendants then claimed that almost all of that interest income had been withheld and paid to the IRS, even though none of the purported interest income was ever withheld. Based on the reported withholdings, the defendants claimed they were owed millions of dollars in refunds by the IRS.
“These defendants went well beyond cheating on their taxes to avoid paying their fair share,” said U.S. Attorney Wagner. “They sought to steal millions in taxpayer funds meant to provide services for us all. We are pleased by the jury’s verdict and we will continue our efforts to bring to justice those who would plunder the public fisc.”
“Plain and simple, this was fraud,” said Acting Special Agent in Charge Thomas McMahon, IRS Criminal Investigation. “Today’s conviction should send a clear message that those involved in these schemes will not go undetected. It is more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Henry Z. Carbajal III are prosecuting the case with assistance from Trial Attorney Karen J. Sharp, of the Department of Justice, Antitrust Division.
The four defendants convicted at trial are scheduled to be sentenced my United States District Judge Anthony W. Ishii on March 7, 2016. They face a maximum statutory penalty of five years in prison on each false claims charge. Bolanos and Georgner face a maximum statutory penalty of 10 years in prison for the conspiracy charge. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sentenciado un Antiguo Residente De Roseville por Estafa de Modificaciones de Préstamos y Rescates de Embargos Inmobiliarios Orientada a la Comunidad de Habla HispanaRead the Press Release
SACRAMENTO, California – Martin Wayne Flanders, de 51 años de edad, y antiguo residente de Roseville, fue sentenciado hoy por el Juez del Distrito de los Estados Unidos Troy L. Nunley a seis años y cinco meses de prisión por una trama que se dirigía a propietarios de viviendas que se encontraban en dificultades económicas, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
En febrero del 2015, Flanders y su esposa Ligia Sandoval Spafford (Sandoval), de 48 años de edad, y residente de Roseville, se declararon culpables de fraude por correo en su participación en la trama fraudulenta.
Según documentos del tribunal, entre los años 2008 y 2010, Flanders cobró tarifas por adelantado a sus clientes por un número de servicios financieros que incluían modificaciones de préstamos, revisiones de préstamos hipotecarios, recuperación de crédito, liberación de deuda, peticiones de bancarrota y un programa para vender casas a “inversionistas” que las alquilaban con la opción a compra. Flanders y Sandoval comerciaban estos servicios con aquellos propietarios de viviendas que se encontraban en dificultades económicas, y en particular con énfasis a personas de habla hispana. Durante un programa de radio que se emitía dos veces por semana en la zona del “Bay Area” por Radio Luz, una emisora de radio Cristiana en español, Sandoval promovía los servicios que ella y Flanders ofrecían. Flanders también hacía publicidad en Univisión, un canal de televisión en español, y revistas en español. Cerca de un 98 por ciento de los clientes de los demandados eran de descendencia hispana; algunos hablaban nada o poco inglés. Sandoval habla español, pero Flanders no lo habla.
Tanto Flanders como Sandoval dieron testimonios falsos a los inversores sobre el éxito de los planes que se ofrecían o, en el caso, de las devoluciones que estaban disponibles si los planes no prosperaban. En el intento de retrasar el proceso de embargo de las viviendas, Flanders y Sandoval se servían de ofertas ficticias llamadas “ofertas fantasma” para comprar las viviendas de las víctimas a precio reducido, un proceso llamado “short sale,” como también de fingidas peticiones de bancarrota que eran rápidamente desestimadas por el tribunal de bancarrotas llamadas “bancarrotas de esqueleto.” Al menos, entre 25 a 30 individuos pagaron por los servicios que nunca recibieron o no recibieron las devoluciones cuando los planes no cumplieron con lo prometido. Como mínimo, las pérdidas totales para las víctimas fueron de $125,000 dólares. Algunos propietarios que no pudieron recibir subsidios fueron embargados por sus entidades de credito.
“Al dirigirse a personas en situaciones de dificultades económicas y con un dominio limitado del inglés, Flanders buscaba enriquecerse estando sobre las espaldas de aquellos que menos podían permitírselo,” declaró el Procurador de los Estados Unidos Wagner. “Estamos agradecidos de la sentencia impuesta por el tribunal, y continuaremos a enfocar nuestros esfuerzos en el procesamiento de tramas depredadoras y fraudulentas.”
Este caso es un producto de una investigación por la Oficina Federal de Investigación (FBI). Los Procuradores Auxiliares de los Estados Unidos Todd A. Pickles y Shelley Weger están procesando el caso.
Flanders está en detención desde su arresto en octubre del 2012. Sandoval está actualmente en libertad. Sandoval está programada para ser sentenciada por el Juez Nunley el 3 de marzo del 2016. Ella se enfrenta a una pena máxima establecida por la ley de 20 años en prisión y una multa de $250,000 dólares. El tribunal, no obstante, se reserva la decisión sobre la sentencia, propiamente dicha, y hasta que todos los factores aplicables establecidos por la ley y por las Directrices Federales para Dictar Sentencia sean considerados, tomando en cuenta un número determinado de variables.
Seminole Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON LEE DEATHERAGE, age 40, of Seminole, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than life imprisonment, up to a $10,000,000.00 fine or both.
The Indictment alleged that beginning in or about April 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 2015, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshal Service and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Rockport Man Convicted for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Calvin Nesmith, 28, of Rockport, has entered a guilty plea to sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson.
In June 2015, Nesmith was communicating with a person he believed was the mother of two minor female children. In reality, he was actually talking to an undercover Homeland Security Investigations (HSI) agent from Laredo. During the course of the communications, Nesmith made arrangements to meet and engage in sexual activity with the mother’s minor female children.
Nesmith also sent sexually explicit photographs depicting images of child pornography through text messages and emails to the undercover agent. The images were taken of a 14-year-old female while she was sleeping.
He was apprehended as he arrived at the designated meeting place. At the time of his arrest, Nesmith had several electronic devices and condoms with him. A forensic search of those electronic devices led to the discovery of an electronic image depicting Nesmith involved in sexually explicit conduct with a female minor.
Senior U.S. District Judge Janis Graham Jack accepted the guilty plea today and set sentencing for Jan. 21, 2016, at which time Nesmith faces a minimum of 15 and up to 30 years in federal prison. Upon completion of any prison term imposed, Nesmith also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Nesmith was arrested on the federal charges in September 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Roaming Shores man faces additional drug and firearms chargesRead the Press Release
A federal grand jury sitting returned a six-count superseding indictment charging a Roaming Shores man with distribution of heroin, distribution of crack cocaine, possessing a firearm during a drug trafficking crime, and being a felon in possession of firearms and ammunition, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
James E. Brooks, 40, remains detained in federal custody.
Brooks knowingly and intentionally distributed crack cocaine on August 12, 2015, on August 13, 2015, and on August 17, 2015. He also distributed heroin on August 17, 2015, according to the indictment.
Brooks possessed a firearm during the August 17, 2015, drug trafficking crime. The indictment also alleges that on August 20, 2015, Brooks possessed a Walther, model P22, .22 Caliber Pistol; a Winchester, model 50, 12 gauge shotgun; and a Winchester, model 120, 12 gauge shotgun. Brooks was forbidden from possessing firearms because of previous felony convictions including drug abuse, burglary, aggravated robbery with a firearm specification, felonious assault, escape, and felonious assault with a firearm specification, all in the Trumbull County Court of Common Pleas.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ashtabula County Sheriff’s Office, the Warren Police Department, the Ohio State Highway Patrol, Ohio BCI&I and the TAG Law Enforcement Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Richland County Man Sentenced to 30 years Following TrialRead the Press Release
Contact Person: William Witherspoon (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Harold Hall, Jr., age 34, of Richland County, South Carolina was sentenced today in federal court in Columbia, South Carolina, for being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1), possession with the intent to distribute marijuana, a violation of 21 U.S.C. § 841(a)(1), and possession of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Joseph F. Anderson, Jr. of Columbia sentenced Hall to a total of 360 months (30 years) on all three counts. In addition, Hall must serve 3 years of supervised release following his incarceration.
Evidence presented at the trial established that on June 25, 2012, the Richland County Sheriff’s Department with the use of a confidential informant made a purchase of marijuana from the home where Hall lived. Following this purchase, the police obtained a search warrant for the home. During the execution of the warrant, the police found more than 10 pounds of marijuana, 3 firearms and over $1,000.00. The police also found documentation that tied Hall to the residence. Hall and a relative were arrested a short distance from the home. During the trial, Hall’s relative testified that all of the marijuana, firearms and cash belonged to him and that Hall had nothing to do with the marijuana and firearms. The jury found the testimony of the relative incredible and convicted Hall on all counts. The case was investigated by agents of the Federal Bureau of Investigations and Richland County Sheriff's Department Narcotics Unit. Assistant United States Attorney William K. Witherspoon and Benjamin Garner of the Columbia office prosecuted the case. #####Perry County Resident Sentenced on Methamphetamine OffenseRead the Press Release
On November 4, 2015, Herman E. Sims, Jr., 35, of Pinckneyville, was sentenced in United States District Court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Sims, who had previously pled guilty to one count of conspiracy to manufacture methamphetamine, was sentenced to 84 months in federal prison, to be followed by 3 years’ supervised release, and fined $600. Evidence at the plea and sentencing hearings established that Sims was involved with others in the manufacture of methamphetamine. Sims stole anhydrous ammonia and manufactured methamphetamine with others. At sentencing, the district judge found that Sims’s relevant conduct included 360 grams of methamphetamine. The offense occurred between 2012 and December 2014, in Perry, Jackson, and Randolph Franklin Counties. Co-defendant Jamie Trzinski was previously sentenced to 57 months in prison for her role in the methamphetamine conspiracy. Three other co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Perry County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, Randolph County Sheriff’s Office, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Palm Coast Man Sentenced to Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Stephen Paul Cotton (43, Palm Coast) to 23 months in federal prison for failing to register as sex offender after traveling from Florida to North Carolina. He was also ordered to register as a sex offender and to serve a five-year term of supervised release. Cotton has been in the custody since his arrest in Suwanee, Georgia on April 11, 2015.
According to court documents, in January 1999, Cotton was convicted of committing a lewd and lascivious act on a child in Manatee County. Subsequent to his conviction, and between 2004 and 2012, he registered as a sex offender with Florida authorities as required. However, between July 2, 2012, and April 11, 2015, Cotton traveled from Florida to Virginia, North Carolina, Tennessee, and Georgia, but failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service, the Suwanee (Georgia) Police Department, the Flagler County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Woman Sentenced for Conspiracy to Distribute OxycodoneRead the Press Release
United States Attorney Deborah R. Gilg announced that Christina Hingorani, 30, of Omaha, Nebraska, was sentenced on November 10, 2015, by United States District Senior Judge Joseph F. Bataillon. This case involved a conspiracy to distribute and possess with intent to distribute oxycodone in Omaha. The defendant was sentenced to time served, a three year term of supervised release, and a $100 special assessment.
This case was investigated by the Drug Enforcement Administration.
Ohio-Based Tax Return Preparation Business Executive Pleads Guilty to Obstructing the IRSRead the Press Release
WASHINGTON - A Liberty Township, Ohio, resident pleaded guilty to one count of obstructing and impeding the Internal Revenue Code, announced Acting Deputy Assistant Attorney General Bruce M. Salad of the Justice Department’s Tax Division.
According to court documents, Kyle Wade, 44, was the former vice-president of franchising for Instant Tax Service (ITS), a tax preparation business that claimed to have over 1,100 franchise locations throughout the United States in 2009. Wade formerly owned multiple ITS franchises.
From Jan. 1, 2004 through Nov. 1, 2012, Wade and another individual executed a scheme to obstruct the Internal Revenue Service (IRS), wherein numerous ITS franchises filed false federal income tax returns without the permission of their taxpayer clients and without receiving a valid W-2 form from each client. The false returns included false and inflated sole proprietorship Schedule C income in an attempt to increase the Earned Income Tax Credit refund. Wade and another individual also created and presented false documents with the IRS, such as phony W-2 forms that were created by ITS employees using tax preparation software and various other false IRS forms containing forged signatures.
At his sentencing on a date to be determined later, Wade faces a statutory maximum sentence of three years in prison and a fine of $250,000.
The Tax Division commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, and Assistant U.S. Attorney Jessica Knight of the Southern District of Ohio, who are prosecuting the case.
Ohio man sentenced for selling bath salts and synthetic drugsRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Skruck, 59, of Youngstown, Ohio, was sentenced today to 41 months in prison for his role in distributing bath salts and synthetic drugs through local retail stores, United States Attorney William J. Ihlenfeld, II, announced today.
Skruck was a manager of the Hot Stuff Cool Things retail shops in Clarksburg and Buckhannon. He participated in a scheme to distribute bath salts and synthetic drugs. He also structured financial transactions to avoid reporting more than $200,000 to the Internal Revenue Service.
Skruck pled guilty in December 2014 to one count of “Drug Conspiracy” and one count of “Structuring Monetary Transactions to Evade the Reporting Requirement.” He was sentenced today to 41 months in prison on each count. The sentences will run concurrent with each other for a total of 41 months in prison. As part of the sentence imposed today, Skruck will also forfeit multiple parcels of real property, U.S. currency and bank accounts, vehicles, heavy equipment, a trailer, and a professional embroidery machine.
Assistant U.S. Attorneys Robert McWilliams and Michael Stein along with Special Assistant U.S. Attorney John Parr and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Internal Revenue Service Criminal Investigations, the Three Rivers Drug and Violent Crime Task Force, and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
O.C. Man Sentenced to Two Years in Federal Prison for Selling Non-Existent In-N-Out Burger Franchises in the Middle EastRead the Press Release
SANTA ANA, California – A Newport Beach man has been sentenced to 24 months in federal prison for running a multi-million dollar fraud scheme that bilked investors with false promises of In-N-Out Burger franchises in the Middle East.
Craig Stevens, 56, was sentenced Monday afternoon by United States District Judge Andrew J. Guilford.
Stevens pleaded guilty in June to one count of wire fraud, admitting that he fraudulently solicited more than $4.27 million from investors who were told that each franchise cost approximately $150,000, plus another $250,000 per year for royalties.
When Stevens pleaded guilty, he admitted sending an email to a victim in Lebanon that discussed a purported licensing agreement.
The scheme, which ran throughout 2014, fraudulently solicited investments when Stevens “claimed to have the exclusive rights to [In-N-Out] franchises in the Middle East,” according to court documents, which explained that the Irvine-based company is a private held corporation that “does not have any business partnerships or franchise agreements with third parties.”
The case against Stevens was investigated by the Federal Bureau of Investigation.
Norwegian Shipping Company and Engineering Officers Convicted of Environmental Crimes and Obstruction of JusticeRead the Press Release
A federal jury in Mobile, Alabama, has convicted Det Stavangerske Dampskibsselskab AS (DSD Shipping) and three employees with obstructing justice, violating the Act to Prevent Pollution from Ships (APPS), witness tampering and conspiracy, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Kenyen R. Brown of the Southern District of Alabama. DSD Shipping is a Norwegian-based shipping company that operates crude oil tankers, including the M/T Stavanger Blossom. Also convicted at trial were three senior engineering officers, Bo Gao, Xiaobing Chen and Xin Zhong, employed by DSD Shipping to work aboard the vessel. A fourth employee, Daniel Paul Dancu, pleaded guilty in October.
The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment, known as an oily-water separator, to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
“We will not tolerate the continued use of the world’s oceans as a dumping ground for contaminated waste,” said Assistant Attorney General Cruden. “These defendants deliberately and egregiously violated the law and fouled the marine environment by dumping waste, then tried to cover it up with false records. We hope this conviction sends a strong message to shippers worldwide that this activity must end, and we will vigorously prosecute those who continue this criminal behavior.”
“I am pleased with the record of this office in pursuing environmental crimes,” said U.S. Attorney Brown. “We will continue to prosecute corporations and individuals to protect our resources here along the Gulf Coast as well as around the World. We need to ensure that all foreign vessels and corporations comply with U.S. Coast Guard Examinations to ensure these resources are protected.”
“The oceans cannot be used as dumping grounds,” said Acting Special Agent in Charge Andy Castro of the Environmental Protection Agency’s (EPA) criminal enforcement program in Alabama. “The defendants in this case falsified entries in their vessel’s log books to hide the true nature of its open water discharges. Today’s guilty verdict by a jury should serve as a warning to would-be violators that the American people will not allow the flagrant violation of U.S. laws.”
“This case shows the importance of interagency cooperation and how working together can keep our nation's waterways cleaner and safer for all,” said U.S. Coast Guard Admiral David R. Callahan. “I commend the U.S. Attorney's Office, the Department of Justice, as well as Customs and Border Protection for their diligence in this case. This case is a prime example of the Act to Prevent Pollution from Ships working as it was intended. The Coast Guard is committed to working with our partners to enforce regulations and hold any violators accountable.”
“CGIS is dedicated to holding those individuals and Corporations accountable who violate United States and International law,” said Resident Agent in Charge John Allen with the U.S. Coast Guard Investigative Service (CGIS). “CGIS will vigorously prosecute anyone who presents false documents to the U.S. Coast Guard or obstructs vessel examinations performed by the U.S. Coast Guard.”
The evidence presented during the two-week trial demonstrated that in January 2010, DSD Shipping knew that the oily-water separator aboard the M/T Stavanger Blossom was inoperable. In an internal corporate memo, DSD Shipping noted that the device could not properly filter oil-contaminated waste water and stated that individuals “could get caught for polluting” if the problem was not addressed. Rather than repair or replace the oily-water separator, however, DSD Shipping used various methods to bypass the device and force the discharge of oily-wastes into the ocean. During the last months of the vessel’s operation prior to its arrival in the Port of Mobile, the M/T Stavanger Blossom discharged approximately 20,000 gallons of oil-contaminated waste water.
The evidence at trial also established that DSD Shipping employees intentionally discharged fuel oil sludge directly into the ocean. Specifically, crewmembers cleaned the vessel’s fuel oil sludge tank, removed approximately 264 gallons of sludge and placed the waste oil into plastic garbage bags. After hiding the sludge bags aboard the ship from port authorities in Mexico, defendants Chen and Zhong ordered crewmembers to move as many as 100 sludge bags to the deck of the vessel. There, Zhong threw the sludge bags overboard directly into the ocean.
DSD Shipping, Dancu, Gao, Chen and Zhong, all attempted to hide these discharges from the U.S. Coast Guard by making false and fictitious entries in the vessel’s oil record book and garbage record book. Further, after arriving in Mobile, Chen and Zhong lied to the U.S. Coast Guard about the discharge of sludge and ordered lower ranking crewmembers to do the same.
At the conclusion of trial, DSD Shipping was convicted of one count of conspiracy, three counts of violating APPS, three counts of obstruction of justice and one count of witness tampering. Defendant Gao was convicted of one count of conspiracy and two counts of obstruction of justice. Defendant Chen was convicted of one count of violating APPS, three counts of obstruction of justice and one count of witness tampering. Finally, Zhong was convicted of two counts of violating APPS, two counts of obstruction of justice and one count of witness tampering. DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties. Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges
This case was investigated by the U.S. Coast Guard Sector Mobile, U.S. Coast Guard District Eight, CGIS and the EPA, Criminal Investigations Division. Assistant U.S. Attorney Michael D. Anderson, with the U.S. Attorney’s Office for the Southern District of Alabama, and the Department of Justice’s Environmental Crimes Section Trial Attorney Shane N. Waller prosecuted the case.
New Mexico Man Sentenced for Scheme to Send Stolen Social Security Benefits to NigeriaRead the Press Release
BOSTON – A New Mexico man was sentenced today in U.S. District Court in Boston in connection with a scheme in which Social Security benefits were obtained using stolen identities and then wired to Nigeria.
Jasper Denetclaw, 44, was sentenced by U.S. District Court Judge Rya W. Zobel to four months in prison, two years of supervised release, and was ordered to pay $104,625 in restitution to the Social Security Administration. In August 2015, Denetclaw pleaded guilty to theft of public money.
In early 2014, Denetclaw met a woman on Facebook who offered him the opportunity to earn some money. The woman put him in touch with “Simon,” who was allegedly located in Nigeria. Following instructions from “Simon,” Denetclaw opened two bank accounts and provided “Simon” with the information for those accounts, and for a third account he had previously opened. After funds had been placed in the accounts, Denetclaw then withdrew or wired a portion of the $205,879 that had been deposited, as instructed by “Simon.”
The money in the accounts was from direct deposits of Social Security benefits, obtained illegally by filing applications for retirement benefits in the names of ten real people, including some Massachusetts residents. Each victim had reached full retirement age, and, therefore, the fraudulent applications resulted in lump-sum benefits payments of approximately $20,000 each. The government recovered about $100,000 when the fraud was detected; however, Denetclaw had succeeded in withdrawing the rest of the money, wiring over $67,000 to individuals in Nigeria, and keeping some of the money for himself. Denetclaw stated that, in the beginning, he thought it was a regular business, but, admitted that after he checked the accounts and realized the money was from the Social Security Administration, he knew it was wrong.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistance was provided by the Phoenix, Ariz. and El Paso, Texas field offices of the Social Security Administration, Office of Inspector General, Office of Investigations and the Redding, Calif. and Gallup, N.M. field offices of the Federal Bureau of Investigation. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
New Jersey Child Therapist Charged with Sexual Exploitation, Enticement, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that ELLIOT HALBERSTAM was arrested today and charged in a criminal complaint with three counts stemming from his sexual exploitation and enticement of a minor and his receipt of child pornography.
Manhattan U.S. Attorney Preet Bharara said: “Elliot Halberstam is charged with violating the trust of his former patient, a 16-year old boy, in the worst way imaginable - he allegedly coerced and tricked the victim into engaging in sexually explicit conduct, and captured it on video and in photographs. Together with our partners at the FBI, we are dedicated to ensuring that those who sexually exploit children are held to account.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, Halberstam violated the trust of a minor who was a former patient of his in counseling, by coercing the victim to engage in sexual activity with him and film it. The FBI will continue to investigate and bring to justice those who sexually exploit our children.”
According to the Complaint[1]:
Beginning in March 2015, HALBERSTAM, a child therapist, coerced and enticed a 16-year-old boy who was a former patient of his (“Victim-1”) to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and received images and videos constituting child pornography from Victim-1. To do so, HALBERSTAM groomed Victim-1 through numerous email and text messages, including by posing as another individual to entice Victim-1 to produce and send child pornography to HALBERSTAM and to allow HALBERSTAM to photograph Victim-1.
* * *
HALBERSTAM, 38, of Bergenfield, New Jersey, is charged with one count of coercing and enticing a minor to engage in illegal sexual activity, which carries a maximum penalty of life in prison; one count of sexual exploitation of a child, which carries a maximum sentence of 30 years in prison; and one count of receipt of child pornography, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
There may be more victims of this alleged conduct. Any individuals who believe they have information concerning ELLIOT HALBERSTAM that may be relevant to the investigation should contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara praised the efforts of the FBI in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Andrew D. Beaty is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Navajo Man Pleads Guilty to Failing to Update His Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Darrick Negale, 30, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., pleaded guilty today in federal court to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Negale was charged in a criminal complaint on Oct. 26, 2012, with violating SORNA by failing to update his sex offender registration. On Sept. 10, 2013, Negale was indicted on that same charge. According to the indictment, Negale failed to update his registration between Sept. 25, 2012 and Oct. 10, 2012, in Bernalillo County, N.M.
Negale was convicted of sexual abuse of a minor in Indian Country in June 2007. On May 6, 2010, Negale registered as a sex offender in Bernalillo County and agreed to notify the sheriff of the county to which he moved if he relocated outside of the county. Negale last registered as a sex offender on Oct. 3, 2011, in Bernalillo County and subsequently failed to notify the U.S. Probation Office of his whereabouts when he left a residential reentry program in Albuquerque without permission on Sept. 27, 2012.
During today’s hearing, Negale pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Negale faces a statutory maximum penalty of ten years in federal prison followed by a minimum of five years of supervised release. Negale will also be required to register as a sex offender following his term of incarceration. Negale remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Montgomery County Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
PHILADELPHIA - Terence Wyatt, 58, of King of Prussia, PA, was sentenced yesterday to 10 years in prison for possession of child pornography. Wyatt pleaded guilty on April 22, 2015, to possessing in excess of 600 images and videos from the Internet that depicted children being sexually abused by adults as well as videos that depicted sadistic and masochistic images of prepubescent children.
This investigation began as part of an ongoing undercover Internet investigation of child exploitation violations relating to the use of peer to peer (“P2P”) file sharing networks being conducted by the Abington Township Police Department. The purpose of the investigation was to identify those individuals possessing and sharing child pornography using P2P networks. An Abington Police Department detective located a computer on a P2P Network sharing files of interest in child pornographic investigations. The user of this file-sharing program was Wyatt. The detective was able to download images and movies from Wyatt’s files that depicted children under the age of 18 years old engaged in sexually explicit conduct including sexual abuse by adults. Following execution of a search warrant, detectives arrested Wyatt on May 16, 2013.
The images were then reviewed by a special agent with Homeland Security Investigations (HSI) who verified that over 2005 images contained child pornography, approximately 95% of which were of prepubescent child pornography. When HSI agents reviewed Wyatt’s electronic media they determined that it contained over 150,000 images, the majority of which were child erotica and child pornography.
In addition to the 10 year prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, $1,000 restitution, and a $100 special assessment.
The case was investigated by the Detective Division of the Abington Township Police Department, the Montgomery County District Attorney’s Office, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jeffery W. Whitt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division=s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mississippi Man Pleads Guilty to Assaulting a Choctaw Tribal Police OfficerRead the Press Release
Jackson, Miss. – Jason Gooden, 29, of Philadelphia, MS, pled guilty on November 9, 2015, before U.S. District Judge Daniel P. Jordan III, to one count of Assaulting a Choctaw Tribal Police Officer, U.S. Attorney Gregory K. Davis announced today.
On April 4, 2015, the defendant, a non-Tribal member, was asked to leave the Silver Star Casino because he appeared to be intoxicated. The defendant did not comply with the security guard’s request and the Choctaw Police Department was called for assistance. When approached by the police officers, the defendant grabbed one of the officers and threw him to the ground. The defendant was arrested and charged with assaulting a law enforcement officer. This case was prosecuted in federal court because Tribal police officers are considered to be federal law enforcement officers.
Gooden will be sentenced on January 28, 2016, by U.S. District Judge Daniel P. Jordan III. He faces a maximum sentence of eight years in prison and a $250,000.00 fine.
Milton Man Pleads Guilty to Stealing from Social SecurityRead the Press Release
BOSTON – A Milton man pleaded guilty today in U.S. District Court in Boston to stealing more than $70,000 in Social Security benefits.
Brian Sandiford, 58, pleaded guilty to stealing public money. Sandiford was charged in an Information in August 2015. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 3, 2016.
Sandiford’s father died in 2010, but his monthly Social Security benefits continued to be directly deposited into a bank account held jointly by Sandiford and his father. Although he was not entitled to this money, Sandiford routinely transferred the Social Security money into his own bank account and then spent it. In total, from 2010 to 2014, Sandiford took $70,811 in Social Security funds to which he was not entitled.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office, in partnership with the Social Security Administration, to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money:
In June 2015, Patricia Kwiatkowski, of Upton, was sentenced for stealing $128,101 from Social Security from 2006 to 2014.
In April 2015, Graeme Griffith, of Andover, was sentenced for stealing $149,285 from Social Security from 2003 to 2014.
Also in April 2015, Frances Kenney Moseley, of Boston, was sentenced for stealing $222,172 from Social Security from 2003 to 2010.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of Social Security Administration Office, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The Sandiford case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Methamphetamine Supplier Sentenced to Maximum Statutory Penalty of 20 Years in Federal PrisonRead the Press Release
FORT WORTH, Texas — Corey Duane Bowles, 43, of Fort Worth, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 240 months (20 years) in federal prison, the statutory maximum penalty, for possessing methamphetamine with the intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.
Bowles pleaded guilty in July 2015 to an indictment charging the offense.
According to documents filed in the case, Bowles admitted that on March 6, 2015, he knowingly and intentionally possessed, with the intent to distribute, methamphetamine when he sold methamphetamine in an undercover operation in Fort Worth.
The Drug Enforcement Administration, the Weatherford/Parker County Special Crimes Unit, and the Weatherford Police Department investigated the case. Assistant U.S. Attorney Chris Wolfe was in charge of the prosecution.
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Mercer County, New Jersey, Man Charged with Production and Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was arrested today and charged with coercing a minor to engage in sexually explicit conduct and with receiving images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Curtis E. Thompson, 30, of Lawrenceville, New Jersey, is charged by complaint with one count of the production of child pornography and one count of receiving child pornography. He is scheduled to appear later today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
In April 2015, Thompson used a Facebook account in the name of Frank Lucas to become “friends” with the victim, a minor. On June 11, 2015, the victim told Thompson that the victim was under the age of 18. Thompson used the Facebook account to solicit and persuade the victim to record videos of the victim and others engaging in sexually explicit conduct, and to send those videos to Thompson. Thompson also coerced the victim to engage in sexually explicit conduct and allow Thompson to watch in real time through a video streaming service. Thompson requested additional videos of the victim and others engaged in sexually explicit conduct in exchange for payments from Thompson wired via MoneyGram to the victim and others. Thompson sent the payments on various dates in June 2015.
The charge of production of child pornography carries a maximum potential penalty of 30 years in prison, a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The charge of receiving child pornography carries a mandatory minimum penalty of five years and a maximum of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
Anyone with information which may be relevant to this investigation is encouraged to contact the FBI online at: [email protected]
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Member of Colombian Terrorist Organization Sentenced to 27 Years in Prison for Hostage-Taking of Three U.S. CitizensRead the Press Release
WASHINGTON – Diego Alfonso Navarrete Beltran, 43, a member of the Fuerzas Armadas Revolucionarias Colombianas (FARC) terrorist organization, was sentenced today in the U.S. District Court for the District of Columbia to 27 years in prison on hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The sentencing was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, and Special Agent in Charge George L. Piro of the FBI’s Miami Division.
Navarrete Beltran was extradited from Colombia to the United States in November 2014 to face charges in a superseding indictment that was returned in February 2011. He pleaded guilty on Aug. 26, 2015, to three counts of hostage-taking. He was sentenced by Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Navarrete Beltran is among three FARC leaders who have been convicted for their roles in the hostage-taking.
“Diego Alfonso Navarrete Beltran participated in the hostage-taking and captivity of three Americans by the FARC, a Colombian terrorist organization,” said Assistant Attorney General Carlin. “This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world, no matter how long it takes.”
“Diego Alfonso Navarrete Beltran and other FARC guerillas ruthlessly subjected their American hostages to constant threats of violence while holding them in one camp after another in the remote jungles of Colombia,” said U.S. Attorney Phillips. “For over 16 months, this defendant was among the armed guards who prevented their escape. Today’s 27-year sentence provides justice for the three victims who were subjected to repeated barbaric abuse by the defendant and others while part of this terrorist organization.”
“Diego Alfonso Navarrete Beltran now faces a long time behind bars for his participation in the hostage-taking of three U.S. Citizens in Colombia,” said Special Agent in Charge Piro. “To all hostage-takers the message is clear: target our citizens with violence anywhere in the world and we will hold you accountable for your actions.”
According to a statement of offense submitted as part of the plea hearing, the FARC is an armed, violent organization in Colombia, formed in 1964 as the armed wing of the Colombian Communist Party. It has evolved into a major armed force financed by drug trafficking, hostage-taking and extortion. International human rights organizations have repeatedly accused the FARC of serious crimes, including kidnapping, murder, use of land mines, threats, the recruitment of minors, forced displacement and hostage-taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
As described in the statement of offense, Navarrete Beltran was a member of the First Front in the FARC’s Eastern Bloc.
In his plea, he admitted taking part in the hostage-taking of three U.S. citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. These three individuals, along with Thomas Janis, a U.S. citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC after their single engine aircraft made a crash landing near Florencia, Colombia. Janis and Cruz were murdered at the crash site by members of the FARC.
For the next five and a half years, according to the statement of offense, Gonsalves, Howes, Stansell and many others were held prisoners by the FARC and used to bargain with the Colombian government. Along with about a dozen Colombian hostages, they were forced to march from one site to another to prevent their rescue. They were threatened, chained and forced to participate in proof-of-life videos. In early October 2006, the hostages were delivered to the FARC’s Eastern Bloc’s First Front and were held prisoners by the First Front of the FARC.
From October 2006 through mid-June 2008, according to the statement of offense, Navarrete Beltran and other guerillas kept the hostages under the control of the FARC’s First Front. In particular, Navarrete Beltran often served as an armed guard of the American hostages.
In July 2008, the Colombian military conducted an operation which resulted in the rescue of the hostages. All told, members of the FARC held the Americans hostage for 1,967 days.
This investigation is being led by the FBI’s Miami Field Division. The prosecution is being handled by Assistant U.S. Attorneys Kenneth Kohl and Fernando Campoamor-Sanchez of the District of Columbia, and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Substantial assistance in the case was provided by the Justice Department’s Office of International Affairs, the department’s Judicial Attachés in Colombia, the FBI’s Office of the Legal Attaché in Colombia and the FBI’s Washington, D.C., Field Office.
Member of Colombian Terrorist Organization Sentenced to 27 Years in Prison for Hostage-Taking of U.S. CitizensRead the Press Release
Three Hostages Were Held in Colombia for More Than Five Years
Diego Alfonso Navarrete Beltran, 43, a member of the Fuerzas Armadas Revolucionarias Colombianas (FARC) terrorist organization, was sentenced today in the U.S. District Court for the District of Columbia to 27 years in prison on hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The sentencing was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia and Special Agent in Charge George L. Piro of the FBI’s Miami Division.
Navarrete Beltran was extradited from Colombia to the United States in November 2014 to face charges in a superseding indictment that was returned in February 2011. He pleaded guilty on Aug. 26, 2015, to three counts of hostage-taking. He was sentenced by Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Navarrete Beltran is among three FARC leaders who have been convicted for their roles in the hostage-taking.
“Diego Alfonso Navarrete Beltran participated in the hostage taking and captivity of three Americans by the FARC, a Colombian terrorist organization,” said Assistant Attorney General Carlin. “This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world, no matter how long it takes.”
“Diego Alfonso Navarrete Beltran and other FARC guerillas ruthlessly subjected their American hostages to constant threats of violence while holding them in one camp after another in the remote jungles of Colombia,” said U.S. Attorney Phillips. “For over 16 months, this defendant was among the armed guards who prevented their escape. Today’s 27-year sentence provides justice for the three victims who were subjected to repeated barbaric abuse by the defendant and others while part of this terrorist organization.”
“Diego Alfonso Navarrete Beltran now faces a long time behind bars for his participation in the hostage-taking of three U.S. Citizens in Colombia,” said Special Agent in Charge Piro. “To all hostage-takers the message is clear: target our citizens with violence anywhere in the world and we will hold you accountable for your actions.”
According to a statement of offense submitted as part of the plea hearing, the FARC is an armed, violent organization in Colombia, formed in 1964 as the armed wing of the Colombian Communist Party. It has evolved into a major armed force financed by drug trafficking, hostage-taking and extortion. International human rights organizations have repeatedly accused the FARC of serious crimes, including kidnapping, murder, use of land mines, threats, the recruitment of minors, forced displacement and hostage-taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
As described in the statement of offense, Navarrete Beltran was a member of the First Front in the FARC’s Eastern Bloc.
In his plea, he admitted taking part in the hostage-taking of three U.S. citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. These three individuals, along with Thomas Janis, a U.S. citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC after their single engine aircraft made a crash landing near Florencia, Colombia. Janis and Cruz were murdered at the crash site by members of the FARC.
For the next five and a half years, according to the statement of offense, Gonsalves, Howes, Stansell and many others were held prisoners by the FARC and used to bargain with the Colombian government. Along with about a dozen Colombian hostages, they were forced to march from one site to another to prevent their rescue. They were threatened, chained and forced to participate in proof-of-life videos. In early October 2006, the hostages were delivered to the FARC’s Eastern Bloc’s First Front and were held prisoners by the First Front of the FARC.
From October 2006 through mid-June 2008, according to the statement of offense, Navarrete Beltran and other guerillas kept the hostages under the control of the FARC’s First Front. In particular, Navarrete Beltran often served as an armed guard of the American hostages.
In July 2008, the Colombian military conducted an operation which resulted in the rescue of the hostages. All told, members of the FARC held the Americans hostage for 1,967 days.
This investigation is being led by the FBI’s Miami Field Division. The prosecution is being handled by Assistant U.S. Attorneys Kenneth Kohl and Fernando Campoamor-Sanchez of the District of Columbia, and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Substantial assistance in the case was provided by the Justice Department’s Office of International Affairs, the department’s Judicial Attachés in Colombia, the FBI’s Office of the Legal Attaché in Colombia and the FBI’s Washington, D.C., Field Office.
Media AdvisoryRead the Press Release
EVANSVILLE - United States Attorney Josh Minkler will hold a press conference today, at 3:00 pm CST, in the Evansville United States Federal Courthouse, Third Floor, U.S. District Court Law Library.
Minkler will be joined by officials from the United States Secret Service, United States Postal Inspector, Indiana State Police and the Evansville Police Department to discuss the indictment of 36 defendants for a massive fraud scheme involving staged automobile crashes in the tri-state area.
Maryland Man Convicted in Scheme to Obtain More Than $7 Million of Fraudulent Tax RefundsRead the Press Release
Caused 13 False Tax Returns to be Filed in Just Four Months Claiming $7,470,065 in Refunds
A federal jury convicted Charles W. Parker Jr., 49, of College Park, Maryland, today of one count of conspiring to defraud the United States and six counts of filing false income tax returns.
The conviction was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to evidence presented during the trial, from March to June 2009, Parker recruited clients for co-conspirator Penny Jones, a tax return preparer in Idaho, who prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS. Parker collected financial information from clients and provided it to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others. Parker mailed the false tax returns to the IRS for the years 2005 to 2008, claiming large tax refunds to which the clients were not entitled.
On May 26, 2009, after Parker paid Jones to prepare a false tax return for two co-conspirators who were residents of Atlanta, Georgia, caused the IRS to issue a tax refund to the co-conspirators of $1,723,693. On June 3, 2009, Parker emailed the co-conspirators directing them to wire funds to Parker’s bank account. The next day, the co-conspirators transferred $182,370 into Parker’s account.
The tax returns filed by Parker and his co-conspirators requested fraudulent refunds totaling $7,470,065. As a result of these false returns, the IRS issued fraudulent tax refunds to Parker and his coconspirators totaling $2,007,568. In 2013, Jones was sentenced to 120 months in prison for her role in a scheme to help individuals obtain fraudulent tax refunds from the IRS.
Parker faces a statutory maximum sentence of 10 years in prison for the conspiracy, and a maximum sentence of five years in prison for each of the six counts of filing a false tax return. U.S. District Judge Roger W. Titus has scheduled sentencing for March 28, 2016 at 11:00 a.m.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein praised the Tax Division and IRS-CI for their work in the investigation. Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack and Trial Attorney Erin Pulice of the Justice Department’s Tax Division, who are prosecuting the case.
Marionville Man Sentenced to 15 Years for Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marionville, Mo., man was sentenced in federal court today for child sexual exploitation.
Darren Eugene Schaefer, 37, of Marionville, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Schaefer to a life term of supervised release following incarceration.
On June 17, 2015, Schaefer pleaded guilty to using the Internet and cell phone to attempt to entice a minor to engage in illicit sexual activity.
According to court documents, a task force officer with the Southwest Missouri Cybercrimes Task Force investigated a tip from the National Center for Missing and Exploited Children in May 2014 that Schaefer was contacting underage females on the social networking site MeetMe. Schaefer was asking underage females if they wanted to meet for sexual acts. Schaefer sent messages indicating that he was interested in sexual contact with seven underage females. After contacting the females using the instant message feature on MeetMe, Schaefer would attempt to move the conversations to cell phone text messages.
During the on-line communications between Schaefer and the underage female victims, Schaefer admitted to the victims that he was 35 years old, and stated that he preferred younger females. In one instance, one of the victims asked Schaefer why he posted his age on MeetMe as 14 years old if he was really 35. Schaefer replied that was the only way he could see underage females on this Web site and communicate with them. One victim asked him if he knew he could get in trouble for what he was doing. He replied he knew he could get in trouble but hoped he would not.
A federal search warrant was executed at Schaefer’s residence on June 17, 2014. Schaefer told officers that he talked to hundreds of girls on various social networking Web sites and that he had contacted underage girls several other times using MeetMe. Schaefer also admitted to meeting at least three 16-year-old girls for sexual intercourse over a 10-year period. He reported that he had met all three of them from social networking sites on the Internet. He met two of the girls in Nixa and one at Hood's Truck Stop on 1-44.
Officers seized two laptop computers, two external hard drives and Schaefer’s cell phone, all of which have been forfeited to the government. More than 200 images of child pornography and a total of 474 images of child erotica were located on multiple electronic media devices.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI.
Project Safe Childhood
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."
Man Pleads Guilty to Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI- Alva Nicholas, 57, pleaded guilty today in District Court on St. Thomas to one count of possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced.
According to court records, on August 21, 2015, Nicholas was arrested by agents of the Department of Homeland Security Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) at the Cyril E. King Airport on St. Thomas after his arrival on an American Airlines flight. U.S. Customs and Border Protection (CBP) inspectors screening bags arriving at the airport detected an anomaly inside a suitcase bearing Nicholas’ name and flight tag.
After further inspection, agents found 3.4 kilograms of marijuana wrapped in plastic inside Nicholas’ suitcase. The bag was repackaged and placed on the conveyor belt. Nicholas was taken into custody after he collected the suitcase from the conveyor belt. Nicholas was previously convicted of heroin smuggling and sentenced to 10 years in prison.Nicholas faces a maximum sentence of five years in prison and a fine of not more than $250,000.00. His sentencing is scheduled for March 10, 2016.
This case is the result of a joint investigation by HSI and CBP. It is being prosecuted by Assistant United States Attorney Delia L. Smith.