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Thursday 8 October 2015
White Sulphur Springs woman pleads guilty to Federal drug chargeRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a White Sulphur Springs woman pled guilty to a federal drug charge in federal court in Beckley. Paula Kay Butts, 50, pled guilty to using a communication facililty to facilitate a felony drug offense, admitting that on June 27, 2015, she used a telephone to help set up a drug deal with a confidential informant. Later that day Butts completed the deal, distributing methamphetamine to the informant. When Butts used the telephone, she was in or near White Sulphur Springs.
She faces up to four years in prison and a $250,000 fine when she is sentenced on January 28, 2016. This case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale and use of heroin and illicit prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down drug trafficking, eliminating open air drug markets, and curtailing the spread of heroin and other opiate painkillers in communities across the Southern District. Assistant United States Attorney John File is handling the prosecution.
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U.S. Attorney's Office Obtains Settlement with Fitzgerald Public Schools Requiring Bus Stop AccessibilityRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with the Fitzgerald Public Schools in Warren, Michigan, to resolve allegations that it denied services to a parent with a mobility disability when it refused to provide a bus stop that she could access, in violation of the Americans with Disabilities Act (ADA), U.S. Attorney Barbara L. McQuade announced today. “This case is a reminder that school districts are required to make reasonable modifications to ensure equal access for everyone,” U.S. Attorney Barbara McQuade said. “Parents have the right to participate in their children’s education, including taking their children to the bus stop. Schools have a responsibility to take reasonable steps to reduce barriers to full participation.” The settlement resolves a complaint that the Fitzgerald Public Schools failed to accommodate a parent with a disability who uses a wheelchair when the school district refused to modify the location of her children’s bus stop so that she could access the area to ensure that her children arrived at the bus stop and boarded safely. The mother initially requested an accessible bus stop in September 2014 when her youngest child started kindergarten, but the district did not modify the bus stop location until March 2015. Under the settlement, the Fitzgerald Public Schools agreed to update its policies and training materials to ensure compliance with the ADA, pay compensatory damages to the complainant and provide an accessible bus stop so long as the complainant has elementary age children who ride the district’s school buses. Those interested in finding out more about this settlements, the obligations of public entities under the ADA, or filing a complaint may contact the U.S. Attorney’s Office via email at: [email protected], or by calling: 313-226-9151. They may also contact the Justice Department through its toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), access its ADA website at www.ada.gov, or file a complaint by email at [email protected].Two convicted for role in Baltimore to West Virginia heroin trafficking networkRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals were convicted in federal court this week for their role in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants convicted this week participated in a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into West Virginia, Virginia, and Pennsylvania. The operation was disrupted in June 2015 by a 163-count federal indictment encompassing 41 defendants.
Josh Reid, 32, of Martinsburg, was discovered in possession of heroin in Berkeley County, West Virginia in February 2015. He pled guilty to “Aiding and Abetting Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Cortney Blair Saylor, 29, of Martinsburg, helped to facilitate the sale of heroin in February 2015. She pled guilty to one count of “Use of a Telephone to Facilitate the Distribution of Heroin” for which she faces up to four years in prison and a fine of up to $250,000. She also pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering” for which she faces up to five years in prison and a fine of up to $250,000.
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 defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Monmouth County, New Jersey, Sales Representatives Admit Paying More Than $25,000 in Cash Bribes for Patient ReferralsRead the Press Release
CAMDEN, N.J. – The owners of a marketing and sales company admitted paying thousands of dollars in cash bribes to a New Jersey physician in return for patient referrals to their clients, U.S. Attorney Paul J. Fishman announced.
Daniel Gilman, 62, of Ocean Grove, New Jersey, and Kenneth Robberson, 46, of Wall, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to separate informations charging them each with one count of conspiracy to pay kickbacks.
According to documents filed in this case and statements made in court:
Gilman and Robberson were principles of Promed Practice Consultants LLC (“Promed”), a company specializing in marketing and sales services for testing laboratories. As identified in the information, “Company 1,” a blood testing laboratory, and “Company 2,” a DNA testing laboratory, were two of Promed’s clients. Gilman and Robberson received monthly commission checks from Company 1 and Company 2 for referrals, which were equal to 10 percent of the reimbursements paid to the companies by various payors, including Medicare.
From March 2014 through May 2015, Gilman and Robberson paid a physician, identified in the information as “CC-1,” thousands of dollars in return for patient lab referrals to Company 1 and Company 2. After receiving the commission checks from Company 1 and Company 2, Gilman and Robberson would identify CC-1’s patient referrals to those companies and pay CC-1 corresponding kickbacks in cash. Altogether, Gilman and Robberson paid CC-1 approximately $25,000 in cash bribes.
Neither Company 1 nor Company 2 had any knowledge of or involvement in the kickback scheme.
The kickback conspiracy charge to which Gilman and Robberson pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 11, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s pleas.
The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel:
Gilman: Vincent C. Scoca Esq., Bloomfield, New Jersey
Robberson: Edward J. Dimon Esq., Toms River
Two Men Sentenced for Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man and an Independence, Mo., man were sentenced in federal court today for their roles in a drug-trafficking conspiracy that resulted in the shooting deaths of three persons during a home invasion in Independence and the shooting of a 12-year-old boy in the home.
Antonio Cervantes, III, also known as “Taz,” 34, of Independence, and Carlos Zambrano, Jr., also known as “Los,” 29, of Kansas City, Mo., were sentenced in separate appearances before U.S. District Judge Beth Phillips. Cervantes was sentenced to 10 years in federal prison without parole. Zambrano was sentenced to five years in federal prison without parole.
Cervantes and Zambrano both pleaded guilty to their roles in a conspiracy to possess with the intent to distribute methamphetamine.
Cervantes, Zambrano and several co-defendants planned to steal as much as three pounds of methamphetamine by robbing the residence of Martin “Tomas” Dominguez-Gregorio in Independence. During the robbery attempt, in the early morning hours of Nov. 16, 2012, Martin “Tomas” Dominguez-Gregorio, his girlfriend, Maria Guadalupe Hernandez-Corona, and her son, Antonio Hernandez, were killed; Miguel Hernandez, Maria Hernandez’s then-12–year-old son, was wounded.
Cervantes and Zambrano met with co-defendants Kevin M. Finley, also known as “Tubbs,” 36, of Independence, and Raul Soto, also known as “Choch,” 24, of Kansas City, Kan., to plan the robbery on Nov. 15, 2012. Finley and Soto were both in possession of firearms.
Finley and Soto entered a shed behind the house. Finley admitted that they bound and beat two occupants inside the shed. One of those occupants was Antonio Hernandez. Finley and Soto then dragged Antonio Hernandez into the main house. Finley and Soto demanded drugs and money from the occupants, but the victims denied having any drugs or money. Finley and Soto both fired their weapons inside the house. Finley was responsible for the deaths of Dominguez-Gregorio and Hernandez-Corona, who were both killed by the gunfire. Soto was responsible for the death of Antonio Hernandez, who was killed by the gunfire. Miguel Hernandez was wounded as a result of the gunfire.
Following the robbery, a motorcycle and a TV were removed from the residence.
Soto was sentenced on Nov. 18, 2014, to 27 years in federal prison without parole.
Finley pleaded guilty on Sept. 10, 2015, to participating in a conspiracy to distribute methamphetamine and to two counts of using a firearm during and in relation to the drug-trafficking conspiracy, causing the deaths of two persons. Under the terms of his plea agreement, Finley will be sentenced to 27 years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose and Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kansas City, Mo., Police Department.
Two Colombian Nationals Indicted for Attempting to Sell Fraudulent $1,000,000,000 U.S. Bearer BondRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALMA DE JESUS MOJICA HERRERA, age 51, and LEONARDO SERRATO POLANIA, age 41, both residents of Bogota, Colombia, were indicted in a four-count Indictment today for attempting to sell a fictitious U.S. Bearer Bond.
Today’s Indictment charges MOJICA HERRERA and SERRATO POLANIA with Conspiracy to Sell a Fictitious Instrument, Conspiracy to Transport a Fictitious Instrument, Attempting to Sell a Fictitious Instrument, and Transporting a Fictitious Instrument.
According to court records, Homeland Security Investigations (“HSI”) received information alleging that MOJICA HERRERA was seeking to sell fictitious obligations in the form of a United States Bearer Bond with a face value of $1,000,000,000.00 U.S. dollars. MOJICA HERRERA made representations that the bond was worth much more than $1,000,000,000.00 due to the accrual of interest. On September 28, 2015, MOJICA HERRERA and SERRATO POLANIA, travelled from Bogota, Columbia and arrived in the United States at the New Orleans International Airport.
On September 29, 2015, MOJICA HERRERA and SERRATO POLANIA met over lunch with an HSI undercover agent (“UA”) to discuss the details of the sale of the U.S. Bearer Bond to the UA for a fee of $1,500,000,000. MOJICA HERRERA and SERRATO POLANIA agreed to meet the UA later that day at a local bank to make the exchange.
During the meeting at the bank, SERRATO POLANIA displayed a United States Bearer Bond valued at $1,000,000,000 and handed the Bearer Bond to the UA. In return for the Bearer Bond, the UA gave MOJICA HERRERA a check in the amount of $750,000,000 payable to “Alma MOJICA” constituting partial payment for the Bearer Bond. MOJICA HERRERA then asked the UA to give her two checks. MOJICA HERRERA requested one check payable to SERRATO POLANIA and a second check payable to MOJICA HERRERA in the amount of her commission. The UA requested that MOJICA HERRERA and SERRATO POLANIA write their names and the amounts they wanted on an envelope. SERRATO POLANIA then wrote his name with the amount of $705,000,000 and MOJICA HERRERA'S name with the amount $45,000,000. The UA then left the bank with the Bearer Bond and MOJICA HERRERA and SERRATO POLANIA were taken into custody by HSI agents.
If convicted, MOJICA HERRERA and SERRATO POLANIA face a maximum term of imprisonment of 5 years as to Counts 1 and 2 and 25 years as to Counts 3 and 4. In addition, they face a fine of $250,000 per count and up to 3 years of supervised release.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-HSI and the U.S. Customs and Border Protection in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Three former East Cleveland police officers charged for fabricating evidence, stealing cashRead the Press Release
Three former East Cleveland police officers were charged in federal court for their roles in a conspiracy in which they kept thousands of dollars from alleged drug dealers, much of which was seized through illegal searches and fabricated reports, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Torris Moore was arrested this morning following the unsealing of a five count federal indictment, which charged Moore with one count each of conspiracy against rights, Hobbs Act conspiracy and false statements to law enforcement and two counts of theft concerning programs receiving federal funds.
At the same time, a criminal information was filed in U.S. District Court. Antonio Malone and Eric Jones were both charged with one count of conspiracy against rights and one count of Hobbs Act conspiracy.
“The three officers charged today – unlike the overwhelming majority of police officers -- did not protect and serve, but rather pillaged and plundered,” Dettelbach said. “They viewed the drug trade as an opportunity to enrich themselves, and lied to the court, their fellow officers and the citizens of East Cleveland to pull off their criminal conspiracy.”
“These three officers acted like cunning criminals rather than honorable public servants that are sworn to protect and serve,” Anthony said. “They will be held accountable for their reprehensible conduct.”
Moore, 42, of South Euclid, was a sergeant at the East Cleveland Police Department, where he supervised the Street Crimes Unit. Malone, 33, of Cleveland, and Jones, 38, of Cleveland Heights, were detectives assigned to the Street Crimes Unit. The unit, including Moore, Malone and Jones, were familiar with several drug traffickers, according to the indictment.
The defendants, between 2012 through June 2014, conspired to unlawfully enter premises and exceed the scope of lawful entry, thereafter conducting unlawful searches and seizures, used their power to seize money and property for themselves under the guise of legitimate search warrants, and created and approved false reports, affidavits and other documents to conceal their illegal searches and seizures, according to the indictment.
These illegal searches took place in East Cleveland but also outside city limits, in various locations throughout Greater Cleveland, according to the indictment.
The conspirators placed false and inaccurate information in police reports, which Moore reviewed, knew was incorrect, but she failed to correct the inaccuracies. This false information was used to obtain search warrants, according to the indictment.
The conspirators seized money and property during these searches, and diverted some of the seized money and property for their own use. Malone provided false information to the Cuyahoga County Prosecutor’s Office about certain investigative techniques in order to conceal their illegal conduct, including attributing information to a confidential informant that did not exist, according to the indictment.
For example, on Sept. 10, 2012, Jones presented an affidavit to an East Cleveland Municipal Judge, which the conspirators knew contained false and misleading statements. The judge, unaware of false information, issued a search warrant for a home on Sheldon Avenue. Moore, Malone, Jones and another officer then executed the search warrant and seized $20,000. On Sept. 11, Moore, Malone and Jones met at a park in East Cleveland and divided a portion of the $20,000, which each officer receiving between $2,000 and $3,000. Jones then authored a report reflecting that they had seized a total of $11,173, according to the indictment.
On June 20, 2013, SCU officers, including Moore, searched a home on East 85th Street. Malone, without a search warrant, forced his way into a room that was secured by a padlock and seized approximately $100,000 in cash. Moore, Malone and Jones removed a portion of the cash before causing the remainder to be secured in the East Cleveland Police Department’s evidence room. Later that day, the three officers met at an East Cleveland park and divided the money, with each receiving about $10,000. Malone later wrote the search resulted in the recovery of $74,670, according to the indictment.
On June 19, 2014, Malone encountered a parked car driven by a known drug trafficker, identified in the indictment only as M.M. Malone arrested M.M., who told the officer he had approximately $11,000 or $12,000 in the car’s glove box. Malone agreed to release M.M. but insisted on towing the car. Malone said: “I looked out for you. You gotta look out for me,” before instructing M.M. to get the cash from the glove box but to leave behind $3,000. Malone removed $3,000 from M.M.’s car but did not list the money when he completed the vehicle’s inventory form, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Edward F. Feran following an investigation by the Federal Bureau of Investigation – Cleveland Division, with assistance from the East Cleveland Police Department and Cuyahoga County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Japanese Auto Parts Executives Indicted for Bid-Rigging Conspiracy Involving Body Sealing Products Installed in U.S. CarsRead the Press Release
A federal grand jury in Covington, Kentucky, returned an indictment against one former and two current Japanese automotive executives for their alleged participation in a conspiracy to fix prices and rig bids for the sale of automotive body sealing products sold in the United States.
The indictment, filed today in the U.S. District Court of the Eastern District of Kentucky, charges Keiji Kyomoto, Mikio Katsumaru and Yuji Kuroda – all Japanese nationals – with conspiring to rig bids for and fix the prices of body sealing products sold to Honda Motor Company Ltd., Toyota Motor Corp. and certain of their subsidiaries and affiliates for installation in vehicles manufactured and sold in the United States and elsewhere. Automotive body sealing products consist of body-side opening seals, door-side weather-stripping, glass-run channels, trunk lids and other smaller seals, which are installed in automobiles to keep the interior dry from rain and free from wind and exterior noises.
“These executives conspired for years with their competitors to fix the prices of body sealing products sold to Honda and Toyota and installed in U.S. cars,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s indictment is another reminder that antitrust violations are not just corporate offenses but also crimes by individuals. The Antitrust Division will continue to vigorously prosecute executives who orchestrate their companies’ efforts to break the law.”
“The FBI is committed to aggressively investigating individuals who engage in criminal conduct that corrupts the global marketplace,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville Division. “We will continue our work with the Department of Justice Antitrust Division to uncover schemes aimed at creating an unfair competitive advantage by way of price fixing, bid rigging or other illegal means.”
The indictment alleges that Kyomoto, Katsumaru and Kuroda participated in the conspiracy from at least as early as September 2003 until at least October 2011. For most of this period, Kyomoto resided in the United States and served as President of an unnamed joint venture with offices in Indiana and Michigan, which manufactured and sold automotive body sealing products.
Katsumaru, who resided in Japan, served in multiple managerial positions during the conspiracy period, including Manager of the Sales and Marketing Division, for an unnamed company based in Hiroshima, Japan, that partially owned the joint venture and also manufactured and sold automotive body sealing products. Kuroda, who resided in Japan, served as a sales branch manager at the same Hiroshima-based company for the entirety of the charged period.
According to the indictment, Kyomoto, Katsumaru and Kuroda each instructed subordinates at their respective companies to communicate with co-conspirators at other companies in order to allocate sales of, rig bids for and fix the prices of automotive body sealing products; were aware that employees under their supervision were engaging in such communications; and condoned such communications. The indictment further alleges that Kyomoto attended meetings in the United States with co-conspirators during which Kyomoto and the co-conspirators reached agreements regarding sales of automotive body sealing products to Honda and Toyota. The indictment also alleges that Katsumaru and Kuroda instructed and encouraged certain employees at their company to destroy evidence of the conspiracy. Each individual faces a maximum penalty to 10 years in prison and a $1 million criminal fine if convicted.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. A total of 58 individuals and 37 companies have been charged and have agreed to pay more than $2.6 billion in criminal fines. This indictment was brought by the Antitrust Division’s Chicago Office and the FBI’s Louisville Field Office, Covington Resident Agency, with the assistance of the FBI’s International Corruption Unit and the U.S. Attorney’s Office of the Eastern District of Kentucky. Anyone with information about anticompetitive conduct in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Louisville Field Office at 502-263-6000.
Three Charged in Conspiracy to Distribute Heroin and FentanylRead the Press Release
CONCORD, NEW HAMPSHIRE – Two Manchester, New Hampshire residents and an individual living in Lawrence, Massachusetts were indicted yesterday by a federal grand jury for conspiring to distribute heroin and fentanyl, announced Acting United States Attorney Donald Feith.
Jeannette Hardy, 24, of Manchester, New Hampshire, Zakee Stuart-Holt, 33, of Manchester, New Hampshire and Jose Casellas, 38, of Lawrence, Massachusetts were charged with conspiring to distribute and to possess with the intent to distribute heroin and 400 grams or more of fentanyl during the period from July 2014 through June 2015. Hardy was previously indicted on a charge of possession with intent to distribute a controlled substance. Stuart-Holt was previously charged in a separate indictment with engaging in a controlled substance conspiracy. The new charge replaces those previous charges. The grand jury also charged Zakee Stuart-Holt with money laundering.
Law enforcement agents seized approximately four kilograms of material that has been determined to contain the narcotic drug fentanyl and three other kilograms that is yet to be confirmed as fentanyl. Another approximately 17 kilograms of material was seized from a Lawrence, Massachusetts apartment associated with Jose Casellas, but the precise nature of that material has not yet been determined. Law enforcement also seized approximately $198,000 in cash from an apartment rented by Hardy and Stuart-Holt, approximately $560,000 in cash from a safe deposit box rented by Stuart-Holt, and $12,000 in cash from an apartment associated with Jose Casellas. The grand jury’s indictment includes a notice of forfeiture for this money.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The investigation was conducted by the (1) United States Drug Enforcement Administration; (2) Manchester, New Hampshire Police Department; (3) Andover, Massachusetts Police Department, (4) Lawrence, Massachusetts Police Department, and (5) the Massachusetts State Police. The United States Attorney’s Office for the District of New Hampshire assisted in the investigation and is prosecuting the case.
Thai National Indicted for Marijuana Cultivation in Sierra National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Rich Xiongpao, 42, of Fresno, charging him with conspiring to manufacture marijuana, manufacturing marijuana in connection with a large-scale cultivation operation in a national forest, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on September 29, 2015, Xiongpao was arrested after he was observed by U.S. Forest Service agents tending a marijuana site in the Sierra National Forest in Madera County. Agents removed approximately 428 marijuana plants from the site.
According to the criminal complaint filed in this case, the damage to the national forest land and resources caused by the marijuana cultivation operation will exceed $1,000. Throughout the site, multiple species of natural vegetation had been cut to accommodate the cultivation operation. Additionally, in order to water the marijuana cultivation, a water reservoir diverted the flow of pristine spring water from a riparian area to the site. A large amount of trash, numerous containers of chemicals, fertilizers, and unknown substances were found throughout the area.
This case is the product of an investigation by the U.S. Forest Service. Assistant United States Attorney Daniel Griffin is prosecuting the case.
Xiongpao is scheduled to be arraigned on the indictment on October 14, 2015, in federal court in Fresno. If convicted of the drug offenses, Xiongpao faces a minimum statutory penalty of five years and a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas man pleads guilty to transporting a minor to Shreveport for prostitutionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Texas pleaded guilty to bringing a minor to Shreveport to engage in prostitution.
Larry D. Bluitt, 26, of Dallas, Texas, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of transportation of a minor with intent to engage in prostitution. According to evidence presented at the guilty plea, a law enforcement agent working in an undercover capacity responded to an online ad for prostitution on December 17, 2014. The undercover agent arranged to meet an individual at a Shreveport hotel for the purpose of prostitution. Agents observed Bluitt driving a 14-year-old female to the hotel to meet the undercover agent for sex. After he dropped off the juvenile, Bluitt was arrested by members of the FBI Violent Crimes Against Children Task Force. Bluitt admitted he drove the minor female from Dallas to Shreveport for prostitution.
Bluitt faces 10 years to life in prison, five years or life of supervised release, a $250,000 fine, forfeiture of property and mandatory registration as a sex offender. A sentencing date of January 28, 2016 was set.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
The FBI-Violent Crimes Against Children Task Force and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Supplier to Drug Traffickers Gets Long Prison TermRead the Press Release
PHILADELPHIA – Arthur Office, 45, of Houston, TX, was sentenced today to 144 months in prison for his role in a drug trafficking conspiracy. Office pleaded guilty on April 1, 2015, to conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base.
During an undercover investigation of co-conspirator Omar Vasquez in March of 2008, Vasquez was stopped by police while driving in Lancaster, PA. He and a passenger fled and, with police in pursuit, they began throwing crack cocaine from the windows of their vehicle. Police recovered approximately 128 grams of cocaine from the highway. Agents with Homeland Security Investigations subsequently searched Vasquez’s car and home, recovering more drugs and money, and were able to trace the source of the cocaine to Arthur Office of Houston, Texas.
An investigation revealed that Office had been supplying cocaine to other drug dealers in Chester County since the late 1990s to 2009. For several years, Office regularly flew from Texas to Philadelphia personally carrying several kilograms of cocaine strapped to his body. On two occasions in 2008 and 2009, on his way back to Texas from Philadelphia International Airport, HSI agents seized over $80,000 in U.S. currency from Office.
In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered 5 years of supervised release, a $100 special assessment, and a fine of $2500.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, the Lancaster Police Department and the Pennsylvania State Police. It was prosecuted by Assistant United States Attorney James R. Pavlock.
St. Croix Man Sentenced to Prison for Possession of Prison ContrabandRead the Press Release
St. Croix, USVI – District Court Chief Judge Wilma A. Lewis on Wednesday sentenced Shevron Percival, 25, of St. Croix, to four months in prison and one year of supervised release for Possession of Prison Contraband, United States Attorney Ronald W. Sharpe announced. Judge Lewis also ordered Percival to pay a $500 fine.
On May 7, 2015, Percival pleaded guilty to one count of Possession of Prison Contraband. As part of his plea, Percival admitted that he possessed a cellular telephone that was found in his basketball shorts while he was an inmate at the Golden Grove Adult Correctional Facility on St. Croix. Cellular telephones are prohibited contraband in correctional facilities because they are known to be used by prisoners to intimidate witnesses, orchestrate narcotics transactions, and facilitate other criminal activity, including murders.
This case was investigated by the Virgin Islands Bureau of Corrections and the United States Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorney Rami S. Badawy.
Springfield Man Sentenced to Prison for Distributing Crack CocaineRead the Press Release
BOSTON –Dmitri Major, 38, of Springfield, was sentenced today by U.S. District Judge Mark G. Mastroianni to 21 months in prison and five years of supervised release.
In May 2015, Major pleaded guilty to distributing crack cocaine to an undercover law enforcement officer in a parking lot near known drug dealing and street gang territory on Oct. 9 and 17, 2013.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kevin O’Regan, Chief of Ortiz’s Springfield Branch Office.
South Jersey Man Sentenced to 20 Years in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 240 months in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Gerrett Conover, 50, of Woolwich Township, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count Three of the indictment against him, distribution of child pornography. Judge Hillman imposed the sentence today in Camden federal court. Conover has been in custody since his arrest.
According to documents filed in this case and statements made in court:
On Sept. 16, 2012, Conover was intercepted at the United States border on his way from Canada into New York and was found in possession of a laptop containing images of sexually exploited children. Agents obtained a search warrant for Conover’s home in Woolwich Township and seized various computers and other media containing additional images of child sexual abuse. The search also uncovered materials allegedly establishing Conover’s involvement in the Boy Scouts between 1990 and 2000.
At his guilty plea proceeding, Conover admitted that he knowingly distributed images of children engaged in sexually explicit conduct.
In addition to the prison term, Judge Hillman sentenced Conover to lifetime supervised release.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation. He also thanked HSI Offices in Boston; Messina, New York; Los Angeles; and San Bernardino, California; as well as Customs and Border Protection in Ogdensburg, New York, for their roles.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Jerome Brown Esq., Philadelphia
South Jersey Man Sentenced to 14 Years in Prison for Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 168 months in prison for his role in a conspiracy to sell 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Marcus Rutling, a/k/a “Fresh,” 33, of Camden, and Saluda, South Carolina, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 28, 2014, Marcus Rutling and his brother, Joseph Rutling, 24, of Camden, conspired with others to illegally sell firearms without a license, including handguns, shotguns and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Marcus Rutling personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Joseph Rutling personally sold or participated in the sale of at least 15 firearms, including handguns, shotguns and an assault rifle, also to an ATF cooperating witness. On at least five occasions, Joseph Rutling sold ammunition with the firearms.
In addition to the prison term, Judge Bumb sentenced Marcus Rutling to three years of supervised release. Joseph Rutling also pleaded guilty to his role in the conspiracy and is scheduled for sentencing on Oct. 30, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentencing. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel: Justin Loughry Esq., Camden
Shawnee Woman to Serve 24 Months in Prison and Pay over $251,000 in Restitution for Embezzlement from Citizen Potawatomi NationRead the Press Release
Oklahoma City, Oklahoma –KRISTI BIAS, 42, of Shawnee, Oklahoma, was sentenced this week by Chief United States District Judge Vicki Miles-LaGrange to serve 24 months in federal prison for embezzlement from the Citizen Potawatomi Nation, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Chief Judge Miles-LaGrange ordered Bias to pay $251,018.35 in restitution to the tribe.
According to court records and information at court hearings, Bias was employed as the Executive Director of the Citizen Potawatomi Nation’s Community Development Corporation (CDC), which promoted economic development in the Native American community by providing loans and grants to companies owned by or which primarily employed members of federally-recognized Indian tribes. From December of 2010 and September of 2011, Bias was alleged to have caused grants to be issued to false or ineligible entities, falsified supporting documents, and received kickbacks for doing so.
In a related case, THOMAS BIERD, 35, also from Shawnee, was indicted on April 21, 2015, for his role in the embezzlement. Specifically, it was alleged that Bierd controlled an entity that received checks issued from CDC by Bias who, in turn, kicked back a portion of the proceeds to Bias. On September 3, 2015, Bierd pled guilty to embezzlement from the tribe and is currently awaiting sentencing.
Bias was charged by Information on November 7, 2014. Following her 24-month prison term, Bias is ordered to served 3 years of supervised release and pay $251,018.35 in restitution to the tribe.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Tim Ogilvie.
Reference is made to court filings for further information
Seven Taken into Custody for Drug ViolationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Seven individuals were arrested by federal, state and local authorities following a long-term investigation into the trafficking of heroin and oxycodone in the Rochester, New Hampshire area, announced Acting United States Attorney Donald Feith. Those arrested include:
(1) Bruce Campbell, age 60, of Portsmouth, New Hampshire (formerly of Rochester, New Hampshire), was arrested for unlawful distribution of oxycodone, in violation of Title 21, United States Code, 841(a)(1);
(2) Fausto Delacruz, age 35, of Lawrence, Massachusetts, was arrested for engaging in a conspiracy to distribute heroin and oxycodone, in violation of Title 21, United States Code, Sections 846 and 841(a)(1) and for unlawful distribution of heroin and oxycodone, in violation of Title 21, United States Code, 841(a)(1);
(3) Giovanni Rosado, age 32, of Lawrence, Massachusetts, was arrested for engaging in a conspiracy to distribute oxycodone, in violation of Title 21, United States Code, Sections 846 and 841(a)(1);
(4) Michael Bougie, age 41, of Rochester, New Hampshire, was arrested for unlawful distribution of oxycodone, in violation of Title 21, United States Code, 841(a)(1);
(5) Paul Bougie, age 32, of Rochester, New Hampshire, was arrested for engaging in a conspiracy to distribute oxycodone, in violation of Title 21, United States Code, Sections 846 and 841(a)(1) and for unlawful distribution of oxycodone, in violation of Title 21, United States Code, 841(a)(1);
(6) Harold Marte, age 34, of Lawrence, Massachusetts, was arrested for engaging in a conspiracy to distribute oxycodone, in violation of Title 21, United States Code, Sections 846 and 841(a)(1); and
(7) Thomas Davis, age 40, of Somersworth, New Hampshire, was arrested for unlawful distribution of heroin and oxycodone, in violation of Title 21, United States Code, 841(a)(1).
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The investigation was conducted by the (1) United States Attorney’s Office for the District of New Hampshire; (2) United States Drug Enforcement Administration’s Portsmouth, New Hampshire Tactical Diversion Squad; (3) Rochester, New Hampshire Police Department; and (4) United States Postal Inspection Service. In addition, the following law enforcement agencies participated in the arrests: (1) United States Marshals Service; (2) New Hampshire State Police; (3) Lawrence, Massachusetts Police Department; and (4) Haverhill, Massachusetts Police Department.
Seven Men Indicted in Heroin Distribution ConspiracyRead the Press Release
An indictment charging seven Detroit-area men with conspiracy to distribute heroin was unsealed this morning, U.S. Attorney Barbara L. McQuade announced today. Joining McQuade in the announcement was David Gelios, Special Agent in Charge, Federal Bureau of Investigation, Joseph Reagan, Special Agent in Charge, Drug Enforcement Administration, Sheriff Michael Bouchard, Oakland County Sheriff’s Office, Chief Corrigan O’Donahue, Royal Oak Police Department and Chief Timothy Collins, Ferndale Police Department. Albert Street, 34, Floyd Shaw, 20, Chris Coleman, 38, Andre Little, 37, Devon Street, 21, James White, 22, and Carlos Cozart, 24, were charged with conspiracy to distribute and to possess with intent to distribute more than 100 grams of heroin. Cozart is from Hamtramck. The other defendants are from Detroit. In addition, Coleman and Shaw were charged with distribution of heroin resulting in serious bodily injury. The victims involved survived the overdoses because they were revived by paramedics. The law defines serious bodily injury as one that involves a substantial risk of death, and carries a mandatory penalty of 20 years’ imprisonment if convicted. Little was also charged with being a convicted felon in possession of a firearm. Since April, federal, state and local agencies, including the Federal Bureau of Investigation, Drug Enforcement Administration, Immigration and Customs Enforcement-Homeland Security Investigations, Oakland County Gang and Violent Crime Task Force, Oakland County Sheriff’s Office, Royal Oak Police Department, Southfield Police Department, Bloomfield Township Police Department, Troy Police Department, Waterford Police Department, Ferndale Police Department, Detroit Police Department and the Michigan State Police, and several other federal, state and local law enforcement agencies, have conducted a rigorous investigation into this heroin drug trafficking organization that has territories in Detroit expanding from Six Mile Road to Eight Mile Road, including the Woodward Corridor, and beyond. This indictment stems from numerous search warrants that were executed on July 21 in Wayne and Oakland counties, in an effort to combat the heroin epidemic. As a result of those search warrants, law enforcement officers seized a substantial quantity of heroin. The investigation and prosecution in this case are part of Project HOPE (Heroin and Opioid Prevention and Enforcement), the U.S. Attorney’s district-wide initiative to combat the epidemic of heroin use and overdoses. “The heroin epidemic that has resulted in so many overdose deaths in our region calls for us to step up enforcement of heroin distribution to save lives,” McQuade said. “We are tackling this problem from all sides – prevention, treatment and enforcement.” Special Agent in Charge Gelios stated, “The levels of cooperation and teamwork demonstrated in this investigation between the FBI and all the agencies are exceptional. The availability of heroin and other deadly drugs are a threat to our communities. Today’s operations demonstrate the commitment of the United Staets Attorney’s Office and the law enforcement community to respond in a coordinated fashion.” Royal Oak Police Chief O’Donahue stated, “These arrests represent the great teamwork of law enforcement agencies on all levels. Heroin use is on the rise and it is a problem that affects every community. All the officers, agents, and deputies involved in this case are to be commended for their work.” “Oakland County has witnessed heroin-related deaths double in recent years. The effect that this illegal drug has had on our communities and families has been devastating,” said Sheriff Michael J. Bouchard. “The cooperation of both local and federal agencies involved in this operation are to be commended for putting away these dangerous criminals. The Sheriff’s Office is dedicated to continuing to combat drug trafficking in Oakland County and we will be relentless in our pursuit.” Ferndale Police Chief Timothy Collins stated, “Ferndale has experienced a large increase in heroin overdoses over the past year, and it has been impacted by the appearance of Fentenyl. I am grateful for the combined response of the local, state and federal partners who came together to help manage this problem in the metro area.” The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. This investigation was lead by the FBI Oakland County Violent Gang and Violent Crime Task Force in partnership with the Oakland County Narcotics Enforcement Team, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Police Department, Royal Oak Police Department, Ferndale Police Department, and the FBI Violent Gang Task Force. The case is being prosecuted by Assistant U.S. Attorneys Patrick E. Corbett and Eric Doeh.Sentencings for October 2 - October 6, 2015Read the Press Release
Charles Magovern, 67, of Boulder, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 6, 2015, for entry of goods, that is, paleontological specimens, by means of false statements and aiding abetting. He received one year supervised probation and was ordered to pay a $100.00 special assessment. Pursuant to an agreement with the Government, the Defendant returned all fossils under his control. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jennifer R. Sorrells, 34, of Fair Oaks, California, was sentenced by Federal District Court Judge Alan B. Johnson on October 6, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Sorrells was arrested in Rawlins, Wyoming. She received 135 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Fernando Beltran-Mendoza, 50, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 2, 2015, for illegal re-entry of a previously deported alien into the United States. Beltran-Mendoza was arrested in Cheyenne, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Fermin Cortes-Cruz, aka Fernando Cortez-Zarate, 24, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 2, 2015, for illegal re-entry of a previously deported alien into the United States. Cortes-Cruz was arrested in Sheridan, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Seiler Nominated by the White House to be U. S. Attorney for the District of South DakotaRead the Press Release
Randolph J. Seiler has received the official nomination by President Barack Obama to be the 41st United States Attorney for the District of South Dakota. Prior to this White House nomination, Seiler has served as the Acting U.S. Attorney since March 12, 2015.
Pursuant to an order signed by U.S. Attorney General Loretta Lynch on October 6, 2015, Seiler was sworn in that same day by U.S. District Judge Roberto A. Lange at a ceremony at the U.S. District Courthouse in Pierre, South Dakota.
“It is with tremendous gratitude and appreciation that I have received the White House nomination to be the 41st U.S. Attorney for the District of South Dakota,” said U.S. Attorney Randy Seiler. “I feel privileged and honored, but it is also an awesome responsibility. The mission of pursuing justice is so incredibly pure, impactful, and fulfilling. I can’t envision a more rewarding line of work, than to help deliver justice on behalf of victims of violent crimes, for citizens suffering civil rights violations, victims of fraud and public corruption, and the myriad of other crimes dealt with in the U. S. Attorney’s Office.
One of the most crucial aspects of this position is the work we do in Indian country. I’ll continue to enhance our outreach and prosecutions on our state’s nine reservations, and strive to give a voice to those who don’t have one. Working with my staff, and shoulder to shoulder with our law enforcement partners, I look forward to this next chapter, and am excited to officially take over the reins of U. S. Attorney.”
Randy Seiler has been with the U.S. Attorney’s Office for 20 years. From November 2009 to March 2015, Seiler served as both the First Assistant United States Attorney and the Tribal Liaison for the District of South Dakota. Prior to serving in those two capacities, Seiler was an Assistant U.S. Attorney, and he spent 14 years prosecuting violent crime offenses in Indian country and other areas throughout the state. The U.S. Attorney’s Office for the District of South Dakota has jurisdiction on nine Indian reservations.
As First Assistant, Seiler was responsible for the day-to-day management and operation of the U.S. Attorney's Office. He was also the supervisor of the U.S. Attorney’s branch office in Pierre, where he was directly involved in prosecutorial matters and decisions.
As Tribal Liaison, he consulted and coordinated with tribal justice officials and leaders, tribal communities, and victim advocates in an effort to address any issues in the prosecution of major crimes in Indian country in South Dakota.
Seiler also served as counsel to the Director in the Executive Office for U.S. Attorneys at the Department of Justice in Washington, D.C., in 2008. He has been an instructor at the National Advocacy Center in Columbia, South Carolina, as well as a presenter at numerous conferences and trainings on various topics including violent crime, sexual assault, domestic violence, and legal issues in the prosecution of crimes in Indian country.
He has received the Attorney General's Award for Fraud Prevention, as well as the Director's Award for Superior Performance in Indian Country.
Prior to joining the U.S. Attorney's Office in 1995, Seiler was in private practice in Mobridge, South Dakota, where he practiced criminal and civil law. He also previously served as Campbell County Deputy States Attorney and Special Judge for the Cheyenne River Sioux Tribe.
As U.S. Attorney, Seiler will continue with the priority areas of the office, and he will maintain the strong commitment to prosecuting Indian country crimes and human trafficking.
Seiler grew up in Herreid, South Dakota, served his country in the U.S. Air Force, which included a year-long tour in Vietnam, and graduated from the University of South Dakota School of Law.
He and his wife, Wanda, live in Fort Pierre, and have four grown children and two grandchildren.
Seiler’s nomination will be sent to the United States Senate for confirmation.
Santa Fe Man Sentenced to Federal Prison for Unlawfully Trafficking “Suboxone”Read the Press Release
ALBUQUERQUE – James Barela, 41, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to a year and a day in prison followed by three years of supervised release for participating in a conspiracy to distribute Buprenorphine, more commonly known as “Suboxone,” in violation of the federal narcotics laws.
Barela was arrested on March 12, 2015, on an indictment charging him and co-defendant Edward Owens, 21, also of Santa Fe, with conspiracy and possession of Suboxone with intent to distribute. According to the indictment, Barela and Owens committed these crimes between Aug. 6, 2014 and Aug. 12, 2014, in Santa Fe County, N.M. During the period charged in the indictment, Owens was employed as a corrections officer at the Santa Fe County Adult Correctional Facility.
On June 10, 2015, Barela pled guilty to Count 1 of the indictment, charging him with participating in a Suboxone trafficking conspiracy. In entering the guilty plea, Barela admitted that from Aug. 4, 2014 through Aug. 12, 2014, while he was incarcerated in a correctional facility in Santa Fe County, he conspired with Owens to distribute Suboxone to inmates in the correctional facility.
Owens has entered a plea of not guilty to the indictment. He is currently scheduled for trial on Dec. 7, 2015. Charges in indictments are merely accusations, and defendants are presumed innocent unless proven guilty.
This case was investigated by the Albuquerque office of the FBI, the Santa Fe County Sheriff’s Office, and the Santa Fe Corrections Department with assistance from the First Judicial District Attorney’s Office.
Assistant U.S. Attorney Shaheen P. Torgoley prosecuted the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Salinas Residents Charged in Tax and Mortgage Fraud SchemeRead the Press Release
SAN JOSE – A federal grand jury in San Jose indicted Elizabeth Calderon and Esther Sanchez, AKA Trinidad Carrillo, with filing false tax returns, theft of government funds, aggravated identity theft, making false statements to federally insured institution, and conspiracy, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the indictment, beginning on or about November 24, 2010, and continuing to the present, Calderon, 39, a resident of Salinas, Calif., has been a professional tax return preparer. Calderon is charged with willfully assisting in the preparation and presentation of thirteen false U.S. Individual Income Tax Returns, Forms 1040, for other taxpayers. Calderon is also charged with theft of government funds and aggravated identity theft for using someone else’s identification to obtain fraudulent income tax refunds, and with filing false Forms 1040 in her own name for 2010, 2011 and 2012. In addition, Calderon and Sanchez, 54, also a resident of Salinas, are charged with conspiring to submit a loan application to Bank of America that contained false information and was supported by counterfeited documents.
Calderon and Sanchez were arrested in Salinas this morning. They made their initial appearance this afternoon in federal court in San Jose before the Honorable Paul S. Grewal, U.S. Magistrate Judge. Both defendants’ next appearance is scheduled for October 13, 2015 at 9:00 AM before the Honorable Beth Labson Freeman.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of three years in prison and a fine of $250,000 for each count of filing false tax returns and each count of aiding or advising false tax returns, in violation of 26 U.S.C. §§ 7206(1) and 7206(2). The maximum sentence for theft of government funds, in violation of 18 U.S.C. § 641, is ten years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of 18 U.S.C. § 1028A, is two years in prison to run consecutive with the underlying felony and a fine of $250,000. The maximum sentence for making false statements to federally insured institution, in violation of 18 U.S.C. § 1014, is thirty years in prison and a $1,000,000 fine. The maximum penalty for conspiracy, in violation of 18 U.S.C. § 371, is five years in prison and a $250,000 fine. Additional fines, penalties and supervised release also may be ordered. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rolla Man Indicted in Forex Trading ScamRead the Press Release
St. Louis, MO – A federal indictment was returned late yesterday naming DANIEL KEITH STEELE as the defendant in a fraud scheme involving trading in foreign currencies. The indictment alleges that Steele solicited more than $2 million from at least 24 investors who had hoped to realize the extraordinary returns promised by Steele, which were sometimes as high as 28.71% per month.
According to the indictment, however, Steele invested only a fraction of the money he solicited in foreign currency markets. Instead, the indictment alleges, he spent investor funds on himself and his family, including the purchase of two different vehicles at a total cost of nearly $100,000, and repaid some later investors with funds contributed by earlier investors. Steele is also accused of generating false reports for investors that reflected returns that Steele had never achieved, and of creating and providing similar false documents when questioned by investigators.
Steele, Rolla, MO, was indicted by a federal grand jury on one felony count of mail fraud, four felony counts of wire fraud and two felony counts of engaging in unlawful monetary transactions using criminally derived property.
If convicted, each count of mail and wire fraud carries a maximum penalty of 20 years in prison and/or fines of up to $250,000. The two counts of engaging in unlawful monetary transactions each carry a maximum term of imprisonment of 10 years and/or a maximum fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Rochester Man Charged with Possession of A Firearm Linked to Murders at Boys and Girls ClubRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ramel Robinson, 21, of Rochester, NY, was charged by criminal complaint in connection with unlawful possession of a firearm which was stolen from the residence at 1070 Lake Avenue in Rochester. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that on July 29, 2015, Robinson unlawfully entered the residence at 1070 Lake Avenue and stole a gun safe that contained three firearms and numerous rounds of ammunition. The firearms included an AK-47, a .40 caliber rifle and a single shot shotgun. The AK-47 was later recovered by police hidden under the front porch of a residence on Clay Avenue. That gun has been linked to the mass shooting at the Boys and Girls Club on August 19, 2015.
The shotgun was later recovered at a residence on Phelps Avenue, leading to the arrest of Joseph Lowry on federal gun charges. The current location of the .40 caliber rifle is unknown. Previously, on September 9, 2015, Robinson was charged by federal authorities for possessing two additional stolen firearms related to a burglary of a residence at 184 Clay Avenue. The defendant is currently in custody on state and federal charges.
Robinson will appear make an initial appearance this morning at 10:30 a.m. before U.S. Magistrate Judge Marian W. Payson.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.
Plainwell Man, Benjamin Cance, Pleads Guilty to Illegal Arms Exportation, Money LaunderingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Pat Miles announced today that Benjamin James Cance pled guilty before U.S. District Judge Robert Holmes Bell to federal charges of international arms trafficking and money laundering. The arms trafficking charge is punishable by imprisonment for up to 20 years; the maximum penalty for money laundering is ten years in prison.
In pretrial filings with the court, the government disclosed that Cance’s illegal dealings with his overseas customers were conducted through illegal internet sites, referred to as the "darknet." He also utilized electronic currencies, such as Bitcoin, to get paid for his services in an effort to hide the nature of his activities.
A plea agreement filed in connection with the hearing disclosed that the government will move to dismiss a third charge, machine gun possession, at sentencing. Judge Bell was advised that Cance has been cooperating with U.S. and international law enforcement agencies against the recipients of many of his shipments in the United Kingdom, Poland and Germany. Judge Bell allowed Cance to remain on bond pending sentencing so this cooperation can continue.
The case was assigned to Timothy VerHey, Assistant U.S. Attorney, for prosecution. Investigation of the case was conducted by the Department of Homeland Security, Immigration and Customs Enforcement, the Internal Revenue Service, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
END
Philadelphia Man Pleads Guilty to Drug ChargesRead the Press Release
Jackson, Miss - Nathan Burnside, 31, of Philadelphia, Mississippi, pled guilty today before Senior U.S. District Judge David Bramlette III to distributing 28 grams or more of crack cocaine, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
Burnside was indicted after an investigation revealed that he was distributing crack cocaine in the Canton and Philadelphia areas.
He will be sentenced by Senior U.S. District Judge David Bramlette III on January 14, 2016 and faces a maximum penalty of 40 years in federal prison and a $5 million fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Darren LaMarca.
Pennsylvania Man Sentenced on Child Pornography 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 Dale Foley, 48, of Bradford, PA, who was convicted of possession of child pornography, was sentenced to five years in prison and 10 years supervised release by Senior U.S. District Judge William M. Skretny.
Special Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that on November 30, 2011, a federal search warrant was executed at the defendant’s former residence on South Street in Olean, NY. Foley The defendant was at the residence and admitted to possessing child pornography and using peer to peer software to download the child pornography. A forensic analysis of Foley’s computer recovered 685 image files and 146 video files of child pornography, many of which depicted pre-pubescent children being subjected to violence.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Pelahatchie Man Sentenced to Prison for Possesion with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss – Michael Antonio Andrews, 36, of Pelahatchie, Mississippi, was sentenced today by U.S. District Judge Carlton W. Reeves to 87 months in federal prison and ordered to pay a $1000.00 fine for possession with the intent to distribute methamphetamine, U.S. Attorney Gregory K. Davis announced.
Andrews pled guilty on July 2, 2015, admitting that he supplied approximately 26 grams of actual methamphetamine to a co-defendant who delivered the methamphetamine to an individual in Crystal Springs, Mississippi.
The case was investigated by the DEA HIDTA Task Force with assistance from the Mississippi Highway Patrol. The case was prosecuted by Assistant U.S. Attorney Jerry L. Rushing.
Orlando Woman Convicted of Bank Fraud and Identity Theft ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Yesterday, a federal trial jury convicted Tanzania Miller, 38, of Orlando, Florida, of conspiracy, four counts of bank fraud, and aggravated identity theft. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between December 2013 and March 2014, Miller conspired with others to steal money from banks by depositing stolen checks and making withdrawals against them. In this scheme, Miller found people willing to sell their Facebook account to her. The Facebook user’s friends were then asked if they wanted to make money by providing a bank account number and a debit card. Stolen, forged checks were then deposited into the Facebook friend’s bank account, followed by quick cash withdrawals or purchases using the debit card. In all, the scheme resulted in more than $55,000 in forged check deposits and $35,000 in withdrawals.
Miller faces a maximum sentence of 30 years in prison for each bank fraud and conspiracy count and a mandatory minimum term of two years in prison for aggravated identity theft. Sentencing has been scheduled for December 18, 2015, at 1:00 p.m. at the United States Courthouse in Tallahassee, Florida. The case was investigated by the United States Secret Service and the Leon County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jason S. Beaton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Oakland Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel Lajoie, Jr., 46, of Oakland, Maine, pleaded guilty today in U.S District Court to possession of child pornography.
According to court records and proceedings, between April 29, 2012 and June 3, 2012, the defendant used a computer and peer-to-peer software to make available for sharing videos of child pornography. A federal agent, acting in an undercover capacity, downloaded seven of those videos and eventually traced the online activity to a computer Lajoie possessed at a residence in Randolph, Maine. Lajoie’s computer was seized and examined and investigators found over 50 images and 110 videos of child pornography.
Lajoie faces up to ten years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Task Force.
Niagara Falls Woman Sentenced for Stealing Government FundingRead 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 Kimberly Nybeck, 45 of Niagara Falls, NY, who was convicted of theft of public money, was sentenced to three years probation with six months home detention by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay $36,094 in restitution to the Social Security Administration.Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that from April 2008 to December 2012, the defendant received Supplemental Security Income (SSI) benefits on behalf of a family member. During that time, Nybeck falsified information that was submitted to the Social Security Administration that allowed her to continue to receive the SSI benefits. In total, the defendant fraudulently received $36,094 in benefits that she was not entitled to.
The sentencing is the culmination of an investigation on the part of Special Agents of the Social Security Administration Office of Inspector General, under the direction of Edward J. Ryan, Special Agent in Charge.
Niagara Falls Man Indicted on Drug and Gun ChargesRead 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 a federal grand jury has returned a six-count indictment charging Philip Vincent, 37, of Niagara Falls, NY, with manufacturing marijuana, possession with intent to distribute marijuana, possession with intent to distribute crack cocaine, maintaining a drug premises, possession of a weapon in furtherance of drug trafficking, and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a $1,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the indictment and a previously filed complaint, on December 2, 2014, the U.S. Marshals Violent Felony Fugitive Task Force encountered the defendant while looking for a fugitive defendant. Officers searched Vincent’s 20th Street residence and discovered a .38 caliber revolver along with marijuana plants and crack cocaine.
Vincent was arraigned today before U.S. Magistrate Judge Hugh B. Scott and is being held.
The indictment is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, the U.S. Marshals Service, under the direction of Charles Salina, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
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.
New York Men Charged with Federal Access Device FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment yesterday against Vernal Moffet, age 29, of Queens, New York, Rushane Kennedy, age 23, of Rosedale, New York and Shavouy Paisley, age 24 of Queens, New York. The indictment charges the three men with possession of unauthorized access devices and criminal conspiracy to possess unauthorized access devices.
According to United States Attorney Peter Smith, Moffet, Kennedy and Paisley were stopped in Cumberland County in September 2014 by Hampden Township Police Department after making suspicious purchases at CVS and Rite Aid establishments located on Carlisle Pike in Mechanicsburg, Pennsylvania. The police seized more than 100 counterfeit Visa cards from the vehicle the three men had been traveling in, along with gift cards.
During the investigation, the United States Secret Service determined the account numbers associated with the magnetic strips on the cards belonged to account holders from dozens of banks and institutions across the country. After reviewing bank records, the Secret Service identified more than a half a dozen retail establishments on the Carlisle Pike where the defendants attempted or made purchases using these unauthorized account numbers.
This investigation is being conducted by the United States Secret Service and the Hampden Township Police Department and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mine Operator Convicted of Clean Water Act CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that James Slade, 57, of Calgary, Canada, was convicted after a two week jury trial of two counts of violating the Federal Clean Water Act by polluting the Salmon River with turbid wastewater from the Platinum Creek Mine he was in charge of operating. A sentencing hearing is scheduled for November 12, 2015, and Mr. Slade was ordered to surrender his Canadian passport and remain in the United States pending his sentencing.
Evidence was presented at trial that the discharges from the mine were hundreds of times over the legal limits set in the National Pollution Discharge Elimination System (NPDES) water quality permit issued for the mine. The jury deliberated for two days before convicting the defendant of two misdemeanor Clean Water Act crimes for discharging polluted wastewater during the 2010 and 2011 mining seasons in violation of the NPDES permit. The jury was deadlocked and could not reach a decision on several felony violations, and found the defendant not guilty on other charges, including finding him not guilty of making a false annual report to the Alaska Department of Conservation that was submitted by another senior manager. That manager, Robert Pate, has previously pleaded guilty to making that false statement.
The Salmon River is located in Western Alaska, running past the Platinum Creek Mine and emptying into Kuskokwim Bay. It passes through the Togiak National Wildlife Refuge before entering the bay, and all five species of Alaska Salmon spawn in the river. Evidence at trial was that a flow of up to 1200 gallons per minute of wastewater was discharged from the mine’s processing plant into one or more settling ponds that were not lined, and that did not contain the wastewater. Instead, the wastewater flowed out of the ponds and into the Salmon River, turning it from crystal clear to dirty brown.
First Assistant U.S. Attorney Kevin Feldis prosecuted the case with a Chris Costantini, as Senior Trial Attorney from the Department of Justice’s Environmental Crimes Section. Mr. Feldis stated that “the state and federal agencies that have a role in permitting and approving mining in Alaska rely on those who operate mines, as they rely on any permitted business that operates in remote locations, to self-report when they violate the law. That did not happen in this case. The mine said it was going to do one thing when it submitted its Mine Plan of Operations, and it ended up doing something very different. Federal Agents from the Bureau of Land Management and the Environmental Protection Agency conducted an excellent investigation in this case. Mr. Slade and the company he worked for are no longer mining, and there is no longer any pollution entering the Salmon River.”
Mr. Slade was the Chief Operating Officer for XS Platinum, the company that owned the mining claims, and he is the third manager or senior executive of that company to be convicted in this case. Robert Pate, who was employed as the mine manager previously pled guilty to violating the Clean Water Act, along with James Staeheli, the prior processing plant manager, who also pled guilty to a Clean Water Act crime. All three individuals worked for the now defunct XS Platinum, Inc. That company was registered in name only in Delaware, and was 100% owned by an offshore company. Two other senior executives from XS Platinum, both Australian citizens, were also indicted but have refused to return to the United States to stand trial on the charges.
The investigation was conducted by the U.S. Department of Interior Bureau of Land Management Office of Law Enforcement and Security, and the U.S. Environmental Protection Agency Criminal Investigation Division. Mr. Slade faces maximum penalties of one year in jail and a $100,000 fine for each of the two counts of conviction.
Miami-Area Pharmacy Owner Sentenced to 46 Months in Prison for Role in $1.8 Million Medicare Fraud SchemeRead the Press Release
A Miami-area pharmacy owner was sentenced today to 46 months in prison for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Evelio Fernandez Penaranda, 47, of Miami, pleaded guilty to one count of health care fraud on July 23, 2015. In addition to today’s prison sentence, Chief U.S. District Court Judge K. Michael Moore of the Southern District of Florida ordered Penaranda to pay $1,876,241 in restitution.
Penaranda owned Naranja Pharmacy Inc. According to admissions made in connection with Penaranda’s guilty plea, between May 2013 and March 2014, Naranja Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. In connection with his guilty plea, Penaranda admitted that Naranja Pharmacy submitted these false claims by obtaining and using the unique identifying information of Medicare beneficiaries and doctors without their consent.
Penaranda also admitted that he controlled Naranja Pharmacy’s bank accounts, and that he transferred the payments received from Medicare to himself and his accomplices. According to admissions made in connection with Penaranda’s plea, during the course of the scheme, Naranja Pharmacy submitted over $1.8 million in false claims for prescription drugs to the Medicare program.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. The case was prosecuted by Trial Attorney Nicholas E. Surmacz of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Maumee man faces child pornography chargesRead the Press Release
Roberto Ledesma, 52, of Maumee, was charged with receipt and distribution of visual depictions involving the sexual exploitation of a minor, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Martinsburg man convicted of cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jesus Demas Valencia, 48, of Martinsburg, was convicted of cocaine trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Valencia sold cocaine in Berkeley County, West Virginia. He pled guilty today to one count of “Distribution of Cocaine.” 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 Ana Krasinski, Jarod Douglas, and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Manhattan U.S. Attorney Files and Settles Civil Fraud Lawsuit Against UFC Aerospace and Douglas B. Davis for Engaging in Fraudulent Conduct in Violation of the Small Business ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Melvin F. Williams, Jr., General Counsel of the U.S. Small Business Administration (“SBA”), Peggy E. Gustafson, SBA Inspector General, and Craig W. Rupert, Special Agent in Charge of the Northeast Field Office of the Defense Criminal Investigative Service (“DCIS”), announced today that the United States has filed, and simultaneously settled, a civil fraud lawsuit against UFC AEROSPACE LLC (“UFC”) and DOUGLAS B. DAVIS, the former president of UFC, for engaging in fraudulent conduct in violation of the Small Business Act, 15 U.S.C. § 632(n), in order to secure numerous lucrative defense subcontracts with government contractors. As alleged in the amended complaint-in-intervention, UFC falsely certified to government contractors that UFC was a woman-owned small business (“WOSB”) when UFC at no point met either requirement for WOSB status under the Small Business Act. Specifically, no women were majority owners of UFC or managed or controlled UFC’s management and daily business operations. UFC made these misrepresentations, as the amended complaint-in-intervention alleges, because it believed that WOSB status provided a competitive advantage in obtaining contracts that it knew were funded by the United States government, and the government contractors in turn made representations to the government regarding its WOSB hiring. In the settlement, approved in Manhattan federal court by U.S. District Judge William H. Pauley III, UFC and DAVIS admitted and accepted responsibility for the fact that UFC never qualified for WOSB credit under the Small Business Act and will pay the Government $20,015,956.92.
Manhattan U.S. Attorney Preet Bharara said: “The Small Business Act serves the important purpose of increasing legitimate participation by woman-owned businesses, and when business owners engage in fraud that undermines this purpose, they need to be held to account. I want to thank the SBA Office of General Counsel, the SBA Office of Inspector General, the Defense Criminal Investigative Service, and the Procurement Fraud Division of the Air Force Materiel Command Law Office for their invaluable work on this case.”
SBA General Counsel Melvin F. Williams, Jr., said: “This case represents the cooperative effort of SBA’s Offices of the General Counsel and the Inspector General and the Department of Justice to uncover and remedy fraud in our procurement programs. Uncovering and pursuing fraud cases is one of SBA’s highest priorities.”
SBA Inspector General Peggy E. Gustafson said: “This settlement sends an important message that falsely certifying a company’s status as a Woman Owned Small Business is unacceptable and bears a significant consequence. We will continue to aggressively pursue parties that wrongfully obtain both prime and subcontracting opportunities for small businesses that are legitimately owned and controlled by women. I want to thank the U.S. Department of Justice for its dedication to reaching a settlement in this case.”
DCIS Special Agent in Charge Craig W. Rupert said: “This settlement is evidence of the continuing efforts of the Defense Criminal Investigative Service and our law enforcement partners to assure integrity within the Defense procurement process. The Department of Defense relies on numerous certifications from our contractors and any fraud in this process has a serious impact throughout this industry. DCIS will continue to aggressively pursue allegations of fraud and corruption harmful to U.S. taxpayers and the Department.”
The following allegations are based on the amended complaint-in-intervention filed Monday in Manhattan Federal court:
The Small Business Act, which provides that it is the policy of the United States that small businesses owned and controlled by women should have the “maximum practicable opportunity to participate in the performance of [federal] contracts,” defines a “woman owned small business” (“WOSB”) to mean that women own 51% of the company and “the management and daily business operations of the business are controlled” by women. 15 U.S.C. §§ 637(d)(1), 632(n). Prime contractors that obtain federal funds are required to negotiate with the procuring authority a subcontracting plan setting forth, among other things, what percentage of the work will be given to WOSBs, and the Comprehensive Subcontracting Plan Group of the Defense Contract Management Agency is responsible for ensuring that Government defense contractors meet all of the requirements for hiring small businesses, including WOSBs.
UFC began claiming WOSB status at least beginning in late 2001, by representing to contractors UFC knew were doing work with the federal government that it was a WOSB. UFC falsely relied on the purported ownership interest of the wives of the actual owners, John Davis and DOUGLAS DAVIS, to make these representations. UFC continued to represent that it was a WOSB at various times until 2011, and earned millions of dollars on the contracts procured with those representations. UFC did so because it understood that this status mattered both to the contractors and to the Government, and it believed that it was obtaining a competitive advantage by claiming to be a WOSB. However, at no time during the entire time period from 2001 to 2011 did UFC ever qualify under the Small Business Act as a WOSB. The only ownership interest that the wives of John and DOUGLAS DAVIS had in UFC was through trusts that were entirely controlled by John and DOUGLAS DAVIS, and under which the women were entitled to a maximum of only 5% of the trusts’ assets. Moreover, neither woman controlled or managed the company at any time. In fact, neither woman had company email accounts, attended management meetings, or spent regular time in the office during the relevant time period.
In the stipulation of settlement with the Government, defendant DOUGLAS DAVIS admitted, acknowledged, and accepted responsibility for the following: From 2001 to 2011, he was the President of UFC and controlled the management and business operations of UFC, and UFC certified that it was a WOSB to contractors UFC knew were conducting millions of dollars of business with the United States in order to obtain a competitive advantage with those contractors. At no time during the relevant period did UFC actually meet either of the statutory requirements for claiming WOSB status.
Defendant UFC admitted, acknowledged, and accepted responsibility for the fact that at various times between the years 2001 and 2011 inclusive, UFC certified that it was a WOSB to contractors that were conducting millions of dollars of business with the United States in order to obtain a competitive advantage with these contractors, even though at no point did UFC meet the statutory requirements for claiming WOSB status.
Mr. Bharara praised the SBA Office of General Counsel, the SBA Office of Inspector General, the Defense Criminal Investigative Service, and the Procurement Fraud Division of the Air Force Materiel Command Law Office for their invaluable work on this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Ellen London and Mara E. Trager are in charge of the case.
Manhattan Man Charged with Sexual Exploitation, Enticement, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MATTHEW TIVY was arrested in Manhattan today and charged in a criminal complaint with two counts stemming from his sexual exploitation and enticement of a minor and his receipt and distribution of child pornography.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Matthew Tivy took advantage of a minor for his own sexual gratification, even when he knew the minor was only in high school. He then allegedly shared the video he recorded of his encounter with others. Tivy allegedly targeted and exploited vulnerable and innocent children, and for that, he will now face the criminal consequences. I want to thank the FBI and the Manhattan District Attorney’s Office for its collaboration in this investigation.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, Tivy used a dating app to meet minors, even acknowledging their age on text messages after they met. He then allegedly shared the sexually explicit videos of the minors with others through internet sharing communities. This case would not be possible without the outstanding collaboration between the FBI and the Office of Manhattan’s District Attorney Cyrus R. Vance, Jr. The FBI will continue to investigate and bring to justice those who sexually exploit our children.”
According to the Complaint[1]:
From December 2014, TIVY initiated online communications with a fourteen- or fifteen-year-old boy (“Victim-1”), and enticed Victim-1 to engage in illegal sexual activity. The Complaint further alleges that TIVY engaged in sexual acts with Victim-1, enticed Victim-1 to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and then distributed these visual depictions to others online.
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TIVY, 53, of Manhattan, New York, is charged with one count of enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, which carries a maximum penalty of 30 years in prison. TIVY is also charged with one count of receipt and distribution of child pornography, which a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
There may be more victims of this alleged conduct; if you have information report, call the FBI at 212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara praised the efforts of the FBI in this investigation. He added that the investigation is continuing. He also thanked the Manhattan District Attorney’s Office for its participation and support in this ongoing investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jilan Kamal is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to 10 Years in Prison for Transporting 15-Year-Old Girl from California to Las Vegas to Work as ProstituteRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who was arrested in 2014 as part of a joint law enforcement effort to capture child predators in southern Nevada, was sentenced today to 10 years in prison and 25 years of supervised release for recruiting and enticing a 15-year-old girl to travel across state lines to work as a prostitute in Las Vegas, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Deandre Maurice Parker, 27, who was captured as part of “Operation Protect the Powerless,” was sentenced by Chief U.S. District Judge Gloria M. Navarro. Parker pleaded guilty in June to one count of sex trafficking of a minor.
“Defendant sexually exploited and victimized a 15-year-old girl by transporting her to Las Vegas so that she could act as a prostitute,” said U.S. Attorney Bogden. “Under federal law, the crime committed by the defendant is a crime of violence involving a child. We will continue to aggressively investigate and prosecute cases involving the exploitation of minors as part of our implementation of the Project Safe Childhood initiative in Nevada.”
According to the court records, the 15-year-old female victim initially met Parker in 2013 in San Bernardino, Calif. For several months, Parker stayed in touch with the victim through social media websites. In June 2014, the victim ran away from the group home where she resided and re-connected with Parker. Parker recruited her to work as a prostitute, teaming her with another prostitute who worked for him to teach the girl the ropes. In August 2014, Parker moved the victim to Los Angeles to work as a prostitute, but when that did not prove to be profitable enough, Parker returned with the victim to San Bernardino and then to Las Vegas in September 2014 for prostitution. Parker used the website Backpage.com to advertise the victim’s services as a prostitute. The victim was arrested by Las Vegas Metropolitan Police Department detectives in October 2014, and agreed to cooperate with authorities.
Operation Protect the Powerless was organized and led by the Project Safe Childhood (PSC) Task Force in southern Nevada, and targeted child traffickers, persons who were coercing and enticing minors for sex, child pornographers, child molesters and child rapists. Members of the PSC Task Force include the FBI, Homeland Security Investigations, the Las Vegas Metropolitan Police Department, Henderson Police Department, Clark County D.A.’s Office and the U.S. Marshals Service. Operation Protect the Powerless occurred from June 1 to Dec. 31, 2014, and resulted in the prosecution and conviction of 219 persons, the execution of 100 search warrants, and the recovery of over 500,000 images and 2,700 videos of child rape and pornography. The surge also resulted in prosecutions are being handled jointly by the U.S. Attorney’s Office and Clark County District Attorney’s Office, and resulted in distinct charges in federal and state court.
The case was prosecuted by Special Assistant United States Attorney Allison L. Herr of the Nevada Attorney General’s Office.
PSC is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about PSC, please visit www.usdoj.gov/psc.
Lynn Tax Preparer Pleads Guilty to Federal Tax FraudRead the Press Release
BOSTON – A Lynn tax preparer pleaded guilty in U.S. District Court in Boston yesterday to filing fraudulent personal federal tax returns and attempting to obstruct the Internal Revenue Service (IRS).
Arismendy Ramos, a/k/a Arismendi Ramos, a/k/a Aris Almonte, 42, pleaded guilty to an Information charging him with four counts of filing false tax returns and two counts of obstructing the IRS. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 3, 2016.
Ramos owned and operated Almonte Tax, a tax preparation service in Lynn, and personally prepared tax returns for numerous clients. From 2008 through 2013, Ramos allegedly filed false forms with the IRS claiming that he paid clients to work for him when in fact they had never been employed or paid by him. Ramos then claimed the bogus wages as business expenses on his own tax returns, thereby reducing his personal tax liabilities. Furthermore, Ramos instructed two clients that they should lie if they were asked about the false wages.
The charging statutes provide a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
Lewisburg man pleads guilty to Federal drug chargeRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a Lewisburg man pled guilty to a federal drug charge in federal court in Beckley. Miles Gregory, 41, pled guilty to possession with intent to distribute oxycodone and hydrocodone, admitting that on July 2, 2015, he possessed about 25 oxycodone pills and 279 hydrocodone pills in a car he was driving in Lewisburg, and that he intended to distribute the pills. Law enforcement authorities seized the pills during a search of Gregory’s vehicle. He faces up to 20 years in prison and a one million dollar fine when he is sentenced on January 28, 2016.
The case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale and use of heroin and illicit prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down drug trafficking, eliminating open air drug markets, and curtailing the spread of heroin and other opiate painkillers in communities across the Southern District. Assistant United States Attorney John File is handling the prosecution.
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Laguna Pueblo Woman Sentenced for Federal Misdemeanor Assault ConvictionRead the Press Release
ALBUQUERQUE – Allie P. Sarracino, 26, an enrolled member of the Laguna Pueblo who resides in Casa Blanca, N.M., was sentenced this afternoon in Santa Fe, N.M., to one year in prison followed by one year of supervised release for her misdemeanor assault conviction.
Sarracino was arrested on Dec. 8, 2014, on a criminal complaint charging her with assaulting an intimate partner by strangulation. According to the complaint, on Dec. 4, 2014, the Pueblo of Laguna Tribal Police Department responded to a report of assault on Laguna Pueblo in Cibola County, N.M. The complaint stated that Sarracino assaulted the victim, a Laguna woman, by striking her in the face and strangling her. Sarracino was subsequently indicted on Jan. 8, 2015, and charged with assaulting an intimate partner by strangulation.
On June 15, 2015, Sarracino entered a guilty plea to a misdemeanor information and admitted assaulting the victim by using her hands to strike the victim’s face. Sarracino also admitted holding the victim down by pressing on her shoulders and neck area. As a result of the assault, the victim suffered bruises, contusions and other wounds on her face and head.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Linda Mott prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Justice Department Resolves ADA Employment Discrimination Case Against Riverside County, CaliforniaRead the Press Release
Today the Justice Department has reached a settlement agreement with Riverside County, California, resolving claims alleging that the county violated the Americans with Disabilities Act (ADA). The complaint, filed on Sept. 28, 2015, alleges that the county discriminated in its employment practices by failing to hire a probation officer applicant because he has epilepsy. The job applicant was qualified for and could perform the job duties associated with the position, but the county withdrew his offer of employment solely because of his controlled epilepsy.
“Refusal to employ qualified individuals with disabilities, including epilepsy, because of their disability cannot be tolerated by workers in our country and will not be tolerated by the Department of Justice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.
“All qualified individuals, including those with disabilities, are entitled to equal employment opportunities,” said U.S. Attorney Eileen M. Decker of the Central District of California. “This settlement demonstrates the Department of Justice’s ongoing commitment to eliminating all forms of discrimination.”
Under the consent decree, which must be approved by the court, the county will pay the applicant $50,000, offer him the position as a probation officer, provide training on the ADA and file reports on its compliance with the decree and ADA with the Justice Department. The county, which cooperated with the department in this matter, has also taken steps to ensure that its employment processes will be free of disability based discrimination.
Title I of the ADA prohibits employers, such as Riverside County, from discriminating against a qualified individual on the basis of disability in regard to job application procedures, the hiring, advancement or discharge of employees, employee compensation, job training and other terms, conditions and privileges of employment. An employer may also not deny employment opportunities to a job applicant or employee who is otherwise qualified if the denial is based on the need to make reasonable accommodations for the applicant or employee. This matter was based on a referral from the Los Angeles District office of the Equal Employment Opportunity Commission who completed the initial investigation of the facts.
Those interested in finding out more about federal disability rights statutes can call the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at www.ada.gov.
Justice Department Announces Schaffhauser Kantonalbank Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Schaffhauser Kantonalbank (SHKB) has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, SHKB agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
SHKB is a regional Swiss bank that was founded in 1883 and operates out of its headquarters in Schaffhausen, Switzerland. All seven of SHKB’s locations are within the Canton of Schaffhausen, and all branches are within a radius of 10 miles of its headquarters. As a cantonal bank, SHKB is obliged to service primarily the residents of the Canton of Schaffhausen and the surrounding areas.
Through its managers, employees and others, SHKB knew or had reason to know that some U.S. taxpayers who had opened and maintained accounts at SHKB were not complying with their U.S. income tax and reporting obligations. SHKB offered a variety of traditional Swiss banking services that it knew could assist, and that did in fact assist, U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). One such service was hold mail, through which SHKB would hold all mail correspondence for a particular client at SHKB. It also offered code name or numbered account services, where SHKB would allow the accountholder to replace his or her identity with a code name or number on bank statements and other documentation sent to the client. These services helped U.S. clients to eliminate the paper trail associated with the undeclared assets and income they held at SHKB in Switzerland. By accepting and maintaining such accounts, SHKB assisted some U.S. taxpayers in evading their U.S. tax obligations.
SHKB opened and maintained accounts for U.S. taxpayers who had left other banks being investigated by the department without ensuring that each such account was compliant with U.S. tax law from the account’s inception at SHKB. SHKB also arranged for the issuance of credit, debit or travel cards to the beneficial owners of some U.S.-related accounts, and offered travel cash cards, on which a client could load up to 10,000 Swiss francs, U.S. dollars or euros from his or her SHKB bank account by instructing SHKB by telephone, mail or e-mail. The client could then use the card for purchases or remit unused balances back to the SHKB account. Use of these cards by U.S. persons facilitated their access to or use of undeclared funds on deposit at SHKB.
SHKB issued checks, including series of checks, in amounts of less than $10,000 that were drawn on accounts of U.S. taxpayers, even though SHKB knew, or had reason to know, that the withdrawals were made to avoid triggering scrutiny under the U.S. currency transaction reporting requirements. Furthermore, since Aug. 1, 2008, SHKB processed significant cash withdrawals for at least 15 U.S. taxpayers at or around the time the clients’ accounts were closed, even though SHKB knew, or had reason to know, the accounts contained undeclared assets. For example, in November 2009, SHKB processed a U.S. taxpayer’s cash withdrawal of more than 400,000 euros when SHKB closed the account.
In the period since Aug. 1, 2008, SHKB held one structured account that was a U.S.-related account with maximum assets under management of approximately $11.5 million. The nominal accountholder was a foundation in Liechtenstein, but the true owner was a U.S. person, which aided and abetted the client’s ability to conceal an undeclared account from the IRS.
In 2001, SHKB entered into a Qualified Intermediary Agreement (QI Agreement) with the IRS. The QI Agreement was designed to help ensure that, with respect to U.S. securities held in an account at SHKB, non-U.S. persons were subject to the proper U.S. withholding tax rates and that U.S. persons holding U.S. securities were properly paying U.S. tax. In general, if an accountholder wanted to trade in U.S. securities and avoid mandatory U.S. tax withholding, the QI Agreement required SHKB to obtain the consent of the accountholder to disclose the client’s identity to the IRS. The QI Agreement required SHKB to obtain IRS Forms W-9 and to undertake IRS Form 1099 reporting for new and existing U.S. clients engaged in U.S. securities transactions.
In 2002, SHKB forbade the purchasing or holding of U.S. securities for U.S. persons, and it also required all U.S.-domiciled persons to provide a hold-mail instruction to SHKB. As a practical matter, this policy allowed SHKB to avoid having to disclose the identities of U.S. clients to the IRS under its QI Agreement. SHKB chose to continue to service U.S. clients without disclosing their identities to the IRS and without considering the impact of U.S. criminal law on that decision. Until May 2012, SHKB did not require all of its U.S. clients to provide a signed IRS Form W-9 and to confirm whether their accounts were disclosed to the IRS.
Through the Swiss Bank Program, SHKB has cooperated with the department and provided information to the U.S. government about its cross-border business with U.S.-related accounts. Following SHKB’s efforts, approximately 24 of its U.S.-related accounts have thus far entered into an IRS Voluntary Disclosure Program or Initiative. Moreover, SHKB has obtained waivers of Swiss bank secrecy for approximately 87 percent of its U.S.-related accounts and has provided customer names for those accounts to the U.S. government.
Since Aug. 1, 2008, SHKB held a total of 182 U.S.-related accounts with approximately $84.5 million in assets under management. SHKB will pay a penalty of $1.613 million.
While U.S. accountholders at SHKB who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at SHKB must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Kimberle E. Dodd, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
SHKB Executed NPA and SOF (897.82 KB)
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Johnstown Man Sentenced to 5 Years in Prison for Conspiring to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to sixty months in prison and four years’ supervised release on his conviction of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Terrance Sitton, 42.
According to information presented to the court, from Jan. 22, 2015, to April 17, 2015, Sitton conspired to distribute and possess with the intent to distribute 100 grams or more of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Altoona Police Department, and the Cambria County District Attorney's Office, for the investigation leading to the successful prosecution of Sitton.
Jacksonville Fugitive Pleads Guilty to Failing to Appear for SentencingRead the Press Release
Jacksonville, Florida – U.S. Attorney A. Lee Bentley, III announces that Charles Cornelius Smith (35, Jacksonville) has pleaded guilty to failing to appear in federal court for his sentencing hearing. He faces a maximum penalty of 10 years in federal prison that must run consecutively to the sentence that will be imposed in a second federal case involving the passing of counterfeit Federal Reserve notes. No sentencing date has been set for either case.
According to court documents, in December 2014, Smith was indicted on three counts of uttering counterfeit Federal Reserve notes. He was arrested on January 20, 2015, and was released on bail. Smith pleaded guilty on February 6, 2015, and a sentencing hearing was set for May 27, 2015. On the day of sentencing, however, Smith failed to appear. Approximately four months later, Smith was arrested by deputies from the U.S. Marshals Service in Jacksonville.
This case was investigated by the United States Secret Service, Jacksonville Field Office and the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Indy’s high five line to continueRead the Press Release
Earlier this week, over 70 prominent men from the Indianapolis community attended a rally at the Tindley Preparatory Academy to show their support for the young men attending school there. A human tunnel was formed by men from the community as the Tindley scholars ran through getting “high fived” starting their school day.
The program was a huge success, (see Indy Star article indy.st/1Rrrc4e) and U S Attorney Josh Minkler would like to extend an invitation to all men in this community to come forward and show their support for the youth in our community.
“I was uplifted by the show of support by so many caring men at Tindley Prep earlier this week,” said Minkler. “The rally gave me renewed confidence, that together, we can make a difference in keeping our children safe and reducing violent crime in our neighborhoods. I challenge every person in Indianapolis to come out to future events and do your part to support our youth.”
Future events include:
Friday October 30, 2015, 7:30 am, John Marshall, 10101 E. 38th Street
Monday, November 2, 2015, 7:30 am, Avondale Meadows, 3980 Meadows Drive
Friday, November 13, 8:30 am, Arlington Woods Elementary, 5801 E 30th Street
Monday, November 16, 2015, 8:15 am, Geo H. Fisher Elementary, School #93,
7151 E 35th Street.
Friday, December 4, 7:00 am, Westlake Elementary, 271 Sigsbee Street
Friday December 11, 2015, 8:00 am, Vision Academy @ Riverside,
1751 Riverside Drive
Other dates will be announced in the near future.
Hudson Valley ‘Breaking Bad’ Dealer Sentenced in White Plains Federal Court to 35 Years in Prison for Distributing Heroin and Fentanyl That Caused the Deaths of Three PeopleRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DENNIS SICA was sentenced today in White Plains federal court to 35 years in prison for participating in a conspiracy to distribute heroin and fentanyl, the use of which resulted in the deaths of three individuals: Anthony Delello, Laura Brown, and Thomas Miller. SICA was sentenced by United States District Judge Cathy Seibel.
U.S. Attorney Preet Bharara stated: “Sica chose again and again, to sell lethal heroin laced with fentanyl for profit, even after realizing that his ‘Breaking Bad’ branded drugs were killing people. No sentence is going to bring back the three young people whose lives were cut short, but this prosecution hopefully brings some closure to their loved ones and causes others who peddle the poison of fentanyl-laced heroin not to make the same terrible choices Sica made.”
According to the allegations contained in the Indictment, the underlying criminal Complaint unsealed on June 19, 2014, and statements made during court proceedings:
From at least late 2013 to February 2014, SICA and others worked together in Dutchess County to sell a particularly potent form of heroin, bags of which were stamped with the brand name ‘Breaking Bad.’ At least some of the heroin distributed by SICA was laced with fentanyl, a synthetic opioid that is significantly stronger than street heroin.
On the night of December 28, 2013, SICA sold ‘Breaking Bad’ heroin to Anthony Delello, a 20-year-old resident of Beekman, New York. Delello snorted some of SICA’s heroin and was found dead by his girlfriend the following day. The Dutchess County Medical Examiner’s report concluded that he died from “acute heroin intoxication.”
Delello’s death did not stop SICA from selling ‘Breaking Bad’ heroin. Four days after Delello was found dead, SICA exchanged a series of text messages with a co-conspirator in which SICA urged the co-conspirator to delete the text message history in the phone they used to sell heroin and, if asked, to deny knowing anything about Delello or the manner of his death.
Slightly more than a month after Delello’s death, two more individuals died after overdosing on ‘Breaking Bad’ heroin. On February 1, 2014, Thomas Miller, 31, was found dead by his mother at his home in Pawling, New York. A hypodermic needle, as well as several glassine bags stamped with the words ‘Breaking Bad,’ were found near his body. Some of the glassine bags were full, others were empty. A chemical analysis of the contents of the full glassine bags showed that they contained a mixture of quinine, fentanyl, and heroin. The medical examiner’s report indicates that Miller died of “acute intoxication by the combined effects of heroin and fentanyl.”
The same day that Miller was found dead, Laura Brown, 35, was found dead of an apparent heroin overdose in New Milford, Connecticut. Brown was found with needles and glassine bags near her body. Several of the glassine bags were stamped with the words ‘Breaking Bad.’ The autopsy performed on Brown’s body showed that she died of “acute heroin and fentanyl intoxication.” According to Brown’s brother, he and Brown together bought ‘Breaking Bad’ heroin from SICA two days before Brown was found dead.
On February 2, 2014, SICA was arrested by state authorities in East Fishkill, New York, after a car in which he was riding was stopped by law enforcement. During a subsequent search of the car, law enforcement officers recovered several glassine bags stamped with a ‘Breaking Bad’ stamp identical to the one that appears on the envelopes recovered from Thomas Miller’s bedroom.
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SICA, 37, of Hopewell Junction, New York, pled guilty to one count of conspiracy to distribute heroin and fentanyl resulting in death. In addition to the sentence of 35 years in prison, SICA was also sentenced to four years supervised release.
Mr. Bharara praised the outstanding investigative work of the Drug Enforcement Administration’s (“DEA”) Tactical Diversion Squad and the Dutchess County Drug Task Force. The DEA’s Tactical Diversion Squad is comprised of agents and officers from the DEA, the New York City Police Department, the New York State Police, Town of Orangetown Police Department, and the Westchester County Police Department. The Dutchess County Drug Task Force is composed of the City of Poughkeepsie Police Department, the Town of Poughkeepsie Police Department, the East Fishkill Police Department, and the Dutchess County Sheriff’s Office. Mr. Bharara also thanked the New York State Police Forensics Unit, the Dutchess County District Attorney’s Office, the Dutchess County Sheriff’s Office, and the police department for the City of New Milford, Connecticut, for their assistance in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Scott Hartman and Benjamin Allee are in charge of the prosecution.