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Thursday 1 October 2015
Buffalo Man Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alvin L. Livingston, Jr., 36, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute five kilograms or more of cocaine. The charge carries a maximum penalty of life in prison and a $10,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, on September 26, 2015, law enforcement officers executed a search warrant at the defendant’s residence on Stevenson Street. Livingston was alone in the residence at the time. Officers recovered bundled U.S. currency, a money counter, two digital scales containing suspected cocaine residue, and a vacuum sealing package device.
Following the search of the residence, officers searched a car rented to Livingston, which was parked outside. Inside, they found approximately five kilograms of cocaine in vacuum-sealed packages in the trunk of the vehicle.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held in custody pending a detention hearing on October 20, 2015, at 11:00 a.m.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bristol Man Sentenced for Domestic Violence ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Robert W. McCandless, 38, of Bristol, Florida, was sentenced to 151 months in prison today for interstate domestic violence and interstate violation of a protection order. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea on July 9, 2015, McCandless admitted to violating a protection order by unlawfully entering the victim’s residence on January 16, 2015. McCandless and the victim had lived together previously for approximately five years and had two children. After strangling the victim with a communications cord and assaulting the victim, McCandless forced her and their children to travel with him out of Florida. Approximately eight hours later, law enforcement agents arrested McCandless, rescuing the victim and her children on Interstate 95 in South Carolina. The victim received medical treatment for injuries consistent with strangulation.
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Liberty County Sheriff’s Office, and the Clarendon County Sheriff’s Office in South Carolina. It was prosecuted by Assistant United States Attorney Stephen M. Kunz.
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.
Bossier City man pleads guilty to possessing ammunition after being convicted of feloniesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Bossier City pleaded guilty to possessing shotgun shells and bullets even though he was prohibited from doing so because he had prior felony convictions.
Sidney Joseph Patterson, 44, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of possession of ammunition by a convicted felon. According to evidence presented at the guilty plea, on January 9, 2015, Bossier Parish Sheriff’s deputies began investigating the discharge of a homemade “zip gun” firearm at Patterson’s residence which wounded Patterson in his back. Found at the residence was the discharged “zip gun” and three other “zip guns” loaded with two rounds of 12 gauge shotgun ammunition and one round of .380 caliber ammunition. Prior to this offense, Patterson had other felony drug convictions.
Patterson faces up to 10 years in prison, one to three years of supervised release and a $250,000 fine. A sentencing date of February 17, 2016 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and the Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Annapolis Residential Developer Pleads Guilty in Fraudulent Mortgage SchemeRead the Press Release
Baltimore, Maryland – Timothy L. Ritchie, age 44, of Annapolis, Maryland, pleaded guilty today to making false statements arising from a real estate closing.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.
Ritchie owned and operated Richland Homes, Inc., and was in the business of building, purchasing and selling homes.
According to his plea agreement, on July 7, 2005, Ritchie attended a residential closing for his purchase of three lots located at 24058 St. Michael’s Road in St. Michael’s, Maryland. John Davis, a real estate agent, conducted the closing, and listed Ritchie on the HUD statement as the buyer/ borrower. The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing. In fact, Ritchie did not provide any funds to Davis at the closing. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.
Ritchie faces a maximum sentence of five years in prison. U.S. District Judge Richard D. Bennett scheduled his sentencing for January 14, 2016, at 10:00 a.m.
In a related case, John L. Davis, age 55, of Chestertown, Maryland, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme, and awaits sentencing. Davis admitted that the loss arising from his participation in the scheme is between $400,000 and $1 million.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
United States Attorney Rod J. Rosenstein commended the FHFA - OIG and FDIC – OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. DiGregory and Assistant U.S. Attorney Kathleen O. Gavin, who are prosecuting the case.
Alleged Fraudster Used Social Media as Crime ToolRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging Aaron Dashawn Caple, 23, of Philadelphia, PA, in a fraud scheme involving bad checks and social media. Caple is charged with four counts of bank fraud and 22 counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the indictment, Caple used social media services Twitter and Facebook to solicit potential co-schemers to message him if they wanted to make quick cash and had an account at a bank or other financial institution. From those that responded, he obtained their bank ATM cards and PIN numbers and allegedly used that information to deposit bad checks into those accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad. He also allegedly used the ATM cards and PIN numbers at various stores to purchase goods and obtain cash back prior to the banks discovering that the checks were bad. It is further alleged that Caple paid the account holders a portion of the more than $45,000 he unlawfully obtained as a result of the scheme.
If convicted, defendant Caple faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 144 years, up to five years of supervised release, a fine of up to $9.5 million, and restitution of at least $47,000.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Albuquerque Man Sentenced to Prison for Federal Synthetic Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Sabah Al-Washah, 48, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison followed by three years of supervised release for his conviction on “spice” trafficking. Sabah Al-Washah is one of three men arrested in the District of New Mexico in May 2014, as part of Project Synergy Phase II, a nationwide investigative effort by the DEA, Customs and Border Protection, Homeland Security Investigations, FBI, IRS and other federal, state, and local partners. Project Synergy Phase II targeted every level of the dangerous global synthetic designer drug market. From Jan. 2014 through May 2014, nationwide enforcement operations took place targeting the drug trafficking organizations that have operated in communities across the country.
Sabah Al-Washah and his co-defendants, Iman Al-Washah, 25, and Amjad Al-Washah, 26, also of Albuquerque, were charged with “spice” trafficking charges in criminal complaints. Sabah Al-Washah, the owner of Carlos’ Smoke Shop, was charged with conspiracy and aiding and abetting the distribution of a controlled substance analogue based on a sale of synthetic cannabinoid to an undercover officer at the smoke shop on Jan. 7, 2014. Sabah Al-Washah also was charged with maintaining drug-involved premises. Amjad Al-Washah was charged with distribution of a controlled substance analogue based on his sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop at 806 Old Coors Drive SW in Albuquerque on Dec. 4, 2013. Iman Al-Washah was charged with conspiracy and distribution of a controlled analogue based on his participation in the sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop on Jan. 7, 2014.
The three men subsequently were charged in a four-count indictment filed on May 21, 2014. Count 1 charged the three men with conspiracy to distribute a controlled substance analogue from Dec. 4, 2013 through May 7, 2014. Count 2 charged Sabah Al-Washah and Amjad Al-Washah with distributing a controlled substance analogue on Dec. 4, 2013. Count 3 charged Sabah Al-Washah and Iman Al-Washah with distributing a controlled substance on Jan. 7, 2014, and Count 4 charged Sabah Al-Washah with maintaining a place, Carlos Smoke Shop, for the purpose of manufacturing, distributing, and using a controlled substance analogue. The indictment also called for the forfeiture of multiple vehicles and cash obtained through the drug offenses charged in the indictment.
On April 28, 2015, Sabah Al-Washah pled guilty to Count 3 of the indictment and admitted that Iman Al-Washah and he sold 30 packets of “spice” to an undercover law enforcement officer. In his plea agreement, Sabah Al-Washah agreed to forfeit a 2011 Cadillac, a 2012 Camaro, a 2013 Dodge Viper, a 2008 Lamborghini, a 2004 Dodge Viper, a 2005 Cadillac and a 2011 Camaro.
Amjad Al-Washah pled guilty on Feb. 11, 2015, to Count 2 of the indictment and admitted that on Dec. 4, 2013, he sold ten packets of “spice” to an undercover law enforcement officer for $200.00 at Carlos’ Smoke Shop. At his sentencing hearing, which has not been scheduled, Amjad Al-Washah faces a statutory maximum penalty of 20 years in federal prison followed by a minimum of three years of supervised release.
Iman Al-Washah pled guilty on April 9, 2015, to Count 3 of the indictment, and admitted that he sold 30 packets of “spice” along with Sabah Al-Washah to an undercover law enforcement officer. Iman Al- Washah was sentenced on July 23, 2015, to three years of probation.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Stephen R. Kotz.
The controlled substance analogues charged in the complaints and indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Albuquerque Man Pleads Guilty to Armed Robbery of Eight Albuquerque-Area Businesses in Summer 2014Read the Press Release
ALBUQUERQUE – Jose Rodriguez, 23, of Albuquerque, N.M., pleaded guilty today in federal court to violating the Hobbs Act and firearms laws by robbing eight businesses involved in interstate commerce at gunpoint. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department.
Rodriguez was charged in March 2014, in a four-count indictment alleging that he robbed two Albuquerque-area businesses that were engaged in interstate commerce. It further alleged that Rodriguez brandished firearms during each of the two robberies. Rodriguez was arrested on April 22, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges which were later dismissed in favor of federal prosecution.
During today’s proceedings, Rodriguez entered a guilty plea to a nine-count felony information charging him with violating the Hobbs Act and federal firearms laws. The first eight counts of the information charged Rodriguez with interfering with interstate commerce by robbing the following eight businesses between June 2014 and Aug. 2014:
- Papa John’s Pizza on Gibson Blvd. SE in Albuquerque on June 29, 2014;
- Twisters on Gibson Blvd SW in Albuquerque on July 5, 2014;
- Flowers Bakery on Gibson Blvd. SE in Albuquerque on July 14, 2014;
- Pump-N-Save gas station on Menaul Blvd. NE in Albuquerque on July 17, 2014;
- Krispy Kreme on Wyoming Blvd NE in Albuquerque on July 30, 2014;
- M&M Gas Station on Coors Blvd. NW in Albuquerque on Aug. 5, 2014;
- Phillips 66 Gas Station on Coors Blvd. NW in Albuquerque on Aug. 6, 2014;
- Church’s Chicken on Central Ave NW in Albuquerque on Aug. 7, 2014.
The ninth count of the information charged Rodriguez with brandishing a firearm during a crime of violence, specifically, the robbery of the Church’s Chicken on Aug. 7, 2014. In addition, in his plea agreement, Rodriguez admitted that he used a firearm, which he brandished at employees of the businesses he robbed, during seven of the eight robberies.
Under the terms of his plea agreement, Rodriguez will be sentenced to a prison term within the range of 36 to 60 months on Counts 1 through 8, the Hobbs Act charges, of the information, and to 84 months on Count 9, the firearms charge. The 84 months must be served consecutive to the sentence imposed on the Hobbs Acts counts for a prison sentence of not less than 120 months and not more than 144 months. Rodriguez has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Alaska Resident Pleads Guilty to Drug Dealing, Money LaunderingRead the Press Release
SACRAMENTO, Calif. — DuWayne LeDoux, 55, of Kodiak, Alaska, pleaded guilty today to possession with intent to distribute methamphetamine and conspiracy to structure cash deposits, United States Attorney Benjamin B. Wagner announced.
According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.
Kodiak, Alaska is on an island off the southern coast of Alaska, with approximately 14,000 residents.
This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force. Assistant United States Attorneys Jason Hitt and Jean M. Hobler are prosecuting the case.
Co-defendant MacDougal pleaded guilty in November 2012, and is currently serving a five-year sentence.
LeDoux is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 7, 2016. LeDoux faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, 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.
Alabama Man’s Minor Role in Heroin Transaction Leads to 18 Month Prison SentenceRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 19-year-old Alabama man was sentenced to 18 months in prison today by Senior U.S. District Court Judge James M. Munley in Scranton, for playing a minor role in a single heroin transaction in October 2014.
According to United States Attorney Peter Smith, the defendant, Corey Wortham, of Montgomery, Alabama, previously pleaded guilty to conspiracy to distribute heroin. Wortham admitted to traveling from Alabama to Luzerne County to participate with others in a heroin transaction on October 11, 2014. Agents arrested Wortham and others after the transaction.
Wortham was indicted by a federal grand jury in October 2014, as a result of an investigation by agents of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police Department.
Judge Munley ordered Wortham to serve three years on supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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"Purse Man" Charged with Trafficking Counterfeit GoodsRead the Press Release
PHILADELPHIA – Lassana Nianghane, 52, of Philadelphia, PA, was charged by information, filed yesterday, with trafficking in counterfeit goods, announced United States Attorney Zane David Memeger. According to the information, Nianghane, also known as “the Purse Man,” sold counterfeit womens’ designer purses and counterfeit sneakers, among other items, on the sidewalk near Germantown and Chelten Avenues in Philadelphia PA.
According to the information, between September 2011 and June 2014, Nianghane intentionally trafficked in approximately $127,200 worth of goods and used counterfeit marks identical to and substantially indistinguishable from the shape and imprints found on genuine designer purses and sneakers.
If convicted, defendant Nianghane faces a maximum possible sentence of 10 years in prison, a fine of up to $2 million, a $100 special assessment and up to three years of supervised release.
The case was investigated by U.S. Department of Agriculture Office of Inspector General and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Floyd Miller.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wednesday 30 September 2015
YMM Gang Members Sentenced to 21-Plus Years in Prison for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALFRED COBBINS, age 23, and SHAWN GRACIN, age 22, both residents of New Orleans, were sentenced today for their participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”
U.S. District Judge Kurt D. Engelhardt sentenced COBBINS to 252 months (21 years) of imprisonment and GRACIN to 270 months (22.5 years) imprisonment. Each defendant was also given 5 years of supervised release following their term of incarceration.
COBBINS and GRACIN were originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, COBBINS and GRACIN and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
“This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite. “These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (MAG) Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
Wisconsin man found guilty of federal drug and Racketeering chargesRead the Press Release
LUFKIN, Texas – A 41-year-old man from Milwaukee, Wisconsin has been convicted on federal drug and money trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Henry Korvett Bams, of Milwaukee, Wisconsin, was found guilty by a jury today after a three day trial before the Honorable Michael H. Schneider. Bams was found guilty of conspiracy to possess with the intent to distribute cocaine in an amount of five kilograms or more and use of an interstate facility in aid of racketeering.
Bams and his co-defendant, Frederick Mitchell, were indicted on September 3, 2014. On Sunday, July 6, 2014, Bams and Mitchell were stopped for a traffic violation by the Texas Department of Public Safety while traveling southbound on US Highway 259 in Nacogdoches County, Texas. The officer eventually conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana. Following an arrest on state charges, both men were released when the charges were dismissed. In addition, the Nacogdoches County District Attorney’s office returned all but $100,000 of the seized currency to Bams and Mitchell. On July 22, 2014, Bams and Mitchell were stopped for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30. The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside hidden compartments within the vehicle. Two bank deposit slips were also discovered within the vehicle. On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account referenced in the deposit slips and seized approximately $135,015.14 in drug proceeds.
Mitchell pleaded guilty to the charges on January 7, 2015 and was sentenced to a term of imprisonment of 84 months on April 9, 2015.
Bams faces a minimum of 10 years to life in federal prison for the drug distribution violation and up to five years for the interstate transportation in aid of racketeering violation. A sentencing date has not been set.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, Milwaukee, Wisconsin District Office, the Federal Bureau of Investigation, and the Texas Department of Public Safety, and is being prosecuted by Assistant U.S. Attorneys Baylor Wortham and Lauren Gaston.
Winston-Salem Man Sentenced for Firearms ViolationRead the Press Release
GREENSBORO, N.C. – A Winston-Salem man was sentenced to 180 months of imprisonment for possession of a firearm by a felon, announced United States Attorney Ripley Rand.
Xavier Pierre Walker, 44, of Winston-Salem, North Carolina, pleaded guilty to one count of possession of a firearm by a felon. Walker was sentenced on September 29, 2015, by United States District Judge Catherine C. Eagles, to 180 months imprisonment followed by five years of supervised release and a special assessment of $100.00.
Walker was arrested on June 1, 2014, in Chatham County on state charges. At that time, Walker possessed two firearms, in violation of federal of federal law.
This case was investigated by the Chatham County Sheriff’s Office, North Carolina State Bureau of Investigation, Bureau of Alcohol, Tobacco and Firearms Division and was prosecuted by Assistant United States Attorney Michael A. DeFranco.
Docket Number 1:15CR117
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Wilmington Man Sentenced for Drug and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court, Senior United States District Judge W. Earl Britt sentenced ADREAN LAMONT JONES, 29, of Wilmington, to 90 months imprisonment followed by 5 years of supervised release. On June 1, 2015 JONES pleaded guilty to possession with intent to distribute a quantity of Phencyclidine (PCP) and possession of a firearm in furtherance of a drug trafficking crime on June 3, 2014.
According to the investigation, a deputy with the Duplin County Sheriff’s Office attempted to make a traffic stop after observing a vehicle on I-40 operated by JONES swerving back and forth across the center line. After deputies successfully forced JONES to stop, JONES refused to exit his vehicle. It was later revealed that JONES was under the influence of phencyclidine (PCP), a Schedule II controlled substance. In the vehicle, law enforcement located a loaded handgun and PCP.
Investigation of this case was conducted by the Duplin County Sheriff’s Office, the North Carolina State Highway Patrol, and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Verona Man Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Verona, Mo., man was indicted by a federal grand jury today for producing and receiving child pornography.
Allen S. Worley, 41, of Verona, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Worley attempted to use a minor, identified as Jane Doe #1, to produce child pornography between Dec. 9, 2014, and April 16, 2015. Worley is also charged with receiving child pornography over the Internet.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Aurora, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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."
Upton Woman Sentenced for Defrauding Federal Benefits ProgramsRead the Press Release
BOSTON – An Upton, Mass. woman was sentenced today in U.S. District Court in Worcester for stealing more than $128,000 in Social Security benefits and providing false information in applications for subsidized housing.
Patricia Kwiatkowski, 64, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years of probation, including three months of home or community confinement, and ordered to pay restitution of $128,101 to the Social Security Administration and $2,391 to the U.S. Department of Housing and Urban Development. In June 2015, Kwiatkowski pleaded guilty to stealing public money.
Kwiatkowski’s father died in 2006, but the father’s monthly Social Security benefits continued to be directly deposited into his bank account. Although she was not entitled to this money, Kwiatkowski signed her late father’s name on more than 100 checks written from his account to pay her own bills. She also made more than 150 ATM withdrawals from the account, and spent money from the account at retail stores. In total, from 2006 to 2014, Kwiatkowski received and spent $128,101 in Social Security funds to which she was not entitled.
During the entire time that she was removing Social Security benefits from her late father’s account, Kwiatkowski was also receiving her own Social Security benefits of about $1,000 per month. In addition, she began receiving food stamps in 2009, MassHealth benefits in 2011, and subsidized housing in 2013. In 2013 and 2014, she provided false information on her applications for subsidized housing.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money:
In April 2015, Graeme Griffith, of Andover, was sentenced for stealing $149,285 from Social Security from 2003 to 2014.
Also in April 2015, Frances Kenney Moseley, of Boston, was sentenced for stealing $222,172 from Social Security from 2003 to 2010.
In February 2015, Charles Gerbutavich, of Manchester, was sentenced for stealing $161,587 from Social Security from 1993 to 2014.
In October 2014, Mary Murphy, of Dorchester, was sentenced for stealing $206,679 from Social Security and $143,098 from the Civil Service Retirement System from 1977 to 2013.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The Kwiatkowski case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
U.S. Department of Justice Awards Grant Funding to Iowa to Combat MethRead the Press Release
CEDAR RAPIDS – Earlier this week the United States Department of Justice announced that nearly $18 million in Community Oriented Policing Services Office (COPS) grant funding was awarded through the COPS Anti-Gang Initiative, COPS Anti-Heroin Task Force Program, and the COPS Anti-Methamphetamine Program. Iowa was one of seven states to receive grant funding through the COPS Anti-Methamphetamine Program (CAMP). The amount awarded to the Iowa Division of Narcotics Enforcement was $282,561.
Only state law enforcement agencies authorized by law or by state agency to engage in or supervise anti-methamphetamine investigative activities are eligible to apply for CAMP funding. Agencies that applied as part of a new or existing anti- methamphetamine task force with multi-jurisdictional reach and an inter- disciplinary team structure received additional consideration.
“We look forward to the work of our local and state law enforcement partners,” said COPS Office Director Ronald Davis. “By getting methamphetamine off the streets and shutting down laboratories, investigating illicit activities related to the distribution of heroin or unlawful distribution of prescriptive opioids, and combating gang activity through enforcement, prevention, education and intervention, we can make the country safer for everyone.”
Kevin W. Techau, United States Attorney for the Northern District of Iowa said, “Methamphetamine continues to be a scourge in Iowa. This federal grant will allow law enforcement at the federal, state, and local levels to continue to work together against methamphetamine in communities across Iowa. The United States Attorney’s Office for the Northern District of Iowa will continue to work with our law enforcement partners every day in every way possible."
CAMP is a competitive grant program designed with a focus on advancing public safety by providing funds directly to state law enforcement agencies to investigate illicit activities related to the manufacture and distribution of methamphetamine. CAMP provides funding directly to state law enforcement agencies in states with high seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures for the purpose of locating and investigating illicit activities, including precursor diversion, laboratories and methamphetamine traffickers. For more information about the COPS Anti-Methamphetamine Program and a list of grant recipients, visit http://cops.usdoj.gov/Default.asp?Item=2716.
Since 1995, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
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U.S. Attorney Sharpe Commends VI for Receiving Multiple GrantsRead the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe today commended the Virgin Islands Government for receiving several additional grants from the U.S. Justice Department’s Office of Justice Programs. Five grants totaling over $2 million were awarded on September 23, 2015. Sharpe said the U.S. Department of Justice and the U.S. Attorney’s Office are committed to improving the effectiveness and efficiency of law enforcement by providing resources and supporting programs that strengthen the community.
The largest of the five grants awarded is a $1.123 million grant to the Law Enforcement Planning Commission. The grants are:
The Edward Byrne Memorial Justice Assistance Grant for $610,774 was awarded to the Virgin Islands Law Enforcement Planning Commission. The grant will assist in improving the operational effectiveness of law enforcement using evidence-based and data driven efforts in reducing crime, improve investigations and prosecutions efforts for drug and violent crime and increase funding assistance to communities and neighborhoods to prevent delinquency and reduce juvenile crime.
The VOCA Victim Assistance Formula Grant for $1,123,431 was awarded to the Law Enforcement Planning Commission to provide competitively awarded grants to state and local community-based organizations that provide direct services to crime victims.
The Paul Coverdell Forensic Science Grant for $63,705 was awarded to the Virgin Islands Department of Justice to assist VIDOJ in improving the quality, quantity and timeliness of forensic science in the territory.
The Victim Assistance Discretionary Grant Training Program for $57,292 was awarded to the Virgin Islands Law Enforcement Planning Commission to support training and technical assistance for victim grantees and others who work with crime victims.
The Victim Compensation Formula Grant for $163,000 was awarded to the Virgin Islands Department of Human Services on St. Croix to enhance state victim compensation payments to eligible crime victims.
Two Tennessee Men Each Sentenced to 28 Years in Prison for Killing During Home Invasion Robbery in ClarksvilleRead the Press Release
Michael Massey, 26, of Lexington, Tennessee, and Demario Winston, 27, of Clarksville, Tennessee, were each sentenced to 28 years in prison for killing during a home invasion robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. Massey was sentenced yesterday and Winston was sentenced on September 2, 2015. Both pleaded guilty on May 29, 2015, before Chief U.S. District Court Judge Kevin H. Sharp, to conspiracy to commit Hobbs Act Robbery and use of a firearm in a crime of violence resulting in death. Massey also pleaded guilty to a separate count of Hobbs Act Robbery, and was ordered to pay $17,000 in restitution.
According to admissions reflected in the plea agreements, on May 7, 2011, Massey, Winston and others attempted to rob a home in Clarksville, and Massey used a sledge hammer to gain entry. The conspirators previously had been advised that a large amount of cocaine and cash was stored inside a safe in the basement of the home.
The defendants further admitted that, while inside the home, Winston, who was armed with a 9mm pistol, engaged in a gun fight with the homeowner on the first floor as other conspirators attempted to force one of the occupants of the home, Raul Triana, to open the safe, and pistol-whipped him in the face in the process. Evidence introduced in the plea hearing indicated that, in response to the shooting on the first floor, some of the conspirators fled the home, and Massey, who was armed with an assault rifle, fled through the basement where he encountered Triana and shot and killed him.
In addition, Massey admitted that, on Oct. 21, 2011, he and a co-defendant planned the robbery of the owner of a Clarksville-based construction company. Massey, together with two others executed the robbery at gunpoint.
This case was investigated by the Clarksville Police Department and the DEA. The case was prosecuted by Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee and Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
Two Orlando Men Federally Indicted on Carjacking ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Orlando residents Dante Askins (18) and Gregory McDonald (18) with carjacking and using a firearm while committing that offense. Each faces a maximum penalty of 25 years in federal prison for the carjacking conviction and a mandatory 7-year consecutive term of imprisonment for the firearm conviction.
According to court documents, on August 12, 2015, Askins and McDonald committed an armed carjacking of a U.S. Customs and Border Protection (CBP) officer at a hotel in Orlando. The victim, who was on vacation with his family, had gone down to his vehicle in the hotel parking lot to preload his GPS for a trip to Destin the next morning. Askins, McDonald, and two minors approached the victim with a firearm, pistol whipped him, and forced him into the back of his vehicle. The carjackers held the victim for approximately two hours. When OnStar location services contacted the vehicle, the carjackers fled and the victim escaped.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Orange County Sheriff’s Office, the Florida Department of Law Enforcement, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Update: Arraignment has been set for Tuesday, October 6, 2015, at 10:00 AM in Orlando Courtroom 4 C before Magistrate Judge Thomas B. Smith.
Two North Carolina Men Sentenced to Prison for Conspiracy and Identity TheftRead the Press Release
A resident of Raleigh, North Carolina, was sentenced to prison today for his role in a conspiracy to file false claims and for aggravated identity theft, Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina announced.
Christian Rhodes, 39, was sentenced to serve 144 months in prison to be followed by three years of supervised release and ordered to pay $1,036,918 in restitution to the Internal Revenue Service (IRS). Rhodes pleaded guilty on May 11 to one count of conspiracy to file false claims and one count of aggravated identity theft.
“Today’s sentence reflects the heavy price that will be paid by those individuals who steal identities and file fraudulent claims for refunds to line their own pockets,” said Acting Assistant Attorney General Ciraolo. “The department remains committed to working with the IRS and other federal and state law enforcement agencies to identify, prosecute and seek lengthy incarceration of these offenders.”
On Aug. 4, 2015, Senior U.S. District Court Judge James C. Fox of the Eastern District of North Carolina sentenced Rhodes’ brother and co-conspirator, Rodney Wright, 33, to serve 15 months in prison to be followed by three years of supervised release, and ordered him to pay $86,447 in restitution. Wright pleaded guilty to one count of conspiracy to file false claims.
According to court documents, Rhodes, Wright and others conspired to prepare and file false income tax returns with the IRS. Wright obtained personal identification information of taxpayers and provided this information to Rhodes so that Rhodes, and to a more limited degree Wright, could prepare and file false tax returns that fraudulently claimed refunds. Rhodes also obtained the personal information of taxpayers from other sources, which he used to prepare and file false tax returns. The false information on the returns included deductions, credits, employers, wages and withholdings. Rhodes and Wright charged taxpayers a fee for preparing false returns.
Rhodes also recruited his sister, Virginia Parks-Bert, and Kellian James to join his scheme. Parks-Bert and James pleaded guilty to conspiracy to file false claims with the IRS in the Eastern District of Virginia and were sentenced to serve 42 months and 15 months in prison, respectively. Rhodes taught Parks-Bert to file false tax returns and explained how to make it more difficult for the IRS to trace false returns back to her. Rhodes introduced James and Parks-Bert to each other so that James could recruit clients and Parks-Bert could prepare and file more tax returns. The total intended tax loss of the fraudulent claims filed in this conspiracy was more than $3 million.
Rhodes also filed false claims for refund using stolen identities. He used the identification of clients from previous tax years to file false tax returns in their names and then kept the entire fraudulently obtained refund. Rhodes deposited the fraudulently obtained refunds into his own bank accounts or the accounts of third parties, including family members and girlfriends. He then withdrew cash from his accounts or directed the accountholders to withdraw the funds and deliver them to him.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina and Trial Attorneys Lauren M. Castaldi and Rebecca Perlmutter of the Tax Division, who prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
Two Men Plead Guilty to Defrauding Memphis VA Medical Center of $1 MillionRead the Press Release
Memphis, TN – Two men have pled guilty to conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
According to the indictment, from August 2007 to July 2013, Andre Reddix, 59, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.
Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.
In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.
For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.
Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments amongst themselves, using the funds for personal expenses.
Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.
On Wednesday, September 30th, Reddix pled guilty to conspiracy to defraud the VA of approximately $1 million.
On Friday, September 11th, White pled guilty to conspiracy to defraud the VA of approximately $1 million.
Both pleas included $1 million criminal forfeiture provisions.
White is scheduled to be sentenced by Judge Samuel H. Mays Jr. on December 11, 2015.
Reddix is scheduled to be sentenced by Judge Samuel H. Mays Jr. on January 7, 2016.
Both defendants face individual sentences of up to five years imprisonment when sentenced. In addition to the $1 million criminal forfeiture provisions, the defendants face individual fines of up to $250,000.
Two Men Convicted of Operating Multimillion Dollar Advance Fee Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that on September 29, 2015, a federal jury in New Haven found DAVID C. JACKSON, also known as “C. David Manns,” “Charles Jackson” and “Andrew D. Smithson,” 53, and ALEXANDER D. HURT, also known as Alex Hurt and “Alex Dante,” 45, guilty of conspiracy and wire fraud related to an advance fee fraud scheme they conducted that defrauded more than 40 individuals out of more than $4.5 million.
On December 22, 2014, a federal grand jury returned an 11-count indictment charging JACKSON, formerly of Maryland, Ohio and Pennsylvania, and HURT, of Scottsdale, Arizona, and formerly of Massachusetts, with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. The indictment also charged HURT with one count of making a false statement to federal law enforcement. The trial before U.S. District Judge Janet Bond Arterton began on September 9, 2015, and the jury returned a verdict of guilty on all counts after deliberating for approximately three hours.
“This was a sophisticated advanced fee scheme operated across numerous states that preyed on more than 40 victims, including Connecticut citizens and businesses,” said U.S. Attorney Daly. “These defendants and their co-conspirators took advantage of individuals and business owners who had limited options in acquiring business loans in the difficult financial environment that existed after the recession of 2008. The hard-working small business owners, developers and even family farmers who were victimized by these defendants when all they wanted to do was to get funding to create, expand, or operate their businesses. Moreover, as part of the scheme, Mr. Jackson used multiple identities to conceal his criminal past and thwart background checks. Those seeking business loans need to be wary of any provider of funding that requires significant fees in advance – especially those who use the internet to prey upon trusting people who are unable to verify the representations made.”
“Driven by greed, and through lies, deceit, and deception, Mr. Hurt and Mr. Jackson took advantage of unsuspecting individuals and stole millions of dollars so they could line their own pockets and, in the case of Mr. Hurt, travel to numerous countries on four continents,” said FBI Special Agent in Charge Ferrick. “The false representations and empty promises that were made to the victims in this case were not worth the paper the fraudulent loan documents were printed on. The FBI will continue to vigorously pursue and bring to justice those who would operate advance fee fraud schemes.”
According to the evidence presented during the trial, in approximately September 2009, JACKSON, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio. In 2011, JACKSON changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania. Soon after changing the business name, JACKSON began introducing himself to victim clients as “Charles Jackson” and then also used the name “Andrew Smithson” to prevent victims from learning his true identity and the true nature of his background and his scheme.
HURT held himself out as Vice President of Brightway Financial Group, LLC, a company that used a business addresses in Grapevine, Texas. As established during the trial, HURT used his background as a pastor with a Brockton, Massachusetts church to gain the confidence of at least one victim who lost money in the scheme.
JACKSON, HURT and others defrauded individuals, including Connecticut residents, who wired funds to them in anticipation of receiving large business loans. The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.” The victims were promised a refund of the upfront fees if their loan transactions were not completed. In order to convince victim-borrowers that the loans were legitimate and Jalin and ACH had successfully secured loans in the past, JACKSON provided victims and potential victims the name and phone number of a co-conspirator and told them that they could contact her for a reference. After she was contacted, the co-conspirator falsely represented to victims and potential victims that she had, in fact, received funding from JACKSON for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin. The reference she gave was false and was just another part of the scam.
Through this scheme, more than 40 individuals provided JACKSON and HURT with more than $4.5 million in advance fees and funds that were to be held in escrow for business loans that were never provided. Some of the individuals received partial refunds of the advance fees they had provided, but the refunds were made using fees that had been paid by other victims in a Ponzi-like scheme.
JACKSON was previously convicted of federal bank fraud and money laundering offenses in October 2006 and was sentenced to 41 months in prison, followed by five years of supervised release. He was released from federal prison in September 2009 and operated this advance fee fraud scheme while on supervised release
Judge Arterton scheduled a forfeiture hearing for October 27, 2015, during which the government will seek an order of forfeiture ordering the defendants to forfeit all proceeds traceable to the scheme. Judge Arterton will schedule sentencing after the forfeiture hearing.
The charges of conspiracy to commit wire fraud and wire fraud carry a maximum term of imprisonment of 20 years on each count, and the charge of making a false statement to federal law enforcement carries a maximum term of imprisonment of five years.
JACKSON has been detained since his arrest on August 26, 2014. HURT is released on bond under the supervision of the U.S. Probation Office.
This matter has been investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Michael S. McGarry.
Two Defendants from Georgia Sentenced in Credit Card Fraud SchemeRead the Press Release
BOISE –Rakeen Anderson, 32, of Atlanta, Georgia and Jean Estinville, 27, of Lawrenceville, Georgia, were sentenced today in United States District Court for their roles in a credit card scheme that targeted local retailers in October 2014, U.S. Attorney Wendy J. Olson announced.
Rakeen Anderson was sentenced to 18 months in prison followed by three years of supervised release for conspiracy to commit wire fraud. Chief U.S. District Judge B. Lynn Winmill also ordered Anderson to pay $22,679.54 in restitution, along with the other co-defendants, and to forfeit $49,953.41 in cash proceeds from the offense. He pleaded guilty on May 27, 2015.
Jean Estinville was sentenced to 46 months in prison followed by three years of supervised release for conspiracy to commit wire fraud and aggravated identity theft. Judge Winmill also ordered Estinville to pay restitution in the amount of $22,679.54, along with the other co-defendants, and to forfeit $49,953.41 in cash proceeds from the offense. He pleaded guilty on May 12, 2015.
According to the plea agreements, Anderson and Estinville each admitted traveling to the District of Idaho, along with their co-defendants, for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded onto stock debit cards. Each defendant admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers.
Anderson admitted to traveling to three separate retail stores, and attempted to make a purchase using three different credit card numbers he was not authorized to use. Upon his arrest, officers found four debit cards encoded with unauthorized credit card numbers in his possession.
Estinville admitted to traveling to three separate retail stores, and making 14 total purchases, using six different credit card numbers that he was not authorized to use. Upon his arrest, officers found 55 access devices in his rental vehicle, consisting of various gift cards and pre-paid debit cards, as well as a Citizen EcoDrive watch in his possession that was purchased with an unauthorized credit card number.
Anderson and Estinville were indicted along with Kyandre Banks, 34, of Lilburn, Georgia, Clarence Collins, 34, of Douglasville, Georgia, Charles Moore, 25, of Stone Mountain, Georgia, Jonathan Penn, 20, of Suwanee, Georgia, Terrance Barimah, 26, of Lawrenceville, Georgia, Brian Treadwell, 25, of Buford, Georgia, Mikki Williams, 25, of Loganville, Georgia, and Rashine Kale, 39, of Lawrenceville, Georgia, on charges relating to a wire fraud and identity theft scheme. Collins, Banks, Estinville, Kale, Moore, Penn, Williams and Treadwell were each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson was charged with conspiracy to commit wire fraud and wire fraud. Barimah was charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
Co-defendants Brian Treadwell and Mikki Williams were sentenced on June 16, 2014. Treadwell received 75 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Williams received three years of probation and 200 hours of community service for misprision of a felony. Clarence Collins was sentenced on July 6, 2015, to 78 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Charles Moore was sentenced on July 7, 2015, to 51 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Jonathan Penn was sentenced on July 8, 2015, to 24 months in prison for conspiracy to commit wire fraud. Rashine Kale was sentenced on July 22, 2015, to 30 months in prison for conspiracy to commit wire fraud and aggravated identity theft.
Co-defendant Kyandre Banks is awaiting extradition to the District of Idaho on the warrant issued as a result of the Indictment. Terrance Barimah remains a fugitive.
The case was investigated by the United States Secret Service and the Boise Police Department.
Two Colombian Nationals Arrested for Attempting to Sell Fraudulent $1 Billion U.S. Bearer BondRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALMA DE JESUS MOJICA HERRERA, age 51, and LEONARDO SERRATO POLANIA, age 41, both residents of Bogota, Colombia, were arrested and charged in a federal complaint with attempting to sell a fictitious U.S. Bearer Bond.
According to court records, Homeland Security Investigations (“HSI”) received information alleging that HERRERA was seeking to sell fictitious obligations in the form of a United States Bearer Bond with a face value of $1,000,000,000 U.S. dollars. HERRERA made representations that the bond was worth much more than $1,000,000,000 due to the accrual of interest. On September 28, 2015, HERRERA and POLANIA, travelled from Bogota, Columbia and arrived in the United States at the New Orleans International Airport.
On September 29, 2015, HERRERA and POLANIA met over lunch with an HSI undercover agent (“UA”) to discuss the details of the sale of the U.S. Bearer Bond to the UA for a fee of $1,500,000,000. HERRERA and POLANIA agreed to meet the UA later that day at a local bank to make the exchange.
During the meeting at the bank, POLANIA displayed a United States Bearer Bond valued at $1,000,000,000 and handed the Bearer Bond to the UA. In return for the Bearer Bond, the UA gave HERRERA a check in the amount of $750,000,000 payable to “Alma MOJICA” constituting partial payment for the Bearer Bond. HERRERA then asked the UA to give her two checks. HERRERA requested one check payable to SERRATO POLANIA and a second check payable to MOJICA HERRERA in the amount of her commission. The UA requested that HERRERA and POLANIA write their names and the amounts they wanted on an envelope. POLANIA then wrote his name with the amount of $705,000,000 and MOJICA HERRERA'S name with the amount $45,000,000. The UA then left the bank with the Bearer Bond and HERRERA and POLANIA were taken into custody by HSI agents.
If convicted, HERRERA and POLANIA face a maximum term of imprisonment of 25 years, a fine of $250,000 and up to 3 years of supervised release.
U.S. Attorney Polite reiterated that the complaint is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
“Con artists who attempt to pass bogus securities typically fabricate detailed stories as part of their scam to take advantage of potential victims,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. “You would think a $1 billion face value would be a give-away that the currency is fake, but some people are still taken in, and HSI will continue to make investigating and seeking prosecution of financial criminals one its highest priorities.”
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Customs and Border Protection in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
Tractor Supply Company Agrees to Pay Penalty and Implement Company-Wide Compliance Program to Resolve Clean Air Act ViolationsRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with Tractor Supply Company Inc. and Tractor Supply Company of Texas L.P., that resolves allegations that the companies imported and sold more than 28,000 all-terrain vehicles, off-highway motorcycles and engines that did not comply with federal Clean Air Act certification and emission information labeling requirements. Under the settlement, Tractor Supply Company will implement a compliance plan to prevent future violations and mitigation projects to reduce air pollution. Tractor Supply Company will also pay a $775,000 civil penalty.
“We will take strong action to ensure that foreign-made vehicles and engines that are imported and sold in the U.S. comply with the same Clean Air Act requirements that apply to domestically-made products,” said Assistant Attorney General John C. Cruden, for the Department of Justice’s Environment and Natural Resources Division. “Under this settlement, Tractor Supply Company will not only pay a civil penalty and mitigate the potential adverse environmental effects of having sold noncompliant vehicles and engines, but will also take steps to ensure future imports and sales of its vehicles and engines meet Clean Air Act standards.”
“Emissions from vehicles and engines can cause serious health and environmental problems, so it’s imperative that importers and vendors ensure their products comply with federal clean air standards,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “It is also critical that we ensure a level playing field for companies that follow the law -- that is a cornerstone of our environmental enforcement programs.”
The Clean Air Act requires that every vehicle and engine sold in the United States be covered by a valid, EPA-issued certificate of conformity, which manufacturers obtain by certifying that vehicles meet applicable federal emissions standards for various pollutants. EPA and the Justice Department alleged that from 2006 to 2009, Tractor Supply Company imported from China and sold in the U.S. over 28,000 vehicles and engines, representing at least 10 vehicle and engine models, that varied from the certificates of conformity that had been submitted to EPA.
The vehicles had adjustable carburetors that were not described in the applications for certification, were produced by different manufacturers than the ones specified in the applications, were manufactured prior to the dates of the certificates of conformity, had model names that were not identified on the certificates of conformity, or were significantly more powerful than described. Some engines were incorrectly certified as non-road engines rather than as recreational vehicles and some, like certain of the vehicles, were significantly more powerful than described in the allegedly applicable certificate of conformity. The Department of Justice and EPA also alleged that the emission control information labels on certain vehicles did not comply with federal regulations, and that Tractor Supply Company provided an incomplete and inaccurate response to EPA’s information request.
The settlement requires Tractor Supply Company to implement a rigorous corporate compliance plan that requires regular vehicle and engine inspections, emissions and catalyst testing, staff training and reporting for five years. Tractor Supply Company will also mitigate potential adverse environmental effects of equipment already sold to consumers, which is estimated by EPA to be up to 23.5 tons of excess hydrocarbon and nitrogen oxide emissions and 12.2 tons of excess carbon monoxide emissions.
Motorcycles, recreational vehicles and spark-ignited engines emit carbon monoxide, a gas that is poisonous at high levels in the air even to healthy people and is especially dangerous to people with heart disease. These machines also emit hydrocarbons and nitrogen oxides, which contribute to the formation of ground-level ozone, commonly known as smog. Exposure to even low levels of ozone can cause respiratory problems and repeated exposure can aggravate pre-existing respiratory diseases.
This settlement is part of an ongoing effort by the EPA to ensure that importers of vehicles and engines comply with the requirements of the Clean Air Act and that retailers exercise due diligence in ensuring that their products comply fully with the regulations. In a similar case settled with The Pep Boys - Manny, Moe & Jack (Pep Boys) in 2010, EPA required implementation of a similarly extensive corporate compliance plan.
Tractor Supply Company is a national rural lifestyle retail supply chain. The company has stores in 49 states and its headquarters is in Tennessee.
The settlement, lodged Sept. 30, 2015 in the U.S. District Court for the District of Columbia, is subject to a 30-day public comment period and approval by the federal court.
For more information on this settlement or to read the consent decree, go to http://www.justice.gov/enrd/consent-decrees.
Tobyhanna Man Sentenced to Prison for Scheme to File False Tax Returns Resulting in Unwarranted Tax RefundsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Tobyhanna man was sentenced yesterday in federal court in Scranton by Senior United States District Judge Edwin M. Kosik to serve 51 months in prison on the charges of filing fraudulent claims and income tax returns with the IRS.
According to United States Attorney Peter Smith, Brandon Hill, age 34, pleaded guilty to filing false or fraudulent claims with the IRS and assisting in the filing of fraudulent Income Tax returns in October 2013.
The charges were brought as a result of an investigation by the Internal Revenue Service, Criminal Investigations which discovered that Hill was preparing and filing false and fraudulent tax returns from his residence in Tobyhanna. It was part of the scheme that coconspirators provided Hill with their name and true social security number, from which information Hill prepared and filed tax returns with inflated earnings and manufactured false credits and adjustments, thereby inflating the refund issued by the IRS.
In addition to the prison term, Judge Kosik also ordered that Hill should pay restitution to the IRS in the amount of $291,103, and be supervised by the U.S. Probation Department for three years following his release from prison.
The Internal Revenue Service, Criminal Investigations conducted the investigation. The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.
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Three convicted of heroin, cocaine, painkiller traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Three individuals were convicted in federal court this week for their role in a drug trafficking operation involving heroin, cocaine, and oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
Donald White, 40, of Cleveland, Ohio, along with Kari Jako, 26, and Christina Crupe, 33, both of Wheeling, conspired to sell heroin, cocaine, and prescription painkillers throughout 2014 in Ohio and Marshall Counties in West Virginia.
White and Jako each pled guilty to one count of “Conspiracy.” Crupe pled guilty to a criminal Information charging her with one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” Each of the defendants faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Three Martinsburg residents convicted in Baltimore to West Virginia heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three individuals were convicted in federal court this week for their involvement in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants convicted this week participated in a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into West Virginia. The operation was interrupted in June 2015 by a 163-count federal indictment encompassing 41 defendants.
Veronica Gladden, 32, of Martinsburg, pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” She faces up to five years in prison and a fine of up to $250,000.
Scott Andrew Ours, 33, and James Miner Jenkins, 37, both of Martinsburg, each pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” They each face up to 20 years in prison and a fine of up to $1,000,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Teamsters Indicted for Attempted Extortion of Reality Television Production CompanyRead the Press Release
BOSTON – Four members of Teamsters Local 25 were arrested today in connection with attempting to extort a television production company that was filming a reality show in the Boston area in spring 2014.
“The indictment alleges that a group of rogue Teamsters employed old school thug tactics to get no-work jobs from an out of town production company,” said United States Attorney Carmen M. Ortiz. “In the course of this alleged conspiracy, they managed to chase a legitimate business out of the City of Boston and then harassed the cast and crew when they set up shop in Milton. This kind of conduct reflects poorly on our city and must be addressed for what it is – not union organizing, but criminal extortion.”
“While unions have the right to advocate on behalf of their members, they do not have the right to use violence and intimidation,” said Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The strong-arm tactics the FBI has seen in this case are egregious and our investigation is far from over. Today’s arrests should send a message to those who think they can get away with manipulating the system that they better think twice.”
Mark Harrington, 61, of Andover; John Fidler, 51, of Holbrook; Daniel Redmond, 47, of Medford; and Robert Cafarelli, 45, of Middleton, were indicted on conspiracy to extort and attempted extortion of a television production company in order to obtain no-work jobs for fellow Teamsters.
According to the indictment, beginning in spring 2014, a non-union production company began filming a reality television show in and around Boston. The company hired its own employees, including drivers, for the filming of the show and did not need work performed by union members. Beginning on June 5, 2014, the defendants conspired to force the production company to pay Local 25 members for unnecessary work by threatening physical and economic harm to the company.
Among other things, the indictment alleges that on June 10, 2014, the defendants showed up at a restaurant in Milton where the production company was filming. The defendants entered the production area and began walking in lockstep toward the doors of the restaurant where they accosted film crew members and attempted to forcibly enter the restaurant. Throughout the morning, the defendants yelled racial and homophobic slurs at the film crew and others, threatened crew and cast members, and shouted profanities. The defendants also blocked vehicles from the entryway to the set, and used physical violence and threats of physical violence to try and prevent people from entering the set.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz; FBI Acting SAC Bonavolonta; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Milton Police Chief Richard G. Wells, Jr., made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan and Kristina E. Barclay of Ortiz’s Organized Crime and Gang Unit and Public Corruption Unit, respectively.
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.
CORRECTION: This press release has been revised to reflect the dismissal of charges against Richard Jeffrey due to misidentification. A fifth defendant, Michael Ross, was arrested and charged on Oct. 1, 2015.
Springfield Woman Pleads Guilty to Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to her role in a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Lisa Lorre DeHaven, 34, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to making a false and fraudulent income tax return.
Co-defendant Cherie Christine Dupuis, 43, of Springfield, pleaded guilty on July 21, 2015, to leading the fraudulent tax return preparation conspiracy. Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
For the 2009 and 2010 tax years, DeHaven knowingly aided and abetted Dupuis, and was aided and abetted by Dupuis, in the filing of a false federal income tax return with the IRS, claiming a tax refund to which DeHaven knew she was not entitled. DeHaven provided her personal information to Dupuis, which Dupuis then used to file false income tax returns.
DeHaven admitted that she filed false federal income tax return for the 2009 and 2010 tax years that falsely listed wages that had not been earned and federal income tax withholdings that had not been withheld. As a result, DeHaven fraudulently received a total of $19,791 in fraudulent income tax refunds. DeHaven gave Dupuis approximately half of the proceeds each year.
DeHaven is among a dozen defendants who have pleaded guilty. In addition to Dupuis, co-defendants Claudia Dorsey, 33, Amanda Leigh Boyd, 33, Johnny L. Cooper, 28, and Jeannie Marie Rhodes, 34, both of Springfield, Shawna Marie Hughey, 37, of Joplin, Mo., formerly of Springfield, Heather Nicole Drennen, 32, of Cameron, Mo., formerly of Springfield, William J. Coonce, 29, of Otterville, Mo., Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield, Asia Michelle Couchman, 26, of Oak Grove, Mo., and Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield, have also pleaded guilty.
Under federal statutes, DeHaven is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Service Members' Compensation for Unlawful Foreclosures Under the Servicemembers Civil Relief Act Rises to $311 MillionRead the Press Release
The Justice Department announced today that an additional 1,461 service members and their co-borrowers are eligible to receive over $186 million for home foreclosures under the department’s settlements with five of the nation’s largest mortgage servicers. Those settlements implement the protections of the Servicemembers Civil Relief Act (SCRA). Together with other foreclosure-related compensation announced by the department in February, a total of 2,413 service members and their co-borrowers are eligible to receive over $311 million. The five mortgage servicers are JP Morgan Chase Bank N.A. (JP Morgan Chase); Wells Fargo Bank N.A. and Wells Fargo & Co. (Wells Fargo); Citi Residential Lending Inc., Citibank, NA and CitiMortgage Inc. (Citi); GMAC Mortgage LLC, Ally Financial Inc. and Residential Capital LLC (GMAC Mortgage); and Bank of America N.A., Countrywide Home Loans Inc., Countrywide Financial Corp., Countrywide Home Loans Servicing L.P. and BAC Home Loans Servicing L.P. (Bank of America).
The compensation results from the SCRA portion of the 2012 settlement known as the National Mortgage Settlement (NMS) and an earlier settlement with Bank of America, for foreclosures that took place between Jan. 1, 2006, and Apr. 4, 2012, where the servicer obtained a foreclosure without a judicial proceeding or where the servicer obtained a default foreclosure judgment without filing a proper affidavit with the court stating that the service member was in military service.
“While this compensation will provide some financial relief to more than 2,400 service members and their families, the fact is no one serving our country in the Armed Forces should ever have to worry about losing their home to an illegal foreclosure,” said Acting Associate Attorney General Stuart F. Delery. “Through the Servicemembers and Veterans Initiative, the Department of Justice will continue to use every tool at our disposal to protect service members and their families from such unjust actions.”
“We are very pleased that the men and women of the armed forces who were subjected to unlawful foreclosure judgments while they were serving our country are now receiving compensation,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We look forward, in the coming months, to facilitating the compensation of additional service members who were subjected to excess interest charges on their mortgages. We appreciate that JP Morgan Chase, Wells Fargo, Citi, GMAC Mortgage and Bank of America have been working cooperatively with the Justice Department to compensate the service members whose rights were violated.”
Section 533 of the SCRA prohibits non-judicial foreclosures against service members who are in military service or within the applicable post-service period, as long as they originated their mortgages before their period of military service began. Even in states that normally allow mortgage foreclosures to proceed non-judicially, the SCRA prohibits servicers from doing so against protected service members during their military service and applicable post-military service coverage period. Section 521 of the SCRA prohibits mortgage servicers from obtaining default judgments against service members unless they file an affidavit with the court stating whether the defendant is in military service. If the affidavit shows that the person is in military service, the court must appoint an attorney to represent the service member and may delay or “stay” the foreclosure proceeding for a minimum of 90 days.
Under the NMS, for mortgages serviced by Bank of America, Wells Fargo, Citi and GMAC Mortgage, the identified service members will each receive $125,000, plus any lost equity in the property and interest on that equity. Eligible co-borrowers will also be compensated for their share of any lost equity in the property. To ensure consistency with an earlier private settlement, JP Morgan Chase will provide any identified service member either the property free and clear of any debt or the cash equivalent of the full value of the home at the time of sale, and the opportunity to submit a claim for compensation for any additional harm suffered, which will be determined by a special consultant, retired U.S. District Court Judge Edward N. Cahn. Payment amounts have been reduced for those service members or co-borrowers who have previously received compensation directly from the servicer or through a prior settlement, such as the independent foreclosure review conducted by the Office of the Comptroller of the Currency and the Federal Reserve Board.
The NMS process for identifying service members eligible for foreclosure-related relief is now complete. The department expects that additional service members will be identified in the coming months based upon ongoing reviews of Bank of America’s non-judicial foreclosures pursuant to the earlier settlement.
The NMS also provides compensation for service members who gave proper notice to the servicer, but were denied the full benefit of the SCRA’s 6 percent interest rate cap on pre-service mortgages. The service members entitled to compensation under this provision will be identified in the upcoming months.
The following chart shows the number of service members who will be compensated by each of the servicers for both non-judicial and judicial foreclosures:
Non-Judicial Judicial
Amount of Money to be Distributed
# of Servicemembers Eligible for Compensation
Amount of Money to be Distributed
# of Servicemembers Eligible for Compensation
Bank of America
$35,369,756
286
$63,686,567
490
Citi
$14,880,578
126
$24,146,544
197
GMAC Mortgage
$13,720,588
113
$11,516,002
89
JP Morgan Chase
$32,488,293
188
$27,424,558
204
Wells Fargo
$28,290,790
239
$59,484,334
481
TOTALS
$124,750,005
952
$186,258,005
1,461
Today the parties filed a joint motion with the federal district court in Washington, D.C., to extend the term of the SCRA compensation provisions in the National Mortgage Settlement, which would allow additional time to reach all the service members entitled to foreclosure relief, as well as to complete the interest-rate reviews, which are ongoing.
Borrowers should use the following contact information for questions about SCRA payments under the National Mortgage Settlement:
- Bank of America borrowers should call Rust Consulting Inc., the settlement administrator, toll-free at 1-855-793-1370 or write to BAC Home Loans Servicing Settlement Administrator, c/o Rust Consulting Inc., P.O. Box 1948, Faribault, MN 55021-6091.
- Citi borrowers should call Citi toll-free at 1-888-326-1166.
- GMAC Mortgage borrowers should call Rust Consulting Inc., the settlement administrator, toll-free at 1-866-708-0915 or write to P.O. Box 3061, Faribault, Minnesota 55021-2661.
- JPMorgan Chase borrowers should call Chase toll-free at 1-877-469-0110 or write to P.O. Box 183224, OH-7160/DOJ, Columbus, Ohio 43219-6009.
- Wells Fargo borrowers should call the Wells Fargo Home Mortgage Military Customer Service Center toll free at 1-877-839-2359.
Service members and their dependents who believe that their SCRA rights have been violated should contact an Armed Forces Legal Assistance office. To find the closest office, consult the military legal assistance office locator at http://legalassistance.law.af.mil and click on the Legal Services Locator. Additional information about the Justice Department’s enforcement of the SCRA and the other laws protecting service members is available at www.servicemembers.gov.
Rockford Resident Convicted on Gun Charge as A Convicted FelonRead the Press Release
ROCKFORD — A Rockford resident was convicted yesterday after a two-day jury trial on a federal gun charge. The defendant, MARTEZ DICKSON, 29, was found guilty by a federal jury following a trial before U.S. District Judge Philip G. Reinhard for illegally possessing a firearm as a convicted felon.
According to the indictment and evidence at trial, on May 31, 2014, Rockford Police Officers were called to the McDonald’s on 11th Street after Dickson was discovered asleep in the driver’s seat of a car parked in the drive-thru lane. When officers arrived on the scene, Dickson was found in possession of a loaded 9 mm handgun. Dickson previously had been convicted of a felony. As a result, he was prohibited from possessing a firearm.
Dickson was originally charged in state court and was transferred to federal court where he was charged under tough federal firearms laws as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state, and federal law enforcement to attack gun crimes. The cornerstone of the program is that every defendant committing an offense involving a gun will be reviewed for possible federal prosecution in order to obtain the harshest penalties for the worst offenders. Additional information about Project Safe Neighborhoods may be found at: www.psn.gov.
Dickson faces a maximum sentence of life imprisonment. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines. Dickson’s sentencing is set for December 28, 2015, at 9:00 a.m.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Joseph Bruscato, Winnebago County State’s Attorney; and Chet Epperson, Rockford Police Chief. The government is represented by Assistants U.S. Attorney Talia Bucci and Margaret J. Schneider.
Rochester Man Pleads Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jonathan Rivera, 34, of Rochester, NY, who was convicted of possession of a firearm and ammunition while being a convicted felon, was sentenced to 50 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated on May 24, 2014, the Rochester Police Department received a 911 call regarding a man pointing a shotgun at someone through the window of a car he was driving in the area of Upper Falls Boulevard and North Clinton Avenue.
Officers responded and saw a car that matched the vehicle description they had been given speeding in the area of Oakman Street. The vehicle was pulled over in the parking lot of a restaurant located on Upper Falls Boulevard at North Clinton Avenue. Rivera jumped out of the car, put his hands in the air and was detained. Officers saw a Winchester 1300 Ranger slide action 12 gauge shotgun in the defendant’s car in between the driver’s seat and the driver’s side door, as well as four shotgun rounds in the cup holder in the center console.
In August of 2007, Rivera was convicted in Livingston County of Burglary in the Second Degree.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division and members of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Retired Buffalo Police Officer Sentenced to Prison for Defrauding Injured on Duty ProgramRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Patrick S. O'Mara, 54, of Buffalo, NY, who was convicted of wire fraud related to falsely claiming he had been injured on duty as a police officer, was sentenced to six months in prison and two years supervised release by Senior U.S. District Judge William M Skretny. The defendant was also ordered to pay restitution to the City of Buffalo totaling $103,946.28.
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that in February, 2004, the defendant, a Buffalo Police Officer, was placed on Injured on Duty Status (IOD) by the City of Buffalo. O'Mara was placed on IOD status for cervical and lumbar strains suffered while on duty. The defendant remained on IOD status until October, 2004 when he was ordered to return to light duty. In 2005, O'Mara again claimed to have injured his right arm, this time while purportedly lifting two reams of copy paper. While the defendant did not report the injury to his superiors until 23 days later, the defendant was placed on IOD status once again in September, 2005, where he remained up until 2102, the time he was initially arrested and charged in this case. Following the defendant’s arrest, the defendant filed for retirement from the Police Department.
During the course of the investigation, the Government learned that the defendant's primary care physician did not recommend that O'Mara return to work. Contradicting this position, several independent medical exams concluded that the defendant was not permanently disabled. One doctor noted that the defendant walked into his office using a cane, but later witnessed O’Mara walking in the parking lot without any limp.Additional investigation determined that the defendant was working another job while simultaneously claiming he was too injured to perform even light duty for the Buffalo Police Department. The work involved serving as a paid musical director and church organist which involved the use of the same arm the defendant claimed he injured in 2005 while lifting the lifting the two reams of paper.
At the time of the defendant’s arrest in May, 2012, the defendant admitted that he was capable of performing light duty for the Police Department. The defendant claimed that the reason he stayed on IOD was that he considered it to be “demeaning” to sit at a desk and answer the telephone, and further, that the pay he received while on IOD status was an incentive to remain off-duty since the pay was tax-free. In Court, the defendant attributed his fraud to being “greedy.”
O'Mara's was one of two Buffalo Police Officers charged with defrauding the IOD Program. Since the filing of both cases by the Government, the number of Buffalo Police officers on IOD status has declined from well over one hundred officers to under 20. The second defendant charged in connection with the IOD investigation, Robert Quintana, is pending trial for mail and health care fraud. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Penn National Racing Official Charged with Fraud in Race Rigging SchemeRead the Press Release
HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a racing official at Penn National Race track in Grantville has agreed to plead guilty to wire fraud for accepting money and other gratuities in exchange for providing inside information to trainers on which races to enter their horses in order to have a better chance at winning.
According to United States Attorney Peter Smith, Craig Lytel, age 60, of Hershey, Pennsylvania was an employee of the Hollywood Casino at Penn National Race Track (Penn National) who served as a racing official at the track. He is charged with wire fraud alleging that he was the recipient of an interstate wire transfer of $1,000 from a bank in Kentucky to Lytel’s bank in Pennsylvania allegedly in exchange for providing inside information on the makeup of horse races at Penn National so that the trainers would know the composition of the race and enter their horses in races in which they have a better opportunity to win. It is alleged that Lytel deprived his employer of his honest service by accepting cash, dinners, gift cards and golf outings in exchange for the information.
Lytel is licensed as a racing official at Penn National and falls under the rules and regulations that govern licensees with the Pennsylvania Horse Racing Commission. Lytel was privy to information concerning the horses entered in a race while the race entries are being filled by the racing office. This information gives a horse owner/trainer an advantage as to which race to enter their eligible horse in that it would give the horse a better chance of success. Such information, coupled with the knowledge of what other horses are in a given race, could also provide an opportunity for collusion on the behalf of owner/trainers or even determine if a race will be filled enough to run.
The government filed a plea agreement with the defendant which is subject to the approval of the court.
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation and the Pennsylvania Horse Racing Commission as part of an ongoing investigation of racing at Penn National.
Prosecution of the case is assigned to Assistant United States Attorney William A. Behe.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Palm Bay Man Sentenced to for Receipt and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Harley Robert Katzaman (29, Palm Bay) to eight years and six months in federal prison for receipt and possession of child pornography. The Court also ordered him to forfeit a laptop computer that had been used to commit the offenses. Katzaman pleaded guilty on April 29, 2015.
According to court documents, in November 2014, an FBI Task Force agent in Brevard County began an undercover operation to identify persons using peer-to-peer file sharing software to distribute images of child pornography on the Internet. The agent identified a residence in Palm Bay where a computer was downloading child pornography. During the execution of a search warrant at that residence, one of the occupants told agents that he had given his Wi-Fi password to his neighbor, later identified as Katzaman. Agents confronted Katzaman, who confessed that he had recently been accessing his neighbor’s Wi-Fi and for several years had been using a file-sharing program to search for and download child pornography. A forensic examination of his laptop revealed 22 movie files containing child pornography that had been downloaded over a two-year period.
This case was investigated by the Federal Bureau of Investigation Task Force in Brevard County. It was being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.justice.gov/psc.
New York Man Pleads Guilty to Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Marcos Rogelio Blake (24, New York) has pleaded guilty to manufacturing and passing counterfeit Federal Reserve Notes (FRN), and possessing counterfeit business checks. He faces a maximum penalty of 20 years in federal prison for the manufacturing and possession charge and for the possession charge, and up to 10 years in federal prison for the counterfeit check charge. Blake has also agreed to forfeit the monetary proceeds he obtained by passing of the counterfeit notes, as well as the computer media he used to manufacture them. A sentencing date has not yet been set.
According to the plea agreement, in January 2015, Blake and his co-defendants, Ralph Darel Lipsey and Leon White, passed or attempted to pass counterfeit FRNs at multiple businesses in Nassau County. Law enforcement officers subsequently issued an alert for the three individuals’ vehicle. On January 17, 2015, a deputy from the Nassau County Sheriff’s Office stopped the vehicle with the three men inside. Blake, who was driving the vehicle, was detained due to a suspended license. During a search, the deputy found genuine and counterfeit FRNs on Blake. An inventory search of the vehicle yielded additional counterfeit notes, two bags, and a lock box. A search of one bag belonging to Blake revealed counterfeit business checks, including two that were made out to him. The lock box contained a multi-function printer and supplies used to manufacture counterfeit FRNs.
Co-defendants Lipsey and White are scheduled for trial on November 2, 2015.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Nassau County Sheriff’s Office and the U.S. Secret Service, Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RASHAD LEWIS, age 37, a resident of New Orleans, was sentenced today after previously pleading guilty to a one-count Indictment charging him with violating the Federal Controlled Substances Act.
U.S. District Judge Ivan L.R. Lemelle sentenced LEWIS to 27 months in prison, to be followed by 3 years of supervised release.
According to court records, LEWIS possessed with the intent to distribute and distributed a mixture or substance containing a detectable amount of cocaine base, a Schedule II controlled substance.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
New Orleans Man Pleads Guilty to Ethylone Drug ChargeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAI VAN TRAN, age 33, a resident of New Orleans, pled guilty today to a one-count Bill of Information charging him with attempted possession with intent to distribute ethylone.
According to court records, on March 19, 2014, the United States Postal Inspection Service in New Orleans identified an International Express Mail parcel from China, addressed to a local restaurant, that contained approximately two kilograms of ethylone powder. Ethylone, a drug similar to MDMA (“ecstacy” or “molly”), is a positional isomer of butylone, which has been prohibited as a Schedule I drug controlled substance by final emergency scheduling order of the Deputy Administrator of the Drug Enforcement Administration published March 7, 2014. The ethylone was removed from the intercepted parcel and replaced with approximately two kilograms of a decoy non-drug powder, in anticipation of making an undercover delivery of the parcel on the following day. TRAN eventually appeared at the restaurant and received the parcel.
TRAN faces a sentence of up to twenty years incarceration. U.S. District Judge Martin L.C. Feldman scheduled sentencing for February 17, 2016.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service and the Tactical Diversion Squad of the New Orleans Field Division of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
New Jersey man sentenced for oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Marshall County, West Virginia resident Dennis Ferretti, 37, originally of Gibbstown, New Jersey, was sentenced today to 46 months in prison for prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014, Ferretti conspired with other individuals to possess and distribute oxycodone in Wetzel and Marshall Counties in West Virginia. He pled guilty in June 2015 to one count of “Drug Conspiracy - Oxycodone.”
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided
New Hampshire Man Sentenced on Firearm ChargeRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced that Richard Lariviere, 45, of Nashua, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire to 70 months imprisonment after pleading guilty to being a Felon in Possession of a Firearm. Upon his release, Lariviere will be placed on three years of supervised release which is monitored by the United States Probation Office.
On May 20, 2014, members of the Nashua Police Department obtained a search warrant for a Mercedes operated by Lariviere. The officers stopped the Mercedes in the parking lot of the Country Barn Motel as Lariviere was driving out of the parking lot. The detectives executed the search warrant and located a loaded, 7.65mm Walther semiautomatic handgun with serial number 20384 within a black bag on the vehicle's front passenger seat. The police subsequently applied for and received permission to execute a search warrant for Lariviere’s hotel room where the police found one box of .22 caliber ammunition in addition to Lariviere's license and a check stub for Lariviere.
During the sentencing hearing, the government also introduced evidence that Lariviere sold four additional firearms in exchange for drugs in Lawrence, Massachusetts. Lariviere was prohibited from possessing a firearm or ammunition because he was previously convicted of Felonious Assault on a Peace Officer in the State of Ohio, a crime punishable by more than one (1) year imprisonment.
The case was investigated by Nashua Police Department and ATF. The case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Militia Man Found GuiltyRead the Press Release
BROWNSVILLE, Texas – A member of a citizen group known as “Rusty’s Rangers” or “Rusty’s Regulators” has been found guilty of four counts of felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson. Kevin Lyndel Massey, 48, of Quinlan was found guilty this afternoon following a bench trial before the U.S. District Judge Andrew Hanen.
According to court records, the group consisted of citizens who mounted armed patrols in the Rio Grande area allegedly in search of and to possibly apprehend aliens attempting to enter the U.S. illegally. On Aug. 29, 2014, law enforcement agents were pursuing suspected illegal aliens in heavy brush when they encountered an individual of the group. A Border Patrol agent allegedly perceived him as a threat and discharged his weapon, but did not strike the armed citizen.
Massey, following the shooting, arrived in the area armed with a .45 caliber pistol and a 7.62 x 39 mm rifle. According to court records, he was thereafter identified by law enforcement who learned of his prior criminal history which included burglary. Because of this criminal history, Massey is prohibited from possessing a firearm.
The court heard that Massey was later arrested Oct. 20, 2014, outside a motel in Brownsville. At the time, according to trial testimony, he was armed with a .45 caliber pistol, while another .45 caliber pistol was thereafter located in his motel room. At that time, more than 2600 rounds of ammunition were seized in connection with the search of his truck and motel room.
Judge Hanen has set sentencing for Jan. 4, 2016, at which time he faces up to 10 years in prison and up to a $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation conducted by FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cameron County Sheriff’s Department. Assistant U.S. Attorneys William Hagen and Jason Corley prosecuted the case.
Mexico Extradites 13 Defendants to Face Charges in the United StatesRead the Press Release
Thirteen individuals, including alleged high-level cartel members, were extradited from Mexico to the United States to face charges pending in various jurisdictions, including the murders of a U.S. Consulate employee and two others, and other violent crimes and drug trafficking-related offenses.
Attorney General Loretta E. Lynch, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration, FBI Director James B. Comey and Acting Director David Harlow of the U.S. Marshals Service made the announcement.
In their first meeting on June 16, 2015, Attorney General Lynch and Attorney General Arely Gómez González of Mexico agreed to begin a new era of collaboration between the two nations to fight international organized crime. The extraditions announced today are a result of these efforts.
“Today’s extraditions would not have been possible without the close collaboration and productive relationship the Department of Justice enjoys with officials at the highest levels of law enforcement in Mexico,” said Attorney General Lynch. “I am grateful to our Mexican counterparts not only for their assistance with this important matter, but also for their extraordinary efforts and unwavering partnership in our ongoing fight against international organized crime. I look forward to all that we will continue to accomplish in the service of that mission as we build on these achievements together in the days and months ahead.”
The following 12 defendants were placed in the custody of U.S. Marshals Service late this afternoon. An additional defendant was also extradited, but the case remains under seal until the defendant’s initial appearance tomorrow.
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Luis Umberto Hernandez Celis, aka Pack; Alberto Nunez-Payan, aka Fresa, Fresco and 97, and Ricardo Valles de la Rosa, aka Chino, are alleged members of the Barrio Azteca gang and were charged on March 9, 2011, in Western District of Texas with participating in the March 13, 2010, murders in Juarez, Mexico, of U.S. Consulate employee Leslie Ann Enriquez Catton, her husband Arthur Redelfs and Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee.
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Jorge Costilla-Sanchez, aka El Cos, is an alleged former leader of the Gulf Cartel and Los Zetas, and was charged on April 10, 2002, in the Southern District of Texas with cocaine and marijuana importation and distribution, money laundering, and threatening federal law enforcement officers with assault, kidnapping or murder. Costilla-Sanchez was among the FBI’s most wanted until his arrest by Mexican authorities on Sept. 12, 2012.
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Edgar Valdez Villarreal, aka La Barbie, and Carlos Montemayor were allegedly high-level members of the Sinaloa and Beltran-Leyva Cartels and were charged on June 11, 2010, in the Northern District of Georgia with conspiring to import and distribute cocaine, as well as conspiring to launder money by transporting drug money from the United States into Mexico. Valdez Villarreal also faces narcotics-related charges in the Eastern District of Louisiana.
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Jean Baptiste Kingery was charged on Nov. 20, 2013, in the Central District of California with arms trafficking related to the illegal exportation of defense article and munitions from the United States to Mexico. Kingery is expected to make his initial appearance in the District of Arizona on Oct. 1, 2015.
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Aureliano Montoya-Pena, aka La Changa, was among 20 defendants charged on Nov. 2, 2011, in the Northern District of Illinois with conspiracy to possess and distribute more than five kilograms of cocaine and various other offenses related to transporting millions of dollars in drug proceeds between Chicago and Mexico.
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Julio Cesar Valenzuela-Elizalde, aka The Pilot, was among eight defendants charged on Dec. 19, 2002, in the District of Arizona with an international methamphetamine distribution conspiracy, conspiracy to possess with intent to distribute methamphetamine and conspiracy to import a controlled substance.
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Martin Daniel Castillo-Rascon was charged on June 12, 2013, in the Western District of Texas with conspiracy to possess with intent to distribute a controlled substance, conspiracy to import a controlled substance, possession with intent to distribute a controlled substance, importation of a controlled substance and aiding and abetting.
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Antonio Reynoso-Gonzalez was charged in 1995 in the Southern District of California along with Joaquin Guzman-Loera, aka El Chapo, and 22 others with conspiracy to import and to possess cocaine with intent to distribute.
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Antonio Gonzalez Platas was charged in the state of Arkansas with rape.
The charges and allegations in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
Today’s extraditions were coordinated by the Criminal Division’s Office of International Affairs, the FBI, the DEA and the U.S. Marshals Service. The federal cases are being handled by prosecutors in the Criminal Division’s Narcotic and Dangerous Drug Section and Organized Crime and Gang Section and in the U.S. Attorney’s Offices in the District of Columbia, Central District of California, Northern District of Georgia, Northern District of Illinois, Eastern District of Louisiana, Southern District of Texas and the Western District of Texas. The state case is being handled by the Office of the Prosecuting Attorney for Arkansas.
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Mexican Cartel Leaders Edgar Valdez-Villarreal, a.k.a. “La Barbie,” and Carlos Montemayor Gonzalez, Extradited to the United States to Face Charges in AtlantaRead the Press Release
ATLANTA – Edgar Valdez-Villarreal, a.k.a. “La Barbie,” and Carlos Montemayor Gonzalez, who are charged in the Northern District of Georgia with importing drugs and money laundering, are among 13 defendants extradited from Mexico this afternoon to face pending charges in the United States. Valdez and Montemayor are alleged to be high-level members of Mexico’s Beltran-Leyva Cartel and were arrested in Mexico on the Atlanta, Georgia, charges in 2010.
“Valdez and Montemayor are charged with leading the efforts for a top Mexican cocaine cartel with sending drugs into the United States while funneling millions of dollars in cash back into Mexico,” said U.S. Attorney John Horn. “Given Atlanta’s status as a distribution hub for the Mexican cartels, this case demonstrates our commitment to work internationally and include the cartels’ leadership in our cases.”
Daniel R. Salter, the Special Agent in Charge of the Drug Enforcement Administration in Atlanta commented, “Today’s extraditions are a great outcome for cooperative law enforcement. DEA, the United States Attorney’s Office (Northern District of Georgia) and our federal, state, local, and foreign partners remain committed to ensuring the safety and security of the United States. Citizens can rest assured that DEA will continue to target these drug trafficking organization’s intent of making a living on the backs of addiction.”
Attorney General Loretta Lynch, Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division, Administrator Chuck Rosenberg of the Drug Enforcement Administration, FBI Director James Comey and Acting Director David Harlow of the U.S. Marshals Service announced the extraditions today in Washington.
The extraditions are a result of ongoing, high-level discussions among law enforcement officials from the start of the tenures of Attorney General Loretta E. Lynch of the United States and Attorney General Arely Gómez González of Mexico. In their first meeting on June 16, 2015, the attorneys general agreed to begin a new push for collaboration between the two nations and committed to working closely to fight international organized crime.
“Today’s extraditions would not have been possible without the close collaboration and productive relationship the Department of Justice enjoys with officials at the highest levels of law enforcement in Mexico,” said Attorney General Lynch. “I am grateful to our Mexican counterparts not only for their assistance with this important matter, but also for their extraordinary efforts and unwavering partnership in our ongoing fight against international organized crime. I look forward to all that we will continue to accomplish in the service of that mission as we build on these achievements together in the days and months ahead.”
Valdez and Montemayor are accused of supplying tractor trailer trucks full of cocaine from Mexico to the Eastern United States on behalf of the Sinaloa and Beltran-Leyva cartels. They were indicted in the Northern District of Georgia on June 11, 2010, with conspiring to import and distribute cocaine, as well as conspiring to launder money by transporting drug money from the United States into Mexico. Valdez Villarreal is also indicted in the Eastern District of Louisiana on narcotics-related charges.
http://www.dea.gov/divisions/atl/2010/atlanta061110p.html
Valdez, Montemayor, and the other 11 defendants were extradited from Mexico this afternoon and were placed in the custody of U.S. Marshals. They will proceed to make initial appearances in federal district court in the coming days.
The remaining 11 defendants include:
• Luis Umberto Hernandez Celis, aka Pack; Alberto Nunez-Payan, aka Fresa, Fresco and 97, and Ricardo Valles de la Rosa, aka Chino, are alleged members of the Barrio Azteca gang and were charged on March 9, 2011, in Western District of Texas with participating in the March 13, 2010, murders in Juarez, Mexico, of U.S. Consulate employee Leslie Ann Enriquez Catton, her husband Arthur Redelfs and Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee.
• Jorge Costilla-Sanchez, aka El Cos, is an alleged former leader of the Gulf Cartel and Los Zetas, and was charged on April 10, 2002, in the Southern District of Texas with cocaine and marijuana importation and distribution, money laundering, and threatening federal law enforcement officers with assault, kidnapping or murder. Costilla-Sanchez was among the FBI’s most wanted until his arrest by Mexican authorities on Sept. 12, 2012.
• Jean Baptiste Kingery was charged on Nov. 20, 2013, in the Central District of California with arms trafficking related to the illegal exportation of defense article and munitions from the United States to Mexico. Kingery is expected to make his initial appearance in the District of Arizona on Oct. 1, 2015.
• Aureliano Montoya-Pena, aka La Changa, was among 20 defendants charged on Nov. 2, 2011, in the Northern District of Illinois with conspiracy to possess and distribute more than five kilograms of cocaine and various other offenses related to transporting millions of dollars in drug proceeds between Chicago and Mexico.
• Julio Cesar Valenzuela-Elizalde, aka The Pilot, was among eight defendants charged on Dec. 19, 2002, in the District of Arizona with an international methamphetamine distribution conspiracy, conspiracy to possess with intent to distribute methamphetamine and conspiracy to import a controlled substance.
• Martin Daniel Castillo-Rascon was charged on June 12, 2013, in the Western District of Texas with conspiracy to possess with intent to distribute a controlled substance, conspiracy to import a controlled substance, possession with intent to distribute a controlled substance, importation of a controlled substance and aiding and abetting.
• Antonio Reynoso-Gonzalez was charged in 1995 in the Southern District of California along with Joaquin Guzman-Loera, aka El Chapo, and 22 others with conspiracy to import and to possess cocaine with intent to distribute.
• Antonio Gonzalez Platas was charged in the state of Arkansas with rape.
The charges and allegations in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
Today’s extraditions were coordinated by the Criminal Division’s Office of International Affairs, the FBI, the DEA and the U.S. Marshals Service. The federal cases are being handled by prosecutors in the Criminal Division’s Narcotic and Dangerous Drug Section and Organized Crime and Gang Section and in the U.S. Attorney’s Offices in the District of Columbia, Central District of California, Northern District of Georgia, Northern District of Illinois, Eastern District of Louisiana, Southern District of Texas and the Western District of Texas. The state case is being handled by the Office of the Prosecuting Attorney for Arkansas.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Massachusetts Man Sentenced on Charges of Causing Misbranded Drugs to Be Introduced into Interstate CommerceRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced that Mushed Salam, 47, of Lowell, Massachusetts, was sentenced on September 28th to one year probation in U.S. District Court after pleading guilty to Causing Misbranded Drugs to be Introduced into Interstate Commerce. Salam was also ordered to perform 50 hours of community service, pay a $1000 fine and a money forfeiture of $18,245.00.
On October 3, 2012, the North Andover, Massachusetts Police Department responded to a call for a female having seizures due to a possible drug overdose. The female was interviewed at the Lawrence General Hospital and stated that she had been using “Crazy Monkey” which she purchased at the Richdale convenience store located at 4 Main St., North Andover, Massachusetts. “Crazy Monkey” is a synthetic cannabinoid.
The North Andover Police Department and DEA conducted an investigation using a confidential informant (CI) who agreed to purchase synthetic cannabinoids from the convenience store. From October 9, 2012 through June 20, 2013, on four separate occasions, the confidential informant purchased a variety of the “Monkey” products, all synthetic cannabinoids, from the convenience store.
The synthetic cannabinoids were misbranded in that: (1) the product was sold as potpourri when in fact the product was intended for use as a drug for human consumption; (2) its label, in package form, failed to include the name and address of the manufacturer, packer, or distributor; (3) its labeling did not bear adequate directions for use; and (4) its labeling did not bear such adequate warnings against use in those pathological conditions and by children.
The case was investigated by the Drug Enforcement Administration (DEA) and the North Andover Police Department. This case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Massachusetts Man Pleads Guilty to Firearms ChargesRead the Press Release
CONCORD, N.H. – Lazaro Alon, 40, of Lawrence, Massachusetts, pleaded guilty in United States District Court for the District of New Hampshire to conspiracy to make a false statement during the acquisition of a firearm announced Acting United States Attorney Donald Feith.
A clerk at Stateline Guns Ammo and Archery, a federally licensed firearms dealer located in Plaistow, New Hampshire, contacted ATF regarding a suspicious female who had made several firearms purchases. An investigation revealed that from May 20, 2013 through June 4, 2013, the female purchased 11 firearms. The agents met with the female who subsequently admitted that she purchased the firearms for Alon.
The investigation revealed that the female purchased the first firearm with her own money and was reimbursed by Alon. The next ten purchases were made with money provided by Alon.
The co-conspirator also admitted that both she and Alon used a tool to remove the serial numbers from the firearms while at Alon’s apartment in Lawrence. ATF and the Lawrence Police Department subsequently executed a search of a vehicle at Alon’s apartment where they located the tool used to remove the serial numbers from the firearms and items taken in the staged burglary.
“The straw purchase of firearms is a major source for illegal gun trafficking,” stated Acting United States Attorney Donald Feith. “We are committed to investigating, identifying and prosecuting those individuals who enlist others for the purpose of illegally obtaining firearms.”
Daniel J. Kumor, ATF Special Agent in Charge, Boston Field Division stated: “Firearms trafficking remains ATF's top priorities and this investigation is another example of how through the use of a straw purchase, firearms are trafficked and end up in the hands of criminals. Moreover, by obliterating the firearms serial numbers these defendants tried to cover their tracks in an effort to make it impossible for law enforcement to identify the source of these firearms. But through the vigilance and cooperation from a Federal Firearms Licensee in this case, law enforcement was able to successfully disrupt another firearms trafficker”
Alon faces a maximum sentence of five years imprisonment. Alon is scheduled to be sentenced on January 8, 2016. Alon was detained pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Lawrence, Massachusetts Police Department. The case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Marion Couple Sentenced to Federal Prison for Enticement of a MinorRead the Press Release
A Marion husband and wife who enticed a minor to engage in criminal sexual activity were sentenced to federal prison today.
Michael Darling, age 21, received a sentence of 30 years’ imprisonment after a June 4, 2015 guilty plea to one count of enticement of a minor. Jennifer Darling, age 27, received a sentence of over 19 years’ imprisonment after a June 8, 2015 guilty plea to one count of enticement of a minor. Evidence at the sentencing hearings showed that both defendants communicated with a 15-year-old girl using Facebook and other electronic means. Both defendants enticed the victim to send them sexually explicit depictions of herself and to engage in sex acts. The victim met the defendants at their residence, where both defendants performed sex acts with her.
Both defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Michael Darling was sentenced to 360 months’ imprisonment, a special assessment of $100 was imposed, and he must also serve a 30-year term of supervised release. Jennifer Darling was sentenced to 235 months’ imprisonment, a special assessment of $100 was imposed, and she must also serve an 8-year term of supervised release. Both defendants must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Jones County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-39.
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Man Sentenced to Prison for Motion Picture Tax Credit ScamRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that DANIEL GARCIA, age 38, was sentenced today by Senior United States District Court Judge James J. Brady to 6 months in federal prison and 6 months in a halfway house. GARCIA was also ordered to pay $900,000 in restitution to the State of Louisiana.
GARCIA previously pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”). At his guilty plea, GARCIA admitted that he owned and operated DMG Holdings, LLC, and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures.
Between February 10, 2009 and March 31, 2010, GARCIA applied for, and received, tax credits from the Louisiana Economic Development Office (“LED”) for various movies. The LED is a state entity with the mission to lead economic development for the State of Louisiana. LED operated the Tax Credit Program, which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable. In this case, however, GARCIA admitted that he conspired with at least one other individual to make a series of financial transfers, which created cancelled checks, which were later used to falsely reflect $3,000,000 of expenditures that had purportedly been incurred in motion picture productions. These false expenditures allowed GARCIA to be awarded tax credits, and GARCIA admitted that he was not entitled to $900,000 of the tax credits he received.
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
Liberal Man Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberal, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Timothy Curless, 53, of Liberal, pleaded guilty before U.S. Magistrate Judge David P. Rush to receiving and distributing child pornography over the Internet between Nov. 4, 2012 and April 19, 2013.
Curless originally pleaded guilty on Sept. 18, 2013, but later withdrew his guilty plea when he learned that his prior Kansas conviction for two counts of aggravated indecent liberties with a child would increase his mandatory minimum prison sentence from five years to 15 years. Curless pleaded guilty to the same offense today.
According to court documents, a law enforcement officer was conducting an undercover investigation into the distribution of child pornography by suspect(s) using file-sharing software. On two separate occasions the officer downloaded images of child pornography from Curless’s computer. Among those images were children who have not reached puberty and a child as young as three years of age. When officers executed a search warrant they learned that Curless had been using his neighbor’s wi-fi network in order to access the Internet.
Under federal statutes, Curless is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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."