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6 January 2016
Four Arrested on Federal Mail Fraud Charges Related to $8 Million Embezzlement from Southland Commercial Laundry CompanyRead the Press Release
LOS ANGELES – Four men from Southern California have been arrested on charges that they embezzled more than $8 million from an industrial launderer based in Gardena that provided finishing services for Citizens of Humanity, a manufacturer of high-end designer jeans.
Luis Mariano Rodriguez, 48, of East Los Angeles, the one-time president of CM Laundry, LLC, and three associates were taken into custody yesterday morning for allegedly causing the laundry to pay fraudulent invoices that contained fictitious and inflated charges, and concealed Rodriguez’s role in the underlying transactions.
Since 2007, CM Laundry has been owned by Citizens of Humanity, LLC, a Huntington Park company that manufactures more than 1 million pairs of high-end denim jeans every year.
The other three defendants arrested yesterday by special agents with the FBI and officers with the Los Angeles Police Department are:
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Antonio Anguiano, 48, of Riverside, the owner of FI Products, which sold personal protective equipment;
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Terry Jay Mink, 62, of Rancho Palos Verdes, the owner of H&T Industrial Products, a hardware company that serviced CM Laundry; and
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Rene Exequiel Bautista, 43, of Sylmar, the owner of Valley Star Realty, which was used in the scheme under the fictitious business name “K&R Industrial Supplies.”
All four defendants made their initial appearances late yesterday afternoon in United States District Court in downtown Los Angeles. All four defendants were released on bond and were ordered to return to court for arraignments on February 1.
According to a criminal complaint filed on December 30, Rodriguez caused CM Laundry to pay more than $8 million after fraudulent invoices were submitted to the company.
“Mr. Rodriguez allegedly orchestrated a long-running scheme that took millions of dollars from his employer,” said United States Attorney Eileen M. Decker. “The scheme involved other defendants who also allegedly stole proceeds generated through fraudulently issued bills. All of these individuals must now face the criminal justice system for their criminal conduct.”
According to the affidavit in support of the criminal complaint, Anguiano, through his company, FI Products, billed CM Laundry for over $3.6 million during the period of the scheme, which allegedly ran from about May 2007 to about September 2013. During this period, FI Products transferred approximately $2.3 million to Rodriguez and his company, Genesis Electronics, Inc.
Mink, through his company, H&T Industrial Products, billed CM Laundry for over $5.5 million and transferred approximately $3.6 million to Rodriguez and Genesis.
Bautista, a real estate agent participated in this scheme through his company, K&R Industrial Supplies, which he established in 2012 at the behest of Rodriguez and was used to submit invoices from Genesis to CM Laundry. Over an 18-month period, K&R Industrial Supplies billed CM Laundry for approximately $640,000 and transferred approximately $493,000 to Rodriguez and Genesis. “Bautista admitted Rodriguez produced and submitted all of the K&R Industrial Supplies invoices that were submitted to CM Laundry and paid by Citizens,” according to the complaint affidavit. “Bautista stated [in a deposition related to a civil lawsuit] that he did not create any of the K&R Industrial Supplies invoices, did not know what any of the invoiced items were, and did not supply anything to CM Laundry.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The complaint charges Rodriguez with three counts of mail fraud. The other three defendants are charged with one count of mail fraud. If they are convicted, each of the four defendants would face a statutory maximum sentence of 20 years in federal prison for each count.
As a result of civil litigation brought by CM Laundry and Citizens of Humanity, a Los Angeles Superior Court judge in November 2015 ordered Rodriguez and several other defendants to pay a total of $9,563,786, according to the criminal complaint.
The investigation into the embezzlement scheme was conducted by the Federal Bureau of Investigation and the Los Angeles Police Department, Major Crimes Division, Criminal Investigations Section.
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Former Louisville Teacher Sentenced to 504 Months in Prison for Violating Child Exploitation Laws Including Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant met in person with three minors from the Louisville area to engage in sexual activity
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – The former Louisville teacher and assistant football coach, previously employed by a parochial high school, was sentenced today in U.S. District Court by United States District Judge David J. Hale, to 504 months in prison and a lifetime of supervised release, for violating child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
Patrick Newman, age 33, previously pleaded guilty to 16 counts of producing child pornography, one count of online enticement of a minor, one count of transporting child pornography, and one count of possessing child pornography. The charges involved 16 different victims, all boys. The ages of the children ranged from 12 to 17. Newman engaged in sexual activity with three minors from the Louisville area and recorded the sexual activity with one of the minor aged victims. According to information exchanged during online communications, the remaining victims are from Texas, Ohio, Indiana, Colorado, North Carolina, New York, Utah, Oregon, and the United Kingdom.
“This significant sentence reflects the severity of Mr. Newman’s crimes and is an appropriate punishment in light of the terrible harm he caused the multitude of vulnerable 12 to 17 year-old victims, their families, and a high school community,” stated U.S. Attorney John Kuhn. “Protecting our children will always be the highest priority of this office, and we will continue to prosecute those who exploit children as vigorously as the law allows.”
According to the Affidavit attached to a previous criminal complaint, the investigation started in early 2015, when the National Center for Missing and Exploited Children received a CyberTip from Twitter, Inc. regarding the upload of child pornography materials to VINE (a video sharing website owned by Twitter) from the same IP address in Texas, between 12-28-2014 and 12-30-2014. Law enforcement officials in Texas identified the child depicted in the images and later identified Newman as an adult who had been communicating with the child and obtaining sexually explicit images of the child.
Law enforcement officials executed a federal search warrant on Newman’s Louisville home in early June. Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS) arrested Newman that same day. During a recorded, post-Miranda interview, Newman admitted a sexual interest in boys 13-17 years of age. He also admitted to communicating with minors through social media tools/applications such as KIK, VINE, Snapchat and Topix for the past two years.
Forensic examination of Newman’s cellular telephone revealed electronic communications between him and many other individuals involving the sexual exploitation of minors. Based on representations during those communications, Newman solicited and obtained sexually explicit images from 16 boys under the age of 18. He gave specific directions to some of the children as to what he wanted them to do, record, and send to him. With one child, he specifically asked for sadistic images. Newman met at least three boys in person and one (age 15) on several occasions. Newman and the minor boy engaged in sexual activity which Newman recorded – using his phone. He told other people, via social media, about his sexual activities with the boy and transported/distributed the videos to them. He also shared other images and videos of child pornography with people via social media. According to a review of his phone, he transported/distributed child pornography to 56 people, in addition to the 16 minors. Also, a review of Newman’s “Dropbox” account, found that he possessed 87 videos depicting child pornography involving boys.
Newman has been in federal custody since his arrest on June 1, 2015.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The investigation was led by HSI Louisville Division of the Department of Homeland Security, with assistance from state, local, and federal law enforcement entities in Kentucky, Indiana and Texas.
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."
Former Finance Manager for the Salvation Army Metro Atlanta Area Command Pleads Guilty to Embezzlement of Charitable FundsRead the Press Release
ATLANTA - Gary Hilliard has pleaded guilty to embezzling more than $272,000 from the Salvation Army Metro Atlanta Area Command while serving as its finance manager.
“The Salvation Army provides a wide range of charitable programs and services to needy citizens in our community,” said U. S. Attorney John Horn. “Unfortunately, Mr. Hilliard chose to disregard his former employer’s motto of ‘Doing the Most Good’ by fraudulently diverting charitable funds to his own use without regard for the underprivileged who are in such desperate need of this help.”
“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate the trust of our community to further their personal financial gain,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Hilliard was hired as the finance manager for the Metro Atlanta Area Command in June 2008. As the finance manager, Hilliard supervised the accounts payable department and had the authority to approve vendor invoices and countersign checks to vendors. While carrying out these duties between December 2010 and December 2012, Hilliard embezzled more than $272,000.
Hilliard embezzled a significant portion of that money by creating and submitting bogus invoices and documents that purported to be from legitimate vendors and business partners of the Metro Atlanta Area Command to the accounts payable department. He submitted bogus invoices from advertising agencies who conducted fundraising campaigns on behalf of the Metro Atlanta Area Command, consultants, and other business partners. He chose vendors and businesses who submitted invoices to the Salvation Army on a routine basis because it was unlikely that these invoices or payments would be questioned, and because Hilliard was directly involved in the reconciliation of some of these accounts. He approved or caused these bogus invoices to be approved, which led to checks being generated from the Metro Atlanta Area Command’s operating account. Hilliard countersigned these checks in his role as finance manager, obtained or forged the appropriate authorized signature, then deposited them into bank accounts he controlled.
Initially, Hilliard deposited the checks into his personal checking and savings accounts. Beginning in June 2011, Hilliard opened bank accounts in some of the vendors’ names and deposited the fraudulently obtained checks. To accomplish this, Hilliard submitted three separate false sworn applications to Cobb County, Georgia, to register businesses in the names of the vendors.
On each of these applications, Hilliard falsely stated that he was conducting business in Cobb County in the name of the vendor, provided information on the vendor’s line of business, and stated that he was the sole person composing the business. He then presented each business certificate issued by Cobb County to the bank to open a business bank account in the vendor’s name, and deposited checks made out to the vendor into that account. Hilliard’s scheme unraveled in December 2012, when his bank questioned a discrepancy between the name of the payee on a Metro Atlanta Area Command check and the depository account and decided to contact the Metro Atlanta Area Command.
Sentencing for Gary Hilliard, 47, of Mableton, Georgia, is scheduled for March 31, 2016, at 9:00 a.m. before United States District Judge Leigh Martin May.
This case is being investigated by the United States Secret Service. The Salvation Army Metro Atlanta Area Command fully cooperated with the investigation.
Assistant United States Attorney Sally B. Molloy 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Chief of Mount Pleasant Police Department Sentenced in White Plains Federal Court for Possession of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BRIAN FANELLI, the former Chief of the Mount Pleasant, New York, Police Department, was sentenced to 18 months in prison for possession of child pornography. Fanelli pled guilty in July 2015 to one count of possession of child pornography before United States District Judge Kenneth M. Karas, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Brian Fanelli, a former police chief who swore to protect and serve, instead helped fuel a market that victimizes and exploits some of the most vulnerable in our community. As today’s sentencing demonstrates, we will be vigilant in investigating and prosecuting those who sexually exploit children.”
According to materials submitted in connection with today’s sentencing:
From at least as early as October 2013, through January 2014, FANELLI used a Peer-to-Peer File Sharing Program (“P2P Network”) to download more than 120 files containing images and videos believed to be child pornography, many of which contained depictions of graphic sexual abuse of young, pre-pubescent victims. During the course of FANELLI’s criminal conduct, in addition to serving as police chief, FANELLI taught classes to children about sexual abuse awareness. Certain of the files downloaded by FANELLI were made available to other P2P Network users through FANELLI’s computer’s shared folder on the P2P Network program. On three occasions, agents with the Department of Homeland Security, Homeland Security Investigations (“HSI”), acting in an undercover capacity, used the P2P Network to download from FANELLI’s computer files containing images and videos believed to contain child pornography.
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In addition to a prison term, Judge Karas sentenced FANELLI, 56, of Mahopac, New York, to five years of supervised release. He was ordered to forfeit his computer and hard drives, which were used to commit the offense, to the United States, and to pay a $100 special assessment fee.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. Investigators staff this hotline around the clock. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The prosecution is being overseen by the Office’s White Plains Division and the Public Corruption Unit. Assistant United States Attorneys Anden F. Chow and Andrew D. Goldstein are in charge of the prosecution.
Florida Woman Sentenced for Aggravated Identity Theft and Wire FraudRead the Press Release
BOISE - Yinet Quintana Isalgue, 28, of Homestead, Florida, was sentenced today in United States District Court to 33 months in prison followed by three years of supervised release for wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Quintana Isalgue to pay $97,496 in restitution and to complete 100 hours of community service. Quintana Isalgue pleaded guilty to the charges on July 21, 2015.
According to the plea agreement, Quintana Isalgue traveled from Florida to Idaho, to commit credit card fraud. On January 9, 2015, law enforcement officers in Boise and Meridian, Idaho, received multiple reports from loss prevention officers at different retail stores identifying Quintana Isalgue through witness and surveillance evidence as attempting credit card fraud.
The next day, Quintana Isalgue was contacted by law enforcement officers when they executed a search warrant on the hotel room where she was staying. Inside the room in Quintana Isalgue’s purse and wallet, officers found 17 counterfeit credit cards, two counterfeit driver’s licenses, and 35 gift cards. The counterfeit credit cards were embossed with real account numbers and a fake name. The two counterfeit driver’s licenses had names matching those on the credit cards, but using Quintana Isalgue’s picture and actual birthdate. Some of the gift cards found in her purse were identified as the gift cards Quintana Isalgue fraudulently purchased earlier in the day.
Based upon video surveillance, loyalty card records, GPS, and credit card records, law enforcement officers discovered that Quintana Isalgue made similar fraudulent purchases in Oregon and Washington. She admitted $97,496.11 in actual fraudulent purchases, and an additional $19,288.24 in attempted purchases, for a total of $116,784.35. The fraudulent purchases and attempts occurred between November 28, 2014, and January 9, 2015. She also admitted that she knowingly and fraudulently used the credit card number of a real person.
The case was investigated by the United States Secret Service, Boise Police Department, and Meridian Police Department.
Florida Man Who Sexually Exploited Escondido Middle Schoolers Sentenced to 27 Years in PrisonRead the Press Release
Assistant U.S. Attorneys Charlotte Kaiser (619) 546-7282 and David Leshner (619) 546-7921
NEWS RELEASE SUMMARY – January 7, 2015
SAN DIEGO – Tony McLeod of Tampa, Florida, was sentenced in federal court today to 324 months in custody and a lifetime of supervised release for multiple sexual crimes against two Escondido children.
Following an eight-day trial and less than two hours of deliberation, McLeod was convicted by a federal jury in June of 2015 of seven counts of sexual exploitation of a child, one count of attempted sexual exploitation of a child, one count of travel with intent to engage in illicit sexual conduct, and one count of transportation of a minor with intent to engage in criminal sexual activity as to a 14-year-old victim, and one count of attempted sexual exploitation of a child as to a 15-year-old victim. McLeod has been in custody since his arrest in Tampa, Florida in June 2013.
According to evidence presented to the jury, in spring 2013, McLeod struck up a friendship with the minor victims through on-line gaming. These friendships spilled over into phone calls, texts, and video chats between McLeod and the minors in which they discussed their personal lives and McLeod learned they were in middle school. Around May of 2013, McLeod’s relationships with these minors turned sexual in nature, which involved the exchange of sexually explicit photographs and videos. After one of the minor’s family members discovered the illicit relationship, McLeod traveled from his home in Tampa, Florida to Los Angeles, California, picked up that minor from his middle school in Escondido, and then transported that minor (under an alias) on a flight from California to Florida. On arrival of the flight, McLeod was arrested and taken into custody.
During the sentencing hearing before U.S. District Judge Janis L. Sammartino, the victims and their parents testified about the impact of McLeod’s actions. One of the minors, who was 14 years old when he travelled on the plane with McLeod, told Judge Sammartino, “I lost my childhood and lost my innocence.” The other victim, who had just turned 15 years old at the time of the offense, told the judge that McLeod’s actions and the aftermath “almost completely destroyed my family.” The mother of the 14-year-old victim testified that “we as a family have lost our sense of security.”
In handing down the sentence, Judge Sammartino described McLeod’s conduct as “horrendous” and imposed a lifetime of supervised release. As part of the conditions of release, McLeod will be subject to search at any time by any law enforcement or probation officer with reasonable suspicion concerning a violation, he cannot use or possess any electronic devices that would allow him to communicate with others, and he cannot be in the presence of a child under age 18 unless he receives prior approval from his probation officer and only in the presence of a supervising adult who knows of his convictions. A restitution hearing is scheduled for February 26.
“McLeod was a master manipulator who ingrained himself in these kids’ lives despite being thousands of miles away. He then exploited them for his own illicit sexual desire,” said U.S. Attorney Laura Duffy. “We will work tirelessly to bring to justice those who prey on our children and rob them of their innocence.”
“Protecting our children from sexual predators is a priority to the FBI,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI will continue to work with our law enforcement partners to protect our nation’s children from those who would seek to exploit their innocence.”
McLeod’s arrest and prosecution was the result of coordination between multiple federal and state agencies in both San Diego, California and Tampa, Florida.
DEFENDANT Case Number: 13CR2297-JLS
Tony Lee McLeod Age: 38 Tampa, Florida
SUMMARY OF CHARGES
Title 18, United States Code, Section 2221(a) and (e) – Sexual Exploitation of a Child (Counts 2-9)
Title 18, United States Code, Section 2251(a) and (e) – Attempted Sexual Exploitation of a Child (Count 13)
Title 18, United States Code, Section 2423(b) – Travel with Intent to Engage in Illicit Sexual Conduct (Count 10)
Title 18, United States Code, Section 2423(a) – Transportation of a Minor with the Purpose of Engaging in Criminal Sexual Activity (Count 11)
LEAD INVESTIGATIVE AGENCY
San Diego FBI
INVESTIGATIVE AGENCIES
Escondido Police Department
Tampa Police Department
San Diego Regional Computer Forensics Laboratory
San Diego District Attorney’s Office
San Diego Internet Crimes Against Children Task Force
San Diego Sheriff’s Department
Tampa FBI
United States Marshal’s Service Task Force (Tampa)
Tampa International Airport Police
Florida State’s Attorney’s Office
U.S. Attorney’s Office for the Middle District of Florida
Federal Authorities Seize Nearly 90,000 Bottles of a Beverage Containing the Herbal Ingredient KratomRead the Press Release
CHICAGO — United States Marshals, acting with investigators from the U.S. Food and Drug Administration, today seized nearly 90,000 bottles of a beverage containing the herbal ingredient kratom.
The beverages were manufactured for and held by Dordoniz Natural Products LLC, of South Beloit, and marketed under the brand name RelaKzpro. The product is estimated to be worth more than $400,000.
The bottles were seized after the U.S. Attorney’s Office in Chicago filed a civil forfeiture complaint on behalf of the FDA. The complaint alleges that kratom is a new dietary ingredient for which there is inadequate information to provide reasonable assurance that it does not present a significant or unreasonable risk of illness or injury.
Mitragyna speciosa, commonly known as kratom, is a botanical substance that grows naturally in Thailand, Malaysia, Indonesia and Papua New Guinea. The complaint, which was filed yesterday in U.S. District Court in Chicago, alleges that serious concerns exist about the toxicity of kratom in multiple organ systems. Consumption of kratom can lead to a number of health impacts, including respiratory depression, vomiting, nervousness, weight loss and constipation, the complaint states. Kratom has been indicated to have both narcotic and stimulant-like effects. Withdrawal symptoms may include hostility, aggression, excessive tearing, aching of muscles and jerky limb movements, according to the complaint.
The complaint states that dietary supplements containing kratom are adulterated under the Federal Food, Drug, and Cosmetic Act.
The seizure and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Melinda Plaisier, the FDA’s Associate Commissioner for Regulatory Affairs. The government is represented by Assistant U.S. Attorney Donald Lorenzen.
The public is reminded that a complaint contains only allegations and is not evidence of liability. The government has the burden of proving a civil case by a preponderance of the evidence.
Health care professionals and consumers should report any adverse events related to products containing kratom to the FDA by logging on to its website: www.fda.gov/medwatch/report.htm.
Complaint
Eight Members and Associates of Violent Mount Vernon Street Gang Known as “Boss Playa Family” or “BPF” Charged in Superseding Indictment with Racketeering OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Janet DiFiore, Westchester County District Attorney, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Superseding Indictment charging eight members and associates of a Mount Vernon-based street gang, “Boss Playa Family” or “BPF,” with participation in a racketeering conspiracy and firearms offenses, and charging certain of those BPF members and associates with murder in aid of racketeering and narcotics conspiracy.
Six of the eight defendants were charged in the original Indictment, filed in August 2015, and have previously been taken into custody. Today’s Superseding Indictment charges two additional BPF affiliates, SAMUEL CARLOS and ANTHONY JONES. Both CARLOS and JONES were arrested today in Mount Vernon, New York, and will be presented this afternoon in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Preet Bharara said: “As alleged, members and associates of the BPF street gang wreaked havoc in and around Mount Vernon, engaging in shootings, attempted shootings, larcenies, and narcotics trafficking. A scourge on Mount Vernon, the BPF gang allegedly unleashed a wave of violence in the city’s streets. The indictment unsealed today brings charges against two more associates of the BPF gang, and serves as a reminder that the perpetrators of gang violence in Mount Vernon will not escape the reach of law enforcement. I want to praise and thank the FBI, Westchester County District Attorney’s Office and Mount Vernon Police Department for their outstanding work in this investigation.”
Westchester County District Attorney Janet DiFiore stated: “As evidenced by these most recent indictments, our priority has been and will continue to be enhancing the safety, security and quality of life for all of the hard working residents of the City of Mount Vernon. We have worked continuously over the past several years to pursue members and associates of this gang and now as a result of the collaborative efforts of federal, state and local law enforcement authorities these defendants are being held accountable for the years of criminal activity they now stand accused of.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “As noted in the superseding indictment, although it may take time, the facts will come out. Persons, such as Carlos and Jones, who have allegedly engaged in a racketeering conspiracy and firearms offenses, will have to answer for their crimes. I would like to recognize the FBI special agents and task force officers who tirelessly work to ensure those who threaten the peace and safety of our communities are held accountable for their actions.”
According to the allegations in the Superseding Indictment[1] and other documents in the public record:
The BPF street gang was a criminal enterprise that operated principally in and around the City of Mount Vernon, New York, from at least 2007 up to and including 2014. BPF members and associates sought to enhance the gang’s power, protect and expand its territory, and enrich its members through a wide array of criminal activities, including murder, attempted murder, larceny, arson, and the distribution of cocaine and marijuana. BPF members and associates expressly acknowledged and celebrated their gang affiliation through various means, including by wearing clothing emblazoned with “Boss Playa Family” and “BPF,” and by creating and posting on the Internet rap videos that promoted BPF.
One of BPF’s principal objectives was to maintain and exercise control over its territory, the area of Seventh Avenue and Sandford Boulevard in Mount Vernon. To that end, BPF sought to assert its dominance over rival gangs, particularly the “Goonies,” a gang based in a neighboring area of Mount Vernon. During the time period relevant to the Superseding Indictment, BPF members and associates were responsible for numerous acts of violence targeting members of the rival Goonies gang, including multiple murders and many other shootings. In furtherance of such violence, firearms were maintained in stash locations by certain BPF members and associates for shared use by other members and associates of the gang when guns were needed to strike or retaliate against the Goonies.
The violence perpetrated by BPF turned deadly on two occasions in 2008. On or about August 13, 2008, JAMEL UPSON, one of BPF’s lead enforcers or “shooters,” aided and abetted by others known and unknown, murdered Shomari Knox, a member of the Goonies, by shooting Knox in the area of Ninth Avenue and Third Street in Mount Vernon. Several months later, on or about December 14, 2008, UPSON, again aided and abetted by others known and unknown, murdered another member of the Goonies, Cory Cabiness, by shooting him in the vicinity of the Ebony Gardens apartment complex in Mount Vernon. As alleged in the Superseding Indictment, UPSON committed these murders in order to maintain and increase his position in the BPF gang.
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Counts One and Two of the Superseding Indictment charge all eight defendants, JAMEL UPSON, SAMUEL CARLOS, ANTHONY JONES, ANTOINE LITTLE, TYRONE McCALLUM, PORTLAND RAMSEUR, GORHAM VALENTINE, and JASON WHITE, with a BPF racketeering conspiracy and firearms offenses in connection with that conspiracy. As alleged, various combinations of those defendants committed, among other acts of racketeering, at least eight shootings in furtherance of the BPF conspiracy. Counts Three and Four of the Superseding Indictment charge UPSON with murder in aid of racketeering activity and a related firearms offense in connection with the August 2008 murder of Shomari Knox, and Counts Five and Six charge UPSON with murder in aid of racketeering activity and a related firearms offense in connection with the December 2008 murder of Cory Cabiness. Finally, Count Seven of the Superseding Indictment charges UPSON, CARLOS, RAMSEUR, and WHITE with conspiring to distribute cocaine and marijuana in and around BPF territory.
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and the Mount Vernon Police Department. He also thanked the Westchester County District Attorney’s Office for its participation and support in this ongoing investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys George Turner and Daniel Filor are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Jamel Upson, et al., S2 15 Cr. 570
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
JAMEL UPSON
SAMUEL CARLOS
ANTHONY JONES
ANTOINE LITTLE
TYRONE McCALLUM
PORTLAND RAMSEUR
GORHAM VALENTINE
JASON WHITE
UPSON: Life in prison
Other Defendants: 20 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
18 U.S.C. § 924(c)
JAMEL UPSON
SAMUEL CARLOS
ANTHONY JONES
ANTOINE LITTLE
TYRONE McCALLUM
PORTLAND RAMSEUR
GORHAM VALENTINE
JASON WHITE
Life in prison
Mandatory minimum of 10 years in prison
3
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JAMEL UPSON
Death penalty, or mandatory life in prison
4
Murder through use of a firearm
18 U.S.C. §§ 924(j), 924(c)(1)(A)(iii), 924(c)(1)(C)(i)
JAMEL UPSON
Death penalty, or life in prison
Mandatory minimum of 25 years in prison
5
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JAMEL UPSON
Death penalty, or mandatory life in prison
6
Murder through use of a firearm
18 U.S.C. §§ 924(j), 924(c)(1)(A)(iii), 924(c)(1)(C)(i)
JAMEL UPSON
Death penalty, or life in prison
Mandatory minimum of 25 years in prison
7
Narcotics conspiracy
21 U.S.C. §§ 846, 841(b)(1)(C), 841(b)(1)(D)
JAMEL UPSON
SAMUEL CARLOS
PORTLAND RAMSEUR
JASON WHITE
20 years in prison
Defendant
Age
Residence
JAMEL UPSON
31
Mount Vernon, NY
SAMUEL CARLOS
27
Mount Vernon, NY
ANTHONY JONES
26
Mount Vernon, NY
ANTOINE LITTLE
32
Bedford, TX
TYRONE McCALLUM
28
Mount Vernon, NY
PORTLAND RAMSEUR
30
Mount Vernon, NY
GORHAM VALENTINE
30
Mount Vernon, NY
JASON WHITE
32
Mount Vernon, NY
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment forth herein constitute only allegations, and every fact described should be treated as an allegation.
Eagle Butte Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Sexual Abuse of a Person Incapable of Consenting was sentenced on January 4, 2016, by U.S. District Judge Roberto A. Lange.
Ronnie Keith Circle Bear, age 52, was sentenced to 121 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Circle Bear was indicted by a federal grand jury on November 13, 2014, for one count of Aggravated Sexual Abuse by Force and one count of Sexual Abuse of a Person Incapable of Consenting. He pled guilty to one count of Sexual Abuse of a Person Incapable of Consenting on October 6, 2015.
The conviction arose from a June 2014 incident when Circle Bear was living in Rapid City and traveled to Eagle Butte as part of his job. Circle Bear contacted the victim’s mother and asked if the victim could go with him to Eagle Butte so they could later attend a pow-wow in McLaughlin. The victim was 17-years old at the time.
The victim rode with Circle Bear from Rapid City to Eagle Butte. When they arrived in Eagle Butte, Circle Bear got a motel room. He then purchased some peppermint schnapps and flavored vodka that he mixed with cranberry juice and provided to the victim. The victim drank the alcohol and after several hours, passed out on the bed with her clothes on. Circle Bear knew the victim was incapacitated and was incapable of declining any sexual advances, but he removed her pants and underwear and proceeded to have sexual intercourse with her anyway. The victim woke up while Circle Bear was having intercourse with her. When he stopped, she asked Circle Bear for her clothes, got dressed, and went to the front desk at the motel to ask for help. The motel clerk called the Cheyenne River Sioux Tribe Police Department.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Circle Bear was immediately turned over to the custody of the U.S. Marshals Service.
Dominican National Guilty of Making A False Claim to U.S. CitizenshipRead the Press Release
CONCORD, N.H. – Pedro Julio Alcantar-Bernabel a/k/a Francis Villar de la Santos, a citizen of the Dominican Republic, pleaded guilty today in United States District Court for the District of New Hampshire to one count of Social Security Number Misuse and one count of Making a False Claim to United States Citizenship, announced Acting United States Attorney Donald Feith.
On July 1, 2015, Alcantar-Bernabel applied for a driver’s license at the Department of Motor Vehicles in Manchester, New Hampshire using another person’s name, date of birth, and Social Security number. He also indicated on the application that he was a United States citizen. The Social Security card Alcantar-Bernabel produced as a means of identification appeared to have been altered, and the New Hampshire State Police were called to investigate. Upon further investigation, it was discovered that Alcantar-Bernabel was encountered by the United States Coast Guard in August 2000 off the coast of Puerto Rico, at which time he admitted that he was a citizen of the Dominican Republic and was given a voluntary return to that country. Fingerprint analysis confirmed that the individual claiming United States citizenship on the New Hampshire driver’s license application was the same individual who was returned to the Dominican Republic in 2000.
Alcantar-Bernabel is scheduled to be sentenced on April 13, 2016. He is facing a maximum sentence of five years’ imprisonment.
The case was investigated by the United States Department of Homeland Security Immigration and Customs Enforcement, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
Doctor Who Pre-Signed Thousands of Prescriptions in $20 Million Health Care Fraud Scheme Sentenced to Nine Years in PrisonRead the Press Release
LOS ANGELES – The medical doctor at the center of a conspiracy linked to a sham medical clinic in Glendale was sentenced today to nine years in federal prison for his role in a $20 million scheme to defraud the Medicare and Medi-Cal programs.
Dr. Kenneth Johnson, 49, of Ladera Heights, received a 108-month prison term from United States District Judge S. James Otero.
Johnson was sentenced for his role in a scheme that, among other things, fraudulently prescribed expensive anti-psychotic medications and then re-billed the government for those drugs over and over. Johnson pre-signed thousands of prescriptions that were later used to fill millions of dollars in fraudulent prescriptions for anti-psychotic drugs.
Observing that Johnson’s involvement in the conspiracy caused “significant loss by any measure,” Judge Otero stated that the sentence was necessary to “deter others from engaging in this type of conduct, especially physicians.”
Johnson is one of three people found guilty after a trial in 2014 – and one of a total of 16 defendants who have been convicted – in relation to the scheme run out of Manor Medical Imaging in Glendale. The scheme generated fraudulent billings of more than $20 million, of which Medi-Cal and Medicare actually paid more than $9 million.
Using prescriptions that were pre-signed by Johnson, employees of Manor Medical generated thousands of prescriptions for identify theft victims – such as elderly Vietnamese beneficiaries of Medicare and Medi-Cal, military veterans who were recruited from drug rehab programs, and denizens of Skid Row. Members of the conspiracy created or doctored patient files to make it falsely appear the drugs were necessary and the patients were legitimately treated. After the prescriptions were filled at pharmacies and paid for by Medicare and Medi-Cal, they were sold on the black market and redistributed to pharmacies, where the drugs would be subject to new claims made to Medicare and Medi-Cal as though they were new bottles of drugs.
“Dr. Johnson essentially sold his prescription pad when he became part of the conspiracy that defrauded the government out of millions of dollars,” said United States Attorney Eileen M. Decker. “Johnson played a crucial role in this scheme, which could not have functioned without his medical license lending an air of legitimacy to the clinic.”
The case was the first in the nation involving an organized scheme to defraud government health care programs through fraudulent claims for expensive anti-psychotic medications. At a prior hearing, Judge Otero noted that the conspiracy was “particularly devious,” because the participants believed they targeted “under-the-radar” drugs in an effort to evade the attention of law enforcement.
In its sentencing brief, the government argued that Johnson “used his skill and professional licensure – issued in order to help people – to fraudulently take millions of dollars from programs designed to help the nation’s most vulnerable citizens.”
Previously in this case, another leader of the conspiracy – Lianna “Lili” Ovsepian, 35, of Tujunga, the manager and owner of Manor Medical – was sentenced to eight years in prison after pleading guilty to health care fraud charges. Her brother Artak Ovsepian, 34, of Tujunga – who was convicted with Johnson at trial – received a 15-year prison term in August. The third person convicted at trial – Nuritsa Grigoryan, 51, of Glendale – the holder of an Armenian medical license, who pretended to be an American doctor when she saw homeless “patients” and who filled out the bogus prescriptions pre-signed by Johnson – fled the United States after being found guilty and remains a fugitive.
The investigation in this case, which was called Operation “Psyched Out,” was conducted by the San Marino Police Department; the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; the United States Food and Drug Administration, Office of Criminal Investigations; IRS-Criminal Investigation; the United States Department of Health and Human Services, Office of the Inspector General; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Glendale Police Department, Organized Crime Team; and the California Department of Health Care Services, Audits and Investigations Branch.
Convicted Felon Sentenced for Scheme to Defraud BanksRead the Press Release
PHILADELPHIA – Leonard Herrington, 42, of Philadelphia, PA, was sentenced last night to 75 months in prison for his role in a bank fraud conspiracy that also involved identity theft. On September 4, 2015, a federal jury found Herrington guilty of conspiracy to commit bank fraud, attempted bank fraud, and aggravated identity theft.
Herrington was a mid-level participant who recruited and managed other co-conspirators in the extensive identity theft and fraud ring that spanned two states and defrauded seven financial institutions. The extensive fraud ring victimized numerous people whose personal information was compromised and used without their knowledge and who were victimized financially and emotionally. Herrington and his eight co-defendants obtained or attempted to obtain at least $279,875.93, through fraudulent means, from Third Fed Bank, TD Bank, Santander Bank, PNC Bank, M&T Bank, Wells Fargo Bank and Andrews Credit Union.
In addition to the prison term, U.S. District Court Judge Wendy Beetlestone ordered, a special assessment of $300 and 4 years of supervised release. A hearing on restitution will be held at a later date.
This case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, the United States Secret Service, the Burlington County (NJ) Prosecutor’s Office, the Bucks County District Attorney’s Office, the Bordentown Township (NJ) Police Department, the Burlington City (NJ) Police Department, the Burlington County (NJ) Sheriff’s Department, the Camden County (NJ) Prosecutor’s Office High Tech Crimes Unit, the Camden County (NJ) Sheriff’s Department, the Cherry Hill (NJ) Police Department, the Lehigh County Auto Theft Task Force, the Mount Holly (NJ) Police Department, the Pennsauken Township (NJ) Police Department, the Plumstead Township Police Department, the Willingboro Township (NJ) Police Department, the Winslow Township (NJ) Police Department, and the West Whteland Police Department. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
Cocaine Trafficker Sentenced to 18 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Jesus Garcia, 42, has been sentenced by U.S. District Judge Sam A. Lindsay to 218 months in federal prison for his role in a cocaine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Garcia pleaded guilty in 2014 to one count of conspiracy to possess with intent to distribute cocaine base. A total of 19 defendants were charged in the conspiracy; most have been convicted and sentenced to prison terms ranging from 18 months to 20 years in federal prison.
According to documents filed in the case, during the course of the investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) intercepted telephone calls of several of the conspirators, including Garcia. Garcia admits that on numerous occasions he used various cell phones to contact co-conspirators to coordinate the distribution of quantities of crack and powder cocaine. Garcia is responsible for the distribution of 1,054.64 grams of crack cocaine and 3,022.48 grams of powder cocaine during the course of the conspiracy.
ICE HSI and the Dallas Police Department’s Gang Unit investigated. Assistant U.S. Attorney Cara Pierce prosecuted.
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Cleveland women sentenced to prison for stealing identities and filing false tax returnsRead the Press Release
Two Cleveland women were sentenced to prison for a conspiracy in which they stole other people’s identities and collected more than $326,000 in false tax returns, law enforcement officials said.
Michelle D. Pugh, a/k/a Michelle Morman, 39, was sentenced to four years in prison. Joi C. Tate, 38, was sentenced to two years and eight months in prison. They were ordered to pay $326,265 in restitution.
They were previously found guilty of conspiracy to defraud the government, making false, fictitious and fraudulent claims for income tax refunds, theft of public funds and aggravated identity theft.
“This duo is stole money from the government and identifying information from customers,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers by posing as legitimate income tax preparers,” said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today they are being held accountable for their criminal actions.”
Pugh and Tate, acting together and with others, engaged in a false tax refund scheme in which they prepared at least 25 false income tax returns for the years 2010 and 2011, for approximately 20 people including Pugh, which claimed income tax refunds that were greater than the actual refunds, if any, to which the taxpayers were entitled, according to court documents.
Pugh, Tate and others gathered personal identification information used in filing the returns either by posing as legitimate tax preparers working through Pugh’s company, MP Tax Services, or through a network of associates. In some cases, Pugh and Tate obtained and used personal identification information of individuals without their knowledge of consent. Pugh and Tate did not list themselves as the actual tax preparer on any of the tax returns they filed in others’ names.
On each return, Pugh, Tate and their cohorts generated false refund claims, at least in part, by reporting a falsely inflated or fictitious wage income and a resulting false earned income credit. On some returns, Pugh, Tate and their confederates also claimed false dependents and/or reported false education and child tax credits, as reflected on fictitious Forms 8863 and 8812 filed with the IRS.
Pugh and Tate filed the returns electronically on behalf of taxpayers, through private and public internet connections. Generally, they did not provide a copy of the return to the taxpayer, and the taxpayer did not know the amount of the refund claimed or was told an incorrect amount. In the case of those individuals whose identities were used without their knowledge or permission, Pugh and Tate did not inform them that they received funds from the IRS and instead kept the proceeds for themselves, according to court documents.
The electronic filings included requests that the IRS direct-deposit refunds into bank accounts owned or controlled by Pugh. After receiving the refunds, Pugh, Tate and their co-conspirators paid only a portion of the refund, if any, to the taxpayer.
Pugh’s, Tate’s and their co-conspirators’ falsely inflated refund claims on the returns filed in the scheme resulted in the delivery of approximately $326,265 in illicit refunds to the conspirators, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the IRS – Criminal Investigations.
Cheektowaga Man Charged with Possession and Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alexander Burton Blake, 25, of Cheektowaga, NY, was arrested and charged by criminal complaint with distributing and possessing child pornography. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorney, Aaron J. Mango, who is handling the case, stated that according to the complaint, on October 16, 2015, the defendant was found in possession of a thumb drive that contained more than 3000 images and 23 videos of child pornography. Some of the images included prepubescent children and depictions of violence. In addition, previously on July 14, 2015, an undercover FBI agent downloaded nine images of child pornography from the defendant who utilized a peer-to-peer file sharing program.
Blake made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on the condition that he remains under home confinement.
The criminal complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Adam S. Cohen, Special Agent in Charge. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
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.
Charleston felon sentenced on Federal gun chargeRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced that a Charleston man was sentenced in federal court to a year and three months in federal prison for being a felon in possession of a firearm. Travis Leonard Sumpter, 39, previously pleaded guilty to the federal gun charge in July of 2015.
Sumpter admitted that on December 4, 2014, officers with the Charleston Police Department found Sumpter in possession of a loaded Cobra Enterprises .38 Special Derringer while he was in front of the Park Place Bar on Central Avenue in Charleston. Sumpter was prohibited from possessing any firearm under federal law because of a 2007 felony conviction in Kanawha County Circuit Court for wanton endangerment involving a firearm.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Timothy D. Boggess handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs that target gun crime.
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Beaufort Resident Sentenced for Making False Distress Calls to the U.S. Coast GuardRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced CHARLES ROBERT DOWD, 27, of Beaufort, North Carolina, to 41 months of imprisonment and 3 years supervised release and was ordered to pay $18,994.00 in restitution. On September 16, 2015 DOWD entered a guilty plea to making false distress calls to the United States Coast Guard.
"The Coast Guard has a long and proud history of Search and Rescue, often at great personal risk to those who chose to devote their life to the service of others. False distress calls incur significant cost to the public by obligating search resources and vast amounts of tax payer dollars. More importantly, they risk the very lives of responders for cases where no actual distress exists. Additionally, these false distress calls take search and rescue resources away from those who may be in real distress," said Captain Sean Murtagh, commander of Sector North Carolina. “Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."
According to information in the public record, on October 20, 2013, the United States Coast Guard received a “MayDay” call in which the caller claimed a vessel with five adults and two children was taking on water and sinking near the Core Creek Bridge in Beaufort, North Carolina. The calls indicated that one child was stuck on the vessel and could not be seen. Upon receipt of the distress call, small boats from Coast Guard Station Fort Macon, North Carolina; a helicopter from the Marine Corps Air Station at Cherry Point, North Carolina; a towboat from a local salvage company; and emergency responders from the sheriff’s office and two fire departments were deployed to assist in the search and rescue of the vessel. However, response crews found no vessel or persons in distress. Ultimately, the Coast Guard determined that the call was a hoax, but not until after $18,994.00 worth of resources were expended.
The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina. The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service. Assistant United States Attorney Susan B. Menzer prosecuted the case.
Barberton man who participated in ethnic cleansing in former Yugoslavia sentenced to prison, to be deportedRead the Press Release
A Barberton man was sentenced to two years in prison for lying on his immigration documents by failing to disclose his role in the ethnically motivated murder of a Croatian couple during the war in Bosnia-Herzegovina, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Marlon Miller, Special Agent in Charge of HSI Detroit, which covers Michigan and Ohio.
Slobodan Mutic, 53, is expected to be deported upon completion of his sentence to Croatia, where he will stand trial for human-rights violations.
Mutic, a former soldier of the now-defunct rogue state Republika Serbian Krajina, pleaded guilty last year to one count of knowingly and willingly possessing a U.S. Immigration and Naturalization Form I-94, knowing it to be forged, counterfeited, altered, falsely made or to be have been procured by means of a false claim or statement.
"Our nation welcomes refugees, not human rights criminals,” Dettelbach said. “This defendant lied his way into this nation and does not deserve the privileges and freedoms this great nation offers. It is now up the legal system to ensure that he will be held to account for any of his actions in a proper court once he is returned to his home country."
“Today’s sentencing is another step toward Mr. Mutic’s removal from the United States,” Miller said. “This case underscores HSI’s commitment to ensuring that the United States is not perceived as a haven for individuals who have committed horrendous war crimes in their home countries.”
Mutic possessed a Form I-94 in 2012 that he fraudulently procured. Mutic, on or about August 2001, falsely claimed “no” when filling out immigration forms that asked if he had ever “been arrested, cited, charged, indicted, fined or imprisoned for breaking any law or ordinance…” and again when asked if he had “ever engaged in any genocide, otherwise ordered, incited, assisted or otherwise participated in the killing of any person because of race, religion, nationality ethnic origin or political opinion,” according to court documents.
Those answers were false. Mutic was arrested, detained for a month and questioned by local law enforcement about the murder of Stjepan and Paula Cindric. The answers also contradicted statements he made during a January 8, 1992 interview that were memorialized in an affidavit that Mutic signed, according to court documents.
In that affidavit, Mutic admitted to his participation in the murder of the Cindric family along with accomplice Dragan Perencevic. Mutic and Perencevic targeted the Cindrics because of their ethnicity. Mutic is also wanted for other crimes in Croatia, including the murder of Aleksandra Zivkovic, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Cronin and Karrie Howard following an investigation by Homeland Security Special Agent Timothy Stark and Homeland Security’s Human Rights Violators and War Crimes Center historian Michael MacQueen.
Authorities Arrest Bandidos Outlaw Motorcycle Organization LeadershipRead the Press Release
This morning, federal and state authorities in Texas arrested the highest ranking leaders of the Bandidos Outlaw Motorcycle Organization (OMO)--National President Jeffrey Fay Pike, National Vice President John Xavier Portillo and National Sergeant at Arms Justin Cole Forster--based on federal racketeering and drug distribution charges. Pike, age 60 of Conroe, TX; Portillo, age 56 of San Antonio; and, Forster, age 31 of San Antonio, are accused of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Department of Public Safety Director Steve McCraw.
A federal grand jury indictment, unsealed today, charges the defendants with one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute and one count of conspiracy to commit violent crimes in aid of racketeering (VICAR). Pike is also charged with one count of interference with Commerce by extortion. Portillo is also charged with two substantive VICAR counts, plus one count each of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and interference with Commerce by extortion. Forster is also charged with conspiracy to possess with intent to distribute methamphetamine, two counts of possession with intent to distribute methamphetamine, and one count of interference with Commerce by extortion. The indictment is attached.
According to the indictment, beginning in 2013, the Bandidos OMO declared it was “at war” with the Cossacks OMO. The indictment specifically alleges a number of violent acts committed by Bandidos OMO members in furtherance of this “war.” The indictment also alleges that in 2014, Portillo received methamphetamine from Colorado-area Bandidos members and that Forster was selling ounce quantities of methamphetamine.
“This joint investigation by the DEA, the FBI, the Texas Department of Public Safety, and the U.S. Attorney's Office has led to the charging and arrest of the highest ranking leadership of the Bandidos Outlaw Motorcycle Organization. Of course, the defendants will have their day in court, but today's arrests have struck a significant blow to the Bandidos' criminal enterprise,” stated United States Attorney Richard L. Durbin, Jr.
“Operation Texas Rocker has inflicted a debilitating blow to the leadership hierarchy and violent perpetrators of the Bandidos Outlaw Motorcycle Gang,” said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration-Houston Field Division. “This 23-month operation highlights a deliberate and strategic effort to cut off and shut down the supply of methamphetamine trafficked by the Bandidos as well as other related criminal activity.”
“These indictments and arrests are the result of the ongoing partnership and collaboration between the FBI, DEA and DPS to neutralize one of the most dangerous criminal organizations in Texas,” said FBI Special Agent in Charge Christopher Combs. “This effort not only exemplifies our commitment to prevent gang violence and criminal activity from poisoning our communities, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”
Pike, Portillo and Forster remain in federal custody. Upon conviction, the defendants face up to life in federal prison.
This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department and the Bexar County District Attorney’s Office. Assistant United States Attorney Eric J. Fuchs is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Arrowsic Man Pleads Guilty to Social Security FraudRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Caton, 72, of Arrowsic, Maine, pled guilty today in U.S. District Court to Social Security Fraud.
According to court documents, Caton’s mother received Retirement and Survivors Benefits (RSI) following the death of her husband. When Caton’s mother died in September 2000, the RSI benefits continued to be deposited into Caton’s and his mother’s joint bank account. Caton did not notify the Social Security Administration that his mother’s RSI benefits continued to be deposited into their joint account following his mother’s death. The excess RSI payments continued uninterrupted for 14 years, with the last payment occurring in September 2014. Excess RSI payments to Caton’s joint account totaled $162,786. Caton used these funds to pay his own personal bills and expenses, spending all but approximately $15,000.
Caton faces up to five years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Social Security Administration’s Office of Inspector General.
Armed Co-conspirator of Planned Home Invasion Sentenced to 8 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Emmett Blyden, 45, was sentenced on Tuesday to 96 months in federal prison for his role in a conspiracy to commit an armed home invasion and drug-rip at a Providence residence in June 2014, where he, and a co-defendant, Allen Prout, 44, of Providence, were expecting to find and steal two kilos of heroin and a substantial amount of cash. Blyden and Prout were arrested on June 6, 2014, moments after each took possession of firearms they intended to use to commit the armed home invasion and robbery.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Blyden to serve 3 years supervised release upon completion of his prison term. Blyden pleaded guilty on September 22, 2015, to robbery conspiracy and being a felon in possession of a firearm.
Blyden’s sentence is announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Allen Prout, who pleaded guilty on October 29, 2015, to robbery conspiracy, possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm, is scheduled to be sentenced on February 2, 2016.
According to court documents and information presented to the court, in June 2014, Prout contacted an individual known to ATF agents, seeking assistance in setting up a robbery and inquiring as to the availability of firearms to be used during the robbery. Working at the direction of ATF, the individual met with Prout on June 2, 2014, to discuss robbing a fictitious stash house in Providence. Prout was told that two kilos of heroin and a large amount of cash were being stored at the residence. After having additional conversations via telephone and text messages over the next few days, Prout arranged to meet with the individual on June 6, 2014, to finalize plans for the home invasion and robbery, and to obtain firearms to be used during the crime. Blyden accompanied Prout to the meeting.
According to information presented to the court, Blyden attended the meeting knowing that it was to plan an armed home invasion and robbery. During the meeting, Blyden and Prout were told that up to five individuals would be inside the residence and that some or all may be armed. Prior to taking possession of a firearm, Blyden insisted on putting on a pair of gloves.
Shortly after Blyden and Prout each took possession of a firearm, ATF agents entered the residence and arrested the two men. The firearms had been rendered inoperable by ATF agents prior to being delivered to Blyden and Prout.
According to court records, Emmett Blyden’s prior felony record includes at least three drug trafficking convictions. Allen Prout was previously convicted on felony assault and larceny charges.
The case is being prosecuted by Assistant U.S. Milind M. Shah.
The Providence Police Department SWAT Team assisted ATF agents in the arrest of the defendants.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
American Citizen Charged with Conspiring to Murder U.S. Nationals and Conspiring to Use a Weapon of Mass Destruction in Attack Against U.S. Military Base in AfghanistanRead the Press Release
Defendant Allegedly Responsible for a Vehicle-Borne Improvised Explosive Device Attack against U.S. Military Base in Afghanistan in January 2009
A superseding indictment was obtained today in federal court in the Eastern District of New York, adding charges against Muhanad Mahmoud Al Farekh, 30, an American citizen, for conspiracy to murder U.S. nationals, use of explosives, conspiracy to use a weapon of mass destruction and conspiracy to bomb a government facility. These new charges arise out of Farekh’s participation in an attack on a U.S. military base in Afghanistan in January 2009. As set forth in the superseding indictment and in other publicly available information, Farekh assisted in the preparation of a vehicle-borne improvised explosive device (VBIED) for use in the attack. On or about Jan. 19, 2009, two co-conspirators drove vehicles to the U.S. military base in Afghanistan. The first co-conspirator detonated the VBIED in his vehicle during the attack on the military base. The second co-conspirator drove a truck containing a second VBIED to the military base, but did not detonate that device. Farekh’s fingerprints were subsequently recovered from packing tape on the VBIED that did not detonate.
The superseding indictment also charges that, between December 2006 and September 2009, Farekh provided, attempted to provide and conspired to provide material support to al-Qaeda. The superseding indictment includes the charges from the original indictment, unsealed on May 28, 2015, that Farekh provided, attempted to provide and conspired to provide material support to terrorists. The defendant is scheduled to be arraigned on the new charges on Jan. 7, 2016, at 12 p.m. EST at the U.S. District Court for the Eastern District of New York, before U.S. District Judge Brian M. Cogan of the Eastern District of New York.
The superseding indictment was announced today by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).
“Muhanad Mahmoud Al Farekh is charged with conspiring to kill Americans overseas for his role in a VBIED attack on a U.S. military installation in Afghanistan,” said Assistant Attorney General Carlin. “Counterterrorism is the highest priority of the National Security Division, and we will continue to use all tools available to bring to justice those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation.”
“Farekh, a citizen of the United States, allegedly turned his back on our country and tried to kill U.S. soldiers in the course of executing their sworn duty to keep us safe,” said U.S. Attorney Capers. “Today’s charges demonstrate that the patriotism and service of the members of our armed forces will never be forgotten and that we will make every effort to prosecute those who would harm our country and our armed forces to the full extent of the law.”
“This indictment demonstrates justice has no bounds and the United States government will seek to investigate and prosecute crimes against Americans, no matter where they take place,” said Assistant Director in Charge Rodriguez. “The FBI stands alongside our military and law enforcement partners to hold criminals accountable for their actions. Special thanks to the FBI agents and NYPD detectives on our JTTF, who have conducted a thorough global investigation.”
“This superseding indictment demonstrates the NYPD and FBI's commitment to arrest those who commit acts of terror--from Arthur Avenue to Afghanistan,” said Commissioner Bratton. “This thwarted plot is strikingly familiar to the attack that killed Detective Lemm last week in Afghanistan. We will continue working on every corner of the globe to arrest and charge those who attack our men and women in uniform.”
As alleged in other publicly-filed documents, in approximately 2007, Farekh and two co-conspirators departed Canada for Pakistan with the intention of fighting against American forces. They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs. One of Farekh’s co-conspirators – Ferid Imam – subsequently provided weapons and other military-type training at an al-Qaeda training camp in Pakistan in approximately September 2008, according to public testimony in previous EDNY criminal trials. Among Imam’s trainees were three individuals – Najibullah Zazi, Zarein Ahmedzay and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system. Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life in prison. Ferid Imam has also been indicted for his role in the plot.
If convicted, the defendant faces a mandatory minimum sentence of seven years in prison and a maximum sentence of life imprisonment. Any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Richard M. Tucker and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Kiersten Korczynski of the National Security Division’s Counterterrorism Section.
Farekh Superseding Indictment
American Citizen Charged with Conspiring to Murder U.S. Nationals and Conspiring to Use A Weapon of Mass Destruction in Attack Against U.S. Military Base in AfghanistanRead the Press Release
A superseding indictment was obtained today in federal court in the Eastern District of New York, adding charges against Muhanad Mahmoud Al Farekh, an American citizen, for conspiracy to murder United States nationals, use of explosives, conspiracy to use a weapon of mass destruction, and conspiracy to bomb a government facility. These new charges arise out of Farekh’s participation in an attack on a U.S. military base in Afghanistan in January 2009. As set forth in the superseding indictment and in other publicly available information, Farekh assisted in the preparation of a vehicle-borne improvised explosive device (“VBIED”) for use in the attack. On or about January 19, 2009, two co-conspirators drove vehicles to the U.S. military base in Afghanistan. The first co-conspirator detonated the VBIED in his vehicle during the attack on the military base. The second co-conspirator drove a truck containing a second VBIED to the military base, but did not detonate that device. Farekh’s fingerprints were subsequently recovered from packing tape on the VBIED that did not detonate.
The superseding indictment also charges that, between December 2006 and September 2009, Farekh provided, attempted to provide, and conspired to provide material support to al-Qaeda. The superseding indictment includes the charges from the original indictment, unsealed on May 28, 2015, that Farekh provided, attempted to provide, and conspired to provide material support to terrorists.
The defendant is scheduled to be arraigned on the new charges on January 7, 2016, at 12 p.m. at the United States District Court for the Eastern District of New York, before United States District Judge Brian M. Cogan.
The superseding indictment was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“Farekh, a citizen of the United States, allegedly turned his back on our country and tried to kill U.S. soldiers in the course of their executing their sworn duty to keep us safe,” stated United States Attorney Capers. “Today’s charges demonstrate that the patriotism and service of the members of our armed forces will never be forgotten and that we will make every effort to prosecute those who would harm our country and our armed forces to the full extent of the law.” Mr. Capers extended his grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a large number of federal, state, and local agencies from the region.
“Muhanad Mahmoud Al Farekh is charged with conspiring to kill Americans overseas for his role in a VBIED attack on a U.S. military installation in Afghanistan,” said Assistant Attorney General Carlin. “Counterterrorism is the highest priority of the National Security Division, and we will continue to use all tools available to bring to justice those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation.”
“This indictment demonstrates justice has no bounds and the United States government will seek to investigate and prosecute crimes against Americans, no matter where they take place. The FBI stands alongside our military and law enforcement partners to hold criminals accountable for their actions. Special thanks to the FBI agents and NYPD detectives on our JTTF, who have conducted a thorough global investigation,” said FBI Assistant Director in Charge Rodriguez.
“This superseding indictment demonstrates the NYPD and FBI's commitment to arrest those who commit acts of terror – from Arthur Avenue to Afghanistan. This thwarted plot is strikingly familiar to the attack that killed Detective Lemm in Afghanistan. We will continue working on every corner of the globe to arrest and charge those who attack our men and women in uniform,” said Police Commissioner William J. Bratton.
As alleged in other publicly filed documents, in approximately 2007, Farekh and two co-conspirators departed Canada for Pakistan with the intention of fighting against American forces. They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs. One of Farekh’s co-conspirators – Ferid Imam – subsequently provided weapons and other military-type training at an al-Qaeda training camp in Pakistan in approximately September 2008, according to public testimony in previous EDNY criminal trials. Among Imam’s trainees were three individuals – Najibullah Zazi, Zarein Ahmedzay, and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system. Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life imprisonment. Ferid Imam has also been indicted for his role in the plot (see EDNY Docket Number 10-CR-019 (S-4) (RJD)).
If convicted, the defendant faces a statutory mandatory minimum sentence of 7 years’ imprisonment and a maximum sentence of life imprisonment.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad, Richard M. Tucker, and Douglas M. Pravda are in charge of the prosecution, with assistance provided by Trial Attorney Kiersten Korczynski of the Justice Department’s Counterterrorism Section.
The Defendant:
MUHANAD MAHMOUD AL FAREKH
Age: 30
Nationality: United StatesE.D.N.Y. Docket No. 15-CR-268 (S-1)
Albuquerque Man Sentenced to Federal Prison for Failing to Update His Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Anthony F. Romero, Jr., 37, of Albuquerque, N.M., was sentenced today in federal court to 15 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Romero will be required to register as a sex offender following his term of incarceration. The sentence 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.
Romero was arrested on May 26, 2015, on an indictment charging him with violating SORNA by failing to update his sex offender registration in Bernalillo County, N.M. Court records reflect that Romero was required to register as a sex offender because he was previously convicted of a sexual abuse crime in 2008.
On Oct. 6, 2015, Romero pled guilty to a felony information and admitted that his last registration as a sex offender was on Nov. 20, 2014, and that at the time of his arrest he had not renewed nor attempted to renew his registration.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
5 January 2016
Wrangell Father and Son Sentenced for Charges Relating to Violations of the Lacey ActRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a father and son from Wrangell, Alaska, were sentenced yesterday in Juneau federal court on charges related to violations of the Lacey Act while fishing for halibut in the Gulf of Alaska.
Charles “Chuck” J. Petticrew Sr., 70, and Charles “Jeff” J. Petticrew Jr., 42, residents of Wrangell, Alaska, were previously charged with violating the federal Lacey Act. Both defendants admitted their crimes and pled guilty in October before Chief U.S. District Judge Timothy M. Burgess.
According to Assistant U. S. Attorney Jack S. Schmidt, Between June 28, 2010, and continuing until May 20, 2013, Petticrew Sr. and Petticrew Jr. conspired to falsify fishing locations on Alaska Department of Fish and Game (ADF&G) Longline Fishery Logbook entries, IFQ landing permits, and ADF&G Halibut Tickets indicating that they fished in Management Area 3A, when in fact, they had only fished Management Area 2C. The defendants had illegally caught halibut in Management Area 2C valued over $23,000 and falsified Individual Fishing Quota (IFQ) records. Petticrew Sr. pled guilty to a single felony count of conspiracy to falsify (IFQ) records and was sentenced to pay a $90,000 fine and placed on probation for five years. Petticrew Jr. pled guilty to a single misdemeanor count for violating the Lacey Act by falsifying IFQ records and was sentenced to pay a $10,000 fine and placed on probation for five years. Both defendants agreed to install and pay for a Vessel Monitoring System (VMS) for the vessel used by the defendants or any other vessel who is fishing on behalf of the family corporation.
Prior to imposing the sentences, Judge Burgess stated the seriousness of the crime, deterrence of the defendant and others, as well as the need to protect Alaska fishery resources.
The National Oceanic and Atmospheric Administration, Office of Law Enforcement, Alaska Enforcement Division conducted the investigation leading to the charges in this case.
Wisconsin Architectural Firm to Plead Guilty and Pay $3 Million to Resolve Criminal and Civil ClaimsRead the Press Release
The Department of Justice announced today that Wisconsin-based Novum Structures LLC (Novum) has agreed to enter a guilty plea and pay $3 million to resolve its criminal and civil liability arising from its improper use of foreign materials on construction projects involving federal funds. This use was in violation of contractual provisions implementing various domestic preference statutes, often referred to colloquially as the “Buy America” requirements. Novum specializes in the design and construction of glass space frames often used in roofs and atrium enclosures.
The agreement announced today resolves a criminal Information alleging that Novum repackaged materials and falsified documents relating to some federally funded construction projects in order to hide that it was using noncompliant foreign materials. According to an agreement reached with the government, Novum will plead guilty to one count of concealing a material fact, in violation of 18 U.S.C. § 1001, and pay a $500,000 criminal fine.
“When taxpayer dollars are provided for construction projects, the government expects contractors to comply with all requirements, including ones that ensure the money remains in the U.S. economy,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This settlement shows that the Department of Justice is committed to pursuing claims against contractors that put financial gain ahead of complying with the law.”
“Domestic preference statutes are designed to promote American businesses and to protect U.S. economic interests,” said Acting U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “When companies subvert those interests by violating ‘Buy American’ provisions – and when they undertake efforts to conceal that they have done so – all in an effort to improperly advance their own private financial interests, the U.S. Attorney’s Office will pursue all appropriate criminal and civil sanctions.”
In addition to the criminal fine, Novum has agreed to pay $2.5 million to resolve civil allegations under the False Claims Act that its conduct caused the submission of false claims for payment. Specifically, the civil settlement resolves allegations that Novum caused false claims by knowingly – and in violation of its contractual obligations – using noncompliant foreign materials on several federally funded construction projects from Jan. 1, 2004 through July 11, 2013.
Construction projects funded by the U.S. government are generally subject to laws requiring the use of domestic materials, such as the Buy American Act; the Federal Transit Administration’s Buy America provision; and § 1605 of the American Recovery and Reinvestment Act. The contracts involved in this case covered both government buildings and transit projects partially paid for with federal funds.
As part of the settlement agreement, Novum has agreed not to contest debarment from federally funded projects.
Secretary of Transportation Anthony Foxx stated, “The U.S. Department of Transportation considers compliance with Buy America to be a fundamental requirement when a company is involved in federal projects. As we work to be good stewards of limited federal resources, the department applauds the Department of Justice and our own Office of Inspector General for the successful prosecution of this case.”
“Contractors must follow all federal contracting rules when doing business with the United States,” said General Services Administration Inspector General Carol Fortine Ochoa.
“The settlement agreement entered into by Novum Structures LLC is a positive step following the company’s disregard of its obligations to comply with the clear legal requirements of the Buy America Act designed to spur domestic economic investments and job opportunities in transportation infrastructure projects,” said Regional Special Agent in Charge Thomas Ullom Department of Transportation’s Office of Inspector General.
The allegations resolved by the civil settlement were originally brought by whistleblower Brenda King under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government those who falsely claim federal funds. The act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. King will receive approximately $400,000 as her share of the civil settlement.
The U.S. Attorney’s Office for the Eastern District of Wisconsin prosecuted the criminal case, and also jointly handled the civil lawsuit with the Civil Division’s Commercial Litigation Branch. Investigative assistance was provided by the Department of Transportation’s Office of Inspector General, the General Services Administration’s Office of Inspector General and the Defense Criminal Investigative Service, with additional support from other agencies.
The lawsuit is captioned United States ex rel. King v. Novum Structures, LLC, Case No. 12-cv-860 (E.D. Wis.). The claims resolved by the civil settlement are allegations only; there has been no determination of liability except to the extent admitted in Novum’s plea agreement.
Wilburton Man Sentenced to 120 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that BRIAN DWAIN JORDAN, age 40, of Wilburton, Oklahoma, was sentenced to 120 months imprisonment, followed by 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The charges are a result of an investigation by the Hartshorne Police Department, the Latimer County Sheriff’s Department and the Pittsburg County Sheriff’s Department. The defendant was indicted in August, 2015 and pled guilty in September, 2015.
The Indictment alleged that on or about June 15, 2015 and continuing to on or about June 16, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Wetumka Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that RODNEY GENE BENNETT, age 25, of Wetumka, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 or more than 40 years imprisonment, a fine of up to $5,000,000.00 or both.
The charge is a result of an investigation by the Seminole Nation Tribal Police and the Drug Enforcement Administration. The defendant was indicted in December, 2015.
The Indictment alleged that on or about August 5, 2015, in the Eastern District of Oklahoma, the defendant, RODNEY GENE BENNETT, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Timothy G. E. Hammer represented the United States.
Una Mujer de Rancho Cordova Acusada de Falsificar los Registros de la Seguridad Social RecordsRead the Press Release
SACRAMENTO, Calif. – Un gran jurado federal emitió una acusación formal el jueves, 17 de diciembre de 2015 contra Nelli Kesoyan, de 43 años y residente de Rancho Cordova, acusándola de hacer inscripciones e informes falsos, anunció el Procurador Federal Benjamín B. Wagner.
Según documentos del tribunal, Kesoyan fue empleada por la Administración de la Seguridad Social como asesora de reclamos. El 10 de octubre de 2014, ella hizo inscripciones falsas en los registros de la Administración de la Seguridad Social para engañar y despistar a los funcionarios de los Estados Unidos que estaban gestionando el proceso de ciudadanía para otro individuo.
La acusación formal se abrió el lunes y Kesoyan fue citada para comparecer el lunes por la tarde. Ella se declaró inocente. Se ha dispuesto una conferencia de estado para el 26 de enero de 2016, a las 09:15 AM en la Sala de Tribunal 6 ante el Juez Federal del Distrito John A. Méndez.
Este caso es el producto de una investigación de la Oficina del Inspector General de la Administración de la Seguridad Social, la Oficina Federal de Investigaciones (FBI) y las Investigaciones Criminales de Hacienda. Los Procuradores Federales Auxiliares Jeremy Kelley y Jared Dolan están procesando el caso.
Si es declarada culpable, Kesoyan se enfrentaría a una pena máxima establecida por la ley de 10 años de prisión y una multa de $250,000 dólares. No obstante, cualquier sentencia será determinada a la discreción del tribunal después de considerar cualquier factor aplicable establecido por la ley y las Normas para Sentenciar Federales que toman en cuenta una cantidad de variables. Los cargos son solo alegaciones; la demandada es presunta inocente hasta que y a menos que sea comprobada culpable sin duda razonable.
Two Morgantown, WV men charged with distributing illegal drugs from adult retail storeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Daniel Kocan, 58, and Randolph Kocan, 60, both, of Morgantown, West Virginia, with distribution of synthetic marijuana and money laundering, United States Attorney William J. Ihlenfeld, II, announced.
Daniel Kocan owned and operated Mid Nite Adult, an adult novelty retail store located in Morgantown, West Virginia. His brother, Randolph Kocan, managed the store. The defendants are alleged to have distributed synthetic marijuana from the store and to have engaged in financial transactions using the proceeds from the sale of illegal drugs.
Both defendants are charged with:
• One count of “Conspiracy to Distribute a Controlled Substance Analogue,”
• One count of “Distribution of a Controlled Substance Analogue,”
• One count of “Maintaining a Drug Involved Premises – Aiding and Abetting,”
• One count of “Possession with Intent to Distribute Schedule I Controlled Substances,”
• One count of “Conspiracy to Launder Monetary Instruments.”They each face up to 20 years in prison and a fine of up to $1,000,000 on each of the drug charges and up to 20 years in prison and a fine of up to $500,000 on the money laundering charge.
Daniel Kocan is further charged with two counts of “Engaging in Monetary Transaction with Cash Derived from Specified Unlawful Activity.” Randolph Kocan is further charged with five counts of “Engaging in Monetary Transaction with Cash Derived from Specified Unlawful Activity.” They each face up to 10 years in prison and a fine of up to $250,000 on each count. 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. Attorney Zelda Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force is leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Defendants Sentenced to Prison in Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Nikolay Zakharyan, age 24, of Owings Mills, Maryland, and Zarakh Yelizarov, age 53, of Pikesville, Maryland, today to a year and a day in prison, and 18 months in prison, respectively, each followed by three years of supervised release, for conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid. Judge Quarles entered an order requiring Yelizarov to pay restitution of $2.5 million to New York City and the state of New York and to forfeit $56,000, proceeds of the offense. Judge Quarles also entered an order requiring Nikolay Zakharyan to pay restitution of $9,659,880.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Acting Special Agent in Charge Glen A. McElravy of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to their guilty pleas, Elmar Rakhamimov was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov (no relation) and Artur Zakharyan to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York. Elmar Rakhamimov, Ilgar Rakhamimov, and Artur Zakharyan purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.
According to court documents and testimony at the five day trial, Artur Zakharyan recruited his son, Nikolay Zakharyan, to participate in the scheme. Nikolay Zakharyan assisted in the unloading, accounting, bagging, moving and loading of the master cases of contraband cigarettes. Nikolay Zakharyan traveled to the home of Elmar Rakhamimov to assist during no less than 10 deliveries of contraband cigarettes. Nikolay Zakharyan unloaded the cases of cigarettes from the truck into Elmar Rakhamimov’s garage and counted the number and types of cigarettes delivered to ensure that the delivery was complete. Nikolay Zakharyan also traveled to Elmar Rakhamimov’s home in the days following the delivery of the cigarettes to load them into the vehicle used to transport the contraband cigarettes to Brooklyn, New York, where the cigarettes were sold at a profit to conspirators in New York, who further distributed the contraband cigarettes.
Zarakh Yelizarov and Elmar Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. According to court documents, during the time he was a member of the conspiracy Yelizarov laundered $700,000 of cash he received from Rakhamimov, through 12 wire transactions from overseas bank accounts into a bank account in the United States.
The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded over the course of the conspiracy was more than $2.5 million.
Judge Quarles sentenced Artur Zakharyan, age 54, of Reisterstown, Maryland, to one year of home detention, as part of four years’ probation and entered an order requiring Artur Zakharyan to pay restitution of $2,500,000 to New York City and the state of New York and to forfeit $50,000 believed to be proceeds of the offense, $11,947 and a five troy ounce gold bars and a gold coin seized during searches.
Co-defendants Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 44, of Reisterstown, Maryland; Ilgar Rakhamimov, age 41, and Adam Azerman, age 60, both of Pikesville; and Shamil Novakhov, age 59, and Ruslan Ykiew, age 40, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Two Charleston men sentenced in Federal court on drug chargesRead the Press Release
CHARLESTON, W.Va. – Two Charleston men were sentenced today in federal court in Charleston, West Virginia, on drug charges, announced Acting United States Attorney Carol Casto.
Gregory Woods, 38, was sentenced to four years in federal prison for using a communication device to facilitate cocaine distribution, as well as four years in federal prison for possessing marijuana for remuneration. The sentences for these federal drug charges are to be served concurrently. Woods admitted that on June 8, 2011, he arranged to sell a confidential informant an ounce of cocaine at his residence through telephone calls made with his cellular phone. After Woods sold the drugs, law enforcement executed a search warrant at his residence on Early Street in Charleston and recovered 13.9 grams of cocaine, 176 grams of marijuana, and a firearm. Woods further admitted that he possessed the marijuana located in his house for distribution.
Levi Carter, 26, was sentenced to ten months in federal prison for distribution of heroin. Carter admitted that on April 21, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in the parking lot of the Embassy Suites hotel in Charleston. Carter also admitted to selling heroin to the confidential informant on several other occasions in April and May of 2015.
Both of these cases were investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman handled the prosecution of both cases. The sentence for Woods was imposed by United States District Court Judge Thomas E. Johnston. The sentence for Carter was imposed by United States District Court Judge John T. Copenhaver, Jr.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Third Conspirator in Frederick Cocaine Ring Pleads GuiltyRead the Press Release
Baltimore, Maryland – Trevin Montrez Sampson, a/k/a “Bucket,” age 30, of Frederick, Maryland, pleaded guilty today to conspiracy to distribute and possess with intent to distribute cocaine. Sampson was the third and final member of the conspiracy to plead guilty to distributing cocaine in and around Frederick.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Frederick Police Department Chief Edward G. Hargis.
According to their plea agreements, from October 2014 through December 6, 2014, Trevin Sampson, his brother, Jacoby Sampson, and Peter Nicholson participated in a conspiracy to distribute cocaine in and around Frederick. During the investigation, Frederick Police initiated wiretaps on the Sampson brothers’ telephones and intercepted a series of calls in which they arranged for Nicholson to transport a large amount of cocaine from Baltimore County to Frederick. On November 24, 2014, Nicholson was stopped in his vehicle by law enforcement as he was en route to deliver cocaine to Trevin and Jacoby Sampson, as well as other customers. Nicholson attempted to run away and in the course of his flight, placed a white cloth bag into an empty recycling bin. Nicholson was arrested and the white cloth bag was recovered by law enforcement. The bag contained multiple smaller bags which contained a total of 609.5 grams of cocaine. Two of the smaller bags were labeled “T,” for Trevin Sampson, and “Luv,” for Jacoby Sampson.
The Sampsons and Nicholson spent the evening of November 25, 2014 and the following morning attempting to locate the white cloth bag, finally concluding, in a series of intercepted phone calls, that the bag had probably been seized by law enforcement. Later on November 26, 2014, Trevin Sampson persuaded Nicholson to transport additional cocaine to Frederick, which Nicholson agreed to deliver the next day. On November 27, 2014, officers conducted surveillance as Nicholson traveled from Baltimore County to Frederick in a taxi. The officers initiated a traffic stop and as the taxi was coming to a stop, Nicholson ran from the car towards the nearby woods, tossing one package as he ran and throwing another package over a fence before he was taken into custody. The packages were retrieved and found to contain a total of 60.48 grams of cocaine, which Trevin Sampson admits was intended for him.
On December 1, 2014, Trevin Sampson exchanged a series of text messages with one of his customers and arranged to meet the customer at a residence in Frederick. Officers conducting surveillance saw the customer enter the residence and leave a short time later with Trevin Sampson. Officers subsequently stopped the customer at a parking lot in Hagerstown, Maryland and recovered 125.8 grams of cocaine, which the customer had purchased from Trevin Sampson.
During their participation in the drug conspiracy, Trevin Sampson and his co-conspirators admitted to distributing at least 500 grams of cocaine.
As part of his plea agreement, Trevin Sampson and the government have agreed to recommend to the Court that a sentence of 10 years in prison is the appropriate disposition of this case. U.S. District Judge James K. Bredar has scheduled sentencing for April 15, 2016 at 9:30 a.m.
Peter Andrew Nicholson, a/k/a “White Boy Pete,” age 32, of Rosedale, Maryland, previously pleaded guilty and on December 23, 2015, was sentenced to nine years in prison for conspiracy to distribute and possess with intent to distribute cocaine. Jacoby Olajuwon Sampson, a/k/a “Luv/Luva,” and “Coby,” age 27, of Frederick, pleaded guilty to the same charge and is scheduled to be sentenced on January 20, 2016, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Frederick Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who is prosecuting the case.
Sussex County, New Jersey, Man Charged with Kidnapping and Murder-For-Hire PlotRead the Press Release
NEWARK, N.J. – A Newton, New Jersey, man appeared in federal court today to face charges that he planned the kidnapping and murder of a Paterson, New Jersey, woman, U.S. Attorney Paul J. Fishman announced.
Christopher Thieme, 35, is charged by criminal complaint with one count of murder-for-hire and one count of attempted kidnapping. He appeared this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and was detained.
According to the complaint:
From December 2015 through Jan. 4, 2016, Thieme sought assistance from an associate in order to kidnap and ultimately murder a female victim whom Thieme had previously met through an online dating service. Thieme’s associate alerted law enforcement to Thieme’s plans, and cooperated with law enforcement’s investigation into Thieme’s plot.
In early January, at the direction of law enforcement, Thieme’s associate introduced Thieme to an undercover FBI agent posing as a hitman. Thieme explained to the undercover FBI agent that, once the victim was kidnapped, Thieme planned to empty her bank accounts and fraudulently sell off her home, the proceeds of which Thieme planned to use to pay for the kidnapping and murder. On Jan. 4, 2016, Thieme met his associate and the undercover hitman and drove them to the victim’s home and other locations where the victim could be found. Thieme was apprehended shortly afterwards.
The murder-for-hire charge carries a statutory maximum of 10 years in prison and $250,000 fine. The attempted kidnapping charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to the charges. He also thanked members of the Passaic County Prosecutor’s Office, the New Jersey State Police, the Newton Police Department, the Paramus Police Department, the Paterson Police Department, the Roxbury Police Department, and the Wayne Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Sioux Falls Woman Sentenced to 70 Months for Drug OffenseRead the Press Release
United States Attorney Randolph J. Seiler announces that a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on December 28, 2015, by Judge Karen E. Schreier.
Kay Ray Ridgway, age 24, was sentenced to 70 months in custody, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Ridgway was indicted for Conspiracy to Distribute Methamphetamine by a federal grand jury on May 5, 2015, and pled guilty on September 30, 2015.
In 2014 and 2015, Ridgway was involved in a conspiracy to distribute methamphetamine in Sioux Falls. She and other co-conspirators were found to be in possession of over 340 grams of methamphetamine.
This case was investigated by the Drug Enforcement Administration and Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Ridgway was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to 87 Months for Drug OffenseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on January 4, 2016, by U.S. District Judge Karen E. Schreier.
Fred Earl Davis, Jr., age 53, was sentenced to 87 months in custody, followed by four years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Davis was indicted for Conspiracy to Distribute Methamphetamine by a federal grand jury on March 4, 2015, and pled guilty on August 19, 2015.
In 2014, Davis was involved in a conspiracy to distribute methamphetamine and marijuana in Sioux Falls. During a traffic stop, Davis was found to be in possession of approximately 87 grams of methamphetamine, 29 grams of cocaine, 33 pounds of marijuana, and over $3,000 cash. Law enforcement found approximately three pounds of marijuana and four pounds of marijuana edibles at Davis’ home, along with eleven firearms, over 1,000 rounds of ammunition, and over $6,500 in cash.
This case was investigated by the Drug Enforcement Administration, South Dakota Highway Patrol, and the Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Davis was immediately turned over to the custody of the U.S. Marshals Service.
Senior VP of Blair County Bank Admits Submitting False Expense ReportsRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., pleaded guilty in federal court to a charge of misapplication of funds by a bank employee, United States Attorney David J. Hickton announced today.
Timothy C. Nagle, 53, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Oct. 3, 2010, to Jan. 2014, Nagle, a Senior Vice President at First National Bank, in Hollidaysburg, Pa., submitted approximately 24 false expense reports, thereby receiving money he was not entitled to.
Judge Gibson scheduled sentencing for April 28, 2016, at 10:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Nagle.
Search Engine Optimizer Sentenced to More than Three Years in Federal Prison for Extorting Money from a Local Merger and Acquisitions FirmRead the Press Release
DALLAS, Texas — William Stanley, 53, a/k/a “William Laurence,” “Bill Stanley,” “William Davis,” “William Harris,” and “William L. Stanley,” was sentenced yesterday by U.S. District Judge David C. Godbey to 37 months in federal prison for attempting to extort money from a business in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas. The court also ordered Stanley to pay $174,888 in restitution to a dozen identified victims of Stanley’s extortive conduct, including the Dallas-based firm, GE.
Stanley and his sister, Lynn Faust, a/k/a “Lynn Michaels,” were indicted in 2014, and Stanley pleaded guilty last month to one count of Hobbs Act – Extortion. Faust, 55, who was arrested in Sweden in May 2014, pleaded guilty in July 2015 to a Superseding Information charging one count of receiving the proceeds of extortion and aiding and abetting. She faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Her sentencing is set for February 1, 2016, before Judge Godbey.
Stanley, although a U.S. citizen, most recently resided in Romania with his wife, a Romanian national. In 2013, he traveled several times between Europe and the United States. On March 3, 2014, he was arrested on a related federal criminal complaint at George Bush Intercontinental Airport in Houston, where he arrived on a flight from Europe. He has been in custody since that time.
Faust assisted Stanley in operating his search engine optimization (SEO) company. A legitimate SEO business engages in standard practices such as optimizing the underlying HTML code on a website for certain keywords that a search engine indexer, (e.g., a web crawler for Google, Bing, etc.) would associate with a given search query. An illegitimate SEO business engages in deceptive tactics to affect search engine rankings and the volume of results. Such deceptive tactics include creating fraudulent reviews (good or bad), creating fictitious websites, or hiding text on websites.
While Stanley engaged in some legitimate SEO work, he also engaged in illegitimate and illegal SEO activities. Stanley also extorted individuals and companies by threatening to engage in the illegitimate SEO work, that being posting fraudulent comments and creating negative reviews online, if the victim did not pay him a certain sum of money.
In November 2009, GE entered into a contract with Stanley for SEO services and reputation management. Stanley was hired because of his ability to improve a firm’s online reputation through search results. After approximately one year, however, GE sought to terminate its relationship with Stanley after it determined he had acted outside of his contracted duties. Stanley also created websites that had the ability to damage GE’s reputation by associating GE with a scam. Stanley demanded additional payments to end his contractual relationship with GE and to surrender the administrator rights to the websites to GE. From November 2010 through January 2011, GE paid Stanley a total of $80,000 to terminate the relationship.
Posing as “William Davis” and “William Laurence,” Stanley transmitted threatening communications, via email and telephone, from foreign countries to GE in the Northern District of Texas. Those communications threatened to post comments on the Internet wrongfully disparaging GE’s reputation, if GE did not send money to Stanley.
Because of Stanley’s threats to harm GE’s reputation through negative Internet posts that would adversely affect GE’s ability to conduct business if it failed to send money, GE responded to the wrongful inducement by sending four payments totaling $29,556 by MoneyGram to Stanley in Brasov, Romania.
According to the factual resume, the government could readily prove that Stanley’s extortive conduct caused GE to make the above payments and to lose revenue. The extortive conduct also affected interstate commerce. In addition, the government contended that it could readily prove that Stanley engaged in similar extortionate conduct with approximately 40 to 45 victims (including GE).
The FBI investigated the case and Assistant U.S. Attorney C.S. Heath prosecuted.
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Rockville Man Pleads Guilty to Distributing Child PornographyRead the Press Release
Greenbelt, Maryland – Romeo Joseph Hillman, age 29, of Rockville, Maryland, pleaded guilty late on January 4, 2016, to distribution of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to Hillman’s plea agreement, on October 22, 2014, an undercover FBI Task Force Officer downloaded 82 image and video files depicting children from approximately ages three to 13 engaged in sexually explicit conduct from an IP address associated with Hillman’s residence. On February 11, 2015, a search warrant was executed at Hillman’s residence and law enforcement sized two laptop computers, four USB drives and a cellular telephone.
A subsequent forensic examination of the seized media revealed at least 12,765 images and 600 videos of child pornography, including the images previously downloaded by the FBI Task Force Officer. At least 125 files recovered from the seized media depict children previously identified as victims of child pornography by the National Center for Missing and Exploited Children. The forensic analysis also confirmed that Hillman had a file sharing program loaded on his computer. Investigation showed that, in addition to the file sharing program, Hillman used Skype to exchange messages and files containing child pornography.
As part of his plea agreement, Hillman must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Hillman and the government have agreed that if the Court accepts the plea agreement Hillman will be sentenced to between 97 and 151 months in prison. U.S. District Judge George J. Hazel has scheduled sentencing for April 20, 2016 at 9:00 a.m.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Kristin N. O’Malley, who are prosecuting the case.
Presunto Asesino Extraditado a Michocan, MexicoRead the Press Release
FRESNO, Calif. – El martes, 15 de diciembre del 2015, Jesús Flores Buenrostro de 36 años de edad y residente de California, fue extraditado a México por orden judicial donde es requerido para ser llevado a juicio por el presunto asesinato en el 2007 de un hombre en Sahuayo de Morales, Michoacán, anunció el Procurador Federal Benjamín B. Wagner.
Según la petición para la extradición presentada por México, Jesús Flores Buenrostro es acusado de homicidio después de haber presuntamente disparado a un hombre el 30 de abril del 2007. Según las declaraciones de testigos presénciales, Jesús Flores Buenrostro y unos compañeros fueron a una plaza en el pueblo por la tarde donde horas antes se había desatado una pelea callejera. Cuando llegaron a la plaza, Jesús Flores Buenrostro y sus compañeros se encontraron con un grupo de hombres. Jesús Flores Buenrostro cargó un arma de fuego y disparó dos veces contra el grupo de hombres. La víctima fue alcanzada dos veces por los disparos y falleció a causa de las heridas. Jesús Flores Buenrostro, de ciudadanía Americana, huyó a los Estados Unidos.
El Servicio del Mariscal de los Estados Unidos arrestó a Jesús Flores Buenrostro en Kern County en julio del 2015. El 15 de diciembre del 2015, después de los trámites legales llevados a cabo por el tribunal federal de Fresno, el tribunal certificó su capacidad de ser extraditado a México.
“Al igual que nosotros pedimos la cooperación de México para la extradición de aquellos que violan nuestras leyes, ese país busca al nuestro para la extradición de aquellos que violan sus leyes,” declaró el Procurador Federal Wagner. “Tenemos el interés mutuo de asegurar que ninguno de los países sea un refugio seguro para aquellos que estén huyendo de la justicia hacia el otro.”
Este caso ha sido despachado por el Procurador Federal Auxiliar Daniel Griffin del Distrito Este de California, la Oficina de Asuntos Internacionales de la División Criminal del Departamento de Justicia y el Servicio del Mariscal de los Estados Unidos.
Newton, N.C. Man Pleads Guilty to Three Bank RobberiesRead the Press Release
CHARLOTTE, N.C. – A Newton, N.C. man appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to robbing three BB&T Bank branches in 2014, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina and Chief Tracy Ledford of the Maiden Police Department.
A federal criminal indictment was filed on September 16, 2015, charging Joshua Paul Wilson, 33, with three counts of bank robbery, stemming from the bank robberies he carried out between April and June 2014.Court records show that on April 2, 2014, Wilson robbed a BB&T branch located in Maiden, N.C.Then on May 20, 2014, Wilson robbed a second BB&T branch, located in Claremont, N.C.Wilson robbed the third BB&T branch in Valdese, N.C. on June 14, 2014.According to court records and today’s plea hearing, Wilson entered each of the three bank branches wearing a hat and dark sunglasses and obtained money by intimidating the bank tellers. Wilson took $1,579 from the Maiden branch, $3,990 from the Claremont branch, and $8,927 from the Valdese branch.
Wilson is currently in federal custody.The statutory maximum sentence for each bank robbery charge is 20 years in prison and a $250,000 fine.A sentencing hearing for the defendant has not been scheduled yet.
The investigation was handled by the FBI and Maiden Police Department.In making today’s announcement U.S. Attorney Rose thanked the Claremont and Valdese Police Departments and the Catawba County Sheriff’s Office for their assistance with the investigation.
The prosecution is being handled for the government by Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte.
New Jersey Man Sentenced to Five Years in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Orange, New Jersey man was sentenced to five years in prison today by Senior U.S. District Court Judge James M. Munley in Scranton, for participating in a heroin trafficking conspiracy that operated in Luzerne County during February through October 2014.
According to United States Attorney Peter Smith, the defendant, Antuan Jamison, age 36, previously pleaded guilty to conspiring with others from Luzerne County, New Jersey, and Alabama, to distribute heroin to customers in the Luzerne County area. Agents seized more than 250 bags of heroin from Jamison and several associates in October 2014, and Jamison admitted to distributing between 100 and 400 grams of heroin, which is equivalent to approximately 3500 to 14,000 bags of heroin, to sub-distributors in Luzerne County.
Jamison was indicted by a federal grand jury in Scranton in October 2014, as a result of an investigation by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kingston Police, Plymouth Police and the Luzerne County District Attorney’s Office.
Judge Munley also ordered Jamison to forfeit his interest in more than $7000 in cash and a vehicle seized during the investigation. Jamison was ordered to be placed on three years of supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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New Jersey Man Indicted for Wire FraudRead the Press Release
ALBANY, NEW YORK - Michael Pampalone, age 32, of Elizabeth, New Jersey, was arraigned yesterday on an indictment charging him with two counts of wire fraud for stealing $132,450 from an East Greenbush, New York man.
The announcement was made by United States Attorney Richard S. Hartunian, New York State Police Superintendent Joseph A. D’Amico, and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
The indictment alleges that Pampalone, a former mortgage broker, stole $132,450 from an East Greenbush man who hired Pampalone to help him obtain a mortgage. According to the indictment, Pampalone instructed the victim to wire funds to a New Jersey bank account, and then, after the wires were completed, stole the money.
Pampalone faces up to 20 years of imprisonment and a $250,000 fine, if convicted. Pampalone, who was indicted on December 23, 2015, was arraigned on January 4, 2016 before Magistrate Judge Daniel J. Stewart. He was released on a bond pending a trial scheduled for March 7, 2016 before District Judge Mae A. D’Agostino.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the New York State Police and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
New Haven Man Sentenced to 3 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that TOMMY BATTLE, 35, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on April 22, 2015, a search was conducted at the residence of BATTLE, who was a parolee. During the search, a parole officer discovered a 9mm semi-automatic handgun, which contained a magazine that held 10 9mm rounds. The firearm was manufactured outside of the U.S. and was previously reported stolen out of the State of Virginia.
BATTLE’s criminal history includes multiple felony convictions, including a conviction for criminal possession of a weapon. He had been released from state incarceration approximately two months prior to the search of his residence.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BATTLE has been detained since his arrest on April 22, 2015. On October 1, 2015, he pleaded guilty to one count of unlawful possession of a firearm by a convicted felon.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
Nashville Pharmacy Services Settles False Claims Act LawsuitRead the Press Release
Nashville Pharmacy Services, LLC, and its majority owner Kevin Hartman have agreed to pay up to $7.8 million to settle allegations that they overbilled Medicare and TennCare for pharmacy services, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Nashville Pharmacy Services’ primary location is at 100 Oaks in Nashville, Tenn. and it specializes in dispensing HIV and AIDS-related medications.
“Pursuing individuals and corporations who engage in healthcare fraud remains a top priority of the U.S. Attorney’s Office,” said U.S. Attorney David Rivera. “We remain committed to working with our state and federal partners to hold those accountable who attempt to profit at the expense of taxpayers and compromise the integrity of our healthcare programs.”
The settlement resolves the government’s allegations that Nashville Pharmacy Services submitted false claims to TennCare and Medicare primarily during the period from February 2011 through May 2012. The government’s lawsuit alleged that Nashville Pharmacy Services engaged in the following conduct:
- automatically refilled medications without a request from the beneficiary, their physician, or a person acting as the beneficiary’s agent, in violation of TennCare’s contractual requirements;
- routinely and improperly waived TennCare and Medicare co-payments without an individualized assessment of those beneficiaries’ inability to pay;
- improperly used pharmaceutical manufacturers’ co-payment cards to pay the co-payments of certain Medicare recipients for thirteen Medicare beneficiaries;
- billed Medicare and TennCare for certain medications that were dispensed after the dates of death of 15 beneficiaries with either Medicare or TennCare coverage; and
- billed Medicare or TennCare for medications that lacked a valid prescription from a licensed provider for 22 beneficiaries with either Medicare or TennCare coverage.
“This is a great example of the U.S. Attorney’s Office and our office working together to address fraud in our government healthcare programs,” said Tennessee Attorney General Herbert H. Slatery III. “Pursuing those who knowingly take advantage of the system serves as a deterrent and helps protect funding for our most vulnerable citizens.”
Under the settlement agreement, Nashville Pharmacy Services has already paid $500,000 to the government and will make additional contingency payments to the government for the next five years. The total payments will depend on Nashville Pharmacy Services’ revenue for each year during that period and could ultimately amount to $7.8 million. Of that amount, the United States will receive roughly 49 percent of the recovery, and the State of Tennessee will receive roughly 33 percent of the recovery.
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against Nashville Pharmacy Services by Marsha McCullough, a former order entry technician who worked for Nashville Pharmacy Services from May 2011 through July 2012. She brought her claims under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. McCullough could receive up to $1.4 million as her share of the settlement.
The case was handled by the United States’ Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by U.S. Department of Health & Human Services Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States. Assistant Attorney General Mary McCullohs represented Tennessee.
The case is docketed as United States ex rel. McCullough v. Nashville Pharmacy Services, LLC, No. 3:12-cv-0823 (M.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Nampa Man Pleads Guilty to Possession of Meth for Distribution and Unlawful Possession of a FirearmRead the Press Release
BOISE – Indalecio Cuevas-Figueroa, 34, of Nampa, Idaho, pleaded guilty today to possession of methamphetamine with intent to distribute and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Cuevas-Figueroa was indicted by a federal grand jury on January 14, 2015.
According to court documents, in 2013 and 2014, Nampa Police detectives made several “controlled buys” of methamphetamine from Cuevas-Figueroa. During one of the controlled buys, Cuevas-Figueroa also sold a Browning 9mm semi-automatic pistol. Cuevas-Figueroa is prohibited from possessing a firearm because he is a Mexican national residing unlawfully in the United States. On October 15, 2014, defendant Cuevas-Figueroa sold approximately 108.3 grams of methamphetamine. Resulting lab tests showed that this was 96.8% pure. The total amount of actual methamphetamine attributable to Cuevas-Figueroa is approximately 131 grams.
Possession of more than 50 grams of methamphetamine with intent to distribute is punishable by a minimum term of 10 years up to life in prison, and a $10,000,000 fine. Possession of a firearm by a prohibited person is punishable by up to 10 years in prison and a $250,000 fine
The case was investigated by the City County Narcotics Unit and the Drug Enforcement Administration.
Monmouth County Man Charged with Illegally Possessing Machine GunsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today made his initial appearance in federal court on charges that he possessed 36 machine guns, which are illegal under federal law, U.S. Attorney Paul J. Fishman announced.
John Lafergola, 52, of Millstone Township, New Jersey, was charged by complaint with knowingly possessing machine guns, defined as a weapon that can shoot automatically more than one shot, without manual reloading, by a single function of the trigger. Lafergola appeared today before U.S. Magistrate Judge Lois H. Goodman and was detained without bail.
According to the documents filed in this case and statements made in court:
In the early morning of Oct. 5, 2014, law enforcement officers responded to a call from Lafergola’s residence, where they learned he allegedly pointed a handgun at another member of his household. It was learned that possessed 72 firearms – including 36 machine guns – and dozens of firearms components, ammunition, accessories, and manufacturing tools.
Of those 36 machine guns, 13 were found to be operational as automatic weapons, each of which was found to have been assembled out of separate components, including a machine gun receiver of unknown origin, including:
- A 9 mm Luger caliber, FBP M948-type firearm, 31 ½ inches long, bearing no serial number nor manufacturer’s marks of identification;
- A 9 mm Luger caliber, Suomi M31-type firearm, 34 inches long, and bearing no manufacturer’s marks of identification;
- A 7.62x25 mm caliber, M56-type firearm, 34 ½ long, bearing no serial number nor manufacturer’s marks of identification.
Lafergola also was found to be in possession of three short-barreled rifles, including one that had an obliterated serial number; two silencers; and items determined by local law enforcement to be non-smoke gunpowder, fuses, other materials that could be used to make explosive devices, and explosive devices.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, and the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent, with the investigation leading to the charges. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccioni, for its role in the case.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Evan Nappen Esq., Eatontown, New Jersey
Meridian Man Sentenced to Prison for Unlawful Possession of FirearmsRead the Press Release
BOISE – Jeffrey Southern, 47 of Meridian, Idaho, was sentenced today to 12 months and one day in prison for unlawfully possessing three firearms, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Southern to serve three years of supervised release following his prison term. Southern pleaded guilty to the charge on August 26, 2015.
According to court documents, law enforcement reported to a residence in Meridian to investigate a dispute over a custodial exchange. During the investigation, Southern admitted to officers that he was a felon and owned some firearms. Law enforcement went into Southern’s residence and located three firearms. Southern had a prior felony conviction for assault out of California and had been sentenced to ten years of prison in that case. Because of his prior felony conviction, Southern was prohibited from possessing firearms.
The case was investigated by the Meridian Police Department and the Treasure Valley Metro Violent Crimes Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Canyon County Prosecutor’s Office, the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
McLaughlin Man Sentenced for Assault of an Intimate Partner by StrangulationRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Assault of an Intimate Partner by Strangulation was sentenced on January 4, 2016, by U.S. District Judge Charles B. Kornmann.
Brett Claymore, age 22, was sentenced to 30 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Claymore was indicted by a federal grand jury on May 12, 2015. He pled guilty on October 27, 2015.
The conviction stems from an incident on April 22, 2015, when Bureau of Indian Affairs (BIA) law enforcement was dispatched to a residence in McLaughlin, due to a domestic disturbance call. Upon arrival, law enforcement made contact with the victim who informed the officer that she had gotten into an argument with Claymore. The victim advised the officer that she and Claymore had been in a dating relationship for the past three years.
Another law enforcement officer arrived on scene and asked the victim if a physical altercation had occurred. The officer told her to be honest, because he had heard that Claymore had “choked” her. The victim looked surprised, put her head down towards her chest, and began to cry. The victim then indicated, by placing her hands around her neck, that she was grabbed around her neck and “choked” by Claymore.
The victim said that Claymore held her against the wall with both hands around her neck, “choking her.” The victim denied that she lost consciousness, but did state that she felt like she was going to “blackout” with blurred vision. The victim stated she was unable to breathe or speak to tell Claymore to stop, so she started hitting his arms to get him to stop.
Other witnesses who were present when the assault occurred described hearing the victim arguing with Claymore, when suddenly the arguing stopped and they could hear “choking” noises coming from the room. Immediately following the assault, the witnesses noticed that the victim’s face was flushed and her neck appeared to be red.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Claymore was immediately turned over to the custody of the U.S. Marshals Service.
Mastermind of Multi-Million Dollar Real Estate Fraud Pleads GuiltyRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Andrew Galvin (619) 546-9721
NEWS RELEASE SUMMARY – January 5, 2016
SAN DIEGO – Mazen Alzoubi, a real estate investor, admitted today that he orchestrated a scheme to steal title to Southern California homes and then sell the properties to unsuspecting buyers before the true owners could put a stop to the sale.
Alzoubi admitted that from May 2012 through August 2014, he and several co-conspirators fraudulently sold or attempted to sell at least 15 homes worth more than $3.6 million. On at least ten occasions, Alzoubi admitted, he was successful—earning illicit proceeds of nearly $2.2 million, which he then laundered and diverted to overseas bank accounts to ensure that the fraudulently-obtained proceeds could never be recovered.
Alzoubi and his co-conspirators, including Daniel Deaibes and Mohamed Daoud, would generate forged trust deeds, making it appear that the true owner had sold the home to a business Alzoubi controlled, when, in reality, the true owners were entirely unaware of Alzoubi’s actions. They would then record the fraudulent grant deeds at county recorder’s offices, so the deeds appeared legitimate. Once the fraudulent documents were recorded in the chain of title, Alzoubi would pose as the owner and immediately try to sell the properties. Alzoubi used a web of aliases (including “John Moran,” “Enrique Lopez,” “Dan Cox,” and “Zubu Wawa”) and a host of sham businesses (with names like “Land Investments 01”) to pose as the owner of properties he listed for sale. Alzoubi and his co-conspirators set up bank accounts for the sham companies, so that the proceeds could be diverted directly to them. In this way, Alzoubi collected all the sale proceeds, and the true owners were left with nothing.
In some cases, the real owners discovered the fraud, and made efforts to re-gain control of their property. In one instance, true owner Fannie Mae discovered that a fraudulent grant deed had been recorded relating to property it owned in Rowland Heights, California. Shortly after discovering the fraudulent deed, Fannie Mae filed a lawsuit to recover control over the property and recorded a lis pendens, notifying prospective buyers that Fannie Mae was challenging the fraudulent deed. Undeterred, Alzoubi and his co‑schemers created a fake “Withdrawal of Lis Pendens” in an effort to proceed with their fraudulent sale. When Fannie Mae won a judgment in its favor and obtained a court finding that the deed was fraudulent, Alzoubi and his co-schemers created a fake “Satisfaction of Judgment” and recorded that fraudulent document as well.
Alzoubi and his co-conspirators assumed the identities of others in order to keep the scheme going, and used the forged signatures and notary stamps of notaries to make fake documents look legitimate, and of lawyers to prepare and file fraudulent court documents. As a result, Alzoubi was charged with, and pleaded guilty to, aggravated identity theft, which carries a mandatory sentence of two years in prison in addition to his sentence for the fraud and money laundering.
Alzoubi’s co-conspirator Daniel Deaibes pleaded guilty in March 2015. As part of his plea, Deaibes admitted that he participated in the scheme according to Alzoubi’s directions. He used the alias “John Moran” to pose as the seller’s representative in several of the fraudulent sales. Deaibes went so far as to introduce himself as “Moran” and present a fake driver’s license to two notaries public in 2014. He admitted that he signed fraudulent documents using this alias in an effort to sell or encumber properties that belonged to unsuspecting owners.
Mohamed Daoud also pleaded guilty, in July 2015, admitting that he helped Alzoubi launder the proceeds of the scheme. Alzoubi used Daoud’s company, “Norway LLC,” to pretend to acquire title to some of the properties, by forging fake deeds and then recording the forgeries at county recorder’s offices. Daoud admitted that during his participation in the money laundering conspiracy, Alzoubi induced at least six different buyers to purchase properties he did not own, leaving them with worthless claims to title and generating at least $1.4 million in proceeds from the fraud. Daoud received approximately $270,000 of the proceeds.
Alzoubi, and his co-conspirators generated nearly $2.2 million in profits from the scheme. In each case, the unwitting third party buyer paid for homes Alzoubi and his co-schemers pretended to lawfully own. Most of these properties were post-foreclosure properties owned by banks or institutions such as Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac are government-sponsored enterprises with a mission to provide liquidity, stability, and affordability to the United States housing and mortgage markets. As part of this mission, Fannie Mae and Freddie Mac purchase residential mortgages in the secondary market, enabling lenders to replenish their funds to finance additional single family loans. Fannie Mae and Freddie Mac can become the property owners if they own the mortgage loan at the time a home is foreclosed.
“We are committed to protecting the recovering housing market and the public’s confidence in the security of their most important investment, their homes,” said U.S. Attorney Laura Duffy. “Prosecuting people who continue to prey on and profit from the devastating mortgage meltdown is a top priority because they play such a significant role in our nation’s financial turmoil, and because the economic damage to taxpayers is immense.”
Federal Housing Finance Agency – Office of Inspector General Special Agent in Charge Leslie DeMarco said, “We will not let individuals such as Mazen Alzoubi chip away at the housing market nor the taxpayers who ultimately bear the burden of such ludicrous schemes. The actions of Alzoubi and his co-conspirators were brazen and we are committed to finding justice for all who were harmed.”
“As admitted in court today, Mr. Alzoubi and his co-conspirators sold fraudulently obtained homes to unsuspecting buyers for their own personal gain while attempting to hide the profits in offshore bank accounts,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “Our agency is committed to unraveling complex identity theft and money laundering schemes where individuals attempt to conceal the true source of their illicit funds.”
“Sophisticated financial fraud schemes cost American taxpayers millions of dollars each year,” commented FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI is resolute in using our intelligence and investigative expertise to mitigate complex financial fraud schemes that threaten our financial system.”
Alzoubi’s guilty plea was taken before U.S. Magistrate Judge Jan M. Adler. Alzoubi is scheduled to be sentenced by U.S. District Judge Cynthia Bashant on March 21, 2016 at 9 a.m. Daoud’s sentencing is scheduled for the same date and time, and Deaibes’s sentencing is slated for May 23, 2016 at 9:00 am, both also before Judge Bashant.
U.S. Attorney Duffy explained that the American public is the very real victim of this type of destructive fraud that is impeding the country’s ability to recover from the economic collapse of 2008. She emphasized that her office would aggressively prosecute such crimes and urged anyone in the community who has information relating to these charges to contact the San Diego branch of the Federal Bureau of Investigation at (858) 320-1800 or the Federal Housing Finance Agency—Office of Inspector General hotline at (800) 793-7724.
The swift resolution of this case was the result of coordinated investigations by the FBI, FHFA-OIG, and the Internal Revenue Service, Criminal Investigation Division.
DEFENDANT PLEADING GUILTY:
Mazen Alzoubi, 14CR3325-BAS Age: 32 Rancho Cucamonga, CA
CHARGES
COUNT ONE: Conspiracy to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution, and forfeiture.
COUNT TWO: Mail fraud, in violation of 18 U.S.C. § 1341.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.
COUNTS THREE AND FOUR: Aggravated identity theft, in violation of 18 U.S.C. § 1028A.
Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.
COUNT FIVE: Conspiracy to launder money, in violation of 18 U.S.C. § 1956(h).
Maximum Penalties: 20 years’ imprisonment, $500,000 fine or twice the value of the property involved in the transaction, $100 special assessment, restitution, and forfeiture.
DEFENDANTS PREVIOUSLY CHARGED:
Daniel Deaibes, 14CR3325-BAS Age: 37 Rancho Cucamonga, CA
Mail fraud, 18 U.S.C. § 1341
Mohamed Daoud, 14CR3326-BAS Age: 50 Norway
Conspiracy to launder money, 18 U.S.C. § 1956(h)
AGENCIES
Federal Housing Finance Agency—Office of Inspector General
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation