Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 28 October 2015
Shawnee Man Indicted in Armed Robbery at Overland Park BankRead the Press Release
KANSAS CITY, KAN. - A Shawnee man was indicted Wednesday on federal charges of armed robbery at an Overland Park bank, U.S. Attorney Barry Grissom said.
Mamoudou M. Kaba, 19, Shawnee, Kan., was charged with one count of bank robbery and one count of brandishing a firearm during the robbery. The grand jury indictment alleges that on Sept. 22, 2015, Kaba brandished a Ruger 9 mm handgun when he robbed U.S. Bank, 9900 West 87th Street in Overland Park, Kan.
If convicted, he faces a maximum penalty of 25 years in federal prison and a fine up to $250,000 on the bank robbery charge, and a penalty of not less than seven years and a fine up to $250,000 on the firearm charge. The Overland Park Police Department and the FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting
OTHER GRAND JURY INDICTMENTS
Susan Wooten-Robb, 24, Kansas City, Mo., is charged with five counts of embezzlement and one count of wire fraud. The indictment alleges that while she worked for Community America Credit Union at 5601 W. 95th in Overland Park she embezzled more than $32,000. She made unauthorized debits from customers’ accounts and she removed cash from her teller drawer. To conceal the crime she entered false information in a currency transaction reporting system.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each embezzlement count, and a maximum penalty of 20 years and a fine u to $250,000 on the wire fraud count. The U.S. Secret Service investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Mikayla Kiefer, 56, Kansas City, Mo., is charged with one count of embezzling public money and one count of bank fraud. The indictment alleges she fraudulently received more than $10,000 in unemployment benefits while she was working for the Keebler Company in Kansas City, Kan. She received the money through a Citibank Visa debit card.
If convicted, she faces a maximum penalty of 10 years and a fine up to $250,000 on the embezzlement count, and a maximum penalty of 30 years and a fine up to $1 million on the wire fraud count. The Kansas Department of Labor and the U.S. Department of Labor – Office of Inspector General investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Wanda R. Ewing, 48, Kansas City, Mo., is charged with one count of embezzling public money, one count of bank fraud, one count of concealing property from creditors in a bankruptcy, one count of making a false statement under oath and one count of making a false declaration in a bankruptcy filing. The indictment alleges she fraudulently received more than $19,800 in unemployment benefits while she was working for the Keebler Company in Kansas City, Kan.
If convicted, she faces a maximum penalty of 10 years and a fine up to $250,000 on the embezzlement count, a maximum penalty of 30 years and a fine up to $1 million on the wire fraud count, and maximum penalty of five years and a fine up to $250,000 on each of the other counts. The Kansas Department of Labor and the U.S. Department of Labor – Office of Inspector General and the United States Trustees investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Gerren K. Love, 38, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 11, 2015, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Seller of “Miracle Mineral Solution” Sentenced to Prison for Marketing Toxic Chemical as a Miracle CureRead the Press Release
A Spokane, Washington, man was sentenced last night to more than four years in federal prison for selling industrial bleach as a miracle cure for numerous diseases and illnesses, including cancer, AIDS, malaria, hepatitis, Lyme disease, asthma and the common cold, the Department of Justice announced today.
Louis Daniel Smith, 45, was sentenced by Chief Judge Rosanna Malouf Peterson of the Eastern District of Washington to serve 51 months in prison to be followed by three years of supervised release.
After a seven-day trial in June, a jury convicted Smith of one count of conspiracy to commit multiple crimes, three counts of introducing misbranded drugs into interstate commerce with intent to defraud or mislead and one count of fraudulently smuggling merchandise into the United States. Evidence at trial showed that Smith operated a business called “Project GreenLife” (PGL) from 2007 to 2011. PGL sold a product called “Miracle Mineral Supplement,” or MMS, over the Internet. MMS is a mixture of sodium chlorite and water. Sodium chlorite is an industrial chemical used as a pesticide, for hydraulic fracturing and for wastewater treatment. Sodium chlorite cannot be sold for human consumption, and suppliers of the chemical include a warning sheet stating that it can cause potentially fatal side effects if swallowed.
“Today’s sentence is a just result reflecting the defendant’s role as the leader of a business that sold dangerous chemicals as miracle cures to sick people and their desperate loved ones,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Consumers have the right to expect that the medicines that they purchase are safe and effective.”
The government presented evidence that Smith instructed consumers to combine MMS with citric acid to create chlorine dioxide, add water and drink the resulting mixture. Chlorine dioxide is a potent agent used to bleach textiles, among other industrial applications. Chlorine dioxide is a severe respiratory and eye irritant that can cause nausea, diarrhea and dehydration. Smith provided instructions for use of his product including that nausea, diarrhea and vomiting were all signs that the miracle cure was working. The instructions also stated that despite a risk of possible brain damage, the product might still be appropriate for pregnant women or infants who were seriously ill.
According to the evidence presented at trial, Smith created phony “water purification” and “wastewater treatment” businesses in order to obtain sodium chlorite and ship his MMS without being detected by the Food and Drug Administration (FDA) or U.S. Customs and Border Protection. The government also presented evidence that Smith hid evidence from FDA inspectors and destroyed evidence while law enforcement agents were executing search warrants.
Before trial, three of Smith’s alleged co-conspirators, Chris Olson, Tammy Olson and Karis DeLong, Smith’s wife, pleaded guilty to introducing misbranded drugs into interstate commerce. Chris Olson, along with alleged co-conspirators Matthew Darjanny and Joseph Lachnit, testified at trial that Smith was the leader of PGL.
The case was investigated by agents of the FDA’s Office of Criminal Investigations and the U.S. Postal Inspection Service. The case was prosecuted by Christopher E. Parisi and Timothy T. Finley of the Civil Division’s Consumer Protection Branch in Washington, D.C.
San Juan County Resident Charged with Violating the Federal Firearms Laws in AlbuquerqueRead the Press Release
ALBUQUERQUE – Jose Velasquez, 29, a resident of San Juan County, N.M., was arraigned this morning in federal court on an indictment charging him with being a felon in possession of a firearm and ammunition. Velasquez entered a not guilty plea and remains in federal custody pending trial.
The federal charge against Velasquez was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Velasquez was arrested on state charges on Aug. 4, 2015, and subsequently was charged in a federal criminal complaint on Aug. 17, 2015, with being a felon in possession of a firearm and ammunition. According to the criminal complaint, Velasquez was arrested on state charges by APD officers after they observed him walking near the area of Sunshine Terrace SE and University Blvd. SE in Albuquerque while allegedly armed with a handgun. According to court filings, the officers allegedly found a semiautomatic pistol, ammunition and a small quantity of heroin in Velasquez’s pants pocket.
Thereafter, Velasquez was charged in an indictment on Sept. 10, 2015, with being a felon in possession of a firearm and ammunition on Aug. 4, 2015, in Bernalillo County, N.M. According to the indictment, Velasquez was prohibited from possessing firearms or ammunition because he previously had been convicted of armed robbery with a deadly weapon and aggravated battery on a peace officer in state court in San Juan County, N.M.
Velasquez was held in state custody on related state charges until he was transferred to federal custody to face the charges in the federal indictment. The state charges have been dismissed in favor of federal prosecution. If convicted of the charge in the indictment, Velasquez faces a statutory maximum penalty of ten years in prison. Charges in complaints and indictments are merely accusations and criminal defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. 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 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.
San Benito Man Sentenced for Trafficking More than 15,000 Kilograms of MarijuanaRead the Press Release
BROWNSVILLE, Texas – A 37-year-old U.S. citizen from San Benito has been handed a significant sentence following his convictions stemming from a multi-count indictment related to a conspiracy to possess with Intent to distribute marijuana, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Mark Dawson of Homeland Security Investigations (HSI) - San Antonio. Hervey Roel pleaded guilty in August 2014.
Today, U.S. District Judge Andrew S. Hanen ordered he serve a sentence of 300 months in federal prison to be immediately followed by five years of supervised release. The sentence reflected an enhancement as the court found he was a leader/organizer in the conspiracy, he maintained certain premises for distributing controlled substances, possessed firearms during the drug conspiracy and committed the offense as part of a pattern of criminal conduct engaged in as a livelihood. The court further ordered a money judgment in the amount of $9 million and forfeited any interest Roel may have in a ranch in Olmito and a residence in Brownsville.
The charges arose from the apprehension of Roel and others at different locations in San Benito and Olmito after agents seized 1,785.5 kilograms of marijuana in a tractor-trailer.
“The court's sentence appropriately punished Roel for his being the head of large scale narcotics organization in south Texas, that negatively impacted the Rio Grande Valley,” said Dawson. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.”
Evidence presented at the plea hearing and sentencing proved that on June 8, 2013, HSI agents conducted surveillance at a warehouse located in Brownsville, where a tractor-trailer was then driven to a gas station in Olmito. There, the driver - Manuel Torres-Hernandez, 32, met with Lauro De La Fuente Jr., 25, and Ricardo Ochoa, 33. Agents observed Roel arrive separately and also meet with De La Fuente and Ochoa. Roel left and was followed to a ranch nearby. Torres-Hernandez left the gas station driving on Highway 77 and was stopped in San Benito where the mariJuana was discovered. De La Fuente and Ochoa were apprehended along with Victor Silva, 34, and Martin Enrique Rodriguez 25, when they drove to the scene. The individuals appeared to be conducting counter-surveillance looking for law enforcement and agents found a drug ledger within their vehicle.
Further investigation by HSI agents revealed Roel to be the coordinator of numerous drug loads to Houston and other areas north since 2011. Roel would hire individuals to package and rewrap marijuana for transport.
Ochoa was previously sentenced to a term of 125 months in prison, while De La Fuente was ordered to serve a 101-month term of imprisonment. Torres-Hernandez, Silva and Rodriguez received respective sentences of 47, 58 and 57 months in prison. All had also pleaded guilty and resided in Brownsville.
Roel will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by HSI. Assistant U.S. Attorney Oscar Ponce is prosecuting the case.
Rocky Mount Man Found Guilty of Heroin Trafficking ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that a jury convicted WILLIAM ELDRIDGE ASKEW, III, of Rocky Mount, North Carolina, of conspiracy to possess with intent to distribute 100 grams or more of heroin and aiding and abetting the possession with intent to distribute heroin. The jury returned its verdict following a trial in federal court before United States Chief District Judge James C. Dever, III.
Following an investigation into suspected heroin trafficking organizations in Rocky Mount, North Carolina; law enforcement agents learned that ASKEW and a co-defendant, MUTAR ALI BROCK, would be transporting 100 grams or more of heroin into the City of Rocky Mount from Detroit, Michigan for distribution in and around Rocky Mount and Wilson, North Carolina. Rocky Mount Police intercepted the vehicle as it entered Rocky Mount. ASKEW was driving the vehicle when it was stopped by law enforcement personnel. A search of the vehicle led to the seizure of heroin, marijuana and drug paraphernalia.
BROCK previously pled guilty to conspiracy to distribute and possess with the intent to distribute heroin. At sentencing, ASKEW faces a minimum of five years and up to forty years imprisonment.
The investigation and arrests were handled by the Rocky Mount Police Department with the assistance of the United States Drug Enforcement Administration and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The North Carolina Bureau of Investigations, Forensics Lab provided forensic assistance. Assistant U.S. Attorney Edward Gray and Special Assistant U.S. Attorney Patrick Weede represented the government.
R.I. Businessman Sentenced in Multi-million Dollar Tax Refund SchemeRead the Press Release
PROVIDENCE, R.I. – Anthony DelFarno, 53, of East Greenwich, R.I., was sentenced in U.S. District Court in Providence today to 65 months in federal prison for filing fifty-eight fraudulent personal and corporate tax returns between 2008 and 2011, some containing stolen personal identifying information of family members and others, seeking approximately $3.5 million dollars in tax refunds.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered DelFarno to serve 3 years of supervised release upon completion of his prison sentence and to pay restitution to the government in the amount of $1.4 million. DelFarno pleaded guilty on June 16, 2015, to eleven counts of mail fraud, twenty-eight counts of theft of government funds and three counts of aggravated identity theft.
Delfarno’s sentence is announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
At the time of his guilty plea, DelFarno admitted to the court that he filed twenty-eight false individual income tax returns in his own name, and in the names of several family members, including five of his children, and a girlfriend, without their knowledge, seeking refunds totaling $1.1 million dollars. Approximately $400,000 was paid to the defendant.
Additionally, DelFarno admitted to the court that he filed thirty fraudulent corporate income tax returns, for which he claimed refunds of $2.4 million dollars and was paid approximately $1 million dollars. DelFarno admitted to the court that many of the corporations he formed were formed in order to execute the tax fraud scheme.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by the United States Attorney’s Office, IRS Criminal Investigation and Rhode Island State Police.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Postal Service Employee Arrested, Charged with Stealing from MailsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sheila Fullmer, 60, of Caledonia, NY, was arrested and charged by criminal complaint with theft of mail. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Fullmer was employed as a mail clerk at the Rochester Processing and Distribution Center, assigned to the manual mail sorting area. On October 20 and 21, law enforcement agents observed the defendant stealing gift cards and other items. Fullmer was also seen using a gift card that had been reported missing by its sender.
Fullmer made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and was released pending further proceedings on December 7, 2015, at 9:00 am.
The criminal complaint is the result of an investigation by Special Agents of the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Payroll Company Consultant Charged in $350K Fraud SchemeRead the Press Release
PITTSBURGH – A resident of Harrisburg, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, damaging a computer and engaging in an unlawful monetary transaction, United States Attorney David J. Hickton announced today.
The thirteen-count indictment, returned on Oct. 27, named William Simon Sullivan, Jr., 42, of Harrisburg, Pennsylvania, as the sole defendant.
According to the indictment, Sullivan worked as a consultant for a payroll services company located in Pittsburgh, Pennsylvania that provides clients with various financial services including payroll and tax escrow processing services. From January 12, 2013, and continuing to January 24, 2014, Sullivan executed a scheme to defraud the payroll company and its clients. Using his position as a consultant to the payroll company and his remote access to the payroll company’s computer network, Sullivan fraudulently altered the payroll company’s daily computer files and caused over $350,000 to be transferred via ACH transfers from bank accounts of the payroll company and its clients to Sullivan’s personal bank accounts, without the knowledge, approval or authorization of the payroll company or its clients. Sullivan also engaged in an unlawful monetary transaction when he withdrew funds in the amount of $21,615.53 from his bank account and purchased a 2014 Jeep Grand Cherokee.
Sullivan faces a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the seven counts charging him with wire fraud; a maximum sentence of ten years imprisonment and a fine of $250,000 for each of the five counts charging him with damaging a computer; and a maximum sentence of ten years imprisonment and a fine of $250,000 for the one count charging him with engaging in a monetary transaction. 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 Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Operator of Multi-Million Dollar Ponzi Scheme Sentenced to More Than Nine Years in Prison on Securities Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – Daniel H. Williford, 57, of Fleetwood, N.C. was sentenced on Tuesday, October 27, 2015 to 110 months in prison for operating a Ponzi scheme that defrauded nearly 100 investors, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, U.S. District Judge Max O. Cogburn, Jr. ordered Williford to serve three years of supervised release and to pay $17,915,013.35 as restitution.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.
According to filed court documents and statements made in court, from January 2007 through July 2013, Williford operated a fraudulent investment scheme, through which he obtained more than $44 million from over 200 investors in Charlotte and elsewhere, causing nearly $18 million in losses to more than 100 investors by the time the scheme collapsed. Court records show that Williford lied to his victims, promising their money would be invested in wireless internet equipment, internet towers, and other facilities and companies. According to court records, rather than investing the victims’ money as promised, Williford used the majority of the funds to run a Ponzi-style scheme and used a portion to fund his personal lifestyle. Court records show that over course of the fraud, Williford invested only $7.7 million of the victims’ money and used approximately $32 million to pay some of his victims’ supposed “profits” on their investments and to cover personal expenses.
Court records also show that even after Williford ceased having any legitimate business operations, he continued to solicit money from investors for several years. One victim told the court yesterday evening that he was Williford’s co-pilot in a commercial airliner, and that Williford had literally defrauded him on the runway before takeoff. Other victims spoke about being unable to retire, declaring bankruptcy, losing children’s college savings, and one victim told the court he would have to sell his businesses, jeopardizing the jobs of over 50 employees as a result of the fraud. Williford pleaded guilty to securities fraud in July 2014.
Judge Cogburn said that Williford’s lengthy sentence was intended to “frighten those who will think about doing this, to make them think twice about stealing other people’s money” and to make such people realize “that going to prison for that long is not worth it.” Judge Cogburn also noted that the victims “will suffer a long time,” and pointed to the “callousness and huge period of time in which [Williford] took these people’s money” as a basis for the sentence.
The FBI investigated the case. Assistant U.S. Attorney Dan Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
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’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.”
Oklahoma Man Pleads Guilty to AssaultRead the Press Release
POCATELLO – Wesley Ahtone, 20, of Marietta, Oklahoma, pleaded guilty today in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Ahtone was indicted by a federal grand jury on September 23, 2014.
According to the plea agreement, Ahtone was visiting friends at a residence on the Fort Hall Indian Reservation. He became involved in a fight with the victim. After the fight had ended, Ahtone went to the kitchen and found a knife which he used to stab the victim four times in the back. The victim underwent surgery at Portneuf Medical Center to save his life. The victim has since recovered.
The charge of assault with a dangerous weapon is punishable by up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000.
Ahtone is scheduled to be sentenced on January 20, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Oklahoma City Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that AMANDA LEEANN TIGER, age 26, of Oklahoma City, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both.
The Indictment alleged that on or September 1, 2015, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the Drug Enforcement Administration.
The Honorable Steven p. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Ohio Man Sentenced for Mail and Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HOWARD GREGOR, age 52, a resident of Attica, Ohio, was sentenced today after previously pleading guilty to a two-count Bill of Information charging him with mail and wire fraud.
U.S. District Judge Kurt Engelhardt sentenced GREGOR to serve 12 months plus one day in prison, followed by 3 years of supervised release. Additionally GREGOR was ordered to pay a $5,000 fine, a special assessment of $200, and restitution in the amount of $293,972.
According to court documents, from November 3, 2008, through on or about April 19, 2013, GREGOR worked for Company A, a New Orleans based company that manufactures conveyor belts for use in food processing and packaging facilities. Company A employed GREGOR as an account manager. His sales work required him to travel frequently and incur business-related expenses. Company A had a policy that allowed account managers to submit expense reports for reimbursement of actual out-of-pocket business expenses. Rather than submitting expense reports for actual expenses, GREGOR devised a scheme and artifice to defraud Company A by creating inflated and fictitious items to put on his expense report to cause Company A to pay him for expenses that he did not actually incur. GREGOR submitted these expense reports via U.S. mail and electronic mail. In all, GREGOR caused Company A to reimburse him for nearly $300,000 of expenses that he did not actually incur, causing a loss to the company.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the United States Postal Inspection Service in investigating this matter. Assistant U. S. Attorney Sharan Lieberman was in charge of the prosecution.
Monroe County Man Sentenced to 24 Months in Prison for Federal Methamphetamine Trafficking ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today to 24 months’ imprisonment by Senior United States District Judge Edwin M. Kosik, for his role in a methamphetamine-trafficking ring.
According to United States Attorney Peter Smith, Anthony Ianuale, age 43, of Sciota, Monroe County, pleaded guilty in July 2015 to the charge of aiding and abetting the distribution of methamphetamine.
Ianuale was one of seven individuals indicted by a federal grand jury in April 2014 after an investigation conducted jointly by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain and the Stroud Regional Police Departments regarding methamphetamine trafficking in Monroe County.
Previously, Emmanuel Tucker, age 39, of Stroudsburg, was sentenced to 41 months in prison for participating in the same methamphetamine trafficking conspiracy. In addition, defendants Scott Borushak, age 51, of Stroudsburg, and Fred Baumgartner, age 34, of Kresgeville, have entered guilty pleas and are awaiting sentencing. The charges against the remaining defendants are currently pending.
In addition to the prison term, Senior Judge Kosik also ordered that Ianuale be supervised by a probation officer for two years following his release from prison.
The cases are being prosecuted by Assistant United States Attorney Robert J. O’Hara.
# # #
Mexican national pleads guilty to reentering the United States illegallyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican national pleaded guilty Monday to re-entering the United States after removal as an aggravated felon.
Jose Juan Rodriguez-Guarda, 32, of Mexico, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of re-entry of a removed alien. According to evidence presented at the guilty plea, Rodriguez-Guarda had illegally re-entered the United States multiple times since 2009 after being removed. In June 2012, Rodriguez-Guarda was removed as an aggravated felon from the United States after being convicted of attempted human smuggling in Arizona.
Rodriguez-Guarda was arrested in Virginia on January 25, 2013, two days after he had kidnapped his girlfriend at knife point in Bossier Parish and took her to Virginia where he already had their 7-year-old daughter. The defendant pleaded guilty to simple kidnapping in Bossier Parish District Court on June 22, 2015.
Rodriguez-Guarda faces a maximum of 20 years in prison, one to three years of supervised release and a $250,000 fine. A sentencing date of February 19, 2016 was set.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara is prosecuting the case.
Mexican Citizen Charged with Illegal ReentryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Immigration and Customs Enforcements (ICE) Enforcement and Removal Operations (ERO) announced that Jorge Ayala-Spino, age 35, was charged yesterday with illegal reentry in an Indictment by a federal grand jury in Scranton.
According to U.S. Attorney Peter Smith, Ayala-Spino, a Mexican citizen, previously arrested and deported from the United States in 2008, reentered the United States unlawfully and was found in Lackawanna County as the result of an investigation and arrest by the Scranton Police Department in July 2015.
The investigation was conducted by U.S. Immigration and Customs Enforcements (ICE) Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Evan Gotlob.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 2 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Metairie Man Pleads Guilty to Receiving Images and Videos Depicting the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANDREW HUTCHINSON, age, 24, of New Orleans, pled guilty today to a one-count Bill of Information for crimes involving the sexual exploitation of children. Specifically, HUTCHINSON pled guilty to receiving and attempting to receive sexually explicit images of children.
According to court documents, HUTCHINSON used a mobile cellular phone chat application to converse with a twelve-year-old boy in Seattle, Washington, between July 24, 2014, and July 27, 2014. Knowing that the boy was only twelve, HUTCHINSON requested and received approximately fifteen sexually explicit images of the boy via the messaging application. In exchange, HUTCHINSON provided the boy sexually explicit images of minor females as young as approximately five years old. HUTCHINSON also provided the boy with a link to an online cloud storage account that contained approximately 1766 images and 19 videos depicting minor females as young as approximately eighteen months old engaging in sexually explicit conduct.
HUTCHINSON faces a mandatory minimum term of imprisonment of five years and a maximum penalty of twenty years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. U.S. District Judge Ivan L.R. Lemelle set sentencing for February 3, 2016.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Jordan Ginsberg is in charge of the prosecution.
Member of Young Melph Mafia Sentenced to 8 Years for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DEONTRE HILLS, age 22, of New Orleans, was sentenced today for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”
U.S. District Judge Kurt D. Engelhardt sentenced HILLS to 96 months imprisonment to run consecutively to a 10 years state sentence, to be followed by five years of supervised release.
HILLS was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, HILLS, a founding member of the YMM, and other YMM associates participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
“This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite. “These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
Media advisoryRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that effective immediately, Assistant United States Attorney Clint Carte will be the primary contact for media inquiries concerning the U.S. Attorney’s Office for the Southern District of West Virginia. AUSA Carte will serve as the Public Information Officer, in addition to his duties as a criminal Assistant United States Attorney in the Southern District’s Charleston Office.
- Follow us on Twitter: SDWVNews
Man Who Paid $290K in Bribes to Former West Haven Housing Authority Executive Director is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEASAR ANQUILLARE, 88, of Orange, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to two years of probation for paying nearly $300,000 in bribes to the former Executive Director of the West Haven Housing Authority in exchange for government contracts and business. ANQUILLARE also was ordered to pay a $100,000 fine and $291,033.91 in restitution.
According to court documents and statements made in court, Michael Siwek was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As parties of his duties, Siwek had substantial discretion over awarding WHHA business and contracts. Between approximately February 2007 and February 2012, Siwek received approximately $1.5 million in bribes from individuals, including ANQUILLARE, in order to award them business with WHHA and the entities that the housing authority controlled.
Siwek received approximately $290,000 from ANQUILLARE in connection with accounting services that ANQUILLARE’s firm provided to the WHHA.
ANQUILLARE has paid restitution in the amount of $291,033.91.
On April 22, 2015, ANQUILLARE pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds.
On September 4, 2014, Siwek pleaded guilty to related charges and awaits sentencing.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Man Sentenced to Five Months Prison for Re-Entering the United States from MexicoRead the Press Release
A man who illegally re-entered the country was sentenced on October 20, 2015, to five months in federal prison.
Juan Barajas-Silvia, age 30, from Mexico, received the prison term after an August 12, 2015, guilty plea to one count of illegal re-entry of a removed alien.
At the guilty plea, Barajas-Silvia admitted he illegally re-entered the United States after being deported on June 13, 2008. Barajas-Silvia came to the attention of Immigration and Customs Enforcement (ICE) officials on June 19, 2015, when he was arrested in Sioux County, Iowa for harassment.
Barajas-Silvia was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Barajas-Silvia was sentenced to five months imprisonment. He must serve a 1-year term of supervised release. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Immigration and Customs Enforcement (ICE) and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-4045.
Follow us on Twitter @USAO_NDIA.
Man Pleads Guilty in Connection with Murder in Chautauqua CountyRead 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 Charles Sanford, 31, pleaded guilty to being a felon in possession of a firearm before Senior U.S. District Judge William M. Skretny. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000, or both.
"This case began with senseless and cowardly actions which took the life of one who gave so much to our community,” said U.S. Attorney Hochul. “With today's conviction, both defendants responsible for this conduct will now face a very long time in prison. While we unfortunately cannot bring back a woman whose life was dedicated to bringing beauty to the world through music, at the very least we can say we utilized our justice system as a form of deep respect and appreciation for Mary's life.”
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that Sanford and co-defendant Jonathan Conklin robbed Mary Whitaker inside her Sherman, NY home on August 20, 2014. At the time, Sanford and Conklin had been living outdoors for several days after a friend drove them from Erie, Pennsylvania to the Sherman, NY area.
At approximately 7:30 a.m., the two men, armed with weapons including a knife and a .22 caliber rifle, approached the victim’s home and Sanford rang the doorbell. Mary Whitaker answered the door and Sanford asked to use her phone, claiming that his car had run out of gas. Whitaker went into the house to get her cell phone for Sanford to use. When she returned, she gave the cell phone to Sanford who proceeded to use it. As Sanford did, Conklin came up from behind and told Whitaker this was a robbery. After she screamed, Conklin shot and killed her with the .22 caliber rifle.
Conklin and Sanford then stole the victim’s vehicle and drove it to Erie, Pennsylvania where they were arrested on August 22, 2014.
Jonathan Conklin has been convicted of carjacking and is scheduled to be sentenced on March 9, 2016. Charles Sanford will be sentenced on March 9, 2016 at 3:00 p.m.
The plea is the culmination of an investigation on the part of the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Chautauqua County District Attorney’s Office, under the direction of District Attorney David W. Foley, the Federal Bureau of Investigation, and the City of Erie (Pennsylvania) Police Department, under the direction of Chief Randy M. Bowers.Lynchburg Man Sentenced on Child Pornography ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A former Colonel with the Virginia National Guard, who pled guilty in July to a federal child pornography charge, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg.
Gary Williamson, 54, of Lynchburg, Va., previously waived his right to be indicted and pled guilty to a one-count Information charging him with knowingly receiving and distributing child pornography. This morning in District Court, Williamson was sentenced to 120 months of federal incarceration. The defendant was also ordered to pay $5,000 in restitution and will be required to register as a sex offender upon his release from prison.
“It is a sad day for all when we learn that a man like Mr. Williamson, who has had a distinguished military service career, has engaged in serious violations of federal criminal law by possessing and distributing child pornography,” United States Attorney Anthony P. Giorno said today. “Crimes like those committed by Mr. Williamson have the effect of re-victimizing the children in these images, and those who engage in such conduct will be held accountable in a court of law.”
"Every time a person shares an image of child pornography, the subject of that image is victimized all over again,” said Clark E. Settles, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., which oversees HSI Roanoke. “Let this sentence serve as a warning to other child predators who trade images of child pornography. You cannot hide behind your computer. We will find you, investigate you, and ensure you are prosecuted to the fullest extent of the law.”
According to evidence presented at the defendant’s guilty plea hearing by Assistant United States Attorney Daniel Bubar, the Roanoke office of Homeland Security Investigations became aware of Williamson’s distribution of child pornography on October 14, 2014, through information gathered during an unrelated investigation of a website located outside the United States. In December 2014, Williamson was interviewed at his home and a search warrant was executed for various computers and media storage devices. During this search, Williamson admitted to controlling an email account and a username for the subject website that have been used to trade suspected child pornography. Subsequent forensic analysis of the defendant’s computer and other media storage devices showed he possessed more than 2,000 images of child pornography, many of which he distributed via the subject website bulletin boards and email.
The investigation of the case was conducted by the HSI Roanoke Office, the Campbell County Sheriff’s Office, the Southern Virginia Internet Crimes Against Children Task Force and the Virginia Attorney General’s Office. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
Louisiana Dredging Company Pleads Guilty to Criminal Offense Relating to Death of Biloxi MarinerRead the Press Release
Gulfport, Miss - A Louisiana dredging corporation—C.F. Bean, LLC ("Bean")—pled guilty today to a criminal offense relating to the death of Biloxi mariner Mark Barhanovich, announced U.S. Attorney Gregory K. Davis and Rear Admiral David R. Callahan, Commander of the Eighth Coast Guard District.
Bean admitted improperly marking its dredge operation near Deer Island, in violation of the applicable regulations designed to warn boaters.
The felony information charged that the corporation violated federal regulations that required the dredge barge Bean 20 to be marked to alert mariners that it was engaged in dredge operations and for the company to mark its dredge pipeline with appropriate lights at night and in periods of low visibility. The dredge operation near Deer Island was associated with the port restoration project at the Mississippi State Port at Gulfport, which involved dredging and transporting dredge spoil materials to a site at Deer Island near Biloxi, Mississippi. The dredge barge Bean 20 was situated near Deer Island and received dredge spoils that were then pumped to the island through a dredge pipeline. Despite the requirements for properly marking and lighting the Bean 20 and its dredge pipeline, Bean, through its agents and employees, failed to do so. Bean, through its agents and employees, was aware of repeated incidents when mariners struck the dredge pipeline, culminating in the fatal accident when Mark Barhanovich’s boatstruck the pipeline on September 16, 2012.
Bean admitted that its negligence, violation of law, and inattention to duties resulted in the death of Barhanovich, which is the basis for the charged felony violation of the federal criminal law governing misconduct or neglect of ship officers. The statute is also commonly referred to as the Seaman’s Manslaughter act. A corporation convicted of this offense is subject to a penalty of not more than $500,000 per count.
The corporation agreed and was ordered to pay the maximum penalty of $500,000. The corporation was placed on five years of probation and also was ordered to pay a mandatory special assessment of $400.
"Boaters depend on dredging companies to properly follow rules for marking their dredge operations, so that mariners can avoid hazards that can prove highly dangerous or even fatal, as was the sad situation here," said U.S. Attorney Davis. "It is hard to understand how an experienced maritime business like this could have failed in its duty at such a high cost."
"As a lifesaving organization, the Coast Guard is saddened by any loss of life. Ourcondolences go out to the family of those involved in this tragic event. As an organization, we will continue to monitor our waterways of responsibility and to work closely with the U.S. Attorney's Office to support their efforts in holding offenders criminally accountable," said Eighth Coast Guard District Commander, Rear Admiral David R. Callahan.
Bean entered its plea before United States District Judge Sul Ozerden. U.S. Attorney Davis praised the efforts of the U.S. Coast Guard Investigative Service, the U.S. Coast Guard Sector Mobile, and the Mississippi Department of Marine Resources for their diligent work in the investigation of this matter. Assistant United States Attorney Gaines Cleveland was the prosecutor in charge of the case.
Live Oak Police Sergeant Arrested and Charged in Federal Court with Possession of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today that Kyle Adam Kirby (35, Live Oak) has been arrested and charged with possession of child pornography. He faces a maximum penalty of 10 years in federal prison, and a potential life term of supervision. Kirby was arrested today, without incident, at the Live Oak Police Department. His detention hearing is scheduled for October 30, 2015.
According to the criminal complaint, on October 22, 2015, FBI agents and other law enforcement officers executed a federal search warrant at Kirby’s residence, as the result of an undercover online child pornography investigation. No computers were recovered from the home. That same morning, the Live Oak police chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of the patrol car computer used by Kirby revealed that it contained at least 87 thumbnail images in a “Downloads” folder that either depicted children engaged in sexually explicit conduct or that had titles indicative of child pornography.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Leader of Meth for Mail Ring, "Superman", Sentenced to 14 YearsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a drug dealer and leader of a mail theft ring in Anchorage was sentenced on 16 counts of fraud, drug distribution, and being a felon in possession of a firearm.
Jonathan Ortiz Escalante, aka “Superman,” 45, of Anchorage, Alaska, was sentenced today by Chief United States District Court Judge Ralph R. Beistline to 14 years in prison.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Escalante aka “Superman” was the leader of a mail theft ring in Anchorage. Escalante solicited addicts and homeless people to steal mail and break into vehicles to get checks and identification cards that he then altered and used to cash stolen and counterfeit checks. Escalante also used stolen credit cards and forged counterfeit securities, as well as stolen vehicles to carry out his scheme. Escalante distributed methamphetamine to addicts in exchange for stolen mail and cashing stolen checks. Escalante sold large quantities of methamphetamine in Anchorage and possessed and fired two different Ruger 9mm pistols during the course of his scheme. Escalante was prohibited from possessing a gun because of a prior felony conviction.
Judge Beistline stated that the 14-year sentence was appropriate because the defendant had carried out a “decade of criminal activity” and the defendant’s drugs, guns and fraud were a “danger to the community.”
Four of Escalante’s co-conspirators that he recruited to steal mail and cash stolen checks have been convicted and sentenced including Neasha Moore, John Brittain, Ralph Oliver and Denae Sullivan.
Ms. Loeffler commends the U.S. Postal Inspection Service, the ATF, the FBI Safe Streets Task Force and APD for the investigation of this case.
Las Cruces Resident Sentenced to Five Years in Federal Prison for Heroin Trafficking and Firearms Charges in Doña Ana CountyRead the Press Release
ALBUQUERQUE – Jorge Carillo, 34, of Las Cruces N.M., was sentenced today in Las Cruces federal court to five years in federal prison followed by four years of supervised release for heroin trafficking and firearms charges in connection with five cases filed in 2013, as the result of a multi-agency investigation into drug trafficking in Doña Ana County, N.M.
Carillo, together with a Mexican national and 19 other Las Cruces residents, were charged with heroin trafficking offenses in five indictments filed in Nov. 2013, as a result of a multi-agency investigation led by the FBI that targeted the heroin trafficking activities of Jovita Belmonte-Gonzalez in Doña Ana County. Belmonte-Gonzales, 46, a Mexican national from Ciudad Juarez, Chihuahua, Mexico, was named as the lead defendant in four of five indictments which charged her with supplying heroin to five drug trafficking organizations that distributed heroin in Doña Ana County.
The lead defendant, Belmonte-Gonzalez, pled guilty to heroin trafficking charges in four of the five cases in June 2014, and admitted conducting frequent heroin transactions with her co-defendants between June 2013 and Oct. 2013. Court records reflect that Belmonte-Gonzalez typically negotiated heroin sales by telephone from Juarez and her co-defendants traveled from Doña Ana County to Juarez where they purchased the heroin from her and later distributed the drugs in Doña Ana County. Belmonte-Gonzales faces a mandatory minimum of ten years in prison and a maximum of life in prison, and will be deported after she completes her prison sentence. She remains in federal custody pending her sentencing hearing, which has yet to be scheduled.
On Oct. 7, 2014, Carillo pled guilty to conspiracy, being a felon in possession of a firearm on June 27, 2013, in Doña Ana County and being a felon in possession of a firearm on Nov. 15, 2013, in Doña Ana County. Carillo was prohibited from possessing firearms or ammunition because he previously had been convicted of residential burglary and unlawful taking of a motor vehicle.
All 21 of the defendants arrested as a result of the investigation have entered guilty pleas. Eighteen defendants have been sentenced, and the rest are currently awaiting sentencing hearings.
These cases are being prosecuted by Assistant U.S. Attorney E. Garreth Winstead, III, of the U.S. Attorney’s Las Cruces Branch Office. The investigation leading to the charges in the four cases was led by the Las Cruces office of the FBI in collaboration with U.S. Customs and Border Protection, the U.S. Border Patrol, the Las Cruces office of the DEA, the U.S. Marshals Service, the Las Cruces Police Department and the Doña Ana County Sheriff’s Office.
The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Lancaster County, Pennsylvania, Man Sentenced to 30 Months in Prison for Interstate Burglary SchemeRead the Press Release
TRENTON, N.J. – A Lancaster County, Pennsylvania, man was sentenced today to 30 months in prison for his role in transporting goods stolen through a string of commercial burglaries throughout northern and southern New Jersey, U.S. Attorney Paul J. Fishman announced.
Eliezer Medina, 37, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiracy to transport stolen goods in interstate commerce. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From November 2013 through August 2014, Medina conspired with his brother, José Medina, 39, to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and then transport the stolen money across state lines. He admitted burglarizing at least three stores in Paramus, New Jersey, and Pennsauken, New Jersey, and to stealing approximately $625,000. The burglaries followed the same general pattern, including advance surveillance, disabling of the alarm systems and the use of pry-bars and vertical cuts to gain access to the stores’ safes.
In addition to the prison term, Judge Cooper sentenced Medina to two years of supervised release. He must also forfeit $625,000.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the FBI in Philadelphia Branch, under the direction of Special Agent in Charge William F. Sweeney Jr., with the investigation leading to today’s sentencing. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the General Crimes Unit in Newark.
José Medina remains charged by complaint with conspiracy to transport stolen goods in interstate commerce. The charges and allegations in the complaint are merely accusations, and the defendant remains innocent unless and until proven guilty.
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Lakewood Man Sentenced for Operating A Marijuana Grow OperationRead 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 Donald Rupert, 59, of Lakewood, NY, who was convicted of manufacturing 100 or more marijuana plants, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to forfeit $75,000.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that on January 5, 2011, members of the Lakewood Busti Police Department responded to Rupert’s Baker Street Extension residence to check on the welfare of his elderly mother. During the welfare check, the police chief detected an odor of marijuana. During the subsequent execution of a search warrant, officers recovered 227 marijuana plants and $7,000 in cash.
The sentencing is the culmination of an investigation by the Lakewood Busti Police Department, under the direction of Chief John R. Bentley, Jr., the Chautauqua County Sheriff’s Department, under the direction of Joseph Gerace, the Southern Tier Regional Drug Task Force, under the direction of Lieutenant David Bentley, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Lab Tech Charged with Stealing Patient Information and Using It to Apply for Credit CardsRead the Press Release
LAS VEGAS, Nev. – A local woman who worked as a laboratory technician at a Las Vegas pediatric cardiology practice has been indicted by the federal grand jury on charges that she unlawfully obtained the personal identifying information of a patient and used it to apply for credit cards without the patient’s knowledge, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Sherice Joan Williams, 41, of North Las Vegas, Nev., is charged with one count of illegal use and disclosure of patient health information and one count of aggravated identity theft. At an arraignment on Oct. 27, Williams pleaded not guilty to the charges and was temporarily detained pending a hearing at 3:00 p.m. today before U.S. Magistrate Judge Peggy A. Leen.
“Persons who work in the health care industry have special access to personal identifying and medical information, and have a responsibility and duty to protect and not use that information for fraudulent purposes,” said U.S. Attorney Bogden. “We will use the available federal health care fraud and identity theft laws to prosecute persons who knowingly and willingly violate them.”
According to the allegations in the indictment, between about Dec. 1, 2014, and Jan. 27, 2015, Williams, while working as a laboratory technician at the health care provider, knowingly and without authorization, accessed the health and personal identifying information of a patient and applied for personal credit cards with the information.
If convicted of the charges, Williams faces up to 10 years in prison on the health information charge and a minimum of two years consecutive on the aggravated identity theft charge, plus maximum fines of $250,000 on each count.
The case is being investigated by the FBI and Henderson Police Department, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.
If you think someone is using your personal information to open accounts, file taxes, or make purchases, visit www.IdentityTheft.gov to report and recover from identity theft.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The 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.
Kewa Pueblo Man Sentenced to Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Quincy Coriz, 39, a member and resident of Kewa Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 24 months in prison followed by five years of supervised release for abusive sexual contact of a child under the age of 16. Coriz will be required to register as a sex offender after completing his prison sentence.
Coriz was arrested on March 11, 2015, on an indictment charging him with abusive sexual contact in summer 2013, in Indian Country in Sandoval County, N.M.
On May 7, 2015, Coriz pled guilty to the indictment and admitted to sexually assaulting the victim, by making sexual contact with the victim over the clothing. The victim is a tribal member who was under the age of 16 but over the age of 12.
This case was investigated by the BIA’s office of Justice Services. The case was prosecuted by Assistant U.S. Attorney David Adams as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Jefferson City Man Indicted for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm.
Leroy Jamase Spinks, 29, of Jefferson City, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Jefferson City.
Today’s indictment alleges that Spinks, having been convicted of a felony, was in possession of a Glock 9mm pistol on Oct. 14, 2015.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson City, Mo., Police Department.
Jamestown Man Sentenced for Producing Child PornographyRead 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 Alvin Vazquez Rojas, 23, of Jamestown, NY, who was convicted of production of child pornography, was sentenced to 15 years in prison and 10 years of supervised release by U.S. Senior District Judge William M. Skretny.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between December 2012 and May 2013, the defendant took sexually graphic photographs of a seven year old minor while the minor was asleep. Vazquez Rojas then stored the images on a laptop computer. In addition to those images, the defendant also possessed 52 image and 152 video files of child pornography that were downloaded from the internet.
The sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Honduran Man Guilty of Illegally Reentering the United States After Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Kelvin Fabricio Lemus-Villatoro, of Honduras, pleaded guilty to an Indictment charging him with illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith.
Lemus-Villatoro was found in Manchester, New Hampshire, on July 24, 2015 when he was observed by agents of the Department of Homeland Security Immigration and Customs Enforcement operating a motor vehicle. Investigation of Lemus-Villatoro began when he was previously encountered by the New Hampshire State Police and charged with Driving without a License. Biographical information received from the New Hampshire State Police showed that Lemus-Villatoro had an immigration history which included the two deportations from the United States to Honduras, one on August 22, 2008, from Alexandria, Louisiana, and another February 17, 2009, from Dallas Fort Worth, Texas.
Lemus-Villatoro pled guilty to knowingly reentering the United States after previously having been deported to his native Honduras and was sentenced to time served since his arrest by Bureau of Immigration and Customs Enforcement on August 20, 2015.
Lemus-Villatoro will again be deported.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Honduran Man Guilty of Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – Maynor Wenden Aleman-Troches, of Honduras, pled guilty this afternoon to a one-count Indictment alleging that he illegally reentered the United States after having been previously deported.
On September 13, 2015 agents of the Department of Homeland Security Immigration and Customs Enforcement performed a stop of a vehicle Aleman-Troches was operating. One of the officers approached the vehicle, spoke directly to Aleman-Troches, asking him his name, what country he was from, and whether he had any immigration documents that would allow him to be in the United States legally. Though Aleman-Troches gave the agents a false name, he admitted being from Honduras and to lacking any documents which would allow him to be in the United States legally. After his arrest, fingerprint analysis confirmed Aleman-Troches’s true identity. A further investigation established that Aleman-Troches had previously been deported on March 13, 2006, August 9, 2007 and March 30, 2009, to his native Honduras.
Aleman-Troches will be sentenced at 11:00 AM on February 2, 2016, and will be deported after serving his sentence.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Hartford Man Sentenced to More Than 5 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RAYMOND RIVERA, also known as “White Boy,” 25, of Hartford, was sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven to 66 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with RIVERA and other associates distributed crack cocaine in the Westland Street area of Hartford.
During the investigation, RIVERA was involved in four controlled purchases of crack cocaine, totaling approximately 180 grams, and was intercepted over wiretaps engaging in conversations related to the distribution of crack.
RIVERA has been detained since his arrest in April 2014. On April 27, 2015, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Twenty-five individuals were charged as a result of the investigation. Scott and 22 other defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending.
Scott awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Hartford Man Charged with Gang-Related MurderRead the Press Release
United States Attorney Deirdre M. Daly and Chief State’s Attorney Kevin T. Kane today announced that ARTHUR STANLEY, also known as “Wiggs,” 26, has been indicted for the July 15, 2011 murder of Keith Washington, 23, of Windsor.
This matter stems from a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of the Westhell and Team Grease street gangs and gang-related violent activity. The Hartford Police Department and Officers and Inspectors of the Cold Case Homicide Unit of the Office of the Chief State’s Attorney are participating in the investigation.
At approximately 9:28 p.m. on July 15, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 67 Oakland Terrace in Hartford. Officers responding to the scene located an unconscious person lying on the front porch of the residence with an apparent gunshot wound to the head. The victim, who was subsequently identified as Keith Washington, was transported to the hospital where he succumbed to his injuries on July 17, 2011.
On October 27, 2015, a federal grand jury in New Haven returned an indictment charging STANLEY, an active member of the Westhell street gang, with engaging in a Violent Crime in Aid of Racketeering, namely the murder of Keith Washington. If convicted of the charge, STANLEY faces a maximum term of imprisonment of life, or death if the government seeks the death penalty in the matter.
STANLEY has been detained in federal custody since April 2014 and is awaiting sentencing on a crack cocaine conspiracy offense.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, Hartford Police Department and Cold Case Homicide Unit of the Office of the Chief State’s Attorney. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed, and Supervisory Assistant State’s Attorney Patrick Griffin, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Georgia Department of Corrections Employees Sentenced to Federal Prison for Stealing State Restitution FundsRead the Press Release
ATLANTA – Tammi Stephens, Daynna Gregory, and Richard Cantrell have been sentenced to federal prison for stealing victims’ restitution money from a fund controlled by the Georgia Department of Corrections (GDOC), where Stephens and Gregory formerly worked in its banking department.
“Stephens and Gregory stole from a fund that compensates crime victims, a fund that the two had been entrusted to help administer,” said U.S. Attorney John Horn. “By printing false checks and delivering them to Cantrell to launder through his business, Stephens and Gregory callously abused that trust, and effectively preyed upon crime victims a second time.”
“This sentencing holds all three defendants fully accountable for their organized criminal scheme to deprive previous crime victims of monies fully due them. The fact that two of the defendants were State employees abusing their positions of trust made the crimes all the more reprehensible,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“We are pleased to see justice served on these individuals for their role in abusing the public’s trust, thanks to the actions by both GDOC’s internal investigations unit and the cooperation of the FBI,” said Homer Bryson, Commissioner of the Georgia Department of Corrections. “The sentencing of Stephens and Gregory sends a strong message that this type of conduct will not be tolerated,” continued Bryson.
According to U.S. Attorney Horn, the charges and other information presented in court: From September 2013 to June 2014, Stephens and Gregory were employees in the Georgia GDOC banking unit where they were responsible for issuing checks drawn on a restitution fund set up to compensate victims of other crimes. The defendants formed and carried out a plan to steal victim restitution money by having Stephens and Gregory use their access to the fund to issue fraudulent checks payable to a flower shop owned by Cantrell, who was not a GDOC employee. The checks were purposely issued to Cantrell's flower shop to hide the defendants’ involvement in the theft. Cantrell agreed to use his business to launder the stolen money.
After printing the fraudulent checks, Stephens and Gregory altered the Department’s financial records to further disguise their theft. Stephens and Gregory issued 29 fraudulent checks to the flower shop, which were then delivered to Cantrell, who cashed them and split the proceeds with Stephens and Gregory. In total, the defendants stole more than $232,426.76 in restitution funds, which they then spent on a variety of retail purchases.
- Tammi Stephens, 37, of Forsyth, Georgia, was sentenced to three years in prison to be followed by three years of supervised release, and ordered to pay restitution of $232,426.76.
- Daynna Gregory, 41, of Lithonia Georgia, was sentenced to two years and nine months in prison to be followed by three years of supervised release, and ordered to pay restitution of $232,426.76.
- Richard Cantrell, 54, of Marietta, Georgia, was sentenced to two years in prison to be followed by three years of supervised release, and ordered to pay restitution of $232,426.76.
This case was investigated by the Federal Bureau of Investigation and the Georgia Department of Corrections.
Assistant U.S. Attorneys Trevor C. Wilmot and Kurt R. Erskine prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Fourteen Grape Street Crips Leaders, Members and Associates Indicted for Racketeering Conspiracy, Violent CrimesRead the Press Release
NEWARK, N.J. – Fourteen leaders, members and associates of the New Jersey Grape Street Crips, a violent street gang operating in and around Newark, were charged by indictment today with racketeering, violent crimes in aid of racketeering, drug trafficking, firearms offenses and related crimes, U.S. Attorney Paul J. Fishman announced.
Today’s third superseding indictment follows the coordinated takedown in May 2015 of 50 alleged members and associates of the Grape Street Crips who were charged by criminal complaints with drug-trafficking, physical assaults and witness intimidation. The charges are the result of a long-running DEA and FBI investigation, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Overall, 71 defendants have been charged with federal and state charges.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.
Gang leaders, members and associates routinely engaged in acts of intimidation and violence to avenge attacks or perceived slights against the gang, silence individuals who were perceived to be cooperating with law enforcement and protect their drug trafficking activities. Members frequently used social media, including Instagram and YouTube, to disseminate the rules of the gang, intimidate witnesses and other members of the community, and promote the gang’s reputation for violence and drug-trafficking.
In October 2013, Kwasi Mack, a/k/a “Welchs,” 26, of Belleville, New Jersey, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 30, of Newark, two Grape Street Crips leaders, plotted to kill a gang rival (Victim 3). After Batts missed an opportunity to shoot and kill Victim 3, Mack ordered Batts to have junior gang members patrol the Oscar Miles housing complex in case the gang rival returned to the area. Several weeks later, Batts and other gang members allegedly shot and nearly killed the gang rival and an innocent woman in broad daylight in Newark.
Also in October 2013, Mack and other Grape Street Crips members, including Justin Carnegie, a/k/a “Dew Hi,” a/k/a “Dew,” a/k/a “D,” 28, Rashan Washington, a/k/a “Shoota,” 25, and Aaron Terrell, a/k/a “Push,” 24, all of Newark, allegedly committed a shooting in retaliation for the murder of a fellow gang member.
Carnegie and Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 26, of Newark, frequently carried and stock-piled firearms in furtherance of the gang’s activities and talked about harming individuals who were perceived to be cooperating with law enforcement. In May 2010, Carnegie stored a loaded Romarm SA Cugir 7.62x39 assault rifle, an American Industries Calico M100 .22LR carbine, 7.62x39 caliber ammunition, .22 caliber ammunition and $2,952 in Orange, New Jersey.
In March 2015, during the lawful wiretap of a cell phone used by Singleton, law enforcement agents intercepted Singleton detailing his efforts to intimidate a witness who took the witness stand to testify against him. Singleton was facing trial for aggravated assault in connection with a shooting. He bragged about how he had “beat trial” by intimidating the main witness and getting the state charges against him dismissed.
Numerous gang members — including Washington, Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax” a/k/a “Wax,” 28, Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” 31, Jamar Hamilton, a/k/a “Gunner,” 27, Tyquan Clark, a/k/a “Tah,” 28, and James Gutierrez, a/k/a “Bad News,” 24, — sold thousands of “clips” of crack-cocaine in the area of 6th Avenue and North 5th Street (a clip is slang for a package containing 10 doses). To protect their territory, the Grape Street Crips used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a .45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle and numerous semi-automatic handguns.
Also, Hanee Cureton, a/k/a “City,” 30, Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 31, and Lateef Grimsley, a/k/a “Bird,” 26, distributed kilogram quantities of heroin in and around Newark. Cureton controlled a heroin mill located inside a Newark apartment that was used exclusively to package heroin for street-level distribution. Law enforcement agents later recovered several kilograms of heroin, glassine envelopes, cutting agents and blenders from the apartment.
The chart below summarizes the offenses charged in the third superseding indictment and the maximum and minimum penalties faced by each of the charged defendants. The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the charges. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris and Barry Kamar of the District of New Jersey’s Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Count
Offense
Defendant(s)
Max Penalties
1
Racketeering Conspiracy
Kwasi Mack, a/k/a “Welchs,” “The Prince,” “Mini Me,” 26, Belleville
Corey Batts, a/k/a “C-Murder,” “Cee,” 30, Newark
Hakeem Vanderhall, a/k/a “Keem,” “Sugar Bear,” 31, East Orange
Eric Concepcion, a/k/a “Eddie Arroyo,” “E-Wax,” “Wax,” 28, Clifton
Justin Carnegie, a/k/a “Dew Hi,” “Dew,” “D,” 28, East Orange
Ahmed Singleton, a/k/a “Gangsta-Moo,” “Gangsta,” “Mooshie,” 26, Newark
Jamar Hamilton, a/k/a “Gunner,” 26, Tottowa
Tyquan Clark, a/k/a “Tah,” 28, Newark
Rashan Washington, a/k/a “Shoota,” 25, Newark
Hanee Cureton, a/k/a “City” 30, Springfield
Khalil Stafford, a/k/a “Stod,” “Homicide,” 31, Newark
James S. Gutierrez, a/k/a “Bad News,” 24, Newark
Life imprisonment;
$250,000 fine
2
Conspiracy to Commit Murder in Aid of Racketeering
Kwasi Mack
Corey Batts
10 years in prison; $250,000 fine
3
Attempted Murder in Aid of Racketeering
Kwasi Mack
Corey Batts
10 years in prison; $250,000 fine
4
Attempted Murder in Aid of Racketeering
Kwasi Mack
Corey Batts
10 years in prison; $250,000 fine
5
Conspiracy to Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Corey Batts
3 years in prison; $250,000 fine
6
Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Corey Batts
20 years in prison; $250,000 fine
7
Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Corey Batts
20 years in prison; $250,000 fine
8
Use of a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Corey Batts
Life imprisonment; 10-year mandatory minimum; $250,000 fine
9
Conspiracy to Possess a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Corey Batts
20 years in prison; $250,000 fine
10
Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
20 years in prison; $250,000 fine
11
Conspiracy to Assault with a Dangerous Weapon in Aid of Racketeering
Kwasi Mack
Justin Carnegie
Rashan Washington
Aaron Terrell, a/k/a “Push” 24, Newark
3 years in prison; $250,000 fine
12
Conspiracy to Possess a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Justin Carnegie
Rashan Washington
Aaron Terrell
20 years in prison; $250,000 fine
13
Use of a Firearm in Furtherance of a Crime of Violence
Kwasi Mack
Life in prison; 25-year mandatory minimum; $250,000 fine
14
Conspiracy to Distribute Heroin
Kwasi Mack
Life in prison;10-year mandatory minimum; $10,000,000 fine
Corey Batts
Life in prison; 20-year mandatory minimum; $10,000,000 fine
15
Distribution, and Possession with Intent to Distribute, Heroin
Corey Batts
30 years in prison; $2,000,000 fine
16
30 years in prison; $2,000,000 fine
17
30 years in prison; $2,000,000 fine
18
Use of a Firearm in Furtherance of a Drug-Trafficking Crime
Kwasi Mack
Life in prison; 25-year mandatory minimum; $250,000 fine
19
Use of a Firearm in Furtherance of a Drug-Trafficking Crime
Corey Batts
Life in prison; 25-year mandatory minimum; $250,000 fine
20
Conspiracy to Distribute Crack-Cocaine
Hakeem Vanderhall
Eric Concepcion
Jamar Hamilton
Tyquan Clark
Rashan Washington
James S. Gutierrez
Life in prison;10-year mandatory minimum; $10,000,000 fine
21
Continuing Criminal Enterprise
Hakeem Vanderhall
Eric Concepcion
Jamar Hamilton
Tyquan Clark
Rashan Washington
Life in prison; 20-year mandatory minimum
22
Conspiracy to Distribute Heroin
Justin Carnegie
Ahmed Singleton
Life in prison;10-year mandatory minimum; $10,000,000 fine
23
Conspiracy to Distribute Heroin
Hanee Cureton
Khalil Stafford
Lateef Grimsley, a/k/a “Bird,” 26, Newark
Life in prison;10-year mandatory minimum; $10,000,000 fine
24
Distribution of Heroin
Khalil Stafford
Life in prison;10-year mandatory minimum; $10,000,000 fine
25
Distribution of Heroin
Hanee Cureton
Life in prison;10-year mandatory minimum; $10,000,000 fine
26
Felon-in-Possession of a Firearm
Kwasi Mack
10 years in prison; $250,000 fine
27
Felon-in-Possession of a Firearm
Corey Batts
10 years in prison; $250,000 fine
Fort Smith Chiropractor Sentenced in Federal Tax CrimeRead the Press Release
Fayetteville, Arkansas – A Fort Smith chiropractor was sentenced today to serve 17 months in prison, followed by one year of supervised release announced Acting U.S. Attorney Kenneth Elser and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
“Today’s sentence sends a clear message that the department, working with its law enforcement partners, will aggressively pursue and prosecute those individuals who willfully seek to obstruct the Internal Revenue Service and evade their tax obligations,” said Acting Assistant Attorney General Ciraolo.
According to court documents, Philip Roberts, 60, of Fort Smith, Arkansas, had an outstanding federal income tax liability of over $2,000,000, for tax years 1991 through 2004. In 2008, Roberts filed a series of false and fraudulent documents with the IRS in an effort to obstruct and impede the tax laws, including filing false financial instruments that claimed millions of dollars of transactions with both the Secretary of the Treasury and the IRS Commissioner, and filing forms that falsely reported payments to the IRS.
Roberts pleaded guilty on June 22 to corruptly endeavoring to obstruct and impede the IRS. U.S. District Judge Timothy L. Brooks of the Western District of Arkansas also ordered Roberts to pay a $3,000 fine. This is Roberts’ second conviction for income tax related offenses. In 2000, after a jury trial, Roberts was convicted of two counts of willfully failing to file federal income tax returns and sentenced to serve 16 months in prison.
“An important part of our mission is to protect the integrity of the Federal tax system,” said J. Russell George, Treasury Inspector General for Tax Administration. “TIGTA will vigorously investigate individuals who attempt to corruptly interfere with the administration of the Internal Revenue laws through fraudulent means, and will do everything within its power to ensure that those involved will be prosecuted to the fullest extent of the law.”
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Elser commended the Treasury Inspector General for Tax Administration, who investigated the case, as well as Trial Attorneys Robert Kemins and David Zisserson of the Tax Division and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas, who prosecuted the case.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Former Owen County auditor sentenced on theft chargesRead the Press Release
TERRE HAUTE - United States Attorney, Josh J. Minkler, announced today the sentencing of the former auditor of Owen County. Angela Lawson, 57, Gosport, was sentenced to 20 months in federal prison by U. S. District Judge William T. Lawrence after her conviction on five counts of theft concerning programs receiving federal funding.
"The citizens of Owen County deserve elected officials whom they can trust to be fiscally responsible and to do the right thing,” said Minkler. “When that trust is betrayed, it shakes the foundation of our democracy and weakens the effectiveness of local government.”
Angela Lawson served as the elected auditor of Owen County from 2005 through 2012 and as chief deputy auditor from January 2013 through August 14, 2014. She also served as an Owen County Council member from January 2013 through December 2014. In the scope of her employment, Lawson possessed the authority to make public expenditures on behalf of Owen County through a credit card account at Walmart.
During her time in office, Lawson had access to separate credit cards which were issued to various authorized buyers. Over the period March 1, 2010, through December 31, 2014, Lawson stole nearly $310,000 and used it to pay personal expenses that included food, alcohol, gift cards, toys, jewelry and vacations.
Loss totals include:
- 2010--$36,720.18
- 2011--$56,376.04
- 2012--$80,847.03
- 2013--$79,240.51
- 2014--$56,415.04
This investigation was a collaborative effort between the United States Postal Inspection Service, Indiana State Police, Indiana State Board of Accounts and Mr. Robert Cline (Special prosecutor assigned to investigate)
According to Drug and Violent Crime Chief Bradley Blackington who prosecuted this case for the government, Lawson must serve three years of supervised release after her sentence and repay over $300,000 in restitution.
Former Niagara Falls Businessman Pleads Guilty to Bank FraudRead 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 Timothy DePetris, 46, of Niagara Falls, NY, pleaded guilty to bank fraud before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that the defendant, as owner of Electro-Dyn Choke Corporation in Niagara Falls, caused payroll checks to be issued to him and another individual and negotiated the payroll checks even though he knew there were insufficient funds in corporation’s account at M&T Bank to cover the checks. As a result of the defendant’s conduct, M&T Bank suffered a loss of approximately $177,500.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for March 10, 2016 at 11:00 a.m. before Judge Skretny.
Former Navy Range Manager Pleads Guilty to Accepting Illegal GratuitiesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before Chief United States District Judge James C. Dever III, HARRY C. MANN, age 79, of Manns Harbor, North Carolina, pleaded guilty to accepting illegal gratuities while employed by the U.S. Department of Navy at the Dare County Bombing Range. The charge carries a maximum penalty of two years’ imprisonment, a fine of $250,000 or twice the gain to the defendant, restitution, one year supervised release, and a $100 special assessment.
According to the United States Attorney’s factual proffer, Mann, had been employed by the Navy at the range southwest of Manteo, since 1968. The range provides air warfare training support to the Navy and the Marine Corps. Aviators practice dropping inert bombs and firing live rounds of ammunition at practice targets. As range manager, Mann’s official duties included constructing and maintaining the targets. Between January 2005 and May 2011, Mann requisitioned approximately 16 million dollars in excess government property, which included many types of functional heavy equipment, like trucks, excavators, bulldozers, cranes, trailers, and metal connex boxes. He obtained the property from the Defense Reutilization and Marketing Office (DRMO), which was created by the Department of Defense to centralize the disposal of excess property for better accountability and to reutilize military property within the Department of Defense. If the Department of Defense no longer has use for the property, excess material may be used for emergency management in the United States and humanitarian aid worldwide. The Department of Defense could also sell excess property to the public.
Mann, however, without proper authorization, sold DRMO acquired property to local metal scrappers. These men paid Mann a percentage of the proceeds they received for scrapping numerous pieces of heavy equipment and aluminum expedition runway matting. In total, these men state they paid Mann approximately $175,000 in kickbacks. Mann, according to the government’s proffer, demanded that these men pay him in cash when they were alone so others could not witness the payments. One such cash payment of $16,300 was paid to Mann at his residence on May 18, 2011. Mann told the local scrapper to put the envelope of cash in a flower pot. These men, Rudy Lozano and John Williams, previously pleaded guilty to Theft of Government Property.
Chief Judge Dever scheduled sentencing for the Court’s January 25, 2016 term of court.
"One of DLA OIG's missions is to investigate and support the prosecution of crimes relating to fraud, waste and abuse of Department of Defense property," said Jerry Unruh, DLA's deputy inspector general. "It is essential that we hold government employees accountable for using their positions of trust for their own personal gain at the expense of the US Treasury."
"Corrupt Department of Defense employees who enrich themselves at the expense of American taxpayers are reprehensible," said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. "DCIS' top priority is to root out fraud and corruption affecting the DOD, and bring these violators to justice."
The investigation of this case was jointly conducted by the Navy Criminal Investigative Service, the Department of Defense Investigative Service, and the Defense Logistics Agency (DLA), Office of the Inspector General. The Navy was first alerted of the criminal activity by inspectors from the North Carolina Department of Motor Vehicles after witnessing the transportation of heavy pieces of equipment in the Edenton area. Assistant United States Attorneys Felice M. Corpening and Susan B. Menzer represented the government.
Former National Guard Member Sentenced for Enticing a MinorRead the Press Release
LAREDO, Texas – A 35-year-old former sergeant with the National Guard who was stationed in Weslaco has been ordered to federal prison following his conviction of attempted enticement of a minor, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Curtis Billups, of San Antonio, on July 17, 2015, following a three-day trial.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, ordered Billups serve 151 months in federal prison. The sentence will be immediately followed by 10 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender. In handing down the sentence, Judge Marmolejo commented on the danger Billups poses because he acts on his thoughts.
Billups was working the area as part an enhanced border presence. In late March 2015, Billups made contact via the Internet with a person he believed to be a father offering his 12 and 14-year-old daughters for sex. In reality, the individual was actually an undercover agent with Homeland Security Investigations (HSI). Following approximately a week of correspondence, Billups traveled from Weslaco to Laredo to meet with the undercover agent, believing he would be taken to the girls to have sex with them. Instead, he was arrested and taken into custody.
During trial, the government presented the emails and text messages involving Billups, many of which were sexually explicit in nature. The evidence showed he intended to travel to Laredo to have sex with the two fictitious children.
Billups attempted to convince the jury that he believed the communications were part of a role playing game and that no children were actually involved. The jury was not convinced and convicted him as charged.
Billups will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by HSI. Assistant U.S. Attorney Alfredo De La Rosa and Jorge Vela prosecuted the case.
Former NIH Employee Admits to Using Her Government Credit Card for Unauthorized PurchasesRead the Press Release
Greenbelt, Maryland – Francesca Maria Daniele, age 49, of LaPlata, Maryland, pleaded guilty today to wire fraud in connection with the misuse of her government credit card.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Elton Malone, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Special Investigations Branch.
In July 2014, Daniele worked at the National Institutes of Health (NIH), purchasing equipment from vendors and administering contracts on behalf of NIH. To perform her job, Daniele was issued a government credit card.
According to her plea agreement, from July 12 through July 28, 2014, Daniele used her government credit card to fraudulently make approximately $21,830.19 of personal purchases at retail stores. She used her cell phone to contact the credit card’s customer service center to facilitate approval of those purchases. To conceal the scheme, Daniele falsely reported that her credit card had been lost.
Additionally, on October 15, 2014, Daniele opened a credit card account in the name of her minor child. She used the credit card to buy a laptop computer, video game console, a ring and other items, all of which were shipped to a hotel room she rented under an assumed name. Daniele did not pay for several of the items, resulting in a loss to the credit card company of approximately $508.48.
Daniele has agreed to the entry of an order requiring her to forfeit and pay restitution of at least $22,338.67, the total amount of loss resulting from her conduct.
Daniele faces a maximum sentence of 20 years in prison. U.S. District Judge Theodore D. Chuang scheduled sentencing for March 8, 2016, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation, and thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Justin D. Weitz of the Justice Department’s Public Integrity Section, who are prosecuting the case.
Former Hilton Middle School Teacher Pleads Guilty to Attempted Enticement of A MinorRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Charles Kane, 46, of Spencerport, NY, pleaded guilty to attempted online enticement of minor before U.S. District Court Judge Elizabeth A. Wolford. The charge carries a mandatory minimum sentence of 10 years in prison and a maximum of life, a fine of up to
$250,000, or both.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant, a middle school teacher in the Hilton School District, was arrested April 2, 2015 as he attempted to meet with a person he thought was a 14 year old girl.
The investigation determined that in October 2014, the defendant posted an ad on Craigslist which read “daddy/daughter. Love younger women.” A federal law enforcement officer, working in an undercover capacity, posed as the father of a young daughter and conversed with Kane online for the next several months. During these conversations, Kane discussed traveling to meet the undercover and engaging in sexual activity with the undercover’s ten year old daughter.
On January 26, 2015, another undercover officer noticed a different sexually explicit ad on Craigslist which was traced back, once again, to the defendant. The officer responded to the ad in the persona of a 14 year old girl. Kane responded that he was “down with it.” The defendant asked the girl where she lived and said he wanted to meet her. The two remained in contact through March of 2015. During online chats, Kane sent the undercover officer photos of himself, including one he took in the men’s room at the Middle School where he taught, and repeatedly asked for photos of the 14 year old girl. Also during the chats, the defendant repeatedly discussed engaging in sexually explicit activity with the child and traveling to and meeting with the child for sexual purposes. One message read “I could get a room and I could sneak you there.” Kane acknowledged that he could get in “big trouble” and told the girl “this is between you and me.”
Following repeated requests, the girl agreed to meet the defendant at a theatre in Webster on April 2, 2015. The defendant was observed entering a pharmacy just before meeting with the undercover, where they learned that Kane purchased a box of condoms. Kane was arrested as soon as he pulled up to the theatre parking lot. He has been in federal custody since his arrest, and was held following a detention hearing last month.
The plea is the culmination of an investigation by the New York State Police, under the direction of Major Craig Hanesworth and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, Niagara County Sheriff’s Office, Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing is scheduled for January 26, 2016 at 2:00 p.m. before Judge Wolford.
Former Gloucester County Financial Advisor Sentenced to 63 Months in Prison for $900,000 Investment Fraud SchemeRead the Press Release
CAMDEN, N.J. – John Montague, a former Gloucester County, New Jersey-based financial advisor was sentenced today to 63 months in prison for defrauding his clients of more than $900,000 by having them make investment checks payable to himself, which he then diverted to his personal use, U.S. Attorney Paul J. Fishman announced.
Montague, 60, of Mantua, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of wire fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Montague was licensed to sell mutual funds, variable annuities, and insurance premiums but at no time was he licensed to sell corporate or municipal securities, direct participation programs, or options. Montague engaged in a scheme to defraud his clients by soliciting and inducing them to purchase investment vehicles that Montague knew he could not sell. Montague described the investment vehicles to his clients as guaranteed investments that promised a rate of return of approximately 6 percent. Montague instructed his clients to make their investment checks payable to him, and he then deposited them into his personal bank accounts. To maintain the clients’ confidence in the investments, Montague issued periodic “dividend” checks to his clients.
In addition to the prison term, Judge Hillman sentenced Montague to three years of supervised release and ordered him to pay $788,716 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.
Former Danville Middle School Teacher Sentenced to 65 Months’ Imprisonment for Possession of Child PornographyRead the Press Release
OAKLAND – Mitchell Phillip Wolf was sentenced today to 65 months in prison for possession of child pornography announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Wolf, 60, of Danville, pleaded guilty on July 8, 2015, to possessing child pornography. According to the plea agreement, Wolf admitted to knowingly possessing approximately 50,000 digital files depicting minors engaged in sexually explicit conduct. Wolf admitted to intentionally saving the image and video files to his personal desktop computer and to assorted CD-ROMs and DVDs that he stored in his home office and bedroom. On many of the CD-ROMs and DVDs, Wolf hand-labeled their content with terms consistent with child pornography, such as “PTHC” for “pre-teen hardcore.” Wolf admitted to downloading the digital files from the internet using an online peer-to-peer file sharing program. Wolf was charged by an information on April 3, 2015, with a single count of possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B).
The sentence was handed down by the Honorable Phyllis J. Hamilton, U.S. District Judge, following a guilty plea to the charged count. In addition to the prison term, Judge Hamilton also ordered Wolf to serve a ten-year period of supervised release, including conditions prohibiting his use of computers and Internet, prohibiting him from frequenting locations where children may be present, and requiring him to submit to searches upon request of law enforcement, among other conditions. Wolf will begin serving the prison term on January 4, 2016.
Assistant U.S. Attorney Wade M. Rhyne is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Silicon Valley Internet Crimes Against Children’s Task Force, and the Contra Costa County District Attorney’s Office.
Former Corporate Lawyer Pleads Guilty in Manhattan Federal Court in Connection with Multimillion-Dollar Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHARLES A. BENNETT pled guilty in Manhattan federal court today to an Indictment charging him with securities and wire fraud in connection with a scheme to defraud over 30 investors of more than $5 million over the course of more than five years. Among other false and misleading statements, BENNETT lied to investors by claiming to have exclusive access to a highly successful privately held investment fund in which he would purportedly invest the investors’ money. BENNETT solicited millions of dollars from over 30 investors, including his close friends and family members, but never actually invested any of the money in the investment fund or any other investment vehicle. Instead, BENNETT used the investors’ money for his own personal benefit and to pay back other investors. BENNETT was arrested on December 12, 2014, and pled guilty today before United States District Judge Laura Taylor Swain.
U.S. Attorney Preet Bharara said: “As he admitted today, Charles Bennett spun an elaborate web of lies and ensnared dozens of investors, including his own friends and family. Bennett, a former corporate attorney, solicited millions of dollars from investors, issuing fake promissory notes and account statements, but actually just spent all of the money on his personal expenses. He now awaits sentencing for his fraudulent investment scheme.”
According to the Complaint, the Indictment, and other statements made in open court:
From 2008 through November 2014, BENNETT, a former corporate lawyer at a law firm based in New York City, engaged in a multimillion-dollar Ponzi scheme, during which he solicited money from investors based on materially false and misleading representations. Specifically, BENNETT told the investors that he himself had invested money in a highly successful privately held investment fund, and that, should they choose to invest, the investors’ money would be held in BENNETT’s account. BENNETT communicated by email and telephone with many of the investors in order to tell them about the purported status of their investments, including their purported returns. BENNETT also led most of the investors to believe that they were the only individuals to whom he had extended the offer to invest with him.
BENNETT created false and misleading paperwork in furtherance of the scheme, including “promissory notes” that he provided to the investors as a record of the amounts of money they had given to BENNETT to invest. BENNETT also provided certain investors with account statements that purported to show the amount that BENNETT (and the investors, through BENNETT) had invested. In fact, BENNETT never invested any of the investors’ money in the investment fund or in any other investment vehicle, but instead spent the money on his own personal expenses and to repay other investors.
During the course of the fraudulent scheme, BENNETT solicited more than $5 million from more than 30 investors.
* * *
BENNETT, 57, formerly of Manhattan, now living in Minnesota, pled guilty to one count of securities fraud and one count of wire fraud. The securities fraud count and the wire fraud count each carry a maximum sentence of 20 years in prison; and the charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BENNETT is scheduled to be sentenced by Judge Swain on March 17, 2016.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission for their assistance with the investigation.
The case was brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Amy Lester is in charge of the prosecution.
Former Business Manager and Two Contractors Charged with Theft from Labor Union, Unlawful Labor Payments, Fraud and Money LaunderingRead the Press Release
A former business manager of the Local 657 of the Laborers International Union of North America (LIUNA) and two building contractors were charged today with stealing from Local 657 and related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Agent in Charge Steven D. Anderson of the Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations’ Washington, D.C., Regional Office and District Director Mark Wheeler of the Department of Labor’s Office of Labor Management Standards’ Washington, D.C., District Office made the announcement.
Anthony Wendel Frederick Sr., 49, of Upper Marlboro, Maryland, was charged with one count of theft from a labor organization, one count of receiving unlawful labor payments, wire fraud and one count of money laundering
Gary Amoes Cooper, 56, of Upper Marlboro, and Christopher Andrew Kwegan, 58, of Randallstown, Maryland, each also were charged with one count of theft from a labor organization, one count of payment unlawful labor payments, wire fraud and several counts of money laundering. Cooper and Kwegan own STS General Contracting of Greenbelt, Maryland. All three defendants are in custody and are scheduled to have their initial appearance at 1:45 p.m. EDT today before U.S. Magistrate Judge G. Michael Harvey of the District of Columbia.
LIUNA is a labor organization that represents laborers in the construction industry. LIUNA’s Local 657 represents construction laborers in Washington, D.C., and five adjacent counties. For approximately 10 years, until June 2014, Frederick served as the business manager for Local 657.
The indictment alleges that, from May 2013 to June 2014, Frederick directed more than $1.7 million in Local 657 funds to STS Contracting without the knowledge or authorization of the Local 657 Executive Board or officials in the LIUNA International. Specifically, according to the indictment, in June 2014, a routine audit of the local union by LIUNA revealed that Frederick had paid nearly $1.1 million to STS Contracting for minimal renovations at the Local 657 administrative building. In addition, the indictment alleges that, without authorization, Frederick directed over $580,000 in Local 657 funds to STS Contracting for expediting permits for the construction of a new training center for Local 657, which expediting had previously been handled by another construction firm. According to the indictment, the LIUNA auditor also discovered that Frederick grossly overpaid STS Contracting for expediting various permits, including $20,000 to expedite a $143 excavation permit, and more than $20,000 to renew existing permits, which could have been accomplished online for approximately $250 apiece.
The indictment further alleges that Cooper and Kwegan used the stolen Local 657 funds to make a down payment of $225,000 on a home purchased by Frederick and to pay for the construction of a three-car garage on the property, and directed more than $600,000 to a corporation owned in part by Frederick’s wife. In addition, Cooper and Kwegan allegedly depleted a company bank account, which primarily contained stolen Local 657 funds, by withdrawing more than $500,000 in cash, sending hundreds of thousands of dollars to third parties in Qatar, and using the remainder for personal items, entertainment, shopping trips, hotel stays and overseas travel.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and the Department of Labor. The case is being prosecuted by Trial Attorney Vincent Falvo of the Criminal Division’s Organized Crime and Gang Section.
Eric Bartoli, fugititive for more than a decade, is in custody in the U.S. and scheduled to appear in court ThursdayRead the Press Release
Eric V. Bartoli, who was indicted in 2003 and was a fugitive for more than a decade, is in custody in the United States, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the FBI, and IRS Special Agent in Charge Kathy Enstrom.
Bartoli is scheduled to appear before U.S. District Judge John Adams Thursday at 1:30 p.m. in Akron to be arraigned on a 10-count indictment.
Bartoli is accused of operating a large-scale ponzi scheme from 1995 through 1999. Bartoli allegedly created and operated a company by the name of Cyprus Funds, Inc., which was based in Doylestown, Ohio and incorporated in Central America. Bartoli and his co-conspirators allegedly operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims include retirees, according to court records.
Bartoli was sued in 1999 by the Securities and Exchange Commission on charges involving the Cyprus Funds, Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
A 10-count federal indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio in October 2003. He was charged with conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud, money laundering, and attempted income tax evasion.
Bartoli has been featured on shows including American Greed and Life on the Run, among others.
Bartoli was taken into custody by the Peruvian National Police in Lima, Peru, in 2013. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police.
“The fact that this man is back on American soil and will finally stand before a judge to answer to these charges is a tribute to all who have worked on this case,” Dettelbach said. “They never stopped pursuing justice for the victims.”
“A little over 12 years past the date of indictment, Bartoli's life on the run has come to an end,” Anthony said. “The over 800 investors will now have some closure by seeing that the FBI, in cooperation with our international partners, never gave up and has brought this fugitive to justice.”
“Honest and law-abiding citizens are fed up with those who use deceit and fraud to line their pockets with other people’s money,” Enstrom said. “Tax evasion and fraud of this magnitude, and with this degree of trickery, dishonesty and deceit, deserves to be punished.”
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Miranda Dugi following an investigation by the Federal Bureau of Investigation, Internal Revenue Service and the Securities and Exchange Commission.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.