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10 November 2015
Three Charged with Hacking into E*Trade and Scottrade in Massive Data Breach and Identity Theft SchemeRead the Press Release
ATLANTA – Three individuals were charged in an indictment unsealed today with an international scheme to hack into E*TRADE Financial Services Corporation and Scottrade Financial Services, Inc. to steal sensitive personal identifying information from millions of customers and build their own securities brokerage using the companies’ proprietary databases.
“The massive scale of these data breaches is staggering. But the methods and goals of this scheme are all too familiar and highlight the critical threat that cyber-crime poses to our nation’s economic security,” said U.S. Attorney John Horn. “The indictment alleges that the defendants launched sophisticated cyber-attacks against financial institutions and stole personal identifying information of millions of customers. The charges announced today send a clear message that international borders will not impede our efforts to prosecute cyber-criminals who seek to breach our computer networks.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “This investigation, and the charges announced today, clearly illustrates that the FBI and its partners will not tolerate attacks of any kind on our nation’s financial infrastructure, and will continue to pursue those responsible as part of our collective effort to protect our citizens’ personal information. While corporations that hold our citizens’ data continue to be the targets of the evolving cyber threat, they are also the key to defeating it. This investigation is a prime example of how collaborative efforts between the public and private sector lead to tangible results in the fight against digital crimes.”
According to the indictment unsealed today: Between November 2012 and August 2014, Gery Shalon, a/k/a/ Garri Shalelashvili, Joshua Samuel Aaron, and an unidentified third hacker conspired to hack into the computer networks of financial institutions and media companies to steal customer data. In online chats, Shalon and the hacker discussed their plan to use the stolen customer contact information to build their own brokerage database for marketing stocks to potential investors, boasted about their early success in “cold-calling” investors, and expressed hope that a bank would pay to acquire their database.
The indictment alleges that Shalon directed the hacker to breach companies with large customer databases of investors, including E*TRADE and Scottrade, and the hacker infiltrated their networks using sophisticated hacking techniques. In late November 2013 and early December 2013, the hacker breached Scottrade’s network and E*TRADE’s network using overseas servers provided by Shalon. After gaining a foothold in both networks, the hacker asked Shalon for the login credentials of a customer account at both companies in order to locate their customer databases. In response, Aaron provided Shalon with login credentials that Aaron wrongfully obtained from a United States victim, including the victim’s username and password, and Shalon sent the information to the hacker.
The indictment alleges that, using the victim’s login credentials, the hacker located E*TRADE’s and Scottrade’s customer databases. Shalon and the hacker discussed the personal identifying information information visible in the databases, and at Shalon’s direction, the hacker exported stolen customer data, including names, residential addresses, phone numbers, and email addresses, to an overseas server provided by Shalon.
In total, the defendants compromised customer databases containing the personal information of more than 10 million customers of E*TRADE and Scottrade alone.
A federal grand jury in Atlanta, Ga., returned a 10-count sealed indictment against Shalon, Aaron, and the third hacker on October 27, 2015. The indictment was unsealed today. The indictment charges them with one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit computer fraud, two counts of computer fraud, and three counts of aggravated identity theft. Shalon, 31, a resident of Israel, was arrested by Israeli law enforcement in Savyon, Israel on July 21, 2015, and remains in custody in Israel, where extradition proceedings are pending. Aaron, 31, a United States citizen and resident of Israel, is not in custody.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with valuable assistance provided by the New York Field Office of the United States Secret Service. E*TRADE and Scottrade cooperated fully in the investigation. Foreign law enforcement partners also made significant contributions to the investigation, including the exceptional support and cooperation provided by the National Cyber Unit of the Israel Police. Valuable assistance also was provided by the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of New York.
Assistant United States Attorney Nathan P. Kitchens is prosecuting the case.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Texas Woman Pleads Guilty in Credit Card Fraud SchemeRead the Press Release
BOISE – Brooke Ashley Darby, 29, of Fort Worth, Texas, pleaded guilty today to one count of wire fraud and one count of aggravated identity theft for her role in a credit card fraud scheme that targeted local retailers in June 2015, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Darby traveled to the District of Idaho, along with her co-defendant, for the purpose of making fraudulent purchases of gift cards and merchandise from retail stores, using stolen credit card numbers encoded onto stock gift cards. Darby admitted to obtaining the stock gift cards encoded with unauthorized credit card numbers, and making purchases at retail stores on June 23 and June 24, 2015. In all, Darby admitted that, together, she and her co-defendant purchased approximately $13,095.90 in gift cards and merchandise with the fraudulently encoded gift cards. Upon her arrest, Darby and her co-defendant were found in possession of approximately 250 gift cards encoded with unauthorized credit card numbers. As part of her plea, Darby also agreed to forfeit a sum of money equivalent to the proceeds in gift cards and merchandise obtained by virtue of the charged offenses.
Wire Fraud is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not more than three years, and a $100 special assessment. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100. Sentencing is set for January 25, 2016, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the United States Secret Service and the Boise Police Department.
Texas Man Charged with Wire Fraud and Money LaunderingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Bradley Boyd, 43, of Rhome, Texas, was charged by criminal complaint with wire fraud and money laundering. The charges carry a maximum penalty of 20 years in prison and a $500,000 fine.Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Boyd was president of River Cities Sawing (RCS), a concrete business involved in highway infrastructure projects. RCS entered into a factoring arrangement with a New York financing company, Durham Funding.
Boyd caused RCS to prepare and submit to Durham Funding approximately 60 fraudulent invoices totaling $1,500,000. Based on the fraudulent invoices, the financing company sent RCS approximately $970,000 between March 1, 2011 and July 1, 2011. The defendant used the money to make payments on loans, pay RCS expenses and pay personal expenses.
Boyd made an initial appearance today before U.S. Magistrate Judge Marian W. Payson and was released on conditions. He is due back in court on February 3, 2016, at 9:00 am.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
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.
Texas Fugitive Sentenced to Prison for Aggravated Identity Theft and Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – Senior United States District Judge Henry Lee Adams today sentenced John Thomas Humphreys (46, Texas) to four years and six months in federal prison for manufacturing counterfeit Federal Reserve notes and for false representation of a Social Security number. As part of the sentence, the Court also ordered Humphreys to pay restitution to the businesses that he had defrauded.
According to the plea agreement, on February 2, 2015, the Green Cove Springs Police Department received information that two individuals, later identified as Humphreys and Joe Eugene Loving, were manufacturing counterfeit Federal Reserve notes in their hotel room at the Astoria Hotel in Clay County. The two men had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by the Clay County Sheriff’s Office. Deputies found Loving in possession of a counterfeit $100 bill following his arrest.
During an interview with law enforcement, Humphreys and Loving stated that they had been involved in a drug deal in Texas in December 2014 and had been on the run ever since. They estimated printing and passing at least $10,000 in counterfeit currency. In addition, they printed counterfeit checks using the identities of others.
During a subsequent search of the hotel room, agents located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media that had been used to manufacture the counterfeit currency.
On September 11, 2015, Loving pleaded guilty to manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. His sentencing hearing is scheduled for December 1, 2015.
A third individual, Paul Corbin Pennington, Jr., was also charged in this case for passing counterfeit currency. Pennington, a maintenance worker at the Astoria Hotel, loaned Loving and Humphreys his computer. Loving and Humphreys then used the computer to print counterfeit checks. Pennington confessed to law enforcement that he had passed counterfeit currency in Clay County. On October 13, 2015, Pennington was sentenced to 141 days in federal prison and was ordered to pay restitution to the businesses that he had defrauded.
This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the United States Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Taos Pueblo Man Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE—Keith E. Lucero, 27, a member and resident of Taos Pueblo, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 37 months in federal prison followed by three years of supervised release for his conviction on involuntary manslaughter and assault resulting in serious bodily injury charges.
Lucero was arrested on July 28, 2014, on an indictment charging him with killing an Indian man and assaulting another Indian man, causing him to suffer serious bodily injury on March 2, 2014. The indictment alleged that Lucero committed these crimes while driving under the influence of alcohol in Indian Country in Taos County, N.M.
According to court filings, Lucero killed a Taos Pueblo man who was in Lucero’s vehicle during a crash in El Prado, N.M., while Lucero was under the influence of alcohol. Another Taos Pueblo man who was also a passenger in the vehicle sustained serious bodily injuries as a result of the crash.
On June 3, 2015, Lucero pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Pueblo Department of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
Suitland Woman Pleads Sentenced to Prison for Stealing over $115,000 in Social Security Retirement BenefitsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Theresa Darlene Snead, age 56, of Suitland, Maryland today to 18 months in prison, followed by three years of supervised release, for theft of government property in connection with a scheme to steal over $115,000 in social security benefits. Judge Chasanow also entered an order requiring Snead to pay restitution of $115,388.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to Snead’s plea agreement, between May 1986 and her death on January 10, 2003, Individual A received monthly retirement benefits from the Social Security Administration (SSA). At the time of her death, Individual A was living with Snead. Individual A’s death was not reported to SSA. Between January 2003 and March 2014, when the benefits were terminated, SSA continued to mail Individual A’s monthly benefits check to Snead’s address in Suitland.
Snead admitted that after Individual A’s death she cashed the SSA checks at a local liquor store, using an identification card bearing Individual A’s name, but Snead’s photograph. Snead signed the back of each check in Individual A’s name. SSA paid a total of $115,388 in retirement benefits after Individual A’s death. Snead admitted that she knew she was not entitled to these benefits.
United States Attorney Rod J. Rosenstein commended the SSA Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren Perry and Assistant U. S. Attorney Lindsay Eyler Kaplan, who prosecuted the case.
St. Thomas Man Indicted on Bulk Cash Smuggling ChargeRead the Press Release
St. Thomas, USVI – A federal grand jury returned a one-count indictment on November 5, 2015, charging Kevin Greaves, 43, of St. Thomas, with Bulk Cash Smuggling, United States Attorney Ronald W. Sharpe announced today.
Greaves was arrested on August 22, 2015, and was released on home confinement with electronic monitoring after posting a $25,000.00 cash bond pending trial. His arraignment and advice of rights on the indictment are scheduled to occur on November 12, 2015.
According to the indictment and court documents, Department of Homeland Security Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) agents were conducting surveillance in the East End area of St. John when they observed Greaves approach a vessel that had signaled its arrival from Tortola, BVI, to Greaves at an area overlooking Haulover Bay, St. John. Greaves traveled from the lookout area to Haulover Bay, met with the occupants of the vessel, then departed after a brief encounter. HSI agents followed Greaves to the Pine Peace area where they stopped him and questioned him about his travels. Greaves told agents that he went to Haulover Bay to discuss a welding job with a mechanic. Agents conducted a search of Greaves’ vehicle and found two duffle bags containing $118,000.00 cash in U.S. currency. Greaves was arrested and charged with failure to declare the currency after it arrived in the United States Virgin Islands from a place outside the United States.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty. This case is being investigated by HSI, and is being prosecuted by Assistant United States Attorney Delia L. Smith.
St. Louis Company Charged with OSHA Violation that Caused Worker's DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Pacific, Mo., company was charged in federal court today with violating an OSHA regulation and causing the death of a Raymore, Mo., ironworker.
DNRB, Inc., doing business as Fastrack Erectors, located in Pacific, was charged in an information filed in the U.S. District Court in Kansas City, Mo.
In July 2014, Fastrack was a subcontractor in the construction of a 300,000-square-foot distribution warehouse located in Kansas City, Mo. Fastrack is an American Institute of Steel Construction-certified steel erection company that specializes in structural steel, miscellaneous steel, pre-engineered metal buildings, ornamental metal handrail, and precast installation. Fastrack supplied on-site supervisors (who are based in the St. Louis, Mo., area) while the ironworkers were hired from the union local in Kansas City, Mo.
On July 24, 2014, two Fastrack ironworker employees were receiving a bundle of roof decking sheet metal and setting it on top of the building’s bar joists. The employees’ task required them to guide the decking bundle to land it. Each decking bundle was 26 feet long by 36 inches wide. The employees accessed the top of the building from a scissor lift and walked approximately 15 feet along a joist without wearing any fall protection. They walked on trusses that were nine inches wide, or bar joists which were five inches wide. Other ironworkers secured the decking to the trusses with screws and welds. These workers did not use fall protection.
Eric Roach, 22, one of the employees landing the decking, fell approximately 30 feet to the ground and was transported to a local hospital where he died the following day.
Fastrack was a subcontractor to ARCO National Construction-KC, Inc. According to court documents, the contract between ARCO and Fastrack required that Fastrack “personnel who are working or present at heights in excess of 6 feet shall be provided, by (Fastrack) adequate fall protection.” Fastrack allegedly failed to enforce the use of fall protection.
According to the information filed today, no fall protection equipment was provided by the company. Both working foremen on the site were told, or questioned, about the lack of fall protection equipment, the information says, and were in a position to personally observe employees failing to use fall protection equipment. At least one of the foremen allegedly was working on the decking in the immediate area of the employees; he failed to wear fall protection himself and failed to enforce the use of fall protection by the employees.
Federal statutes require that each employee engaged in a steel erection activity who is on a walking/working surface with an unprotected side or edge more than 15 feet above a lower level shall be protected from fall hazards by guardrail systems, safety net systems, personal fall arrest systems, positioning device systems or fall restraint systems.
Dickinson cautioned that the charge contained in this information is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Paul S. Becker. It was investigated by the Occupational Safety and Health Administration and the Department of Labor – Office of Solicitor.
St. Croix Woman Sentenced to 18 Months in Prison for Manufacture of MarijuanaRead the Press Release
St. Croix, USVI – District Court Chief Judge Wilma A. Lewis on November 6, 2015, sentenced
Gail Leung, 57, to 18 months in prison for manufacture of marijuana, United States Attorney Ronald W. Sharpe announced today.Judge Lewis also ordered Leung to serve two years of supervised release, and pay a $100 special assessment and $5,000 fine.
On June 11, 2015, Leung pleaded guilty to manufacture of marijuana. As part of her plea, she agreed to pay a forfeiture money judgment in the amount of $3,000. According to court documents, Leung knowingly and intentionally grew marijuana plants on her property in Estate Mount Pleasant, St. Croix. On May 28, 2014, the U.S. Drug Enforcement Administration (DEA) removed a total of 200 marijuana plants from the property.
This case was investigated by the DEA. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Seven Defendants Convicted for Their Roles in $33 Million Tax Refund SchemeRead the Press Release
FRESNO, Calif. — After a three-and-a-half week trial, a federal jury in Fresno has found four defendants guilty of participating in a tax refund scheme claiming more than $33 million in federal tax refunds, United States Attorney Benjamin B. Wagner announced.
Fresno residents Gaylene Lynette Bolanos,58; and Leroy Donovan Combs, 74; Madera County resident Charles Wayne Uptergrove, 57; and Ladonna Lee Moon, 55, of Texas, were convicted of submitting false claims against the United States. Bolanos was also found guilty of conspiracy to defraud. The jury was unable to reach a verdict as to Rodney Edwin Moon, of Texas.
Prior to trial, co-defendants James Karam Schwartz, 60, and Louie Calles, 65, pleaded guilty to submitting false claims against the United States. Another co-defendant, Oswald Georgner, 66, of Fresno, pleaded guilty to the conspiracy to defraud. Each of the defendants is awaiting sentencing.
According to court documents and testimony at trial, between August 2008 and October 16, 2008, Bolanos and Georgner conspired to submit false claims for income tax refunds. Bolanos and Georgner worked with others, including Combs, Uptergrove, Calles, Schwartz, and Ladonna Lee Moon to submit false tax returns in an attempt to eliminate their debts and receive sizable tax refunds by submitting their tax returns with false claims of interest income and withholding citing IRS Form 1099-OID.
As part of the scheme, the defendants submitted false tax returns to the IRS seeking more than $33 million in fraudulent tax refunds. As a result of these fraudulent tax refund claims, the IRS issued approximately $400,000 in fraudulent refunds. The tax returns were fraudulent because the defendants listed their debts, bills, and other non-income items as interest income. The defendants then claimed that almost all of that interest income had been withheld and paid to the IRS, even though none of the purported interest income was ever withheld. Based on the reported withholdings, the defendants claimed they were owed millions of dollars in refunds by the IRS.
“These defendants went well beyond cheating on their taxes to avoid paying their fair share,” said U.S. Attorney Wagner. “They sought to steal millions in taxpayer funds meant to provide services for us all. We are pleased by the jury’s verdict and we will continue our efforts to bring to justice those who would plunder the public fisc.”
“Plain and simple, this was fraud,” said Acting Special Agent in Charge Thomas McMahon, IRS Criminal Investigation. “Today’s conviction should send a clear message that those involved in these schemes will not go undetected. It is more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.”
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Henry Z. Carbajal III are prosecuting the case with assistance from Trial Attorney Karen J. Sharp, of the Department of Justice, Antitrust Division.
The four defendants convicted at trial are scheduled to be sentenced my United States District Judge Anthony W. Ishii on March 7, 2016. They face a maximum statutory penalty of five years in prison on each false claims charge. Bolanos and Georgner face a maximum statutory penalty of 10 years in prison for the conspiracy charge. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sentenciado un Antiguo Residente De Roseville por Estafa de Modificaciones de Préstamos y Rescates de Embargos Inmobiliarios Orientada a la Comunidad de Habla HispanaRead the Press Release
SACRAMENTO, California – Martin Wayne Flanders, de 51 años de edad, y antiguo residente de Roseville, fue sentenciado hoy por el Juez del Distrito de los Estados Unidos Troy L. Nunley a seis años y cinco meses de prisión por una trama que se dirigía a propietarios de viviendas que se encontraban en dificultades económicas, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
En febrero del 2015, Flanders y su esposa Ligia Sandoval Spafford (Sandoval), de 48 años de edad, y residente de Roseville, se declararon culpables de fraude por correo en su participación en la trama fraudulenta.
Según documentos del tribunal, entre los años 2008 y 2010, Flanders cobró tarifas por adelantado a sus clientes por un número de servicios financieros que incluían modificaciones de préstamos, revisiones de préstamos hipotecarios, recuperación de crédito, liberación de deuda, peticiones de bancarrota y un programa para vender casas a “inversionistas” que las alquilaban con la opción a compra. Flanders y Sandoval comerciaban estos servicios con aquellos propietarios de viviendas que se encontraban en dificultades económicas, y en particular con énfasis a personas de habla hispana. Durante un programa de radio que se emitía dos veces por semana en la zona del “Bay Area” por Radio Luz, una emisora de radio Cristiana en español, Sandoval promovía los servicios que ella y Flanders ofrecían. Flanders también hacía publicidad en Univisión, un canal de televisión en español, y revistas en español. Cerca de un 98 por ciento de los clientes de los demandados eran de descendencia hispana; algunos hablaban nada o poco inglés. Sandoval habla español, pero Flanders no lo habla.
Tanto Flanders como Sandoval dieron testimonios falsos a los inversores sobre el éxito de los planes que se ofrecían o, en el caso, de las devoluciones que estaban disponibles si los planes no prosperaban. En el intento de retrasar el proceso de embargo de las viviendas, Flanders y Sandoval se servían de ofertas ficticias llamadas “ofertas fantasma” para comprar las viviendas de las víctimas a precio reducido, un proceso llamado “short sale,” como también de fingidas peticiones de bancarrota que eran rápidamente desestimadas por el tribunal de bancarrotas llamadas “bancarrotas de esqueleto.” Al menos, entre 25 a 30 individuos pagaron por los servicios que nunca recibieron o no recibieron las devoluciones cuando los planes no cumplieron con lo prometido. Como mínimo, las pérdidas totales para las víctimas fueron de $125,000 dólares. Algunos propietarios que no pudieron recibir subsidios fueron embargados por sus entidades de credito.
“Al dirigirse a personas en situaciones de dificultades económicas y con un dominio limitado del inglés, Flanders buscaba enriquecerse estando sobre las espaldas de aquellos que menos podían permitírselo,” declaró el Procurador de los Estados Unidos Wagner. “Estamos agradecidos de la sentencia impuesta por el tribunal, y continuaremos a enfocar nuestros esfuerzos en el procesamiento de tramas depredadoras y fraudulentas.”
Este caso es un producto de una investigación por la Oficina Federal de Investigación (FBI). Los Procuradores Auxiliares de los Estados Unidos Todd A. Pickles y Shelley Weger están procesando el caso.
Flanders está en detención desde su arresto en octubre del 2012. Sandoval está actualmente en libertad. Sandoval está programada para ser sentenciada por el Juez Nunley el 3 de marzo del 2016. Ella se enfrenta a una pena máxima establecida por la ley de 20 años en prisión y una multa de $250,000 dólares. El tribunal, no obstante, se reserva la decisión sobre la sentencia, propiamente dicha, y hasta que todos los factores aplicables establecidos por la ley y por las Directrices Federales para Dictar Sentencia sean considerados, tomando en cuenta un número determinado de variables.
Seminole Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON LEE DEATHERAGE, age 40, of Seminole, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than life imprisonment, up to a $10,000,000.00 fine or both.
The Indictment alleged that beginning in or about April 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 2015, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshal Service and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Rockport Man Convicted for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Calvin Nesmith, 28, of Rockport, has entered a guilty plea to sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson.
In June 2015, Nesmith was communicating with a person he believed was the mother of two minor female children. In reality, he was actually talking to an undercover Homeland Security Investigations (HSI) agent from Laredo. During the course of the communications, Nesmith made arrangements to meet and engage in sexual activity with the mother’s minor female children.
Nesmith also sent sexually explicit photographs depicting images of child pornography through text messages and emails to the undercover agent. The images were taken of a 14-year-old female while she was sleeping.
He was apprehended as he arrived at the designated meeting place. At the time of his arrest, Nesmith had several electronic devices and condoms with him. A forensic search of those electronic devices led to the discovery of an electronic image depicting Nesmith involved in sexually explicit conduct with a female minor.
Senior U.S. District Judge Janis Graham Jack accepted the guilty plea today and set sentencing for Jan. 21, 2016, at which time Nesmith faces a minimum of 15 and up to 30 years in federal prison. Upon completion of any prison term imposed, Nesmith also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Nesmith was arrested on the federal charges in September 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Roaming Shores man faces additional drug and firearms chargesRead the Press Release
A federal grand jury sitting returned a six-count superseding indictment charging a Roaming Shores man with distribution of heroin, distribution of crack cocaine, possessing a firearm during a drug trafficking crime, and being a felon in possession of firearms and ammunition, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
James E. Brooks, 40, remains detained in federal custody.
Brooks knowingly and intentionally distributed crack cocaine on August 12, 2015, on August 13, 2015, and on August 17, 2015. He also distributed heroin on August 17, 2015, according to the indictment.
Brooks possessed a firearm during the August 17, 2015, drug trafficking crime. The indictment also alleges that on August 20, 2015, Brooks possessed a Walther, model P22, .22 Caliber Pistol; a Winchester, model 50, 12 gauge shotgun; and a Winchester, model 120, 12 gauge shotgun. Brooks was forbidden from possessing firearms because of previous felony convictions including drug abuse, burglary, aggravated robbery with a firearm specification, felonious assault, escape, and felonious assault with a firearm specification, all in the Trumbull County Court of Common Pleas.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ashtabula County Sheriff’s Office, the Warren Police Department, the Ohio State Highway Patrol, Ohio BCI&I and the TAG Law Enforcement Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Richland County Man Sentenced to 30 years Following TrialRead the Press Release
Contact Person: William Witherspoon (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Harold Hall, Jr., age 34, of Richland County, South Carolina was sentenced today in federal court in Columbia, South Carolina, for being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1), possession with the intent to distribute marijuana, a violation of 21 U.S.C. § 841(a)(1), and possession of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Joseph F. Anderson, Jr. of Columbia sentenced Hall to a total of 360 months (30 years) on all three counts. In addition, Hall must serve 3 years of supervised release following his incarceration.
Evidence presented at the trial established that on June 25, 2012, the Richland County Sheriff’s Department with the use of a confidential informant made a purchase of marijuana from the home where Hall lived. Following this purchase, the police obtained a search warrant for the home. During the execution of the warrant, the police found more than 10 pounds of marijuana, 3 firearms and over $1,000.00. The police also found documentation that tied Hall to the residence. Hall and a relative were arrested a short distance from the home. During the trial, Hall’s relative testified that all of the marijuana, firearms and cash belonged to him and that Hall had nothing to do with the marijuana and firearms. The jury found the testimony of the relative incredible and convicted Hall on all counts. The case was investigated by agents of the Federal Bureau of Investigations and Richland County Sheriff's Department Narcotics Unit. Assistant United States Attorney William K. Witherspoon and Benjamin Garner of the Columbia office prosecuted the case. #####Perry County Resident Sentenced on Methamphetamine OffenseRead the Press Release
On November 4, 2015, Herman E. Sims, Jr., 35, of Pinckneyville, was sentenced in United States District Court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Sims, who had previously pled guilty to one count of conspiracy to manufacture methamphetamine, was sentenced to 84 months in federal prison, to be followed by 3 years’ supervised release, and fined $600. Evidence at the plea and sentencing hearings established that Sims was involved with others in the manufacture of methamphetamine. Sims stole anhydrous ammonia and manufactured methamphetamine with others. At sentencing, the district judge found that Sims’s relevant conduct included 360 grams of methamphetamine. The offense occurred between 2012 and December 2014, in Perry, Jackson, and Randolph Franklin Counties. Co-defendant Jamie Trzinski was previously sentenced to 57 months in prison for her role in the methamphetamine conspiracy. Three other co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Perry County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, Randolph County Sheriff’s Office, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Palm Coast Man Sentenced to Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Stephen Paul Cotton (43, Palm Coast) to 23 months in federal prison for failing to register as sex offender after traveling from Florida to North Carolina. He was also ordered to register as a sex offender and to serve a five-year term of supervised release. Cotton has been in the custody since his arrest in Suwanee, Georgia on April 11, 2015.
According to court documents, in January 1999, Cotton was convicted of committing a lewd and lascivious act on a child in Manatee County. Subsequent to his conviction, and between 2004 and 2012, he registered as a sex offender with Florida authorities as required. However, between July 2, 2012, and April 11, 2015, Cotton traveled from Florida to Virginia, North Carolina, Tennessee, and Georgia, but failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service, the Suwanee (Georgia) Police Department, the Flagler County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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, 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.
Omaha Woman Sentenced for Conspiracy to Distribute OxycodoneRead the Press Release
United States Attorney Deborah R. Gilg announced that Christina Hingorani, 30, of Omaha, Nebraska, was sentenced on November 10, 2015, by United States District Senior Judge Joseph F. Bataillon. This case involved a conspiracy to distribute and possess with intent to distribute oxycodone in Omaha. The defendant was sentenced to time served, a three year term of supervised release, and a $100 special assessment.
This case was investigated by the Drug Enforcement Administration.
Ohio-Based Tax Return Preparation Business Executive Pleads Guilty to Obstructing the IRSRead the Press Release
WASHINGTON - A Liberty Township, Ohio, resident pleaded guilty to one count of obstructing and impeding the Internal Revenue Code, announced Acting Deputy Assistant Attorney General Bruce M. Salad of the Justice Department’s Tax Division.
According to court documents, Kyle Wade, 44, was the former vice-president of franchising for Instant Tax Service (ITS), a tax preparation business that claimed to have over 1,100 franchise locations throughout the United States in 2009. Wade formerly owned multiple ITS franchises.
From Jan. 1, 2004 through Nov. 1, 2012, Wade and another individual executed a scheme to obstruct the Internal Revenue Service (IRS), wherein numerous ITS franchises filed false federal income tax returns without the permission of their taxpayer clients and without receiving a valid W-2 form from each client. The false returns included false and inflated sole proprietorship Schedule C income in an attempt to increase the Earned Income Tax Credit refund. Wade and another individual also created and presented false documents with the IRS, such as phony W-2 forms that were created by ITS employees using tax preparation software and various other false IRS forms containing forged signatures.
At his sentencing on a date to be determined later, Wade faces a statutory maximum sentence of three years in prison and a fine of $250,000.
The Tax Division commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, and Assistant U.S. Attorney Jessica Knight of the Southern District of Ohio, who are prosecuting the case.
Ohio man sentenced for selling bath salts and synthetic drugsRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Skruck, 59, of Youngstown, Ohio, was sentenced today to 41 months in prison for his role in distributing bath salts and synthetic drugs through local retail stores, United States Attorney William J. Ihlenfeld, II, announced today.
Skruck was a manager of the Hot Stuff Cool Things retail shops in Clarksburg and Buckhannon. He participated in a scheme to distribute bath salts and synthetic drugs. He also structured financial transactions to avoid reporting more than $200,000 to the Internal Revenue Service.
Skruck pled guilty in December 2014 to one count of “Drug Conspiracy” and one count of “Structuring Monetary Transactions to Evade the Reporting Requirement.” He was sentenced today to 41 months in prison on each count. The sentences will run concurrent with each other for a total of 41 months in prison. As part of the sentence imposed today, Skruck will also forfeit multiple parcels of real property, U.S. currency and bank accounts, vehicles, heavy equipment, a trailer, and a professional embroidery machine.
Assistant U.S. Attorneys Robert McWilliams and Michael Stein along with Special Assistant U.S. Attorney John Parr and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Internal Revenue Service Criminal Investigations, the Three Rivers Drug and Violent Crime Task Force, and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
O.C. Man Sentenced to Two Years in Federal Prison for Selling Non-Existent In-N-Out Burger Franchises in the Middle EastRead the Press Release
SANTA ANA, California – A Newport Beach man has been sentenced to 24 months in federal prison for running a multi-million dollar fraud scheme that bilked investors with false promises of In-N-Out Burger franchises in the Middle East.
Craig Stevens, 56, was sentenced Monday afternoon by United States District Judge Andrew J. Guilford.
Stevens pleaded guilty in June to one count of wire fraud, admitting that he fraudulently solicited more than $4.27 million from investors who were told that each franchise cost approximately $150,000, plus another $250,000 per year for royalties.
When Stevens pleaded guilty, he admitted sending an email to a victim in Lebanon that discussed a purported licensing agreement.
The scheme, which ran throughout 2014, fraudulently solicited investments when Stevens “claimed to have the exclusive rights to [In-N-Out] franchises in the Middle East,” according to court documents, which explained that the Irvine-based company is a private held corporation that “does not have any business partnerships or franchise agreements with third parties.”
The case against Stevens was investigated by the Federal Bureau of Investigation.
Norwegian Shipping Company and Engineering Officers Convicted of Environmental Crimes and Obstruction of JusticeRead the Press Release
A federal jury in Mobile, Alabama, has convicted Det Stavangerske Dampskibsselskab AS (DSD Shipping) and three employees with obstructing justice, violating the Act to Prevent Pollution from Ships (APPS), witness tampering and conspiracy, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Kenyen R. Brown of the Southern District of Alabama. DSD Shipping is a Norwegian-based shipping company that operates crude oil tankers, including the M/T Stavanger Blossom. Also convicted at trial were three senior engineering officers, Bo Gao, Xiaobing Chen and Xin Zhong, employed by DSD Shipping to work aboard the vessel. A fourth employee, Daniel Paul Dancu, pleaded guilty in October.
The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment, known as an oily-water separator, to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.
“We will not tolerate the continued use of the world’s oceans as a dumping ground for contaminated waste,” said Assistant Attorney General Cruden. “These defendants deliberately and egregiously violated the law and fouled the marine environment by dumping waste, then tried to cover it up with false records. We hope this conviction sends a strong message to shippers worldwide that this activity must end, and we will vigorously prosecute those who continue this criminal behavior.”
“I am pleased with the record of this office in pursuing environmental crimes,” said U.S. Attorney Brown. “We will continue to prosecute corporations and individuals to protect our resources here along the Gulf Coast as well as around the World. We need to ensure that all foreign vessels and corporations comply with U.S. Coast Guard Examinations to ensure these resources are protected.”
“The oceans cannot be used as dumping grounds,” said Acting Special Agent in Charge Andy Castro of the Environmental Protection Agency’s (EPA) criminal enforcement program in Alabama. “The defendants in this case falsified entries in their vessel’s log books to hide the true nature of its open water discharges. Today’s guilty verdict by a jury should serve as a warning to would-be violators that the American people will not allow the flagrant violation of U.S. laws.”
“This case shows the importance of interagency cooperation and how working together can keep our nation's waterways cleaner and safer for all,” said U.S. Coast Guard Admiral David R. Callahan. “I commend the U.S. Attorney's Office, the Department of Justice, as well as Customs and Border Protection for their diligence in this case. This case is a prime example of the Act to Prevent Pollution from Ships working as it was intended. The Coast Guard is committed to working with our partners to enforce regulations and hold any violators accountable.”
“CGIS is dedicated to holding those individuals and Corporations accountable who violate United States and International law,” said Resident Agent in Charge John Allen with the U.S. Coast Guard Investigative Service (CGIS). “CGIS will vigorously prosecute anyone who presents false documents to the U.S. Coast Guard or obstructs vessel examinations performed by the U.S. Coast Guard.”
The evidence presented during the two-week trial demonstrated that in January 2010, DSD Shipping knew that the oily-water separator aboard the M/T Stavanger Blossom was inoperable. In an internal corporate memo, DSD Shipping noted that the device could not properly filter oil-contaminated waste water and stated that individuals “could get caught for polluting” if the problem was not addressed. Rather than repair or replace the oily-water separator, however, DSD Shipping used various methods to bypass the device and force the discharge of oily-wastes into the ocean. During the last months of the vessel’s operation prior to its arrival in the Port of Mobile, the M/T Stavanger Blossom discharged approximately 20,000 gallons of oil-contaminated waste water.
The evidence at trial also established that DSD Shipping employees intentionally discharged fuel oil sludge directly into the ocean. Specifically, crewmembers cleaned the vessel’s fuel oil sludge tank, removed approximately 264 gallons of sludge and placed the waste oil into plastic garbage bags. After hiding the sludge bags aboard the ship from port authorities in Mexico, defendants Chen and Zhong ordered crewmembers to move as many as 100 sludge bags to the deck of the vessel. There, Zhong threw the sludge bags overboard directly into the ocean.
DSD Shipping, Dancu, Gao, Chen and Zhong, all attempted to hide these discharges from the U.S. Coast Guard by making false and fictitious entries in the vessel’s oil record book and garbage record book. Further, after arriving in Mobile, Chen and Zhong lied to the U.S. Coast Guard about the discharge of sludge and ordered lower ranking crewmembers to do the same.
At the conclusion of trial, DSD Shipping was convicted of one count of conspiracy, three counts of violating APPS, three counts of obstruction of justice and one count of witness tampering. Defendant Gao was convicted of one count of conspiracy and two counts of obstruction of justice. Defendant Chen was convicted of one count of violating APPS, three counts of obstruction of justice and one count of witness tampering. Finally, Zhong was convicted of two counts of violating APPS, two counts of obstruction of justice and one count of witness tampering. DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties. Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges
This case was investigated by the U.S. Coast Guard Sector Mobile, U.S. Coast Guard District Eight, CGIS and the EPA, Criminal Investigations Division. Assistant U.S. Attorney Michael D. Anderson, with the U.S. Attorney’s Office for the Southern District of Alabama, and the Department of Justice’s Environmental Crimes Section Trial Attorney Shane N. Waller prosecuted the case.
New Mexico Man Sentenced for Scheme to Send Stolen Social Security Benefits to NigeriaRead the Press Release
BOSTON – A New Mexico man was sentenced today in U.S. District Court in Boston in connection with a scheme in which Social Security benefits were obtained using stolen identities and then wired to Nigeria.
Jasper Denetclaw, 44, was sentenced by U.S. District Court Judge Rya W. Zobel to four months in prison, two years of supervised release, and was ordered to pay $104,625 in restitution to the Social Security Administration. In August 2015, Denetclaw pleaded guilty to theft of public money.
In early 2014, Denetclaw met a woman on Facebook who offered him the opportunity to earn some money. The woman put him in touch with “Simon,” who was allegedly located in Nigeria. Following instructions from “Simon,” Denetclaw opened two bank accounts and provided “Simon” with the information for those accounts, and for a third account he had previously opened. After funds had been placed in the accounts, Denetclaw then withdrew or wired a portion of the $205,879 that had been deposited, as instructed by “Simon.”
The money in the accounts was from direct deposits of Social Security benefits, obtained illegally by filing applications for retirement benefits in the names of ten real people, including some Massachusetts residents. Each victim had reached full retirement age, and, therefore, the fraudulent applications resulted in lump-sum benefits payments of approximately $20,000 each. The government recovered about $100,000 when the fraud was detected; however, Denetclaw had succeeded in withdrawing the rest of the money, wiring over $67,000 to individuals in Nigeria, and keeping some of the money for himself. Denetclaw stated that, in the beginning, he thought it was a regular business, but, admitted that after he checked the accounts and realized the money was from the Social Security Administration, he knew it was wrong.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistance was provided by the Phoenix, Ariz. and El Paso, Texas field offices of the Social Security Administration, Office of Inspector General, Office of Investigations and the Redding, Calif. and Gallup, N.M. field offices of the Federal Bureau of Investigation. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
New Jersey Child Therapist Charged with Sexual Exploitation, Enticement, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that ELLIOT HALBERSTAM was arrested today and charged in a criminal complaint with three counts stemming from his sexual exploitation and enticement of a minor and his receipt of child pornography.
Manhattan U.S. Attorney Preet Bharara said: “Elliot Halberstam is charged with violating the trust of his former patient, a 16-year old boy, in the worst way imaginable - he allegedly coerced and tricked the victim into engaging in sexually explicit conduct, and captured it on video and in photographs. Together with our partners at the FBI, we are dedicated to ensuring that those who sexually exploit children are held to account.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, Halberstam violated the trust of a minor who was a former patient of his in counseling, by coercing the victim to engage in sexual activity with him and film it. The FBI will continue to investigate and bring to justice those who sexually exploit our children.”
According to the Complaint[1]:
Beginning in March 2015, HALBERSTAM, a child therapist, coerced and enticed a 16-year-old boy who was a former patient of his (“Victim-1”) to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and received images and videos constituting child pornography from Victim-1. To do so, HALBERSTAM groomed Victim-1 through numerous email and text messages, including by posing as another individual to entice Victim-1 to produce and send child pornography to HALBERSTAM and to allow HALBERSTAM to photograph Victim-1.
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HALBERSTAM, 38, of Bergenfield, New Jersey, is charged with one count of coercing and enticing a minor to engage in illegal sexual activity, which carries a maximum penalty of life in prison; one count of sexual exploitation of a child, which carries a maximum sentence of 30 years in prison; and one count of receipt of child pornography, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
There may be more victims of this alleged conduct. Any individuals who believe they have information concerning ELLIOT HALBERSTAM that may be relevant to the investigation should contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara praised the efforts of the FBI in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Andrew D. Beaty is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Navajo Man Pleads Guilty to Failing to Update His Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Darrick Negale, 30, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., pleaded guilty today in federal court to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Negale was charged in a criminal complaint on Oct. 26, 2012, with violating SORNA by failing to update his sex offender registration. On Sept. 10, 2013, Negale was indicted on that same charge. According to the indictment, Negale failed to update his registration between Sept. 25, 2012 and Oct. 10, 2012, in Bernalillo County, N.M.
Negale was convicted of sexual abuse of a minor in Indian Country in June 2007. On May 6, 2010, Negale registered as a sex offender in Bernalillo County and agreed to notify the sheriff of the county to which he moved if he relocated outside of the county. Negale last registered as a sex offender on Oct. 3, 2011, in Bernalillo County and subsequently failed to notify the U.S. Probation Office of his whereabouts when he left a residential reentry program in Albuquerque without permission on Sept. 27, 2012.
During today’s hearing, Negale pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Negale faces a statutory maximum penalty of ten years in federal prison followed by a minimum of five years of supervised release. Negale will also be required to register as a sex offender following his term of incarceration. Negale remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Montgomery County Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
PHILADELPHIA - Terence Wyatt, 58, of King of Prussia, PA, was sentenced yesterday to 10 years in prison for possession of child pornography. Wyatt pleaded guilty on April 22, 2015, to possessing in excess of 600 images and videos from the Internet that depicted children being sexually abused by adults as well as videos that depicted sadistic and masochistic images of prepubescent children.
This investigation began as part of an ongoing undercover Internet investigation of child exploitation violations relating to the use of peer to peer (“P2P”) file sharing networks being conducted by the Abington Township Police Department. The purpose of the investigation was to identify those individuals possessing and sharing child pornography using P2P networks. An Abington Police Department detective located a computer on a P2P Network sharing files of interest in child pornographic investigations. The user of this file-sharing program was Wyatt. The detective was able to download images and movies from Wyatt’s files that depicted children under the age of 18 years old engaged in sexually explicit conduct including sexual abuse by adults. Following execution of a search warrant, detectives arrested Wyatt on May 16, 2013.
The images were then reviewed by a special agent with Homeland Security Investigations (HSI) who verified that over 2005 images contained child pornography, approximately 95% of which were of prepubescent child pornography. When HSI agents reviewed Wyatt’s electronic media they determined that it contained over 150,000 images, the majority of which were child erotica and child pornography.
In addition to the 10 year prison term, U.S. District Court Judge Gene E.K. Pratter ordered 10 years of supervised release, $1,000 restitution, and a $100 special assessment.
The case was investigated by the Detective Division of the Abington Township Police Department, the Montgomery County District Attorney’s Office, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jeffery W. Whitt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division=s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mississippi Man Pleads Guilty to Assaulting a Choctaw Tribal Police OfficerRead the Press Release
Jackson, Miss. – Jason Gooden, 29, of Philadelphia, MS, pled guilty on November 9, 2015, before U.S. District Judge Daniel P. Jordan III, to one count of Assaulting a Choctaw Tribal Police Officer, U.S. Attorney Gregory K. Davis announced today.
On April 4, 2015, the defendant, a non-Tribal member, was asked to leave the Silver Star Casino because he appeared to be intoxicated. The defendant did not comply with the security guard’s request and the Choctaw Police Department was called for assistance. When approached by the police officers, the defendant grabbed one of the officers and threw him to the ground. The defendant was arrested and charged with assaulting a law enforcement officer. This case was prosecuted in federal court because Tribal police officers are considered to be federal law enforcement officers.
Gooden will be sentenced on January 28, 2016, by U.S. District Judge Daniel P. Jordan III. He faces a maximum sentence of eight years in prison and a $250,000.00 fine.
Milton Man Pleads Guilty to Stealing from Social SecurityRead the Press Release
BOSTON – A Milton man pleaded guilty today in U.S. District Court in Boston to stealing more than $70,000 in Social Security benefits.
Brian Sandiford, 58, pleaded guilty to stealing public money. Sandiford was charged in an Information in August 2015. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 3, 2016.
Sandiford’s father died in 2010, but his monthly Social Security benefits continued to be directly deposited into a bank account held jointly by Sandiford and his father. Although he was not entitled to this money, Sandiford routinely transferred the Social Security money into his own bank account and then spent it. In total, from 2010 to 2014, Sandiford took $70,811 in Social Security funds to which he was not entitled.
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 June 2015, Patricia Kwiatkowski, of Upton, was sentenced for stealing $128,101 from Social Security from 2006 to 2014.
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.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of Social Security Administration Office, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The Sandiford case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Methamphetamine Supplier Sentenced to Maximum Statutory Penalty of 20 Years in Federal PrisonRead the Press Release
FORT WORTH, Texas — Corey Duane Bowles, 43, of Fort Worth, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 240 months (20 years) in federal prison, the statutory maximum penalty, for possessing methamphetamine with the intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.
Bowles pleaded guilty in July 2015 to an indictment charging the offense.
According to documents filed in the case, Bowles admitted that on March 6, 2015, he knowingly and intentionally possessed, with the intent to distribute, methamphetamine when he sold methamphetamine in an undercover operation in Fort Worth.
The Drug Enforcement Administration, the Weatherford/Parker County Special Crimes Unit, and the Weatherford Police Department investigated the case. Assistant U.S. Attorney Chris Wolfe was in charge of the prosecution.
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Mercer County, New Jersey, Man Charged with Production and Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was arrested today and charged with coercing a minor to engage in sexually explicit conduct and with receiving images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Curtis E. Thompson, 30, of Lawrenceville, New Jersey, is charged by complaint with one count of the production of child pornography and one count of receiving child pornography. He is scheduled to appear later today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
In April 2015, Thompson used a Facebook account in the name of Frank Lucas to become “friends” with the victim, a minor. On June 11, 2015, the victim told Thompson that the victim was under the age of 18. Thompson used the Facebook account to solicit and persuade the victim to record videos of the victim and others engaging in sexually explicit conduct, and to send those videos to Thompson. Thompson also coerced the victim to engage in sexually explicit conduct and allow Thompson to watch in real time through a video streaming service. Thompson requested additional videos of the victim and others engaged in sexually explicit conduct in exchange for payments from Thompson wired via MoneyGram to the victim and others. Thompson sent the payments on various dates in June 2015.
The charge of production of child pornography carries a maximum potential penalty of 30 years in prison, a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The charge of receiving child pornography carries a mandatory minimum penalty of five years and a maximum of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
Anyone with information which may be relevant to this investigation is encouraged to contact the FBI online at: [email protected]
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Member of Colombian Terrorist Organization Sentenced to 27 Years in Prison for Hostage-Taking of Three U.S. CitizensRead the Press Release
WASHINGTON – Diego Alfonso Navarrete Beltran, 43, a member of the Fuerzas Armadas Revolucionarias Colombianas (FARC) terrorist organization, was sentenced today in the U.S. District Court for the District of Columbia to 27 years in prison on hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The sentencing was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, and Special Agent in Charge George L. Piro of the FBI’s Miami Division.
Navarrete Beltran was extradited from Colombia to the United States in November 2014 to face charges in a superseding indictment that was returned in February 2011. He pleaded guilty on Aug. 26, 2015, to three counts of hostage-taking. He was sentenced by Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Navarrete Beltran is among three FARC leaders who have been convicted for their roles in the hostage-taking.
“Diego Alfonso Navarrete Beltran participated in the hostage-taking and captivity of three Americans by the FARC, a Colombian terrorist organization,” said Assistant Attorney General Carlin. “This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world, no matter how long it takes.”
“Diego Alfonso Navarrete Beltran and other FARC guerillas ruthlessly subjected their American hostages to constant threats of violence while holding them in one camp after another in the remote jungles of Colombia,” said U.S. Attorney Phillips. “For over 16 months, this defendant was among the armed guards who prevented their escape. Today’s 27-year sentence provides justice for the three victims who were subjected to repeated barbaric abuse by the defendant and others while part of this terrorist organization.”
“Diego Alfonso Navarrete Beltran now faces a long time behind bars for his participation in the hostage-taking of three U.S. Citizens in Colombia,” said Special Agent in Charge Piro. “To all hostage-takers the message is clear: target our citizens with violence anywhere in the world and we will hold you accountable for your actions.”
According to a statement of offense submitted as part of the plea hearing, the FARC is an armed, violent organization in Colombia, formed in 1964 as the armed wing of the Colombian Communist Party. It has evolved into a major armed force financed by drug trafficking, hostage-taking and extortion. International human rights organizations have repeatedly accused the FARC of serious crimes, including kidnapping, murder, use of land mines, threats, the recruitment of minors, forced displacement and hostage-taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
As described in the statement of offense, Navarrete Beltran was a member of the First Front in the FARC’s Eastern Bloc.
In his plea, he admitted taking part in the hostage-taking of three U.S. citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. These three individuals, along with Thomas Janis, a U.S. citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC after their single engine aircraft made a crash landing near Florencia, Colombia. Janis and Cruz were murdered at the crash site by members of the FARC.
For the next five and a half years, according to the statement of offense, Gonsalves, Howes, Stansell and many others were held prisoners by the FARC and used to bargain with the Colombian government. Along with about a dozen Colombian hostages, they were forced to march from one site to another to prevent their rescue. They were threatened, chained and forced to participate in proof-of-life videos. In early October 2006, the hostages were delivered to the FARC’s Eastern Bloc’s First Front and were held prisoners by the First Front of the FARC.
From October 2006 through mid-June 2008, according to the statement of offense, Navarrete Beltran and other guerillas kept the hostages under the control of the FARC’s First Front. In particular, Navarrete Beltran often served as an armed guard of the American hostages.
In July 2008, the Colombian military conducted an operation which resulted in the rescue of the hostages. All told, members of the FARC held the Americans hostage for 1,967 days.
This investigation is being led by the FBI’s Miami Field Division. The prosecution is being handled by Assistant U.S. Attorneys Kenneth Kohl and Fernando Campoamor-Sanchez of the District of Columbia, and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Substantial assistance in the case was provided by the Justice Department’s Office of International Affairs, the department’s Judicial Attachés in Colombia, the FBI’s Office of the Legal Attaché in Colombia and the FBI’s Washington, D.C., Field Office.
Member of Colombian Terrorist Organization Sentenced to 27 Years in Prison for Hostage-Taking of U.S. CitizensRead the Press Release
Three Hostages Were Held in Colombia for More Than Five Years
Diego Alfonso Navarrete Beltran, 43, a member of the Fuerzas Armadas Revolucionarias Colombianas (FARC) terrorist organization, was sentenced today in the U.S. District Court for the District of Columbia to 27 years in prison on hostage-taking charges stemming from the 2003 kidnappings of three U.S. citizens in Colombia.
The sentencing was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia and Special Agent in Charge George L. Piro of the FBI’s Miami Division.
Navarrete Beltran was extradited from Colombia to the United States in November 2014 to face charges in a superseding indictment that was returned in February 2011. He pleaded guilty on Aug. 26, 2015, to three counts of hostage-taking. He was sentenced by Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Navarrete Beltran is among three FARC leaders who have been convicted for their roles in the hostage-taking.
“Diego Alfonso Navarrete Beltran participated in the hostage taking and captivity of three Americans by the FARC, a Colombian terrorist organization,” said Assistant Attorney General Carlin. “This case underscores our resolve to hold accountable those who target our citizens with violence anywhere in the world, no matter how long it takes.”
“Diego Alfonso Navarrete Beltran and other FARC guerillas ruthlessly subjected their American hostages to constant threats of violence while holding them in one camp after another in the remote jungles of Colombia,” said U.S. Attorney Phillips. “For over 16 months, this defendant was among the armed guards who prevented their escape. Today’s 27-year sentence provides justice for the three victims who were subjected to repeated barbaric abuse by the defendant and others while part of this terrorist organization.”
“Diego Alfonso Navarrete Beltran now faces a long time behind bars for his participation in the hostage-taking of three U.S. Citizens in Colombia,” said Special Agent in Charge Piro. “To all hostage-takers the message is clear: target our citizens with violence anywhere in the world and we will hold you accountable for your actions.”
According to a statement of offense submitted as part of the plea hearing, the FARC is an armed, violent organization in Colombia, formed in 1964 as the armed wing of the Colombian Communist Party. It has evolved into a major armed force financed by drug trafficking, hostage-taking and extortion. International human rights organizations have repeatedly accused the FARC of serious crimes, including kidnapping, murder, use of land mines, threats, the recruitment of minors, forced displacement and hostage-taking. The FARC was designated as a foreign terrorist organization by the U.S. Secretary of State in 1997 and remains so designated.
As described in the statement of offense, Navarrete Beltran was a member of the First Front in the FARC’s Eastern Bloc.
In his plea, he admitted taking part in the hostage-taking of three U.S. citizens, Marc D. Gonsalves, Thomas R. Howes and Keith Stansell. These three individuals, along with Thomas Janis, a U.S. citizen, and Sergeant Luis Alcides Cruz, a Colombian citizen, were seized on Feb. 13, 2003, by the FARC after their single engine aircraft made a crash landing near Florencia, Colombia. Janis and Cruz were murdered at the crash site by members of the FARC.
For the next five and a half years, according to the statement of offense, Gonsalves, Howes, Stansell and many others were held prisoners by the FARC and used to bargain with the Colombian government. Along with about a dozen Colombian hostages, they were forced to march from one site to another to prevent their rescue. They were threatened, chained and forced to participate in proof-of-life videos. In early October 2006, the hostages were delivered to the FARC’s Eastern Bloc’s First Front and were held prisoners by the First Front of the FARC.
From October 2006 through mid-June 2008, according to the statement of offense, Navarrete Beltran and other guerillas kept the hostages under the control of the FARC’s First Front. In particular, Navarrete Beltran often served as an armed guard of the American hostages.
In July 2008, the Colombian military conducted an operation which resulted in the rescue of the hostages. All told, members of the FARC held the Americans hostage for 1,967 days.
This investigation is being led by the FBI’s Miami Field Division. The prosecution is being handled by Assistant U.S. Attorneys Kenneth Kohl and Fernando Campoamor-Sanchez of the District of Columbia, and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Substantial assistance in the case was provided by the Justice Department’s Office of International Affairs, the department’s Judicial Attachés in Colombia, the FBI’s Office of the Legal Attaché in Colombia and the FBI’s Washington, D.C., Field Office.
Media AdvisoryRead the Press Release
EVANSVILLE - United States Attorney Josh Minkler will hold a press conference today, at 3:00 pm CST, in the Evansville United States Federal Courthouse, Third Floor, U.S. District Court Law Library.
Minkler will be joined by officials from the United States Secret Service, United States Postal Inspector, Indiana State Police and the Evansville Police Department to discuss the indictment of 36 defendants for a massive fraud scheme involving staged automobile crashes in the tri-state area.
Maryland Man Convicted in Scheme to Obtain More Than $7 Million of Fraudulent Tax RefundsRead the Press Release
Caused 13 False Tax Returns to be Filed in Just Four Months Claiming $7,470,065 in Refunds
A federal jury convicted Charles W. Parker Jr., 49, of College Park, Maryland, today of one count of conspiring to defraud the United States and six counts of filing false income tax returns.
The conviction was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to evidence presented during the trial, from March to June 2009, Parker recruited clients for co-conspirator Penny Jones, a tax return preparer in Idaho, who prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS. Parker collected financial information from clients and provided it to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others. Parker mailed the false tax returns to the IRS for the years 2005 to 2008, claiming large tax refunds to which the clients were not entitled.
On May 26, 2009, after Parker paid Jones to prepare a false tax return for two co-conspirators who were residents of Atlanta, Georgia, caused the IRS to issue a tax refund to the co-conspirators of $1,723,693. On June 3, 2009, Parker emailed the co-conspirators directing them to wire funds to Parker’s bank account. The next day, the co-conspirators transferred $182,370 into Parker’s account.
The tax returns filed by Parker and his co-conspirators requested fraudulent refunds totaling $7,470,065. As a result of these false returns, the IRS issued fraudulent tax refunds to Parker and his coconspirators totaling $2,007,568. In 2013, Jones was sentenced to 120 months in prison for her role in a scheme to help individuals obtain fraudulent tax refunds from the IRS.
Parker faces a statutory maximum sentence of 10 years in prison for the conspiracy, and a maximum sentence of five years in prison for each of the six counts of filing a false tax return. U.S. District Judge Roger W. Titus has scheduled sentencing for March 28, 2016 at 11:00 a.m.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein praised the Tax Division and IRS-CI for their work in the investigation. Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack and Trial Attorney Erin Pulice of the Justice Department’s Tax Division, who are prosecuting the case.
Marionville Man Sentenced to 15 Years for Child ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Marionville, Mo., man was sentenced in federal court today for child sexual exploitation.
Darren Eugene Schaefer, 37, of Marionville, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Schaefer to a life term of supervised release following incarceration.
On June 17, 2015, Schaefer pleaded guilty to using the Internet and cell phone to attempt to entice a minor to engage in illicit sexual activity.
According to court documents, a task force officer with the Southwest Missouri Cybercrimes Task Force investigated a tip from the National Center for Missing and Exploited Children in May 2014 that Schaefer was contacting underage females on the social networking site MeetMe. Schaefer was asking underage females if they wanted to meet for sexual acts. Schaefer sent messages indicating that he was interested in sexual contact with seven underage females. After contacting the females using the instant message feature on MeetMe, Schaefer would attempt to move the conversations to cell phone text messages.
During the on-line communications between Schaefer and the underage female victims, Schaefer admitted to the victims that he was 35 years old, and stated that he preferred younger females. In one instance, one of the victims asked Schaefer why he posted his age on MeetMe as 14 years old if he was really 35. Schaefer replied that was the only way he could see underage females on this Web site and communicate with them. One victim asked him if he knew he could get in trouble for what he was doing. He replied he knew he could get in trouble but hoped he would not.
A federal search warrant was executed at Schaefer’s residence on June 17, 2014. Schaefer told officers that he talked to hundreds of girls on various social networking Web sites and that he had contacted underage girls several other times using MeetMe. Schaefer also admitted to meeting at least three 16-year-old girls for sexual intercourse over a 10-year period. He reported that he had met all three of them from social networking sites on the Internet. He met two of the girls in Nixa and one at Hood's Truck Stop on 1-44.
Officers seized two laptop computers, two external hard drives and Schaefer’s cell phone, all of which have been forfeited to the government. More than 200 images of child pornography and a total of 474 images of child erotica were located on multiple electronic media devices.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI.
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."
Man Pleads Guilty to Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI- Alva Nicholas, 57, pleaded guilty today in District Court on St. Thomas to one count of possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced.
According to court records, on August 21, 2015, Nicholas was arrested by agents of the Department of Homeland Security Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) at the Cyril E. King Airport on St. Thomas after his arrival on an American Airlines flight. U.S. Customs and Border Protection (CBP) inspectors screening bags arriving at the airport detected an anomaly inside a suitcase bearing Nicholas’ name and flight tag.
After further inspection, agents found 3.4 kilograms of marijuana wrapped in plastic inside Nicholas’ suitcase. The bag was repackaged and placed on the conveyor belt. Nicholas was taken into custody after he collected the suitcase from the conveyor belt. Nicholas was previously convicted of heroin smuggling and sentenced to 10 years in prison.Nicholas faces a maximum sentence of five years in prison and a fine of not more than $250,000.00. His sentencing is scheduled for March 10, 2016.
This case is the result of a joint investigation by HSI and CBP. It is being prosecuted by Assistant United States Attorney Delia L. Smith.
Live Oak Police Sergeant Indicted for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Kyle Adam Kirby (age 35, Live Oak) with possession of child pornography. He faces up to 20 years in federal prison, and a potential life term of supervised release. Kirby was arrested on October 28, 2015, at the Live Oak Police Department. His trial is scheduled to begin on January 4, 2016; Kirby is being detained pending trial.
According to court documents, FBI agents and other law enforcement officers executed a federal search warrant at Kirby’s residence as the result of an online child pornography investigation. That same morning, the Live Oak police chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of the patrol car computer used by Kirby revealed that it contained at least 87 thumbnail images in a “Downloads” folder that either depicted minor children engaged in sexually explicit conduct, including one involving a toddler, or that had titles indicative of child pornography. In addition, the Internet browser history on the computer contained search terms commonly used by individuals who search for child pornography online.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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, 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.
Leader and Supplier for Atlantic City ‘Dirty Block’ Gang Admits Role in Heroin Trafficking Conspiracy and BeingRead the Press Release
TRENTON, N.J. - An Atlantic City, New Jersey, man today admitted engaging in a conspiracy to distribute heroin with members of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City.
Tyrone Ellis, a/k/a “Rome,” 33, pleaded guilty before U.S. District Judge Anne Thompson in Trenton federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of possessing a firearm and ammunition while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Ellis acted as a supplier of pre-packaged heroin to Mykal Derry, the leader of the Dirty Block criminal street gang. Ellis also distributed heroin to a smaller group of mid-level heroin distributors who sold the heroin to customers all over the Atlantic City area and in surrounding towns.
Ellis was arrested on March 26, 2013, in Vineland, New Jersey. At the time of his arrest, a loaded Glock .40 caliber handgun belonging to Ellis was recovered from a bedroom in the residence and more than $37,000 in cash was seized from various locations inside the residence and in an attached garage.
Tyrone Ellis’ guilty plea marks the 34th felony conviction of the 34 defendants arrested by the FBI and state and local law enforcement officers working with the FBI in March 2013. Ellis and approximately 15 other defendants are awaiting sentencing; the remaining defendants have all been sentenced to prison terms.
The drug conspiracy carries a minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a maximum potential fine of $5 million. Sentencing is scheduled for Feb. 2, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s guilty plea.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz and Special Assistant U.S. Attorney Edmond Mallqui-Burgos.
Defense counsel: Rocco Cipparone Esq., Haddon Heights, New Jersey
Lake City Man Pleads Guilty to Transporting Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Robert Lamar Starling (31, Lake City) has pleaded guilty to transporting child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison and a potential life term of supervision. Starling has been detained since his arrest on May 1, 2014.
According to court documents, beginning in September 2013, FBI agents executed a series of search warrants on several email accounts around the country and determined, among other things, that a particular user in Lake City, Florida had uploaded images of child pornography to the Internet, using an account on a photo sharing site. Further investigation traced the account back to a residence in Lake City, where Starling resided.
On May 1, 2014, FBI agents and other law enforcement officers executed a federal search warrant at the residence. Starling was not at the residence, but was located later that morning driving his golf cart at the Suwannee Music Park & Campground in Live Oak. During an interview at his campsite, Starling stated that he had produced pornographic images of several prepubescent children. Subsequent analyses of Starling’s laptop computer revealed that it contained more than 600 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, the Suwannee County Sheriff’s Office, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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, 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.
Justice Department Returns Forfeited Assets Derived from Public Corruption Scheme to Korean Minister of JusticeRead the Press Release
LOS ANGELES – The Department of Justice has returned $1,126,951.45 in forfeited assets to the government of the Republic of Korea.
The forfeited assets – which were returned yesterday – were the profits of a public corruption scheme orchestrated by former Korean President Chun Doo Hwan in the 1990s, and were laundered to the United States by Chun’s family members and associates. The assets were forfeited in two recent civil forfeiture actions filed in Los Angeles and Philadelphia as part of the Department of Justice’s Kleptocracy Asset Recovery Initiative.
"The return of these assets is a powerful vindication of the rule of law, and an important victory for the people of the Republic of Korea," said Attorney General Loretta E. Lynch.
"The Department of Justice is committed to ensuring that the proceeds of corruption have no safe haven in this country," said United States Attorney Eileen M. Decker. "We will vigilantly pursue such proceeds and return them to the victims of the corruption."
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigations investigated the cases leading to the U.S. forfeiture of the assets being returned to Korea and served as the seizing agencies.
In 1997, a criminal court in Korea convicted former President Chun of accepting more than $200 million in bribes from Korean corporations and ordered him to pay approximately $212 million in criminal penalties. In 2013, the Anti-Corruption Division of the Korean Supreme Prosecutor’s Office opened a money laundering investigation regarding the potential laundering of the bribery proceeds into the United States by Chun and his associates through the acquisition of U.S. real estate and opening of U.S. bank accounts.
In February 2014, FBI agents seized $726,951.45 in a California escrow account. Those funds represented the net proceeds from the sale of a Newport Beach house that
President Chun’s son, Chun Jae Yong, had purchased in 2005 with proceeds traced to his father’s corruption scheme. In April 2014, the U.S. Attorney’s Office in Los Angeles filed a civil forfeiture action against the $726,951.45.
In February 2015, a second civil forfeiture action was filed in the Eastern District of Pennsylvania against a secured investment worth approximately $500,000 in a Pennsylvania company, which also was traced to Chun’s corruption scheme.
In March 2015, the government reached a settlement agreement of the two civil forfeiture actions, resulting in the forfeiture of a total of $1,126,951.45, which was returned to the government of the Republic of Korea yesterday.
The case filed in Los Angeles was prosecuted by the United States Attorney’s Office and United States Department of Justice, Criminal Division, Asset Forfeiture and Money Laundering Section.
Justice Department Files Antitrust Lawsuit to Block United's Monopolization of Takeoff and Landing Slots at Newark AirportRead the Press Release
Transaction Would Entrench United’s Dominant Position at Newark, New Jersey, Airport – Eliminating Competition and Resulting in Higher Fares and Fewer Choices for Consumers
The Department of Justice today filed a civil antitrust lawsuit seeking to block a proposed transaction between United Continental Holdings Inc. and Delta Air Lines Inc. in order to preserve competition at Newark Liberty International Airport.
The Antitrust Division’s lawsuit, filed in the U.S. District Court for the District of New Jersey in Newark, New Jersey, alleges that United’s planned acquisition of 24 takeoff and landing slots at Newark would increase United’s already dominant position at the airport, and would strengthen a barrier that diminishes the ability of other airlines to challenge United at the airport. As a result, the 35 million air passengers who fly into and out of Newark every year likely would face higher fares and fewer choices.
“A slot is essentially a license to compete at Newark,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “United already holds most of them, and as a result, competition at Newark is in critically short supply. United is already extracting a ‘Newark premium.’ Airfares at Newark are among the highest in the country while United’s service at Newark ranks among the worst. Allowing United to acquire even more slots at Newark would fortify United’s monopoly position, and weaken rivals’ ability to challenge that dominance, leaving consumers to pay the price.”
To manage congestion at Newark, the Federal Aviation Administration (FAA) allocates takeoff and landing authorizations, or slots, in order to limit the number of flights that can service Newark during the majority of the hours of the day. Slots are a scarce resource, and airlines seeking to initiate or expand service at Newark face significant challenges obtaining them in order to support new service.
According to the department’s complaint, United already controls 73 percent of the slots the FAA has allocated to carriers at the airport – over 10 times more slots than its closest competitor. No other airline has more than 70 slots:
The complaint also alleges that United “grounds” as many as 82 slots each day at Newark, depriving Newark passengers of flight options that would exist if the slots were flown.
The complaint also details how consumers benefit when slots are held by United’s airline rivals. In response to the department’s concerns expressed during its review of the United/Continental merger in 2010, United divested its 36 slots at Newark to Southwest Airlines. United’s then-CEO, Jeff Smisek, lauded the settlement as a “fair solution that would allow Continental and United to create an airline that will provide customers with an unparalleled global network and top-quality products and services, while enhancing domestic competition at Newark.” Nevertheless, as alleged in the complaint, United’s proposed acquisition of slots from Delta is United’s third attempt to reverse the benefits of the 2010 divestiture by buying slots from its competitors at Newark.
According to the department’s complaint, the acquisition of Newark slots by rivals, such as Southwest Airlines, Jet Blue, and Virgin America, has forced United to compete, resulting in lower ticket prices and greater choice for consumers. For example, Southwest’s acquisition of 36 slots from United allowed it to introduce new low-fare competition to United on five routes resulting in substantially lowered fares and increased service on five routes into and out of Newark:
Route
Year-over-year Percentage Decrease in Average Fare
Year-over-year Percentage Increase in Number of Passengers
Newark-St. Louis
-27 percent
66 percent
Newark-Houston
-15 percent
53 percent
Newark-Phoenix
-14 percent
57 percent
Newark-Chicago
-11 percent
35 percent
Newark-Denver
-5 percent
49 percent
Similarly, when Virgin acquired slots at Newark in 2012 after several years of trying unsuccessfully to obtain slots, it introduced competing nonstop service to Los Angeles and San Francisco, and fares on these routes dropped precipitously. United later calculated that competing on these routes in response to Virgin’s entry cost it approximately $66 million in annual revenue.
United Continental Holdings Inc. is a Delaware corporation headquartered in Chicago. Last year United, the third largest airline in the world in terms of revenues, flew over 138 million passengers to over 352 destinations throughout the world.
Delta Air Lines Inc. is a Delaware corporation headquartered in Atlanta. Last year Delta, the second largest airline in the world in terms of revenues, flew over 170 million passengers to 316 destinations throughout the world.
US v United Complaint (236.24 KB)
Jackson County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
On November 5, 2015, Michael F. Halliday, , a/k/a "Micky," 33, of Elkville, pled guilty to one-count of conspiracy to distribute methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that Halliday was involved with others in the manufacture of methamphetamine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Halliday is currently being held without bond pending a February 23, 2016, sentencing hearing. Halliday faces a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Inmate Pleads Guilty to Assaulting Correctional OfficerRead the Press Release
ALBANY, NEW YORK – Lamar McFadden, 30, of Newark, New Jersey, pled guilty yesterday to assaulting a federal officer and inflicting bodily injury, announced United States Attorney Richard S. Hartunian and Steve Langford, Warden of Federal Correctional Institution (FCI) Ray Brook.
McFadden pled guilty pursuant to a plea agreement calling for a sentence of 72 months of imprisonment, to be served consecutively to his current term of imprisonment ,and three years of supervised release. That sentence is subject to approval by Chief U.S. District Court Judge Glenn T. Suddaby; sentencing is scheduled for March 1, 2016 in Albany.
On August 27, 2014, McFadden was an inmate at FCI Ray Brook in Ray Brook, New York, when a Bureau of Prisons officer instructed him to perform his prison job. McFadden refused, and when the officer attempted to escort him to the lieutenant’s office, McFadden pushed the officer to the ground and held him in a headlock in the prison dining hall. In the course of the assault, McFadden wounded the officer’s scalp and forehead, causing bleeding to the scalp.
This investigation was conducted by the U.S. Bureau of Prisons and is being prosecuted by Assistant United States Attorney Cyrus P.W. Rieck.
Illegal Alien from Mexico Sentenced for Leading Alien Smuggling RingRead the Press Release
CORPUS CHRISTI, Texas – An illegal alien from Mexico has been handed a federal prison sentence following his conviction of conspiracy to transport illegal aliens, United States Attorney Kenneth Magidson announced today along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Jose Isabel Paz-Martinez, 28, pleaded guilty to the charge July 23, 2015, admitting the conspiracy resulted in the death of a young woman.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Paz-Martinez to 108 months years in federal prison. The sentence was enhanced as the court found he was a leader/organizer in the conspiracy. As an illegal alien, he is expected to face deportation proceedings following his release from prison.
The conspiracy lasted from Jan. 1, 2014, to Dec. 18, 2014. Paz-Martinez was responsible for coordinating the transportation of illegal aliens from Border Patrol checkpoints to Houston. His role included obtaining vehicles and hiring drivers to transport the illegal aliens. Approximately 87 illegal aliens had been transported during the course of the conspiracy.
On June 10, 2014, a 21-year old woman from El Salvador was with a group of illegal aliens picked up in a truck driven by one of Paz-Martinez’s drivers. As the woman was trying to climb into the back of the truck, the truck sped away prematurely and she slipped and fell onto the highway. Soon after, she was run over by a tractor trailer.
Paz-Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by HSI and is being prosecuted by Assistant United States Attorney Chad W. Cowan.
Husband and Wife Convicted of Tax Fraud SchemeRead the Press Release
Following a six-day trial before United States District Court Chief Judge K. Michael Moore, a jury convicted husband and wife, Raul Sosa and Maura Sosa, of criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to evidence presented at trial, starting in 2003, Raul and Maura Sosa owned and operated Accion 1 Auto Sales, Inc., an automobile salvage and recycling business in Hialeah. After purchasing junked and non-functioning cars, the defendants would strip the cars, sell the usable parts and components to businesses in the secondary auto parts market, and then sell the remaining metal as scrap to a local metal recycler. On some occasions, the defendants would resell whole cars, without stripping them.
The defendants’ fraud scheme revolved around their underreporting of Accion 1’s annual sales revenue on the businesses’ federal income tax returns. Through this scheme, Raul and Maura Sosa depressed the net profits reported on the businesses’ returns, the income reported on their individual returns, and their federal income tax owed.
From 2004 through 2008, the Raul and Mara Sosa’s business had sales of over $28.6 million. However, the defendants’ reported only approximately 14% of their sales, or $3.9 million, on the businesses’ federal income tax returns during that period. As a result of the scheme the defendants failed to report at least $4.5 million in net profits from their business and defrauded the Internal Revenue Service out of over $1.6 million in federal income taxes.
Evidence introduced at trial included records and witness testimony indicating that the defendants’ spending in 2008, on automobiles, real estate, jewelry, and credit card payments exceeded the total income reported on their joint individual income tax return by at least $900,000.
The defendants are scheduled to be sentenced by Chief Judge Moore on February 3, 2016, at 2:00 pm.
Mr. Ferrer commended the investigative efforts of the IRS. The case is being prosecuted by Assistant United States Attorneys Michael Davis and John Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Houma Man Charged with Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL CHAUVIN, age 30, of Houma, was taken into custody today after previously being charged in a one-count Indictment by a federal grand jury with possession of images and videos depicting the sexual exploitation of children under the age of twelve.
If convicted, CHAUVIN faces a maximum term of imprisonment of twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Home-Health Agency Owners and Director of Nursing Indicted in $13 Million Medicare Fraud ConspiracyRead the Press Release
The owners, the director of nursing and patient recruiters of a home-health agency based in Houston were arrested early this morning for their alleged roles in conspiracies to defraud Medicare, to pay illegal healthcare kickbacks and to commit money laundering. The defendants were charged in an indictment unsealed earlier today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Dallas Regional Office and Special Agent in Charge D. Richard Goss of the Internal Revenue Service-Criminal Investigation Division (IRS-CI) Houston Field Office made the announcement.
According to the indictment, Ebong Tilong, 51, and Marie Neba, 51, both of Sugar Land, Texas, used the Texas-based, home-health agency that they owned to bill Medicare for home-health services that were not provided or not medically necessary. They allegedly orchestrated this scheme by paying kickbacks to a series of individuals. First, Tilong and Neba allegedly paid illegal kickbacks to physicians in exchange for authorizing medically unnecessary home-health services. Using the money that Medicare paid for such fraudulent claims, Tilong and Neba allegedly paid illegal kickbacks to Daisy Carter, 56, of Wharton, Texas, and Connie Ray Island, 48, of Houston, in exchange for referring Medicare beneficiaries for home-health services. Finally, all four defendants allegedly paid illegal kickbacks to Medicare beneficiaries, in exchange allowing Tilong and Neba to bill Medicare using their Medicare information for home-health services that were not medically necessary or not provided. Neba, who also served as the company’s director of nursing, also allegedly falsified medical records to make it appear that Medicare beneficiaries qualified for and received home-health services. From in or around February 2006 to in or around June 2015, Tilong and Neba received approximately $13 million for these allegedly fictious or unnecessary home-health services.
An indictment is merely a formal accusation. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG and IRS-CI under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. The case is being prosecuted by Trial Attorney William S.W. Chang of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Hollister Man Pleads Guilty to Armed Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hollister, Mo., man pleaded guilty in federal court today to the armed robbery of Central Bank in Branson, Mo.
Joseph E. Cyrus, 76, of Hollister, pleaded guilty before U.S. Magistrate Judge David P. Rush to stealing $30,946 from Central Bank, 1115 James Epps Road in Branson on Oct. 16, 2015.
According to court documents, Cyrus entered the bank at approximately 9 a.m. and was wearing a blue ski mask and rubber gloves. He was carrying a black semi-automatic pistol. Cyrus approached the teller counter, pointed the pistol at the tellers, and said, “This is a robbery.”
Cyrus demanded that all of the bank’s employees who were positioned behind the teller counter come out where he could see them. He demanded that the tellers give him cash from their teller drawers, and at one point told one of the tellers that he would shoot her in the knee.
Cyrus handed one of the bank employees a blue reusable shopping bag and they put the cash in the bag. Cyrus ordered the employees and customers in the lobby to get down on the ground, then he left the bank and walked to a white Ford Ranger pickup truck that was parked in the parking lot across the street from the bank.
Surveillance photos depict the truck with an unknown state’s license plate, which had been attached to the vehicle backwards (with the face of the plate against the truck’s bumper). Four of the six numbers/letters were clearly visible. Branson police dispatchers broadcast the description of the robber and the vehicle to area law enforcement agencies. An off-duty Branson police officer heard the description of the truck and recalled having seen a similar vehicle parked near the Yacht Club Mobile Home Park in Hollister. The officer was familiar with the truck because it had a “for sale” sign in it and he previously called the listed phone number to inquire about purchasing the truck.
At about noon on the day of the robbery, the officer drove to the parking lot and saw the truck parked in the lot. The truck had a West Virginia license plate and was registered to Cyrus. The manager of the mobile home park told the officer that Cyrus had paid his rent and checked out at approximately 11 a.m. the same day. Cyrus left the mobile home park in another vehicle and left the pickup in the parking lot, hoping that it would sell.
A federal agent made a ruse call to the telephone number listed on the “for sale” sign in the truck. The call went to voice mail, and the agent left a message indicating that he was interested in purchasing the truck. The agent was able to contact Cyrus through an intermediary who called Cyrus and told him he had a potential buyer for the truck. The agent spoke to Cyrus, posing as the potential buyer. Cyrus later called the agent back and told him that he was not returning to Hollister but that the agent could arrange to wire the money to purchase the truck.
On Wednesday, Oct. 21, 2015, Cyrus turned himself in at the Branson Police Department.
Under federal statutes, Cyrus is subject to a sentence of up to 20 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 FBI, the Branson, Mo., Police Department and the Hollister, Mo., Police Department.
Herrin Man Pleads Guilty to Heroin OffensesRead the Press Release
On November 5, 2015, James N. Taylor, a/k/a "James Taylor, Jr.", "James Taylor, II," and "Oolie," 47, of Herrin, Illinois, pled guilty to a two-count indictment charging conspiracy to distribute heroin and distribution of heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2014 and July 2015, in Williamson County. Evidence at the plea hearing established that Taylor was involved with others in the distribution of heroin. On June 26, 2015, Taylor sold heroin to a confidential source working for law enforcement. During June 2015 searches of Taylor and his Herrin residence, agents located pre-packaged heroin and pre-recorded buy money. Upon his arrest, Taylor admitted that he was involved with others in the distribution of heroin.
Taylor is currently being held without bond pending a February 10, 2016, sentencing hearing. At that time, Taylor faces up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Southern Illinois Enforcement. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Hansen Sentenced to 10 Years in Federal Prison for Possession of Child PorngraphyRead the Press Release
SALT LAKE CITY – A Salt Lake City man who admitted he had more than 600 images of child pornography in his possession, including images depicting young children being sexually assaulted by adults, has been sentenced to 10 years in federal prison.
Steven Seth Hansen, age 36, of Salt Lake City, who has a previous federal conviction for use of interstate facilities to transmit information about a minor, must also register as a sex offender, pay restitution in the case, and forfeit a phone and tablet.
As a part of a plea agreement reached with federal prosecutors, Hansen pleaded guilty to one count of possession of child pornography, which included a minimum mandatory sentence of 10 years in federal prison. U.S. District Court Judge Robert J. Shelby, who imposed the sentence last week, ordered Hansen to report to federal prison to begin serving his sentence on Jan. 15, 2016.
Law enforcement officers executed a search warrant at Hansen’s home in March, following up on tips from the National Center for Missing and Exploited Children. Agents and officers with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Utah Internet Crimes Against Children task force recovered a tablet and phone with child pornography images on them. Hansen was charged with receipt of child pornography and possession of child pornography in an indictment returned in March.
This case was investigated and prosecuted as a part of Utah Project Safe Childhood, an initiative targeting child sexual exploitation. Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.