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10 December 2015
Guilty Plea of Greenville ResidentRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Luis Santiago, Special Agent in Charge of the United States Fish and Wildlife Service, announced that:
Gene Stock, 36, of Greenville, Mississippi, pled guilty on December 8, 2015, before United States Magistrate Judge David A. Sanders, in Aberdeen, Mississippi, to one charge of Taking Migratory Game Birds by the Aid of Bait and to a second charge of Aiding and Abetting others to do the same, in violation of federal law. The guilty plea arose out of an investigation concerning Stock’s hunting practices during the 2014-2015 waterfowl season. Stock, who had planted corn in his duck impoundment in Washington County, had, during the course of the season, used his ATV to drive throughout the impoundment for the purpose of going to and from his hunting blinds, retrieving downed waterfowl, and moving blinds from one location to another. In the process of driving his ATV through the impoundment, Stock knocked down stalks of standing corn, spreading grain throughout the impoundment. Federal law makes it unlawful to hunt migratory waterfowl over any area where agricultural crops have been manipulated, including manipulation by any motorized vehicle, unless the manipulation consists of a normal agricultural practice as defined by the state extension service.
Following his guilty plea, Stock was ordered to pay a $15,000.00 fine for each count of conviction, for a total fine of $30,000.00.
“We are committed to working with Mississippi and its citizens to conserve and protect wildlife,” said United States Fish and Wildlife Service Special Agent in Charge Santiago. “Our collective efforts help ensure that these resources will be here for future generations of fair chase hunters, trappers and outdoor enthusiasts.”
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries and Parks (MDWFP). MDWFP Chief of Law Enforcement, Steve Adcock stated that he looks forward to the continued cooperative relationship with the United States Fish and Wildlife Service as together we protect and conserve Mississippi’s natural resources.
Grant Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CLINTON LAMONT CRAWLEY, age 38, of Grant, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM AND AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000 fine or both.
Charges arose from an investigation by the Choctaw County Police Department, Choctaw Tribal Police and the Federal Bureau of Investigation. The defendant was indicted in November, 2015.
The Indictment alleged that On or about October 10, 2015, within the Eastern District of Oklahoma, the defendant, CLINTON LAMONT CRAWLEY, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
Four More Individuals Sentenced in Large a-PVP ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Four more individuals involved in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in northeast Tennessee, southwest Virginia and western North Carolina have been sentenced to serve time in federal prison by the Honorable Pamela L. Reeves, U.S. District Court Judge.
Brian Edward Hawkins, 44, of Kingsport, Tenn., was sentenced to serve 99 months; Brett Thomas Carroll, 30, of Kingsport, Tenn., was sentenced to serve 90 months; Tony Ray Norton, 27, of Greeneville, Tenn., was sentenced to serve 110 months; and Kendra Michelle Poe, 28, of Church Hill, Tenn., was sentenced to serve 63 months. Thirteen others who were previously sentenced in this conspiracy received prison sentences ranging from 110 to 235 months.
According to the plea agreements on file with U.S. District Court, the combined aggregate total of a-PVP stipulated to by Hawkins, Carroll, Norton and Poe was approximately 14,300 grams. Police reports filed as exhibits to sentencing memoranda document that in September 2015 Hawkins led officers on a high speed car chase reaching over 100 mph. Hawkins later admitted in his plea agreement that he ran from the police on that occasion and swallowed approximately 20 grams of a-PVP to avoid getting caught with it.
A-PVP is a synthetic drug, primarily ordered from China, which is commonly referred to on the street as “gravel” or “flakka.” Common effects on users include: extreme paranoia; hallucinations; elevated blood pressure; extremely high body temperature; excited delirium; staying awake for days; hostility and having exceptional strength without apparent fatigue. These are many of the characteristics of the drug that make it very dangerous for the user but also for law enforcement responding to people who are high on it. A-PVP has been referred to by users of the substance as “meth on steroids.”
Law enforcement agencies participating in this investigation included the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; Sullivan County Sheriff’s Office; Kingsport Police Department; Hawkins County Sheriff’s Department; Johnson City Police Department; Greeneville, Tennessee Police Department; Hendersonville, North Carolina Police Department; and Scott County, Virginia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Four Modesto Residents Indicted on Drug Conspiracy ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count indictment today against Juan Carranza, 23; Jose Carranza-Pompa, 57; Lorenzo Carranza-Pompa, 48; and Maria Carranza, 44, all of Modesto, charging them with a conspiracy to distribute and possess with intent to distribute cocaine, heroin, and methamphetamine; distribution of cocaine; distribution of methamphetamine; distribution of heroin; and possession with intent to distribute heroin, United States Attorney Benjamin B. Wagner announced.
According to the indictment, from February 9, 2014, to December 2, 2015, the defendants conspired to distribute cocaine, heroin, and methamphetamine in Modesto. Each defendant is alleged to have sold narcotics on multiple occasions throughout that time period. The defendants were arrested on December 2, 2015, in Modesto.
This case is the product of an investigation by the Modesto Police Department Gang Unit, the Modesto Narcotics Enforcement Team, the Stockton Police Department, the Ceres Police Department, the Stanislaus Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Melanie Alsworth and Daniel Griffin are prosecuting the case.
If convicted, Juan Carranza, Jose Carranza-Pompa and Lorenzo Carranza-Pompa face a statutory penalty of five to 40 years in prison, and a $5 million fine. Maria Carranza faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort Hall Man Pleads Guilty to Selling MethRead the Press Release
POCATELLO – Charles Eugene Allhands, 52, of Fort Hall, Idaho, pleaded guilty yesterday in United States District Court to one count of possession with intent to distribute a controlled substance, U.S. Attorney Wendy J. Olson announced. Allhands was indicted on October 27, 2015.
According to the plea agreement, on March 8, 2015, Allhands sold methamphetamine to an individual at Allhands’ residence on the Fort Hall Indian Reservation.
The charge of possession with intent to distribute methamphetamine is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and at least three years of supervised release.
Allhands is scheduled to be sentenced on March 2, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department, the Bingham County Sheriff’s Office, and the Federal Bureau of Investigation.
Former Rochester Tax Preparer Sentenced for Preparing False ReturnsRead 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 Jason R. Pastore, 34, of Yonkers, NY, formerly of Rochester, NY, who was convicted of preparing false tax returns, was sentenced to 12 months in prison and ordered to pay restitution totaling $144,604.00 to the Internal Revenue Service by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated the defendant operated a tax return business known as JRP Tax Consultants in Rochester. Pastore, without the knowledge of clients, prepared fraudulent federal income tax returns. Specifically, the defendant reported false charitable contributions and un-reimbursed employee expenses on Schedule A, and false business deductions on Schedule C. As a result, clients received tax refunds to which they were not entitled.
For the tax years, 2008, 2009, and 2010, Pastore prepared approximately 234 fraudulent returns which resulted in the Internal Revenue Service paying more than $400,000 in tax refunds to which the clients were not entitled. The defendant also prepared and filed fraudulent tax returns for himself during the same time period.
The sentencing is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office.
Former Philadelphia Police Officer Convicted of Running Counterfeit Credit Card OperationRead the Press Release
PHILADELPHIA – A federal jury, today, returned guilty verdicts on all counts against Rahim Henderson, 38, of Philadelphia, PA, in connection with a counterfeit credit card manufacturing operation. Henderson, a former Philadelphia Police Officer, was convicted of conspiracy, wire fraud, access device fraud, and multiple counts of aggravated identity theft.
Between April 2014 and October 2014, Rahim Henderson used a credit card encoding machine – a machine used to encode a victim’s stolen credit card account information onto a different credit card’s magnetic stripe – so that, when swiped during a merchant transaction, the victim’s credit card account would be charged. Henderson manufactured the credit cards, and he and his co-conspirators used the cards to make fraudulent purchases at commercial establishments in and around the Philadelphia region. In addition to possessing a credit card encoding machine, the defendant also possessed and stored a credit card embossing machine, a credit card printing machine, computer equipment, hundreds of blank plastic credit cards, various re-encoded credit cards and gift cards, and over $67,000 in US currency in the home that he shared with his wife and co-defendant Tian Larode. The defendant obtained the stolen victim credit card account information via the internet, using his Yahoo! email account to purchase and obtain the stolen credit card account information from unidentified sellers.
U.S. District Court Judge John R. Padova scheduled a sentencing hearing for March 10, 2016. Henderson faces a mandatory minimum term of two years in prison with a maximum statutory sentence of 74 years in prison, a possible fine, a $1,200 special assessment, and three years of supervised release. Henderson’s co-conspirators, his wife Tian Larode and his sister Waliyda Henderson, pleaded guilty and are awaiting sentencing.
The case was investigated by the United States Secret Service and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney James A. Petkun.
Former Owner of Mortgage Lending Company Sentenced to 42 Months in Prison for Bank FraudRead the Press Release
Ordered to pay $10,689,587 restitution
Submitted fraudulent funding requests for nonexistent mortgage loans
LOUISVILLE, Ky. – The former owner of an Orange County, California mortgage lending company was sentenced to 42 months in prison today, by Chief District Judge Joseph H. McKinley Jr., and ordered to pay restitution in the amount of $10,689,587 for devising a scheme to defraud National City Bank of $12,744,678 of money under its control, by submitting fraudulent funding requests for nonexistent mortgage loans announced United States Attorney John E. Kuhn, Jr.
In 2007 and 2008, Brady Bunte owned and operated Trust One Mortgage, a mortgage lender located in Orange County, California. Trust One Mortgage funded mortgages by maintaining a warehouse line of credit with various banks, including National City Bank. National City Bank was a federally insured financial institution. Its warehouse lending offices were located in Louisville, Kentucky. As a warehouse lender, National City Bank provided revolving, short-term loans, known as warehouse lines of credit, to mortgage lenders.
In 2007 and 2008, Trust One Mortgage maintained a revolving warehouse line of credit with National City Bank to fund mortgages. In order to obtain funding from National City Bank for a particular mortgage, Trust One Mortgage submitted a funding request to National City Bank’s warehouse lending offices in Louisville, Kentucky. Once National City Bank received the funding request via fax or electronic request, it transferred the funds to the account specified by Trust One Mortgage in the funding request. National City Bank required Trust One Mortgage to pay off each specific loan within a set number of days. As part of its business, Trust One Mortgage sold or attempted to sell the individual mortgages to third-party investors.
From March 2007 through November 2008, Bunte caused Trust One to submit fraudulent funding requests on its warehouse line of credit to National City Bank. The fraudulent funding request caused National City Bank to incur a loss of $12,744,678.16. Bunte made approximately $2,000,000 in payments to National City Bank which reduced the restitution owed to $10,689,587.
Bunte was charged in a sealed indictment on September 18, 2014 and arraigned on the charge on September 29, 2014, in U.S. District Court located in Santa Ana, California.
This case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Former New Jersey Resident Admits He Conspired to Provide Material Support to ISILRead the Press Release
NEWARK, N.J. – A former resident of Bergen County, New Jersey, today admitted that he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, U.S. Attorney Paul J. Fishman, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division announced.
Nader Saadeh, 20, of Rutherford, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiring with others to provide material support to ISIL. He remains detained without bail.
“Nader Saadeh is the last of the three defendants charged in the District of New Jersey in this case to admit his role in trying to provide material support to a known terrorist organization,” U.S. Attorney Fishman said. “ISIL is intent on threatening the safety of Americans here and abroad, and we and our law enforcement partners are just as intent on stopping them.”
“Nader Saadeh conspired with others, including his brother, to travel to Syria to join ISIL,” Assistant Attorney General Carlin said. “Counterterrorism is the National Security Division’s highest priority and we will continue to hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
“Today in the District Court of New Jersey Nader Saadeh admitted he conspired to provide material to the Islamic State of Iraq and the Levant (ISIL),” FBI Special Agent in Charge Richard M. Frankel said. “He is one of three New Jersey men who conspired to travel overseas to join ISIL but were stopped by the outstanding work of the Newark FBI’s Joint Terrorism Task Force. I ask the citizens of New Jersey to remain vigilant and contact the FBI if they see or hear something suspicious.”
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that prior to his arrest on Aug. 10, 2015, by the FBI-Newark Joint Terrorism Task Force (JTTF), he planned to travel overseas to join ISIL along with others. Saadeh discussed his plans to join ISIL with his brother, Alaa Saadeh, Samuel Rahamin Topaz, Munther Omar Saleh, and Fareed Mumuni, and admitted that at various times each of them indicated that they wanted to join ISIL. Saadeh also admitted that he and these other men watched ISIL-related videos, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIL as enemies.
On May 5, 2015, Saadeh departed the United States with plans to travel overseas to join ISIL in furtherance of the conspiracy, according to his statements in court today. Saadeh admitted that once he reached ISIL-controlled territory he intended to fight on behalf of ISIL. Saadeh further admitted that Saleh assisted him by giving him a contact who would facilitate his travel from Turkey to ISIL in Syria.
Saadeh admitted that prior to his departure from the United States Saleh showed him technical drawings for making homemade bombs. Saadeh admitted that Saleh and Mumuni discussed plans to carry out an attack in ISIL’s name using homemade bombs at locations in New York City, including Times Square, the World Trade Center, and Vaughn College of Aeronautics and Technology, in Queens, New York.
Saadeh admitted knowing that ISIL was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes, and executing individuals who did not obey ISIL’s commands.
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000. Sentencing is scheduled for March 18, 2016.
Saadeh’s alleged conspirators are being prosecuted and are currently in federal custody. On Sept. 9 and Oct. 29, 2015, respectively, Topaz and Alaa Saadeh pleaded guilty before Judge Wigenton to conspiring to provide material support to ISIL. Saleh and Mumuni have been indicted on terrorism-related charges brought by the U.S. Attorney’s Office for the Eastern District of New York.
The charges and allegations against Saleh and Mumuni are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman and Assistant Attorney General Carlin credited special agents of the FBI, under the direction of Special Agent in Charge Frankel in Newark, and the Newark JTTF with the investigation leading to today’s guilty plea. The JTTF is made up of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and New York City Police Department, among other federal, state, and local law enforcement agencies.
The government is represented by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta, and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Defense counsel: Frank P. Arleo Esq., West Orange, New Jersey
Former New Jersey Resident Admits Conspiring to Provide Material Support to ISILRead the Press Release
A former resident of Bergen County, New Jersey, today admitted that he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division.
Nader Saadeh, 20, a former resident of Rutherford, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton of the District of New Jersey in Newark to an information charging him with one count of conspiring with others to provide material support to ISIL. He remains detained without bail.
“Nader Saadeh conspired with others, including his brother, to travel to Syria to join ISIL,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
“Nader Saadeh is the last of the three defendants charged in the District of New Jersey in this case to admit his role in trying to provide material support to a known terrorist organization,” said U.S. Attorney Fishman. “ISIL is intent on threatening the safety of Americans here and abroad, and we and our law enforcement partners are just as intent on stopping them.”
“Today in the District Court of New Jersey Nader Saadeh admitted he conspired to provide material to the Islamic State of Iraq and the Levant (ISIL),” said Special Agent in Charge Frankel. “He is one of three New Jersey men who conspired to travel overseas to join ISIL but were stopped by the outstanding work of the Newark FBI’s Joint Terrorism Task Force. I ask the citizens of New Jersey to remain vigilant and contact the FBI if they see or hear something suspicious.”
According to documents filed in this and related cases and statements made in court:
Saadeh admitted that prior to his arrest on Aug. 10, 2015, by the FBI Joint Terrorism Task Force (JTTF), he planned to travel overseas to join ISIL along with others. Saadeh discussed his plans to join ISIL with his brother, Alaa Saadeh, Samuel Rahamin Topaz, Munther Omar Saleh and Fareed Mumuni, and admitted that at various times each of them indicated that they wanted to join ISIL. Saadeh also admitted that he and these other men watched ISIL-related videos, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIL as enemies.
On May 5, 2015, Saadeh departed the United States with plans to travel overseas to join ISIL in furtherance of the conspiracy, according to his statements in court today. Saadeh admitted that once he reached ISIL-controlled territory he intended to fight on behalf of ISIL. Saadeh further admitted that Saleh assisted him by giving him a contact who would facilitate his travel from Turkey to ISIL in Syria.
Saadeh admitted that prior to his departure from the United States, Saleh showed him technical drawings for making homemade bombs. Saadeh further told the court that Saleh and Mumuni discussed plans to carry out an attack in ISIL’s name using homemade bombs at locations in New York City, including Times Square, the World Trade Center and Vaughn College of Aeronautics and Technology, in Queens, New York.
Saadeh admitted knowing that ISIL was a designated foreign terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIL’s commands.
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a maximum potential penalty of 15 years in prison and a fine of $250,000. Sentencing is scheduled for March 18, 2016.
Saadeh’s alleged conspirators are being prosecuted and are currently in federal custody. On Sept. 9 and Oct. 29, 2015, respectively, Topaz and Alaa Saadeh pleaded guilty before Judge Wigenton to conspiring to provide material support to ISIL. Saleh and Mumuni have been indicted on terrorism-related charges brought by the U.S. Attorney’s Office of the Eastern District of New York. The charges and allegations against Saleh and Mumuni are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman and Assistant Attorney General Carlin credited special agents of the FBI, under the direction of Special Agent in Charge Frankel in Newark, and the JTTF with the investigation leading to today’s guilty plea. The JTTF is made up of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and New York City Police Department, among other federal, state, and local law enforcement agencies.
The government is represented by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Nader Saadeh Information
Nader Saadeh Plea Agreement
Former Head of Offshore Brokerage Pleads Guilty to Conspiracy to Commit International Stock Fraud and Money Laundering ScamsRead the Press Release
ALEXANDRIA, Va. – Harold Bailey Gallison II, 58, of Valley Center, California, pleaded guilty today to two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market.
In a statement of facts filed with the plea agreement, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison further admitted that he facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline). Through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
Gallison was charged in an indictment unsealed on July 14, 2015, and will be sentenced on March 18, 2016. Several of Gallison’s co-defendants are scheduled to proceed to trial on Jan. 25, 2016, and are presumed innocent until and unless proven guilty.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J Trenga.
Assistant U.S. Attorney Kosta Stojilkovic, Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorneys James P. Gillis and G. Zachary Terwilliger assisted in the prosecution. The FBI’s Washington Field Office is investigating the case, while the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs have also provided significant assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-178.
Former Head of Offshore Brokerage Pleads Guilty to Conspiracy to Commit International Stock Fraud and Money Laundering ScamsRead the Press Release
A California man pleaded guilty today to two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Harold Bailey Gallison II, 58, of Valley Center, California, was charged in an indictment unsealed on July 14, 2015, along with eight other individuals for their roles in complex, international stock manipulation and money laundering schemes.
In entering his guilty plea, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison further admitted that he facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline). Through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
Several of Gallison’s co-defendants are scheduled to proceed to trial on Jan. 25, 2016, and are presumed innocent until and unless proven guilty. Gallison is scheduled to be sentenced on March 18, 2016.
The FBI’s Washington Field Office is investigating the case. Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kosta Stojilkovic of the Eastern District of Virginia are prosecuting the case. Assistant U.S. Attorneys James P. Gillis and G. Zachary Terwilliger of the Eastern District of Virginia assisted in the prosecution. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
Former EAA Principal and Vendor Indicted on Conspiracy and Bribery ChargesRead the Press Release
An indictment was unsealed today charging a former Educational Achievement Authority (“EAA”) principal and an after-school tutoring vendor with conspiracy and bribery charges, announced United States Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
The five-count indictment charges that from approximately August 2012 through November 2014, Kenyetta Wilbourn Snapp, the former principal of the EAA’s Denby High School and then Mumford High School, conspired to commit bribery and money laundering. Also charged in the indictment were Glynis Thornton, whose company, Making a Difference Everyday (“M.A.D.E.”), provided after-school tutoring services to Denby and Mumford, and Paulette Horton, who was an independent contractor working for M.A.D.E.
According to the indictment, Snapp selected Thornton’s M.A.D.E. as the after-school tutoring vendor for Denby and Mumford. In exchange, Thornton paid Snapp monetary kickbacks as a reward for Snapp selecting and retaining M.A.D.E. as the after-school tutoring vendor. Thornton disguised payments to Snapp by causing checks to be issued payable to Horton’s company, rather than paying Snapp directly. Horton would then deposit and withdraw the money and give it to Snapp.
Snapp is also charged with tax evasion for failing to report income during taxable year 2012. Horton is also charged with failing to file individual tax returns for year 2011.
“It is incredibly disheartening when school officials and vendors steal money that was intended to educate students, as these charges allege," McQuade said. "We appreciate the full cooperation of the EAA in this matter.”
FBI Special Agent in Charge Gelios stated, "Investigation demonstrated that Ms. Wilbourn-Snapp and her associates took resources allocated to her by the State of Michigan to educate our children and diverted funds for their own personal gain. There can be no tolerance for this abuse of authority. Entrusted by the community to facilitate educational excellence in Detroit’s schools, those indicted betrayed that trust. The FBI, and our partners in this investigation, will always work diligently to bring to justice public officials who selfishly misuse their positions and place their own interests above those they were hired to serve."
IRS-CI Special Agent in Charge Koopman stated, “The IRS enforces the nation’s tax laws, but also takes particular interest in cases involving the payment of kickbacks in exchange for contracts such as the scheme devised by Snapp.”
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Deputy Sentenced to Six Years for Civil Rights Violations and Obstruction of JusticeRead the Press Release
Fort Myers, Florida – U. S. District Judge Sheri Polster Chappell has sentenced Michael J. Ronga (44, Cape Coral) to six years in federal prison for deprivation of civil rights under color of law and obstruction of justice. Ronga was convicted by a federal jury on September 1, 2015.
According to evidence presented during the six-day trial, on May 5, 2013, Ronga, a deputy with the Lee County Sheriff’s Office (LCSO), provided a courtesy transport to victim R.L.C. Ronga subsequently assaulted R.L.C., causing bodily injury. He also robbed the victim of his cash and cellphone. R.L.C. reported the assault and robbery to the LCSO, and an investigation ensued. During the course of the investigation, Ronga lied to law enforcement about his interaction with the victim.
This case was investigated by the Lee County Sheriff’s Office, the Federal Bureau of Investigation, and the Florida Department of Law Enforcement. It was prosecuted by Chief Assistant United States Attorney Jesus M. Casas and Special Assistant United States Attorney Amira D. Fox.
Former CEO and Managing Partner of Defunct Public Charter Flight Company Indicted for Multimillion-Dollar Wire Fraud and Bank FraudRead the Press Release
The former CEO and a managing partner of a now-defunct public charter flight company were indicted today on fraud and conspiracy charges for their alleged roles in a multimillion-dollar fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Todd A. Damiani of the U.S. Department of Transportation Office of Inspector General made the announcement.
Judy Tull, 70, of Denton, Texas, and Kay Ellison, 55, of Kentucky, were each charged with one count of conspiracy to commit wire fraud and bank fraud, seven counts of wire fraud and seven counts of bank fraud. Tull and Ellison were the co-owners and, respectively, the CEO and managing partner of Southern Air & Tours, doing business as Myrtle Beach Direct Air & Tours (Direct Air), a public charter flight operator headquartered in Myrtle Beach, South Carolina.
The U.S. Department of Transportation’s regulations required charter operators to financially protect passengers either by posting a security or by keeping passenger payments for future flights in an escrow account with an approved bank. According to the indictment, Direct Air maintained such an account at a bank in New Jersey. Under the escrow agreement, the bank would not release these payments to Direct Air until Direct Air submitted a request for payment and a summary report detailing the completed flights and passengers, according to the indictment.
The indictment alleges that Tull, who handled Direct Air’s flight operations, and Ellison, who was involved in its customer reservations: made or caused others to make “ghost” reservations for fictitious passengers in Direct Air’s reservation system; submitted fraudulent documents, including request for payments and summary reports to the bank; requested payment for certain amounts on two occasions; and concealed the criminal activity and their participation in the criminal activity.
According to the indictment, in or around March 2012, Direct Air ceased operations and at that time, passengers had purchased tens of thousands of tickets for future travel, the funds for which should have been in the escrow account. At that time, however, the indictment alleges that the escrow account was $30 million short.
An indictment is merely a formal accusation. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Department of Transportation’s Office of Inspector General investigated the case. Trial Attorney L. Rush Atkinson and Senior Litigation Counsel Carol L. Sipperly of the Criminal Division’s Fraud Section, and Deputy Chief Scott McBride and Assistant U.S. Attorney Andrew Kogan of the District of New Jersey are prosecuting the case.
Former CEO and Managing Partner of Public Charter Company Both Charged with Defrauding New Jersey Bank, Other Financial Institutions Out of Millions of DollarsRead the Press Release
NEWARK, N.J. – The former CEO and Managing Partner of a now-defunct South Carolina public charter operator were charged today with using fraudulent documents and “ghost” reservations to collect millions in passenger payments to which they were not entitled.
Judy Tull, 70, of Denton, Texas, and Kay Ellison, 55, of Kentucky, were each indicted by a federal grand jury in Newark federal court with one count of conspiring to commit wire fraud and bank fraud, seven counts of wire fraud and seven counts of bank fraud.
New Jersey U.S. Attorney Paul J. Fishman, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Todd A. Damiani of the U.S. Department of Transportation, Office of Inspector General, made the announcement today.
According to the indictment:
Tull and Ellison co-founded Southern Air & Tours, d/b/a Myrtle Beach Direct Air & Tours, also known as “Direct Air,” a public charter operator headquartered in Myrtle Beach, South Carolina. In 2007, Direct Air began booking airline reservations and arranging for charter flights to be flown by contracted airline carriers. Direct Air offered airline services in a number of cities, including Newark. Tull served as Direct Air’s Chief Executive Officer, handled its flight operations, and dealt with its credit card processors and corporate bank. Ellison served as Direct Air’s Managing Partner and was involved in customer reservations.
U.S. Department of Transportation regulations required charter operators to protect passengers financially by posting a security or keeping passenger payments for future flights in a designated depository with an approved bank. As such, Direct Air maintained an escrow account at a New Jersey bank, identified in the complaint as “Bank 1.” Passenger payments for future flights were deposited into the account. Direct Air and the “Bank 1” agreed that these payments would not be released to Direct Air until completion of the flights. Also, the requests for payment had to include a summary detailing the flights and passengers purportedly flown.
As part of the scheme, Tull and Ellison allegedly employed a variety of techniques designed to overstate the revenues associated with recently completed flights, including making “ghost” reservations for fictitious passengers in Direct Air’s reservation system and submitting fraudulent summary reports to the bank. They also “double-dipped” by submitting release requests for passenger payments designated as “membership fees” prior to the completion of the flights, and then after the flights were completed, submitted release requests for the same funds. Lastly, they concealed their criminal activity by sending fraudulent financial statements to credit card processing companies and investors.
Direct Air ceased operations in March 2012 and filed for bankruptcy. At the time it ceased operations, passengers had purchased tens of thousands of tickets for future travel. As a result, pursuant to the DOT regulations, there should have been $30 million held in the Bank #1 escrow account. Instead, there was only $1 million in the account.
Each count of the indictment is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U .S. Attorney Fishman credited law enforcement agents with the U.S. Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Todd Damiani, with the investigation leading to today’s charges.
The government is represented by Deputy Chief Scott McBride and Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit, Acting Chief Barbara Ward of the Asset Forfeiture and Money Laundering Unit and Trial Attorneys L. Rush Atkinson and Carol L. Sipperly of the U.S. Department of Justice’s Criminal Division, Fraud Section.
Defense counsel:
Tull: Clinton W. Smith Esq., Charleston, West Virginia
Ellison: James B. Lees Jr. Esq., Charleston, West Virginia
Federal Jury in Austin Convicts Mexican Businessman in Money Laundering Conspiracy Involving Los Zetas Drug Distribution ProceedsRead the Press Release
In Austin this afternoon, 54-year-old Mexican businessman Francisco Colorado Cessa faces up to 20 years in federal prison after a jury convicted him of scheming to launder millions of dollars in Los Zetas drug distribution proceeds through purchasing, training, breeding and racing American quarter horses in the United States, announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher H. Combs, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
Jurors convicted Colorado Cessa of one count of conspiracy to commit money laundering. Trial testimony revealed a shell game by Colorado Cessa, a close associate of the Zetas drug cartel’s top leaders including Miguel Angel Trevino Morales (aka “Z-40”), Oscar Omar Trevino Morales (aka “Z-42”), and others involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source of the drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate.
Colorado-Cessa was the owner of ADT Petroservicios, an oil services company in Mexico doing business with the Mexican National Oil Company PEMEX. Testimony and evidence revealed that Miguel Angel Trevino Morales, the leader of Los Zetas drug cartel, provided drug proceeds to Colorado-Cessa. Colorado-Cessa then laundered those proceeds through his company to eventually purchase quarter horses for both himself and the leaders of the Los Zetas at quarter horse auctions and private sales in the United States.
Over 400 quarter horses seized by federal authorities in June 2012 as part of the above mentioned money laundering operation have been sold for approximately $12 million. One of the seized horses, Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, TX, in October 2009, sold at an auction for a record $1.7 million in November 2013.
On September 5, 2013, a federal judge sentenced Colorado Cessa to 20 years in federal prison after a jury convicted him of the same charge. That conviction and sentence was reversed by the 5th Circuit Court of Appeals in June 2015, and the case was remanded back to the District Court for this recent trial.
“Today’s conviction affirms that two separate juries, hearing the same evidence, found Mr. Colorado guilty of laundering money for the Zetas drug cartel,” said IRS-Criminal Investigation Special Agent in Charge William Cotter. “When choosing to make the ‘tempting dash’ for the prize, Mr. Colorado should have known that IRS Special Agents would eventually beat him to the finish line, uncovering the complex layering of transactions Colorado used in laundering the Zetas narcotics profits.”
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Border Patrol. Other judicial districts involved in this matter include the Western District of Oklahoma, Central District of California, Southern District of Texas, District of New Mexico and the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC).
Federal Jury Convicts Man in Officer-Involved ShootingRead the Press Release
Memphis, TN – A Memphis man who robbed a man at gunpoint and pointed his firearm at police officers has been convicted by a federal jury of felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to information presented in court, Christopher Travis, 24, of Memphis, and an unknown accomplice robbed a man at gunpoint in the city’s Catalina Street area near Sherwood Middle School on September 10, 2014. Travis and his accomplice reportedly assaulted the victim and stripped him of his clothing. Memphis Police Department (MPD) personnel were notified of the robbery by an onlooker. After arriving on the scene, officers saw Travis with the victim’s clothes. Upon seeing the officers, Travis fled on foot and retrieved a handgun from his pocket; MPD officers chased after him. After unsuccessfully jumping a fence, the defendant turned around and pointed his firearm at officers. An MPD officer subsequently shot at the defendant but didn’t strike him. Travis then managed to run through an opening in the fence and evade the officers.
According to court information, police set up a perimeter and located the defendant hiding in an open crawl space under a house located on Vanuys Road. After several verbal requests from officers, the defendant surrendered to law enforcement. The firearm that was pointed at the officer was located by a K-9 officer and his dog in a backyard adjacent to the house where Travis was found.
On Tuesday, December 8, 2015, a jury convicted Travis on one count of felony possession of a firearm.
Travis faces up to 10 years in federal prison and a fine of up to $250,000 when sentenced.
Travis is scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman on Friday, March 11, 2016.
The case was investigated by the MPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was part of the Project Safe Neighborhoods (PSN) initiative, which encourages federal, state, and local agencies to cooperate in an unified effort against gun crime, targeting repeat offenders who continually plague their communities.
Assistant U.S. Attorneys Marques Young and Elizabeth Rogers prosecuted this case on the government’s behalf.
Federal Inmate Sentenced for Possession of ShankRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dwayne Parker, age 31, a federal prisoner formally housed at the Federal Correctional Institute, Schuylkill was sentenced yesterday by U.S. District Court Judge Malachy E. Mannion in Scranton, for possession of a prohibited object in prison.
Judge Mannion sentenced Parker to 27 months imprisonment for possessing a shank in prison. Judge Mannion ordered that the sentence be run consecutively to Parker’s current 15 year federal sentence which he received as a result of a conviction for being a felon in possession of a firearm in the Eastern District of Pennsylvania.
According to United States Attorney Peter Smith, Parker was charged in a Criminal Indictment on June 2, 2015, and entered a guilty plea to that Indictment today just prior to being sentenced by Judge Mannion upon joint motion of the parties.
The case was investigated by the Bureau of Prisons and the Federal Bureau of Investigations. Assistant U.S. Attorney Todd K. Hinkley prosecuted the case.
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Elmira Woman Sentenced on Theft ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sonja Matos, 28, of Elmira, NY, who was convicted of theft by credit union employee, was sentenced to time served and two years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the defendant worked for the Corning Credit Union as a Risk Management/Card Services employee. Part of her responsibilities included periodically updating the software of Automated Teller Machines (ATM’s) and loading monies into the ATM’s of the Corning Credit Union. From January 2015 through April 2015, Matos took money for herself on a weekly basis from two ATM’s as she was loading the money into the machines. The defendant stole approximately $40,0000. The deposits of the Corning Credit Union are insured by the National Credit Union Administration.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Eleven Defendants Named in Seventy-One Count Indictment Charging Conspiracy to Commit Theft of Public Money and Identity TheftRead the Press Release
OAKLAND – Nine California residents and two Texas residents were charged with conspiracy to commit theft of public money, theft of public money, wire fraud, and aggravated identity theft announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Andrew Toth.
The indictment, unsealed yesterday, charges the following eleven defendants with participating in the conspiracy:
- Hugh Robinson, of Richmond
- Gary Bostick, of Pittsburg
- Ana Bostick, of Pittsburg
- Ronald Blake, of Fort Worth, TX
- Kyadrian Dennis, of Fort Worth, TX
- William Odom, of Berkeley
- Jamia Lewis, of Fairfield
- Devonnie Davison, of San Pablo
- Brandon Robinson, of El Cerrito
- Janel McDonald, of Los Angeles
- Everardo Laurian, of Daly City
According to the indictment, from at least August 21, 2013, through April 27, 2015, the defendants conspired with one another to commit offenses against the United States, including theft of government money. The scheme involved obtaining the names of deceased individuals, filing false tax returns in the names of the individuals, obtaining false identifications, and illegally cashing U.S. Treasury checks.
According to the indictment, Hugh Robinson, Gary Bostick, and Ronald Blake, with the assistance of others, are alleged to have obtained names of deceased individuals for use in filing false tax returns. To obtain identities for use in the scheme, these defendants searched California death records and obtained the names and personal identifying information of deceased individuals. The defendants then used the identities obtained from the death records to electronically file false federal income tax returns and caused the returns to be filed in the name of the deceased with the IRS. The returns falsely represented that the individuals earned wages or other income and that the individuals listed on the tax returns were entitled to tax refunds. Hugh Robinson, Gary Bostick, Ronald Blake, and other individuals working with them also listed on the tax returns certain physical addresses to which the defendants had access, enabling the defendants to retrieve the refund checks.
Also described in the indictment is the process by which the defendants are alleged to have cashed the fraudulently obtained U.S. Treasury checks. According to the indictment, Janel McDonald provided false and fraudulent California identification documents to co-conspirators who used them to negotiate the U.S. Treasury checks. The false identifications contained the pictures of designated co-conspirators who would cash the check. In addition, Hugh Robinson, Brandon Robinson, and Devonnie Davison brought some of the checks to a Walmart store in Richmond, California, where Jamia Lewis and William Odom assisted in cashing the checks. According to the indictment, Lewis and Odom were Walmart employees who knew the checks belonged to others and the U.S. Treasury. Further, Hugh Robinson and his co-conspirators obtained false identification documents that matched other names on the U.S. Treasury checks and negotiated those illegally-obtained checks at various other Walmart stores. According to the criminal complaint filed in the case, a search of the location where Hugh Robinson resided yielded $237,394 worth of uncashed U.S. Treasury checks.
The indictment charges each defendant with conspiracy to commit theft of public money. In addition, the defendants have been charged with the following federal offenses:
Hugh Robinson
7 counts of Theft of Public Money, 18 U.S.C. § 641
7 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Gary Bostick
4 counts of Wire Fraud, 18 U.S.C. § 1343
4 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Ana Bostick
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Ronald Blake
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Kyadrian Dennis
4 counts of Theft of Public Money, 18 U.S.C. § 641
4 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
William Odom
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Jamia Lewis
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Devonnie Davison
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Brandon Robinson
3 counts of Theft of Public Money, 18 U.S.C. § 641
3 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Janel McDonald
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts Aggravated Identity Theft, 18 U.S.C. § 1028A
Everardo Laurian
2 counts of Theft of Public Money, 18 U.S.C. § 641
2 counts of Aggravated Identity Theft, 18 U.S.C. § 1028A
Hugh Robinson has been in custody since his arrest in April 2015. Jamia Lewis, William Odom, Ronald Blake, Brandon Robinson, and Everardo Laurian are scheduled to appear on December 15, 2015, before United States District Judge Jeffrey S. White. Janel McDonald is scheduled to appear on December 16, 2015, before United States Magistrate Judge Donna M. Ryu. Hugh Robinson, Gary Bostick, Ana Bostick, and Devonnie Davison are scheduled to appear on January 12, 2016, before Judge White.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum sentence for conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371, is 5 years in prison and a fine of $250,000. The maximum penalty for theft of public money, in violation of 18 U.S.C § 641, is 10 years in prison and a fine of $250,000. The maximum penalty for wire fraud, in violation of 18 U.S.C § 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for each count of identity fraud, in violation of 18 U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Eight Members of Detroit-Based Robbery Crew Sentenced for Roles in $635,000 Jewelry Heist at Lenox Square MallRead the Press Release
ATLANTA – Eight members of a traveling robbery crew—based out of Detroit, Michigan, and linked to jewelry store robberies in several states—have been sentenced to federal prison for their roles in the June 2013 smash-and-grab robbery of the Mayors Jewelry Store in Lenox Square Mall, in Atlanta, Georgia.
“These defendants traveled the country searching for the most expensive jewelry stores to rob,” said U. S. Attorney John Horn. “They used sledgehammers during business hours to terrify store employees, smash open display cases, and steal jewelry to sell on the black market. The arrest and conviction of this crew has prevented an untold number of additional smash-and-grab robberies of jewelry stores on the eastern half of the United States.”
“The FBI is pleased to now have this violent and prolific robbery crew off of our streets. Their violent tactics during these robberies, to include the 2013 robbery at a Lenox Mall based jewelry store in Atlanta, illustrated a complete disregard for the safety of the public. We are appreciative of the hard work and dedication of the many investigators and prosecutors who stayed the course of this extensive and lengthy investigation,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court; the robbery crew consisted of eight individuals, all from Detroit, and each of whom has been convicted and sentenced to federal prison time: Damien Gayles, Kamauri Kennedy, Corey Burrows, Allen Adams, Lorenzo Terry, Anthony Hill, Jason Arnold, and Jasmine Dozier. The crew was led by Kenneth Thomas, now deceased. Several members of the crew are linked to similar jewelry store robberies in Michigan, Virginia, Florida, and elsewhere.
In June 2013, the robbery crew planned to travel from Detroit to Atlanta specifically to commit a “smash-and-grab” style robbery, using sledgehammers, of the Mayors Jewelry Store, in Atlanta, Georgia. Mayors, a high-end retail chain based in Florida, has locations in several states that offer a wide selection of Rolex watches. The robbers’ plan was to steal the watches and return to Detroit, where they could be sold to “fences,” or dishonest jewelry dealers via unreported cash transactions. The fences would then sell the stolen merchandise on the black market, including to buyers overseas.
Thomas, Gayles, Kennedy, and Dozier planned the robbery mission, identified the location to be robbed, conducted surveillance of the store prior to the robbery, and acquired the hammers, vehicles, and other materials needed to commit the crime. Terry, Hill, Burrows, Adams, and Arnold were recruited by the planners to actually commit the smash-and-grab robbery. Burrows and Adams were selected to wield the sledgehammers, due to their larger physical size. Terry, Hill, and Arnold were selected to grab the watches after Burrows and Adams bashed open the display cases.
On June 21, 2013, Burrows, Adams, Terry, Hill, and Arnold entered the Mayors Jewelry Store, in Lenox Square Mall, during business hours in order to rob it. Burrows and Adams concealed sledgehammers in their pants, and then used the sledgehammers to smash open the store’s glass display cases. Hill, Terry, Adams, and Arnold grabbed and stole approximately 19 Rolex watches from the smashed display cases, valued between $25,000 and $65,000 each, and fled the store with the stolen merchandise. The total retail value of the stolen property was approximately $637,600. Kennedy and Dozier served as getaway drivers afterwards. Gayles and Thomas took control of most of the stolen watches and paid their co-conspirators for their efforts. They then sold several of the watches to fences in Detroit.
Using a variety of investigative means, FBI eventually identified the perpetrators of the robbery, who were also suspects in other similar robberies that had occurred throughout the country. In July 2013, Thomas and several other members of the robbery crew were stopped just outside a high-end mall in Aventura, Florida, as they approached that mall in order to commit another smash-and-grab robbery of a jewelry store. Thomas was placed under arrest. FBI’s efforts subsequently led to several indictments and the conviction of these eight defendants.
The following five defendants pleaded guilty to interfering with commerce by robbery, and/or conspiring to interfere with commerce by robbery, and were sentenced by U.S. District Judge Thomas W. Thrash as follows:
- Corey Burrows, 27, was sentenced on September 3, 2015, to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Burrows was convicted of these charges on May 26, 2015.
- Jasmine Dozier, 26, was sentenced on May 6, 2015, to two years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Dozier was convicted of these charges on February 27, 2015.
- Damien Gayles, 25, was sentenced was sentenced on March 2, 2015, to seven years, eight months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Gayles was convicted of these charges on October 10, 2014.
- Allen Adams, 28, was sentenced on November 10, 2014, to four years, three months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Adams was convicted of these charges on August 22, 2014.
- Kamauri Kennedy, 26, was sentenced on September 9, 2014, to five years, ten months in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465. Kennedy was convicted of these charges on June 17, 2014.
The following three defendants pleaded guilty to interfering with commerce by robbery, and/or conspiring to interfere with commerce by robbery, and were sentenced by U.S. District Judges in the Eastern District of Michigan, as follows:
- Lorenzo Terry, 22, was sentenced on December 9, 2015, to four years in prison, by Judge David Lawson, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,465.Terry was convicted of these charges on August 5, 2015.
- Anthony Hill, 26, was sentenced on August 25, 2015, to four years, nine months in prison, by Chief Judge Gerald E. Rosen, to be followed by two years of supervised release, and ordered to pay restitution in the amount of $276,465.Hill was convicted of these charges on May 19, 2015.
- Jason Arnold, 21, was sentenced on May 20, 2015, to three years in prison, by Chief Judge Gerald E. Rosen, to be followed by two years of supervised release, and ordered to pay restitution in the amount of $276,465.Arnold was convicted of these charges on November 14, 2014.
This case was investigated by Special Agent Paul Szabo and Task Force Officer William Kimball Murdock of the Federal Bureau of Investigation, with assistance from the Atlanta Police Department.
Assistant United States Attorneys John S. Ghose and Brent Alan Gray prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man, charged with Assault by Striking, Beating, and Wounding, pled guilty to and was sentenced on December 8, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Arvin Red Bear, Sr., age 53, was sentenced to 12 months in custody, followed by 1 year of supervised release, and a special assessment of $25 to the Federal Crime Victims Fund. He was ordered to pay $78.02 in restitution.
The conviction stems from an incident that took place on June 29, 2014, when Red Bear, the victim, and another individual were all drinking together at Red Bear’s home in Thunder Butte, South Dakota. After a while, a verbal argument began between Red Bear and the victim. As the victim approached Red Bear’s residence, Red Bear came out from his house carrying a hatchet in one hand and a long hunting knife in the other. Upon seeing the weapons, the victim and the other individual turned around and began to walk away. As they were leaving, Red Bear rushed towards the victim, swinging the hatchet and striking him on the back of his right arm, just above the elbow. The victim turned around and began to wrestle with Red Bear, managing to pry the hatchet from Red Bear’s grasp and tossing it away. While they were wrestling, Red Bear also stabbed the victim in the face with the knife.
The victim left the scene and was transported to the Eagle Butte Indian Health Services emergency room. He ultimately received 8 sutures to his cheek, had two superficial wounds cleaned and bound, and was referred to Rapid City for the wound above his right elbow to check for possible nerve damage.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Red Bear was remanded to the custody of the U.S. Marshals Service.
Drug Trafficker Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Edison Norberto Sanchez, 39, of Orlando, Florida, was sentenced this morning in federal court for his participation in a scheme to possess with intent to distribute methamphetamine. Sanchez pled guilty to the conspiracy count in September of 2014. Court documents reflect that Sanchez was arrested in Mobile during an investigation initiated by the Mobile County Sheriff’s Office. The investigation involved controlled buys of methamphetamine from Sanchez’s co-defendant Edgar Ivan Contreras, who was also known as “Scooby.” Searches of vehicles and residences resulted in the seizure of additional amount of methamphetamine and documents relevant to the drug trafficking scheme.
United States District Court Judge William H. Steele imposed a sentence of 57 months this morning at Sanchez’s sentencing hearing. That sentence was at the low end of the advisory guideline range applicable in Sanchez’s case. The judge also ordered that Sanchez would serve a five-year term of supervised release when he completes his prison sentence, during which he will be monitored for drug use. Sanchez was ordered to pay a mandatory $100 special assessment, but the judge did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.District Man Pleads Guilty to Sexually Assaulting Two Women in Attack in Alley in Northwest WashingtonRead the Press Release
WASHINGTON - Hassain Smart, 20, of Washington, D.C., has pled guilty to charges stemming from sexual assaults he committed against two women in an alley in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Smart pled guilty on Dec. 9, 2015, in the Superior Court of the District of Columbia, to charges of first-degree sexual abuse while armed, first-degree sexual abuse with aggravating circumstances, robbery while armed, and kidnapping while armed. The plea, which is contingent upon the Court’s approval, calls for a prison term of 27 to 33 years. Upon release, Smart would be required to register as a sex offender for the remainder of his life. The Honorable Jennifer Anderson scheduled sentencing for March 4, 2016.
According to the government’s evidence, at about 1 a.m. on June 25, 2015, the two victims began to open the door to their home in the unit block of T Street NW when Smart, a stranger, approached from behind and brandished what appeared to be a black handgun. He led both women through a dark alley into a muddy area between a fence and a vacant house under construction. Smart raped both women in the alley while continuing to brandish the weapon.
After the sexual assaults, Smart refused to allow the victims to leave until they surrendered their cell phones and a debit card to him. When he finally left, the victims contacted law enforcement, and detectives from the Sexual Assault Unit of the Metropolitan Police Department (MPD) responded and immediately began an investigation.
An MPD patrol officer in the Seventh District spotted the defendant, who matched the description given by the victims. Smart was arrested after police found the victims’ cell phones and debit card and the weapon in his possession. Smart then confessed to kidnapping, robbing, and sexually assaulting both women while brandishing the weapon.
After reporting the assault to the police, the victims were transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE), which included collection of forensic evidence. Bode Technologies later conducted DNA testing and concluded that the major male profile found on intimate swabs from a victim’s SANE kit matched the DNA profile of the defendant.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit, the Fifth and Seventh Police Districts, and crime scene technicians. He also expressed appreciation to Bode Technologies. He also commended those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan and Paralegal Specialists Tierra Nanches and Jason Manuel. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Amy Zubrensky and Julianne Johnston, who are prosecuting the case.
Delaware Woman Pleads Guilty to $430,000+ Embezzlement from Law Firm and Tax FraudRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Penni Enama, age 50, of Lewes, Delaware, pled guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of tax evasion, in violation of 26 U.S.C. §7201. Enama, who will be sentenced on March 23, 2016, at 2 p.m. by the Honorable Gregory M. Sleet, United States District Judge for the District of Delaware, faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release following any term of imprisonment.
According to statements made at the plea hearing and documents filed in court, Enama was employed by a law firm in Delaware, for approximately two years when, in May 2007, she began embezzling funds from the firm’s escrow account. Enama was a real estate paralegal, and she used her access to a closing escrow account to divert at least $439,824.40 to her personal use. Enama fabricated additional real estate closing parties in the firm’s records, and she used the additional funds to pay her personal credit cards and/or deposit the funds into her personal bank accounts. Enama did not declare the embezzled funds on her federal income tax returns for the 2011-2013 tax years.
U.S. Attorney Oberly commented, “This is a particularly troublesome case where an experienced para-professional abused her position of trust to steal, at least, nearly $440,000.00 from a Delaware law firm. Whether it is a law firm, a physician’s office, or any office where people are entrusted with handling money, thieves like Ms. Enama can expect to be prosecuted and face incarceration.”
“To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share. The overarching principle of IRS' enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays the right amount of tax,” said Akeia Conner, Special Agent In Charge IRS Criminal Investigation.
This case is being investigated by the Internal Revenue Service - Criminal Investigation, and it is being prosecuted by Assistant United States Attorney Lauren Paxton.
Defendant Pleads Guilty to Interstate Threats to Injure Saint Regis Mohawk Tribal Police OfficersRead the Press Release
PLATTSBURGH, NEW YORK – Roy Redeye, age 39, of Cortland and Akwesasne, New York, pled guilty yesterday to two counts of interstate threats to injure another person announced United States Attorney Richard S. Hartunian, James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations, and Matthew Rourke, Saint Regis Mohawk Police Chief. Redeye admitted during the change of plea hearing that on February 6, 2015, he posted threats to injure and kill three Saint Regis Mohawk Tribal Police Officers on Facebook.
On both counts, Redeye faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release up to 3 years. Sentencing is set for April 6, 2016 at 10:30 AM before Senior U.S. District Judge Lawrence E. Kahn.
The case was investigated by Homeland Security Investigations in both Massena and Syracuse, with assistance from the Cortland Police Department, the Cortland County Sheriff’s Office, and the Saint Regis Mohawk Tribal Police Department. Assistant United States Attorney Elizabeth Horsman prosecuted the case.
The case was prosecuted under the U.S. Attorney’s Office for the Northern District of New York’s Indian Country Public Safety Initiative, which was established as a result of the Tribal Law and Order Act of 2010. That Act launched department-wide initiatives to enhance public safety in Indian Country.
Charges Filed Against Eight People in Alleged Drug ConspiracyRead the Press Release
PHILADELPHIA - An indictment, unsealed today, charges eight people with conspiring to distribute heroin in the Kensington section of Philadelphia, announced United States Attorney Zane David Memeger. Charged are: Jorge Balbuena, a/k/a “Hansel,” 29, Yan Mota Soto, 25, Luis Garcia, a/k/a “Twin,” a/k/a “Mellos,” a/k/a “Domi,” 35, Jose Garcia, a/k/a “Twin,” a/k/a “Mellos,” 35, Ysidro Garcia, a/k/a “Pisa Pie,” 67, Elvin DeJesus, 26, Pedro Angel Montes-Perez, 24, and Gary Cuevas-Reyes, 27, all living in Philadelphia, PA. In addition to the conspiracy count, the defendants are charged in multiple counts of distribution of heroin, and distribution of heroin within 1,000 feet of a school or playground. Jorge Balbuena, Jose Garcia, Evlin Dejesus, Gary Cuevas-Reyes, Pedro Montes-Perez were arrested this morning. Montes-Perez is a U.S. citizen. The remaining defendants are citizens of the Dominican Republic residing in Philadelphia.
According to the indictment, the conspiracy existed from March 2014 to October 2015 and was led by Jorge Balbuena and supplied wholesale amounts of heroin, cocaine, cocaine base (“crack”), and other controlled substances to other wholesale drug distributors, and to street corner drug operations.
If convicted, each defendant faces lengthy prison terms.
The case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney David. E. Troyer and Marianne Shelvey of the United States Department of Justice’s Organized Crime and Gang Section.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Buffalo Native Convicted for His Role in Overseas Investment ScamRead 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 Arnold Wrobel, 63, a native of Buffalo, NY, who was most recently residing in Barcelona, Spain, pleaded guilty to conspiring to engage in a wire fraud conspiracy and to defraud the Internal Revenue Service, before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that Wrobel oversaw a “boiler room” scam in Barcelona, Spain. The scam conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices by telling buyers that they were buying more valuable regular shares of stock. Approximately 250 investors lost more than $2,900,000 to Wrobel and his co-conspirators. A portion of the criminal proceeds were funneled through a bank account in Western New York before being sent to numerous overseas accounts controlled by Wrobel others. Alert investigators monitoring suspicious monetary transactions uncovered the criminal activity. Wrobel, who grew up in Buffalo, also conspired to defraud the Internal Revenue Service in order to avoid paying taxes on the ill-gotten gains.
The defendant is the second of 12 defendants to be convicted in the case.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James S. Spero, Special Agent in Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Michael F. Rivera, Supervisory Special Agent.
Sentencing will be scheduled at a later date.
Bloomfield Man Sentenced to Federal Prison for Statutory Rape ConvictionRead the Press Release
ALBUQUERQUE – Orlando Harvey, 25, an enrolled member of the Navajo Nation who resides in Bloomfield, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 18 months in prison for sexually abusing a minor. Harvey will be on supervised release for five years following his prison sentence. He also will be required to register as a sex offender.
Harvey was arrested on Dec. 22, 2014, on an indictment charging him with four counts of sexual abuse of a minor. According to the indictment, Harvey engaged in a sexual act with the victim, who was under 16 years of age, on four occasions between Aug. 2014 and Oct. 2014, on the Navajo Indian Reservation in San Juan County, N.M.
On Feb. 20, 2015, Harvey entered a guilty plea to Count 1 of the indictment, and admitted engaging in a sexual act with the 15-year-old victim in Aug. 2014. Harvey admitted knowing that the victim was only 15 years old when he picked her up at school and drove her to his residence where they engaged in a sexual act. He also acknowledged manipulating the victim into engaging in a sexual act with him.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI. The case was prosecuted by Assistant U.S. Attorneys Raquel Ruiz Velez and Elaine Ramirez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Billings Man Convicted of Felon in Possession of FirearmsRead the Press Release
BILLINGS – Following a two day federal trial, a Montana jury found Ryan Anthony Cislo, most recently of Billings, guilty of being a felon in possession of firearms on Thursday. Judge Susan Watters presided over the trial. Sentencing has been set for March 23, 2016.
Cislo was indicted by a grand jury in December of 2014 on two counts, which included the felon in possession charge as well as a possession of stolen firearms charge. At trial, the government introduced evidence that in June of 2014, Cislo was being supervised for a 2009 felony conviction from Flathead County. He had been released from custody in May of 2014, and was periodically living in the home of his girlfriend’s mother between May 7 and June 9. The homeowner called Cislo’s probation officer on June 9 to report that Cislo had shown her three handguns and requested that the officer come to her home to search Cislo’s belongings and remove the firearms.
Four officers with Montana Probation and Parole responded and searched the room that Cislo had been using. Cislo was not present during the search. The officers found two handguns stuffed between the mattress and the box spring of the bed. One of the guns was loaded and had a live round in the chamber. The other contained a loaded magazine. The officers also found a Sentry gun safe and a wallet containing Cislo’s driver’s license, Social Security card, and various credit cards. Through a seam in the safe, the officers could see that it contained at least ammunition.
Because they had only found two of the three reported firearms, the officers called in an officer with the Bureau of Alcohol, Tobacco, Firearms & Explosives to assist with the search. The ATF officer pried open the gun safe and found a .22 caliber derringer inside along with multiple rounds of ammunition of varying caliber. All together, the firearms included a Taurus .45 caliber semi-automatic pistol, a Hi-Point 9mm caliber semi-automatic pistol, and a Cobra .22 caliber derringer.
In a subsequent interview with law enforcement, Cislo denied ever living at the house in question or knowing anything about the firearms found there. However, he had listed the address where the firearms were located as his residence on a monthly probation report from May 2014 and stated later in a jail call admitted at trial that he had stayed at the residence for at least ten nights.
The case was prosecuted by Assistant U.S. Attorneys John Sullivan and Lori Suek. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and Montana Probation and Parole.
Baltimore Man Pleads Guilty to Copyright Infringement for Illegally Reproducing and Distributing Copyrighted MoviesRead the Press Release
Greenbelt, Maryland – Dwayne Scott, age 55, of Baltimore, Maryland, pleaded guilty today to copyright infringement in connection with his reproduction and distribution of copyrighted works, including movies.
The guilty plea 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); and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, Dwayne Scott was a corporate officer and registered agent of Hard Times Discount Clothing and Accessories in Baltimore. On four occasions between September 11, 2012 and August 6, 2015, law enforcement executed search warrants at Hard Times. On each occasion, law enforcement seized large numbers of CDs and DVDs of copyrighted works, which Scott had reproduced and distributed without the permission of the copyright holders. Scott admitted selling CDs and DVDs of copyrighted works for profit.
Specifically, on September 11, 2012, members of the Baltimore Police Department executed a search warrant at Hard Times in connection with a stolen property investigation. Subsequently, on January 29, 2014 and February 3, 2015, an undercover officer purchased DVDs from Hard Times. Each of the DVDs contained copyrighted movies that Scott had reproduced and distributed without permission. On April 16, 2014, February 24, 2015 and August 6, 2015, HSI Special Agents executed federal search warrants at Hard Times. In the back room of the business law enforcement found hundreds of CDs and DVDs containing copyrighted works which Scott had illegally reproduced and distributed. In addition, law enforcement located laptop computers actively downloading copyrighted movies from internet file sharing programs.
Scott faces a maximum sentence of five years in prison for copyright infringement. As part of his plea agreement, Scott will also be required to pay restitution of $15,001 and to forfeit the computers, hard drives, cell phones, CDs and DVDs, and other items seized during the search warrants. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 11, 2016, at 9:30 a.m.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
HSI manages the IPR Center, one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the HSI-led IPR Center, visit www.IPRCenter.gov.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore and the Baltimore Police Department for their work in the investigation and thanked the Motion Picture Association of America for its assistance. Mr. Rosenstein praised Assistant U.S. Attorney Nicolas A. Mitchell, who is handling the case.
Attorney General Loretta E. Lynch Joint Statement with Foreign Counterparts Following G6 Ministerial MeetingRead the Press Release
Attorney General Loretta E. Lynch released a joint statement with U.K. Home Secretary Theresa May, the Interior Ministers of the U.K., France, Germany, Italy and Spain, U.S. Secretary for Homeland Security Jeh Johnson and European Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos following a G6 meeting in London on Dec. 9 and 10, 2015:
“Condemning recent terrorist attacks worldwide, including in Sousse, Paris, Bamako, Beirut and San Bernardino, we are united in our determination to combat terrorism through a strong yet proportionate national and international response.
“We reaffirm our commitment to tackling the threat posed by Daesh/ISIL and to countering violent extremism and radicalization with the values that we all share: respect, tolerance and democracy. At the heart of this work is a partnership with wider society: at the same time as we work with them to root out radicalization to violence, we reject any attempts to create division and marginalization amongst those we endeavor to protect.
“We are committed to stepping up cooperation in tackling this threat to our democracies. In particular, consistent with national law, we agree to:
- work with civil society and religious and faith groups to deliver positive counter-narratives which promote the values underpinning peace, freedom and democracy;
- counter violent extremism, including by disrupting those who support terrorist activity, prosecuting all those who break the law and supporting those vulnerable to radicalisation;
- maximise cooperation and information-sharing between our respective law enforcement and other agencies including through European, US and international mechanisms;
- encourage communications service providers to consider taking further steps to remove from the internet content which encourages, promotes or inspires the violent extremism associated with Daesh/ISIL and other such terrorist groups;
- enhance further the security of air travel by ensuring that airports worldwide meet the highest international standards both for passengers and cargo;
- continue and enhance cooperation within Europe and with the US on important initiatives, including passenger name records - welcoming political agreement on an EU Passenger Name Records Directive and the EU/US “Umbrella” agreement on data protection and privacy - as well as terrorist finance and further agreements to ensure effective data sharing in the interests of public security and protection; and
- enhance the security of the external border of the EU.
“We undertake to work together resolutely at an EU and international level to deliver the outcomes agreed at our meeting in London.”
Army Sergeant Sentenced to Prison for Conspiracy in Afghanistan Bribery SchemeRead the Press Release
An Army sergeant was sentenced to 24 months in prison today for his role in a conspiracy to commit bribery in connection with supply contracts while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI), made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, previously pleaded guilty to a one-count information charging him with conspiracy to commit bribery. In imposing sentence today, Senior U.S. District Judge Thomas B. Russell of the Western District of Kentucky also ordered Pena to forfeit $100,000, a Harley Davidson motorcycle and a Rolex watch.
From January 2008 through September 2009, Pena worked as a U.S. Army sergeant first class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. In connection with his guilty plea, Pena admitted that he and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies to support humanitarian relief in Afghanistan, and they awarded approximately 217 such contracts totaling roughly $30,760,255. In return, Pena and Dennis received money and jewelry from some of the vendors. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch and $100,000 in total bribe payments.
Pena admitted that he sent approximately $22,000 of the cash to his family in Kentucky, spread among numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the United States to purchase a Harley Davidson motorcycle.
Dennis also previously pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments and was sentenced to 41 months in prison and ordered to forfeit $115,000.
This case was investigated by the SIGAR, FBI’s Washington Field Office, CID, DCIS and OSI. The case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nute A. Bonner and Amy Sullivan of the Western District of Kentucky.
Army Sergeant Sentenced to Prison for Conspiracy in Afghanistan Bribery SchemeRead the Press Release
WASHINGTON – An Army sergeant was sentenced to 24 months in prison today for his role in a conspiracy to commit bribery in connection with supply contracts while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI), made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, previously pleaded guilty to a one-count information charging him with conspiracy to commit bribery. In imposing sentence today, Senior U.S. District Judge Thomas B. Russell of the Western District of Kentucky also ordered Pena to forfeit $100,000, a Harley Davidson motorcycle and a Rolex watch.
From January 2008 through September 2009, Pena worked as a U.S. Army sergeant first class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. In connection with his guilty plea, Pena admitted that he and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies to support humanitarian relief in Afghanistan, and they awarded approximately 217 such contracts totaling roughly $30,760,255. In return, Pena and Dennis received money and jewelry from some of the vendors. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch and $100,000 in total bribe payments.
Pena admitted that he sent approximately $22,000 of the cash to his family in Kentucky, spread among numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the United States to purchase a Harley Davidson motorcycle.
Dennis also previously pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments and was sentenced to 41 months in prison and ordered to forfeit $115,000.
This case was investigated by the SIGAR, FBI, CID, DCIS and OSI. The case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nute A. Bonner and Amy Sullivan of the Western District of Kentucky.
A Department of Veterans Affairs Nurse Convicted of Falsifying Medical Records and Computer FraudRead the Press Release
A former Department of Veterans Affairs employee pled guilty today to destroying, altering and falsifying records and committing computer fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG), Southeast Field Office, made the announcement.
Enrique Martinez, 37, of Miami, pled guilty before United States Magistrate Judge Jonathan Goodman to destruction, alteration, and falsification of records, in violation of Title 18, United States Code, Section 1519, and computer fraud, in violation of Title 18, United States Code, Section 1030. Martinez faces a statutory maximum penalty of up to 20 years in prison.
According to court records and information presented in court, Martinez, a former nurse at the Veterans’ Affairs (VA) Medical Center in Miami, obstructed a federal investigation and caused damage to the computer system of the U. S. Department of Veterans’ Affairs. Martinez falsified the medical records of a 76-year old veteran who was being treated at the medical center and was directly under Martinez’s responsibility. The veteran-patient died while hospitalized at the medical center. Martinez made these changes and alterations in an attempt to avoid responsibility for the poor quality of care he had provided the veteran-patient.
Mr. Ferrer commended the investigative efforts of the VA-OIG’s Office of Investigations and the VA-OIG’s Office of Healthcare Inspections. The case is being prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and Jonathan Kobrinski.
Martinez is set for sentencing before United States District Judge Jose E. Martinez on February 19, 2016 at 2:00 p.m..
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.
17 Charged in Cocaine Trafficking RingRead the Press Release
PITTSBURGH – Seventeen people have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The seven-count indictment named:
- William J. Chaffin Jr., 48, of Adah, Pa.;
- Semori Wilson, 45, formerly of Uniontown, Pa.;
- Domin Guerrero-Guerrero, 32, of Lebanon, Pa.;
- Dexter Allen, 27, of Uniontown, Pa.;
- George Daube, 59, of Donora, Pa.;
- Chalfonte Demery, 34, of McKeesport, Pa.;
- Damien Gibson, 41, of Duquesne, Pa.;
- Peter Hawkins, 44, of McKeesport, Pa.;
- Richard Lassic, 41, of Washington, Pa.;
- Marquis Bailey, 24, of Uniontown, Pa.;
- Tomarrio Blackburn, 33, McClellandtown, Pa.;
- Anitra Dues, 38, of Adah, Pa.;
- Brandon Harrison, 29, of McClellandtown, Pa.;
- Mark Johnson, 28, of Uniontown, Pa.;
- Keith Thomas, 30, of Uniontown, Pa.;
- Herbert Ballard, 50, of Pittsburgh, Pa.; and
- Nygel Saunders, 26, of Uniontown, Pa..
According to the indictment presented to the court, the defendants named above (except for Herbert Ballard and Nygel Saunders) engaged in a conspiracy to possess with intent to distribute and distribute cocaine from June 2015 to November 2015. Individually, William J. Chaffin Jr., Richard Lassic, Herbert Ballard, and Keith Thomas are charged with possession with intent to distribute and distribution of a quantity of cocaine, while Semori Wilson and Nygel Saunders are charged with possession with intent to distribute and distribution of 500 grams or more of cocaine. William J. Chaffin Jr. is also charged with possessing a firearm after a prior felony conviction.
The law provides for a maximum total sentences ranging of not less than 5 years in prison and up to life in prison, and fines ranging from $250,000 to up to $8,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, the Allegheny County Sheriff’s Department, and the Allegheny County Police Department conducted the investigation leading to the indictment in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
16 Named in Racketeering Indictment Alleging Money Laundering Schemes Orchestrated by Former President of Orange County BankRead the Press Release
LOS ANGELES – Federal authorities today arrested 11 defendants named in a sweeping racketeering indictment that alleges a series of money laundering schemes that revolved around the former head Westminster-based Saigon National Bank. Four other defendants who are named in two separate money laundering indictments were also arrested today.
The majority of the defendants arrested today in relation to Operation “Phantom Bank” are named in a 109-page racketeering indictment that was returned by a federal grand jury on December 1 and unsealed late this afternoon. Two other indictments returned by the grand jury over the past year were also unsealed today. The three indictments charge a total of 20 defendants, three of whom are named in two indictments.
In the 16-defendant racketeering indictment, six of the defendants are charged with violating the federal Racketeer-Influenced and Corrupt Organizations Act (RICO) by playing key roles in a series of schemes to launder drug proceeds. At the center of the schemes is the lead defendant in the indictment – Tu Chau “Bill” Lu, 71, of Fullerton, who was president and chief executive officer of Saigon National Bank from 2009 through January 2015.
The RICO count alleges that Lu and the other five defendants were members of a criminal organization that was involved in narcotics trafficking and international money laundering in countries that included the United States, China, Cambodia, Liechtenstein, Mexico and Switzerland. The indictment alleges that Lu used “his insider knowledge, position as an official at Saigon National Bank, and network of connections to promote and facilitate money laundering transactions involving members and associates of the enterprise.” Several members of the organization established or engaged in separate money laundering schemes, according to the indictment, but “all working with, through, or at the instigation of defendant Lu.”
In one scheme, an undercover informant delivered cash represented to be drug proceeds to defendants, who arranged for the cash to be converted into cashier’s checks made out to a company the informant allegedly owned. Other conspiracies discussed in the RICO count also involved the delivery of cash from the informant, and that money was allegedly converted into cashier’s checks.
As part of the racketeering enterprise, Lu and others named in the RICO count allegedly floated a plan in which the informant and his boss (who was an actually an undercover law enforcement officer) would purchase a controlling interest in Saigon National Bank so they could have a financial institution which could easily facilitate money laundering operations.
In another aspect of the RICO conspiracy, Lu and others allegedly proposed setting up a foundation in Liechtenstein that would be used to move money around the globe. The informant and another associate who was also an undercover law enforcement officer told those proposing the creation of the foundation that they would be laundering money that came from drug sales in Europe and that the narcotics had been bartered for weapons in Nigeria.
In yet another aspect of the RICO conspiracy, Lu allegedly played a critical role in introducing to the informant and other RICO defendants operatives from the Sinaloa drug cartel who wanted to launder millions of dollars every month. According to the indictment, Lu also had conversations with the Sinaloa cartel operatives about purchasing Saigon National Bank, and one of the operatives said the cartel had already invested $1 million in the bank.
In addition to Lu, the five people charged in the RICO count are:
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Tsung Wen “Peter” Hung, 61, of Monterey Park;
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Edward Kim, 56, of Beverly Hills;
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John Edmundson, 55, a British citizen who resides in Hong Kong, who is still being sought by authorities;
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Pablo Hernandez, 75, of Tijuana, Mexico, who is still being sought by authorities; and
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Emilio Herrera, 53, a Mexican citizen who resides in Spring Valley, California, who is still being sought by authorities.
The RICO count is one of 28 counts in the indictment. The various money laundering schemes detailed in the RICO count are the subject of other conspiracy and substantive money laundering charges in tampering and structuring transactions to avoid federal reporting requirements. Additionally, Kim is charged with evidence tampering for allegedly encouraging one of the undercover agents to destroy evidence.
The indictment alleges that members of the racketeering conspiracy discussed laundering hundreds of millions of dollars. The indictment details actual money laundering transactions involving a total of $3.75 million.
“Our fight against international narcotics trafficking focuses on both drug interdiction and stopping the flow of money generated by illegal narcotics sales,” said United States Attorney Eileen M. Decker. “The indictments unsealed today demonstrate that we are facing sophisticated operatives who will use novel methods to launder drug proceeds. These cases also demonstrate that we are committed to using all investigative tactics to uncover these illegal operations and to prosecute those willing to help drug traffickers.”
The other defendants named in the indictment are:
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Mina Chau, 32, of La Mesa, California;
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Ben Ho, 41, of Santa Ana;
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Tom Huynh, also known as “The Fat Guy,” 57, of Westminster;
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Renaldo Negele, 51, of Liechtenstein, who is still being sought by authorities;
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Jack Nguyen, 38, of Manhattan Beach;
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Luis Krueger, 58, of Malibu;
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Li Jessica Wei (who is also known under various permutations of her name, including Wei Jessica Li), 58, of Arcadia;
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Du Truong “Andrew” Nguyen, 34, of Westminster, who is still being sought by authorities;
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Richard Cheung, also known as Richard Cheang, 58, of El Monte; and
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Lien Tran, 41, of Santa Ana.
“Investigations of financial institutions and individuals who willingly violate U.S. laws and regulations are vitally important to the integrity of our banking system,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “Those affiliated with financial institutions who abuse their positions to launder the proceeds of drug trafficking, illegal weapon sales and bribery will be held accountable.”
The second indictment unsealed today charges Hung, Wei and two other defendants – Jian Sheng “Raymond” Tan, 48, of Temple City; and Derrick Cheung, also known as Chang Zhang Ying and Zhang Ying Chang, 39, of Rowland Heights – with accepting money from an undercover operative and, in exchange for a fee, converting the money to cashier’s checks and money orders. The three-count indictment alleges that the defendants accepted money they believed to be the proceeds of bank fraud and narcotics trafficking.
The third indictment stemming from this investigation and unsealed today charges Tan; Ruimin Zhao, 45, also of Temple City; and Vivian Tat, 51, of Hacienda Heights, with laundering money they thought came from narcotics trafficking. The money given to the defendants in this case was delivered by an undercover operative and was converted into cashier’s checks.
“The taxpayers put their faith in TARP recipient Saigon National Bank by funding the bank after the financial crisis, ”said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “As part of an expansive criminal enterprise, the former president and CEO of Saigon Bank, Tu Chau ‘Bill’ Lu and his co-conspirators have now been indicted for financial crimes relating to drug trafficking, money laundering and the use of the bank and Lu’s financial connections to facilitate the crimes. We commend U.S. Attorney Eileen M. Decker, the Department of Justice’s Criminal Division and our law enforcement partners for their work investigating this TARP case.”
During arraignments late today in United States District Court, 13 of the defendants entered not guilty pleas and were ordered to stand trial in February. The 13 who were arraigned today were all released on bond. Defendants Cheung and Hung are expected to be arraigned on Friday afternoon.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The RICO charge, the money laundering counts and the evidence tampering charge each a statutory maximum penalty of 20 years in federal prison. The charge of structuring financial transactions to avoid federal reporting requirements carries a maximum sentence of five years.
The investigation in Operation Phantom Bank was conducted by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Kim Meyer and Trial Attorney Andrew Creighton of the DOJ Criminal Division, Organized Crime and Gang Section.
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12 Alleged Fairview Gang Members Indicted for Drugs, Weapons, and Money Laundering OffensesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a 25-count indictment was unsealed alleging 12 defendants are part of a local Anchorage gang that engaged in drug trafficking, firearms possession, and money laundering crimes. The indictment further alleges that the gang members were affiliated with the Campanella Piru Park Bloods in Compton, California, and that they used firearms to protect the gang, as well as its Fairview “turf.” It is the first indictment in Alaska that alleges the presence of a nationally recognized street gang.
The indictment alleges that members of the “Fairview MOB” would obtain controlled substances in the Los Angeles area and distribute them in Alaska. The drugs being sold included heroin, cocaine and crack. The indictment further alleges several members of the “Fairview MOB” are affiliated with “All Da Time Ent.,” “Zaya’s First Class Entertainment,” and/or “YNE,” entities that purport to produce, perform and promote rap artists and music. Videos and photographs on social media websites show various members taking part in the conspiracy’s activities, such as gun violence and drug trafficking. It is alleged that the conspiracy’s illegal activities attempt to give credibility to the members rap music endeavors.
Indicted were the following individuals:
Isaiah Holloway a/k/a “Z,” 26, from Anchorage, Alaska; Lamont Moore, a/k/a “Moose,” 36, and Dearon Walton a/k/a “Mitch,” 25, both originally from Los Angeles; Ishmael Holloway a/k/a “Ish,” 23; Dorian Topps a/k/a “Fairview Money,” 22; Michael Reynold a/k/a “Boogie,” 23; Felton Reynold Jr. a/k/a “Fairview Jun,” 27; Christopher Meeks a/k/a “Thugga,” 22; Malia Green, 21; Delano Williams a/k/a “D,” 25; and Karl Maddox, Jr. a/k/a “P,” 25, all from Anchorage, Alaska.
According to the indictment, the conspiracy’s activities date back to at least 2012, when several conspirators were stopped by police and found to be in possession of firearms. The indictment alleges that various gang members were involved in 18 separate drug sales as well as numerous instances of illegal firearms possession and use. In one incident, alleged to have occurred on May 18, 2015, the indictment states that Isaiah Holloway and Lamont Moore possessed a firearm, which Moore used to shoot a rival gang member because the victim was in “Bloods” territory in the Fairview neighborhood of Anchorage. The indictment alleges that this conduct is consistent with the methods of the gang members “to promote the reputation of the ‘Fairview MOB,’ as well as to protect and defend its members and ‘turf’ from other gangs and threats. The members of the conspiracy engaged in drug trafficking, money laundering, and firearms possession and use, among other crimes. The purpose of these crimes was to promote the continued existence of the ‘Fairview MOB’ by supporting its members financially, which the members called ‘get[ting] money.’”
Several of the members of the gang have been charged in Alaska State court with crimes including murders, assaults, and firearms possession and use. State and federal authorities have been coordinating their investigations of the defendants since January, when there were several shootings and murders in Anchorage. The Anchorage Police Department devoted extra resources to investigate the uptick in violence, which was believed to have been drug-related. Later, the FBI’s Safe Streets Task Force continued the investigation. The FBI Anchorage Safe Streets Task Force is made up [of] FBI Special Agents, Anchorage Police Department Officers, U.S. Coast Guard Investigative Services Agents, Internal Revenue Service investigators, U.S. Postal Service Inspectors and the Bureau of Alcohol, Tobacco, Firearms and Explosives special agents.
First Assistant U.S. Attorney Kevin R. Feldis praised the investigation leading to these arrests, and stated, “Our community must not fall victim to gang violence. In this case, federal, state and local law enforcement worked together to investigate, disrupt and arrest those alleged to be responsible for an ongoing series of dangerous crimes. The federal indictment sends a strong message that those who traffic and sell drugs, illegally possess guns, and engage in violent criminal acts in our neighborhoods will be held accountable.” Mr. Feldis also thanked the Anchorage District Attorney’s Office for its cooperation, as well as the Municipality of Anchorage. The Municipality has partnered with the U.S. Attorney’s Office since 2007 to address gang crimes by supplying prosecutorial resources to the U.S. Attorney’s Office, and an Anchorage municipal prosecutor assisted in the investigation and the indictment of the Fairview MOB.
On Wednesday morning, members of the FBI Safe Streets Task Force, assisted by the DEA, ATF, IRS, APD, AST, and U.S. Marshals Service, executed a number of arrest warrants and served search warrants at six different locations. Agents seized large amounts of cash, guns, drugs, and evidence of gang membership during the search warrants.
Ten of the twelve defendants are currently in custody and are awaiting court appearances before a United States Magistrate Judge. Delano Williams, a/k/a “D,” of Anchorage, and Dearon Walton, a/k/a “Mitch,” of Los Angeles, are not yet in custody. Anyone having information about their whereabouts can call FBI Anchorage Division at 907-276-4441 or Crime Stoppers at 561-STOP to provide information.
“We were able to get a lot of dangerous people off the street today,” said FBI Special Agent in Charge, Deirdre Fike. “And that’s a testament to the dedication of our Safe Streets Task Force members.”
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
9 December 2015
Union County, New Jersey, Man Sentenced to 12 Years in Prison for Recruiting A Girl to Work as A ProstituteRead the Press Release
NEWARK, N.J. – A Plainfield, New Jersey, man was sentenced today to 144 months in prison for arranging sexual encounters involving a 15-year-old girl in return for payment, U.S. Attorney Paul J. Fishman announced.
Ronald Garris Jr., 31, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of sex trafficking of a minor. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Garris admitted that on June 14, 2013, he met a 15-year-old girl at a Best Western Hotel in South Plainfield, New Jersey, and recruited her to work as a prostitute. On June 18, 2013, Garris posted an advertisement on backpage.com that contained explicit photographs of the girl, including her telephone number and the town in which she was located. Garris admitted arranging “dates” in which the girl was expected to perform sexual acts in exchange for payment. Garris also admitted that on June 21, 2013, the girl went to the Howard Johnson Express Inn in New Brunswick, New Jersey, for sexual encounters that he arranged.
In addition to the prison term, Judge Linares sentenced Garris to five years of supervised release. Garris must register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the New Brunswick Police Department and the Middlesex County Prosecutor’s Office with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Danielle Corcione of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender Linda Foster Esq., Newark
Undocumented Alien with Guns Heads to Federal PrisonRead the Press Release
LAREDO, Texas – A Mexican national living illegally in Laredo has been ordered to federal prison following his conviction of having a firearm in violation of federal law, announced U.S. Attorney Kenneth Magidson. Jose Angel Villarreal-Sanchez, 43, pleaded guilty Aug. 11, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted the guilty plea, ordered Villarreal-Sanchez to serve a 24-month sentence. At the hearing, evidence was presented that the defendant had 87.4 grams of cocaine on his property when arrested and possessed the firearm in connection with that drug offense. As an illegal alien, Villarreal-Sanchez is expected to face deportation proceedings following his release from prison.
Following a tip, law enforcement went to Villarreal-Sanchez’s home in Laredo on May 14, 2015, where he had been living illegally for some time. It was there that agents with Homeland Security Investigations (HSI) discovered he possessed a pistol and a firearm in his bedroom. A criminal complaint was filed the following day which further detailed that agents had also found three baggies of cocaine hidden in some chicken feed in Villarreal-Sanchez’s back yard.
Villarreal-Sanchez has been in custody since his arrest on May 14, 2015, where he will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by HSI with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
U.S. Attorney's Office Collects $129,598,713.70 in Civil and Criminal Actions for Crime Victims and U.S. Taxpayers in Fiscal Year 2015Read the Press Release
CHARLOTTE, N.C. - U.S. Attorney Jill Westmoreland Rose announced today that the Western District of North Carolina (WDNC) collected $129,598,713.70 in criminal and civil actions in Fiscal Year 2015 (FY 2015). Of this amount, $12,327,951.04 was collected in criminal actions and $117,270,762.66 was collected in civil actions.*
Attorney General Loretta E. Lynch announced on Thursday, December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The total includes all monies collected asw a result of Justice Department-led enforcement actions and negotiated. civil settleents. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department's combined appropriations for the 94 U.S. Attorney's Offices and the main litigating divisions in that same period.
“The lawyers and staff of this Office work diligently to protect the citizens of our district and deliver justice. We also strive to ensure that criminals are not enriched by their conduct, criminal and civil debts are recovered, and restitution is paid to victims of crimes. A portion of the recovered funds is also returned to the federal treasury to support much needed victim services and to fund ongoing federal, state and local law enforcement efforts and initiatives,” said U.S. Attorney Rose. “It is important to highlight that as a federal agency the Department of Justice, through the work of its employees, collects seven and a half times the amount it costs to run the agency. I would call that a good return on the public’s investment,” Rose added.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. While restitution is paid to victims, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In December 2002, in US v. Reid (3:02-cr-169), Douglas W. Reid was sentenced to 51 months in prison for his involvement in an investment fraud scheme. In FY 2015, $4,118,255 was collected and applied toward the restitution ordered by the court, closing the debt in this case.
In U.S. v. Simmons (3:10-cr-23), WDNC collected $3,055,938, and the money was transferred to the U.S. Clerk of Court to be distributed to victims in this criminal case. Keith Franklin Simmons and his conspirators orchestrated a Ponzi scheme that defrauded 400 victims of more than $40 million. A total of 11 defendants were convicted in connection with this case, with the mastermind of the scheme, Simmons, currently serving a 40-year sentence. Also in FY 2015, in U.S. v. Le (3:14-cr-110) the office collected $1,041,288.52 from Dr. Le, who was sentenced to 18 months in prison in September 2015, on healthcare fraud and tax evasion charges.
In FY 2015, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education. The Western District of North Carolina conducted a joint investigation with the Justice Department’s Civil Division into Adventist Hospital system, which resulted in a recovery of $115 million for the Medicare program. The investigation was based on two qui tam complaints filed in the Western District of North Carolina.
Additionally, the Western District of North Carolina also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $9,166,511,236.73 in cases pursued jointly with these offices. Of this amount, $5,694,936.73 was collected in criminal actions and $9,160,816,300 was collected in civil actions. For example, in FY 2015, WDNC collected $5,600,250 million as part of Duke Energy Carolinas LLC and Duke Energy Progress Inc.’s settlement with the U.S. Attorney’s Offices for the Western, Middle and Eastern Districts of North Carolina.
Additionally, working with partner agencies and divisions, WDNC collected $12,015,903 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used, among other purposes, to restore funds to crime victims.
* In measuring collections recovered in FY 2015, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2015.
Two Men Sentenced to Life Terms in Murder of U.S. Border Patrol Agent Brian TerryRead the Press Release
Assistant U.S. Attorneys Todd Robinson (619) 546-7994 or David Leshner (619) 546-7921
NEWS RELEASE SUMMARY – December 9, 2015
TUCSON, Arizona - Ivan Soto-Barraza and Jesus Lionel Sanchez-Meza were sentenced to life terms today for the first-degree murder of U.S. Border Patrol Agent Brian Terry.
The defendants were also sentenced by U.S. District Judge David C. Bury to additional prison time for other crimes related to the murders. They received four 20-year terms each, which are to be served concurrently, and a 10-year term for discharging a firearm during a crime of violence, which will run consecutive to the life terms.
Soto-Barraza and Sanchez-Meza were convicted by a federal jury in October of first-degree murder, second degree murder, conspiracy to interfere with commerce by robbery, attempted interference with commerce by robbery, using and carrying a firearm during a crime of violence, and assault on Agent Terry and three additional federal officers – Border Patrol Agents William Castano, Gabriel Fragoza, and Timothy Keller.
According to evidence presented at trial, during the evening of December 14, 2010, Soto-Barraza, Sanchez-Meza and three other men were in the United States for the purpose of robbing drug traffickers of their contraband. While Agent Terry and three other Border Patrol Agents were engaged in the performance of their official duties, members of the defendants’ group exchanged gun fire with the agents and one of the shots fired by a member of the defendants’ group killed Agent Terry.
U.S. Attorney Laura Duffy said, “The jury's verdict and life sentences imposed today reflect a just result for a crime which has had a profound effect not only on the family of Agent Brian Terry, but also the men and women who daily put their lives at risk to keep us all safe.”
Two other men, Manuel Osorio-Arellanes and Rosario Rafael Burboa-Alvarez, previously pleaded guilty to first-degree murder for their roles in Agent Terry’s death. Yet another two men, Jesus Rosario Favela-Astorga and Heraclio Osorio-Arellanes, remain fugitives.
At trial, the United States was represented by attorneys from the Southern District of California, Special Attorneys Todd W. Robinson and David Leshner. The U.S. Attorney’s Office for the District of Arizona is recused. The case was investigated by the Federal Bureau of Investigation.
Twenty Five People Charged as Members of $10 Million Illegal Gambling and Money Laundering OperationRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Joshua Mellor (619) 546-9733
NEWS RELEASE SUMMARY – December 9, 2015
SAN DIEGO – Twenty five people are charged in a federal grand jury indictment with participating in an illegal gambling operation that laundered an estimated $10 million in gambling proceeds through Chula Vista and San Diego card rooms in what is believed to be the biggest illegal gambling prosecution in San Diego county in recent memory.
More than 200 agents from the FBI, Homeland Security Investigations and the IRS plus San Diego County Sheriff’s deputies and investigators from the California Department of Justice Bureau of Gambling Control served five search warrants and 22 seizure warrants early today at locations in Chula Vista, San Diego and elsewhere.
The search and seizure locations included the Village Club Card Room, also known as Seven Mile Casino in Chula Vista, and the Palomar Card Room in San Diego. The card rooms are also charged in the indictment, which was unsealed in federal court this morning. Agents seized more than $600,000 during today’s searches of player accounts and bank accounts.
Authorities around the country arrested 21 people so far today at locations around San Diego, Orange and Los Angeles counties as well as San Jose, Las Vegas, New Jersey, Arizona, New Mexico, Pennsylvania and Iowa. Five indicted defendants remain fugitives and warrants have been issued for their arrests.
These defendants, plus the two corporations, are charged in a federal grand jury indictment with various crimes, including running an Illegal Gambling Business, Conspiracy to Launder Monetary Instruments, Failure to Maintain an Anti-Money Laundering Program and Transportation for Prostitution.
Four defendants were arraigned on the indictment in federal court this afternoon before U.S. Magistrate Judge Barbara Major. Craig Kolk, Ricardo Castellanos-Velasquez, Duy Trang were granted bail; Ali Lareybi was detained pending a hearing on Friday at 10 a.m. before Judge Major. The remaining San Diego are scheduled to be arraigned before Judge Major tomorrow. The United States is seeking the removal of out-of-state defendants to San Diego.
According to court documents, some of the defendants allegedly operated unlicensed casinos out of rented Rancho Santa Fe mansions. Up to three times a week, some defendants held intimate high-stakes poker and black jack games in extravagant settings that featured professional card dealers, prostitutes, chefs and waitresses.
Court documents allege that lead defendant David Stroj operated an illegal bookmaking business that extended throughout North America, including San Diego, Los Angeles, Albuquerque, Las Vegas, Chicago, Philadelphia, South Carolina and Florida, as well as locations in Mexico and Canada.
Millions of dollars in proceeds from the gambling events were laundered through the Palomar and Village Club card rooms, Las Vegas casinos, various bank accounts, shell companies, and a bail bonds business. The ring also operated illegal offshore online gaming websites.
“This indictment describes a massive operation that laundered millions of dollars in illicit proceeds,” said U.S. Attorney Laura Duffy. “We are committed to putting an end to any activity that enables criminals to hide illicit proceeds.”
“The defendants in this case allegedly acted as a criminal enterprise that allowed the proceeds from illegal gambling to be laundered through local card rooms thereby avoiding federal financial reporting requirements that help keep our communities safe,” said FBI Special Agent in Charge Eric S. Birnbaum. “Today's indictment is an example of the FBI's commitment to work with our law enforcement partners to identity, disrupt and dismantle complex criminal conspiracies.”
“HSI is committed to serving side-by-side with our partners in the San Diego law enforcement community,” said Dave Shaw, special agent in charge for HSI San Diego. “This investigation has dismantled an illicit gambling operation with ties to money laundering and a cross-border prostitution recruitment scheme. Let it be clear, HSI will aggressively pursue any and all leads involving transnational criminal activity linked to the U.S.-Mexico border.”
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from an illicit poker and blackjack business,” said Special Agent in Charge Erick Martinez of IRS Criminal Investigation. “Taking assets away from illegal operations is one of the government’s most effective tools against money laundering and organized crime.”
California’s Bureau of Gambling Control Chief Wayne Quint, Jr. issued Emergency Closure Orders on both the Palomar and Village Club card rooms effective immediately.
“These casinos allegedly engaged in money laundering and illegal gambling schemes that undermine the well-being of our communities,” said Attorney General Kamala D. Harris. “I thank our California Department of Justice Bureau of Gambling Control Special Agents, as well as our local and federal law enforcement partners, for holding the alleged perpetrators accountable for their financial crimes.”
The investigation, which began in 2013, involved hundreds of intercepted calls and text messages, border crossing records plus extensive surveillance and reviews of financial records.
Stroj, the lead defendant, is described as a large-scale international bookmaker based in the San Diego area. He is charged with conducting an illegal bookmaking business, conducting an illegal poker and blackjack business and conspiracy to launder money.
According to court records, Stroj and codefendants used offshore gambling websites, including betblackdiamond.com, LBTsports.com and diamondsb.ag, to manage his bookmaking business. Stroj used financiers, a business manager, sub agents, money runners, money couriers and debt collectors to conduct the bookmaking business and launder millions of dollars.
The bookmaking clients would make checks out to the casinos such as Palomar and the Village Club, or the Wynn and Bellagio casinos in Las Vegas, and the funds would be deposited into marker or player bank accounts, court records said.
During one intercepted call, Stroj discussed gambling income and how to launder it through a card club: “Palomar is the best way I can wash the money. I don’t have to report it. I just deposit it at the Palomar and there’s no problems for me.”
In another call, Stroj said: “Between you and me, the best way to launder money, you do it through these local casinos in San Diego…that’s how, if someone owes me a 100 ($100,000) and they want to wire it to me, I wire it to the Palomar and leave it in my player’s bank and they give me chips.”
Card rooms are legal in the state of California if they comply with strict regulations. For example, an owner of a gambling establishment must apply for and obtain a valid state gambling license from the Bureau and the California Gambling Control Commission (Commission). The Bureau's Licensing staff will conduct in-depth background investigations on applicants to determine whether they are suitable to hold a state gambling license. Suitability is determined by a number of factors including but not limited to the applicant's honesty, integrity, general character, reputation, habits, and financial and criminal history.
DEFENDANTS Case Number: 15cr2932-BAS
David Stroj
Matthew Greenwood
Jeffrey Broadt
Jeffrey Stoff
*Arturo Diaz-Ramirez
Jaime Behar
Robert Stroj
Craig Kolk
Jean Paul Rojo
Joshua Jones
Ricardo Castellanos-Velasquez
*Alexandra Kane
Bryan Sibbach
Joseph Palermo
Thomas Mallozzi
Stephen Bednar
Christopher Parsons
*Jeffrey Mohr
*Kyle Allen
Michael Hipple
Duy Trang
Alfredo Barba
Ali Lareybi
Harvey Souza
Naseem Salem
*Fugitives
CORPORATIONS
Palomar Card Club
VC Cardroom, Inc., dba Seven Mile Casino and Village Card Club
SUMMARY OF CHARGES
Two counts, Conducting an Illegal Gambling Business, in violation of Title 18 U.S.C. Sec. 1955
Maximum Penalty Five Years in Custody, $250,000 fine, three years supervised release
(Count one is the first 20 defendants in the indictment)
(County two is David Stroj, Jeffrey Stoff, Arturo Diaz-Ramirez, Jaime Behar, Duy Trang and Alfredo Barba)
One count, Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. Sec 1956 (h)
Maximum Penalty 20Years in Custody, $500,000 fine, three years supervised release
(David Stroj, Matthew Greenwood, Jeffrey Broadt, Jeffrey Stoff, Arturo Diaz-Ramirez, Jaime Behar, Robert Stroj, Craig Kolk, Jean Paul Rojo, Ricardo Castellanos-Velasquez, Alexandra Kane, Bryan Sibbach, Joseph Palermo, Christopher Parsons, Jeffrey Mohr, Duy Trang, Ali Lareybi, Naseem Salem and Palomar Card Club)
Two counts, Failure to Maintain Anti-Money Laundering Program , in violation of Title 31 U.S.C. Sec. 5318 (h) (1) and 5322 (a)
Maximum Penalty Five Years in Custody, $250,000 fine, three years supervised release
Once count for each corporation
Two counts, Transportation for Prostitution, in violation of Title 18 U.S.C. Sec. 2421
Maximum Penalty 10 Years in Custody, $250,000 fine, three years supervised release
(Defendants David Stroj and Jeffrey Broadt only)
AGENCIES
FBI
Homeland Security Investigations
Internal Revenue Service
California Department of Justice Bureau of Gambling Control
San Diego County Sheriff’s Department
Tobacco Wholesaler Charged in Tax Fraud SchemeRead the Press Release
BOSTON – The owner of tobacco wholesale businesses in Massachusetts and New Hampshire was charged in an indictment unsealed on Dec. 7, 2015 in U.S. District Court in Springfield in connection with his scheme to defraud Massachusetts and New Hampshire of substantial tobacco tax revenue.Khalid Siddique, 59, of Attleboro, was charged in a 28-count indictment with two counts of conspiracy to commit wire fraud, 10 counts wire fraud, five counts of trafficking in contraband smokeless tobacco and 11 counts of money laundering.
The indictment alleges that between 2006 and 2012, Siddique defrauded Massachusetts and New Hampshire by failing to pay excise taxes on smokeless tobacco and cigars purchased from businesses he owned. It is alleged that co-conspirator Syed Bokhari transferred smokeless tobacco to the Attleboro business without reporting such transfers to the appropriate state tax authorities, as required under the Prevent All Cigarette Trafficking (PACT) Act. Siddique distributed smokeless tobacco without paying any of the required taxes, and filed false tobacco tax returns for cigars which vastly under-stated the amount of tax he owed.
On Thursday, Dec. 3, 2015, additional charges were handed down by a federal grand jury against co-defendant Syed I. Bokhari, 51, in connection with his role in the scheme which defrauded Massachusetts and Connecticut of substantial tobacco tax revenue.
The charges of conspiracy and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each count. The change of trafficking in contraband smokeless tobacco provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each count. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction for each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Commissioner Mark Nunnelly of the Massachusetts Department of Revenue; and Commissioner Kevin B. Sullivan of the Connecticut Department of Revenue Services, made the announcement today. The cases are being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Katharine Wagner of Ortiz’s Springfield Branch Office.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
To the Citizens of Harney County, OregonRead the Press Release
As the Acting United States Attorney for the District of Oregon, I write to the citizens of Harney County to address ongoing attempts by outside individuals and organizations that are making statements and using social media to express views which are clearly contrary to what occurred publicly in an open courtroom. I understand that there are some individuals and organizations who object to the Hammonds returning to prison to serve the remainder of their sentences mandated by statute. I respect their right to peacefully disagree with the prison terms imposed. However, any criminal behavior contemplated by those who may object to the court's mandate that harms someone will not be tolerated and will result in serious consequences. The following is a summary of the facts in United States v. Dwight and Steven Hammond, including the actions and positions taken by this office throughout the course of the case.
Five years ago, a federal grand jury charged Dwight and Steven Hammond with committing arson on public lands, and endangering firefighters. The charges came after the Hammonds rejected an offer to settle the case by pleading guilty to lesser charges and sentences.
Three years ago, after a two-week trial in Pendleton, Oregon, a jury found 70-year old Dwight and his son, 43-year old Steven Hammond, guilty of committing arson on public lands in 2001. Steven Hammond was also found guilty of committing a second arson in 2006. They were found not guilty of other arson charges, and while the jury was deliberating on the remaining charges, the Hammonds negotiated for the dismissal of those charges and a promise from the U.S. Attorney to recommend the minimum sentence mandated by law. The Hammonds assured the trial judge that they knew the law required they serve no less than five years in prison. The U.S. Attorney also agreed they should remain free until sentencing.
The Hammonds had long ranched private and public lands in Eastern Oregon. Although they leased public lands for grazing, they were not permitted to burn the lands without prior authorization from the BLM. In 1999, a BLM employee reminded Steven Hammond of this after he started a fire that escaped onto public land.
At trial, jurors heard from a hunting guide, a hunter and the hunter’s father, who saw the Hammonds illegally, slaughter a herd of deer on public land. At least seven deer were shot with others limping or running from the scene. Less than two hours later, the hunting guide and the hunter and his father, were forced to abandon their campsite because a fire was burning in the area where the deer had been shot. The hunting guide’s testimony and photographs established fires were burning hours before Steven Hammond called the BLM and said he was going to do a burn of invasive species in the area.
A teenage relative, who was with the Hammonds in 2001 when those fires were set, told the jury that he was handed a box of “Strike Anywhere” matches, and Steven Hammond told him to drop lit matches on the ground so as to “light up the whole country on fire.” He did as instructed and the resulting eight to ten foot flames spread quickly. Fearing for his life he was forced to take shelter in a creek. The jury heard evidence that once back at the ranch, Dwight and Steven told him to “keep his mouth shut,” and that “nobody needed to know about the fire.” The fires destroyed evidence of the deer slaughter and took 139 acres of public land out of public use for two years.
The evidence at trial convinced the jury beyond a reasonable doubt that the Hammonds were guilty of the federal crime of arson; that is, maliciously damaging United States property by fire. The jury was neither asked if the Hammonds were terrorists, nor were defendants ever charged with or accused of terrorism. Suggesting otherwise is simply flat-out wrong.
The jury also found Steven Hammond guilty of committing a second arson in 2006. That summer, BLM firefighters were battling several significant fires caused by lightning strikes. The Harney County Fire Marshal imposed a burn ban and a “red flag” warning was in effect. Despite the burn ban, and knowing that firefighters were in the area, Steven Hammond set fires at night without notifying anyone. He did so to save his winter feed. After seeing the fires, the firefighters moved to a safer location. When confronted by a firefighter the next day, Steven Hammond admitted setting the fires, and made no apology for doing so.
The crimes that the jury found the Hammonds committed carried five-year congressionally-mandated minimum sentences. In October 2012, U.S. District Court Judge Michael R. Hogan imposed sentences below what the law required. The U.S. Attorney's Office appealed the sentences imposed by Judge Hogan because they were not the sentences mandated by Congress for the crimes committed. The Ninth Circuit Court of Appeals agreed, and reversed the Hammonds’ sentences. The cases were sent back to the District Court with the directive that the statute’s mandate be followed. The Supreme Court upheld the Ninth Circuit’s decision, and in October 2015, Chief Judge Ann Aiken imposed the five-year prison terms. The U.S. Attorney agreed to allow the Hammonds to self-surrender after the holidays.
Much has been said and written by persons who were not in the Pendleton courtroom during the trial or in Eugene during the sentencing hearings. Much of it is inaccurate. For example, the federal prosecutor has never called the Hammonds terrorists, an allegation made by some of the Hammonds’ supporters. As Acting U.S. Attorney, I do not consider them to be terrorists. At the sentencing hearings, the federal prosecutor described the Hammonds’ contributions to their community and urged the court not to impose the higher sentences recommended by the U.S. Probation office. The prosecutor also assured the court that the sentences mandated by Congress were neither cruel nor unusual given the seriousness of the crimes and the safety threat posed to the hunters (in 2001) and the firefighters (in 2006). The Hammonds received a fair trial, they were found guilty in Pendleton, Oregon, by a jury of their peers, and they ultimately received lawful sentences mandated by Congress.
As Americans, we have the privilege of being served by the finest judicial system in the world. Despite suggestions to the contrary, what took place during this case was a process that followed the time-honored fundamental principles of the rule of law— from the investigation, negotiations, a public trial with the presentation of lawfully admitted evidence, the jury's findings, judicial findings, appellate rulings, to the final imposition of sentence. We stand by the ultimate resolution of this case.
Three German Executives Indicted for Participation in Parking Heater Price-Fixing SchemeRead the Press Release
A federal grand jury in Detroit returned an indictment against Frank Haeusler, Volker Hohensee and Harald Sailer for their alleged participation in a conspiracy to fix the prices of parking heaters.
The indictment charges the three German executives – one current and two former – with conspiring to fix the prices of parking heaters used in commercial vehicles and sold in the aftermarket in the United States and elsewhere. Parking heaters are devices that heat the interior compartment of a motor vehicle independent of the operation of the vehicle’s engine.
“These senior company officials conspired to fix the aftermarket prices of parking heaters sold to hundreds of businesses throughout the United States and North America,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Today’s indictment reinforces the Department of Justice’s commitment to prosecute those who scheme to thwart competition.”
“Today’s charges outline a deceptive scheme to subvert competition in the marketplace,” said Assistant Director in Charge Diego G. Rodriguez. “Those who engage in this type of criminal activity not only stand to defraud consumers, but erode the public’s trust in the competitive bidding process. The FBI will continue to work with the Antitrust Division to ensure the integrity of competition across all industries.”
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, alleges that Hohensee, Haeusler and Sailer worked together with other conspirators to artificially set aftermarket prices for parking heaters used in commercial vehicles in the United States and beyond. The charged executives and their co-conspirators met to discuss parking heater prices, agreed to set a price floor for parking heater kits and also agreed to coordinate the timing and amount of price increases for parking heaters.
According to the charge, the conspiracy existed from as early as October 2007 and lasted until at least Nov. 19, 2012. Hohensee is the former president of Espar Inc. and a resident of Canada; Haeusler is a former vice president of Espar Inc.’s German affiliate, Eberspaecher Climate Control Systems; and Sailer held the same position at Eberspaecher and remains an executive with the company.
On March 12, 2015, Espar Inc. admitted its role in the price-fixing conspiracy and pleaded guilty in the U.S. District Court for the Eastern District of New York. The company was sentenced on June 25, 2015 and has paid a $14.9 million criminal fine.
Today’s charge is the result of an ongoing federal antitrust investigation handled by the Antitrust Division’s New York Office with assistance from the FBI’s New York Field Office. Anyone with information concerning price fixing or other anticompetitive conduct in the parking heater industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Haeusler et al Indictment (464.22 KB)
Ten Individuals Indicted in December Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the November 2015 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JOHN RICHARD FLOURNOY, age 47, of Coalgate, Oklahoma
Theft of Government Funds
Making a False Statement
Forfeiture AllegationThe Indictment alleges that beginning in or about February, 2011, and continuing until on or about December 23, 2013, within the Eastern District of Oklahoma, defendant JOHN RICHARD FLOURNOY, did willfully and knowingly steal and purloin money of the Social Security Administration, a department or agency of the United States, namely, Social Security Administration Supplemental Security Income payments to which he knew he was not entitled, having a value in excess of $1,000.00. It further alleged that on or about July 10, 2012 and on or about July 8, 2013, in the Eastern District of Oklahoma, the Defendant, did knowingly and willfully make and cause to be made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Social Security Administration, an agency of the United States, in that on a Social Security Administration Representative Payee Report the Defendant stated that D.F. resided with Defendant, when in truth and fact, as Defendant well knew, D.F. did not reside with the Defendant. A Forfeiture Allegation is also included in the Indictment.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The charges are in violation of Title 18, United States Code, Section 641, punishable by not more than 10 years imprisonment; up to a $250,000.00 fine and Title 18, United States Code, Section 1001(a)(2), punishable by not more than 5 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace
KAY ANN FARROW, age 69, of Eufaula, Oklahoma
Wire Fraud
Forfeiture AllegationThe Indictment alleges that on or about July 11, 2014, in Eufaula, Oklahoma, in the Eastern District of Oklahoma and elsewhere, KAY ANN FARROW, for the purpose of executing the scheme, caused to be transmitted by means of wire communication in interstate commerce writings, signs, signals, pictures, and sounds. It further alleged that on or about July 16, 2014, in Eufaula, Oklahoma, in the Eastern District of Oklahoma and elsewhere, the Defendant, for the purpose of executing the scheme, caused to be transmitted by means of wire communication in interstate commerce writings, signs, signals, pictures, and sounds. A Forfeiture Allegation is also included in the Indictment.
The charges arose from an investigation by the Eufaula Police Department and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Kristin Harrington
BOB GENE HALL, age 35, of Cushing, Oklahoma a/k/a ROBERT GLEN HENSLEY
Drug Conspiracy
Distribution of Methamphetamine
Forfeiture AllegationThe Indictment alleges that beginning in or about February 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 1, 2015, within the Eastern District of Oklahoma and elsewhere, BOB GENE HALL, a/k/a Robert Glen Hensley, did knowingly and intentionally combine, conspire, confederate and agree with others, both known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance. It further alleged that on or about September 1, 2015, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance. A Forfeiture Allegation is also included in the Indictment.
The charges are a result of an investigation by the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Section 846, 841(a)(1) & 841(b)(1)(A), punishable by mandatory life imprisonment, and up to $20,000,000.00 fine; and Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(B), punishable by not less than 10 years imprisonment, and up to $8,000,000.00 fine.
Assistant United States Attorney Shannon Henson
ANTONIO JUAN PAREDES, age 35,
Assault with a Dangerous Weapon
The Indictment alleges that on or about July 21, 2012, in the Eastern District of Oklahoma, at the Choctaw Travel Plaza in Broken Bow, Oklahoma, in Indian Country, within the special maritime and territorial jurisdiction of the United States, the defendant, ANTONIO JUAN PAREDES, an Indian, assaulted M.C. with a dangerous weapon, with the intent to do bodily harm.
The charge is a result of an investigation by the Choctaw Nation Tribal Police, Broken Bow Police Office and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1153, 1151 & 113(a)(3), punishable by no more than 10 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Edward Snow
NICKOLLE DENISE DIXON, age 24, of Fort Smith, Arkansas
Embezzlement and Theft from Indian Tribal Organizations
The Indictment alleges from in or about January 2013 to on or about January 5, 2014, in the Eastern District of Oklahoma, the defendant, NIKOLLE DENISE DIXON, did steal, embezzle and knowingly and willfully convert to her own use monies in excess of $1,000.00 which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma, an Indian tribal organization.
The charge is a result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Section 1163, punishable by no more than 5 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Edward Snow
ALLEN MICHAEL SCOTT, age 22, of Pottsboro, Texas
DUNG THI NGOC NGUYEN, age 33, of Carrollton, Texas
Theft by Officers or Employees of Gaming Establishment on Indian Lands
The Indictment alleges from on or about February 9, 2015, to on or about February 20, 2015, in the Eastern District of Oklahoma, ALLEN MICHAEL SCOTT and DUNG THI NGOC NGUYEN, defendants herein, while ALLEN MICHAEL SCOTT was an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charge is a result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1168(b) & 2, punishable by no more than 20 years imprisonment, up to $1,000,000.00 or both.
Assistant United States Attorney Edward Snow
RODNEY GENE BENNETT, age 25, of Wetumka, Oklahoma
Possession with Intent to Distribute Methamphetamine
The Indictment alleges on or about August 5, 2015, in the Eastern District of Oklahoma, the defendant, RODNEY GENE BENNETT, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge is a result of an investigation by the Seminole Nation Tribal Police and the Drug Enforcement Administration. The charge is in violation of Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(B), punishable by not less than 5 years imprisonment, up to $5,000,000.00 or both.
Assistant United States Attorney Tim Hammer
SAMMIE WAYNE COX, age 51, of Spiro, Oklahoma
Possession with Intent to Distribute Methamphetamine
Possession of Firearm in Furtherance of a Drug Trafficking Crime
Felon in Possession of FirearmThe Indictment alleges on or about October 30, 2015, within the Eastern District of Oklahoma, the defendant, SAMMIE WAYNE COX, did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of methamphetamine (actual), a Schedule II controlled substance. It also alleged On or about October 30, 2015, within the Eastern District of Oklahoma, the defendant, did knowingly possess firearms in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count One and the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms which had been shipped and transported in interstate commerce.
The charges are a result of an investigation by the Oklahoma Highway Patrol, the Oklahoma Bureau of Narcotics and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(A)(viii), punishable by not less than 10 years imprisonment, up to $10,000,000.00 or both; Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years imprisonment, up to $250,000.00 fine; and Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment, up to $250,000.00 fine or both.
Assistant United States Attorney Tim Hammer
DONALD RAY McCOY, Jr., age 36, of Stilwell, Oklahoma
Felon in Possession of Firearm
The Indictment alleges On or about July 29, 2015 and continuing until July 30, 2015, within the Eastern District of Oklahoma, the defendant, DONALD RAY McCOY, Jr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charge is a result of an investigation by the Tahlequah Police Department, District 27 Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The charge is in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) & 924(e)(1), punishable by not less than 15 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Dean Burris
Tahlequah Man Sentenced to 63 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DEREK ALLEN CLELL HORNEY, age 30, of Tahlequah, Oklahoma, was sentenced to 63 months imprisonment and 5 years supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii).
The charges arose from an investigation by the Tahlequah Police Department and the Drug Enforcement Administration.
The Indictment alleged that on or about November 14, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute fifty (50) grams or more of Methamphetamine (actual), a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.
St. Louis County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – RONALD OLDANI was sentenced to 60 months in prison, followed by ten years supervised release involving his possession of child pornography.
Oldani, St. Louis City, pled guilty in September to two felony counts of possession of child pornography. He appeared today for sentencing before United States District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney's Office.