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20 November 2015
Hartford Man Sentenced to Federal Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE SERRANO, 30, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day imprisonment, followed by two years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, in February 2015, during an ongoing investigation into drug trafficking activities in Hartford, the Federal Bureau of Investigation (“FBI”) obtained information that an individual, later identified as SERRANO, was seeking to sell a handgun. On February 11, 2015, SERRANO sold a Kel-Tec, Model P-11, 9mm handgun, which was loaded with nine rounds of ammunition, to an individual who was cooperating with law enforcement, in exchange for $750.
SERRANO was arrested at his residence on June 15, 2015. A subsequent search of his residence revealed approximately 300 rounds of assorted .380 and 9mm caliber ammunition, approximately five pounds of “Kisha Kole” synthetic marijuana packages, approximately 4.6 grams of marijuana and $6,523 in cash. Following SERRANO’s arrest, he and his wife forfeited two additional handguns.
In 2007, SERRANO was convicted of a felony offense involving unlawful possession of a handgun. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
SERRANO has been detained since his arrest. On September 3, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.
State charges related to the possession of synthetic marijuana are pending against SERRANO.
This case was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Harpswell Woman Pleads Guilty to Bank EmbezzlementRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Cecile Roux, 38, of Harpswell, Maine, pled guilty today in U.S. District Court to embezzling bank funds.
According to court records, between April 12, 2012 and August 14, 2015, Roux, while serving as the head bank teller at the Bank of Maine in Brunswick, Maine, transferred $107,000 in a series of transactions from a customer’s account into her own account without authority.
Roux faces up to 30 years in prison and a $1,000,000 fine. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the Federal Bureau of Investigation and the Brunswick Police Department.
Hardin County and Grayson County, Kentucky Bank Robbers Sentenced to Prison TermsRead the Press Release
LOUISVILLE, Ky. – A Hardin County, Kentucky, man and a Grayson County, Kentucky, man were sentenced today by Senior Judge Charles R. Simpson III, to multiple years in prison for their roles in the December 23, 2014 robbery of the Westport Bank in Glendale, Kentucky announced United States Attorney John E. Kuhn, Jr.
Leonard Duane Sisk, age 55, of Cecilia, in Hardin County, Kentucky, was sentenced to 33 months in prison, followed by three years of supervised release and ordered to pay a $100 fine. Justin Matthew Collinge, age 33, of Leitchfield, in Grayson County, Kentucky, was sentenced to 30 months in prison, followed by a three year period of supervised release and ordered to pay a $100 fine. They were both ordered to pay restitution. Sisk was ordered jointly and severally liable for the full stolen amount of $8,815.00 and Collinge was ordered jointly and severally liable for half the stolen cash in the amount of $4,407.00.
Both defendants pleaded guilty to the single charge of bank robbery by force or violence on June 26, 2015 in U.S. District Court. Both defendants remain in the custody of the U.S. Marshals Service.
According to the plea agreements, on December 23, 2014, defendant Sisk, knowingly aided and abetted by defendant Collinge, who acted as the getaway driver, robbed the West Point Bank. Sisk admitted to wearing a disguise while inside the bank, to demanding money from the teller, and to pointing a toy pistol at the teller which was painted black. The teller handed Sisk $8,815.00. Collinge admitted to driving a vehicle provided by Sisk, to the bank and to waiting for the robbery to occur, before acting as the getaway driver subsequent to the robbery.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Federal Bureau of Investigation (FBI) with assistance from the Kentucky State Police.
Gloucester Seafood Executive Indicted on Tax ChargesRead the Press Release
BOSTON – The president of a major seafood processing company in Gloucester was arrested today in connection with failing to pay taxes on more than $2 million in income he earned from 2006 to 2009.
Jack Ventola, 68, of Ipswich, was indicted on three counts of filing false tax returns and one count of conspiracy to defraud the Internal Revenue Service (IRS).
The indictment alleges that Ventola was the president and part owner of a major seafood processor that utilized the services of a temporary labor company called Continental Labor Team, Inc., which Ventola and a co-conspirator, who was also an executive of the seafood processor, controlled. Ventola and his co-conspirator allegedly worked together to channel money out of Continental and into their personal bank accounts, tax free. To do this, the co-conspirator allegedly prepared fraudulent invoices for work supposedly done for Continental by a shell company Ventola controlled called International Freezing Systems (IFS). Ventola and his co-conspirator allegedly used the fake IFS invoices to obtain payments from Continental, which they deposited into one of Ventola’s personal bank accounts. From there, Ventola used the funds to pay personal expenses and also wrote his co-conspirator personal checks approximately monthly. Although the checks from Continental totaled more than $2 million between 2006 and 2009, neither Ventola nor his co-conspirator reported the income on their tax returns.
The indictment also alleges that Ventola failed to report approximately $149,000 of other income he received in 2008 and 2009.
The charge of filing a false tax return provides for a penalty of no greater than three years in prison, one year of supervised release and a fine of $100,000. The conspiracy charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on 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 Investigations, made the announcement today. This case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Glenview Man Indicted for Lying to Federal Grand Jury Investigating Possible Hiring Violations in Cook County Circuit Court Clerk's OfficeRead the Press Release
CHICAGO — A Glenview man who was hired by the Cook County Circuit Court Clerk’s Office after purportedly loaning $15,000 to a company controlled by the Clerk’s husband lied under oath when testifying about it before a grand jury, according to a federal indictment announced today.
In August 2014, SIVASUBRAMANI RAJARAM purportedly loaned $15,000 to Goat Masters Corporation, whose president was the husband of the Cook County Circuit Court Clerk. The following month, Rajaram was hired by the Clerk’s Office as a level four Senior Clerk. Rajaram had previously worked in the Clerk’s Office but had been living in India for several years.
On or about Oct. 1, 2015, Rajaram testified before a federal grand jury that was conducting an investigation of possible criminal violations in connection with the purchasing of jobs and promotions within the Clerk’s Office. During his testimony, Rajaram said he had not spoken to the Circuit Court Clerk after his 2014 hiring. He also testified he had only spoken to another high-ranking employee of the Clerk’s Office “three or four times” since returning to Chicago from India, and that the conversations were not by phone.
The indictment alleges that both statements were false. According to the indictment, Rajaram spoke with both the Clerk and the high-ranking employee after being re-hired in 2014. His conversations with the high-ranking employee occurred dozens of times via cell phone, according to the indictment.
The indictment was returned Thursday in U.S. District Court in Chicago. Rajaram, 48, of Glenview, was charged with one count of making false declarations before a grand jury. The charge carries a maximum sentence of five years in prison. The Court has not yet scheduled an arraignment hearing.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Patrick M. Blanchard, Cook County Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorneys Heather McShain and Ankur Srivastava.
Indictment
Glen Burnie Man Sentenced to over Seven Years in Prison for Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced James Maurice McCants, age 42, of Baltimore, today to 92 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine. Co-defendants Eddie Eusebio Mateo, age 31, of Pikesville, Maryland, cocaine and Robert Bookhamer, age 37, of Baltimore, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine. Mateo entered his plea today and Bookhamer entered his plea on November 17, 2015.
The sentence and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Anne Arundel County Police Chief Tim Altomare.
According to McCants’ and Mateo’s plea agreements, from at least May 2013 through July 23, 2014, they were members of a conspiracy to distribute cocaine and crack cocaine in Baltimore and Anne Arundel County, Maryland. Bookhamer was a member of the conspiracy from March to June 2014. Other members of the conspiracy included Alex Raymond Valerio, Moises Rosario, Joseph Melendez, Keith Joseph Herring, Dartanon Antione Gaines, and others.
According to their plea agreements McCants, Mateo and Bookhamer obtained cocaine from Valerio, Rosario and others. McCants also obtained heroin from Valerio. McCants and Bookhamer sold the drugs obtained from Valerio to their own customers, while Mateo distributed the drugs on behalf of Valerio to several of the conspiracy’s customers on behalf of Valerio. The conspirators were intercepted in telephone calls and text messages discussing their drug trafficking activities. Law enforcement also observed the defendants meeting with Valerio to conduct drug transactions.
On May 20, 2014, investigators conducted a traffic stop of McCants’ vehicle after he had met with Valerio at Valerio’s residence. Law enforcement recovered approximately 42.2 grams of crack cocaine from McCants’ front waistband area, which he admitted purchasing from Valerio.
On July 23, 2014, investigators executed a search warrant at Bookhamer’s home in Baltimore and recovered: $7,108 in cash; plastic bags with approximately 22 grams of cocaine; drug paraphernalia and packaging materials; a .45 caliber handgun with two magazines; a rifle with a large capacity magazine; a box of .45 caliber ammunition; and multiple cell phones.
On that same day investigators also executed a search warrant at Mateo and Rosario’s home in Pikesville, as well as a home in Glen Burnie, frequented by Mateo and utilized by Valerio to store and distribute drugs to other members of the conspiracy. At the Pikesville home investigators located: a six ton shop press, a dye press, five bundles of heroin (totaling approximately 11.7 grams), scales with cocaine reside, marijuana seeds, and twenty marijuana plants. In the Glen Burnie home law enforcement recovered: two hydraulic presses; spoons with cocaine residue; drug paraphernalia including cutting agent and packaging material; a hand press; approximately 30.9 grams of cocaine; and $24,000 in cash.
McCants admitted that during his participation in the conspiracy, he conspired to distribute between 280 and 840 grams of crack cocaine. Mateo and Bookhamer admitted that they were responsible for the distribution of between 500 grams and two kilograms of cocaine.
Co-defendants Alex Raymond Valerio, age 35, of Glen Burnie; Moises Rosario, age 33, of Pikesville, Maryland; Joseph Melendez, age 28, of Brooklyn, New York; Keith Joseph Herring, age 27, of White Marsh, Maryland; and Dartanon Antione Gaines, age 36, of Owings Mills, Maryland, previously pleaded guilty to their roles in the drug conspiracy. Rosario was sentenced to two years in prison and the others are awaiting sentencing. Three other defendants are pending trial.
Bookhamer and Mateo each face a maximum sentence of 20 years in prison. Judge Motz has scheduled sentencing for Mateo on February 2, 2016 and for Bookhamer on March 11, 2016.
United States Attorney Rod J. Rosenstein commended the DEA and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Four People Charged in Tax Fraud ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – Jorge Maldonado, 51, was arraigned today in the U.S. District Court in Tallahassee after a federal grand jury returned a 21 count indictment charging him and his daughter, Jennifer Maldonado, 28, both of Oviedo, Florida, and co-conspirators Sharon Glover, 53, and Diane White, 54, both of Sanford, Florida, with conspiracy, wire fraud, theft of government property, and aggravated identity theft. Jennifer Maldonado, Glover, and White were arraigned in federal court on November 16. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges that, between February 2009 and October 2011, the Maldonados, who were both tax preparers, together with Glover and White, conspired to obtain more than $815,000 in tax refunds issued on fraudulent income tax returns. The trial is scheduled for January 11, 2016, at 8:15 a.m.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Herbert S. Lindsey is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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 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]Four Missouri Men Charged with Illegally Cutting Down Trees in Mark Twain National ForestRead the Press Release
St Louis, MO – MELVIN L. ARGANBRIGHT IV, Salem, Missouri, and CODY D. WOFFORD, Salem, Missouri, were indicted by a federal grand jury Wednesday, November 18, for allegedly cutting down over 300 trees on Mark Twain National Forest land in Dent County between June 1 and August 15, 2015.
In a separate unrelated case, WAYNE MESSEX and JOHN TURMAN were indicted for allegedly cutting down over 50 white oak trees in the Mark Twain National Forest between October and December 2014. Messex, Richwoods, Missouri, and Turman, St. Clair, Missouri, were each indicted by a federal grand jury earlier this month on one felony count of theft of government property.
If convicted, this charge carries a maximum penalty of ten years in prison and/or a fine up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by agents from U.S. Forest Service. Assistant United States Attorneys Gwen Carroll and Gilbert Sison are handling the cases 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.
Four Charged with Violating Federal Drug LawsRead the Press Release
PITTSBURGH – Two Pennsylvania residents and two New Yorkers have been charged in an Indictment by a federal grand jury in Pittsburgh with violations of federal narcotics laws, United States Attorney David J. Hickton announced today.
The indictment, returned on Nov.19, named the following people:
- Forrest Gilmore, 20, of New Castle, PA;
- Rondell Evans, 22, of Buffalo, NY;
- Melvin Dorsey-Pace, 23, of New Castle, PA; and
- Jada Davis, 21, of Buffalo, NY.
According to the Indictment, from in and around January, 2015, and continuing thereafter to in and around November, 2015, in the Western District of Pennsylvania and elsewhere, Gilmore, Evans, and Dorsey-Pace conspired with one another and others to possess with intent to distribute and distribute 28 grams or more of cocaine base. Additionally, on or about November 2, 2015, in the Western District of Pennsylvania, Evans and Davis possessed with intent to distribute a sum of cocaine base.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both for defendants Gilmore, Evans, and Dorsey-Pace. The provides for a maximum total sentence of not more than twenty (20) years, a fine of $1,000,000.00, or both for defendant Davis. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force conducted the investigation leading to the Indictment in this case. These defendants were prosecuted through a multi-agency federal effort within the Organized Crime Drug Enforcement
Task Force (OCDETF) program. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. The defendants are presumed innocent unless and until proven guilty.
Former Treasurer of Henderson, Kentucky, Church Charged with Embezzling FundsRead the Press Release
BOWLING GREEN, Ky. – The former treasurer of Greater Norris Baptist Church, located in Henderson County, Kentucky, was charged by grand jury indictment this week, with eleven counts of wire fraud announced United States Attorney John E. Kuhn, Jr.
According to the indictment, Delanie L. Tillman, of Henderson County, devised a scheme to defraud and obtain money and property by means of false pretenses, from the Greater Norris Baptist Church, between November 23, 2010 and June 5, 2014.
Specifically, Tillman is charged with making unauthorized wire transfers and writing unauthorized checks to pay for personal expenses using the church’s funds for a loss of $9,764.24.
If convicted at trial, Tillman could be sentenced to no more than 20 years in prison, ordered to pay a fine of up to $250,000 and serve a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation.
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The charging of a person by a Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty
Former Smith County Insurance Agent Guilty in $5.4 million Fraud SchemeRead the Press Release
TYLER, Texas – A 64-year-old former insurance agent has pleaded guilty to wire fraud and money laundering in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Robert B. Hahn, of Tyler, pleaded guilty to an information charging him with wire fraud and money laundering on Nov. 19, 2015 before U.S. Magistrate Judge John D. Love.
According to information presented in court, from January 2007 to February 2015, Hahn devised and executed a scheme in which he claimed to represent a group of doctors, in Tyler, Texas, who were raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn led approximately 100 potential investors to believe this group of doctors would pay an annual interest rate of 20% on their loans or investments. Hahn then collected funds from these individuals and deposited them into his insurance business or personal checking accounts. Hahn would periodically make “interest” payments, in cash, to said individuals, representing a 20% return on said fictitious loans or investments, utilizing funds he had derived from earlier investors. Upon request, Hahn would return principle loan or investment funds to said individuals in the form of a check drawn on his insurance or personal checking accounts, using funds he had received from other investors. Hahn admitted that in truth and in fact, there never was a group of doctors raising capital for debt retirement, construction of, or improvements to, health care facilities, and medical equipment purchases. Hahn admitted he simply made up this story to obtain and maintain funds for his personal use.
As a result of the scheme, Hahn collected approximately $5,479,600.00 from individual investors. In furtherance of the scheme, during the relevant time period, Hahn returned or distributed approximately $4,072,470.00, in proceeds from the fraud scheme to some of the individuals in the form of returned “principle” and “interest” or “earnings”.
Hahn faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Federal Bureau of Investigation, Tyler Office, the Internal Revenue Service, Criminal Investigations Division, the Texas State Securities Board, and prosecuted by Assistant U.S. Attorney Jim Noble.
Former Secretary-Treasurer of Labor Union Charged with Filing False Report with Department of LaborRead the Press Release
Joshua Lewis, 33, of St. Louis, Missouri, was indicted by a federal grand jury in East St. Louis, Illinois, on November 19, 2015, for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The indictment alleges that Lewis was the secretary-treasurer for the Brotherhood of Maintenance of Way Employees Division (BMWED) Lodge 212 from December 2011 until September 2012. The indictment alleges that during the time that Lewis served as Treasurer he converted to his own use, without authority, union funds in excess of $3,000. The indictment alleges that Lewis filed a false annual report for the union with the Department of Labor that falsely reported that he did not receive any union funds during the fiscal year ending March 31, 2014. The submission of the false annual financial report concealed the funds Lewis converted from the union. Lewis faces a prison sentence of up to 1 year, a fine of up to $100,000, and up to 1 year supervised release if convicted of the charge.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Scott Credit Union Loan Officer Indicted for FraudRead the Press Release
Theodore J. Longust, 50, formerly from Columbia, Illinois, was indicted on November 18, 2015, by a federal grand jury in East St. Louis, Illinois, in a nine count Indictment charging: Count 1: Financial Institution Fraud; Counts 2 - 5: Misapplication of Funds; Counts 6 - 8: Money Laundering; and Count 9: Making a False Record to Scott Credit Union With The Intent to Deceive, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Longust was an employee and officer of Scott Credit Union in the commercial loan department from November 7, 2005, continuing through December 8, 2014, and held the title of Business Relationship Manager. The indictment further alleges that he executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security and the issuance of letters of credit without the required documentation and security. The indictment also alleges that Longust knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000.
If convicted, Longust faces a prison sentence of up to 240 years, a fine of up to $4,500,000, and up to 5 years supervised release, and mandatory restitution. The safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct. Employees of Scott Credit Union cooperated in the federal investigation.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations, with the assistance of Scott Credit Union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Labor Union Treasurer Charged with EmbezzlingRead the Press Release
Jeffrey Magelitz, 44, of Chester, Illinois, was indicted by a federal grand jury in East St. Louis, Illinois, on November 18, 2015, for embezzlement and theft from a labor union and for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Magelitz was the former treasurer of the American Federation of State, County and Municipal Employees, Local 415, in Vienna, Illinois, from January of 2012 through June of 2013. AFSCME Local 415 represents employees at the Vienna Correction Center, located in Vienna, IL. The indictment alleges that Magelitz embezzled $30,811.96 and prepared and cashed unauthorized checks for himself and forged the signatures of the president and vice-president of the union on the checks. The indictment also alleges that Magelitz submitted a false annual report for the union which contained the forged signature of the president and falsely reported the amount of money that he received during the year. If convicted Magelitz faces a prison sentence of up to 6 years, a fine of up to $350,000, and up to 3 years’ supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Federal Correctional Officer Sentenced to Prison for Accepting BribesRead the Press Release
Ocala, Florida – Senior United States District Judge Wm. Terrell Hodges has sentenced Robert Lawrence Brown (32, Clermont) to two years in federal prison for accepting a bribe as a public official. He pleaded guilty on September 4, 2015.
According to court documents, beginning in January 2015, Brown used his position as a Correctional Officer at the Coleman Federal Correctional Complex to smuggle contraband to inmates in exchange for monetary payments. On June 18, 2015, federal agents monitored a meeting between Brown and a cooperating witness. During that meeting, Brown accepted $2,600 for items that he had already smuggled into the prison. When confronted by investigators, Brown admitted that he had illegally negotiated $7,100 in cash payments in return for smuggling cellphones, prescription pills, tobacco, and other items to federal inmates.
This case was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Business Executive Indicted for Failing to Pay More than $250,000 in Child Support ObligationsRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence returned a two-count indictment on Thursday charging Christopher Carroll, 47, formerly of Jamestown, R.I., with allegedly travelling in interstate and outside the country to evade paying more than $250,000 in child support payments for his three minor children, age 9, 11 and 14, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.
According to court documents, it is alleged that Carroll, a former senior marketing executive with an international energy management company based in Paris, France, and which operates a facility in West Kingston, R.I., ceased paying Rhode Island Family Court ordered child support payments of $6,000 per month in January 2013, two years after the court ordered the payments to begin. On June 17, 2013, a Rhode Island Family Court judge ruled that Carroll was in contempt of court for failing to meet his child support obligations, which to date totals more than $250,000.
According to court documents, during the pendency of his child support obligations, Carroll, who has had numerous investment accounts, withdrew at least $369,329.31 from those accounts.
The indictment charges Christopher Carroll with interstate travel to avoid child support obligation and failure to pay child support. An arrest warrant has been issued for Carroll, who is believed to be traveling abroad.
According to court documents, in May 2012, Carroll relocated to his employer’s Paris headquarters where he was employed until October 2012. Since that time, according to court documents, Carroll remarried, renounced his U.S. Citizenship and has been traveling abroad utilizing a Republic of Ireland passport. According to court documents, Carroll and his current wife identify themselves as being semi-retired, and have stated that they have spent the past year traveling in Europe, Central and South America, Canada and the United States.
An indictment is merely an allegation 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.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose. The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, with the assistance of the Rhode Island Child Support Enforcement Office.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Belleville Doctor's Office Manager Indicted for FraudRead the Press Release
Jerry L. Akin, 60, formerly from Belleville, Illinois, was indicted by a federal grand jury in East St. Louis, Illinois, on November 19, 2015, for two counts of wire fraud involving a scheme to embezzle funds from the doctor's office, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Jerry L. Akin charged personal purchases to the company's credit card that included Cardinal baseball season tickets, concert tickets, medical bills and personal travel expenses. The indictment further alleges that Akin paid personal credit card bills using the business checking account and that he attempted to conceal the payments by altering the payee of the checks in the business' QuickBooks accounting software. The indictment also alleges that he paid himself excess salary. If convicted, Akin faces a prison sentence of up to 40 years, a fine of up to $500,000, and up to 3 years supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, with the assistance of the doctor's office. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Beaver County Woman Embezzled from Employer to Pay for Personal ExpensesRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.
Maria P. Makozy, 47, of Port St. Lucie, FL, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, Maria Makozy embezzled from her former employer, Keymax Settlement Services, to pay for personal credit card expenses using company checks.
Judge Schwab scheduled the sentencing for March 16, 2016, at 9 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Foreign National Pleads Guilty to Human Smuggling ChargesRead the Press Release
HOUSTON – A foreign national pleaded guilty today to conspiracy and a human smuggling charge for her role in a scheme to smuggle undocumented migrants from India into the United States, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division along with Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) in San Antonio.
On April 23, 2015, Rosa Astrid Umanzor-Lopez, 36, a citizen of Guatemala, was extradited to the United States from Guatemala to face one count of conspiracy to smuggle undocumented migrants into the United States for profit and five counts of human smuggling charges in the Southern District of Texas.
At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States. For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot. Many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo.
To this date, three co-conspirators have been convicted and sentenced. Umanzor-Lopez’s sentencing hearing is scheduled for March 4, 2016, in Houston.
The investigation was conducted by HSI agents in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald and Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Foreign National Pleads Guilty to Human Smuggling ChargesRead the Press Release
A foreign national pleaded guilty today to conspiracy and a human smuggling charge for her role in a scheme to smuggle undocumented migrants from India into the United States, announced Assistant Attorney General Leslie R. Caldwell of the Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas and Special Agent in Charge Shane Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in San Antonio.
On April 23, 2015, Rosa Astrid Umanzor-Lopez, 36, a citizen of Guatemala, was extradited to the United States from Guatemala to face one count of conspiracy to smuggle undocumented migrants into the United States for profit and five counts of human smuggling charges in the Southern District of Texas.
At the plea hearing and in related court documents, Umanzor-Lopez admitted that between January 2011 and her arrest in Guatemala on Feb. 4, 2014, she and other conspirators recruited individuals in India who were willing to pay large sums of money to be smuggled into the United States. For their smuggling operations, Umanzor-Lopez and her co-conspirators used a network of facilitators to transport groups of undocumented migrants from India through South America and Central America and then into the United States by air travel, automobiles, water craft and foot. Many of these smuggling events involved illegal entry into the United States via the U.S.-Mexico border near McAllen and Laredo, Texas.
To this date, three co-conspirators have been convicted and sentenced. Umanzor-Lopez’s sentencing hearing is scheduled for March 4, 2016 in Houston.
The investigation was conducted by ICE-HSI agents in McAllen, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Trial Attorney Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Florida Man Pleads Guilty to Felony Charge for Flying Gyrocopter to U.S. Capitol GroundsRead the Press Release
WASHINGTON – Douglas Hughes, 62, of Ruskin, Fla., pled guilty today to a federal charge stemming from the April 15, 2015 incident in which he flew a gyrocopter into Washington, D.C., and landed on the Front Lawn of the Capitol, announced U.S. Attorney Channing D. Phillips, Kim C. Dine, Chief of the United States Capitol Police, and David C. Williams, Inspector General for the United States Postal Service.
Hughes pled guilty in the U.S. District Court for the District of Columbia to a charge of operating as an airman without an airman’s certificate. The charge is a felony that carries a statutory maximum of three years in prison and a fine of up to $250,000. The Honorable Colleen Kollar-Kotelly scheduled sentencing for April 13, 2016. As part of the plea agreement, Hughes has agreed to the forfeiture of his gyrocopter, which was seized on the day of the incident.
“Douglas Hughes put himself and countless others in danger when he flew his gyrocopter without a license into our country’s national defense airspace, and through the three no-fly zones protecting the nation’s capital,” said U.S. Attorney Phillips. “Douglas Hughes’s flight also caused a lockdown of the U.S. Capitol Building, and traffic delays in downtown Washington, D.C. With the defendant pleading guilty to the lead charge of his indictment, a felony, this prosecution will hopefully deter others from violating the highly restricted airspace surrounding Washington, D.C.”
According to the government’s evidence, on April 15, 2015, Hughes drove to the Gettysburg Regional Airport in Pennsylvania and unpacked his gyrocopter for a flight to Washington, D.C. Hughes had never had an airman’s certificate (pilot’s license) and he did not license his aircraft with the Federal Aviation Administration. Hughes also did not file a flight plan with the FAA or any other governmental agency, and he did not seek to obtain any official authorization before or during his flight. Hughes had modified his aircraft and placed a U.S. Postal Service insignia on it. Although Hughes worked for the U.S. Postal Service, and was wearing an agency jacket, he was not acting in any official capacity at the time.
Hughes placed two bins into the gyrocopter, carrying letters addressed to members of the U.S. Congress. He then flew the gyrocopter into Washington, D.C. from Gettysburg, Pa., passing through three no-fly zones. This federally restricted airspace includes, among other places, the National Mall, the White House, and the U.S. Capitol area.
Hughes flew over the National Mall and landed his gyrocopter in the early afternoon on the Front Lawn of the U.S. Capitol. He was quickly arrested, and the gyrocopter was seized as evidence. No weapons were found on Hughes or his aircraft.
A federal grand jury indicted Hughes on May 20, 2015, on a total of six charges. In return for pleading guilty to the lead count of the indictment, the U.S. Attorney’s Office has agreed to dismiss the remaining charges.
In announcing the plea, U.S. Attorney Phillips, Chief Dine, and Inspector General Williams commended the work of those who investigated the case from the U.S. Capitol Police and the Office of the Inspector General for the U.S. Postal Service. They also expressed appreciation for the assistance provided by the United States Park Police and the Federal Aviation Administration. Finally, they praised the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Devron Elliott and Michelle Holland; Legal Assistants Bianca Evans and Donice Adams, and Assistant U.S. Attorneys Tejpal S. Chawla and Michael J. Friedman, who investigated and prosecuted the case.
Final Defendant Pleads Guilty in United Auburn Indian Community Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Darrell Patrick Hinz, 48, of Cameron Park, pleaded guilty today to conspiring to commit mail and wire fraud, conspiring to launder monetary instruments, and filing a false tax return, United States Attorney Benjamin B. Wagner announced.
In August 2012, Hinz, Gregory Scott Baker, 48, of Newcastle, and Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, were charged with conspiring to commit mail and wire fraud and various money laundering charges as part of a scheme to defraud the United Auburn Indian Community (UAIC) of more than $17 million. In April 2013, a superseding indictment additionally charged Volen and Hinz with filing false tax returns in 2006 and 2007, and charged Baker with filing false tax returns from 2006 through 2009 in connection with the fraud.
According to court documents, between October 2006 and December 2007, Baker, Volen and Hinz executed a scheme to defraud the UAIC. In October 2006, the UAIC hired Volen, a developer, to finish construction on four tribal buildings — a school, a community center, and administrative offices – on UAIC-owned property in Auburn. Volen submitted inflated invoices to the UAIC knowing that Baker and Hinz, both UAIC employees, would approve them based on a kickback agreement the three men had reached earlier. Volen supported his invoices with inflated cost proposals from his general contractor’s company, Sequoia Pacific Builders (SPB), and, at times, inflated invoices from various subcontractors. At Volen’s direction, over 160 SPB cost proposals were fraudulently inflated. Volen’s work on the Indian Hills Office Project began in late 2006 and ended in early 2008. The inflated invoices nearly doubled the cost of the project.
Baker was the UAIC tribal administrator. His duties included overseeing the Indian Hills Office Project. Hinz was a contract employee hired to manage the construction project. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for work done on the project. During the scheme to defraud the tribe, both Baker and Hinz engaged in conduct to insure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme. According to court documents, Baker, Volen and Hinz ultimately stole over $17 million from the UAIC through their inflated invoice scheme.
According to court documents, in order to disguise the proceeds of the fraud, Hinz sent a number of fraudulent invoices to Volen for consulting work he claimed he did for Volen. In response, Volen sent Hinz 29 checks, totaling approximately $7.5 million over the course of 10 months. In an effort to further conceal the movement of the fraud proceeds, Volen and Hinz distributed the proceeds between three different companies owned by Hinz.
According to court documents, Hinz then paid Baker indirectly for his assistance in the scheme, using money he received from Volen. Hinz paid for a $12,500 weekend trip he and Baker took in Hawaii and certain obligations owed by Baker. Hinz also purchased a number of things for Baker, including various assets, personal property — a $70,000 BMW and a mobile home — several investment properties and a vacation condominium in South Lake Tahoe, and improvements to property, such as a $54,000 pool at his primary residence. All of these transactions were conducted for the purpose of concealing and disguising the proceeds from the UAIC fraud. During the course of the scheme, Baker received over $1.4 million.
According to court documents, Hinz filed tax returns containing a Schedule C in which he failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of over $830,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent and Kevin C. Khasigian are prosecuting the case.
Hinz is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on February 18, 2016. Baker pleaded guilty to similar charges in this case on November 5, 2015, and is scheduled to be sentenced on March 17, 2016. Co-defendant Volen pleaded guilty to similar charges in this case on June 12, 2014, and is scheduled to be sentenced on April 28, 2016. Chris W. Eatough, the owner of Sequoia Pacific Builders, pleaded guilty to a felony related to this case on June 20, 2013, and is scheduled to be sentenced on March 17, 2016 (case number 2:13-cr-214 TLN). Hinz, Baker and Volen have agreed to pay at least $17 million in restitution to the UAIC.
The defendants face a maximum sentence of 20 years in prison, a $250,000 fine, or twice the value of the gross gain or loss, and a three-year term of supervised release for conspiring to commit mail and wire fraud. The maximum statutory penalty for conspiring to launder monetary instruments is 20 years in prison, a $500,000 fine or twice the value of the laundered money, and a three-year term of supervised release. The maximum statutory penalty for the tax violation is three years in prison, a $100,000 fine, or a fine of twice the value of the gross gain or loss, and a one-year term of supervised release. The actual sentences, however, will 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.
Federal Jury Finds Hopkinton Woman Guilty of Conspiracy to Her Husband and Other Drug Charges Manufacture Methamphetamine withRead the Press Release
A woman who was conspiring to manufacture methamphetamine with her husband for approximately five years was convicted by a jury after a two-and-a-half day trial in federal court in Cedar Rapids.
Lisa Ann Davis, 48, from Hopkinton, Iowa, was convicted of all three counts charged against her in an Indictment filed October 27, 2015. In addition to the conspiracy charge, the jury found Davis guilty of attempting to manufacture methamphetamine and aiding and abetting the manufacture of methamphetamine, as well as possession of pseudoephedrine with intent to manufacture and for use in the manufacture of methamphetamine. The verdict was returned yesterday afternoon following about 90 minutes of jury deliberations.
Davis’s husband, Jody Davis, 46, pled guilty the day before trial to a single count of attempting to manufacture and aiding and abetting the manufacture of methamphetamine on or about June 20, 2015.
The evidence at trial showed that Davis conspired with her husband and others to manufacture methamphetamine. She purchased approximately three boxes of pseudoephedrine per month from August 2010 to June 2015 to manufacture methamphetamine. Davis also purchased known methamphetamine supplies from various retail establishments throughout Eastern Iowa. On June 20, 2015, the Delaware County Sherriff’s Office executed a search warrant at Davis’s Hopkinton home. Officers found Davis in her kitchen surrounded by methamphetamine manufacturing materials. A pie dish in a microwave, and a snort tube in a kitchen cabinet, also tested positive for methamphetamine.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Davis was taken into custody by the United States Marshal after the verdict and will remain in custody pending a detention hearing on Monday afternoon. Davis faces up to 20 years of imprisonment on each count, possible maximum sentence of up to 60 years’ imprisonment, a $2,250,000 fine, $300 in special assessments, and a lifetime of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Tim Vavricek, Erin Eldridge, and C.J. Williams, and was investigated by the Delaware County Sheriff’s Office, the Iowa Office of Drug Control Policy, and the Iowa Division of Criminal Investigation, Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-2028.
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Federal Indictment Charges Eight with Participating in Major Marijuana Trafficking and Money Laundering RingRead the Press Release
ALBUQUERQUE – A federal grand jury has indicted eight individuals on marijuana trafficking and money laundering charges based on an investigation by the FBI and IRS Criminal Investigation into a New Mexico-based organization that allegedly distributed high-grade marijuana throughout New Mexico and across the country over a period of at least eight years. Five of the eight defendants were arrested yesterday during a multi-agency law enforcement operation that included arrests in New Mexico and California and the execution of numerous search and seizure warrants in New Mexico.
In announcing the indictment and the results of yesterday’s law enforcement operation, U.S. Attorney Damon P. Martinez said, “This indictment should serve as a reminder that the illegal distribution and sale of marijuana is a very serious crime. The Justice Department continues to enforce the marijuana trafficking laws especially when illegal marijuana trafficking provides a significant source of revenue for drug trafficking organizations as alleged in this indictment.”
“Yesterday, a task force of federal, state and local law enforcement agencies, working closely with the U.S. Attorney’s Office, dismantled a major drug-trafficking and money-laundering organization whose tentacles reached across New Mexico and beyond,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “The FBI is proud to have helped take a significant quantity of drugs off our streets and seize the ill-gotten proceeds of this criminal enterprise. I want to thank the FBI special agents and professional staff for their hard work, as well as the U.S. Attorney’s Office, IRS Criminal Investigation, New Mexico State Police, Pecos Valley Narcotics Task Force, Albuquerque Police Department and Fresno County (Calif.) Sheriff's Office.”
“Yesterday’s operation reflects the collaborative efforts of local, state, and federal agencies. IRS Special Agents will continue to lend their expertise in detecting the complex financial transactions used by transnational organized criminal groups to launder their ill-gotten gains" said Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS-Criminal Investigation.
The 26-count indictment, which was unsealed earlier today, is the result of a two-year investigation into a drug trafficking organization allegedly led by Enrique Cavazos, 29, of Tijeras, N.M., that allegedly cultivated and purchased high-grade marijuana in California and distributed the marijuana throughout the country and laundered its drug proceeds through a number of businesses and bank accounts. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The indictment alleges that Enrique Cavazos, his wife Lindsey Cavazos, and six co-conspirators participated in a marijuana trafficking conspiracy that existed from at least Jan. 2008 through Nov. 2015, and operated in the District of New Mexico and elsewhere. According to the indictment, Enrique Cavazos operated his marijuana trafficking business by directing co-conspirators to purchase large quantities of marijuana in California and distribute the marijuana in New Mexico and other destinations across the country. It also alleges that Cavazos and a co-conspirator purchased property in Leggett, Calif., in 2011 for the purpose of growing marijuana for distribution by Cavazos’ organization.
According to the indictment, Lindsey Cavazos was responsible for keeping the books on businesses she and her husband allegedly established with proceeds from their marijuana trafficking activities and for the purpose of laundering their drug proceeds. The indictment charges the couple with engaging in a money laundering conspiracy and using bank accounts in the names of several of their businesses, including a restaurant and a car dealership, to launder their drug proceeds.
The indictment includes forfeiture provisions that seek to forfeit to the United States any and all property derived, either directly or indirectly, from proceeds obtained from the criminal activity charged in the indictment including:
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The Tijeras, N.M., residence of Enrique and Lindsey Cavazos;
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Two parcels of real property located on Grand Avenue in Las Vegas, N.M.;
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Two parcels of real property located on 12th Street in Las Vegas, N.M.;
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A parcel of real property located on Grant Street in Las Vegas, N.M;
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A parcel of real estate located at 8th Street and Sperry Street in Las Vegas, N.M.;
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A business suite located on Central Avenue, NW, in Albuquerque, N.M.;
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The funds in eight bank accounts in the names of companies owned and controlled by Enrique and Lindsey Cavazos and one bank account in the name of a company owned and controlled by a co-conspirator;
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A diamond ring owned by Lindsey Cavazos;
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$319,300.00 in cash; and
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The fixtures and equipment located at Café Bien, a restaurant on Central Avenue, SW, in Albuquerque, N.M., that is owned and operated by Enrique and Lindsey Cavazos.
During yesterday’s enforcement operation, officers executed search warrants at residences in Albuquerque, Carlsbad and Tijeras, two offices in Albuquerque, a restaurant in downtown Albuquerque, two offices in Albuquerque, a car dealership in northeast Albuquerque, and a storage unit in Las Vegas, N.M. They also served seizure warrants on eight bank accounts and a restaurant in Albuquerque, N.M., and served a restraining order on one bank account. Items seized during yesterday’s law enforcement operation included: more than 100 pounds of marijuana; approximately $400,000.00 in cash; at least ten firearms, including one that was reported stolen; 22 vehicles, including 20 seized from a car dealership in Albuquerque; and a motorcycle and a fifth-wheel trailer. In addition to yesterday’s seizures, law enforcement officers seized approximately 150 pounds of marijuana and more than $437,000.00 in cash during the course of the investigation.
The investigation leading to the indictment was conducted by the Albuquerque offices of the FBI and IRS Criminal Investigation. The Albuquerque Police Department, HIDTA Pecos Valley Drug Task Force, New Mexico State Police and Fresno County (Calif.) Sheriff’s Office assisted the FBI and IRS with today’s law enforcement operation. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case and Assistant U.S. Attorney Stephen R. Kotz is handling the forfeiture matters.
Indictment in United States v. Enrique S. Cavazos, et al., 15-CR-4087
Defendants Charged in Indictment
Enrique Cavazos, 29, is a resident of Tijeras, N.M., who owns and operates several businesses including Café Bien, a restaurant in downtown Albuquerque and Love Auto, a car dealership on Lomas Blvd., NE, in Albuquerque. Cavazos was arrested yesterday in Tijeras.
Lindsey Cavazos, 30, is a resident of Tijeras, N.M., who is married to Enrique Cavazos. Together with her husband, she owns and operates several businesses, including Café Bien and Love Auto. Lindsey A. Cavazos was arrested yesterday in Tijeras.
Joaquin Alaniz, 38, is a pharmacist in Carlsbad, N.M. He was arrested yesterday in Carlsbad.
Daniel Nieto, 28, of Carlsbad, N.M., has yet to be arrested and is considered a fugitive.
Antonio Ruelas, 31, of Algodones, N.M., was arrested yesterday in Rio Rancho. N.M.
Felix Cavazos, 47, of Albuquerque, N.M., is the father of Enrique S. Cavazos. He has yet to be arrested and is considered a fugitive.
Eliberto Navia, 34, of Madera, Calif., was arrested this morning in Madera, and will be transferred to New Mexico to face the charges against him.
Robert Moreno, 35, of Ukiah, Calif., has yet to be arrested and is considered a fugitive.
Summary of the Charges
Count 1 of the Indictment charges all eight defendants with conspiracy to distribute marijuana in the District of New Mexico and elsewhere from at least Jan. 2008 through Nov. 2015. For Enrique Cavazos, Lindsey Cavazos, Alaniz and Nieto, the maximum statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life. For Ruelas, Felix Cavazos, Navia and Moreno, the maximum statutory penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years. For eight of the defendants, the maximum statutory penalty for a conviction on this count is not more than 20 years of imprisonment.
Count 2 charges Alaniz with attempting to possess marijuana with intent to distribute in Bernalillo County, N.M., on April 27, 2015. The maximum statutory penalty for a conviction on this count is imprisonment for five years.
Counts 3 through 7 charge Enrique Cavazos with distributing marijuana on five occasions: July 11, 2014, July 24, 2014, Aug. 29, 2014, Nov. 24, 2014 and Jan. 30, 2015. Four distributions allegedly occurred in Bernalillo County, N.M. Ruelas is also charged with the Nov. 24, 2015 distribution which allegedly occurred in Santa Fe County, N.M. The maximum statutory penalty for a conviction on each of these counts is imprisonment for five years.
Count 8 charges Nieto with possessing hashish oil with intent to distribute in Eddy County, N.M., on May 20, 2015. The maximum statutory penalty for a conviction on this count is imprisonment for five years.
Count 9 charges Nieto with using and carrying a firearm in furtherance of a drug trafficking crime in Eddy County, N.M., on May 20, 2015. A conviction on this count is a mandatory minimum of five years of imprisonment which must be served consecutive to any sentence imposed on other charges.
Count 10 charges Enrique Cavazos and Felix Cavazos with maintaining a place, identified as a residence in southeast Albuquerque, N.M., from Jan. 2015 through Nov. 2015 for the purpose of distributing marijuana. The maximum statutory penalty for a conviction on this count is imprisonment for 20 years.
Counts 11 through 13 charge Enrique Cavazos with using communications facilities (telephones) on three occasions in Oct. 2015 to further the commission of drug trafficking crimes. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not more than four years.
Count 14 charges Enrique Cavazos and Lindsey Cavazos with engaging in a money laundering conspiracy from Nov. 2009 through Nov. 2015. The maximum statutory penalty for a conviction on this count is imprisonment for 20 years.
Counts 15 and 22 charge Lindsey Cavazos with money laundering and Counts 16 through 19, 21 and 24 through 26 charge Enrique Cavazos with money laundering. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Count 20 charges Enrique Cavazos with structuring bank deposits on Dec. 10, 2010, for the purpose of evading currency reporting requirements and Count 23 charges both Enrique Cavazos and Lindsey Cavazos with committing that same offense on March 25, 2013. The maximum statutory penalty for a conviction on each of these counts is imprisonment for five years.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Photographs of the three fugitives – Daniel Nieto, Felix Cavazos and Robert Moreno – are attached to this press release. Anyone with information on the whereabouts of this/these fugitive(s) is asked to contact the Albuquerque FBI (24 hours) at (505) 889-1300. Tips also can be submitted online at https://tips.fbi.gov.
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Father and Daughter Tax Return Preparers Sentenced for FraudRead the Press Release
BIRMINGHAM – A federal judge today sentenced a father and daughter who worked together in a Birmingham tax return preparation business for conspiring to defraud the government of more than $490,000 by falsely claiming education tax credits on clients’ tax forms, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillott.
U.S. District Judge Karon O. Bowdre sentenced DEMETRIUS YOUNG, 52, and DEONDRA YOUNG, 30, both of Birmingham, for the tax fraud conspiracy and ordered them to pay $490,328 in restitution to the IRS. Judge Bowdre sentenced Demetrius Young to two years in prison and his daughter to three years’ probation, to include six months in home detention.
“These defendants committed a serious crime by taking advantage of tax laws and filing hundreds of false tax returns,” Vance said. “It is especially troubling when such fraud is committed by professionals who were trusted by their clients to submit accurate returns to the IRS. The U.S. Attorney’s Office and the IRS continually investigate tax fraud and we will hold perpetrators accountable.”
“Individuals who participate in refund schemes are stealing directly from the United States Treasury,” Hyman-Pillot said. “Internal Revenue Service Criminal Investigation has a zero-tolerance policy for refund fraud. Today’s sentence should serve as a warning to those who are considering similar criminal activities. Let it be known that we will investigate and prosecute anyone who commits refund fraud and steals from the government.”
Demetrius Young was a tax return preparer and owner of Tax of America in Birmingham. His daughter worked as a tax preparer for Tax of America and she and her father planned that she would eventually own and run the business, according to the Youngs’ plea agreements with the government.
According to the plea agreements and other court documents, Demetrius and Deondra Young both prepared fraudulent tax returns for clients and worked in managerial positions overseeing the preparation of fraudulent tax returns by other preparers at Tax of America during the 2010 and 2011 tax years.
The American Opportunity and Lifetime Learning Credits, or “education credit,” provides a tax credit for qualified tuition and related expenses paid during a tax year. The Youngs prepared fraudulent returns by adding false education credits to clients’ tax returns, without the consent or knowledge of the clients, according to court documents. They also approved returns prepared by others at Tax of America that included false education credits.
IRS-CI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
Doral Bank Executive Assistant Indicted and Arrested for Several Perjury and Obstruction of Justice ChargesRead the Press Release
SAN JUAN, Puerto Rico– Nancy Vélez-Arroyo, Senior Executive Assistant to the Chief Executive Officer and Board of Directors of Doral Bank was indicted on November 18, 2015, for obstruction of justice and knowingly making false statements while under oath and testifying before a federal grand jury, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
The indictment includes three perjury charges and two obstruction of justice charges. During her testimony before the grand jury, Nancy Vélez-Arroyo disavowed her involvement in a vendor’s contract with Doral Bank, its terms, payment schedule, and the participants involved in a scheme to defraud. However, e-mails, telephone records, and other evidence showed that Vélez-Arroyo had, not only knowledge, but played an active role and participated in those dealings. Rather than provide complete and truthful testimony before the grand jury, Vélez-Arroyo endeavored to corruptly influence, obstruct, and impede the federal investigation.
“It is alleged that the defendant concealed information regarding an investigation about bank fraud, embezzlement, wire fraud, and money laundering, by making false statements under oath during grand jury proceedings,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “Lying to the grand jury, concealing information, and obstructing a federal investigation undermine the public’s trust in the criminal justice system and will not be tolerated. The Department will aggressively investigate and prosecute those who seek to cover up or obstruct a federal investigation.”
The case is being investigated by the FBI’s San Juan Division and is being prosecuted by Assistant U.S. Attorneys Luke Cass, Héctor Ramírez-Carbó and George A. Massucco.
The charges contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty by a jury of her peers.
Defendant Sentenced to 8 Years in Prison for Three Fraud SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 50, of Keymar, Maryland, today to eight years in prison followed by three years of supervised release in connection with defrauding the United States of over $30 million in obtaining government contracts, stealing over $1.6 million in employee benefits and evading taxes. Judge Motz also entered an order that Shaun Tucker forfeit $30 million and his residence in Keymar; and pay restitution of $1.6 million for the employee benefit fraud, and $492,961 to the IRS for tax evasion.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
“Shaun Tucker’s criminal actions deprived the federal contract employees of Quantell and Intaset of rightfully earned benefits under the Service Contract Act,” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. “This sentencing sends a clear message that this type of criminal activity is reprehensible and will be aggressively prosecuted.”
“Today's sentencing action brings an appropriate conclusion to a twisted web of lies, deceit, and greed,” said Robert Craig, Special Agent in Charge for the DCIS, Mid-Atlantic Field Office. “For individuals to line their pockets and purchase lavish material goods through fraudulent contracts at the expense of disabled veterans and while our soldiers are in harm's way is both incomprehensible and completely unacceptable. DCIS and its law enforcement partners remain committed to bringing these unscrupulous individuals to justice and restoring faith in the government's contracting system.”
According to his plea and court documents, Shaun Tucker and his wife Joanne were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010. Quantell and Intaset provided labor services to federal government agencies. In 2010, the Tuckers sold Intaset, but continued to influence its operation.
Federal Procurement Fraud
From 2007 to 2013, the Tuckers and their co-conspirators made false representations to the government regarding the eligibility of Quantell and Intaset for small business contracts, Service Disabled Veteran Owned Small Business contracts and other set-aside contracts, including: the 2007 Camp Lejeune contract; 2007 Battle Creek, Michigan contract; 2008 Andrews Air Force Base contract; 2008 Beale Air Force Base contract; 2011 Langley Air Force Base contract; and 2011 Camp Lejuene contract. The Tuckers and their co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies. When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses. The Tuckers’ actions prevented other companies, which the government meant to support with set-aside contracts, from providing contracting services to the federal government.
The Tuckers used the money from the government contracts for their own personal benefit, including: building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to their residence in Keymar; a 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.
The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell. They created a fake corporate entity named Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It. They falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It. Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract. The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.
The Tuckers admit that as a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on false representations was at least $30 million.
Employee Benefit Fraud
The service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to the service contract employees of Quantell and Intaset hired to do the work for the federal government.
Quantell and Intaset had previously used FCE Benefits Administrators, Inc. (FCE) as a third party administrator, assisting Quantell and Intaset in fulfilling their obligations under the SCA. FCE used the SCA funds to create ERISA Plans for Quantell and Intaset. In July 2009, Shaun Tucker sent letters to FCE and the trustees of employee retirement plans so that he could obtain approximately $285,000 from the existing retirement plans into which the SCA money had previously been paid. The letters falsely claimed that Quantell and Intaset were transferring money to another health and welfare plan, when in fact the Tuckers knew that the money was instead being transferred into a bank account Joanne Tucker had asked a relative to open. Joanne Tucker caused such money to be spent on the Tuckers’ vacation home in Western Maryland and other personal benefits.
In a related fraud, the Tuckers lied to employees of Quantell and Intaset, to FCE and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators could divert more than $1 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. The Tuckers falsely told employees that they would be receiving health and welfare benefits, when they knew in fact that the money was being diverted to buy luxury vehicles, and make improvements on the Tuckers’ residences.
As a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds was fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.
Tax Fraud
Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.
Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, of Keymar, Maryland, previously pleaded guilty to her participation in the fraud schemes. Joanne Tucker and the government have agreed that if the Court accepts her plea agreement, she will be sentenced to between six and 18 months in prison. Joanne Tucker further agrees to pay forfeiture of at least $20 million, and forfeit her residence in Keymar. Joanne Tucker also agreed to pay restitution of at least $1.6 million in connection with the employee benefit fraud, and $492,961 to the IRS for tax evasion. Judge Motz has scheduled sentencing for Joanne Tucker for December 3, 2015, at 9:30 a.m.
In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes. Judge Motz has scheduled sentencing for February 19, 2016, at 11:00 a.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This and other cases brought by members of the Task Force demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, DCIS, SBA Office of Inspector General, and Air Force Office of Special Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who prosecuted the case.
David M. Felske Sentenced to 100 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that David M. Felske, age 25, of Michigan City, Indiana was sentenced in federal court, by Judge Jon E. DeGuilio, after his guilty plea of being a felon in possession of a firearm.
David Felske was sentenced to 100 months imprisonment and 3 years supervised release.
According to documents in the case, in July 2015, Felske stole several firearms from a residence in LaPorte County, Indiana which included a .50 caliber revolver, (2) .357 caliber revolvers, a .38 caliber revolver, and a .45/410 caliber revolver. Felske then sold these firearms to an undercover officer on July 23, 2015 knowing that these firearms had been stolen. Felske has a prior felony conviction burglary, a Class B felony, in Indiana.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the LaPorte County Sheriff’s Department and the Michigan City Police Department. The case was handled by the Assistant United States Attorney Donald J. Schmid.
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Daniel Sands Arrested and Charged with Retaliation Against A Federal WitnessRead the Press Release
KNOXVILLE, Tenn.- On Nov. 20, 2015, Daniel Sands was arrested and charged in a criminal complaint with engaging in conduct with the intent to retaliate against a witness who testified against his father in an official court proceeding in U.S. District Court.
An initial appearance was held this afternoon before the Honorable H. Bruce Guyton, U.S. Magistrate Judge, at which time the government asked that Sands be detained pending trial on the charge against him. Sands agreed to sign a detention hearing waiver and will remain in custody until a preliminary hearing scheduled for 2:30 p.m., on Dec. 2, 2015, in U.S. District Court.
According to the complaint and accompanying affidavit on file with the U.S District Court, on Nov. 17, 2015, the government called David Walker as a witness to testify in the trial of U.S. v. Leonard Sands, in U.S District Court in Knoxville. It is alleged that on that same evening, Daniel Sands, son of the defendant Leonard Sands, sent a threatening instant message to the witness via Facebook messenger. The affidavit further alleges that on Nov. 19, 2015, Daniel Sands posted other indirect threats of violence to “snitches” on his Facebook page. Details of the four Facebook posts are included in the affidavit and attachments thereto.
The investigation in this case is being led by the Drug Enforcement Administration and Tennessee Bureau of Investigation. Assistant U.S. Attorneys Cynthia Davidson and Jennifer Kolman represent the United States.
Members of the public are reminded that a complaint constitutes only a charge and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Dallas Woman Sentenced to More Than Ten Years in Federal Prison for Payroll Fraud Against Local Payroll Company and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – SANDRA SALDANA, of Dallas, Texas, was sentenced yesterday to serve 124 months in federal prison for defrauding several payroll companies, including a metro business, and for filing false federal income tax returns, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Saldana was also ordered to pay $526,667.19 in restitution to 11 payroll companies and the IRS.
On July 27, 2015, Saldana was charged in a one-count Information with wire fraud relating a scheme to defraud a metro payroll company. The information alleged that Saldana previously worked at accounting jobs in Dallas and stole bank account details and former co-workers’ personal information while at those businesses. The Information further alleged that, from around January 2013 through February 2015, Saldana contacted payroll companies around the country, falsely claiming that she was the office manager for one of her former employers and wanting to set up payroll services to pay her employees. At yesterday’s plea and sentencing hearing, Saldana admitted that she e-mailed an Oklahoma City payroll company using a fictitious name and e-mail address as an office manager for a Dallas company. Saldana falsely claimed that she wanted to set up payroll services for the Dallas business (where she no longer worked). Saldana admitted that she provided the Oklahoma City payroll company with fraudulent payroll information, including a list of bogus employees, and a victim’s bank account number from which payroll funds would be transferred. Based on the misrepresentations, the payroll company transferred money to bank accounts under Saldana’s control. Saldana later used these proceeds for her personal benefit.
On September 9, 2015, Saldana was also charged in a one-count Information with aggravated identity theft, for using a victim’s name, social security number, and date of birth without the victim’s permission while filing a false federal income tax return in the victim’s name. The information further alleged that Saldana directed the Internal Revenue Service to deposit the falsely claimed refund of $3,344 to an account that Saldana had set up in the victim’s name. At yesterday’s hearing, Saldana admitted that in February 2013 she filed the false federal income tax return without the victim’s permission and used the fraudulent IRS refund for her personal benefit. According to evidence at the hearing, Saldana had filed or attempted to file 136 false federal income tax returns for tax years 2012, 2013, and 2014.
Yesterday, United States District David L. Russell sentenced Saldana to 100 months in federal prison for the payroll fraud, and sentenced her to 24 additional months in prison for the tax fraud. Judge Russell ordered Saldana to pay $484,109.19 in restitution to 11 different payroll companies around the country for the payroll fraud. Saldana was also ordered to pay $42,558 in restitution to the IRS for refunds from false federal income tax returns. Following her imprisonment, Saldana must serve three years of supervised release. Saldana has been in federal custody since she was arrested in Dallas and charged with the payroll fraud in February of this year.
This case is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to court filings for further information.
Dallas Man Sentenced to 176 Months in Federal Prison for Armed Bank RobberyRead the Press Release
DALLAS — A Dallas man, Kenneth Dale Bruce, 40, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 176 months in federal prison for committing an armed bank robbery in the Dallas-Fort Worth metroplex in October 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
On October 23, 2014, Bruce robbed the Bank of America branch located at 3324 Gus Thomasson Road in Mesquite, Texas. The next day, Bruce robbed a branch of Comerica Bank, located at 11155 Garland Road in Dallas, and during that robbery, he brandished a firearm.
According to documents filed in the case, after committing the armed bank robbery in Mesquite, Bruce drove off in a tan pickup truck. Officers with the Dallas Police Department located the pickup truck in a parking lot approximately three blocks from the bank, and they saw Bruce drive past them in a dark-colored Ford Explorer. Officers attempted to perform a felony stop, but Bruce sped up and attempted to elude officers until he wrecked the vehicle. The bank’s money and the firearm were recovered at the accident scene.
The Federal Bureau of Investigation and the Dallas and Garland Police Departments investigated. Assistant U.S. Attorney John Kull prosecuted.
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Dallas Man Sentenced for Using Social Media to Obtain Sexually Explicit PhotosRead the Press Release
CORPUS CHRISTI, Texas – A 42-year-old man who resided in Dallas has been ordered to federal prison following his conviction of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. Daniel Fredrick Heidemann admitted to posing as a young male in order to elicit sexually explicit photos from a juvenile female.
Today, U.S. District Judge Nelva Gonzales Ramos handed Heidemann a sentence of 200 months. Additional information was also presented today, including that there were victims in Ohio and Oregon. Heidemann will serve 20 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of the plea, the court heard that in August 2014, authorities learned that a juvenile female had been communicating via cellular telephone text messages and several social media websites with an individual she believed was a juvenile male from Dallas. Heidemann was identified as the perpetrator and admitted to posing as a juvenile male and enticing the victim into sending him sexually explicit photographs of herself.
Authorities executed a search warrant at Heidemann’s residence in Dallas and seized several electronic media storage devices. Forensic examination led to the discovery of several photographs of the juvenile female that were sexually explicit in nature.
Heidemann was arrested on the federal charges in March 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by Homeland Security Investigations with the assistance of the Corpus Christi Police Department-Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Colorado Springs Man Sentenced to 10 Years in Federal Prison for Being a Felon in Possession of AmmunitionRead the Press Release
DENVER – Yesterday Phinehas Lee McNeal, of Colorado Springs, Colorado, was sentenced by U.S. District Court Judge Raymond P. Moore to serve 10 years in federal prison for being a felon in possession of ammunition, U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division Special Agent in Charge Ken Croke announced. McNeal, who appeared at the hearing in custody, was remanded at its conclusion. On July 22, 2015, McNeal was found guilty following a jury trial of being a felon in possession of ammunition. He was acquitted of another charge. The defendant’s mother, Anne Marie McNeal, of Colorado Springs, was also convicted following a separate jury trial, held on October 22, 2015, of making a straw purchase of a firearm, namely buying a firearm for her son, Phinehas.
According to evidence presented during trial, and as outlined in a Sentencing Statement filed with the court, on November 29, 2014, Colorado Springs Police responded to a shoplifting incident at a Sportsman’s Warehouse. They found that Phinehas McNeal had been detained by the store for shoplifting arrowheads. While being detained, Phinehas McNeal was found to be in possession of two boxes of ammunition. He had a receipt showing he purchased the ammunition from the Sportsman’s Warehouse store. Evidence found during the subsequent investigation, including images from the store’s video surveillance system, clearly show the defendant purchasing the ammunition that he was found in possession of when detained.
The defendant’s mother was also taken into custody for obstructing officers. They both were taken to Colorado Springs Police Department for questioning. During the questioning, Ann Marie McNeal admitted to purchasing at least one of the firearms for Phinehas McNeal. During that period, law enforcement executed a search warrant at the mother, Anne Marie McNeal’s residence. Law enforcement found additional ammunition, and a number of firearms in Phinehas McNeal’s bedroom. It was determined during the investigation that Phinehas McNeal also purchased ammunition at a local Walmart. The defendant has at least four felony convictions, including two for felony menacing, one for possession of a firearm by a previous juvenile offender, and theft, all in El Paso County Court.
During a separate trial of the defendant’s mother, Anne Marie, before U.S. District Court Judge Moore, a jury found she had illegally purchased a firearm for her son. That conviction carries a maximum penalty of not more than 10 years in federal prison, and up to a $250,000 fine. She is scheduled to be sentenced on January 14, 2016.
“This defendant was a convicted felon many times over and was prohibited from possessing ammunition by law many times over as well,” said U.S. Attorney John Walsh. “This sentence should send a message to those convicted of felony violations of the law that even the possession of ammunition is a federal felony and can result in severe punishment.”
“McNeal had a long, violent criminal career that he was determined to continue,” said ATF Special Agent in Charge Ken Croke. “Illegally providing him a firearm was both dangerous and irresponsible on his mother’s part.”
This case was investigated by the Colorado Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Both defendants were prosecuted by Assistant U.S. Attorneys Kurt Bohn and Jason St. Julien.
Cert Petition Filed in the Case of Texas vs. United StatesRead the Press Release
Attached please find a PDF version of the petition for a writ of certiorari in State of Texas, et al vs. United States of America, et al filed Friday, November 20, 2015.
Brownwood, Texas, Man Sentenced to 121 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Michael Thomas Franks, 44, of Brownwood, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 121 months in federal prison, following his guilty plea in August 2015 to one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas. Franks was remanded into custody
According to plea documents filed in the case, Franks used computers at his residence to search the Internet for images and videos of child pornography. In the course of his searches, Franks located, downloaded, and viewed numerous images and videos of child pornography. He also transferred some of the child pornography from his computer to a computer disk that bore the handwritten label, “Pictures Videos,” which contained one or more images of prepubescent child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Customs and Border Protection’s (US CBP) Office of Air and Marine, and the Brown County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Boise Man Sentenced to Prison for Firearms OffenseRead the Press Release
BOISE – Richard Pena Jr., 39 of Boise, Idaho, was sentenced yesterday to 63 months in prison for unlawful possession of a handgun, U.S. Attorney Wendy J. Olson announced. Visiting Judge Dee V. Benson also ordered Pena to serve three years of supervised release following his release from prison. Pena pleaded guilty on August 6, 2015.
According to the plea agreement, on December 4, 2014, a police officer conducted a traffic stop of a vehicle in Caldwell, Idaho. Police officers discovered that Pena, who was a passenger in that vehicle, had an active warrant for his arrest. Police officers arrested Pena and searched his person and the vehicle. During the search, police officers found a yellow crystal substance wrapped in tinfoil and a syringe in Pena’s pocket, and a backpack behind the passenger seat containing Pena’s driver’s license and a loaded 9 millimeter handgun. Pena is prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated battery. Pena agreed to forfeit the firearm involved in the offense.
The case was investigated by the Caldwell Police Department and the Treasure Valley Metro Violent Crimes Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Canyon County Prosecutor’s Office, the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Birmingham Business Leaders, U.S. Attorney Discuss Prisoner Reentry and Ban-the-BoxRead the Press Release
Birmingham Business Alliance discusses importance of employment opportunity in reducing crime and recidivism.
BIRMINGHAM – U.S. Attorney Joyce White Vance met today with a group of Birmingham Business Alliance investors to discuss the importance of employment on the successful return to society of people leaving prison. Ex-offenders who find employment are half as likely to reoffend as those who struggle to find employment.
Many employers require job applicants to disclose conviction and arrest history on the initial job application. Often, the applications of those who disclose an offense history are immediately removed from further consideration for employment. The campaign known as, “Ban the Box,” encourages employers to delay consideration of offense history within the hiring process. More than 100 cities and counties and 19 states have joined companies like Walmart, Target, Home Depot, and Koch Industries to ban the box. Earlier this month, President Obama called upon the Office of Personnel Management to ban the box within federal employment applications.
“People who are returning to our communities after paying their debt to society in prison must have an opportunity to become law-abiding, self-supporting, tax-paying citizens,” Vance said. "No one’s fate should be decided by the worst moment of their life. Returning citizens must have an opportunity for redemption,” she said. “Employment is the key to transforming ex-offenders into contributing members of the community”.
Policy-makers and hiring officials from the State of Georgia, Johns Hopkins Medicine, and the Council of State Governments joined local policy-makers and employers to provide information on how best to use conviction history within the hiring process. The State of Georgia and the Washington, D.C.-based Johns Hopkins Medicine have both banned the box within the hiring process. The Council of State Governments provides technical assistance to the State of Alabama with its reforms of prison and community supervision agencies.
“We are pleased to have the opportunity to host this discussion,” said Mark Crosswhite, Alabama Power CEO. “It’s important that members of Alabama’s business community consider issues of employment and qualification. There may not be one right answer for everyone, but it just makes good business sense for us to explore the options and the impacts together.”
Johnny Johns, chairman, president and CEO at Protective Life Corporation said, “We as a society pay a terrible price for the unbroken cycles of crime and recidivism. It just makes good sense to do what we can to help those coming out of prison change their lives, get a second chance and become productive, law-abiding citizens.”
“Workforce is an important economic development issue and finding ways to connect a skilled workforce to companies is critical,” said Brian Hilson, president and CEO of the Birmingham Business Alliance. “This is the beginning of an important discussion and an opportunity for the business community to learn about this issue. We are glad to be a part of this event today.”
Representative Mike Jones, chairman of the Alabama House Judiciary Committee said, “Data clearly states that employment is key in breaking the cycle of criminal recidivism. Not only does employment reduce crime, it builds stronger communities and strengthens families. Rural and urban communities, alike, benefit from a strong labor market where no one is lacking the opportunity to improve their life or support their family”.
State Senator Cam Ward, chairman of Alabama’s Prison Reform Taskforce stated, "The ability to find a job and live an independent, productive life greatly reduces the chances that someone will return to our over-crowded corrections system. I'm glad to see the business community taking such a prominent role in this discussion."
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Bath Man Sentenced to Three Years for Being a Felon in Possession of FirearmsRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that Johnny Ray Johnson, 58, of Wiscasset, Maine was sentenced today by in U.S. District Court by Chief Judge Nancy Torresen to three years in prison and three years of supervised release for being a felon in possession of firearms. He pled guilty on July 14, 2015.
According to court documents, on October 13, 2013, while Johnson was on probation for a 2013 felony domestic assault conviction in Maine state court, his probation officers conducted a home visit and found him in possession of three firearms.
The investigation was conducted by the Maine Probation and Parole Office; the Bath Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bakersfield, California, Police Narcotics Detective Charged with Bribery, Drug Trafficking, Obstruction and Filing False Tax ReturnsRead the Press Release
Damacio Diaz, 43, of McFarland, California, a detective with the Bakersfield, California, Police Department (BPD), was arrested today, charged with abusing his position of trust as a police detective when he conspired with and assisted a narcotics dealer in the operation of the dealer’s drug organization, announced U.S. Attorney Benjamin B. Wagner of the Eastern District of California, Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division, DEA Special Agent in Charge John J. Martin, Acting Special Agent in Charge Thomas McMahon of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Bakersfield Police Chief Greg Williamson. The charges are contained in a 16-count indictment returned by a federal grand jury yesterday.
The indictment charges that Diaz, in exchange for bribes from the dealer, provided the dealer with intelligence on law enforcement practices and activities, disclosed the names and identities of police informants, tipped the dealer off as to police investigations and attempted to provide the dealer protection from search, seizure, arrest and prosecution. The indictment also charges Diaz with bribery, retaining seized narcotics on multiple occasions for his own unlawful gain, disclosing contents of a wiretap investigation and two counts of filing false tax returns.
Diaz has been on paid administrative leave from the BPD since this investigation was initiated. He is scheduled to be arraigned today before U.S. Magistrate Judge Jennifer L. Thurston of the Eastern District of California in Bakersfield at 2:30 p.m.
“When a police officer misuses his badge to commit crimes for personal profit, it is the ultimate betrayal of public trust,” said U.S. Attorney Wagner. “While it is a sad day for the Bakersfield Police Department, the department should be proud of the outstanding work it has done, together with the FBI, DEA, and IRS-CI, effectively investigating this case over the last few months.”
“No one is above the law,” said Special Agent in Charge Miller. “The alleged criminal activity put law enforcement officers at grave risk and significantly undermines public trust in law enforcement. The FBI is committed to working with its enforcement partners to root out officers who have abused their trusted role, and we thank the Bakersfield Police Department, DEA and IRS for their assistance with this extensive investigation.”
“The criminal behavior alleged in this case is reprehensible,” said Special Agent in Charge Martin. “Officers take an oath to protect, serve and uphold the law. Actions like those alleged in the indictment shatter that promise and threaten the safety of fellow officers and the communities we are sworn to protect. DEA is proud to partner with the many law enforcement officers and agencies that won’t stand for criminal conduct within the ranks.”
"Law enforcement officers are held to a higher standard”, said Acting Special Agent in Charge McMahon. “Having knowledge of the laws, there is an even greater expectation to follow those laws. When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of the entire law enforcement community.”
“I am deeply disappointed by the indictment and arrest of Bakersfield Police Detective Damacio Diaz,” said Chief Williamson. “The behavior and criminal activity stated in the indictment is not reflective of the commitment and awesome public service the over 500 employees of the Bakersfield Police Department provide to our community on a consistent basis. Detectives from the department’s investigative and internal administrative divisions have worked side by side with the FBI and the U.S. Attorney’s Office during the entirety of this investigation. I am proud of their work and diligence in first bringing this case forward and seeing it through to completion.”
According to count one of the indictment, from April 18, 2012, to Feb. 20, 2015, Diaz conspired with a narcotics dealer to distribute methamphetamine. Counts two through four charge Diaz with accepting over $5,000 in bribes in each calendar year of 2012, 2013 and 2014 in return for being influenced and rewarded in connection with his official acts as a BPD police detective. Counts five through 13 charge Diaz with possession with intent to distribute methamphetamine, wherein Diaz retained methamphetamine for his own personal gain that came into his care and control in the course of his duties as a BPD narcotics detective. Count 14 charges Diaz with the intentional disclosure of wiretap information in order to obstruct, impede or interfere with a criminal investigation. The indictment also alleges that Diaz filed false tax returns for tax years 2012 and 2013.
This case is the product of an investigation by the FBI, DEA, IRS-CI and the BPD. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott of the Eastern District of California are prosecuting the case.
If convicted of the charges in the indictment, Diaz faces a maximum statutory penalty of life in prison for the conspiracy, 10 years in prison for each count of bribery, 20 years in prison to life for possession of methamphetamine with intent to distribute, five years in prison for each count of intentional disclosure of wiretap information, and three years in prison for each count of making a false income tax return. 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.
Bakersfield Police Narcotics Detective Charged with Bribery, Drug Trafficking, Obstruction, and Filing False Tax ReturnsRead the Press Release
BAKERSFIELD, Calif. — Damacio Diaz, 43, of McFarland, a detective with the Bakersfield Police Department (BPD) was arrested today, charged with abusing his position of trust as a police detective when he conspired with and assisted a narcotics dealer in the operation of the dealer’s drug organization, announced United States Attorney Benjamin B. Wagner, FBI Special Agent in Charge Monica M. Miller, DEA Special Agent in Charge John J. Martin, IRS-CI Acting Special Agent in Charge Thomas McMahon, and Bakersfield Police Chief Greg Williamson. The charges are contained in a 16-count indictment returned by a federal grand jury yesterday.
The indictment charges that Diaz, in exchange for bribes from the dealer, provided the dealer with intelligence on law enforcement practices and activities, disclosed the names and identities of police informants, tipped the dealer off as to police investigations, and attempted to provide the dealer protection from search, seizure, arrest and prosecution. The indictment also charges Diaz with bribery, retaining seized narcotics on multiple occasions for his own unlawful gain, disclosing contents of a wiretap investigation, and two counts of filing false tax returns.
Detective Diaz has been on paid administrative leave from the Bakersfield Police Department since this investigation was initiated. He is scheduled to be arraigned today at 2:30 p.m. in Bakersfield before U.S. Magistrate Judge Jennifer L. Thurston.
U.S. Attorney Wagner stated: “When a police officer misuses his badge to commit crimes for personal profit, it is the ultimate betrayal of public trust. While it is a sad day for the Bakersfield Police Department, the department should be proud of the outstanding work it has done, together with the FBI, DEA, and IRS-CI, effectively investigating this case over the last few months.”
“No one is above the law. The alleged criminal activity put law enforcement officers at grave risk and significantly undermines public trust in law enforcement,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation, Sacramento Field Office. “The FBI is committed to working with its enforcement partners to root out officers who have abused their trusted role, and we thank the Bakersfield Police Department, DEA, and IRS for their assistance with this extensive investigation.”
DEA Special Agent in Charge John J. Martin stated, “The criminal behavior alleged in this case is reprehensible. Officers take an oath to protect, serve and uphold the law. Actions like those alleged in the indictment shatter that promise and threaten the safety of fellow officers and the communities we are sworn to protect. DEA is proud to partner with the many law enforcement officers and agencies that won’t stand for criminal conduct within the ranks.”
"Law enforcement officers are held to a higher standard,” said Acting Special Agent in Charge Thomas McMahon, IRS Criminal Investigation. “Having knowledge of the laws, there is an even greater expectation to follow those laws. When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of the entire law enforcement community.”
“I am deeply disappointed by the indictment and arrest of Bakersfield Police Detective Damacio Diaz,” said Bakersfield police Chief Greg Williamson. “The behavior and criminal activity stated in the indictment is not reflective of the commitment and awesome public service the over 500 employees of the Bakersfield Police Department provide to our community on a consistent basis. Detectives from the department’s investigative and internal administrative divisions have worked side by side with the FBI and the U.S. Attorney’s office during the entirety of this investigation. I am proud of their work and diligence in first bringing this case forward and seeing it through to completion.”
According to count one of the indictment, from April 18, 2012, to February 20, 2015, Diaz conspired with a narcotics dealer to distribute methamphetamine. Counts two through four charge Diaz with accepting over $5,000 in bribes in each calendar year of 2012, 2013 and 2014 in return for being influenced and rewarded in connection with his official acts as a BPD police detective. Counts five through 13 charge Diaz with possession with intent to distribute methamphetamine, wherein, Diaz retained methamphetamine for his own personal gain that came into his care and control in the course of his duties as a BPD narcotics detective. Count 14 charges Diaz with the intentional disclosure of wiretap information in order to obstruct, impede or interfere with a criminal investigation. The indictment also alleges that Diaz filed false tax returns for tax years 2012 and 2013.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant United States Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
If convicted of the charges in the indictment, Diaz faces a maximum statutory penalty of life in prison for the conspiracy, 10 years in prison for each count of bribery, 20 years in prison to life for possession of methamphetamine with intent to distribute, five years in prison for each count of intentional disclosure of wiretap information, and three years in prison for each count of making a false income tax return. 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.
Attorney General Loretta E. Lynch Statement on the Attack in MaliRead the Press Release
Attorney General Loretta E. Lynch released the following statement on today’s attack in Mali:
“The Department of Justice stands with our international partners in condemning the appalling attack in Mali. This was a shameful assault on innocent people by terrorists intent on sowing panic and fear. But I want to make clear to our enemies: fear will not take hold, nor will terror dictate our course, or that of our allies. Instead, a tragedy like today’s reinforces our commitment to the values that separate us from the attackers, and serves to cement the ideals that make us who we are: freedom, opportunity, and justice.
“I understand that the State Department has now confirmed one American death in the attacks and I would like to send my condolences to the family and friends during this difficult time.
“In the days ahead, the Department of Justice and the Obama Administration will continue to coordinate with our allies around the world to bring terrorists to justice and to assist victims of terror in any way possible. We will continue our work to protect the American people. And we will continue to stand with all Americans in upholding the values that our nation represents.”
Attorney General Loretta E. Lynch Announces Indictment of Eight Defendants in United States and Mexico on Sex Trafficking and Related ChargesRead the Press Release
Charged Offenses Include Sex Trafficking, Interstate Prostitution, Alien Smuggling, Money Laundering, Racketeering and Racketeering Conspiracy in Connection with Scheme to Compel Mexican Women and Girls into Prostitution in the United States
A 27-count indictment was unsealed yesterday in the U.S. District Court for the Eastern District of New York charging eight defendants with racketeering and racketeering conspiracy involving predicate acts of sex trafficking by force, fraud and coercion, sex trafficking of minors, interstate prostitution, alien smuggling, money laundering and related offenses.
Over the past two days, five defendants were arrested in Mexico and two in Queens, New York, as part of a coordinated bilateral law enforcement action. A third U.S. defendant is currently in federal custody in West Virginia. The eight defendants are Jovan Rendon-Reyes, aka Jovani, 32, of Mexico; Saul Rendon-Reyes, aka Satanico, 37, of Queens; Guillermina Rendon-Reyes, 44, of Mexico; Francisco Rendon-Reyes, aka Pancho, 27, of Queens; Jose Rendon-Garcia, aka Gusano, 32, of Mexico; Felix Rojas, 45, of Mexico; Odilon Martinez-Rojas, aka Chino or Saul, 44, currently of Brucetown Mills, West Virginia; and Severiano Martinez-Rojas, 50, of Mexico.
The charges were announced by Attorney General Loretta E. Lynch; Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE); Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; and U.S. Attorney Robert L. Capers of the Eastern District of New York.
“This case demonstrates the Justice Department’s steadfast commitment to ending human trafficking,” said Attorney General Lynch. “As set forth in the indictment, these defendants used force, fraud, and coercion to lure young women and girls into their control, smuggle them into the United States, and exploit them for profit – an abhorrent violation of both the law and basic human dignity. In the days ahead, the Department of Justice will continue to act decisively to hold traffickers accountable, protect vulnerable individuals, and assist survivors of this heinous crime. I want to thank the prosecutors and law enforcement officers who worked tirelessly on this case, and our partners in the government of Mexico for their invaluable assistance.”
“Today’s joint operation reflects our commitment to working with Mexico to bring to justice human traffickers who have no regard for human life,” said Director Saldaña. “We are resolute in our efforts to not only arrest the human traffickers behind this vile crime, but also to rescue the victims whose lives have tragically been forever changed.”
“Vindicating the rights of vulnerable individuals is among the highest priorities of the Department of Justice and the Civil Rights Division,” said Principal Deputy Assistant Attorney General Gupta. “The defendants are charged with operating a scheme across international borders to exploit young women and girls by prostituting them for the benefit of the defendants. We will work tirelessly to pursue justice for those held in modern-day slavery.”
“Human trafficking in any form will not be tolerated,” said U.S. Attorney Capers. “We remain steadfast in our commitment to prosecute sex traffickers and those who would enslave women and children for monetary gain. We will not rest until international trafficking organizations are eliminated.”
The indictment alleges that the defendants were members of an international criminal organization, identified in the indictment as the Rendon-Reyes Trafficking Organization, which engaged in sex trafficking and related criminal activity between December 2004 and June 2014 in Queens, Atlanta and Jemison, Alabama, among other locations. The defendants used force, threats of force, fraud and coercion to cause young women and girls from Mexico and Latin America to engage in prostitution in the United States.
Since 2009, the Department of Justice and ICE’s Homeland Security Investigations (HSI) have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law. The initiative is aimed at dismantling human trafficking networks operating across the U.S.-Mexico border, bringing human traffickers to justice, reuniting victims with their children and restoring the rights and dignity of human trafficking victims, held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in New York, Georgia, Florida and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers. The charges unsealed yesterday are the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted over 65 defendants in sex trafficking cases and provided assistance to over 130 victims, including 36 minors. In addition, through the Eastern District of New York’s anti-trafficking program, 18 children have been reunited with their victim-mothers.
The U.S.-based defendants were arraigned yesterday before U.S. Magistrate Judge James Orenstein of the Eastern District of New York at the federal courthouse in Brooklyn.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
In announcing the indictment, Attorney General Lynch, Director Saldaña, Principal Deputy Assistant Attorney General Gupta and U.S. Attorney Capers commended the HSI’s New York Office, the HSI Mexico Attaché Office, the FBI’s Atlanta Division, the U.S. Attorney’s Office of the Northern District of Georgia, the Department of Justice’s Office of International Affairs, the State Department and the New York City Police Department for their assistance, and praised the government of Mexico for its role in this bilateral enforcement action. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families in connection with this case and others.
The case is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Trial Attorney Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Rendon-Reyes et al Indictment
Allentown Company Sentenced for Violating Procedures Related to Chemical ShipmentsRead the Press Release
Taminco US, Inc. (“Taminco”), today, pleaded guilty to and was sentenced for six counts related to shipping monomethylamine (MMA) to customers in Mexico for whom required identification had not been obtained and failing to report the disappearance of shipments of MMA. Taminco is a chemical company headquartered in Allentown, PA. United States District Court Judge Edward G. Smith ordered the company to pay a criminal penalty of $860,374, which comprises a criminal fine of $650,000 and forfeiture of $210,374. The company also reached a civil settlement with the United States concerning the same conduct and agreed to pay a civil fine of $475,000.
Taminco manufactured, distributed, sold and exported MMA. MMA is classified as a “List I” chemical and regulated by the Drug Enforcement Administration (DEA) because it is a necessary chemical for one method of manufacturing methamphetamine, a controlled substance. Due to its List I chemical classification, a manufacturer is required to confirm the identity and verify the legitimacy of any customer to whom it ships the product. The manufacturer is also required to immediately report to the DEA any unusual or excessive loss or disappearance of the product. Taminco manufactured MMA at its plant in Pace, Florida, and had the MMA packaged in 55 gallon drums before shipping it to the border at Laredo, Texas.
Between February and June of 2010, Taminco shipped six loads of MMA to two different customers in Mexico for whom Taminco had not obtained required identification. Each load was approximately 16,800 kilograms of MMA. Some shipments of MMA disappeared and Taminco failed to promptly report the disappearances to the DEA as required by statute.
DEA discovered evidence of some barrels from missing shipments in August 2011, and discovered some of the missing barrels of MMA in December 2011 and April 2012. In August 2011, DEA agents located wrappers from the June 2010 shipment of MMA drums in an abandoned residence in San Luis, Arizona. In December of 2011, Customs and Border Protection officers intercepted five Taminco drums of MMA when an individual (not associated with Taminco) attempted to transport them by truck into Mexico at Nogales, Arizona. In April of 2012, DEA agents found and seized six additional Taminco drums of MMA at a self-storage unit in Nogales, Arizona. The drums that DEA seized were from March 2010 shipments to the unverified Mexican customer.
Taminco’s civil settlement with the United States resolves civil claims arising from 19 shipments of MMA in early and mid-2010 that were authorized by Taminco without proper verification of the existence and validity of the foreign business entities ordering the List I chemicals. According to the civil claims, Taminco also could not verify that certain of the MMA shipments reached their intended recipient in Mexico, and Taminco failed to report to DEA that those shipments were missing or that delivery could not be verified.
As part of the civil settlement, Taminco has entered into a Memorandum of Agreement (MOA) with the DEA under which Taminco has agreed to comply with certain heightened compliance requirements regarding the manufacture, sale and shipment of listed chemicals. DEA has agreed to forego administrative action against Taminco’s DEA registrations, subject to Taminco’s compliance with the terms of the MOA.
The case was investigated by the Yuma, AZ Resident Office and Scranton Resident Office of the Drug Enforcement Administration with assistance from Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Albert S. Glenn and Charlene Keller Fullmer.
70-Year-Old Lubbock Man Sentenced to 24 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — John Everette Murdock, 70, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 24 months in federal prison, following his guilty plea in August 2015 to an indictment charging one count of access with intent to view child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
As noted in today’s sentencing hearing, Murdock, an ex-Marine, suffered injuries while serving in the line of duty in Vietnam. He must surrender to the Bureau of Prisons on December 31, 2015.
According to plea documents filed in the case, Murdock used a computer to access, with intent to view, various images of child pornography. He used file-sharing software to search for material that was likely to result in his access to child pornography, which he would view and then delete. Law enforcement seized that computer and hard drive during the execution of a search warrant at his residence in late August 2014.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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23 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On November 16, 2015, a federal grand jury in the District of Puerto Rico returned an indictment against 23 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations and the Puerto Rico Police Department (PRPD), Fajardo and Humacao Strike Forces, are in charge of the investigation.
The indictment alleges that beginning in November 2009, and continuing up to January 2012 the organization distributed heroin, crack, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Los Jardines de Oriente (also known as Los Condos) Public Housing Project, and within 1,000 feet of the Rufino Vigo Elementary School located in the Municipality of Humacao, Puerto Rico, all for financial gain and profit.
The 23 defendants acted in different roles in order to further the goals of their organization, to wit: leader/drug owners, enforcers, runners, sellers, and facilitators. Eleven defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime: Alex O. Santos-Luyando, aka “Alex El Gordo;” Edsel Pedraza-Santiago, aka “Edsela;” Carlos Montes-Acosta, aka “Pepito;” Joseph Flores-Hernández, aka “Peke;” William Sierra-Cruz, aka “W;” Vincent Otero-Alicea, aka “Vicentito;” Jorge O. Arroyo-Ríos, aka “Rambo;” José L. Robles-Hernández, aka “Chespi;” Rafael Santiago-Díaz, aka “Coyote;” José R. Flores-Hernández, aka “Joseph;” and Lorenzo Sanjurjo-Estrella, aka “Magayo”.
The other defendants are: Franchesca M. Peña-Guzmán, aka “Chezca;” Magaly Hernández-Cruz; Minerva Cruz-Figueroa, aka “Chula;” Madeline Sánchez-Pagán, aka “La Vizca;” Victor M. Mojica-Medina, aka “Cocotero;” Rubén Ramos-Cruz, aka “Ito;” Carlos Rivera-Rivera, aka “Gringo;” Damaris Montes-Acosta; Grey Z. Burgos-Sánchez, aka “Greyskull;” Luis Gómez-Arroyo, aka “Coco;” Melvin Hernández-Castro, aka “Boquilla;” and Carlos A. Morales-Senquiz.
The co-conspirators operated the drug points twenty-four (24) hours a day, seven days a week, at various locations that rotated and varied throughout the span of the conspiracy. The defendants stored weapons, drugs, and the drug trafficking proceeds in different locations within and outside the Los Jardines del Oriente Housing Project. The leaders of the organization divided among themselves and their subordinates the proceeds of the drug trafficking sales.
Assistant U.S. Attorney Dina Ávila-Jiménez is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
19 November 2015
l Paso Man Sentenced to Ten Years in Federal Prison for Child Exploitation ConvictionRead the Press Release
ALBUQUERQUE – Juan Hernandez, 46, of El Paso, Texas, was sentenced late yesterday afternoon in federal court in Las Cruces, N.M., for his child exploitation conviction. Hernandez was ordered to serve ten years in federal prison followed by fifteen years of supervised release. Hernandez will be required to register as a sex offender when he completes his prison sentence.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI), El Paso, Texas, Doña Ana County Sheriff Enrique Vigil, and Las Cruces Police Chief Jaime Montoya.
Hernandez was arrested on Feb. 28, 2014, by HSI on a criminal complaint alleging that he engaged in the online solicitation of a child under the age of 16 years between Sept. 2012 and June 2013. The criminal complaint also charged Hernandez with traveling from El Paso to Anthony, N.M., in June 2013, with the intention of having illicit sexual contact with a child under the age of 16 years.
According to court filings, Hernandez met the child victim through an Internet social networking website in Sept. 2012, and the two began communicating regularly by text messaging on cellphones in May 2013. Hernandez was arrested on state charges in the early hours of June 22, 2013, after deputies of the Doña Ana County Sheriff’s Office found him with the child victim at a park in Anthony, N.M.
In July 2013, HSI obtained federal search warrants for the cellphones seized from Hernandez and the child victim. Information obtained through the search warrants revealed that Hernandez engaged in sexually explicit communication with the child victim. It also revealed that Hernandez was aware that the child victim was under the age of 16 years and that prior to meeting the child victim, Hernandez told the child victim that he was 17, 18 and 22 years old at various times.
On Aug. 13, 2014, Hernandez pled guilty to a felony information charging him with the online enticement of a minor to engage in illicit sexual activity. In entering his guilty plea, Hernandez admitted intentionally enticing underage females online to engage in illegal sexual activity with him between Sept. 1, 2012 and June 22, 2013, by using a social account which he accessed with his cellphone and computer. Hernandez admitted telling minor females that he was 18-years-old. Hernandez specifically admitted engaging in multiple sexually explicit conversations with a 13-year-old girl.
This case was investigated by the Las Cruces office of HSI, the Doña Ana County Sheriff’s Office and the Las Cruces Police Department. The case was prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Windham Man Pleads Guilty to Unlawfully Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Bruce Mayberry, 55, of Windham, Maine pled guilty today in U.S. District Court to failing to present at a border crossing point when he entered the United States from Canada.
According to court records, on October 29, 2015, a red Saturn sedan operated by Mayberry triggered sensors and was observed by a U.S. Border Patrol agent entering the United States on a field road leading from New Brunswick into Maine. After the Border Patrol agent conducted a vehicle stop, the driver admitted he had entered through the field road and had been in Canada for a few days. An officer employed by the Canadian Border Services Agency reported that Mayberry had previously been refused entry into the country as result of his criminal history.
U.S. Attorney Delahanty said that the Justice Department and the Department of Homeland Security are committed to securing the international border and ensuring that those who seek to enter the United States present themselves for inspection at designated crossing points and ports of entry.
Mayberry faces up to a year in prison and a $100,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Department of Homeland Security, U.S. Border Patrol.
Wilson Man Sentenced for Armed Bank RobberyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, ANTONIO DASHAWN PITT, 21, of Wilson, North Carolina, was sentenced before United States District Judge James C. Dever, III. PITT received 125 months imprisonment followed by a 4 year term of supervised release.
On November 24, 2014, a Criminal Indictment was filed charging PITT with armed bank robbery, in violation of 18 U.S.C. § 2113, and brandishing a firearm during a crime of violence, in violation of 18 U.S.C. § 924(c). On May 4, 2015, PITT pleaded guilty to the charges contained in the indictment.
According to the investigation, on July 7, 2014, officers of the Wilson Police Department in Wilson, North Carolina, responded to a robbery call at the State Employees Credit Union (SECU) in Wilson. The investigation revealed that PITT entered the credit union wearing a wig and dark glasses. PITT approached a teller, threw a bag at her, and demanded that she fill the bags. As PITT jumped over the counter, he lost his wig. According to one witness, he pointed the firearm in her direction and ordered her to the floor. After the teller filled the bag, PITT approached the window teller before he jumped over the counter. A total of $22,236.06 was taken from the bank; however, $20,236.06 was immediately recovered after a dye pack exploded in the bag. PITT fled the scene on a bicycle. The wig, glasses, firearm, and bicycle were all recovered. PITT provided a confession to the robbery.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Wilson Police Department. Assistant United States Attorney Rudy E. Renfer prosecuted the case for the United States.
White Sulphur Springs man pleads guilty to Federal drug chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a White Sulphur Springs man pleaded guilty today to a drug charge in federal court Charleston, West Virginia. Darin Timothy Hoke, 21, admitted that on July 28, 2015, he distributed an oxymorphone pill to a confidential informant in White Sulphur Springs. Hoke further admitted that he distributed a total of over 600 oxymorphone pills, as well as 120 stamps of heroin.
Hoke faces up to 20 years in federal prison and a $1,000,000 fine when he is sentenced on March 2, 2016.
This matter was investigated by the Greenbrier Valley Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecution.
This case is being prosecuted 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 illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Wasilla Man Indicted for Bank Robbery and Weapons CrimeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was indicted by a federal grand jury in Anchorage for bank robbery and using a firearm during a crime of violence in connection with the robbery of Credit Union 1 on August 7, 2015.
Wayne Michael Sexton, 45, of Wasilla, Alaska, was indicted by the grand jury on one count of bank robbery and one count of using a firearm during and in connection with a crime of violence. Sexton, who has been in custody for the robbery since November 9, 2015, is currently detained in the Anchorage jail without bail. Sexton has a prior conviction for the same crimes from 1999.
According to Assistant U.S. Attorney Steven E. Skrocki, Sexton was charged with robbing Credit Union 1, and during the robbery obtained more than $17,000 in bank funds. During the robbery, Sexton carried and brandished a revolver, which he used to threaten and intimidate bank personnel thus leading to the weapons crime charge.
An arraignment date has not been set.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Ms. Loeffler commends the FBI for the investigation of this case.