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Tuesday 13 October 2015
Chinese National Sentenced for Access Device Fraud and Aggravated Identity TheftRead the Press Release
Shu K. Chen, 38, from the People’s Republic of China, was sentenced to 31 months in prison for his convictions for Conspiracy to Commit Wire Fraud and Aggravated Identity Theft, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Chen was also ordered to serve three years supervised release and pay restitution totaling $22,137.40 to nineteen area financial institutions.
Chen was originally arrested by the Collinsville Police Department on December 12, 2014, at the Walmart store in Collinsville, Illinois, for using counterfeit credit cards to fraudulently purchase gift cards. Further investigation revealed that Chen had also used counterfeit credit cards the day before at the same Walmart and that he was traveling around the area with another individual. Chen had used counterfeit credit cards to make purchases at least twenty-six retail locations in this area and in Missouri. The credit cards were encoded on the magnetic strip with legitimate credit card account numbers of area residents who were victimized. Chen provided a false New Jersey driver’s license at the time of the arrest in the name of Chang Zhang, which was the name embossed on the front of the counterfeit credit cards.
The successful prosecution is the result of an investigation conducted by the Secret Service, the Internal Revenue Service/Criminal Investigation, and the Collinsville Police Department with the assistance of other local police departments and the Madison County State’s Attorney’s Office. The prosecution of the case was handled by Assistant U.S. Attorney Norman R. Smith.
Charleston man pleads guilty to illegal possession of a firearmRead the Press Release
Charleston, WV – A Charleston man pleaded guilty today to illegally possessing a firearm after being convicted of a felony, announced U.S. Attorney Booth Goodwin. John Stanley Ford, 25, pleaded guilty in federal court in Charleston.
Ford admitted that on February 26, 2014, he possessed a firearm that he threw in the bushes when he was approached by Charleston Police Department officers. Ford was previously convicted of Wanton Endangerment in Kanawha County Circuit Court, and his rights to possess a firearm had not been restored. Ford faces up to 10 years in prison when he is sentenced on January 12, 2016.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Centralia Woman Sentenced on Drug Conspiracy ChargeRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Katelyn Woolever, a.k.a. "Baby K," 21, of Centralia, Illinois, was sentenced today to 6 years in federal prison, to be followed by 5 years of supervised release, $400 fine and a $200 special assessment. There is no parole in the federal system. Sentencing followed Woolever’s June 25, 2015, guilty plea to Conspiracy to Manufacture and Distribute Methamphetamine, and Possession of Pseudoephedrine Knowing It Would Be Used to Manufacture Methamphetamine.
According to court documents, from approximately December 2012, to February 21, 2014, in Marion, Clinton and Jefferson Counties, Woolever agreed to, and did, provide pills containing pseudoephedrine to others knowing it would be used to manufacture methamphetamine in order to support her own drug habit and to make extra cash.
Information leading to the conviction of Woolever was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Carlsbad Woman Sentenced to 41 months for $4.6 Million Fraud SchemeRead the Press Release
Assistant U. S. Attorney Benjamin Holley (619) 546-7952
NEWS RELEASE SUMMARY – October 13, 2015
SAN DIEGO – Susan Polmar of Carlsbad was sentenced in federal court today to 41 months in custody for stealing more than $4.6 million in a wire fraud scheme spanning six years.
As detailed in court filings, Polmar, a small-business owner, created a kiting scheme in which she submitted false customer information to a payment processing company, received advanced payment, and then covered the resulting debit by creating yet more fraudulent customer data. She then took money from the falsely inflated business accounts to fund numerous luxuries, including spending over $33,000 on trips to Disneyland and over $130,000 in construction on her Carlsbad home. Her fraud continued from 2007 through 2013, when it was discovered by an internal audit conducted by the owners of the payment processing company Polmar used.
The federal investigation, led by agents and detectives of the United States Secret Service’s San Diego Regional Fraud Task Force, revealed that the scheme required near-daily action by Polmar to maintain and that, over the course of her fraud, Polmar’s non-sufficient fund payments (from which she skimmed money for her personal and business use) totaled approximately $865 million.
During the sentencing hearing, Polmar also admitted that, after the investigation into her fraudulent conduct began but before she pleaded guilty, she defrauded the Pacific Rim PTA (of which she was then-President) by submitting false invoices for reimbursement totaling $3,700. After that fraud was discovered, Polmar repaid the money to the PTA.
At the sentencing hearing, United States District Court Judge Larry Alan Burns noted that Polmar had many positive qualities, including a supportive family and no criminal record. But, the judge said, the fact that Polmar stole millions of dollars for her personal expenses, especially when combined with her continued financial fraud after knowing of the federal investigation, justified a severe sanction. He accordingly imposed a 41-month prison sentence, to be followed by three years of supervised release. The judge also ordered Polmar to repay $4,655,464.34. At the conclusion of the hearing, Polmar was remanded into custody to begin serving her sentence.
DEFENDANT Case Number: 15CR1075-LAB
Susan Polmar Age: 47
SUMMARY OF CHARGE
Wire Fraud, in violation of Title 18, United States Code, Section 1343
Maximum penalty: 20 years
AGENCY
United States Secret Service
Cancer Research Doctor Sentenced for TheftRead the Press Release
PHILADELPHIA - Steven W. Johnson, Ph.D., 50, of Elkins Park, PA, was sentenced today to 12 months and one day in prison for theft from a program receiving federal funds. Johnson pleaded guilty on April 30, 2015 to one count of misusing federal funds for cancer research to conduct a for-profit business. In addition to the prison term, U.S. District Court Judge Paul S. Diamond also ordered Dr. Johnson to pay restitution of $69,379.02 and a $100 special assessment.
Dr. Johnson was an employee of the University of Pennsylvania, in its School of Medicine, from approximately October 1998 to February 2010. Dr. Johnson conducted cancer research. For some of his research activities, Dr. Johnson would need to test or “validate” (or to have another University of Pennsylvania employee validate for him) presumptive oligonucleotide “primers,” which are used to identify gene expression patterns. The process of validating oligonucleotide primers requires expertise, time, effort, and specialized equipment, including a polymerase chain reaction (“PCR”) machine. In approximately August 2005, while an employee of the University of Pennsylvania, Dr. Johnson started a for-profit company, which advertised human, mouse, and rat validated primers for sale. (The University had no knowledge of Dr. Johnson’s for-profit company.) In approximately 2006, while an employee of the University of Pennsylvania, Dr. Johnson applied for a federal grant from the Department of Defense (“DOD”) to study a new approach to treating ovarian cancer. Between 2007 and 2009, Dr. Johnson purchased thousands of unvalidated oligonucleotide primers, which were charged to the federal grant. Dr. Johnson used the University of Pennsylvania’s laboratory equipment, including a polymerase chain reaction (“PCR”) machine, which also had been purchased with federal grant funds, to test, or “validate,” the primers. Johnson then sold the validated primers to customers of his for-profit company.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Karen L. Grigsby.
Bugat Botnet Administrator Arrested and Malware DisabledRead the Press Release
WASHINGTON – A sophisticated malware package designed to steal banking and other credentials from infected computers has been disrupted, and charges have been filed in the Western District of Pennsylvania against a Moldovan administrator of the botnet known as “Bugat,” “Cridex” or “Dridex.” Actions taken by the U.K. and the U.S. substantially disrupted the botnet.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Division made the announcement today.
Andrey Ghinkul, aka Andrei Ghincul and Smilex, 30, of Moldova, was charged in a nine-count indictment unsealed today in the Western District of Pennsylvania with criminal conspiracy, unauthorized computer access with intent to defraud, damaging a computer, wire fraud and bank fraud. Ghinkul was arrested on Aug. 28, 2015 in Cyprus. The United States is seeking his extradition.
“The steps announced today are another example of our global and innovative approach to combatting cybercrime,” said Assistant Attorney General Caldwell. “Our relationships with counterparts all around the world are helping us go after both malicious hackers and their malware. The Bugat/Dridex botnet, run by criminals in Moldova and elsewhere, harmed American citizens and entities. With our partners here and overseas, we will shut down these cross-border criminal schemes.”
“Through a technical disruption and criminal indictment we have struck a blow to one of the most pernicious malware threats in the world,” said U.S. Attorney Hickton.
“Cyber criminals often reach across international borders, but this operation demonstrates our determination to shut them down no matter where they are,” said Executive Assistant Director Robert Anderson Jr. of the FBI’s Criminal, Cyber, Response and Services Branch. “The criminal charges announced today would not have been possible without the cooperation of our partners in international law enforcement and private sector. We continue to strengthen those relationships and find innovative ways to counter cyber criminals.”
According to the indictment, Ghinkul was part of a criminal conspiracy that disseminated Bugat, which is a multifunction malware package that automates the theft of confidential personal and financial information, such as online banking credentials, from infected computers through the use of keystroke logging and web injects. It is generally distributed through “phishing,” an email fraud method where legitimate-looking emails are distributed to victims in an attempt to obtain personal or financial information. Bugat is specifically designed to defeat antivirus and other protective measures employed by victims. The FBI estimates at least $10 million in direct loss domestically can be attributed to Bugat.
The indictment alleges that Ghinkul and his co-conspirators used the malware to steal banking credentials and then, using the stolen credentials, to initiate fraudulent electronic funds transfers of millions of dollars from the victims’ bank accounts into the accounts of money mules, who further transferred the stolen funds to other members of the conspiracy. Specifically, according to the indictment, on Dec. 16, 2011, Ghinkul and others allegedly attempted to cause the electronic transfer of $999,000 from the Sharon, Pennsylvania, City School District’s account at First National Bank to an account in Kiev, Ukraine, using account information obtained through a phishing email. In addition, Ghinkul and others allegedly caused the international transfer on Aug. 31, 2012, of $2,158,600 from a Penneco Oil account at First Commonwealth Bank to an account in Krasnodar, Russia, and the international transfer on Sept. 4, 2012, of $1,350,000 from a Penneco Oil account at First Commonwealth Bank to an account in Minsk, Belarus. Finally, the indictment alleges that on Sept. 4, 2012, Ghinkul attempted to cause the electronic transfer of $76,520 from a Penneco Oil account at First Commonwealth Bank to an account in Philadelphia. In all three instances, the company’s account information was allegedly obtained through a phishing email sent to a Penneco Oil employee.
In addition to the criminal charges announced today, the United States obtained a civil injunction in the Western District of Pennsylvania authorizing the FBI to take measures to redirect automated requests by victim computers for additional instructions to substitute servers.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Other agencies and organizations partnering in this effort include: the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the United Kingdom’s National Crime Agency, Europol’s EC3, German Bundeskriminalamt (BKA), Dell SecureWorks, Fox-IT, S21sec, Abuse.ch, the Shadowserver Foundation, Spamhaus and the Moldovan General Inspectorate of Police Centre for Combating Cyber Crime, the Prosecutor General’s Office Cyber Crimes Unit and the Ministry of Interior Forensics Unit.
The case is being prosecuted by Assistant U.S. Attorneys Mary McKeen Houghton and Margaret E. Picking of the Western District of Pennsylvania. The civil action to disrupt the Bugat malware is led by Senior Trial Attorney Richard D. Green of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs provided significant assistance throughout the criminal and civil investigations.
Victims of Bugat/Dridex may use the following webpage created by US-CERT for assistance in removing the malware: https://www.us-cert.gov/dridex.
AttachmentsIndictment
Bugat Botnet Administrator Arrested and Malware DisabledRead the Press Release
A sophisticated malware package designed to steal banking and other credentials from infected computers has been disrupted, and charges have been filed in the Western District of Pennsylvania against a Moldovan administrator of the botnet known as “Bugat,” “Cridex” or “Dridex.” Actions taken by the U.K. and the U.S. substantially disrupted the botnet.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Division made the announcement today.
Andrey Ghinkul, aka Andrei Ghincul and Smilex, 30, of Moldova, was charged in a nine-count indictment unsealed today in the Western District of Pennsylvania with criminal conspiracy, unauthorized computer access with intent to defraud, damaging a computer, wire fraud and bank fraud. Ghinkul was arrested on Aug. 28, 2015 in Cyprus. The United States is seeking his extradition.
“The steps announced today are another example of our global and innovative approach to combatting cybercrime,” said Assistant Attorney General Caldwell. “Our relationships with counterparts all around the world are helping us go after both malicious hackers and their malware. The Bugat/Dridex botnet, run by criminals in Moldova and elsewhere, harmed American citizens and entities. With our partners here and overseas, we will shut down these cross-border criminal schemes.”
“Through a technical disruption and criminal indictment we have struck a blow to one of the most pernicious malware threats in the world,” said U.S. Attorney Hickton.
“Cyber criminals often reach across international borders, but this operation demonstrates our determination to shut them down no matter where they are,” said Executive Assistant Director Robert Anderson Jr. of the FBI’s Criminal, Cyber, Response and Services Branch. “The criminal charges announced today would not have been possible without the cooperation of our partners in international law enforcement and private sector. We continue to strengthen those relationships and find innovative ways to counter cyber criminals.”
According to the indictment, Ghinkul was part of a criminal conspiracy that disseminated Bugat, which is a multifunction malware package that automates the theft of confidential personal and financial information, such as online banking credentials, from infected computers through the use of keystroke logging and web injects. It is generally distributed through “phishing,” an email fraud method where legitimate-looking emails are distributed to victims in an attempt to obtain personal or financial information. Bugat is specifically designed to defeat antivirus and other protective measures employed by victims. The FBI estimates at least $10 million in direct loss domestically can be attributed to Bugat.
The indictment alleges that Ghinkul and his co-conspirators used the malware to steal banking credentials and then, using the stolen credentials, to initiate fraudulent electronic funds transfers of millions of dollars from the victims’ bank accounts into the accounts of money mules, who further transferred the stolen funds to other members of the conspiracy. Specifically, according to the indictment, on Dec. 16, 2011, Ghinkul and others allegedly attempted to cause the electronic transfer of $999,000 from the Sharon, Pennsylvania, City School District’s account at First National Bank to an account in Kiev, Ukraine, using account information obtained through a phishing email. In addition, Ghinkul and others allegedly caused the international transfer on Aug. 31, 2012, of $2,158,600 from a Penneco Oil account at First Commonwealth Bank to an account in Krasnodar, Russia, and the international transfer on Sept. 4, 2012, of $1,350,000 from a Penneco Oil account at First Commonwealth Bank to an account in Minsk, Belarus. Finally, the indictment alleges that on Sept. 4, 2012, Ghinkul attempted to cause the electronic transfer of $76,520 from a Penneco Oil account at First Commonwealth Bank to an account in Philadelphia. In all three instances, the company’s account information was allegedly obtained through a phishing email sent to a Penneco Oil employee.
In addition to the criminal charges announced today, the United States obtained a civil injunction in the Western District of Pennsylvania authorizing the FBI to take measures to redirect automated requests by victim computers for additional instructions to substitute servers.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Other agencies and organizations partnering in this effort include: the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the United Kingdom’s National Crime Agency, Europol’s EC3, German Bundeskriminalamt (BKA), Dell SecureWorks, Fox-IT, S21sec, Abuse.ch, the Shadowserver Foundation, Spamhaus and the Moldovan General Inspectorate of Police Centre for Combating Cyber Crime, the Prosecutor General’s Office Cyber Crimes Unit and the Ministry of Interior Forensics Unit.
The case is being prosecuted by Assistant U.S. Attorneys Mary McKeen Houghton and Margaret E. Picking of the Western District of Pennsylvania. The civil action to disrupt the Bugat malware is led by Senior Trial Attorney Richard D. Green of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania. The Criminal Division’s Office of International Affairs provided significant assistance throughout the criminal and civil investigations.
Victims of Bugat/Dridex may use the following webpage created by US-CERT for assistance in removing the malware: https://www.us-cert.gov/dridex.
Ghinkul Indictment
Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to review the court documents below for notice of the full contents of the orders.
Ghinkul Complaint
Government's Motion for Leave to File Under Seal
Memorandum of Law in Support of Motion For Temporary Restraining Order
Motion for Temporary Restraining Order
Order to File Under Seal
Temporary Restraining Order
Special Agent Stevens Affidavit in Support of Temporary Restraining Order
Motion to Modify Preliminary Injunction
Amended Preliminary Injunction
Buffalo Woman Sentenced for Oxycodone SalesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Michelle S. Kidd, 39, of Buffalo, New York, who was convicted of oxycodone distribution, was sentenced to one year and one day imprisonment by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on four dates between August 2014 and January 2015, Kidd sold a total of $6,000 worth of oxycodone pills to an individual at Kidd’s Buffalo residence. Oxycodone, along with other opiod and opiate-type drugs, has been responsible for an alarming increase in overdose deaths in this area. United States Attorney Hochul, along with public health officials, have described these fatalities as an epidemic.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Bessemer Man Detained at Home for 15 Months, Must Repay $110,295 to Shipping Company for Kickback SchemeRead the Press Release
BIRMINGHAM -- A federal judge last week sentenced a Bessemer man to 15 months of electronically monitored home detention as part of four years' probation for a kickback scheme he ran while working as a freight broker for a Shelby County company, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge Madeline H. Haikala sentenced WILLIAM G. McCULLEY, 31, on one count of wire fraud and ordered him to pay $60,295 in restitution to his former employer, Interstar Transportation Services, plus $50,000 to Auto-Owners Insurance Company, which had paid a related claim from ITS. Judge Haikala also ordered McCulley to forfeit $96,809 to the government as proceeds of illegal activity, and to perform five hours a week of community service during his probation. McCulley pleaded guilty to the wire fraud in June.
ITS is an independent brokerage agency for a Jacksonville, Fla.-based company, Landstar, which operates a fleet of trucks and transportation equipment throughout the United States. McCulley worked as a freight broker for Interstar and was responsible for contracting with various trucking companies across the country.
Between April 2013 and July 2014, McCulley devised a kickback scheme with the owner of an Illinois trucking company, ZDL Express, according to McCulley's guilty plea. To carry out the scheme, ZDL Express inflated its freight costs to Landstar, and McCulley approved the fraudulent charges. McCulley and ZDL's owner split the illegally gained profits after ZDL received payment from Landstar, according to court documents.
McCully committed wire fraud when he faxed Landstar Load Confirmation forms from the ITS corporate office in Shelby County to ZDL Express in Illinois and approved fraudulent charges on the forms, according to his plea.
The FBI investigated the case, which Assistant U.S. Attorney Pat Meadows prosecuted.
Berkeley County, WV man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Perry, 30, of Gerrardstown, West Virginia, was convicted of heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Perry attempted to purchase heroin in March 2015 in Berkeley County, West Virginia. He pled guilty to a criminal Information charging him with one count of “Aiding and Abetting Attempted Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bangor Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Clyde M. Hall Jr., 50, most recently of Bangor, Maine, pleaded guilty today in U.S. District Court for failing to register as a federal sex offender.
According to court documents, the defendant was required to register as a sex offender because of a 1989 Maine state conviction for unlawful sexual contact and gross sexual misconduct, a 1999 New York state conviction for endangering the welfare of a child, and a 2000 federal conviction in New York for possession of child pornography.
In March 2012, Hall was released from federal prison, but failed show up at an Albany, New York halfway house as he was directed. A warrant issued for his arrest.
On October 3, 2013, Deputy U.S. Marshals arrested Hall on Congress Street in Portland. He told the marshals that he had been in Maine for the previous 18 months, mostly in the Bangor-Orono area, and that knew he was supposed to register, but did not.
Hall faces up to ten years in jail and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the U.S. Marshals Service.
Baltimore Man Sentenced to 18 Years in Prison for Armed RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Gilbert Stokes, age 47, of Baltimore, Maryland, today to 18 years in prison, followed by three years of supervised release for the December 12, 2013 armed robbery of a convenience store. Stokes also admitted to the attempted armed robbery of a hotel on December 6, 2013, and committing the armed robbery of a fast food restaurant on December 23, 2013.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Stokes’ plea agreement, on December 6, 2013, he entered a hotel on W. Madison Street in Baltimore, displayed a gun to the hotel clerk and demanded money. The clerk advised that the only money on hand at the hotel was in the safe and the clerk did not have a key to the safe. Stokes fled without obtaining any money. Baltimore Police detectives reviewed hotel surveillance video and identified Stokes as the robber. The clerk identified Stokes from a photo array.
On December 12, 2013, Stokes entered a convenience store in Windsor Mill and brandished a handgun at two victims. The victims were able to hide in the store while Stokes stole packs of cigarettes and left. Witnesses at the scene identified the get-away vehicle Stokes used, which the police subsequently located. Recovered from under the front seat was a revolver that matched the firearm seen in the store’s surveillance video. A witness identified Stokes as the person who brandished the gun and committed the robbery.
Stokes also admitted that on December 23, 2013, he robbed a fast food restaurant on N. Howard Street in Baltimore, brandishing a weapon and demanding money. Stokes stole approximately $200 from the register and fled. Officers located Stokes on Greene Street, and saw Stokes throw an object under the vehicle. Law enforcement recovered a .17 caliber BB-gun from under the vehicle and $190 from Stokes. The victims were brought to the scene of the arrest and identified Stokes as the armed robber.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, and Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Bainbridge Man Pleads Guilty to Bank RobberyRead the Press Release
Ryan O. Harris, age 22, of Bainbridge, Georgia, pled guilty October 13, 2015 to one count of bank robbery before Honorable Leslie J. Abrams in Albany, Georgia, United States District Judge, Albany, Georgia.
The following facts supported the plea of guilty: On July 16, 2015, at about 9:45 a.m., the defendant, Ryan O. Harris, entered the Family Bank, a federally insured financial institution, located on E. College Street, in Bainbridge, Georgia. Harris went to a customer island and began writing something. One of the tellers then asked Harris if he needed any assistance. Thereafter Harris turned and left the bank without conducting any banking business. This incident was recorded on the video surveillance tape in the bank.
At about 1:30 p.m., Harris re-entered Family Bank, dressed in the same clothes and carrying a black backpack. Harris approached the teller counter and stated, “Fill it up, I ain’t got all day,” to the teller. He stated to another teller, “You, too,” meaning for the second teller to assist filling the back pack with money. Harris then displayed a pistol to the tellers. This pistol was later recovered and determined to be a spray painted BB gun.
The tellers filled the backpack with currency, and in addition with bait money and dye packs. Harris then ran out of the bank. All of the above was captured on surveillance video.
The bank employees called 911. Law enforcement responded and began looking for a suspect in the vicinity. A Bainbridge Public Safety Officer spotted Harris fleeing on foot and gave chase briefly before Harris eluded him.
Harris was apprehended a short time later by other officers and taken into custody. The officers read Harris his Miranda rights. One officer asked Harris why he robbed the bank, to which Harris replied that he was tired of being broke. An officer then asked, “So you decided to rob a bank?” Harris replied, “Yeah.”
Officers recovered the black backpack containing the money, now-exploded dye packs and bait bills, and the BB pistol all in close vicinity to the place where Harris was apprehended.
The case was investigated by the Bainbridge Department of Public Safety and the Federal Bureau of Investigation. Assistant United States Attorney Jim Crane prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Alleged Philadelphia Drug Dealer IndictedRead the Press Release
PHILADELPHIA - Jerome Walker, 30, of Philadelphia, PA, was charged today by indictment with distribution of cocaine base “crack,” possession with intent to distribute cocaine base “crack,” and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. The indictment alleges that in April 2015, Walker distributed “crack” cocaine on three occasions, possessed more than 280 grams of “crack” cocaine with intent to distribute, and possessed a loaded semi-automatic pistol and a loaded assault rifle.
If convicted the defendant faces a mandatory minimum sentence of 25 years in prison with a statutory maximum sentence of life, a $700 special assessment, supervised release and a possible fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Mister Samuel, 35, of Albuquerque, N.M., pleaded guilty this morning in federal court, to a misdemeanor information charging him with assault.
Samuel was arrested and charged in a criminal complaint in Feb. 2015, with assault with intent to do bodily harm without just cause or excuse. According to the complaint, Samuel assaulted the victim on Feb. 18, 2015, at the emergency room of the Veterans Administration Medical Center by striking the victim repeatedly with a “hand sanitizer stand.” On Feb. 19, 2015, Samuel was charged in a misdemeanor information with assault by striking, beating or wounding on Feb. 18, 2015, in Bernalillo County, N.M.
During today’s proceedings, Samuel entered a guilty plea to the information without the benefit of a plea agreement. At sentencing, Samuel faces a statutory maximum penalty of one year in prison followed by up to one year of supervised release. Samuel is in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Veterans Affairs Police Department and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Monday 12 October 2015
Eagle Butte Man Sentenced for Second Degree BurglaryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Second Degree Burglary was sentenced on October 5, 2015, by U.S. District Judge Roberto A. Lange.
Markus Daniel Knight, age 34, was sentenced to 41 months in custody, followed by 2 years of supervised release, over $2,000 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Knight was indicted for Second Degree Burglary and Larceny by a federal grand jury on December 9, 2014. He pled guilty to Second Degree Burglary on July 13, 2015.
The conviction arose from a December 4, 2014, incident at Timber Lake, when Knight failed to return a borrowed vehicle to the owner. The vehicle’s owner reported the vehicle as stolen. Knight drove the stolen vehicle to another residence, where he stole property valued in excess of $4,000.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Knight was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Sunday 11 October 2015
Members of Drug Trafficking Organization Face Federal Indictment for Distribution of Marijuana in UtahRead the Press Release
SALT LAKE CITY – An alleged drug trafficking organization that sources say cultivated and acquired large amounts of marijuana in California for distribution in Utah since at least 2010 is under federal indictment this week in Salt Lake City. Using marijuana cultivated or acquired from other growers in California, the organization has been responsible for 100 pounds of marijuana distribution in Utah each month, court filings say.
An indictment returned Wednesday afternoon, following an Organized Crime Drug Enforcement Task Force investigation, charges Collin Drexel Armstrong, age 29, address unknown; Zachary Fitts Hoppe, age 31; Christopher Trey Benson, age 25; Robert Daniel Benson, age 54; and Deborah Ellis Benson aka Trinity Benson, age 54, all of Salt Lake City; and Jared Bryce Roth, age 33, address unknown, with conspiracy to distribute marijuana, possession of marijuana with intent to distribute, and conspiracy to commit money laundering. All six defendants are charged in the conspiracy count of the indictment. Armstrong and the Bensons are charged with possession with intent to distribute. Armstrong, Hoppe, and Christopher Trey, Robert Daniel, and Deborah Ellis Benson are charged in the money laundering count.
According to a complaint filed in the case, prosecutors and investigators obtained information about the alleged drug trafficking organization through another investigation. For several years, according to the complaint, large amounts of marijuana were cultivated or acquired in California and transported to Utah for distribution. The indictment alleges the conspiracy to distribute marijuana started no later than Jan. 1, 2010, and continued through at least Sept. 23, 2015.
The indictment also includes a notice of intent by federal prosecutors to seek criminal forfeiture $101,000 in currency seized from three defendants in the case; a 1968 Chevy Camaro; and six parcels of real property, constituting about 300 acres, in Laytonville, California.
Armstrong is in custody in California. All other defendants in the case were arrested on a complaint filed on Sept. 14 and have been released on conditions.
The maximum potential penalty for charges in the case is life in prison and a $5 million fine with a 10-year mandatory minimum sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by Assistant U.S. Attorneys in Utah and investigated by special agents of IRS-Criminal Investigation and the DEA.
Friday 9 October 2015
Wyoming Man Convicted for Arson of Building Receiving Federal Funds; Using a Firearm During and in Relation to a Crime of Violence; Possession of an Unregistered Firearm; and False Declaration Before a Grand JuryRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Sheridan, Wyoming resident Joel S. Elliott has been convicted in federal court.
In June 2014, Joel Elliot fire bombed the Sheridan County Attorney’s Office. Yesterday, after a four-day jury trial in the U.S. District Court in Casper, a jury found him guilty on all counts related to that fire: arson of building receiving federal funds; using a firearm during and in relation to a crime of violence; possession of an unregistered firearm; and false declaration before a Grand Jury. Elliott is scheduled to be sentenced by Federal District Court Judge Scott W. Skavdahl on December 18, 2015.
The investigation in this case was conducted by the Sheridan Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Stuart S. Healy III.
Wichita Woman Charged with Sex Trafficking 17-Year-Old GirlRead the Press Release
WICHITA, KAN. - A Wichita woman was charged in federal district court in Wichita Friday with the sex trafficking of a 17-year-old girl, U.S. Attorney Barry Grissom said.
Natasha L. Harper, 32, Wichita, is charged with one count of providing a 17-year-old girl for commercial sex. In court documents investigators allege Harper was arrested in a sting operation conducted by the Wichita Police Department. On Oct. 8, 2015, officers arranged for the 17-year-old girl to meet them at Springhill Suites by Marriott at 6633 W. Kellogg in Wichita. Harper transported the victim to the hotel, where Harper was arrested.
Investigators learned that Harper had been advertising on the Internet that the victim would perform sexual services for $150 to $200 a session. Part of that money -- $20 to $50 a session – went to Harper. Harper paid the rent for the hotel rooms.
If convicted, Harper faces a penalty of not less than 10 years in federal prison. The Wichita Police Department investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Virginia Businessman Sentenced to 88 Months in Prison for Role in Bribery Scheme Involving Government ContractsRead the Press Release
Defendant Paid Public Officials in Millions in Return for Contracts;
Company Submitted Fraudulently Inflated InvoicesYoung N. Cho, aka Alex Cho, 43, of Great Falls, Virginia, has been sentenced to 88 months in prison on federal charges stemming from a bribery scheme in which he paid millions of dollars in bribes to corrupt public officials from the U.S. Army Corps of Engineers in return for lucrative government contracts.
Cho pleaded guilty in September 2011 in the U.S. District Court for the District of Columbia to a two count information that charged one count of conspiracy to commit bribery, money laundering and to defraud the United States and one count of bribery. He was sentenced on Oct. 8, 2015, by the Honorable Emmet G. Sullivan. Judge Sullivan also ordered Cho to pay $7,656,073 restitution to the U.S. Army Corps of Engineers and pay a forfeiture money judgment of $6,884,948. Following his prison term, Cho will be placed on three years of supervised release.
The sentencing was announced today by Acting U.S. Attorney Vincent H. Cohen Jr. for the District of Columbia; Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office; Special Agent in Charge Thomas Jankowski of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Inspector General Peggy E. Gustafson, for the Small Business Administration (SBA); Special Agent in Charge Robert E. Craig, Jr. of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
In addition to Cho, 19 other individuals and one corporation, Nova Datacom LLC, have pleaded guilty to federal charges. The investigation uncovered the largest domestic bribery and bid-rigging scheme in the history of federal contracting cases. Overall, participants in the scheme stole over $30 million in government money through fictitious invoices and conspired to steer a nearly $1 billion government contract to a favored government contractor. To date, through forfeiture, restitution, and civil settlements, the U.S. Attorney’s Office has been able to recover over $30 million of the stolen money.
“Alex Cho was at the center of a cash-for-contracts scheme that robbed the American taxpayer of $30 million,” said Acting U.S. Attorney Cohen. “Cho is just one of 20 crooked contractors, government officials and other middlemen who have pled guilty as part of this investigation. His prison sentence is proof that the temptation to cheat the system by paying off corrupt government employees is not worth it.”
“More than six years after initiating one of the largest procurement fraud cases in history, this sentence demonstrates that the FBI and our law enforcement partners have a long memory when it comes to holding accountable those who engage in bribes and kickbacks,” said Assistant Director in Charge Abbate. “The FBI will continue to diligently work to protect the integrity of our government by pursuing those who seek to violate the system through corruption.”
“SBA’s preferential contracting programs are designed to help eligible individuals achieve the American dream of running a successful business,” said Inspector General Gustafson. “The defendant's actions of bribing government officials and committing fraud in order to obtain government contracts hurt every small business owner who is hoping that SBA can help them achieve that dream. I want to thank our law enforcement partners for their dedication and the U.S. Attorney's Office for its leadership throughout this investigation.”
“Manipulations of the Department of Defense procurement process will not be tolerated,” said Special Agent in Charge Craig. “This sentencing demonstrates the vigilance and ongoing commitment by DCIS and its partner agencies to hold accountable individuals who attempt to bypass federal contracting laws.”
“This sentencing and the guilty pleas of Cho's co-conspirators, should serve as a stark reminder to the public that those who seek to defraud the U.S. government will face the consequences,” said Director Robey. “Crimes like this one can undermine the financial readiness of our Army. The agents who worked this case should be commended for their thorough investigation and for expertly following the paper trail that led to the unraveling of this complex fraud scheme.”
Cho was the chief technology officer for Nova Datacom. Among others, he conspired with three defendants who worked closely with Nova Datacom throughout the course of the scheme: Kerry F. Khan and Michael A. Alexander, former program managers for the U.S. Army Corps of Engineers and Harold F. Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business. All three men have pleaded guilty.
According to the government’s evidence, Cho’s criminal activities took place between 2007 and 2011. Among other things, Cho admitted paying over $17 million in bribes to Khan and about $1 million to Alexander to obtain and retain government contracts and to conspiring with public officials to steer a nearly $1 billion planned government contract to Nova Datacom. Cho also admitted paying approximately $700,000 in kickbacks to Babb to facilitate the processing of Nova Datacom’s invoices.
From in or about 2008 through March 2011, Cho caused Nova Datacom to submit invoices for equipment and services to the U.S. Army Corps of Engineers for approximately $45 million. Of that amount, he admitted that over $18 million was inflated and/or fictitious.
Khan has been sentenced to 19 years and seven months in prison. Alexander was sentenced to six years in prison and Babb was sentenced to seven years and three months in prison.
In announcing this sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge Abbate, Special Agent in Charge Jankowski, Inspector General Gustafson, Special Agent in Charge Craig and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation, the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.
They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson and Anthony Saler of the Fraud and Public Corruption Section. Finally, they expressed thanks for assistance provided by former Assistant U.S. Attorney Bryan Seeley; former Special Assistant U.S. Attorney Christopher Dana; former Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Krishawn Graham, and Taryn McLaughlin; and Legal Assistant Jessica McCormick.
Virginia Businessman Sentenced to 88 Months in Prison for Role in Bribery Scheme Involving Government ContractsRead the Press Release
WASHINGTON – Young N. Cho, also known as Alex Cho, 43, of Great Falls, Va., has been sentenced to 88 months in prison on federal charges stemming from a bribery scheme in which he paid millions of dollars in bribes to corrupt public officials from the U.S. Army Corps of Engineers in return for lucrative government contracts.
Cho pled guilty in September 2011 in the U.S. District Court for the District of Columbia to a two-count Information that charged one count of conspiracy to commit bribery, money laundering, and to defraud the United States, and one count of bribery. He was sentenced on Oct. 8, 2015, by the Honorable Emmet G. Sullivan. Judge Sullivan also ordered Cho to pay $7,656,073 restitution to the U.S. Army Corps of Engineers, and pay a forfeiture money judgment of $6,884,948. Following his prison term, Cho will be placed on three years of supervised release.
The sentencing was announced today by Acting U.S. Attorney Vincent H. Cohen, Jr.; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
In addition to Cho, 19 other individuals and one corporation, Nova Datacom, LLC, have pled guilty to federal charges. The investigation uncovered the largest domestic bribery and bid-rigging scheme in the history of federal contracting cases. Overall, participants in the scheme stole over $30 million in government money through fictitious invoices and conspired to steer a nearly $1 billion government contract to a favored government contractor. To date, through forfeiture, restitution, and civil settlements, the U.S. Attorney’s Office has been able to recover over $30 million of the stolen money.
“Alex Cho was at the center of a cash-for-contracts scheme that robbed the American taxpayer of $30 million,” said Acting U.S. Attorney Cohen. “Cho is just one of 20 crooked contractors, government officials, and other middlemen who have pled guilty as part of this investigation. His prison sentence is proof that the temptation to cheat the system by paying off corrupt government employees is not worth it.”
“More than six years after initiating one of the largest procurement fraud cases in history, this sentence demonstrates that the FBI and our law enforcement partners have a long memory when it comes to holding accountable those who engage in bribes and kickbacks,” said Assistant Director in Charge Abbate. “The FBI will continue to diligently work to protect the integrity of our government by pursuing those who seek to violate the system through corruption.”
“SBA's preferential contracting programs are designed to help eligible individuals achieve the American dream of running a successful business,” said Inspector General Gustafson. “The defendant's actions of bribing government officials and committing fraud in order to obtain government contracts hurt every small business owner who is hoping that SBA can help them achieve that dream. I want to thank our law enforcement partners for their dedication and the U.S. Attorney's Office for its leadership throughout this investigation.”
“Manipulations of the Department of Defense procurement process will not be tolerated,” said Special Agent in Charge Craig. “This sentencing demonstrates the vigilance and ongoing commitment by DCIS and its partner agencies to hold accountable individuals who attempt to bypass federal contracting laws.”
“This sentencing, and the guilty pleas of Cho's co-conspirators, should serve as a stark reminder to the public that those who seek to defraud the U.S. government will face the consequences,” said Director Robey. “Crimes like this one can undermine the financial readiness of our Army. The agents who worked this case should be commended for their thorough investigation and for expertly following the paper trail that led to the unraveling of this complex fraud scheme.”
Cho was the chief technology officer for Nova Datacom. Among others, he conspired with three defendants who worked closely with Nova Datacom throughout the course of the scheme: Kerry F. Khan and Michael A. Alexander, former program managers for the U.S. Army Corps of Engineers, and Harold F. Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business. All three men have pled guilty.
According to the government’s evidence, Cho’s criminal activities took place between 2007 and 2011. Among other things, Cho admitted paying over $17 million in bribes to Khan and about $1 million to Alexander to obtain and retain government contracts and to conspiring with public officials to steer a nearly $1 billion planned government contract to Nova Datacom. Cho also admitted paying approximately $700,000 in kickbacks to Babb to facilitate the processing of Nova Datacom’s invoices.
From in or about 2008 through March 2011, Cho caused Nova Datacom to submit invoices for equipment and services to the U.S. Army Corps of Engineers for approximately $45 million. Of that amount, he admitted that over $18 million was inflated and/or fictitious.
Khan has been sentenced to 19 years and seven months in prison. Alexander was sentenced to six years in prison, and Babb was sentenced to seven years and three months in prison.
In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Director in Charge Abbate, Special Agent in Charge Jankowski, Inspector General Gustafson, Special Agent in Charge Craig, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Washington Field Office of the Internal Revenue Service-Criminal Investigation, the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency, and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.
They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson and Anthony Saler of the Fraud and Public Corruption Section. Finally, they expressed thanks for assistance provided by former Assistant U.S. Attorney Bryan Seeley; former Special Assistant U.S. Attorney Christopher Dana; former Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Krishawn Graham, and Taryn McLaughlin; and Legal Assistant Jessica McCormick.
Violent Home Invasion Robbery Crew Member Sentenced to 272 Months for Conspiring to Commit Drug Robberies, Conspiring to Distribute Cocaine and Heroin, and Illegally Using A FirearmRead the Press Release
Earlier today in Brooklyn federal court, Marcos Rodriguez, who committed a string of drug robberies and related crimes, was sentenced to 272 months of imprisonment. The sentencing proceeding was held before U.S. District Judge Sandra L. Townes. Rodriguez was convicted in July 2011 after a two week jury trial.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York.
Rodriguez was a member of a violent robbery crew responsible for more than 100 robberies of narcotics traffickers in the New York metropolitan area and elsewhere that netted more than 250 kilograms of cocaine and $1 million in drug proceeds. Beginning in approximately January 2001, crew members posing as law enforcement officers staged fake arrests of the traffickers and then forcibly seized the traffickers’ contraband. The crew members restrained victims with handcuffs, rope, or duct tape, often brandished firearms and physically assaulted victims, sold the stolen drugs, and divided the proceeds among themselves.
Rodriguez personally participated in at least 15 separate robberies and attempted robberies. He typically conducted surveillance, acted as a lookout, and helped to sell the seized narcotics. The robberies and attempted robberies in which Rodriguez directly participated involved at least 54 kilograms of cocaine, 1.3 kilograms of heroin, and approximately $60,000 in drug proceeds.
In announcing the sentence, Mr. Currie extended his grateful appreciation to the Drug Enforcement Administration, New York Division; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; and the New York City Police Department.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Sylvia S. Shweder, Alexander Solomon, and Claire Kedeshian are in charge of the prosecution.
The Defendant:
MARCOS RODRIGUEZ
Age: 47
New York, NYE.D.N.Y. Docket No. 08-CR-242 (SLT)
U.S. Files False Claims Act Complaint Against Western New York Contracting Company, Two Owners and an EmployeeRead the Press Release
The United States filed a complaint against a Western New York contracting company, and its owners and an employee, alleging that they submitted false claims for federal contracts intended for service-disabled, veteran-owned small businesses, the Department of Justice announced.
The lawsuit was filed in U.S. District Court in Buffalo, New York, against Strock Contracting, Inc., Lee Strock, Kenneth Carter and Cynthia Ann Golde, who are alleged to have defrauded the government by falsely claiming eligibility for millions of dollars in contracts being awarded by the Air Force, Army, and Department of Veterans Affairs intended for service-disabled, veteran-owned (SDVO) small businesses. Strock largely owns and manages Strock Contracting, Inc., and Strock and Carter were officers and partial owners of Veteran Enterprises Company, Inc. (VECO), which was awarded the contracts. Golde was a former employee of VECO.
“Congress established the Service-Disabled, Veteran-Owned contracting programs to provide economic opportunities for veterans with service-connected disabilities and to help them participate in federal contracting and compete in the American economy,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.“The Justice Department is committed to making sure that only eligible companies participate in these types of federal contracting programs.”
“This country long ago developed policies designed to ensure that our wounded warriors have the ability to participate in government-funded programs, and to have their transition into the civilian economy eased to the extent possible,” said U.S. Attorney William J. Hochul Jr. of the Western District of New York. “This lawsuit – the first of its kind in this District – sends a strong message that this office will vigorously protect programs designed to aid those who have already given so much in the honorable service of their country.”
Between 2008 and 2013, VECO obtained millions of dollars in federal contracts offered by the government to legitimate SDVO small businesses. The defendants won these contracts after claiming that VECO met all the requirements to be an SDVO small business. The government’s complaint alleges that VECO did not meet the requirements and was not entitled to such contracts. In particular, the government alleges that VECO was a sham business whose day to day operations were controlled by Strock Contracting and the individual defendants. For example, the government’s complaint alleges that the purported owner of VECO did not even have a key to VECO’s offices, which were located in the same building as Strock Consulting.
The civil complaint is the result of an investigation by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of New York, the Veteran’s Administration, Office of Inspector General, Northeast Regional Office; the U.S. Army Criminal Investigation Division Command, Major Procurement Fraud Unit (MPFU); the FBI; the Small Business Administration’s Office of Inspector General and Office of General Counsel and the Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service.
The case is captioned United States v. Lee Strock, et al, No. 15-CV-887-G (W.D. New York). The claims made in the complaint are allegations only, and there has been no determination of liability.
U.S. Files False Claims Act Complaint Against Strock Contracting, Inc., Two Owners and an EmployeeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, NY–The United States filed a complaint against a Western New York contracting company, and its owners and an employee, alleging that they submitted false claims for federal contracts intended for service-disabled, veteran-owned small businesses, the Department of Justice and U.S. Attorney William J. Hochul, Jr. announced.The lawsuit was filed in U.S. District Court in Buffalo against Strock Contracting, Inc., Lee Strock, Kenneth Carter and Cynthia Ann Golde, who are alleged to have defrauded the government by falsely claiming eligibility for millions of dollars in contracts being awarded by the Air Force, Army, and Department of Veterans Affairs intended for service-disabled, veteran-owned (SDVO) small businesses. Strock largely owns and manages Strock Contracting, Inc., and Strock and Carter were officers and partial owners of Veteran Enterprises Company, Inc. (VECO), which was awarded the contracts. Golde was a former employee of VECO.
“This country long ago developed policies designed to ensure that our wounded warriors have the ability to participate in government-funded programs, and to have their transition into the civilian economy eased to the extent possible,” said U.S. Attorney Hochul. “This lawsuit – the first of its kind in this District – sends a strong message that this office will vigorously protect programs designed to aid those who have already given so much in the honorable service of their country.”
“Congress established the Service-Disabled, Veteran-Owned contracting programs to provide economic opportunities for veterans with service-connected disabilities and to help them participate in federal contracting and compete in the American economy,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.“The Justice Department is committed to making sure that only eligible companies participate in these types of federal contracting programs.”
Between 2008 and 2013, VECO obtained millions of dollars in federal contracts offered by the government to legitimate SDVO small businesses. The defendants won these contracts after claiming that VECO met all the requirements to be an SDVO small business. The government’s complaint alleges that VECO did not meet the requirements and was not entitled to such contracts. In particular, the government alleges that VECO was a sham business whose day to day operations were controlled by Strock Contracting and the individual defendants. For example, the government’s complaint alleges that the purported owner of VECO did not even have a key to VECO’s offices, which were located in the same building as Strock Consulting.The civil complaint is the result of an investigation by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of New York, the Veteran’s Administration, Office of Inspector General, Northeast Regional Office; the U.S. Army Criminal Investigation Division Command, Major Procurement Fraud Unit (MPFU); the FBI; the Small Business Administration’s Office of Inspector General and Office of General Counsel and the Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service.
The case is captioned United States v. Lee Strock, et al, No. 15-CV-887-G (W.D. New York). The claims made in the complaint are allegations only, and there has been no determination of liability.
U.S. Border Patrol Supervisor Charged with Violating Civil Rights of Legal U.S. Resident Who Made Child-Rape Allegations Against Supervisor’s Family MemberRead the Press Release
Assistant U. S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – October 9, 2015
SAN DIEGO – U.S. Border Patrol Supervisory Agent Martin Rene Duran was arrested yesterday and charged with using his official position to create bogus alerts in a border-security law enforcement database so that a lawful U.S. resident and frequent border crosser would be repeatedly detained by Customs and Border Protection officers, sometimes at gunpoint.
According to a complaint unsealed in federal court today, Duran’s target was a man who had instigated a criminal investigation in Mexico of Duran’s brother-in-law, Raymundo Estrada Figueroa, who is accused of raping and abusing the man’s 11-year-old son for two years. Estrada was a boyfriend of the child’s mother at the time; the abuse is alleged to have taken place between 2010 and 2013 in Tijuana.
Estrada is charged in the same complaint as Duran with two counts of traveling from the United States to Mexico to engage in illicit sexual conduct. One count relates to the border crosser’s son; the other is in connection to that boy’s half-brother.
Duran, a supervisor at the Imperial Beach Border Patrol Station, was taken into custody at the Otay Mesa Port of Entry; Estrada was arrested at his Chula Vista home. Both appeared in federal court today; both will remain in custody until a detention hearing on Wednesday, October 14, 2015 at 2 p.m. before U.S. Magistrate Judge William V. Gallo.
The border crosser who reported the sexual abuse of his son is identified in court documents only by his initials, “R.C.” to protect his son’s identity. According to the complaint, R.C. - a Mexican national and legal U.S. resident with no criminal background - was sent to secondary and detained on five occasions at the San Ysidro border crossing in 2013 based on the false alerts entered by Duran into the system known as TECS, which is the principal database used by officers at the border to assist with screening and determinations regarding admissibility of arriving persons.
Duran’s alerts indicated, among other things, that R.C. was “known to carry firearms,” and that he was “associated with recent threats to CBP personnel.” Every time he was detained, no weapons or contraband were found and R.C. was released. On one occasion, R.C. and his wife were removed from their vehicle, handcuffed, separated from their minor children, escorted to the security office and put in a holding cell for almost two hours before they were released, the complaint said.
R.C. believed Duran was trying to pressure him into dropping the charges against Estrada in Mexico, the complaint said.
Duran is charged with five counts of unlawfully causing the detentions while acting under color of law, thereby willfully depriving R.C. of his Constitutional rights to liberty and freedom from unreasonable seizures, and three counts of falsification of records and obstruction.
In a separate complaint also unsealed yesterday, Duran was charged with firearms violations related to the purchase of guns in Arizona. The complaint alleges that Duran falsely claimed under penalty of perjury that he was a resident of Arizona when, in fact, he lived in Chula Vista.
“This type of corruption is in a category all by itself,” said U.S. Attorney Laura Duffy. “When an officer turns on those he is supposed to protect, and uses his significant power against law-abiding people who had faith in him, it’s a special kind of betrayal.”
"This investigation was a collaborative effort among a number of federal law enforcement agencies and demonstrates our commitment to address allegations of criminal misconduct by CBP employees,” said Kathryn Butterfield, Special Agent in Charge of Internal Affairs for U.S. Customs and Border Protection in San Diego. “Every CBP employee shares responsibility for promoting integrity and for meeting mission demands while sustaining the trust and confidence of the public we serve. An overwhelming majority of CBP personnel perform their duties with honor and distinction on a daily basis. However, CBP does not tolerate those who tarnish the badge and the agency’s reputation.”
“This investigation was conducted by agents from the U.S. Immigration and Customs Enforcement’s (ICE) Office of Professional Responsibility, Homeland Security Investigations, Custom and Border Protection Office of Internal Affairs, and the Department of Homeland Security Office of Inspector General. “We will move aggressively to investigate and bring to justice those who have allegedly betrayed the public’s trust. Guarding against illegal or unethical behavior is not an option; it’s an obligation we have to the people we serve.”
DEFENDANT
Martin Rene Duran Age: 46 Chula Vista
SUMMARY OF CHARGES
Case Number: 15mj3002
Falsification of Records/Obstruction, in violation of Title 18, U.S.C., Sec. 15
Deprivation of Rights Under Color of Law, in violation of Title 18, U.S.C., Sec. 242
Case Number: 15mj2957
Illegal Transportation of Firearms, in violation of Title 18, U.S.C., Sec. 922(a)(3) and
924(a)(l)(D) Maximum Penalty:
DEFENDANT
Raymundo Estrada Figueroa Age: 48 Chula Vista
SUMMARY OF CHARGES
Case Number: 15mj3002
Two counts, Travel in Foreign Commerce to engage in illicit sexual conduct, in violation of 18 U.S.C. 2423(c)
AGENCIES
Homeland Security Investigations
Immigration and Customs Enforcement – Office of Professional Responsibility
Bureau of Alcohol, Tobacco Firearms and Explosives
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney’s office staff attends Shreveport, Lafayette Night Out eventsRead the Press Release
SHREVEPORT/LAFAYETTE, La. – Western District of Louisiana U.S. Attorney’s Office staff members and other local law enforcement and community leaders met in neighborhoods throughout Caddo and Lafayette parishes Tuesday as part of their annual National Night Out crime and drug prevention events.
First Assistant U.S. Attorney Alexander C. Van Hook and other members of the office, Mike Campbell, Law Enforcement Community Coordinator (LECC), and Robert W. Gillespie Jr., Assistant U.S. Attorney/Project Safe Neighborhoods Coordinator (PSN), joined Shreveport Mayor Ollie Tyler, Shreveport Police Chief Willie Shaw, Caddo Parish Sheriff Steve Prator’s Office and the Shreveport Fire Department for events in Northwest Louisiana. Assistant U.S. Attorneys John Luke Walker and Joseph T. Mickel joined the Lafayette Police Department, Lafayette Sheriff’s Department, Lafayette Parish Fire Department and other agencies for National Night Out events in South Central Louisiana.
Residents unlocked their doors, turned on porch lights and spent the evening outside with family, friends, neighbors, emergency response personnel and city officials. Many neighborhoods throughout Caddo Parish hosted a variety of special events such as block parties, cookouts, parades, flashlight walks, contests, youth activities and anti-crime rallies. In Lafayette, residents met at Neyland Park on Eraste Landry Road and the Martin Luther King Center near Willow Street. The events included music, food, games, fun jumps and displays by the Lafayette Fire Department, the Lafayette Sheriff’s Office, the Lafayette Police Department SWAT Team, Horse Patrol, Motorcycle Unit, Bicycle Patrol and the Police Command Bus.
National Night Out is designed to heighten crime and drug prevention awareness, generate support for local anti-crime efforts, strengthen neighborhood spirit and police community partnerships, and send a clear message that neighbors are organized and fighting back.
“National Night Out is a way for neighbors to join with their law enforcement and community partners to demonstrate that crime does not rule the night and that criminals have no safe haven when the sun goes down,” Finley stated. “The ‘Night Out’ is also a great way to acknowledge the accomplishments of neighborhood organizations that keep communities safe, and especially to thank and acknowledge our law enforcement community for putting their lives on the line for us every day.”As the District’s LECC, Mike Campbell acts as a liaison between the U.S. Attorney=s Office and local, state and federal law enforcement. He assists with grants, coordinates and provides law enforcement training and assists law enforcement agencies with special and community needs. The mission of the LECC is to develop coordination, communication and cooperation between local, state and federal law enforcement agencies throughout the Western District of Louisiana by providing education, training and technical assistance to all federal, state and local law enforcement agencies in the district.
Assistant U.S. Attorney Robert W. Gillespie Jr. is the District’s coordinator for the Project Safe Neighborhoods Program. Project Safe Neighborhoods is the anti-gang, anti-gun violence initiative of the U.S. Department of Justice. It is a comprehensive, strategic approach to reducing gun violence and promoting safe communities around the country. Project Safe Neighborhoods combats gun violence by bringing together local, state and federal law enforcement officials, prosecutors and community leaders to implement a multi-faceted strategy to deter and punish gun violence.
Thousands of communities across the United States took part in the 32nd Annual National Night Out starting in August. To find out more about National Night Out, visit the National Association for Town Watch at http://www.natw.org.
U.S. Attorney’s Office contributes to local food pantries through Feds Feed Families driveRead the Press Release
SHREVEPORT/LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that the U.S. Attorney’s Offices in Shreveport and Lafayette collected more than 275 pounds of food and non-perishable items this week that were delivered to two local food pantries.
In all, federal employees contributed 275 pounds of food to the Food Bank of Northwest Louisiana in Shreveport and the FoodNet: The Greater Acadiana Food Bank, in Lafayette. The Shreveport U.S. Attorney’s Office gathered 118 pounds of the total and the Lafayette U.S. Attorney’s Office gathered 157 pounds. Donation boxes for the Feds Feed Families food drive campaign were located at the federal courthouses in Shreveport and Lafayette. The food drive campaign ended October 2, 2015.
“This food drive campaign is our way of giving back to those most in need in our communities,” Finley said. “Food pantries need help throughout the year and not just during the holidays. Feds Feed Families assists by being there to donate food during the summer before the holiday season begins. I want to thank all federal employees in the U.S. Attorney’s Office, U.S. Courts and other agencies that donated food, time and other resources to make this possible.”
The Food Bank of Northwest Louisiana began in 1995 when a group of individuals from churches with food pantries and benevolent organizations met to discuss the need to establish a local food bank to serve the parishes of Northwest Louisiana. The Food Bank of Northwest Louisiana is the largest distributor of donated food for the seven-parish area and is one of only five food banks in the state. They sort, warehouse and distribute food to more than 120 non-profit organizations in the seven-parish region, which includes: Caddo, Bossier, Bienville, Claiborne, Desoto, Red River, and Webster parishes. For more information about the Food Bank of Northwest Louisiana, visit their website at www.foodbanknla.org or call (318) 675-2400.
FoodNet: The Greater Acadiana Food Bank, a non-profit food bank serving Lafayette Parish, was established in October 1987. FoodNet has distributed tens of thousands of tons of food since opening, and presently serves several agencies including: Faith House of Acadiana women’s shelter, the Children’s Shelter, St. Joseph Shelter for Men, Acadiana Youth Shelter for Girls, St. Joseph Diner, the Red Cross, Alleman Center, Acadiana Cares, St. Francis Foundation for Substance Abuse, and the Arc. For more information, visit www.foodnetacadiana.org or call (337) 232-3663.
In the United States, 50 million people are challenged with hunger, including 17 million children. Feds Feed Families was started when Rep. Frank Wolf (R-Va.) and former Office of Personnel Management Director John Berry realized that food donations were dropping during the summer months because many families were on vacation. The campaign has run every summer since 2009, and to date, it has collected more than 39 million pounds of food, including 14.8 million pounds last year alone. The Department of Justice has contributed more than 73,425 pounds to food banks across the country.
For more information visit www.usda.gov/fedsfeedfamilies or call the U.S. Attorney’s Office, Western District of Louisiana, at 337-262-6618.
U.S. Attorney's Office and others to host cyber security conferenceRead the Press Release
Federal Bureau of Investigation Director James Comey will be among the speakers Wednesday, Oct. 14, when Northeast Ohio organizations host the region’s inaugural CyberSecurity Conference.
The free event, which also features Chris Inglis, former Deputy Director of the National Security Administration, marks the official launch of a public-private partnership designed to enhance the region’s capacity for preventing and responding to cyber attacks.
Two of Northeast Ohio’s most important assets are the intellectual property that is developed here, and the cooperative spirit that separates this region’s DNA from others, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and one of the conference organizers. ”This conference and the consortium that is being announced tap into these collective strengths to safeguard our area’s future.”
In addition to national speakers, the one-day conference at the Cleveland Convention Center also includes an overview of the new partnership as well as a presentation regarding cyber preparations for the Republic National Convention. Attendees also will participate in a simulation of a cyber attack on key Cleveland entities.
“This partnership has immense potential to advance Northeast Ohio,” said Ronn Richard, President and CEO of the Cleveland Foundation and one of the conference panelists. “Not only will it strengthen our collective ability to combat cyber crime, but it also will connect industry, government and education in ways that encourage innovation and economic development.”
Over the past several months, Dettelbach’s office has been working closely with Case Western Reserve, Cleveland Clinic, and the Federal Reserve Bank of Cleveland to explore ways to increase Northeast Ohio’s expertise in this realm. Over time the four original groups engaged major organizations across the area, and also researched successful efforts elsewhere. One of the most well-known of these initiatives is Boston’s Advanced Cyber Security Center (ACSC).
Begun in 2007, that center now includes more than 30 members representing fields from government and financial services to health care and higher education. Members of the nonprofit consortium have access to a threat information sharing portal, an email list server, a structured information database platform, and other secured means of online engagement. In addition, those directly responsible for threat protection in their organizations meet every other week, while senior leaders meet every other month.
MITRE, a national nonprofit that runs research and development initiatives for the federal government, played a pivotal role in the development of Boston’s initiative. Cleveland leaders consulted extensively with MITRE when they first began discussing the issue, and later visited Boston to learn more about it and the ACSC. MITRE is continuing to assist with Northeast Ohio’s initiative, and will have representatives at the conference.
In addition to Dettlebach, the event’s opening speakers include Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland division; Toby Cosgrove, CEO and President of Cleveland Clinic; and Barbara R. Snyder, President of Case Western Reserve.
James Penrose, Chief Technology Officer of the global cyber security firm Darktrace, will explain some of the benefits of public-private partnerships, while representatives of the FBI, Federal Reserve Bank and U.S. Secret Service will detail government’s efforts to combat cyber attacks. The conference also will cover specific industry trends in banking, education, energy and health care.
Ultimately the consortium could expand its work to encourage regional research and job training initiatives, as Boston’s center has done. As higher education entities increasingly interact with other consortium members, universities will gain a deeper understanding of immediate and longer term needs in terms of staffing and potential countermeasures.
For more information about the consortium and to register, please visit www.neocyberconsortium.com.
Two Rutland Residents Charged FederallyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Young Lim (a.k.a. “Johnny”), 34, and Andi Majka, 27, both of Rutland, were charged with felony distribution of crack cocaine in the Rutland area. The allegations in the indictment concern alleged conduct from May and August of 2014. Both Young and Majka entered not guilty pleas at their arraignment. Magistrate Judge John Conroy granted the Government’s motion to detain them, without bail, and ordered that both be held in the custody of the U.S. Marshals pending trial. The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If convicted, Lim and Majka face a maximum possible term of imprisonment of twenty years. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. This case was investigated by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Rutland Police Department. The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Young Lim is represented by David McColgin, Esq. of the Federal Public Defenders Office in Burlington. Andi Majka is represented by David Watts, Esq. of Burlington.Two Miami-Dade County Residents Sentenced for Possessing Stolen Personal Identification Information at Fort Lauderdale-Hollywood International AirportRead the Press Release
Two Miami-Dade County residents were sentenced to prison terms for their participation in a stolen identity tax fraud scheme based on information discovered while they were boarding a flight at the Fort Lauderdale-Hollywood International Airport.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Phillip Collins, 29, of Miami Gardens, was sentenced to 25 months in prison, followed by three years of supervised release. Godfrey Teekah, Jr., 28, also of Miami Gardens, was sentenced to 24 months in prison, followed by three years of supervised release. Both defendants were also ordered to pay restitution. Collins and Teekah previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) and 2.
According to court documents, the defendants were stopped while attempting to board a flight at Fort Lauderdale-Hollywood International Airport in February 2013. Teekah was found in possession of nine debit cards embossed with names other than his own and $4,365 in U.S. currency. Collins was in possession of a debit card in someone else’s name. Two computers were also found in the defendants’ possession. A search of Teekah’s computer revealed photographs of handwritten notes containing personal identification information (PII), IRS employer identification numbers, and IRS website access logs. A search of Collins’ computer revealed temporary internet files for “get my prepaid card,” “irs.gov” and “gfx-prepaid-cards.” A search of Teekah’s bag revealed three additional debit cards, along with manila envelopes containing hundreds of individuals’ PII including names, dates of birth and Social Security numbers. In total, the defendants unlawfully possessed PII belonging to over three hundred individuals. Both Teekah and Collins were aware that false tax returns would be filed using the PII and that the debit cards were used to obtain the fraudulent tax refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI and the BSO. This case was prosecuted by Assistant U.S. Attorney Randy Katz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Hezbollah Associates Arrested on Charges of Conspiring to Launder Narcotics Proceeds and International Arms TraffickingRead the Press Release
Earlier today, Iman Kobeissi, also known as “Iman Kobeissu” and “Iman Kobreissi-Ghadry,” was arraigned at the federal courthouse in Brooklyn, New York, on money laundering conspiracy charges and unlicensed firearms dealing conspiracy for laundering funds she believed to be drug money, and for arranging for the sale of thousands of firearms, including military assault rifles, machine guns, and sniper rifles, to criminal groups in Iran and Lebanon, including Hezbollah, a designated terrorist organization. [1] Kobeissi was arrested yesterday in Atlanta, Georgia. An indictment was also unsealed today against Joseph Asmar, an alleged Hezbollah associate who is charged with money laundering conspiracy. Asmar, Kobeissi’s alleged co-conspirator, was arrested in Paris, France, on a provisional arrest warrant issued from the Eastern District of New York.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Carl J. Kotowski, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New Jersey Field Division.
According to court filings, the investigation, a DEA sting operation, determined that between September 2013 and October 2015, the defendants and other Hezbollah-connected associates conspired to conduct monetary transactions to assist individuals, who they believed to be drug traffickers, in concealing their drug money. In addition to offering to launder narcotics proceeds for a DEA undercover agent posing as a narcotics trafficker, Kobeissi informed him that she had associates in Hezbollah who were seeking to purchase cocaine, weapons, and ammunition. Asmar, allegedly an attorney with high-level connections at various banks throughout the Middle East and Europe, discussed potential narcotics transactions with the undercover DEA agent and suggested that he could use his connections with Hezbollah to provide security to narcotics shipments. Kobeissi and Asmar explained that they could arrange for planes from South America laden with multi-ton shipments of cocaine to land safely in Africa as a transit point before the drugs were smuggled to the United States or Europe.
In a series of recorded conversations, Kobeissi and Asmar discussed their money laundering network that spanned the globe and provided money laundering services to drug traffickers, terrorist organizations, and other criminal groups in Lebanon, Iran, France, Belgium, Bulgaria, Benin, the Democratic Republic of the Congo, Ghana, Nigeria, Cypress, and cities across the United States. Asmar claimed that, with his connections in the financial world, he could launder any sum of illegal money. During the course of the investigation, undercover agents provided approximately $400,000 in purported drug proceeds to Kobeissi and Asmar, who laundered the money back to the United States in exchange for a commission. As alleged, the defendants conspired to launder a total of $8 million in illicit funds on behalf of purported South and Central American drug trafficking organizations.
Kobeissi also allegedly arranged to obtain firearms and heavy weapons for her associates in Hezbollah and other independent criminal groups in Iran. During recorded conversations between Kobeissi and the undercover DEA agent, Kobeissi stated that she had customers in Iran who would like to purchase a variety of firearms and blue prints for “heavy weaponry.” In one list Kobeissi provided to the undercover agent containing a request for firearms for her Iran-based customer, Kobeissi included an order for more than 1,000 military-style assault rifles, including M200 sniper rifles, M4 carbine rifles, and Objective Individual Combat Weapons, as well as 1,000 Glock handguns. In another communication, Kobeissi attempted to obtain thousands of handguns for her Hezbollah associates. In recorded conversations between Kobeissi and the undercover DEA agent, Kobeissi also discussed the potential for obtaining aircraft parts for her customers in Iran in violation of U.S. sanctions. In those recordings Kobeissi can be heard stating that they had to hurry and obtain the aircraft parts while there were still sanctions against Iran so they could earn additional money for smuggling in the sanctioned parts.
Kobeissi was arrested on October 8, 2015, following a meeting in Atlanta with a criminal associate allegedly discussing the smuggling of blood diamonds out of Africa as a method to launder millions of dollars in drug proceeds.
“This investigation demonstrates the increasingly global reach of criminal organizations and marks an important victory in disrupting a vast money laundering, drug trafficking, and international arms trafficking network that spanned multiple continents and attempted to provide a pipeline of dangerous weapons to a designated terrorist organization,” stated Acting United States Attorney Currie. “Through our partnerships with law enforcement agencies around the world, we will continue to target and dismantle transnational criminal organizations.” Mr. Currie thanked the Department of Justice, Office of International Affairs; DEA New Jersey Field Division; DEA Atlanta Field Office; and DEA France Country Office for their invaluable assistance.
DEA Special Agent-in-Charge Kotowski said, “As alleged, this investigation shows the true relationship between narcotics trafficking and terrorist organizations. There isn’t any part of the world that the men and women of DEA would not go to track down such criminals. Today, the world is a little bit safer because of the arrest of these two individuals.”
Kobeissi was arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn and remanded without bail.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Steven L. Tiscione and Gina M. Parlovecchio are in charge of the prosecution.
The Defendants:
Iman Kobeissi
Age: 50
Beirut, LebanonJoseph Asmar
Age: 42
Beirut, LebanonE.D.N.Y. Docket No. 15-CR-491 (ENV); 15-M-962
[1] Hezbollah has been designated as a foreign terrorist organization by the United States Department of State since 1995.
Thompson Resident Sentenced to Prison for Trading Child Pornography over the InternetRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that DARRICK COLLETTE, 34, of Thompson, formerly of Putnam, was sentenced today by United States District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by seven years of supervised release, for trading child pornography over the Internet.
According to court documents and statements made in court, on March 19, 2013, an FBI special agent logged onto a publicly available Internet peer-to-peer file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to COLLETTE’s residence while he was living in Putnam. During a search of the residence on June 13, 2013, law enforcement officers seized computers and multiple external hard drives. COLLETTE was arrested at that time after he admitted that he had been downloading and trading child pornography over the Internet for more than 10 years. A subsequent forensic analysis of COLLETTE’s computers and hard drives revealed more than 600 image files and videos of child pornography, including files depicting children under the age of 12 engaged in sexually explicit conduct, and images of children engaging in sadistic or masochistic conduct.
On October 9, 2014, COLLETTE waived indictment and pleaded guilty to one count of receipt and distribution of child pornography.
COLLETTE, who is released on bond, was ordered to report to prison on December 18, 2015.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Texas Man Sentenced for Drug Conspiracy and Transporting Drug ProceedsRead the Press Release
Woodrow Rutherford, 72, from Houston, Texas, was sentenced on October 8, 2015, in federal district court, in East St. Louis, Illinois, following his plea of guilty to one count of Conspiracy to Distribute and Possession with Intent to Distribute a Controlled Substance and one count of Interstate Travel in Aid of Racketeering, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Rutherford was sentenced to 21 months in federal prison, to be followed by three years of supervised release. He was also fined $500 and ordered to pay $100 special assessment. Court proceedings revealed that Rutherford drove from Texas to Chicago in June 2013 at the command of a drug organization to collect money from the sale of marijuana. After collecting approximately $103,000 in drug proceeds, Rutherford then traveled through Madison County, Illinois, where his vehicle was stopped by law enforcement officials and the drug proceeds recovered.
This case was investigated by the Drug Enforcement Administration (DEA) and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
St. Thomas Man Pleads Guilty to Transmission of Threat to InjureRead the Press Release
– Kamoui Francis, 25, pleaded guilty today in District Court on St. Croix to
Transmission of Threat to Injure, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on January 28, 2014, a testifying witness in
a murder case in the Superior Court on St. Croix received two threatening messages. The threats were
sent from a mobile device to a Facebook account, and warned that if any of the defendants were found
guilty, the witness and members of the witness’ family would be killed. As part of the investigation of
the case, on February 5, 2014, Bureau of Corrections officers searched Francis’ cell at Golden Grove
Adult Correctional Facility on St. Croix. Francis was the sole occupant of his cell. During the search,
Francis was found in possession of the cellphone from which the threats were made.
Francis faces a maximum sentence of five years in prison and a $250,000 fine. A sentencing date
has been set for February 10, 2015.
This case was investigated by the Federal Bureau of Investigation and the Virgin Islands Bureau
of Corrections. It is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.Speech Therapist and Office Manager Sentenced for Health Care FraudRead the Press Release
HOUSTON – A Houston speech therapist who owned a clinic in Sugar Land has been ordered to federal prison for 151 months following her conviction related to a health care fraud scheme that billed Tricare and Blue Cross and Blue Shield of Texas more than $3.8 million, announced U.S. Attorney Kenneth Magidson. Rebecca Lee Rabon, 44, pleaded guilty March 20, 2015. Co-defendant and office manager Tiffany Nicole Thompson, 32, of Katy, also pleaded guilty for her role in the scheme and was sentenced to serve 51 months.
After a lengthy sentencing hearing today, U.S. District Judge Melinda Harmon found that Rabon, the owner of Rabon Communication Enhancement (RCE) had not only committed the health care fraud she was charged with in January of 2014, but that she had also violated a magistrate judge’s pre-trial bond order that she not submit any more health care claims pending resolution of the matter. Judge Harmon heard testimony about the defendant’s role in the crime, and the prosecution read from an email written by Rabon that stated “risking going to jail if I get caught is worth” [it]. The prosecutor also read from a letter submitted by one of Rabon’s employees who was also a victim of the fraud. The employee wrote that she was shocked to learn the defendants had submitted fraudulent claims for children treated at RCE and “more shocked” to learn that Rabon and Thompson had submitted fraudulent claims under her private medical insurance for her as well as forged her signature on a letter directing Blue Cross and Blue Shield to send her explanation of benefits statement to Rabon’s home. Judge Harmon considered the fact that the health care fraud affected Tricare, a government health insurance program, and that it took place over an extended period of time - between January 2009 and November 2011 - in arriving at her sentence. The defendants submitted at least $3.8 million in fraudulent claims to Tricare and Blue Cross and Blue Shield during the conspiracy and received $1.2 million in payments.
Both defendants must also serve respective three-year-terms of supervised release following completion of their sentences and were further ordered to pay $1.2 million in restitution to Tricare, Blue Cross and Blue Shield and United Health Insurance. As a result of her conviction, Rabon forfeited her house on Sept. 25, 2015.
At the time of their respective pleas, Rabon and Thompson admitted they conspired together to submit claims to insurance providers for services that were not medically necessary and not provided. Between March 29, 2009, and Nov. 11, 2013, the clinic did not have the equipment or supplies to provide treatment for dysphagia - a swallowing and oral feeding dysfunction. Neither Rabon, nor any speech therapist employed at RCE, provided any of those treatments to children at the clinic. Both also admitted to submitting thousands in false and fraudulent claims for themselves and three unsuspecting RCE employees for various medical and speech therapy services that were not provided. As part of their scheme, they also sent a forged letter to Blue Cross and Blue Shield of Texas with a false address for an employee to prevent them from discovering the fraud.
Rabon has been in custody since Jan. 23, 2015, for violating the terms of her pre-trial release where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Thompson was permitted to remain on bond and voluntarily surrender at a later date.
The investigation into Rabon and Thompson was the result of an investigation conducted by agents from the Department of Defense - Criminal Investigative Service with assistance of Blue Cross and Blue Shield of Texas – Special Investigations Department. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Shepherdsville, Kentucky, Man Guilty of Embezzling over $800,000 from His EmployerRead the Press Release
Manipulated accounting entries to hide his theft
LOUISVILLE, Ky. – U.S. Attorney John E. Kuhn, Jr. announced the guilty plea, this week, of a Shepherdsville, Kentucky, man who was charged with embezzling more than $800,000 from his employer during a seven year period.
Robert Kaiser, 58, pleaded guilty on October 8, 2015, in U.S. District Court, before District Judge Greg N. Stivers, to all twelve counts of a September 4, 2014 grand jury indictment. The indictment included eleven counts of wire fraud and one count of bank fraud. The indictment was unsealed on September 8, 2014.
The theft from his employer, C&M Services of Kentucky, Inc. (“C&M Services”) occurred between June 6, 2006 and March 26, 2013, and included an attempt to defraud Fifth Third Bank by submitting fraudulent financial statements to obtain a loan.
In court, Kaiser admitted to causing unauthorized transfers of monies to accounts he controlled. Further, Kaiser fraudulently transferred funds of C&M Services via credit card transfers and checks for unauthorized personal expenditures, and then concealed all of his theft from C&M Services by making false accounting entries and submitting fraudulent financial statements to obtain a revolving line of credit from Fifth Third Bank in order to conceal his theft.
In furtherance of the scheme, Kaiser caused interstate automated clearing house financial transfers from the C&M Services bank accounts at Fifth Third and Republic Banks to his personal Wells Fargo Credit Card accounts. According to the Indictment, Kaiser made eleven transactions between September 9, 2009, and January 22, 2013.
Also, between December 14, 2012, and March 26, 2013, Kaiser admitted to submitting materially false financial statements to Fifth Third Bank to obtain a revolving loan line of credit in the amount of $1,815,000.
At sentencing, Kaiser could forfeit real property he obtained, directly or indirectly, as a result of the violations in the indictment and could be sentenced to no more than 20 years in prison for each of counts 1-11 (wire fraud) of the indictment and no more than 30 years for count twelve (bank fraud). Further, the Judge could impose a fine of $3,750,000 and order Kaiser to serve three years of supervised release. Kaiser is scheduled for sentencing in Louisville on January 7, 2016 before Judge Stivers.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the United States Secret Service, Louisville Field Office.
Sex Offender SentenceRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that Michael Robert Erskine was sentenced for receipt of child pornography in violation of 18 U.S.C. Section 2252A(a)(2) and failure to register as a sex offender in violation of 18 U.S.C. Section 2250(a).
Erskine was convicted in 1995 of Aggravated Sexual Battery on an eight year old victim in Hampton, Virginia. As a result of this conviction, Erskine was required to register as a sex offender. He was arrested on December 22, 2014 by the Saraland Police Department after he attempted to travel to the Philippines without prior approval. The Saraland Police Department referred the case to the United States Marshals Service for investigation of a federal charge of failure to register as a sex offender. The case was also referred to Homeland Security Investigations because images of child pornography were found on his computer.
At the sentencing hearing before Judge Kristi Dubose, the United States played portions of defendant’s taped statement admitting that he used the images in order to satisfy his urges for children. Because of the prior conviction and the continuing danger that he posed to the community, Erskine was sentenced to serve 180 months imprisonment and a life time term of supervised release.
This case was investigated by the Saraland Police Department, United States Marshals Service and the Department of Homeland Security. The case was prosecuted by the United States Attorney=s Office for the Southern District of Alabama, AUSA Maria Murphy.
Second Employee from Iowa City Pipe Dreamz Store Pleads Guilty to Federal Synthetic Drug ChargesRead the Press Release
A man who worked at a head shop in Iowa City pled guilty to federal drug charges on October 8, 2015, in federal court in Cedar Rapids.
Wayne Christopher Watkins, age 40, from Peoria, Illinois, was convicted of conspiring to manufacture and distribute a synthetic drug called AB-FUBINACA. The owner of Pipe Dreamz in Iowa City, Robert Carl Sharp, pled guilty on October 5, 2015.
In a plea agreement, Watkins admitted that Sharp was released from federal prison in 2012, and shortly thereafter began selling, and later manufacturing, smokeable synthetic cannabinoid products which are commonly known as “Spice,” “incense,” or K2. Watkins initially worked for Sharp at a store in Peoria, Illinois, called Smoke N Ink. Both men moved to Iowa in 2013 when Sharp opened a head shop in Iowa City called Pipe Dreamz. Sharp would order synthetic cannabinoid chemicals and also purchase bulk quantities of dried damiana leaves, a plant material that resembles dried marijuana. Watkins admitted Sharp would purchase synthetic cannabinoid chemicals, packaging materials, and inert plant material (typically damiana leaf), from various suppliers and then Sharp and defendant would manufacture synthetic cannabinoid products from the materials. Watkins admitted he would dilute the synthetic cannabinoid chemical in acetone, and then spray the mixture onto the damiana leaves. Watkins would then add some flavoring and package the substances into the various brands sold by Sharp.
Watkins and Sharp sold these products in packets that marketed the substances as incense, and contained a warning that the products were “not for human consumption,” although both men admitted they knew the products were actually intended for human consumption. The synthetic cannabinoids in these products were actually research chemicals that have not been tested or approved as safe for human consumption, and which have unpredictable short-term effects and unknown long-term effects on users.
On May 7, 2014, Sharp’s store, his house and storage unit in Center Point, Watkins’s house in Cedar Rapids, and the Pipe Dreamz store in Iowa City were all searched by federal law enforcement. During the searches, officers seized thousands of synthetic cannabinoid products, including the sprayed-on plant variety and a liquid form of the synthetic cannabinoids that was designed for use in e‑cigarettes. Officers seized an active manufacturing operation in Watkins’s house, as shown in photographs admitted at an earlier hearing. watkins_exhibit_photos.pdf (30.96 MB)
Watkins claimed Sharp told him that the chemicals they were using were legal. Despite those statements from Sharp, however, he admitted he believed there was a high probability that the substances he received and distributed were regulated by federal drug laws, but took deliberate actions to avoid learning of the true identity of the substances.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Watkins remains in the custody of the United States Marshal pending sentencing. Watkins faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime of supervised release following any imprisonment.
The case was investigated by the Iowa City Police Department and as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-31-1-LRR.
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Schuele Boys Gang Associate Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Ikeem Lyons, 22, of Buffalo, who was convicted of conspiracy to distribute cocaine, was sentenced to 10 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney George C. Burgasser, who handling the case, stated that between June 2013 and July 23, 2014, the defendant bought quantities of cocaine from co-defendant Michael Robertson. Lyons then re-sold the cocaine to co-defendants Aaron Glenn, Demetrius Holmes and others.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Lyons is one of 28 Schuele Boys Gang members and associates arrested in this case. To date, 13 of the defendants have been convicted. Lyons is the first defendant to be sentenced.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Sandoval Woman Pleads Guilty to Federal Drug ConspiracyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Kathy Sue Tomes, 62, of Sandoval, Illinois, pled guilty on October 7, 2015, to an indictment returned by a Federal Grand Jury in December 2014 against her and others. All charges relate to the production and distribution of methamphetamine - Count 1 of the indictment is a Conspiracy to Manufacture and Distribute Methamphetamine from February 28, 2014, through October 1, 2014, in Clinton and Marion Counties, and, Count 8 related to Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reasonable Cause to Believe that It Would Be Used to Manufacture Methamphetamine.
Count 1 carries a penalty of not less than 5 years, up to a maximum of 40 years in federal prison, a $5 million fine, and at least 4 years of supervised release. Count 8 carries a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years of supervised release. Both counts require an assessment of $100. There is no parole in the federal system. Sentencing is scheduled January 22, 2016.
Information leading to the charges against Tomes was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Rosebud Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Involuntary Manslaughter was sentenced on October 6, 2015, by U.S. District Judge Roberto A. Lange.
Jason Kimmel, Sr., age 35, was sentenced to 48 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Kimmel was indicted by a federal grand jury on April 14, 2015. He pled guilty on July 20, 2015.
The conviction stemmed from an incident on March 1, 2015, when Kimmel, who was driving a 2001 Chevrolet Blazer, was involved in a single vehicle wreck on a roadway near the Rosebud Adult Corrections Facility in Rosebud. Robert “Oscar” Kills and Keith Sun Bear were passengers in the vehicle. Kimmel was driving erratically and lost control of the vehicle. Sun Bear was ejected, Kimmel was found inside the vehicle, and Kills was found outside the vehicle.
Witnesses to the accident called 911, and Rosebud Sioux Tribe Law Enforcement Services officers responded to the scene. Sun Bear was pronounced dead at the scene. Kimmel and Kills were transported to the Indian Health Services hospital for their injuries. Kimmel consented to a blood draw while at the hospital. The blood sample was sent to the South Dakota Department of Health Lab for testing, and the report indicated that Kimmel’s blood alcohol concentration was .345 immediately following the accident.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Kimmel was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assault with a Dangerous Weapon and Prohibited Person in Possession of AmmunitionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assault with a Dangerous Weapon and Prohibited Person in Possession of Ammunition was sentenced on October 5, 2015, by U.S. District Judge Roberto A. Lange.
Randy Harlan Arcoren, Jr., age 33, was sentenced to 44 months in custody on each count to be served concurrently, followed by 2 years of supervised release, and a special assessment of $200 to the Federal Crime Victims Fund.
Arcoren was indicted by a federal grand jury on April 14, 2015. He pled guilty on July 20, 2015.
Arcoren was convicted of a federal crime and was sentenced in 2006 to 51 months in custody. On March 3, 2015, Arcoren was with his girlfriend, the victim, at their trailer home in St. Francis. Arcoren and the victim began to argue, and Arcoren threw objects at the victim and threatened physical harm. Arcoren then hit the victim on her arms with a tent stake that he had sharpened. The argument lasted several hours and Arcoren and the victim moved between the trailer home and the victim’s vehicle, and at one point Arcoren drove the victim to another property. Throughout the course of the argument, Arcoren had in his possession forty rounds of Federal .22 caliber ammunition, and thirty-seven rounds of Remington .22 caliber ammunition.
A Special Agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives performed an interstate nexus on the ammunition in Arcoren’s possession and determined that the ammunition is defined as ammunition, and that it was not manufactured in the state of South Dakota. Accordingly, the ammunition was shipped or transported in interstate commerce.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Arcoren was immediately turned over to the custody of the U.S. Marshals Service.
Rexburg Man Sentenced for Illegally Storing and Disposing of Hazardous WasteRead the Press Release
POCATELLO – Max Spatig, 73, of Rexburg, Idaho, the owner of MS Enterprises, was sentenced yesterday to 46 months in prison for knowingly storing and disposing of hazardous waste on a property off the Archer-Lyman Highway near Rexburg, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Wiley Y. Daniel, a visiting judge from the District of Colorado, also ordered Spatig to pay $498,652 in restitution, and serve three years supervised release following his release from prison. Spatig was indicted by a federal grand jury on December 11, 2012, and convicted following a two-week jury trial in June.
According to the evidence introduced at trial, on July 8, 2010, a total of 3,478 containers of hazardous waste materials were found on the property outside of Rexburg. Many of the containers were labeled as containing hazardous materials and many were corroded. They had been left outdoors for years. Samples taken from some of the containers confirmed that the contents were hazardous waste due to ignitability and corrosivity characteristics. Ignitable materials catch fire at relatively low temperatures and present a dangerous fire hazard. Corrosive materials cause other materials to dissolve on contact. The contents of the containers were shipped to a hazardous waste disposal facility, incurring a cost to the federal government of $498,652. Neither MS Enterprises nor Spatig had any permits from the Environmental Protection Agency (EPA) or the Idaho Department of Environmental Quality (DEQ) that would have covered the operation of a hazardous waste dump.
Spatig had engaged in similar conduct before. In 2005, the State of Idaho cleaned up hazardous waste from another property belonging to Spatig near Menan in Jefferson County, Idaho. The cost of that cleanup was $188,000. Previous to 2005, Spatig engaged in similar conduct in Kaysville, Utah. Because of multiple violations of court-orders prior to trial and offenses committed while on pre-trial release, Spatig has been held in custody since September 11, 2014.
“Mr. Spatig’s conduct of illegally storing hazardous materials has been a longstanding problem and source of environmental danger for various communities with our state,” said Olson. “We are proud of the combined effort of local, state and federal agencies in putting an end to this behavior through the prosecution of Mr. Spatig. This prosecution and sentencing should send a message that we will not tolerate the contamination of our communities through the illegal storage of hazardous waste.”
"Hazardous waste can pose serious threats to human health and the environment, so it’s imperative that companies dispose of it properly," said Scot Adair, Acting Special Agent in Charge of EPA’s criminal enforcement program in Idaho. “The defendant stockpiled thousands of gallons of flammable and highly corrosive materials – exposed to the elements – putting the unsuspecting public at serious risk. Today’s sentencing shows that those who repeatedly refuse to comply with our environmental laws will be prosecuted.”
The case was the result of a joint investigation of the Environmental Protection Agency, the Idaho Department of Environmental Quality, and the Madison County Sheriff’s office. It was prosecuted jointly by the U.S. Attorney’s Office and the Environmental Crimes Section of the U.S. Department of Justice.
Providence Resident Sentenced on Drug and Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Darren Monteiro, 28, of Providence, was sentenced today to 41 months in federal prison on federal drug and firearm charges, announced United States Attorney Peter F. Neronha, Providence Police Chief Hugh T. Clements, Jr., and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Monteiro to serve 6 years supervised release upon completion of his prison sentence. Monteiro pleaded guilty on July 23, 2015, to one count each of distribution of heroin and being a felon in possession of a firearm.
According to court records and information presented to the court, an investigation into Monteiro’s drug trafficking activities by the Providence Police Department’s Narcotics and Organized Crime Bureau included four purchases of heroin packets between November 8 and November 19, 2013. In addition, Monteiro arranged with a Providence Police undercover detective to purchase a firearm and ammunition he said that he intended to use to commit an armed robbery. Monteiro was arrested on November 13, 2013, moments after he took possession of a semi-automatic handgun and ammunition.
Monteiro has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
ATF agents assisted Providence Police in the investigation of this matter.
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Jim Martin (401) 709-5357
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Property Managers and Sisters Sentenced to Lengthy Prison Terms for Renting to CriminalsRead the Press Release
PHOENIX – Yesterday, Marycela Rivas, 36, of Avondale, Ariz., was sentenced by Senior U.S. District Judge Roslyn O. Silver to 33 months’ imprisonment. Her sister, Leticia Montano, a.k.a. Leticia Rivas, 42, of Phoenix, was previously sentenced to 63 months’ imprisonment. Both women had pleaded guilty to conspiracy to harbor illegal aliens.
Between 2008 and 2013, Montano, a licensed realtor, managed 279 residences through several companies she owned and operated: Sol Realty, Metro North Realty, and AZ Home Property Management. The evidence presented at sentencing revealed that Montano and her employees, including her co-defendant and sister Rivas, would-in return for extremely high fees-assist certain renters in concealing their true identities from the property owners and law enforcement. These renters would, in turn, use the properties to facilitate criminal activity such as drug smuggling and alien smuggling.
The investigation in this case was conducted by Homeland Security Investigations and the Glendale and Phoenix Police Departments. The prosecution was handled by Lisa E. Jennis, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-00388-PHX-ROS
RELEASE NUMBER: 2015-099_Montano et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Prisoner Who Escaped from Custody at Virginia Hospital Sentenced to 32 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Wossen Assaye, 43, of Arlington, was sentenced today to 384 months in prison, followed by five years of supervised release for two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, with both counts based on his armed assaults of two security guards during his March 31, 2015, escape from Inova Fairfax Hospital. Assaye was also ordered to pay restitution in the amount $34,870 for the 12 bank robberies, and was ordered to undergo drug testing and treatment in addition to a mental health evaluation and treatment.
Assaye pleaded guilty on July 23, 2015. According to court documents, Assaye accepted responsibility for not only the firearms offenses, but also additional criminal conduct for which he was charged or suspected to be responsible. According to the statement of facts, beginning in October 2013 and continuing until March 2015, Assaye robbed various banks in Northern Virginia on 11 occasions, two of which were armed robberies. In another instance, Assaye entered a bank with the intent to commit bank robbery and larceny. After being arrested for his crimes, Assaye escaped from federal custody while at a Virginia hospital for treatment. During the course of his escape, Assaye assaulted a security guard, overpowered her, and took her firearm. He then pointed the firearm at a second guard before pulling the first guard down the hospital hallway at gunpoint and fleeing the hospital.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police; Earl L. Cook, Alexandria Chief of Police; Michael L. Chapman, Loudoun County Sheriff; and Mary Gavin, Falls Church Chief of Police, made the announcement after sentencing by Judge Brinkema.
This case was investigated by the FBI’s Washington Field Office, Fairfax County Police Department, Alexandria City Police Department, Loudoun County Sheriff’s Office, and the Falls Church City Police Department. Also, during the course of the investigation assistance was received from U.S. Marshals Service, Virginia State Police, Arlington County Police Department, and Metropolitan Police Department of the District of Columbia. Assistant U.S. Attorneys Michael E. Rich and William M. Sloan, and Special Assistant U.S. Attorney William A. Glaser prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-115.
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Petoskey Attorney, Michael Aho Kennedy, Indicted for Mail Fraud and False Tax ReturnsRead the Press Release
Michael Aho Kennedy Allegedly Embezzled Over One Million Dollars from Client
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Michael Aho Kennedy, age 67, of Petoskey, Michigan, was indicted by a federal grand jury for carrying out a mail fraud scheme and filing false federal income tax returns. Counts 1 to 6 of the indictment allege that Kennedy served as the trustee of a trust that he drafted for his client, Virginia Weber. According to the indictment, Kennedy allegedly embezzled over one million dollars from Ms. Weber’s trust between 2006 and 2012 and concealed his embezzlement by sending her false periodic statements of account that made it appear as if the trust assets still existed.
Counts 7 to 9 of the indictment allege that Kennedy filed false amended tax returns for tax years 2007, 2008 and 2009. Kennedy initially reported the embezzled funds as income on his federal income tax returns for those years and paid the 2007 income taxes with money he embezzled from the victim. However, when the Internal Revenue Service attempted to collect the income taxes owed for tax years 2008 and 2009, Kennedy amended his federal income tax returns for all years by falsely claiming that the embezzled funds were loans or investments not subject to income tax.
Kennedy is currently lodged at the Emmet County Jail on charges brought by the Michigan Attorney General’s Office relating to his embezzlement from the same victim from October 8, 2009 to February 22, 2010.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Parmelee Man Sentenced for Assaulting A Federal OfficialRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man convicted of Assaulting a Federal Official was sentenced on October 6, 2015, by U.S. District Judge Roberto A. Lange.
Randy Running Horse, age 38, was sentenced to 14 months in prison, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Running Horse was indicted by a federal grand jury on May 12, 2015. He pled guilty to the indictment on July 20, 2015.
The conviction arose from incidents that occurred on April 4, 2015, at Rosebud, when Running Horse struck a medical provider who was rendering him medical care. Running Horse was intoxicated, had been injured, and was at the Rosebud Indian Health Services (IHS) Hospital receiving stitches. He was being treated by medical providers, but became belligerent and used his fist to strike an IHS nurse in the head. A security guard and a Rosebud Sioux Tribe Law Enforcement Services officer responded to the assault, and Running Horse was arrested. Running Horse was hostile towards the security guard and the police officer, and also threatened the police officer and the officer’s family. Later, he was uncooperative with jail staff.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Supervisory Assistant U.S. Attorney Tim Maher prosecuted the case.
Orange County, Texas Man Charged with Federal Drug Trafficking ChargesRead the Press Release
BEAUMONT, Texas – A 59-year-old Orange, Texas man has been indicted on federal drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Grover Lee Roberts was indicted on Oct. 7, 2015 and charged with conspiracy to possess with intent to distribute crack cocaine. Roberts was arrested in Orange today on those charges.
According to the indictment, since 2008, Roberts conspired with others to distribute more than 28 grams of crack cocaine from his residence on South Hart Avenue in Orange, Texas.
If convicted, Roberts faces up to 40 years in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Oil Company Charged with Failing to Notify of Hazardous Waste SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WALTER OIL & GAS CORPORATION, a Texas corporation domiciled in Houston, Texas, was charged today in a one-count Bill of Information with a felony violation of failing to immediately notifying the proper agency of a hazardous waste spill under Title 33, United States Code, Section 1321(b)(5)(C), in connection with their oil and gas production activities in the Gulf of Mexico.
According to the Bill of Information, on or about March 31, 2014, in the navigable waters of the United States and within the Eastern District of Louisiana, WALTER OIL & GAS CORPORATION, an entity in charge of an offshore facility from which hazardous substances were discharged in a quantity which may be harmful into navigable waters of the United States, failed to immediately notify the appropriate agency of the United States government as soon as it had knowledge of the discharge.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”) in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.