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Wednesday 14 October 2015
Myers Named Interim US AttorneyRead the Press Release
Acting U.S. Attorney Chris Myers Appointed Interim U.S. Attorney for North Dakota by Attorney General of the United States
Fargo North graduate to lead Federal prosecutors in North Dakota. Effective October 9, 2015, the Honorable Loretta Lynch, Attorney General of the United States, appointed Christopher C. Myers Interim United States Attorney for the District of North Dakota pursuant to 28 United States Code Section 546.
Myers is a graduate of Fargo North High School ('87) and North Dakota State University ('92). He earned his law degree and Master of Public Administration from Drake University in 1995.
Myers has been with the U.S. Attorney's office nearly 14 years. Since 2013 he has served as the First Assistant U.S. Attorney until becoming Acting U.S. Attorney on March 13, 2015. Prior to becoming an Assistant U.S. Attorney in 2002, Myers served as the Chief Assistant Clay County Attorney from 1998-2002. He has also served as an Assistant Cass County States Attorney and a Special Agent with the North Dakota Bureau of Criminal Investigation.
Procedurally, after 120 days Chief United States District Judge Ralph Erickson will determine if the appointment should continue. If approved, Myers will serve as U.S. Attorney until the President of the United States nominates a U.S. Attorney for North Dakota and the United States Senate confirms the nominee pursuant to 28 United States Code Section 541.
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Monongahela Man Unlawfully Received Social Security BenefitsRead the Press Release
PITTSBURGH - A resident of Washington County, Pennsylvania, pleaded guilty in federal court to one count of theft of government property, United States Attorney David J. Hickton announced today.
Gregory Kavalec, 69, of Monongahela, Pa., pleaded guilty to one count before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that from on or about Oct. 3, 2013, to on or about Sept. 3, 2014, Kavalec unlawfully received property of the United States, that is, OASDI Social Security benefits in the amount of approximately $17,985.
Judge Cercone scheduled sentencing for Feb. 17, 2016, at 10 a.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Judge continued the defendant on bond.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Social Security Administration-Office of Inspector General conducted the investigation leading to the indictment in this case.
Mexican National Sentenced to 25 Months in Prison for Reentry After DeportationRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Carlos Salvador Fernandez, 47, to 25 months in prison and three years of supervised release for reentering the United States after having been deported, United States Attorney Ronald W. Sharpe announced. On June 10, 2015, Fernandez pleaded guilty to reentry after deportation.
Court records show that on April 20, 2015, Fernandez presented himself for inspection at the Cyril E. King International Airport on St. Thomas prior to boarding a flight to Washington, D.C. When questioned, Fernandez claimed to be a United States permanent resident. Fernandez was referred for secondary inspection at which time he admitted that he was previously deported from the United States in February, 2006. The U.S. Secretary of Homeland Security did not give permission for him to reenter the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Nelson L. Jones.
Maryland Woman Guilty of Stealing $426,000 from EmployerRead the Press Release
ALEXANDRIA, Va. – Jennifer Xanten, 51, of Frederick, Maryland, pleaded guilty today to charges of mail fraud relating to her stealing more than 500 checks totaling approximately $426,000 out of her employer’s incoming mail.
In a statement of facts filed with the plea agreement, Xanten, an employee of a rehabilitation center in Rockville, Maryland, admitted to stealing the checks out of the center’s incoming mail from February 2014 to July 2015. To effectuate her scheme, Xanten, who was responsible for mailing out the companies’ invoices, would send out invoices to collect payment for services the center performed. One such company who received invoices was located in Chantilly. She would then intercept the incoming check payments and deposit the checks into her personal account without authorization. Xanten, who was responsible for inputting entries into the bookkeeping records, falsified entries related to the stolen checks in order to conceal her scheme.
Xanten faces a maximum penalty of 20 years in prison when sentenced on Jan. 28, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris. Assistant U.S. Attorney Jamar K. Walker is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15cr286.
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Man Who Pointed Laser at Tampa Police Department Helicopter Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Jeremy Wayne Sumpter (31, Garland, TX) to 12 months and one day in federal prison for knowingly aiming a laser at an aircraft. He pleaded guilty on March 24, 2015.
According to court documents, on February 14, 2014, aviation officers with the Tampa Police Department (TPD) were flying in a Bell 407 helicopter during aerial patrol when they observed a green light illuminate the cockpit. The officers observed the laser hit the helicopter four times. They were soon able to locate the suspect who had been standing in the middle of the roadway. As the officers turned the aircraft toward the suspect, he began to run into his residence.
TPD officers made contact with Sumpter at his front door, and observed a broken laser pointer on his coffee table. Sumpter admitted that he had been outside with a laser pointer and that there had been a helicopter in the area where he had been pointing the laser. He also stated that he had destroyed that laser because he thought he was in trouble. Several other lasers were discovered in the residence.
On Feb. 14, 2012, President Barack Obama signed the FAA Modernization and Reform Act, which modernizes the nation's aviation system. This Act establishes a new criminal offense for aiming the beam of a laser pointer at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft. The statute was enacted in response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams.
This case was investigated by Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Man Sentenced to 560 Months in Prison for Robbery and Murder of Two Department of Natural Resources Rangers in March of 2010Read the Press Release
SAN JUAN, Puerto Rico – Jonathan Ortiz-Torres was sentenced to 560 months in prison and five years of supervised release for interference of commerce by robbery, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. Ortiz-Torres pled guilty on May 27, 2014.
On February 9, 2011, Jonathan Ortiz-Torres was charged, along with Ángel Santana-Espinet and Leroy Santana-Rosado, with violations of Title 18, United States Code, Section 1951(b)(3) (interference of commerce by robbery); and Title 18, United States Code, Sections 922(j), 924(a)(2), and 2 (possession of a stolen firearm). Ortiz-Torres and Santana-Espinet were also charged with violations of Title 18, United States Code, Sections 924(c)(1)(A), 924 (j) and 2 (possession and use of a stolen firearm).
According to the superseding indictment, on March 23, 2010, the defendants, aiding and abetting each other, by force, violence and intimidation, did take one .9mm caliber Smith and Wesson Pistol from the person or presence of Rangers of the Department of Natural Resources Félix Rodríguez Gómez and Kenneth Omar Betancourt, then acting as security guards at Reparto Industrial in Río Piedras, PR, and shot and killed them. The defendants fled the scene but were later arrested by PRPD agents after a high speed chase.
Defendant Ángel Santana-Espinet pled guilty on August 21, 2012, to count two of the superseding indictment, Possession of a Stolen Firearm, and was sentenced to 380 months in prison and eight years of supervised release. Defendant Leroy Santana-Rosado plead guilty on March 24, 2014, to count one of the superseding indictment, Interference with Commerce by Threat of Violence, and was sentenced to 87 months in prison and three years of supervised release.
The case was investigated by the FBI and the Puerto Rico Police Department and was prosecuted by Assistant US Attorney Julia Díaz-Rex.
Linn Johnson Sentenced for Child PornographyRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Linn Johnson, age 40, of Michigan City, Indiana, was sentenced Thursday, October 8, 2015, in federal court by Judge Robert L. Miller,Jr. after his guilty plea to possession of child pornography.
Johnson was sentenced to 144 months’ imprisonment and 5 years supervised release.
According to documents in the case, on May 29 and 30, 2013, an undercover officer, working online, was able to download child pornography that was being shared by Johnson on the internet. On December 6, 2013, officers served a search warrant at Johnson’s residence and seized a computer that contained child pornography. His sentence was enhanced because Johnson admitted, when interviewed, to having molested a 7 year old child. Johnson has been in custody since his arrest on December 6, 2014.
This case was the result of an investigation by Federal Bureau of Investigation and Michigan City Police Department. The case was handled by the Assistant United States Attorney John M. Maciejczyk.
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Leader of Butte County Methamphetamine Trafficking Organization Sentenced to 17 Years in Federal PrisonRead the Press Release
SACRAMENTO, Calif. — Federico Sandoval Aguilar, 43, of Biggs, was sentenced today by United States District Judge Kimberly J. Mueller to 17 and half years in prison for conspiring to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Aguilar was the head of a drug trafficking organization that was responsible for distributing pound-quantities of methamphetamine on a weekly basis in Butte County. Over a four-month period in 2013, Aguilar’s organization distributed over 49 pounds of methamphetamine. Aguilar was arrested at his residence in August 2013, where law enforcement officers found 15 cellphones, five guns, and $50,000 in cash concealed within a bathroom air vent.
This case was the product of an investigation by the Drug Enforcement Administration, the Butte Interagency Narcotics Task Force (BINTF), the Butte County Sheriff’s Office, the Butte County Probation Department, the Butte County District Attorney’s Office, the California Highway Patrol, the California Department of Justice Bureau of Gambling Control, the Chico Police Department, and the United States Marshals Service. Assistant United States Attorney Justin Lee prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Kenton County Man Sentenced to 147 Months for Distributing Child Pornography over the InternetRead the Press Release
COVINGTON — A Kenton County man, who previously admitted to distributing images and videos of child pornography, through peer-to-peer files over the internet, was sentenced today to 147 months in federal prison.
U.S. District Judge Amul Thapar sentenced Alan K. Newberry, 43, of Park Hills, Ky., for distribution of child pornography and also ordered him to pay $13,500 in restitution to victims. Under federal law, Newberry must serve at least 85 percent of his prison sentence and he will be required to register as a sex offender for the remainder of his life.
According to Newberry’s plea agreement, authorities with the Kentucky Attorney General’s Office identified numerous images and videos of child pornography that had been made available for download on the internet. They traced the source of those files to Newberry’s computer, which was located at his home in Park Hills. Authorities executed a search warrant at the residence, searched his computer, and found 4,000 images and 700 videos of children engaged in sexually explicit conduct. Many of the images depicted prepubescent children and sadistic abuse.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Jack Conway, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by the Cyber Crimes Unit of the Office of the Kentucky Attorney General.
Justice Department Settles Immigration-Related Discrimination Claim Against Postal ExpressRead the Press Release
The Justice Department announced today that it has reached an agreement with Postal Express Inc., a delivery and logistics company with locations in Oregon, Washington and Idaho. The agreement resolves a charge filed with the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), claiming that the company discriminated against a non-U.S. citizen in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that Postal Express required a Lawful Permanent Resident, who is permanently work authorized by virtue of that status, to produce a particular immigration document to re-verify his employment eligibility even though the employee had already provided sufficient documentation to prove his authorization to work in the United States. Specifically, the department found that Postal Express improperly required him to present a new Permanent Resident Card (also known as a Green Card) and suspended him when he failed to do so. The INA’s anti-discrimination provision prohibits employers from making specific documentary demands or requesting unnecessary work-authorization documents based on citizenship status or national origin when verifying or re-verifying an employee’s employment eligibility.
Under the terms of the settlement agreement, the company has agreed to pay a civil penalty. The company also has agreed, among other terms, to train employees on the anti-discrimination provision of the INA and to revise company policies to avoid discrimination in the employment eligibility verification (Form I-9) process. The company reinstated the suspended employee and paid him lost wages at the start of OSC’s investigation.
“The department is committed to eliminating discriminatory barriers to employment for authorized workers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Civil Rights Division commends Postal Express for working with the division to resolve this matter. We will continue to work with employers to help implement best practices in the employment eligibility verification process.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. Trial Attorney Katherine E. Lamm investigated this matter.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Justice Department Awards Law Enforcement Hiring Grants to Help Build Trust, Reduce Violence and Protect SchoolsRead the Press Release
DALLAS — U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) funding awards to the Arlington Police Department to create, and in some cases protect, 15 law enforcement positions in the Department. More than $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including this $1,875,000 funding for the Arlington Police Department.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community-policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
"I’m grateful to the Attorney General not only for choosing one of the largest, and most community-focused police departments in the Northern District of Texas to receive this funding, but for recognizing the importance of continuing to support law enforcement agencies as they develop creative and innovative ways to deal with community and public safety issues,” said U.S. Attorney John Parker of the Northern District of Texas.
Will D. Johnson, Chief of the Arlington Police Department, said, “Our partnership with the COPS Office is instrumental in advancing public safety in our community. Arlington is honored to be selected for the COPS Hiring Program. This grant is a positive investment and will allow us to hire 15 additional police officers.”
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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Judge Sentences Bedford Man to 12 Years in Prison for Possessing, Distributing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa., has been sentenced in federal court to 144 months in prison, 10 years’ supervised release and must register as a convicted sex offender under the Sex Offender Registration and Notification Act (SORNA) on his conviction of distribution and possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Wade C. Baer, 32.
According to information presented to the court, on Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct, and on March 7, 2013, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Southwest Computer Crime Task Force of the Pennsylvania State Police for the investigation leading to the successful prosecution of Baer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illinois Man Pleads Guilty to Fraud and Assault ChargesRead the Press Release
St. Louis, MO – JASON CRIPE, formerly of Windsor, Illinois, pled guilty to a fraud scheme that criss-crossed Missouri and Illinois and spanned four years.
According to the plea agreement, Cripe admitted to assaulting the federal law enforcement officers who finally came to arrest him for his fraud scheme this past summer. Cripe pled guilty to one count of wire fraud and one count of assaulting a law enforcement officer.
With his plea, Cripe admitted to being “a con artist,” posing as a repossession agent between 2011 and 2015 and, on at least seven different occasions, falsely claiming to be authorized to sell repossessed vehicles and commercial equipment which he, in fact, did not have. After receiving a “deposit,” Cripe would simply pocket the victims’ money, often blaming delays on his purported clients, the financing companies, until the victims tired of calling.
Cripe's cases were eventually consolidated into a federal investigation by the St. Louis office of the U.S. Secret Service. After Cripe was indicted earlier this year, the Secret Service tracked him across Missouri and southern and central Illinois in an attempt to arrest him. On July 8, 2015, the Secret Service finally located Cripe at a St. Louis County gas station. When the federal agents confronted Cripe, he fought with the agents and rammed their vehicle with his before being taken into custody, where he remains.
Cripe entered his plea before United States District Judge Ronnie L. White in St. Louis. Sentencing has been set for January 13, 2016.
The maximum penalty for wire fraud is 20 years in prison and/or a fine of up to $250,000. Restitution to the defendant’s victims is also mandatory. The assault count carries a maximum penalty of one year in prison and/or a fine up to $100,000. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Secret Service, in cooperation with the St. Louis Metropolitan Police Department, the Bridgeton Police Department, the Warrenton (MO) Police Department, the Ray County (MO) Sheriff’s Department, the Shelby County (IL) Sheriff’s Department, the Monroe County (IL) Sheriff’s Department, the Fayette County (IL) Sheriff’s Department and the Macon County (IL) Sheriff’s Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
High Desert Woman Pleads Guilty in Unemployment Insurance Fraud Scheme involving Bogus Movie Production CompaniesRead the Press Release
LOS ANGELES – An Antelope Valley woman pleaded guilty this morning in a mail fraud scheme that used personal data stolen from elderly victims in an effort to defraud California’s unemployment insurance program out of nearly $300,000.
Dena Peterman, who also uses the name Dena Buttram, 32, of Littlerock, pleaded guilty to one count of conspiracy to commit mail fraud pursuant to a plea agreement filed yesterday in United States District Court.
According to the plea agreement and other court documents, over the course of two years, Peterman and her co-conspirators stole social security numbers and other personal identifying information that was used to defraud the California Employment Development Department (EDD), which administers the state unemployment insurance program. Peterman and her co-conspirators targeted senior citizens as part of the scam, obtaining social security numbers and other personal data from the elderly victims in Oregon and California by telling them that they had an opportunity to be cast in remakes of popular movies.
Peterman and her co-conspirators created bogus companies supposedly related to the movie industry with names such as Nine Maids Movie Production, Western Film Animation and High Desert Productions. Using the stolen personal information, a co-conspirator filed fictitious wage reports with the EDD and then fraudulently sought unemployment insurance benefits for the people who supposedly worked for the movie companies. The EDD subsequently provided unemployment insurance benefits in the names of these individuals through debit cards that were mailed to addresses that Peterman or her co-conspirators controlled.
As a result of this scheme, Peterman and her co-conspirators sought more than $290,000 in unemployment insurance benefits, and the EDD suffered losses of approximately $221,612.
Peterman pleaded guilty before United States District Judge Dolly M. Gee, who is scheduled to sentence the defendant on January 6.
As a result of today’s guilty plea, Peterman faces a statutory maximum penalty of five years in federal prison.
This case is the result of a joint investigation by the U.S. Department of Labor - Office of Inspector General and the California Employment Development Department.
Heroin Dealer Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich has sentenced Alexis Rodriguez (38, Kissimmee) to 15 years and 8 months in federal prison for distributing more than 100 grams of heroin. He pleaded guilty on June 29, 2015.
According to court documents, in March 2013, DEA agents began investigating Rodriguez as a supply source for cocaine and heroin. On April 4, 2013, a confidential source (CS) traveled to Tampa to meet with Rodriguez. During the meeting, Rodriguez gave the CS approximately 10 grams of a brown powder substance on consignment and requested payment at a later date. The substance tested positive for the presence of heroin.
The CS called Rodriguez three days later and informed him that he had the money for the heroin, and then made arraignments to deliver the money that morning. During that meeting, the CS provided Rodriguez with $950 for the heroin he had previously supplied. The CS informed Rodriguez that his associates were interested in purchasing additional quantities of heroin from Rodriguez, and arrangements were made for another meeting later that day. During that meeting, Rodriguez provided the CS with a plastic bag containing approximately 113 grams of a brown powder substance that also tested positive for heroin.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Harrisburg Man Indicted on Drug Trafficking and Weapons ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man has been indicted by a federal grand jury in Harrisburg on multiple firearms charges and charges involving possession and distribution of heroin and crack cocaine.
According to United States Attorney Peter Smith, Michael A. Ridgeway, age 23, of Harrisburg, was charged in a five count indictment with unlawfully possessing with the intent to distribute heroin, crack cocaine, marijuana and oxycodone on three separate occasions from January through June of 2015, and with possessing firearms in furtherance of drug trafficking on two of those occasions.
The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco and Firearms and the Harrisburg Police Department. 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 is 20 years of imprisonment on each of the drug counts, a term of supervised release following imprisonment, and a fine. The maximum penalty for each of the firearms counts is life with a mandatory minimum consecutive sentence of 5 years. 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.
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Grundy County Gun Dealer Sentenced to 4 Years in Prison for Illegally Selling Handguns and RiflesRead the Press Release
CHICAGO ― A Grundy County gun dealer was sentenced today to 4 years in federal prison for selling nearly a dozen firearms to buyers he believed were not legally allowed to purchase the weapons.
PATRICK SEAN KEIRAN, 41, used his federal firearms license to sell eleven weapons to two buyers, one of whom was an undercover law enforcement officer who told Keiran he couldn’t pass the required background check. The other buyer was a convicted felon whose criminal history prevented him from legally purchasing the weapons. In both instances, Keiran doctored the bill of sale and the federal firearms paperwork by using the names of other customers as the purported buyers.
Keiran, who operated American’s Choice Firearms and Ammo in Gardner, pleaded guilty in April to one count of selling a firearm to a prohibited person. In addition to the 48-month prison term, U.S. District Judge Matthew F. Kennelly also imposed three years of supervised release.
“The defendant let these individuals walk out of his store with brand new firearms and no possible paper trail for law enforcement to follow if those guns were ever used for criminal purposes,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. The defendant “put his own greed above the safety of the community.”
Keiran has been a federally licensed firearms dealer since April 2013. On May 29, 2014, Keiran sold three 9mm handguns for $960 to the undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The following month, Keiran sold the undercover agent a .38-caliber revolver for $398.43, and two .22-caliber rifles for approximately $1,390. The rifle transaction was completed at Keiran’s home in Elwood because Keiran wanted to avoid the surveillance cameras in his gun shop.
On June 20, 2014, Keiran sold five 9mm handguns for $1,600 to the convicted felon, who was cooperating with law enforcement. This deal was also conducted inside Keiran’s home.
Keiran was arrested in July 2014, and his gun store was closed.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Will County Sheriff’s Police Department, the Will County Metropolitan Area Narcotics Squad (MANS), and the Grundy County Sheriff’s Department assisted in the investigation.
The government was represented by Mr. Parente.
Fugitive Arrested, Charged with Coercion, Enticement, Production of Child PornographyRead the Press Release
CINCINNATI – Cody Lee Jackson, 20, most recently of Norwood, Ohio, was charged by criminal complaint with coercion and enticement of a minor to engage in illegal sexual activity and production of child pornography. Jackson was arrested last week in Utah.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Norwood Police Chief William Kramer and Blue Ash Police Chief Paul Hartinger announced the charges, which were unsealed today.
According to court documents, investigators were contacted with the information that two females, including a minor, had previously been held against their will by Jackson, in Blue Ash, Ohio. While on electronic monitoring for charges in that case, Jackson allegedly met the minor victim in the instant case, through Facebook. Jackson arranged for a taxi to deliver the minor to his place of residence, and had sexual intercourse with her on multiple occasions.
Over time, Jackson allegedly became more controlling and would not let the victim leave his residence. He established various rules and punishments which included physical abuse.
After pleading guilty on July 31, 2015 to state charges of interference with custody, abduction and kidnapping, Jackson fled to other states including South Carolina and Texas. During that time, he allegedly threatened to kill the minor victim’s family if she did not send him sexually explicit photographs via Facebook.
Coercion and enticement of a minor to engage in illegal sexual activity carries a minimum of ten years and a maximum sentence of life in prison. Production of child pornography is a crime punishable by a range of 15 to 30 years in prison.
Jackson is also facing charges of rape, kidnapping, unlawful sexual conduct with a minor, and interference with custody, brought by the Norwood Police Department and the Hamilton County Prosecutor’s Office.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended law enforcement for the cooperative investigation, and Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Owner of Edgewater Medical Center Sentenced to 21 Months for Willfully Impeding Efforts to Collect $188 Million in Civil JudgmentsRead the Press Release
CHICAGO — The former owner of Edgewater Medical Center on Chicago’s North Side was sentenced today to 21 months in federal prison for his efforts to thwart collection of more than $188 million in civil judgments.
PETER G. ROGAN lied in a federal affidavit when he denied controlling millions of dollars in a trust account in the Bahamas. He also willfully violated multiple court orders as part of a decades-long effort to protect his offshore assets from judgment creditors who had obtained more than $188 million in combined civil judgments arising from fraud during Rogan’s tenure as CEO of the now-shuttered medical center.
Rogan, 69, formerly of Valparaiso, Ind., pleaded guilty last month to one count of perjury. In addition to the 21-month prison term, U.S. District Judge Harry D. Leinenweber ordered Rogan to comply with all outstanding court orders, including orders relating to discovery and financial obligations.
“The defendant’s conduct was abundantly contemptuous and lucrative, as well as exceedingly difficult to detect, investigate, and prosecute,” Assistant U.S. Attorney Andrew S. Boutros argued in the government’s sentencing memorandum. The defendant “substantially interfered with the administration of justice.”
Rogan once owned Edgewater Medical Center and later sold it, but he continued to manage the facility through various companies he owned. The hospital, located at 5700 N. Ashland Ave., closed in 2001 amid a criminal investigation that resulted in the healthcare fraud convictions of a Rogan-owned management company, a hospital administrator and several doctors, the latter of whom performed medically unnecessary surgical procedures and treatments on unsuspecting patients.
In 2006, the United States obtained a civil judgment of $64,259,032 against Rogan for his role in Edgewater’s submission of false claims for reimbursement under the Medicare program. The following year, Dexia Crédit Local, a bank that extended credit financing to the hospital, was awarded a $124 million default judgment in a separate civil fraud suit against Rogan and his companies.
In the course of their respective proceedings against Rogan, the United States and Dexia discovered that Rogan’s Bahamian trust account was being used to hold millions of dollars in secret offshore assets. Rogan had created the trust with the help of FREDERICK M. CUPPY, an Indiana attorney, as well as another attorney described in the indictment as “Florida Lawyer.” Cuppy, formerly of Valparaiso, Ind., and now of Fort Lauderdale, Fla., pleaded guilty to a perjury charge before Judge Leinenweber. He was sentenced in 2013 to one year and a day in prison.
On Dec. 21, 2006, Rogan responded to the government’s collection efforts by filing an affidavit with the Court in which he denied that he exercised control over assets in the trust account. Rogan admitted in a plea agreement that this statement was false and misleading. Rogan also admitted that he willfully and wrongfully violated several court orders in the Dexia litigation, including lying and causing his attorneys to lie to the Court about his control over his offshore trust.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Mr. Boutros and Assistant United States Attorneys Daniel W. Gillogly, Eric S. Pruitt and Joseph A. Stewart.
Former Mercer Island Resident Pleads Guilty to Defrauding Immigrants with Promises of Legal StatusRead the Press Release
A former resident of Mercer Island, Washington, who stole more than $220,000 from immigrants with promises of immigration assistance pleaded guilty today in U.S. District Court in Seattle to Wire Fraud, announced U.S. Attorney Annette L. Hayes. DALIA IVETTE SINGH, 61, also known as Dalia Pena of Clearwater, Florida, defrauded more than 40 immigrants from the Caribbean and Latin America. SINGH charged some families as much as $36,000, claiming she had a contact in the U.S. Citizenship and Immigration Services (USCIS) who could provide the immigrants with legal status in the United States. SINGH claimed her USCIS contact ran a special program the immigrants could use to get legal status. There was no such program and no USCIS contact – SINGH made it all up to defraud the victims. Sentencing before U.S. District Judge Richard A. Jones is scheduled for January 22, 2016.
“This defendant preyed on victims whose dream was to become a U. S. citizen, said U.S. Attorney Annette L. Hayes. “Although she held herself out as someone who could help, she never did, and instead took advantage of the victims' church affiliations and networks of friends to enrich herself.”
According to records filed in the case, between 2008 and 2011 SINGH represented to various people that she could assist them with obtaining legal status in the United States. The victims were immigrants without legal status in the United States. SINGH claimed she had a contact at USCIS who could provide legal status if the victim would pay SINGH a $5,000 fee. SINGH claimed the immigration program required enrollment of a group of people, not just individuals, and so encouraged the victims to recruit more people to enroll with them. In one instance, SINGH defrauded about thirty members of a church of nearly $100,000 with her false promises.
"Those who profit by preying on vulnerable members of the immigrant community will pay a hefty price for their crimes,” said Shawn Fallah, resident agent in charge of the Office of Professional Responsibility in the Pacific Northwest. "We’re committed to safeguarding the public from scam artists and others who exploit people’s false hopes for no other reason than to enrich themselves.”
Under the terms of the plea agreement, SINGH will pay restitution of $222,900. Prosecutors will recommend 18 months in prison and SINGH will request no less than one year in prison. Judge Jones is free to impose any sentence up to the 20 year maximum allowed by law.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and Office of Professional Responsibility (OPR). The case is being prosecuted by Assistant United States Attorney Erin Becker.
Former IRS Employee Indicted for Theft of Public Funds, Conspiring to Defraud United StatesRead the Press Release
FRESNO, Calif. — A former IRS employee was arraigned Wednesday in Fresno on an indictment charging her with conspiracy to defraud the United States, theft of public funds, and unauthorized access of computer information, United States Attorney Benjamin B. Wagner announced.
On October 8, 2015, a federal grand jury returned an indictment against Maria Mora, 55, of Fresno, and her ex-husband, Uriel Perez, 51, of Spring, Texas. Both defendants were arrested Wednesday. Mora pleaded not guilty, and a status conference is scheduled for December 14, 2015. Perez was charged with five counts of theft of public funds, and he will make his initial appearance in Texas.
According to court documents, Mora, an IRS employee since 1993, conspired with Perez to defraud the United States by falsely claiming Perez’s niece as a dependent on his tax returns in order to qualify for the Earned Income Credit. Mora prepared false tax returns for Perez for tax years 2008 through 2012. When the IRS did not issue the tax refunds for the 2008, 2009, and 2010 tax years, Mora prepared and submitted forged letters allegedly from Perez’s sister, claiming that his niece was Perez’s dependent. Mora also used her position as an IRS employee to access without authority tax records of Perez’s sister and brother to further the scheme to defraud the United States and steal funds. In total, Mora and Perez stole approximately $13,000 in tax refunds from the United States.
This case is the product of an investigation by the United States Treasury Inspector General for Tax Administration. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
If convicted, Mora faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. She will also be precluded from being hired as an IRS employee in the future. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Chief Executive Officer of Marketing Agency Sentenced in Manhattan Federal Court for $2 Million Fraud and Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Caroline Ciraolo, Acting Assistant Attorney General of the Justice Department's Tax Division, announced today that MICHAEL J. MITROW, Jr. (“MITROW”), the former CEO and President of a pharmaceutical marketing company (the “Marketing Agency”), was sentenced to three-and-a-half years in prison for participating in a scheme to defraud the Marketing Agency in which MITROW obtained over $2 million in fraud and kickback proceeds, and for willfully failing to report that unlawful income to the Internal Revenue Service (“IRS”). MITROW pled guilty in January 2015 before U.S. District Judge Paul A. Engelmayer, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Michael Mitrow defrauded the marketing agency that he led as its CEO out of over $1 million, using it to pay personal expenses including $600,000 to fly in private jets. His fraud and his failure to report the proceeds as income resulted in a federal conviction for Mitrow. At his sentencing today, he learned that the price of his crimes is not only repayment of the ill-gotten money but also the loss of his liberty.”
Acting Assistant Attorney General Caroline Ciraolo said: “Corporate officers who engage in fraud and kickback schemes and fail to report their illegal gains are defrauding their employers and cheating honest taxpayers. The sentence handed down today sends a strong message that these individuals will be held to account for committing offenses that were made possible by violating their fiduciary obligations.”
According to the Indictment and Superseding Information previously filed in Manhattan federal court, other court filings, and statements made during the proceedings in this case:
MITROW was the CEO and President of the Marketing Agency from 1998 through approximately 2009. From approximately 2008 through 2009, MITROW defrauded the Marketing Agency by submitting fraudulent invoices for consulting services that were purportedly provided to the Marketing Agency but were, in fact, never provided. Instead, Mitrow used the proceeds from those invoices to fund more than $600,000 in private jet travel. MITROW further defrauded the Marketing Company by causing it to pay $415,000 that was ultimately provided to a relative of MITROW and his co-defendant and brother, Matthew Mitrow, despite the representations made by the Mitrows to a private equity firm that acquired the company that the relative had severed all ties to the company. In addition, MITROW willfully failed to report to the IRS his income from the fraudulent consulting invoices, which exceeded $600,000; $1.4 million in kickback payments he received from Creative Press and East Coast Vending, printing and direct mail marketing companies owned by co-defendant Robert Madison and located in Phoenix, in order to help grow the business through additional printing and direct mailing contracts for Creative Press with his company; and more than $200,000 in personal purchases that Mitrow made with his corporate credit card and fraudulently coded as business expenses of the company.
* * *
MITROW, 48, of Whitehouse Station, New Jersey, pled guilty to one count of conspiracy to commit wire fraud and one count of tax evasion. In addition to the prison term, MITROW was sentenced to three years of supervised release and 200 hours of community service in each of those years. He was also ordered to pay restitution in the amount of $83,219 to the IRS and $1,468,259.43 to the Marketing Agency.
Matthew Mitrow, 42, of Westfield, New Jersey, previously pled guilty to one count of filing a false tax return for the 2008 tax year, and was sentenced in July 2015 to three months in prison. As part of his plea agreement with the Government, Matthew Mitrow paid restitution of $30,822 to the IRS.
Robert Madison, 44, of Henderson, Nevada, pled guilty to one count of conspiracy to commit honest services fraud in the payment of undisclosed kickbacks to the Mitrow brothers, and was sentenced in May 2015 to 18 months in prison and 18 months of home confinement. As part of his plea agreement with the Government, Madison will be subject to an order of restitution in an amount to be determined by the Court.
Mr. Bharara thanked the Internal Revenue Service - Criminal Investigations and the United States Postal Inspection Service for their outstanding investigative work in this case. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Andrew Young and Department of Justice Tax Division Senior Litigation Counsel Nanette L. Davis are in charge of the prosecution.
Former CEO of Marketing Agency Sentenced to Prison for $2 Million Fraud and Kickback SchemeRead the Press Release
The former CEO and president of a pharmaceutical marketing company was sentenced to three and one half years in prison for participating in a scheme to defraud the company in which he obtained more than $2 million in fraud and kickback proceeds, and for willfully failing to report that unlawful income to the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Preet Bharara of the Southern District of New York.
Michael J. Mitrow Jr., 48, of Whitehouse Station, New Jersey, was sentenced to serve 42 months in prison to be followed by three years of supervised release and 200 hours of community service in each of those years. He was also ordered to pay $83,219 in restitution to the IRS and $1,468,259.43 to Access Communications. In January 2015, Mitrow pleaded guilty to one count of conspiracy to commit wire fraud and one count of tax evasion before U.S. District Judge Paul A. Engelmayer of the Southern District of New York, who also imposed today’s sentence.
“Corporate officers who engage in fraud and kickback schemes and fail to report their illegal gains are defrauding their employers and cheating honest taxpayers,” said Acting Assistant Attorney General Ciraolo. “The sentence handed down today sends a strong message that these individuals will be held to account for committing offenses that were made possible by violating their fiduciary obligations.”
“Michael Mitrow defrauded the marketing agency that he led as its CEO out of over $1 million, using it to pay personal expenses including $600,000 to fly in private jets,” said U.S. Attorney Bharara. “His fraud and his failure to report the proceeds as income resulted in a federal conviction for Mitrow. At his sentencing today, he learned that the price of his crimes is not only repayment of the ill-gotten money but also the loss of his liberty.”
According to the indictment and superseding information previously filed in Manhattan federal court, other court filings and statements made during the proceedings in this case:
Mitrow was the CEO and president of the company from 1998 through approximately 2009. From approximately 2008 through 2009, Mitrow defrauded the company by submitting fraudulent invoices for consulting services that were purportedly provided to the company but were, in fact, never provided. Instead, Mitrow used the proceeds from those invoices to fund more than $600,000 in private jet travel. Mitrow further defrauded the company by causing it to pay $415,000 in payments by the company to a relative of Mitrow and his co-defendant and brother, Matthew Mitrow, despite the representations made by the Mitrows to a private equity firm that acquired the company that the relative had severed all ties to the company. In addition, Mitrow willfully failed to report to the IRS his income from the fraudulent consulting invoices, which exceeded $600,000; $1.4 million in kickback payments he received from Creative Press and East Coast Vending, printing and direct mail marketing companies owned by co-defendant Robert Madison and located in Phoenix, in order to help grow the business through additional printing and direct mailing contracts for Creative Press with his company; and more than $200,000 in personal purchases that Mitrow made with his corporate credit card and fraudulently coded as business expenses of the company.
Matthew Mitrow, 42, of Westfield, New Jersey, previously pleaded guilty to one count of filing a false tax return for the 2008 tax year, and was sentenced in July 2015 to serve three months in prison. As part of his plea agreement with the government, Matthew Mitrow paid $30,822 in restitution to the IRS.
Robert Madison, 44, of Henderson, Nevada, pleaded guilty to one count of conspiracy to commit honest services fraud in the payment of undisclosed kickbacks to the Mitrow brothers, and was sentenced in May 2015 to serve 18 months in prison and 18 months of home confinement. As part of his plea agreement with the government, Madison will be subject to an order of restitution in an amount to be determined by the court.
Assistant Attorney General Ciraolo and U.S. Attorney Bharara thanked the IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated this case, and Assistant U.S. Attorney Andrew Young of the Southern District of New York and Senior Litigation Counsel Nanette L. Davis of the Tax Division, who are prosecuting this case. The U.S. Attorney’s Office of the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling this case.
Former Bakersfield Real Estate Developers Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Three Bakersfield residents were sentenced Tuesday by Senior United States District Judge Anthony W. Ishii in connection with a mortgage fraud scheme in Bakersfield, United States Attorney Benjamin B. Wagner announced.
Eliseo Jara Jr., 36, was sentenced to six and a half years in prison for conspiracy to commit bank fraud, mail fraud, and wire fraud, and was ordered to pay $4.3 million in restitution. Sergio Jara, 34, was sentenced to six and a half years in prison for conspiracy to commit bank fraud, mail fraud, and wire fraud, and was ordered to pay $3,249,624 in restitution. Melissa Rochelle Jara, 34, was sentenced to time served and five years on supervised release for wire fraud, and was ordered to pay $271,171 in restitution. The Jaras were also ordered to forfeit their interests in six properties in Bakersfield, a 2007 Lexus, and approximately $110,419 seized from a bank account, and to pay personal forfeiture money judgments of $5,664,250 as to Eliseo Jara, $4,743,500 as to Sergio Jara, and $534,750 as to Melissa Jara. Prior to sentencing, Sergio and Melissa Jara also deposited approximately $148,000 with the Court toward their restitution obligations.
According to court documents, from 2007 to 2010, the Jaras conspired with other defendants to use straw buyers to purchase residential properties in Bakersfield developed by Jara Brothers Investments (JBI), owned by Eliseo Jara and Sergio Jara, and Pershing Partners LLC, owned by co-defendant Lucia Chavez. The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers from lenders based on false and fraudulent loan applications. Eliseo Jara and Sergio Jara owned and operated JBI, Paragon Home Mortgage, and Paragon Realty, and developed and sold residential real properties in the Bakersfield area using these companies. Melissa Jara was employed as a real estate broker at Paragon Realty and also owned and operated a limited liability company through which she sold a real property in furtherance of the scheme to defraud.
The loan applications in the names of straw buyers frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded certain of the straw buyers’ down payments. The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that straw buyers had high bank account balances, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from straw buyers’ landlords, false pay stubs, and false verifications of employment.
This case is the product of an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff and Henry Z. Carbajal III prosecuted the case.
Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014 to 46 months in prison, and co-defendant Arlene Jeanette Mojardin was sentenced on May 18, 2015 to 30 months in prison, for their roles in the conspiracy. Co-defendants Lucia Chavez, Joseph Chavez, and Candace Gonzales previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and their sentencing hearings are set for October 19, 2015, as to Lucia and Joseph Chavez, and October 26, 2015, as to Candace Gonzales. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is also set for October 26, 2015.
Federal Indictment Returned Against Two Individuals Involving Two Drug-Related HomicidesRead the Press Release
St. Louis, MO – Two area men have been indicted on charges involving two drug-related homicides occurring in the City of St. Louis.
The indictment charges TERRANCE WILSON and DONALD STEWART for their involvement in the March 26, 2010, murder of Michael McGill, and the July 23, 2010, murder of Darrion Williams, Jr. Both were in connection with drug trafficking crimes. The indictment was returned September 23rd, but remained sealed until the arrest of Donald Stewart last week.
Wilson and Stewart were each indicted on two felony counts of possession of a firearm (with death resulting) in furtherance of a drug-trafficking crime. If convicted, these charges carry penalties that include possible life sentences of imprisonment.
"This is an example of the outstanding collaboration between the St. Louis Metropolitan Police Department, the U.S. Attorney's Office and our regional partners as we find new methods to combat violent crime in the City of St. Louis," said Chief Sam Dotson.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted as part of the Mission SAVE Initiative. Mission SAVE (Strike Against Violence Early) was initiated to reduce violence in the St. Louis area. The hybrid task force is a collaboration between the Federal Bureau of Investigation-St. Louis Division, Drug Enforcement Administration-St. Louis Division, U.S. Attorney’s Office for the Eastern District of Missouri, St. Louis Metropolitan Police Department, St. Louis Circuit Attorney’s Office, St. Louis County Police Department and the St. Louis County Prosecutor’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Federal Grand Jury Indicts Former Prison Supervisor for Sexual Abuse of a WardRead the Press Release
In Del Rio today, a federal grand jury indicted a former GEO Group’s Val Verde Correctional Facility supervisor for allegedly having sexual relations with a prisoner announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs.
The federal indictment charges 58-year-old Leticia Martinez Garza of Del Rio, with one count of sexual abuse of a ward. According to the indictment, between May 2014 and September 2014, the Laundry, Property and Supply Supervisor knowingly engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory, or disciplinary authority.
Upon conviction, Garza faces up to 15 years in federal prison and a maximum $250,000 fine. Garza is currently on bond awaiting further court proceedings.
This case was investigated by FBI and is being prosecuted by Assistant United States Attorneys Goran Krnaich and Matthew H. Watters.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Ethiopian national sentenced to 27 months in prison for resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that an Ethiopian national was sentenced Tuesday to 27 months in prison for refusing to leave the country twice after being ordered to depart.
Henok Dejene Retta, 30, of Addis, Ethiopia, was sentenced by U.S. District Judge Dee D. Drell on two counts of failure to depart. Retta was found guilty on both counts after a two-day trial that ended July 1, 2015. Evidence admitted at trial revealed that on two occasions U.S. Immigration Enforcement agents attempted to remove Retta from the country via the Alexandria International Airport by putting him on a commercial flight. The defendant hampered agents’ ability to remove him by verbally and physically resisting agents on November 19, 2013. The defendant also hampered attempts to put him on a commercial flight at the airport on January 7, 2014, when he told those present that he had terrorist ties in Africa and would have the plane attacked should he be put on the plane. These incidents prevented him from boarding the flights because of airline and Transportation Security Administration safety policies.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Robert F. Moore and Howard C. Parker prosecuted the case.
El Dirigente de Una Organización Que Trafica con Metanfetamina en el Condado de Butte a Sido Sentenciado a 17 Años en una Prisión FederalRead the Press Release
SACRAMENTO, California – Federico Sandoval Aguilar, 43, y residente de Biggs, fue sentenciado hoy por la Juez del Distrito de los Estados Unidos Kimberly J. Mueller a 17 años y medio de prisión por conspirar a distribuir metanfetamina, anuncio el Procurador de los Estados Unidos Benjamín B. Wagner.
Según documentos del tribunal, Aguilar era el jefe de una organización que traficaba con droga y que era responsable de la distribución semanal de metanfetamina en cantidades de una libra por el Condado de Butte. En el 2013, y en un periodo de cuatro meses, la organización de Aguilar distribuyó más de 49 libras de metanfetamina. Aguilar fue arrestado en su residencia en agosto del 2013 en donde agentes de la policía encontraron 15 teléfonos celulares, cinco armas de fuego y 50,000 dólares en efectivo ocultos en el conducto del aire dentro de un cuarto de baño.
Este caso es el producto de una investigación llevada a cabo por la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration) o DEA, el Destacamento Especial de Narcóticos Interinstitucional de Butte (Butte Interagency Narcotics Task Force ) o BINTF, la Oficina del Sheriff del Condado de Butte, el Departamento de Libertad Condicional del Condado de Butte, la Fiscalía del Distrito del Condado de Butte, la Patrulla de Carreteras de California, la Oficina de Control de Juegos y Apuestas del Departamento de Justicia de California, el Departamento de Policía de Chico y el Servicio de Mariscal de los Estados Unidos. El Procurador Auxiliar de los Estados Unidos Justin Lee procesó el caso.
Este caso fue parte de un Destacamento Especial de Lucha Contra las Drogas y el Crimen Organizado (Organized Crime Drug Enforcement Task Force) u OCDETF. El programa del OCDETF fue establecido en 1982 para gestionar ataques detallados a varios niveles a las principales organizaciones que se dedican al narcotráfico y al lavado de dinero. La misión fundamental del programa del OCDETF es identificar, interrumpir y desmantelar las más graves organizaciones dedicadas al narcotráfico y al lavado de dinero y ante todo a aquellas personas responsables del suministro de la droga en la nación.
El Dirigente De Una Organización Que Trafica Con Metanfetamina En El Condado De Butte A Sido Sentenciado A 17 Años En Una Prisión FederalRead the Press Release
SACRAMENTO, California – Federico Sandoval Aguilar, 43, y residente de Biggs, fue sentenciado hoy por la Juez del Distrito de los Estados Unidos Kimberly J. Mueller a 17 años y medio de prisión por conspirar a distribuir metanfetamina, anuncio el Procurador de los Estados Unidos Benjamín B. Wagner.
Según documentos del tribunal, Aguilar era el jefe de una organización que traficaba con droga y que era responsable de la distribución semanal de metanfetamina en cantidades de una libra por el Condado de Butte. En el 2013, y en un periodo de cuatro meses, la organización de Aguilar distribuyó más de 49 libras de metanfetamina. Aguilar fue arrestado en su residencia en agosto del 2013 en donde agentes de la policía encontraron 15 teléfonos celulares, cinco armas de fuego y 50,000 dólares en efectivo ocultos en el conducto del aire dentro de un cuarto de baño.
Este caso es el producto de una investigación llevada a cabo por la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration) o DEA, el Destacamento Especial de Narcóticos Interinstitucional de Butte (Butte Interagency Narcotics Task Force ) o BINTF, la Oficina del Sheriff del Condado de Butte, el Departamento de Libertad Condicional del Condado de Butte, la Fiscalía del Distrito del Condado de Butte, la Patrulla de Carreteras de California, la Oficina de Control de Juegos y Apuestas del Departamento de Justicia de California, el Departamento de Policía de Chico y el Servicio de Mariscal de los Estados Unidos. El Procurador Auxiliar de los Estados Unidos Justin Lee procesó el caso.
Este caso fue parte de un Destacamento Especial de Lucha Contra las Drogas y el Crimen Organizado (Organized Crime Drug Enforcement Task Force) u OCDETF. El programa del OCDETF fue establecido en 1982 para gestionar ataques detallados a varios niveles a las principales organizaciones que se dedican al narcotráfico y al lavado de dinero. La misión fundamental del programa del OCDETF es identificar, interrumpir y desmantelar las más graves organizaciones dedicadas al narcotráfico y al lavado de dinero y ante todo a aquellas personas responsables del suministro de la droga en la nación.
Detroit Man Sentenced to Three Years for Crack Distribution and ConspiracyRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Joiner, Jr., 30, of Detroit, Michigan was sentenced today to three years in prison and five years of supervised release for conspiring to distribute 28 grams or more of cocaine base, often referred to as crack cocaine, and distribution of crack cocaine. Joiner entered a guilty plea to the charges on May 29, 2015.
Court records reveal that between December 2013 and January 2015, Joiner conspired with others, including Russell Gordon and Marco Gordon, to sell crack cocaine in Portland. Russell Gordon would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors who would sell the drugs in the Portland area, and then return the cash proceeds to Russell Gordon. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from Joiner and other members of the conspiracy.
Russell Gordon and Marco Gordon have both entered guilty pleas and await sentencing.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation, the Portland Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The Biddeford and Lewiston Police Departments, the Maine Drug Enforcement Agency, and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defendant Vernon Dulei Was Today Sentenced in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam and the Northern Mariana Islands, announced that VERNON SABURO DULEI, was sentenced today, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to sixteen months incarceration, and five years of supervised release.
Defendant DULEI pled guilty on October 30, 2014 to one count of Failure to Register or Update Registration as a Sex Offender in violation of Title 18 U.S.C. Section 2250(a). Defendant DULEI, a Guam resident with a prior Criminal Sexual Conduct offense omitted to register or update his information with the Guam Sex Offender Registry for approximately seven months.
U.S. Attorney Limtiaco states, “Under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam or who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school -- they must also periodically update the registration information. The sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.” U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the United States Marshals Service. The case was handled by Assistant U.S. Attorney R. San Nicolas.
Convicted Felon Sentenced to Three Years for Possessing A FirearmRead the Press Release
Tampa, Florida – Senior U.S. District Judge Richard A. Lazzara today sentenced Cory Quintana, aka Corey Quintana, (24, Lakeland) to three years in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a Taurus .38-caliber revolver and 18 rounds of ammunition. He pleaded guilty on July 24, 2015.
According to court documents, approximately three months after his release from state prison with felony convictions for aggravated battery and aggravated assault, Quintana’s probation officer found him in possession of a firearm in violation of his probation order. Because of his prior felony convictions, Quintana also was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Polk County Sheriff’s Office joint Task Force, along with the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachel Jones.
Contractor Charged with $1.2 Million Fraud in Connection with Mechanicsburg Naval Facility ContractRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former U.S. Navy contractor has been indicted and arrested for submitting False Statements to the government and defrauding his subcontractors out of $1.2 million involving a project at the Naval Support Activity facility in Mechanicsburg.
According to United States Attorney Peter Smith, an Indictment by a grand jury in Harrisburg, filed with United States District Court today in Harrisburg, Andrew Persaud, age 43, of Mt. Holly Springs, Pennsylvania, was charged with making false statements to the government.
The Indictment alleges Persaud was the President and Corporate Director of Persaud Companies, Inc., a Virginia and Maryland based construction company that entered into a $4.4 million contract in 2011 to renovate warehouses at the Naval facility. Persaud hired approximately 17 sub-contractors to work on the project which began in May 2012.
In June and July of 2012 Persaud allegedly submitted invoices for progress payments to the Navy. In the documents Persaud certified that all of the subcontractors had been paid for their work on the project. Relying on the verity of Persaud’s representations, the Navy sent Persaud payments totaling $1,206,470 between June and August 2012.
By September 2012 most of the subcontractors had walked off the job site. The Navy terminated Persaud’s contract after it learned, contrary to Persaud’s certifications, that none of the subcontractors had received any payment for their work on the project.
Because the Navy had required Persaud to purchase a materials/labor bond, the subcontractors eventually received payments from the bond carrier totaling $1,281,753.
The Indictment alleges that the government is seeking forfeiture of the proceeds of the criminal conduct in the amount of $1,206,470.
No date has been set for Persaud’s arraignment on the charges.
The case was investigated by the Inspector General’s Offices of the US Navy and Department of Defense, and is being prosecuted by Assistant US Attorney Kim Douglas Daniel.
Indictments and Criminal 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 Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the offense is 10 years 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.
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Chesterfield Man Guilty of Producing Child Pornography of Local VictimRead the Press Release
RICHMOND, Va. – Zebulon Resolve Wendt, 34, of Chesterfield County, pleaded guilty today to producing child pornography of a local juvenile whom he had babysat and sexually abused and exploited on numerous occasions.
According to court documents, Canadian law enforcement detected Wendt after he uploaded several images of a juvenile female engaged in sexually explicit conduct from his Chesterfield residence to an Internet website. Federal agents with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), subsequently executed a search warrant at Wendt’s residence where they recovered several computers, external hard drives, and other computer equipment. A subsequent forensic examination of the seized items revealed thousands of images and videos of a juvenile female engaged in sexually explicit conduct that Wendt himself had taken with a digital camera and saved onto his computer equipment. Evidence showed that he then distributed these images and videos to other individuals over the Internet.
Wendt was charged by superseding indictment on July 7, 2015. Wendt faces mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison when sentenced on January 14, 2015, before U.S. District Judge Robert E. Payne. Upon release from prison, Wendt will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General of Virginia; and Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick C. Young. Special Assistant U.S. Attorneys Stacey E. Rohrs and Samuel E. Fishel of the Virginia Attorney General’s Office are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15cr095.
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Cedar Rapids Woman Sentenced to More Than Five Years’ in Prison for Tax Fraud and Identity TheftRead the Press Release
A woman who filed more than 150 fraudulent tax returns over a three year period and stole the identity of a woman to file a fraudulent tax return was sentenced on October 13, 2015, to more than five years in federal prison.
Gwendolyn Murray, age 34, from Cedar Rapids, Iowa, received the prison term after a June 8, 2015, guilty plea to one count of theft of government property and one count of aggravated identity theft.
In a plea agreement, Murray admitted she, without lawful authority, used another person’s name, social security number, and signature on a fraudulent tax return she filed in January 2012. Murray further admitted she then stole from the government more than $6,000 when she cashed the refund check. She also admitted to filing more than 150 fraudulent tax returns between April 2010 and April 2013, claiming refunds to which the taxpayer named in the return was not entitled. Her criminal activity resulted in the Internal Revenue Service paying out more than $350,000 in fraudulent tax refunds to her.
Murray was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Murray was sentenced to sixty-one months’ imprisonment. A special assessment of $200 was imposed, and she was ordered to make $386,515 in restitution to the Internal Revenue Service. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Special Agent Andrew M. Thornton, Special Agent in Charge of IRS Criminal Investigation. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers and undermines the U.S. Treasury.”
Murray was released on conditions of release previously set and is to surrender to the United States Marshal on November 3, 2015.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-00015.
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Bridgeport Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENZO CARTER, 20, of Bridgeport, pleaded guilty today in New Haven federal court to unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 8, 2015, law enforcement officers located a .22 caliber handgun that CARTER had placed on the tire of a vehicle parked on Trumbull Avenue in Bridgeport. Prior to that date, CARTER had been convicted of carrying a pistol without a permit and illegally receiving a pistol, both felony offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CARTER has been detained since his arrest on April 8. He faces a maximum term of imprisonment of 10 years when he is sentenced by U.S. District Judge Jeffrey Alker Meyer. A sentencing date has not been scheduled.
This matter is being investigated by the FBI Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Boeing Pays $18 Million to Settle False Claims Act AllegationsRead the Press Release
The Boeing Company has paid the United States $18 million to settle allegations that the company submitted false claims for labor charges on maintenance contracts with the U.S. Air Force for the C-17 Globemaster aircraft, the Justice Department announced today. Boeing, an aerospace and defense industry giant, is headquartered in Chicago.
“Defense contractors are required to obey the rules when billing for work performed on government contracts,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors meet their obligations and charge the government appropriately.”
The government alleged that Boeing improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing’s Long Beach Depot Center in Long Beach, California. The C-17 Globemaster aircraft, which is both manufactured and maintained by Boeing, is one of the military’s major systems for transporting troops and cargo throughout the world. The government alleged that the company knowingly charged the United States for time its mechanics spent on extended breaks and lunch hours, and not on maintenance and repair work properly chargeable to the contracts.
The allegations resolved by the settlement announced today were originally brought by former Boeing employee James Thomas Webb under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private individuals to sue on behalf of the government those who falsely claim federal funds, and to share in the recovery. Mr. Webb’s share of the settlement has not yet been determined.
The case was handled by the Civil Division’s Commercial Litigation Branch, the Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Defense Contract Audit Agency and the Defense Contract Management Agency.
The False Claims Act lawsuit is captioned United States ex rel. Webb v. The Boeing Company, CV13-000694 (C.D. Cal.). The claims resolved by today’s civil settlement are allegations only; there has been no determination of liability.
Baton Rouge man pleads guilty to role in Natchitoches bank fraud schemeRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Baton Rouge man pleaded guilty Tuesday to his role in a Natchitoches bank fraud scheme in which more than $305,000 was stolen.
Joe Lee Colbert Jr., 38, of Baton Rouge, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of conspiracy to commit bank fraud. According to evidence presented at the guilty plea, Colbert and bank branch manager Deirdre Christophe Nelson, 36, of Natchez, La., conspired to steal more than $305,000 from 2011 until July of 2014 from a Natchitoches bank. Nelson would steal cash money and issue money orders from the bank to be deposited into Colbert’s account. Nelson and bank teller Valerie K. Culpepper, 35, of Natchitoches, falsified bank records in order to hide the money that was stolen during that time period.
Colbert faces up to 30 years in prison, five years of supervised release, a $1 million fine, forfeiture and restitution. A sentencing date of January 22, 2016 was set.
Nelson pleaded guilty on September 10, 2015 to one count of conspiracy to commit bank fraud. She faces up to 30 years in prison, five years supervised release, a $1 million fine and restitution. A sentencing date of December 17, 2015 was set. Culpepper pleaded guilty on July 17, 2015 to one count of conspiracy to make false statements in bank records. She faces up to five years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of October 23, 2015 was set.
The FBI and conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
Albuquerque Man Arraigned on Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Pete Pasqual Chavez, 36, of Albuquerque, N.M., was arraigned this morning in federal court on an indictment charging him with being felon in possession of a firearm. Chavez entered a not guilty plea to the indictment and was ordered detained pending trial.
The indictment was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Chavez was arrested on Sept. 16, 2015, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Sept. 14, 2015, in Bernalillo County, N.M. The complaint alleges that on Sept. 14, 2015, officers of the Albuquerque Police Department (APD) responded to the La Quinta Inn on San Antonio Blvd. in Albuquerque after Chavez allegedly told hotel personnel that he had just shot a person who was breaking into his vehicle. Upon arrival, the APD officers found a firearm under Chavez’s vehicle. Thereafter the officers executed search warrants for Chavez’s hotel room and vehicle. In the vehicle, the officers allegedly found a single projectile that was removed from the inside of the passenger door and a box of Perfecta .45 caliber ammunition. In Chavez’s hotel room, the officers allegedly found four rounds of Perfecta .45 caliber ammunition. In the bushes outside Chavez’s room, the officers allegedly found a firearm loaded with ten rounds of Perfecta .45 caliber ammunition.
Chavez was indicted on Oct. 7, 2015, and charged with being a felon in possession of a firearm and ammunition.
At the time of his arrest, Chavez was prohibited from possessing firearms or ammunition, because he previously had been convicted of attempting to traffic a controlled substance with intent to distribute, possession of a controlled substance, tampering with evidence, shooting from or into a vehicle and use of a telephone to facilitate a drug trafficking crime.
If convicted of the crime charged in the indictment, Chavez faces a maximum penalty of ten years in federal prison. If the court determines that Chavez is an armed career criminal, he faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment. Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Arrestado Un Hombre De Bakersfield Con Cargos Contra El Crimen Del Odio, Posesión De Arma De Fuego Y Falso TestimonioRead the Press Release
BAKERSFIELD, California — Justin Whittington de 24 años y vecino de la localidad de Bakersfield fue detenido hoy por interferir con los derechos de vivienda de un persona por motivos de raza, color de piel, o origen nativo empleando el uso de la fuerza o amenaza de fuerza, el uso de armas de fuego durante un crimen violento, la posesión ilícita de un arma de fuego prohibida, y por hacer una declaración falsa dolosa a un agente especial de la Oficina Federal de Investigación (FBI), según comunicó el Teniente Jefe Auxiliar de la Procuraduría General Vanita Gupta, que encabeza la Sección para los Derechos Humanos del Departamento de Justicia, y el Fiscal de Los Estados Unidos Benjamín B. Wagner.
El 24 de septiembre del 2015, un gran jurado en los tribunales de la jurisdicción federal dictó el auto de procesamiento con cuatro acusaciones en el pliego de cargos que permanecía precintado después de la detención de Whittington. Según la acusación formal del 19 de diciembre del 2012, Whittington increpó a base de calumnias racistas y disparó a un hombre Latino con una escopeta recortada mientras que el hombre y su familia permanecían en el exterior del hogar familiar en Oildale. El auto de procesamiento alega que Whittington tomó acción en un intento de amenazar e interferir con la ocupación de vivienda de la victima por motivos de raza, color de piel u origen nativo.
Además, el auto declara que Whittington hizo declaraciones falsas a un agente del FBI cuando afirmó falsamente que en la tarde del incidente, había sido pagado por alguien para guardar la escopeta recortada en el maletero de su coche.
“El uso de violencia motivada por el racismo y las amenazas de violencia para intimidar a las personas en vinculación con sus preferencias de vivienda es un acto criminal,” dijo el Fiscal de los Estados Unidos Wagner. “El investigar y el procesar a aquellos que vulneran los derechos civiles de los demás continuarán siendo el núcleo de la misión de esta oficina.”
Este caso es el producto de una investigación de la Oficina Federal de Investigación (FBI) y de la Oficina del Sheriff del Condado de Kern. El Fiscal Auxiliar de los Estados Unidos Brian K. Delaney está procesando el caso con la asistencia del Abogado Litigante Samantha Trepel de la Sección de Derechos Civiles del Departamento de Justicia.
Si es declarado culpable, Whittington se enfrenta a una pena máxima establecida por la ley de cadena perpetua y una multa de $250,000. Aunque cualquier sentencia sería establecida a discreción por parte del tribunal después de considerar cualquier factor estatutario aplicable y consultar las Pautas Federales para Dictar Sentencia. Las acusaciones son solo alegaciones; el demandado es considerado inocente hasta y a menos que sea comprobado culpable sin caber duda razonable.
15 Savannah Residents Charged with Federal Firearm Drug Trafficking and Related OffensesRead the Press Release
SAVANNAH, GA – 15 Savannah residents were charged within the past week with federal firearms and drug-trafficking offenses as part of a joint federal and state violent-crime reduction initiative in the Savannah area. In addition to federal charges, 90 state arrests were made within the past two weeks during a state and federal operation to remove violent offenders, drugs and illegal weapons off of the streets of Savannah.
The Savannah residents charged within the past week with federal crimes include:
Shavar Spence, a/k/a “Veezy,” 31; charged with drug trafficking, possessing a firearm as a convicted felon and related crimes;
Antwan Leshawn Coley, a/k/a “Felix,” 32; charged with drug trafficking;
Braylon Williams, a/k/a “Little Gangster,” 20; charged with drug trafficking;
Lajordan Johnson, 22; charged with drug trafficking and possessing a firearm in furthering of drug trafficking;
Blanche Spence, 50; charged with drug trafficking and with maintaining a drug-related premises;
Charles Leonard Mobley, 21; charged with possessing a firearm as a convicted felon;
Miguel Antwan Mitchell, 28; charged with drug trafficking and possessing a firearm as a convicted felon;
Bruce Lloyd, 30; charged with drug trafficking and possessing a firearm as a convicted felon;
Brandon Anthony Adams, 28; charged with drug trafficking and possessing a firearm as a convicted felon;
Laron Allen, 28; charged with possessing a firearm as a convicted felon;
Kwesi Nkosi Chew, 28; charged with drug trafficking and possessing a firearm as a convicted felon;
Tsaddiq Ndesha Chew, 26; charged with drug trafficking and possessing a firearm as a convicted felon;
Rakeem Gallop, a/k/a “Slice,” 25; charged with drug trafficking and possessing a firearm as a convicted felon;
Michael Simpson, 51; charged with an attempted carjacking; and,
Todd Benjamin, a/k/a “Todd Royal,” 20; charged with an attempted carjacking.
U.S. Attorney Edward Tarver said, “Law enforcement’s top priority is the safety of our citizens. The U.S. Attorney’s Office will work hand in hand with our federal and state law enforcement partners to remove dangerous criminals who traffick in guns, drugs and fear in the Savannah area. Let me be clear. I believe that some people are dangerous and need to go to prison, sometimes for a very long time. But, arresting criminals is not the only answer to Savannah’s violent crime problem. The U.S. Attorney’s Office will continue to provide its support to a number of other anti-crime initiatives, including recidivism reduction campaigns and the City’s “Step Forward” strategy. Working together, we can end the violent crime problems plaguing the great city of Savannah.”
District Attorney Meg Heap stated, “I have said before that the key to the success of the Step Forward strategy is a consistent, collaborative effort from all stakeholders in Savannah and Chatham County. This recent effort is just one step in the journey to stop violence and develop long term positive change in our community. I want to commend the U.S. Attorney’s Office and all of the law enforcement agencies who were involved in this operation.”
Joseph H. Lumpkin, Sr., Chief of Police of the Savannah-Chatham Metropolitan Police Department said, “This is a great example of how collaborations between local, state and federal law enforcement agencies can effect real change in reducing violent crime. The goal of our “End Gun Violence: Step Forward” initiative is to target individuals such as these prohibited gun carriers as well as get illegal guns off the street. The citizens of Savannah and Chatham County can expect to see more of this focused teamwork and prosecution aimed at the .5% percent of our population who are engaged in gun violence and are creating fear in our neighborhoods.”
Mr. Tarver emphasized that criminal charges are accusations and are not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Tuesday 13 October 2015
Woman Sentenced to Federal Prison for O’Fallon Bank RobberyRead the Press Release
Denise K. Dodson, 45, of Troy, Illinois, was sentenced in the U.S. District Court to 70 months in prison for Conspiracy to Commit Bank Robbery and Bank Robbery in connection with the robbery of the May 2013 robbery of Scott Credit Union in O’Fallon, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. Following her prison sentence, Dodson will be on federal supervised release for 3 years. Dodson was also ordered to pay restitution in the amount of $101,532.
Documents filed in U.S. District Court establish that at noon on May 24, 2013, Denise Dodson drove her husband, Steven Dodson, to the Scott Credit Union to commit a bank robbery. As two employees of Scott Credit Union were filling the outside ATM with money, Steven Dodson approached them on foot wearing a flesh-colored mask and yelled "Get away." "I have a gun." The two women stepped back and Steven Dodson walked away from the credit union with the three "cassettes" containing $100,000 of United States currency. Denise Dodson picked Steven Dodson up a short distance from the Scott Credit Union and the two fled the area.
Steven Dodson was also charged and convicted for the bank robbery of Scott Credit Union. He was sentenced to 78 months imprisonment.
The case was investigated by the O’Fallon Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Wesson Man Pleads Guilty to Tampering with a Consumer ProductRead the Press Release
Jackson, Miss - Alfred Thornhill, 41, of Wesson, Mississippi, pled guilty on Tuesday, October 13, 2015, before U.S. District Judge Daniel P. Jordan III, to tampering with a consumer product, announced U.S. Attorney Gregory K. Davis and Patrick Munday, Acting Special Agent in Charge, USDA - Office of Inspector General (OIG).
Thornhill was employed at a dairy farm near Crystal Springs, Mississippi, when he poured chlorine, acid and bleach into a stainless steel container of milk right after the milk had been collected from the cows on March 28, 2014. The toxic chemicals were discovered in the milk by the farm’s owner just before the milk was to be picked up for transportation to a distribution center in New Orleans. The contents of the caustic agents were confirmed by a lab analysis conducted at Mississippi State University.
According to evidence disclosed during the guilty plea hearing, Thornhill confessed to USDA-OIG Special Agents that he poisoned the milk because he was angry at the dairy farm owner and intended to ruin the milk in order to financially harm the dairy farmer.
Acting USDA-OIG Special Agent in Charge Patrick Munday stated: "USDA-OIG is committed to identifying individuals committing these types of senseless acts that could potentially affect the health and well-being of the American public and seek prosecutions to the fullest extent of the law. This case was conducted jointly with the Mississippi Agriculture Theft Bureau and is an example of the results we can achieve by working with our law enforcement partners."
Thornhill will be sentenced on January 19, 2016 at 9:00 am by U.S. District Judge Daniel P. Jordan, III. He faces a maximum penalty of three years in federal prison and a $250,000 fine, as well as payment of restitution to the dairy farm.
This case was investigated by the USDA- OIG and the Mississippi Agriculture Theft Bureau. The case was prosecuted by Assistant United States Attorney Scott Gilbert.
United States Settles with Pitney Bowes Presort Services for Underpaying Postage Owed to U.S. Postal ServiceRead the Press Release
The Department of Justice announced today that Pitney Bowes Presort Services Inc. (Pitney Bowes) has agreed to pay the United States $9.4 million to resolve allegations that it underpaid postage for mail processed at its Reading, Pennsylvania, facility by claiming discounts to which it was not entitled. Pitney Bowes, which is based in Omaha, Nebraska, helps prepare mailings for large mailers by, among other things, gathering, sorting and presenting the mail to the U.S. Postal Service.
“Those who obtain government benefits are expected to comply with the terms of those benefits,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This settlement demonstrates that there will be consequences for those who do not live up to their obligations.”
The settlement announced today resolves allegations that Pitney Bowes claimed discounted postage rates for mail that failed to comply with the Move Update standard, which requires that mail be updated with change-of-address information provided by the Postal Service. Pitney Bowes was obligated to ensure that mail it submitted on behalf of its customers at discounted postage rates complied with Move Update, by either updating addresses on the mail directly or having its customers perform the updates. The Postal Service offered lower postage rates to Pitney Bowes for complying with Move Update and other requirements.
“When mailers don’t adhere to Move Update standards it negatively affects the entire mailing community,” said Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service’s (USPIS) Philadelphia Division. “The U.S. Postal Inspection Service will continue to investigate mailers who fail to comply with postal regulations.”
This matter was jointly investigated by USPIS and the Civil Division’s Commercial Litigation Branch. The claims settled in this case are allegations only, and there has been no determination of liability.
United States Attorney’s Office announces demolition of Outlaw motorcycle gang clubhouseRead the Press Release
INDIANAPOLIS- United States Attorney Josh Minkler and United States Marshal Kerry Forestal announced today the demolition of three buildings that the Outlaws Motorcycle Club (OMC) used as a compound to facilitate their illegal activity. The first building, located at 305 North Jefferson Avenue, served as the clubhouse for the OMC for several decades. The second building, located at 2204 East New York Street, served as the bunkhouse for the OMC for several decades. The third building, located at 2210 East New York Street, housed members of the OMC for several years. All three properties are being razed by contractors through the United States Marshal’s Office.
“This clubhouse has long been the epicenter of criminal activity for the Outlaws in Indianapolis,” said Minkler. “It was the ‘safe house’ the Outlaws ran their criminal enterprise from and the residential face of organized crime.”
Fifty-one defendants were indicted following an organized crime investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service, and Indianapolis Metropolitan Police Department. The indicted defendants included all fifteen members of the Indianapolis chapter of the OMC, two members of the Fort Wayne chapter of the OMC, one member of the Sandusky, Ohio chapter of the OMC, and one former member of the Indianapolis chapter of the OMC. All of the OMC members were charged and convicted of violations of the Racketeer Influenced and Corrupt Organization (“RICO”) statute, as well as offenses such as mail fraud, wire fraud, money laundering, extortion, drug trafficking, witness tampering, and illegal gambling. Forty-nine of the fifty-one defendants have been sentenced. Two low-level members of the Mexican drug trafficking organization who supplied the OMC with cocaine were deported before the indictment and have not been extradited from Mexico.
The government initiated the forfeiture proceedings against the three properties in the original indictment on July 2, 2012. The forfeiture became appropriate because the properties provided the indicted members of the OMC with a source of influence over the criminal enterprise (the OMC). Judge Tanya Walton Pratt initially dismissed challenges to the forfeiture on August 15, 2014. Associates of the OMC, however, appealed Judge Pratt’s ruling to the Seventh Circuit Court of Appeals. After the Seventh Circuit upheld Judge Pratt’s dismissal of these challenges, the forfeitures became final on July 9, 2015.
The United States Marshals Service took custody of the properties in mid-September, 2015. They have managed the properties until today’s demolition of the properties. The USMS serves as the primary custodian of federally seized property and plays a critical role in managing and selling assets seized and forfeited by federal law enforcement agencies.
“The combined efforts of all levels of law enforcement were essential to remove this deeply entrenched organized crime motorcycle gang from our community,” said U.S. Marshal Kerry J. Forestal. “The demolition of their Indianapolis-based club house is not your tax dollars at work. The funds expended were those seized from other criminals and fraudsters used for the betterment and safety of our community.”
FBI Special Agent in Charge W. Jay Abbott said, “Today’s demolition plays a significant role as it eliminates this long-standing structure which has been the focal point of criminal activity for years.”
“Our continued efforts to disrupt and dismantle organized crime groups like the Outlaw Motorcycle Gang does not stop with taking them off the streets,” said Stephen Boyd, Special Agent in Charge, Chicago Field Office. “In this instance, it has led to the destruction of an asset acquired as a result of their crimes.”
The structures from all three properties will be demolished and the land near the intersection of New York Street and Jefferson Avenue will be donated to the City of Indianapolis for the benefit of the community.
Drug and Violent Crime Chief Bradley A. Blackington prosecuted this case for the government.
Two Plead Guilty to Credit Card ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Chernoh A. Jalloh, age 28, and Abraham B. Freeman, age 30, both of Philadelphia, Pennsylvania, pled guilty today in federal court in Greenville, to a conspiracy to defraud, a violation of Title 18, United States Code, Section 1029(b)(2). United States District Judge Bruce Howe Hendricks, of Greenville accepted the pleas and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on August 24, 2015, Jalloh and Freeman’s vehicle was stopped on Interstate 85 for a traffic infraction. Upon approaching the vehicle, law enforcement observed the smell of marijuana emanating from the vehicle and conducted a search.
During the search of the vehicle, officers located more than 90 credit and debit/gift cards secreted in various locations throughout the vehicle. Of these cards, at least twenty-three (23) were embossed with Jalloh’s name. Eight (8) of the cards were located in a wallet which was in the vehicle seat which Freeman had occupied. Of these eight (8) cards, five (5) were embossed with Freeman’s name.
In the vehicle, officers also discovered a laptop computer and a device capable of encoding the magnetic stripe data on credit, debit, and similar magnetic-striped cards.
All of the twenty-three (23) cards embossed with Jalloh’s name were found to be encoded with magnetic stripe data that did not match the number embossed on the cards. All of the eight (8) cards found in Freeman’s wallet, including the five (5) cards embossed with Freeman’s name, were also found to be encoded with magnetic stripe data that did not match the number embossed on the cards. Law enforcement estimates that over $40,000 in fraudulent transactions are connected to the counterfeit and altered cards found in the vehicle.
Mr. Nettles stated the maximum penalty the Defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations, and the Greenville County Sheriff’s Office. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Third Case Filed in Federal Court for Arson During Baltimore RiotRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Donta Betts, age 19, of Baltimore, with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. The criminal complaint was filed on October 6, 2015 and unsealed today. Betts was arrested on July 7, 2015, on unrelated state charges. Betts will make his initial appearance on the federal charges on Friday, October 23, 2015 at 11:00 a.m. in U.S. District Court in Baltimore.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Interim Commissioner Kevin Davis of the Baltimore Police Department.
“The rule of law must be upheld, and criminals who destroy property and jeopardize lives must be held accountable,” said U.S. Attorney Rod J. Rosenstein. “Recordings from public and private surveillance cameras allow police and prosecutors to identify suspects and prosecute them even when immediate arrests are not possible.”
“These violent acts endangered the safety of dozens of officers and citizens in the area that day,” said ATF Special Agent in Charge William P. McMullan. “ATF is committed to making sure that the perpetrators of these acts are held responsible and we will continue to investigate anyone who threatens the well-being of our community.”
On April 27, 2015, riots and widespread looting erupted in Baltimore. The CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned.
According to the affidavit filed in support of the criminal complaint, at 4:49 p.m. that day, Baltimore CitiWatch surveillance footage captured an individual removing the gas cap from a Baltimore Police cruiser, then placing a piece of flammable material into the fuel filler pipe, and igniting the material.
At 5:43 p.m., additional surveillance footage and still photos taken by the media covering the riots captured an assemblage of propane cylinders and charcoal briquettes approximately 10 to 12 feet from the curb directly outside the main entrance to CVS. The individual is captured setting fire to a roll of toilet paper and placing it on top of the propane cylinders and charcoal briquettes. The individual can be seen a few minutes later squirting lighter fluid onto the burning roll of toilet paper atop the incendiary materials. At approximately 5:49 p.m., the individual is seen running away from the improvised incendiary device that he made as it burned in the street. At approximately 5:58 p.m., the improvised incendiary device exploded approximately 40 feet in front of a Baltimore Police riot line that had assembled across Pennsylvania Avenue just north the front entrance of CVS. ATF investigators have determined that the explosion resulted in flying debris of large metal fragments from the propane cylinders and a large fireball with blast effects felt by nearby by-standers.
Additional surveillance footage showed the individual inside the CVS and exiting the store carrying items; throwing rocks at police; and attempting to tip over MTA vehicles while encouraging others to join him.
According to the affidavit, further investigation identified the individual seen in the CitiWatch surveillance camera footage as Donta Betts.
Betts faces a mandatory minimum sentence of five years in prison, and a maximum of 20 years in prison for attempted arson; five years in prison for civil disorder; and 10 years in prison for the unlawful making of a destructive device. Betts remains detained.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
Federal prosecutors previously have charged two other defendants for arson crimes committed during the Baltimore riot on April 27, 2015. Darius Raymond Stewart is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter pleaded guilty to the federal crime of rioting, including the arson of the CVS pharmacy on Pennsylvania Avenue.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Matthew J. Maddox , who are prosecuting the case.
Rocky Boy Health Clinic Pharmacist Pleads Guilty to False Income Tax Returns and Is Remanded into CustodyRead the Press Release
GREAT FALLS –The United States Attorney’s Office announced that DARIN LEE MILLER, 43, of Havre, Montana, pleaded guilty during a federal court hearing in Great Falls, Montana, on October 13, 2015, before U.S. District Judge Brian M. Morris, to filing false federal income tax returns in which he did not report the interest he received from extensive tribal loans. In a plea agreement with the United States, Miller will serve a sentence of nine months in jail, pay a $90,000 fine, and pay the Internal Revenue Service $73,125.50 in taxes, penalties and interest within 18 months of his sentence. Although the government presented the plea agreement as conditioned upon Miller receiving that sentence, Judge Morris ordered a presentence investigation and set sentencing for January 21, 2016. Judge Morris may at that time reject the plea agreement and allow Miller to proceed to trial on felony charges of tax evasion.
During the period of the Superseding Information, Darin Miller was a pharmacist at the Rocky Boy Health Clinic (RBHC or the Clinic). The psychologist at the Clinic was Dr. James Eastlick.
Eastlick operated a loan program—called the JE Loan Program—with the Chippewa Cree Tribe, wherein he loaned money both to the Tribe in large amounts and to individual tribal employees in smaller amounts. After a couple of years running the loan program, Eastlick brought in Miller as a partner with the intention of turning the business over to Miller. The loans Eastlick made for the Tribe generally included interest rates of 10%, and were paid back within 10 weeks of Eastlick loaning the money. On an annualized percentage rate (APR) basis, loans from the JE Loan program would constitute a 70% to 80% return.
With regard to the loans to the tribal employees, Eastlick and Miller had an arrangement with the Tribe that they would provide loans to tribal employees, and to guarantee the repayment of those debts, money would be taken from the employee’s paycheck, consolidated with other debtors of the JE Loan program, and then tribal checks would be regularly issued to Eastlick and Miller representing both interest and principal. The JE Loan Program had a similar working relationship with the Finance Offices of the Tribe’s various subsidiary enterprises, such as the Rocky Boy Health Clinic and the Rocky Boy’s School District, which handle their payroll internally and not through the Tribe’s main finance office. These loans were also short-term loans that carried an interest rate of between 10% and 15%; with an annualized rate being significantly higher—75% to 100% return if the loans were calculated over the full year.
Both Eastlick and Miller were responsible for their own tax liability for the interest income they earned. Miller claimed $10,000 of interest income on his 2010 tax return, but did not claim interest income from the tribal loan program on any other years. Once under investigation, Miller sought the services of a Great Falls accountant to amend his returns to include interest from the lending business. Miller told the accountant, at the time he originally filed his returns, he did not think he had to claim the interest income until he used it. However, Miller had claimed interest income from other sources and had claimed interest income on his prior years’ tax returns and even the returns filed for the tax years under investigation—2009, 2010, and 2011.
The amounts of unreported interest income were significant. Miller earned $17,148.68, $76,373.37, and $23,378.17 in interest income from tribal loans in 2009, 2010, and 2011 respectively. According to the accountant, Miller had not kept track of the interest in the tax years in which it was realized and Miller and his accountant had to retrieve records from the Tribe to have his tax returns amended. Even when amended, Miller’s returns failed to account for significant interest received.
According to the accountant, Miller did not reveal that at some point during these years he increased the interest rate he charged for individual loans from 10% to 12.5% until after the amended returns had been prepared. It would have been important for a tax preparer to know that interest rate had been increased to 12.5% in order to accurately amend Miller’s tax returns. Eastlick also knew Miller had increased the interest rate he charged to 12.5% when he took over the loan program with the CCT. Some employees of the RBHC and loan recipients also verified Miller raised his interest rate to 12.5%.
Miller had a bank account with Wells Fargo Bank. From 2009, when Miller first became involved with Eastlick’s loan program, and 2011, Miller deposited $635,818.48 in tribal loan checks into his Wells Fargo Bank account. This figure does not include any checks Miller transacted into cash at Wells Fargo. In addition to the bank account with Wells Fargo, during the same time period, Miller cashed $71,109.53 in checks at Leon’s Buy & Sell and another $142,042.87 at Leon’s Finance, businesses operated by Havre businessman, Shad Huston.
Miller’s conviction on tax charges is the latest in a series of prosecutions brought and convictions obtained by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.
Once Miller plead guilty to the tax charges, the Court remanded him into custody to begin serving the sentence outlined in the agreement.
Princeton area man pleads guilty to role in hydromorphone conspiracyRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that Peter B. McKinley, Jr., 32, of Princeton, West Virginia, plead guilty in federal court in Bluefield to conspiracy to distribute hydromorphone. McKinley admitted that from July of 2014 to September of 2015, he and a co-defendant used the mail to ship and receive hydromorphone. McKinley received the drugs in packages mailed from Los Angeles, California. He then sold the pills in and around Bluefield and Princeton, West Virginia. After the sales, McKinley admitted that he mailed packages containing drug proceeds back to California. During the investigation of the case, agents seized over 2,500 hydromorphone pills and approximately $19,000 in cash.
McKinley faces up to 20 years in prison and a $1,000,000 fine. United States District Judge David A. Faber scheduled the sentencing for February 17, 2015.
The Southern Regional Drug and Violent Crime Task Force and the United States Postal Service conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. 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.
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Owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, Charged with Wire Fraud and Money LaunderingRead the Press Release
Fraudulent Investment scam resulted in $1,370,000 loss to eleven partners
BOWLING GREEN, Ky. – The owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, was charged by grand jury indictment on September 9, 2015 with wire fraud and money laundering for a scheme that cost investors $1,370,000 announced U.S. Attorney John E. Kuhn, Jr. The indictment was unsealed on October 5, 2015.
Clay Shelton, 46, of Bowling Green, was charged with three counts of wire fraud and six counts of money laundering for devising a scheme that fraudulently obtained money from eleven investors.
According to the indictment, between March 2011 and September 2012, Shelton created Monterey Pipeline Partners, LLC, purportedly to purchase the Monterey Pipeline in Tennessee. Shelton also operated Escrow 2011 LP, an investment partnership he created to fund an escrow account to purchase and operate the Monterey (gas) Pipeline. Further, Shelton operated Brakaw Energy Management LLC, which was created by Shelton to manage and operate the Monterey Pipeline once he completed the purchase.
From March 2011 through September 2012, Shelton solicited $1,370,000 from eleven investors for the purchase of the Monterey Pipeline. He fraudulently represented to the investors that their funds would be held in escrow as a down payment until he was able to complete financing to purchase the Monterey Pipeline (about 60 days). Once the loan closed, investors would receive either a 25 percent return on their investment or Monterey Pipeline would buy their interest in any Tennessee well program they previously purchased through U.S. Energy Partners. Investors were, therefore, assured they would receive their investment back in at least 60 days and that their investment would be held in escrow.
According to the indictment, Shelton misappropriated $1,000,000 of investor funds, which were wired into Escrow 2011, by investing the majority in collateralized mortgage obligations. An additional $125,000 of investor funds deposited into the Escrow 2011 fund were used to pay operating and business expenses of U.S. Energy Partners. Another $245,000 of investor funds initially deposited into the Monterey Pipeline Partners LLC’s account were used to pay Brakaw and U.S. Energy Partners’ operating and business expenses and other miscellaneous expenses.
If convicted at trial, Shelton could be sentenced to no more than 20 years per count for counts one through three and no more than ten years per count, for counts four through nine. Further, Shelton could be required to pay a fine of $2,250,000 and serve a 27 year period of supervised release.
This case in being prosecuted by Assistant United States Attorney Bryan Calhoun and is being investigated by the IRS Criminal Investigation Division.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.