Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
2 December 2015
Kenneth Culver Sentenced to 37 Months ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Kenneth Culver, age 39, of Steger, Illinois, was sentenced Tuesday, December 1, 2015, in federal court by Judge Joseph S. Van Bokkelen after pleading guilty to 2 counts of bank robbery.
Kenneth Culver was sentenced to 37 months imprisonment and 2 years supervised release.
According to documents in the case, Culver robbed a Chase Bank within Munster, Indiana on August 12, 2014 and again on December 3, 2014. Culver passed a note to the tellers demanding money and stole $2675 and $1200 on each respective occasion. Culver was initially arrested and charged in Lake County Court with the August robbery. While on bond for the first robbery, he committed the second offense. He was then charged with both crimes in federal court.
This case was the result of an investigation by the Federal Bureau of Investigation in coordination with the Munster Indiana Police. The case was handled by Assistant United States Attorney Thomas M. McGrath.
# # #
Jury Convicts KCK Man of $1 Million Meth Conspiracy in St. Joseph, Across Four-State RegionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was convicted by a federal trial jury today of his role in a large-scale conspiracy that distributed more than 15 kilograms of methamphetamine in St. Joseph, Mo., and across a four-state region.
Anselmo Salazar, also known as “Crazy Eyes,” 49, of Kansas City, Kan., was found guilty of participating in a conspiracy to distribute methamphetamine from Jan. 1, 2009, to Nov. 12, 2013. Salazar was also found guilty of participating in a money-laundering conspiracy that involved financial transactions of the proceeds of illegal drug-trafficking.
In 2010, the Buchanan County Drug Strike Force and the Drug Enforcement Administration initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri, northeast Kansas, southern Iowa and Nebraska.
Salazar is among 24 defendants charged in a Nov. 15, 2013, federal indictment. Salazar, along with co-defendants Carlos Alberto Yanez, 33, of Lee’s Summit, Mo., and Marvin Carl Rogers, 54, of Gladstone, Mo. were the primary sources of supply for methamphetamine for the entire organization. Yanez and Rogers have pleaded guilty and await sentencing.
Yanez and Salazar obtained methamphetamine in up to pound quantities and then delivered the methamphetamine to co-defendant Shannon Martinez (also known as “Big Homie”), 38, of St. Joseph, and another man charged in a separate case. Martinez, in turn, sold the methamphetamine to others to distribute. Martinez has pleaded guilty and awaits sentencing.
On Oct. 11, 2011, Salazar was arrested after a traffic stop in Platte County, Mo. Salazar, who was was driving Yanez’s vehicle, was in possession of 42 one-pound bundles of marijuana, 25 grams of cocaine and 80 grams of methamphetamine. Salazar was on his way to deliver the methamphetamine to St. Joseph for Yanez, and to pick up cash payment for the delivered methamphetamine.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Tuesday, Dec. 1, 2015.
Salazar is jointly and severally liable to forfeit to the government a money judgment of $976,800, which was received in exchange for the unlawful distribution of methamphetamine, based on a conservative purchase price of $1,850 an ounce (for 50 percent pure methamphetamine) and the distribution of more than 15 kilograms of methamphetamine by conspirators.
In addition, among the property that must be forfeited to the government by Salazar’s co-defendants are three cars, a pick-up truck, a motorcycle and approximately $116,389 that was seized from several co-defendants by law enforcement officers during the investigation.
Under federal statutes, Salazar is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Patrick C. Edwards. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the FBI, the Kansas City, Mo., Police Department, the St. Joseph, Mo., Police Department and the Buchanan County, Mo., Sheriff’s Department.
Jury Convicts KC Man of Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today for his role in a conspiracy to distribute crack cocaine and for illegally possessing several firearms.
Marcus McIntosh, 59, of Kansas City, was found guilty of the charges contained in an Aug. 26, 2014, federal indictment. McIntosh was found guilty of his role in a conspiracy to distribute crack cocaine between April 1 and Aug. 8, 2014. McIntosh was also found guilty of distributing crack cocaine and being a felon in possession of several firearms.
McIntosh sold crack cocaine to undercover detectives and confidential informants on several occasions between May and August 2014. On Aug. 8, 2014, law enforcement officers executed a search warrant at a residence that McIntosh was using as a “trap house,” a place to store and sell crack cocaine. McIntosh was placed under arrest; an adult woman and a child were also inside the residence.
During their search of the residence, investigators found a safe under the bed in a bedroom that contained approximately 49.6 grams of crack cocaine, approximately 29.2 grams of powder cocaine and $1,820. In another bedroom, investigators found a loaded Ruger .22-caliber handgun on top of an entertainment center, a Remington 12-gauge shotgun located next to the entertainment center and a loaded PW Arms 9mm handgun between the mattresses on the bed.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McIntosh has two prior federal felony convictions for possessing crack cocaine with the intent to distribute, and prior state felony convictions for carrying a concealed weapon and robbery.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three and half hours before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, Nov. 30, 2015.
Two co-defendants, who are brothers, have pleaded guilty to participating in the conspiracy by distributing crack cocaine that was supplied to them by McIntosh. Tyrone Campbell, Jr., 30, of Raytown, was sentenced to eight years in federal prison. Tyronn Campbell, 25, of Kansas City, Mo., was sentenced to three years and 10 months in federal prison without parole.
Under federal statutes, McIntosh is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and Adam Caine. It was investigated by the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Junction City Man Sentenced to Life on Murder, Drug ChargesRead the Press Release
TOPEKA KAN. – A Junction City man was sentenced Wednesday to life in federal prison for murdering a woman to keep her from giving information to federal law enforcement officers about his involvement in drug trafficking, U.S. Attorney Barry Grissom.
Marcus D. Roberson, 33, Junction City, Kan., was convicted in a jury trial in March 2014 on the following counts:
-
One count of murder in the March 3, 2010, shooting of Crystal K. Fisher.
-
One count of conspiracy to distribute crack cocaine.
-
One count of conspiracy to distribute powder cocaine.
During trial, prosecutors presented evidence that Roberson lured the 25-year-old Fisher to a location near an alley in central Junction City where he shot her four times at close range. Her body was found seated in the driver’s side of her vehicle in the 700 block of West 11th Street in Junction City. She had been shot four times. The murder weapon, a .40 caliber pistol, was found in a pond behind a Walmart in Junction City.
Prosecutors also presented evidence of Roberson’s involvement in a drug trafficking organization that distributed powder and crack cocaine in and throughout the Junction City area.
Co-defendants include:
Virok D. Webb, who was sentenced to 360 months in federal prison.
Kennin Dewberry, who was sentenced to 240 months.
Jamaica L. Chism, who was sentenced to 84 months.
Megan N. Fuller, who was sentenced to 42 months.
Alisha A. Escobedo, who was sentenced to time served and five years on supervised release.
Caress Jackson, who was sentenced to time served and two years on supervised release.
Keishana Johnson, who was sentenced to time served and three years on supervised release.
Grissom commended the Junction City Police Department, the Drug Enforcement Administration, Assistant U.S. Attorney Jared Maag and Assistant U.S. Attorney Mike Warner for their work on the case. Also assisting in the investigation were the Riley County Police Department, the Grandview Plaza Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation, the U.S. Army Criminal Investigations Command at Ft. Riley, the Dickinson County Drug Enforcement Unit, the Kansas Department of Wildlife and Parks Tourism and the Park City Police Department.
-
Irondequoit Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Mitchell Ruoff, 22, of Irondequoit, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of a firearm with an obliterated serial number. The charge carries a maximum Penalty of five years in prison, a fine of $250,000.00, or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated on February 4, 2014, during a pre-arranged meeting, Ruoff sold a .22 caliber revolver to an undercover law enforcement officer for $400.00. The manufacturer’s serial number on the firearm had been ground off, a fact which Ruoff acknowledged during the sale.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for March 1, 2016 at 2:00 p.m. before Judge Wolford.
Indictment Charges Two Citizens of the Dominican Republic in A Drug ConspiracyRead the Press Release
PHILADELPHIA – Luis Manuel Gomez Rodriguez, 37, and Jose Antonio Rosario Reyes, 55, both of the Dominican Republic, with local residences in Philadelphia, Pennsylvania, are charged in a four count indictment with conspiracy to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin within 1,000 feet of the Abraham Lincoln High School in Philadelphia, and possession of a firearm in furtherance of a drug trafficking felony, announced United States Attorney Zane David Memeger. The indictment charges that Gomez Rodriguez and Rosario Reyes possessed with intent to distribute approximately 12 kilograms of heroin at a residence on Battersby Street in the Mayfair section of Philadelphia, as well as a loaded 9 mm handgun and extensive drug trafficking and packaging paraphernalia on October 22, 2015.
According to the indictment, the named defendants were members of a drug organization that received, prepared and packaged multi-kilogram quantities of heroin for street sale and distribution in Philadelphia. The organization used the premises at 7563 Battersby Street in Philadelphia, as a stash house for concealing and storing kilogram quantities of heroin, as a location to cut, prepare and package heroin for street sale in Philadelphia, as well as a place to store proceeds from drug sales and to maintain records from those sales.
The indictment charges that the organization concealed inside 7563 Battersby Street premises multi-kilogram quantities of heroin intended for cutting and packaging, placing the kilograms of heroin inside pieces of furniture containing hidden compartments. It is further charged that the organization employed multiple workers on a periodic basis to mill, prepare, cut and package heroin for street sale and maintained in the basement of the premises extensive paraphernalia, including strainers, grinders, presses, scales, a bucket, ziplock bags, glassine envelopes and two large ziplock bags containing cutting substances, all of which were for use in the cutting and packaging of heroin for street sale. The indictment further charges that, on October 22, 2015, at the time of a warrant-authorized search of the 7563 Battersby Street premises, Luis Manuel Gomez Rodriguez and Jose Antonio Rosario Reyes, both workers in the drug organization, possessed inside the residence approximately 12 kilograms of heroin, which were found concealed in compartments inside two pieces of furniture, a 9 mm Kel-Tech Luger handgun loaded with 7 live rounds of ammunition, approximately $79,286 in United States currency, and a significant amount of heroin trafficking paraphernalia and packaging material.
If convicted, Luis Manuel Gomez Rodriguez and Jose Antonio Rosario Reyes each face a maximum penalty of life imprisonment, an effective mandatory minimum sentence of 15 years’ imprisonment, lifetime supervised release, at least 5 years supervised release, a fine of $30,250,000, and a $400 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Joseph T. Labrum, III.
Indianapolis tax preparer sentenced in fraud schemeRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, today announced the sentencing of an Indianapolis woman who prepared fraudulent tax returns earning her clients returns they were not entitled to. Amber Lynch, 34, was sentenced to two years in federal prison by U. S. District Judge Jane Magnus-Stinson.
“Filing false tax returns is stealing; there is no other way to characterize it,” said Minkler. “If you steal from the U. S. Treasury, you will be held accountable.”
Amber Lynch is a former employee of the H&R Block Company who started preparing returns from her home. Returns completed between 2010 and 2013 were flagged by the IRS Fraud Detection Center in Kansas City when a pattern of household help income, abnormal student loan interest and education credits was detected. Over 400 returns were identified as coming from Lynch’s apartment.
Several of her client taxpayers were interviewed by investigators and all stated many of the deductions listed by Lynch on their returns were completely false. Lynch filed tax returns for one client two consecutive years without the client’s authorization. In total, Lynch attempted to steal over $400,000.
Special Agent in Charge Stephen Boyd stated, “The sentencing of Ms. Lynch sends a clear message to the people of Indianapolis that what she was doing was illegal, and there is a price to pay. One of IRS Criminal Investigations main objectives is to ensure that all tax practitioners, tax preparers, and others who practice in the tax law profession adhere to professional standards and follow the law. Those who break the law will be held accountable for their actions.”
According to Assistant U.S. Attorney Bradley P. Shepard, who prosecuted this case for the government, Lynch must serve one year of supervised release after her sentence.
Harrisburg Man Indicted on Heroin and Cocaine Trafficking ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man has been indicted by a federal grand jury in Harrisburg on multiple charges involving the unlawful distribution of controlled substances.
According to United States Attorney Peter Smith, Curtis Waldron, age 40, was charged in a two count indictment with unlawfully distributing heroin, cocaine and marijuana on October 2, 2015, and with possessing with the intent to distribute heroin, cocaine and crack cocaine since at least January 2015.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Harrisburg Police Department, Dauphin County Drug Task Force and the Dauphin County Probation Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law on each count is 40 years of imprisonment as well as a 5 year mandatory minimum term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
General Electric to Pay $2.25 Million for Violating Federal and State Environmental Laws in Waterford, New YorkRead the Press Release
ALBANY, NEW YORK: The General Electric Company (“GE”) has agreed to pay a $2.25 million civil penalty to resolve a complaint alleging violations of federal and state environmental laws in connection with GE’s use of an incinerator at a manufacturing facility that it once owned and operated in Waterford, New York, announced the United States Attorney’s Office for the Northern District of New York, the Department of Justice, the Environmental Protection Agency (“EPA”), the New York State Attorney General’s Office, and the New York State Department of Environmental Conservation (“DEC”). Both the complaint and the settlement agreement were filed today in United States District Court in Albany.
The allegations in the civil complaint, which is docketed as United States of America and the State of New York v. General Electric Company, Civil No. 1:15-CV-1431, include the following:GE owned the Waterford facility from 1947 through 2006, and continued to operate it through early 2007. GE manufactured various products at the facility, including sealants made of silicone. The silicone manufacturing process generated hazardous waste. GE sought and received permits from DEC to dispose of the hazardous waste onsite, subject to compliance with the Clean Air Act (CAA) and the Resource Conservation and Recovery Act (RCRA). GE disposed of hazardous waste in a rotary kiln incinerator that included an automatic waste feed cut-off system designed to shut down the incinerator if GE deviated from operating parameters designed to ensure compliance with the CAA and RCRA. Unbeknownst to federal and state authorities, GE used a computer program to override the incinerator’s automatic waste feed cut-off system, allowing GE to continue to burn hazardous waste in the incinerator in violation of its CAA and RCRA permits. On at least 1,859 occasions during the period of September 2006 until February 2007, GE employees manually overrode the automatic waste feed cut-off system, thereby potentially exposing the public and the environment to harmful hazardous air pollutants, such as carbon monoxide, dioxins, and furans. Though its employees were violating federal and state law, GE submitted routine compliance reports to the United States and the State of New York falsely attesting to compliance with RCRA, the CAA, and permits issued pursuant to those statutes.
First Assistant United States Attorney Grant C. Jaquith said: “By operating a system to bypass safety controls, GE put the public and the environment in harm’s way. This office will continue to pursue vigorously companies that thwart laws designed to protect public health, safety, and our environment.”
“GE violated the Nation’s and New York’s bedrock environmental laws that were put in place to protect the American public and the environment from harmful air pollution and hazardous materials,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division (ENRD). “This settlement penalizes GE for these violations of law, and represents the combined efforts of the federal government and the state of New York to uphold the law and protect public health.”
“Our laws are critical to protecting the environment and ensuring the health and safety of the public,” said New York State Attorney General Eric T. Schneiderman. “GE ignored its duty to comply with clean air and hazardous waste laws at the Waterford facility. Today’s settlement holds GE accountable for its illegal actions – and reflects my office’s continuing commitment to impose significant consequences on any company that puts New Yorkers in jeopardy by breaking environmental laws. In addition, this settlement represents a strong cooperative effort between the State and the United States to protect public health and the environment.”
“GE overrode a system designed to deal with dangerous air pollutants from a hazardous waste incinerator,” said Judith A. Enck, EPA Regional Administrator. “By overriding the system, GE allowed the hazardous waste to continue to be fed into the incinerator, leading to levels of carbon monoxide that exceeded the permit limits.”
“Violations of New York State’s environmental laws and regulations are serious offenses, which carry serious consequences,” said DEC’s Acting Commissioner Basil Seggos. “This fine is the result of the collaborative efforts of state and federal partners working together to accomplish a shared mission to protect our citizens and communities and should send a strong message that New York State has zero tolerance for those who shirk environmental policies and procedures put in place as protections. I commend DEC’s Law Enforcement Officers for their determined vigilance in this investigation. This is a great example of the important work they perform in the course of their sworn duty to protect the citizens of New York and the environment.”
This case was investigated by EPA and DEC, and is being handled by Assistant United States Attorneys Thomas Spina Jr. and Adam J. Katz, New York State Assistant Attorneys General Maureen F. Leary and James C. Woods, an attorney from the Department of Justice’s Environmental Enforcement Section, and assistant regional counsel from EPA’s office in New York City.
Franklin American Mortgage Company Agrees to Pay $70 Million to Resolve Alleged False Claims Act Liability Arising from Federal Housing Administration-Insured Mortgage LendingRead the Press Release
WASHINGTON – Franklin American Mortgage Company has agreed to pay the United States $70 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. Franklin American is headquartered in Franklin, Tennessee.
“Franklin promised that its loans met HUD’s quality standards in order to obtain HUD insurance, but ignored widespread, systemic defects in those loans,” said U.S. Attorney John F. Walsh of the District of Colorado. “This case is the latest step in our ongoing effort to hold lenders accountable for fraudulent conduct that wreaked havoc on our housing market.”
“This settlement is another step forward in the government’s efforts to hold lenders accountable for the harm caused by years of improper and inadequate underwriting of mortgages insured by the federal government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this settlement makes clear, we will hold accountable anyone whose conduct results in loss to the government, whether it is a large bank or a smaller mortgage lender.”
During the time period covered by the settlement, Franklin American participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, the FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance; to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices; and to self-report any deficient loans identified by their quality control program.
The settlement announced today resolves allegations that Franklin American failed to comply with certain FHA origination, underwriting and quality control requirements. As part of the settlement, Franklin American admitted to the following facts: between Jan. 1, 2006, and March 31, 2012, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. Franklin American’s FHA loan production grew substantially from 2006 until 2010. During this time, Franklin American employed unqualified junior underwriters to perform important underwriting functions. Franklin American also set high quotas for its underwriters and subjected underwriters to discipline if they did not meet their quotas. The company also sought to incentivize the production of loans by offering bonuses to its FHA underwriters. Loans underwritten by Franklin American were later reviewed in post-close audits. Oftentimes, those audits did not satisfy HUD’s requirements. Nevertheless, the audits identified substantial percentages of seriously deficient loans underwritten by Franklin American. Although these deficient loans were shared with management, Franklin American reported very few deficiencies to HUD. Franklin American’s conduct caused the FHA to insure hundreds of loans that were not eligible and, as a result, the FHA suffered substantial losses when it later paid insurance claims on those loans.
“The resolution of this matter against Franklin American reflects that all loan originators, whether large or small, receive the same scrutiny of their FHA loan underwriting practices,” said Inspector General David A. Montoya of the HUD Office of Inspector General (OIG). “The FHA program depends on the good faith and utmost integrity of the participants in the program and we will continue to devote substantial resources to identify instances in which participants in the FHA program fail to meet those standards.”
“Today’s settlement demonstrates HUD’s commitment to hold lenders accountable for serious violations of FHA requirements,” said General Counsel Helen R. Kanovsky of HUD’s Office of General Counsel. “We’re pleased that Franklin American accepted financial responsibility for its actions, which will restore funds to FHA.”
The settlement was the result of a joint investigation conducted by HUD, HUD OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Colorado.
Franklin American Mortgage Company Agrees to Pay $70 Million to Resolve Alleged False Claims Act Liability Arising from Federal Housing Administration-Insured Mortgage LendingRead the Press Release
Franklin American Mortgage Company has agreed to pay the United States $70 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. Franklin American is headquartered in Franklin, Tennessee.
“This settlement is another step forward in the government’s efforts to hold lenders accountable for the harm caused by years of improper and inadequate underwriting of mortgages insured by the federal government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this settlement makes clear, we will hold accountable anyone whose conduct results in loss to the government, whether it is a large bank or a smaller mortgage lender.”
“Franklin promised that its loans met HUD’s quality standards in order to obtain HUD insurance, but ignored widespread, systemic defects in those loans,” said U.S. Attorney John F. Walsh of the District of Colorado. “This case is the latest step in our ongoing effort to hold lenders accountable for fraudulent conduct that wreaked havoc on our housing market.”
During the time period covered by the settlement, Franklin American participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, the FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance; to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices; and to self-report any deficient loans identified by their quality control program.
The settlement announced today resolves allegations that Franklin American failed to comply with certain FHA origination, underwriting and quality control requirements. As part of the settlement, Franklin American admitted to the following facts: between Jan. 1, 2006, and March 31, 2012, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. Franklin American’s FHA loan production grew substantially from 2006 until 2010. During this time, Franklin American employed unqualified junior underwriters to perform important underwriting functions. Franklin American also set high quotas for its underwriters and subjected underwriters to discipline if they did not meet their quotas. The company also sought to incentivize the production of loans by offering bonuses to its FHA underwriters. Loans underwritten by Franklin American were later reviewed in post-close audits. Oftentimes, those audits did not satisfy HUD’s requirements. Nevertheless, the audits identified substantial percentages of seriously deficient loans underwritten by Franklin American. Although these deficient loans were shared with management, Franklin American reported very few deficiencies to HUD. Franklin American’s conduct caused the FHA to insure hundreds of loans that were not eligible and, as a result, the FHA suffered substantial losses when it later paid insurance claims on those loans.
“The resolution of this matter against Franklin American reflects that all loan originators, whether large or small, receive the same scrutiny of their FHA loan underwriting practices,” said Inspector General David A. Montoya of the HUD Office of Inspector General (OIG). “The FHA program depends on the good faith and utmost integrity of the participants in the program and we will continue to devote substantial resources to identify instances in which participants in the FHA program fail to meet those standards.”
“Today’s settlement demonstrates HUD’s commitment to hold lenders accountable for serious violations of FHA requirements,” said General Counsel Helen R. Kanovsky of HUD’s Office of General Counsel. “We’re pleased that Franklin American accepted financial responsibility for its actions, which will restore funds to FHA.”
The settlement was the result of a joint investigation conducted by HUD, HUD OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Colorado.
Francisco Melgar-Cabrera Sentenced to Life ImprisonmentRead the Press Release
ALBUQUERQUE – Francisco Melgar-Cabrera was sentenced this afternoon in federal court in Albuquerque, N.M., to life imprisonment for his conviction on felony murder and Hobbs Act charges arising from the murder of Stephanie Anderson and the armed robberies of two Albuquerque-area restaurants in June 2009. Melgar-Cabrera, 32, a Salvadoran national, was sentenced to life imprisonment on the felony murder charge and 20 years in prison on the Hobbs Act charges.
In announcing the sentence, U.S. Attorney Damon P. Martinez said, “Although the life sentence imposed on Melgar-Cabrera cannot restore Stephanie Anderson to her family and friends, I hope it brings them a measure of comfort and closure.” The U.S. Attorney commended the seasoned officers and career prosecutors who devoted more than six years to bring justice to Ms. Anderson’s family and the others who were victimized by Melgar-Cabrera and his three cohorts. “In particular, I want to recognize Assistant U.S. Attorney Louis E. Valencia and ATF Special Agent Paul Jessen, both of whom were on the case from the beginning and repeatedly delayed retirement plans until all four defendants were convicted and sentenced. They exemplify the Justice Department’s resolve to hold criminals accountable.”
“I am extremely proud of the work of this office and our law enforcement partners on this case. I would like to recognize the investigative efforts of ATF Special Agents – especially the efforts of ATF Special Agent Paul Jessen, who for years doggedly pursued Melgar-Cabrera for his role in Stephanie Anderson’s murder. I hope the life sentence imposed today brings some peace to Stephanie’s family,” said Special Agent in Charge Thomas G Atteberry of ATF’s Phoenix Division. “ATF is committed to working with our law enforcement partners – at home and around the world – to take violent criminals off the streets and bring them to justice.”
“Violent criminals are grabbing headlines lately, but today’s sentencing proves they are no match for law enforcement as we work together to bring them to justice, no matter where they try to hide or how long it takes to find them,” said FBI Acting Special Agent in Charge Robert White. “Stephanie Anderson’s murder was a tragic loss for our community and the FBI and its partners were not going to let this crime go unpunished. Many dedicated professionals worked tirelessly with us on this case, including the FBI Legal Attaché in San Salvador, the U.S. Department of State, U.S. Department of Justice Office of International Affairs, U.S. Attorney’s Office, the FBI’s Transnational Anti-Gang Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, the Government of El Salvador, and the Albuquerque Police Department.”
“We hope today’s sentencing brings a sense of closure and justice to Ms. Anderson’s family and all of those involved,” said Chief Gorden Eden, Jr., of the Albuquerque Police Department. “Our goal in law enforcement is to pursue justice no matter how long it takes or how many hurdles we may face. I am thankful for all of our law enforcement partnerships and the positive impact we are able to have especially when dangerous criminals like Melgar-Cabrera are prosecuted in the federal system.”
Melgar-Cabrera and two co-defendants Marvin Aguilar-Lopez and Pablo De Leon Ortiz, both Salvadoran nationals, were indicted in Oct. 2009, and charged with violating the Hobbs Act by robbing a business involved in interstate commerce, felony murder and firearms offenses. The charges arose from the armed robbery of a Denny’s Restaurant located at 1602 Coors Blvd. NW in Albuquerque on June 20, 2009, and the murder of Ms. Anderson, a cook at the restaurant.
In April 2010, the indictment was superseded to add Melgar-Cabrera’s brother, Jose Melgar-Cabrera, also a Salvadoran national, as a defendant. Jose Melgar-Cabrera was charged as an accessory after the fact for assisting Melgar-Cabrera’s flight to avoid apprehension. A second superseding indictment, filed in Oct. 2010, added four new robbery and firearms offenses against Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz that arose out of the armed robbery of a Lone Star Steakhouse & Saloon located at 10019 Coors Blvd. NW in Albuquerque on June 13, 2009.
The trial of Melgar-Cabrera for the armed robbery of two businesses involved in interstate commerce and felony murder began on Aug. 25, 2015 and ended Sept. 3, 2015, when the jury returned a verdict of guilty on all three charges. The evidence established that Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz robbed the Lone Star Steakhouse at gunpoint at 11:00 a.m. on June 13, 2009. Witnesses testified seeing two masked men with firearms rush the restaurant’s general manager, who was on his way to deposit the prior day’s receipts, and push their guns into his stomach. One of the masked men took the money bag from the general manager and the other took money from the general manager’s wallet. A third man drove the two masked men away in a gold-colored car. The evidence revealed that Melgar-Cabrera was the man who drove the two masked men, Aguilar-Lopez and De Leon Ortiz, away from the Lone Star Steakhouse.
The evidence also established that on the morning of June 20, 2009, Melgar-Cabrera, Aguilar-Lopez and De Leon-Ortiz, who were masked and armed, charged into the Denny’s Restaurant, brandished their weapons, and demanded that everyone get down on the floor. The men were in the Denny’s for a few minutes during which a frenzy of activity ensued including the following: a restaurant employee dropped a tray of beverages and Aguilar-Lopez slipped on the wet floor and fired his weapon; De Leon-Ortiz grabbed the manager, held a gun to his head, and threatened to kill him if he didn’t turn over the restaurant’s money; and Melgar-Cabrera threatened a waitress and demanded that she open the cash register. After Melgar-Cabrera and De Leon-Ortiz grabbed cash out of the register, the three men fled from the restaurant. Shortly thereafter, Ms. Anderson, who was struck by the bullet fired by Aguilar-Lopez, died of a gunshot wound.
Aguilar-Lopez and De Leon Ortiz each entered guilty pleas to armed robbery and felony murder charges. Aguilar-Lopez was sentenced to 40 years in prison and De Leon Ortiz was sentenced to a 35-year term of imprisonment. They will be deported after completing their prison sentences. Jose Melgar-Cabrera pled guilty to being an accessory after the fact and was sentenced to 48 months in prison. After completing his prison sentence, Jose Melgar-Cabrera was deported to El Salvador.
This case was investigated by the Albuquerque offices of ATF and FBI and APD and was prosecuted by Assistant U.S. Attorneys Louis E. Valencia and Presiliano A. Torrez.
Fort Smith Man Sentenced to Ten Years for Transporting Two Minors to Houston to Work as ProstitutesRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Odis Charles Grant, Jr., age 30, aka “Flawless”, of Fort Smith, Arkansas, was sentenced today to 120 months in prison followed by five years of supervised release after pleading guilty to one count of Transportation of Minors with Intent to Engage in Criminal Sexual Activity. The Honorable P.K. Holmes III presided over the hearing in the United States District Court in Fort Smith.
In his plea agreement, Grant admitted to transporting two juveniles from Fort Smith to Texas in November, 2014 with the intent that the two minor females engage in prostitution in the Houston, Texas area. Grant utilized Facebook to recruit and communicate with the minors. Grant also admitted to directing another individual to take photographs of the minors which were used in ads posted in the escort section of a website. According to the minors, they engaged in prostitution while in Houston and provided the money to Grant.
This case was investigated by the Fort Smith Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Former West Virginia State Trooper sentenced for distributing oxymorphoneRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a former West Virginia State Trooper was sentenced today in federal court in Charleston, West Virginia, to two years and six months in federal prison for distribution of oxymorphone. Christopher Lee Saunders, 43, of Beckley, previously pleaded guilty in June 2015 to the federal drug charge.
Saunders admitted that on January 22, 2015, he sold oxymorphone to a confidential informant working with law enforcement. The drug deal took place at the Walmart parking lot located off Robert C. Byrd Drive in MacArthur.
This case was investigated by the West Virginia State Police, and 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 United States 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.
-
Follow us on Twitter: SDWVNews
-
Former Huntsville, Alabama, Police Officer Sentenced for Excessive Use of Force and Obstruction of JusticeRead the Press Release
Former Huntsville, Alabama, Police Officer Brett Russell, 48, was sentenced today to 18 months in prison by U.S. District Court Judge Abdul K. Kallon of the Northern District of Alabama for violating the civil rights of a Huntsville man.
On July 30, 2015, a federal jury in Huntsville convicted Russell of deprivation of rights under color of law for assaulting and injuring G.H., a detainee in his custody, as well as obstruction of justice for filing a false police report regarding this incident. According to evidence presented at trial, on Dec. 23, 2011, G.H. was detained in the rear of a police vehicle parked in a hotel parking lot. After initially uttering profanity and kicking a rear window, G.H. had since been sitting handcuffed, compliant and non-resisting for approximately 30 minutes. As officers attempted to remove G.H. from the vehicle to place shackles on him, Russell yanked G.H. from the vehicle. While G.H. was lying handcuffed on the ground, Russell repeatedly punched and kneed G.H. Other officers placed leg shackles on G.H. and Russell transported G.H. to the Madison County Jail. When the jail refused to accept G.H. because of his injuries, Russell transported G.H. to the Huntsville Hospital. Subsequently, Russell wrote and submitted a false incident report claiming that G.H. tried to kick and head butt the officers. Further, Russell omitted from the false report any reference to the fact that he had used force on G.H.
“Law enforcement officers who abuse their power to willfully subject those in their custody to violence and pain will be held accountable,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in such acts of criminal misconduct.”
“The defendant’s abusive and dishonorable behavior is being punished and an errant officer brought to justice,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “I thank the FBI and the Civil Rights Division for their work on this case.”
This case was investigated by the FBI’s Florence Resident Agency. It was prosecuted by Trial Attorney Carroll McCabe of the Civil Rights Division and Assistant U.S. Attorneys Daniel Fortune and Xavier O. Carter Sr. of the Northern District of Alabama.
Former Huntsville Police Officer Sentenced for Excessive Use of Force and Obstruction of JusticeRead the Press Release
BIRMINGHAM – U.S. District Court Judge Abdul K. Kallon today sentenced former Huntsville Police Officer Brett Russell, 48, to 18 months in prison for violating the civil rights of a Huntsville man.
On July 30, 2015, a federal jury in Huntsville convicted Russell of deprivation of rights under color of law for assaulting and injuring G.H., a detainee in Russell’s custody, as well as obstruction of justice for filing a false police report regarding this incident. According to evidence presented at trial, on Dec. 23, 2011, G.H. was detained in the rear of a police vehicle parked in a hotel parking lot. After initially uttering profanity and kicking a rear window, G.H. had since been sitting handcuffed, compliant and non-resisting for approximately 30 minutes. As officers attempted to remove G.H. from the vehicle to place shackles on him, Russell yanked G.H. from the vehicle. While G.H. was lying handcuffed on the ground, Russell repeatedly punched and kneed G.H. Other officers placed leg shackles on G.H. and Russell transported G.H. to the Madison County Jail. When the jail refused to accept G.H. because of his injuries, Russell transported G.H. to the Huntsville Hospital. Subsequently, Russell wrote and submitted a false incident report claiming that G.H. tried to kick and head butt the officers. Further, Russell omitted from the false report any reference to the fact that he had used force on G.H.
“The defendant’s abusive and dishonorable behavior is being punished and an errant officer brought to justice,” said Northern District of Alabama U.S. Attorney Joyce White Vance. “I thank the FBI and the Civil Rights Division for their work on this case.”
“Law enforcement officers who abuse their power to willfully subject those in their custody to violence and pain will be held accountable,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in such acts of criminal misconduct.”
The FBI’s Florence Resident Agency investigated the case. Assistant U.S. Attorneys Daniel Fortune and Xavier O. Carter Sr., and Trial Attorney Carroll McCabe of the Civil Rights Division prosecuted the case.
Former Enzyme Company Owner Sentenced to Prison for Filing False Tax Returns and PerjuryRead the Press Release
An Indiana resident was sentenced to more than two years in prison for filing false federal income tax returns and perjury, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Jared E. Hochstedler, 40, of Fort Wayne, Indiana, was sentenced to 27 months in prison, one year of supervised release and ordered to pay $1,232,739 in restitution to the Internal Revenue Service (IRS). According to court documents, Hochstedler pleaded guilty on Feb. 26 to two counts of willfully filing false income tax returns for 2008 and 2009 and one count of committing perjury during a deposition conducted by the U.S. Securities and Exchange Commission (SEC).
Hochstedler owned Enzyme Environmental Solutions (EESO), a company focused on creating cleaning products using enzymes. As the owner of EESO, Hochstedler participated in stock exchanges of EESO stock with third party companies for which he received more than $2.8 million. Hochstedler failed to report these funds as income on his 2008 and 2009 individual income tax returns. In addition, Hochstedler received loans from these third party companies which he did not repay. Hochstedler used a substantial portion of the loan proceeds for personal expenditures and failed to report that income on his tax returns. In 2009, Hochstedler also sold stock in another company for more than $1 million and failed to report the full amount of the proceeds as a capital gain on his 2009 tax return.
In June 2009, in the course of an investigation, the SEC deposed Hochstedler under oath regarding the stock transactions he executed with the third parties. During the deposition, the SEC inquired about the details of the transactions and Hochstedler lied about the nature of the transactions and the amount of money he received.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Richard M. Rolwing and Christopher P. O’Donnell of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Former Enzyme Company Owner Sentenced to Prison for Filing False Tax Returns and PerjuryRead the Press Release
WASHINGTON – An Indiana resident was sentenced to more than two years in prison today for filing false federal income tax returns and perjury, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Jared E. Hochstedler, 40, of Fort Wayne, Indiana, was sentenced to 27 months in prison, one year of supervised release and ordered to pay $1,232,739 in restitution to the Internal Revenue Service (IRS). According to court documents, Hochstedler pleaded guilty on Feb. 26 to two counts of willfully filing false income tax returns for 2008 and 2009 and one count of committing perjury during a deposition conducted by the U.S. Securities and Exchange Commission (SEC).
Hochstedler owned Enzyme Environmental Solutions (EESO), a company focused on creating cleaning products using enzymes. As the owner of EESO, Hochstedler participated in stock exchanges of EESO stock with third party companies for which he received more than $2.8 million. Hochstedler failed to report these funds as income on his 2008 and 2009 individual income tax returns. In addition, Hochstedler received loans from these third party companies which he did not repay. Hochstedler used a substantial portion of the loan proceeds for personal expenditures and failed to report that income on his tax returns. In 2009, Hochstedler also sold stock in another company for more than $1 million and failed to report the full amount of the proceeds as a capital gain on his 2009 tax return.
In June 2009, in the course of an investigation, the SEC deposed Hochstedler under oath regarding the stock transactions he executed with the third parties. During the deposition, the SEC inquired about the details of the transactions and Hochstedler lied about the nature of the transactions and the amount of money he received.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Richard M. Rolwing and Christopher P. O’Donnell of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
# # #
15-1471
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Former Director at USC Sentenced to Prison for Grant FraudRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gail Shurling (62) was sentenced in federal court in Columbia, South Carolina, for wire fraud, a violation of 18 U.S.C. § 1343. United States District Judge Mary Geiger Lewis of Columbia sentenced her to 27 months, 3 years supervised release and over $335,000 of restitution.
Shurling, as the Director of the Center for Manufacturing and Technology (CMAT) at the University of South Carolina, committed grant fraud. In her role with CMAT, Shurling submitted fraudulent documentation to obtain federal grant money. As part of the scheme, Shurling approved contracts and payments to shell corporations that were controlled by friends, family members, and herself for work that was not completed. In total, Shurling submitted approximately $336,000 worth of fraudulent documentation to the University, the Government, and to the entity responsible for administrating grant funds.
United States Attorney Bill Nettles stated: “The United States Attorney’s Office, in conjunction with our law enforcement partners, is dedicated to curbing fraud of public funds. We will continue to pursue those who lie, cheat and steal from the public.”
“Today’s sentencing of Ms. Shurling is another instance of those who commit fraud against the government will be ferreted out and prosecuted to the fullest extent of law to protect the taxpayers interest,” said Duane Townsend, Special Agent in Charge, U.S. Department of Commerce, Office of Inspector General.
The case was investigated by agents of the Department of Commerce Office of the Inspector General and FBI. Assistant United States Attorney Jim May of the Columbia office prosecuted the case.
#####
Former Corrections Officer Sentenced to Two Years in Prison for Accepting Cash Bribes in Exchange for Smuggling Contraband into Essex County Correctional FacilityRead the Press Release
NEWARK, N.J. – A former Essex County corrections officer was sentenced today to 24 months in prison for accepting bribes in exchange for smuggling contraband, including cell phones and tobacco, into the Essex County Correctional Facility, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
John Grosso, 42, of Belleville, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiring to commit extortion under color of official right. Judge Chesler imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Grosso, a former corrections officer at the Essex County Correctional Facility, admitted that in December 2013, he agreed to accept cash bribes in return for his assistance smuggling cell phones and cigarettes to an inmate. Grosso met with the inmate’s relative in Secaucus, New Jersey, to accept the contraband and bribe before delivering the items to the inmate.
In addition to the prison term, Judge Chesler sentenced Grosso to one year of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert L. Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
Defense counsel: Elizabeth H. Smith Esq., Mendham, New Jersey
Former Charlotte Resident Sentenced to 14 Years in Prison for Transporting Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today Paul Edward Baalerud, 56, formerly of Charlotte, to 14 years in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Baalerud was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
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, Charlotte Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
According to filed documents and statements made in court, from about December 2013 to January 2014, law enforcement became aware that an individual, later identified as Baalerud, was sharing child pornography using peer to peer software. The investigation revealed that Baalerud possessed a collection of child pornography, consisting of 99 images and videos depicting children, including toddlers, being sexually abused. According to today’s court proceedings, Baalerud also molested three children, all under the age of three. Baalerud pleaded guilty in July 2015 to one count of transportation of child pornography.
Baalerud has been in federal custody since October 2014 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by CMPD and FBI. Assistant U.S. Attorney Cortney S. Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Bank Employee Sentenced for Misapplying Customers' FundsRead the Press Release
Lindi D. Vickers, aged 39, of Bartow, Georgia, was sentenced today to serve forty-six (46) months in prison and pay restitution in the amount of $273,420.59 for misapplying bank customers’ funds, according to a statement made by Acting United States Attorney G. F. “Pete” Peterman, III. The sentence was handed down in Macon by the Honorable Leslie J. Abrams, United States District Judge for the Middle District of Georgia.
Ms. Vickers entered a guilty plea to one count of misapplication of funds by a bank employee. The facts stipulated in court were that between December 2010 and August 2014, Ms. Vickers, using her position as an assistant manager at State Bank and Trust Company (“State Bank”) in Macon, Georgia, transferred funds totaling $263,700.00 from customer accounts on fifty-seven (57) separate occasions. The transfers were made without the knowledge or permission of the bank customers to other accounts at State Bank under Ms. Vickers’ control, from which she could convert the money to her own use. The count of conviction involved the transfer of $15,000 from a customer’s account by Ms. Vickers on August 15, 2014.
As a result of this conviction, Ms. Vickers will be prohibited from employment by any federally insured financial institution except with the prior written consent of the Federal Deposit Insurance Corporation.
“This case involves an abuse of the trust placed in Ms. Vickers both by the bank for whom she worked as well as by the customers she was supposed to serve. Her crime is made even more reprehensible by its deliberate and long term, repeated nature,” said Acting United States Attorney Peterman.
The case was investigated by the Macon Resident Agency of the Federal Bureau of Investigation, and by the Bibb County Sheriff’s Department. Assistant United States Attorney Paul C. McCommon III prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Foreign National Sentenced for Bank Fraud ConspiracyRead the Press Release
BOSTON – A man from Brazil who had been living unlawfully in Columbus, Ohio was sentenced today in U.S. District Court in Boston for conspiracy to commit bank fraud and entering the United States after having been deported.
Reinaldo Oliveira, 33, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 15 months in prison, three years of supervised release and ordered to pay $66,985 in restitution.
From 2011 to 2012, Oliveira and other conspirators deposited worthless checks into accounts at Massachusetts banks opened in fictitious names, and then withdrew funds before the banks realized the deposits were worthless. Oliveira’s role in the scheme was to help open accounts, to participate in withdrawing funds, and to control one of the bank accounts. Oliveira had been deported from the United States in 2001, and was participating in the scheme after reentering the country unlawfully.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Robert E. Richardson of Ortiz’s Major Crimes Unit.
First U.S.-China High-Level Joint Dialogue on Cybercrime and Related Issues Summary of OutcomesRead the Press Release
On Dec. 1, 2015, in Washington, D.C., Attorney General Loretta E. Lynch and Department of Homeland Security Secretary Jeh Johnson, together with Chinese State Councilor Guo Shengkun, co-chaired the first U.S.-China High-Level Joint Dialogue on Cybercrime and Related Issues. Under the commitments made by U.S. President Barack Obama and Chinese President Xi Jinping during the state visit in September 2015, the primary objectives of the dialogue were to review the timeliness and quality of responses to requests for information and assistance with respect to cybercrime or other malicious cyber activities and to enhance cooperation between the United States and China on cybercrime and related issues. In addition to members of the Departments of Justice and Homeland Security, representatives from the Department of State, National Security Council and Intelligence Community participated for the United States, while the Chinese delegation included representatives from the Committee of Political and Legal Affairs of CPC Central Committee, the Ministry of Public Security, the Ministry of Foreign Affairs, the Ministry of Industry and Information Technology, the Ministry of State Security, the Ministry of Justice and the State Internet Information Office.
During the dialogue, both countries discussed ways to enhance cooperation within the bounds of each nation’s legal framework and assessed progress made on cases identified during their discussions in September 2015. They reached the following specific outcomes:
1. Guidelines for Combatting Cybercrime and Related Issues. Attorney General Lynch, Secretary Johnson and State Councilor Guo reached agreement on a document establishing guidelines for requesting assistance on cybercrime or other malicious cyber activities and for responding to such requests. These guidelines will establish common understanding and expectations regarding the information to be included in such requests and the timeliness of responses.
2.Tabletop Exercise. Both sides decided to conduct a tabletop exercise in the spring of 2016 on agreed-upon cybercrime, malicious cyber activity and network protection scenarios to increase mutual understanding regarding their respective authorities, processes and procedures. During the tabletop exercise, both sides will assess China’s proposal for a seminar on combatting terrorist misuse of technology and communications, and will consider the U.S.’s proposal on inviting experts to conduct network protection exchanges.
3. Hotline Mechanism. Pursuant to the commitment between the two presidents to establish a hotline for escalation of issues that may arise in the course of responding to cybercrime and other malicious cyber activities, both sides decided to develop the scope, goals and procedures for use of the hotline before the next High-Level Dialogue.
4. Enhance Cooperation on Combatting Cyber-Enabled Crime and Related Issues. Both sides decided to further develop case cooperation on combatting cyber-enabled crimes, including child exploitation, theft of trade secrets, fraud and misuse of technology and communications for terrorist activities, and to enhance exchanges on network protection. Both sides decided to improve cooperation among the relevant agencies, within the framework of the high-level dialogue, on network protection issues. U.S. and Chinese cyber incident and network protection experts will meet on Dec. 3, 2015, and will continue to meet regularly during future dialogues.
5. Second U.S.-China High-Level Joint Dialogue on Cybercrime and Related Issues. Attorney General Lynch, Secretary Johnson and State Councilor Guo decided to schedule the second U.S.-China High-Level Dialogue on Combatting Cybercrime and Related Issues in June 2016. The dialogue will take place in Beijing, China.
Firearms Dealer Pleads Guilty to Illegal Possession of a Firearm and Lying to Federal AgentsRead the Press Release
U.S. Attorney Kenneth Polite announced today that WAYLON GIVENS, age 41, of Amite, pled guilty to a two-count Bill of Information charging him with illegal possession of a machine gun and making a false statement to agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
According to court documents, in July 2014, ATF conducted an investigation into RH Custom, an internet company based in Sweden. RH Custom sold selling “Glock Switches,” “Lightning Links,” suppressor builder’s kits (silencers), and other firearms components to customers in the United States. Some of these parts are designed to convert semi-automatic firearms to fully automatic firearms, in violation of the National Firearms Act. ATF learned of GIVENS’s purchases by reviewing invoices obtained in relation to the investigation of RH Custom. As a result of the investigation, ATF learned that between June 2012 through August 2012, GIVENS, a Federal Firearms Licensee, doing business as Givens Firearms, ordered and received seven Lightning Links and four Glock Switches.
On July 11, 2014, ATF interviewed GIVENS and informed him of the nature of the investigation and that agents were aware of his purchases from RH Custom. Agents advised GIVENS that the purpose of ATF’s investigation was to retrieve the parts that he received from RH Custom. GIVENS told ATF that he sold multiple “Glock full-auto conversion kits” and “Lightening Links” to an unknown individual, but that he did not know the location of the parts. After further investigation, it was determined that GIVENS had sold the illegal parts to known individuals whom he knew were in possession of the parts at the time of the ATF interview.
As part of GIVENS’s plea, he agreed to surrender his federal firearms license. GIVENS faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release. U.S. District Judge Susie Morgan set sentencing for March 9, 2016.
U.S. Attorney Polite praised the work of the ATF New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
Essex County, New Jersey, Man Sentenced to More Than Eight Years in Prison for Armed CarjackingRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was sentenced today to 97 months in prison for stealing a car while carrying a firearm in January 2014, U.S. Attorney Paul J. Fishman announced.
Alsharif Scriven, 27, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of theft of a motor vehicle by force, violence and intimidation and one count of using a firearm in furtherance of a crime of violence. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In the early evening of Jan. 8, 2014, an individual was parking his 2012 Honda Accord at his Newark residence. When the victim exited the vehicle to open the garage door, Scriven, who was carrying a firearm, jumped into the open driver’s side door and attempted to steal the car. After a struggle with the victim, Scriven ultimately took control of the vehicle and drove away.
In addition to the prison term, Judge Wigenton sentenced Scriven to serve five years of supervised release.
U.S. Attorney Fishman credited criminal investigators of the U.S. Attorney’s Office in Newark, as well as the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, the Union County Prosecutor’s Office under the direction of Acting Prosecutor Grace H. Park, the Essex County Police Department and the Union County Police Department, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
Essex County, New Jersey, Man Sentenced to More Than 21 Years in Prison for Multiple CarjackingsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 255 months in prison for his role in three gunpoint carjackings and an attempted carjacking within a one-week period and to firing his gun during one of the robberies, U.S. Attorney Paul J. Fishman announced.
Corey Thermitus, 23, of Newark, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with three counts of theft of a motor vehicle by force, violence and intimidation; one count of attempted theft of a motor vehicle by force, violence and intimidation; and one count of discharging a firearm in furtherance of a violent crime. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 21, 2012, Thermitus was a passenger in a car that had stopped on a street in the Ironbound section of Newark. Thermitus and several other men exited the car and approached two people standing next to a Toyota Corolla that had just parked. Thermitus brandished a gun at the victims, while another man searched the victims and took the keys to the Toyota Corolla. Once the men had the keys, Thermitus and the other men fled the scene in both vehicles.
He also admitted that on Dec. 26, 2012, he and another man were in the area of 6th Avenue and N. 9th Street in Newark, when they approached a Nissan Altima. Thermitus approached the passenger side of the vehicle, where one of the victims was seated, and attempted to open the door, but the victim resisted and attempted to hold the door closed. Thermitus then told an accomplice to shoot a second victim who was standing next to the car. In response, both victims stepped away from the Nissan Altima and the other man fled the area in the vehicle.
Thermitus admitted that on Dec. 28, 2012, he took a Honda Accord at gunpoint from a victim who was seated in the car in the driveway of a Newark residence. Once the victim got out of the car, Thermitus and two other men fled the area in the Honda Accord. Approximately one hour later, the three men traveled to Midland Place in Newark in the carjacked Accord, where he and one of the other men attempted to carjack a Nissan Pathfinder at gunpoint. Thermitus and another man approached the Nissan Pathfinder while one of the victims in the vehicle was parking it in the garage of a residence. Thermitus pointed a gun at the victim and demanded the victim get out of the vehicle. The victim resisted and drove down the driveway and down the street to escape the carjacking attempt. Moments later, the victim returned to the residence to find Thermitus and the other two men attempting to escape in the carjacked Honda Accord. When another person came outside of one of the residences on the street to check on the commotion, Thermitus fired a shot at the person. The three men fled the scene in the carjacked Honda Accord. No one was injured in the attack.
In addition to the prison term, Judge Walls also sentenced Thermitus to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Dara Aquila Govan of the Organized Crimes/Gangs Unit in Newark.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
East Hartford Man Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that SHAUKAT G. DALAL, also known as Shaukathusein Dalal, 55, of East Hartford, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, DALAL was employed by the State of Connecticut as a Fiscal Administration Assistant, and also owned and operated a separate tax preparation business, Tax Preparation SVS Inc. For the 2009 through 2011 tax years, DALAL, who had prepared more than 250 tax returns as part of the tax preparation business, did not deposit all of the gross receipts from the business into his business bank account and subsequently understated his gross receipts on his federal tax returns.
DALAL and his wife also owned Ameen LLC, a holding company that owned 25 rental units in an East Hartford condominium complex. DALAL performed virtually all of the work for the real estate business, including collecting rent receipts, pricing the units, organizing repairs and maintenance, depositing rent receipts, paying the bills and maintaining the books and records. DALAL did not deposit a substantial portion of rent receipts, often paid to him in cash, into Ameen LLC’s business bank account and substantially underreported both the applicable income and taxes due and owing on his 2009 through 2011 federal tax returns.
Judge Underhill scheduled sentencing for February 24, 2016, at which time DALAL faces a maximum term of imprisonment of five years and a fine of up to $250,000. DALAL also has agreed to pay $97,289 in back taxes, plus applicable penalties and interest.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Dorchester Man Sentenced for Conspiring to Transport an Individual for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE - Enoc Ayuso, 26, of Dorchester, Massachusetts, was sentenced on Wednesday in the United States District Court for the District of New Hampshire on one count of conspiring to transport an individual in interstate commerce for prostitution, announced Acting U.S. Attorney Donald Feith. The Court imposed the statutory maximum sentence of 5 years’ imprisonment, to be followed by a period of supervised release.
In February of 2014, Homeland Security Investigations, Manchester, New Hampshire, and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a minor female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution, including Ayuso.
The case was investigated by the Manchester, New Hampshire Homeland Security Investigations and the Salem Police Department, in conjunction with the police departments of Boston, Massachusetts and Manchester, New Hampshire, as well as the New Hampshire Internet Crimes Against Children Task Force (NH ICAC). This case is being prosecuted by Assistant United States Attorneys Nick Abramson and Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
District Man Sentenced to 22 Years in Prison for Production of Child Pornography and First-Degree Sexual Abuse of GirlRead the Press Release
WASHINGTON – Rolando de la Rocha, 42, of Washington, D.C., was sentenced today to 22 years in prison on one charge of production of child pornography and another charge of first-degree child sexual abuse, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
De la Rocha pled guilty in August 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, de la Rocha will be placed on 25 years of supervised release. He also will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, de la Rocha was the former boyfriend of the girl’s mother, and lived with the family in Northwest Washington until January 2014. In May of 2015, the girl’s mother called the Metropolitan Police Department to report that she had discovered a recording in which de la Rocha is seen sexually assaulting her child. A subsequent examination of de la Rocha’s cellphone led to the discovery of videos depicting two such incidents.
A warrant was issued for the defendant’s arrest, and de la Rocha was arrested on May 29, 2015. He admitted to police that he produced the recordings and said that he had set up an iPad to film the sexual acts in the girl’s room without her knowledge. The girl told police about several incidents that took place when she was 12 or 13, and that ended in 2013. She expressed a fear of talking to police but ultimately agreed to an interview about the defendant’s conduct.
De la Rocha has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department, including those from the Third District and the Youth Investigations Division. They also expressed appreciation for the work of the FBI’s Child Exploitation Task Force. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joyce Arthur and Criminal Investigator John Marsh. Finally, they commended the work of Assistant U.S. Attorney Andrea L. Hertzfeld, who prosecuted the case.
District Man Pleads Guilty to Murder in Shooting in Southeast WashingtonRead the Press Release
WASHINGTON - Jamil Betts, 24, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for fatally shooting a man earlier this year in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Betts pled guilty in the Superior Court of the District of Columbia to the murder charge as well as to a charge of assault with a dangerous weapon stemming from a separate, unrelated attack. The Honorable Michael Ryan scheduled sentencing for Feb. 5, 2016. The plea, which is contingent upon the Court’s approval, calls for a prison term of 20 years on both charges.
According to the government’s evidence, the murder victim, Andre McConnell, 26, was with friends in the 3100 block of Buena Vista Terrace SE on April 27, 2015. At around 8:30 that night, Mr. McConnell engaged in a brief verbal argument with an unidentified individual. Shortly thereafter, Betts approached Mr. McConnell and the group with whom Mr. McConnell was gathered. Betts took out a gun, aimed and fired it at Mr. McConnell, and struck Mr. McConnell twice in the lower back. A second individual also was hit with one gunshot wound to the leg. Mr. McConnell was transported to Prince George’s Hospital Center, where he was pronounced dead a short time later.
In the second case, the government’s evidence showed, on the afternoon of May 29, 2015, Betts and another individual approached a woman and her daughter at gunpoint in the area of the 3400 block of A Street SE. Betts, holding the gun, and the other individual attempted to force their way into the woman’s apartment, which was occupied by other individuals. After realizing that the victims called 911, Betts and the other individual attempted to leave the area by car. In the process of driving away from the scene, Betts, who was seated in the front passenger side of the vehicle, aimed his gun at one of the victims outside the apartment building and fired one shot, nearly hitting the victim.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Sixth and Seventh Police District of the Metropolitan Police Department (MPD). He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Clark and Christina Principe; Victim/Witness Services Coordinator David Foster; Supervisor Security Specialist Michael Hailey; Victim/Witness Program Specialists Lesley Slade, Laverne Forest, and Wanda Queen; and Paralegal Specialist Lashone Samuels. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Julianne Johnston and Sumit Mallick, who investigated and prosecuted the assault case, and Assistant U.S. Attorneys Richard DiZinno and Robert Eckert, who investigated and prosecuted the homicide case.
Columbus Man Sentenced on Marijuana, Money Laundering, Gun ChargesRead the Press Release
COLUMBUS, Ohio – Richard Spriggs, Sr., 47, of Columbus, was sentenced in U.S. District Court to 46 months in prison for conspiring to possess with intent to distribute marijuana, conspiring to commit money laundering and for the unlawful possession of a firearm. In addition, Spriggs was ordered to forfeit approximately $86,000 in cash, firearms and ammunition. Spriggs previously pleaded guilty to these charges on August 27, 2015.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Agency (DEA), Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Columbus Police Chief Kim Jacobs, announced the sentence handed down today by Senior U.S. District Judge George C. Smith.
According to court documents, Spriggs and others in an organization were responsible for distributing multiple kilograms of marijuana by use of Ohio residences, business fronts, commercial freight, semi tractor-trailers and vehicles. Spriggs and others transported in excess of 100 kilograms of marijuana to various places in Columbus, Ohio from suppliers in Houston, Texas. The drug shipments were disguised as hair care products, beauty supplies and whole grain rice.
During the execution of a search warrant, Spriggs and others were observed removing numerous packages, which contained approximately 500 kilograms of marijuana, that were concealed inside approximately 12-15 pool tables.
Spriggs used the drug proceeds to purchase assets and to fund bank accounts through the use of nominees. Spriggs purchased a residence by paying cash. In addition, Spriggs used pre-paid debit cards which he funded in another person’s name as his personal credit card and used them to purchase air travel, rent vehicles and pay for cellular telephone bills.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Cocoa Man Arrested for Making Threats to Destroy Courthouse Building Using an Explosive DeviceRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the arrest and filing of a criminal complaint charging Oran Orval Dawsey (37, Cocoa) with making threats to destroy a building using an explosive device. If convicted, he faces a maximum penalty of 10 years in federal prison.
According to the criminal complaint, on the morning of September 22, 2015, an individual made a telephone call to the Moore Justice Center, a state court building in Brevard County, and stated that a bomb was located inside the courthouse. In response, the building was evacuated and bomb squad officers from the Brevard County Sheriff’s Office searched the building for an explosive device. Although no such explosive were located, all official business in the court building was suspended.
Investigators later determined that, on the morning the bomb threat was made, Dawsey failed to appear for a scheduled court appearance at the Moore Justice Center in a criminal case for which he was facing a possible prison sentence. Dawsey was later identified as the person who made the bomb threat and, on October 1, 2015, he confessed to investigators that he had called in the bomb threat in order to get his court date postponed.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force and the Brevard County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Andrew C. Searle.
California Man Pleads Guilty to Federal Drug and Firearm ViolationsRead the Press Release
BOISE – Ronald Eugene Bohm, 50, from California, pleaded guilty today in United States District Court to possession of methamphetamine with intent to distribute and possession of a machinegun, U.S. Attorney Wendy J. Olson announced. Bohm was indicted by a federal grand jury on August 11, 2015.
According to the plea agreement, on July 26, 2015, Meridian Police Officers searched Bohm’s residence in Meridian, Idaho. In the master bedroom closet, officers found approximately 63 grams of methamphetamine and $1,122. Officers also located a digital scale in the master bedroom. Police officers found numerous firearms and firearm components in the residence including a drop in auto sear, which is a combination of parts designed to convert a semiautomatic firearm into a fully automatic machine gun. Other firearms located in the residence include two AR-15 semiautomatic rifles, five AR-15 receivers, a .22 caliber rifle with a shortened barrel, and a 7.62X54 millimeter rifle with a shortened barrel. The government is seeking forfeiture of the firearms and firearm components.
The charge of possession of methamphetamine with intent to distribute is punishable by a minimum term of imprisonment of five years and up to forty years, a maximum fine of $5 million, and a minimum term of four years supervised release. Bohm’s possession of an unregistered machinegun is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release. Bohm is scheduled to be sentenced on February 11, 2016, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. The co-defendant, Constance Bohm, is scheduled for trial on January 25, 2016.
This case was investigated by the Meridian Police Department and the Treasure Valley Metro Violent Crime Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Buhl Man Sentenced to More Than Fifteen Years in Federal Prison for Distributing MethamphetamineRead the Press Release
BOISE – Alejandro Vela, 33 of Buhl, Idaho, was sentenced today to 188 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Vela to serve four years of supervised release following his release from prison. Vela pleaded guilty on August 6, 2015.
According to the plea agreement, Alejandro Vela sold methamphetamine to an informant on July 31, 2014. His wife and codefendant, Esmirna Vela, was present during the transaction. On September 3, 2015, Alejandro Vela agreed to distribute additional methamphetamine to the informant; however, Esmirna Vela showed up instead and sold an ounce of methamphetamine to the informant. Esmirna Vela pleaded guilty and was sentenced on November 20, 2015, by U.S. District Court Judge Dee V. Benson to 13 months in prison for the offense. She was sentenced to three years of supervised release following her term of imprisonment, but she will likely be deported.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Canyon County Prosecutor’s Office, the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bradford County Man Charged with Conspiracy to Distribute Bath SaltsRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a one-count information was filed yesterday in the U.S. District Court for the Middle District of Pennsylvania charging Mark Marcoccia of Towanda, Pennsylvania with conspiracy to distribute bath salts.
According to United States Attorney Peter Smith, the information alleges that Marcoccia conspired with Justin Johnson to distribute quantities of the controlled substance analogue pyrrolidinopentiophenone (α-pvp), also known as bath salts. The information alleges that Marcoccia and Johnson distributed bath salts and kept and concealed proceeds from the sales of that substance to purchase additional quantities of bath salts for distribution and sale and to purchase real estate and a boat.
Pursuant to the terms of the plea agreement filed with the information, Marcoccia, age 51, has agreed to plead guilty to the criminal charge and also agreed to the criminal forfeiture of the cash sum of $100,000 reflecting the amount of his interest in property derived from the distribution of bath salts. Johnson previously entered a guilty plea to the charge of conspiracy to distribute bath salts on February 10, 2015 and is awaiting sentencing before U.S. District Judge Matthew W. Brann.
The federal investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Wyoming County District Attorney’s Office. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Boise Man Sentenced for Possession and Distribution of Meth and Unlawful Possession of a FirearmRead the Press Release
BOISE – Alexander Christian Gruber, 20, of Boise, Idaho, was sentenced today to 36 months in prison for possession and distribution of methamphetamine, and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Gruber to serve three years of supervised release. Gruber pleaded guilty on September 15, 2015.
According to court proceedings, Gruber was arrested in Boise, Idaho, on January 20, 2015. Boise police officers arrested Gruber after he sold Dilaudid pills and a sawed-off shotgun to an undercover agent. Earlier in January 2015, Gruber offered to sell cocaine to a confidential informant, but it turned out to be methamphetamine. At the time Gruber possessed and sold the short-barrel shotgun, he was a prohibited as a convicted felon from possessing any firearm. The weapon made from the shotgun was not registered as required. Gruber admitted he possessed the methamphetamine with intent to distribute it. He also admitted that he sold the firearm, and possessed other firearms.
“These penalties handed down by the federal court for possession of meth with intent to distribute it and possession of a firearm by a convicted felon are appropriate despite the young age of the defendant,” said Olson. “While special consideration is given by the courts to young defendants like Gruber, the penalties are appropriate because of society’s concerns about persons who traffic in harmful drugs and use firearms.”
The case was investigated by the Boise Police Department and the Bureau of Alcohol, Tobacco and Firearms.
Bloomington Man Sentenced to More Than Nine Years in Prison for Conspiring to Use Stolen Identities to Defraud the United States for Millions of DollarsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of AYOTOMIDE AJIFOWOBAJE, 29, to 110 months in prison for using the stolen identities of more than 450 victims to file false tax returns throughout the United States. AJIFOWOBAJE pleaded guilty on July 24, 2015, to conspiracy to defraud the United States and aggravated identity theft. He was sentenced yesterday before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
“Ayotomide Ajifowobaje’s case highlights how seriously IRS Criminal Investigation and the United States Attorney's Office take the issue of identity theft,” said Special Agent in Charge Shea Jones of the St. Paul Field Office IRS Criminal Investigation. “We will continue to investigate those who prey on innocent taxpayers to steal their identities and file false tax returns. IRS Criminal Investigation is committed to bringing these perpetrators to justice.”
According to the defendant’s guilty plea and documents filed in court, between at least May 20, 2014, and February 17, 2015, AJIFOWOBAJE purchased stolen personal identifying information, including names, addresses, dates of birth, and social security numbers, of hundreds of individuals. Using the stolen identities of these victims, the defendant and his co-conspirators “washed” stolen identities to determine whether a legitimate tax return had already been filed by the victim taxpayer. If none had already been filed in the victim’s name, AJIFOWOBAJE would create and electronically file a fraudulent tax return using the victim’s correct identity information but containing false W-2 information, withholding amounts and other fraudulent information. AJIFOWOBAJE then set up fake email addresses to track the status of the return and expected refund.
According to the defendant’s guilty plea and documents filed in court, for the purpose of collecting the refunds from the IRS, AJIFOWOBAJE purchased hundreds of debit cards and activated them using the same stolen identities that he used to file false tax returns. In an effort to conceal his identity from law enforcement, AJIFOWOBAJE and his co-conspirators filed some of the false tax returns from hotels using free Wi-Fi.
This case was the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case was prosecuted by Assistant U.S. Attorney Michelle E. Jones.
Defendant Information:
AYOTOMIDE AJIFOWOBAJE, 29
Bloomington, Minn.
Convicted:
-
Conspiracy to defraud the United States, one count
- Aggravated identity theft, one count
Sentenced:
-
110 months in prison
-
Three years supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
-
Berwick Man Sentenced to Two Years for Possessing Child PornographyRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Peter Anderson, 56, of Berwick, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to two years in prison and five of supervised release for possessing child pornography. He was also ordered to pay $5,000 to each of three victims who sought restitution. He pleaded guilty on April 10, 2015.
According to court documents, on April 23, 2014, law enforcement officers executed a search warrant at Anderson’s residence and seized laptops, USB drives and DVD discs containing 105 movie or video files and 430 image files depicting child pornography. Of those files, the National Center for Missing and Exploited Children identified 194 images and 33 videos from 59 series depicting known minor victims. Anderson admitted that he downloaded child pornography for several years for sexual gratification and shared it online.
In pronouncing sentence, Chief Judge Torresen told Anderson that his crime was serious because the production of child pornography ruins the lives of innocent children. The victims described how the knowledge that people took pleasure from viewing pictures of their torture was hurtful. In addition, Chief Judge Torresen noted that the mere possession of child pornography contributes to the exploitation and rape of children by creating demand for the exploitive images.
The investigation was conducted by the Federal Bureau of Investigation, with assistance from the Maine State Police Computer Crimes Unit.
Beckley man sentenced on Federal heroin chargeRead the Press Release
CHARLESTON, W.Va. – A Beckley man was sentenced today in federal court in Charleston, West Virginia, to 10 years in federal prison for distribution of heroin, announced United States Attorney Booth Goodwin. Rhinelander Hernandez, 37, of Beckley, previously pleaded guilty in August 2015 to the federal drug charge.
Hernandez admitted that on December 2, 2014, he sold heroin to a confidential informant cooperating with law enforcement. The drug deal took place at the Go-Mart parking lot off South Eisenhower Drive in Beckley.
The case was investigated by the Beckley/Raleigh County Drug and Violent Crime Unit, and 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 United States 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.
-
Follow us on Twitter: SDWVNews
-
Barnstead Man Sentenced to Two Years on Probation for Social Security FraudRead the Press Release
CONCORD, N.H. – Craig Luksza, 34, of Barnstead, who pleaded guilty to one count of Social Security Fraud on June 9, 2015, was sentenced today to two years’ probation and was ordered to make full restitution to the Social Security Administration, announced Acting United States Attorney Donald Feith.
From July 2010 through July 2014, Luksza fraudulently received Social Security disability benefits. These benefits are paid to individuals who have a severe impairment that prevents them from performing their past work or any other substantial gainful work that exists in the national economy. Shortly after he applied for disability benefits in December 2009, Luksza returned to work full-time at a construction company. His income from this job would have rendered him ineligible to receive any disability benefits, but Luksza did not report his work activity to the Social Security Administration (SSA) as required. Instead, in December 2013, he falsely told SSA that he had not worked since December 2008 and, specifically, that he had not worked at a construction company. As a result of his concealment, Luksza received $71,180.50 in disability benefits that he would not have received if Social Security had been aware of his actual work activity and income.
Luksza was sentenced by United States District Court Judge Steven J. McAuliffe.
The case was investigated by the Social Security Administration’s Office of the Inspector General and prosecuted by Special Assistant United States Attorney Karen Burzycki.
Armed Home Invader Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Reginald Martez Robinson, 35, of Saraland, was sentenced on December 1, 2015, for his role in several home invasions and kidnappings during 2011. Robinson was indicted on the federal charges in 2014, and he entered a guilty plea to two of the charges, conspiracy to use a firearm in the commission of a crime of violence and kidnapping, in October of last year.
United States District Court Judge William H. Steele imposed a sentence of 184 months on each count, and ordered that they run concurrently. He also ordered that Robinson will commence a five-year term of supervised release when he is discharged from incarceration. As conditions of his supervision, Robinson will be subject to testing and treatment for drug abuse. Judge Steele also ordered that Robinson pay $200 in special mandatory assessments, but no fine was imposed.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Appleton Man Indicted on Child Pornography ChargesRead the Press Release
Acting United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin, announced that on December 1, 2015, a federal grand jury returned a two-count indictment against Larry L. Turk (age: 68) of Appleton, Wisconsin, charging him with one count of distributing child pornography in violation of Title 18, United States Code, Section 2252A (a)(2) and one count of possessing child pornography in violation of Title, 18 United States Code, Section 2252A (a)(5)(B).
If convicted of the distribution offense, the defendant faces a sentence of between 5 and 20 years imprisonment, a $250,000.00 fine, and between five years and a lifetime of supervised release. Conviction on the possession offense carries penalties of up to ten years imprisonment, a $250,000.00 fine, and between five years and a lifetime of supervised release.
According to the indictment, Turk knowingly used a computer to distribute and possess pornographic videos of children, some as young as three years old, engaged in sexually explicit behavior with adults.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, the Outagamie County Sheriff’s Department, and the Appleton Police Department. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
# # # # #
Anaconda Man Sentenced to 33 Months in Prison for Possession of a Firearm While Under IndictmentRead the Press Release
MISSOULA – A federal judge sentenced Douglas James Gosnell, 62, of Anaconda, Montana, to 33 months in prison today for receipt of a firearm while under indictment. Chief U.S. District Court Judge Dana Christensen also sentenced Gosnell to three years of supervised release. The sentence follows Gosnell’s August 11, 2015, guilty plea and will run concurrently with the remainder of a state sentence that Gosnell is serving.
Assistant United States Attorney Paulette Stewart stated in court documents that on May 18, 2013, Gosnell obtained a .357 caliber revolver while he was subject to prosecution for violation of a protective order in a state court action. This instance is one of many in Gosnell’s criminal history in which he illegally possessed or used a firearm. According the United States’ Sentencing Memo, Gosnell had multiple convictions over a period of nearly forty years, for a number of crimes including partner and family member assault, automobile theft, and four separate weapons possession offenses.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anaconda-Deer Lodge County Law Enforcement Agency. Gosnell will have to serve at least 85% of his sentence before he is eligible for parole.
Allen, Texas, Man Sentenced to 84 Months in Federal Prison and Ordered to Pay More Than $8.7 Million in Restitution for Running an Oil and Gas Investment Fraud SchemeRead the Press Release
DALLAS — Brian J. Polito of Allen, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 84 months in federal prison and ordered to pay $8,768,351 in restitution following his guilty plea in May 2015 to an information charging one count of mail fraud stemming from his operation of an oil and gas investment fraud scheme. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Polito must surrender to the Bureau of Prisons on January 6, 2016.
Polito was the sole owner/operator of GC Resources, LLC, an oil and gas investment firm that was located on Preston Road in Dallas. Beginning in December 2011, Polito defrauded investors by selling interests in oil and gas projects in which GC Resources had no ownership or interest.
As part of the scheme, Polito researched “Company A” on the Texas Railroad Commission’s website and determined that Company A’s wells were producing. Polito then identified Company A’s drilling permits for wells that were going to be drilled in the future. Through GC Resources, Polito began soliciting investments into Company A’s projects even though GC Resources had no control or interest in the wells.
To convince investors to invest with GC Resources, Polito told investors that GC Resources owned the oil and gas drilling leases, when, in fact, it did not have any ownership or interest in the lease. Polito also misrepresented that GC Resources had an interest in Company A’s wells, when in reality, GC Resources had zero interest in Company A’s wells. Polito informed actual and potential investors that GC Resources had a contract with Company A, which was false. Polito even supplied investors with a document purporting to be a contract between Company A and GC Resources, but that document was fraudulent, as Polito had created it using Photoshop to forge signatures of Company A employees.
Polito paid investors of Company A projects with other fraudulently obtained funds in the manner of a Ponzi scheme.
Polito solicited investments by making cold calls to potential investors and sending prospective investors a packet of materials that included the forged Company Agreement and other documents. Polito deposited investors’ money in a GC Resources bank account to which he had sole control. Over the course of the scheme, Polito raised multiple millions from victim investors, all of which was used to fund a lavish lifestyle.
When investors asked to see the well site, Polito, or a salesperson working for him, would take investors to the actual well site, which was under the control of Company A, in an effort to further deceive investors and prolong his scheme. Polito even obtained production records from the Railroad Commission’s website for Company A wells and provided that information to investors, even though neither Polito or GC Resources had any interest whatsoever in Company A’s wells.
According to evidence introduced at sentencing, Polito spent a significant portion of the investors’ money on luxury automobiles. At one time, Polito had the following vehicles: (1) a 2014 50th Anniversary Aventador Lamborghini Coupe; (2) a 2014 50th Anniversary Lamborghini Gallardo; (3) a 2014 Gallardo Squadra Lamborghini Corse; (4) a 2014 Porsche Panamera S E-Hybrid; (5) a 2014 Porsche 911 Turbo S; (6) a 2014 Porsche Cayenne Turbo S; (7) a 2014 Jeep Grand Cherokee SRT8; (8) a 2014 Mercedes-Benz SLS AMG Black Series; (9) a 2014 Nissan GR-R; (10) a 2014 McLaren 12C Spider; and (12) a 2014 Ferrari F12.
The government has engaged in significant efforts to secure assets for potential restitution to victims. Among other things, the government has recovered $664,000 from the liquidation of the net equity in the following vehicles: a 2014 Roll Royce Wraith, a 2015 McLaren 650S Coupe, a 2014 Lamborghini, a Aventador Anniversary Coupe, a 2015 BMW M4 Coupe, a 2014 Mercedes E63 Wagon, a 2014 Ferrari 458 Speciale, a 2014 Jeep Cherokee SRT8, and one bank account subject to the entry of restitution and/or forfeiture orders. In addition, as detailed in the Bill of Particulars filed with the Court, the government seized and will forfeit 64 luxury watches from various manufacturers, including Zenith, Tag Heuer, Rolex, Hyt, Hublot Geneve, Lumirror Panerai, Breitling, among others. The government also coordinated the sale of Polito’s residence in Allen, Texas, recovering an additional $656,923.89 in net proceeds.
The Securities and Exchange Commission (SEC) filed suit against Polito and GC Resources, LLC in April 2015 for defrauding investors through the sale of interests in oil and gas wells the company never owned. A partial judgment has been issued in that case that permanently enjoins him from further violations of the securities laws and permanently bars him from participating in the purchase, offer, or sale of any oil-and-gas related securities offering.
The FBI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch and Melissa A. Childs prosecuted.
# # #
1 December 2015
Victoria Man Gets 30 Years for Sexual Exploitation of a ChildRead the Press Release
VICTORIA, Texas – A 31-year-old Victoria man has been ordered to federal prison following his two convictions of production of child pornography, announced U.S. Attorney Kenneth Magidson. Mathew Kelly Millegan pleaded guilty Aug. 3, 2015.
Today, Senior U.S. District Judge John D. Rainey sentenced Millegan to 360 months in prison on each count to run concurrently. The sentence will be immediately followed by a 25-year-term of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender. In handing down the sentence, Judge Rainey noted how disturbing the case was, “probably one of the worst that I have ever faced,” he said.
Millegan came to the attention of law enforcement after authorities learned of the sexual assault of two young children, aged 10 and 11. The children were identified as relatives of Millegan and confirmed the abuse. Millegan was identified as the perpetrator and admitted to sexual assaulting the two children and taking sexual explicit photographs of the incident.
Authorities executed a search warrant at Millegan’s residence and seized several electronic media storage devices. Forensic examination led to the discovery of several photographs of the children involved in sexual explicit conduct.
Millegan was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
Homeland Security Investigations and the Victoria County Sherriff’s Office investigated with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Valentin Valdés-Ayala Sentenced to 134 Months in Prison for Bankruptcy FraudRead the Press Release
SAN JUAN, Puerto Rico – Yesterday evening, Valentín Valdés-Ayala was sentenced to 134 months (11 years and two months) in prison by United States District Court Chief Judge Aida Delgado-Colón. On April 16, 2015, Valdés-Ayala was found guilty of twenty-nine counts of bankruptcy fraud, falsification of bankruptcy records, wire fraud, aggravated identity theft and contempt of court, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations, in collaboration with the US Trustee, was in charge of the investigation.
During the course of the trial the evidence proved that the purpose of the fraudulent scheme was to obtain financial gain and to hinder, delay, and obstruct collection efforts by the Commonwealth of Puerto Rico, through ASUME, and/or by child support pension beneficiaries against child support debtors who had failed to comply with their child support obligations.
Valdés-Ayala incorporated a non-profit organization called Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic] with the alleged purpose of defending the principles and dignity of every father convicted for failure to make child support payments and obtaining and promoting the release of all inmates as well as defending father-child relationships. He also created Tears in Prison, Inc., a for-profit corporation that was incorporated with the stated purpose of preparing bankruptcy petitions.
The defendant, through Fundacion Lucha Pro-Padres Convictos por Pencion, Corp. [sic], solicited individuals who were incarcerated or facing incarceration for failure to comply with their child support payments, promising those individuals that - in exchange for fees paid to him and/or his entity - they would be released from prison and/or avoid imprisonment without first having to make any payments towards their child support debt. Valdés-Ayala at times also promised that he would obtain the elimination and/or reduction of the underlying child support debt.
The defendant would then file or cause to be filed Chapter 13 bankruptcy petitions which allowed the debtors to be released from prison without first having to pay overdue child support to ASUME due to the operation of bankruptcy’s automatic stay against collection actions.
With respect to his fees, Valdés-Ayala indicated to his prospective clients that his fee included legal representation (even though he is not a lawyer), filing fees, and a term membership in his entity, which would guarantee them legal representation in their child support case throughout the duration of their term membership. Upon receipt of payment the defendant would provide a receipt stating that the payment was a donation.
The defendant prepared and filed and/or caused to be filed Chapter 13 bankruptcy petitions in the clients’ names. The Chapter 13 petitions were not filed for the purpose of having the clients engage Chapter 13 reorganization of their debts, but for the improper purpose of using the United States bankruptcy laws to collect fees by promising relief from incarceration.
As part of the scheme to defraud devised by Valdés-Ayala, he assisted hundreds of debtors with the filing of false and fraudulent Chapter 13 bankruptcy petitions. From August 2010, up to November 2013, 412 applications for credit counseling certificates were processed through Valdés-Ayala’s account with the Credit Advisors Foundation. These certificates were then included along with the bankruptcy petition.
The case was prosecuted by Assistant U.S. Attorneys Mariana Bauzá and John A. Mathews II.
U.S. Attorney Booth Goodwin launches PSAs, website, and smartphone app to fight addictionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin launched a series of public service announcements (PSAs), a website, and a new smartphone app today to highlight additional resources in the fight against drug addiction in West Virginia.
“While we continue to tackle the supply of these drugs coming into our community, we have to do something about the demand. We know this is an epidemic, but unlike epidemics where you can tell someone is sick just by looking at them, we might not notice or be aware of people who are affected. They look like you and me,” said U.S. Attorney Goodwin at a press conference today. “Unlike those wearing all red featured in the PSAs, an addict is probably not dressed head to toe in red, so they are not easy to spot. Chances are that here in West Virginia, you have encountered not just one or two, but many each day who are suffering from addiction.”
The PSAs focus attention on the challenge of spotting someone suffering from addiction, and provide resources for people to take action. The PSAs urge the friends and family of those struggling with addiction, as well as addicts themselves, to connect with appropriate local services. Viewers of the PSAs are encouraged to download The Call WV app, visit makethecallwv.com, or call the West Virginia state hotline at 1-844-HELP4WV (1-844-435-7498).
“One of the most frequent questions we hear is, when someone is ready to seek help for addiction or the addiction of a loved one or friend, where do they turn? One recent positive development is the state hotline. Another development we are here to introduce today is the launch of a new website and smartphone app to permit folks struggling with addiction to quickly and easily find resources in their immediate area. The website is makethecallwv.com and the app is known as The Call WV,” announced Goodwin. “The website is up and the app is available right now for Apple and Android smartphones. It uses the location function in your phone to show you the resources that exist in your immediate area. We are also working to integrate it with the state HELP4WV hotline.”
The Call WV app is a one-stop-shop for addiction recovery resources at the state and local level. The map feature of the app can provide assistance finding the nearest place to get help with addiction. The app also compiles information on facilities and organizations that can help someone find recovery housing, residential and non-residential treatment options, meetings and events in the local area, and resources available to prevent drug use in the first place. The purpose of the app is to empower individuals to get the answers they need about how to fight addiction, for themselves and for their loved ones, in their moments of need.
These initiatives were made possible through local partnerships in the public and private sectors. The U.S. Attorney’s Office for the Southern District of West Virginia partnered with the Huntington Police Department to complete these projects. Trifecta Productions, a Huntington business, created the PSAs, and Syntech Creative, also a Huntington business, built and will continue to update the smartphone app. The Huntington Mayor’s Office of Drug Control Policy also provided essential support for these initiatives.
The PSAs will be available to view at makethecallwv.com, and will be running on local television stations throughout the media markets of Southern West Virginia. The Call WV app is available for free download at the iTunes Store or on Google Play.
The PSAs and The Call WV app are part of a comprehensive strategy 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 law enforcement and public and private sector partners, is committed to aggressively pursuing and prosecuting those responsible for the spread of opiate painkillers and heroin, and also to providing resources to those impacted by drug addiction in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Two New York Men Sentenced to Prison for Roles in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – Two Staten Island, New York, men were sentenced today for their roles in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.
Khawaja Ikram, 43, and Mohammad Khan, 51, were sentenced to 25 and 12 months in prison, respectively. Ikram previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud. Khan previously pleaded guilty before U.S. Magistrate Judge Madeline C. Arleo to an information charging him with conspiracy to defraud the United States. Judge Thompson imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:Ikram and Khan were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and finally, run up large loans.
The scope of the criminal fraud enterprise required Ikram, Khan and other conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Ikram and Khan admitted they helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. They also admitted they knew the cards would be used fraudulently at businesses, with Khan admitting to personally using the cards.In addition to the prison terms, Judge Thompson ordered Ikram and Khan to serve five and three years of supervised release, respectively. Ikram was also fined $10,000.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors, under the direction of Inspector in Charge Maria L. Kelokates; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli, for the investigation leading to today’s sentencing. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel:Ikram: Neil G. Duffy III Esq., Union, New Jersey
Khan: Stephan Mahler Esq., Kew Gardens, New York
Silver Spring Nightclub Owner Sentenced for Drug TraffickingRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Jason Miskiri, age 40, of Silver Spring, Maryland today to two years in prison followed by three years of supervised release for conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana. Judge Titus also entered an order that Miskiri forfeit all of his interest in Society Lounge.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, Miskiri obtained marijuana from several sources for distribution in Maryland. Miskiri was arrested in March 2009 in Texas after purchasing 209 pounds of marijuana that he intended to transport to Maryland.
Miskiri was also the largest customer of a drug trafficking organization headed by Garfield Mullings (Mullings DTO) that shipped large quantities of marijuana from California to Maryland. On numerous occasions from 2010 to 2012, Miskiri gave money to the Mullings DTO to buy marijuana in California and Arizona, which was shipped using commercial shipping companies to Miskiri in Maryland. He also received marijuana on consignment, and paid for it once it was sold. Initially, some of the shipments were sent to Island Flavors Restaurant in Laurel, Maryland, which Miskiri owned and operated. From August 31, 2010 to May 20, 2011, 8,690 pounds of freight, including marijuana, was delivered to the restaurant. After May 20, 2011, Miskiri continued to pick up large quantities of marijuana from the Mullings DTO at other locations.
In 2012, Miskiri obtained marijuana from other Texas sources with whom he met in Prince Georges County, Maryland.
Miskiri used the drug proceeds to open the Society Lounge, an upscale nightclub located on Georgia Avenue in Silver Spring, Maryland.
Miskiri did not file a personal tax return for any of the years in which he was engaged in the drug trafficking activity.
During his participation in the drug conspiracy, Miskiri was found to be responsible for the distribution of between 3,000 and 10,000 kilograms of marijuana.
In a separate case, Garfield Mullings, age 41, of Hyattsville, Maryland, and five others previously pleaded guilty to conspiring to distribute 100 kilograms or more of marijuana. U.S. District Judge J. Frederick Motz sentenced Mullings on May 29, 2014 to five years in prison and entered an order that Mullings forfeit $12,190,000.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, DEA and the Maryland State Police for their work in the investigation, and thanked the Houston, Texas Police Department and the Texas Department of Public Safety for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Matthew C. Sullivan and Evan T. Shea, who prosecuted the case.