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17 December 2015
Former Ochsner Clinic Credit Union Manager Charged with Stealing over $1MRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACQUELINE RAY, age 60, of Biloxi, Mississippi, was charged yesterday in a Bill of Information one count of stealing over $1 Million from Ochsner Clinic Federal Credit Union in connection with bank larceny during her employment there.
According to the Bill of Information, RAY was employed by Ochsner Clinic Federal Credit Union (OCFCU), as a credit union manager and had been employed at OCFCU for nearly thirty years. From around 2007 to 2013, RAY stole at least $1 Million Dollars by creating numerous fictitious loans on the books of OCFCU. RAY created approximately 149 fictitious loans.
No loan documentation existed on any of the fictitious loans. RAY controlled the day-to-day operation of OCFCU. These fictitious accounts were all coded in the OCFCU data processing system so that no statement of account would be generated, thus hiding RAY’S fraudulent scheme.
The proceeds from the fictitious loan would be in the form of a check drawn on the OCFCU and deposited in accounts controlled by RAY, or converted to cash.
RAY also made false deposits into a local bank to make it appear that she had money in accounts she controlled, when she really did not. RAY would steal cash from these falsely inflated accounts.
If convicted, RAY faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release, as well as restitution for the money taken.
The U.S. Attorney’s Office reiterated that a Bill of Information 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 Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Former Hedge Fund Manager and New York Attorney Indicted in Multimillion Dollar Fraud SchemeRead the Press Release
BROOKLYN, N.Y. – A seven-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging Martin Shkreli, the founder and managing member of hedge funds MSMB Capital Management LP (MSMB Capital) and MSMB Healthcare Management LP (MSMB Healthcare) and former Chief Executive Officer of Retrophin Inc. (Retrophin), a biopharmaceutical company that trades under the ticker symbol RTRX; and Evan Greebel, a former partner at the New York office of Katten Muchin Rosenman LLP who served as outside counsel to Retrophin.[1] Shkreli is charged with securities fraud, securities fraud conspiracy, and wire fraud conspiracy for orchestrating three interrelated schemes: schemes to defraud investors in MSMB Capital and MSMB Healthcare and a scheme to misappropriate Retrophin’s assets. Greebel is charged with wire fraud conspiracy for his role in the Retrophin scheme. Shkreli and Greebel will be arraigned later today before United States Magistrate Judge Robert M. Levy, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, Martin Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit. His plots were matched only by efforts to conceal the fraud, which led him to operate his companies, including a publicly traded company, as a Ponzi scheme, where he used the assets of the new entity to pay off debts from the old entity. When regulators and auditors questioned Shkreli’s decisions, he joined forces with Evan Greebel, who used his law license and training to conceal and further the scheme,” stated United States Attorney Capers. “The charges and arrests announced today reflect our commitment to hold accountable corporate executives and licensed professionals who betray their positions of trust in order to fraudulently enrich themselves.” Mr. Capers thanked the Securities and Exchange Commission, New York Regional Office (SEC), and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their significant cooperation and assistance during the investigation.
“The charges announced today describe a securities fraud trifecta of lies, deceit, and greed. As charged, Martin Shkreli targeted investors and retained their business by making several misrepresentations and omissions about key facts of the funds he managed. He continued to lie about the success of the investments and used assets from Retrophin to payoff MSMB investors. In the end, Shkreli and Greebel used a series of settlement and sham consulting agreements that resulted in Retrophin and its investors suffering a loss in excess of $11 million. While the charges announced today are significant, they are but one example of what’s left to come as the FBI continues this investigation,” stated FBI Assistant Director-in-Charge Rodriguez.
As detailed in the indictment and below, between September 2009 and September 2014, Shkreli, together with others, orchestrated three interrelated fraudulent schemes: (i) a scheme to defraud investors and potential investors in MSMB Capital, (ii) a scheme to defraud investors and potential investors in MSMB Healthcare, and (iii) a scheme to defraud Retrophin.
The MSMB Capital Hedge Fund Scheme
Between September 2009 and January 2011, Shkreli and his co-conspirators falsely represented to potential investors, among other things, that: (i) MSMB Capital was a transparent investment vehicle for sophisticated investors with monthly liquidity; (ii) Shkreli would only receive a one percent management fee per year based on net assets of the partnership; (iii) Shkreli was entitled to receive twenty percent of the limited partners’ net profits for the year; and (iv) MSMB Capital had retained independent certified public accountants as auditors who would issue an audit report on the annual financial statements. Shkreli also failed to disclose to investors that he had lost all the money he managed in Elea Capital, his prior hedge fund, and that Lehman Brothers had a $2.3 million default judgment against him. Finally, Shkreli lied to his biggest investor telling him that MSMB Capital had $35 million in assets under management, when in fact MSMB Capital had less than $700 in its bank and brokerage accounts. Based on these and other false representations, Shkreli and his co-conspirators induced approximately $3 million in investments from eight investors.
In February 2011, MSMB Capital failed to settle a short position of more than 11 million shares of Orexigen Therapeutics, Inc. (OREX) that Merrill Lynch ultimately closed at a loss of over $7 million. At this time, MSMB Capital also suffered more than $1 million in other trading losses. Based on these trading losses, the value of assets in MSMB Capital’s bank and brokerage accounts, not including the OREX losses at Merrill Lynch, declined from more than $1.12 million on January 31, 2011 to $58,500 at the end of February 2011. MSMB Capital did not engage in any trading after February 2011.
For months following the complete loss of the investments in MSMB Capital and the end of trading activity, Shkreli continued to send fabricated performance updates to investors that touted profits of as high as forty percent since inception. In September 2012, more than eighteen months after MSMB Capital had lost all its assets, Shkreli sent an email to MSMB Capital investors informing them that he was winding down the fund and that “original MSMB investors (2009) have just about doubled their money net of fees.” Shkreli also misappropriated funds from MSMB Capital by withdrawing more than $200,000 from MSMB Capital, which was far in excess of the one percent management fee and the twenty percent net profit incentive allocation permitted by the partnership agreement.
The MSMB Healthcare Hedge Fund Scheme
Following the collapse of MSMB Capital after the failed OREX trades, from approximately February 2011 to November 2012, Shkreli solicited investments in MSMB Healthcare from potential investors while concealing from them his disastrous past performance as a portfolio manager for MSMB Capital and Elea Capital and the $7 million liability that Shkreli owed Merrill Lynch for the February 2011 OREX trades. Shkreli also falsely represented that MSMB Healthcare had $55 million in assets under management. Based on these and other false representations, Shkreli and his co-conspirators induced approximately $5 million in investments from thirteen investors.
As with MSMB Capital, Shkreli provided MSMB Healthcare investors with performance updates that were based, in large part, on an internal inflated valuation of Retrophin, his private biopharmaceutical company that had received investments from MSMB Healthcare. Here again, Shkreli misappropriated funds by withdrawing money from MSMB Healthcare that was far in excess of the one percent management fee and the twenty percent net profit incentive allocation permitted by the partnership agreement. Additionally, without the investors’ knowledge or consent, Shkreli improperly used MSMB Healthcare assets to pay for obligations that were not the responsibility of MSMB Healthcare, including using at least $900,000 to settle claims brought by Merrill Lynch in connection with the failed OREX trades.
The Retrophin Misappropriation Scheme
Between March 2011 and September 2014, Shkreli and Greebel, together with others, engaged in a scheme to defraud Retrophin by misappropriating Retrophin’s assets in an effort to pay off Shkreli’s personal and unrelated professional debts and obligations. Specifically, Shkreli and Greebel defrauded Retrophin by causing it to: (i) transfer Retrophin shares to MSMB Capital even though MSMB Capital never invested in Retrophin; (ii) enter into settlement agreements with defrauded MSMB Capital and MSMB Healthcare investors to settle liabilities owed by Shkreli and the funds; and (iii) enter into sham consulting agreements with other defrauded MSMB Capital, MSMB Healthcare, and Elea Capital investors as an alternative means to settle liabilities owed by Shkreli and his hedge funds.
In December 2012, despite the fact that Retrophin’s books and records did not reflect any investments by MSMB Capital, Shkreli and Greebel engaged in a series of fraudulent and backdated transactions to create the appearance of an investment by MSMB Capital in Retrophin. They orchestrated these transactions, in part, to support Shkreli’s false representations to the U.S. Securities and Exchange Commission in November 2012 that MSMB Capital was still in operation and had $2.6 million in assets under management.
Between February 2013 and August 2013, Shkreli and Greebel, together with others, caused Retrophin to enter into settlement agreements with MSMB Capital and MSMB Healthcare investors to resolve their claims and threats of claims which were based on Shkreli’s false representations about the exceptional performance of the funds. Notably, Shkreli and Greebel did not seek authorization from the Board prior to entering into these fraudulent settlements. Shkreli and Greebel caused Retrophin to pay more than $3.4 million in cash and RTRX stock to settle claims with seven MSMB Capital and MSMB Healthcare investors.
In August 2013, when Retrophin’s external auditor questioned the settlement agreements and determined that Retrophin was not responsible for the claims resolved in the settlement agreements, Shkreli and Greebel caused MSMB Capital and MSMB Healthcare to execute indemnification agreements and promissory notes for the benefit of Retrophin even though they knew that the funds had no assets. Shkreli and Greebel, together with others, then devised an alternative approach to settle with the remaining defrauded hedge fund investors, namely, settlement agreements under the guise of consulting agreements. On October 16, 2013, when Shkreli initially questioned this new approach, Greebel explained, “We can call it a settlement agreement, but given [the auditor’s] recent behavior they may require it to be disclosed in the financials. I was trying to prevent that issue.” Between September 2013 and March 2014, Shkreli and Greebel caused Retrophin to enter into four sham consulting agreements with defrauded investors from the funds. Retrophin did not receive any legitimate consulting services based on these sham agreements, but paid more than $7.6 million in cash and RTRX stock to settle claims that the auditors had previously determined were not the responsibility of Retrophin.
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The criminal case has been assigned to United States District Judge Kiyo A. Matsumoto. If convicted, Shkreli and Greebel each face a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Winston Paes, Alixandra Smith, and David Kessler are in charge of the prosecution.
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The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendants:
MARTIN SHKRELI
Age: 32
Residence: New York, New YorkEVAN GREEBEL
Age: 42
Residence: Scarsdale, New YorkE.D.N.Y. Docket No. 15-CR-637 (KAM)
[1] The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Former East Bay Mortgage Brokerage Owner Sentenced to PrisonRead the Press Release
SAN FRANCISCO – Gabriela Tigges was sentenced today to 12 months and one day in prison, and ordered to pay a $20,000 fine and $208,186.78 in restitution, for her involvement in a bank fraud scheme related to a fraudulent mortgage loan application and a fraudulent mortgage loan modification application, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Tigges, 60, of Martinez, Calif., pleaded guilty on October 1, 2015, to two counts of bank fraud. According to the plea agreement, Tigges admitted she caused a client to submit a fraudulent mortgage loan application to World Savings Bank in approximately October 2005. She also admitted submitting a fraudulent mortgage loan modification. Tigges’ conduct eventually cost the bank $208,186.78
The loan at issue was for the purchase of Tigges’s own home by a client of her mortgage brokerage located in the East Bay, Pan American Funding Group. That mortgage loan application contained numerous misrepresentations regarding the transaction and Tigges’s client. For example, the loan application inflated Tigges’s client’s income and misrepresented the source of that individual’s down payment, which had been provided by Tigges. The application also failed to disclose that Tigges and her client had agreed on a much higher purchase price than that disclosed to the lender and that Tigges would be placing her own $275,000 lien on the property after World Savings funded the loan. Ultimately, Tigges’ client was unable to make the mortgage payments and, in early 2008, deeded the property back to Tigges.
Tigges then posed as her client to negotiate a modification of the loan with the mortgage holder, Wachovia Mortgage (which, by then, had purchased World Savings before being purchased by Wells Fargo Bank). Tigges later stopped making payments on the loan (which was still held in Tigges’ client’s name), prompting Wells Fargo to foreclose on the property in September 2010. Wells Fargo sold the property in 2011, and calculated its losses on the loan to be $208,186.78.
Tigges, was indicted by a federal grand jury on August 9, 2012. She was charged with two counts of bank fraud and one count of aggravated identity theft.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following a guilty plea on two counts in violation of 18 U.S.C. § 1344. The government agreed to move for dismissal of the aggravated identity theft charge as part of the plea agreement. Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release, imposed a $20,000 fine, and ordered the defendant to pay restitution to Wells Fargo in the amount of $208,186.78. The defendant has been in custody since April 2015, when she returned to the United States from Brazil after a five-year absence from this country.
Assistant U.S. Attorney Kyle F. Waldinger is prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Bank Manager at Fulton Bank in Lancaster Charged with FraudRead the Press Release
PHILADELPHIA – Fernando Sanchez, 42, of Lancaster, Pennsylvania, was charged yesterday by Information with three counts of wire fraud, announced United States Attorney Zane David Memeger. While employed as a bank manager at Fulton Bank in Lancaster, Sanchez fraudulently took approximately $99,105.09 from the bank account of the Manor Shopping Center Merchants Association.
According to the information, from about May 2010 until about July 2014, Sanchez took money from the Merchants Association bank account to pay his own personal expenses. He removed money from the account using dozens of cashier’s checks which he deposited in his own account in another bank, and also by making online electronic transfers of funds to pay his personal expenses.
If convicted, the defendant faces a maximum possible sentence of 60 years in prison, three years of supervised release, restitution, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fifth Conspirator Admits to the Robbery of an Owings Mills Jewelry Store Including Kidnapping and Brandishing a GunRead the Press Release
Baltimore, Maryland – Aleksey Sosonko, age 35, of Owings Mills, Maryland, pleaded guilty today to conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Sosonko was part of a conspiracy to rob an Owings Mills, Maryland, jewelry store. In the course of the conspiracy, Sosonko participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.
Specifically, on July 22, 2012, Sosonko, MaratYelizarov, Grigory Zilberman and another conspirator robbed a home in Reisterstown, Maryland. Zilberman was familiar with the layout of the home, having been there as a guest on a number of occasions. Zilberman knew that the residents of the home owned firearms and he had handled and fired some of the weapons. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, Sosonko, Yelizarov, Zilberman and the co-conspirator traveled to the home in Reisterstown. Dressed all in black and wearing ski masks and latex gloves, the co-conspirators entered the home through the unlocked garage door. The co-conspirator was armed with a handgun when they entered the residence. Sosonko, Yelizarov, and Zilberman grabbed long guns and carried them throughout the home. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. One of the co-conspirators beat the resident when he tried to resist while another conspirator tied up the resident with a belt and a cord. For approximately one hour the robbers ransacked the home looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
A co-conspirator devised a plan to commit an armed robbery of a jewelry store, and recruited Sosonko, Yelizarov, Zilberman, Igor Yasinov, Peter Magnis and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to Sosonko’s plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, Sosonko, Yelizarov, Yasinov, Magnis and another conspirator met at the residence of a sixth conspirator to prepare for the kidnapping and robbery, including handling the firearms and donning masks and gloves. Yelizarov and one of the conspirators then drove to Zilberman’s home in order to alert the others of the employee’s departure. Early in the morning on January 16, 2013, Yelizarov and the other conspirator followed the employee from Zilberman’s home for a while, and then stopped. Meanwhile, Sosonko,Yasinov, Magnis and another co-conspirator, driving in a rental car obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, Sosonko, Yasinov, Magnis and the other co-conspirator removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Sosonko,Yasinov, Magnis, and the co-conspirator continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and a co-conspirator drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. Yelizarov and another co-conspirator were stationed near the jewelry store to act as “look-outs.” Sosonko and a co-conspirator entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car. Throughout the kidnapping and robbery, Sosonko and the other conspirators used their cell phones to communicate with each other.
On January 18, 2013, one of the conspirators sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, the conspirator traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, the conspirator returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. Sosonko received at least $60,000 for his role in the crimes.
Sosonko faces a maximum sentence of 20 years in prison for the robbery conspiracy; a maximum of life in prison for kidnapping; and a minimum mandatory sentence of seven years, and a maximum of life in prison for brandishing a firearm in relation to a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 2, 2016.
Grigoriy (Greg) Zilberman, age 24, of Owings Mills, Maryland, and Peter Aleksandrov Magnis, age 27, of Hydes, Maryland, Igor Yasinov, age 26, of Baltimore, and Marat Yelizarov, age 28, of Pikesville, previously pleaded guilty to their roles in the robbery conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Federal Jury Finds Pojoaque Pueblo Man Guilty on Assault and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Santa Fe, N.M., returned a verdict last night finding Gerald James Viarrial guilty on assault and firearms charges after a three-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge William McClure of District IV of the BIA’s Office of Justice Services.
Viarrial, 53, a member of Pojoaque Pueblo who resides in Santa Fe, N.M., was charged with assault, firearms and child abuse offenses in a seven-count indictment filed on Jan. 21, 2015. The indictment charged Viarrial with assaulting a female and two minors with a firearm; assaulting one of the minors by strangulation, causing him to suffer serious bodily injury; committing child abuse; and brandishing a firearm during a crime of violence. The indictment alleged that Viarrial committed six of the seven crimes in Indian Country in Santa Fe County on a date between July 15, 2010 and Aug. 15, 2010, and that the assault resulting in serious bodily injury occurred on March 24, 2014. The female victim is Viarrial’s former intimate partner and the mother of his children (mother).
Law enforcement authorities first learned about Viarrial’s criminal conduct on March 24, 2014, when they received a verbal report of child abuse from a social service provider. The report indicated that a teenager, one of the minor male victims, had requested help to keep his mother, his siblings and himself safe from abuse from Viarrial. Upon receipt of that report, the BIA and Pojoaque Pueblo Tribal Police Department initiated an investigation which resulted in the filing of tribal charges against Viarrial on March 31, 2014, and subsequently, the filing of federal charges against Viarrial. The related tribal court charges against Viarrial were dismissed in favor of federal prosecution.
Trial of the case began on Dec. 14, 2015, and concluded last night around 9:00 p.m., when the jury returned a verdict finding Viarrial guilty on all four assault charges and the firearms charge. The United States dismissed one of the child abuse charges before the case was submitted to the jury, and the jury acquitted Viarrial on the second child abuse charge.
During the trial, the mother testified that in Aug. 2010, Viarrial forced her and her seven children to accompany him to a shooting range located in Pojoaque Pueblo. Upon their return to their home, Viarrial became enraged when he could not locate keys for one of his vehicles. He angrily blamed the children for losing the keys, and forced the mother and the children back to the shooting range to search for the keys. When they were unable to find the keys, Viarrial ordered the mother and children to line up and paced in front of them, firearm in hand, as he yelled at them. The mother testified that Viarrial raised the handgun and pointed it at the two oldest children, who were then 11 and 13 years old, and threatened to kill them for being “worthless.” The mother observed this while holding her six-month old infant and thinking that Viarrial was going to kill all of them. At that point, Viarrial became distracted by a telephone call and eventually permitted the mother and children to return home.
The mother and two minor male victims, who also testified about the Aug. 2010 ordeal, testified that they were too scared of Viarrial to report the assault. The eldest of the two minor male victims testified that on March 23, 2014, he reported Viarrial’s continuing abusive behavior to the director of the Pojoaque Pueblo Social Services. The teenager told the director that he was worried about what Viarrial might do if he contacted law enforcement authorities. The day after the teenager reported Viarrial’s abusive behavior, Viarrial assaulted him by strangling him. Several witnesses witnessed the assault during which Viarrial told the teenager, “if you ever tell the police what I do, I will kill you.”
Viarrial testified in his own defense, and denied assaulting the mother and children in Aug. 2010. He also denied assaulting the teenager in March 2014.
“The Justice Department has made the safety of Native American women a top priority because violence against them and their children has a devastating impact throughout tribal communities,” said U.S. Attorney Damon P. Martinez. “We are committed to working with tribal communities to decrease the number of Native American women who fall victim to violence; to strengthen the capacity of tribal governments to respond to violent crimes; and to ensure that abusers are held accountable.”
“BIA’s Office of Justice Services is committed to providing the necessary resources to enhance the federal response to addressing violence against Native women and to assist tribes in their efforts to ensure safety for Native women and their children,” said BIA Special Agent in Charge William McClure. “I commend the BIA agents and the officers of the Pojoaque Pueblo Tribal Police Department for the exemplary way in which they responded to the report of abuse that ultimately led to last night’s guilty verdict against Viarrial.”
At sentencing, Viarrial faces a statutory maximum penalty of ten years in prison on each of the four assault charges, and a mandatory minimum penalty of seven years on the firearms charge. The sentence imposed on the firearms charge must be served consecutive to any sentence imposed on the assault charges. Viarrial remains in federal custody pending sentencing which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Pojoaque Pueblo Tribal Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Kyle T. Nayback and Novaline D. Wilson pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Federal Jury Finds Cruise Ship Employee Guilty of Smuggling Cocaine into the United StatesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Desrick Gordon (23, St. Vincent and the Grenadines) guilty of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and possession with the intent to distribute 5 kilograms or more of cocaine. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for March 11, 2016. Gordon was indicted on August 21, 2015.
According to evidence presented at trial, Gordon was part of a drug distribution ring that imported cocaine into the United States from Roatan, Honduras using cruise ship employees at several ports in the United States. Gordon, along with five other crewmen from Norwegian Cruise Line, received packages of cocaine from a source of supply in Honduras while the cruise ship was docked there. The packages ranged from 750 grams to a full kilogram of cocaine.
Once the ship had docked in Tampa, the crewmen gathered at a restaurant near the port to remove their secreted cocaine packages. They then met with two local drug traffickers, who had ties to the Honduran source of supply, to provide them with the packages of cocaine. The two local traffickers were stopped by law enforcement after leaving the Channelside District. Agents seized 10 packages of cocaine with a total weight of more than 7.5 kilograms. In addition, agents also seized more than $50,000 from the crewmen.
The five other cruise ship employees, Jason Carmichael, Teffan Delice, Johnson Cherubin, Alfred Ince, and Arkine John, previously pleaded guilty for their roles in this case. They will be sentenced in January 2016.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Gregory Nolan.
Federal Jury Convicts Pittsburgh Man on Drug ChargeRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury of nine women and three men found Rodney Howard guilty of one count of Possession with Intent to Distribute 100 Grams or More of Heroin, United States Attorney David J. Hickton announced today.
Rodney Howard, 31, was tried before United States District Judge Mark R. Hornak in Pittsburgh, Pennsylvania..
According to Assistant United States Attorneys Cindy K. Chung and Stephen Gilson, the evidence presented at trial established that on or about Sept. 18, 2014, Howard possessed with the intent to distribute 100 grams or more of a mixture and substance which contained heroin, a Schedule I controlled substance.
Judge Hornak scheduled sentencing for April 18, 2016 at 2 p.m. The law provides for a maximum total sentence of not less than five years and up to forty years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Allegheny County Sheriff’s Office conducted the investigation that led to the prosecution of Howard.
Federal Jury Convicts North Carolina Couple of FraudRead the Press Release
GREENEVILLE, Tenn. - Following a 13-day trial in U.S. District Court, a jury convicted Ricky Anthony Lanier, 48, and his wife Katrina Reshina Lanier, 43, both of LaGrange, N.C., of conspiracy to commit wire fraud, wire fraud, and major fraud against the United States.
Sentencing is set for 9:00 a.m., on June 20, 2016, in U.S. District Court in Greeneville. Ricky Lanier faces a possible sentence of up to 60 years in prison and $1 million in fines; Katrina Lanier faces a possible sentence of up to 50 years in prison and $750,000 in fines. The Laniers agreed to forfeit their interests in approximately $170,000 in funds seized from bank accounts as well as five houses in Kinston, N.C., purchased with proceeds of the fraud.
According to the evidence presented at trial, the Laniers conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Department of Veterans Affairs’ (VA) Service-Disabled Veteran-Owned Small Business (SDVOSB) program and the Small Business Administration’s (SBA) 8(a) Business Development program. The scheme involved false representations that JMR Investments was eligible as an 8(a) business and that Kylee Construction was eligible as an SDVOSB and an 8(a) business. Ricky Lanier, who had previously owned and operated an 8(a) business receiving government contracts, became ineligible to participate in the 8(a) program after that business graduated from the 8(a) program in 2008. Lanier used a friend and service-disabled veteran as the purported owner of Kylee Construction, representing that the friend was involved in the daily management of the business, even while the friend was working for a government contractor in Afghanistan. The Laniers used a business owned by Ricky Lanier’s college roommate, JMR Investments, as a front to obtain construction contracts from the National Park Service and other federal agencies under the 8(a) program, misrepresenting the friend’s involvement in the management and operation of the business. The scheme also involved sub-contracting out all or almost all of the work on the contracts in violation of program requirements. Among other contracts, Ricky Lanier defrauded the National Park Service in connection with a contract to replace a wastewater treatment facility at the Tremont Institute in the Great Smoky Mountains National Park, falsely representing that subcontractor costs were over $400,000 more than they actually were, resulting in the award of a contract for $1.1 million when all work on the project was performed by a Kodak contractor for $550,000. Lanier also fraudulently obtained a $1.3 million construction contract at the James H. Quillen VA Medical Center which had been set aside for SDVOSBs.
As a result of the false representations, Kylee Construction was awarded over $5 million in government contracts and JMR Investments was awarded over $9 million in government contracts, to include contracts for construction at the VA Medical Center at Mountain Home, Tenn., and in the Great Smoky Mountains National Park. The Laniers received almost $2 million in financial benefit from the scheme, using accounts of the shell companies for payment of personal expenses.
Nancy Harr, Acting U.S. Attorney for the Eastern District of Tennessee said, “The integrity of the Service-Disabled Veteran-Owned Small Business program is vital to its continued success. The U.S. Attorney’s Office will aggressively pursue and prosecute those who attempt to defraud that federal program and therefore the United States.”
“Consistent with Public Law 109-461, awarding contracts to Service-Disabled Veteran-Owned Small Business (SDVOSB) firms is the highest priority within the Small Business programs for VA. Today’s guilty verdict is indicative of the hard work and successful relationships between VA OIG, DOJ, and our law enforcement partners to protect the integrity of the SDVOSB program, and deter those who attempt to defraud our government,” said Special Agent in Charge Monty Stokes, VA, Office of Inspector General, Southeast Field Office.
Kevin Kupperbusch, Special Agent in Charge, SBA, Office of Inspector General (OIG), stated, “Effective partnerships among several law enforcement agencies as well as aggressive investigative efforts were key in bringing these defendants to justice. These convictions should serve as a deterrent to others who intend to take advantage of disabled military veterans and defraud the Federal Government through its various contracting programs.”
Special Agent in Charge Bill Gulsby, Department of Interior, OIG, joined in recognizing the efforts of the investigative team in protecting these important programs.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the VA, OIG; SBA, OIG; with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Neil Smith and David Gunn represented the United States at trial.
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Ellwood City Man Charged with Possessing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A Beaver County resident was indicted on Dec. 16, 2015, by a federal grand jury in Pittsburgh, Pennsylvania, on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment named Lucas Avery Klobetanz, 39, formerly of Ellwood City, Pa., as the sole defendant.
According to the indictment, on or about Oct. 8, 2015, Klobetanz distributed videos and images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about Dec. 4, 2015, Klobetanz knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 60 years in prison, a fine of $500.000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
El Salvadoran National Pleads Guilty to False Claim to U.S. CitizenshipRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIGUEL MENDEZ-GUSMAN, age 36, a citizen of El Salvador, pled guilty today to a one-count Indictment for false claim to United States citizenship.
According to the Indictment, MENDEZ-GUSMAN falsely and willfully represented himself to be a citizen of the United States on or about July 28, 2015.
MENDEZ-GUSMAN 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 March 17, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
El Paso Businesswoman Sentenced in False Tax Return CaseRead the Press Release
In El Paso today, 44 year-old Blanca Arcelia Ramos Estrada, owner of Blanca and Sons Tax Service in El Paso, appeared before United States District Judge Kathleen Cardone and was sentenced to one year and a day in federal prison followed by 1 year of supervised release, ordered to pay $140,000 in restitution and ordered to perform 100 hours of unpaid community service for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
On June 22, 2015, Estrada pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. By pleading guilty, Ramos admitted she fraudulently inflated income amounts for her clients in order to maximize their refunds under the Earned Income (EIC) Provisions of the tax code. The IRS investigation determined that Ramos aided and assisted in the preparation and filing of a number of similar false tax returns with combined losses of approximately $140,000.
IRS Criminal Investigation Special Agent in Charge William Cotter said, “Taxpayers should choose carefully when hiring a tax preparer to avoid unscrupulous preparers, such as Ms. Ramos, who file false and fraudulent returns to defraud the government and their own clients. Our Special Agents use their investigative and financial expertise to detect and hold accountable abusive preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive. Taxpayers should always insist on reviewing their return before signing it, and question any items they do not fully understand. Today’s sentence is a firm reminder that all tax professionals have to respect the law and protect the interests of their clients and the taxpaying public.”
This case was investigated by the IRS-CI. Assistant United States Attorneys Steven R. Spitzer and William R. Harris prosecuted this case on behalf of the Government.
East St. Louis Woman Pleads Guilty to Firearm ChargesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Delenthegia "Del" Beard-Hawkins, 54, of East St. Louis, Illinois, pleaded guilty today to a Superseding Indictment which charges her and David L. Bradford in Count 3 with Transfer of a Firearm to a Previously Convicted Felon, and which charges her, alone, in Count 4 with Unlawful User in Possession of a Firearm. The remaining charges name David L. Bradford alone. Bradford is also of East St. Louis and formerly of Madison, Illinois.
As to Bradford, Please Note - An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty of all charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The maximum penalty for each of Counts 3 and 4 is up to 10 years in federal, a $250,000 fine, 3 years’ supervised release and a $100 special assessment.
According to court documents, with respect to Count 3, on February 22, 2014, Beard-Hawkins purchased a Romarm Cugir Draco, 7.62 x 39 mm caliber semiautomatic pistol in Missouri and traveled with it to East St. Louis, Illinois, where she left it with Bradford knowing or having reasonable cause to believe that Bradford was a convicted felon. With respect to Count 4, on March 4, 2014, Beard-Hawkins was arrested in possession of a Magnum Research Desert Eagle, .50 caliber semiautomatic pistol and an amount of marihuana. Beard-Hawkins is an illegal user of marihuana and had been illegally using marihuana on a regular basis for several months prior to her arrest on March 4, 2014.
Bradford’s trial on the Superseding Indictment is scheduled for April 2016.
Information leading to the charges against Beard-Hawkins and Bradford was obtained in an investigation conducted by the Bureau of Alcohol, Tobacco Firearms and Explosives. The case is being handled by Assistant United States Attorney Kit Morrissey.
District Man Pleads Guilty to Second-Degree Murder While Armed in Shooting of Cousin in Northeast WashingtonRead the Press Release
WASHINGTON – Roosevelt Robinson, 67, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed stemming from the shooting death last summer of his cousin, U.S. Attorney Channing D. Phillips announced.
Robinson pled guilty in the Superior Court of the District of Columbia. He is to be sentenced on Feb. 26, 2016, by the Honorable Michael Ryan.
According to the government’s evidence, on Friday, Aug. 21, 2015, at approximately 10:35 a.m., Robinson rode his bicycle to the house of his cousin, Loretta Carswell, 63, in the 3700 block of 18th Street NE. He confronted Ms. Carswell outside, accusing her of stealing a ring from him that he intended to give to his daughter. This was an ongoing accusation based on a time when Ms. Carswell safeguarded some of Robinson’s valuables. Every time this issue had been raised, Ms. Carswell denied knowing what Robinson was talking about.
When Robinson confronted Ms. Carswell on Aug. 21, 2015 and asked her about the ring, Ms. Carswell said she did not have it and gave Robinson a look that he interpreted as dismissive. Robinson told her: “Girl, you know I should kill you for doing what you did.” Ms. Carswell responded by saying, “You can go ahead and kill me if you want to, I done told you I don’t have your ring.” At that point, Robinson pulled out a Ruger .357-caliber Magnum revolver and shot Ms. Carswell one time in the head in front of her home. The bullet entered her forehead.
Immediately after the shooting, Robinson rode his bicycle down the street to his home in the 3600 block of 18th Street NE. Robinson barricaded himself inside until the Metropolitan Police Department (MPD) was able to arrest him approximately 30 hours later. In an interview with the police, Robinson confessed to shooting his cousin in the head.
In announcing the guilty plea, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker of the Victim/Witness Assistance Unit and Paralegal Specialist Vanessa Trent-Valentine. He also praised the efforts of Assistant U.S. Attorney Christine Macey, who investigated and prosecuted the case.
Des Allemands Man Pleads Guilty to Mail Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK JOSEPH DURAN, age 29, of Des Allemands, pled guilty today to a three-count Indictment charging him with mail fraud.
According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. On August 25, 2010, DURAN submitted a fraudulent application to the GCCF claiming that he worked as a deckhand on a fishing vessel during the year 2010, before the oil spill. Documentation in support of DURAN’s claim included a falsified letter from a commercial fisherman indicating that DURAN had worked as a deckhand on his fishing vessel for a twelve month period before the spill, when in fact he had not. Based on DURAN’s fraudulent application, the GCCF mailed checks totaling $28,000 to DURAN to which he was not entitled.
DURAN faces a maximum prison term of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for March 17, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Departments of Justice, Homeland Security and Labor Announce Selection of Phase II Anti-Trafficking Coordination TeamsRead the Press Release
The U.S. Departments of Justice, Homeland Security and Labor announced today the selection of six new Anti-Trafficking Coordination Teams. These teams will lead Phase II of the ACTeam Initiative, an interagency effort to streamline federal criminal investigations and prosecutions of human trafficking offenses.
The six new ACTeams will be based in Cleveland; Minneapolis; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Each team will serve under the leadership of the local U.S. Attorney and the highest-ranking federal investigative agents in the regional field offices of the FBI, U.S. Immigration and Customs Enforcement (ICE) and Department of Labor.
“Human trafficking robs victims of their liberty, exploits them for labor and for sex, and infringes not only on their rights, but on their essential humanity,” said Attorney General Loretta E. Lynch. “Through the ACTeam Initiative, we are harnessing resources across the federal government to ensure that our multi-agency fight against human trafficking is as comprehensive and effective as possible. In the days and months ahead, the Department of Justice will continue to work alongside our federal partners to prosecute wrongdoing, support survivors, and bring this devastating crime to an end.”
“The Anti-Trafficking Coordination Team (ACTeam) Initiative is an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh C. Johnson of Homeland Security. “It highlights our commitment to increase capacity to rescue victims and bring perpetrators of these terrible crimes to justice. Our collective efforts are amplified when we work together in furtherance of shared missions like this. And, through DHS’s Blue Campaign, we will remain focused on ending human trafficking in the United States.”
“A trafficking victim shouldn’t have to spend time trying to determine whether they have a Department of Labor issue or a Department of Justice issue,” said Secretary Thomas Perez of the Department of Labor. “Their basic rights are being violated, and we can accomplish so much more to redress those crimes when we work together. The Anti-Trafficking Coordination Team Initiative, by bringing our respective departments’ collective resources and expertise to bear, is helping us build a whole even greater than the sum of our individual parts.”
“Human trafficking is a modern day form of slavery that destroys lives and exploits the most vulnerable in our society,” said Director James B. Comey of the FBI. “These Anti-Trafficking Coordination Teams are the most effective way to investigate human trafficking by allowing us to work in a collaborative, victim-oriented manner.”
The new teams were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).
The new ACTeams will collaborate with the human-trafficking subject matter experts in the Federal Enforcement Working Group to implement a strategic action plan in their respective districts. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice.
Launched in 2011 by the Attorney General and Secretaries of Labor and Homeland Security, the ACTeam Initiative established six Phase I ACTeams in Atlanta; El Paso, Texas; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; and Miami. In these ACTeam districts, prosecutions of forced labor, international sex trafficking and adult sex trafficking rose even more markedly than they did nationally. For instance, the number of defendants convicted rose 86 percent in ACTeam districts, compared to 14 percent in non-ACTeam districts, and 26 percent nationwide. Based on this demonstrated record of success, Attorney General Lynch, Labor Secretary Perez and Homeland Security Secretary Johnson launched Phase II of the ACTeam Initiative earlier this year. The fight against human trafficking remains a top priority for the three officials and they have committed to collaborating with other governmental and non-governmental partners to continue to enhance their anti-trafficking efforts.
Departments of Justice, Homeland Security and Labor Announce Selection of Phase II Anti-Trafficking Coordination TeamsRead the Press Release
WASHINGTON – The U.S. Departments of Justice, Homeland Security and Labor announced today the selection of six new Anti-Trafficking Coordination Teams. These teams will lead Phase II of the ACTeam Initiative, an interagency effort to streamline federal criminal investigations and prosecutions of human trafficking offenses.
The six new ACTeams will be based in Cleveland; Minneapolis; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Each team will serve under the leadership of the local U.S. Attorney and the highest-ranking federal investigative agents in the regional field offices of the FBI, U.S. Immigration and Customs Enforcement (ICE) and Department of Labor.
“Human trafficking robs victims of their liberty, exploits them for labor and for sex, and infringes not only on their rights, but on their essential humanity,” said Attorney General Loretta Lynch. “Through the ACTeam Initiative, we are harnessing resources across the federal government to ensure that our multi-agency fight against human trafficking is as comprehensive and effective as possible. In the days and months ahead, the Department of Justice will continue to work alongside our federal partners to prosecute wrongdoing, support survivors, and bring this devastating crime to an end.”
"The Anti-Trafficking Coordination Team (ACTeam) Initiative is an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh C. Johnson of Homeland Security. “It highlights our commitment to increase capacity to rescue victims and bring perpetrators of these terrible crimes to justice. Our collective efforts are amplified when we work together in furtherance of shared missions like this. And, through DHS’s Blue Campaign, we will remain focused on ending human trafficking in the United States.”
“A trafficking victim shouldn’t have to spend time trying to determine whether they have a Department of Labor issue or a Department of Justice issue,” said Secretary Thomas Perez of the Department of Labor. “Their basic rights are being violated, and we can accomplish so much more to redress those crimes when we work together. The Anti-Trafficking Coordination Team Initiative, by bringing our respective departments’ collective resources and expertise to bear, is helping us build a whole even greater than the sum of our individual parts.”
“Human trafficking is a modern day form of slavery that destroys lives and exploits the most vulnerable in our society,” said Director James B. Comey of the FBI. “These Anti-Trafficking Coordination Teams are the most effective way to investigate human trafficking by allowing us to work in a collaborative, victim-oriented manner.”
The new teams were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).
The new ACTeams will collaborate with the human-trafficking subject matter experts in the Federal Enforcement Working Group to implement a strategic action plan in their respective districts. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice.
“We are honored that the District of Oregon has been selected as an ACTeam,” said United States Attorney Billy J. Williams. “We have a fantastic team of agents and prosecutors who are dedicated to identifying and fighting human trafficking in all forms. We have been working closely with our partners at the FBI, HSI/ICE, the Department of Labor, and the Civil Rights Division at DOJ, with positive results, and are excited to enhance our ability to rescue victims and prosecute traffickers through this intensive and collaborative national initiative.”
“We believe that human trafficking is a form of modern day slavery that – rightly – demands our attention,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “That we were chosen to receive one of the Anti-Trafficking Coordination teams is testament to the fact that we have both a significant need and established partnerships already in place to take on this challenge. The victims deserve nothing less.”
“Trafficking victims need all of us in law enforcement to hear their cries for help,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) in Seattle. “No one should be forced to live in a world of fear, isolation and servitude --particularly in our country, which prides itself on its freedoms. Our collective team efforts will enable us to rescue more victims and ensure the perpetrators of these crimes are brought to justice.”
Launched in 2011 by the Attorney General and Secretaries of Labor and Homeland Security, the ACTeam Initiative established six Phase I ACTeams in Atlanta; El Paso, Texas; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; and Miami. In these ACTeam districts, prosecutions of forced labor, international sex trafficking and adult sex trafficking rose even more markedly than they did nationally. For instance, the number of defendants convicted rose 86 percent in ACTeam districts, compared to 14 percent in non-ACTeam districts, and 26 percent nationwide. Based on this demonstrated record of success, Attorney General Lynch, Labor Secretary Perez and Homeland Security Secretary Johnson launched Phase II of the ACTeam Initiative earlier this year. The fight against human trafficking remains a top priority for the three officials and they have committed to collaborating with other governmental and non-governmental partners to continue to enhance their anti-trafficking efforts.
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Defendant Sentenced in Manhattan Federal Court to 30 Years in Prison for Shooting at Police Officer and Murdering A 19-Year-Old VictimRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DARREN MORRIS was sentenced yesterday in Manhattan federal court to 30 years in prison on firearms charges relating to a July 2009 Bronx murder and a November 2009 attempted shooting of a New York City Police Department (“NYPD”) police officer.
Manhattan U.S. Attorney Preet Bharara said: “As part of a Bronx robbery crew, Darren Morris lived a life of violence, including participating in a July 2009 murder and a November 2009 attempted shooting of a police officer. With his conviction and sentence, Morris will no longer pose a threat to the safety of the Bronx community he once terrorized.”
MORRIS was originally charged in September 2011 with robbery and firearms offenses, in connection with his involvement in an attempted home invasion robbery and subsequent police shooting occurring on or about November 2009. During the robbery, MORRIS struck one of the victims in the head with a gun, causing the gun to discharge one round. While fleeing the scene of the robbery, MORRIS also fired several shots at a police officer who pursued him. Two other defendants, Michael Campbell and Alphonso Campbell, were also charged in connection with the attempted robbery.
In January 2013, the United States Attorney’s Office obtained a 24-count Superseding Indictment charging nine defendants, including MORRIS and Michael Campbell, in a wide-ranging robbery conspiracy, and numerous robbery, attempted robbery, carjacking, and firearm charges. As part of that Superseding Indictment, Michael Campbell and Patrick Lewis were charged in the December 26, 2010, murder of victim Patrick Woodburn, 20, of the Bronx, in the area of 3527 Mickle Avenue in the Bronx. The Superseding Indictment alleged that MORRIS, Lewis, Michael Campbell, and other members of their Bronx robbery crew committed a number of armed robberies of drug traffickers and commercial businesses between approximately 2009 and 2012.
Further investigation revealed that MORRIS and Michael Campbell participated in the shooting and murder of victim Jordan Jones, 19, of the Bronx, on or about July 5, 2009, in the area of Monticello Avenue and Nereid Avenue in the Bronx. On March 18, 2014, the United States Attorney’s Office obtained another Superseding Indictment, adding murder charges against MORRIS relating to the killing of Jones.
On February 11, 2014, Michael Campbell pled guilty to participating in the murders of both Woodburn and Jones. On July 1, 2014, the Honorable John F. Keenan sentenced Michael Campbell to 30 years in prison. On February 18, 2014, Lewis pled guilty to participating in the murder of Woodburn, and to his involvement in the charged robbery conspiracy. On September 17, 2014, Judge Keenan sentenced Lewis to 25 years in prison. A number of the other charged members of the robbery crew also pled guilty, and received lengthy sentences (a full table follows).
On September 23, 2014, MORRIS pled guilty to two firearm counts, and admitted during his plea allocution to discharging his firearm during his flight from an attempted home invasion robbery in November 2009, and to shooting and killing Jones in July 2009 in connection with an ongoing dispute with a rival criminal group. On December 16, 2015, Judge Keenan sentenced MORRIS to 30 years in prison in relation to those offenses.
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A chart containing the names, charges of conviction, sentencing dates, and sentences imposed on each defendant is attached.
Mr. Bharara praised the investigative work of the NYPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by the Office’s Violent and Organized Crimes Unit. Assistant United States Attorneys Christopher J. DiMase and Jessica Masella are in charge of the prosecution.
U.S. v. Darren Morris, et al.
DEFENDANT
CHARGES OF CONVICTION
SENTENCE DATE
SENTENCE
DARREN MORRIS
Use of a Firearm In Furtherance of a Crime of Violence (2 counts)
December 16, 2015
30 years
MICHAEL CAMPBELL
Use of a Firearm In Furtherance of a Crime of Violence (2 counts)
July 1, 2014
30 years
PATRICK LEWIS
Use of a Firearm In Furtherance of a Crime of Violence & Robbery Conspiracy
September 17, 2014
25 years
JAMAL FRAZER
Use of a Firearm In Furtherance of a Crime of Violence & Robbery Conspiracy
February 25, 2014
154 months
TYRIEK SKYFIELD
Use of a Firearm In Furtherance of a Crime of Violence
January 30. 2014
10 years
PRINCE WAREHAM
Use of a Firearm In Furtherance of a Crime of Violence
January 30, 2014
7 years
RASHID TURNER
Use of a Firearm In Furtherance of a Crime of Violence
January 31, 2014
7 years
ANTHONY FRANCIS
Robbery
February 24, 2014
6 years
ALPHONSO CAMPBELL
Use of a Firearm In Furtherance of a Crime of Violence
April 3, 2013
5 years
Cross Lanes couple prosecuted in Federal court for methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes woman was sentenced today in federal court in Charleston, West Virginia, to three years and four months in federal prison for distributing methamphetamine with her husband, announced United States Attorney Booth Goodwin. Sherri Little, 41, previously pleaded guilty in April of 2015 to the federal drug charge. Matthew Little, 38, the husband of Sherri Little, previously pleaded guilty to conspiracy to distribute five grams or more of methamphetamine in May of 2015.
From early 2014 until December of that same year, Matthew Little admitted that he conspired to distribute methamphetamine with his wife, Sherri Little. Matthew Little further admitted that he and his wife would sell methamphetamine, either from their residence in Cross Lanes or at different locations throughout Cross Lanes. On September 9, 2014, Matthew Little told a confidential informant working with law enforcement to go to his home for a drug deal. Once the confidential informant arrived at the house, Sherri Little called her husband to confirm the details of the drug deal. After the conversation with her husband, Sherri Little sold methamphetamine to the confidential informant. Matthew Little is currently incarcerated, awaiting sentencing on his federal drug conspiracy charge.
The cases against Matthew and Sherri Little were investigated by the Metropolitan Drug Enforcement Network Team.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Convenience Store Owner Pleads Guilty to Conspiracy to Distribute SpiceRead 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 Adel Abdullah, 32, of Lackawanna, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, controlled substance analogues, before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that the conspiracy involved the sale of synthetic cannabinoids, also known as “spice,” at the Speedy Market, a convenience store at 1799 Genesee Street in Buffalo in 2011 and 2012. Abdullah owned and operated the store. The defendant regularly ordered shipments of the spice from sources across the country. Abdullah and his clerks then sold the spice as potpourri not for human consumption, yet gave customers complimentary cigars as rolling paper to smoke the spice.
By 2012, spice and the myriad chemicals used to approximate its marijuana effect were becoming a major public health hazard. In April 2012, an Erie County health inspector served an order on Abdullah’s store from the New York State Department of Health banning the sale of spice. Yet in May 2012, the store still sold spice and agents still found stockpiles of synthetic cannabinoids and packaging material at the store and at Abdullah’s home. Agents also recovered a package containing 2400 vials of synthetic cannabinoids, invoiced by a New Mexico supplier on May 15, 2012. According to invoices and other records in the case, some of what was being sold at Abdullah’s store for $10 per vial or packet only cost him $2.50.
The plea 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 Office and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.
Sentencing is scheduled for April 6, 2016, at 2:00 p.m. before Judge Skretny.
Cleveland one of six cities selected for federal team to combat human traffickingRead the Press Release
U.S. Attorney Steven M. Dettelbach today announced the selection of the Northern District of Ohio as one of only six federal districts designated to participate in the Anti-Trafficking Coordination Team (ACTeam) Initiative, an interagency federal law enforcement initiative aimed at streamlining the investigation and prosecution of federal human trafficking offenses.
“This designation will allow us to build on our success here in Northern Ohio by devoting more resources to investigating and prosecuting human trafficking,” Dettelbach said. “The cases we have prosecuted remind us time and again that labor trafficking and sex trafficking hide in plain sight.”
“Human trafficking violates the rights of the most vulnerable in our community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI aggressively pursues justice for these victims and this initiative will help us investigate these cases.”
Dettelbach’s announcement follows the joint announcement of Attorney General Loretta E. Lynch, Secretary of Homeland Security Jeh Johnson, and Secretary of Labor Thomas E. Perez earlier today designating the following cities as Phase II ACTeam sites: Cleveland, Ohio; Minneapolis, Minnesota; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California.
The sites were selected by unanimous interagency consensus of the Federal Enforcement Working Group, comprised of national anti-trafficking experts of the Department of Justice, Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of United States Attorneys, the Federal Bureau of Investigation, the Department of Homeland Security’s Immigration and Customs Enforcement, and the Department of Labor’s Wage and Hour Division and Office of the Inspector General.
ACTeams are aimed at developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking, and sex trafficking of adults by force, fraud, and coercion, complementing Project Safe Childhood and related efforts aimed at combating child sexual exploitation, including child sex trafficking. ACTeams bring together federal prosecutors and federal agents from multiple federal investigative agencies to develop and implement proactive anti-trafficking case identification, investigation, and prosecution strategies in close coordination with one another and with national anti-trafficking subject matter experts.
Nearly 50 people have been indicted in federal court in the Northern District of Ohio for human trafficking and related offenses since 2010. Among them:
U.S. v. Callahan, et al.: Jessica Hunt is serving 32 years in prison and Jordie Callahan is serving 30 years in prison after a jury convicted them of abusing a developmentally impaired woman in Ashland. The adult victim and her toddler were forced to live in a squalid basement without a bathroom or running water. They were only permitted to come upstairs when the adult victim was ordered to clean and do chores around the home.
U.S. v. Mack, et al.: Jeremy Mack is serving life in prison for forcing – through violence, threats and coercion -- girls to engage in commercial sex acts for his benefit. Mack would not permit the girls to leave the house unescorted (with few exceptions) and terrorized them with firearms.
U.S. v. Robinson, et al.: Brandon Robinson was sentenced to eight years in prison after forcing a 14 year-old runaway to provide sexual services at truck stops along I-75 in Ohio.
U.S. v. Tutstone: Eric Tutstone was sentenced to more than 11 years in prison for attempting to sell a 16-year-old girl for $300 to a woman he believed was a “madam.” Tutstone arranged for the “sale” to take place at a Starbucks in downtown Cleveland.
During Phase I of the ACTeam Initiative, Phase I Pilot ACTeams were convened in Atlanta, Georgia; El Paso, Texas; Kansas City, Missouri; Los Angeles, California; Memphis, Tennessee; and Miami, Florida. Phase I proved highly successful, with ACTeam Districts collectively increasing prosecutions by 119 percent, compared to 35 percent nationwide during the same two-year period.
Based on the outstanding results of Phase I, Attorney General Lynch, Secretary of Homeland Security Johnson, and Secretary of Labor Perez launched Phase II on June 25, 2015 by soliciting joint applications from United States Attorneys’ Offices and their federal law enforcement partners nationwide.
“Human trafficking robs victims of their liberty, exploits them for labor and for sex, and infringes not only on their rights, but on their essential humanity,” said Attorney General Loretta Lynch. “Through the ACTeam Initiative, we are harnessing resources across the federal government to ensure that our multi-agency fight against human trafficking is as comprehensive and effective as possible. In the days and months ahead, the Department of Justice will continue to work alongside our federal partners to prosecute wrongdoing, support survivors, and bring this devastating crime to an end.”
“The Anti-Trafficking Coordination Team (ACTeam) Initiative is an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh C. Johnson of Homeland Security. “It highlights our commitment to increase capacity to rescue victims and bring perpetrators of these terrible crimes to justice. Our collective efforts are amplified when we work together in furtherance of shared missions like this. And, through DHS’s Blue Campaign, we will remain focused on ending human trafficking in the United States.”
“A trafficking victim shouldn’t have to spend time trying to determine whether they have a Department of Labor issue or a Department of Justice issue,” said Secretary Thomas Perez of the Department of Labor. “Their basic rights are being violated, and we can accomplish so much more to redress those crimes when we work together. The Anti-Trafficking Coordination Team Initiative, by bringing our respective departments’ collective resources and expertise to bear, is helping us build a whole even greater than the sum of our individual parts.”
“Human trafficking is a modern day form of slavery that destroys lives and exploits the most vulnerable in our society,” said FBI Director James B. Comey. “These Anti-Trafficking Coordination Teams are the most effective way to investigate human trafficking by allowing us to work in a collaborative, victim-oriented manner.”
The Attorney General has declared efforts to bring human traffickers to justice and to restore the lives of human trafficking survivors be among the highest priorities of the Department of Justice.
Charleston man pleads guilty to Federal drug chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Charleston man pleaded guilty today to a federal heroin charge. Thomas Kerr Clements, 53, entered a guilty plea in federal court in Charleston, West Virginia, to distributing heroin.
Clements admitted that on May 27, 2015, he sold heroin to a confidential informant working with law enforcement authorities. The drug deal took place at the defendant’s residence, located in the Rand area of Charleston.
Clements faces up to 20 years in federal prison a $1 million fine when he is sentenced on March 17, 2016, in federal court in Charleston.
The case against Clements was investigated by the Kanawha County Sheriff’s Department, Sheriff’s Tactical Operations Patrol Team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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California Man Charged with Conspiring to Provide Material Support to Terrorism and Being ‘Straw Purchaser’ of Assault Rifles Ultimately Used in San Bernardino, California, AttackRead the Press Release
Enrique Marquez Jr., 24, of Riverside, California, a longtime friend of Syed Rizwan Farook, the male shooter in the San Bernardino, California, terrorist attack, was charged today with conspiring to provide material support to terrorists based upon his role in terrorist plotting with Farook in 2011 and 2012, the unlawful purchase of the two assault rifles used in the deadly shooting two weeks ago and defrauding immigration authorities by entering into a sham marriage with a member of Farook’s family.
Marquez was arrested today by the FBI and is expected to make his initial court appearance later today in federal court in Riverside. Marquez was charged in a three-count criminal complaint filed in the U.S. District Court for the Central District of California with conspiring to provide material support – including personnel, firearms and explosives – to terrorists in 2011 and 2012; with making a false statement in connection with acquisition of firearms; and immigration fraud.
“Enrique Marquez Jr. is charged with conspiring to provide material support to terrorists for his role in plotting attacks on American soil in 2011 and 2012, attacks which were, fortunately, not carried out. He is also charged with a firearms violation for making a straw purchase of weapons for Syed Rizwan Farook – weapons that were eventually used to carry out the recent terrorist attack in San Bernardino,” said Assistant Attorney General Carlin. “We will continue to investigate, and seek to hold accountable anybody found to be involved in, that heinous act. I would like to extend my gratitude to all the members of law enforcement involved in this ongoing investigation.”
“Mr. Marquez conspired with Mr. Farook to commit vicious attacks, as set forth in today’s charges,” said U.S. Attorney Eileen M. Decker of the Central District of California. “Even though these plans were not carried out, Mr. Marquez’s criminal conduct deeply affected San Bernardino County, Southern California, and the entire United States when the guns purchased by Marquez were used to kill 14 innocent people and wound many others. While there currently is no evidence that Mr. Marquez participated in the Dec. 2, 2015 attack or had advance knowledge of it, his prior purchase of the firearms and ongoing failure to warn authorities about Farook’s intent to commit mass murder had fatal consequences. Today’s charges are the result of exceptional work by many prosecutors and law enforcement agencies, and I thank them for their tremendous effort so far in this case.”
“Many dedicated law enforcement personnel have worked around the clock and side by side with their Joint Terrorism Task Force partners to gather evidence and build a solid terrorism case against Mr. Marquez over the past two weeks,” said Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office. “As we will continue to investigate the facts surrounding the terrible shooting in San Bernardino, we will leave no stone unturned in an effort to deliver answers and justice to the murdered victims and the families they left behind.”
The affidavit in support of the complaint provides details into parts of the exhaustive and ongoing investigation into the attack on Dec. 2, 2015, that killed 14 people at the Inland Regional Center (IRC). The complaint does not allege that Marquez was involved in the terrorist attack at the IRC. The complaint does allege that Marquez purchased the AR-15-style rifles that were ultimately used in the shooting, that Marquez previously purchased explosive material that was ultimately used to construct a pipe bomb that was found at the IRC and that in 2011 and 2012, Marquez and Farook planned terrorist attacks in the Inland Empire, California, that ultimately were not carried out.
According to the affidavit, in approximately 2005, Marquez moved to Riverside, where he met Farook, who was his next-door neighbor. After their initial meeting, Farook introduced Marquez to Islam, and, in 2007, Marquez converted to Islam. Farook later introduced Marquez to radical Islamic ideology, which included expressing disdain towards Muslims in the U.S. military who killed other Muslims, as well as discussing the extremist views of the now-deceased imam and Islamic lecturer Anwar al-Aulaqi. Over the next few years, Farook provided Marquez with radical Islamic materials, and by 2011, Marquez spent most of his time at Farook’s residence listening to lectures and watching videos involving radical Islamic content. Those materials included Inspire Magazine, the official publication of Al-Qaeda in the Arabian Peninsula (AQAP), and videos produced by Al-Shabaab. In August 2011, Farook informed Marquez of his interest in joining AQAP in Yemen.
In late 2011, according to the affidavit, Marquez and Farook started planning to use firearms and explosives to carry out terrorist acts – attacks that Marquez told investigators were designed to maximize the number of casualties that could be inflicted. The affidavit recounts a recent interview with Marquez in which he admitted making plans with Farook to attack the library or cafeteria at Riverside Community College (RCC), where both men had been students. The plan allegedly was to throw pipe bombs into the cafeteria area from an elevated position on the second floor, and then to shoot people as they fled.
Marquez and Farook also planned to attack eastbound lanes of State Route 91 (SR-91) during afternoon rush hour, the affidavit states. Marquez told investigators that they chose a particular section of the freeway because there were no exits, which would increase the number of targets in the eastbound lanes. The plan was for Farook to throw pipe bombs on to the freeway, which they believed would disable vehicles and stop traffic. Farook allegedly planned to then move among stopped vehicles, shooting into them, while Marquez shot into vehicles from a position on a nearby hillside. Marquez allegedly said that he would watch for law enforcement and emergency vehicles, and his priority was to shoot law enforcement before shooting life-saving personnel.
According to the affidavit, Marquez and Farook took steps to carry out their plans by purchasing firearms, ammunition and other tactical gear, as well as going to local firing ranges. In late 2011 and 2012, Marquez allegedly purchased two firearms and portrayed himself as the actual purchaser of the rifles, when he was in fact buying the weapons for Farook as part of the plan to attack RCC and SR-91. According to the affidavit, Marquez told investigators that he agreed to purchase the weapons because “his appearance was Caucasian, while Farook looked Middle-Eastern.” Investigators have determined that on Nov. 14, 2011, Marquez purchased a Smith and Wesson M&P-15 Sport rifle for Farook. On Feb. 22, 2012, Marquez purchased a DPMS model A-15 rifle, according to records in the affidavit, which states that each rifle cost approximately $750.
Around the same time as he purchased the firearms for Farook, Marquez purchased explosives – specifically smokeless powder – “in furtherance of his and Farook’s plans to create bombs and commit mass killings,” according to the affidavit.
In the first half of 2012, Marquez and Farook allegedly continued to prepare for terrorist attacks by going to firing ranges to practice shooting guns and further discussing extremist ideologies. After 2012, Marquez allegedly distanced himself from Farook and ceased plotting with Farook for a variety of reasons, including the arrest of Ralph Deleon and others on material support for terrorism charges in November 2012.
The complaint affidavit alleges the following timeline of events based on the investigation to date. On the morning of Dec. 2, 2015, shortly after 9:00 a.m., Farook went to an event at the IRC and placed an item on a table. Following the shooting at the IRC, investigators discovered a remote-controlled improvised explosive device (IED) on a table – a pipe bomb constructed out of three galvanized steel pipes and smokeless powder that was armed and ready to detonate. A subsequent search of Farook’s residence led to the discovery of smokeless powder that Marquez allegedly admitted purchasing in 2011 while planning terrorist acts with Farook. In addition, a remote control was found in the sports utility vehicle after Farook and his wife Tafsheen Malik were killed. In his interview with investigators, Marquez allegedly stated that the smokeless powder was purchased to be used in the construction of an “explosive device.” Marquez described his familiarity with the use of remote-control devices to detonate IEDs, and said he and Farook reviewed instructions on how to make IEDs that were in Inspire Magazine, according to the affidavit.
According to the affidavit, subsequent investigation determined that on the morning of the shooting, a Facebook account associated with Malik searched for materials related to the Islamic State of Iraq and the Levant (ISIL). Shortly after the shooting, a post on a Facebook page associated with Malik said, “We pledge allegiance to Khalifa bu bkr al bhaghdadi al quraishi” which the affidavit alleges is a reference to the leader of ISIL.
After Farook and Malik were killed in the shooting that ended the pursuit, authorities recovered four firearms and thousands of rounds of ammunition. Among the firearms recovered were the two rifles that Marquez allegedly purchased for Farook several years earlier. Forensic testing has confirmed that the two rifles were used in the attack on the IRC.
Four days after the attack on the IRC, Marquez met with law enforcement officials investigating the incident. Marquez admitted a series of statements that are detailed in the affidavit.
In addition to the charges related to the straw purchase of the rifles and the plans to commit terrorist attacks, Marquez is charged with defrauding U.S. Citizenship and Immigration Services in relation to a sham marriage with a member of Farook’s extended family so that she could obtain legal status in the United States. In return for his participation in the fraud, she paid Marquez $200 per month.
The charge of conspiring to provide material support to terrorists carries a maximum sentence of 15 years in prison. The charge of making a false statement in connection with the acquisition of firearms carries a statutory maximum sentence of 10 years in prison. The charge of immigration fraud carries a statutory maximum sentence of 10 years in prison. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty.
This investigation is being conducted by several partner agencies that are part of the Los Angeles FBI’s Inland Empire Joint Terrorism Task Force. Several agencies are providing considerable assistance to the investigation, including the San Bernardino County District Attorney’s Office and detectives with the Chino Police Department; the Redlands Police Department; and the Corona Police Department. In addition, investigators have collaborated with sister task forces in the region and throughout the country, as well as with the intelligence community; foreign law enforcement partners; and various FBI Legal Attachés located overseas. The case is being prosecuted by the U.S. Attorney’s Office of the Central District of California and the National Security Division’s Counterterrorism Section.
Marquez Complaint
CEO of Florida Financial Firm Arraigned on Fraud Charges in $179 Million Sham Loan SchemeRead the Press Release
CHICAGO — The chief executive of a Florida financial firm was arraigned today on federal fraud charges for allegedly selling $179 million in sham loans to a Milwaukee investment company.
Nikesh Patel, the chairman and CEO of Orlando-based First Farmers Financial LLC, forged signatures and produced false documents to create the appearance that approximately 26 government-backed loans had been issued to borrowers in Florida and Georgia, according to an indictment returned earlier this month in federal court in Chicago. The sham loans purported to contain principal amounts ranging from $2.5 million to $10 million, the indictment states. Patel sold the fraudulent loans to a Milwaukee investment firm for $179 million, according to the indictment.
The indictment charges Patel, 32, of Windermere, Fla., with five counts of wire fraud. He pleaded not guilty this afternoon during his arraignment before U.S. District Judge Charles P. Kocoras in Chicago. The next court appearance was scheduled for Jan. 21, 2016, at 9:30 a.m.
Through its Business and Industry Guaranteed Loan Program, the U.S. Department of Agriculture guarantees a percentage of loans issued to borrowers who improve the economic and environmental climate in rural communities. First Farmers obtained certification to participate in the program after Patel submitted false statements to the USDA about his company’s assets and officers, according to the indictment.
The indictment contends that Patel then submitted false statements to the Milwaukee firm to secure the sale of the phony loans. The fabrications included a false guarantee that the USDA had backed a portion of the loans’ principal amounts, according to the indictment. The Milwaukee firm paid $179 million for the loans as an investment vehicle for its list of clients, which included community banks, retirement plans, municipalities, and subdivisions in Illinois and elsewhere, the indictment states.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant United States Attorneys Patrick J. King Jr. and Rick D. Young.
Black Hat Bandit Gunman Sentenced to 32 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Thomas Anthony George, 65, of Washington, D.C., was sentenced today to 384 months in prison for two counts of using a firearm during the commission of armed bank robberies. George was also ordered to pay full restitution in the amount of $182,104.48.
“Thomas George has been robbing banks for most of his adult life,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “I want to thank our prosecutors and investigative partners for their efforts on this case and for bringing this violent serial bank robber to justice.”
George pleaded guilty on Sept. 24, 2015. According to court documents, in approximately January 2015, George entered a conspiracy to commit armed bank robberies within the Eastern District of Virginia, and elsewhere. Over the course of the ensuing two months, George and his co-conspirators, who were known as the Black Hat Bandits, robbed nine banks, including six banks in the Eastern District of Virginia, two banks in the District of Maryland, and one bank in the District of Columbia. In each of these robberies, George brandished a firearm at bank customers or employees of the bank. In total, George and his co-conspirators stole approximately $182,104 during the nine bank robberies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Channing D. Phillips, Acting U.S. Attorney for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Cathy Lanier, Chief of the Metropolitan Police Department, made the announcement after sentencing by U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Tobias D. Tobler and Jonathan L. Fahey prosecuted the case.
The investigation was worked jointly by the FBI's Washington and Baltimore Field Offices, Anne Arundel County Police Department, Charles County Sheriff’s Office, Fairfax County Police Department, Falls Church Police Department, Loudoun County Police Department, the Metropolitan Police Department, Vienna Police Department and Virginia State Police. Additional assistance was provided by Arlington County Police Department, Maryland State Police and the Montgomery County Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-CR-87.
Belleville Man Sentenced to 168 Months in Prison for Drug and Firearm ChargesRead the Press Release
Joseph R. Carr, 25, of Belleville, Illinois, was sentenced to 168 months in prison on a four-count indictment charging him with Distribution of a Controlled Substance, Carrying a Firearm During and in Relation to a Drug Trafficking Crime, Possession with Intent to Distribute Controlled Substance, and Felon in Possession of a Firearm, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Carr will be on federal supervised release for 5 years. Carr was also ordered to pay a fine of $400, as well as a $400 special assessment.
On April 15, 2015, Carr was arrested for selling heroin to an undercover informant in Belleville, Illinois while carrying a firearm. Carr has one prior felony conviction. Carr pled guilty to the charges on September 15, 2015.
This case was investigated by the St. Clair County Drug Tactical Unit and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Arcade Man Pleads Guilty to Drug ChargeRead 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 Ryan Tojdowski, 31, of Arcade, NY, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Caleb J. Petzoldt, who is handling the case, stated that on December 17, 2014, during the course of an investigation, the Wyoming County Sheriff’s Department discovered the defendant to be in engaged in the manufacturing and distribution of marijuana. In addition, deputies found Tojdowski to be in possession of quantities of oxycodone, morphine, alprazolam, hydrocodone, clonazepam, dihydrocodeine as well as a .223 assault rifle.
The plea is the culmination of an investigation on the part of the Wyoming County Sheriff’s Department, under the direction of Gregory J. Rudolph and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
Sentencing is scheduled for March 31, 2016 at 10:00 a.m. before Judge Vilardo.
Anchorage Man Indicted by Federal Grand Jury for Unlawful Production of False Identification DocumentsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that David Wayne Henry was indicted by a federal grand jury in Anchorage for unlawful production of false identification documents which appeared to be issued under the authority of the United States.
Henry, 41, of Kenai, Alaska, is the sole defendant named in the one-count indictment, together with one forfeiture allegation.
According to the indictment, Henry illegally produced numerous false identification documents which appeared to be issued by federal agencies. The fake IDs reflected Henry’s photo, but the names and personnel identifiers of other individuals. Some of the fake IDs were also in Henry’s own name. They consisted of ID cards for the FBI, the CIA, the Department of Defense, the U.S. Marine Corps, and the Department of Veterans Affairs.
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. In addition, the forfeiture allegation seeks forfeiture of the following property: 30 common access cards with microchips, 500 common access cards without microchips, hologram stickers, notary seals, laminating materials, printers, laminator, and electronic media. 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.
“Creating false identification documents is a serious crime all by itself, but making false law enforcement and official government identifications raises the potential for harm to another level” said Kevin R. Feldis, First Assistant U.S. Attorney and Criminal Division Chief for the District of Alaska. “The FBI responded quickly to seize the fake ID cards and will continue to investigate this case.”
The FBI conducted the investigation leading to the indictment in 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.
Albuquerque Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Marquis Pounds, 28, of Albuquerque, N.M., pleaded guilty today in federal court to being a felon in possession of firearms and ammunition. Under the terms of the plea agreement, Pounds will be sentenced within the range of seven to eight years in federal prison.
Pounds was arrested in June 2015, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on June 5, 2015, in Bernalillo County, N.M. According to the criminal complaint, law enforcement officers executed search warrants on Pounds’ residence in northeast Albuquerque and seized a revolver and ammunition. Subsequent investigation revealed that revolver and ammunition had been reported stolen from a pawn shop in Los Lunas, N.M. Pounds was subsequently indicted on July 14, 2015, on the same charge.
According to court documents, Pounds was prohibited from possessing firearms or ammunition because he previously had been convicted of receiving or transferring a stolen vehicle, tampering with evidence, possession of narcotics with intent to distribute, conspiracy to possess narcotics with intent to distribute, and embezzlement.
During today’s hearing, Pounds pled guilty to the indictment and admitted that on June 5, 2015, he possessed a firearm despite the fact that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Pounds remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department and the Los Lunas Police Department with assistance from the 2nd Judicial District Attorney’s Office.
Assistant U.S. Attorney Presiliano A. Torrez is prosecuting the case as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
16 December 2015
Wisconsin Man Sentenced to 51 Months in Prison for Traveling Overseas to Engage in Illicit Sexual ConductRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of STEVEN RICHARD SMASAL, 48, to 51 months in prison for traveling abroad to engage in illicit sexual conduct. SMASAL pleaded on guilty on July 24, 2015, before U.S. District Judge John R. Tunheim. He was sentenced today in U.S. District Court in Minneapolis, Minn., before now Senior U.S. District Judge Tunheim.
“This sentence serves as a warning to all those who would consider traveling overseas to sexually exploit children, ” said acting Special Agent in Charge William Lowder of HSI St. Paul. “Sex tourism is a crime in the United States. HSI and our law enforcement partners here and around the world will aggressively pursue those who attempt to harm children, no matter where that may be.”
According to the defendant’s guilty plea, on February 24, 2015, SMASAL, who had spent significant time teaching in the Philippines, was scheduled to travel from the Twin Cities to Beijing via Toronto. The purpose of his trip was to teach English in Beijing and to engage in illicit sexual conduct with minor girls in the Phillippines.
According to the defendant’s guilty plea, SMASAL communicated with at least two females, one of whom was the mother of a 14-year-old girl. SMASAL indicated to the woman that he would like to meet her and her 14-year-old daughter in the Phillippines, at one point stating, “…understand that I will want you and ur daughter.” SMASAL later stated, “Is it ok that I have sex with ur daughter?” Finally, he asked, “Can I just have ur daughter then?”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and 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.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
Defendant Information:
STEVEN RICHARD SMASAL, 48
Eau Claire, Wisc.Convicted:
- Travel with intent to engage in illicit sexual conduct, 1 count
Sentenced:
- 51 months in prison
- 15 years of supervised release
Wisconsin Man Charged with Stealing Human RemainsRead the Press Release
Thomas A. Munson, 76, from Prairie du Chien, Wisconsin, has been charged with one count of embezzlement and theft. The charge is contained in an Information filed on December 8, 2015, in United States District Court in Cedar Rapids.
The Information alleges that, between about July 16, 1990 and May 17, 2012, Munson knowingly concealed human remains in the possession of the United States.
If convicted Munson faces the following maximum penalties: (1) not more than one year imprisonment without the possibility of parole or a term of probation of not more than five years; (2) a fine of not more than $100,000; (3) a mandatory special assessment of $25; and (4) a term of supervised release of not more than one year following any prison term.
Munson appeared on December 16, 2015, in federal court in Cedar Rapids and was released without bond. Munson’s next appearance for a change of plea hearing is set for January 4, 2016, at 1:30 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case was investigated by the National Park Service and is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1030.
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Washington DC Man Pleads Guilty to Carjacking and Gun ChargesRead the Press Release
Greenbelt, Maryland – David Nathaniel Peebles, age 31, of Washington, D.C., pleaded guilty today to carjacking and to being a felon in possession of a gun.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation’s Washington Field Office; Interim Chief Henry P. Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement, between January 2011 and April 1, 2012, Peebles conspired with others to commit armed carjackings and other crimes of violence. Peebles and his co-conspirators communicated among themselves about committing carjackings, traveled together in search of potential carjacking targets, and armed themselves with firearms to be used while committing the carjacking.
Specifically, on February 8, 2012, Peebles, Jeffrey Carl Franklin, and another co-conspirator traveled by car to the Manchester Road area of Silver Spring, Maryland, where they spotted a victim parking a 2008 Infiniti. As the victim exited the vehicle, the two co-conspirators approached the victim while Peebles remained in the car. The co-conspirators confronted the victim and at gunpoint, demanded the keys to the car. The co-conspirators took the victim’s purse, which contained the keys to the Infiniti, then entered the Infiniti and drove away, with Peebles following behind in their vehicle.
On February 12, 2012, Peebles and two co-conspirators drove to the Russell Avenue area of Mount Rainier, Maryland, looking for carjacking targets. Again, Peebles remained in the car to act as the getaway driver, while the two co-conspirators approached victims in a 2004 Acura TL. One co-conspirator pointed a gun at the driver’s head and demanded that the driver get out of the car. The driver complied and the co-conspirator then stole the driver’s personal property. The second co-conspirator approached the passenger in the Acura and demanded the passenger’s purse. When the victim did not immediately comply, the co-conspirator struck the victim in the face several times. During the assault the other co-conspirator took the victim’s property. The co-conspirators then got into the Acura and drove away while Peebles followed in their vehicle.
During the course of the conspiracy, Peebles or a co-conspirator knowingly possessed 9 millimeter pistol, with an obliterated serial number, to use in the carjackings. Peebles has at least one previous felony conviction and therefore is prohibited from possessing a firearm or ammunition.
Peebles and the government have agreed that if the Court accepts the plea agreement Peebles will be sentenced to between seven and 15 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 8, 2016 at 2:00 p.m.
Jeffrey Carl Franklin, age 29, of Greenbelt, Maryland, previously pleaded guilty to his role in the carjacking conspiracy and is awaiting sentencing. Another member of the conspiracy, Samuel Damien Bynum, age 25, of Washington, D.C., pleaded guilty and was sentenced to 207 months in prison, for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the FBI, the Prince George’s and Montgomery Counties Police Departments and State’s Attorney’s Offices, and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant Matthew L. Paeffgen, who are prosecuting the case.
Waldorf Man Pleads Guilty to Stealing Guns from a Federally Licensed Firearms Dealer and Setting the Store on FireRead the Press Release
Greenbelt, Maryland – Edward White, age 46, of Waldorf, Maryland, pleaded guilty today to theft of firearms and use of fire during the commission of a felony, in connection with the robbery and arson of a federally licensed firearms dealer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Charles County Sheriff Troy Berry.
According to his plea agreement, in February 2014, White planned to burglarize Fred’s Sports and Furniture, a federally licensed firearms dealer in Waldorf, Maryland. In preparation for the burglary White took photographs outside and inside the store, including the fence, gate, the padlock used to secure the gate, guns, and display cases containing the guns. White also accessed the roof of the store by climbing the HVAC system at the rear of the building, and took photos of the roof and the HVAC system. White’s DNA was recovered from a beam next to the HVAC system. White shared the photos with at least one co-conspirator.
On October 13, 2014, co-conspirators robbed Fred’s Sports and set it on fire. Specifically, co-conspirators cut the chain and padlock previously photographed by White, using bolt cutters provided by White. At least one co-conspirator climbed onto the roof of the building and cut a hole in the roof at the same location photographed by White. A co-conspirator, wearing a mask and gloves, entered the store and gathered more than 70 handguns from display cases throughout the store. After more than an hour, the co-conspirators poured an accelerant on the floor throughout the interior of the store, exited through the hole in the roof and ignited the accelerant. The fire destroyed Fred’s Sports and rendered the building uninhabitable. After the burglary, one of the co-conspirators gave White at least two of the stolen firearms.
Law enforcement officers recovered White’s cell phone near the rear of the store. The phone contained the photos of Fred’s Sports taken by White.
On November 6, 2014, law enforcement executed a search warrant at White’s home and recovered a .380 handgun stolen from Fred’s Sports and five .40 caliber rounds of ammunition. White’s DNA was on the trigger guard. White agreed to go with law enforcement officers to the Charles County Sheriff’s Office, where he requested to use the rest room. While in the toilet stall, White placed a black cloth object in the trash can next to the toilet. Law enforcement subsequently searched the trash can and discovered a black cloth belly band holster containing a .40 caliber semi-automatic handgun, loaded with a magazine and 10 rounds of ammunition. This firearm was also stolen from Fred’s Sports on October 13, 2014. The next day, law enforcement searched White’s car and recovered the bolt cutters used during the robbery.
White and the government have agreed that if the Court accepts the plea agreement White will be sentenced to between 13 and 17 years in prison. U.S. District Judge Theodore Chuang has scheduled sentencing for April 11, 2016.
United States Attorney Rod J. Rosenstein commended the ATF and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner, who prosecuted the case.
Upstate New York Man Sentenced to over Eight Years in Prison for Providing Material Support to TerroristsRead the Press Release
Conspired to Modify Lethal Radiation Device to be Used to Kill Muslims in New York State
Eric J. Feight, 55, of Hudson, New York, was sentenced today to serve 97 months in prison for providing material support to terrorists.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Richard S. Hartunian of the Northern District of New York and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York, Division.
Feight pleaded guilty on Jan. 22, 2014, and admitted to helping Glendon Scott Crawford modify an industrial-grade radiation device intended to be used to kill Muslims in the Albany area. Feight also admitted he assisted Crawford by designing and building a remote initiation unit to allow the radiation device to be activated from a distance. Both men were arrested following an extensive federal investigation. Crawford, a self-proclaimed Ku Klux Klan (KKK) member, sought financial support for his plot from the KKK, and he and Feight later met with individuals they believed to be KKK financiers to advance their scheme to kill innocent Americans. Those individuals were actually FBI agents posing as businessmen connected to the KKK who were willing to support the scheme.
“Eric Feight aided Glendon Scott Crawford in altering a dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation,” said Assistant Attorney General Carlin. “Feight and Crawford’s abominable plot to harm innocent Americans was thwarted thanks to the tireless efforts of law enforcement. The National Security Division’s highest priority continues to be combatting terrorism, and we remain ready to identify, disrupt and prevent terrorist threats, both domestically and internationally.”
“The sentence today highlights both the dangers we face when hatred and bigotry beget domestic terrorism and violent extremism, and our commitment to holding those who commit such crimes accountable,” said U.S. Attorney Hartunian. “No American – of any background – should have to live in fear of this kind of attack. This case illustrates the importance of vigilance by community members and an immediate, comprehensive investigation by our Albany FBI Joint Terrorism Task Force, which thwarted the diabolical plan Feight supported. We must continue to counter messages of hate by empowering communities and emphasizing the inclusion on which our nation was founded – with local, state and federal law enforcement ready to stop any who refuse to heed that call.”
“Today’s sentencing is the result of the incredible efforts of our Joint Terrorism Task Force and the U.S. Attorney’s Office,” said Special Agent in Charge Vale. “While we enjoy today’s success, it is important that we continue to gain the strongest possible understanding to allow us to better assess the terrorism threat and identify those who would go beyond hateful rhetoric and extremist views to commit violent, criminal acts.”
This case was investigated by the Albany FBI Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Stephen C. Green and Richard Belliss of the Northern District of New York, and Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section.
Upshur County, WV woman charged with concealing a fugitive from arrestRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury has returned an indictment charging Ashley Nicole Fulton, 27, of Buckhannon, West Virginia, with concealing a fugitive from arrest, United States Attorney William J. Ihlenfeld, II, announced.
Fulton is alleged to have attempted to prevent representatives of the United States Marshals Service from discovering the whereabouts of Daniel Lee Canter, 30, of Volga, West Virginia, who had been charged with methamphetamine trafficking in the Northern District of West Virginia. Specifically, Fulton is alleged to have falsely told officers from the Marshals Service that Canter was not present at her home.
Canter was discovered in possession of methamphetamine in November 2014 in Lewis County, West Virginia. He pled guilty earlier this month to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Fulton is charged with one count of “Concealing Person From Arrest” and one count of “False Statement to Federal Officer.” She faces up to five years in prison and a fine of up to $250,000 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The United States Marshals Service is leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Seeks to Forfeit and Return A Tyrannosaurus Bataar Skull Looted from the Gobi Desert in MongoliaRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Glenn Sorge, Acting Special Agent-in-Charge of the New York Office of U.S. Immigration and Customs Enforcement’s (“ICE”), Homeland Security Investigations (“HSI”), announced today the filing of a civil forfeiture complaint against a Tyrannosaurus bataar skull (the “Bataar Skull”) unlawfully taken from the Gobi Desert in Mongolia. The Bataar skull, a fossil from the Cretaceous period, which ended approximately 65 million years ago, had been auctioned in Manhattan in 2007 after being unlawfully brought into the United States. The current owner of the Bataar Skull, having been informed of its origins and the circumstances of its importation into the United States, has consented to its forfeiture.
The Bataar Skull is the latest addition to a lengthy list of looted dinosaur fossils the United States Attorney’s Office, in conjunction with its law enforcement partners at HSI, has pursued over the past few years. Since 2012, the United States Attorney’s Office for the Southern District of New York has secured through a combination of civil and criminal actions the return and repatriation to Mongolia of several dinosaur fossils that include three full Tyrannosaurus bataar skeletons, a full Saurolophus angustirostris skeleton and another partial Saurolophus, six Oviraptor skeletons, four Gallimimus skeletons, a partial Ankylosaurus skeleton, a Protoceratops skeleton, a composite nest containing miscellaneous dinosaur eggs, and numerous small, unidentified prehistoric lizards and turtles.
Manhattan U.S. Attorney Preet Bharara said: “We are gratified to add the skull of another Tyrannosaurus bataar to the roster of fossils returned to Mongolia. Each of these fossils represents a culturally and scientifically important artifact looted from its rightful owner. Together with our law enforcement partners, we will continue to pursue opportunities to right the wrongs committed when priceless artifacts are stolen.”
Acting Special Agent-in-Charge Glenn Sorge said: “Cultural artifacts such as this Bataar Skull represent a part of Mongolian national cultural heritage. It belongs to the people of Mongolia. These priceless antiquities are not souvenirs to be sold to private collectors or hobbyists. HSI is committed to working closely with our law enforcement partners and the U.S. Attorney's Office to target this illegal activity and return the smuggled items to their countries of origin.”
According to the allegations in the Civil Complaint unsealed today:
The Tyrannosaurus bataar is indigenous to – and has only been unearthed in – a specific portion of the Gobi Desert called the Nemegt Basin, in what is now Mongolia. Mongolian law has long declared dinosaur fossils found within Mongolia to be government property. Their export from Mongolia without permission of the Government of Mongolia is a violation of Mongolian law.
On or about March 25, 2007, a California-based auction house offered the Bataar skull for sale on auction in Manhattan. The Bataar Skull had been shipped into the United States in or around June 2006 with United States Customs documents that described it only as “fossil stone pieces.” At auction, the Bataar Skull was described as native to the “Eurasian continent.” The Bataar Skull sold for approximately $230,000 at auction to an anonymous California-based buyer (the “Buyer”).
In 2015, HSI performed a physical examination of the skull and confirmed that it rightfully belongs to the Government of Mongolia and had been illegally imported into the United States. Upon being informed of the circumstances regarding the Bataar Skull, the Buyer agreed to turn it over to HSI and consented to its forfeiture.
Mr. Bharara praised the investigative work of HSI.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Martin S. Bell is in charge of the case.
U.S. Attorney Booth Goodwin announces new partnership to prevent overdoseRead the Press Release
PRINCETON, W.Va. – Standing outside the Princeton Detachment of the West Virginia State Police today, United States Attorney Booth Goodwin, joined by West Virginia State Police Major Tim Bradley, and Mercer County Commissioner and Community Connections Executive Director Greg Puckett, announced a new partnership to expand access to naloxone.
The West Virginia State Police are working together with Community Connections, a Southern West Virginia non-profit, on a partnership that will provide training in the use of naloxone for overdose prevention to West Virginia State Troopers in Mercer, McDowell, and Wyoming Counties. Naloxone, commonly known as Narcan, is a medication used by many first responders and law enforcement officers to reverse the effects of opioid overdose.
"This new partnership is a tremendous step forward in the fight against drug addiction in Southern West Virginia," stated U.S. Attorney Goodwin. "Addiction rates here are high, and because it is a rural area, it sometimes takes a long time for an ambulance to reach an overdose call. For the first time, the West Virginia State Police in this region will have naloxone with them while on duty, so when they respond to an overdose call, they can take life-saving action immediately, when every second counts."
The partnership is made possible through a Rural Opioid Overdose Reversal Grant from the U.S. Department of Health and Human Services, Health Resources and Services Administration. The $100,000 grant will facilitate Project ReNew, a pilot program to expand access to naloxone for the West Virginia State Police in Mercer, McDowell, and Wyoming Counties. The pilot program will be administered by Community Connections, a Southern West Virginia non-profit focused on collaborative efforts to build strong communities and improve the lives of local families. Community Connections will train the Troopers in the three-county area on how to administer naloxone. The grant funding will also be used to purchase naloxone kits for the Troopers.
Earlier this year, Governor Tomblin signed legislation into law that permitted the prescription of naloxone for use by initial responders, such as law enforcement. This allowed for the broader use of naloxone as a powerful tool in the fight against addiction. Other resources include the state hotline at 1-844-HELP4WV (1-800-435-7498), and The Call WV app, which connects people with addiction treatment options based on the app user’s location, and is available for download on Apple and Android smartphones and at makethecallwv.com. A cooperative agreement between the U.S. Attorney’s Office for the Southern District of West Virginia and the Huntington Police Department funded the creation of The Call WV app and the makethecallwv.com website by Syntech Creative, a Huntington business, as well as a series of public service announcements about the app and the website created by Trifecta Productions, another Huntington business.
“I want to thank Community Connections for administering this program,” said Goodwin. “Most importantly, I want to thank the West Virginia State Police for continuing to show leadership in confronting the opiate epidemic. We are hopeful that with the State Police on board, other local law enforcement agencies that are not yet training their personnel in the use of naloxone will soon partner in this effort.”
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Two Men Indicted on Federal Charges in $45 Million Mortgage Fraud ConspiraceRead the Press Release
Contact Person: First Assistant U.S. Attorney Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today an indictment charging George L. Turner, Jr., 41, of Ladson, South Carolina and Clayton G. Wickersham, age 34, of Summerville, South Carolina, with Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. Turner and Wickersham are each facing a maximum of 30 years imprisonment and/or a $1,000,000 fine and 5 years of supervised release.
The indictment stems from an ongoing investigation into allegations the defendants were involved in a mortgage fraud conspiracy based out of real estate and mortgage businesses located in Summerville. The indictment alleges the scheme involved more than 70 properties, approximately $45 million of mortgage loans, and a loss of more than $23 million suffered by financial institutions. The indictment further alleges that the properties were located in Charleston, Johns Island, Ladson, Mount Pleasant, Summerville, Edisto Island, St. Helena Island, Garden City, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Lake Keowee, and Tybee Island, Georgia.
Three other defendants previously pleaded guilty in connection with the scheme and are awaiting sentencing. Scott M. Wickersham, 36, of Summerville, pleaded guilty to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, and two counts of Willfully Making and Subscribing a False Tax Return, in violation of Title 26, United States Code, Section 7206(1). Steven F. Weiss, 66, of Virginia, and Kelly Martin, 34, of Moncks Corner, each pleaded guilty to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 371.
The Indictment is the result of an investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant United States Attorney Dean H. Secor of the Charleston office is prosecuting the case.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Two Men Charged with Wire FraudRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles announced the indictment of Aaron Vennefron of Hamilton, Ohio and Phillip Thompson of Augusta, Georgia for conspiracy to commit wire fraud, and theft of government funds. The indictment alleges that the two conspired to defraud the government by creating fraudulent invoices for payment of what appeared to be goods needed for work at the Mixed Oxide Fuel Fabrication Facility at the Savanah River Sight. The indictment further alleges that no goods were ever received and that Vennefron and Thompson received over $4,000,000.00 in payments based on the fraudulent invoices.
The case was investigated by Special Agents with the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney John Potterfield is prosecuting the case.
The United States Attorney stated that the charges alleged in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Two Defendants Sentenced in Manhattan Federal Court to More Than 30 Years in Prison in Connection with 2009 Home Invasion Robbery and MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANTOINE BURROUGHS and LEON WHITFIELD were sentenced today in connection with the home invasion robbery and murder of Gerardo Antoniello on September 9, 2009. BURROUGHS and WHITFIELD were each sentenced to nearly 34 years in prison. Both defendants were also required to pay more than half a million dollars in restitution to Antoniello’s mother. Antoniello was killed during the home invasion robbery of his father, Bartolomeo Antoniello, who was targeted for the cash proceeds of the pizza shop he owned in Queens, New York. BURROUGHS and WHITFIELD previously pled guilty before U.S. District Judge Gregory H. Woods, who imposed today’s sentence.
Manhattan United States Attorney Preet Bharara said: “No amount of prison time or restitution will return Gerardo Antoniello to his family. But this significant prison sentence ensures that Antoine Burroughs and Leon Whitfield can’t harm another innocent family.”
In imposing sentence, United States District Judge Woods told the defendants that the crime they committed was “an atrocity” and “an attack on two innocents for the sake of money.”
According to the allegations in the Indictment and statements made at various proceedings in this case, including the guilty pleas:
BURROUGHS and WHITFIELD were hired by Frank LaCorte, an associate of the Gambino Crime Family, to commit a home invasion robbery. On September 9, 2009, BURROUGHS and WHITFIELD attempted to rob Bartolomeo Antoniello at his home in Queens, New York. BURROUGHS and WHITFIELD were targeting the cash proceeds of Antoniello’s pizza shop. Antoniello’s son, Gerardo Antoniello, was home at the time, and attempted to protect his father. BURROUGHS and WHITFIELD brutally beat and pistol whipped the father and son. During the struggle, Gerardo Antoniello was shot in the head and later died of his injuries. He was 29 years old.
Frank LaCorte was convicted in Queens County Court for his role in organizing this and other home invasion robberies and in June 2012 was sentenced to a term of 50 years to life in prison.
Mr. Bharara praised the work of the Federal Bureau of Investigation, the New York City Police Department, the Queens District Attorney’s Office, and the United States Marshals Service.
The case is being handled by the Office’s Violent and Organized Crimes Unit. Assistant U.S. Attorney Rachel Maimin is in charge of the prosecution.
Treasure Hunter Sentenced for Criminal ContemptRead the Press Release
COLUMBUS, Ohio – Thomas “Tommy” G. Thompson, 63, formerly of Columbus, Ohio, was sentenced in U.S. District Court to 24 months in prison for criminal contempt for failing to appear in court after being ordered to do so in connection with civil suits against him. Thompson was a fugitive until earlier this year when he was arrested by the U.S. Marshals Service.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Peter C. Tobin, United States Marshal for the Southern District of Ohio, announced the sentence imposed yesterday by U.S. District Judge Algenon L. Marbley.
According to court documents, U.S. District Chief Judge Sargus ordered Thompson to appear at an August 13, 2012 hearing in a federal civil case. At the 2012 hearing, Thompson was to provide an accounting of certain funds and the location of 500 re-strike commemorative gold coins as part of a lawsuit over the treasure that Thompson found from the SS Central America shipwreck. After Thompson failed to appear, a bench warrant for Thompson’s arrest was issued the same day.
In March 2013, an arrest warrant based on a criminal complaint alleging criminal contempt was authorized against Thompson.
U.S. Marshals tracked, found, and arrested Thompson and co-defendant Alison L. Antekeier, 47, also formerly of Columbus, Ohio, on January 27, 2015 in Boca Raton, Florida. Thompson and Antekeier – Thompson’s close associate – had been living in a Hilton hotel room under fake names and paying with cash.
The two pleaded guilty on April 8, 2015. As part of their plea, the couple agreed that $425,000 in cash seized at the time of their arrest would not be returned to them.
Thompson was also ordered to pay a fine of $250,000 and was sentenced to one year of supervised release following his prison term, along with 208 hours of community service. Shortly after the sentencing, a hearing was held to determine why Thompson should not be held in civil contempt for failing to comply with Judge Marbley’s order that Thompson assist the civil litigants in the identification and recovery of the 500 coins and other assets. Judge Marbley found that Thompson had not complied and ordered him jailed indefinitely and fined $1000 per day until he complies.
U.S. Attorney Stewart commended the investigation by the U.S. Marshals Service, as well as Assistant U.S. Attorney Douglas W. Squires, who is representing the United States in this case.
Three Members of the Devils Diciples Motorcycle Gang Convicted of Racketeering, Drug-Trafficking, and Charges Related to Suborning Perjury and Obstruction of JusticeRead the Press Release
After a three-month trial, a federal jury in the Eastern District of Michigan convicted three members of the Devils Diciples Motorcycle Gang today for their participation in various criminal acts, including Racketeering Conspiracy, methamphetamine production and trafficking, marijuana trafficking, subornation of perjury and obstruction of justice, and other federal offenses. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge David P. Gelios of the FBI’s Detroit Division made the announcement. "These defendants were responsible for violence and trafficking in methamphetamine in Macomb County and across the country,” said U.S. Attorney McQuade. “We are grateful for the work of the investigating agencies and the jury to bring them to justice." "The defendants in this case ran an illegal enterprise spanning multiple states, and specialized in violent and criminal activity," said Special Agent in Charge Gelios. "Today's convictions, coupled with prior judicial outcomes, have dramatically impacted the ability of this criminal organization to operate, and are the result of a strong partnership of our federal, state, and local law enforcement agencies and the U.S. Attorney's Office for the Eastern District of Michigan." Devils Diciples members Victor Carlos Castano, a/k/a “Vic,” of Warren, Michigan, Michael Kenneth Rich, a/k/a “Tatu,” of Anniston, Alabama and David Randy Drozdowski, aka “D,” 39 of Fair Haven, Michigan, were all found guilty by a jury of engaging in a RICO conspiracy. Both Castano and Rich were found guilty of suborning perjury, obstruction of justice and conspiracy to obstruct justice as well. Both Castano and Drozdowski were found guilty of engaging in a methamphetamine trafficking conspiracy, with Drozdowski being found guilty of a separate count of manufacturing methamphetamine, and Castano being found guilty of engaging in a marijuana trafficking conspiracy. Castano was found not guilty of possession of meth precursors, and Rich was found not guilty of involvement in the mariuana conspiracy. Sentencing hearings will be scheduled at a later date before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan. According to evidence presented at trial, the Devils Diciples (which the group intentionally misspell) is a motorcycle gang with its national headquarters in Clinton Township, Michigan. The Devils Diciples operated regional chapters in cities throughout Michigan, Alabama, Arizona, California, Illinois, Indiana, Ohio and elsewhere, and engaged in criminal activities for financial gain. Evidence presented at trial demonstrated that membership in the Devils Diciples is based in part on successful completion of a probationary period, followed by formal approval by one or more members or leaders. Members, commonly referred to as “full patched members,” are required to own Harley Davidson motorcycles and are required to follow orders from the gang’s leadership, including orders to assault, threaten and intimidate others, to transport and distribute drugs, to lie to law enforcement and to hide or destroy evidence. Members are also required to follow the Devils Diciples by-laws and attend regular meetings referred to as “church.” According to evidence presented at trial, various leaders were responsible for overall management of the activities of the other Devils Diciples members and chapters, including giving final approval to any activity generally affecting the gang as a whole. With other gang members, the leaders also participated directly in criminal activities both for financial gain on behalf of the Devils Diciples, and to protect the gang and its members. Additionally, the evidence showed that members of the gang possessed state and federal law enforcement manuals regarding outlaw motorcycle gangs marked “For Official Use Only” and “Law Enforcement Sensitive,” and numerous documents related to criminal matters involving members of the Devils Diciples, including police reports, search warrants, affidavits, indictments and witness interview transcripts. The evidence showed that the documents were used for the purposes of counter-surveillance and to identify suspected informants. For example, in August 2003, other gang members robbed, kidnapped and attempted to murder members of the gang’s Arizona Chapter for violating the gang’s rules. Inside the Arizona clubhouse, the victims were bound with duct tape and zip ties, and severely beaten with firearms, tasers, knives, and other weapons. The victims were then loaded into the bed of a pick-up truck, driven out into the desert, dumped into ravines, and left to die. The evidence showed that leaders helped to plan the beatings and that later congratulated one of the participants, telling him in a letter that the Devils Diciples were “all proud of you.” In 2006, Castano was charged in federal court in the Eastern District of Michigan with Marijuana trafficking, felon-in-possession of a firearm and possession of a firearm during a drug trafficking offense. The evidence demonstrated that at the February 2006 jury trial, Castano and Rich suborned the perjury of another Devils Diciple (“Gadget”) from Alabama and his girlfriend, by encouraging them to falsely claim that the firearm found in Castano’s possession was Gadget’s girlfriends and that Castano had no knowledge of the firearm. Separately, Rich threatened to get the Devil Diciple’s girlfriend’s 16 year old daughter addicted to drugs and thereafter prostitute her as part of the conspiracy to have the girlfriend testify falsely. Additionally, the evidence demonstrated that in 2012, at a bar in Chesterfield Township, Michigan, Drozdowski and another Devils Diciples member assaulted a perceived rival motorcycle gang member for being present in Devils Diciples territory. The victim was knocked unconscious and suffered multiple fractures to his face and jaw. Drozdowski and the other Devils Diciples member then ripped the leather vest off of the unconscious victim. In addition to the defendants convicted today, over 50 members and associates of the Devil’s Diciples have been convicted at trial or pleaded guilty to various crimes as result of this investigation. The investigation further resulted in the seizure of more than 60 firearms and more than 6,000 rounds of ammunition and the dismantling of eight methamphetamine manufacturing laboratories across the country. The case was investigated by the FBI, the Michigan State Police, the Macomb County Sheriff’s Office and the County of Macomb Enforcement Team (COMET), with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Office. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Eastern District of Michigan.Texas Man Who Smuggled Weapons to the Middle East Sentenced to PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Eyad Farah (42, Barrington, TX) to three years and one month in federal prison for conspiring to export firearms without a license, exporting firearms without a license, and smuggling firearms from the United States. The Court also ordered him to forfeit seven firearms that are traceable to the offenses. Farah pleaded guilty on September 22, 2015.
According to court documents, Farah was part of a network of individuals involved in smuggling firearms from the United States to the Middle East. The firearms were concealed in vehicles that had been purchased at used car auctions in Central Florida. The vehicles were then scheduled for export to Jordan.
Farah’s co-conspirator, Mahmoud Abdel-Ghani Mohammad Assaf, previously pleaded guilty to his role in the conspiracy and is currently awaiting sentencing. Yasser Ahmad Obeid, a defendant in a related case, has also pleaded guilty. In December 2014, he was sentenced to four years and three months in federal prison.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Defense Criminal Investigative Service, with assistance from the Department of Justice’s Office of International Affairs. It was prosecuted by Assistant United States Attorneys Josephine W. Thomas and Adam M. Saltzman.
Tennessee Probation Officer Indicted for Tax Fraud SchemeRead the Press Release
Memphis, TN – A State of Tennessee probation officer has been indicted on identity theft and wire fraud charges in relation to a tax fraud scheme that defrauded the government of more than $50,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
As the indictment alleges, between 2011 and 2012, LaShear Poole, 41, of Memphis, operated Five Star Tax Professionals, a tax preparation business. Poole, also a probation officer, used the business’ Professional Tax Identification Number (PTIN) and Electronic Filing Identification Number (EFIN) to file federal income tax returns.
Poole executed her scheme by unlawfully obtaining and possessing personal identifying information of U.S. taxpayers, which she used to electronically file federal income tax returns in their names. According to the indictment, Poole fraudulently prepared the tax returns of at least 13 individuals, making material false and fraudulent misrepresentations concerning the taxpayers’ employer and business information, income, and eligibility for education credits. The fraudulent tax returns were filed with the U.S. Internal Revenue Service (IRS) by means of wire communication. As a result of the scheme, Poole obtained more than $50,000 in tax refunds.
On Tuesday, December 15, 2015, Poole was indicted on 13 counts of wire fraud. She faces up to 20 years imprisonment and a fine of up to $1 million for each count.
Poole was also indicted on 13 counts of aggravated identity theft. She faces a mandatory sentence of two years (which would be served consecutive to any other term of imprisonment) and a fine of up to $250,000 for each count.
This case is being investigated by IRS-Criminal Investigation.
Assistant U.S. Attorney Christopher E. Cotten is representing the government in this case.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Tax Return Preparer Sentenced to 4 Year's Imprisonment for Filing False Tax Returns with the IRSRead the Press Release
A tax return preparer was sentenced to 48 months in prison, followed by three years of supervised release for filing a false claim with the Internal Revenue Service (IRS). The defendant was also ordered to pay $7,500.00 in restitution to the IRS and other victims.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, previously pled guilty to one count of filing a false claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.
According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County. The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals. Owanikin knowingly filed at least seventy-eight separate false 2008 United States income tax return and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming a tax refund of $7,500.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
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 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tampa Man Indicted for Pointing Laser at Tampa Police Department HelicopterRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Mark White (40, Tampa) with knowingly aiming a laser at an aircraft. If convicted, he faces a maximum penalty of five years in federal prison.
According to the indictment, on October 11, 2015, White knowingly aimed the beam of a laser pointer at a Tampa Police Department helicopter that was on aerial patrol.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
On February 14, 2012, President Barack Obama signed the FAA Modernization and Reform Act, which modernizes the nation's aviation system. This Act establishes a new criminal offense for aiming the beam of a laser pointer at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft. The statute was enacted in response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Rachel Jones.
Southern Illinois Man Sentenced on Healthcare Fraud-Related ChargeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that on December 15, 2015, Terry L. Waeltermann, Jr., 30, of Mulberry Grove and Pocahontas in Bond County, and Vandalia in Fayette County, Illinois, was sentenced in the U.S. District Court in Benton on the charge that he engaged in a scheme to steal from a health care program. The district court sentenced Waeltermann to two years of probation with the first four months to be served in home confinement. He is also ordered to pay $6,660.75 in restitution to the Home Services Program.
Court records indicate that Waeltermann (also known as Waelterman and Waeltermen) admitted that he had submitted false and fraudulent bills in relation to his alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Waeltermann admitted to falsely billing the program between April 14, 2013 and December 31, 2013, when he purportedly rendered personal assistant services to a customer when, in fact, he had not because he had moved away and forged the customer’s signature. As a result, Waeltermann improperly billed 573 hours of services and obtained $6,660.75 in payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General, the Illinois State Police - Medicaid Fraud Control Bureau, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Senate Confirms U.S. Attorney for the Eastern District of VirginiaRead the Press Release
ALEXANDRIA, Va. – Dana J. Boente was unanimously confirmed by the U.S. Senate yesterday as the U.S. Attorney for the Eastern District of Virginia (EDVA).
“I am honored by the confidence of the President, and Senators Mark Warner and Tim Kaine,” said Boente. “It is a privilege to serve the citizens of the Commonwealth of Virginia and United States.”
Boente, who has served as Acting U.S. Attorney for EDVA since September 2013, will serve a four year term as the chief law enforcement officer in the district, which has offices in Alexandria, Richmond, Norfolk and Newport News. From its early days and throughout its history, EDVA has been a national leader in investigating and aggressively prosecuting terrorism and espionage cases, in addition to battling economic espionage, piracy, theft of intellectual property, trafficking of weapons and narcotics, child exploitation, gangs and international criminal organizations, cybercrime, and public corruption.
Boente is a 31-year veteran of the Department of Justice (DOJ), joining DOJ in 1984 at the conclusion of a clerkship with the Honorable J. Waldo Ackerman of the U.S. District Court for the Central District of Illinois. From 1984 to 1999, Boente was a Trial Attorney with DOJ’s Tax Division, and in January 2000, Boente became an Assistant U.S. Attorney in the Fraud Unit of EDVA. In August 2005, Boente was detailed back to the Tax Division to serve as the Principal Deputy Assistant Attorney General, and returned to EDVA in May 2007, when he was selected as the First Assistant U.S. Attorney. In December 2012, Boente was selected to serve as the Acting U.S. Attorney for the Eastern District of Louisiana, and later returned to EDVA in September 2013. Boente was nominated by President Obama as U.S. Attorney for EDVA on Oct. 8, 2015.
Boente, of Carlinville, Illinois, received his J.D. magna cum laude in 1982 from St. Louis University School of Law, and his M.B.A in 1977 and B.S.B.A. cum laude in 1976, both from St. Louis University.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Providence Man Pleads Guilty to Sex Trafficking, Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Dujuan Harris, 35, of Providence, R.I., pleaded guilty in U.S. District Court in Providence on Tuesday to trafficking a 17-year-old girl from Texas to Rhode Island for the purpose of offering her for commercial sexual activity, and to being in possession of photographs of the minor victim in various stages of undress.
Appearing before U.S. District Court Chief Judge William E. Smith, Harris admitted to the court that after he befriended the victim on the Internet, he communicated with her via cell phone, text messages and Skype. Harris admitted to the court that in June 2015, he facilitated the victim’s travel to Rhode Island. Harris paid for the victim to travel to Boston where he met her and then brought her to Providence. Once in Providence, he repeatedly offered the victim for commercial sexual activity.
Harris pleaded guilty to one count each of sex trafficking of a child and possession of child pornography, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
According to information presented to the court, after befriending the victim on the Internet, Harris convinced the teenager to provide photographs to him in various stages of undress. Within a few days of her arrival in Providence, Harris took additional photographs of the victim in various stages of undress and posted some of the photographs of her in an ad on Backpage.com.
According to an investigation by the Providence Police Department and agents from Homeland Security Investigations, the response to the ad was immediate and numerous sexual encounters for a fee with the 17-year-old were arranged. All of the payments were turned over to Harris. When Harris told the young woman that he wanted to increase the number of sexual encounters as a way to increase the amount of money she was earning, the young woman told Harris she no longer wanted to participate. After discovering that the young woman had attempted to communicate with her family in Texas, Harris removed the battery from the victim’s cell phone and on several occasions refused to allow her to leave his Providence apartment.
On June 30, 2015, HSI agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in an apartment in Providence. Following the rescue of the victim, law enforcement discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone. Harris was arrested.
According to information presented to the court, since his arrest and detention at the Adult Correctional Institute, despite a no-contact order, Harris has contacted the victim more than 100 times.
Harris is scheduled to be sentenced by U.S. District Court Judge William E. Smith on March 4, 2016.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
Prosecutors from the Rhode Island Department of the Attorney General are assisting the United States Attorney’s Office in the prosecution of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Press AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian will conduct a press conference tomorrow (December 17, 2015) at 4 PM in the Syracuse U.S. Attorney’s Office. Joining him will be officials representing multiple law enforcement agencies. This announcement is in connection with United States v. Stephen M. Howells, II and United States v. Nicole F. Vaisey, who are scheduled to be sentenced at 1 pm and 1:30 pm. in Syracuse.
No further information will be provided prior to the press conference.
Thursday, December 17, 2015
4:00 PM
U.S. Attorney’s Office
100 S. Clinton Street
Syracuse, New York
9th Floor