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Monday 9 November 2015
Guilty Verdict Against Essex County, New Jersey, Man for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was convicted today by a federal jury of possessing a firearm as a previously convicted felon, U.S. Attorney Paul J. Fishman announced.
Caliph Barr, 25, was convicted of possessing a firearm despite his previous conviction in Essex County Superior Court. Barr was convicted today following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated for two hours before returning the verdict.
According to documents filed in this case and the evidence at trial, on June 2, 2014, Barr was found in possession of a Russian Nagant .32 caliber revolver along with six rounds of ammunition.
The charge of which Barr was convicted carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is not yet scheduled.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Courtney A. Howard and David Feder of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defenders K. Anthony Thomas Esq. & Carol Gillen Esq., Newark
Frederick Man Pleads Guilty to Fire Bombing of Loudoun County Government BuildingRead the Press Release
ALEXANDRIA, Va. – Jonathan Ernesto Godoy, 25, of Frederick, Maryland, pleaded guilty today to charges relating to a November 2012 arson at the Loudoun County Department of Community Corrections building.
According to court documents and court proceedings, in the fall of 2012, Godoy was on supervised probation in Loudoun County stemming from possession of narcotics charges. In danger of violating his conditions of probation due to missed appointments, adulterated urine samples, and positive drug tests, Godoy, along with a co-conspirator, made two destructive devices using glass bottles, gasoline, and scraps of cotton t-shirt, commonly known as “Molotov cocktails,” and attempted to throw the devices into Godoy’s probation officer’s window.
According to court documents, at least one of the devices exploded inside of the Loudoun County Department of Corrections building and caused severe fire damage. The fire, which occurred during the early morning hours of Nov. 14, 2012, caused such destruction that the occupants of the Corrections building had to move to an alternate location. The fire caused over $300,000 in property damage and relocation costs.
In July 2014, Godoy was served with four felony state warrants related to the fire at the probation office, and he was incarcerated at the Loudoun County Adult Detention Center. While there, in a series of telephone calls and letters, Godoy expressed his belief that if his friend and a Loudoun County Assistant Fire Marshal, who was involved in the investigation, were eliminated as witnesses, then the criminal case against him would collapse. Thereafter, Godoy solicited a fellow inmate to murder the two. Unbeknownst to Godoy, however, the fellow inmate was cooperating with law enforcement and kept them informed of Godoy’s plot.
Godoy was indicted by a federal grand jury on Sept. 8, 2015, and he pleaded guilty to one count of conducting an arson affecting interstate commerce and one count of using a fire or explosive device in the commission of a felony. Godoy faces a mandatory minimum term of 15 years in prison and a maximum penalty of 20 years in prison when he is sentenced on Feb. 19, 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Linda Hale, Chief Fire Marshal, Loudoun County Department of Fire, Rescue, and Emergency Management; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Michael E. Rich and William M. Sloan are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-234.
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Former Religious Services Worker at Federal Jail Pleads Guilty to Passing Unauthorized Information and Benefits to InmatesRead the Press Release
CHICAGO — A former religious services assistant at the downtown Metropolitan Correctional Center pleaded guilty today to providing sensitive information to inmates about fellow prisoners in the federal corrections system.
TOMMY HAIRE, 34, performed unauthorized searches on the MCC’s internal computer system to obtain personal information about several prisoners being housed elsewhere, and then relayed that information to inmates in the MCC, according to a plea agreement. The searches revealed various data, including the outside inmates’ psychological information, their status as sex offenders, their location within the prison system, and other personal identifying items. Haire admitted in the plea agreement that such information would be valuable to the MCC inmates as a means of extorting the other prisoners or for committing identity and tax fraud against them.
Haire, of Chicago, pleaded guilty to one misdemeanor count of conversion of government property. The charge carries a maximum sentence of one year in prison and a maximum fine of $100,000. U.S. Magistrate Judge Michael T. Mason scheduled a sentencing hearing for February 2, 2016.
In addition to obtaining the sensitive information of other prisoners, Haire also used his position to provide perks to MCC inmates. According to the plea agreement, Haire allowed the inmates to use his computer to surf the Internet, and to use his cellular phone to place calls outside of the jail. He also mailed letters on behalf of inmates, in violation of the MCC’s rules on screening prisoners’ correspondence.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John F. Oleskowicz, Special Agent-in-Charge of the U.S. Department of Justice, Office of the Inspector General, Chicago Field Office.
The government is represented by Assistant United States Attorneys Lindsay Jenkins and Maureen Merin.
Plea Agreement
Former High School Teacher Sentenced to 45 Months in Prison for Possessing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Peter Flynn, age 61, of Silver Spring, Maryland today to 45 months in prison, followed by 15 years of supervised release, for possessing child pornography. Judge Hazel also ordered Flynn to pay a fine of $12,500.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Flynn is a former special education teacher in Montgomery County. According to his plea agreement, on April 3, 2014, a Maryland State Police Corporal was conducting an online investigation into individuals sharing child pornography on a file sharing network. The MSP Corporal downloaded approximately 205 images and videos of children engaged in sexually explicit conduct that Flynn made available through the file sharing network.
On September 30, 2014, law enforcement executed a search warrant at Flynn’s residence and seized two computers from his basement. Flynn also agreed to be interviewed and admitted that law enforcement would find child pornography on his computer. A subsequent forensic analysis revealed approximately 28,785 images and 795 videos of child pornography and child erotica on the two computers, the majority of which constituted child pornography. Some of the images documented the sexual abuse of prepubescent children, including bondage and violence.
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 Maryland State Police Internet Crimes Against Children Task Force and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Former Employee of the Scottsville Baptist Church Charged with Embezzling More Than $270,000 to Pay for Personal ExpensesRead the Press Release
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. announced the recent charge by Information of an Allen County, Kentucky woman with three counts of wire fraud for embezzling more than $270,000 from her former employer, the Scottsville Baptist Church.
According to the charges, Patricia Barlow, age 49, was a secretary at the Scottsville Baptist Church (SBC), located at 301 East Main Street, in Scottsville, Kentucky, and on numerous occasions made unauthorized wire transfers to pay for personal expenses using SBC funds. The alleged scheme to defraud SBC occurred between January 7, 2011 and January 18, 2015. Three of the alleged wire transfers were made on January 1, 2007, in the amount of $512.29; January 14, 2011, in the amount of $1,400; and a wire transfer of $425.00 on January 28, 2015.
If convicted at trial, Barlow could be sentenced to no more than 20 years in prison, fined $250,000, ordered to serve a three year period of supervised release and a payment of restitution.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Secret Service and Scottsville (Kentucky) Police Department.
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The charge of a person by an Information is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Canaan Man Sentenced to over Six Years for Cocaine and Oxycodone DistributionRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Frank Curtis, 35, formerly of Canaan, Maine, was sentenced today U.S. District Court by Judge John A. Woodcock, Jr., to 80 months in prison and three years of supervised release for conspiring to possess with the intent to distribute and to distribute cocaine and oxycodone.
According to court records, between January 2010 and March 2012, Curtis conspired with Maurice McCray, William Waters and others in Waterville, Maine and surrounding communities. Curtis, McCray and Waters would obtain the drugs from out of state sources, have them transported to Central Maine, and then distribute the drugs. Curtis is the twenty second person to be convicted and sentenced in the federal investigation into drug distribution in the Waterville, Maine area.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Waterville Police Department.
Florida Man Pleads Guilty to Investment Fraud ConspiracyRead the Press Release
SYRACUSE, NEW YORK –Burton Greenberg, 75, of Plantation, Florida pled guilty on November 6, 2015, in Federal Court in Fort Lauderdale, Florida to a Northern District of New York indictment charging him with conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent In Charge Andrew W. Vale. Greenberg faces a maximum term of twenty years imprisonment, a fine of up to $250,000, an order of restitution in the amount of over $10 million and a forfeiture money judgment of over $10 million. Sentencing is scheduled for January 22, 2016 in federal court in Fort Lauderdale, Florida.
Greenberg is President/CEO of M&P Global Financial Services, Incorporated, a Florida based corporation that entered into agreements in 2001 with Global Financial Fund 8, LLP, a company that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. As part of his guilty plea, Greenberg admitted that rather than investing the money in a secure investment as promised, he instead used the funds to make separate investments on his own behalf. In an effort to avoid detection and allow him to continue to divert money for his own use, Greenberg helped orchestrate the payment of phony "profit" distributions to investors in 2004 and 2005 which were merely a partial return of their principal investment. Further, from 2004 to 2013 Greenberg repeatedly assured the investors via e-mail that their investments were secure and profitable when he knew this was false.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.
Executive Office for Immigration Review Swears in Two Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of two immigration judges. Acting Chief Immigration Judge Print Maggard presided over the investiture during a ceremony held Nov. 6, 2015, at the U.S. Court of Appeals for the Armed Forces in Washington D.C.
After a thorough application process, then-Attorney General Eric H. Holder Jr. appointed Daniel J. Daugherty to his new position, and Attorney General Loretta E. Lynch appointed Jonathan S. Simpson to his new position.
“We are committed to an effective and efficient immigration court process and we are happy that Congress has given us the funding to hire additional immigration judges, as well as the support staff they need,” said Maggard. “These new immigration judges, along with their 19 colleagues who were invested in June, strengthen our immigration judge corps and will help our agency work towards decreasing our current backlog of more than 450,000 pending cases.”
Daniel J. Daugherty, Immigration Judge, Las Vegas Immigration Court
Attorney General Eric H. Holder Jr. appointed Judge Daugherty to begin hearing cases in November 2015. Judge Daugherty received a Bachelor of Science degree in 1984 from Defiance College and a Juris Doctor in 1987 from the University of Toledo, College of Law. From 2008 through 2015 and 2002 through 2005, Judge Daugherty was a member of the Navy-Marine Corps Trial Judiciary, serving in capacities including chief trial judge and circuit judge. Prior to 2008, and when not serving as a member of the Navy-Marine Corps Trial Judiciary, Judge Daugherty served in the Marine Corps in various capacities including deputy staff judge advocate, chief trial counsel (prosecution), prosecutor, senior defense counsel, defense counsel, and special assistant U.S. attorney. Judge Daugherty also has provided legal services in a number of other positions within the Marine Corps and has served as an assistant county prosecutor. Judge Daugherty is a member of the Ohio Bar.
Jonathan S. Simpson, Immigration Judge, San Francisco Immigration Court
Attorney General Loretta E. Lynch appointed Judge Simpson to begin hearing cases in November 2015. Judge Simpson received a Bachelor of Arts degree in 1995 from Wabash College and a Juris Doctor in 1998 from Seton Hall University. From 2006 through September 2015, Judge Simpson served as assistant chief counsel, U.S. Immigration and Customs Enforcement, Department of Homeland Security, in Los Angeles and San Diego, Calif. From 1997 through 2006, both domestically and abroad, Judge Simpson served in various capacities as a member of the U.S. Navy’s Judge Advocate General’s Corps, including branch chief, officer in charge, and attorney. Judge Simpson is a member of the New Jersey Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Doña Ana County Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Mark Jessie Rodriguez, 25, of Las Cruces, N.M., was sentenced today in Las Cruces federal court to 108 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Rodriguez and co-defendant Derek Cruz Rubalcava, 25, also of Las Cruces, were arrested on a criminal complaint on July 25, 2014, in Doña Ana County, N.M. The two men subsequently were indicted on methamphetamine trafficking charges in a four-count indictment filed in Nov. 2014.
Count 1 of the indictment charged Rubalcava and Rodriguez with conspiracy to distribute methamphetamine in July 2014. Count 2 charged Rubalcava with distributing methamphetamine on July 24, 2014. Counts 3 and 4 each charged Rubalcava with possessing methamphetamine with intent to distribute on July 25, 2014. According to the indictment, the two men committed these crimes in Doña Ana County, N.M.
On Jan. 6, 2015, Rodriguez entered a guilty plea to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Rodriguez admitted supplying the methamphetamine that Rubalcava sold to the undercover agent on July 24, 2014. He also admitted supplying the methamphetamine seized from Rubalcava and from Rubalcava’s residence on July 25, 2014.
Rubalcava also pled guilty on Jan. 6, 2015, to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Rubalcava admitted selling approximately six ounces of methamphetamine to an undercover FBI agent for $4,600.00 on July 24, 2014. Rubalcava also admitted negotiating the sale of approximately eight ounces of methamphetamine to the same FBI agent for $6,400.00. He was arrested before the transaction was completed. At the time of his arrest, Rubalcava was in possession of a portion of the methamphetamine that he intended to sell to the FBI agent and the rest of the methamphetamine was seized from his residence pursuant to a search warrant. Rubalcava was sentenced on Oct. 8, 2015.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Detroit man sentenced in Federal court for selling heroinRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who sold heroin to undercover agents on multiple occasions in March of 2015 was sentenced today in federal court in Huntington, West Virginia, to two years and three months in federal prison, announced United States Attorney Booth Goodwin. Bryant D. Long, II, 29, of Detroit, previously pleaded guilty to distributing heroin.
On March 13, 2015, Long agreed to meet with undercover Drug Enforcement Administration (DEA) agents in Huntington, where he sold them 8.5 grams of heroin for $1,200. During the meeting, Long also made arrangements with the agents for future heroin sales. The heroin distributed by Long was confirmed through laboratory testing to contain heroin and Fentanyl, a schedule II painkiller that is particularly dangerous when mixed with heroin. On March 23, 2015, Long met with agents again, and sold an additional 9.8 grams of heroin in exchange for $1,250.
On March 30, 2015, Long was arrested after agents executed a search warrant at 504 Marcum Terrace in Huntington. Agents seized additional heroin during the search and Long admitted that he had been in Huntington for the prior month distributing heroin and crack cocaine.
The United States Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The 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 opiate painkillers and heroin in communities across the Southern District.
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Delaware Port Employee Admits to Drug ChargesRead the Press Release
PHILADELPHIA - Ronald Mays, 63, of Wilmington, Delaware, pleaded guilty today to three counts of attempted possession of cocaine with intent to distribute. Mays worked for the Port of Wilmington in Delaware at the time. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for February 11, 2016. Mays faces a possible advisory sentencing guideline range of 57 to 71 months in prison.
Mays was working at the Port of Wilmington in Delaware and had access to the ships that came into the port. In October of 2013, agents with Homeland Security Investigations were investigating possible drug smuggling involving ships that traveled to the port from countries in Central and South America. After a cooperating defendant contacted Mays and told Mays that a group of traffickers that they both knew would resume running drugs out of the port, Mays agreed to look in to security at the port. Mays and the cooperating defendant had several meetings about unloading the drugs from a ship and also conducted a dry run. On December 29, 2013, an HSI special agent placed sham cocaine in a container on a ship docked at the Port of Wilmington. On January 6, 2014, Mays told the cooperating defendant that he had the drugs and the two met for Mays to deliver the package. Similar transactions were completed in February and March of 2014, with Mays receiving a total of $24,000 to retrieve 12 kilos of what he believed was cocaine from ships docked at the port. After the March transaction, officers followed Mays and pulled him over on I-95.
In addition to the prison term, Mays faces possible fines, at least four years of supervised release, and a special assessment of $300.
The case was investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
Cranberry Twp. Woman Charged with Defrauding Allegheny Valley BankRead the Press Release
PITTSBURGH – A Butler County resident has been indicted by a federal grand jury in Pittsburgh on a charge of bank fraud, United States Attorney David J. Hickton announced today.
The one-count indictment named Jennifer Colamarino, 33, of Cranberry Township, Pa., as the sole defendant.
According to the indictment, from October 2014 through March 2015, Colamarino defrauded Allegheny Valley Bank by using a closed PNC Bank account to make approximately 94 online payments towards her husband’s Allegheny Valley Bank credit card account. Colamarino then used the Allegheny Valley Bank credit card at various locations to make numerous purchases. During the relevant time period, Colamarino made no legitimate payments towards the Allegheny Valley Bank credit card account, and Allegheny Valley Bank suffered a loss of approximately $62,842.57 as a result of the fraud.
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 Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Conspirator Admits to Kidnapping and Brandishing a Gun in Connection with the Robbery of a Pikesville Jewelry StoreRead the Press Release
Baltimore, Maryland – Igor Yasinov, age 26, of Baltimore, Maryland, pleaded guilty on November 6, 2015, to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a carjacking and kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Yasinov was part of a conspiracy to rob a Pikesville jewelry store. Specifically, in the fall of 2012, a co-conspirator devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore.
A co-conspirator recruited Yasinov, Peter Magnis, Grigoriy Zilberman and others to participate in the robbery. In preparation for the robbery, on December 25, 2012, Yasinov and others committed a burglary of a residence in Baltimore, during which they stole a shotgun and semiautomatic handgun. The handgun was used in the robbery of the jewelry store on January 16, 2013. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee. Yasinov participated in the obtaining of two rental vehicles for use during the crime.
According to Yasinov’s plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. Early in the morning on January 16, 2013, as the employee was driving from Zilberman’s home, Yasinov, Magnis and two other co-conspirators driving in one of the rental cars obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, Yasinov, Magnis and the other co-conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. According to the plea agreement, once at the location, Yasinov and the co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., two co-conspirators drove the employee’s vehicle from the remote location to the jewelry store, while Yasinov and Magnis stayed with the employee. While they were with the employee, Yasinov and Magnis brandished a sawed-off shotgun. Additional co-conspirators were stationed near the jewelry store to act as “look-outs.” Two co-conspirators entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, the conspirator traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Yasinov received more than $5,000 for his role in the crimes.
Yasinov faces a maximum sentence of 20 years in prison for the robbery conspiracy; a maximum of life in prison for kidnapping; and a minimum mandatory sentence of seven years, and a maximum of life in prison for branishing a firearm in relation to a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 8, 2016 at 9:30 a.m.
Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, and Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, previously pleaded guilty to their roles in the robbery conspiracy and are scheduled to be sentenced on December 18, and December 22, 2015, respectively.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Charleston man pleads guilty in Federal court to murdering witnessRead the Press Release
CHARLESTON, W.Va. – A Charleston man who murdered a witness against him pleaded guilty today, announced United States Attorney Booth Goodwin. Marlon Dewayne Dixon, 39, entered his guilty plea in federal court in Charleston, West Virginia, to witness tampering by killing.
At approximately 3:00 a.m. on July 12, 2014, Dixon lured Branda Mae Delight Basham, the murder victim, to a secluded section of railroad track in Charleston near the 700 block of Breece Street. At gunpoint, Dixon forced Basham to admit working with police to make undercover purchases of heroin from him. He then repeatedly shot Basham with a 9 mm pistol, killing her. She was 22 years old. After the murder, Dixon went to a nearby residence on Madison Street where he cleaned himself and disposed of his clothing. The next day, police interviewed a local woman who identified the Madison Street residence where she had seen Dixon shortly before the time of the murder.
Detectives from the Charleston Police Department executed a search warrant at the Madison Street residence. Police seized video from a surveillance camera that recorded Dixon wiping down the front door of the residence and carrying away several bags. Detectives also seized a pair of Dixon’s shoes found at the residence. Basham’s DNA was recovered from bloodstains on the shoes.
On July 17, 2014, Dixon surrendered to Charleston Police. He waived his Miranda rights and confessed to killing Basham. He admitted that he intended to retaliate against Basham for cooperating with law enforcement and to prevent her from testifying against him.
At the time of the murder, Dixon had been previously convicted of several felony offenses. These included federal drug trafficking convictions in 1999 and 2006, and a Kanawha County conviction of malicious wounding in 2007.
Dixon faces a mandatory sentence of life in federal prison when he is sentenced on March 17, 2016.
“The murder of Branda Basham is another tragic reminder of the horrible impact that heroin and opioid trafficking has had on our community. I want to join the prosecutors and law enforcement involved in this investigation to express my deepest condolences to the Basham family,” said U.S. Attorney Booth Goodwin. “My office remains committed, along with our partners in law enforcement, to aggressively prosecuting violent drug dealers like Marlon Dixon and to supporting treatment and recovery for those suffering from opioid addiction. I also want to commend the bravery of those citizens who came forward and provided invaluable information that led to the arrest and successful prosecution of Dixon. Their willingness to cooperate with this investigation has made it possible for justice to be served.”
This case was investigated by the Charleston Police Department, the Metropolitan Drug Enforcement Network Team, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by working with existing local programs targeting gun violence. This cases was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including 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 drug trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Centralia Woman Sentenced on Federal Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Dusty Jo Gambill, 40, of Centralia, Illinois, was sentenced today for her role in a Conspiracy to Manufacture and Distribute Methamphetamine which operated from February 28, 2014, through October 1, 2014, in Clinton and Marion Counties, and for Possession of a Listed Chemical (Pseudoephedrine) Knowing It Would Be Used to Manufacture Methamphetamine. Gambill was sentenced to 57 months in federal prison, 3 years’ supervised release, a $400 fine, and a $200 special assessment. Supervised release follows service of imprisonment. There is no parole in the federal system.
Sentencing followed Gambill’s guilty plea to the charges on July 31, 2015. The charges were brought by a Federal Grand Jury in December 2014. Gambill has been in custody since July 21, 2015, when her bond was revoked. Also charged in the Conspiracy were Michael Alan Flanagan, James Perry Horton, David Leroy Altom, Jayme Lee Barnes and Kathy Sue Tomes. Flanagan, Horton, Altom and Tomes, have all pleaded guilty and are awaiting sentencing. Barnes was sentenced in September to 5 years in prison, 4 years’ supervised release, a $200 fine and a $200 special assessment.
Information leading to the charges against Gambill and the others was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Centralia Husband/Wife Each Sentenced on Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Franklin J. Johnson, 33, and his wife, Deanna A. Johnson, 32, both of Centralia, Illinois, were sentenced today to the Federal Bureau of Prisons for the commission of methamphetamine related crimes. Franklin Johnson was sentenced to 188 months in federal prison, 4 years’ supervised release, an $800 fine, and a $400 special assessment. Deanna Johnson was sentenced to 77 months in federal prison, 4 years’ supervised release, a $600 fine, and a $300 special assessment. Supervised release follows service of imprisonment. There is no parole in the federal system.
The Johnsons’ sentences follow their guilty pleas on July 30, 2015, to an Indictment returned against them by a Federal Grand Jury in November 2014. The Johnsons were both charged with Conspiracy to Manufacture and Distribute Methamphetamine, Distribution of Methamphetamine, and Possession of Chemicals, Products and Materials with the Intent to Manufacture Methamphetamine. The Conspiracy operated from January 2014, through August 13, 2014, in Clinton and Marion Counties. The remaining crimes took place in Marion County. The Johnsons have been in custody, held without bond, since their arrests on January 8, 2015.
Information leading to the charges against Franklin and Deanna Johnson was obtained in an investigation conducted by the FBI, the Illinois State Police Methamphetamine Response Team, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Cabot Man Sentenced to 15 Years in Prison Following Shootout with Law EnforcementRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that U.S. District Court Judge J. Leon Holmes sentenced Mark Lyle Dodson, age 54, of Cabot, Arkansas, to five years’ imprisonment for assault with a deadly weapon to be followed by 10 years’ imprisonment for discharging a firearm during and in relation to a crime of violence, for a total sentence of 15 years’ imprisonment. Three years of supervised release will follow the prison sentence.
A Grand Jury indicted Dodson following a November 2013 shootout with members of the Jacksonville Police Department Special Response Team (SRT), who were assisting agents of the Drug Enforcement Administration (DEA) execute a narcotics search warrant at Dodson’s Cabot home. When uniformed SRT members entered Dodson’s residence shouting "police" and "search warrant," he barricaded himself in an interior bedroom and twice fired a 16-gauge shotgun through a closed bedroom door while SRT members tried to enter. Pellets from his blasts struck three SRT members, hospitalizing one, and prompted return fire that hit Dodson. Minutes later, members of the same SRT team that Dodson fired upon gave him life-saving aid as he sat injured and bleeding on the bedroom floor.
Dodson pled guilty to the assault and discharge offenses on May 12, 2015. Under the terms of his plea agreement, the parties agreed upon a 15-year sentence, and the United States dismissed charges for conspiracy to distribute methamphetamine and two additional counts each for assault and discharge that stemmed from the shootout.
The DEA Little Rock Field Office, Jacksonville Police Department SRT, and Pulaski County Sheriff’s Office investigated this matter. Assistant United States Attorneys Alexander D. Morgan and Anne Gardner prosecuted the case for the United States.
CEO of Broker-Dealer Pleads Guilty in Manhattan Federal Court to Obstructing Regulatory Examination by Producing False Invoices to SEC Exam TeamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHARLES J. MOORE, former Chief Executive Officer of broker-dealer Crucible Capital, Inc. (“Crucible”), pled guilty today before United States District Judge Colleen McMahon to obstructing a regulatory examination. MOORE was arrested on August 8, 2014, based on a criminal Complaint alleging, among other things, that he caused a Crucible employee to give falsified invoices to Securities and Exchange Commission (“SEC”) personnel who were conducting a regulatory examination of Crucible. MOORE is scheduled to be sentenced by Judge McMahon on February 18, 2016.
Manhattan U.S. Attorney Preet Bharara said: “Charles Moore, the CEO of a broker-dealer, admitted today that he obstructed the SEC’s examination of his company, concealing the truth about his firm’s finances. Moore’s deceit, which included providing falsified documents to the SEC, has criminal consequences, and he now awaits sentencing for his acknowledged wrongdoing.”
According to the agreement pursuant to which MOORE entered his plea of guilty today, the underlying criminal Complaint filed August 7, 2014, the Indictment filed on September 30, 2014, and statements made during court proceedings:
MOORE was at all relevant times the Chief Executive Officer of Crucible, an SEC-registered broker-dealer that maintained no customer securities trading accounts, but held itself out as a “boutique” investment bank helping small businesses to raise capital and financing. Crucible used its status as an SEC-registered broker-dealer to solicit business.
MOORE was also at all relevant times the CEO of an affiliated company, Angelic Holdings LLC (“Angelic”), which was not registered with the SEC and conducted “due diligence” for Crucible-related business. Crucible and Angelic shared employees and office space. They also shared expenses, under an agreement that had Crucible paying Angelic a monthly fee and Angelic paying vendors of certain specified services on behalf of both Angelic and Crucible.
As an SEC-registered broker-dealer that maintained no customer accounts, Crucible was required to maintain net capital of at least $5,000 at all times. It was also required to file monthly “FOCUS” reports with the SEC reporting its net capital.
In the fall of 2013, the SEC opened a regulatory examination of Crucible to explore, among other things, the accuracy of the net capital figures that Crucible had supplied in its FOCUS reports from in or about February 2013 through in or about September 2013. As part of that examination, the SEC requested all 2013 invoices to Angelic for Crucible-related expenses.
MOORE, responding to this request, caused a Crucible employee to create falsified invoices to deliver to the SEC. Specifically, he directed the employee to take original invoices that had been sent to Crucible personnel, and create versions of those invoices that omitted references to large, unpaid debts appearing on the originals. MOORE then caused the employee to hand the falsified invoices to the SEC. The purpose of this obstruction was to hide the true extent of Crucible’s debts from the regulatory examination team, and thus make it appear, falsely, that Crucible’s net capital figures, as reported in its 2013 FOCUS reports, were accurate.
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MOORE, 63, pled guilty to Count One of a three-count Indictment. Count One charges obstruction of a regulatory examination and carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation and thanked the SEC, which has filed civil charges in a separate action.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah Eddy McCallum and Andrew B. Bauer are in charge of the prosecution.
Bronx Man Charged in Oil Futures Fraud SchemeRead the Press Release
HOUSTON – A man from the Bronx, New York, has been indicted in Houston on charges of mail and wire fraud, announced U.S. Attorney Kenneth Magidson.
Christopher Donrick Daley, 32, was indicted in the Southern District of Texas on Sept. 22, 2015. He surrendered Oct. 30, 2015, in New York. He is expected to make his appearance in Houston federal court today at 2:00 p.m. before U.S. Magistrate Judge Nancy Johnson.
The indictment alleges that between June 2010 and November 2011, Daley falsely represented to investors that he operated a commodity pool which invested in oil futures contracts. According to the indictment, the pool would pay investors a return of at least 20% per month and never had a losing month. However, Daley allegedly paid returns to investors with money received from other investors. He used funds received from investors for his own benefit, according to the allegations.
The indictment also contains a notice of forfeiture and seeks forfeiture of $1,569,797, as alleged proceeds of the illegal scheme.
Each count of wire and mail fraud carries a maximum penalty of 20 years imprisonment and a fine of up to $250,000.
The charges are the result of an investigation conducted by the FBI. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Bremerton, Washington, Man Sentenced for Anti-Gay Hate Crime on Seattle’s Capitol HillRead the Press Release
WASHINGTON – A Bremerton, Washington, man has been sentenced to 30 months in prison following his conviction of a federal hate crime, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
Troy Deacon Burns, 38, was charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. Burns pleaded guilty on Aug. 5, 2015, and admitted that just after midnight on Jan. 25, 2015, he attacked three gay men who were walking in Seattle’s Capitol Hill neighborhood.
Burns admitted in his plea agreement that he came up behind the three men and shouted homophobic slurs. Burns then raised a knife over his head in a stabbing position. Fearing for their safety, the men started running. As Burns caught up to one of the men, he again used a slur and attempted to stab the man. One of the other men was able to pull his friend away from Burns. The third man located Seattle police officers who took Burns into custody. While detained in the police car, Burns continued to yell homophobic slurs. During the plea hearing, Burns said he was under the influence of drugs and alcohol at the time of the assault and claimed that he does not remember his actions.
“The Department of Justice will continue to vigilantly protect the rights of victims who are targeted simply because of their sexual orientation,” said Principal Deputy Assistant Attorney General Gupta. “Six years have passed since the enactment of the Hate Crimes Prevention Act, and it continues to serve as an important tool for federal law enforcement.”
“No one should have to fear attack because of their sexual orientation when they walk down the streets of the cities and towns in Western Washington,” said U.S. Attorney Hayes. “The U.S. Attorney’s Office is committed to working closely with the Civil Rights Division to ensure cases like this are prosecuted and that the common decency that is at the heart of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act is respected by all.”
The case was investigated by the Seattle Police Department and the FBI. The case was prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorney Saeed Mody of the Civil Rights Division. The King County, Washington, Prosecuting Attorney’s Office provided significant assistance with the case as well.
Bremerton, Washington, Man Sentenced for Anti-Gay Hate Crime on Seattle’s Capitol HillRead the Press Release
A Bremerton, Washington, man has been sentenced to 30 months in prison following his conviction of a federal hate crime, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
Troy Deacon Burns, 38, was charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. Burns pleaded guilty on Aug. 5, 2015, and admitted that just after midnight on Jan. 25, 2015, he attacked three gay men who were walking in Seattle’s Capitol Hill neighborhood.
Burns admitted in his plea agreement that he came up behind the three men and shouted homophobic slurs. Burns then raised a knife over his head in a stabbing position. Fearing for their safety, the men started running. As Burns caught up to one of the men, he again used a slur and attempted to stab the man. One of the other men was able to pull his friend away from Burns. The third man located Seattle police officers who took Burns into custody. While detained in the police car, Burns continued to yell homophobic slurs. During the plea hearing, Burns said he was under the influence of drugs and alcohol at the time of the assault and claimed that he does not remember his actions.
“The Department of Justice will continue to vigilantly protect the rights of victims who are targeted simply because of their sexual orientation,” said Principal Deputy Assistant Attorney General Gupta. “Six years have passed since the enactment of the Hate Crimes Prevention Act, and it continues to serve as an important tool for federal law enforcement.”
“No one should have to fear attack because of their sexual orientation when they walk down the streets of the cities and towns in Western Washington,” said U.S. Attorney Hayes. “The U.S. Attorney’s Office is committed to working closely with the Civil Rights Division to ensure cases like this are prosecuted and that the common decency that is at the heart of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act is respected by all.”
The case was investigated by the Seattle Police Department and the FBI. The case was prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorney Saeed Mody of the Civil Rights Division. The King County, Washington, Prosecuting Attorney’s Office provided significant assistance with the case as well.
Berkeley County woman convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ariana Shanae Parker, 24, of Martinsburg, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Parker sold heroin in Berkeley County, West Virginia. She pled guilty today to one count of “Aiding and Abetting Distribution of Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney Stephanie Taylor prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided
Attorney General Loretta E. Lynch Announces Return of Forfeited Public Corruption Assets to Korean Minister of Justice Kim Hyun-WoongRead the Press Release
The Department of Justice returned $1,126,951.45 in forfeited assets to the government of the Republic of Korea today. The forfeited assets were the profits of a public corruption scheme orchestrated by former Korean President Chun Doo Hwan in the 1990s, and were laundered to the United States by Chun’s family members and associates. The assets were forfeited in two recent United States civil forfeiture actions as part of the Department of Justice’s Kleptocracy Asset Recovery Initiative, which is coordinated by the department’s Asset Forfeiture and Money Laundering Section.
“The return of these assets is a powerful vindication of the rule of law, and an important victory for the people of the Republic of Korea,” said Attorney General Loretta E. Lynch. “Since it was established in 2010, the Kleptocracy Asset Recovery Initiative has been an effective tool in our ongoing efforts to curb high-level public corruption around the world. As we move forward, the Department of Justice will remain committed to using all the resources at its disposal to ensure that government funds go to their lawful purposes; that stolen assets are returned to state coffers; and that corrupt officials are held fully accountable for abusing their positions.”
Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) and the FBI investigated the cases leading to the U.S. forfeiture of the assets being returned to Korea and served as the seizing agencies.
“The FBI is committed to tracing, seizing and forfeiting the assets of corrupt foreign politicians who have abused their power to enrich themselves and use the United States financial markets to launder their ill-gotten gains,” said Assistant Director Joseph Campbell of the FBI’s Criminal Investigative Division. “The funds returned represent a successful and important collaboration between the United States and the Republic of Korea.”
“I commend the men and women of our Homeland Security Investigations Regional Attaché Office in Korea and the Special Agent in Charge Office in Philadelphia who worked tirelessly to bring this foreign corruption case to fruition,” said Director Sarah R. Saldaña of ICE. “Let this case be a message that corruption on all levels will be investigated and that the United States will work multilaterally with countries throughout the world to protect citizens from the wrongs caused by public servants motivated by greed.”
In 1997, a criminal court in Korea convicted former President Chun of accepting more than $200 million in bribes from Korean corporations and ordered him to pay approximately $212 million in criminal penalties. In 2013, the Anti-Corruption Division of the Korean Supreme Prosecutor’s Office opened a money laundering investigation regarding the potential laundering of the bribery proceeds into the United States by Chun and his associates through the acquisition of U.S. real estate and opening of U.S. bank accounts.
Prosecutors assigned to the Kleptocracy Asset Recovery Initiative initiated their own investigation, aided by agents from ICE-HSI and the FBI. In January 2014, FBI investigators in the Central District of California seized $726,951.45 held in a California escrow account, which was traced to the sale of real estate property acquired by Chun’s son and his girlfriend in 2005 in Orange County, California. In February 2015, Kleptocracy prosecutors filed a second civil forfeiture action in the Eastern District of Pennsylvania seeking to forfeit a secured investment worth approximately $500,000 in a Pennsylvania company, which also was traced to Chun’s corruption scheme. On March 4, 2015, the department reached a settlement agreement of its civil forfeiture actions, resulting in the forfeiture of a total of $1,126,951.
The investigation was conducted jointly by ICE-HSI’s Philadelphia Office, ICE-HSI’s Regional Attaché Office for Korea and Japan at the U.S. Embassy in Seoul, the FBI Los Angeles Division’s West Covina Resident Agency and the Criminal Division’s International Corruption Unit-FBI Kleptocracy Program. Kleptocracy prosecutors worked closely with Korean law enforcement authorities, principally through the Seoul Central District Prosecutor’s Office, the Supreme Prosecutor’s Office and the Ministry of Justice. The cases were prosecuted by Assistant Deputy Chief Woo S. Lee and Trial Attorney Della Sentilles of the Criminal Division’s Asset Forfeiture and Money Laundering Section, Assistant U.S. Attorneys Katharine Schonbachler and Steven R. Welk of the Central District of California and Assistant U.S. Attorneys Joseph Minni and Alvin Stout of the Eastern District of Pennsylvania. The Criminal Division’s Office of International Affairs provided substantial support.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.
Armed Marijuana Dealers Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Tony and Tommy Nguyen, brothers who live in Mobile, were sentenced today in federal court for their participation in a marijuana distribution conspiracy. The brothers pled guilty to gun and drug charges in June of 2015.
Tony Nguyen, 24, pled guilty to being a prohibited person (drug user) in possession of a firearm and conspiracy to possess with intent to distribute marijuana. Tommy Nguyen, 23, pled guilty to conspiracy to possess with intent to distribute marijuana and using, carrying, and possessing a firearm in relation to and in furtherance of a drug trafficking felony. Court documents reflect that Tony Nguyen traveled to the United States post office on St. Joseph Street in Mobile to pick up a package that had been identified as suspicious. He was confronted at the post office by Mobile County sheriff’s deputies and consented to the deputies’ request to open the package. It contained five pounds of high-grade marijuana. The sheriff’s deputies obtained search warrants for two apartments leased in Tony Nguyen’s name, and discovered three guns, six boxes identical to the one in the package where the marijuana had been shipped, 191 plastic bags identical to the ones used to package individual pounds of marijuana in the shipments, eight more pounds of marijuana, scales, packaging materials and other paraphernalia used in the consumption and distribution of marijuana. A second package identical to the one picked up by Tony Nguyen was also intercepted by postal investigators, and it was also found to contain five additional pounds of the same type of marijuana. Tommy Nguyen claimed residence in one of the two apartments leased in Tony Nguyen’s name. The apartment where Tommy Nguyen lived was where the bulk of the packaging and distribution of the drugs took place. He was present there when the sheriff’s deputies arrived to pursue the investigation. A third conspirator, Nick Somphonphakdy, 19, of Bayou La Batre, was also present in that apartment with Tommy Nguyen and admitted that he lived there with Tommy. Somphonphakdy was sentenced in September of this year to 90 months imprisonment.
United States District Court Judge William H. Steele imposed a sentence of 21 months in Tony Nguyen’s cases, and ordered that that the sentences run concurrently. He did not impose a fine, but ordered that Tony Nguyen pay $100 in special mandatory assessments. Tony was ordered to serve a three-year term of supervised release, which will commence when he is released from prison. As for Tommy Nguyen, Judge Steele imposed a sentence of 75 months imprisonment, consisting of 15 months on the drug charge consecutive to 60 months on the gun charge. Tommy was ordered to serve a five-year term of supervised release, which will commence on his release from prison. He is also required to pay $200 in special mandatory assessments.
The case was investigated by the United States Postal Inspectors and the Mobile county Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Arizona Man Sentenced to Three Years in Federal Prison for Wire Fraud Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Joseph Lawler, 55, of Peoria, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 36 months in prison followed by three years of supervised release for his wire fraud conviction. Lawler also was ordered to pay $478,510.00 in restitution to the victims of his crime. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
On June 26, 2015, Lawler pled guilty to all 12 counts of a superseding indictment that was filed on June 9, 2015, and alleged that between Aug. 2010 and July 2014, Lawler engaged in an illegal scheme to defraud investors of hundreds of thousands of dollars. Lawler executed the scheme by causing others to create a company, Projaris Management, LLC (Projaris), that purported to provide investment services. He also caused others to open four accounts for Projaris at a bank in Farmington, N.M., and one account at a bank in Phoenix, Ariz. Although the bank accounts were not in Lawler’s name and he was not an authorized signer, Lawler exercised sole control over the bank accounts.
The superseding indictment alleged that Lawler used Projaris and the bank accounts to execute a scheme to defraud investors in Projaris by making false representations to obtain investment funds which he used for other purposes. Lawler falsely represented to investors that their funds would be invested in gold, silver, real estate, or real estate investment trust funds. Instead, Lawler used investors’ funds to pay other Projaris investors who threatened to report him to law enforcement authorities. Lawler also used investors’ funds to pay for his living expenses and vehicles.
The superseding indictment includes forfeiture allegations which assert that Lawler derived at least $288,889.50 as a result of his criminal conduct and which require that Lawler forfeit money or assets in that amount.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Tara C. Neda.
Arizona Man Sentenced to Federal Prison for Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – David Mendez Bojorquez, 60, of Phoenix, Ariz., was sentenced this afternoon in federal court in Albuquerque, N.M., to 33 months in prison followed by three years of supervised release for his heroin trafficking conviction.
Mendez Bojorquez was arrested on Dec. 8, 2014, at the Greyhound Bus Station in Albuquerque, N.M., after DEA agents and task force officers executed a federal search warrant on his suitcase and found a package containing more than a gross kilogram of heroin. Mendez Bojorquez subsequently was indicted on Dec. 16, 2014, and charged with possession of a mixture and substance containing a detectable amount of heroin.
On Jan. 26, 2015, Mendez Bojorquez pled guilty to a felony information charging him with possession with intent to distribute a mixture and substance containing a detectible amount of heroin. In his plea agreement, Mendez Bojorquez admitted that he had heroin in his suitcase when he was encountered by law enforcement officers at the Greyhound Bus Station on Dec. 7, 2014. He further admitted that the officers found and seized the heroin after obtaining a search warrant for his suitcase.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. The case is being prosecuted by Assistant U.S. Attorney David M. Walsh.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Friday 6 November 2015
Yonkers Man Convicted in White Plains Federal Court of Kidnapping and Sex Trafficking A 19-Year-Old VictimRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department, announced that, yesterday afternoon, CLYDEDORO GRAHAM was found guilty of kidnapping a 19-year-old victim (the “Victim”), conspiring to engage in sex trafficking of the Victim, and attempting to engage in sex trafficking of the Victim. CLYDEDORO GRAHAM was convicted after a seven-day jury trial before United States District Judge Nelson S. Román.
U.S. Attorney Preet Bharara stated: “Clydedoro Graham preyed on a young, vulnerable victim. Together with his accomplices, he lured a 19-year-old to his apartment, kidnapped her, and tried to force her to work as a prostitute for him. This young woman endured a nightmare at the hands of the defendant. But thanks to the outstanding work of the FBI and the Yonkers Police Department, he did not get away with it and a unanimous jury has found him guilty of all charges.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “Graham lay in wait as his co-conspirators set a trap for their victim. Unbeknownst to her, the harrowing situation would play out for days before help arrived to save her from her captors’ plans. Although there are many who become entangled in a life of prostitution, this should not serve as an excuse for others to violate them and force them into sex trafficking schemes. Today’s conviction is proof of the FBI’s efforts to stop this type of illegal activity.”
Yonkers Police Commissioner Charles Gardner stated: “I want to thank the U.S. Attorney for the Southern District of New York and the FBI for their efforts in this investigation and successful prosecution of this suspect. This case was initiated by our Patrol Officers who remained vigilant in searching for a missing person, who turned out to be the victim in this heinous crime. The verdict should be a warning to all who chose to engage in sex trafficking here in Yonkers and abroad that a substantial sentence in federal prison may be the result of your actions.”
According to the allegations in the Complaint and Superseding Indictment filed in federal court, and the evidence presented at trial:
On the evening of June 16, 2014, CLYDEDORO GRAHAM was at his apartment in Yonkers, New York (the “Apartment”), with his girlfriend and accomplice, Alisa Papp. His cousin, Kevin Graham, and his friend, Hector Garcia, were also present. As Papp, Kevin Graham, and Garcia knew, CLYDEDORO GRAHAM was a “pimp.” That night, the four co-conspirators agreed to lure a prostitute to the Apartment for the purpose of forcing her to work for them.
CLYDEDORO GRAHAM was the leader of this scheme. Using his cellphone, he went to Backpage.com, a website where prostitutes post advertisements. He trolled through the advertisements searching for a target, and eventually decided on the Victim. Kevin Graham called the Victim and led her to believe, falsely, that he wanted to hire her for a prostitution “date.”
When the Victim arrived, the co-conspirators were lying in wait. Papp served as the lookout, making sure the Victim did not arrive with anyone else. Kevin Graham met her outside and led her into the Apartment, while CLYDEDORO GRAHAM and Garcia hid inside. Once inside the Apartment – and at the direction of CLYDEDORO GRAHAM – the co-conspirators took away the Victim’s purse and phone, removed the battery from her phone, and told her that she was there to work as a prostitute for them. The Victim asked repeatedly to leave, but CLYDEDORO GRAHAM and his accomplices refused.
The co-conspirators told the Victim that she had no choice but to have sex with each of the men. She refused and asked again to go home. CLYDEDORO GRAHAM said she could give it up or they would “take it.” CLYDEDORO GRAHAM, Kevin Graham, and Hector Garcia took turns having sex with the Victim, against her will.
Later that night, Kevin Graham and Garcia left the Apartment. For the next two days and two nights, CLYDEDORO GRAHAM and Papp held the Victim captive in the Apartment. Among other coercive measures, CLYDEDORO GRAHAM removed the doorknob from the interior side of the Apartment’s front door to prevent the Victim from escaping. He then made plans to bring the Victim out onto the streets of Yonkers to prostitute her for his own benefit.
CLYDEDORO GRAHAM’s scheme unraveled on June 18, 2014, when two Yonkers police officers arrived at the Apartment after receiving a tip from individuals who had been searching for the Victim. The officers demanded to speak with the Victim, immediately determined that she was being held against her will, and brought her to safety.
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On or about December 4, 2014, CLYDEDORO GRAHAM, Alisa Papp, Kevin Graham, and Hector Garcia were charged in a three-count Superseding Indictment with sex trafficking and kidnapping offenses. Papp, Kevin Graham, and Garcia entered pleas of guilty before trial and are awaiting sentencing.
CLYDEDORO GRAHAM proceeded to trial on October 27, 2015. Yesterday, the jury found him guilty of all charges: one count of conspiracy to engage in sex trafficking, which carries a maximum sentence of life in prison; one count of attempted sex trafficking, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; and one count of kidnapping, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
CLYDEDORO GRAHAM is scheduled to be sentenced by Judge Román on April 15, 2016.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, Homeland Security Investigations, the City of Yonkers Police Department, the Westchester County Police, and the Westchester County District Attorney’s Office. He also thanked the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin, Douglas Zolkind, and Daniel Filor are in charge of the prosecution.
Winsted Man Pleads Guilty to Federal Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAMES CAVE, 44, of Winsted, pleaded guilty yesterday in New Haven federal court to federal firearm offenses.
According to court documents and statement made in court, in 2014 and early 2015, CAVE obtained a Norinco MAK 90, 7.62 x 39 caliber semi-automatic rifle, a Smith & Wesson M&P, .40 caliber handgun, and a Shooters Arms Mfg. M1911GI, .45 caliber handgun, all of which he transported into Connecticut and sold to another individual.
On April 4, 2015, CAVE sold a Smith & Wesson 586, .357 caliber handgun to an individual who was cooperating with law enforcement. Investigators subsequently determined that the handgun had been stolen from a residence in Connecticut.
On April 7, 2015, CAVE met an undercover ATF agent at a location in Torrington and sold him a Webley, model Mark IV .455 caliber revolver in exchange for $700 in cash. This firearm also had been stolen from a residence in Connecticut.
CAVE sustained a felony conviction in Connecticut state court in October 2003.
CAVE pleaded guilty to one count of possession of a firearm by a previously convicted felon, and one count of engaging in the business of dealing firearms without a license. When he is sentenced by U.S. District Judge Jeffrey Alker Meyer, CAVE faces a maximum term of imprisonment of 15 years. A sentencing date has not been scheduled.
CAVE was arrested on a criminal complaint on April 30, 2015, and is released on a $100,000 bond.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Torrington Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Virginia Couple Convicted of Conspiracy, Tax Crimes and FraudRead the Press Release
A Bedford, Virginia couple was convicted today in the U.S. District Court for the Western District of Virginia of theft of government funds and other federal crimes, announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division and U.S. Attorney Anthony P. Giorno of the Western District of Virginia.
Edgar and Contina Foxx were convicted by a federal jury after a four-day trial. In addition to the theft of government funds charge, Edgar Foxx was convicted of one count of making a false 2008 tax return and three counts of failure to file a tax return and Contina Foxx was convicted of one count of providing false statements for federal health care program benefits.
According to the indictment, during the years 2008, 2009, 2010 and 2011, Edgar Foxx transported and sold scrap metal which resulted in gross receipts in excess of $500,000. The jury found that Edgar Foxx filed a false 2008 joint individual income tax return, which failed to report to the Internal Revenue Service (IRS) significant amounts of income he earned that year. For the tax years 2009 through 2011, Edgar Foxx did not file any individual income tax returns. The jury found as charged in the indictment that Edgar and Contina Foxx misrepresented or failed to report income to the Social Security Administration (SSA) in order to qualify to receive Medicaid benefits which resulted in their unlawful receipt of social security benefits for the years 2010 through 2012. Contina Foxx was further convicted of making false statements to the Department of Health and Human Services in the application for benefits involving Medicaid by underrepresenting her total household income.
Sentencing is scheduled on Feb. 23, 2016, before U.S. District Judge Norman K. Moon of the Western District of Virginia, who presided over the trial. Edgar and Contina Foxx face a statutory maximum sentence of 10 years in prison and a fine of up to $250,000 for the theft of government funds charge. Edgar Foxx also faces a statutory maximum of one year in prison and a fine of up to $100,000 for each failure to file charge and three years in prison and a fine of up to $250,000 for the false return charge. Contina Foxx faces a statutory maximum of five years in prison and a fine of up to $250,000 for the false statements for federal health care program benefits charge.
Acting Deputy Assistant Attorney General Wszalek and U.S. Attorney Giorno commended special agents of IRS-Criminal Investigation, special agents of the Office of Inspector General for SSA and special agents of the Office of Inspector General for the Department of Health and Human Services, who investigated the case and Assistant U.S. Attorneys Patrick Hogeboom and Charlene Day of the Western District of Virginia and Trial Attorney Joseph M. Giannullo of the Tax Division, who prosecuted the case.
Union County, New Jersey, Man Charged with Distribution of Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Union County, New Jersey man was charged today with distributing images of child sexual abuse online, U.S. Attorney Paul J. Fishman announced.
Lenin Eugenio Basantes, 30, of Elizabeth, New Jersey, is charged by complaint with one count of distribution of child pornography. He had his initial court appearance before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
According to the complaint:
On June 19, 2013, Basantes distributed 18 video files and approximately 70 image files of child sexual abuse via a peer-to-peer file sharing network on the Internet, to which others had access in shared directories. During an undercover operation, a special agent of the FBI communicated with Basantes via the peer-to-peer network. Basantes provided this agent with a password to a file containing the images and video files. The undercover agent was able to access and download these images. On Nov. 4, 2015, FBI agents interviewed Basantes, who admitted that that he shared pornographic images of children with other people via the peer-to-peer network.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
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.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
UOG’s MAED Class Invites U.S. Attorney’s Office to Speak on Bullying and CyberbullyingRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to speak at the University of Guam’s (UOG) School of Education Masters Class (MAED) on October 26, 2015, at the University of Guam.
U.S. Attorney Limtiaco gave a presentation on cybercrime, including child pornography, child sexual exploitation, sexting and cyberbullying, and shared resources and safety tips.
The U.S. Attorney’s Office is often invited by elementary, middle and high schools to make presentations on bullying and cyberbullying. Bullying and cyberbullying are prevalent issues in today’s youth and are priorities of the U.S. Attorney’s Office.
Photo of U.S. Attorney Alicia Limtiaco taken at UOG’s MAED Class:Twice Convicted Pedophile Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – William Sylvia, age 71, of Hagerstown, Maryland, pleaded guilty today to possession 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 Sylvia’s plea agreement, in approximately 1995, Sylvia was convicted of raping a child in Massachusetts, and sentenced to 7 to 10 years’ incarceration. On September 3, 2004, in the Circuit Court of Berkeley County, West Virginia, Sylvia was convicted of sexual abuse by a parent, custodian or guardian, and of third degree sexual abuse, and was sentenced to one to five years in prison.
Sylvia admitted that from April 1, 2013 through July 13, 2014, he used a computer to send, receive and collect child pornography. For example, on April 1, 2013, Sylvia sent another user six visual depictions of minors engaging in sexually explicit conduct. On September 4, 2014, law enforcement obtained a search warrant for Sylvia’s email account which revealed emails sent and received by Sylvia that included attachments of child pornography.
During the time of this investigation, Sylvia was a registered sex offender living at a motel in Hagerstown. On February 20, 2015, a search warrant was executed at Sylvia’s residence at the motel and law enforcement seized a desktop computer, camera, flash drive and other digital media. A forensic examination of the desktop computer and the flash drive recovered additional images of minors – including prepubescent minors – engaged in sexually explicit conduct.
As part of his plea agreement, Sylvia must continue to 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).
Sylvia and the government have agreed that if the Court accepts the plea agreement Sylvia will be sentenced to 10 years in prison followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for January 29, 2016 at 11:30 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. Attorney Paul E. Budlow who prosecuted the case.
Three San Francisco International Airport Security Screeners Charged with Fraud and Smuggling DrugsRead the Press Release
SAN FRANCISCO – Three San Francisco International Airport security screeners have been arrested on charges of defrauding the government and smuggling cocaine, announced Acting United States Attorney Brian J. Stretch, Drug Enforcement Administration Special Agent in Charge John J. Martin, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, and Transportation Security Administration Office of Inspection Special Agent in Charge Regan Fong. A federal indictment charging the three individuals with fraud and drug smuggling was unsealed yesterday.
The three defendants named in the indictment were employees of Covenant Aviation Security (CAS), a private company that contracts with the Transportation Security Administration (TSA) to provide security screening services at San Francisco International Airport (SFO). The defendants are Joseph Scott, 35, of Vallejo, a former Supervisory Transportation Security Officer for CAS; Michael Castaneda, 32, of Daly City, a former Lead Transportation Security Officer for CAS; and Jessica Scott, 27, of San Pablo, a current Supervisory Transportation Security Officer for CAS.
The indictment alleges that the three defendants conspired to use their positions as Transportation Security Officers to allow passengers to smuggle real and simulated cocaine through airport security checkpoints. The defendants all were assigned to SFO. The defendants arranged for passengers carrying narcotics in their carry-on luggage to pass through the x-ray machine at a security checkpoint line without adequately screening the luggage for explosives, incendiaries, weapons, or other threats to security. Through the use of confidential sources and undercover agents, law enforcement discovered that defendants made these arrangements for a fee on five occasions between May 2013 and April 2014.
The indictment further alleges that, once the passenger carrying drugs or simulated drugs arrived at the security checkpoint lane, s/he was directed or escorted to a particular security line. On that line, one of the defendants was either operating or overseeing the operation of the x-ray machine. The defendant operating or overseeing the x-ray machine either knew the carry-on baggage contained narcotics, viewed images that suggested the need for secondary inspection, or both. Nevertheless, in each instance, the defendant responsible for the x-ray machine failed to call for a secondary screening of the baggage or alert law enforcement or a supervisor to the presence of suspected narcotics. In each case, the drugs and simulated drugs were smuggled as part of undercover operations performed by the Drug Enforcement Administration and TSA-Office of Inspection designed to determine the scope and nature of the conspiracy.
All three defendants are charged with two counts. The first count is conspiring to defraud the TSA by obstructing a lawful government function, in violation of 18 U.S.C. § 371. Violation of this statute carries a maximum term of imprisonment of five years and a maximum fine of $250,000. The second count is conspiring to distribute and possess with intent to distribute more than five kilograms of cocaine, in violation of 21 U.S.C. §§ 846 and 841. Violation of this statute carries a mandatory minimum of ten years, a maximum sentence of life imprisonment, and a maximum fine of $10 million.
An indictment contains only allegations. Jessica Scott, Joseph Scott, and Michael Castaneda, as with all defendants, must be presumed innocent unless and until proven guilty. In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The indictment was unsealed on November 5, 2015, after all three defendants were arrested and appeared before U.S. Magistrate Judge Laurel Beeler. Joseph Scott and Jessica Scott were released today, each subject to a $50,000 bond. Michael Castaneda remains in federal custody and is scheduled to appear for a detention hearing Monday, November 9, 2015, before Magistrate Judge Beeler.
Assistant U.S. Attorneys Adam Wright and Marc Price Wolf are prosecuting the case with the assistance of Amanda Martinez, Rawaty Yim, Jacquelyn Lovrin, and Yanira Osorio. The investigation has involved officers and agents from the Drug Enforcement Administration, Federal Bureau of Investigation, the TSA Office of Inspection, San Francisco Police Department, and the Oakland Police Department.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Three Albuquerque Businessmen Sentenced to Probation for Federal Tax Fraud ConvictionsRead the Press Release
ALBUQUERQUE – Three brothers, all naturalized U.S. citizens from Armenia, were sentenced to terms of probation this morning in Albuquerque, N.M., for conspiring with each other to defraud the United States of corporate income tax due and owing from their jointly owned business, announced U.S. Attorney Damon P. Martinez and Ismael Nevarez, Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Hrant Kostanian, 51, Hrair Kostanian, 56, and Gayk Kostanian, 60, were each sentenced to a five-year term of probation. The brothers also were ordered jointly to pay $263,600.00 in restitution to the IRS, the amount of corporate income taxes they jointly evaded. In addition, the three brothers were ordered individually to pay restitution to the IRS as follows for evading personal income taxes: Hrant Kostanian, $33,312.00; Hrair Kostanian, $20,386.00; and Gayk Kostanian, $16,059.00. In addition to the restitution payments, Hrant Kostanian and Hrair Kostanian each were ordered to pay fines in the amount of $15,810.65.
The three brothers were indicted on Sept. 23, 2014, and charged with one count of conspiracy and four counts of tax evasion. Count 1 of the indictment charged the three brothers with conspiracy to defraud the United States of corporate taxes owed on income generated by Pro Billiards, Inc., a New Mexico corporation jointly owned by the brothers that does business as “Billiards Palace” in northeast Albuquerque. The conspiracy count also alleges that the Kostanians also evaded personal income tax due and owing on their personal incomes. The brothers are charged with evading approximately $263,600.00 in corporate taxes during tax years 2007, 2008, 2009 and 2010. More specifically, the Kostanians evaded federal taxes owed by their business by underreporting their income as follows:
Count 2 charges the Kostanians with evading $58,834.00 in federal taxes by falsely claiming that their business had $694,293.00 in taxable income in 2007 when in fact it had $906,003.00 in taxable income that year. Count 3 charges the brothers with evading $25,521.00 in federal taxes by falsely claiming that their business had $624,034.00 in taxable income in 2008 when in fact it had $773,289.00 in taxable income that year. Count 4 charges them with evading $33,810.00 in federal taxes by falsely claiming that their business had $543,224.00 in taxable income in 2009 when in fact it had $684,694.00 in taxable income that year. Count 5 charges the Kostanians with evading $10,485.00 in federal taxes by falsely claiming that their business had $476,439.00 in taxable income in 2010 when in fact it had $773,289.00 in taxable income that year.
According to the indictment, the Kostanians perpetuated their fraud against the United States by maintaining false books and records for their business in order to conceal their actual corporate income. The brothers presented the false books and records to their corporate accountant, which caused their accountant to file false corporate income taxes with the IRS. The indictment also stated that the Kostanians diverted the unreported income to their own personal use and maintained a separate accounting ledger that showed their business’s actual income.
On May 6, 2015, the Kostanians each entered a guilty plea to Count 1 of the indictment. In their plea agreements, the brothers admitted conspiring with each other to defraud the United States by obstructing the IRS’s ability to collect corporate income taxes owed by their business. Each admitted that they maintained false books and records that they presented to their corporate accountant for use in preparing the business’s income taxes for 2007, 2008, 2009 and 2010. They also admitted maintaining a separate accounting ledger that showed their business’s actual income. The conspiracy was discovered in Jan. 2011 and Feb. 2011, when Hrair Kostanian and Gayk Kostanian discussed the prospect of selling the business with undercover IRS agents and revealed that the business generated more income than reflected on the business’s corporate tax returns. On Feb. 23, 2011, Hrair and Gayk Kostanian showed the undercover IRS agents documents that detailed the business’s additional, unreported income.
In their plea agreements, all three brothers admitted that they evaded an aggregate of $263,600.00 in federal corporate taxes for tax years 2007 through 2010, by intentionally understating their business’s income. In addition, each of the Kostanians admitted evading his own taxes during that same period by understating his personal income. To that end, Hrant Kostanian admitted evading $33,312.00 in individual taxes; Hrair Kostanian admitted evading $20,386.00 in individual taxes; and Gayk Kostanian admitted evading $16,059.00 in individual taxes.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Reeve L. Swainston.
Tenth Circuit Court of Appeals Affirms Bribery Conviction of Michael Morgan, Former President Pro Tem of Oklahoma State SenateRead the Press Release
Oklahoma City, Oklahoma - The Tenth Circuit Court of Appeals today issued an order affirming the bribery conviction of former Oklahoma State Senate President Pro Tem Michael Steven Morgan, of Stillwater, Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, the appellate court remanded the case to the district court for resentencing.
"We are pleased with the Tenth Circuit’s detailed and thorough review of all appellate issues and their conclusions that Senator Morgan received a fair trial, that the jury’s guilty verdict was supported by the evidence, and that a new sentencing hearing is warranted," said U.S. Attorney Coats. "As I have said since the day this case was charged, the sale of political influence by an elected official is simply not acceptable and corruption betrays the public trust. We look forward to the re-sentencing of this case."
Reference is made to the attached Order and Judgment by the Tenth Circuit Court of Appeals.
10th_cir_opinion.11.6.15.pdf (267.56 KB)
Straw Purchaser of Gun Used in Multiple D.C. Shootings SentencedRead the Press Release
ALEXANDRIA, Va. – Lawrence Monte Morgan, 24, of Waldorf, Maryland, was sentenced today to one year and one day in prison, followed by two years of supervised release, for his role in the illegal purchase of 12 guns, including one gun that was used in multiple shootings in Washington, D.C.
“Prosecuting straw purchasers is essential because of the critical role these purchasers play in enabling the unlawful possession and use of guns,” said U.S. Attorney Dana J. Boente. “Prohibited individuals who cannot buy guns, including convicted felons, rely on staw purchasers to buy the guns for them. Often times the guns then end up in the hands of dangerous individuals and are used in other crimes, as in this case.”
“Illegal firearms trafficking is one of the most dangerous activities confronting our nation today,” said Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “It is through the bravery, skill, and dedication of our agents that these traffickers are brought to justice and the illegal firearms trade currently plaguing the DC Metro region is abated.”
Morgan pleaded guilty on Aug. 3, 2015. According to court documents, during August 2014, Morgan, along with co-defendant Jamal Baker, purchased 12 guns from various federal firearms dealers within the Eastern District of Virginia. At the time of each of these purchases, Baker completed a firearms transaction form that asked, “Are you the actual transferee/buyer of the firearm(s)?” Baker knowingly lied when he answered “Yes” on the form, because he was unlawfully acquiring the guns for others, not for himself. Morgan aided and abetted Baker’s false statements by, among other things, accompanying Baker to firearms dealers to help select guns for purchase, reimbursing Baker for the purchases, finding buyers for and reselling the guns, and providing Baker with a share of the profits from the resale of the guns to other buyers. Law enforcement has since recovered several of the guns that Morgan and Baker purchased in August 2014, including one gun that was used in multiple shootings in Washington, D.C.
Baker was sentenced to one year and one day in prison on Oct. 15, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Tobias Tobler prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-219.
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Stratford Man Charged with Trafficking Meth and Heroin, Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARK LEIGH-JAMES, also known as “Rich,” 23, of Stratford, has been indicted on narcotics trafficking and firearm possession offenses.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Fairfield Police Department. As alleged in court documents, in July and August 2015, Fairfield Police made four controlled purchases of a total of approximately 58 grams of methamphetamine from LEIGH-JAMES. In August and September 2015, Fairfield Police and the DEA Task Force made two additional controlled purchases of a total of approximately 187 grams of methamphetamine from LEIGH-JAMES.
October 5, 2015, LEIGH-JAMES was arrested on federal criminal complaint. At the time of his arrest, LEIGH-JAMES was carrying a backpack that contained approximately 7.5 grams of heroin. A subsequent search of LEIGH-JAMES’ vehicle revealed a second backpack containing approximately 120 grams of methamphetamine, a loaded .380 semi-automatic handgun and a loaded .44 magnum revolver.
On October 14, 2015, a federal grand jury in Bridgeport returned a nine-count indictment charging LEIGH-JAMES with two counts of possession with intent to distribute, and distribution of, 50 grams or more of methamphetamine, and one count of possession with intent to distribute 50 grams or more of methamphetamine. These charges carry a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
The indictment also charges LEIGH-JAMES with four of possession with intent to distribute, and distribution of, methamphetamine, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime. If convicted of the firearm offense, LEIGH-JAMES faces a mandatory consecutive term of imprisonment of five years.
LEIGH-JAMES has been detained since his arrest.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Fairfield Police Department. The Task Force includes personnel from the DEA, Connecticut State Police, Norwalk Police Department, Stamford Police Department, Stratford Police Department and Milford Police Department. The case is being prosecuted Assistant U.S. Attorney Amy C. Brown.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
St. Thomas Man Indicted on Drug Trafficking ChargesRead the Press Release
St. Thomas, USVI – A federal grand jury returned a one-count indictment on November 5, 2015, charging Kasimir Asim McClean, 37, of St. Thomas with possession with intent to distribute a controlled substance, United States Attorney Ronald W. Sharpe announced today.
McClean was arrested on September 26, 2015 and released pending trial. He is awaiting arraignment and advise of rights on the indictment.
According to the indictment and court documents, McClean was a passenger on a Delta Airlines flight arriving at the Cyril E. King Airport on St. Thomas from Atlanta, Georgia, when U.S. Customs and Border Protection agents, with the assistance of a canine, found approximately five kilos of marijuana in his luggage.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
This case is being investigated by the Department of Homeland Security Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), and is being prosecuted by Assistant United States Attorney Everard E. Potter.
Spirit Lake Man Found Guilty of Aggravated Sexual Abuse of a MinorRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Oct. 5, 2015, Jay Littlewind Sr., 41, Tokyo, North Dakota, was found guilty of Aggravated Sexual Abuse of a Child following a three-day trial.
The jury found that Littlewind knowingly engaged in a sexual act with a child who had not attained the age of 12 years. Evidence presented at trial showed that on or about January 25, 2008, through February 13, 2008, Littlewind committed a sexual act on the child as she lay sleeping in her mother’s bed; her mother was at work at the time of the offense.
U. S. District Judge Ralph R. Erickson ordered that a presentence investigation be completed and that Littlewind remain in custody. Judge Erickson scheduled a sentencing hearing for Jan. 28, 2016, at the U. S. District Court, Fargo, North Dakota. Littlewind faces a mandatory minimum of not less than 30 years in prison.
This case was investigated by the Federal Bureau of Investigation.
Assistant U. S. Attorney is Janice Morley prosecuting the case.
Six Persons Charged with Obtaining 2.7 Million in Fraudulent Tax Refunds from the IRSRead the Press Release
LAS VEGAS, Nev. – Six persons have been charged with conspiracy, fraud, filing false claims, and aggravated identity theft, for using the information of deceased persons to file false tax returns so they could obtain millions in fraudulent IRS tax refunds, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Andrew Hanzelic, 45, of Las Vegas, Kelly Coyan, 53, of Lenexa, Kan., Brian Summers, 32, of Las Vegas, Ronald Kelly, 40, of Las Vegas, Clint Tarrant, 54, of Las Vegas, and Terry Williamson, 59, of Las Vegas, are each charged in a criminal indictment with one count of conspiracy to commit mail fraud and wire fraud. Hanzelic, Coyan, Summers and Kelly, are also charged with false claims and aggravated identity theft, and Tarrant is also charged with theft of government funds.
“A major priority of the Department of Justice is prosecuting people who use stolen identities to steal money from the United States Treasury by filing fake tax returns that claim substantial tax refunds,” said U.S. Attorney Bogden. “Working to stop Stolen Identity Refund Fraud, or SIRF, is vital because these schemes threaten to disrupt the orderly administration of our income tax system for hundreds of thousands of law abiding taxpayers and have cost the United States Treasury billions of dollars.”
According to the indictment, the defendants allegedly used the personal identifiers of deceased victims to file false tax returns and obtain fraudulent tax refunds from the U.S. Treasury. Hanzelic allegedly obtained information of deceased persons, including their dates of birth, last known addresses, and Social Security numbers, from various online genealogical databases and provided it for a fee to the co-schemers. The co-schemers then made or caused to be made fraudulent Nevada driver’s licenses, Social Security cards and W-2’s in the names of the victims and used the false identities to file the fraudulent tax returns with the IRS. The defendants used several bank accounts and debit cards to receive the refunds. Defendants Hanzelic and Williamson managed the accounts and paid the co-schemers a salary from the bank accounts they controlled. The defendants allegedly obtained more than $2.7 million in fraudulent tax refunds using this scheme.
Defendants Hanzelic and Summers pleaded not guilty to the charges and are currently in federal custody pending trial.
Defendant Williamson is scheduled for an initial court appearance and arraignment at 3:00 p.m. today before U.S. Magistrate Judge Cam Ferenbach.
Defendant Coyan is scheduled for an arraignment next Tues., Nov. 10, at 3:00 p.m. before U.S. Magistrate Judge Nancy J. Koppe.
Defendants Kelly and Tarrant are not yet in federal custody on the charges.
If convicted, the defendants face up to 20 years in prison and $250,000 in fines on the conspiracy charge, up to five years in prison and $250,000 in fines on each false claims charge, two years in prison, which must run consecutive to the other counts, and $250,000 in fines on the aggravated identity theft charges, and up to 10 years in prison and $250,000 in fines on each theft of government property count.
The case is being investigated by IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Kimberly M. Frayn.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Six Convicted on Business Opportunity Fraud ChargesRead the Press Release
Verdict Brings Total of 22 Individuals Convicted in Scheme
A jury in Central Islip, New York, convicted six men yesterday on felony charges of conspiracy and fraud in the sale of candy vending machine business opportunities, the Department of Justice announced.
Edward Morris “Ned” Weaver, 42, of Perrysburg, Ohio, and Lawrence A. Kaplan, 57, of Brooklyn, New York, were convicted of conspiracy, six counts of fraud and one count each of making false statements to federal agents during a related criminal investigation. Scott M. Doumas, 43, of East Setauket, New York, was convicted of one count of conspiracy and one count of mail fraud. Richard R. Goldberg, 43, of Bay Shore, New York, and Richard Linick, 73, of Coram, New York, were each convicted of conspiracy and one count of wire fraud. Paul E. Raia, 64, of Brookhaven, New York, was convicted of conspiracy and two counts of wire fraud.
The convictions followed a six-week trial before U.S. District Court Judge Joan M. Azrack in federal court in the Eastern District of New York. Each of the defendants faces a statutory maximum sentence of 10 years in prison on the conspiracy count and 25 years in prison on the fraud counts. Weaver and Kaplan face a statutory maximum sentence of five years in prison on the false statements charges.
“These defendants promised their victims the American dream, but knew that what they in fact were offering was a worthless business opportunity,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute those who seek to scam out of everyday Americans the hard-earned money in their retirement accounts and life savings.”
According to evidence presented at trial, managers, sales representatives and operators of “locating companies” associated with Multivend LLC, d/b/a Vendstar, made material misrepresentations about the profits customers would make from bulk candy vending machines. During the telemarketing calls, Vendstar’s sales representatives falsely claimed to operate their own profitable vending machine businesses.
Additional evidence at trial described how Vendstar advertised nationwide in newspapers and on the Internet. Vendstar sales representatives promised to provide consumers with everything they needed to operate a successful business, including vending machines, an initial supply of candy, assistance in finding locations for the vending machines, training and ongoing customer assistance. The locating companies who worked with Vendstar to close deals had no special skills, tools or expertise in finding locations and generally placed consumers’ machines wherever they could as quickly as they could, often in businesses that had not consented to housing the machines and that soon demanded that the machines be removed. The vending machines generated little business and Vendstar’s customers lost all or nearly all of their investments. The typical customer paid about $10,000 for the business opportunity.
Prior to this trial, 16 other Vendstar managers, Vendstar sales representatives and locating company operators pleaded guilty to federal felony charges for related conduct at Vendstar. Evidence presented at trial established that from 2005 to 2010, the Vendstar scheme cost consumers $60 million.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for their investigative efforts. The case was prosecuted by Trial Attorneys Patrick Jasperse and Alan Phelps of the Civil Division’s Consumer Protection Branch.
Silk Road Drug Dealer Sentenced to 9 Years in Federal PrisonRead the Press Release
SACRAMENTO, Calif. — Matthew Luke Gillum, 32, of Meadow Vista, was sentenced today by United States District Judge Morrison C. England Jr. to nine years in prison for conspiring to distribute marijuana and avoiding a currency transaction reporting requirement, United States Attorney Benjamin B. Wagner announced.
According to court documents, Gillum, was the leader of a drug trafficking organization (DTO) that operated in the greater Sacramento area. The Gillum DTO shipped marijuana through the United States mail to various locations outside of California. In order to conduct his drug trafficking operation, Gillum solicited, hired, and utilized the services of at least five individuals to open post office boxes, collect drug trafficking proceeds, ship marijuana parcels, manufacture and supply marijuana, and facilitate the clandestine communications of the DTO.
The Gillum DTO solicited marijuana orders via the Silk Road website. Marijuana purchasers shipped cash payments to various post office boxes controlled by the Gillum DTO throughout the Sacramento region. Once payment was received, the Gillum DTO would ship the selected type and quantity of marijuana to the purchaser. Between August 2012 and July 2013, the Gillum DTO distributed at least 600 pounds of marijuana, much of it through Express Mail parcels sent from the Sacramento region to 16 different states. During the course of the investigation, the United States seized over $700,000 from a bitcoin account controlled by Gillum.
On February 27, 2013, Gillum purchased a diamond ring from Tiffany and Co. for $105,900 in cash. Because the transaction involved more than $10,000 in cash, Tiffany was required to file an IRS Form 8300 (Report of Cash Payments Over $10,000 Received in a Trade or Business) in Gillum’s name. However, although Gillum paid for the ring, he used a nominee to fill out the paperwork as if the nominee purchased the ring.
This case was the product of an investigation by the United States Postal Inspection Service, the Internal Revenue Service-Criminal Investigation, the Sacramento County Sheriff’s Office, the Central Valley HIDTA Task Force, CAL-MET, Placer County Special Investigations Unit, and Rocklin Police Department. Assistant United States Attorneys Justin Lee and Kevin Khasigian prosecuted the case.
Shiprock Man Sentenced to Ten Years for Discharging Firearm While Assaulting Four Indian Women and Two ChildrenRead the Press Release
ALBUQUERQUE – Jeffrey J. Franklin, 31, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 120 month in prison followed by three years of supervised release for violating the federal firearms laws by discharging a firearm during an act of violence.
Franklin was arrested in Aug. 2014, on a criminal complaint charging him with assault with a dangerous weapon and abusing a child by placing the child in a situation that could endanger the child’s life. The complaint alleged that Franklin committed these crimes on Aug. 9, 2014, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, on Aug. 9, 2014, Franklin assaulted four Indian women and two Indian children by firing shots while inside the residence of one of the victims and by firing shots at the victims’ vehicles. Two children were inside one of the vehicles when Franklin shot at the vehicle.
Franklin was subsequently indicted on Nov. 19, 2014, and charged with four counts of assault with a dangerous weapon with intent to do bodily harm, negligently placing minors in a situation that endangered the children’s health, and two counts of using and discharging a firearm during and in relation to a crime of violence.
On Aug. 5, 2015, Franklin pled guilty to one count of using and discharging a firearm during and in relation to a crime of violence.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Seven Montgomery Residents Arrested for Their Involvement in a $290k Check Cashing RingRead the Press Release
Montgomery, Ala. – Seven Montgomery residents were arrested after being indicted by a grand jury for their involvement in a fraudulent check cashing ring being operated out of a Montgomery Wal-Mart store announced U.S. Attorney George Beck from the Middle District of Alabama. The seven individuals arrested were: Courtney Deon Gardner, 25; Audrey Valisha Porterfield, 43; Joye Nicole Perdum, 30; Tamala Caprice Avery, 34; Tocory Dewayne Washington, 31; Brittney Kae Ball, 32; and Joshua Jerome Bean, 25. The individual arrests took place on a variety of dates. The earliest occurred on October 15, 2015, and the final arrest was on November 4, 2015.
According to court documents, Gardner, Porterfield, and Ball worked as tellers in the money center of the Wal-Mart store located on Ann Street in Montgomery. Through their positions, these defendants cashed stolen or fraudulent United States Treasury checks for the other members of the scheme—Washington, Bean, Perdum, and Avery. The seven would then share the proceeds of the fraudulently cashed checks. The investigation revealed that the scheme resulted in a loss of approximately $290,000.00 to the victims—including the United States Government and Wal-Mart Stores, Inc.
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Each defendant was indicted for conspiracy and theft of government property charges which carry a maximum sentence of 10 years imprisonment if convicted. Washington and Bean were also charged with aggravated identity theft offenses and face up to an additional six years in prison if they are convicted.
The case was investigated by the United States Secret Service and the Montgomery Police Department. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Seminar Spokesman Who Claimed to Be Trillion-Dollar Philanthropist Sentenced for Defrauding Investors Out of MillionsRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – November 6, 2015
San Diego, CA - William Ison, who recruited investors by making bogus claims during presentations at financial seminars throughout the United States, was sentenced today to 27 months in custody for defrauding investors, including several from San Diego, of approximately $7 million. U.S. District Judge Dana M. Sabraw also ordered Ison to pay back victim losses as restitution.
Ison previously admitted making fraudulent presentations to potential investors to persuade them to invest in “private placement programs” with co-defendant Douglas Ellingson (who was previously sentenced to 18 months in custody for his role in the scheme). Ison, who represented he was President of Blue Diamond Excavation, Inc. (“BDE”), a mining excavation company based in Newport Beach, claimed investors’ funds would be secured by the company’s assets worth $86 billion, which he had already used to secure medium-term notes (“MTNs”) valued at over $2 billion. In fact, BDE had not produced any income from mining and had not obtained any MTNs.
In addition to lying to seminar participants that he personally made more than $100 million through an investment program, Ison also falsely claimed he managed a consortium of large non-profit foundations that donated more than a trillion dollars annually to various humanitarian causes. Many victims reported they were induced to participate in the scheme only because of Ison’s promises that a portion of profits would go to successful charities that eradicated poverty and developed a cure for AIDS.
Ison and Ellingson, who together were responsible for over $10 million in victims’ losses, initially participated in a scheme involving the Winsome Investment Trust, with James Pantazelos and Robert Andres. Both Pantazelos and Andres were prosecuted for their roles in related fraud schemes. Pantazelos was sentenced in Chicago to 114 months in custody and ordered to pay over $3.3 million in restitution on February 15, 2013 (United States v. Pantazelos, No. 11CR50078 (N.D. Ill. 2011)). Andres was sentenced in Utah to 56 months in custody and ordered to pay over $3.2 million in restitution (United States v. Andres, No. 11CR0985-RJS (D. Utah 2011).
Judge Sabraw noted that the victims were injured in “immeasurable ways” as a result of Ison’s intentional misrepresentations that he knew would cause smart people to part with a lot of money, including from withdrawals of college and retirement savings.
U.S. Attorney Laura Duffy said, “Although we are comforted that these defendants can no longer target citizens in fraudulent get-rich-quick schemes under the guise of humanitarian charity, we understand there is no shortage of con men who seek to separate people from their savings. Thankfully, the FBI and IRS will maintain their vigilance for such scams.”
“Today’s sentencing marks the successful end of an investigation that uncovered an investment fraud scheme laced with a web of financial lies that generated millions of dollars through false promises and deceit,” said Special Agent in Charge Erick Martinez of IRS-Criminal Investigation. “Ison took advantage of unsuspecting investors for purported humanitarian causes. Hopefully he will now understand that his irresponsible actions have real consequences.”
DEFENDANT Case Number: 12CR4030-DMS
William Ison Age: 55
SUMMARY OF CHARGE
Title 18, United States Code, Sections 371, 1343 (Wire Fraud Conspiracy)
Maximum penalty: 5 years of custody; $250,000 Fine (or twice the gross loss of the offense
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
San Antonio Man Sentenced to 135 Years in Federal Prison on Child Pornography ChargesRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 39-year-old Carl Wade Bailes to 135 years in federal prison for production, receipt, possession and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Chief United States District Judge Fred Biery has asked the Government to look into the matter of restitution in this case. During the hearing, Chief Judge Biery stated that Bailes should not retain monies from his military disability or retirement, but that those monies should go to his victims and to possibly cover court costs.
In July, a federal jury convicted Bailes of two counts of production of child pornography, two counts of distribution of child pornography, two counts of possession of child pornography and one count of receipt of child pornography. According to court records and trial testimony, undercover FBI agents in September 2012 discovered numerous files depicting child pornography available for download from a peer-to-peer file sharing program on the Internet. Further investigation identified Bailes as the person responsible for making the child pornography available through the use of his personal computer. On October 22, 2012, FBI agents seized his computer. A subsequent forensics examination of the computer revealed that Bailes had deleted child pornography from his computer including 157 files available for download on September 20, 2012, and 50 files available for download on October 4, 2012. During the investigation, authorities downloaded 31 of those files prior to their deletion. Testimony also revealed that agents were able to recover evidence that Bailes produced images depicting the sexual abuse of two minor females, ages 15 and 6.
“The magnitude of this extraordinary sentence speaks to the depravity of Bailes’ conduct. There is little more that needs to be said about him,” stated United States Attorney Richard L. Durbin, Jr.
“The FBI is committed to protecting children in our community, who are among the most vulnerable and precious in our society,” stated Special Agent in Charge Christopher Combs, FBI San Antonio Division.
This joint investigation was conducted by the FBI and the Bexar County Sheriff’s Office. Assistant U.S. Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rankin Woman Pleads Guilty in Sex Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit sex trafficking, United States Attorney David J. Hickton announced today.
Kiari Nicole Day, 26, of Rankin, Pennsylvania, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, in February 2015, Day knowingly entered into an agreement to conspire to recruit for sex trafficking four female minors who had not attained the age of 18 years.
Judge Arthur J. Schwab scheduled sentencing for Dec. 1, 2015, at 9 a.m. The law provides for a sentence of up to life, a fine of $250,000.00, and a term of supervised release of no more than five years, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Jessica Lieber Smolar and Katherine A. King are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Day.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/.
Portland Man Sentenced to 11 Years for Crack Conspiracy and DistributionRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Marco Gordon, 34, of Portland was sentenced today to 11 years in prison and five years of supervised release for conspiring to distribute cocaine base, often referred to as crack cocaine, and possession with intent to distribute crack cocaine. He was also ordered to forfeit $4,415. He pleaded guilty to the charges on July 7, 2015.
Court records reveal that between December 2013 and January 2015, Marco Gordon conspired with others, including, Russell Gordon and Robert Joiner, to sell crack cocaine in Portland. Members of the conspiracy would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors, including Marco Gordon, who would sell the drugs in the Portland area, and then return the cash proceeds to Russell Gordon. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from several members of the conspiracy. Marco Gordon was arrested on January 9, 2015, and found to be in possession of over 180 grams of crack cocaine and over $4,000.
Robert Joiner was previously sentenced to three years in prison. Russell Gordon has entered a guilty plea and awaits sentencing.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation; the Portland, South Portland, Biddeford and Lewiston Police Departments; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Drug Enforcement Administration. The Maine Drug Enforcement Agency and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Owner of Los Angeles Medical Supply Company Convicted in $4 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Los Angeles convicted a Los Angeles man and owner of a medical supply company today for his role in a $4 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office made the announcement.
According to evidence presented at trial, Valery Bogomolny, 43, used his company, Royal Medical Supply, to bill Medicare $4 million between January 2006 and October 2009 for power wheelchairs (PWCs), back braces and knee braces that were medically unnecessary, not provided to beneficiaries or both. The evidence further showed that Bogomolny created false documentation to support his false billing claims, including creating fake reports of home assessments that never occurred. Bogomolny personally delivered PWCs to beneficiaries who were able to walk without assistance and signed documents stating that he had delivered equipment when the equipment was not actually delivered. Bogomolny ultimately received $2.7 million from Medicare on these false claims.
A sentencing hearing is scheduled for Feb. 29, 2016, before U.S. District Judge S. James Otero of the Central District of California, who presided over the trial.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section. Trial Attorneys Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section are prosecuting this case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Orlando Man Sentenced for Stolen Identity Refund Fraud and Aggravated Identity TheftRead the Press Release
Orlando, FL – United States District Judge Paul G. Byron has sentenced Michael Carvalho to five years and five months in federal prison for theft of government property and aggravated identity theft. He was also ordered to pay a money judgment in the amount of $2,223,083.44, representing the amount of illicit proceeds gained from the theft, and forfeit the contents of three JPMorgan Chase accounts and real properties located at 2615 S. Goldenrod Road in Orlando and 2045 Shadow Drive in Geneva, Florida.
According to the plea agreement, from approximately October 2011 through September 2013, Carvalho passed or attempted to pass more than 441 federal tax refund checks in excess of $2.9 million at six banks in the Middle District of Florida. The checks were fraudulently obtained and/or contained falsely made or forged endorsements or signatures. Along with others, Carvalho deposited these instruments on 180 different days, over a two-year period. The loss suffered by the government was $2,223,083.44.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Shawn P. Napier.