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Tuesday 22 September 2015
New York Man Sentenced to 5 Years in Prison for Operating Investor Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHARLES PRINCIPATO, 53, of Rye, N.Y., was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by three years of supervised release, for engaging in a scheme to defraud investors of more than $1.3 million.
According to court documents and statements made in court, between approximately January 2011 and February 2014, PRINCIPATO acted as principal of Prince Direct, Inc., an entity that he represented to victim-investors as being in the business of marketing products through advertising such as “infomercials.” PRINCIPATO solicited money from victims, including Connecticut residents, for the stated purpose of funding the business operations of Prince Direct. However, instead of using victims’ money for the stated purposes, PRINCIPATO used it for his own personal expenses, including for vacations and home renovations, and for gambling. Through this scheme, PRINCIPATO defrauded victim-investors of more than $1.3 million.
Chief Judge Hall ordered PRINCIPATO to pay restitution in the amount of $1,809,235, which includes additional monies PRINCIPATO owed to investors.
On June 23, 2014, PRINCIPATO pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Susan L. Wines.
New Hampshire Man Sentenced on Drug ChargesRead the Press Release
CONCORD, N.H. – Ryan Demers, 31, of Brookline, New Hampshire, was sentenced today in the United States District Court for the District of New Hampshire to 57 months imprisonment after pleading guilty to one count of conspiracy to distribute oxycodone and one count of distribution of oxycodone announced Acting United States Attorney Donald Feith. Upon his release, Demers will be placed on three years of supervised release which is monitored by the United States Probation Office.
In the fall of 2013, law enforcement officers began an investigation of several individuals including, Samuel Garcia and Jennifer Nunez, and their involvement in a conspiracy to distribute oxycodone. The investigation ultimately led to a court order authorizing the interception of wire and electronic communications over several cellular telephones used by Garcia and Nunez. Intercepted communications confirmed that several customers regularly ordered significant quantities of oxycodone pills from Garcia and Nunez, which were then sold to other individuals in the Manchester area.
During the intercepted calls, investigators identified several telephone numbers, including a telephone number used by Demers that frequently called the drug sources. The intercepted telephone calls showed that on approximately 24 occasions between July 3, 2014 and August 22, 2014, Demers ordered approximately 1,508 oxycodone pills from Nunez and Garcia. In addition, video evidence established that during several of the above interceptions, Demers arrived at the Nunez/Garcia residence shortly after contacting Nunez or Garcia and ordering a quantity of pills.
Upon his arrest on August 7, 2014, Demers admitted that he had been purchasing oxycodone pills from Garcia, Nunez, and others for approximately two years. Demers stated that he purchased between 100- 200 oxycodone pills every other day consumed 10-15 oxycodone pills a day.
“The illegal use of diverted opiates is a pathway to heroin and fentanyl abuse and presents a danger to the welfare of our communities,” said Acting United States Attorney Donald Feith. “We will work with law enforcement to identify opiate traffickers such as Mr. Demers and bring them to justice. The excellent work of the DEA and the Manchester Police made this case possible.”
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh and Assistant U.S. Attorney John J. Farley.
Muskegon Man Indicted for Drug and Firearms OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – A federal grand jury indicted Larry Dwayne Diggs, also known as "Montana," of Muskegon, Michigan for three drug and firearm related offenses. Specifically, the grand jury indicted Diggs for being a Felon in Possession of a Firearm and Ammunition, Possessing a Controlled Substance with Intent to Distribute, and Using and Carrying a Firearm During and in Relation to a Drug Trafficking Crime. The grand jury alleges in the indictment that Diggs committed these offenses on or about July 2, 2015. If convicted of these charges, Diggs faces up to life in federal prison.
The charges are the result of a joint investigation by the Muskegon Township Police Department and the Muskegon Major Crimes Initiative Task Force, which includes the Federal Bureau of Investigation (FBI), the Michigan State Police (MSP), and the Muskegon City Police Department. The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime in the Muskegon area.
The charges in the indictment are only allegations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty, and the government has the burden of proving his guilt beyond a reasonable doubt.
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Methamphetamine Trafficker Admits False Accusations and Receives over 14 Years in PrisonRead the Press Release
HONOLULU – Chief United States District Judge Susan Oki Mollway sentenced Malia Arciero, age 34, a Honolulu resident, yesterday to 172 months (14 years, four months) imprisonment for four counts of knowing and intentional distribution of 50 grams or more of methamphetamine. A federal jury found Arciero guilty of those charges on January 8, 2015.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Chief Judge Mollway found that Arciero’s accusations of criminal misconduct against the lead federal criminal investigator in the case during the criminal litigation constituted obstruction of justice and were attempts to manipulate the judicial proceedings toward a disposition favorable to her. On the eve of this sentencing, Arciero filed a sworn declaration that the prior assertions she made about the agent’s misconduct in the criminal litigation were unsubstantiated and without any basis. She also filed a dismissal of a state civil lawsuit against the agent containing similar allegations.
According to the information produced to the court, Arciero was arrested on April 30, 2013, as she was transporting a pound of methamphetamine to a person cooperating with law enforcement. After her arrest, Arciero confessed to transporting the methamphetamine and previously distributing multi-pound quantities of methamphetamine.
The case resulted from an investigation by agents of Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney Beverly Wee Sameshima is handling the prosecution, while former Assistant U.S. Attorney Michael Kawahara conducted the prosecution through trial.
Mercer County man pleads guilty to Federal drug chargeRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced that a Bluefield man pled guilty in federal court in Bluefield today to a federal drug charge. Steven Andrew Short, 29, pled guilty to using a communication facility to facilitate a felony, admitting that on April 8, 2015, he used a telephone near Rock, West Virginia, to arrange a drug deal with a confidential informant. Shortly after the phone call, Short sold hydromorphone to the informant. Short admitted that he had sold more than 1800 hydromorphone pills over a period of time. He faces up to four years in prison when he is sentenced on January 26, 2016
This case was investigated by the Southern Regional Violent Drug and Violent Crime Task Force under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District. Assistant United States Attorney John File is handling the prosecution.
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Member of Pima Salt River Tribe Sentenced to Ten Years for Federal Child Sexual Abuse Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Patrick Watuema, 55, an enrolled member of the Pima Salt River Tribe in Ariz., was sentenced this morning in federal court in Albuquerque, N.M., to 120 months in prison followed by 20 years of supervised release for his aggravated child sexual abuse conviction. Watuema will be required to register as a sex offender when he completes his term of incarceration.
Watuema was arrested on May 5, 2014, on a criminal complaint alleging that he engaged in a sexual act with a child who had not attained the age of 12 years. Watuema subsequently was indicted on May 21, 2014, on an aggravated child sexual abuse charge. According to court filings, Watuema sexually assaulted a six-year-old Navajo child on April 30, 2014, in To’hajiilee, N.M., which is located in the Navajo Indian Reservation.
In entering his guilty plea on June 18, 2015, Watuema admitted sexually assaulting the six-year-old child victim on April 30, 2014. He also admitted to having unlawful sexual contact with the child victim on other occasions. Watuema acknowledged that the victim was under the age of 12 years at the time he committed the offense.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of Navajo Nation Division of Public Safety with assistance from Albuquerque Sexual Assault Nurse Examiners (SANE) at the University of New Mexico Hospital, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Martinsburg man sentenced to 15 years in prison for cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Vincent Whorley, 32, of Martinsburg, was sentenced to 188 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Whorley sold cocaine base near an elementary school in Jefferson County, West Virginia. He pled guilty in June 2015 to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1,000 Feet of a School.” Whorley has multiple previous drug trafficking convictions. As a result, he was classified as a Career Offender and his advisory sentencing guideline range was enhanced pursuant to the Federal Sentencing Guidelines.
One of Whorley’s co-defendants, Dawn Marie Wiley, 26, of Kearneysville, West Virginia, pled guilty to the same offense and was sentenced to 21 months in prison.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Charles Town, West Virginia Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Marshall County, WV woman sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Alicia D. Duerr, 30, of Moundsville, West Virginia, was sentenced today to 37 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Duerr repeatedly conspired with other individuals to possess and to distribute crack cocaine in Ohio and Marshall Counties in West Virginia. She pled guilty in June 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Crack Cocaine.”
Assistant U.S. Attorney Robert McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Marshall County woman sentenced for stealing from local non-profitRead the Press Release
WHEELING, WEST VIRGINIA – Richelle D. Blair, 37, of Glen Dale, West Virginia, was sentenced today for embezzling money from a local non-profit organization, United States Attorney William J. Ihlenfeld, II, announced.
Blair was formerly employed by Marshall County Starting Points Center, Inc., a non-profit social services organization in Marshall County, West Virginia. Starting Points receives federal grants from the United States Department of Health and Human Services. Blair repeatedly utilized the organization’s funds to purchase items for her own personal use.
Blair pled guilty in June 2015 to a criminal Information charging her with one count of “Theft from an Organization Receiving Federal Funds.” She was sentenced today to probation for a period of two years and ordered to pay restitution in the amount of $23,000.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. District Judge John Preston Bailey presided.
Man Sentenced to Prison for Gainesville Bank RobberyRead the Press Release
GAINESVILLE, FLORIDA – Jack Lee Wright, 53, of Ft. Lauderdale, Florida, was sentenced today to 18 months in prison for knowingly taking U.S. currency by force from a Gainesville bank. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea on June 23, 2015, Wright admitted that, on April 25, 2014, he handed a Wells Fargo Bank teller a note listing the monetary denominations he wanted. He told her that she had ten seconds to give him the money, that she should not alert anyone, and that he had a gun in his bag. As a result, the teller gave Wright $2,025. In June 2014, Wright was identified as the perpetrator of a bank robbery in Glenwood Springs, Colorado, through a surveillance video shown on the news. Wright was later located and arrested in Maryland, possessing $10,000 and a suitcase containing clothes worn in other robberies. Officers also found a toy gun under the seat of his truck.
The court ordered that Wright’s sentence be served consecutively to the 48-month federal prison sentence imposed in Colorado.
The charges were the result of an investigation by the Federal Bureau of Investigation, the Gainesville Police Department, and the Thurmont, Maryland Police Department. The case was prosecuted by Assistant United States Attorney Gregory P. McMahon.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Man Charged in Bank RobberyRead the Press Release
Donald Joseph Brown, 44, previously living in Philadelphia, PA, was charged today by indictment with bank robbery, announced U.S. Attorney Zane David Memeger. The indictment charges that Brown committed a robbery of the TD Bank, located at 3805 Neshaminy Boulevard in Bensalem, Pennsylvania, on August 27, 2015.
If convicted, Brown faces a maximum sentence of 20 years in prison, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Bensalem Township Police Department. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lowell Man Arrested for $440,000 Embezzlement SchemeRead the Press Release
BOSTON – A Lowell man was arrested yesterday on bank fraud charges in connection with his theft of more than $440,000 from the Spain-based seafood and fish distributor for which he served as the United States representative.
Jorge Manuel Silva, 58, was indicted on 23 counts of bank fraud. He was released on conditions during his initial appearance today before U.S. District Court Magistrate Judge Donald L. Cabell.
The indictment alleges that Silva was an independent contractor for Seaport Fish Co., a corporation established to distribute fish and seafood in the United States by Freiremar Group, headquartered in Spain. Silva was responsible for coordinating sales to Seaport customers, collecting customer payments, and depositing those payments into Seaport’s account at Bank of America. The indictment alleges that, from July 2008 through June 2010, Silva instead diverted more than $903,000 in Seaport customer checks to two accounts he held at Enterprise Bank in Lowell.
On occasion, Silva reimbursed Seaport with checks drawn on his Enterprise accounts several weeks or months after he had deposited the customer checks into those accounts. On other occasions, he used Seaport funds to pay personal expenses and the expenses for his other businesses. In this fashion, Silva diverted about $440,000 of Seaport funds to his own uses.
The charge of bank fraud provides a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leucadia National Corporation to pay $240,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Leucadia National Corporation for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when it acquired voting securities of KCG Holdings Inc. in July 2013. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Leucadia has agreed to pay a $240,000 civil penalty to resolve the lawsuit.
The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act, the maximum civil penalty is $16,000 per day.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint.
Leucadia Complaint (206.18 KB)
Leucadia Stipulation (75.35 KB)
Lehigh Acres Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced George Borroto (23, Lehigh Acres) to four years in federal prison for possessing child pornography. He pleaded guilty on February 25, 2015.
According to court documents, from at least July 8, 2014, through August 25, 2014, Borroto knowingly possessed child pornography. During the execution of a search warrant at his home on August 25, 2014, agents located and seized Borroto’s cellphone. A forensic examination of the phone subsequently revealed 88 images depicting child pornography, along with a messaging app that Borroto’s had downloaded and used for chatting with others and for receiving child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Las Cruces Man Sentenced to Federal Prison for Heroin Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE — Jessie Manuel Pena, 32, of Las Cruces, N.M., was sentenced this morning in federal court in Las Cruces to 77 months in prison followed by three years of supervised release for his conviction on heroin trafficking and firearms charges.
Pena was arrested on April 22, 2015, on a criminal complaint charging him with being a felon in possession of a firearm and possession of heroin. According to the complaint, on July 19, 2013, in Doña Ana County, N.M., law enforcement officers located and arrested Pena on a state warrant for a probation violation and failure to appear. During a search incident to Pena’s arrest, the officers seized a loaded handgun from the waistband of Pena’s pants and approximately 11.4 grams of heroin from a pocket in Pena’s pants.
Pena was subsequently indicted on July 16, 2014, and charged with being a felon in possession of a firearm and ammunition, possession of a firearm and ammunition by a user and addict of a controlled substance, and simple possession of heroin. Pena was prohibited from possessing firearms or ammunition because he previously had been convicted of distribution of marijuana, tampering with evidence, possession of a firearm or destructive device by a felon, possession of a controlled substance, residential burglary and larceny.
On Sept. 3, 2014, Pena pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the Las Cruces Police Department. Assistant U.S. Attorney Maria Y. Armijo prosecuted this case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Justice Department Awards $232,000 to NOPD for Body-Worn Camera ProgramRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that, as part of President Obama’s commitment to building trust and transparency between law enforcement and the communities they serve, the Justice Department has awarded a $232,000 grant to the New Orleans Police Department to expand the use of body-worn cameras and explore their impact.
Attorney General Loretta E. Lynch announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states. The body-worn camera pilot program announced in May 2015 includes $19.3 million to purchase body-worn cameras, $2 million for training and technical assistance and $1.9 million to examine the impact of their use. The grants, awarded by the department’s Office of Justice Programs (OJP), build on President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years.
“This vital pilot program is designed to assist local jurisdictions that are interested in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility,” said Attorney General Lynch. “The impact of body-worn cameras touches on a range of outcomes that build upon efforts to mend the fabric of trust, respect and common purpose that all communities need to thrive.”
“We thank the DOJ and OJP for this grant award in support of NOPD’s reform efforts. Body-worn cameras are essential to protecting, and building trust between, our law enforcement officers and the public they serve.”
The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. Each agency awarded a grant is responsible for developing a plan for long-term storage, including the cost of storing data.
In addition to funds to help purchase body-worn cameras and train officers in their use, grants under the Bureau of Justice Assistance’s (BJA’s) Smart Policing Initiative will support police departments in Miami, Milwaukee and Phoenix as they examine the impact of body-worn cameras on citizen complaints, internal investigations, privacy, community relationships and cost effectiveness. Each of these three departments will partner with a research institution to gain insight on the merits of deploying body-worn camera programs.
Johns Island Man Sentenced to Ten Years for Viewing Child PornographyRead the Press Release
Contact Person: Dean Secor (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Horace Leon Crosby, Jr., age 43, of Johns Island, South Carolina was sentenced in federal court in Charleston, South Carolina, for Accessing with Intent to View Child Pornography, a violation of 18 U.S.C. §§ 2252A(a)(5)(B) and 2252A(b)(2). United States District Judge Richard M. Gergel of Charleston sentenced Crosby to 120 months and Lifetime Supervised Release.
Evidence presented at the change of plea hearing established that the U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI), Charleston, South Carolina initiated an investigation into a Peer to Peer (P2P) internet software user utilizing an internet protocol (IP) address located in Johns Island. In April 2013, undercover ICE-HSI agents were able to determine that the P2P user’s shared folder had listed multiple files with titles indicative of child pornography. Further investigation revealed that Crosby was the internet subscriber and P2P user for the IP address.On June 20, 2013, ICE-HSI agents and the Charleston County Sheriff's Office executed a search warrant at Crosby’s residence and his computer was seized. During the execution of the search warrant, Crosby was interviewed and convicted in state court in South Carolina in 1990 and 1996 for Committing Lewd Acts on Minors. Those prior convictions increased the penalties faced by Crosby in this child pornography case. The case was investigated by agents of the Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) with the assistance of the Charleston County Sheriff’s Office. Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov. #####Johnny Ray Sammons Sentenced to 393 Months in Prison for Producing and Distributing Child PornographyRead the Press Release
KNOXVILLE, Tenn.- On Sept. 21, 2015, Johnny Ray Sammons, 33, of Gatlinburg, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 393 months in prison for producing child pornography and distribution of child pornography. Following his release from prison, Sammons will be supervised by the U.S. Probation Office for a term of 25 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Sammons pleaded guilty in March 2015 to federal charges stemming from his use of two minor females to make pornographic videos and pictures and his distribution of those depictions to others via the Internet. Undercover investigators with the Knoxville Police Department’s Internet Crimes Against Children Task Force (KPD-ICAC) and U.S. Homeland Security Investigations (HSI) learned that someone in the Gatlinburg area was circulating child pornography from a publicly open wireless router to undercover investigators in Queensland, Australia. KPD-ICAC investigators utilized an undercover persona to contact the suspect and glean more information about the source of the child pornography. During an undercover surveillance in the area of the public wireless router, investigators spotted the victims at a local fast food restaurant. Sammons was identified as the person who was making and distributing the child pornography and arrested.
This investigation was conducted by KPD-ICAC, HSI, and the Gatlinburg Police Department. Assistant U.S. Attorney Matthew Morris represented the United States.
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 U.S. 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.
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Irish National Extradited to the United States from the United Kingdom for Trafficking of Rhinoceros HornsRead the Press Release
Patrick Sheridan, an Irish national, who was arrested on Jan. 9, 2015, in the United Kingdom pursuant to a request by the United States, was extradited to the United States on Friday and appeared in federal court in Waco, Texas yesterday. The U.S. sought Sheridan’s extradition for his role in trafficking black rhinoceros horns, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division.
“This extradition is a significant step forward in our international efforts to address wildlife trafficking and demonstrates that our international partners are also committed to ending this illegal trade in endangered species,” said Assistant Attorney General Cruden. “Rhino horn trafficking is having a devastating effect on the rhino and the allegations facing this individual are just the type of illegal behavior that is fueling an international market for horns. We must stop it in its tracks.”
On May 13, 2014, a federal grand jury in Waco, Texas, returned an indictment that has since been unsealed, charging Patrick Sheridan and a co-defendant with conspiring to traffic in horns from black rhinoceros. In addition to conspiracy, the indictment charges substantive violations of the Lacey Act for wildlife trafficking and making a false wildlife document.
According to the indictment, Sheridan, along with a co-defendant and Michael Slattery Jr., used a “straw buyer” to purchase two black rhinoceros horns from a taxidermist in Texas, which the group then transported to New York, where they sold the horns. In January 2014, Michael Slattery Jr. pleaded guilty and was sentenced 14-months in prison for his role in the conspiracy. In addition to the trafficking, the indictment also charges Sheridan and his co-defendant with making a fictitious and fraudulent bill of sale in connection with the rhinoceros horns, in an attempt to make their illegal purchase of the horns appear legal.
The transport of Sheridan to the Western District of Texas to face these charges concluded the extradition process from the United Kingdom, a process governed by an extradition treaty between the United States and the United Kingdom. Sheridan’s arraignment and detention hearing is scheduled in federal court in Waco on Sept. 24, 2015.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law. If convicted of these charges, the defendants each face up to five years in prison on each of the charges, as well as fines up to $250,000.
The case was investigated by agents from U.S. Fish and Wildlife Service Office of Law Enforcement. The case is being prosecuted by Assistant U.S. Attorney Greg Gloff for the Western District of Texas and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section, with assistance from the Justice Department’s Office of International Affairs.
Hugo Man Found Guilty of Felon in Possession of ExplosiveRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNETH JAMES HEBERT, a/k/a Keno, age 51, of Hugo, Oklahoma was found guilty, by a federal jury, for being a FELON IN POSSESSION OF EXPLOSIVE, in violation of Title 18, United States Code, Sections 842(i)(1), 844(a)(1) and 2. The jury trial began on Monday, September 21, 2015 and concluded on September 22, 2015 with the guilty verdict.
Evidence at trial proved that in or about January 2014, the exact date being unknown to the Grand Jury, within the Eastern District of Oklahoma, the defendant, having been convicted in the District Court of Choctaw County, Oklahoma, for a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, an explosive, to-wit: ATLAS SF Electric Blasting Caps, which had been shipped and transported in interstate commerce.
The verdict obtained was the result of an investigation by the Hugo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant was remanded into custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorneys Chris Wilson represented the United States.
Hudson County, New Jersey, Check-Casher Admits Failing to File Federally Required Reports for Cash Transactions over $10,000Read the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted to failing to file federally required currency transaction reports in connection with his check-cashing business, U.S. Attorney Paul J. Fishman announced.
Louis Sclafane, 83, of Bayonne, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with causing a domestic financial institution to fail to file Currency Transaction Reports (CTR), which are required for U.S. currency transactions in excess of $10,000 conducted by or on behalf of a single person on the same day, totaling $381,595 over a year and a half.
According to documents filed in this case and statements made in court:
Sclafane was the owner and sole proprietor of Advance Financial (AF), a check-cashing establishment located in Bayonne. Sclafane oversaw the day-to-day operations of AF, such as cashing checks for its customers and withdrawing currency from bank accounts associated with AF.
Between Sept. 29, 2010 and April 2012, Sclafane cashed at least 20 checks over $10,000 each without filing CTRs with the U.S. Treasury, despite being required to do so by the Federal Bank Secrecy Act.
The charge of causing a financial institution to fail to file CTRs for the purpose of evading the reporting requirements of the Bank Secrecy Act, to which Sclafane pleaded guilty, carries a maximum potential penalty of 10 years in prison and a maximum fine of $500,000. Sentencing is scheduled for Jan. 6, 2016.
U.S. Attorney Fishman credited special agents of the IRS Criminal Investigations Division, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
Defense counsel: Perter Carter Esq., Assistant Federal Public Defender, Newark
Hope Man Sentenced to 70 Months in Prison for Transporting Child PornographyRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Conrad Neal Freeman, 21, of Hope, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to 70 months in prison and 7 years of supervised release for transporting child pornography and for possession of child pornography. Abbott pleaded guilty to the charges on May 21, 2015.
According to court records, in January 2014, Freeman engaged in an online chat with an undercover Special Agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in California. In that conversation, Freeman agreed to send the undercover agent images of child pornography in exchange for the opportunity to observe the agent engage in sexual acts with the agent’s purported 11-year-old daughter. Freeman then sent the undercover agent 10 images and 1 video containing child pornography. A search warrant later executed at Freeman’s residence in Hope resulted in the recovery of a laptop containing 65 images and 5 videos containing child pornography.
The investigation was conducted by HSI. The 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 U.S. 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the "resources" tab for information about Internet safety education.Former U.S. Army Specialist Sentenced to 30 Months in Prison for Taking Bribes While Deployed in AfghanistanRead the Press Release
A former specialist with the U.S. Army stationed at Forward Operating Base (FOB) Gardez, Afghanistan, was sentenced today to 30 months in prison for accepting a $20,000 bribe from a truck driver in exchange for allowing him to take thousands of gallons of fuel from the base.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Brian Stretch of the Northern District of California and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty on June 9, 2015, to bribery of a public official. In addition to imposing the prison term, U.S. District Judge Beth L. Freeman of the Northern District of California ordered Tran to pay $69,000 in restitution and to forfeit $11,437 as well as a vehicle that he purchased with bribe proceeds.
In connection with his guilty plea, Tran admitted that, in exchange for approximately $20,000 in cash, he permitted a local Afghan fuel truck driver to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning to the U.S., he used the cash to purchase a 2010 Dodge Challenger.
Tran also admitted to accepting at least $1,000 in cash from another member of his unit, former U.S. Sergeant Seneca Darnell Hampton, 31, of Columbus, Georgia, in exchange for Tran’s agreement not to report Hampton or former U.S. Sergeant First Class James Edward Norris, 33, of Fort Irwin, California, for also taking cash bribes in exchange for fuel. Both Hampton and Norris previously pleaded guilty to one count of conspiracy to commit bribery of a public official and one count of money laundering. Hampton was sentenced to 24 months in prison, and Norris was sentenced to 51 months in prison. In addition, both Hampton and Norris were ordered to pay restitution and to forfeit vehicles purchased with bribe proceeds.
The case was investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency’s Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Offices of the Northern District of California and Middle District of Georgia.
Former U.S. Army Specialist Sentenced to 30 Months in Prison for Taking Bribes While Deployed in AfghanistanRead the Press Release
WASHINGTON – A former specialist with the U.S. Army stationed at Forward Operating Base (FOB) Gardez, Afghanistan, was sentenced today to 30 months in prison for accepting a $20,000 bribe from a truck driver in exchange for allowing him to take thousands of gallons of fuel from the base.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Brian Stretch for the Northern District of California and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty on June 9, 2015, to bribery of a public official. In addition to imposing the prison term, U.S. District Judge Beth L. Freeman of the Northern District of California ordered Tran to pay $69,000 in restitution and to forfeit a vehicle that he purchased with bribe proceeds as well as $11,437.
In connection with his guilty plea, Tran admitted that, in exchange for approximately $20,000 in cash, he permitted a local Afghan fuel truck driver to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning to the U.S., he used the cash to purchase a 2010 Dodge Challenger.
Tran also admitted to accepting at least $1,000 in cash from another member of his unit, former U.S. Sergeant Seneca Darnell Hampton, 31, of Columbus, Georgia, in exchange for Tran’s agreement not to report Hampton or former U.S. Sergeant First Class James Edward Norris, 33, of Fort Irwin, California, for also taking cash bribes in exchange for fuel. Both Hampton and Norris previously pleaded guilty to one count of conspiracy to commit bribery of a public official and one count of money laundering. Hampton was sentenced to 24 months in prison, and Norris was sentenced to 51 months in prison. In addition, both Hampton and Norris were ordered to pay restitution and to forfeit vehicles purchased with bribe proceeds.
The case was investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency’s Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Offices of the Northern District of California and Middle District of Georgia.
Former U.S. Army Specialist Sentenced to 30 Months in Prison for Taking Bribes While Deployed in AfghanistanRead the Press Release
SAN JOSÉ – A former specialist with the U.S. Army stationed at Forward Operating Base (FOB) Gardez, Afghanistan, was sentenced today to 30 months in prison for accepting a $20,000 bribe from a truck driver in exchange for allowing him to take thousands of gallons of fuel from the base announced Acting U.S. Attorney Brian Stretch, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty on June 9, 2015, to bribery of a public official. The sentence was handed down by U.S. District Judge Beth L. Freeman. Judge Freeman also ordered Tran to pay $69,000 in restitution and to forfeit a vehicle that he purchased with bribe proceeds as well as $11,437.
In connection with his guilty plea, Tran admitted that, in exchange for approximately $20,000 in cash, he permitted a local Afghan fuel truck driver to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning to the U.S., he used the cash to purchase a 2010 Dodge Challenger.
Tran also admitted to accepting at least $1,000 in cash from another member of his unit, former U.S. Sergeant Seneca Darnell Hampton, 31, of Columbus, Georgia, in exchange for Tran’s agreement not to report Hampton or former U.S. Sergeant First Class James Edward Norris, 33, of Fort Irwin, California, for also taking cash bribes in exchange for fuel. Both Hampton and Norris previously pleaded guilty to one count of conspiracy to commit bribery of a public official and one count of money laundering. Hampton was sentenced to 24 months in prison, and Norris was sentenced to 51 months in prison. In addition, both Hampton and Norris were ordered to pay restitution and to forfeit vehicles purchased with bribe proceeds.
The case was investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency’s Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Offices of the Northern District of California and Middle District of Georgia.
Former Owner of Edgewater Medical Center Pleads Guilty to Perjury for Willfully Impeding Efforts to Collect $188 Million in Civil JudgmentsRead the Press Release
CHICAGO — The former owner of Edgewater Medical Center on Chicago’s North Side pleaded guilty today to a federal perjury charge stemming from his efforts to thwart attempts by the U.S. and a creditor to collect more than $188 million in civil judgments.
PETER G. ROGAN admitted that he lied in a federal affidavit when he denied controlling millions of dollars in a trust account in the Bahamas, according to a written plea agreement. Rogan acknowledged that he had control over the money and its distribution to beneficiaries, and that he had established the trust to protect his assets from judgment creditors. Rogan also admitted that he willfully violated several court orders in a bank creditor lawsuit, when he made – and caused his legal counsel to make – false representations to the Court about his control over the offshore trust.
Rogan’s false statements in the affidavit and his willful disobedience of Court orders were intended to prevent the U.S. government and the bank creditor from collecting more than $188 million in combined civil judgments arising from fraud during Rogan’s tenure as CEO of the now-shuttered hospital, according to the plea agreement.
Rogan, 69, formerly of Valparaiso, Ind., pleaded guilty to one count of perjury. Under the terms of the plea agreement, Rogan faces a sentence of 12 to 21 months in prison. U.S. District Judge Harry D. Leinenweber scheduled a sentencing hearing for Oct. 14, 2015, at 9:45 a.m.
Rogan once owned Edgewater Medical Center and later sold it, but he continued to manage the facility through various companies he owned. The hospital, located at 5700 N. Ashland Ave., closed in 2001 amidst a federal criminal investigation that resulted in the healthcare fraud convictions of a Rogan-owned management company, a hospital administrator and several doctors, the latter of whom performed medically unnecessary surgical procedures and treatments on unsuspecting patients.
After a civil trial in 2006, the United States obtained a judgment of $64,259,032 against Rogan for his role in Edgewater’s submission of false claims for reimbursement under the Medicare program. The following year, Dexia Crédit Local, a bank that extended credit financing to the hospital, was awarded a $124 million default judgment in a separate civil fraud suit against Rogan and his companies.
In the course of their respective proceedings against Rogan, the United States and Dexia discovered that Rogan’s Bahamian trust account was being used to hold millions of dollars in secret offshore assets. Rogan had created the trust with the help of FREDERICK M. CUPPY, an Indiana attorney, as well as another attorney described in the indictment and plea agreement as “Florida Lawyer.” Cuppy, formerly of Valparaiso, Ind., and now of Fort Lauderdale, Fla., pleaded guilty to a perjury charge before Judge Leinenweber. He was sentenced in 2013 to one year and a day in prison.
On Dec. 21, 2006, Rogan responded to the government’s collection efforts by filing an affidavit with the Court in which he denied that he exercised control over assets in the trust account. Rogan admitted in the plea agreement that this statement was false and misleading. Rogan also admitted that he willfully and wrongfully violated several court orders in the Dexia litigation, including lying and causing his attorneys to lie to the Court about his control over his offshore trust.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant United States Attorneys Andrew S. Boutros, Daniel W. Gillogly, Eric S. Pruitt and Joseph A. Stewart.
Plea Agreement
Former Employee of Social Security Administration Sentenced to 21 Months in Federal Prison for Cashing Her Deceased Mother's Social Security ChecksRead the Press Release
CHICAGO —A former employee of the Social Security Administration has been sentenced to 21 months in federal prison for cashing her deceased mother’s Social Security checks for nearly 30 years after her death.
GEORGIA THOMPSON, 68, of Chicago, received $419,644 in fraudulent benefits from 1986 to 2014. Thompson’s mother died on Aug. 3, 1986, but Thompson failed to notify the Social Security Administration, even though Thompson herself was employed by the agency.
Thompson pleaded guilty in June to one count of theft of government funds. On Monday, U.S. District Judge Andrea R. Wood imposed a sentence of 21 months in federal prison. Judge Wood also ordered Thompson to pay $419,644 in restitution.
For the first 21 years after the death of Thompson’s mother, the U.S. Treasury mailed checks to a Post Office Box in Chicago that was controlled by Thompson. Thompson converted the funds to her own use by forging her mother’s signature on the checks.
In approximately October 2007, Thompson used her deceased mother’s personal identifying information to instruct the Social Security Administration to directly deposit the funds into a bank account controlled by Thompson. The U.S. Treasury complied with the instruction and continued to pay the Social Security benefits. It also sent Thompson a one-time stimulus payment of $250 in May 2009.
The Social Security Administration discovered the fraud in 2014 after noticing that Thompson’s deceased mother had not used her Medicare benefits in several years.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Tracey Thanos, Special Agent-in-Charge of the Chicago Field Division of the Social Security Administration’s Office of the Inspector General.
The government was represented by Special Assistant U.S. Attorney Jared C. Jodrey.
Federal Court Permanently Bars Wisconsin Tax Return Preparer from Preparing Tax Returns for OthersRead the Press Release
Allegedly Concocted Phony Businesses and Made Other False Claims on Customers’ Returns
A federal court has permanently barred an Appleton, Wisconsin, tax return preparer from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order prohibits Gerardo Garcia, aka Gerry Garcia, and his firm Garcia Enterprises LLC, from acting as a tax return preparer and from continuing to operate a tax return preparation business. The order was entered by the U.S. District Court for the Eastern District of Wisconsin. Garcia agreed to the entry of the injunction but did not admit to the allegations in the civil complaint against him.
According to the complaint, Garcia prepared false and improper returns during the 2015 filing season, even though the Internal Revenue Service (IRS) had previously assessed $26,000 in penalties against him. The complaint alleged that Garcia prepared tax returns on which he concocted phony businesses for his customers in order to understate his customers’ tax liabilities or inflate their refunds. In addition, as alleged in the complaint, Garcia fabricated business expenses, understated his customers’ business income and claimed other false or improper deductions, credits and filing statuses. In one case, the complaint alleged that Garcia prepared two tax returns for a customer that reported more than $10,000 in losses over two years from a non-existent “aquaculture” business that Garcia asserted his customer owned. The complaint cited several additional examples, including Garcia improperly claiming child tax credits for children, who live outside of the United States; dependency exemptions without proof the customer supported the children; and incorrect filing statuses, such as head-of-household, that resulted in more favorable tax rates.
The injunction order requires Garcia to provide the United States with a list of his customers since 2010 and to send a copy of the court’s injunction order to all customers for whom he prepared returns. The injunction order also requires Garcia to provide a link to the court’s injunction order on any website he maintains and to post a copy in any physical business location in which he receives customers and potential customers for any bookkeeping, payroll or other financial services.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Authorities Arrest New Mexico Man Charged with Sex Trafficking of ChildrenRead the Press Release
In El Paso, a federal grand jury has charged a 31-year-old Artesia, NM, man with sex trafficking of children announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
The federal indictment, returned on September 9, 2015, charges Vernon Dimayuga (aka “Vito”) with three counts of Sex Trafficking of Children. According to the indictment filed in this case, beginning in May 2011 through May 2012, Dimayuga recruited three children under the age of 18 to engage in commercial sex acts.
Federal authorities arrested Dimayuga in Las Cruces, NM, on Friday. The indictment and arrest warrant were unsealed during his initial appearance yesterday in federal court in Las Cruces before U.S. Magistrate Judge Joel M. Carson. He remains in federal custody pending a preliminary and detention hearing scheduled for 9:30am on Thursday before U.S. Magistrate Judge Stephan M. Vidmar in Las Cruces.
“The arrest of Mr. Dimayuga for sex trafficking of minors demonstrates that the FBI and our partners in the Department of Homeland Security, El Paso Police Department, and El Paso County Sheriff's Office will investigate all instances where children in our community are being harmed or exploited,” said FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
“HSI special agents are committed to working with our law enforcement partners to ensure those responsible for such heinous acts are justly prosecuted,” Waldemar Rodriguez, Special Agent in Charge of HSI El Paso, said.
Upon conviction, the defendant faces between ten years and life in federal prison.
This case was the result of a joint investigation by the Federal Bureau of Investigation and Homeland Security Investigations as part of the Anti-Trafficking Coordination Team (ACTeam). Assistant United States Attorney Rifian Newaz is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Father and Son Head to Prison in Massive Marijuana Grow Field CaseRead the Press Release
BROWNSVILLE, Texas – Miguel Echevarria-Zuniga, 51, and Miguel Echevarria-Guizar, 22, have been ordered to federal prison following their convictions of manufacturing marijuana, announced U.S. Attorney Kenneth Magidson. The father and son pleaded guilty April 3, 2015.
Today, U.S. District Judge U.S. District Andrew S. Hanen handed Echevarria-Guizar a total of 36 months in federal prison. Echevarria-Zuniga was sentenced last month to serve 42 months for the marijuana charge and for being an alien found in the United States after having been deported. Both men are expected to face deportation proceedings following their release from prison.
The convictions stem from an August 2014 alien smuggling investigation by Homeland Security Investigations (HSI) which revealed that part of a 40-acre tract of land in a rural area of Willacy County was being used to grow marijuana. Agents discovered more than 9,000 marijuana plants growing in the field.
Agents arrested the Echevarrias, both Mexican citizens, as they attempted to abscond from the area. Initially, the Echevarrias denied any involvement with marijuana field and claimed to be part of a group of illegal aliens that were being housed in a different part of the land. However, fingerprint analysis linked both defendants to items found in the marijuana field. Agents also searched a storage shed which was rented by Echevarria-Zuniga and found sales receipts for items found in the marijuana field.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by HSI and prosecuted by Assistant U.S. Attorneys Israel Cano III and David A. Coronado.
El Paso Man Sentenced to 7 Years in Federal Prison for Brokering 25 Kilogram Cocaine DealRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that ANDREW DURON, also known as “Chavo,” 35, of El Paso, Texas, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 84 months of imprisonment, followed by four years of supervised release, for brokering a 25 kilogram cocaine transaction.
According to court documents and statements made in court, DURON was involved in a cocaine trafficking organization that transported cocaine from Texas to Connecticut. In 2014, the organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met DURON in North Carolina. During the meeting, DURON told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, DURON, the confidential source and an undercover DEA agent met in New Jersey where DURON agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, DURON stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
On August 23, 2014, DURON met the undercover DEA agent at a location in Wethersfield. DURON told the undercover agent that his associates were in Connecticut and that DURON and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. DURON and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. After DURON met two of his associates in the store, one of DURON’s associates met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested DURON and two of his associates. Investigators also recovered from the vehicle driven by DURON’s associate a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver.
DURON has been detained since his arrest. On May 20, 2015, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Eight individuals have been charged at a result of this investigation.
This investigation is being led by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Eight Members of Violent Detroit Street Gang Charged with Rico and Firearms OffensesRead the Press Release
Eight members of Band Crew, a northwest Detroit street gang, were charged in an indictment unsealed today with various offenses based on their roles in gang-related attempted murders, robberies and shootings. The charges are the result of the Detroit One initiative, a collaborative effort between law enforcement and the community to reduce violent crime in Detroit.
The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division.
According to the indictment, Band Crew was an association comprised of smaller gangs, including Constantly Making Hundreds (CMH), Young N Crispy (YNC), Pushit (or Pusha) Boy Family (PBF), and Family Over Everything Love is Forever (FOE Life). The indictment alleges that Band Crew operated in northwest Detroit, and that members claimed this area as their territory by “tagging” buildings with gang-related graffiti, including markings such as “#22 BandCrew,” “BAND CREW,” “22 BAND CREW,” “YNCMH” and “PBF.” The indictment fuller alleges that Band Crew members and associates worked to defend their territory, to promote and maintain the status and reputation of the gang, and to engage in or threaten violence in retaliation for perceived wrongs.
The indictment charges eight Band Crew members with a variety of crimes including attempted murders, shootings, assaults, home invasions and robberies. Specifically:
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Corey Deandre Mapp, 22, of Detroit, is charged with RICO conspiracy, use and carry of a firearm during and in relation to a crime of violence and assault with a dangerous weapon in aid of racketeering.
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Alexander Teontae Johnson, 20, of Detroit, is charged with RICO conspiracy.
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Leo James Johnson, 20, of Detroit, is charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, use and carry of a firearm during and in relation to a crime of violence and possession of a stolen firearm.
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Joseph Hezekiah Ford, 19, of Detroit, is charged with RICO conspiracy.
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Travontae Javon Joseph, 19, of Detroit, is charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, use and carry of a firearm during and in relation to a crime of violence and possession of a stolen firearm.
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Jamell Loval Smith, 19, of Detroit, is charged with RICO conspiracy.
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Mario Perkins, 18, of Detroit, is charged with RICO conspiracy, use and carry of a firearm during and in relation to a crime of violence and conspiracy to assault with a dangerous weapon in aid of racketeering.
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Akeem Arteaze Walker, 19, of Detroit, is charged with RICO conspiracy, use and carry of a firearm during and in relation to a crime of violence and assault with a dangerous weapon in aid of racketeering.
All of the defendants are in custody.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
This case is being investigated by the ATF’s CVRP Task Force (Comprehensive Violence Reduction Partnership), which consists of representatives of the ATF, Detroit Police Department, Michigan State Police and Michigan Department of Corrections. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Eastern District of Michigan.
Band Crew Indictment
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District Men Sentenced to Prison Terms for Robbing Teenagers at GunpointRead the Press Release
WASHINGTON – Cornelius Rice, 27, and Jamal Allen, 25, both of Washington, D.C. have been sentenced to prison terms for robbing seven teenagers at gunpoint earlier this year in Southeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Rice pled guilty in July 2015, in the Superior Court of the District of Columbia, to charges of robbery and possession of a firearm during a crime of violence. Allen pled guilty in June 2015 to charges of robbery while armed and fleeing a law enforcement officer.
The Honorable Todd E. Edelman sentenced Rice on Sept. 11, 2015, to a 6 ½-year prison term, to be followed by three years of supervised release. The judge sentenced Allen on Aug. 25, 2015, to six years in prison, to be followed by five years of supervised release.
According to the government’s evidence, on Feb. 15, 2015, at about 6:30 p.m., Rice, Allen, and two other men followed seven teenagers, ages 14 and 15, into a carry-out restaurant in the 300 block of Southern Avenue SE with the intention of robbing them. Six of the seven juveniles were wearing Nike shoes, which had gone on sale to the public the previous day. After following the juveniles into the restaurant, Rice brandished a pistol and demanded that the teenagers take off their shoes. During the robbery, Allen had a pistol or imitation pistol.
Rice, Allen, and the two other men took six pairs of shoes from the victims, along with a cell phone and cash from the only victim who was not wearing the newly released shoes. Nine days after the robbery, on Feb. 24, 2015, U.S. Park Police attempted to stop Allen for a traffic violation in Southeast Washington. He fled the area at a high rate of speed, crossing into oncoming traffic at a high rate of speed. He and Rice were arrested within weeks of their crimes.
In announcing the sentences, Acting U.S. Attorney Cohen praised the work of those who worked on the case from the Metropolitan Police Department (MPD). He also expressed appreciation to Assistant U.S. Attorneys Kondi Kleinman and Lindsey Merikas, who investigated and indicted the case.
District Man Sentenced to Ten Years in Prison for Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – James Joseph, 32, of Washington, D.C., was sentenced today to 10 years in prison after earlier pleading guilty to a charge stemming from the shooting last year of a man in Southeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced. Joseph shot the victim seven times, including two gunshot wounds to the middle of the forehead.
Joseph pled guilty to aggravated assault while armed, on July 6, 2015, in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for the 10-year prison sentence. The Honorable Rhonda Reid Winston accepted the plea today. Following his prison term, Joseph will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 25, 2014, at approximately 7:30 p.m., the Metropolitan Police Department responded to a dispatch regarding a shooting in the 1000 block of 12th Street SE. Officers discovered the victim suffering from multiple gunshot wounds to his body, including his head, leg, kidney area, and hand. According to the victim, he had been arguing with Joseph in the hallway, and the victim returned to the apartment. A short time later, the victim heard a knock at the door, and when he opened the door, Joseph was standing in the doorway. Joseph pointed a handgun at the victim, and then fired one shot at the victim’s leg, causing the victim to fall to the ground. Joseph then fired several more times, striking the victim in the forehead, hand, and stomach area.
The victim now walks with a pronounced limp and requires the aid of a cane at all times. He will never regain full function of his leg or kidney functions.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tamika Garcia, and Assistant U.S. Attorney Vivien Cockburn, who investigated and prosecuted the case.
District Man Found Guilty of Shooting in Northeast WashingtonRead the Press Release
WASHINGTON – Brian Anderson, 28, of Riverdale, Md., has been found guilty by a jury of numerous charges stemming from an incident last year in Northeast Washington in which he fired nine gunshots at a group of women and an officer with the Metropolitan Police Department (MPD), Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
The jury found Anderson guilty on Sept. 18, 2015 of one count of assault with intent to kill while armed, one count of assault on a police officer while armed; six counts of assault with a dangerous weapon; and related weapons offenses. The verdict was returned following a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Nov. 20, 2015. Anderson remains held while awaiting sentencing.
According to the government’s evidence, in the early morning hours of June 21, 2014, Anderson’s girlfriend walked into a random private apartment in the 2100 block of H Street NE, where several young women were present. An altercation ensued between Anderson’s girlfriend and the young women, and the argument extended outside the apartment building.
While outside, Anderson got into a rental car and tried to run over the victims, driving up on the sidewalk, hitting parked cars, and hitting three of the young women, before ultimately fleeing the scene. During the melee, the bumper of the rental car was left at the scene. An MPD officer responded to the scene and had begun to interview the women when the victims saw Anderson return. As the MPD officer walked towards Anderson’s car, the defendant got out, pointed a gun in the direction of the officer and the young women, and fired nine shots.
Fortunately, no one was struck by the gunfire.
In announcing the verdict, Acting U.S. Attorney Cohen praised those who worked on the case from the Metropolitan Police Department (MPD). He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate James Brennan; Litigation Technology Specialists Claudia Gutierrez and Aneela Bhatia; and Paralegal Specialist Donville Drummond. Finally, he commended the work of Assistant U.S. Attorneys Kondi Kleinman and Laura Crane, who tried the case, and Adrienne Gurley, who investigated and indicted the case.
Davie Resident Sentenced for her Role in Identity Theft Tax Fraud SchemeRead the Press Release
A Davie resident was sentenced by United States District Judge Beth Bloom to 24 months in prison, followed by one year of supervised release, and was ordered to pay restitution in the amount of $191,678 for her role in an identity theft tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Raymond Black, Chief, Miramar Police Department, made the announcement.
Ashley Monique Leroy, 26, of Davie, previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Codes Section 1028A(a)(1).
According to court documents, on September 17, 2012, police officers from the Miramar Police Department arrested Leroy for possession of marijuana and other traffic infractions. After her arrest, officers conducted an inventory search of her vehicle and recovered a blue notebook that contained hundreds of personal identifying information, such as names, Social Security numbers, and dates of birth. The notebook also contained information explaining how to file income tax returns.
As part of her plea agreement, Leroy agreed to pay restitution to the IRS of $191,678. This amount represents the monetary loss for the filing of fraudulent income taxes in the names of the individuals listed in the blue notebook found in Leroy’s possession.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Darby Man Charged with Maintaining A Drug-Involved PremisesRead the Press Release
Evonne Hodges, 35, of Darby, PA, was charged today by indictment with maintaining a drug-involved premises, announced U.S. Attorney Zane David Memeger. According to the indictment, between October 1, 2012 and May 24, 2013, Hodges managed and controlled rooms, as a lessee, in a residence in Darby, PA, and made those rooms available for the purpose of unlawfully storing and distributing marijuana.
If convicted, Hodges faces a maximum sentence of 20 years in prison, a fine of up to $500,000, three years of supervised release, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Darby Borough Police Department. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
DEA to Hold 10th National Prescription Drug Take-Back Day this SaturdayRead the Press Release
Event will take place from 10 am-2 pm on Saturday, September 26th
This Saturday from 10 a.m. to 2 p.m. local time, come to one of the almost 5,000 collection sites around the nation to return all unwanted, unneeded, or expired prescription drugs for safe and anonymous disposal. This is the U.S. Drug Enforcement Administration’s (DEA’s) 10th National Prescription Drug Take-Back Day in the past five years. Collection sites in every local community, manned by DEA and its local law enforcement and community partners, can be found by going to www.dea.gov or calling 800-882-9539. All states and some territories will be participating Saturday (with the exception of Pennsylvania and Delaware, which held their events earlier in the month).
The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards.
"Our goal is to reduce the risk of addiction and the 46,000 overdose deaths a year that come with prescription drug abuse. Take Back Day is a great opportunity for folks to help reduce the threat," DEA Acting Administrator Chuck Rosenberg said. "Please clean out your medicine cabinet and make your home safe from drug theft and abuse." 2
DEA’s previous nine nationwide Take-Back events collected 4,823,251 pounds—more than 2,411 tons—of drugs.
Charleston man sentenced in Federal Court for distributing heroinRead the Press Release
CHARLESTON, W.Va. – Christopher E. Strick, 36, of Charleston, was sentenced today in federal court in Charleston to one year and one day in prison, followed by three years of supervised release. Strick previously pled guilty in June of 2015 admitting that he had sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (“MDENT”) in January of 2012. The drug deal took place at Strick’s Edgewood Drive residence.
The case was investigated by MDENT. AUSA John Frail is responsible for the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
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Catherine Greig Indicted on Criminal ContemptRead the Press Release
BOSTON – Catherine Greig, longtime companion of convicted killer James “Whitey” Bulger, was indicted today in U.S. District Court in Boston in connection with her refusal to testify before a grand jury.
“Ms. Greig was ordered by the Court to testify before a grand jury about whether others assisted Mr. Bulger while he lived on the lam for 16 years,” said United States Attorney Carmen M. Ortiz. “By refusing to comply with that order, Ms. Greig has committed a new crime and this indictment seeks to hold her accountable. The grand jury is entitled to her testimony and flouting a federal court’s order has substantial consequences.”
"Catherine Greig has yet again failed to do the right thing,” said Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Her refusal to testify has hindered the FBI's efforts to seek justice for the victims of his crimes. Our efforts to find those who assisted them during their lives as fugitives will not stop despite the fact that Ms. Greig has refused to testify."
Catherine E. Greig, 64, was indicted on one count of criminal contempt. The indictment alleges that on Dec. 9, 2014, and continuing through Sept. 22, 2015, Greig refused to testify before a federal grand jury regarding an investigation into whether other individuals assisted Bulger while he was a fugitive from 1995 through 2011. In 2012, Greig was convicted of identity fraud and harboring James J. Bulger, and was sentenced to eight years in federal prison.
The charge of criminal contempt provides for a prison sentence to be served subsequent to her current eight-year prison sentence and a fine. There is no fixed maximum penalty for criminal contempt, so courts may impose any sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Carlsbad Woman Sentenced for Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE — Monique Maurice Martinez, 35, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison followed by four years of supervised release for her methamphetamine trafficking conviction.
Martinez was charged in a criminal complaint on April 23, 2014, with possession of methamphetamine with intent to distribute in Eddy County, N.M., on March 18, 2014. According to the complaint, agents with the Pecos Valley Drug Task Force executed a search warrant at Martinez’s residence where they seized approximately 174.6 grams of methamphetamine, drug paraphernalia and $2,015.00 in cash. Martinez was subsequently indicted on the same charge on Nov. 12, 2014.
Martinez pled guilty to a felony information on July 1, 2015, and admitted that on March 18, 2014, she possessed 166.05 grams of methamphetamine with intent to distribute. Martinez further admitted that the methamphetamine, which was in her purse, was discovered during the execution of a search warrant at her residence by the Pecos Valley Drug Task Force and the Carlsbad Police Department.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force and the Carlsbad Police Department. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Butler County Woman Charged with ExtortionRead the Press Release
PITTSBURGH - A Butler County resident has been indicted by a federal grand jury in Pittsburgh on charges of interference with commerce by extortion, United States Attorney David J. Hickton announced today.
The two-count superseding indictment named Pamela A. Vivirito, 45, of Valencia, PA as the sole defendant.
According to the superseding indictment Vivirito extorted property from persons known to the grand jury.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Buffalo Man Pleads Guilty to Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Brian Smith, 42, of Buffalo, NY, pleaded guilty to bank fraud before U.S. Magistrate Judge H. Kenneth Schroeder.
Assistant U.S. Attorneys Maura K. O'Donnell and Russell T. Ippolito, who are handling the case, stated that Smith caused fraudulent loan applications and supporting documentation to be submitted to banks, credit unions, peer to peer lenders, and other business entities. The defendant also defrauded individuals out of funds under the guise of investing their money in real estate, when, in fact, he personally spent the money and did not purchase real estate. Smith also used fraudulent applications to open a credit card and to obtain a Land Rover vehicle. The defendant applied for over $1,000,000 in fraudulent loans. Smith also perpetrated a mortgage fraud scheme, using a straw borrower from Buffalo to obtain fraudulent mortgages for properties in the Atlanta, Georgia area.
A co-defendant, Kelly Atkinson, 32, of Wake Forest, North Carolina, also caused fraudulent loan applications and supporting documentation to be submitted to credit unions and other businesses for the purpose of obtaining loans. The fraudulent loans applied for by Atkinson totaled approximately $460,000. He has been convicted and will be sentenced on January 20, 2016 before U.S. District Judge Richard J. Arcara.
Today’s plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation.
Smith will be sentenced on January 16, 2016, also by Judge Arcara.
Bayonne, New Jersey, Police Officer Admits Using Excessive Force During Arrest, Filing False ReportRead the Press Release
Also Admits Role in Fraudulent $20,000 Home Rehabilitation Loan Scheme
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted using excessive force during an arrest, falsifying records in an attempt to conceal his conduct and helping a relative fraudulently obtain a home rehabilitation loan, U.S. Attorney Paul J. Fishman announced.
Domenico Lillo, 45, of Bayonne, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with one count of deprivation of civil rights under color of law and one count of falsifying records to impede a civil rights investigation. Lillo also pleaded guilty to an information charging him with assisting in the filing of a false report to the U.S. Department of Housing and Urban Development (“HUD”) in connection with a federally funded home rehabilitation loan worth $20,000.
According to documents filed in this case and statements made in court:
On the early evening of Dec. 27, 2013, Lillo and other police officers from the Bayonne Police Department went to an address in Bayonne to execute a Sussex County arrest warrant. Lillo admitted that he struck the subject of the warrant in the head with a flashlight while the individual was handcuffed and not resisting arrest, which resulted in bodily injury. Lillo also admitted that he falsified a Bayonne Police Department Use of Force Report related to the arrest with the intent to impede an investigation into the case.
In addition, Lillo admitted that on May 10, 2012, he aided a relative in preparing and submitted a fraudulent HUD application to get a federally funded rehabilitation loan on a home Lillo co-owned.
The excessive force charge to which Lillo pleaded guilty carries a maximum penalty of 10 years in prison. The charge of falsifying records to impede an investigation carries a maximum penalty of 20 years in prison. The charge of making false reports to HUD carries a maximum penalty of one year in prison. Sentencing is scheduled for Jan. 6, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
Defense counsel: Frank Arleo Esq. and Thomas Cammarata Esq., West Orange, N.J.
Bangor Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
Contact: F. Todd Lowell
Andrew McCormack
Assistant United States Attorneys
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Timothy S. Klimas, 27, of Bangor, pleaded guilty today in U.S. District Court to using children to produce child pornography and to distributing child pornography.
Court records reveal that between 2012 and 2014 the defendant sexually abused three minor children and used a digital camera and his cell phone’s camera to record sexually explicit images of them. He posted many of those images to a website. He was arrested in August 2014.
Klimas faces at least 15 years and up to 110 years in prison and up to a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted jointly by the Federal Bureau of Investigation and the Bangor and Newport Police Departments.
Armed Imperial Gangsta Bloods Drug Dealer Sentenced to 35 YearsRead the Press Release
NORFOLK, Va. – Jermarrieo Javone Stigger, 30, of Portsmouth, was sentenced today to 420 months in prison for conspiracy to distribute narcotics and possession of a firearm in furtherance of a drug trafficking crime.
Stigger pleaded guilty on Feb. 25, 2015. According to court documents, Stigger was a high-ranking member of the Imperial Gangsta Bloods, a Portsmouth-based set affiliated with the United Blood Nation that engaged in drug trafficking and acts of violence, including multiple shooting incidents during the summer of 2014. Operating out of Virginia Beach hotel rooms and other residences in Hampton Roads, Stigger bought and sold, and managed others who sold, substantial amounts of cocaine and crack cocaine. He was regularly armed during the course of the drug conspiracy, including with an assault rifle and numerous handguns. The defendant and other members of the Imperial Gangsta Bloods who are awaiting sentencing were investigated in a joint operation by the FBI, the Portsmouth Police Department, the Virginia Beach Police Department, and the Virginia State Police.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar, Sr. Assistant U.S. Attorneys Andrew Bosse and Joseph DePadilla prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-13.
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Arizona Law Enforcement Agencies Receive over $1.3 Million in Federal Grant Funds to Support Body-Worn Camera ProgramRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $1,333,998 in federal grant funds have been awarded to four Arizona law enforcement agencies to support the use of body-worn cameras by patrol officers. Such cameras are intended to enhance public and officer safety and improve police-community relations. The four recipient agencies are the Phoenix Police Department (grant 2015-WY-BX-0004), the City of Peoria (grant 2015-DE-BX-K020), the Salt River Pima-Maricopa Indian Community (grant 2015-DE-BX-K052), and the City of Glendale (grant 2015-DE-BX-K060). Additionally, the Phoenix Police Department received a separate federal grant of $392,842 (grant 2015-MC-FX-K027) to support its work on the Arizona Internet Crimes Against Children Task Force (“AZ ICAC”).
These grant funds were awarded by the Bureau of Justice Assistance (“BJA”) and the Office of Juvenile Justice and Delinquency Prevention (“OJJDP”), which are components of the Department of Justice’s Office of Justice Programs (“OJP”).
Information on BJA specific: https://www.bja.gov/Programs/VRN.html
Information on OJJDP specific: http://www.ojjdp.gov/about/about.html
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
For additional information about the BWC Pilot Implementation Program, visit
http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf
RELEASE NUMBER: 2015-087_BODY_WORN_CAMERAS
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Area Ambulance Company Owner Pleads Guilty in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of Vic’s Texas Transport, Inc. (dba Victory EMS) has been convicted of health care fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson. Victor Lee Gonzalez, 28, of Mission, entered his guilty plea today before Chief U.S. District Judge Ricardo Hinojosa.
As part of the plea, Gonzalez admitted he submitted claims with Medicare and Texas Medicaid for reimbursement of ambulance transportation services that were not provided. To further execute his scheme to defraud, Gonzalez used the Texas Medicaid number of a patient to submit false and fraudulent billings to Texas Medicaid. The aggregate sum of the false and fraudulent claims submitted by Gonzalez was $1,080,213 to Medicare and Texas Medicaid. As a result of those fraudulent claims, Medicare and Texas Medicaid paid approximately $458,904.45.
Sentencing has been set for Nov. 30, 2015. At that time, Gonzalez faces a maximum of 10 years in federal prison without parole and a possible $250,000 fine. For the aggravated identity theft, he also faces an additional 24 months in prison which must be served consecutively to any other prison sentence imposed. Gonzalez, whose bond was previously revoked in the case, will remain in custody pending that hearing.
The investigation was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney Michael Day is prosecuting the case.
Appleton Men Sentenced for Roles in Meth ConspiracyRead the Press Release
Gregory J. Haanstad, Acting U.S. Attorney for the Eastern District of Wisconsin, announced that on September 21, 2015, Sa Xiong (age: 25) and Bee Vang (age: 23) of Appleton, Wisconsin, were both sentenced to federal prison by Chief United States District Judge William C. Griesbach. Xiong and Vang had previously entered guilty pleas to a single count of conspiracy to distribute 500 grams or more of methamphetamine in violation of Title 21 United States Code Section 846. According to the plea agreement and other documents filed with the court, Xiong and Vang helped operate a methamphetamine distribution ring stretching from the Fox Valley to Calumet County. Xiong and another high level co-conspirator distributed the methamphetamine while in possession of several semi-automatic firearms.
In pronouncing the sentences, Chief Judge Griesbach noted the debilitating effect that methamphetamine has on individuals and the great harm the drug causes in Northeast Wisconsin. He further noted that the quantity of methamphetamine and the presence of firearms made this a particularly dangerous conspiracy. Ultimately, Xiong was sentenced to a mandatory minimum of 120 months in federal prison for his role as the “right-hand man” to the leader of the drug conspiracy. Vang, who played a much lesser role, received a sentence of 18 months imprisonment followed by 4 months of electronic monitoring and home detention.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, the Lake Winnebago Area Metropolitan Enforcement Group, the Appleton Police Department, Fox Valley Metro Police Department, Kaukauna Police Department, Town of Menasha Police Department, Menasha Police Department, Neenah Police Department, Oshkosh Police Department, Calumet County Sheriff’s Department, and the Winnebago County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
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Annapolis Felon Sentenced to Four Years in Prison for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Cecil Scott Wiggins, age 49, of Annapolis, Maryland, today to four years in prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to Wiggins’ plea agreement, on December 19, 2014, Annapolis Police Department (APD) officers were called to the1300 block of Tyler Avenue in Annapolis for reports of shots fired. When officers arrived, the victim stated that her boyfriend, Cecil Scott Wiggins, fired a shot into her home. At the time Wiggins fired the shot, the victim and her fourteen-year old son were attempting to prevent Wiggins from getting inside the home. The shot hit the ceiling of the kitchen, without going through the upstairs floor or causing any injuries.
APD and the Anne Arundel County Police Department eventually located Wiggins at his mother’s home in Annapolis. APD personnel spoke to Wiggins’ mother, who gave consent to search her residence, and signed a consent form. In the basement where Wiggins resided, APD recovered a .22 caliber spent shell casing on the floor near the couch, and a silver/black .22 caliber revolver in the nearby laundry room. The revolver had black tape and multicolored rubber bands around the handle, and was loaded with one round of .22 caliber ammunition that matched the type of shell casing found on the floor.
Wiggins was arrested and transported to APD headquarters. Wiggins acknowledged he had a gun when he went to the victim’s home. He claimed that he accidentally pulled the trigger when he stuck his arm through the open door and the door closed on his arm.
Wiggins had previous felony convictions which prohibited him from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Annapolis and Anne Arundel County Police Departments and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Special Assistant U.S. Attorney Shelly S. Glenn, who prosecuted the case.