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8 December 2015
New York Man Charged with Bank FraudRead the Press Release
PHILADELPHIA - Stephen Jemal, 59, of Brooklyn NY, was charged today by indictment with three counts of bank fraud. These offenses arise from the defendant's obtaining a series of loans and loan modifications, extensions and renewals from Republic First Bank (Republic) totaling approximately $9.3 million, by submitting fraudulent financial documents that falsely stated that Jemal owned a stock portfolio valued, at different times, from approximately $26 million to approximately $60 million, when, in fact, his stock portfolio never contained stock worth as much as $2 million. When Republic began foreclosure proceedings after a nearly five-year relationship with Jemal, the loans were in default by an aggregate total of almost $6 million.
If convicted the defendant faces a maximum possible sentence of 90 years in prison.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Neosho Man Indicted for Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man was indicted by a federal grand jury today for illegally possessing several firearms, including a machine gun.
Andrew J. Sisco, 30, of Neosho, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment charges Sisco with being a felon in possession of firearms. Sisco allegedly possessed a Cobray 9mm fully automatic machine gun, a Mossberg 7mm rifle, a Savage Arms 30-06 caliber rifle, a Tanfoglio .22-caliber rifle, a Sig Sauer 9mm handgun, a Hi-Standard 12-gauge shotgun and a Browning Arms Company 30-06 rifle on Aug. 26, 2015.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sisco has two prior felony convictions for fleeing and eluding law enforcement and felony convictions for driving under the influence (third or subsequent offense), felon in possession of a firearm and aggravated battery.
Sisco is also charged with one count of illegally possessing a machine gun and one count of illegally possessing a silencer.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Newton County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Muse Man Pleads Guilty to Firearm Possession, Transportation of Illegally Taken WildlifeRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RICKY DALE BARRON, age 61, of Muse, Oklahoma, pled guilty to an Information charging him with Felon in Possession of Firearm, in violation of Title 18, United States Code, Section 641. It also charged him with Interstate Transportation of Illegally Taken Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(2).
The charges arose from an investigation by the United States Forest Service.
The Information alleged that On or about October 25, 2015, within the Eastern District of Oklahoma, the defendant, RICKY DALE BARRON, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Remington Model 1100, 12 gauge, shotgun, serial number N280403V, which had been shipped and transported in interstate commerce. It further alleged that From on or about December 14, 2014 to on or about April 2, 2015, within the Eastern District of Oklahoma, and elsewhere, the defendant, knowingly transported wildlife, to wit: a black bear and parts thereof, in interstate commerce from Oklahoma to Arkansas, when in the exercise of due care, the defendant should have known that said wildlife was taken and possessed in a violation of and in a manner unlawful under the laws and regulations of Oklahoma.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is 10 years imprisonment and/or a fine of up to $250,000.00 for Count One and 1 year imprisonment and/or a fine of up to $100,000.00 for Count Two.
Assistant United States Attorney Tim Hammer represented the United States.
Miami-Dade County Resident Sentenced for Stealing Tax RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 30 months in prison, followed by 3 years of supervised release and was ordered to pay joint and several restitution, in the amount of $891,997.31.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Franklin Adderley, Chief, Fort Lauderdale Police Department, made the announcement.
Bobby Cooks, 40, previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to court documents, between 2011 and 2014, Cooks received three United States Treasury tax refunds totaling $1,428,027 based on fraudulent tax returns filed with the IRS. Specifically, on March 11, 2011, Cooks received a tax refund in the amount of $528,071.33 based on a false 2010 tax return filed in Cooks’ name. The tax return claimed significant gambling winnings from, and tax withheld by, a casino. In fact, Cooks won no such money, no such tax was withheld, and the Form W2-G attached to the tax return showing the purported winnings was fake.
Court documents also state that on November 22, 2013, Cooks received a U.S. Treasury check in the amount of $332,534 based on a fraudulent tax return filed in another individual’s name. Cooks obtained a Florida driver’s license in the name of the individual using a fake Georgia birth certificate, and opened bank accounts in the victim’s name where Cooks then deposited the fraudulent tax refund check. On September 23, 2014, Cooks received another U.S. Treasury check in the amount of $567,422 based on a 2011 fraudulent tax return filed in the name of Cooks’ father, who had the same name as the defendant and who had been deceased since 2008. Cooks deposited the check in a bank account that he set up in his name.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
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.
Men Found Guilty of KidnappingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that a jury convicted AKIN SEAN EL PRECISE BEY, of Knightdale, North Carolina, and GEORGE LINCOLN STANLEY IV, of Durham, North Carolina of conspiracy to commit kidnapping and kidnapping. AKIN SEAN EL PRECISE BEY was also convicted of being a felon in possession of a firearm and ammunition. The jury returned its verdict following a trial in federal court before Senior United States District Judge W. Earl Britt.
The investigation showed that the victim had been kidnapped from his home after returning from attending a boxing match in Las Vegas. The kidnappers laid in wait at the victim’s house and, after beating him badly, took him to a storage unit where he was held and tortured. Crime scene technicians recovered the kidnappers’ fingerprints, as well as the victim’s blood, within the storage unit. Zip ties were still attached to a chair within the storage unit and the victim’s personal identification was located on a table. The victim, who was severely injured with a swollen eye, ligature marks on his wrists and ankles, and duct tape still on his face and neck, was eventually located by law enforcement on a dark dirt road in Nash County, North Carolina. A search warrant executed at BEY’S house uncovered six firearms; a .32 caliber pistol, Judge Long Colt revolver, .40 caliber pistol, .38 caliber revolver, a rifle, and a 12 gauge shotgun. At the time, BEY was prohibited from possessing any firearms as he had been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
At trial, the evidence showed an elaborate scheme to target and kidnap the victim in order to steal money from him. The defendants broke into the victim’s house when they knew the victim would be out of town. The defendants waited in the victim’s home and attacked the victim when he arrived. The defendants ransacked the victim’s home looking for money. The defendants demanded money of the victim and kidnapped him where they assaulted the victim further in a storage unit and demanded more money. A large sum of cash was taken from the victim. At the time of their arrests, BEY had over $55,000.00 cash in his home and STANLEY had over $21,000.00 cash in his pocket.
Two other individuals, Hubert Dixon, of Durham, North Carolina, and Judson Hugh Debnam, of Raleigh, North Carolina, were also charged with crimes related to this incident and pleaded guilty to conspiracy to commit robbery. The defendants are set to be sentenced at the March 28, 2016 term of Court.
The investigation and arrests were handled by the Raleigh Police Department, Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Raleigh/Wake City-County Bureau of Identification, State Bureau of Investigation, Wake County Sheriff’s Office, Durham County Sheriff’s Office and Johnston County Sheriff’s Office. Special Assistant U.S. Attorney Jonathan Holbrook and Assistant U.S. Attorney Dena King represented the government. Mr. Holbrook is a prosecutor with the Wake County District Attorney’s Office. Wake County District Attorney Lorrin Freeman has assigned Mr. Holbrook to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Holbrook’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Member of Computer Hacking Group “NullCrew” Pleads Guilty in Cyber-Attacks on Corporations, Universities and GovernmentsRead the Press Release
CHICAGO — A Tennessee man pleaded guilty in federal court today to charges he helped launch cyber-attacks on corporations, universities and governmental entities throughout the world.
As a member of the hacking group “NullCrew,” TIMOTHY JUSTEN FRENCH exploited computer vulnerabilities to obtain unauthorized access and steal confidential information, including encrypted personal data of thousands of individuals. French acknowledged in a plea declaration that it is the government’s position that his cyber-attacks caused at least $792,000 in monetary loss to the victims, which included companies, universities and governmental entities.
French, 21, of Morristown, Tenn., pleaded guilty to one count of intentionally damaging a protected computer without authorization. The conviction carries a maximum sentence of ten years in prison. U.S. District Judge Gary Feinerman scheduled a sentencing hearing for March 9, 2016, at 3:45 p.m.
NullCrew is a group of computer hackers who carried out a series of cyber-attacks against businesses, universities and governmental entities in the United States and throughout the world. To publicize their intrusions, French and other members of NullCrew maintained Twitter accounts, including @NullCrew_FTS and @OfficialNull, which they used to announce their cyber-attacks, ridicule their victims and publicly disclose the confidential information they had stolen, according to the plea declaration. French hid his true identity by using Internet aliases, including “Orbit,” “@Orbit_g1rl,” “crysis,” “rootcrysis,” and “c0rps3.”
French admitted in the plea declaration that he participated in at least seven cyber-attacks while a member of NullCrew from 2012 to 2014. One of the attacks was carried out against a large Canadian telecommunications company, while another attack targeted a U.S. state, according to the plea declaration.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney William Ridgway.
Plea Declaration
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Individual for Theft of Valuable Source Code from Former EmployerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of XU JIAQIANG for theft of a trade secret, in connection with XU’s theft of proprietary source code from XU’s former employer. XU was arrested yesterday by the FBI in White Plains and was presented today in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Preet Bharara stated: “As alleged, Xu Jiaqiang cheated his former employer through a scheme to steal valuable proprietary source code and sell it to other companies. Theft of trade secrets of the type alleged against Xu drains the lifeblood of innovation and competition, and is rightly a serious federal crime. I would like to thank the FBI for its determined efforts in this investigation, and the U.S. Department of Justice’s National Security Division for its assistance and support.”
Assistant Director-in-Charge Diego Rodriguez stated: “Proprietary software is proprietary for a reason – a company invests in its development, safeguards it and it generates revenue. It is not for employees to take the information they’ve been entrusted with and profit themselves. As alleged, Xu attempted to sell his former employer’s proprietary software code to others. The FBI is committed to enforcing laws that protect U.S. companies from trade secret thefts.”
According to the allegations contained in the criminal Complaint[1]:
From November 2010 to May 2014, XU worked as a developer for a particular U.S. company (the “Victim Company”). As a developer, XU enjoyed access to certain proprietary software (the “Proprietary Software”), as well as that software’s underlying source code (the “Proprietary Source Code”). The Proprietary Software is a clustered file system developed and marketed by the Victim Company in the United States and other countries. A clustered file system facilitates faster computer performance by coordinating work among multiple servers. The Victim Company takes significant precautions to protect the Proprietary Source Code as a trade secret. Among other things, the Proprietary Source Code is stored behind a company firewall and can only be accessed by a small subset of the Victim Company’s employees. Before receiving Proprietary Source Code access, Victim Company employees must first request and receive approval from a particular Victim Company official. Victim Company employees must also agree in writing at both the outset and the conclusion of their employment that they will maintain the confidentiality of any proprietary information. The Victim Company takes these and other precautions in part because the Proprietary Software and the Proprietary Source Code are economically valuable, which value depends in part on the Proprietary Source Code’s secrecy.
In May 2014, XU voluntarily resigned from the Victim Company. XU subsequently communicated with one undercover law enforcement officer (“UC-1”), who posed as a financial investor aiming to start a large-data storage technology company, and another undercover law enforcement officer (“UC-2”), who posed as a project manager, working for UC-1. In these communications, XU discussed his past experience with the Victim Company and indicated that he had experience with the Proprietary Software and the Proprietary Source Code. On March 6, 2015, XU sent UC-1 and UC-2 a code, which XU stated was a sample of XU’s prior work with the Victim Company. A Victim Company employee (“Employee-1”) later confirmed that the code sent by XU included proprietary Victim Company material that related to the Proprietary Source Code.
XU subsequently informed UC-2 that XU was willing to consider providing UC-2’s company with the Proprietary Source Code as a platform for UC-2’s company to facilitate the development of UC-2’s company’s own data storage system. XU informed UC-2 that if UC-2 set up several computers as a small network, then XU would remotely install the Proprietary Software so that UC-1 and UC-2 could test it and confirm its functionality.
In or around early August 2015, the FBI arranged for a computer network to be set up, consistent with XU’s specifications. Files were then remotely uploaded to the FBI-arranged computer network (the “Xu Upload”). Thereafter, on or about August 26, 2015, XU and UC-2 confirmed that UC-2 had received the Xu Upload. In September 2015, the FBI made the Xu Upload available to a Victim Company employee who has expertise regarding the Proprietary Software and the Proprietary Source Code (“Employee-2”). Based on Employee-2’s analysis of technical features of the Xu Upload, it appeared to Employee-2 that the Xu Upload contained a functioning copy of the Proprietary Software. It further appeared to Employee-2 that the Xu Upload had been built by someone with access to the Proprietary Source Code who was not working within the Victim Company or otherwise at the Victim Company’s direction.
On December 7, 2015, XU met with UC-2 at a hotel in White Plains, New York (the “Hotel”). XU stated, in sum and substance, that XU had used the Proprietary Source Code to make software to sell to customers, that XU knew the Proprietary Source Code to be the product of decades of work on the part of the Victim Company, and that XU had used the Proprietary Source Code to build a copy of the Proprietary Software, which XU had uploaded and installed on the UC Network (i.e., the Xu Upload). XU also indicated that XU knew the copy of the Proprietary Software that XU had installed on the UC Network contained information identifying the Proprietary Software as the Victim Company’s property, which could reveal the fact that the Proprietary Software had been built with the Proprietary Source Code without the Victim Company’s authorization. XU told UC-2 that XU could take steps to prevent detection of the Proprietary Software’s origins – i.e., that it had been built with stolen Proprietary Source Code – including writing computer scripts that would modify the Proprietary Source Code to conceal its origins.
Later on December 7, 2015, XU met with UC-1 and UC-2 at the Hotel. During that meeting, XU showed UC-2 a copy of what XU represented to be the Proprietary Source Code on XU’s laptop. XU noted to UC-2 a portion of the code that indicated it originated with the Victim Company as well as the date on which it had been copyrighted. XU also stated that XU had previously modified the Proprietary Source Code’s command interface to conceal the fact that the Proprietary Source Code originated with the Victim Company and identified multiple specific customers to whom XU had previously provided the Proprietary Software using XU’s stolen copy of the Proprietary Source Code.
* * *
The Complaint charges XU, 29, with one count of theft of a trade secret, in violation of Title 18, United States Code, Section 1832, which carries a maximum sentence of ten years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the FBI’s outstanding investigative efforts. XU’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the National Security Division of the U.S. Department of Justice.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit and its White Plains Division. Assistant U.S. Attorneys Benjamin Allee and Ilan Graff and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are involved in the prosecution.
The charge in the Complaint constitutes merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Who Held Nurse Practioner Hostage at VA Hospital Charged and ArrestedRead the Press Release
DENVER – Johnie Wayne Roth, age 77, of Aurora, was arrested by Special Agents with the Veterans Affairs (VA) Office of the Inspector General on charges of assaulting, impeding or interfering with an employee of the United States in performance of official duties and use of a deadly or dangerous weapon, the United States Attorney’s Office announced. Roth, who made his initial appearance on Monday, December 7th, was advised of his rights as well as the charge pending against him. He is in the custody of the U.S. Marshals pending a detention hearing scheduled for Thursday, December 10th. A preliminary hearing has been scheduled for December 21, 2015.
According to the facts contained in the arrest affidavit, on the morning of December 3, 2015, Roth had a medical appointment at the Veterans Affairs Medical Center in Denver with a nurse practitioner in Ambulatory Care. As Roth and the nurse practitioner met in her office, the defendant produced a handgun from a bag that he had brought with him to his appointment. Investigators learned that Roth taken over the room, and pointed the gun at his head, and waived it around the room. He also had additional ammunition in his bag. He intended to fire shots into the ceiling so that the VA Police would respond. He did not fire a shot. Instead, the nurse practitioner was able to call for help. It was determined that Roth brought the gun because he wanted the VA Police to shoot him.
As the VA Police responded, the Acting Deputy Chief was able to enter the room and establish a rapport with Roth. Roth wanted the Deputy Chief to shoot him. Other responding officers, who were outside the door, heard the movement of furniture and stormed into the room. Once inside the Deputy Chief instructed them to stand down, as he was able to recover the weapon, a .22 caliber six shot revolver, from Roth. The VA Police took Roth into custody.
“The Veterans Affairs police officers, including the acting deputy chief, showed courage in confronting the defendant, convincing him to let his hostage go and to drop his weapon,” said U.S. Attorney John Walsh. “Roth wanted to die at the hands of the police, and thanks to their law enforcement training, the VA Police handled this crisis with valor.”
If convicted, Roth faces not more than 20 years in federal prison, and up to a $250,000 fine.
The defendant was arrested by the Veterans Affairs Police Department. The subsequent investigation was conducted by the VA Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Jason St. Julien.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. A Criminal Complaint is a probable cause charging document. Anyone accused of committing a federal felony violation of law has a Constitutional right to be indicted by a grand jury.
Man Charged with Assaulting Coast Guard Officers Arraigned in Key WestRead the Press Release
A Monroe County resident is charged with assaulting United States Coast Guard officers.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Rear Admiral Scott A. Buschman, Commander of the United States Coast Guard 7th District, made the announcement.
Daniel Michael Szabo, 40, of Monroe County, Florida, was arraigned yesterday on a federal indictment charging him with assault on United States Coast Guard officers, in violation of Title 18, United States Code, Section 111, and other offenses.
According to court records, on August 21, 2015, Szabo was on his boat, threatening to commit suicide, when United States Coast Guard officers arrived on scene. After Coast Guard personnel attempted to board Szabo’s vessel, the defendant fled and in the process pulled out a handgun and fired approximately six rounds (shots) at the Coast Guard vessel. Following a thirty minute pursuit, Szabo turned his boat towards and struck the Coast Guard vessel, before being apprehended.
Mr. Ferrer commended the efforts of the U.S. Coast Guard. The case is being prosecuted by Special Assistant U.S. Attorney Jeremy McCall.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Man Arrested in Florida Indicted in Wichita Bank RobberyRead the Press Release
WICHITA, KAN. - A federal grand jury Tuesday indicted a man who police arrested in Florida on charges of robbing a Wichita bank, U.S. Attorney Barry Grissom.
Antonio Adam Smiley, 30, Zephyrhills, Fla., is charged with one count of bank robbery. In court records, it is alleged that on Nov. 28, 2015, Smiley robbed the Emprise Bank branch at 2323 S. Hydraulic. Investigators allege he entered the bank about 4:45 p.m. wearing a baseball cap and sunglasses. He used a cellular telephone to try to hide his face from surveillance cameras during the robbery and fled the bank with cash. After releasing surveillance photos from the bank, police received information leading them to Smiley.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER GRAND JURY INDICTMENTS
Roy E. Walls-Guiden, 28, Wichita, Kan., and Demon L. Anderson, 26, Wichita, Kan., are charged with two counts of robbery, one count of brandishing a firearm during a robbery and one count of carrying a firearm during a robbery.
The indictment alleges the two men were carrying guns on Dec. 4, 2015, when they robbed the Valero station at 248 S. Hillside and then the Petro America station at 2838 W. Central, both in Wichita. According to court records, a Wichita police officer saw the second robbery, leading to the arrest of the defendants.
If convicted, the crimes carry the following penalties:
Robbery (Counts 1 and 2): A maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
Brandishing a firearm in a robbery (Count 3): Not less than seven years, consecutive to the robbery count, and a fine up to $250,000.
Carrying a firearm during a robbery (Count 4): Not less than five years, consecutive to the robbery count, and a fine up to $250,000.
The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Cynthia K. Griffith, 57, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges that while she worked as a secretary for Griffith Steel Erection, Inc., she embezzled approximately $247,000 from the company. She wrote company checks for her personal expenses.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Assistant U.S. Attorney Aaron Smith is prosecuting. The Wichita Police Department investigated.
Jon Dean Pickerill, 54, Wichita, Kan., is charged with one count of concealing assets from a bankruptcy court and one count of fraudulently transferring funds that belonged to a bankruptcy case. The crimes are alleged to have occurred in 2011 and 2012 in Wichita, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Bankruptcy Trustee and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Eric A. Crawley, 51, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 16, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Secret Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Adrian G. Lawton, 32, Wichita, Kan., and Erica E. Johnson, 23, Wichita, Kan., are charged with one count of possession of counterfeit $10 bills. In addition, Lawton is charged with one count Lawton is charged with one count of making counterfeit $10 bills. The crimes are alleged to have occurred June 5, 2015, in Wichita, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
James L. Scaia, 36, Wichita, Kan., and Deborah S. Fantastic, 43, Wichita, Kan., are charged with one count of making counterfeit $20 bills and one count of passing a counterfeit $20 bill. In addition Fantastic is charged with one count credit card fraud. The crimes are alleged to have occurred in August 2015 in Wichita, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jamie Santiago-Interiano, 25, Wichita, Kan., Jose Anibal Jacome-Leon, 23, Wichita, Kan., and Ivan Rodriguez-Cordova, 40, Wichita, Kan., are charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Nov. 24, 2015, in Sedgwick County, Kan.
If convicted, the defendants face a penalty of not less than 10 years and a fine up to $4 million on each count. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Christian D. Avila-Ramirez, 33, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 24, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Verlarina Ruth Collins, 48, Winfield, Kan., is charged with one count of theft of Social Security funds, three counts of aggravated identity theft, one count of making a false statement to the government and nine counts of wire fraud. The crimes are alleged to have occurred from 2006 to 2013.
Upon conviction, the crimes carry the following penalties:
Theft of Social Security funds: A maximum penalty of 10 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutively on each count.
Making a false statement to the government: A maximum penalty of five years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
The Social Security Administration investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Los Angeles-Based U.S. Attorney’s Office Collected over $42 Million in Civil and Criminal Actions during 2015 Fiscal YearRead the Press Release
LOS ANGELES – The United States Attorney’s Office for the Central District of California collected $42,370,356 as a result of criminal prosecutions and civil lawsuits during the 2015 fiscal year, United States Attorney Eileen M. Decker announced today.
The amount collected for U.S. taxpayers during FY2015 is the result of nearly $19 million collected in criminal actions, and approximately $23.4 million collected in civil actions.
Additionally, the U.S. Attorney’s Office worked with other offices and Justice Department components to collect an additional $10.54 billion, most of which was related to massive settlements with Bank of America and Standard & Poor’s Financial Service in cases in which proceeds were collected in FY 2015, which ended on September 30.
The U.S. Attorney’s Office also collected $33,353,717 in criminal and civil asset forfeiture proceedings. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“Year after year, my office is involved in the collection of hundreds of millions of dollars – much of which goes the U.S. Treasury to fund government operations and to victims of crime,” said United States Attorney Eileen M. Decker. “Assistant U.S. Attorneys in this office continually demonstrate their deep commitment to being fiscally responsible and working on behalf of the victims of crime.”
The United States Attorney’s Office for the Central District of California is based in Los Angeles and has branch offices in Santa Ana and Riverside. Currently, approximately 230 Assistant United States Attorneys serve more than 19 million residents of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
The U.S. Attorney’s Office and the other litigating divisions in the Justice Department’s are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, 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.
Attorney General Loretta E. Lynch announced last week that the Justice Department collected $23.1 billion in civil and criminal actions in FY 2015 (see: http://go.usa.gov/cBpWY).
The largest came from financial institutions whose risky practices led up to the 2008 financial crisis and collapse of the U.S. housing market, including $8.2 billion of the settlement in August 2014 with Bank of America Corporation, which included $5 billion in penalties for claims under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) – the largest FIRREA penalty ever - and $687 million from the February 2015 settlement with McGraw Hill Financial Inc. and Standard & Poor’s Financial Services LLC.
Local Residents Indicted in Multi-Million Dollar Ketamine ConspiracyRead the Press Release
HOUSTON – Four people have been charged in a $17 million health insurance fraud scheme involving the sale of ketamine to patients without a valid prescription, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Catherine A. Hermsen, Food and Drug Administration - Office of Criminal Investigations (FDA-OCI), Kansas City Field Office.
Dr. Michael Kelly, 71, of The Woodlands, surrendered to federal authorities today as did Priscilla Orosco, 32, and Joyce Ann Gilmore-James, 67, both of Houston. Kelly is expected to make his initial appearance before U.S. Magistrate Judge Frances Stacy at 10:00 a.m. today. Orosco and Gilmore-James are also expected to appear today, either at 10:00 a.m. or at 2:00 p.m. before Judge Stacy. A fourth defendant - Tamara Mitchell, 49, of Fulshear - had been originally charged by criminal complaint and made an initial appearance. She is set for her arraignment on the indictment before Judge Stacy Dec. 11, 2015, at 10:00 a.m.
The defendants are charged with conspiracy to commit wire fraud, unlawfully distributing a controlled substance and aiding the unlawful distribution of ketamine.
The four-count indictment alleges Mitchell was an owner of two pharmacies, Diamond and Save Rite, that sold controlled substances as part of a marketing scheme, rather than for legitimate medical need. Diamond Pharmacy and Save Rite almost exclusively sold compounded creams containing prescription drugs and ketamine to the public by using pre-signed prescriptions to fill orders for customers, who had the “right” insurance plans, according to the charges .
Mitchell allegedly hired pharmacy technician Orosco and pharmacist Gilmore-James to conduct the day-to-day operations of the business. The indictment alleges Diamond Pharmacy paid Kelly thousands of dollars per month to provide pre-signed prescriptions without examining patients. Diamond and Save Rite then allegedly billed insurance companies for compounded creams containing controlled substances.
The scheme allegedly resulted in $17 million in fraudulent billings over the course of the two-year conspiracy.
“U.S. consumers rely on the FDA to ensure that the prescription medications they use are both safe and effective,” said Hermsen. “We are committed to bringing to justice those who attempt to circumvent FDA’s consumer protections.”
If convicted of the wire fraud conspiracy, the four defendants face up to 20 years in federal prison and a possible $250,000 maximum fine. They also face another 10 years for both the conspiracy to distribute and for aiding the distribution of Ketamine as well as a possible $500,000 fine.
The charges were the result of an investigation conducted by FDA-OCI and Drug Enforcement Administration.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Leader of “Trinitarios” Gang Sentenced in Manhattan Federal Court to 10 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANDY SOSA – the former leader of the “Trinitarios,” a violent street and prison gang composed primarily of individuals of Dominican descent – was sentenced in Manhattan federal court to 10 years in prison for his participation in a massive conspiracy to distribute narcotics and use and possess firearms. SOSA previously pled guilty before U.S. Magistrate Judge James L. Cott and was sentenced today by U.S. District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara said: “Andy Sosa is responsible for funneling massive quantities of heroin, marijuana, prescription drugs and cocaine onto the streets of the Bronx, using violence to intimidate anyone who stood in his way. Thanks to the concerted, combined, and coordinated efforts of federal and local law enforcement, Sosa’s brutal reign has ended.”
According to the indictment, and other documents filed in the case, as well as statements made during the sentencing proceedings:
From approximately 2009 until his arrest in July 2014, SOSA was immersed in activity with the Trinitarios street gang, which has terrorized certain neighborhoods of the Bronx. He led the “Greenbridge” chapter of the Trinitarios, which controlled the drug markets in the area of Kingsbridge Road and Webb Avenue. Undeterred by the arrests of his fellow Trinitarios in a 2011 sweep, SOSA filled the void, and continued to sell drugs – cocaine, marijuana, pills and what amounted to kilogram quantities of heroin over the years – in that area of the Bronx. Because of SOSA’s leadership rank in the gang, other Trinitario members and associates sold drugs in that area only with his permission or at his direction. SOSA’s drug distribution network also extended beyond the Bronx; the investigation revealed that he gave hundreds of grams of heroin to others to sell for him in Connecticut.
SOSA also kept firearms at his apartment in the Bronx, for use by Trinitarios to protect their drug distribution territory and themselves from rival gang members, or for use in retaliation against other neighborhood gangs. Indeed, SOSA was shot by members of a rival gang, known as “Dominicans Don’t Play” (or “DDP”). He carried a 9mm firearm for protection, and his apartment was used to store guns (including, at various times, a .45 caliber handgun, a .38 caliber handgun, a .357 magnum, and a 9mm) and to stash drugs for gang members. SOSA ran Trinitario meetings at his apartment on a number of occasions.
Mr. Bharara praised the work of the New York City Police Department (“NYPD”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Drug Enforcement Administration (“DEA”), and the Department of Homeland Security (“HSI”).
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Justina Geraci, Rebecca Mermelstein, and Rachel Maimin are in charge of the prosecution.
Laredoan Gets Max for Possessing More Than 36K Child Pornography ImagesRead the Press Release
LAREDO, Texas – A 42-year-old Laredo man has been ordered to serve the maximum sentence in federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Mark Dawson, acting special agent in charge of Homeland Security Investigations (HSI) in San Antonio and Webb County Sherriff Martin Cuellar. Oscar Herrera III, 42, pleaded guilty to the charge in March 2015.
Today, U.S. District Judge Marina Garcia Marmolejo took into consideration that Herrera possessed more than 36,000 images of child pornography on several media devices and handed him the statutory maximum sentence of 10 years. Additional information was also presented today, including a statement by one of the victims in the case which was read in court. Herrera was further ordered to pay restitution to three known victims and will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of the plea, the court heard that an investigator with the Webb County Sheriff’s Office, while using peer-to-peer software, was able to successfully download various files containing child pornography from an IP address associated with Herrera. As a result of this information, HSI special agents were contacted to assist in the investigation.
In November 2014, agents executed a search warrant at Herrera’s residence, at which time they seized various electronic devices. A preliminary forensic analysis on those devices led to an initial discovery of 3,270 images of child pornography and 444 videos containing child pornography. Further investigation of additional media devices led to the total discovery of nearly four terabytes of images and video. Herrera admitted he downloaded and viewed videos of child pornography and that he knew that it was wrong.
The arrest of Herrera was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
This case, prosecuted by Assistant U.S. Attorney Christopher A. dos Santos, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kalamazoo Tax Preparer, Fontrice Lenee Charles, Guilty on Multiple Counts of Tax FraudRead the Press Release
"#1 Tax Lady" found guilty of filing multiple phony tax returns
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles announced today that Fontrice Lenee Charles, 39, of Kalamazoo, Michigan, was found guilty of 27 felony tax charges following a four-day jury trial. The charges stem from Charles’s Kalamazoo business, "#1 Tax Lady."
The jury found Charles guilty of 25 counts of filing false tax returns on behalf of clients between January 17, 2011 and February 4, 2014. Each of these counts carries a maximum possible sentence of five years in prison and other penalties. The evidence showed that Charles supplied false information designed to ensure hefty refunds. Further, the jury was advised that Charles prepared a total of 967 such tax returns during this period, resulting in improper tax refunds of approximately $4,000,000.
The jury also found Charles guilty of filing her own false tax returns for 2010 and 2011. These returns were false because they did not report the income that Charles earned as a result of her fraudulent tax preparation activity, and because she claimed a deceased person as a dependent. Each of these offenses carries a maximum penalty of three years in prison.
Charles will be sentenced before U.S. District Judge Paul Maloney at a future date. Prosecution of the matter was handled by Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the Grand Rapids office of the Internal Revenue Service Criminal Investigation.
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KC Man Indicted for Meth Conspiracy, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury for his role in a conspiracy to distribute methamphetamine in Jasper County, Mo., and for illegally possessing a firearm.
Dustin S. Parrish, 29, of Kansas City, was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Parrish participated in a conspiracy to distribute 50 grams or more of methamphetamine in Jasper County between May 1 and Oct. 1, 2015. Parrish is also charged with possessing methamphetamine with the intent to distribute.
The federal indictment also charges Parrish with one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Parrish allegedly was in possession of a Taurus .40-caliber semi-automatic pistol on Oct. 1, 2015.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Parrish has prior felony convictions for possession of a controlled substance and possession of a precursor drug with the intent to manufacture methamphetamine.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Joplin, Mo., Police Department.
Justice Department Announces Aargauische Kantonalbank Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Aargauische Kantonalbank (AKB) reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, AKB agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
AKB was founded in 1912 and is headquartered in Aarau, Switzerland. The canton of Aargau owns 100 percent of AKB and guarantees its deposits.
AKB offered a variety of traditional Swiss banking services that it knew could assist, and did assist, U.S. taxpayers in concealing their identity from the Internal Revenue Service (IRS) by minimizing the paper trail associated with their undeclared assets and income. AKB offered to identify accounts only by number and agreed not to send any mail to U.S. resident clients, which ensured that documents acknowledging the existence of the accounts remained outside of the United States and beyond the reach of U.S. tax authorities. AKB accepted some former UBS clients following the U.S. investigation of untaxed assets and opened accounts for foundations and other entities that hid their U.S. ownership.
As early as 2008, AKB knew that some U.S.-related accounts held untaxed funds, which were described within AKB in one instance as “Schwarzgeld” or “black money.” AKB knew that U.S. persons had a duty under U.S. law to report their income to the IRS and to pay taxes on that income, including all income earned in accounts maintained by AKB in Switzerland. Despite this knowledge, AKB opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared to the IRS or the U.S. Department of the Treasury as U.S. law required.
AKB clients who lived in the United States engaged in a pattern of cash withdrawals. For instance, one client personally came to AKB and, over the counter, withdrew large amounts of cash from her account – over 100,000 Swiss francs in 2009 and over 180,000 Swiss francs in 2010. AKB also assisted its U.S. clients in sending money to themselves, relatives, business partners or other businesses in the United States by issuing checks drawn on one of AKB’s bank accounts. Because these checks listed only AKB as the accountholder, they did not reveal that the funds were ultimately paid out of the U.S. clients’ Swiss bank account. U.S. clients were thus able to utilize this technique to conceal their ownership of a Swiss account.
In 2009, responding to what AKB considered “astonishing and alarming” international pressure to lift Switzerland’s longstanding client-bank confidentiality for tax-offending foreign clients, AKB decided to start dealing with “openly declared black money and domiciliary companies.” The latter situation, where the domiciliary company was in truth a nominee or sham entity, was one AKB knew its employees either “knew or should expect” to involve tax evasion.
From at least 2008 through 2014, AKB maintained and serviced 454 U.S.-related accounts having a maximum aggregate value of more than $639 million. AKB will pay a penalty of $1.983 million.
In accordance with the terms of the Swiss Bank Program, AKB mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at AKB who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at AKB must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Brian D. Bailey, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Joplin Couple Indicted for Stolen Mail, Passing a Forged CheckRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced two Joplin, Mo., residents were indicted by a federal grand jury today, in separate but related cases, of possessing stolen mail and passing a forged check.
Larissa A. Brady, 32, and her boyfriend, Sheldon Michael Hunt, 32, both of Joplin, were charged in separate indictments returned by a federal grand jury in Springfield, Mo.
Today’s indictments allege that both Hunt and Brady possessed 66 different pieces of stolen mail containing checks, credit cards, Social Security cards and personal identification cards that had been taken from the mail boxes of 36 different individuals between March 1 and June 8, 2015.
Brady is also charged with passing a forged check at the Wal-Mart store in Joplin on June 8, 2015. Hunt is charged with aiding and abetting her in that criminal activity.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the U.S. Postal Inspection Service and the Joplin, Mo., Police Department.
John Harper Farmer Sentenced to 210 Months in Federal Prison for Sex Trafficking MinorsRead the Press Release
CHATTANOOGA, Tenn. - On Dec. 3, 2015, John Harper Farmer, 40, of Chattanooga, was sentenced by the Honorable Curtis L. Collier, U.S. District Judge, to serve 210 months in federal prison for sex trafficking of children. Farmer was also ordered to complete a 500 hour mental health program. Additionally, upon his release from prison, he will be supervised for five years by U.S. Probation.
Farmer pleaded guilty in May 2015 to one count of a five-count indictment charging offenses related to sex trafficking. This offense carried a mandatory minimum sentence of 10 years. He admitted to directing a minor and an adult co-defendant to meet a client at a Chattanooga hotel with the expectation that both females would engage in a commercial sex act. However, the client turned out to be an undercover police officer, and the encounter resulted in Farmer’s arrest and prosecution. Upon his arrest, police officers recovered a second minor with Farmer. Farmer’s co-defendant is scheduled for sentencing in March 2016.
FBI Special Agent in Charge, Edward W. Reinhold said “This investigation is but one example of the close working relationship the FBI enjoys with our law enforcement partners in combating the ever increasing threats to our nation. Human Trafficking represents some of the worst in human behavior, especially when it deals with the most vulnerable of our society, our children. The FBI, along with our local, state, and federal partners will continue to aggressively attack this problem.”
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “That this particular criminal took his depravity even further to sexually exploit children for profit makes this case especially egregious and illustrates why HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.” Parmer oversees a five-state area of operations to include Tennessee, Alabama, Arkansas, Louisiana and Mississippi.
This case was investigated by the Federal Bureau of Investigation; Homeland Security Investigations; and Chattanooga Police Department. Assistant U.S Attorney Jay Woods represented the United States.
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Jackson County Man Sentenced to 720 Months in Prison for Producing Child PornographyRead the Press Release
PANAMA CITY, FLORIDA – Charles Heath Stewart, 43, of Grand Ridge, Florida, was sentenced yesterday to 720 months in prison for producing child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Following a five-day trial, the jury convicted Stewart on August 21, 2015, after the government presented evidence that, on three occasions, in September, October, and November 2013, Stewart knowingly produced child pornography when he coerced a child to engage in sexually explicit conduct with Stewart for the purpose of creating a visual depiction. The evidence proved that, on countless occasions, Stewart used physical force and death threats to coerce the child into engaging in sexually explicit acts with Stewart while he videotaped the acts using his cellular telephone. Additionally, evidence presented at trial showed that Stewart knowingly possessed child pornographic images.
"Children deserve to feel safe in their homes and communities, and these despicable acts ruin lives at an early age," said Acting United States Attorney Christopher P. Canova. "This prison sentence sends a strong message to child predators that my office and our law enforcement partners are committed to pursuing, prosecuting, and providing justice to those who target innocent children."
"While no jail sentence is long enough to erase the damage he has done to his victim, Charles Stewart will have the next 60 years to reflect on the pain and suffering he has caused," said Susan L. McCormick, special agent in charge of HSI Tampa. "Child pornography memorializes the sexual abuse of a child. We can only hope that this sentencing brings some comfort to the victim and that he will never again harm another child."
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida Department of Law Enforcement, and the Jackson County Sheriff’s Office, whose joint investigation led to the conviction in this case. The case was prosecuted by Assistant United States Attorney Kathryn D. Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Hobbs Man Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Ruben Cantu, 43, of Hobbs, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to being a felon in possession of a firearm and ammunition. Under the terms of his plea agreement, Cantu will be sentenced to 15 years in federal prison followed by a term of supervised release to be determined by the court.
U.S. Attorney Damon P. Martinez said that Cantu was being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Lea County, under this initiative.
Cantu was arrested on July 7, 2014, on an indictment charging him with two counts of being a felon in possession of a firearm and ammunition. The indictment alleged that Cantu committed the crimes on March 5, 2014, in Lea County, N.M. At the time, Cantu was prohibited from possessing firearms and ammunition because he previously had been convicted of a marijuana trafficking crime.
During today’s proceedings, Cantu pled guilty to the indictment and admitted that on March 5, 2014, he was in possession of a firearm and multiple rounds of ammunition. He further acknowledged that he was prohibited from possessing firearms or ammunition based on his status as a convicted felon.
In entering the guilty plea, Cantu reserved the right to appeal from an order of the court denying his motion to suppress evidence, including the firearms and ammunition at issue in the case, seized pursuant to a state search warrant. He remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roswell office of the FBI, the Lea County Drug Task Force and the Hobbs Police Department. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Harrisburg Man Sentenced to 4 Years in Prison for Five Bank Robberies in Pennsylvania and New JerseyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man was sentenced to 4 years imprisonment by U.S. District Court Judge Yvette Kane in Harrisburg for committing five bank robberies in two states.
According to United States Attorney Peter Smith, Dylan Blum, age 22, previously pled guilty to the December 9, 2014 robbery of the Mid Penn Bank on North Front Street in Harrisburg in which $1,358 was stolen. Blum was also charged in July 2015 with the robberies of four additional banks in December of 2014 and January of 2015 in Northampton County, Pennsylvania and in New Jersey. Blum passed a threatening note to tellers during three of those robberies. He attempted to rob another bank but was prevented by employees from entering that bank. Blum made off with a total of $5,788 from the three banks he was able to rob. Blum turned himself in to the Harrisburg Police department on January 3, 2015 and remains in custody.
Blum was sentenced to 4 years imprisonment for each robbery with the sentences to be served concurrently. Judge Kane also ordered Blum to make restitution to the banks he robbed in the amount of $7,146.
The case was investigated by the Harrisburg Police Department and the Federal Bureau of Investigation. Assistant United States Attorney William A. Behe prosecuted the case.
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Gila River Man Sentenced to 14 YearsRead the Press Release
PHOENIX – Yesterday, Joseph Troy Williams, 38, of Coolidge, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge John Tuchi to 168 months in prison to be followed by lifetime supervised release. Williams had previously pleaded guilty to two counts of sexual abuse of a minor. All victims were members of varied Indian Communities and the abuse occurred on the Gila River Reservation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1584-PHX-JJT
RELEASE NUMBER: 2015-119_Williams
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Galax Man Sentenced to 120 Months in PrisonRead the Press Release
ABINGDON, VIRGINIA – Yesterday in the United States District Court for the Western District of Virginia in Abingdon, a Galax, Va., man was sentenced to 120 months in Federal Prison for knowingly failing to update his sex offender registration.
Juan Elias Lara, 43, of Galax, Va., previously pled guilty to one count of failing to register and update his registration as required by the Sex Offender Registration and Notification Act (SORNA). Lara had been required to register under SORNA by virtue of his 2009 felony conviction in Grayson County, Virginia Circuit Court for aggravated sexual battery. In District Court yesterday, Lara was sentenced to 120 months of federal incarceration and five years of supervised release thereafter. Lara will also be required to register as a sex offender following his release from imprisonment.
In sentencing Lara to the maximum term of imprisonment provided under the statute, United States District Judge James P. Jones noted Lara had previously admitted to killing two people and having sexual relations with several minors.
The investigation of the case was conducted by the United States Marshals Service, the Virginia State Police, and the Lake Jackson, Texas Police Department. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Fort Worth Couple Sentenced for Roles in Methamphetamine Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Two defendants who pleaded guilty in August to felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy were sentenced this morning, by U.S. District Judge Reed C. O’Connor, to lengthy federal prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Gabriel Farias-Lopez, 37, who pleaded guilty to one count of conspiracy to possess methamphetamine with the intent to distribute, was sentenced to 210 months in federal prison. Co-defendant Kimberly Robles-Rueda, 20, who pleaded guilty to one count of conspiracy to commit money laundering, was sentenced to 84 months in federal prison.
According to documents filed in the case, Farias-Lopez received kilogram-quantities of methamphetamine from a source in Mexico that he subsequently distributed in the Dallas – Fort Worth, Texas, area. Robles-Rueda collected the drug proceeds for the methamphetamine that Farias-Lopez distributed. She also received instructions from a person in Mexico as to how to wire or otherwise return the drug proceeds to the person in Mexico. The instructions she received usually involved depositing or wiring money into various bank accounts in $1,000-increments. Then, Robles-Rueda or another person would wire or transfer the money to bank accounts in Mexico.
Pursuant to a traffic stop conducted by law enforcement in Fort Worth on June 23, 2015, Farias-Lopez and Robles-Rueda were found to be in possession of approximately four kilograms of methamphetamine ice, and Robles-Rueda had nearly $8,000 cash in her purse. Then, during the subsequent execution of a search warrant at their shared home on Travis Avenue in Fort Worth, law enforcement found liquid methamphetamine and methamphetamine ice, with a combined weight of approximately three kilograms, and $25,000 in cash.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Fort Hall Man Pleads Not Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
POCATELLO – Duncan Tendoy, 51, of Fort Hall, Idaho, appeared U.S. District Court today and pleaded not guilty to a charge of possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. A jury trial is scheduled before Chief U.S. District Judge B. Lynn Winmill on February 16, 2016. Tendoy was indicted by the federal grand jury in Pocatello on November 24, 2015.
The indictment alleges that on August 9, 2015, Tendoy possessed methamphetamine with the intent to distribute it, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).
The charge of distribution of methamphetamine is punishable by up to 30 years in prison, a maximum fine of $2,000,000, and at least six years of supervised release.
The case was investigated by the Fort Hall Police Department and the Bingham County Sheriff’s Office.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Treasurer of Fraternal Order of Police Pays $306,577 in Restitution to VictimsRead the Press Release
TULSA, Okla.— Due to the aggressive collection efforts of the Northern District’s Financial Litigation Unit, Lorna Jean Vanlandingham, the former Treasurer of the Fraternal Order of Police Oklahoma State Lodge and the Tulsa Fraternal Order of Police, has been forced to repay $306,577.24 in restitution, fine and special assessment fees, announced United States Attorney Danny C. Williams Sr.
Lorna Jean Vanlandingham, was sentenced to serve 33 months in prison on June 22, 2015, for embezzling from Lodge bank accounts. United States District Court Chief Judge Gregory K. Frizzell ordered Vanlandingham to pay restitution in the amount of $291,127.59, plus interest, a $15,000 fine, and a $200 special assessment fee.
The Financial Litigation Unit (FLU) is the collections component of the Civil Division in the U.S. Attorney’s Office. FLU has the primary responsibility of handling debt collection and affirmative claim litigation. Assistant United States Attorney Scott Woodward, assisted by Libbi Felty, a Paralegal, and Celeste Allen, a Legal Assistant, were responsible for the collection of the full amount of restitution, fine and special assessment in this case.
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Former RMV Clerk Sentenced for False RMV Document ConspiracyRead the Press Release
BOSTON – A Boston man, who previously worked as a Massachusetts Registry of Motor Vehicles (RMV) clerk, was sentenced today in U.S. District Court in Boston for conspiring to produce false RMV identification documents.
Rommer Valdez, 39, was sentenced by U.S. District Court Judge William G. Young to five months in prison, three years of supervised release, the first five months of which is to be served in home confinement, forfeiture of $26,200, and a fine of $3,000. In July 2015, Valdez pleaded guilty to one count of conspiring to produce a false identification document.
The RMV issues identification documents such as drivers’ licenses, learners’ permits and state identification cards. To prevent people from obtaining a fraudulent identification document, the RMV has systems to verify whether applicants’ identity information is accurate. Valdez, who worked as a clerk at the RMV office in Watertown, was responsible for verifying that applicants’ identity documents were valid.
From December 2010 to December 2012, Valdez participated in a conspiracy to help the customers obtain authentic RMV-issued identification documents that bore their own pictures but other people’s identity information. Other co-conspirators obtained real identification documents for customers to give the RMV as proof of (false) identity. Before sending certain customers to the RMV with this proof, the co-conspirators sent Valdez the names, Social Security numbers and dates of birth for these identities and asked him to verify whether this information would pass the RMV’s checks. Valdez checked the information and reported back to the co-conspirators. If the information passed, the co-conspirators provided the documents to a customer who later presented them to the RMV (although not necessarily at Valdez’s station) to obtain an identification document in that false identity.
On other occasions, the co-conspirators sent customers with false identification documents directly to Valdez at the RMV. When Valdez spotted such a customer, he signaled the customer to approach and submit his or her application and proof of (false) identity. Valdez then processed the application, knowing that it was fraudulent. He also let the customer or someone else helping the customer take whatever tests the RMV required, all using the false identity.
Valdez checked identity information at least 136 times and accepted false proof of identity from customers at least 42 times, in exchange for bribes totaling approximately $26,000.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; David Hall, Special Agent in Charge of U.S. Department of State, Bureau of Diplomatic Security Services, Boston Field Office; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Scott L. Garland, of Ortiz’s Criminal Division.
Former Insurance Salesman Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A former insurance salesman pleaded guilty today in U.S. District Court in Boston to tax evasion in connection with the theft of more than $470,000 that he stole from three clients.
Paul Disidoro, 64, of Georgetown, Mass., pleaded guilty to attempting to evade taxes. U.S. District Judge William G. Young scheduled sentencing for March 8, 2016.
For many years, Disidoro operated an insurance business in Massachusetts, including from 2007 through 2010 when he also acted as a financial adviser for some clients. During that period, Disidoro stole more than $470,000 from three clients, used the money for his personal benefit, concealed this income from his tax preparer, and failed to report the embezzled funds on his federal income tax returns. In so doing, Disidoro evaded $144,000 in taxes.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Former Illinois State Representative Connie Howard Sentenced for Fraud SchemeRead the Press Release
Springfield, Ill. – U.S. District Judge Richard Mills today sentenced former Illinois State Representative Constance ‘Connie’ Howard to three months in prison for fraud committed by Howard when she was a state representative. Following her release from the federal Bureau of Prisons, Howard, 72, was ordered to serve three months home confinement, the first three months of a two-year term of supervised release. Howard was also ordered to pay restitution to two organizations: $15,900 to the Chicago Urban League and $12,450 to the Black United Fund, Chicago.
In July 2013, Howard waived indictment and admitted that from 2003 to 2007, she solicited and obtained approximately $76,700, representing that the funds would be used to provide scholarships. In fact, no more than five scholarships, totaling $12,500, were issued, and approximately $28,000 of the funds raised was converted to her personal and political use. Misuse of the funds included expenses associated with the promotion of her campaign, and campaign events, and to benefit one of her assistants.
At the time of the fraud, Howard was a member of the Illinois House of Representatives. She served as Chairwoman of the Computer Technology Committee for the House of Representatives and the Eliminate the Digital Divide Advisory Committee of the Illinois Department of Commerce and Economic Opportunity. Howard’s legislative and campaign offices were located in Chicago.
In 2003, Howard created an organization known as “Tee Off for Technology,” (TOFT), and established the “Constance A ‘Connie’ Howard Computer Technology Scholarship Fund, to provide scholarships to persons in need seeking a degree in computer science and related fields. Howard established an annual event in July 2003, known as the “Tee Off for Technology Celebrity Golf Outing.” Howard represented that the purpose of the organization and the annual golf outing was to be a fundraising mechanism for the scholarship fund. Because TOFT was not a tax-exempt organization, it partnered with tax-exempt organizations to serve as its fiscal agent to ensure that donations to TOFT and the scholarship fund were tax deductible.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General.
Former Executive Director of Johnstown Redevelopment Authority Sentenced to Prison for Public CorruptionRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 42 months in prison and three years’ supervised release on his conviction of federal extortion and bribery laws.
United States District Judge Kim R. Gibson imposed the sentence on Ronald W. Repak, age 64.
According to information presented to the court, Repak, while serving as Executive Director of the Johnstown Redevelopment Authority (JRA), engaged in conduct in violation of the Hobbs Act for extortion under color of official right, and engaged in acts of federal program bribery. Specifically, in exchange for Repak’s official actions and influence as the Executive Director of the JRA to facilitate the award of JRA contracting work, Repak solicited and obtained from local contracting firms a new roof for his personal residence and building demolition and grading services at Evolution Gym, his son’s privately-owned business. He was convicted at trial of two counts for extortion under color of official right and two counts of federal program bribery relative to the roof and the Evolution Gym. Mr. Repak was found not guilty of a charge of extortion under color of official right and federal program bribery in relation to multiple Pittsburgh Steelers football game tickets.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Repak.
Former Charlotte Resident Sentenced to 24 Months in Prison on Securities Fraud and Wire Fraud Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Michael Francis Egan, III, 33, formerly of Charlotte, to 24 months in prison and two years of supervised release on conspiracy to commit securities and wire fraud charges, in connection with a fraudulent investment scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Egan to pay more than $300,000 as restitution to his victims.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and today’s sentencing hearing, from August 2007 to February 2012, Egan carried out a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contracts. According to court records, Egan promised his investor victims that he would invest their money in various projects, including Halloween and holiday themed attractions, land development, and television shows, among others. To further induce his victims, Egan lied about his financial background and personal assets and about his professional connections and investments. For example, Egan falsely told his victims he was a close associate and friend of the CEO of a major bank, a close associate or employee of a well-known investment mogul and that he owned a percentage of well-known hotels and casinos in Las Vegas. Instead of investing the victims’ money as promised, Egan used it to fund his lifestyle and to pay for personal expenses such as rent, his car lease, groceries and pet care. According to court records, Egan defrauded more than 14 victims of over $300,000. Egan pleaded guilty to the charges in April 2015.
At today’s sentencing hearing, Judge Conrad described Egan’s conduct as “a long-term fraud scheme with numerous acts of deception and fraud.” Judge Conrad also noted the defendant’s “predatory nature of the stealing of money […] considering the amount of money, the amount of victims […] and the defendant’s cunning on innocent victims.”
Egan will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. The prosecution was handled by Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.
Former Buffalo Teacher's Aid Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Buffalo, Mo., elementary school teacher’s assistant was indicted by a federal grand jury today for producing and possessing child pornography.
Dalton Cole Sherman, 19, of Buffalo, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo. Sherman was a teacher’s assistant at the DA Mallory Elementary School in Buffalo at the time of the offense.
Today’s indictment charges Sherman with two counts of child sexual exploitation. Sherman allegedly used two minors, on two separate occasions on June 11, 2015, to produce child pornography. The minors are identified in the indictment as “Jane Doe” and “John Doe.”
Sherman is also charged with one count of possessing child pornography.
The federal indictment also contains a forfeiture allegation, which would require Sherman to forfeit to the government any property used to commit the alleged offenses, including a Samsung pen camera and a Nook tablet.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Dallas County, Mo., Sheriff’s Department, the State Technical Assistance Team and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Executives of Swiss and Las Vegas Companies Convicted in International Investment Fraud SchemeRead the Press Release
A federal jury in Las Vegas convicted two men of conspiracy, wire fraud and securities fraud yesterday for their roles in an approximately $10 million international investment fraud scheme involving numerous victims.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office made the announcement.
Anthony Brandel, 48, of Las Vegas, and James Warras, 69, of Waterford, Wisconsin, were each convicted of one count of conspiracy, nine counts of wire fraud and eight counts of securities fraud following a five-day trial before Senior U.S. District Judge Kent J. Dawson of the District of Nevada. The defendants are scheduled to be sentenced on March 2, 2016, by Judge Dawson.
According to evidence presented at trial, Brandel and Warras conspired with others in the United States and Switzerland to promote investments and loan instruments that they knew to be fraudulent. The conspirators told victims that, for an up-front payment, a Swiss company known as the Malom (Make A Lot of Money) Group AG would provide access to lucrative investment opportunities and substantial cash loans. To effectuate this scheme, the defendants fabricated bank documents purporting to show that the Malom Group had large amounts of money in several European financial institutions. And as part of an effort to defraud an investor who held an equity stake in a corporation that had filed for bankruptcy, Warras submitted a sworn affidavit to the U.S. Bankruptcy Court in the District of New Hampshire in which he made false statements about the value of certain bonds that the defendants promoted to the investor.
Brandel and Warras were charged together with four other defendants, including Joseph Micelli, 62, a former California attorney who pleaded guilty to conspiracy to commit wire fraud and securities fraud and is set to be sentenced on Feb. 23, 2016. The remaining defendants are either at large or awaiting extradition from other countries.
The FBI’s Las Vegas Field Office investigated the case. Assistant Chief Brian R. Young and Trial Attorneys Melissa Aoyagi and Anna G. Kaminska of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Nevada. The Securities and Exchange Commission’s Enforcement Division, which referred the matter to the department and is conducting a parallel civil enforcement investigation, also provided valuable assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit www.stopfraud.gov.
Eleven Defendants Facing Federal Drug and Firearms Charges in North Little RockRead the Press Release
North Little Rock, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and North Little Rock Police Department (NLRPD) Chief Mike Davis, announced today the unsealing of three federal indictments charging 11 defendants with federal drug and firearms offenses in North Little Rock, and in particular in the Dixie Addition neighborhood. The indictments were returned by the Grand Jury on December 2, 2015, and were unsealed today following a coordinated roundup of the charged defendants.
The arrests resulted from an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, Operation Dixie Days, worked jointly with the FBI and NLRPD Narcotics Unit. During the course of the investigation in 2014 and 2015, law enforcement utilized three Title III court-authorized wiretaps, intercepting hundreds of drug-trafficking calls. Law enforcement agents conducted controlled buys totaling almost one kilogram (2.2 pounds) of crack cocaine. During the roundup, agents seized several ounces of crack cocaine, two stolen firearms, and more than $10,000 in cash.
Agents also executed a search warrant today at 924 E Street in the Dixie Addition, where they recovered some of the crack cocaine and cash. Based on the investigation, it is alleged that during 2014 and 2015, Harold Barbee, Byron Leavy, Yvette Foster, and others utilized 924 E Street as a “trap house,” meaning a location for storing and selling cocaine and crack cocaine. During the daytime hours, customers entered the front door of the house to buy cocaine and crack cocaine. During the evening hours, customers purchased cocaine and crack cocaine by knocking on a back bedroom window. On one occasion in October 2015, after midnight, officers observed 14 individuals approach the window of 924 E Street to buy drugs in the span of an hour.
“The Dixie Addition area of North Little Rock is filled with hard-working, law-abiding citizens; unfortunately, crack cocaine and drugs have plagued this area for a long time,” Thyer said. “Through Operation Dixie Days, the FBI and NLRPD have worked to rid that community of the violent drug distributors that plague that neighborhood. We hope the peaceful neighbors of the Dixie Addition will rest better tonight knowing both that their community is safer and that federal and state authorities will continue their law enforcement efforts in Dixie Addition and throughout North Little Rock. Let today’s arrests be a sharp warning to drug dealers in the area—we will not tolerate you poisoning the streets where our children and law abiding, hard-working citizens reside.”
The defendants arrested today will appear before U.S. Magistrate Judge Joe J. Volpe on December 9, 2015, at 3:00 p.m. for plea and arraignment. One defendant was already in state custody, and will appear before Judge Volpe at 2:00 p.m. on December 15, 2015. Two defendants, Dexter Mack and Adrion Crawford, are now fugitives. Most of the defendants are residents of North Little Rock (see below for complete list of defendants and charges).
“Today’s arrests are confirmation of our dedication to make an impact on drug crime in the state of Arkansas, specifically today, in the Dixie area,” stated David Shepard, Assistant Special Agent in Charge of the Little Rock FBI. “We appreciate the determined efforts of the United States Attorney’s Office and the North Little Rock Police Department.”
“North Little Rock Police Department is grateful for the spirit of cooperation with the FBI and U.S. Attorney’s Office to bring closure to drug sales in the Dixie community,” Chief Davis said. “North Little Rock Police will remain proactive in this community to ensure a peaceful lifestyle for its residents.”
The counts in today’s unsealed indictments include conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine, distribution and possession with intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and use of a telephone to facilitate a drug trafficking crime.
The investigation was conducted by FBI and NLRPD. The cases are being prosecuted by Assistant U.S. Attorneys Julie Peters and Hunter Bridges. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty. See Attachment 1 for potential penalties. The defendants charged include:
Case No. 4:15CR00302 BRW:
HAROLD BARBEE, aka BOP, age 50, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
BYRON NEAL LEAVY JR., aka LIL RED, age 24, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DAMIEN BANK, aka D, age 33, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
YVETTE FOSTER, aka YVETTE RHOTEN, age 50, North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DEXTER MACK, aka D-MAC, age 43, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
Case No. 4:15CR00305 JLH:
DARNISHER HORN, aka D, age 27, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Distribution of Crack Cocaine
Possession of a Firearm in Furtherance of a Drug-Trafficking Crime
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
XAVIER BRIGHT, aka ZAY, age 27, of North Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Crack Cocaine and Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
DARIUS BROWN, age 27, of Scott
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
JUSTIN BURNETT, age 32, of McGehee
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
CARL EUSEPPI, aka B, age 35, of Little Rock
Conspiracy to Distribute/Possess with Intent to Distribute Cocaine
Use of a Telephone in Furtherance of a Drug-Trafficking Crime
Case No. 4:15CR00304 JM:
ADRION CRAWFORD, aka AC, age 31, of North Little Rock
Distribution of Crack Cocaine
Statutory Penalties
Eastern District of California U.S. Attorney’s Office Collects over $121 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that the U.S. Attorney’s Office for the Eastern District of California collected over $121 million in civil and criminal actions, including forfeitures, in Fiscal Year 2015, which ended on September 30, 2015. Over $65 million was collected in criminal and civil actions handled solely by the U.S. Attorney’s Office for the Eastern District of California, including over $5.57 million in criminal actions and over $59.69 million in civil actions.
Additionally, the office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $34.7 million in cases pursued jointly with these offices, almost all in civil actions. Collections in civil and criminal cases handled by the office, not including forfeitures, therefore totaled over $99.9 million.
Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected over $21 million in asset forfeiture actions in FY 2015. Total civil and criminal collections including forfeitures, therefore, exceeded $121 million. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. The more than $23.1 billion in collections in FY 2015 represents 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 Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“This past year was the second-highest in the history of this office in terms of total collections for the taxpayer,” said U.S. Attorney Wagner. “Every year, attorneys in this office recover far more than it costs to operate the office, while stripping criminals and wrongdoers of ill-gotten gains, proceeds of fraud or false claims, and securing restitution for victims.”
Major recoveries by the U.S. Attorney’s Office for the Eastern District of California in civil cases this year included a $44 million settlement with the Iron Mountain records management company and a $2 million settlement with Composite Engineering Inc., both False Claims Act cases relating to pricing and costs in federal contracts. Quest Diagnostics paid $1.79 million to settle claims that it violated the False Claims Act by submitting duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests. In two cases alleging that doctors improperly billed Medicare for drugs they administered that were not approved by the FDA, the doctors paid a total of $1.3 million. Sierra Pacific Industries paid $6 million in installment payments required under the terms of its settlement agreement in a large wildfire case that damaged National Forest lands, which was resolved in 2012.
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. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, 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.
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.
District Men Sentenced to Prison Terms for 2013 Killing in Southeast WashingtonRead the Press Release
WASHINGTON – Carlos Parks, 19, was sentenced today to 22 years in prison and Troy Robinson, 21, was sentenced to 15 years in prison for their roles in the slaying of a man outside a housing complex in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Parks pled guilty on July 22, 2015, in the Superior Court of the District of Columbia, to second-degree murder while armed for the death of Tywayne Thompson. The plea, which was contingent on the Court’s approval, called for 12 to 24 years of incarceration. Robinson pled guilty to the charge of voluntary manslaughter while armed for the same murder. His plea, also contingent on the Court’s approval, called for 10 to 15 years of incarceration. The Honorable Jennifer Anderson accepted the pleas today. Parks and Robinson, both of Washington, D.C., will be placed on five years of supervised release following their prison terms.
According to the government’s evidence, on June 24, 2013, at approximately 1:20 a.m., Parks and Robinson were outside in the Potomac Gardens Housing Complex in the 700 block of 12th Street SE. At that time, Parks and Robinson were each armed with semi-automatic pistols. A few minutes later, they approached Mr. Thompson, 25, who was also outside in the Potomac Gardens Housing Complex. They began to speak with him.
Robinson then began shooting at Mr. Thompson. At least one bullet from Robinson’s gun hit the victim. Parks then also began shooting at Mr. Thompson, and at least one bullet from Parks’s gun hit Mr. Thompson in his buttocks and exited through his abdomen. Mr. Thompson was taken by ambulance to a local hospital, where he died as a result of the wound from the shot fired by Parks through his buttocks and abdomen. Mr. Thompson was unarmed, and neither defendant was acting in self-defense.
In announcing the sentences, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the First Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, La June Thames, M. Laverne Forrest, David Foster, and Michael Hailey of the Victim/Witness Unit; former Paralegal Specialist Mia Beamon; Paralegal Specialist Sandra Lane; and Litigation Technology Specialist Leif Hickling. Finally, he praised the efforts of former Assistant U.S. Attorney Jonathan Kravis, who investigated and indicted the case, and Assistant U.S. Attorneys Michael Liebman and Christopher Bruckmann, who prosecuted the case.
Detroit man pleads guilty in Federal court to heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a heroin conspiracy entered a guilty plea today in federal court in Huntington, West Virginia, announced Unite States Attorney Booth Goodwin. Warren G. Howard, Jr., 24, of Detroit, pleaded guilty to distributing heroin.
During 2013, Howard conspired with others, including Kenneth E. Baxter, to distribute heroin which had been transported from Detroit to the Huntington area. On May 20, 2013, a confidential informant contacted Baxter to arrange a drug deal. Howard and Baxter met the informant in the parking lot of a Kroger located at 1st Street and 7th Avenue in Huntington. The informant entered Howard’s vehicle and Howard sold heroin to the informant.
Howard faces up to 20 years imprisonment and a $1 million fine when he is sentenced in federal court in Huntington on March 7, 2016.
Multiple individuals have been convicted of federal drug offenses as a result of the investigation, including Paul A. Roberts, who pleaded guilty in March of 2015 to maintaining a residence for the distribution of heroin, Dustin S. Barton, who pleaded guilty in August of 2015 to distributing heroin, and Sean L. Gist, who pleaded guilty in September of 2015 to conspiracy to distribute 100 grams or more of heroin.
Those sentenced to federal prison as a result of the investigation include Baxter, who was sentenced to seven years and three months, Coty E. Richardson, who was sentenced to five years and ten months, Ramone L. Wells who was sentenced to four years, and Pricilla Lee Dylan who was sentenced to two years and nine months.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police, and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Deming Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Andres Munoz, 59, of Deming, N.M., was sentenced today in federal court in Las Cruces, N.M., to 70 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Munoz and his co-defendant Guadalupe Romero, 38, also of Deming, were arrested in Dec. 2014, on a criminal complaint alleging conspiracy and possession of methamphetamine with intent to distribute. The complaint alleged that the pair committed the crimes on Dec. 18, 2014, in Luna County, N.M. According to the complaint, Homeland Security Investigations (HSI) executed a search warrant at the residence of Munoz and Romero and seized quantities of methamphetamine hidden throughout the residence. Munoz and Romero were subsequently indicted on March 18, 2015.
On July 9, 2015, Munoz pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Munoz admitted that on Dec. 18, 2014, he and Romero possessed approximately 226 grams of methamphetamine in a residence they shared. He also acknowledged that they intended to distribute the drugs.
Romero pled guilty on July 21, 2015, to a felony information charging her with possession of methamphetamine with intent to distribute, and admitted that on Dec. 18, 2014, she and Munoz jointly possessed approximately 226 grams of methamphetamine with intent to distribute. Romero was sentenced on Oct. 29, 2015, to 27 months in federal prison followed by two years of supervised release.
This case was investigated by the Deming office of HSI and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Conway Man Indicted for Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Conway, Mo., man was indicted by a federal grand jury today for robbing Central Bank in Conway.
Jody L. Nave, 37, of Conway, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Nave on Nov. 24, 2015.
According to an affidavit filed in support of the original criminal complaint, Nave entered Central Bank, 602 W. Jefferson Ave., at approximately 10:14 a.m. on Nov. 12, 2015. Nave allegedly passed a note to a teller that read, “This is a robbery I have a gun but please don’t make me use it.” (sic) The teller handed over approximately $2,600 from her teller drawer, the affidavit says. Nave allegedly took the cash and left the bank.
Nave was located by law enforcement officers a short time later in Marshfield, Mo.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Conway, Mo., Police Department and the FBI.
Columbus Man Sentenced to 200 Months for Facilitating Prostitution, Gun ChargeRead the Press Release
COLUMBUS, Ohio – Carl R. Smith, Jr., 30, of Columbus, Ohio, was sentenced in U.S. District Court to 200 months in prison for transportation in interstate commerce for purposes of prostitution and possession of a firearm by a previously convicted felon. He was also sentenced to an additional 24 months for violating his existing supervised release, making his total sentence 224 months.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, which is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Columbus Police Chief Kim Jacobs and Colonel Paul Pride of the Ohio State Highway Patrol announced the sentenced handed down yesterday by U.S. District Judge Michael H. Watson.
According to court documents, during a traffic stop in July 2013 in which Smith was driving, law enforcement officers discovered an adult female passenger had a plastic baggie containing cocaine base and heroin. Based on information previously obtained through surveillance and confidential sources, it was believed that Smith was involved in directing the prostitution activities of the passenger and other females and that he had used the passenger during the traffic stop to conceal his supply of cocaine base and heroin.
Members of the Central Ohio Human Trafficking Task Force and the Columbus Police Department conducted an investigation of Smith’s suspected criminal activities between July 2013 and February 2014. A search warrant was executed at Smith’s residence in February 2014. While searching the residence, officers discovered Smith, who had been previously convicted of four felony offenses, was carrying a pistol. Numerous additional firearms and narcotics were seized from Smith’s residence during the execution of the search warrant.
During the course of the investigation leading up to the execution of the search warrant, officers conducted electronic and physical surveillance of Smith’s activities. During this surveillance, officers observed that Smith frequented various hotels in the Columbus, Ohio area where he had prostitutes working for him. Continued surveillance revealed that Smith also facilitated travel out of state to Pittsburgh and New York City, where his prostitutes engaged in sexual activity for hire. Smith attracted clients/johns for his prostitution business by posting numerous advertisements in the escort section of the Internet site backpage.com.
“The circumstances surrounding the defendant’s offenses showed the defendant to be a master of manipulating, dominating and preying on the weak and vulnerable, and using those he brought under his control purely for his own financial benefit,” Assistant U.S. Attorney Heather A. Hill told the court. “At its core, this case involves the defendant’s dedication to his own bottom line: he sold human beings and maintained his supply of human chattel through violence and the threat of drug withdrawal.”
Smith pleaded guilty to transportation in interstate commerce for purposes of prostitution and possession of a firearm by a previously convicted felon in April.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, as well as Assistant United States Attorneys Heather A. Hill and Salvador A. Dominguez, who are representing the United States in this case.
Colorado Man Pleads Guilty to Robbing Banks in Colorado and New Mexico in 2014 and 2015Read the Press Release
ALBUQUERQUE – John Allen Pierceall, 54, of Denver, Colo., pleaded guilty this morning in federal court in Las Cruces, N.M., to committing three banks robberies, two in Colorado and one in New Mexico, between Aug. 2014 and Aug. 2015.
Pierceall was arrested on Aug. 24, 2015, on a criminal complaint charging him with robbing the US Bank located at 901 East University Ave. in Las Cruces, on Aug. 24, 2015. According to the complaint, Pierceall robbed the bank by presenting a bank teller with a demand note stating that he was armed and would shoot if she did not comply with his demand for cash.
On Dec. 2, 2015, Pierceall was indicted in the District of Colorado, and charged with two counts of bank robbery. The indictment alleged that Pierceall robbed the Vectra Bank Colorado in Denver twice, once on Aug. 14, 2014 and again on Oct. 7, 2014.
During today’s proceedings, Pierceall plead guilty to a felony information charging him with three counts of bank robbery. In entering the guilty plea, Pierceall admitted that on Aug. 14, 2014, and Oct. 7, 2014, he robbed the Vectra Bank Colorado, and on Aug. 24, 2015, he robbed the US Bank in Las Cruces. Pierceall further admitted that he committed all three bank robberies by handing the teller a demand note which stated that he was armed and would shoot if his demands for cash were not met.
In his plea agreement, Pierceall waived his right to have the Colorado bank robberies prosecuted in the U.S. District Court for the District of Colorado, and agreed to have a federal judge in the District of New Mexico accept his guilty plea on those crimes.
At sentencing, Pierceall faces a statutory maximum penalty of 20 years in federal prison followed by up to three years of supervised release. Pierceall remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI, the Las Cruces Police Department and the Denver Police Department with assistance from the U.S. Attorney’s Office for the District of Colorado. Assistant U.S. Attorney Marisa A. Lizarraga is prosecuting the case.
Collierville Man Pleads Guilty in Two Separate Fraud Schemes Totaling More Than $2 MillionRead the Press Release
Memphis, TN – A Collierville man has pled guilty to executing two separate fraud schemes that defrauded victims of more than $2 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the charging document, between December 2012 and October 2014, Anthony Davis, 44, of Collierville, owned ADLM Automotive, Inc., a Mississippi-based wholesale automobile dealership that conducted business in Memphis. He used the company to promote a purported investment opportunity that ultimately defrauded investors of nearly $1.8 million.
During the aforementioned time period, Davis fraudulently told victims that they could purchase a Retail Installment Contract and Security Agreement (RICSA) from him through ADLM Automotive. He also told them that when he sold a vehicle to a customer and the customer financed any part of the purchase price, the customer would sign a RICSA, and an application for a title with the appropriate state (e.g., Tennessee, Arkansas, or Mississippi) agency responsible for issuing vehicle titles. Davis represented to the victims that they would have a perfected security interest in the vehicle which was the subject of the RICSA because their security interest would be noted on the Certificates of Title.
Davis told victims that monthly payments on the RICSAs would be collected by a Georgia-based company known as Vehicle Acceptance Corporation (VAC), and that each customer had signed an Automated Clearing House (ACH) payment form so that monthly payments would be automatically deducted from their bank account. Davis further represented that ADLM Automotive maintained an account with VAC and would direct VAC to route customers’ payments to the victims’ bank accounts. More so, Davis told the victims that if a customer defaulted and failed to make payments under the terms of the RICSA, ADLM Automotive would repurchase the non-performing loan, or give the victim the option of replacing the non-performing loan with a performing loan of equal or greater value.
Due to his fraudulent representations, Davis received investments from multiple victims. All along, Davis knew the RICSAs, customers, vehicles and titles did not exist.
According to the charging document, Davis executed a separate fraud scheme between January 2014 and August 2014. This scheme involved Davis searching for and obtaining Social Security Numbers to create fraudulent credit profiles. The credit profiles and other false and fraudulent identifying information were used to obtain credit to finance the purchase of vehicles. As a result of the scheme, Davis and co-conspirators fraudulently obtained and attempted to obtain credit to finance the purchase of approximately 16 vehicles. The losses associated with this scheme were more than $457,000.
On Tuesday, December 8, 2015, Davis pled guilty to two counts of wire fraud before U.S. District Judge John T. Fowlkes Jr.
For each count, Davis faces up to 20 years imprisonment and a fine of up to $250,000. Davis will also be ordered to pay restitution in the total amount of $1,763.829.50 to those victimized in the first scheme. He will be ordered to pay restitution in the total amount of $457,507.06 to those victimized in the second scheme.
Davis is scheduled to be sentenced by Judge Fowlkes on March 3rd, 2016.
The case was investigated by the U.S. Postal Inspection Service, U.S. Marshal’s Service, and the Social Security Administration – Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Church Volunteer Sentenced for Possessing Child PornographyRead the Press Release
LAREDO, Texas – A former volunteer for New Visions Community Church has been ordered to federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Mark Dawson, acting special agent in charge of Homeland Security Investigations (HSI) in San Antonio and Webb County Sherriff Martin Cuellar. Fidel Perales-Castillo, 44, a Mexican citizen residing in Laredo, pleaded guilty April 23, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo took into consideration the fact that he possessed child pornography depicting children younger than 12 years of age and handed Perales-Castillo a 121-month sentence. Additional information was also presented today, including descriptions of the types and amount of images possessed and a victim impact statement. In handing down the sentence, Judge Marmolejo stated that Perales-Castillo should apologize first and foremost to the victims in this case and commented on the continued victimization they suffer when people such as Perales-Castillo view and share child pornography. Perales-Castillo was further ordered to pay $5,431.01 in restitution to a known victim and will be subject to 20 years of supervised release, which includes the provision of registering as a sex offender. Perales-Castillo, a Mexican citizen, is also subject to deportation following his prison term.
Perales-Castillo was encountered by an undercover investigator in a peer-to-peer file sharing network where he had 10 files of suspected child pornography available for download. Five of those videos were successfully downloaded and found to contain child pornography. Some of the images and videos involved children under the age of 12.
A search warrant was executed on Perales-Castillo’s home, at which time they seized several computers and storage devices. Perales-Castillo confessed that he had been downloading and viewing child pornography Via the internet. He further admitted that he had a particular interest in seven-year-old girls, but denied ever physically harming a child.
Perales-Castillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The arrest of Perales-Castillo was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
This case, prosecuted by Assistant U.S. Attorney Sarah Ellison, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Carlsbad Man Sentenced to Federal Prison for Violating Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Jacob J. Loredo, 29, of Carlsbad, N.M., was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 87 months in prison followed by four years of supervised release for violating the federal firearms and drug trafficking laws.
Loredo was arrested on Feb. 19, 2015, and charged in a criminal complaint with conspiracy to possess methamphetamine with intent to distribute in Eddy County, N.M. According to the criminal complaint, on that day, agents with the Pecos Valley Drug Task Force executed a search warrant on Loredo’s residence and vehicle where they seized ammunition, two firearms, $4,955.00 in cash, methamphetamine, scales and other drug paraphernalia. According to court documents, at the time, Loredo was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of cocaine, a felony offense.
On June 2, 2015, Loredo pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm. Loredo admitted that on Feb. 19, 2015, law enforcement officers recovered methamphetamine and two firearms from his residence in Carlsbad. Loredo further admitted that he had previously been convicted of possession of a controlled substance in Dec. 2008, and was prohibited from possessing firearms or ammunition.
As required by the terms of his plea agreement, Loredo was ordered to forfeit the $4,995.00 seized from this residence as well as the firearms and ammunition.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force, and was prosecuted by Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Cape Cod Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Bourne, Mass. man was sentenced on Thursday, Dec. 3 for distributing heroin on Cape Cod.
Antone “Tank” Andrade, 35, was sentenced by U.S. District Court Judge Rya W. Zobel to 120 months in prison, four years of supervised release, and forfeiture of $10,890. Andrade pleaded guilty in August 2015 to conspiring to distribute, and to possess with intent to distribute, over 100 grams of heroin.
From May 2013 to August 2014, Andrade sold over 100 grams of heroin and 100 grams of cocaine to individuals cooperating in a government investigation. Andrade was recorded bragging about the quality of the heroin he was peddling on Cape Cod; specifically, he told a cooperating witness that his heroin came straight from Colombia, saying “that ain’t no Hyannis garbage.” Andrade was also recorded talking about another individual who was selling heroin on Cape Cod, stating that “dope fiends are falling out,” in an apparent reference to drug overdoses occurring in the Bourne and Falmouth areas.
Andrade was arrested in August 2014 along with another Cape Cod drug dealer, Duane Gomez, 40, of Falmouth, who was sentenced in September 2015 to 87 months in prison for conspiring to distribute more than 100 grams of heroin.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Heroin is highly addictive, and users can quickly develop a tolerance, prompting them to seek higher potencies and greater quantities of the narcotic. Between 2000 and 2014, opioid overdose deaths have more than tripled with a spike in recent years in Massachusetts.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Barnstable County District Attorney Michael D. O’Keefe; Edward A. Dunne, Chief of the Falmouth Police Department; Dennis R. Woodside, Chief of the Bourne Police Department; Rodney Collins, Chief of the Mashpee Police Department; and James M. Cummings, Barnstable County Sheriff, made the announcement today. The case was investigated by the Cape Cod Drug Task Force and prosecuted by Assistant U.S. Attorneys William F. Bloomer and Brian A. Pérez-Daple of Ortiz’s Criminal Division.
Bergen County, New Jersey, Man Charged in Alleged Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A North Arlington, New Jersey, man will appear in federal court today to face charges that he fraudulently obtained hundreds of thousands of dollars from investors prior to high-profile initial public offerings (IPOs) and then used the funds for lavish personal expenses, U.S. Attorney Paul J. Fishman announced.
Omar Hafez, 23, is charged by complaint with one count of conspiracy to commit wire fraud. FBI special agents and U.S. Postal inspectors arrested Hafez last night. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint unsealed today:
From July 2014 to December 2015, Hafez and others solicited funds from victim investors, purportedly to be invested in shares of various companies prior to their IPOs. As a result, the victims provided Hafez and others with hundreds of thousands of dollars. However, instead of purchasing shares in those companies, Hafez and the other conspirators used the funds for their own benefit.
Hafez and others created a number of entities through which they operated the scheme, including but not limited to: Lotus Global Wealth Management, Lotus Wealth Management, Lotus Global Capital Investments Corporation, Lotus Global Capital Partners LLC, Lotus Global LLC, Lotus Global Property Management Corporation, Lotus Global Holdings LLC (collectively the “Lotus Global Entities”) and O.P.I. Wealth Management Corporation. Hafez held himself out to be the Chief Executive Officer (CEO) of the Lotus Global Entities.
For example, in February 2015, Hafez told an individual referred to in the complaint as “Victim 1” that he was CEO of Lotus Global and had access to pre-IPO shares of high-profile companies, including an entity referred to in the complaint as “Company A,” a cloud communications company that allowed software developers to integrate voice, text and other communications services into mobile and web applications. Hafez represented that following Company A’s IPO, the value of the shares would increase significantly, providing Victim 1 with significant profits after Hafez sold the shares. As a result, Victim 1 sent Hafez a $100,000 check to purchase shares of Company A.
In March 2015 and April 2015, Hafez represented to Victim 1 that he could sell Victim 1 pre-IPO shares of an entity referred to in the complaint as “Company B,” an Internet domain registrar and web hosting company. Again, Hafez represented that following the company’s IPO, the value of the shares would increase significantly. As a result, Victim 1 sent Hafez a wire in the amount of approximately $300,000 for shares of Company B.
None of the approximately $400,000 provided by Victim 1 was used to purchase shares of Company A, Company B or any other pre-IPO company. Instead, Hafez and other conspirators used Victim 1’s money for personal expenses, including an $87,000 purchase at Prestige Motors – a luxury car dealership – as well as approximately $100,000 in cash withdrawals.
The wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Defense counsel: Richard Coughlin Esq., Camden
Atlantic County, New Jersey, Tax Preparer Convicted of Tax FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer was convicted today of tax fraud for including fraudulent credits and deductions on federal tax returns for his clients in an effort to gain repeat business for himself, U.S. Attorney Paul J. Fishman announced.
Tinh Van Vo, 59, of Egg Harbor Township, New Jersey, was convicted of 10 counts of aiding and assisting in the preparation of false federal income tax returns following a two-week trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated two hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Vo prepared and filed fraudulent U.S. Individual Income Tax Returns through his business, TVO Services in Atlantic City, New Jersey. The returns attached schedules for fictitious educational credits, charitable contributions, and job expenses the taxpayers were not entitled to take – all to generate fraudulently inflated refunds.
Each false tax return count carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing for Vo is scheduled for March 9, 2016.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the Criminal Division in Camden, New Jersey.
Defense counsel: William J. Hughes Jr. Esq., Atlantic City, New Jersey
Artesia Man Sentenced to 84 Months in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Sammie Joe Peralta, 39, of Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison for his methamphetamine trafficking conviction. Peralta will be on supervised release for four years after completing his term of incarceration.
Peralta was arrested on May 8, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute in Eddy County, N.M., on Jan. 20, 2015. On that day, the Pecos Valley Drug Task Force and the Probation and Parole Division of the New Mexico Corrections Department executed a search warrant on Peralta’s vehicle and seized approximately 280.84 grams of methamphetamine, drug paraphernalia and a loaded handgun. Court records reflect that in Jan. 2015, Peralta had an active bench warrant for his arrest for absconding from supervision.
On Aug. 17, 2015, Peralta pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Peralta admitted that on Jan. 20, 2015, he had an active bench warrant for his arrest for absconding from supervision. Peralta also admitted that on that day, a probation officer discovered approximately 280.84 grams of methamphetamine, which he intended to distribute to others, and a handgun in his vehicle.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force and the Probation and Parole Division of the New Mexico Corrections Department, and was prosecuted by Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Airport Baggage Handler Pleads Guilty to Attempted Mail FraudRead the Press Release
NORFOLK, Va. – Donte Chandler, 24, of Norfolk, pleaded guilty today to charges relating to his theft of personal property from a passenger’s bag while working as a baggage handler at the Norfolk International Airport.
In a statement of facts filed with the plea agreement, while working as a baggage handler at the Norfolk International Airport, Chandler removed an iPad from checked baggage located in a secure area of the airport. The iPad belonged to a passenger who was an active duty service member and had been provided the iPad by the U.S. Navy as part of an intelligence class. After removing the iPad, Chandler called the sailor and told him that he had found and purchased the iPad on Craigslist for $200. The sailor offered Chandler $100 to mail the iPad back to him at his California address. Chandler agreed to the $100 offer and placed the iPad in the mail.
Chandler was indicted by a federal grand jury on Oct. 7, 2015. Chandler faces a maximum penalty of 20 years in prison when sentenced on March 16, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of Transportation Security Administration and U.S. Airways. Assistant U.S. Attorney Joseph E. DePadilla is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-128.