Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 December 2015
Maryland Man Charged for Alleged Support of the ISIL Terrorist OrganizationRead the Press Release
Baltimore, Maryland – Mohamed Elshinawy, 30, of Edgewood, Maryland, was arrested on Friday, December 11, 2015, on a federal criminal complaint charging him with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; obstruction of agency proceedings; and making false statements and falsifying or concealing material facts. Elshinawy is scheduled to have his initial appearance at 2:45 p.m. today before U.S. Magistrate Judge Beth P. Gesner of the District of Maryland in Baltimore.
The criminal complaint was announced by U.S. Attorney Rod J. Rosenstein of the District of Maryland; Assistant Attorney General for National Security John P. Carlin; and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
“This case demonstrates how terrorists exploit modern technology to inculcate sympathizers and build hidden networks, but federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt their evil schemes,” said U.S. Attorney Rosenstein. “The affidavit alleges that Mr. Elshinawy initially told the FBI that he was defrauding the terrorists, but further investigation showed that Mr. Elshinawy was supporting the terrorists and misleading the FBI.”
“According to the allegations in the complaint, Mohamed Elshinawy received money he believed was provided by ISIL in order to conduct an attack on U.S. soil,” said Assistant Attorney General Carlin. “When confronted by the FBI, he lied in order to conceal his support for ISIL and the steps he took to provide material support to the deadly foreign terrorist organization. He will now be held accountable for these crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue and disrupt those who seek to provide material support to ISIL.”
The affidavit filed in federal court alleges that in June 2015, the FBI became aware of an individual located in Egypt who was attempting to send money to the United States, possibly for nefarious purposes. The investigation revealed that on June 28, 2015, that individual wire transferred $1,000 to Elshinawy. The FBI interviewed Elshinawy on July 17, 2015. The affidavit alleges that Elshinawy first claimed that his mother had sent him the money, and then that the money was to purchase an iPhone for a friend. Later, he admitted that a childhood friend had contacted him a few months earlier to connect him, through social media, with an unidentified member of ISIL (referred to in the complaint as the “unidentified ISIL operative”). Elshinawy began communicating with the unidentified ISIL operative through a method of communication used by ISIL. The defendant also admitted that he understood the individual in Egypt who wire transferred the money on June 28, 2015, also to be an ISIL operative (referred to in the complaint as the “Egyptian ISIL operative”).
Elshinawy said that he had received a total of $4,000 in two payments –$1,000 through Western Union and $3,000 through PayPal – and that the ISIL operative instructed Elshinawy to use the monies for “operational purposes,” which Elshinawy understood to mean causing destruction or conducting a terrorist attack in the United States. Elshinawy stated that ISIL instructed him that if he ever came under surveillance by law enforcement, he should stop whatever activities he was doing in connection with executing an attack. Elshinawy claimed, however, that he never intended to carry out an attack and was only trying to get money from ISIL.
The affidavit further alleges that during a second interview with the FBI on July 20, 2015, Elshinawy stated emphatically that he received no other funds from ISIL other than the $4,000 he had previously disclosed. Later, however, Elshinawy said that he remembered receiving another payment of $1,200 from ISIL through Paypal, from the same unidentified ISIL operative, by order of a man in Syria. In this instance, Elshinawy explained that in order to receive the transfers from the unidentified ISIL operative, he engaged in a scheme by which he pretended to sell printers on eBay that would serve as a cover for the payments he received from ISIL.
A review of PayPal records indicates that Elshinawy allegedly concealed at least $3,500 of $7,700 that he received from ISIL operatives through his PayPal account between March and June 2015, specifically, $1,500 on March 23; $1,000 on April 16; $1,000 on May 1; $3,000 on May 14; and $1,200 on June 7. In total, Elshinawy allegedly received at least $8,700 from individuals he understood to be associated with ISIL.
According to the affidavit, Elshinawy used social media, multiple email accounts and “pay as you go” phones subscribed to him under various aliases to communicate with the individuals he understood to be associated with ISIL.
The social media communications between Elshinawy and his childhood friend were in Arabic, and many contained jihadist rhetoric found in ISIL- and other terrorist-related propaganda.
The investigation revealed that on Feb. 17, 2015, Elshinawy pledged his allegiance to ISIL and asked his childhood friend to deliver his message of loyalty. He stated that he was a soldier of the state, a common reference to ISIL, but temporarily away. Elshinawy also stated that his soul was over there with the jihadists and that every time he saw the news, he smiled. At the time of this conversation, ISIL recently had conducted a series of attacks and gained territory in Iraq. On Feb. 16, 2015, a video was publicly released showing the execution of 21 Egyptian nationals in Libya by ISIL extremists.
Also on Feb. 17, 2015, the childhood friend told Elshinawy to seek God’s help and not tell anyone his plans for a terrorist attack. Elshinawy agreed and acknowledged that it is a crime in the United States. He further declared his allegiance to committing jihad.
The investigation also revealed that on April 27, 2015, Elshinawy told his brother that he had pledged allegiance to ISIL and that he had received money from ISIL and expected to receive even more. In further communications with his brother in May 2015, Elshinawy stated his desire to die as a martyr for the Islamic State (ISIL), and in August 2015, he directed his brother to take steps to conceal their communications and any communications with the childhood friend, because Elshinawy believed his relationship with ISIL had been compromised.
Elshinawy’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. The maximum sentence of imprisonment for attempting to provide material support to a designated foreign terrorist organization is 15 years; for obstruction of agency proceedings is eight years; and for making material false statements is eight years.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christine Manuelian who is prosecuting the case, with the assistance John Gibbs of the National Security Division’s Counterterrorism Section.
Maryland Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Defendant Allegedly Received Money from Individuals Overseas to be used for “Operational Purposes” in the United States
When Confronted by the FBI the Defendant Allegedly Lied to the FBI and Concealed his Support for ISIL
Mohamed Elshinawy, 30, of Edgewood, Maryland, was arrested on Friday, Dec. 11, 2015, on a federal criminal complaint charging him with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; obstruction of agency proceedings; and making false statements and falsifying or concealing material facts. Elshinawy will have his initial appearance today at 2:45 p.m. EST before U.S. Magistrate Judge Beth P. Gesner of the District of Maryland in Baltimore.
The criminal complaint was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
“According to the allegations in the complaint, Mohamed Elshinawy received money he believed was provided by ISIL in order to conduct an attack on U.S. soil,” said Assistant Attorney General Carlin. “When confronted by the FBI, he lied in order to conceal his support for ISIL and the steps he took to provide material support to the deadly foreign terrorist organization. He will now be held accountable for these crimes. The National Security Division’s highest priority is counterterrorism and we will continue to pursue and disrupt those who seek to provide material support to ISIL.”
“This case demonstrates how terrorists exploit modern technology to inculcate sympathizers and build hidden networks, but federal agents and prosecutors are working tirelessly and using every available lawful tool to disrupt their evil schemes,” said U.S. Attorney Rosenstein. “The affidavit alleges that Mr. Elshinawy initially told the FBI that he was defrauding the terrorists, but further investigation showed that Mr. Elshinawy was supporting the terrorists and misleading the FBI.”
The affidavit filed in federal court alleges that in June 2015, the FBI became aware of an individual located in Egypt who was attempting to send money to the United States, possibly for nefarious purposes. The investigation revealed that on June 28, 2015, that individual wire transferred $1,000 to Elshinawy. The FBI interviewed Elshinawy on July 17, 2015. The affidavit alleges that Elshinawy first claimed that his mother had sent him the money, and then that the money was to purchase an iPhone for a friend. Later, he admitted that a childhood friend had contacted him a few months earlier to connect him, through social media, with an unidentified member of ISIL (referred to in the complaint as the “unidentified ISIL operative”). Elshinawy began communicating with the unidentified ISIL operative through a method of communication used by ISIL. The defendant also admitted that he understood the individual in Egypt who wire transferred the money on June 28, 2015, also to be an ISIL operative (referred to in the complaint as the “Egyptian ISIL operative”).
Elshinawy said that he had received a total of $4,000 in two payments –$1,000 through Western Union and $3,000 through PayPal – and that the ISIL operative instructed Elshinawy to use the monies for “operational purposes,” which Elshinawy understood to mean causing destruction or conducting a terrorist attack in the United States. Elshinawy stated that ISIL instructed him that if he ever came under surveillance by law enforcement, he should stop whatever activities he was doing in connection with executing an attack. Elshinawy claimed, however, that he never intended to carry out an attack and was only trying to get money from ISIL.
The affidavit further alleges that during a second interview with the FBI on July 20, 2015, Elshinawy stated emphatically that he received no other funds from ISIL other than the $4,000 he had previously disclosed. Later, however, Elshinawy said that he remembered receiving another payment of $1,200 from ISIL through PayPal, from the same unidentified ISIL operative, by order of a man in Syria. In this instance, Elshinawy explained that in order to receive the transfers from the unidentified ISIL operative, he engaged in a scheme by which he pretended to sell printers on eBay that would serve as a cover for the payments he received from ISIL.
A review of PayPal records indicates that Elshinawy allegedly concealed at least $3,500 of $7,700 that he received from ISIL operatives through his PayPal account between March and June 2015, specifically, $1,500 on March 23; $1,000 on April 16; $1,000 on May 1; $3,000 on May 14; and $1,200 on June 7. In total, Elshinawy allegedly received at least $8,700 from individuals he understood to be associated with ISIL.
According to the affidavit, Elshinawy used social media, multiple email accounts and “pay as you go” phones subscribed to him under various aliases to communicate with the individuals he understood to be associated with ISIL.
The social media communications between Elshinawy and his childhood friend were in Arabic, and many contained jihadist rhetoric found in ISIL- and other terrorist-related propaganda.
The investigation revealed that on Feb. 17, 2015, Elshinawy pledged his allegiance to ISIL and asked his childhood friend to deliver his message of loyalty. He stated that he was a soldier of the state, a common reference to ISIL, but temporarily away. Elshinawy also stated that his soul was over there with the jihadists and that every time he saw the news, he smiled. At the time of this conversation, ISIL recently had conducted a series of attacks and gained territory in Iraq. On Feb. 16, 2015, a video was publicly released showing the execution of 21 Egyptian nationals in Libya by ISIL extremists.
Also on Feb. 17, 2015, the childhood friend told Elshinawy to seek God’s help and not tell anyone his plans for a terrorist attack. Elshinawy agreed and acknowledged that it is a crime in the United States. He further declared his allegiance to committing jihad.
The investigation also revealed that on April 27, 2015, Elshinawy told his brother that he had pledged allegiance to ISIL and that he had received money from ISIL and expected to receive even more. In further communications with his brother in May 2015, Elshinawy stated his desire to die as a martyr for the Islamic State (ISIL), and in August 2015, he directed his brother to take steps to conceal their communications and any communications with the childhood friend, because Elshinawy believed his relationship with ISIL had been compromised.
The maximum sentence of imprisonment for attempting to provide material support to a designated foreign terrorist organization is 15 years; for obstruction of agency proceedings is eight years; and for making material false statements is eight years. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
A criminal complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Christine Manuelian of the District of Maryland, with the assistance of Trial Attorney John Gibbs of the National Security Division’s Counterterrorism Section.
Elshinawy Complaint
Man Arrested in Penn-North One Week After Baltimore Riots Sentenced to 42 Months in Prison for Federal Gun ChargeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Robert “Meech” Tucker, age 24, of Baltimore, today to 42 months in prison, followed by three years of supervised release, for illegal possession of a gun by a previously convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Kevin Davis.
“Mr. Tucker threw a loaded gun on the ground and it fired, then he pretended to be injured. His actions incited misguided bystanders who attacked innocent police officers,” said U.S. Attorney Rod J. Rosenstein. “This case shows the challenges that police officers sometimes face as they work to protect the community and save lives.”
According to court documents, on May 4, 2015, a citizen notified police officers that a man was armed with a handgun in the Penn-North section of Baltimore, near a pharmacy that was burned during street riots the previous week. Officers alerted the CitiWatch camera operators, and a camera operator located Tucker, who matched the description.
The camera operator confirmed that Tucker was displaying characteristics of an armed gunman. Officers then drove their marked patrol car into the area. When the patrol car stopped, Tucker ran. Tucker then removed a handgun from his waistband area and threw it to the ground, causing it to fire. Fortunately no one was hit by the bullet. Police arrested Tucker and recovered a .357 Magnum revolver handgun loaded with two live rounds and one spent cartridge casing.
Meanwhile, bystanders wrongly shouted that a police officer shot Tucker in the back, people yelled and threw bricks and bottles at police officers, and a television network mistakenly reported that the police had shot Tucker.
Tucker was transported to the hospital, but he was not injured.
Tucker also admitted that five weeks earlier, on March 29, 2015, he committed an assault in violation of state law. In that incident, CitiWatch cameras in the area of Penn-North recorded Tucker striking a man in the back of the head with his fist. The man fell to the ground and was injured. The man was taken to the hospital and treated for his injury. The camera operator continued to monitor Tucker until he was located by Baltimore Police officers and arrested.
Federal prosecutors have charged four other defendants for crimes committed during the Baltimore riot on April 27, 2015. Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, was charged with obstruction of firefighters during a civil disorder and for aiding and abetting arson. Donta Betts, age 19, of Baltimore, is charged with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. Darius Raymond Stewart, age 21, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 24, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew Hoff, a Baltimore Assistant State’s Attorney assigned to handle federal Exile cases, who prosecuted the case.
Keshena Man Sentenced for Assault on 6 Month Old ChildRead the Press Release
Acting United States Attorney Gregory J. Haanstad announced that Derrick M. Corn (32), Keshena, Menominee Indian Reservation, WI., was sentenced on December 9, 2015 by Chief Judge William C. Griesbach to 60 months imprisonment for the assault of a six-month old child resulting in substantial bodily injury to the child, in violation of Title 18, United States Code, Section 113(a)(7). Corn is the father of the child. Upon his release, Corn will be on federal supervised release for 3 years.
In pronouncing sentence, Judge Griesbach noted the serious injuries to the child including multiple skull fractures. He also rejected Corn’s claim that the injuries occurred when his child was submerged under water for a period of time while taking a bath. Corn claimed he was shaving at the time and was not paying attention to the child. Judge Griesbach referenced the complete lack of evidence supporting Corn’s claim and cited to the extensive medical reports disproving his claim.
The case was investigated by the Federal Bureau of Investigation and the Menominee Tribal Police Department and was prosecuted by Assistant U.S. Attorney Ben Whittemore and William Roach.
# # # # #
Insurance Agency Owner Convicted of Stealing More Than $1.7 Million in Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a federal jury in Hartford today found EARL O’GARRO, JR., 32, formerly of Marlborough, guilty of defrauding a specialty lender, insurance carriers and the State of Connecticut. The trial before U.S. District Judge Alvin W. Thompson began on December 8 and, after deliberating for approximately one hour, the jury returned verdicts of guilty on all three counts.
“The defendant took advantage of friends and associates in the insurance industry to support a lifestyle he couldn’t afford,” said U.S. Attorney Daly. “I thank the FBI and our trial team for their expert investigation and prosecution of this matter, which led to a swift verdict of guilty.”
“Today, victims of fraud have been given some degree of closure by the jury’s decision,” said FBI Special Agent in Charge Ferrick. “The FBI and our law enforcement partners intend to continue to pursue these types of violations to the fullest extent of the law.”
According to the evidence at trial, O’GARRO was the President, Chief Executive Officer and an owner of Hartford-based Hybrid Insurance Agency, LLC (“Hybrid”), a wholesale insurance brokerage specializing in placing excess and surplus line insurance products.
Beginning in approximately April 2013, O’GARRO defrauded Capital Premium Financing, Inc., a specialty lender that provides premium financing on behalf of insured entities. O’GARRO falsely represented to Capital Premium Financing that an insurance carrier, AmTrust E&S Insurance Services, Inc. (“AmTrust”), had issued insurance policies for four companies, that these companies were using Capital Premium Financing’s services to finance their premium payments, and that Hybrid had brokered the contracts and was entitled to collect the premiums on behalf of AmTrust. In fact, O’GARRO knew that AmTrust had not issued policies for any of these four companies. Relying on O’GARRO’s misrepresentations, Capital Premium Financing subsequently released $849,282.55 in premium payments to Hybrid on the purported insurance policies. O’GARRO converted the funds to his own use.
In July 2013, as part of an effort to prolong the scheme, O’GARRO created an email address and Internet domain name similar to that of AmTrust in order to assume a false identity as an AmTrust underwriter. Posing as an AmTrust underwriter, O’GARRO sent an email to Capital Premium Financing to falsely verify the existence of the four policies.
Hybrid also served as the wholesale broker for certain insurance policies held by the City of Hartford. In July 2013, O’GARRO directed the city to transfer $868,244 in premiums to Hybrid. After the City of Hartford wired Hybrid the funds, O’GARRO intentionally withheld $669,997 in premium payments from the appropriate excess insurance carries, Starr Indemnity & Liability Company, Inc. and National Casualty Company. Instead, O’GARRO converted the money to his own use. In fact, approximately 17 minutes after receiving the funds, O’GARRO wired $300,000 to Capitol Premium Financing as partial repayment for the monies he had been caught stealing from them. O’GARRO then falsely advised the city that the premium payments had been remitted to the insurers.
The evidence at trial also established that, in approximately July 2013, O’GARRO, on behalf of Hybrid, submitted a false application to the State of Connecticut Department of Economic and Community Development (“DECD”) for a $500,000 loan. In his application, O’GARRO provided false information concerning his and Hybrid’s financial condition. Based in part on these false statements, DECD approved Hybrid’s loan application and mailed a $250,000 check to Hybrid. O’GARRO used a substantial portion of these loan funds to make a payment on a million dollar condominium he had purchased in the Dominican Republic and to pay tuition at his children’s private school.
The jury found O’GARRO guilty of two counts of wire fraud and one count of mail fraud. Each charge carries a maximum term of imprisonment of 20 years. Judge Thompson scheduled sentencing for March 7, 2016.
O’GARRO has been released on a $500,000 bond since his arrest on November 21, 2014. He will now be subject to electronic monitoring while awaiting sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Avi M. Perry and Michael J. Gustafson.
Indictment Charges Alleged Leader of Straw Purchasing SchemeRead the Press Release
PHILADELPHIA - Nakia Adams, 41, address unknown, was charged by indictment, unsealed today, with conspiracy, making false statements to a federal firearms licensee, possession of firearms by a convicted felon, and aiding and abetting, announced United States Attorney Zane David Memeger. The charges arise from Adams’ use of several individuals as “straw purchasers” to obtain firearms from federally licensed firearms dealers. Adams, as a previously convicted felon, is prohibited from purchasing firearms himself.
If convicted, the defendant faces a maximum possible statutory sentence of 90 years in prison, possible fines, a $1,200 special assessment, and three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives Reading Field Office and is being prosecuted by Assistant United States Attorney Eric Boden.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Huntington man pleads guilty to Federal gun chargeRead the Press Release
HUNTINGTON, W.Va. – A convicted felon from Huntington, West Virginia, pleaded guilty today to a federal gun charge, announced United States Attorney Booth Goodwin. Semaj Markes Leondre Figg, 24, entered a guilty plea in federal court in Huntington to being a felon in possession of a firearm.
On April 29, 2015, Figg was arrested by members of the Huntington Police Department for a parole violation. At the time of his arrest, officers found Figg to be in possession of a loaded CZ Model 52, 7.62 x 25 caliber pistol. Figg was prohibited from possessing any firearm under federal law because of a 2014 felony conviction in Cabell County Circuit Court for conspiracy to deliver cocaine.
Figg faces up to ten years in federal prison and a $250,000 fine when he is sentenced in federal court in Huntington on March 14, 2016.
This case was investigated by the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
The prosecution is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
-
Follow us on Twitter: SDWVNews
-
Hanford Man Pleads Guilty to Stealing over $100,000 from Lemoore Naval Air Station AutoportRead the Press Release
FRESNO, Calif. — Christopher Michael Whitacre, 50, of Hanford, pleaded guilty today to theft in a special maritime or territorial jurisdiction, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January 1, 2011, and July 31, 2013, Whitacre, who was a supervisor at an auto service center at the Naval Air Station in Lemoore, stole approximately $111,900 in cash from the center. Whitacre stole the cash incrementally by accepting money from customers who purchased gasoline at the gas pump but then entering a lower amount for the transaction and pocketing the difference. He changed the dates or amounts of gasoline delivered to the center to cover up the discrepancy between the actual amount of gasoline that was sold and the amount of gasoline purported to be sold through cash register transaction records.
This case is the product of an investigation by the Navy Criminal Investigation Service. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
Whitacre is scheduled to be sentenced by United States District Judge Dale A. Drozd on May 16, 2016. Whitacre faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Gwinn Felon, Kevin Leonard Houle, Sentenced to Prison for Possessing A FirearmRead the Press Release
MARQUETTE, MICHIGAN — Kevin Leonard Houle, 42, of Gwinn, Michigan, was sentenced to 84 months in prison, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. District Judge R. Allan Edgar also ordered Houle to serve three years of supervised release following his prison term.
On August 4, 2015, Houle pleaded guilty to being a felon in possession of a firearm. The charge arose from an investigation surrounding the discharge of a firearm during a domestic dispute on March 20, 2015. Officers arrived on the scene, whereupon Houle led them in a high speed car chase through a residential area. Houle then abandoned his car and fled on foot. He was found hiding in a neighbor’s residence. He admitted that he had taken a rifle and shot several holes in the windshield of his vehicle after arguing with his wife. Houle had previously been convicted of felony drug and robbery charges in New Hampshire.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Forsyth Township Police Department and the Michigan State Police investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
END
Greenville, Texas, Man Sentenced to 10 Years in Federal Prison for Attempting to Entice an Individual he Believed to be a 15-Year-Old Female to Engage in Sexual ActivityRead the Press Release
DALLAS — Michael Henry Shahan, 32, of Greenville, Texas, was sentenced today by U.S. District Judge David C. Godbey to 10 years in federal prison, following his guilty plea in September 2015 to one count of attempted enticement of a minor, announced John Parker, U.S. Attorney for the Northern District of Texas.
According to documents filed in the case, in November 2015, an officer with the Hopkins County Sheriff’s Office who was working online in an undercover capacity posing as a 15-year-old female encountered an individual who was later identified as Shahan. During their ensuing chats over a two-month period, Shahan sent the girl, whom he knew was 15-years-old, sexually explicit nude photographs of himself and insisted he wanted to meet her and engage in sexual activity with her. Their mid-January 2015 planned meeting was thwarted when Shahan’s wife did not stay home from work as expected and make available what was then the couple’s only car. The officer obtained an arrest warrant and Shahan was arrested soon thereafter. Shahan had images of child pornography on his cell phone as well as numerous chats about the contents of traded child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Hopkins County Sheriff Office investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
# # #
Grand Jury Returns Federal Indictment Charging Tremonton Man with Production and Possession of Child Pornography, Coercion and EnticementRead the Press Release
SALT LAKE CITY – A federal grand jury returned a three-count indictment Wednesday afternoon charging Jeremy Rose, age 38, of Tremonton, with production of child pornography, possession of child pornography, and coercion and enticement.
Rose was arrested Thursday morning and had an initial appearance late this afternoon before U.S. Magistrate Judge Evelyn Furse. The indictment was unsealed at the hearing. Rose was released on conditions of supervised release and will have electronic monitoring.
Rose, a former Tremonton police officer, was prosecuted in state court following an investigation by the Utah Internet Crimes Against Children task force. He was sentenced to 270 days in jail and 36 months of probation in November 2014. He was also ordered to register as a sex offender and complete 60 hours of community service.
Federal prosecutors sought a Department of Justice waiver which allowed them to pursue federal charges against Rose for the conduct. Because the prior prosecution left substantial federal interests unvindicated, Utah prosecutors received authorization to prosecute Rose.
“In consultation with the Department of Justice and after careful deliberation, we believe that a federal prosecution is warranted given the facts of this case,” John W. Huber, U.S. Attorney for Utah, said today. “There are areas of criminal law where we share concurrent jurisdiction with state prosecutors. Production and possession of child pornography is one of those areas. This is not a decision we made lightly. However, given the serious nature of the alleged crime, we presented the case to a grand jury this week and will proceed with a federal prosecution of Mr. Rose,” Huber said.
The first count of the indictment alleges that between the spring of 2012 and June 2013, the defendant knowingly induced, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct. The second count of the indictment alleges possession of child pornography. The final count of the indictment alleges that Rose induced, enticed, and coerced an individual, who had not reached the age of 18, to engage in sexual activity for which a person can be charged with a criminal offense. The FBI has joined the investigation for the federal case.
The potential maximum penalty for production of child pornography is 30 years in prison with a minimum mandatory 15-year sentence. Possession of child pornography carries a maximum potential penalty of 10 years. The enticement and coercion count has a 30-year maximum sentence with a 10-year minimum mandatory sentence. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Grand Forks Man Sentenced for Possession and Receipt of Child PornographyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Dec. 14, 2015, Alan Douglas Eslinger, 44, Grand Forks, North Dakota, was sentenced before U. S. District Judge Ralph R. Erickson to serve 16 years in prison for one count of Receipt of Child Pornography and three counts of Possession of Child Pornography. Judge Erickson also sentenced Eslinger to serve a lifetime of supervised release and pay a $400 special assessment to the Crime Victims Fund.
This case came to the attention of law enforcement after an agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force (ICAC), discovered a computer geographically located in ND that was sharing child pornography in a peer-to-peer (P2P) network. Homeland Security Investigators traced the IP address to an industrial park located in northeast Grand Forks, ND. Working with the network administrator of the industrial park, BCI agents were able to pinpoint the specific location in the industrial park where Eslinger was operating his computer. Based upon this evidence, BCI Special Agents obtained and executed a search warrant for a garage leased by Eslinger in the industrial park. Seized as a result of the search warrant were various electronic media which contained more than 12,000 images and 900 videos of child pornography.
"Child pornography exists as a permanent record of the sexual exploitation of a child, and this victimization continues every time that image is transmitted, downloaded, shared or viewed," said William Lowder, acting special agent in charge of HSI St. Paul. "HSI special agents and our law enforcement partners take special pride in seeking justice on behalf of those children who have been sexually exploited and victimized.”
This was Eslinger’s second conviction for possessing child pornography. In 2007, Eslinger was dishonorably discharged from the Army after he was court martialed for possessing child pornography in 2001.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, the Grand Forks Police Department, and the Grand Forks Sheriff’s Department.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Garrett County Attorney Sentenced to Prison for Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles sentenced Angela M. Blythe, age 52, of Oakland, Maryland, today to a year and a day in prison, followed by three years of supervised release, for conspiring to commit bank fraud, bank fraud and two counts of making a false statement to a bank. Judge Quarles also entered an order requiring Blythe to forfeit $696,517 and pay restitution of $948,203.25. Blythe was convicted by a federal jury on October 9, 2015, after a nine day trial
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
Blythe was an attorney licensed to practice in Maryland and West Virginia, with an office in Oakland, Maryland. She was a settlement attorney in real estate transactions.
According to evidence presented at the nine day trial, from 2000 to 2005, Blythe conducted real estate settlements on at least seven occasions involving a co-conspirator whose identity she concealed from the financial institution loaning the funds for the transaction. Blythe filed mortgages on behalf of the co-conspirator, frequently at the last minute, which enabled her to pay the sales proceeds from the transaction to the co-conspirator and not to the named seller. Blythe recorded mortgages and deeds in Garrett County, Maryland and Preston County, West Virginia, which concealed her co-conspirator’s participation in the transactions and receipt of funds.
For example, in April 2004, Blythe transferred ownership of a restaurant/bed and breakfast which bordered on Deep Creek Lake for $0 consideration from her co-conspirator to a fictitious church trustee and church. Louis Strosnider subsequently applied for a mortgage loan of $2,250,000 to purchase the property. Blythe prepared a fraudulent settlement statement which stated that the bank was lending $1,725,000; the remainder of the purchase price was made up of a fictitious $750,000 down payment and $341,379.94 which Blythe was to collect from Strosnider at the settlement. According to the fraudulent settlement statement, Blythe was to pay a purported mortgage company $1,972,427.82 from the proceeds. At the closing in October 2004, Blythe failed to collect Strosnider’s funds as described in the settlement statement. In addition, she distributed the proceeds of the sale not to the fictitious trustee and church, but to her co-conspirator.
In a related case, Louis W. Strosnider, III, age 49, of Oakland, and Samuel R. VanSickle, a/k/a “Donald Blunt,” “Jacob Aiken,” “Allen Helms,” “Paul Walsh,” and “William Hall, Attorney,” age 51, of Accident, Maryland, were previously indicted on conspiracy and bank fraud charges. Strosnider previously pleaded guilty to his participation in the conspiracy and is awaiting sentencing. VanSickle has pleaded not guilty. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Philip A. Selden, who are prosecuting the case.
Fresno Woman Pleads Guilty to Conspiring to Structure More Than $100,000 in Proceeds of Drug TraffickingRead the Press Release
FRESNO, Calif. — Aseel Al-Saber, 24, of Fresno, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.
According to court documents, Al-Saber and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of marijuana that had been shipped from Fresno and other cities in California and sold in Florida and other states. Al-Saber’s bank account was used to deposit and withdraw more than $72,000 of marijuana trafficking proceeds in amounts of $10,000 or less to prevent Currency Transaction Reports from being filed by the banks, which are prepared for any transaction over $10,000 in cash. In addition, Al-Saber recruited two other individuals to have more than $30,000 in proceeds of marijuana trafficking funneled through their respective bank accounts. In total, members of the conspiracy structured transactions involving more than $7.5 million in drug trafficking proceeds.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn, Patrick R. Delahunty, and Jeffrey Spivak are prosecuting the case.
On February 11, 2015, Chad Riffle, 23, of Citrus Springs, Florida, was sentenced to five years in prison after pleading guilty to the structuring conspiracy. Jeremy Michael Murphy, 26, of Monroe, Ohio; Peter Capodieci, 24, of Crystal River, Florida; Miguel Gonzalez, 32, of Fresno; and Bree Benson, 21, of Citrus Springs, Florida, have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing.
Charges remain pending against Brandon Michael Thomas, 25, of Fresno, and. Ashley Starling Thomas, 28, of Lake Charles, Louisiana. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Al-Saber is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 28, 2016 at 8:30 a.m. The maximum statutory penalty for conspiracy to structure is five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Franklin Woman Sentenced to Two Years Probation for Social Security TheftRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Barbara Phillips, 66, of Franklin, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years of probation and fined $3,000 for theft of public money. She was also ordered to pay $31,496.37 in restitution to the Social Security Administration.
According to court records, from about August 2011 until December of 2013, Phillips withdrew social security funds being deposited in her deceased mother’s checking account. In all, Phillip’s stole over $31,000 by drafting checks to herself from the decedent’s account.
The investigation was conducted by the Social Security Administration Office of the Inspector General.
Fourth Defendant Pleads Guilty to Multi-Million Dollar Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a fourth defendant pleaded guilty in federal court today to his role in an elaborate fraud scheme in which conspirators impersonated representatives of Kansas City-based Cerner Corporation to entice dozens of physicians to invest more than $6 million, to sell an MRI to a Dallas area hospital for more than $1 million and to influence the outcome of several court proceedings.
David Hernon, 54, of Fishers, Ind. (formerly of Richardson, Texas), waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges him with participating in a conspiracy to commit wire fraud from Aug. 25, 2008, to Feb. 19, 2015.
Hernon is the fourth defendant to plead guilty. David Tayce, 66, of Lucas, Texas, and Richard Bryant, 40, and his wife, Christina Bryant, 40, both of Sachse, Texas, have also pleaded guilty to their roles in the conspiracy.
Co-conspirators created dozens of companies which were designed to impersonate existing credible industry leaders. For each company, co-conspirators created a meticulous infrastructure that became the foundation for their fraud. For example, co-conspirators registered an Internet domain similar to other existing company domains in order to make e-mail accounts appear legitimate, leased virtual office space in the city of the existing company, established telephone numbers in the area code of the existing company and impersonated actual people who worked for the real companies. Co-conspirators then used these fake “employee” identities as well as the identities of fictional employees to communicate with investors, conduct business transactions, and manipulate court proceedings. They provided fabricated documents, agreements, quotes, and invoices that purported to be from the fake and fictional employees.
One of the companies that the co-conspirators impersonated was Cerner Corporation, which is a global supplier of health care information technology solutions, services, devices, and hardware. Cerner, which has more than 14,000 employees globally, is headquartered at 2800 Rockcreek Parkway, North Kansas City, Mo.
Co-conspirators impersonated Cerner to obtain investments, conduct business transactions and manipulate court proceedings. For example:
-
Co-conspirators impersonated Cerner in the fraudulent sale of a purported newly developed MRI system to Dallas Medical Center, and then conspired to cover it up by providing false testimony during the litigation of a subsequent lawsuit. Co-conspirators convinced employees of Dallas Medical Center and Prime Health Care (which acquired the hospital during the course of the fraud scheme) that they were working with Cerner. As a result, Dallas Medical Center transmitted two wire payments to the co-conspirators’ bank account totaling $1,061,550.
-
Co-conspirators solicited investments from more than 50 physicians totaling over $6 million, from February 2012 to December 2013, based upon false representations of commitments of other customers and investors – including Cerner – along with false financial statements and projections. Co-conspirators showed MRI images that were altered to make the images appear to have been created by an “iHeart” machine when they were not. Co-conspirators showed physicians demonstrations of a Lux Imaging Systems MRI, which was represented to be brand new technology manufactured by Lux Imaging Systems. In reality, it was actually an MRI system put together with used components, which co-conspirators disguised by removing and concealing its original labels, and concealing that Lux Imaging Systems was an entity created and controlled by the co-conspirators.
-
Co-conspirators used this fraudulent infrastructure to manipulate the filing and settlement of the involuntary bankruptcy of CMI Holding Company, Inc., in the Northern District of Texas. Co-conspirators impersonated bondholders in filing the bankruptcy, and then continued to impersonate them throughout the negotiation of the settlement of the bankruptcy. Incredibly, the co-conspirators also impersonated an investor, which enabled them to participate in settlement discussions from the other side of the litigation as well. As part of this scheme, they used fabricated documents and communications purporting to be from Cerner to obtain a larger settlement. Co-conspirators also created an entity to receive the funds of the settlement in place of the bondholders, and later conspired to cover it up by providing false testimony in another case.
-
Co-conspirators used this fraudulent infrastructure to manipulate the trial of LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., in the Eastern District of Texas, by providing false testimony during the trial about Cerner and causing the admission of fabricated evidence purporting to be documents and agreements with Cerner in the trial.
Co-conspirators used this elaborate infrastructure of business entities, Web site domains, phone numbers, addresses, bank accounts and identities as a shield to prevent others from detecting their fraud, all while the co-conspirators continued to use this scheme repeatedly over several years to mislead new investors, new business partners and new courts.
Under federal statutes, Hernon, Tayce and the Bryants are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI.
-
Four Uvalde Texas Syndicate Members Sentenced to Life in Federal PrisonRead the Press Release
In Del Rio, a federal judge sentenced 29 Uvalde/Hondo-area Texas Syndicate (TS) members over the past two weeks to federal prison, including four defendants to life imprisonment, for various racketeering and drug trafficking offenses committed in Uvalde, San Antonio and the surrounding areas announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
United States District Judge Alia Moses sentenced TS members and Uvalde residents George “Curious” Sanchez, age 40; Raul “Fatboy” Rodriquez, age 42; Mike “Big Mike” Cassiano, age 39; and, Cristobal “Little Cris” Velasquez, age 37, to life in federal prison for conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute.
On April 2, 2015, jurors in Del Rio convicted Sanchez of conspiracy to violate the RICO statute. Evidence presented during his trial revealed that Sanchez, along with fourteen other TS members and associates, conspired since 2002 to commit three murders and distribute more than five kilograms of cocaine, 100 kilograms of marijuana and three ounces of methamphetamine. Jurors also found Sanchez guilty of conspiracy to commit murder in aid of racketeering and murder in aid of racketeering for the murder of Rogelio Mata on October 13, 2002, in Uvalde. Mr. Mata was murdered for his failure to follow TS rules.
On July 1, 2013, in a separate jury trial in Del Rio, Sanchez’s co-defendants Raul Rodriquez, Mike Cassiano and Cristobal Velasquez were convicted of conspiracy to violate the RICO statute. Rodriquez also was convicted of the substantive charge of violent crime in aid of racketeering for his role in the murder of Rogelio Mata. Velasquez was found guilty of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005 in Uvalde. Cassiano also was found guilty of two counts of conspiracy to commit violent crime in aid of racketeering for his role in the murder of Jose Guadalupe de la Garza and the November 9, 2009, murder of Jesse James Polanco in Uvalde. Judge Moses sentenced the remaining ten defendants, all of whom pleaded guilty prior to jury selection to conspiracy to violate the RICO statute, to prison terms ranging from five years to life. A 15th defendant, Inez Mata, pleaded guilty to the RICO conspiracy charge prior to jury selection. He died of natural causes in Uvalde in March 2015 while awaiting sentencing in this case.
In addition to the RICO defendants, 15 other TS members and associates were sentenced to federal prison for their roles in a drug trafficking enterprise. Eli Torres, age 39, of Uvalde, and Alfredo Tapia, III (aka “Naco”), age 44, of Hondo, were sentenced to 300 months and 240 months imprisonment, respectively, after a jury convicted them of conspiracy to possess with intent to distribute cocaine.
Jurors found that Torres participated in this drug distribution ring as a member of the TS prison gang using the gang’s drug distribution connections to aid him in obtaining cocaine to sell on the streets of Uvalde from August 1, 2009, until September 28, 2011. Torres was also found guilty of possession with the intent to distribute 500 grams or more of cocaine within 1,000 feet of the Sacred Heart Parish School in Uvalde.
Jurors also found Tapia guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana during that same time period. Drug transactions were conducted at Tapia’s home and on one occasion a person was held at gun point in Tapia’s backyard until that person paid his drug debt. Tapia was associated with members of the Texas Syndicate prison gang and facilitated their distribution of cocaine and marijuana.
The remaining 13 defendants, including former Bandera County Sheriff’s Deputy Thomas Cuellar, pleaded guilty prior to trial to conspiring to distribute controlled substances in the Uvalde and Hondo areas. In addition to the narcotics charges, Cuellar also pleaded guilty to unlawfully accessing a police department computer in order to obtain law enforcement information regarding the co-conspirators. Judge Moses sentenced Cuellar to 40 months incarceration while sentencing the others to federal prison terms ranging from 48 months to 151 months.
According to testimony at trial, the Texas Syndicate is a violent prison gang that has spread its influence into Texas cities and towns. Members of the Texas Syndicate are bound by a set of rules that ensure loyalty and participation in the enterprise’s criminal activities and are subject to strict and harsh discipline, including death, for violating the rules. The rules require that a member continue his participation in the organization even after his release from prison. Membership is for life and the gang comes first above all else, to include family.
The case resulted from a joint investigation by the Federal Bureau of Investigation with the Texas Department of Public Safety--Criminal Investigations Division, San Antonio Police Department, Medina County Sheriff’s Office and the Bandera County Sheriff’s Office. Also assisting in the investigation was the 38th Judicial District Adult Probation Gang Unit, Texas Department of Criminal Justice and the U.S. Bureau of Prisons. The U.S. Marshals Service, U.S. Immigration and Customs Enforcement-Customs and Border Protection and the Uvalde County Sheriff’s Department assisted in making the arrests. Assistant United States Attorneys Patrick Burke, Ralph Paradiso, Erica Giese and Matthew Watters handled this matter on behalf of the Government.
Former Stockbroker Pleads Guilty to Fraud and Tax EvasionRead the Press Release
BOSTON – A previously convicted former stockbroker pleaded today in U.S. District Court in Springfield in connection with an investment scheme which defrauded victims of more than $600,000.
Jeffrey Eldred Gallagher, 72, of Bradenton Beach, Fla., pleaded guilty to one count of wire fraud, three counts of engaging in an illegal monetary transaction and two counts of tax evasion. As alleged in the Information, in 1989, Gallagher was convicted in an earlier federal case of one count of mail fraud and three counts of interstate transportation of stolen property in connection with illegal options trading while he was a stockbroker at Paine Webber, Inc. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 29, 2016.
From at least 2008 through early 2012, Gallagher persuaded friends and associates to pay him money to invest on their behalf, and made promises that the investments would yield guaranteed returns of 10 to 15 percent. Gallagher then commingled investor funds with his own personal funds, and paid some investors with monies given to him by other investors. When investors asked Gallagher for the return of their investments, he provided numerous false explanations concerning his attempts to repay them, such as by falsely claiming that his mother, who is still alive, had died on several different dates. In a similar effort to stall for time, Gallagher wrote investors more than 40 bad checks totaling $1,783,375. In sum, 23 investors lost a total of approximately $617,475.
As part of the scheme, in 2009 and 2010, Gallagher used approximately $249,703 of investor monies for his personal benefit, but did not report any of this income on his federal income tax returns for those years.
The charges of wire fraud and engaging in an illegal monetary transaction each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of tax evasion provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Former Prison Guard Admits Smuggling Contraband into Philadelphia PrisonRead the Press Release
PHILADELPHIA – Joseph Romano, 31, previously employed at The Philadelphia Industrial Correctional Center (“PICC”) and the Riverside Correctional Facility, pleaded guilty today to attempted extortion which interfered with interstate commerce and two counts of attempted distribution of controlled substances. Romano agreed to deliver OxyContin pills to a prisoner in exchange for $1,000.
To obtain the contraband and payment, Romano arranged a meeting with the inmate’s purported associate at locations in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Romano, and Romano subsequently smuggled the contraband past prison security and delivered it to an inmate.
U.S. District Court Judge Paul S. Diamond remanded the defendant into federal custody and scheduled a sentencing hearing for March 14, 2016. Romano faces a statutory maximum sentence of 40 years in prison, possible fines, supervised release, and a $300 special assessment.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
Former Newport News School District Maintenance Worker Sentenced for Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Timothy Paul Morgan, 51, of Newport News, was sentenced today to 75 months in prison and five years of supervised release for receipt of child pornography.
Morgan pleaded guilty on Aug. 17, 2015. According to court documents, Morgan was identified by law enforcement investigating the trading of child pornography over peer-to-peer networks.
Beginning in August 2014, law enforcement download 13 complete files of suspected child pornography from an IP address registered to Morgan. A search warrant was executed at Morgan’s residence on Jan. 22, 2015, and his computer and external hard drive were recovered. Morgan admitted he had only one computer, he was the only person with access to it, and that he had downloaded child pornography using a peer-to-peer file sharing program found on the computer. A forensic exam of the computer and external hard drive revealed a total of 118 images and 55 videos depicting child pornography. The files dated back to 2004 and included images of young female minors engaging in sexual acts with an adult male.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr17.
Former Marshall running back sentenced in Federal court for cyberstalkingRead the Press Release
HUNTINGTON, W.Va. – A 23-year old former Marshall University running back from Hollywood, Florida, was sentenced today in federal court in Huntington, West Virginia, to two years in federal prison, announced United States Attorney Booth Goodwin. Kevin LaShawn Grooms, Jr., previously pleaded guilty in September of 2015 to cyberstalking. After Grooms is released from prison, he will be on supervised release for three years.
Grooms admitted to using a cell phone to send threatening messages to his ex-girlfriend beginning on March 24, 2015, and continuing into the early hours of the next day. Grooms sent the threatening messages using Instagram and text. Grooms further admitted that his conduct placed his ex-girlfriend in reasonable fear of death or serious bodily injury, and caused her to suffer substantial emotional distress. An investigation conducted by the Federal of Bureau of Investigation revealed that Grooms sent 158 messages to his ex-girlfriend within 8 hours of being released from the Western Regional Jail on March 24, 2015. Grooms was under a Domestic Violence Protection Order at the time he sent the messages. The messages sent by Grooms consisted of photographs and attached messages that mocked the strength of domestic restraining orders and repeatedly threatened his ex-girlfriend.
Grooms met his ex-girlfriend in September of 2012, when they were both enrolled at Marshall University. Grooms admitted to engaging in a pattern of activity that included stalking, threatening the use of a deadly weapon, and harassing and assaulting his ex-girlfriend throughout their relationship.
U.S. Attorney Booth Goodwin stated, “Those who use modern technology to stalk, threaten, and harass need to understand the seriousness of the crime. We will continue to investigate and prosecute these offenses. We will not tolerate such dangerous intimidation.”
The Federal Bureau of Investigation and the Huntington Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
-
Follow us on Twitter: SDWVNews
-
Former Glen Burnie Man Pleads Guilty to a Robbery Conspiracy and to the August 2014 Robbery of an Exxon Gas StationRead the Press Release
Baltimore, Maryland - Robin Tyrone Smith, age 27, formerly of Glen Burnie, Maryland, pleaded guilty today to a robbery conspiracy and to the armed robbery of an Exxon Station convenience store on August 7, 2014.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, Smith conspired with others to rob the Exxon Station convenience store located at 7898 Ridge Road in Hanover, Maryland on August 7, 2014. Specifically, on August 7, 2014, Smith, who was captured on video surveillance, entered the Exxon armed with a gun and shot the store clerk during the robbery. The store clerk died at the scene.
According to the plea agreement, the evidence would show that on the day before the Exxon robbery, Smith burglarized an apartment near his residence at the time. Items taken during the burglary included a .45 caliber Springfield Armory XD 45 firearm, .45 caliber hollow point ammunition, an X-box gaming system and games for the system. The stolen gun was used by Smith in the robbery. Also on August 6, 2014, Smith sold some of the stolen X-box games at a store located in the Arundel Mills Mall. Smith provided his Maryland State Identification card at the store and witnesses have identified Smith as the person who sold the stolen games on that date. Surveillance video from the store shows Smith wearing the same clothing and shoes as he wore during the Exxon robbery.
Clothing and other evidence connecting Smith to the robbery and murder was also seized as a result of the execution of several search warrants during the investigation.
Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to 40 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for March 1, 2016. Smith remains detained.
United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell and Matthew C. Sullivan, who are prosecuting the case.
Former Basketball Star Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Arthur Long, 42, of Rochester, NY, who was convicted after a jury trial of possession with intent to distribute methylone (Ecstasy) and marijuana, using a premises for drug trafficking and possession of a firearm in furtherance of drug trafficking crimes, was sentenced to 81 months in prison by Chief U.S. District Judge Frank P. Geraci.Assistant U.S. Attorneys Jennifer M. Noto and Robert A. Marangola, who handled the prosecution of the case, stated that in July 2013, the Rochester Police Department conducted an investigation that culminated in the execution of search warrants at the defendant’s home on Chi Mar Drive in Chili, NY. Officers also searched Long’s vehicle, a 1977 Cadillac Eldorado. During the execution of the warrants, investigators recovered ecstasy tablets and capsules containing Methylone, marijuana, an AK-47 rifle and a stolen .45 cal handgun, along with packaging materials.
The sentencing is the culmination of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Federal Detainee Sentenced for Importing “Molly” and then Smuggling Designer Drug into Essex Correctional FacilityRead the Press Release
Boston – A federal detainee being held at the Essex County Correctional Facility was sentenced today in connection with importing several kilograms of methylone, also known as “molly,” from China and distributing it in Massachusetts. He also admitted to smuggling a small quantity of the designer drug alpha-PVP, also known as “flakka,” into the Essex County Correctional Facility.
Harold Bates, 33, of Rockland, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 100 months in prison and three years of supervised release. In September 2015, Bates pleaded guilty to one count each of conspiracy to import methylone, importation of methylone, possession with intent to distribute methylone, and possession of a controlled substance by an inmate.
In October 2013, Bates began ordering substantial quantities of methylone over the Internet from his supplier based in China. Bates and the supplier discussed methods of concealing the drugs to avoid detection. When the methylone packages were shipped to Bates, the Chinese supplier included documents that falsely described the packages as containing samples of household items such as cosmetics with a value of $10 to $20 when, in fact, the drugs were worth considerably more.
Federal agents discovered Bates’s scheme and, in December 2013, obtained search warrants for two international packages. Both packages contained half a kilogram of methylone, which is a synthetic cathinone or “designer drug.”
In March 2014, Bates was arrested and charged with importing and distributing methylone. He was ordered detained and sent to the Essex County Correctional Facility. Shortly after Bates’s arrival, law enforcement officers learned that Bates had smuggled 4.70 grams of alpha-PVP, another synthetic cathinone (also known as “flakka”), into the facility by inserting the drugs into his rectum.
United States Attorney Carmen M. Ortiz; James V. Buthorn, Inspector in Charge of the U.S. Postal Inspection Service; Plymouth County District Attorney Timothy J. Cruz; Rockland Police Chief John R. Llewellyn; and Essex County Sheriff Frank G. Cousins, Jr., made the announcement today. The case is being prosecuted by Assistant U.S. Attorney James E. Arnold of Ortiz’s Narcotics and Money Laundering Unit.
Eustis Man Sentenced to More Than 37 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II has sentenced William Henry Keehn, II (52, Eustis) to 37 years and 6 months in federal prison for sexually exploiting children by producing and receiving child pornography. The Court also ordered him to pay restitution in the amount of $2,020 to the victims. Keehn pleaded guilty on June 30, 2015.
According to court documents, beginning as early as 2005, Keehn hid video cameras in the bathrooms of his former residence in order to obtain naked images of four minors in his custody. In 2014, Keehn sexually assaulted another minor in his custody and recorded that abuse using his computer. Keehn also received and collected hundreds of images depicting the sexual abuse and exploitation of minors from at least 2008 until the day before his arrest, on February 17, 2015.
“The sentencing in this case reflects the dedication and teamwork between FDLE’s Cyber Crimes Task Force and HSI,” said Danny Banks, special agent in charge of FDLE’s Orlando Regional Operations Center. “It is so important to ensure that individuals prosecuted for child exploitation and abuse are brought to justice, our job is to make sure that happens.”
"As this sentence makes clear, those who abuse our children face serious consequences," said Susan L. McCormick, special agent in charge of HSI Tampa. "The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. That is why we owe it to all children affected by these cases to work tirelessly to seek answers, and ultimately – justice."
This case was investigated by the Florida Department of Law Enforcement Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Dominican Man Pleads Guilty to Identity TheftRead the Press Release
BOSTON – Daniel Araujo Guerrero, 36, of the Dominican Republic, pleaded guilty today in U.S. District Court in Boston to fraudulently using the identity of an American citizen. U.S. District Judge Denise J. Casper scheduled sentencing for Jan. 5, 2016.
In July 2014, Guerrero, who resided in Lawrence, went to the Massachusetts Registry of Motor Vehicles and submitted an application for a license using a name and Social Security number belonging to an individual from Puerto Rico.
The charge of identity theft provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated by the Homeland Security Investigations Document and Benefit Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney David G. Tobin and Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Departments of Justice and Homeland Security Announce Joint Guidance to Employers on Internal Form I-9 AuditsRead the Press Release
The Department of Justice’s Civil Rights Division and the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE) announced today the issuance of a joint Guidance for Employers Conducting Internal Employment Eligibility Verification Form I-9 Audits.
Under the Immigration and Nationality Act (INA), employers are required to verify the work-authorization of their employees using the Form I-9 and are prohibited from knowingly hiring unauthorized workers. Employers seeking to ensure their Form I-9 practices comply with federal law are increasingly conducting internal audits of their Forms I-9. To ensure that these audits are conducted properly and do not discriminate against employees, ICE and OSC have collaborated to issue formal guidance on the topic.
“Employers have a responsibility to ensure their Form I-9 practices are in compliance with the Immigration and Nationality Act,” said Director Sarah Saldaña of ICE. “If used properly, audits can be an effective tool to achieve this end.”
“Today’s guidance provides critical information for employers to ensure that their internal audits of I-9 forms are conducted fairly and accurately, without discrimination or retaliation against their employees,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Without clear and effective guidelines, internal audits can create barriers to employment for work-authorized individuals.”
The joint guidance was developed by the two agencies with significant input from the Department of Homeland Security’s Office of Civil Rights and Civil Liberties, the U.S. Citizenship and Immigration Services, the Department of Labor, the National Labor Relations Board, the Equal Employment Opportunity Commission and stakeholders around the country.
This guidance is part of the six-month action plan of the Interagency Working Group for the Consistent Enforcement of Federal Labor, Employment and Immigration Laws (interagency working group). The interagency working group’s goals are to enhance coordination in those cases where federal responsibilities to enforce labor, employment and immigration laws may overlap; to ensure that workers who cooperate with labor and employment enforcement may continue to do so without fear of retaliation; to ensure that unscrupulous parties do not attempt to misuse immigration enforcement or labor laws to thwart or manipulate worker protections or labor and immigration enforcement; and to ensure the effective enforcement of these laws.
Among other things, the guidance provides employers with information regarding the scope and purpose of audits; considerations before conducting internal audits; details regarding how to correct errors, omissions or other deficiencies found on Forms I-9 and how to cure deficiencies related to E-Verify queries; and guidance regarding the anti-discrimination mandate. The joint guidance can be found on DHS’s website https://www.ice.gov/sites/default/files/documents/Document/2015/i9-guidance.pdf and on the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) website /media/807576/dl?inline.
ICE is responsible for enforcing the employer sanctions provision of the INA, and OSC enforces the anti-discrimination provision of the statute. For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc.
Colombian Alien Smuggler Sentenced to 11 MonthsRead the Press Release
ALBANY, NEW YORK – Daniel Humberto Pulido-Mojica, age 30, a citizen of Colombia, was sentenced on Friday to serve 11 months in prison for alien smuggling, announced United States Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.
In August, Pulido-Mojica pled guilty before United States District Court Judge David N. Hurd to transporting aliens unlawfully present in the United States. Judge Hurd also sentenced Pulido-Mojica to a two-year term of supervised release, to begin after his release from jail.
Pulido-Mojica, a lawful permanent resident of the United States living in Corona, New York, was prosecuted after he was encountered by Border Patrol just south of the international border between the United States and Canada near Champlain, New York. He was driving a van and transporting five illegal aliens. Pulido-Mojica had pulled up to the border shortly after midnight on June 20, 2015 and picked up the five aliens who had just illegally crossed the border from Canada on foot. Pulido-Mojica intended to drive the aliens to New Jersey, but he was stopped and arrested, together with his passengers.
The smuggled aliens, Brianth Steven Pineda Vallejo, age 23, from Colombia, Jacqueline Roberta Costa, age 39, of Brazil, Rafael Da Conceicao Santos, age 25, of Brazil, Miguel Eduardo Jara Elgueta, age 26, of Chile and Vipan Saini, age 38, of India, were also prosecuted. All but Costa were convicted of the misdemeanor offense of entry without inspection. Costa was convicted of the felony offense of re-entry of a removed alien.
This case was investigated by the U.S. Border Patrol and prosecuted by Edward P. Grogan.
Chicago Couple Sentenced for Multi-Million Dollar State Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A Chicago couple convicted nearly one year ago of taking millions of dollars in state grant funds for their personal benefit and use was sentenced today. U.S. District Judge Richard Mills ordered Leon Dingle, Jr., 78, to serve six years in the federal Bureau of Prisons, to be followed by three years of supervised release. Leon Dingle was also ordered to pay restitution in the amount of $2,900,000 to the Illinois Department of Public Health. Leon Dingle’s wife, Karin, 76, was sentenced to three years in federal prison and ordered to pay $2,100,000 in restitution jointly and severally with her husband. Both were ordered to report to the Bureau of Prisons within 90 days to begin serving their respective sentences.
Judge Mills ordered that $1,093,380 from the sale of various assets belonging to the Dingles, currently in the custody of the U.S. Clerk of the Court, be applied toward payment of the restitution ordered.
Nearly one year ago, on Dec. 17, 2014, a jury convicted Leon and Karin Dingle following a weeks-long trial. Evidence presented by the government demonstrated that the Dingles used non-profit organizations as straw grantees to fraudulently solicit and obtain more than $11 million in grant funds awarded by the Illinois Department of Public Health. The majority of the grant funds were non-competitively awarded and paid up-front, for programs related to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness.
During the time of the fraud scheme, from 2004 to June 2010, the Dingles owned and operated the for-profit corporation known as Advance Health, Social and Educational Associates, Inc., (AHSEA). Leon Dingle served as the president, CEO, treasurer, and sole shareholder of AHSEA; Karin Dingle served as vice-president and secretary.
Cheko’s Crew/7th Street Gang Members Plead Guilty to Rico, Admit Roles in Two MurdersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jordan Hildalgo, 24, and Ritchie Juarbe, 25 both of Buffalo, NY, pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison, a $250,000 fine, or both.“This case demonstrates that when it comes to murder – or indeed any gang activity – our Office will pursue relentlessly until every perpetrator is brought to justice,” said U.S. Attorney Hochul.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendants were members of the Cheko’s Crew/7th Street Gang which was responsible for multiple acts of violence and the distribution of illegal narcotics on the West Side of Buffalo between 2000 and 2012. The narcotics included heroin, crack cocaine, cocaine, and marijuana.
The defendants admitted their roles in the murders of two people:
• On November 6, 2008, Hidalgo and Juarbe went to Raquan Lloyd’s house where Hidalgo shot and killed Lloyd. After the murder, Juarbe discarded the murder weapon, throwing it into the Niagara River.
• On August 11, 2009, Hidalgo participated in the murder of Eric Morrow, a rival 10th Street Gang member, who was shot and killed at the corner of West and Auburn Avenues in Buffalo. Following the murder, Hidalgo got into a getaway vehicle driven by Ritchie Juarbe.A total of 18 defendants have been charged in this case. To date, 14 have been convicted.
The pleas are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
The defendants will be sentenced on April 7, 2016 at 12:30 p.m. before Judge Arcara.
California Man Pleads Guilty to Money Laundering Charge in KansasRead the Press Release
WICHITA, KAN. – A California man pleaded guilty Monday to a federal money laundering charge in Kansas, U.S. Attorney Barry Grissom said.
Andris Cukurs, 69, Glendale, Calif., pleaded guilty to one count of conspiracy to commit money laundering. In his plea, he admitted that on Nov. 14, 2014, he was carrying $314,855 in cash in his car when he was stopped on I-70 by the Dickinson County Sheriff’s Department. Cukurs had an agreement with another person to deliver the money, which he knew was derived from the distribution of drugs.
Sentencing is set for March 3. Both parties have agreed to recommend a sentence of 30 months in federal prison. Grissom commended the Kansas Highway Patrol, the Dickinson County Sheriff’s Department, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
Barbour County, WV man convicted of methamphetamine traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Daniel Lee Canter, 30, of Volga, West Virginia, was convicted of methamphetamine trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Canter was discovered in possession of methamphetamine in November 2014 in Lewis County, West Virginia. He pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Lewis County Sheriff’s Department and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Alien Smuggler Sentenced to 9 MonthsRead the Press Release
ALBANY, NEW YORK – Christopher Square, age 29, of Kahnawake, Quebec, Canada, was sentenced on Friday to serve 9 months in prison for alien smuggling, announced United States Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.
In August, Square pled guilty before United States District Court Judge David N. Hurd to transporting aliens unlawfully present in the United States. Judge Hurd also sentenced Square to serve a two-year term of supervised release, to begin after his release from prison.
Square, a dual citizen of the United States and Canada, was prosecuted after he was encountered by Border Patrol on May 3, 2015 just south of the international border between the United States and Canada near Fort Covington, New York with three illegal alien passengers in the van he was driving. Square was observed driving near the border on the Akwesasne Mohawk Indian reservation, and then leaving the reservation and driving toward Fort Covington. When a marked Border Patrol vehicle approached the van Square was driving, Square pulled off the road and stopped, and three people were seen exiting the van and hiding nearby. Square was promptly stopped and arrested. The three people who exited his van were found hiding nearby and they were detained as aliens unlawfully present in the United States.
Two of the smuggled aliens, Ruie Huang, 28, from China, and Bi Rong Chen, 37 of Canada, were convicted of the misdemeanor offense of entry without inspection.
This case was investigated by the U.S. Border Patrol and prosecuted by Edward P. Grogan
34 Individuals Facing Federal and Tribal Charges Relating to Methamphetamine Trafficking on the Mescalero Apache ReservationRead the Press Release
Thirty-four individuals are facing federal and tribal drug charges as the result of an 18-month multi-agency investigation spearheaded by the Drug Enforcement Administration (DEA) and Bureau of Indian Affairs (BIA) into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives are charged in six indictments and a criminal complaint filed in the U.S. District Court for the District of New Mexico in November and December 2015. Sixteen other members of the Mescalero Apache Tribe are charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014 in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization allegedly led by Lorenzo Saenz, a member of the Mescalero Apache Tribe, which distributed methamphetamine within the Reservation. It later expanded to include two other drug trafficking organizations in southern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the reservation.
In August 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which 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. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
“Methamphetamine has a disproportionate devastating impact on tribal communities, accounting for up to 40 percent of violent crime on reservations,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “This investigation is an example of the Justice Department’s commitment to working with Tribal Governments to improve the safety of Native communities and increase awareness of the dangers of methamphetamine use.”
“I want to thank the BIA’s Division of Drug Enforcement and Office of Justice Services, the DEA and the U.S. Attorney’s Office for the many, many hours they put forth during this investigation,” said President Danny Breuninger of the Mescalero Apache Tribe. “Before and since taking Office as the President of the Mescalero Apache Tribe, I heard complaints from our Tribal Members and saw the pain and suffering caused by illegal drug use and sales on our Reservation. Many of our young people are being poisoned by methamphetamine and lives are being shattered by senseless drug-related injuries and deaths. As the leader of my Tribe, it is my job to do all I can to preserve the safety and welfare of our people and to preserve our culture, traditions and customs. The great majority of our Tribal Members are great people who work hard every day to support their families and raise their children with the values and traditions that have been passed down generation after generation. But continuing to do this is very hard when our Tribal Members’ lives are being torn apart by illegal drug use. I call on the federal government, including the President, the Attorney General and Congress, to continue supporting and working with BIA and tribal police departments in these types of collaborative efforts throughout Indian Country. Thank you again for all of the support and dedication in serving the Mescalero Apache Tribe.”
Saenz and four other members of the Mescalero Apache Tribe are charged in four federal indictments with distributing methamphetamine within the Mescalero Apache Reservation. Saenz and a co-defendant are alleged to have participated in a methamphetamine trafficking conspiracy during which they sold methamphetamine to undercover agents on multiple occasions. Saenz was one of two federal defendants arrested on Dec. 11, when 13 of the 16 tribal defendants were also arrested. A third federal Mescalero Apache defendant is in state custody on unrelated charges and the remaining two have yet to be arrested.
Thirteen non-Natives, alleged members of two drug trafficking organizations that supplied the methamphetamine distributed within the Mescalero Apache Reservation, are charged in two other federal indictments and a federal criminal complaint. Eight of the non-Natives are charged with methamphetamine trafficking and money laundering offenses in a 24-count indictment; three are charged with methamphetamine trafficking offenses in a five-count indictment; and two are charged with methamphetamine trafficking offenses in a criminal complaint. Eight of the non-Natives have been arrested, two are in state custody on unrelated charges and three have yet to be arrested.
“The DEA and Bureau of Indian Affairs dismantled three drug trafficking organizations distributing methamphetamine on the Mescalero Apache Reservation and across southeastern New Mexico,” said Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division. “This is our warning to others who think they can hide their crimes on Tribal Lands: we are coming for you.”
“The BIA would like to thank the DEA and the U.S. Attorney’s Office for an outstanding collaborative effort that shows the resolve of our law enforcement partners to address the issue of illicit drug use in Indian Country and their dedication to provide safe communities for Indian people,” said Special Agent in Charge William McClure of District IV of BIA’s Office of Justice Services. “The many hours and resources that went in to this operation have increased the safety of tribal community members and reduced their fear of the danger posed by these individuals charged and their associates.”
“Methamphetamine continues to have a devastating effect on Native American families and communities throughout Indian Country,” said Regional Agent in Charge Gary Cunningham of BIA’s Division of Drug Enforcement. “The results of this multi-agency investigation are a great example of what can be accomplished when the Bureau of Indian Affairs and other federal, state and local law enforcement agencies combine efforts and resources to remove these drug trafficking organizations from our communities. Indian Country is grateful for these partnerships and BIA will continue to work with our law enforcement partners to aggressively remove these negative elements from our communities.”
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force.
The following additional agencies assisted the investigating agencies with law enforcement operations on Nov. 20 and Dec. 11: U.S. Marshals Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, New Mexico State Police, HIDTA Interagency Metro Narcotics, New Mexico National Guard, Chaves County Metro Narcotics Task Force, Pecos Valley Drug Task Force, Alamogordo Police Department, Ruidoso Police Department, Socorro Police Department Sunland Park Police Department and Tularosa Police Department.
Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases and Mescalero Tribal Prosecutor Alta Braham is prosecuting the tribal cases.
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
***media Advisory***Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, President Danny Breuninger of the Mescalero Apache Nation, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Assistant Special Agent in Charge John R. Burge of District IV of the BIA’s Office of Justice Services will hold a press conference to discuss charges recently filed pursuant to two federal initiatives on MONDAY, DECEMBER 14, 2015 AT 11:30 A.M. at the Las Cruces office of the DEA. No further information will be released until the press conference.
WHO: U.S. Attorney Damon P. Martinez for the District of New Mexico
President Danny Breuninger of the Mescalero Apache Nation
Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division
Assistant Special Agent in Charge John R. Burge of District IV, BIA Office of Justice Services
Gary Cunningham, Regional Agent in Charge, BIA’s Division of Drug Enforcement
WHAT: Announcement of Results of Significant Investigation in Mescalero Apache Nation and Southern New Mexico
WHEN: MONDAY, DECEMBER 14, 2015, 11:30 A.M.
WHERE: DEA Office
2290 E. Griggs Avenue
Las Cruces, NM 88001
OPEN PRESS
NOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 11:15 am. Inquiries regarding logistics should be directed to Laila Rico at 915-832-6074 or 915-892-4733 or [email protected].
11 December 2015
Waldorf Man Indicted in Scheme to Export Firearm Parts and AccessoriesRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Brian Thomas Platt, age 39, of Waldorf, Maryland, for illegally attempting to export and exporting firearms parts and other items designated as defense articles. The indictment was returned on December 7, 2015 and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office; and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
To further the security and foreign policy of the United States, the export from the United States of certain items designated as defense articles is controlled. Before exporting defense articles, the exporter is required to obtain an export license and identify the nature of the defense articles to be exported, the end-recipient and the purpose for which they are intended.
According to the three count indictment, on the following occasions, Platt exported and caused the exportation of the following firearm parts and accessories designated as defense articles on the U.S. Munitions List, without first obtaining the required licenses and authorizations: on June 24, 2014, an Uzi trigger group and two Uzi top covers, from the United States and destined to France; on August 14, 2014, three M-16 selectors, three M-16 disconnectors, three M-16 auto sear assemblies and three M-16 hammers from the United States and destined to Thailand; and on October 4, 2014, an 18 ½ inch IMI Factory Galil 5.56mm barrel from the United States and destined for Finland.
Platt faces a sentence of 20 years in prison on each of three counts for unlawful export of defense articles. An initial appearance was held on December 8, 2015 and Platt was released under the supervision of U.S. Pretrial Services. Platt is scheduled to be arraigned in U.S. District Court in Greenbelt on December 21, 2015 at 3:00 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, DCIS and ATF for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mara Zusman Greenberg, who is prosecuting the case.
Two Montreal Men Sentenced for Possession of Counterfeit Access Devices at the Highgate Springs Port of EntryRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Boris Alfonsa Caro-Silva, 25, and Idriss Bedhiaf, 26, both of Montreal, Canada, were sentenced today in Burlington for possession of at least fifteen counterfeit access devices when they attempted to enter the United States at the port of entry in Highgate Springs, Vermont in December 2014. U.S. District Judge Geoffrey W. Crawford sentenced both men to time-served and a fine. Caro-Silva and Bedhiaf each paid a fine in the amount of $2,000 prior to the sentencing hearing.
According to court records, on December 13, 2014, U.S. Customs and Border Protection officers encountered Caro-Silva and Bedhiaf as they attempted to enter the United States at the Highgate Springs port of entry. After referring the men to secondary inspection, officers discovered forty-five prepaid MasterCard and Tim Horton’s gift cards between the two men. The cards contained numbers written in black marker across the back. Caro-Silva acknowledged that the cards contained other individuals’ credit card information, and that he intended to withdraw whatever cash he could from ATMs and return a portion of the proceeds to another individual who had given him the cards in the Montreal area. Bedhiaf maintained that he had found the cards on the sidewalk near his home and was traveling to New York City to go shopping. Utilizing a credit card reader, law enforcement determined that the information contained on the cards’ magnetic strips did not correspond to the numbers printed on the face of the cards. Caro-Silva and Bedhiaf were arrested and charged with possession of counterfeit access devices.
This matter was investigated by Homeland Security Investigations and Customs and Border Protection. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Caro-Silva was represented by Elizabeth K. Quinn of the Federal Defender’s Office, and Bedhiaf was represented by Michael J. Straub.
Thomas Martinez Pleads Guilty to Federal Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – 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) announced today that Thomas Martinez, 26, of Albuquerque, N.M., pleaded guilty this morning to federal carjacking and firearms charges. Under the terms of his plea agreement, Martinez will be sentenced within the range of 20 to 35 years in prison followed by a term of supervised release to be determined by the court.
The U.S. Attorney said that Martinez was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. “As a general matter, this initiative targets violent and repeat offenders based on their prior criminal convictions. Periodically, we prosecute individuals who do not have any prior convictions because they are alleged to have engaged in extraordinary violent conduct that seriously jeopardized the community’s safety,” said U.S. Attorney Martinez. “Federal prosecution of Martinez under the initiative is based on his one-day violent crime spree on July 22, 2015.”
Martinez was charged with carjacking and firearms offenses in a criminal complaint filed on July 23, 2015. He subsequently was indicted on Aug. 11, 2015, and charged with two counts of carjacking and two counts of brandishing and discharging a firearm during a crime of violence. According to the indictment, Martinez committed all four crimes on July 22, 2015, in Bernalillo County, N.M., as he attempted to evade APD officers who were seeking to arrest him on a warrant arising out of an unrelated state court case.
Court filings reflect that Martinez committed the first carjacking as he attempted to flee from officers who were conducting surveillance in the vicinity of a hotel in northeast Albuquerque. Martinez ran to a sedan occupied by a driver and three children as the driver was entering a ramp onto Interstate 40. Martinez brandished a firearm at the driver, pushed the driver into the sedan’s passenger seat, and used the sedan to continue his flight from the officers. The children were able to get out of the vehicle before Martinez drove away with the driver. An APD officer who was attempting to prevent the carjacking was dragged by the Chevrolet as Martinez drove away. As Martinez continued his flight, the driver of the sedan attempted to get Martinez to stop the vehicle, and Martinez responded by discharging the firearm in an attempt to shoot the driver. When Martinez slowed down, the driver was able to jump out of the sedan.
Martinez continued his flight in the sedan and abandoned the vehicle in a neighborhood in southeast Albuquerque. There Martinez forced his way into another vehicle which was occupied by an older man seated in the front passenger seat. As Martinez began to drive away, another man confronted Martinez, got into the vehicle, and began fighting with Martinez. During the fight, Martinez attempted to discharge his gun at the man. Shortly thereafter, the man was able to disarm Martinez, and Martinez was arrested by APD officers on state charges.
Martinez was arrested on the federal charges on Oct. 7, 2015, after he was transferred from state custody to federal custody. The related state charges against Martinez have been dismissed in favor of federal prosecution.
During today’s proceedings, Martinez pled guilty to two counts of carjacking and one count of discharging a firearm during a crime of violence. Martinez remains in federal custody pending his sentencing hearing which has yet to be scheduled.
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 the “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on prior criminal convictions 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.
Texas and Florida Residents Indicted for Retail Fraud SchemeRead the Press Release
BOISE - Alejandro Hidalgo, 26, Dilcia Martinez-Marquez, 25, Enrique Matos-Herrera, 29, Luis Mejias-Fiz, 25, and Jose Salazar-Quintana, 29, of Amarillo, Texas, and Eslay Monzon, 42, of Homestead, Florida, were indicted by a federal grand jury on December 8, 2015, for their participation in a pre-paid debit card retail fraud scheme, U.S. Attorney Wendy J. Olson announced. Hidalgo, Matos-Herrera, Mejias-Fiz, Monzon, and Salazar-Quintana are each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Martinez-Marquez is charged with conspiracy to commit wire fraud and wire fraud. The Defendants were arraigned on December 10, 2015, and trial has been set for February 2, 2016, before Senior U.S. District Judge Edward J. Lodge.
The Indictment charges the defendants with devising a scheme to defraud retail stores in Idaho by materially false and fraudulent pretenses, representations, and promises. The indictment alleges that the defendants traveled to Idaho for the purpose of executing their scheme, rented hotel rooms, and traveled to numerous retail stores in the Boise area on October 14 and 15, 2015. Additionally, the indictment alleges that the defendants made purchases of merchandise and gift cards using pre-paid debit cards that they had re-encoded with unauthorized debit card account numbers belonging to unknowing card holders.
Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony.
The case was investigated by the Meridian Police Department and the United States Secret Service.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tampa Man Sentenced to More Than 19 Years for Transporting A Minor Across State Lines to Engage in Sexual ActivityRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven has sentenced Stephen Farris Underwood (47, Tampa) to 19 years and 7 months in federal prison for transporting a minor across state lines to engage in sexual activity.
According to court documents, Underwood traveled from Tampa to Missouri to meet a minor with whom he had been corresponding online. Underwood picked the boy up from a Missouri shopping center and transported him to his residence in Florida. It was Underwood’s intent that he and the minor would live together as a couple in Tampa. Underwood engaged in numerous sex acts with the minor while he was at his home. The parents of the minor, who was 15 at the time, did not give Underwood permission to leave the state with their son.
This case was investigated by the Hillsborough County Sheriff’s Office, the Mountain View (Missouri) Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Summit County councilwoman indicted for allegedly taking bribesRead the Press Release
A Summit County councilwoman was named in an 11-count federal indictment, charged with taking cash bribes and other things of value in exchange for official actions, including help with court cases, impeding a pending IRS investigation and assistance obtaining a liquor license, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Tamela Lee, 57, of Akron, was indicted on six counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement.
“The charges in this case are extremely serious, because our public officials owe the community the highest level of integrity and honesty,” Dettelbach said. “Working with the FBI, we will continue to pursue corruption allegations so that the public can trust its elected officials.”
“Ms. Lee and the three other defendants must be held accountable for their crimes,” Anthony said. “She was supposed to lawfully represent the people that elected her, but rather, was motivated by her own self interests. The FBI will continue to root out public corruption, whether it is elected officials that violate their oath and the law or citizens that bribe them to do so.”
Three others were also indicted.
Omar Abdelqader, 49, of North Canton, was indicted on seven counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and two counts of making false statements to law enforcement.
Abdelrahman Abdelqader, 42, of Canton, was indicted on two counts: obstruction of justice and making false statements to law enforcement. Samir Abdelqader, 19, of Fairlawn, was indicted on one count of making false statements to law enforcement.
Omar Abdelqader was affiliated with several convenience stores and other businesses in the Akron area, including the Bi-Rite on Diagnonal Road. Abdelrahman Abdelqader is his brother and Samir Abdelqader is his nephew, according to the indictment.
Lee solicited and accepted things from Omar Abdelqader, including money, loans, campaign contributions, home improvements, home maintenance and consumer goods. These were provided directly by Omar Abdelqader, or through Bi-Rite, according to the indictment.
In return, Lee performed and promised to perform official acts for Omar Abdelqader and other businesses in Akron for which he served as a conduit to Lee. These actions included helping Omar Abdelqader and his designees navigate government bureaucracy, achieve favorable outcomes in judicial and administrative proceedings and obtain streamlined access to information, according to the indictment.
For example, on July 5, 2013, Lee caused to be sent a letter to the State of Ohio Liquor Control Commission on behalf of Person 7’s store, recommending approval of a liquor license application.
On June 8, 2014, Omar and Samir Abdelqader discussed Samir obtaining a bond regarding criminal charges he was facing. About 40 minutes later, Omar and Lee discussed the councilwoman emailing or calling the judge. On June 12, Lee called Judge 2’s chambers several times. The next day Lee asked Omar for money, and he directed her to the Bi-Rite to collect the money, according to the indictment.
On June 14, 2014, Lee sent a text message to Omar informing him that the judge and bailiff returned her call. She then sent a text message to Omar stating: “I am going to bed, I am angry and frustrated and broke…bye,” according to the indictment.
Later that day, Omar instructed Lee to send her daughter to the Bi-Rite to pick up cash. Three days later, Lee spoke to Judge 2 and told the judge she was related to Samir Abdelqader, according to the indictment.
In July 2014, Lee and Omar spoke repeatedly about fundraising for her campaign. Omar told Person 9 that he had collected $800 in donations for Lee. Omar explained the Lee provided service. “In other words, I am keeping her because we need her, man,” Omar told Person 9, who responded: “She is better than an attorney to us!” according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Linda Barr following an investigation by the Federal Bureau of Investigation, with assistance from the Akron Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only charge and 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.
Statement of Manhattan U.S. Attorney Preet Bharara on the Convictions of Former New York State Senate Majority Leader Dean Skelos and His Son Adam SkelosRead the Press Release
“The swift convictions of Sheldon Silver and Dean Skelos beg an important question – how many prosecutions will it take before Albany gives the people of New York the honest government they deserve?”
Six Indicted in Alleged Mortgage Fraud, Bank Fraud, Identity Theft SchemeRead the Press Release
PROVIDENCE, R.I. – A 22-count federal grand jury indictment unsealed in U.S. District Court in Providence on Thursday charges six individuals, including a Rhode Island real estate attorney, a real estate agent, a licensed loan originator, a former loan officer, a loan processor and a real estate investor, with allegedly participating in a conspiracy to obtain money they were not entitled to from financial institutions and individuals through mortgage loans, residential property sales and fees.
The indictment represents the latest federal charges to be filed in a wide-ranging series of ongoing investigations by the United States Attorney’s Office, the U.S. Department of Housing and Urban Development Office of Inspector General, the U.S. Secret Service and the Rhode Island State Police Financial Crimes Unit into alleged mortgage fraud in Rhode Island.
According to the indictment returned on Wednesday, it is alleged that between 2007 and 2014, the defendants conspired to execute a scheme which caused prospective homebuyers to obtain mortgages from financial institutions based upon materially false loan applications and fraudulent supporting documentation. It is also alleged that as part of the conspiracy, false representations were made in order to obtain fees to which the defendants were not entitled or to make a profit selling property in which they had an ownership interest. It is further alleged that in some instances, thousands of dollars were fraudulently obtained by misrepresenting on a Housing and Urban Development form the amount of funds due or to be paid to one of the parties involved in a transaction.
It is alleged that in numerous instances, the defendants concealed their involvement in the scheme by conducting business under the names of several different entities and individuals. It is alleged that at times, the defendants used stolen identities to further the fraud and to conceal their connection to the real estate transactions.
The indictment is announced by United States Attorney Peter F. Neronha; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The indictment charges:
-
Attorney Louis Marandola, 41, of Providence, R.I., with one count of conspiracy, five counts of bank fraud, three counts of wire fraud and six counts of aggravated identity theft.
-
Brian R. McCaffrey, 38, of East Greenwich, R.I., a licensed loan originator, with one count of conspiracy, two counts of bank fraud and two counts of aggravated identity theft.
-
Raffaele M. Marziale, 41, of Bristol, R.I., a former loan officer, with one count of conspiracy, two counts of bank fraud and two counts of aggravated identity theft.
-
Lauren Sienko, 33, of Rehoboth, Mass., a loan processor, with one count of conspiracy, two counts of bank fraud and one count of aggravated identity theft.
-
Gina M. Ronci Mohamed, 45, of Lincoln, R.I., a licensed real estate agent, with one count of conspiracy, two counts of bank fraud, two counts of aggravated identity theft, and one count of false statement.
-
Edwin Rodriguez, 35, of Pawtucket, R.I., a real estate investor, with one count of conspiracy, once count of bank fraud, two counts of aggravated identity theft and two counts of witness tampering.
Attorney Louis Marandola, Edwin Rodriquez and Lauren Sienko were released on unsecured bond following their arraignment on Thursday before U.S. District Court Magistrate Judge Patricia A. Sullivan. Brian McCaffrey, Raffaele Marziale and Gina Ronci Mohamed were released on unsecured bond following their arraignment today before Magistrate Judge Patricia A. Sullivan. Not guilty pleas were entered on behalf of all of the defendants.
An indictment is merely an allegation 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. This indictment reflects the most recent charges filed by the U.S. Attorney’s Office in a wide-ranging series of ongoing investigations into alleged mortgage fraud in Rhode Island.
In September, Franchesco Franco, 34, of Providence, a former mortgage loan originator, pleaded guilty to conspiracy to commit bank fraud. Franco admitted to participating in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to him who is deceased.
In a separate matter, it is alleged that Dylan T. Kelly, 40, of Providence, whose real estate appraiser’s license expired in September 2008, continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of a licensed appraiser without his permission or knowledge. Kelley is charged by way of an information with false statements on a loan application.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and William J. Ferland.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
-
Seventeen Defendants Targeted in A Criminal Complaint Alleging Broad-Ranging Drug Trafficking ConspiracyRead the Press Release
SAN FRANCISCO – Seventeen defendants were named in a federal criminal complaint alleging a criminal conspiracy to traffic heroin announced Acting United States Attorney Brian J. Stretch, Drug Enforcement Administration Special Agent in Charge John J. Martin, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth.
The complaint, unsealed today, alleges the following defendants participated in the conspiracy:
- Eutimio Reyna-Ceron, aka "Tony" aka "Gordo" aka "Little Tony"
- Marcelino Reyna-Ceron, aka "Anthony Rodriguez," aka "Anthony Rodriguez Carrillo"
- Cornelio Reyna-Ceron, aka "Carlos Alberto Mondragon-Guzman"
- Elizabeth Reyna-Rodriguez, aka "Lisa”
- Ramon Medina, aka "Mon"
- Remigio Madrigal Solorio, aka "Mingo"
- Santiago Rubio Chavez, aka "Calamargo"
- Rodolfo Rivera Herrera, aka "Fito"
- Raymundo Doval-Duran, aka "Brian"
- Cristino Vargas Mondragon, aka "Kiti" aka "Kiki" aka "Kitz"
- Julio Cesar Barbosa, aka "Montana”
- Brigido Rangel
- Angel Gudino-Urbina, aka "Ramon Gudino-Urbina"
- Robert Erickson
- William Anderson, aka "Billy"
- Jaime Sandoval, aka "Cajas"
- Valentin Camacho Toledo, aka "Leobardo Carillo Mondragon," aka "Arturo Hernandez Salazar”
According to the complaint, beginning in August of 2014 or earlier, the defendants conspired with one another to manufacture, possess, and distribute heroin. The complaint describes a sophisticated operation including the receipt, processing and distribution of the drugs.
Eutimio Reyna-Ceron is alleged to have managed the day-to-day distribution operation by, among other things, taking calls from customers and dispatching couriers to deliver drugs to the customers. He is alleged to have directed the distribution of about a kilogram of heroin per week. According to the complaint, Marcelino Reyna-Ceron allegedly managed the money generated by the illegal drug proceeds with the help of Elizabeth Reyna-Rodriguez, who maintained the group’s bank accounts. Marcelino Reyna-Ceron also allegedly obtained cars for the couriers to use when distributing the drugs. Cornelio Reyna-Ceron is alleged to have sold drugs to confidential government informants and to have delivered money to suppliers. Defendants Medina, Solorio, and Chavez are alleged to have been couriers who processed, prepared and delivered the drugs.
Defendants Herrera and Doval-Duran are alleged to have run separate distribution networks and to have shared intelligence with Eutimio Reyna-Ceron regarding sources of supply and law enforcement activity in their area. Herrera and another drug dealer who is alleged to have frequently purchased heroin from him, Robert Erickson, are charged with distributing heroin that resulted in the overdose death of a Santa Rosa woman in September.
Defendants Toledo, Mondragon, and Sandoval are alleged to have taken part in the conspiracy by supplying the organization with drugs. Mondragon and his lieutenants, Rangel and Gudino, were arrested in an August 12, 2015, raid. In that raid, law enforcement agents found over twenty kilograms of heroin and just under ten kilograms of 99.1% pure methamphetamine hidden in secret compartments inside car tires in Mondragon’s garage. On the same day, officers also arrested Barbosa, who worked as a courier for Mondragon. William Anderson is alleged to have been a frequent customer of Mondragon, purchasing an ounce of heroin each day for resale to others.
The complaint charges that all defendants were engaged in a conspiracy to distribute one kilogram of heroin or more, in violation of 21 U.S.C. § 846, which carries a ten-year mandatory minimum sentence. Additionally, a number of defendants were also charged with violation of 21 U.S.C. § 841(a)(1) for distribution or possession with intent to distribute heroin. The maximum statutory penalty for a violation of 21 U.S.C. §841(a)(1) and 846 is life imprisonment and a fine of $10,000,000. Herrera and Erickson are charged with distribution of heroin resulting in death, which carries a twenty-year mandatory minimum sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Most of the defendants were taken into custody during raids that took place at ten separate locations yesterday. The locations included five Santa Rosa homes, as well as homes in Manteca, Modesto, Rohnert Park, San Jose, and Newman, Calif. An additional defendant, Jose Ricardo Chavez-Yanez, was arrested and charged with possession with intent to distribute methamphetamine after he was allegedly found “attempting to flush suspected methamphetamine down the drain of a sink in the garage,” during the raid of one of the homes. All the defendants, with the exception of Gudino-Urbina and Erickson made an initial appearance today before the Honorable Sallie Kim, United States Magistrate Judge. Gudino-Urbina is a fugitive and Erickson currently is incarcerated on other charges. The defendants will appear before the court again in a series of further hearings that will begin on Tuesday, December 15, 2015.
The prosecution is the result of a two-year joint investigation by the Drug Enforcement Administration, Internal Revenue Service, and Santa Rosa Police Department. The prosecution team is also thankful for the efforts of the Sonoma County District Attorney’s Office whose support provided valuable assistance.
Rochester Man Pleads Guilty to Arson ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Matthew L. Mateo, a/k/a Red, 26, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to arson of a commercial building. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years, a fine of $250,000 or both.Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that on September 22, 2013, Mateo and Eddie L. Vaughn, a/k/a Elbow, transported Molotov cocktails to the Miami Deli Grocery at 176 Genesee Street in Rochester. Vaughn broke the store window with a brick. Mateo and Vaughn then lit a Molotov cocktail which Vaughn threw into the store. The Molotov cocktail exploded upon hitting the store floor and spread fire throughout the building. The interior and exterior of the store were burned and extensively damaged.
Vaughn has also been convicted of arson.
Today’s plea is the culmination of an investigation conducted by the Arson Task Force, which is comprised of Investigators of the Rochester Fire Department, Rochester Police Department, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mateo will be sentenced on March 15, 2016 at 3:30 p.m. before Judge Geraci. Vaughn is scheduled to be sentenced February 3, 2016 at 3:00 p.m., also before Judge Geraci.
Qatar Military Official and Wife Plead Guilty to Federal ChargesRead the Press Release
In San Antonio today, a military official from Qatar pleaded guilty to visa fraud and his wife pleaded guilty to misprision of a felony involving two domestic employees who were also citizens of foreign countries announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI) in San Antonio.
According to court records, 46-year-old Hassan Al-Homoud and his 39–year-old wife, Zainab Al-Hosani, a citizen of the United Arab Emirates, along with their children, currently reside in San Antonio while Al-Homoud is attending military training at Camp Bullis. In mid-2014, the defendants allegedly brought with them to the U.S. two females--a housemaid and a servant who worked for the family. The housemaid is a citizen of Indonesia; the servant is a citizen of Bangladesh. Both were in the U.S. on visas sponsored by Al-Homoud. By pleading guilty, the defendants admitted that they falsified the documents required to secure the visas for the two women.
The workers’ circumstances were discovered by an officer of the San Antonio Police Department in early April, when he encountered one of the workers in apparent distress along Camp Bullis Rd. This led law enforcement officers to a nearby apartment occupied by the workers, furnished with only a pallet on the floor for sleeping.
Statutorily, the defendants face up to ten years in federal prison. However, pursuant to the plea agreement, provided the terms and conditions are satisfied including restitution to each of the victims, Al-Houmoud will be placed on probation for five years, and his wife for three years. Both remain on bond pending sentencing scheduled for February 9, 2016, before United States District Judge Orlando Garcia in San Antonio. Further, in accordance with the plea agreement, both of them will be immediately removed from the U.S. following sentencing.
This case was investigated by Homeland Security Investigations (HSI) in San Antonio. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
Portland Man Sentenced to Three Years for Crack Cocaine Distribution ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Samuel Collins, 47, of Portland, Maine, was sentenced today to three years in prison and three years of supervised release in connection with charges of conspiring to distribute cocaine base, often referred to as crack cocaine.
Court records reveal that between December 2013 and January 2015, Collins conspired with others to sell crack cocaine in Portland, Maine. Members of the conspiracy would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors who would sell the drugs in the Portland area. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from Collins and determined that Collins let other members of the conspiracy sell drugs from his apartment.
Marco Gordon previously was sentenced to eleven years in connection with this conspiracy and Robert Joiner, Jr. was sentenced to three years. Several other members of the conspiracy have entered guilty pleas and await sentencing.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation, the Portland, South Portland, Biddeford, and Lewiston Police Departments, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Drug Enforcement Administration. The Maine Drug Enforcement Agency and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Owner of Harwood Heights Home Health Care Company Indicted in Medicare Fraud and Kickback SchemeRead the Press Release
CHICAGO — The owner of a Harwood Heights home health care company paid kickbacks to marketers in exchange for referring elderly patients to the company for unnecessary treatment funded by Medicare, according to a 17-count federal indictment announced today.
The indictment alleges that JACQUELINE TUANQUI paid kickbacks to marketers to induce the referral of Medicare beneficiaries to her company, Hexagram Home Health Care LLC. Tuanqui paid the bribes even though some of the patients did not qualify for the in-home treatment her company provided, according to the indictment. Medicare paid Hexagram at least $450,000 for treatment rendered to patients who were referred there as a result of a kickback, the indictment contends.
Tuanqui, 53, of Bartlett, is charged with one count of conspiracy to pay or receive healthcare kickbacks, and eight counts of paying kickbacks to induce referrals of Medicare beneficiaries.
In addition to Tuanqui, an outside marketer was also charged in the scheme. SUSIE AVELLANOSA, the owner of Elgin-based Allied Care Services Inc., received payments from Tuanqui in exchange for referring non-homebound Medicare beneficiaries to Hexagram, according to the indictment. Avellanosa, 57, of Elgin, is charged with one count of conspiracy to pay or receive healthcare kickbacks, and eight counts of receiving kickbacks in return for referring Medicare beneficiaries.
Tuanqui and Avellanosa pleaded not guilty yesterday during arraignments before U.S. Magistrate Judge Mary M. Rowland. Their next court appearance is scheduled for Jan. 28, 2016.
The indictment contends that the scheme began in approximately November 2012 and lasted until approximately April 2014. As part of the conspiracy, Tuanqui and Avellanosa signed written contracts that were designed to conceal the true nature of the kickback agreement, which called for Avellanosa to be paid for supplying a pre-determined number of patients to Hexagram per month, according to the indictment. The written agreements fraudulently stated that Avellanosa would be paid based on the number of hours she worked, without any mention of the true nature of the scheme, the indictment states.
The kickback and kickback conspiracy counts are punishable by up to five years in prison and a $250,000 fine. If convicted, restitution is mandatory and the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was returned last month and unsealed yesterday. It was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.
The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Department of Justice and HHS to prevent fraud and to enforce anti-fraud laws around the country.
The government is represented by Trial Attorney Brooke Harper of the Justice Department’s Criminal Division Fraud Section.
To report healthcare fraud or to learn more about it, logon to: StopMedicareFraud.gov.
Indictment
Oregon Couple Sentenced to Prison for Tax CrimesRead the Press Release
EUGENE, Ore. – Billy J. Williams, Acting U.S. Attorney for the District of Oregon, announced that a Coos County couple was sentenced yesterday to federal prison for tax crimes they were convicted of in October 2014.
Ronald Joling, 72, and Dorothea Joling, 73, both of Coquille, Oregon, were found guilty of conspiracy to defraud the United States by obstructing the Internal Revenue Service (IRS) in its attempt to collect a substantial tax debt owed by the Jolings. Ronald Joling was additionally convicted of tax evasion and filing false income tax returns.
Evidence at trial detailed the Jolings’ illegal efforts over close to twenty years to keep the IRS and the Oregon Department of Revenue from collecting almost $2 million they owed in back taxes, penalties and interest. The Jolings’ efforts to thwart the IRS included their use of sham trusts, a corporation sole, bank accounts in the names of nominees, a warehouse bank, bogus money orders, bills of exchange, bonds, and filing false tax returns with the IRS. When those efforts failed, the Jolings resorted to intimidation tactics and threats. Witnesses testified at trial that in response to attempts to collect taxes owed, the Jolings threatened them with arrest, criminal prosecution and lawsuits. In one instance, the Jolings took out a newspaper advertisement in the Coquille Valley Sentinel accusing a local government employee of malfeasance just for performing her job. The Jolings also filed retaliatory bogus liens against federal judges, the federal court clerk’s office, and federal prosecutors who were involved in the criminal case. A federal grand jury has indicted the Jolings for filing these liens and that separate criminal case is pending.
Rather than pay their taxes, the Jolings spent about $750,000 on a motel and restaurant in Coquille and tracts of land in Linn County. They attempted to conceal their interest in these properties from the IRS by placing them in sham trusts.
After the Jolings were convicted at trial in October 2014, Chief U. S. Judge Ann Aiken ordered them to return to court in April 2015 for sentencing. The Jolings refused and instead fled Oregon. Arrest warrants were issued, and in October 2015 the United States Marshals Service located and apprehended the Jolings in Clarkdale, Arizona.
At yesterday’s hearing Judge Aiken ordered Ronald Joling to serve 97 months and Dorothea Joling to serve 48 months in prison. Each defendant must also pay more than $1.2 million to the IRS in outstanding federal taxes.
Acting U.S. Attorney Williams noted, “This is an egregious case. Not only did the Jolings refuse to pay their fair share of taxes like the rest of us, they retaliated against federal employees who were just doing their jobs. After a jury convicted them at trial, they cowardly refused to show up for sentencing and fled the state. They were fugitives for six months, requiring additional resources to locate and arrest them in Arizona. They are now in custody and will serve their appropriately lengthy sentences.”
This case was investigated by the IRS, Criminal Investigation, with assistance from the U.S. Marshal’s Service. It was prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Chris Cardani.
Nine Charged in $6 Million Dollar Broward Telemarketing Securities Fraud SchemeRead the Press Release
A Miami federal grand jury indicted nine individuals for operating a Broward County telemarketing scheme (“a boiler room”) that targeted investors throughout the country and ultimately defrauded them out of $6.6 million dollars.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and the Securities and Exchange Commission (SEC), made the announcement.
Thomas A. Guerriero, 39, of Deerfield Beach, Diana P. Lovera (D. Lovera), 32, of Deerfield Beach, Victor Lovera (V. Lovera), 28, of Deerfield Beach, Edward R. Sachs, 56, of Boca Raton, Andrew J. Bourdeaux, 28, of Davie, Joseph Loish, 58, of Pompano Beach, Steven Goldstein, 60, of Sunrise, Steven Sharaf, 63, of Pembroke Pines, and Frank Penaloza, 29, of Pompano Beach, were charged by indictment with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Additionally, Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, and Goldstein are charged with substantive counts of mail and/or wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343. Guerriero is also charged with witness tampering and obstruction of justice, during the course of an SEC investigation, in violation of Title 18, United States Code, Sections 1005 and 1512(b)(1).
U.S. Attorney Wifredo A. Ferrer stated, “Securities fraud jeopardizes the financial well-being of our citizens. The U.S. Attorney’s Office and our enforcement partners will continue to identify for prosecution, those individuals who use deception, scare tactics and undue pressure to strip others of their hard-earned financial investments.”
“This case demonstrates our commitment to rooting out fraudsters who bilk millions of dollars from investors every year,” said George L. Piro, Special Agent in Charge, FBI Miami. “Criminals are always devising new methods to defraud unsuspecting investors. Accordingly, we are continuously adapting our investigative techniques in order to hold them accountable for their unscrupulous actions.”
According to allegations contained in the indictment Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, Goldstein, Sharaf, and Penaloza solicited investors throughout the United States to buy stock shares of Oxford City Football Club, Inc. (“Oxford City”), a Deerfield Beach, Florida corporation that claimed to manage a portfolio involving sports, education, media, and real estate businesses. The defendants sold stock directly from the company in private placement offerings.
The indictment alleges that from July 2013 through July 2015, the defendants conspired to misappropriate investor money for their personal benefit by making false statements, during the course of a telemarketing scheme, regarding the Oxford City stock. According to the indictment, the defendants used high-pressure, strong-armed tactics to intimidate and coerce individuals to invest in Oxford City. Over the course of the scheme, the defendants and their co-conspirators caused over 150 individuals to buy shares of Oxford City restricted stock for approximately $6.6 million.
Today, the SEC announced parallel civil charges against Guerriero and Oxford.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorney Kevin B. Hart from the Antitrust Division of the Department of Justice.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.