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17 December 2015
Pennsylvania Resident Charged with Providing Material Support to IsilRead the Press Release
HARRISBURG - A Harrisburg, Pennsylvania, resident was arrested today on charges of conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL). Jalil Ibn Ameer Aziz, 19, a U.S. citizen, is charged in a two-count criminal complaint that was unsealed today in the U.S. District Court for the Middle District of Pennsylvania following his arrest. His initial appearance will be at 4:30 p.m. in Harrisburg.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Peter J. Smith of the Middle District of Pennsylvania and Special Agent in Charge William F. Sweeney Jr. of the FBI’s Philadelphia Division.
“According to the allegations in the complaint, Jalil Ibn Ameer Aziz conspired to provide and attempted to provide material support to ISIL by propagating their hateful rhetoric on social media and aiding individuals in their pursuit of traveling overseas to join the designated foreign terrorist organization,” said Assistant Attorney General Carlin. “A prior physical search of Aziz’s residence also revealed a tactical-style backpack in his closet, which contained high-capacity weapons magazines, ammunition, a knife and other survival items. The National Security Division’s highest priority is counterterrorism, and we will remain vigilant in our efforts to hold accountable any and all those who seek to provide material support to terrorists, and to disrupt potential attacks in the United States before they happen.”
“The charges in this case focus on Aziz’s efforts to assist persons seeking to travel to and fight for the Islamic State,” said U.S. Attorney Smith. “These charges are a testament to the perseverance and dedication of those who stand watch over our nation and a clear message that those who support terrorism – will face justice.”
“The FBI’s Joint Terrorism Task Force (JTTF) will move with speed to detect and disrupt those who are involved in facilitation or operational planning in support of a terrorist organization. There is no difference between the two, and we will aggressively pursue every threat in order to protect our communities,” said Special Agent in Charge Sweeney. “In this instance, Aziz operated quietly on behalf of the Islamic State and facilitated others looking to do the same.” Sweeney extended his appreciation to the Harrisburg-based members of FBI Philadelphia’s JTTF, and he encouraged anyone with concerns about suspicious behavior to contact appropriate authorities.
According to the complaint, Aziz has used at least 57 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIL propaganda and espouse pro-ISIL views. Aziz is alleged to have posted a hyperlink containing the names, addresses, and other identifying information of 100 reported members of the U.S. Military and calls for violence against them. Additionally, on at least three occasions, Aziz allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL. According to the allegations in the complaint, Aziz passed location information, including maps and a telephone number, between these ISIL supporters.
A prior search of a backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified kitchen knife, a thumb drive, medication, and a balaclava.
A criminal complaint is only a charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being investigated by the FBI’s JTTF, which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. This case is being prosecuted Assistant United States Attorney Daryl F. Bloom and by trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section.
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Statement of U.S. Attorney Peter Smith
The Aziz case will proceed in federal court in accordance with the law.
The announcement of the charges in this case, as well as in any other terrorism case, must not cause us to give in to fear or unreasonable anger.
Every day, thousands of law-abiding Muslims in Central Pennsylvania work, raise families, attend school, shop, travel and associate with their neighbors and communities peacefully, while at the same time observing their own religious beliefs and ethnic heritage.
The acts and doctrines of violent and delusional terrorists must not become an excuse for hasty or emotional acts of hostility, bigotry or violence in our own society. Such actions only serve the interests of the terrorists and violent extremists – they are part of what they want to achieve.
Violations of civil rights, hate crimes, and threats against individuals, Muslim communities or any other ethnic group, will be investigated and prosecuted by federal authorities just as are acts of terrorism or aiding it.
We must be alert, responsible and smart, as demonstrated by the actions of the FBI and other agencies in this case. Continuing to work with and through federal, state and local law enforcement while applying the law properly are the best and surest ways to fight and defeat terrorism.
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Pecos Man Sentenced to 35 Months for Conviction on Federal Embezzlement and Tax ChargesRead the Press Release
ALBUQUERQUE – A real estate developer working with the Indian Pueblo Federal Development Corporation (IPFDC) was sentenced late yesterday afternoon in federal court in Albuquerque, N.M., for his conviction on embezzlement and tax charges arising out of a scheme to embezzle approximately $3,575,000.00 from the IPFDC. The IPFDC is an Indian tribal organization formed by the 19 Pueblos of New Mexico for the purpose of developing land that once had been the site of the Albuquerque Indian School.
Thomas Keesing, 62, of Pecos, N.M., was ordered to serve 35 months in federal prison to be followed by three years of supervised release. Keesing also was ordered to pay, jointly with his co-defendant, restitution in the amount of $3,575,000 to the IPFDC. In addition, he also was ordered to pay $554,250, the federal taxes owed on the money he embezzled from the IPFDC and failed to report to the IRS, and to perform 360 hours of community service as special conditions of his supervised release. Keesing also was ordered to pay a $40,000 fine.
Keesing and co-defendant Bruce Sanchez, 61, a former Governor of Santa Ana Pueblo, were indicted in Oct. 2012, and charged with a conspiracy offense and ten substantive embezzlement offenses arising out of the scheme to steal funds belonging to the IPFDC. The 15-count indictment also charged Sanchez with three tax evasion counts alleging an aggregate federal tax loss of $655,276, and a misdemeanor count of willful failure to file a tax return. In Aug. 2013, Keesing was charged by information with three misdemeanor counts of failure to file tax returns and those tax charges were consolidated into the case. The information charged Keesing with failure to file federal tax returns for calendar years 2006, 2007 and 2008, even though he received gross income in the aggregate amount of $2,771,250 during those three years.
Between 2003 and 2009, Sanchez and Keesing conspired to embezzle approximately $3,575,000 from the IPFDC. During that time, Sanchez was the president and chief executive officer of the IPFDC. Keesing, a commercial real estate developer and the owner of New Mexico Real Estate, Inc. (NMREI), worked as a consultant for IPFDC in 2002 and 2003. Together, Sanchez and Keesing engaged in a scheme to unlawfully profit from the development of the Albuquerque Indian School property by having Keesing submit false and fraudulently inflated invoices for payment from NMREI to the IPFDC. Sanchez approved the invoices even though the payments were vastly in excess of the value of any services provided by Keesing and NMREI. Keesing then shared the proceeds of the fraudulently obtained IPFDC payments with Sanchez. Between 2003 and 2008 and as a result of this illegal scheme, Keesing and NMREI received $3,775,000 in payments from the IPFDC, including $3,575,000 that was fraudulently obtained. During that same period, Sanchez and Tsachu, LLC, his solely-owned consulting company, received approximately $1,722,823 from Keesing and NMREI.
Keesing entered a guilty plea on Jan. 28, 2015, to aiding and abetting embezzlement from an Indian tribal organization and to a misdemeanor charge of willful failure to file an income tax return in a plea agreement that detailed his role in the embezzlement scheme that defrauded the IPFDC of $3,575,000. According to the plea agreement, Keesing shared the illegally obtained proceeds with Sanchez with Sanchez taking $1,652,823 and Keesing retaining the balance. Keesing acknowledged that Sanchez provided nothing of value in return for this money and used Keesing as a conduit to receive IPFDC funds to which he was not entitled. Keesing participated in the scheme to obtain additional compensation for work he previously performed on behalf of the IPFDC and for which he felt he was not adequately compensated. Although the proceeds Keesing obtained from the IPFDC were taxable income, he failed to file federal tax returns reporting the income.
On Jan. 28, 2015, Sanchez entered a guilty plea to embezzlement from an Indian tribal organization and tax evasion. Sanchez’s plea agreement detailed the embezzlement scheme through which Sanchez and Keesing defrauded the IPFDC of $3,575,000. It states that Sanchez brought Keesing onto the IPFDC development team in 2002 and Keesing performed services for the IPFDC in 2002 and 2003. Thereafter, Sanchez and Keesing entered into a brokerage and development agreement that was never presented to the IPFDC board for approval, and used the agreement as the vehicle to perpetuate their embezzlement scheme. Between Jan. 2005 and Nov. 2008, Keesing and NMREI submitted more than 100 invoices for professional services purportedly provided in connection with the development of the Albuquerque Indian School site. Sanchez arranged for the IPFDC to pay the invoices, and in return, Sanchez and Tsachu, LLC, received more than 100 checks in the aggregate amount of $1,652,823 from Keesing and NMREI. Although this illegally obtained money was taxable income, Sanchez did not report the income to the IRS.
Sanchez was sentenced on Sept. 16, 2015, to 51 months in prison to be followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendant, restitution in the amount of $3,575,000 to the IPFDC. The court also ordered Sanchez to pay the IRS $655,276.00 the federal taxes owed on the money he embezzled from the IPFDC and failed to report to the IRS, as a special condition of his supervised release.
The case was investigated by IRS Criminal Investigation and the Department of the Interior’s OIG, and was prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Paintsville Mayor Indicted for Theft of Government ResourcesRead the Press Release
LONDON, Ky. — Paintsville Mayor Robert Porter and the former general manager of the local, public utility commission have been accused of misappropriating property and city resources.
A federal grand jury in London, Ky., returned an indictment today charging Mayor Porter and Larry Herald, the former general manager of the Paintsville Utilities Commission, with two counts of theft of government property. Herald was also charged with one count of intentionally making false statements to the FBI.
According to the indictment, from 2009 until 2012, Porter, with the knowledge, approval and assistance of Herald, did not pay for utilities services provided to residences that he owned in Paintsville. The total delinquency was in excess of $7,000. In addition, Porter is alleged to have used city funds to pay for personal expenses, such as maintenance on his automobiles and shipping fees for personal items. The indictment further alleges that Porter used a city owned vehicle for personal trips.
It is also alleged that, in August 2015, during the investigation, Herald intentionally made materially false statements to the FBI, about his knowledge of Porter’s delinquent utilities bill.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Howard S. Marshall, Special Agent in Charge, FBI, and Rodney Brewer, Kentucky State Police Commissioner, jointly announced the indictment.
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorneys Kenneth Taylor and Kate Smith are prosecuting this case on behalf of the federal government.
A date for the defendants to appear in court has not yet been set. Misappropriating federal property carries a maximum penalty of 10 years and making false statements to a federal agent carries a maximum penalty of five years. However, any sentence following a conviction will be imposed after the Court carefully considers the U.S. Sentencing Guidelines and the federal statutes.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Oregon Woman Indicted in Tax Refund Fraud SchemeRead the Press Release
A Portland, Oregon, resident was indicted by a federal grand jury yesterday for one count of conspiracy to defraud the United States, 12 counts of wire fraud, 12 counts of filing false claims for tax refunds, four counts of theft of government funds and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Acting U.S. Attorney Billy J. Williams for the District of Oregon and Special Agent in Charge Teri L. Alexander for the Internal Revenue Service (IRS) Criminal Investigation.
Danyelle Calcagno is alleged to have conspired with others to file fraudulent income tax returns with the IRS between January 2008 and April 2011. Calcagno is alleged to have checked into Portland-area hotel rooms to use the hotels’ Internet connections to file at least 32 fraudulent federal income tax returns using the personal identifying information of third parties seeking refunds of at least $167,932. According to the indictment, Calcagno received more than $25,000 in fraudulently procured refunds into her own bank account. Additionally, Calcagno allegedly directed the IRS to deposit refunds onto stored-value debit cards issued in other people’s names.
If convicted, Calcagno faces a statutory maximum sentence of 10 years in prison for the conspiracy charge, five years in prison for each count of filing false claims, 10 years in prison for each count of theft of government funds and 20 years in prison for each count of wire fraud. Calcagno is subject to a mandatory two year sentence on the aggravated identity theft charge, which will run consecutive to any other term of imprisonment she receives. If convicted, Calcagno could be subject to fines, monetary penalties and mandatory restitution.
Acting Assistant Attorney General Ciraolo, Acting U.S. Attorney Williams and Special Agent in Charge Alexander thanked special agents of the IRS-Criminal Investigation’s Stolen Identity Refund Fraud Task Force, who investigated the case and Trial Attorney Leslie A. Goemaat of the Tax Division, who is prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Operation Software Slashers: Six Defendants Plead Guilty to $100 Million Software Piracy SchemeRead the Press Release
U.S. Attorney Tammy Dickinson of the Western District of Missouri announced today that a Seattle man became the sixth defendant convicted in federal court for his role in one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice.
“An investigation that began in Kansas City, Mo., uncovered one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice, with tentacles reaching into cities across the United States and overseas,” said U.S. Attorney Dickinson. “Investigators seized more than $20 million in assets from conspirators who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers. Software piracy is a significant economic crime that victimizes not only software developers and manufacturers, but unwitting consumers. Today’s announcement is part of an ongoing investigation. We can’t provide additional information about the investigation at this time, but we expect that more offenders soon will be brought to justice.”
“Pirating software, particularly on this massive scale, damages the American economy, hurts private businesses and harms the unsuspecting buyer,” said acting Special Agent in Charge James Gibbons of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Chicago. “These plea agreements mark a historic day for our HSI special agents, and our law enforcement partners, in the fight to stop the theft of intellectual property.”
Rex Yang Jr., 37, of Seattle, waived his right to a grand jury and pleaded guilty before Chief U.S. District Judge Greg Kays of the Western District of Missouri on Dec. 16, 2015, to a federal information that charges him with participating in a criminal conspiracy from Jan. 1, 2009, to Dec. 10, 2014.
Yang, who owned and operated Digisoft LLC and Premiere Software Inc., is the sixth and final defendant to plead guilty in separate, but related, cases in this stage of an ongoing criminal investigation that originated with a Kansas City, Missouri, company. Many of these defendants and their related entities had been sued civilly for willful trademark and copyright infringement by Microsoft and other software developers.
The multimillion-dollar scheme, which involved co-conspirators operating overseas in the People’s Republic of China, Singapore and Germany and across the United States, illegally sold millions of dollars of Microsoft Corporation and Adobe Systems Inc. software product key codes through a charitable organization and several online businesses. Product key codes are used to obtain full access to unlocked, licensed versions of various copyrighted software programs. The conspirators distributed more than 170,000 product activation key codes and many of these key codes were each used and activated numerous times.
Investigators seized more than $20.6 million in assets, including $10,188,777 seized from bank and investment accounts, 10 luxury automobiles and 27 parcels of real estate with a total market valuation of $9,739,399, through federal forfeitures. Affidavits filed in those forfeiture complaints estimate that conspirators reaped about $30 million in profits from customers who paid more than $100 million for the software.
Search warrants have been executed at 13 separate residential and business locations in five different states in the course of this investigation.
Kansas City: USA v. Ross
Casey Lee Ross, 29, of Kansas City, pleaded guilty on June 11, 2015, to his role in the conspiracy. The investigation began in 2013, when federal agents in Kansas City learned that Ross, the owner of Software Slashers, had purchased and redistributed tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from sources in China.
Ross admitted that he purchased approximately 30,159 product key codes and counterfeit product key cards. Ross purchased these product key codes at prices well below that of the estimated retail price. In many cases, they were distributed on counterfeit card stock intended to make it appear as if they were genuine Microsoft products.
Ross distributed large quantities of these product key codes and counterfeit Microsoft product key cards to co-conspirators in the United States, who in turn sold the product key codes and counterfeit product key cards through their respective websites, as well as on e-commerce sites such as eBay or Amazon. Ross admitted that he received $1,387,595 from Yang; $1,127,190 from Matthew Lockwood, 38, of Denver; $875,630 from Reza Davachi, 41, of Damascus, Maryland; and payment for approximately 2,569 unauthorized product key codes from Arunachalam Annamalai, 48, a citizen of India residing in Las Vegas.
Seattle: USA v. Yang
Yang admitted that he possessed approximately 10,205 Microsoft certificates of authenticity. In addition to his purchase from Ross, Yang paid $402,929 to Davachi to acquire various software and software components. Yang also admitted that he sold various software items to Lockwood for $1,574,054.
Denver: US v. Lockwood
Lockwood pleaded guilty on June 11, 2015, to his role in the conspiracy. In addition to his purchases from Ross and Yang, Lockwood, doing business as Discount Mountain Inc., paid Davachi $1,243,570 for counterfeit, illicit and/or unauthorized software and software components.
Lockwood admitted that he obtained approximately 6,165 certificates of authenticity, 4,996 “Lenovo” product key cards and approximately 11,000 unauthorized product key codes.
Baltimore: US v. Davachi
Davachi pleaded guilty on Oct. 20, 2015, to his role in the conspiracy. Davachi admitted that, in addition to his purchases from Ross, he paid $672,300 to a counterfeiter within the People’s Republic of China as payment for unauthorized product key codes and counterfeit product key cards.
Federal agents seized approximately 5,040 Microsoft operating system certificates of authenticity – valued at $1.26 million – while executing search warrants at Davachi’s residence and business. Davachi also admitted that he used Project Contact Africa, a charitable organization, as a way of operating his for-profit Rez Candles Inc. business, which sold a host of items online, including illicit, unauthorized and counterfeit software. Davachi was aware that the stated purpose of the charity was to “support a medical clinic in Africa for needy families and children” and children suffering from HIV.
Davachi’s role was managing and maintaining the on-line presence of the Project Contact Africa eBay/PayPal charity since January 2004. Over this time, Davachi actively used the Project Contact Africa charity’s eBay/PayPal account to sell unauthorized, illicit and counterfeit software and software components through eBay, and used the charity’s PayPal account to facilitate payments for these software components.
Davachi managed and maintained the online presence for the Project Contact Africa charity by a person identified in court documents as Individual F, in exchange for a payment to Individual F of approximately $2,000 per month beginning in early 2012. By using the charity’s account to sell his items through the eBay charity store, Davachi saved thousands of dollars per month in various fees that he would have otherwise had to pay eBay. During this time, the Project Contact Africa eBay/PayPal account took in approximately $12 million in revenue, and eBay/PayPal sustained losses of approximately $908,231 due to the waived fees.
Customers of the Project Contact Africa eBay charity store were under the impression that “100 percent” of the proceeds of sales were intended to go to the charity when, in fact, Davachi and Individual F agreed that only a portion of the proceeds would go to the charity; the remainder would go to Davachi and Rez Candles Inc., which, in turn, would use these proceeds to purchase new inventory. Davachi and Individual F intended to repeat this cycle for their benefit. Davachi also admitted that he allowed numerous other individuals, including Ross, to use the Project Contact Africa eBay/PayPal charity store to sell their own items at a significantly reduced amount as compared to other for-profit sales methods on eBay, with the understanding that Ross and others, would pay back to Davachi a portion of their savings.
Las Vegas: USA v. Annamalai
Annamalai pleaded guilty on July 29, 2015, to his role in the software piracy conspiracy. Annamalai is the owner and operator of Vegascart LLC. Annamalai admitted that he purchased approximately 2,569 Microsoft software product key codes from Ross between March and December 2013. These software key codes are calculated at a loss amount of $250 each, therefore, the relevant loss amount in this matter is estimated at $642,250.
Seattle: USA v. Schwartz
Jake Schwartz, 28, of Seattle, owner of JHS Enterprises Inc., pleaded guilty on Oct. 27, 2015, to misprision of a felony. Schwartz admitted that he knew about Yang’s involvement in the conspiracy and helped to conceal it. After Digisoft was sued for willful copyright and trademark infringement by Adobe Systems, Schwartz agreed to form Soft Deals LLC, a new corporation, with Yang.
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Assistant U.S. Attorney Patrick D. Daly of the Western District of Missouri is prosecuting these cases and Assistant U.S. Attorney Curt Bohling of the Western District of Missouri is responsible for the civil proceedings. ICE-HSI investigated the cases.
Oakland Resident Sentenced to 20 Months’ Imprisonment in Tax Fraud ConspiracyRead the Press Release
OAKLAND – Cassandra Tompkins was sentenced to 20 months’ imprisonment on a charge of conspiracy to file false federal tax returns, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon. Today’s sentence follows Tompkins’ guilty plea to one count of conspiracy to file false federal tax returns.
According to the plea agreement, on January 15, 2015, Tompkins, 48, of Oakland, was charged in a thirteen-count indictment along with co-defendants, Cordia Spearman, 46, of Vacaville; Damien Mitchell, 52, of El Sobrante; and Tanya Keith, 48, of Oakland, with conspiracy to file false federal tax returns, in violation of 18 U.S.C. § 286. Tompkins was also charged with theft of government property, in violation of 18 U.S.C. § 641; filing false claims, in violation of 18 U.S.C. § 287; and aggravated identity theft, in violation of 18 U.S.C. § 1028A. Mitchell was also charged with theft of government property and aggravated identity theft. Keith was also charged with wire fraud, in violation of 18 U.S.C. § 1343, and aggravated identity theft.
On August 20, 2015, Tompkins, Spearman, and Mitchell pleaded guilty to conspiracy to file false claims. On September 17, 2015, Keith pleaded guilty to conspiracy to file false claims. Pursuant to the terms of her plea agreement, Tompkins admitted that between January 15, 2011, and May 15, 2012, she, along with Spearman, Mitchell, and Keith, obtained and used personal identifying information to prepare false federal income tax returns. Specifically, defendants used names and social security numbers of individuals to prepare and file 219 false federal income tax returns with the IRS claiming $678,426 in tax refunds, of which $287,498 was paid by the IRS. Tompkins maintained notebooks that listed the names and other personal identifying information for taxpayers, along with false W-2s, which she filed with the IRS. Tompkins, Spearman and Mitchell all received a portion of certain tax refunds.
The sentence for Tompkins was handed down by the Honorable James Donato, U.S. District Judge. Judge Donato also sentenced Tompkins to pay $678,426 in restitution and to serve a 3 year period of supervised release. Tompkins will begin serving the sentence on February 11, 2016.
Spearman is scheduled for sentencing on January 21, 2016, before Judge Donato in San Francisco. The sentencing hearing for Damien Mitchell and Tanya Keith is not yet scheduled.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Oakland International Airport Transportation Security Officer Indicted for Conspiring to Obstruct TSA and Smuggle DrugsRead the Press Release
OAKLAND - A federal grand jury returned an indictment that was unsealed today, charging Kiana Scott Clark with conspiring to defraud the United States by obstructing, impeding, and interfering with the aviation security functions of the Transportation Security Administration (TSA) and conspiring to distribute controlled substances, announced Acting United States Attorney Brian J. Stretch, Federal Bureau of Investigation, Special Agent in Charge David J. Johnson, and TSA Office of Inspection, Investigations Division Special Agent in Charge Regan O. Fong.
According to the indictment, Clark, 28, of San Mateo, Calif., is alleged to have used her position as a Transportation Security Officer corruptly to facilitate the smuggling of drugs into and through the Oakland International Airport for delivery throughout the United States. Specifically, when her co-conspirators had carry-on baggage containing controlled substances, Clark operated the x-ray machine at the TSA security checkpoint deceptively and dishonestly, and permitted her co-conspirators to clear the TSA security checkpoint without the required screening of their baggage for explosives, incendiaries, weapons, and other threats to security. Clark’s criminal conduct is alleged to have taken place no later than September 2013 through October 2015 and is alleged to have involved 100 kilograms and more of marijuana.
Clark was arrested on December 16, 2015, and made her initial appearance in federal court in Oakland on December 17, 2015. Clark is currently being held pending arraignment and appointment of counsel. Clark’s next scheduled appearance is tomorrow, December 18, 2016, before the Honorable Donna M. Ryu, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Clark is charged with two counts of conspiring to defraud the United States by obstructing, impeding, and interfering with the TSA, in violation of 18 U.S.C.§ 371; and two counts of conspiring to distribute and to possess with intent to distribute controlled substances, in violation of 21 U.S.C. §§ 846, 841(a)(1). If convicted, the defendant faces a maximum sentence of 5 years in prison, and a fine of $250,000, for each violation of 18 U.S.C. § 371. For the violations of 21 U.S.C. §§ 846, 841(a)(1), one count carries a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years in prison, and a fine of $5,000,000; conviction on a second count carries a maximum sentence of 5 years in prison, and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions and National Security Unit at the United States Attorney’s Office, and is the result of an investigation by the Federal Bureau of Investigation, Alameda County Sheriff’s Office, and TSA Office of Inspection, Investigations Division.
North Dakota Woman Sentenced for LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mandan, North Dakota, woman convicted of Larceny was sentenced on December 14, 2015, by U.S. District Judge Charles B. Kornmann.
Dawn Muir, age 54, was sentenced to 41 months in custody, followed by 3 years of supervised release, $29,973.13 in restitution to the Pretty Bird Woman House, and a special assessment of $100 to the Federal Crime Victims Fund.
Muir was indicted by a federal grand jury on January 17, 2014. She pled guilty on June 22, 2015.
The conviction stemmed from a series of incidents beginning on or about February 2, 2011, while Muir was the Executive Director of the Pretty Bird Woman House, a domestic violence shelter located on the Standing Rock Indian Reservation, in McLaughlin, South Dakota. Muir was writing checks to herself from an emergency fund the shelter maintained to provide food and relocation money to victims of domestic violence. The shelter received several grants from the Department of Justice and Health and Human services to fund its day-to-day operations. Muir would write the checks payable to herself, claiming the money was mileage reimbursement, travel reimbursement, or used for other non-emergency tasks. When investigators questioned her about the account, Muir was unable to produce receipts or vouchers to verify the expenditures. Corresponding deposits into Muir's personal bank account were also discovered.
The check writing scheme resulted in a loss to the Pretty Bird Woman House in the amount of $29,973.13.
This case was investigated by the U.S. Department of Justice Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Muir shall self-report by December 29, 2015.
Niagara County Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Paul Guzock, 58, of Middleport, NY, who was convicted of maintaining a premises for the purpose of manufacturing, distributing and using marijuana and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 30 months in prison by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on July 18 2012, the defendant was arrested at his residence following the execution of a search warrant. Investigators located several firearms and a marijuana grow operation which included 341 plants.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.
New York Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A Brooklyn, New York tax return preparer pleaded guilty today in the U.S. District Court for the Eastern District of New York to one count of aiding and assisting in the preparation of false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Phillip Baynes, 51, was charged in a 31-count indictment with preparing false tax returns for tax years 2008, 2009 and 2010 for 12 clients of his tax return preparation business, Small Mans Accounting and Tax Service, located in Brooklyn. The indictment filed last March alleged that Baynes included false and fraudulent expenses on the clients’ tax returns, including false itemized deductions for charitable contributions and unreimbursed employee expenses.
U.S. District Judge Kiyo A. Matsumoto set sentencing for May 31, 2016. Baynes faces a statutory maximum sentence of three years in prison and a $250,000 fine.
Acting Assistant Attorney General Ciraolo thanked agents of Internal Revenue Service– Criminal Investigation, who investigated the case and Trial Attorneys Mark Kotila and Brittney N. Campbell of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Sentenced to Six Years in Prison for Receiving and Accessing Child PornographyRead the Press Release
Eighteen Others Previously Sentenced to Prison for Illegal Activity on Child Pornography Websites Based on Tor Network
A New York man was sentenced to six years in federal prison today for receiving and accessing child pornography in connection with his use of a website based on the Tor network.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Acting Special Agent in Charge James C. Langenberg of the FBI’s Omaha, Nebraska, Division made the announcement.
“Child sex offenders are migrating to anonymous networks where they feel free to pursue evil and violent acts without fear or hesitation,” said Assistant Attorney General Caldwell. “Anonymization is just one of many challenges we face when combatting the sexual victimization of children, as offenders seek to hide their activities behind technological barriers. But while identifying these criminals is difficult, it is not impossible. We will use every legal authority we have to identify and root out these predators and protect children from harm.”
“Today's sentence and the others imposed earlier demonstrate that those who exploit children will be aggressively pursued and prosecuted to the full extent of the law,” said U.S. Attorney Gilg. “Those who think they are acting anonymously on the Internet will be found and held accountable.”
“Children must be protected from sexual exploitation, and we remain committed to investigating the production and distribution of child pornography,” said Special Agent in Charge Langenberg. “Today’s sentencing reflects the FBI’s persistent declaration to those who advertise, distribute, possess and trade child pornography, that we will look for you and we will find you.”
Kirk Cottom, 45, of Rochester, New York, pleaded guilty on Aug. 3, 2015, to receiving and accessing with intent to view child pornography before Senior U.S. District Judge Joseph F. Bataillon of the District of Nebraska.
In connection with his guilty plea, Cottom admitted that in November 2012, he accessed images of child sexual exploitation via a website then operating in Omaha. The website was accessible only through the Tor network, an Internet application specifically designed to facilitate anonymous communication. The website’s users employed advanced technological means in order to undermine law enforcement’s attempts to identify them. In addition to accessing this website, Cottom’s personal computer contained more than 600 child exploitation images and contained evidence of significant Internet activity showing access to child pornography websites on the Tor network.
Cottom was the 19th individual to be convicted as part of an ongoing investigation targeting three child pornography websites based on the Tor network. Aaron McGrath, who ran the websites, was convicted in the District of Nebraska of engaging in a child exploitation enterprise and was sentenced to 20 years in prison in January 2014.
The 17 other individuals previously convicted and sentenced in connection with their respective illegal activity on one of those websites are:
- Timothy Defoggi, then 56, formerly of Gaithersburg, Maryland, was convicted after trial of engaging in a child exploitation enterprise and accessing with intent to view child pornography and sentenced to 25 years in prison by Chief U.S. District Judge Laurie Smith Camp of the District of Nebraska on Jan. 5, 2015.
- Jason Flanary, then 42, formerly of Chicago, the Philippines and Guam, pleaded guilty to engaging in a child exploitation enterprise and was sentenced to 20 years in prison by Judge Bataillon on June 30, 2014.
- Wesley Cameron, then 22, formerly of Ashford, Alabama, pleaded guilty to conspiracy to advertise child pornography and was sentenced to 15 years in prison by Judge Bataillon on Oct. 24, 2014.
- Zackary Austin, 28, formerly of Reno, Nevada, pleaded guilty to conspiracy to distribute child pornography and was sentenced to 16 years in prison by Judge Bataillon on Nov. 6, 2014.
- Charles MacMillan, 29, formerly of Rockville, Maryland, pleaded guilty to conspiracy to advertise child pornography and was sentenced to 12 years in prison by Judge Bataillon on Nov. 7, 2014.
- David William Peer, then 38, formerly of Spanish Fork, Utah, who previously had been convicted of a federal child pornography-related offense, pleaded guilty to accessing with intent to view child pornography and was sentenced to 10 years in prison by Judge Bataillon on March 27, 2015.
- Joshua Welch, then 29, formerly of Pensacola, Florida, was convicted after trial of receiving and accessing child pornography and was sentenced to 10 years in prison by Judge Bataillon on May 1, 2015.
- Michael Huyck, then 37, formerly of Lincoln, Nebraska, was convicted after trial of receiving, accessing and possessing child pornography and was sentenced to six years in prison by Judge Bataillon on Sept. 1, 2015.
- Warren Tidwell, then 38, pleaded guilty to accessing with intent to view child pornography and was sentenced to five years in prison by Judge Bataillon on Nov. 20, 2015.
- Russell Glenn Pierce, then 57, formerly of Hollywood, Florida, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on Oct. 2, 2015.
- Thomas Spencer, then 48, formerly of North Las Vegas, Nevada, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on May 12, 2015.
- Vincent Diberardino, then 64, formerly of Newington, Connecticut, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on May 15, 2015.
- Brandon Moore, then 31, formerly of Stockton, California, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on Oct. 5, 2015.
- Gary Reibert, then 61, formerly of Troy, Ohio, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on Aug. 13, 2015.
- David Smith, then 28, formerly of Butler, Pennsylvania, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on June 26, 2015.
- Kevin Pitman, then 37, formerly of Austin, Texas, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on June 26, 2015.
- John Sebes, then 54, formerly of Wyomissing, Pennsylvania, pleaded guilty to accessing with intent to view child pornography and was sentenced to 42 months in prison by Judge Bataillon on Dec. 3, 2014.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
The FBI’s Omaha Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Europol, the European Union’s law enforcement agency, as well as members of the FBI’s Violent Crimes Against Children International Task Force, assisted in the investigation. Trial Attorney Keith Becker of CEOS and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska prosecuted this case.
New York Man Sentenced to Six Years in Prison for Receiving and Accessing Child PornographyRead the Press Release
A New York man was sentenced to six years in federal prison today for receiving and accessing child pornography in connection with his use of a website based on the Tor network.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg of the District of Nebraska and Acting Special Agent in Charge James C. Langenberg of the FBI’s Omaha, Nebraska, Division made the announcement.
“Child sex offenders are migrating to anonymous networks where they feel free to pursue evil and violent acts without fear or hesitation,” said Assistant Attorney General Caldwell. “Anonymization is just one of many challenges we face when combatting the sexual victimization of children, as offenders seek to hide their activities behind technological barriers. But while identifying these criminals is difficult, it is not impossible. We will use every legal authority we have to identify and root out these predators and protect children from harm.”
“Today's sentence and the others imposed earlier demonstrate that those who exploit children will be aggressively pursued and prosecuted to the full extent of the law,” said U.S. Attorney Gilg. “Those who think they are acting anonymously on the Internet will be found and held accountable.”
“Children must be protected from sexual exploitation, and we remain committed to investigating the production and distribution of child pornography,” said Special Agent in Charge Langenberg. “Today’s sentencing reflects the FBI’s persistent declaration to those who advertise, distribute, possess and trade child pornography, that we will look for you and we will find you.”
Kirk Cottom, 45, of Rochester, New York, pleaded guilty on Aug. 3, 2015, to receiving and accessing with intent to view child pornography before Senior U.S. District Judge Joseph F. Bataillon of the District of Nebraska.
In connection with his guilty plea, Cottom admitted that in November 2012, he accessed images of child sexual exploitation via a website then operating in Omaha. The website was accessible only through the Tor network, an Internet application specifically designed to facilitate anonymous communication. The website’s users employed advanced technological means in order to undermine law enforcement’s attempts to identify them. In addition to accessing this website, Cottom’s personal computer contained more than 600 child exploitation images and contained evidence of significant Internet activity showing access to child pornography websites on the Tor network.
Cottom was the 19th individual to be convicted as part of an ongoing investigation targeting three child pornography websites based on the Tor network. Aaron McGrath, who ran the websites, was convicted in the District of Nebraska of engaging in a child exploitation enterprise and was sentenced to 20 years in prison in January 2014.
The 17 other individuals previously convicted and sentenced in connection with their respective illegal activity on one of those websites are:
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Timothy Defoggi, then 56, formerly of Gaithersburg, Maryland, was convicted after trial of engaging in a child exploitation enterprise and accessing with intent to view child pornography and sentenced to 25 years in prison by Chief U.S. District Judge Laurie Smith Camp of the District of Nebraska on Jan. 5, 2015.
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Jason Flanary, then 42, formerly of Chicago, the Philippines and Guam, pleaded guilty to engaging in a child exploitation enterprise and was sentenced to 20 years in prison by Judge Bataillon on June 30, 2014.
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Wesley Cameron, then 22, formerly of Ashford, Alabama, pleaded guilty to conspiracy to advertise child pornography and was sentenced to 15 years in prison by Judge Bataillon on Oct. 24, 2014.
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Zackary Austin, 28, formerly of Reno, Nevada, pleaded guilty to conspiracy to distribute child pornography and was sentenced to 16 years in prison by Judge Bataillon on Nov. 6, 2014.
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Charles MacMillan, 29, formerly of Rockville, Maryland, pleaded guilty to conspiracy to advertise child pornography and was sentenced to 12 years in prison by Judge Bataillon on Nov. 7, 2014.
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David William Peer, then 38, formerly of Spanish Fork, Utah, who previously had been convicted of a federal child pornography-related offense, pleaded guilty to accessing with intent to view child pornography and was sentenced to 10 years in prison by Judge Bataillon on March 27, 2015.
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Joshua Welch, then 29, formerly of Pensacola, Florida, was convicted after trial of receiving and accessing child pornography and was sentenced to 10 years in prison by Judge Bataillon on May 1, 2015.
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Michael Huyck, then 37, formerly of Lincoln, Nebraska, was convicted after trial of receiving, accessing and possessing child pornography and was sentenced to six years in prison by Judge Bataillon on Sept. 1, 2015.
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Warren Tidwell, then 38, pleaded guilty to accessing with intent to view child pornography and was sentenced to five years in prison by Judge Bataillon on Nov. 20, 2015.
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Russell Glenn Pierce, then 57, formerly of Hollywood, Florida, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on Oct. 2, 2015.
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Thomas Spencer, then 48, formerly of North Las Vegas, Nevada, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on May 12, 2015.
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Vincent Diberardino, then 64, formerly of Newington, Connecticut, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on May 15, 2015.
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Brandon Moore, then 31, formerly of Stockton, California, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on Oct. 5, 2015.
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Gary Reibert, then 61, formerly of Troy, Ohio, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on Aug. 13, 2015.
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David Smith, then 28, formerly of Butler, Pennsylvania, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on June 26, 2015.
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Kevin Pitman, then 37, formerly of Austin, Texas, pleaded guilty to accessing with intent to view child pornography and was sentenced to four years in prison by Judge Bataillon on June 26, 2015.
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John Sebes, then 54, formerly of Wyomissing, Pennsylvania, pleaded guilty to accessing with intent to view child pornography and was sentenced to 42 months in prison by Judge Bataillon on Dec. 3, 2014.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
The FBI’s Omaha Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Europol, the European Union’s law enforcement agency, as well as members of the FBI’s Violent Crimes Against Children International Task Force, assisted in the investigation. Trial Attorney Keith Becker of CEOS and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska prosecuted this case.
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New York Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
Mufid A. Elfgeeh, 31, of Rochester, New York, pleaded guilty today to attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, before U.S. District Judge Elizabeth A. Wolford of the Western District of New York.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney William J. Hochul Jr. of the Western District of New York and Special Agent in Charge Adam S. Cohen of the FBI’s Buffalo Division.
“Mufid Elfgeeh pleaded guilty to attempting to provide material support to ISIL through his various efforts to recruit individuals, raise funds and coordinate logistics for the designated terrorist group,” said Assistant Attorney General Carlin. “ISIL’s horrific violence is waged against men, women and children, as well as against Muslims and non-Muslims alike. The National Security Division will continue to vigorously investigate and prosecute anyone who seeks to provide material support to the designated foreign terrorist organization.”
“Thanks to today’s convictions, one of the first ISIL recruiters ever captured in this country stands convicted of terrorism related charges,” said U.S. Attorney Hochul. “While our case against this defendant will conclude with a very long jail sentence, our ongoing efforts to defeat ISIL and other terrorist groups will continue until all are brought to justice. As it did in this case, the public should continue to report to law enforcement any suspicious individuals or activities and thereby hasten the demise of these killers.”
“Mufid Elfgeeh failed because law enforcement used its best weapon – unity,” said Special Agent in Charge Cohen of the FBI’s Buffalo Division. “Our success in this case is directly linked to the notion that we are stronger and more formidable working in concert with our community than standing alone. This approach, which has been embraced by our law enforcement counterparts and the intelligence community, must continue for us to prevail.”
According to the plea agreement and other court documents, Elfgeeh used social media to receive and disseminate information about foreign terrorist groups and their activities in Syria and other countries; to declare his support for violent jihad, ISIL and other foreign terrorist groups; to inspire and encourage others to engage in violent jihad and/or pledge allegiance to ISIL and other foreign terrorist groups; and to seek financial contributions to assist jihadist fighters.
From December 2013 through May 31, 2014, Elfgeeh actively recruited and attempted to send two individuals – referred to as Individuals A and B, both of whom were cooperating with the FBI at the time – to Syria to join and fight on behalf of ISIL.
Elfgeeh sent anti-American ISIL propaganda videos to Individual B and arranged for an English-speaking ISIL contact to communicate with Individual B over Facebook about the state of affairs in Syria. In addition, Elfgeeh paid more than $240 for Individual B to obtain a copy of his birth certificate, passport photographs and an expedited passport. Elfgeeh also purchased a laptop computer and a high-definition action camera for Individuals A and B to take to Syria. The defendant provided guidance to Individuals A and B about traveling so that they could avoid detection and the vetting process involved in joining ISIL. In May 2014, Elfgeeh arranged for an overseas contact to coordinate the logistics of the trip and the admission of Individuals A and B into ISIL-controlled territory in Syria.
According to the plea agreement and other court documents, Elfgeeh also sent $600 to an individual in Aden, Yemen, in an effort to assist that individual in traveling from Yemen to Syria for the purpose of joining and fighting on behalf of ISIL.
In addition, in March 2014, Elfgeeh communicated with a Syrian national who purported to be the military commander of a battalion of fighters located in Homs, Syria. At the time, the battalion was blockaded in Homs and needed military support, including ammunition, mortar shells and explosives that could penetrate armored vehicles, to break out. Elfgeeh facilitated communication and coordination between the battalion commander and ISIL leadership for the purpose of the commander and his battalion pledging their allegiance to and joining ISIL.
The charges carry a maximum penalty of 30 years in prison, a $250,000 fine and lifetime supervised release. Elfgeeh’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. He has been detained in federal custody since his arrest on May 31, 2014. Sentencing is scheduled for March 17, 2016, in front of Judge Wolford.
The case is being investigated by the FBI’s Rochester Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant U.S. Attorneys Brett A. Harvey and Frank H. Sherman of the Western District of New York, with the assistance of Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Elfgeeh Plea Agreement
New York Man Convicted of Conspiracy to Distribute Oxycodone and OxymorphoneRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Damian Corbett, 40, of New Rochelle, New York, was found guilty today in U.S. District Court following a two-day jury trial of conspiracy to distribute oxycodone and oxymorphone.
According to court records, on December 16, 2014, federal agents and task force officers seized approximately 1,000 oxycodone and oxymorphone pills at the home of a North Berwick, Maine resident. Investigators learned that, since at least June 2013, Corbett had been supplying those pills to the resident who, in turn, distributed them in southern Maine. On December 19, 2014, Corbett was arrested shortly after he met with the resident and agents seized about $2,500 that he had just been paid for a delivery.
Corbett faces up to 20 years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation office.This case was investigated by the U.S. Drug Enforcement Administration, Portsmouth Tactical Diversion Squad, North Berwick Police Department, Maine State Police, and York County Sheriff’s Office.
New Orleans Woman Indicted for Theft of Public Money and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MYRNA SHILOH, age 56, of New Orleans, was charged today in a two count Indictment with theft of public money and aggravated identity theft.
According to the court documents, SHILOH lived with Individual “A”. Individual “A” was receiving Social Security Benefits until she died on May 16, 1998. After she passed away, checks continued to be sent from the Social Security Administration to Individual “A’s” address in New Orleans. SHILOH cashed the checks from February 3, 1999 to March 3, 2015 in the amount of $187,960.
SHILOH forged the name of Individual “A” on the checks. Bank records confirm the deposit of the forged checks into SHILOH’s account. SHILOH changed her address after Hurricane Katrina in order to keep getting the checks.
If convicted on Count 1, SHILOH faces a possible maximum sentence of ten years imprisonment, to be followed by up to three years of supervised release, and/or a fine of $250,000. If convicted on Count 2, SHILOH faces a possible consecutive sentence of two years imprisonment.
U.S. Polite reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Secret Service, Office of Inspector General in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
New Orleans Man Pleads Guilty in Conspiracy to Traffic Heroin Using MegabusRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DONALD EALY, age 37, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute over one kilogram of heroin.
EALY was one of eight defendants charged in a 21-count superseding Indictment on September 18, 2015. According to court documents, this Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City, New Orleans. The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
EALY is facing not less than 10 years and a maximum of life imprisonment, as well as a possible fine of up to $10,000,000. U.S. District Judge Carl J. Barbier will sentence EALY on March 31, 2016
U.S. Attorney Polite praised the work of the FBI in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Nashoba Man Sentenced to 50 Months for AssaultRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DERRICK CASEY FRY, a/k/a Derrek Casey Fry, age 35, of Nashoba, Oklahoma, was sentenced to 50 months imprisonment and 3 year Supervised Release for ASSAULT RESULTING IN SERIOUS BODILY INJURY, in violation of Title 18, United States Code, Sections 1153, 1151 and 113(a)(6).
The charge is a result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant was indicted in July, 2015 and pled guilty in August, 2015.
The Indictment alleged that from on or about the 23rd day of June, 2015, in the Eastern District of Oklahoma, in Indian Country, within the special maritime and territorial jurisdiction of the United States, the defendant, DERRICK CASEY FRY, a/k/a Derrek Casey Fry, an Indian, assaulted James Belvin, resulting in serious bodily injury.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Muskogee Man Sentenced to 35 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Steven Dwight McDaniel, age 27, of Muskogee, Oklahoma, was sentenced to 35 months imprisonment and 3 years Supervised Release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The charge arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Indictment alleged that on or about March 18, 2015, in the Eastern District of Oklahoma, the defendant, STEVEN DWIGHT MCDANIEL, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: one HI-Point Firearm, Model JHP, .45 ACP caliber pistol, said firearm having been shipped and transported in interstate commerce.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Kristin Harrington represented the United States.
Modesto Man Indicted for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging Javier Haro, 34, of Modesto, with being a felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Modesto Police Department. Assistant United States Attorney Daniel Griffin is prosecuting the case.
According to court documents, on July 27, 2015, Haro was in possession of a Glock 9 mm handgun, a Smith and Wesson 9 mm handgun and 9 mm ammunition. The indictment alleges that Haro has prior felony convictions.
If convicted, Haro faces a maximum statutory penalty for each count of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Missouri man charged with drug trafficking, unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Casey Tyler Nagy, 28, originally of Missouri, with distribution of LSD and unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Nagy is alleged to have distributed lysergic acid diethylamide (LSD) in June 2015 in Wetzel County, West Virginia while in unlawful possession of a firearm. Nagy was convicted of the felony offense of “Distribution of Marijuana” in the Criminal District Court of Orleans Parish, Louisiana. As a result of that conviction, he is prohibited from possessing a firearm. At the time of the purported drug offense in June 2015, Nagy was allegedly discovered in unlawful possession of a .303 caliber rifle.
Nagy is charged with one count of “Distribution of LSD,” for which he faces up to 10 years in prison and a fine of up to $500,000. He is further charted with one count of “Felon in Possession of a Firearm,” for which he faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Martinsville Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Millington Man Sentenced to 25 Years for Running Teen Sex Trafficking RingRead the Press Release
Memphis, TN – A 51-year-old Millington man who trafficked multiple underage teens for sex has been sentenced to serve a quarter-century in prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
"Trafficking the bodies of minors for financial gain is reprehensible and will not be tolerated," said U.S. Attorney Stanton. "Michael Lilley found this out the hard way. His deplorable actions have earned him a quarter-century sentence in federal prison with no chance of parole."
According to information presented in court, from May to September 2013, Lilley had four minors engage in commercial sex acts out of his Millington home, backhouse, van, and other locations. The victims were 15-, 16-, and 17-year-old students, some of whom attended Millington-area high schools.
Lilley used text messages and explicit photos of the teens to market them to various males willing to pay for sex. In addition to trafficking the victims out of his residence and vehicle, Lilley transported the juveniles to local restaurants and homes where they would engage in commercial sex acts. Lilley collected the proceeds provided from patrons, splitting them with the victims.
According to court information, the teens were trafficked for as little as $60 per sexual endeavor. Text messages disclosing conversations between Lilley and clients regarding price ranges were displayed in court.
Physical evidence presented during Lilley’s trial in September 2015 included images of both used and unused condoms and condom wrappers throughout his home and vehicle. Trafficking victims testified, recollecting their experiences working for Lilley while underage teens.
On September 22, 2015, a jury found Lilley guilty of four counts of sex trafficking of a minor; one count of conspiracy to commit sex trafficking; three counts of sexually exploiting a minor; one count of attempting to sexually exploit a minor; three counts of distributing visual depictions of a minor engaged in sexually explicit conduct; and one count of possessing at least one digital storage device containing visual depictions of minors engaged in sexually explicit conduct.
On Thursday, December 17, 2015, Lilley was sentenced by U.S. District Judge John T. Fowlkes Jr. to 25 years imprisonment. He will also be required to serve 20 years of supervised release.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Unit.
First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Miami-Dade County Resident Sentenced to 8 ½ Years in Prison for Identity Theft Fraud Scheme Involving Skimming and Manufacturing Credit Cards and Filing False Tax ReturnsRead the Press Release
A Miami-Dade County resident was sentenced to 102 months in prison, to be followed by 3 years of supervised release, for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards and file false federal income tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami Dade Police Department (MDPD), made the announcement.
Christopher M. Mack, 31, previously pled guilty to one count of possession of fifteen or more counterfeit and unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of possession of device making equipment, in violation of Title 18, United States Code, Section 1029(a)(4), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Mack engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant. Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of approximately 600 individuals, loose sheets of paper filled with over 1,000 SocialSecurity numbers, and thirteen white envelopes containing approximately $200,000 worth of Western Union money order receipts.
Law enforcement reviewed the contents of the spiral notebooks and discovered numerous handwritten entries detailing the filing of federal tax returns. The IRS confirmed that the entries corresponded to fraudulently filed tax returns submitted to the agency.
Mr. Ferrer commended the investigative efforts of IRS-CI and the MDPD. The case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Memphis Man Sentenced to 85 Months for Mortgage Fraud, Identity TheftRead the Press Release
Memphis, TN – A Memphis man has been sentenced to more than seven years in federal prison as a result of his conviction in two separate cases involving mortgage fraud and identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, Marcus Jerome Payne, 46, of Memphis, and a co-conspirator fraudulently obtained two mortgage loans totaling approximately $530,000 between December 2008 and March 2009. Payne and his co-conspirator were able to apply for and obtain the mortgage loans by unlawfully using the name, social security number and other personal identifying information of another person.
Payne and his co-conspirator fraudulently obtained a mortgage loan of more than $265,000 from Fifth Third Bank. They obtained another loan of more than $264,000 from CitiBank. The loans were secured to buy two residential properties located in the city’s Central Avenue area.
In July 2015, Payne pled guilty to one count of conspiracy to commit mail, wire and bank fraud for his role in the mortgage loan fraud scheme.
Payne’s co-conspirator, Booker Smith, 32, of Memphis, pled guilty to one count of bank fraud in October 2015. He’s scheduled to be sentenced by U.S. District Judge Samuel H. Mays on Friday, January 8, 2016. He faces up to 30 years and a fine of up to $1 million when sentenced. He will also be ordered to pay restitution in the total amount of $265,155.22.
Payne also pled to unrelated charges of wire fraud and identity theft which were outlined in a criminal information filed by the U.S. Attorney’s Office. The wire fraud charge alleged that Payne fraudulently obtained two other mortgage loans for residences in Shelby County. The loans totaled approximately $661,200 between January and March 2006.
The criminal information also alleged that Payne fraudulently used the name of another individual to obtain an Arkansas Driver’s License, a mortgage loan origination agreement, and credit between June 2010 and July 2015.
On Tuesday, December 15, 2015, Payne was sentenced by Judge Mays to serve 85 months. He was also ordered to pay restitution in the total amount of $265,289.40 and forfeit $521,000.
This case was investigated by the Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation Division; U.S. Postal Inspection Service; and the U.S. Department of Housing and Urban Development Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Massachusetts Man Pleads Guilty to Transporting A Minor for Illegal Sexual ActivityRead the Press Release
CONCORD, NEW HAMPSHIRE - Lawrence Marks, 35, of Tewksbury, Massachusetts, appeared in United States District Court today and pled guilty to transportation of a minor in interstate commerce for illegal sexual activity, announced Acting U.S. Attorney Donald Feith.
In November of 2014, the New Hampshire State Police were conducting an investigation into the possible sexual abuse of several children in Franklin, New Hampshire. The investigation led to Lawrence Marks of Tewksbury, Massachusetts whom several witnesses identified as a man seen frequently with one of the minor children. Marks subsequently confessed to taking the child from New Hampshire to Massachusetts on several occasions where he engaged in sexual activity with her.
“Protecting our children from predators such as Mr. Marks is one of the top priorities of this office,” stated Acting U.S. Attorney Donald Feith. “This case demonstrates the results that can be achieved when local, state and federal law enforcement combine their resources to identify these perpetrators and bring them to justice.”
Marks is scheduled to be sentenced on March 30, 2016. He faces a mandatory minimum sentence of 10 years.
The case was investigated by the New Hampshire State Police and the Franklin Police Department in conjunction with the Federal Bureau of Investigation and the Billerica, Massachusetts, Police Department. This case is being prosecuted by Assistant United States Attorney Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Maryville Woman Sentenced for Murder-for-Hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Maryville, Mo., woman was sentenced in federal court today for a murder-for-hire scheme in which she negotiated with an undercover federal agent and, without realizing it, her intended victim.
Kristina M. Swinford, 33, of Maryville, was sentenced by U.S. Chief District Judge Greg Kays to eight years and six months in federal prison without parole.
Swinford, who pleaded guilty on May 20, 2015, admitted that she contacted two individuals to kill the wife of her ex-boyfriend. Her intended victim is identified in court documents as “AM.”
According to court documents, Swinford met three times with an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives to negotiate the murder-for-hire. Following her third meeting with the ATF agent, Swinford also negotiated via Facebook with another person, without realizing that she was actually communicating with her intended victim, who had created an online profile under another person’s name.
On Aug. 25, 2014, a cooperating source in Taylor County, Iowa, reported to law enforcement authorities about traveling to Maryville and having a discussion with Swinford. Swinford complained about AM and made it clear she wanted AM kidnapped, killed or gone. AM had gone through a brief separation from her husband, according to court documents, and during that time he was involved in a relationship with Swinford. After C.M. broke up with her, both AM and CM reported harassment and stalking behavior by Swinford. AM and her husband had been granted ex parte orders of protection in an effort to keep Swinford from stalking or harassing them.
The cooperating source was instructed to meet with Swinford again and provide her with the contact information of an undercover ATF agent if she still wanted someone to kill AM. The undercover agent contacted Swinford on Aug. 28, 2014, and arranged to meet.
Swinford met with the undercover agent on three separate occasions, each time sitting in a vehicle in a Wal-Mart parking lot in Bethany, Mo., and discussed several scenarios for killing AM. Swinford discussed several ways in which the undercover agent could gain access to AM suggesting that he make it appear that AM was killed in a drug deal gone bad, that AM be kidnapped from her house or kidnapped while she was walking (so there would be no blood at AM’s house). Swinford also discussed several ways in which AM would actually be murdered, suggesting that AM be shot, beaten and shot a couple times then thrown in the river or buried, that she be shot in the face and the chest or maybe both times in the face, or that AM be provided a lethal dose of drugs. Swinford told the undercover agent that she wanted AM to suffer and that AM should be beaten for five to 10 minutes before she was killed.
Swinford agreed to pay $10,000 prior to AM being killed and another $10,000 afterward. She provided the undercover agent with a photo of AM, a map of her house and other information. At the third meeting on Sept. 10, 2014, the undercover agent told Swinford he could pick up AM after she dropped her kids off at school, then kill her and cut off her hands and head and toss them into the river to make it look like Mexican drug dealers. Swinford agreed with this plan and the undercover agent told her to get a hold of him when she got the money.
On Sept. 19, 2014, AM reported to local law enforcement authorities that Swinford had been discussing AM’s murder on Facebook. According to court documents, AM had created a false Facebook account for a real person she knows, who is identified in court documents as WB. AM told authorities she created the account because her husband had blocked his Facebook account so she could not view her husband’s Facebook page.
AM reported that on Sept. 18, 2014, she had logged in to delete the fake account but found a message from Swinford from Aug. 9, 2014, addressed to whom Swinford clearly thought was the real WB. AM used the false Facebook account to engage Swinford in a lengthy conversation. During the conversation, Swinford expressed her dislike for AM. According to AM, further in the conversation, she and Swinford discussed WB (the real person but fake Facebook account) harming her (AM).
AM told police that she was terrified and had no way of knowing if Swinford had spoken to anyone else about having her hurt or murdered. ATF agents had not notified AM or her husband that ATF had been conducting the investigation into Swinford hiring the undercover agent.
This case was prosecuted by Assistant U.S. Attorney Alison Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maryville, Mo., Department of Public Safety.
Martha’s Vineyard Man Pleads Guilty to Social Security Fraud and Tax EvasionRead the Press Release
BOSTON – An Oak Bluffs man pleaded guilty today in U.S. District Court in Boston to stealing $160,025 in Social Security benefits and falsifying his 2010 tax return.
Vernon Harris, 63, pleaded guilty to theft of public money and tax evasion after being charged in an Information in November 2015. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 10, 2016.
In 2002, Harris applied for Social Security Disability Insurance benefits. In his application, Harris stated that he stopped working in 2001 due to his disabilities; however, in reality, Harris was running a trucking brokerage firm called SilkRoad Logistics out of his home on Martha’s Vineyard when he applied for benefits. Harris wrote himself checks from the business’s account totaling as much as $60,000 to $70,000 in some years and concealed the business from the Social Security Administration (SSA). In a 2012 letter Harris sent to the SSA, he falsely affirmed that “my wife is and has been the sole income earner in our household since my disability in 2001.” Harris continued to collect disability benefits while running SilkRoad Logistics until 2015. In total, he illegally received $160,025 in benefits. Harris also falsified information pertaining to SilkRoad Logistics on his 2010 federal income tax return.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Manhattan U.S. Attorney and FBI Assistant Director Announce Charges Against Leaders of Bronx Heroin Organization in Connection with Overdose Death of Vermont Man and Attempted Murder of Rival Drug TraffickerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of an indictment charging RAMON CRUZ, a/k/a “Guille,” and FRANCHESCA MORALES, a/k/a “Checa,” with conspiring to distribute heroin from 2010 through 2015, including trafficking heroin from the Bronx to Rutland, Vermont, which caused the death of a Vermont man (the “Victim”). CRUZ, MORALES, and JONATHAN SANTIAGO have also been charged with possessing firearms in connection with their attempt to murder a rival drug dealer. SANTIAGO was also charged with participating in the heroin conspiracy, as was NAJON FLANDERS, a dealer for CRUZ and MORALES.
CRUZ and MORALES were previously arrested on December 2, 2015, on a complaint. They will be arraigned on December 29, 2015, in magistrate’s court. SANTIAGO and FLANDERS are in state custody on unrelated charges and will now be transported to federal custody to face the charges filed today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ramon Cruz and Franchesca Morales pumped massive quantities of heroin, not only to the streets of the Bronx, but to rural communities as far north as Rutland, Vermont. The defendants’ alleged heroin dealing led not only to the tragic overdose death of a Vermont man, but also a deadly gun battle with a rival drug dealer. Heroin is on the rise, both in our cities and in rural communities, but so is law enforcement’s effort to combat it. Today’s charges reflect the commitment of my office and our law enforcement partners to pursue and prosecute drug traffickers who are fueling the growing heroin epidemic.”
FBI Special Agent in Charge Diego Rodriguez said: “As alleged, the defendants used their name, ‘Flow Heroin Organization,’ not only in the marketing of their drug bags stamped with the word ‘Flow,’ but also as a business plan by trafficking heroin all the way from the Bronx to Vermont. In their wake they left gun violence to protect their territory and at least one known overdose victim. The FBI will continue to aggressively investigate and work with our law enforcement partners to disrupt and dismantle such violent criminal organizations that threaten the innocent members of our community.”
According to the allegations contained in the Indictment returned today in Manhattan federal court[1]:
Beginning in 2010 and up to December 2015, CRUZ, the leader of the Flow Heroin Organization (“Organization”), received kilogram-quantities of heroin from various suppliers. CRUZ and multiple workers broke down the heroin into smaller quantity “bundles,” containing individual baggies of heroin, which primarily bore the stamp “Flow.” SANTIAGO was, in 2010, a street deputy for CRUZ responsible for heroin sales. After SANTIAGO’s arrest in 2010, MORALES replaced him, although SANTIAGO continued to oversee MORALES from prison. From 2010 through 2015, CRUZ, MORALES, and SANTIAGO relied on street-level dealers, typically members of a gang (“Gang-1”), who sold the heroin to addicts in the Bronx. FLANDERS was one of the street level dealers.
In early 2012, the Organization began distributing Flow heroin in Rutland, Vermont. CRUZ and MORALES used various co-conspirators, including FLANDERS, to transport the heroin to Rutland and recruit street level heroin addicts to sell the heroin for them. On August 28, 2012, one of these co-conspirators provided Flow heroin to a local dealer, who in turn sold some of the Flow heroin to the Victim on the morning of August 29, 2012. The Victim then used the Flow heroin and later died of a heroin overdose. Even after the Victim died, and, indeed, despite knowing that their heroin had caused his death, CRUZ and MORALES continued to traffic large quantities of Flow heroin from the Bronx to Rutland.
The Organization also engaged in acts of violence to protect its territory and its members. In particular, in 2015, members of the Organization made efforts to shoot and kill a rival narcotics dealer (the “Rival”) who is a member of a gang (“Gang-2”) that is a rival to Gang-1. On October 31, 2015, the Rival fired shots at a group of individuals that included MORALES and another member of the Organization. CRUZ and SANTIAGO urged MORALES to kill the rival in retaliation, and CRUZ provided MORALES with a gun for this purpose. On November 1, 2015, MORALES, along with other members of the Organization, including a member of Gang-1 (“Victim-2”), fired shots at the Rival. Weeks later, on November 24, 2015, the Rival shot and killed Victim-2. Subsequent to this homicide, CRUZ and MORALES attempted to locate the Rival, who was in hiding, to murder him. On November 30, 2015, MORALES believed she had located the Rival; she and CRUZ armed themselves, met, and went to kill the Rival, but did not succeed.
CRUZ and MORALES were arrested the next day, December 1, 2015. Law enforcement seized a loaded gun from CRUZ’s apartment and a second loaded gun inside a hidden compartment in MORALES’s car. In connection with the arrest, law enforcement also seized hundreds of grams of heroin, the Flow heroin “stamp,” and tens of thousands of dollars.
CRUZ, 51, of the Bronx, New York, and MORALES, 27, of the Bronx, New York, are each charged with one count of conspiracy to distribute heroin that resulted in a death, which carries a maximum sentence of life in prison, and one count of possession of a firearm that was discharged during a drug trafficking crime, which carries a maximum sentence of life in prison.
SANTIAGO, 28, of the Bronx, New York, is charged with conspiracy to distribute heroin, which carries a maximum sentence of life in prison, and one count of possession of a firearm that was discharged during a drug trafficking crime, which carries a maximum sentence of life in prison.
FLANDERS, 25, of Orange County, New York, is charged with conspiracy to distribute heroin, which carries a maximum sentence of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
Mr. Bharara thanked the FBI’s New York Field Division, the New York City Police Department, the New England Division of the Drug Enforcement Administration, the Rutland, Vermont, Police Department, New York State Department of Correctional Services, and the U.S. Attorney’s Office for the District of Vermont for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Russell Capone, Robert Allen, and Shawn Crowley are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney and FBI Assistant Director Announce Arrest of Former Lawyer Stuart Schlesinger for Defrauding Clients of More Than $3 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of STUART SCHLESINGER for defrauding his clients by failing to pay them millions of dollars in personal injury settlements that SCHLESINGER had obtained on their behalf. SCHLESINGER was arrested today by the FBI in Westhampton, New York, and was presented in Manhattan federal court before Chief U.S. Magistrate Judge Frank Maas.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, Stuart Schlesinger violated the trust of his clients – and the oath he took as an attorney – by lying about the proceeds of his clients’ settlements and keeping the funds for himself. Schlesinger’s alleged actions and greed victimized those already in difficult situations. Thanks to the FBI’s diligent investigation, Schlesinger will now have to answer for his crimes in federal court.”
Assistant Director-in-Charge Diego Rodriguez stated: “As alleged, Schlesinger was supposed to provide legal services for personal injury cases - not take more than $3 million in settlements proceeds to pay his personal expenses. Today’s arrest is a step forward in restoring the public’s trust and a reminder that this type of dishonorable behavior will not go unpunished.”
According to the allegations in the criminal Complaint,[1] SCHLESINGER was a named partner at the law firm of Julien & Schlesinger, P.C., until his disbarment by the New York State Appellate Division, First Judicial Department, on or about September 15, 2015. From at least October 2008 to in or about December 2015, SCHLESINGER executed a scheme to defraud his clients by failing to pay them the proceeds from personal injury settlements that SCHLESINGER had obtained on their behalf. As part of the scheme, SCHLESINGER falsely represented to his clients, by means of telephone calls and e-mail communications, that he had not yet received settlement proceeds and that he was unable to distribute settlement proceeds because of ongoing litigation involving the clients’ cases. In reality, SCHLESINGER deposited settlement proceeds into his law firm’s bank account and then transferred those funds to an operating account to pay the law firm’s expenses and his own personal expenses.
The complaint alleges that SCHLESINGER defrauded at least eight victims of over $3 million in settlement proceeds.
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The Complaint charges SCHLESINGER, 75, of Westhampton, New York, with one count of wire fraud, in violation of Title 18, United States Code, Section 1343, which 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 a judge.
Mr. Bharara praised the FBI’s outstanding investigative efforts. Mr. Bharara also thanked the Departmental Disciplinary Committee of the New York Appellate Division, First Judicial Department, for its assistance in this investigation.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Laroche is in charge of the prosecution.
The charge in the Complaint constitutes merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Pleads Guilty to Penny Stock SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Jamie Boye, 33, of Portville, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to conspiracy to commit securities fraud. The charge carries a maximum sentence of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant participated in a scheme between October 22, 2008 and September 15, 2011 involving penny stocks. Boye and others utilized several websites registered through an internet domain registrar and web hosting company. One of the websites utilized by the defendant was www.trypennystocks.com. The website was used to tout approximately 29 penny stocks. During the course of the scheme, Boye and others were compensated by third-parties to tout certain penny stocks. In total, the defendant was compensated $498,714.25 during the scheme. The scheme involved at least 10 victims.
The plea is the culmination of an investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.
Sentencing is scheduled for April 15, 2016 at 12:30 p.m. before Judge Arcara.
Long-Time Wilmington Housing Authority Employee Sentenced for Half-Kilogram of Cocaine Found in His Work VanRead the Press Release
WILMINGTON, Del. – United States District Court Judge Richard G. Andrews sentenced Edwin Hernandez, 46, of Wilmington, Del. to 18 months in prison followed by 4 years of supervised release, and Hector Hernandez, 37, of New Castle, Del., to 60 months in prison followed by 4 years of supervised release. Both men pled guilty yesterday to charges relating to the attempted distribution of a half-kilogram of cocaine in Wilmington, Del.
The sentences were announced by United States Attorney for the District of Delaware Charles M. Oberly, III and Gary Tuggle, Special Agent in Charge of the Philadelphia Field Division of the Drug Enforcement Administration (DEA).
According to statements made at the sentencing hearings and documents filed in court, Edwin and Hector Hernandez, who are brothers, conspired to distribute a significant amount of cocaine. Edwin Hernandez was arrested on February 5, 2015, in the CVS Pharmacy parking lot at 1005 Delaware Avenue in Wilmington, Delaware. At the time of his arrest, while on duty as Maintenance Superintendent for the Wilmington Housing Authority, Edwin Hernandez was in possession of more than 500 grams of cocaine, which is valued at over $50,000. The cocaine was found in a Wilmington Housing Authority van. Hector Hernandez was arrested at the same time, nearby in his own vehicle, while in possession of a loaded handgun. Hector Hernandez later admitted to supplying his brother with the cocaine earlier that day.
Edwin Hernandez worked at the Wilmington Housing Authority for 24 years. His employment was terminated after his arrest in this case.
The case is the product of an investigation conducted by the Drug Enforcement Administration (“DEA”) Drug Trafficking Task Force, which is part of the New Castle County HIDTA, a collaborative effort among federal, state, and local law enforcement agencies. The DEA Drug Trafficking Task Force includes members from the following agencies: DEA, Delaware State Police, New Castle County Police Department, Newark Police Department, Department of Homeland Security – Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Delaware Attorney General’s Office. Assistant United States Attorney Elizabeth L. Van Pelt prosecuted the case on behalf of the United States.
Justice Department Announces Three Banks Reach Resolutions Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Bordier & Cie Switzerland (Bordier), PBZ Verwaltungs AG (PBZ) and PostFinance AG reached resolutions under the department’s Swiss Bank Program. These banks collectively will pay penalties of more than $15 million.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Bordier was founded in 1844 in Geneva, Switzerland, where it maintains its headquarters. Five generations of the Bordier family have run the bank over the subsequent 170 years. Bordier has three additional Swiss offices in Zurich, Bern and Nyon, and outside of Switzerland, Bordier has two asset management companies – one in London and one in Paris. Additionally, Bordier is affiliated with two independent entities with local banking licenses: Bordier Bank (TCI) Ltd., established in 1986 under the laws of the Turks and Caicos, and Bordier & Cie (Singapore) Ltd., established in 2011 under the laws of Singapore. Structurally, Bordier is led by its “Comité de Direction,” which is composed of the partners, the chief financial/administrative officer, the General Counsel, the communications director and two senior wealth managers.
Bordier was aware that some of its U.S. clients were using their accounts at Bordier to evade U.S. taxes and reporting requirements. In certain account files, Bordier had notes stating, “Declared: No.” In other instances, the U.S. taxpayer-client informed Bordier that he or she did not plan to declare his or her account in the United States. For one account, a U.S. taxpayer-client refused to provide a copy of his passport, despite repeated requests from Bordier, and in 1998, this client signed bank forms with a fake signature to avoid potential recognition. This accountholder eventually told Bordier that he did not want to declare the account in the United States because he was a lawyer and would be disbarred. In 2000, one U.S. taxpayer-client informed Bordier, “I am glad to know that there are no U.S. securities subject to U.S. withholding tax. I do not intend to declare this account to the U.S. authorities.” For one account where the ultimate beneficial owner was a U.S. person, Bordier noted in the files, “Client will introduce a South African friend domiciled in Monaco who will invest in USA and transfer funds to the client.”
In a limited number of instances, Bordier actively facilitated the evasion of U.S. taxes and reporting requirements for some of its U.S. accountholders. For example, Bordier made repeated transfers of undeclared assets under $10,000 to the Montreal bank account of a U.S. taxpayer-client in Canada in order to help the client avoid U.S. tax and reporting obligations and keep the undeclared assets hidden. For one such transfer, the U.S. taxpayer-client requested his “usual order of chocolate” from Bordier in order to institute these transfers. Bordier was aware that the U.S. taxpayer-client withdrew the amounts in cash: “Telephone [call from U.S. taxpayer-client]. Please transfer US$8,000 to Montreal as usual. He will pick up the cash. . . .” In 2002, according to file notes made by the former relationship manager, Bordier transmitted undeclared assets to a U.S. taxpayer-client in a hidden manner (“sous forme cache” in French). Bordier’s conduct allowed the bank to increase the undeclared U.S. taxpayer assets that it managed, thereby increasing the fees it generated.
Another U.S. taxpayer-client refused to sign Bordier’s Declaration of Non-U.S. Status form, which would have indicated that she was a U.S. person, despite it being required as part of Bordier’s account opening procedures. When the U.S. taxpayer-client asked Bordier about the impact of the UBS investigation, Bordier told the U.S. taxpayer-client that she “cannot call, that her capital is protected and that she multiplies her risks by calling the bank often. She should only call once a year when she is in Europe.”
From 2008 to the present, Bordier maintained approximately 292 U.S.-related accounts with a total of $440.8 million in assets under management. Bordier will pay a penalty of $7.827 million.
PBZ was a private bank operating in Zurich. From 2001 to November 2013, PBZ Verwaltungs AG operated as AKB Privatbank Zürich AG and was a subsidiary of Aargauische Kantonalbank. Prior to 2001, PBZ operated as BFZ Bankfinanz AG, a bank founded in 1988 and headquartered in Zurich. In November 2013, Aargauische Kantonalbank sold AKB Privatbank to Privatbank IHAG Zürich AG, and since July 2014 it has operated as PBZ Verwaltungs AG. PBZ Verwaltungs AG has ceased its banking activities and had its banking license revoked by Aug. 29, 2014.
As early as 2008, PBZ knew that some U.S.-related accounts held untaxed funds, which were described within PBZ in one instance as “Schwarzgeld” or “black money.” PBZ knew that U.S. persons had a duty under U.S. law to report their income to the Internal Revenue Service (IRS) and to pay taxes on that income, including all income earned in accounts maintained by PBZ in Switzerland. Despite this knowledge, PBZ opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared to the IRS or the U.S. Department of the Treasury, as U.S. law required. As of Feb. 19, 2010, PBZ formally renounced its previous practice of accepting “manifestly untaxed assets from foreign clients.”
In 2001, PBZ entered into a Qualified Intermediary (QI) agreement with the IRS. As a QI, PBZ agreed to supply the IRS with information and to withhold tax in connection with trades in U.S. securities. The agreement’s purpose was to ensure that, with respect to U.S. securities held in an account at PBZ, non-U.S. accountholders would be subject to the proper U.S. tax rates on withholding and that U.S. accountholders would properly pay U.S. taxes. As a practical matter, PBZ reported income pursuant to the QI agreement on only one of its U.S.-related accounts. For each U.S. client who did not provide a W-9, PBZ blocked any trading in U.S. securities, which, in PBZ’s view, obviated any payment or reporting obligation under the QI agreement.
PBZ opened accounts for foundations and other entities set up in Panama, Liechtenstein and any of several island countries – the Bahamas, the British Virgin Islands, the Cayman Islands, the Marshall Islands, St. Kitts and Nevis and the Turks and Caicos Islands – that PBZ knew were beneficially owned by U.S. persons. For instance, accounts were opened for three British Virgin Islands corporations that really belonged to a single U.S. person as the beneficial owner. In another instance, a U.S. resident beneficial owner of a Marshall Islands corporation gave instructions on an account nominally held by a domiciliary entity that resulted in the transfer of the account to the beneficial owner’s brother, who lived abroad.
PBZ also offered a variety of traditional Swiss banking services – including hold mail and numbered accounts – that it knew could assist, and did assist, U.S. taxpayers in concealing their identity from the IRS by minimizing the paper trail associated with their undeclared assets and income. From time to time, PBZ assisted its U.S. clients in sending money to themselves, relatives, business partners or other businesses in the United States by issuing checks drawn on PBZ’s own bank account. Issuing such checks is a service routinely provided by banks to clients and is similar to cashier’s checks in the United States. But under the circumstances present with respect to the U.S. clients, because these checks listed only PBZ as the accountholder, they did not reveal that the funds were ultimately paid out of the U.S. clients’ Swiss bank account. One such check issued was in the amount of $301,000. U.S. clients were thus able to utilize this technique to conceal their ownership of a Swiss bank account.
From at least 2008 through 2014, PBZ maintained and serviced 171 U.S.-related accounts having a maximum aggregate value of more than $101 million. PBZ will pay a penalty of $5.57 million.
PostFinance, headquartered in Bern, is a wholly-owned subsidiary of Swiss Post, the Swiss state-owned enterprise responsible for Swiss postal and other essential public infrastructure services. The Swiss parliament established PostFinance’s predecessor in 1906 to provide payment services to retail customers. PostFinance operated as a division of Swiss Post until June 26, 2013, when it became a bank under Swiss law.
For decades, PostFinance has provided the predominant means of payment in Switzerland. Customers pay bills and receive payments, electronically or in person, at post offices in Switzerland through PostFinance accounts. PostFinance has 45 branch offices, all in Switzerland, and roughly 40 percent of Swiss residents have an account with PostFinance. Until 2008, the names of PostFinance’s customers were publicly available. PostFinance was not subject to Swiss bank secrecy laws until June 26, 2013, when it received its license to operate as a bank under Swiss law.
Before and since Aug. 1, 2008, PostFinance was required by Swiss law and government mandate to provide accounts to persons living in Switzerland, regardless of nationality, and to Swiss nationals living outside of Switzerland. Consequently, PostFinance provided accounts to U.S. taxpayers living in Switzerland, as well as to Swiss nationals living in the United States, including U.S.-related accountholders who transferred assets to PostFinance from UBS or other banks under investigation by the department.
PostFinance has never offered private banking or wealth management services to any of its customers. Instead, PostFinance engaged in basic consumer retail banking and payment services. U.S. taxpayers resident in Switzerland, as well as U.S.-Swiss dual nationals, may obtain “current” accounts, which are comparable to checking accounts in the United States. Savings accounts, fixed income retirement accounts and credit cards may be obtained only by Swiss residents.
PostFinance was aware that citizens and resident aliens of the United States had a legal duty to report their assets and income to the IRS and to pay taxes on the basis of all their income, including income earned from accounts that PostFinance maintained on their behalf. Largely due to its obligations under Swiss law, however, PostFinance nevertheless opened and maintained undeclared accounts belonging to customers who were subject to U.S. tax and were not complying with their U.S. tax obligations.
Since Aug. 1, 2008, PostFinance maintained a total of 2,731 U.S.-related accounts having a maximum aggregate value of approximately $290 million. PostFinance will pay a penalty of $2 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Kaycee M. Sullivan, Brian D. Bailey and Paul G. Galindo, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Indictment: Kansas-based Scam Cost Turkish Investor MillionsRead the Press Release
KANSAS CITY, KAN. - An Olathe man was indicted Thursday on federal charges of devising a fraud scheme that cost a Turkish investor millions of dollars, U.S. Attorney Barry Grissom said.
Nagy Shehata, 55, Olathe, Kan., and Laura Lee Sorsby, 62, Texarkana, Texas, are charged in a superseding indictment with one count of conspiracy to commit wire fraud and four counts of wire fraud. In addition, Shehata is charged with two counts of money laundering.
The indictment alleges the crimes occurred while Shehata was the president and registered agent for Premier Investment Group, Inc., and Sorsby was president of Can Am International, LLC, headquartered in Dallas. They offered an investor in Turkey investments in building a shopping mall in Turkey and a hospital in Syria. The investor transferred 6 million Euros (more than $8 million) for the hospital project. The defendants diverted the money to their own use. Shehata bought an $855,000 house and an $111,000 auto. Sorsby bought a $77,000 car and a $163,000 house. They promised the investor to return his money but they never gave the money back.
If convicted, they face a maximum penalty of 20 years and a fine up to $250,000 on the conspiracy count and each of the wire fraud counts, and a maximum penalty of 10 years and a fine up to $250,000 on each of the money laundering counts. The FBI investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER GRAND JURY INDICTMENTS
Samantha C. Elmer, 33, Lawrence, Kan., is charged with one count of international parental kidnapping, one count of making a false statement on a passport, and one count of aggravated identity theft.
Elmer initially was charged in a criminal complaint unsealed Dec. 9 that alleged she took her two daughters to Europe to prevent her former husband from lawfully taking custody of the children.
If convicted, she faces a maximum penalty of three years in federal prison and a fine up to $250,000 on the parental kidnapping charge, a maximum penalty of 10 years and a fine up to $250,000 on the charge of making a false statement on a passport, and a mandatory two years (consecutive to other counts) on the identity theft charge. The following agencies worked on the investigation: the Lawrence Police Department, the FBI, Homeland Security Investigations, the Douglas County District Attorney’s Office, the Eudora Police Department, the Overland Park Police Department and the Johnson County District Attorney’s Office. Assistant U.S. Attorney Chris Oakley is prosecuting.
Omar Martinez, 31, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 8, 2015, in Ford County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Alleged Post Office RobberRead the Press Release
PHILADELPHIA - Antwoine Tomlin, 32, of Philadelphia, was charged today by indictment with committing an armed robbery, on November 19, 2015, at the United States Post Office, located at 6382 Castor Ave, Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger. Tomlin was also charged with use of a firearm in connection with that robbery.
If convicted Tomlin mandatory minimum term of 25 years in prison with a maximum possible sentence of life, supervised release, a possible fine and a $100 special assessment.
The case was investigated by the United States Postal Inspection Service and Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hugo Man Sentenced to 63 Months for Possession of ExplosiveRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNETH JAMES HEBERT, a/k/a Keno, age 51, of Hugo, Oklahoma was sentenced to 63 months imprisonment and 3 years Supervised Release for being a FELON IN POSSESSION OF EXPLOSIVE, in violation of Title 18, United States Code, Sections 842(i)(1), 844(a)(1) and 2. The jury trial began on Monday, September 21, 2015 and concluded on September 22, 2015 with the guilty verdict.
The defendant was convicted in September, 2015 by a federal jury. The evidence at trial proved that in or about January 2014, the exact date being unknown to the Grand Jury, within the Eastern District of Oklahoma, the defendant, having been convicted in the District Court of Choctaw County, Oklahoma, for a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, an explosive, to-wit: ATLAS SF Electric Blasting Caps, which had been shipped and transported in interstate commerce.
The verdict obtained was the result of an investigation by the Hugo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending transportation to the federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorneys Chris Wilson represented the United States.
Howells and Vaisey Sentenced for Child ExploitationRead the Press Release
SYRACUSE, NEW YORK – Stephen M. Howells, II, 40 of Hermon, New York, was sentenced today to serve 580 years in prison in connection with his sexual exploitation of six children, including two St. Lawrence County girls he abducted with his girlfriend, Nicole F. Vaisey, 26, also of Hermon, from a roadside vegetable stand on August 13, 2014, announced United States Attorney Richard S. Hartunian, Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division, and St. Lawrence County Sheriff Kevin Wells. Vaisey was also sentenced today to serve 300 years in prison for her role in the offenses, including her participation in the sexual exploitation of four of the children. The Court also ordered the forfeiture of property used by the defendants in the commission of these crimes, consisting of two cars, a computer and five hard drives, a camera, and two iPhones.
On May 8th, Howells pled guilty to all twenty-one federal charges: conspiracy to sexually exploit minors, fifteen counts of sexual exploitation of children, involving six victims, and five counts of possession of child pornography. On May 14th, Vaisey also pled guilty to conspiracy to sexually exploit minors, as well as nine counts of sexual exploitation of children, involving four victims.
From September of 2013 through August 15, 2014, Howells and Vaisey conspired to sexually exploit children for the purpose of producing videos and pictures of such conduct. Howells used his position as a registered nurse to obtain drugs to administer to the six children to sedate them. On at least sixteen dates specified in the indictment, Howells sexually abused six young girls, ages 5 – 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey made arrangements with close friends and family to spend time with four of the children, and then betrayed their trust. Howells and Vaisey also developed, planned, and carried out a scheme to abduct children to sexually abuse them. On August 13, 2014, they kidnapped two Amish children from their family’s roadside farm stand by pretending to be customers. Howells forced the children into the car and Vaisey drove off. The two children were restrained as captives in Howells’ and Vaisey’s home until they were released in a remote location the next night. An ongoing manhunt and investigation resulted in the arrests of Howells and Vaisey and searches that helped uncover the other child sexual abuse by them.
United States Attorney Richard S. Hartunian said: "The sentences imposed today are a reflection of the monstrous crimes committed by Stephen M. Howells, II and Nicole F. Vaisey against the most vulnerable among us – our children. Howells and Vaisey will never be able to abduct, drug, and sexually abuse children again. Our hearts go out to the six children victimized by
Howells and Vaisey, and to all children who are subject to sexual exploitation. It is our hope that these severe sentences will deter others from engaging in such depraved conduct. Our commitment to promoting prevention, protecting children, and combatting child sexual abuse is complete and unwavering."
"Today’s sentencing is a culmination of an investigation into the unspeakable crimes committed against innocent victims within St. Lawrence County. The St. Lawrence County Sheriff’s Office has worked towards this conclusion in a cooperative investigative effort with our Federal, State and Local partners. This collaborative effort to bring these two to justice and stand responsible for their actions shows how well law enforcement can work together for the victims and citizens that we serve. The Sheriff’s Office appreciates the public support that has been demonstrated for the victims and the law enforcement agencies that were involved," said St. Lawrence County Sheriff Kevin Wells.
"The unspeakable acts against innocent children committed by Stephen Howells and Nicole Vaisey represent some of the most heinous and evil crimes ever committed in Troop B. It was through the collective efforts of all law enforcement agencies working tirelessly that these two depraved individuals will be brought to justice and will never pose a threat to our children and our communities again," said New York State Police Major Charles Guess, Troop B Commander.
"Stephen Howells and Nicole Vaisey represent the horrifying reality of the danger our families and children face; they are predators that plotted and schemed to harm those that are most precious to us," said Special Agent in Charge Andrew W. Vale. "It is our sworn duty to protect our community’s children, and the unfathomable suffering of Howells and Vaisey’s victims and their family is our daily reminder of that duty. Today’s sentencings are the culmination of tremendous efforts made by the FBI, the United States Attorney’s Office, the St. Lawrence County Sheriff’s Office, and the New York State Police."
This case was investigated by FBI, the St. Lawrence County Sheriff’s Office and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher, Tamara Thomson, and Steven D. Clymer.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN LOPEZ-PINEDA, age 29, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to court records, on or about September 24, 2015, LOPEZ-PINEDA was found in the United States after having been officially deported and removed on or about May 30, 2014.
LOPEZ-PINEDA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for February 4, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harwich Man Indicted on Firearms and Drug ChargesRead the Press Release
BOSTON – Timothy Fletcher, 33, of Harwich, Mass., was indicted today on being a felon in possession of firearms and ammunition, possession of cocaine base with intent to distribute and possession of cocaine with intent to distribute.
On April 3, 2015, Fletcher possessed a Taurus, .380 caliber pistol, a Tisas, .45 caliber pistol, six rounds of .380 caliber ammunition, 58 rounds of .45 caliber ammunition and 60 rounds of 9mm ammunition.
In this matter, the government alleges that the defendant was an armed career criminal. The charge of being a felon in possession provides for a mandatory minimum sentence of 15 years and no greater than a lifetime in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Each of the narcotics charges provides for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $2 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Barnstable Police Chief Paul MacDonald; and Yarmouth Police Chief Frank Frederickson, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Harrisburg Man Charged with Possession of A Weapon in Furtherance of Heroin TraffickingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal Grand Jury in Harrisburg returned an indictment yesterday charging Jamar McMillan, age 31, with possession with the intent to distribute heroin and possession of a weapon in furtherance of a drug trafficking crime.
According to United States Attorney Peter Smith, McMillan, a resident of Dauphin County is also charged with possessing a firearm after having been previously convicted of a felony offense.
This case arose as a result of an arrest of McMillan in August 2015, and an investigation by the Harrisburg Police Department Vice Unit and the Federal Bureau of Investigation. Prosecution has been assigned to Assistant U.S. Attorney Chelsea Schinnour.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hardy County, WV man sentenced for role in manufacturing methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Johnny Biggs, 36, of Moorefield, West Virginia, was sentenced in federal court for his role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Biggs was discovered in May 2015 in Hardy County, West Virginia in possession of materials commonly used to manufacture methamphetamine. Those materials included a bottle, coffee filters, drain cleaner, batteries, cold medicine, and fuel. Biggs pled guilty in October 2015 to one count of “Possession of Material used in the Manufacture of Methamphetamine.”
Biggs was sentenced to 21 months in prison for the possession charge. He was also sentenced to an additional 15 months in prison for violating the terms and conditions of a previously imposed period of supervised release. The sentences will be served consecutively for a total of 36 months in prison. Further, Biggs was ordered to pay restitution in the amount of $13,937.46.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Fremont Man Indicted for Attempting to Travel to Join Terrorist GroupRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco returned an indictment that was unsealed today, charging Adam Shafi with one count of attempting to provide material support or resources to a designated foreign terrorist organization, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment, Shafi, 22, of Fremont, Calif., is alleged to have attempted to provide personnel to al-Nusrah Front (ANF), an organization designated by the Department of State as a Foreign Terrorist Organization and as a Specially Designated Global Terrorist entity. The indictment alleges that at the time Shafi provided the support, he knew ANF was a designated foreign terrorist organization and that the organization had engaged and was engaging in terrorist activity and terrorism in violation of Title 18, United States Code, Section 2339B.
An affidavit filed by an agent of the Federal Bureau of Investigation in connection with a criminal complaint filed in the same matter also alleges that Shafi was stopped at San Francisco International Airport on June 30, 2015, as he was about to board a non-stop flight to Istanbul, Turkey. As explained in the affidavit, Turkey is a common point of entry into Syria for foreign fighters hoping to join terrorist organizations such as ANF and Islamic State of Iraq and the Levant (ISIL). The affidavit details a number of telephone conversations Shafi had with his friends in the days and weeks leading up to his trip during which he expressed his love of “Jaulani,” the amir of ANF, his willingness to “die with them,” his hope that “Allah doesn’t take [his] soul until [he has] at least, like, a couple gallons of blood that [he’s] spilled for him,” his fear of meeting Allah “when [his] face has no scars on it,” and his progress in saving enough money for his trip.
Shafi was arrested on July 3, 2015, based on the complaint filed in this matter. Both the complaint and indictment were unsealed late this morning in open court when Shafi appeared before the Honorable Sallie Kim, United States Magistrate Judge, for his arraignment. Shafi is currently in custody, but has moved for bail. A bail hearing is scheduled for December 22, 2015 at 1:30 p.m. before the Honorable Magistrate Judge Kim.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted for a violation of 18 U.S.C. § 2339B, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions and National Security Unit at the United States Attorney’s Office, the Federal Bureau of Investigation, and members of the Joint Terrorism Task Force.
Four-time Convicted Drug Dealer Caught by Feds Bribing Gun Case WitnessRead the Press Release
PITTSBURGH - A former Pittsburgh resident pleaded guilty in federal court to charges involving bribery and illegal firearm possession, United States Attorney David J. Hickton announced today.
Monroe Blanks, III, 29, currently incarcerated on a parole violation, pleaded guilty before United States District Judge Donetta W. Ambrose to all of the charges he faced at two different cases.
In connection with the guilty plea, the court was advised that Blanks had previous convictions that include three felony drug trafficking convictions in 2006 and another in 2012. On March 3, 2015, Pittsburgh Police stopped Blanks’ vehicle and found that he possessed a loaded 9mm caliber Glock handgun. Federal law prohibits individuals with any previous conviction for a crime punishable by more than one year in prison from possessing a firearm or ammunition. Over the next four months, Blanks contacted numerous persons in an effort to bribe witnesses. Federal investigators learned of the bribery scheme and arrested Blanks after determining that he had paid an individual thousands of dollars to come to Court and lie.
By signing a written plea agreement and pleading guilty to all of his crimes, Blanks has agreed to serve 188 months (over 15 ½ years) in federal prison and he will be supervised by the United States Probation Office for another five years following his release from prison. Judge Ambrose scheduled the formal imposition of sentence for April 6, 2016 at 10 a.m.
Blanks’ co-defendants have each been charged and are currently awaiting their February 29, 2016 trial date before Allegheny County Court of Common Pleas Judge Anthony Mariani.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pittsburgh Bureau of Police for conducting the investigation that led to the prosecution of Monroe Blanks, III.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime Section of the Office of the United States Attorney, represented the federal government.
Four Romanian Nationals Charged in Bribery SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Dumitru Martin, 55, a Romanian citizen residing in Long Island, New York, and Anamaria Cruceru, 48; Constantin Schiller, 62; and Marcelle Banaga, 40, all of whom reside in Romania, charging them with conspiracy to commit bribery and with bribery of a public official, United States Attorney Benjamin B. Wagner announced.
According to court documents, Martin owns and operates a Romanian company called Polaris M. Holdings (Polaris), and Cruceru, Schiller, and Banaga are employees. From October 2014 through December 2015, Martin, Cruceru, Schiller, and Banaga conspired with each other to bribe a United States Air Force (USAF) contracting officer in connection with the awarding of multimillion dollar contracts to Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of the contract. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.
In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Koglaniceanu Air Base in Romania. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal the bribe payment. Thereafter, as part of the conspiracy, the defendants caused a $100,000 wire transfer from Romania to a bank account in the United States as payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement and there was no contract to be awarded to Polaris.
“Attacking corruption and collusion in federal contracting is important both to ensure the integrity of federal programs and to protect taxpayer dollars,” U.S. Attorney Wagner said. “Working with the FBI and our other law enforcement partners, we will continue to root out and prosecute those who attempt to corruptly influence federal contracting officials.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.
Martin was arrested and is currently in custody in Sacramento. The remaining defendants reside in Romania, and the U.S. Department of Justice will initiate requests for their extradition.
If convicted, the defendants each face a maximum statutory penalty of five years in prison on the conspiracy charges and 15 years in prison for the bribery count, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Defendants Sentenced to Prison for Paying and Accepting Bribes and GratuitiesRead the Press Release
Four defendants have been sentenced to prison terms, by U.S. District Judge Daniel T.K. Hurley in West Palm Beach, for paying and accepting bribes and gratuities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Pamela Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, United States Social Security Administration, Office of Inspector General (SSA-OIG), Shimon R. Richmond, Special Agent in Charge, Miami Region, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Irma Davidian, 52, of Boca Raton, was sentenced to 10 years in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution. Davidian previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.
Gladys Roman, 47, of Pompano Beach, was sentenced to 40 months in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution. George Lopez, 35, of Pompano Beach, was sentenced to 54 months in prison, followed by three years of supervised release and was ordered to pay $300,673.42 in restitution. Both defendants previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.
Maria Sanchez, 50, of Pembroke Pines, was sentenced to four months in prison and four months of house arrest, to be followed by three years of supervised release. The defendant previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
Co-defendant Alejandro Lomoso, 56, of Southwest Ranches, previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371 and is scheduled to be sentenced on January 6, 2016.
According to court records, Davidian was in the business of representing persons who sought to obtain government benefits, including Social Security, Medicaid and Food Stamp benefits. Davidian would claim that, for a payment ranging from $2,000-$5,000, she could obtain those benefits for individuals regardless of their personal circumstances. Roman was employed by the Florida Department of Child and Family Services (DCF) as an interview clerk and inputted information from those persons applying for Medicaid and Food Stamps benefits into a DCF computer. The Medicaid applications would then be assigned to a DCF case worker whose job title was an Economic Self-Sufficiency Specialist (ESS).
In or about April 2009, Roman submitted applications to DCF on behalf of Davidian’s clients and did so from her home or a public library and would add or change information to enhance the application. Davidian repeatedly asked Roman if there was an ESS worker at DCF who Davidian could pay to approve DCF applications. Lopez was an ESS for DCF. His duties included approving or denying requests for Medicaid and Food Stamp benefits. In or about 2012, Lopez agreed that, in exchange for money, he would approve applications submitted by Davidian on behalf of her clients.
Davidian submitted applications on behalf of her clients to Roman so that they could be forwarded to DCF. Davidian submitted fraudulent documents with some of the applications in order to make it appear that her clients met the benefit requirements. Davidian instructed Roman to assign Lopez as the ESS worker in order to ensure that some of the fraudulent applications would be approved.
Roman would then fraudulently approve benefits for applicants who were not otherwise qualified. If benefits for Medicaid or Food Stamps were properly denied by another DCF employee, Lopez logged into the DCF computer system and overrode the denial and approved the benefits. Beginning in or about 2012 through in or about January 2014, every other week, Davidian paid Roman and Lopez each $500. As a result of the scheme, Roman and Lopez assisted Davidian to seek more than $5,000,000 in fraudulent benefits.
Court records further indicate that Sanchez and Lomoso worked as claims representatives for the SSA. From in or about 2008 through in or about early 2011, Sanchez and Lomoso would periodically receive applications from Davidian on behalf of persons seeking SSA benefits. In exchange for payment, Sanchez and Lomoso would expedite and/or modify the application process. Davidian gave, offered, and promised approximately $9,500 in U.S. currency to Lomoso and approximately $13,000-$15,000 to Sanchez in exchange for performing their official acts.
Mr. Ferrer commended the investigative efforts of the FBI, Florida Attorney General’s Office, SSA-OIG, HHS-OIG, MFCU and the Florida Department of Children and Families OIG. Attorney General Pam Bondi’s Office of Statewide Prosecution will handle the state law violations. The federal matters are being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Cape Cod Residents Charged in Drug and Money Laundering RingRead the Press Release
BOSTON – Four Cape Cod residents were charged in an indictment unseal today in U.S. District Court in Boston in connection with drug and money laundering offenses.
David Landry, 27; his mother, Diane Johnson, 50, both of Mashpee; Justin Groom, 26, of Hyannis; and Evan Lopes, 27, of East Wareham, were named in an indictment charging possession with intent to distribute marijuana, conspiracy to manufacture marijuana, money laundering, possession with intent to distribute methylone (also known as “molly”), being a felon in possession of a firearm and money laundering conspiracy.
The indictment alleges that from May 2014 to January 2015, Landry and Groom conspired to manufacture and distribute marijuana, and possessed marijuana with the intent to distribute it. Landry, who was arrested and has been in custody since Sept. 12, 2014, is alleged to have continued participating in the criminal offense while in jail on state charges. Groom is also charged with eight counts of money laundering in connection with using the proceeds of the illegal activities to pay the rent of the Cheryl Lane house. It is also alleged that Lopes, aided by Landry, possessed with intent to distribute methylone on Jan. 15, 2015. The indictment further alleges that Landry, a convicted felon, constructively possessed a CZ model CZ100, .40 caliber semi-automatic pistol on Jan. 21, 2015.
Finally, the indictment alleges that from 2010 to 2015 Landry and his mother, Diane Johnson, conspired to launder drug proceeds in order to disguise the nature of the funds and continue the drug trafficking activity.
The charges of conspiracy to distribute marijuana and possession of marijuana and methylone with intent to distribute provide for a sentence of no greater than 20 years in prison, a mandatory minimum of three years of supervised release and up to a lifetime, and a fine of $1 million. The charges of money laundering and money laundering conspiracy provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Barnstable Police Chief Paul MacDonald; Barnstable County Sheriff James M. Cummings; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Cape & Islands District Attorney Michael O'Keefe, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Ted Heinrich of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former post office employee convicted of embezzling fundsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ceressa B. Patterson, 29, of Fairview, West Virginia, was convicted of stealing funds from the United States Postal Service today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Patterson, formerly employed at the Pentress, West Virginia Post Office, embezzled nearly $2,000 from the post office by taking proceeds from the sale of money orders and stamps for her own personal use.
Patterson pled guilty today to one count of “Misappropriation of Postal Funds.” She faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The United States Postal Service Office of Inspector General investigated.
United States Magistrate Judge Michael John Aloi presided.
Former Union President Charged with Embezzling Union FundsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was charged with embezzling and misusing funds belonging to Alaska Railroad Workers Union Local 183. Jeffrey Davies was the President of the Union between 2011 and 2014. The federal indictment alleges that Davies stole more than $100,000 in union funds in the form of cash withdrawals, checks and by paying for personal expenses with a union debit card.
Davies, 41, was indicted by a federal grand jury of one count of embezzling labor union assets. The case will be set for arraignment in federal court in the coming weeks. According to First Assistant U.S. Attorney, Kevin R. Feldis, the maximum penalties for this offense include up to five years in prison and a $250,000 fine.
Mr. Feldis noted that “the charges in this case are a good reminder to all organizations that they should have processes in place to safeguard against potential theft and misuse of funds, including performing regular internal audits and requiring multiple officials to be involved in financial oversight. I commend the FBI and the U.S. Department of Labor for their investigation of this case.”
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Tax Return Preparer Pleads Guilty to Theft of Public Money and Aggravated Identity TheftRead the Press Release
A former tax return preparer and resident of New Orleans, Louisiana, pleaded guilty today to one count of theft of public funds and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U. S. Attorney Kenneth A. Polite, Jr. for the Eastern District of Louisiana.
Donald Stewart, 59, prepared tax returns under the business names Stewart’s Tax Service and Stewart LTD from approximately 2001 through 2008, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number, according to court documents. Stewart admitted that he used the means of identification of individuals, including their names and social security numbers, without lawful authority, to electronically file false federal income tax returns with the IRS that claimed income refunds. From January 2011 through February 2012, Stewart caused approximately $37,809 in federal and state tax refunds in the names of others to be electronically deposited into bank accounts under his control. Stewart also admitted to cashing or depositing U.S. Treasury checks totaling approximately $539,393 and payable to other individuals at a bank in the New Orleans area.
U.S. District Judge Eldon E. Fallon set sentencing for March 17, 2006. Stewart faces a statutory maximum sentence of 10 years in prison for the theft of public money charge and a mandatory term of two years in prison for the aggravated identity theft charge, which must run consecutive to any other prison term he receives. As to each count, Stewart also faces a fine of $250,000, or twice the gross gain or loss caused by the offense and terms of supervised release.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren M. Castaldi of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Tax Return Preparer Pleads Guilty to Theft of Public Money and Aggravated Identity TheftRead the Press Release
WASHINGTON -- A former tax return preparer and resident of New Orleans, Louisiana, pleaded guilty today to one count of theft of public funds and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U. S. Attorney Kenneth A. Polite, Jr. for the Eastern District of Louisiana.
Donald Stewart, 59, prepared tax returns under the business names Stewart’s Tax Service and Stewart LTD from approximately 2001 through 2008, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number, according to court documents. Stewart admitted that he used the means of identification of individuals, including their names and social security numbers, without lawful authority, to electronically file false federal income tax returns with the IRS that claimed income refunds. From January 2011 through February 2012, Stewart caused approximately $37,809 in federal and state tax refunds in the names of others to be electronically deposited into bank accounts under his control. Stewart also admitted to cashing or depositing U.S. Treasury checks totaling approximately $539,393 and payable to other individuals at a bank in the New Orleans area.
U.S. District Judge Eldon E. Fallon set sentencing for March 17, 2006. Stewart faces a statutory maximum sentence of 10 years in prison for the theft of public money charge and a mandatory term of two years in prison for the aggravated identity theft charge, which must run consecutive to any other prison term he receives. As to each count, Stewart also faces a fine of $250,000, or twice the gross gain or loss caused by the offense and terms of supervised release.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren M. Castaldi of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Resident of Dracut, Massachusetts Sentenced to 27 Months in Prison for Fraud OffensesRead the Press Release
CONCORD, N.H. – Kurt Sanborn, a 48-year-old former resident of Dracut, Massachusetts, has been sentenced to 27 months in prison, announced Acting United States Attorney Donald Feith.
In May 2003, Sanborn used a private $500,000 loan to buy a home in Manchester, New Hampshire. In exchange, the private lenders received a first mortgage on the Manchester property which was recorded at the Hillsborough County Registry of Deeds.
In October 2003, Sanborn asked a mortgage company for a $685,000 loan to buy a second home in Gilford, New Hampshire. The mortgage company agreed to finance the transaction if it received first mortgages on the Manchester and Gilford properties. To deceive the mortgage company, Sanborn caused a mortgage discharge that contained the private lenders’ forged signatures to be filed with the Hillsborough County Registry of Deeds. Sanborn’s conduct involving interstate wire communication and documents that were delivered by the U.S. Postal Service as part of the fraud served as the basis for wire and mail fraud charges.
Sanborn was also charged with bank fraud based on his conduct in February 2004 in acquiring a $150,000 loan from a federally insured bank in exchange for a second mortgage on the Manchester property. Sanborn concealed from the bank the private lenders’ mortgage on the Manchester property.
In October 2004, Sanborn sold the Manchester property without disclosing the private lenders’ mortgage on the property to the new owners. He then used the proceeds of the sale to make a $185,000 payment to the mortgage company and to fully repay the $150,000 loan from the federally insured bank.
Sanborn pleaded guilty to the charges in May 2014.
The case was investigated by the United States Postal Inspection Service. It was prosecuted by AUSA Robert Kinsella.
Former Postal Employee Sentenced to Prison in Mail Theft ConspiracyRead the Press Release
PROVIDENCE, R.I. – Erick Vera-Garzon, 36, of Providence, was sentenced today to 36 months in federal prison for his role in a conspiracy to steal U.S. Treasury checks from the mail and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The bank funds were then withdrawn or used to make retail purchases with the use of debit cards.
An investigation by the Providence Police Department Intelligence and Organized Crime Unit and the United States Postal Service (USPS) Office of Inspector General (OIG) resulted in the seizure of approximately $1.6 million dollars worth of stolen U.S. Treasury checks, dozens of stolen gift cards, and more than $165,000 in proceeds gained as a result of the sale of stolen checks and gift cards.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Vera-Garzon to serve two years supervised release upon completion of his prison term. Vera-Garzon pleaded guilty on September 23, 2015, to conspiracy, theft of mail and theft of public money or property.
Vera-Garzon’s sentence is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Eileen Neff, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office.
Joan Manuel Mustafa, 28, of Providence, a former co-worker of Vera-Garzon, pleaded guilty on October 21, 2015, to conspiracy, theft of mail and theft of public money or property. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 8, 2016.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the disappearance of U.S. Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The missing checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center. At the same time, independent of the USPS-OIG investigation, a Providence Police Department detective developed information that Vera-Garzon was selling stolen U.S. Treasury checks at 20% of face value to buyers on the streets of Rhode Island and New York. The investigation determined that many of the stolen checks were deposited in bank accounts that had been opened in Rhode Island, Massachusetts and New York in the names of some of the individuals whose checks had gone missing. The funds were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, and the purchase of money orders.
Based on the information developed by the Providence Police Department Intelligence and Organized Crime Unit, court authorized search warrants were obtained and executed at Mustafa and Vera-Garzon’s residences on April 16, 2015. Law enforcement seized more than 900 stolen U.S. Treasury checks valued at approximately $1.6 million dollars, several dozen gift cards and more than $53,000 in cash. Vera-Garzon and Mustafa were arrested on April 16, 2015.
The cases are being prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Richard W. Rose.
Agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
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