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6 November 2015
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Trymaine Davis, 26, of East Saint Louis, Illinois, was sentenced on Friday, November 6, 2015, in federal district court, for unlawful possession of a firearm by a previously convicted felon. Davis received a sentence of 21 months in prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $250.
Court documents established that on June 5, 2014, Davis was stopped by Illinois State Police for a traffic infraction. As officers approached Davis’ vehicle, they observed a handgun in plain sight in the car’s center console, which was later determined to be a loaded .38 caliber handgun. Davis later admitted to possessing the gun, and to his previous felony conviction.
The case was investigated by the Illinois State Police, the Metropolitan Enforcement Group of Southwestern Illinois, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Special Assistant United States Attorney Shane B. Kelbley.
East Alton Man Pleads Guilty to Methamphetamine and Obstruction of Justice ChargesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that George W. Holliday, Sr., 46, of East Alton, IL, entered pleas of guilty on November 5, 2015 in U.S. District Court in Benton, IL, to federal charges of Conspiracy to Distribute Methamphetamine, Attempted Distribution of Methamphetamine, and Obstruction of Justice.
Holliday is scheduled to be sentenced in Benton on March 1, 2016. Holliday faces a maximum possible sentence of 20 years imprisonment on each of the three federal charges, as well as a fine of not more than $1 million, and a term of not less than 3 years of supervised release upon release from prison.
At his change of plea hearing, Holliday admitted that he and co-defendant James E. Bailey, Jr., had attempted to deliver methamphetamine to a woman in Pocahontas, IL, on November 22, 2014. Holliday also admitted that when Glen Carbon police officers attempted to stop the car he was driving, Holliday instructed Bailey to hide a handgun beneath the seat cushions in the backseat of the car.
Bailey pled guilty to methamphetamine and firearms offenses in federal court on October 2, 2015. He will be sentenced in Benton on January 5, 2016.
The investigation which resulted in the conviction of Holliday and Bailey was conducted by the Glen Carbon Police Department.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Downey Man Pleads Guilty to Falsely Certifying Beef as Free of E. coliRead the Press Release
LOS ANGELES – A Downey man who falsely certified that beef being sold by his employer was free of E. coli bacteria – which later proved to be false when one beef sample was found to be contaminated with the pathogen – has pleaded guilty to a federal offense of making and using a false writing and document.
Jim Johnson, 67, who worked as a consultant to the now-defunct Huntington Meat Packing Company, pleaded guilty to the felony offense Monday afternoon in United States District Court.
Huntington Meat was a Montebello-based meat processing and distribution company that sold raw ground beef that was used by other companies to make products such as beef patties and burrito mix. Under a food safety plan approved by the United States Department of Agriculture, Huntington Meat was required to test its meat for the Escherichia coli 0157:H7 bacterium
When he pleaded guilty earlier this week, Johnson admitted that in 2010 he knowingly and willfully provided the USDA’s Food Safety Inspection Service (FSIS) with a fake Certificate of Analysis which falsely stated that a beef sample from the company had tested negative for E. coli. Subsequent lab results showed that some of this meat was contaminated with E. coli. – which prompted the FSIS to issue recall 864,000 pounds of meat (see: http://go.usa.gov/crQ7H). There were no illnesses linked to the recalled beef.
“The defendant’s lie created a public health hazard, and such conduct will not be tolerated,” said United States Attorney Eileen M. Decker. “The public is entitled to have confidence in the food that makes it to its tables. The Department of Justice will continue to prosecute aggressively those whose conduct undermines that confidence.”
As a result of his guilty plea, Johnson faces a statutory maximum sentence of five years in federal prison when he is sentenced by United States District Judge Fernando M. Olguin on March 3.
The case against Johnson is the product of an investigation by the U.S. Department of Agriculture, Office of Inspector General, which received assistance from the U.S. Department of Agriculture’s Food Safety and Inspection Service.
Convicted Former Parole Officer Sentenced for Accepting Money from a Parolee Under Her SupervisionRead the Press Release
DALLAS — Breanna Polk, 32, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to six months in federal prison, following her guilty plea in June 2015 to one count of honest services wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Polk, who has been on bond, must surrender to the Bureau of Prisons on January 6, 2016.
According to plea documents filed in the case, on August 2, 2007, a parolee with the Texas Department of Criminal Justice (TDCJ) reported to his parole officer, Polk, at the Garland, Texas, parole office. Polk advised the individual she planned to take a trip to Florida to celebrate her birthday. The parolee left approximately $500 on Polk’s desk. On at least two other occasions between August 2007 and March 2010, the same individual paid more than $500 to receive favorable treatment from Polk concerning the conditions of his parole.
In March 2010, the parolee absconded to Mexico to avoid DEA law enforcement in connection with his illegal drug distribution. The parolee paid Polk $2,000 to assist him in avoiding law enforcement by indicating he reported to parole, when he had not. Additionally, Polk agreed to check for any arrest warrants and notify the parolee if he had an active arrest warrant. On June 8, 2010, Polk conducted a search on a National Crime Information Center (NCIC) database to determine if the parolee had an active arrest warrant; Polk transmitted the search by means of a wire communication.
The FBI and the TDCJ – Office of the Inspector General investigated the case. Assistant U.S. Attorney Katherine Pfeifle was in charge of the prosecution.
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Convicted Felon Detained After Allegedly Stealing Six FirearmsRead the Press Release
PROVIDENCE, R.I. – Anthony Jenkins, 51, of Providence, has been ordered detained in federal custody following his initial appearance in federal court in Providence on Thursday on a criminal complaint charging him with being a felon in possession of a firearm and possession of stolen firearms. Jenkins was arrested by members of an ATF task force moments after he allegedly stole six firearms from a garage in Cranston.
Jenkins’ arrest is announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
According to court documents and information presented to the court, members of the ATF task force became aware of Jenkins alleged plans to steal the firearms and to sell some of them. Jenkins was apprehended by members of the task force immediately after he allegedly stole the guns. When apprehended, Jenkins allegedly had six firearms and ammunition in his possession.
According to court records and information presented to the court, Jenkins’ criminal history includes at least 13 felony convictions, including drug trafficking, robbery and assault.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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California Man Indictment on Drug and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a two count indictment charging Jose Manuel Lua-Guizar, 25, of California, with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and money laundering conspiracy. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Timothy C. Lynch, who are handling the case, stated that according to the indictment, between February 2014 and December 10, 2014, the defendant conspired with others to distribute cocaine in the Buffalo area. In addition, between April 2014 and December 10, 2014, Lua-Guizar conspired with others to funnel the proceeds of the drug trafficking activity from Buffalo to California. The indictment alleges that the defendant and co-conspirators funneled a total of $1,049,270.00.
Lua-Guizar will be arraigned at a later date.
The indictment is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge. Additional assistance was provided by ICE-HSI in Los Angeles, California.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Buffalo Man Pleads Guilty to Distributing OxymorphoneRead 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 Vincent Sawicki, 63, of Buffalo, NY, pleaded guilty to distribution of oxymorphone, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on April 11, 2011, the defendant sold 40 Opana tablets to an undercover officer at 2175 South Park Avenue in Buffalo. On one occasion the previous month, the defendant sold 70 oxycodone tablets to an individual at the defendant’s residence.
The plea is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Sentencing is scheduled for February 16, 2016, at 1:00 p.m. before Judge Arcara.
Brothers Sentenced for Leading Bank Fraud and Identity Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Ray Ekobena, 27, of Alexandria, and his brother, Stefan Ekobena, 24, of Atlanta, were sentenced today for leading a five-year check fraud and identity theft conspiracy. Co-conspirator Rodney Hardy, 25, of Hyattsville, Maryland, was also sentenced today for his role in the scheme.
“Ekobena ran a check fraud scheme that lasted for five years,” said U.S. Attorney Dana J. Boente. “Ever the entrepreneur, Ekobena launched additional schemes at the same time, including his elaborate plot to steal hundreds of thousands of dollars from a children’s hospital. Along the way he and his crew victimized hundreds of individuals, charities, small businesses, and financial institutions. I want to commend our prosecutors and investigative partners for a job well done in bringing these criminals to justice.”
According to statements of fact filed with the plea agreements, Ray Ekobena and his younger brother, Stefan Ekobena, printed fraudulent checks using victims’ bank account information. The Ekobenas’ obtained this information by enlisting bank tellers and other insiders who had access to sensitive personal information through their employment. Co-conspirators such as Rodney Hardy, Jerome Johnson, Gani Cole, Deallto Davis and Alan Lamin furthered the conspiracy by depositing the fraudulent checks into bank accounts under false names and withdrawing the resulting funds before the banks discovered the fraud. Ray Ekobena also obtained loans in the names of his identity theft victims to buy luxury vehicles including a Bentley, Mercedes-Benz, Porsche, Audi, and a tractor-trailer.
“The Ekobena brothers and their co-conspirators targeted individuals, charities, and businesses in a criminal scheme to fraudulently obtain and exploit personal information for their own selfish financial gain,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “The FBI, together with our local, state, and federal law enforcement partners, will continue to relentlessly pursue and bring to justice those who engage in identity theft and victimize innocent people, financially or otherwise.”
In total, the conspiracies victimized over 200 individuals and caused an actual loss amount of $712,231, and an intended loss amount of over $1.25 million. Victims include well-known small businesses and charities, including the Leukemia & Lymphoma Society and the Children’s National Medical Center.
“The suspects in this scheme fraudulently used the mail to prey upon innocent victims and charities,” said David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS). “Postal Inspectors, with the support of partnering federal and local law enforcement agencies, worked aggressively to dismantle this scheme and bring these individuals to justice.”
Name
Age
Hometown
Sentencing Details
Ray Ekobena
27
Alexandria
Sentenced today to 104 months in prison followed by three years of supervised release. Ordered to forfeit $712,231.22 and pay that amount in restitution.
Stefan Ekobena
24
Atlanta, Georgia
Sentenced today to 66 months in prison followed by three years of supervised release. Ordered to forfeit $199,808.29 and pay that amount in restitution.
Rodney Hardy
25
Hyattsville, Maryland
Sentenced today to 30 months in prison followed by three years of supervised release. Ordered to forfeit $20,618.41 and pay that amount in restitution.
Jerome Johnson
32
Washington, D.C.
Sentencing scheduled for Dec. 4, 2015
Deallto Davis
20
Washington, D.C.
Sentencing scheduled for Dec. 4, 2015
Gani Cole
27
Atlanta, Georgia
Sentencing scheduled for
Jan. 22, 2015
Alan Lamin
25
Washington, D.C.
Sentenced on July 8, 2015 to 54 months in prison. Ordered to forfeit $124,640.87 and pay that amount in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Joseph V. Longobardo 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. 1:15-cr-180.
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Battle Creek Man, Timothy Siangdun, Sentenced to Eight Months’ Confinement for School Shooting ThreatsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr. announced that Timothy Siangdun of Battle Creek, Michigan was sentenced to eight months’ confinement and two years of supervised release for making a Facebook post that threatened school shootings at Western Michigan University. Siangdun also was ordered to stay off the campus of Western Michigan University and was prohibited from posting any communications on any social media platform for the two year term of his supervised release. Siangdun made the Facebook threat following a trial and guilty verdict on related Facebook threat postings before United States District Judge Janet T. Neff on March 12, 2015. Siangdun pleaded guilty to the present charges on August 4, 2015.
The U.S. Attorney’s Office for the Western District of Michigan was assisted in the investigation by the Springfield Department of Public Safety, Western Michigan University Department of Public Safety, Calhoun County Sheriff’s Office, Calhoun County Prosecuting Attorney, Battle Creek Police Department, and the Federal Bureau of Investigation.
U.S. Attorney Miles praised federal, state, and local investigators in locating and prosecuting Siangdun. "Online threats of violence have no place in the Western District of Michigan. We will continue to use all available prosecution tools to ensure that Western Michigan universities and learning institutions are safe for faculty, staff, students, family, and the public."
"These types of threats are never discounted or taken lightly by the FBI. Public safety is our utmost concern, and every threat of this nature is treated as legitimate," stated David P. Gelios, Special Agent in Charge, FBI - Detroit Division. "Mr. Siangdun repeatedly posted threats of a school shooting at Western Michigan University, and threatened other violence online via social media. Even after being convicted for doing so, and after being cautioned against doing so by a federal judge, he persisted in posting an additional threat. As always, we continually work to identify, pursue, and hold accountable individuals who use the internet or other means to broadcast these types of threats."
This case was prosecuted by Assistant U.S. Attorney Clay M. West.
END
Baltimore Man Admits to Robbing Eight Businesses in Two WeeksRead the Press Release
Baltimore, Maryland – Ricky Tolson, age 45, of Baltimore, Maryland pleaded guilty today to robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Chief Gary Gardner of the Howard County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, from June 7 to June 20, 2015, Tolson entered the following eight businesses located in Maryland demanding money from their employees: Ramada Inn in Pikesville, Roland Park Exxon Gas station on Falls Road in Baltimore, Shell Gas station on Smith Avenue in Baltimore, Sunoco Gas station in Pikesville, SF Mini Mart in Clarksville, BP Gas station in Lutherville, Cricket Store in Owings Mills and the Game Stop on Old Court Road in Baltimore.
In each robbery Tolson made it appear to the employees that he had a gun, but after his arrest on June 24, 2015, he told investigators that he did not have a gun. Tolson fled from five of the robbery scenes with approximately $2,915 in cash. He fled from another two scenes with an undetermined amount of cash, and fled the BP gas station before he stole any money.
Tolson and the government have agreed that if the Court accepts the plea agreement Tolson will be sentenced to 15 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for January 5, 2016 at 2:15 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County State’s Attorney’s Office, Baltimore County Police, Baltimore City Police, Howard County Police and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who is prosecuting the case.
Autoridades Federales Cierran la Investigación de la Muerte de Anastasio Hernández-RojasRead the Press Release
Washington – El Departamento de Justicia anunció hoy que, después de una investigación exhaustiva, no presentará cargos penales federales de violación de los derechos civiles u otros cargos federales contra los agentes federales involucrados en el altercado asociado a la detención que resultó en el fallecimiento del ciudadano mexicano Anastasio Hernández-Rojas.
Autoridades de la División de Derechos Civiles del Departamento de Justicia, el Buró Federal de Investigación [Federal Bureau of Investigation (FBI)] y la Oficina del Inspector General del Departamento de Seguridad Nacional [Department of Homeland Security - Office of the Inspector General (DHS-OIG)] se reunieron hoy con miembros de la familia de Hernández-Rojas y sus representantes para informarlos de esta determinación. La decisión del departamento se basó en hechos ocurridos durante una investigación independiente y exhaustiva del asunto.
El departamento le dedicó una importante cantidad de tiempo y recursos a investigar los hechos asociados a la muerte de Hernández-Rojas el 31 de mayo de 2010, tres días después de haber sido detenido en el Puerto de Entrada de San Ysidro en San Diego, California. Un equipo de fiscales federales experimentados examinaron cientos de páginas de evidencia generados por investigadores del Departamento de Homicidios del Departamento de Policía de San Diego. Agentes federales y la División de Derechos Civiles luego iniciaron una investigación federal independiente del hecho, la que incluyó a numerosas entrevistas con testigos y visitas al lugar del hecho. Las pruebas recabadas durante la investigación federal incluyeron videos del incidente, relatos de testigos de oficiales federales, relatos de testigos de policía mexicana, relatos de testigos civiles, relatos de personal médico, registros médicos, informes de autopsia, materiales de capacitación sobre el uso de fuerza oficial y pruebas forenses.
Las pruebas desarrolladas durante la investigación indicaron que, cuando se le retiraron las esposas a Hernández-Rojas en el Puerto de Entrada de San Ysidro, Hernández-Rojas empezó a luchar con dos agentes de la Patrulla Fronteriza de EE.UU. [U.S. Border Patrol (USBP)] y luego se resistió a sus esfuerzos por contenerlo. Dos agentes del Servicio de Inmigración y Control de Aduanas [Immigration and Customs Enforcement (ICE)], y un otro agente de la USBP, se unieron al altercado y golpearon a Herández-Rojas varias veces con sus bastones telescópicos. Los agentes esposaron a Hernández-Rojas otra vez, pero el mismo siguió debatiéndose y pateando a los agentes. Los agentes pidieron refuerzo y un vehículo de transporte para detener a Hernández-Rojas, ya que había dejado de ser elegible para regreso voluntario a Mexico porque forcejearse. A medida que los agentes intentaban colocar a Hernández-Roja en la camioneta que lo llevaría a la comisaría, nuevamente se resistió e intentó patear a los agentes. Una serie de agentes de La Oficina de Aduanas y Protección Fronteriza [Customs and Border Protection (CBP)] respondieron al lugar de los hechos, uno de los cuales acertó a Hernández-Rojas con una pistolaTaser. Hernández-Rojas dejó de resistirse y los agentes le inmovilizaron las piernas. Poco después, la respiración de Hernández-Rojas se volvió más lenta y Hernández-Rojas dejó de reaccionar. Los agentes de CBP le practicaron resucitación cardiopulmonar hasta que llegó personal médico al lugar. Hernández-Rojas fue pronunciado muerto dos días después de haber sido desconectado del equipo de auxilio respiratorio.
Las autopsias que siguieron concluyeron que Hernández-Rojas falleció debido a infarto de miocardio agudo (ataque al corazón) durante su inmovilización. Se indicó que intoxicación aguda con metanfetamina, enfermedad cardíaca preexistente, el nivel de esfuerzo físico durante la resistencia física y las descargas eléctricas de la pistola Taser y la inmovilización fueron factores que contribuyeron a la muerte de Hernández-Rojas. Asimismo, el médico forense indicó que Hernández-Rojas no hubiera fallecido si no hubiera existido la intoxicación por metanfetamina.
Después de un análisis cuidadoso y exhaustivo, un equipo de fiscales federales experimentados determinaron que no existían pruebas suficientes para la presentación de cargos federales penales de derechos civiles.
De acuerdo con las leyes federales penales de derechos civiles aplicables, los fiscales deben establecer, más allá de la duda razonable, que un oficial federal privó intencionalmente a una persona de un derecho constitucional, o sea, que el oficial actuó con intención deliberada y específica de hacer algo prohibido por la ley. Este es el más alto estándar de determinación impuesto por la ley. Accidente, error, temor, negligencia o falta de criterio no son suficientes para establecer un violación penal federal de los derechos civiles. En este caso, el gobierno federal no logró probar más allá de la duda razonable, que los sujetos actuaron de manera deliberada, o sea, con la intención específica de privar a la víctima de un derecho constitucional. Específicamente, el gobierno federal no logró refutar el alegato de los agentes de que utilizaron fuerza razonable con la intención de dominar y restringir a un detenido combativo, de modo que se lo pudiera colocar dentro de un vehículo de transporte.
El gobierno federal no podría probar, más allá de la duda razonable, que los sujetos violaron las leyes federales de homicidio dentro del ámbito de la Jurisdicción Especial Marítima y Territorial de los Estados Unidos. Si bien la inmovilización de Hernández-Rojas y las descargas eléctricas de la pistola Taser fueron factores que contribuyeron para su muerte, no existen indicios de que cualquiera de los agentes federales utilizó la pistola Taser o inmovilizó a Hernández-Rojas con malicia. Ni existen pruebas suficientes para establecer que la conducta de los agentes federales violó la ley federal de homicidio involuntario, la que no requiere malicia, pero sí requiere que los agentes federales hayan cometido un acto legal de manera ilegal, o sin el cuidado y la circunspección debidas, lo que podría producir la muerte. Al contrario, la inmovilización y el uso de la pistola Taser por los agentes federales contra Hernández-Rojas, durante su resistencia y cuando se encontraba en estado agresivo, no fue ilegal y, según pruebas reunidas relacionadas con la capacitación acerca de uso de la fuerza de los agentes federales, las acciones de los agentes federales no fueron llevadas a cabo sin el debido cuidado y circunspección.
Mientras la pérdida de una vida es lamentable, los hechos asociados a este caso no justifican un enjuiciamiento federal. En consecuencia, la investigación de este incidente ha sido cerrada.
Alleged Gang Member Detained for Allegedly Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – Jaheem Benton, 26, of Pawtucket, an alleged member of the YNIC street gang, has been ordered detained in federal custody for allegedly trafficking crack cocaine, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Benton was arrested on Wednesday by members of an ATF Task Force consisting of federal and local law enforcement agents and officers who have been investigating for the past several months Benton’s alleged gang and drug trafficking activities. Benton was ordered detained on Thursday during his initial appearance in U.S. District Court before U.S. District Court Magistrate Judge Lincoln D. Almond on a criminal complaint charging him with possession of crack cocaine with the intent to distribute.
According to court documents and information presented to the court, it is alleged that on at least six occasions since January, Benton allegedly sold a person who was assisting law enforcement in their investigation of Benton plastic baggies containing crack cocaine. Each of the alleged transactions was monitored by law enforcement.
A court authorized search of Benton’s residence on Wednesday resulted in the seizure of approximately 1.2 grams of crack cocaine and numerous items used in the packaging and distribution of crack cocaine.
According to court records and information presented to the court, Benton was previously convicted in Rhode Island state court on multiple counts of assault and multiple firearms charges.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections. Pawtucket Police assisted the ATF Task Force in the investigation of this matter.
Alleged Current Leader of FAM Mob Convicted by Federal JuryRead the Press Release
Memphis, TN – After a three day trial, the alleged current head governor of FAM Mob, a violent street gang based throughout North Memphis and Shelby County, was found guilty of felony firearm possession by a federal jury. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to the indictment, 28-year-old Jarvis Lewis, aka Jabo, of Memphis, unlawfully possessed a Jimenez Arms 9mm pistol. According to information presented in court, on October 27, 2014, Memphis Police officers responded to shots fired at the Ridgecrest Apartments Complex. The complex is allegedly used as the headquarters of FAM Mob, a violent street gang prevalent in Frayser, Northhaven, Raleigh and Millington.
Upon arriving on the scene, officers learned that two men with guns — one of them being Lewis — entered a unit in the apartment complex, according to information presented in court. Subsequent to locating the unit, officers asked for the defendants to leave the residence. After the defendants refused to comply, law enforcement gained entry into the apartment. Lewis and his co-defendant were located in the apartment’s master bedroom. A loaded 9mm pistol, partially sticking out of a bag of sugar, was also located by law enforcement while searching the apartment, according to court information.
FAM Mob’s hierarchy allegedly consists of a head governor, governors, CEOs, big "homies" and little "homies." Lewis allegedly became the head of FAM Mob after its former head governor, James McCracken, was indicted federally in November 2014 for violating the Hobbs Act. The Hobbs Act makes it a federal crime to commit a robbery that interferes with interstate commerce. In July 2011, McCracken and other FAM Mob members allegedly robbed a drug dealer who was trafficking narcotics manufactured outside of the district.
On Wednesday, November 4, 2015, a federal jury convicted Lewis of one count of felony possession of a firearm.
Lewis is scheduled to be sentenced by Judge Sheryl H. Lipman on February 5, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000.
The case was investigated by the Project Safe Neighborhoods Task Force, which is comprised of representatives from the Memphis Police Department, Shelby County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorneys Kevin Whitmore and Elizabeth Rogers prosecuted the case on the government’s behalf.
Acoma Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Emery Vallo, Sr, 60, a member and resident of Acoma, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to a felony information charging him with abusive sexual contact of a minor child. Under the terms of his plea agreement, Vallo will be sentenced within the range of ten to 15 years in federal prison followed by a term of supervised release to be determined by the court. Vallo will be required to register as a sex offender after completing his prison sentence.
Vallo was arrested on Oct. 23, 2015, on an indictment alleging that he sexually abused the child victim from May 1, 2002 through Sept. 1, 2003, and attempted to sexually abuse the child victim from March 1, 2007 through Sept. 1 2007. The charges alleged in the indictment took place in Indian Country in Cibola County, N.M.
During today’s change of plea hearing, Vallo entered a guilty plea to an aggravated sexual abuse charge. Vallo admitted sexually molesting a child on two separate occasions from May 1, 2002 through Sept.1, 2003, and attempting to sexually molest the same child from March 1, 2007 to Sept. 1, 2007.
In addition to his guilty plea, Vallo also admitted to sexually molesting a five year old child approximately 40 years ago when he was 18 years old. Vallo admitted that although the statute of limitations has since lapsed in this case, his admission is meant to be an acknowledgement to help provide solace to the victim who is still impacted by the incident.
Vallo has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney David Adams 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/.
5 November 2015
Yuba City Man Pleads Guilty to Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A Yuba City man pleaded guilty today to producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Benjamin B. Wagner of the Eastern District of California, Special Agent in Charge Ryan Spradlin of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) San Francisco Field Division, and Chief of Police Robert D. Landon of the Yuba City Police Department.
Nathan Penner, 25, pleaded guilty today before United States District Judge Troy L. Nunley to one count of production of child pornography. The sentencing hearing is set for January 21, 2016.
In connection with his plea, Penner admitted that he produced sexually explicit photos and videos of a five-year-old girl in September and October of 2012. Penner further acknowledged that he had downloaded child pornography. Subsequent forensic analysis of Penner’s computer and digital media revealed both the child pornography that he produced and hundreds of other child pornography files.
This case is being investigated by HSI and the Yuba City Police Department. This case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Special Assistant U.S. Attorney Josh F. Sigal of the Eastern District of California. CEOS’ High Technology Investigative Unit assisted with computer forensic analysis for the case.
Penner faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables
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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually 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.
Worcester Nurse Pleads Guilty to Stealing Pain Medication from PatientsRead the Press Release
BOSTON – A nurse pleaded guilty on today in U.S. District Court in Worcester to stealing pain medication from patients in a nursing care facility in Worcester.
Joanna Dacri, 34, of Auburn, Mass., pleaded guilty to one count of acquiring and obtaining Oxycodone by deception. U.S. District Court Judge Timothy S. Hillman scheduled sentencing Jan. 29, 2016.
From February to June 2014, Dacri was a nurse at a Worcester nursing care facility. During that period, she stole numerous Oxycodone tablets prescribed to three patients, and surreptitiously substituted other, similar-looking tablets, specifically Loratadine (antihistamine) tablets and Mirtazapine (antidepressant) tablets, in place of the Oxycodone tablets.
The charge provides for a sentence of no greater than four years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Spencer Morrison, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, Boston Resident Office; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Commissioner Monica Bharel, M.D., M.P.H, of Massachusetts Department of Health, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Young Paik of Ortiz’s Health Care Fraud Unit.
Worcester Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday in U.S. District Court in Worcester to charges of possession of child pornography.
Peyton Bissell, 22, of Worcester, Mass., pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 28, 2016.
On July 28, 2014, law enforcement officers executed a federal search warrant at Bissell’s residence on Plantation Street in Worcester. Bissell immediately told law enforcement officers that he knew why they were present and that they would find what they were looking for on a computer in his bedroom. An initial forensic review of the computer revealed hundreds of videos and images containing child pornography, some of which involved children under the age of 12. Peyton admitted to searching for and downloading child pornography from peer-to-peer file sharing networks on the Internet.
The charge of possession of child pornography involving minors under the age of 12 provides for a sentence of no greater than 20 years in prison, a minimum mandatory term of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Gary J. Gemme, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Woman Who Held Disabled Adults Captive in Subhuman Conditions Sentenced to Life Plus 80 Years in PrisonRead the Press Release
Linda Weston, 55, of Philadelphia, was sentenced today to life plus 80 years in prison. Weston pleaded guilty on Sept. 15, 2015, to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements and attics in Philadelphia’s Tacony section and in other states.
Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime and false statements. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe of the Eastern District of Pennsylvania ordered restitution of $273,463 to the Social Security Administration and a $19,600 special assessment.
From approximately 2001 through October 2011, Weston and her co-conspirators lured mentally handicapped individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia; Killeen, Texas; Norfolk, Virginia; and West Palm Beach, Florida. The group targeted mentally challenged individuals who were estranged from their families. Once Weston convinced them to move in, she became their representative payee with social security and began to receive their disability benefits and in some instances, their state benefits. On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and family purposes.
Weston, Jean McIntosh, Eddie Wright and others confined their victims to locked rooms, basements, closets, attics and apartments. While confined, the captives were often isolated in the dark and sedated with drugs that Weston and other defendants placed in their food and drink. When the individuals tried to escape, stole food or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until Oct. 15, 2011, when Philadelphia Police Department officers rescued them from the sub-basement of an apartment building in the Tacony section. The enterprise victimized six disabled adults and four children.
In April 2005, Weston and a co-defendant targeted victim D.S. They brought D.S. to a home at 2211 Glenview Avenue in Philadelphia. D.S. was kept in the basement with the other victims, fed a substandard diet and not allowed to use the bathroom. On June 26, 2005, D.S. was found dead in the basement. Weston ordered other members of the household to move D.S.’s body to a different location before calling law enforcement.
In 2008, victim M.L. was living with the family. M.L. was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined M.L. inside a kitchen cabinet and an attic for several months. M.L. subsequently died of bacterial meningitis and starvation in November 2008. Weston ordered other members of the household to move M.L.’s body to a bedroom and stage the scene before calling law enforcement. The next day the family left for Philadelphia.
Weston’s daughter, Jean McIntosh, and co-defendant Eddie Wright have already pleaded guilty. Co-defendants Gregory Thomas Sr. and Nicklaus Woodard are awaiting trial.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, Internal Revenue Service-Criminal Investigations, the Philadelphia Police Department and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ West Palm Beach Field Office. The case is being prosecuted by Assistant U.S. Attorneys Richard P. Barrett and Faithe Moore Taylor of the Eastern District of Pennsylvania.
Woman Who Held Disabled Adults Captive in Subhuman Conditions Sentenced to Life Plus 80 YearsRead the Press Release
PHILADELPHIA - Linda Weston, 55, of Philadelphia, PA, was sentenced today to life plus 80 years in prison. Weston pleaded guilty on September 15, 2015 to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements, and attics in Philadelphia’s Tacony section and in other states. Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime, and false statements. In addition to the prison term, U.S. District Court Judge Cynthia M. Rufe ordered restitution to the Social Security Administration of $273,463, and a $19,600 special assessment.
From approximately 2001 through October 2011, Linda Weston and her co-conspirators lured mentally disabled individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia, Pennsylvania, Killeen, Texas, Norfolk, Virginia, and West Palm Beach, Florida. Weston and the co-conspirators targeted mentally challenged individuals who were estranged from their families. Once Linda Weston convinced them to move in, she became their representative payee with Social Security and began to receive their disability benefits and in some instances, their state benefits. On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and Weston Family purposes.
Weston, Jean McIntosh, Eddie Wright and others confined their victims to locked rooms, basements, closets, attics, and apartments. While confined, the captives were often isolated, in the dark, and sedated with drugs placed in their food and drink by Weston and other defendants. When the individuals tried to escape, stole food, or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until October 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city's Tacony section. The enterprise victimized six disabled adults and four children.
In April 2005, Weston and a co-defendant targeted victim Donna Spadea. They brought Donna Spadea to a home at 2211 Glenview Avenue, in Philadelphia. Donna Spadea was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, Donna Spadea was found dead in the basement. Weston ordered other members of the household to move Donna Spadea's body to a different location before calling law enforcement.
In 2008, victim Maxine Lee was living with the family. Maxine Lee was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined Maxine Lee inside a kitchen cabinet and an attic for several months. Maxine Lee subsequently died of bacterial meningitis and starvation in November of 2008. Weston ordered other members of the household to move Maxine Lee's body to a bedroom and stage the scene before calling law enforcement. The next day the family left for Philadelphia.
Weston’s daughter, Jean McIntosh, and co-defendant Eddie Wright have already pleaded guilty. Co-defendants Gregory Thomas, Sr., and Nicklaus Woodard are awaiting trial.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, IRS Criminal Investigations, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ West Palm Beach Field Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett and Faithe Moore Taylor.
Wilmington Man Sentenced to 240 Months for Interstate Transportation of Women in Support of ProstitutionRead the Press Release
RALEIGH - United States Attorney Thomas W. Walker announced RANDOLPH JOHNSON SPAIN, 26, was sentenced yesterday by Senior United States District Judge James C. Fox to 240 months imprisonment.
SPAIN was found guilty after trial by jury in January, 2015, of Interstate Transportation in Support of Prostitution on two separate occasions. The evidence at trial indicated SPAIN met and wooed a woman for several months, then took her to Myrtle Beach, SC, where he told her he was a pimp and she would be his prostitute or “face the consequences.” Thereafter, he controlled that woman, as well a second woman who testified at trial, through violence, and took both women to Virginia and other states for prostitution. The investigation revealed SPAIN also controlled and exploited additional women.
SPAIN was sentenced to 240 months’ imprisonment, the statutory maximum. The term of imprisonment is to be followed by 10 years’ supervised release.
Investigation of this case was conducted by the Wilmington Police Department, New Hanover County Sheriff’s Office, and the United States Department of Homeland Security.
Watertown Man Sentenced to 18 Years in Prison for Armed RobberyRead the Press Release
SYRACUSE, NEW YORK – Yarbrough Latulas, 31, of Watertown, NY, was sentenced today to serve 216 months imprisonment followed by 3 years of supervised release in connection with the armed robbery of a convenience store in Watertown, announced U.S. Attorney Richard S. Hartunian. On May 22, 2015 Latulas was found guilty of conspiracy to interfere with interstate commerce by robbery, interference with interstate commerce by robbery, and using and carrying a sawed-off shotgun during and in relation to a crime of violence, following a five day jury trial in United States District Court in Syracuse. The sentence imposed today included an enhancement for obstruction of justice based upon the defendant’s false testimony during the trial.
The evidence at trial established that on July 31, 2013, Yarbrough Latulas and Robert Williams acted together when they entered the Sunoco mini-mart at 1222 Washington Street, Watertown, New York where Latulas stole money and tobacco products while Robert Williams pointed a sawed-off 12 gauge shotgun at the store clerk. Robert Williams pled guilty to participating in the armed robbery and will be sentenced on November 12, 2015.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorneys Ransom P. Reynolds and Nicolas Commandeur.
U.S. Trustee Program Reaches $81.6 Million Settlement with Wells Fargo Bank N.A. to Protect Homeowners in BankruptcyRead the Press Release
Settlement Addresses the Bank’s Errors Affecting Nearly 68,000 Accounts of Homeowners in Bankruptcy
The Department of Justice’s U.S. Trustee Program has entered into a national settlement agreement with Wells Fargo Bank N.A. (Wells Fargo) requiring Wells Fargo to pay $81.6 million in remediation for its repeated failure to provide homeowners with legally required notices, thereby denying homeowners the opportunity to challenge the accuracy of mortgage payment increases. These failures violated federal bankruptcy rules that took effect in December 2011 and imposed more detailed disclosure requirements to ensure proper accounting of fees and charges on homeowners in bankruptcy.
Bankruptcy Rule 3002.1 requires mortgage creditors to file and serve a notice 21 days before adjusting a Chapter 13 debtor’s monthly mortgage payment. Wells Fargo acknowledges that it failed to timely file more than 100,000 payment change notices (PCNs) and failed to timely perform more than 18,000 escrow analyses in cases involving nearly 68,000 accounts of homeowners in bankruptcy between Dec. 1, 2011, and March 31, 2015. Under the settlement, Wells Fargo also will change internal operations and submit to oversight by an independent compliance reviewer. The proposed settlement has been filed in the U.S. Bankruptcy Court for the District of Maryland, where it is subject to court approval.
“I am pleased that Wells Fargo has acted responsibly by accepting accountability for its deficient bankruptcy practices, agreed to compensate affected homeowners for those deficiencies and committed to making necessary improvements in its bankruptcy operations,” said Director Cliff White of the U.S. Trustee Program. “When creditors fail to comply with the bankruptcy laws and rules, they compromise the integrity of the bankruptcy system and must be held accountable. Transparency in the process is of paramount importance. Homeowners in bankruptcy have the right to proper and timely notices, particularly when they are being asked to pay more. The U.S. Trustee Program remains diligent in its effort to hold financial institutions that disregard the law accountable for their actions.”
Settlement Terms
Wells Fargo agrees to pay a total of $81.6 million to homeowners who were in bankruptcy between Dec. 1, 2011, and March 31, 2015, and who were affected by Wells Fargo’s failure to timely file PCNs and escrow statements, including:
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$53.6 million will be paid to more than 42,000 homeowners whose payments increased as to which Wells Fargo failed to timely file a PCN with the court. The payment will be in the form of a credit to the homeowner’s mortgage account in a lump sum amount, which averages $1,254 per homeowner and varies depending on the homeowner’s mortgage balance. More than 70 percent of the total payments will go to homeowners who have mortgage balances under $300,000. These payments will be made regardless of whether homeowners actually paid the increased amount.
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An estimated $10 million will be paid by crediting homeowners’ accounts at the end of their bankruptcy cases if, upon a detailed review of the accounts, it is determined the homeowners were not fully compensated through the initial crediting process described above. Wells Fargo estimates that 15 to 20 percent of homeowners who receive the initial payments will be due additional amounts at case closing.
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$1.5 million will be refunded in cash to about 3,000 homeowners where notices of decreases in monthly payments were not timely provided and the homeowners paid more than the actual amount due.
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$1 million will be refunded in cash to about 2,400 homeowners who satisfied escrow shortages by making a lump sum payment, but whose monthly payments did not decrease to account for the lump sum payment.
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$4.5 million will be paid by crediting the mortgage escrow accounts of about 6,000 homeowners who did not receive timely escrow statements. Wells Fargo will credit the amount of any increase in escrow shortage that was incurred between the time Wells Fargo should have performed the analysis and the time it actually did perform the analysis. As a result, homeowners will not be responsible for any increase in the escrow shortage stemming from Wells Fargo’s failure to timely perform the escrow analysis.
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$4 million will be paid to about 12,000 homeowners by crediting mortgage accounts in the amount of $333, where Wells Fargo failed to timely perform an escrow analysis that would have resulted in a PCN being filed and the homeowner is not already receiving remediation for a missed or untimely PCN.
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$4 million will be refunded in cash to about 6,000 homeowners who did not receive timely escrow statements and whose escrow accounts contained surpluses that Wells Fargo had not refunded or credited toward the next year’s escrow payment.
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$3 million in remediation to about 8,000 homeowners has already been completed by Wells Fargo for certain violations.
In addition to the monetary remediation, Wells Fargo will make changes to internal procedures to prevent recurrence of the violations. These changes include improvements to its computer platform, improvements to employee training and oversight and implementation of quality control processes to ensure the accuracy and timeliness of PCNs and escrow statements.
The settlement resolves any actions that could be brought by the U.S. Trustee Program for the covered conduct, but does not limit the rights of any homeowner or other third party to take action against Wells Fargo.
Wells Fargo and the U. S. Trustee Program have selected Lucy Morris of Hudson Cook LLP, to serve as an independent reviewer who will verify that Wells Fargo complies with the settlement order. The independent reviewer will file periodic public reports with the bankruptcy court. Wells Fargo will pay all costs associated with the compliance review, including the compensation of the independent reviewer.
Homeowners with questions about the settlement may contact Wells Fargo at 1-800-274-7025.
Director White commended the U.S. Trustee Program team who expertly investigated, litigated and settled this matter, including Deputy Director and General Counsel Ramona Elliott, Senior Trial Attorney Diarmuid Gorham, National Creditor Enforcement Coordinator Gail Geiger, Assistant U.S. Trustee Catherine Stavlas and Trial Attorney Kelley Callard.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The U.S. Trustee Program has 21 regions and 93 field office locations.
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U.S. Attorney’s Office for the SDFL Hosts Collaborative Symposium to Prevent and Combat Cyber CrimeRead the Press Release
Yesterday, the U.S. Attorney’s Office for the Southern District of Florida hosted a symposium to combat cyber crimes with participation from high ranking officials with the Federal Bureau of Investigation and U.S. Secret Service, as well as approximately eighty representatives from some of the district’s largest companies, hospitals and academic institutions.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Cyber crimes continue to evolve and pose a significant threat to our nation and the privacy and economic security of American consumers and businesses. In order to derail and block cyber intrusions, it is imperative that businesses, companies and institutions report any suspected breach of a network system, identify and notify victims, minimize the impact of the intrusion and work with law enforcement to prevent and combat cybersecurity threats. The mission of law enforcement is to thwart cyber attacks, protect trade secrets, safeguard valuable data and prosecute those who seek to steal from and cripple corporations, medical facilities and academic institutions. Federal law enforcement agencies have joined forces with private entities to protect business ventures and the countless consumers, students and patients who benefit from the services offered by our nation’s industry and business leaders.
“The virtual theft of personal consumer data and other valuable business information is a threat to companies of all shapes and sizes,” stated U. S. Attorney Ferrer. “By bringing together the business and law enforcement communities, we intend to foster our mutual and compelling interest in developing comprehensive and collaborative strategies to prevent and combat cyber attacks. It is our hope that companies and businesses report intrusions and other types of cyber attacks to law enforcement so that we can continue to protect individual citizens and companies that are too often victimized by cybercrime.”
“Cyber is a vector of attack that touches every FBI program and is a means by which criminals of all sorts accomplish their aims. Through similar meetings we hope to build the kind of public and private partnerships to one day predict and prevent cyber attacks, rather than reacting after the fact,” said FBI SSA Jason Manar.
Mr. Ferrer commended the collective efforts of the FBI, USSS, corporations, businesses, hospitals and academic institutions to combat cyber crimes. To report a cybercrime or cybersecurity threat, please visit www.ic3.gov or contact the USSS at (305) 863-5000. To learn more about how to protect your business and consumers from cyber threats, visit www.us-cert.gov.
Two Sentenced to Prison for over $7.2 Million in FraudRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Brian Newton (58, New Smyrna Beach) and Victoria Snow (55, Clearwater) for their role in defrauding more than 60 victims out of over $7.2 million. Newton was sentenced to 15 years and 8 months in federal prison, and Snow was sentenced to 4 years and 9 months’ imprisonment. They were both ordered to pay more than $7.2 million in restitution. A federal jury convicted Newton and Snow on July 20, 2015.
According to evidence presented at trial, Newton and Snow worked on behalf of Dataforce International, Inc. Beginning in 2003, Dataforce had a contract to “factor” its invoices at Amerifactors Financial Group. “Factoring” is a financial transaction by which a business sells its accounts receivables, such as invoices, to a third party (called a factor) at a discount. Accounts receivable are created when a business performs services or sells goods to a client. The factor provides financing to the seller of the invoice in the form of an advance. Once an invoice has been factored by a business, the business will typically arrange to have the client pay the third party factor directly.
In 2003, Newton and a business partner established a factor by the name of Prestige Funding. To fund its factoring, Prestige Funding solicited investors. In total, the company raised more than $8 million from over 60 investors to be used to factor invoices.
As part of their scheme, Newton and Snow submitted a series of invoices for factoring to Amerifactors that were inflated and that did not reflect work that had been performed by Dataforce. In addition, the two engaged in “double factoring,” which involved submitting the same Dataforce invoices for factoring to both Amerifactors and Prestige Funding. By executing this scheme, Newton and Snow were able to defraud Amerifactors, Prestige Funding, and the investors of Prestige Funding out of more than $7.2 million. Of that amount, Newton diverted over $3 million into his personal bank account.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Two Men Charged with Drug and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kyle Eugene Gordon, age 27, of Chambersburg, and Reginald L. Lomax, Jr., age 32, of York, were indicted separately by a federal grand jury yesterday in Harrisburg on drug and firearm offenses.
According to U.S. Attorney Peter Smith, Gordon is charged with being a felon unlawfully in possession of a firearm, possessing heroin with intent to distribute, and possession of a firearm in furtherance of drug trafficking, during April 2014 in Franklin County.
The investigation was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Franklin County Drug Taskforce. Prosecution is assigned to Assistant U.S. Attorney Eric Pfisterer.
Lomax, Jr. is charged with being a person unlawfully in possession of a firearm, possessing crack cocaine with intent to distribute, and possession of a firearm in furtherance of drug trafficking, during December 2014 in York County.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the York City Police Department. Prosecution is assigned to Assistant U.S. Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for Gordon and Lomax under federal law is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Former Rabobank Traders Convicted for Manipulating U.S. Dollar, Yen LIBOR Interest RatesRead the Press Release
A federal jury convicted two former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) derivative traders – including the bank’s former Global Head of Liquidity & Finance in London – today for manipulating the London InterBank Offered Rates (LIBOR) for the U.S. Dollar (USD) and the Yen, benchmark interest rates to which trillions of dollars in interest rate contracts were tied. Five former Rabobank employees have now been convicted in the Rabobank LIBOR investigation.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division and Assistant Director in Charge Paul Abbate of the FBI’s Washington Field Office made the announcement.
“Today’s verdicts illustrate the department’s successful efforts to hold accountable bank executives responsible for this global fraud scheme,” said Assistant Attorney General Caldwell. “This investigation—which also resulted in the recent conviction of a bank executive in the U.K.—exemplifies the department’s work with our international partners to protect our global markets from fraud. The verdicts also demonstrate the department’s ongoing efforts to hold individuals who use their corporate positions to commit fraud personally responsible for their actions.”
“The department will continue to pursue aggressively those involved in illegal schemes that undermine the integrity of financial markets,” said Assistant Attorney General Baer. “And we will hold individuals criminally accountable for directing illegal corporate behavior.”
“These convictions make clear that bank executives and traders will be held accountable for manipulating world interest rates for their own personal benefit,” said Assistant Director in Charge Abbate. “Today’s verdict is a testament to the dedication of the special agents, analysts and prosecutors who worked tirelessly to uncover manipulation and fraud in the global financial system.”
After a four-week trial, a jury in the Southern District of New York found Anthony Allen, 44, of Hertsfordshire, England, and Anthony Conti, 46, of Essex, England, guilty of conspiracy to commit wire and bank fraud and substantive counts of wire fraud.
As the trial evidence showed, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world and reflecting the rates those banks believe they would be charged if borrowing from other banks. At the time relevant to the charges, LIBOR was calculated for 10 currencies at 15 maturities, ranging from overnight to one year, and was published by the British Bankers’ Association (BBA), a London-based trade association, based on submissions from a panel of 16 banks, including Rabobank. Allen, Conti and Paul Robson, who previously pleaded guilty to the conspiracy charge, each determined Rabobank’s LIBOR submissions on various occasions.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. Rabobank invested in various derivatives contracts that were directly affected by the relevant LIBOR rates on a certain dates. If the relevant LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.
Evidence at trial established that Allen, who was Rabobank’s global head of liquidity and finance and the manager of the company’s money market desk in London, oversaw a system in which Rabobank employees who traded in these LIBOR-linked derivative products influenced the employees who submitted Rabobank’s LIBOR contributions to the BBA. These traders asked Allen, Conti, Robson and others to submit LIBOR contributions that would benefit the traders’ or the banks’ trading positions.
Sentencing is scheduled for March 10, 2016.
In addition to Allen and Conti, three other former Rabobank employees have been convicted in the Rabobank LIBOR investigation. Robson, Lee Stewart and Takayuki Yagami each pleaded guilty to one count of conspiracy in connection with their roles in the scheme. Two other former Rabobank employees, Tetsuya Motomura, 42, of Tokyo, and Paul Thompson, 48, of Dalkeith, Australia, have also been charged. Rabobank entered into a deferred prosecution agreement with the department on Oct. 29, 2013, and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.
The case was investigated by special agents, forensic accountants and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs and Deputy Chief Daniel Braun and Assistant Chief Brent Wible of the Criminal Division’s Fraud Section are thanked for their substantial assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, played a major role in the LIBOR investigation. The Securities and Exchange Commission also played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
Two Charged with Conspiracy to Retaliate Against Witness in Federal Trial of Prominent 1-9 Gang MemberRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of TYWIN BENDER, a/k/a/ “Finn Winn,” 25, and ROYAL ANGEL HINES, 20, for conspiring to retaliate against two federal witnesses. HINES made an initial appearance yesterday before Magistrate Judge Tony Leung in U.S. District Court in St. Paul, Minn. BENDER will make an initial appearance today in U.S. District Court in St. Paul, Minn.
“Witness retaliation is an assault on the integrity of our criminal justice system itself,” said U.S. Attorney Luger. “We rely on the honest testimony of witnesses to make communities safer and deliver justice. Retaliatory violence against those witnesses will be dealt with to the fullest extent allowable by law.”
According to the indictment and documents filed in court, BENDER is presently incarcerated at Minnesota Correctional Facility (MCF) – Stillwater on a 75-month sentence for aggravated robbery. He is a member of a North Minneapolis street gang known as the “Stick up Boys.” In November 2014, BENDER was charged in an 11-defendant indictment with conspiracy to possess firearms. BENDER pleaded guilty on October 8, 2015, to the conspiracy. One of his co-defendants, Veltrez Black, a/k/a, “Chief,” was convicted by a jury on October 22, 2015, of conspiracy and other charges contained in the same indictment.
According to the indictment and documents filed in court, during the trial of Black, A.L., a member of the “Stick up Boys,” and K.W., a member of a rival street gang known as the “Taliban,” testified as government witnesses against Black. The day after Black was convicted, BENDER placed a phone call to HINES during which he directed HINES to send an e-mail to two inmates incarcerated at MCF – Rush City, which is the same facility where federal witnesses A.L and K.W. are incarcerated. BENDER dictated the content of the email to HINES as follows: “The nigga Bonus [nickname for A.L.] is a rat. Smash him as soon as you all catch him. Green light. No passes. No talking. He got on the stand on Chief.”
According to the indictment and documents filed in court, HINES sent one e-mail that BENDER had dictated to her to each of the two inmates at MCF – Rush City. One of the emails was intercepted by Department of Corrections employees before it was received but the other e-mail was not intercepted.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.
Defendant Information:
TYWIN BENDER, a/k/a/ “Finn Winn,” 25
Stillwater, Minn.
Charges:
- Conspiracy to retaliate against a federal witness, 1 count
ROYAL ANGEL HINES, 20
St. Paul, Minn.
Charges:
-
Conspiracy to retaliate against a federal witness, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Twelve Arrested in Two Year Investigation of Major Meth and Heroin Trafficking OrganizationRead the Press Release
A two year investigation of a major drug trafficking ring in King and Snohomish counties culminated in 12 arrests today following the unsealing of a grand jury indictment and filing of criminal complaints against two dozen defendants, announced U.S. Attorney Annette L. Hayes. Over the two years of the Drug Enforcement Administration led investigation, law enforcement seized more than 50 pounds of heroin and more than 100 pounds of methamphetamine. The organization moved significant amounts of cash as part of their trafficking. To date more than $1,118,000 has been seized by law enforcement.
“Heroin and methamphetamine remain significant threats to the health of our communities. This group was transporting and distributing large quantities of both drugs up through California and into King and Snohomish Counties,” said U.S. Attorney Annette L. Hayes. “I commend the DEA-led task force that worked diligently to identify those in this distribution chain so that they can be held accountable for spreading these poisons in the Puget Sound region.”
Early this morning law enforcement served search warrants on ten locations in King and Snohomish Counties. Today alone law enforcement seized 14 pounds of heroin, 43 pounds of methamphetamine, a large sum of cash and eight handguns.
“Heroin and methamphetamine seizures have skyrocketed in the Pacific Northwest and are troubling,” said DEA Special Agent in Charge Keith Weis. “Today, we crippled a transnational criminal organization with tentacles in our area. We remain focused on removing those who supply narcotics to the violent distribution networks destroying our communities.”
Those arrested will make their initial appearance today at 2:00 in front of U.S. Magistrate Judge James P. Donohue. The defendants in custody today include:
Alfredo Enciso-Begines, 27, Bothell, WA
Jose Manuel Estrada-Contreras, 33, Marysville, WA
Francisco Javier Munoz-Contreras, 26, Marysville, WA
Adrian Ortega-Gonzalez, 20, Marysville, WA
Jesse Price, 30, Stanwood, WA
Tracy Raley, 34, Marysville, WA
Marlen Ravelo, 47, Port Angeles, WA
Luis Zamudio-Rivera, 37, Marysville, WA
Maria Polonia-Serrano, 57, Fresno, CA
Gladys Morales-Garibay, 26, Marysville, WA
Michael Peterman, 34, Everett, WA
Juan Gerardo Ruiz, 30, Marysville, WA
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The investigation was led by the Drug Enforcement Administration (DEA) in conjunction with the Seattle Police Department and the Snohomish Regional Drug and Gang Task Force. The investigation was supported by the Internal Revenue Service, King County Sheriff’s Office, Snohomish County Sheriff’s Office, Everett Police Department and the Marysville Police Department. Additional assistance was provided by the Centralia Police Department, Washington State Patrol, Port of Seattle Police Department and Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorneys Karyn Johnson and Andy Colasurdo.
Three Sentences Handed Down in Mortgage Fraud CasesRead the Press Release
SACRAMENTO, Calif. — As part of the ongoing effort by U.S. Attorney’s Office to prosecute mortgage fraud, three defendants were sentenced today for their roles in separate mortgage fraud schemes, United States Attorney Benjamin B. Wagner announced.
West Sacramento Man Sentenced for Mortgage Fraud (2:11-cr-353 MCE)
United States District Judge Morrison C. England Jr. sentenced Sean McClendon, 49, of Elk Grove, today to one year and eight months in prison. On October 18, 2012, McClendon pleaded guilty to a conspiracy to commit mail fraud for his involvement in a Sacramento area mortgage fraud scheme with Anthony Salcedo and Anthony Williams. According to court documents, McClendon and Williams recruited straw buyers to purchase four properties owned by Salcedo or his associates using kickbacks, false financial information for the buyers, and payments outside of escrow. All properties involved were foreclosed by the lenders, resulting in losses of over $1 million. In June 2015, a jury found Salcedo guilty of four counts of mail fraud and one count of conspiracy to commit mail fraud. He is scheduled to be sentenced on November 12, 2015. On January 29, 2015, Williams was sentenced to two years and nine months in prison.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Marilee Miller are prosecuting the case.
Mortgage Broker Sentenced for False Statements on a Loan Application (2:13-cr-131 MCE)
United States District Judge Morrison C. England Jr. sentenced Valeri Kalyuzhnyy, 44, of Citrus Heights, to two years in prison. On June 25, 2015, Kalyuzhnyy pleaded guilty to making a false statement on a loan application. According to court documents, Kalyuzhnyy, while working as a mortgage broker, bought two homes using the credit information of a straw buyer. The loan applications that were used to secure the properties contained numerous false statements regarding the buyer’s intent to occupy the property, employer, occupation, and monthly income. In order to support the inflated monthly income listed on the loan application, fraudulent tax returns were submitted. On July 17, 2007, Kalyuzhnyy gave the straw buyer a check for $29,000.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Jared C. Dolan prosecuted the case.
San Joaquin County Man Sentenced for Mortgage Fraud Scheme (2:11-cr-468 TLN)
United States District Judge Troy L. Nunley sentenced Stephen Pirt, 37, of Mountain House, to two years and one month in prison for his participation in a large-scale mortgage fraud scheme. According to evidence presented at the trial for co-defendant Erik Hermann Green, 33, of Roseville, Pirt and Green defrauded the New Century Mortgage Company by submitting false documentation about borrowers’ employment, income and assets, including fraudulent loan applications and other altered bank documents. On September 19, 2013, Stephen Pirt pleaded guilty to wire fraud.
Judge Nunley told Pirt, “You were an organizer and leader of the scheme, and you need to be punished for that.” The judge also explained the need for a proper deterrent effect.
Green is scheduled to be sentenced by Judge Nunley on November 19, 2015. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Alameda County District Attorney’s Office. Assistant United States Attorney Michael D. Anderson and Special Assistant United States Attorney Josh F. Sigal are prosecuting the case.
Three Bay Area Defendants Charged in False Tax Refund SchemesRead the Press Release
SAN FRANCISCO – Carol Bryant, AKA Carol Lawson, Mark Russell, and Anyssa Hall were charged with conspiracy to file false claims, wire fraud, theft of public money, aiding and abetting, and aggravated identity theft announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
According to the indictment, beginning on January 9, 2009, through May 4, 2013, Mark Russell and Anyssa Hall, both of Richmond, and Carol Bryant, of San Pablo, conspired to defraud the Internal Revenue Service (IRS). As part of the scheme, the defendants and others procured the names and identities of individual taxpayers through illegal means or by agreement as participants in the scheme. Using the names and identities, the defendants filed, or helped others file, false federal income tax returns with the IRS. These federal income tax returns falsely reported that the individual taxpayers earned wages in amounts specified on fictitious Forms W-2 that were filed with the false federal income tax returns. The federal income tax returns falsely reported that taxes had been withheld by employers and falsely claimed refunds from the IRS that the taxpayers were not entitled to receive. The defendants and other co-conspirators requested that the IRS transmit the fraudulent refunds into bank accounts they controlled and that were linked to debit cards they used to access the fraudulent refunds.
All three defendants were charged with conspiracy. Bryant was also charged with two counts of theft of government property, wire fraud, and two counts of aggravated identity theft. Russell was also charged with two counts of wire fraud and two counts of aggravated identity theft. Hall was also charged with theft of government property.
Russell and Bryant were arrested on November 2, 2015, and made their initial appearance before the Honorable Kandis Westmore, U.S. Magistrate Judge, in Oakland on November 4, 2015. Both Russell and Bryant are scheduled to appear before the Honorable Yvonne Gonzalez-Rogers on December 3, 2015, at 3:00 p.m. in the Oakland Federal Building. Hall currently is a fugitive.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum sentence for conspiracy to file false claims, in violation of 18 U.S.C § 286, is 10 years in prison and a fine of $250,000. The maximum penalty for theft of public money, in violation of Title 18, U.S.C § 641, is 10 years in prison and a fine of $250,000. The maximum penalty for wire fraud, in violation of Title 18, U.S.C § 1343, is 20 years in prison and a fine of $250,000. The maximum penalty for each count of identity fraud, in violation of a Title 18, U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
The U.S. Attorney's Office and the Department of Justice Announce 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Criminal InformationRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney for the Western District of North Carolina Jill Westmoreland Rose and the Department of Justice announced today the first 10 tribes to participate in an initial User Feedback Phase of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
In the Western District of North Carolina, the Eastern Band of Cherokee Indians has been selected to participate in this initial phase of the TAP.
“As one of the tribes selected to participate in the initial phase of TAP, the Eastern Band of Cherokee Indians and its criminal justice agencies will gain greater access to federal crime information databases and crime solving tools that can be used to effectively serve and protect their communities. My office has a strong history of working closely with our tribal counterparts, and through this program we will continue to support our tribal partners’ mission of keeping the citizens of the Qualla Boundary safe,” said U.S. Attorney Rose.
The User Feedback Phase will grant access to national crime information databases and technical support to the following tribes: the Cherokee Nation of Oklahoma, the Eastern Band of Cherokee Indians of North Carolina, the Keweenaw Bay Indian Community of Michigan, the Oneida Indian Nation of New York, the Pascua Yaqui Tribe of Arizona, the Suquamish Indian Tribe of the Port Madison Reservation of Washington, the Shoshone-Bannock Tribes of the Fort Hall Reservation of Idaho, the Tulalip Tribes of Washington, the Confederated Tribes of the Umatilla of Oregon, and the White Mountain Apache Tribe of the Fort Apache Reservation of Arizona.
“This innovative program will allow an unprecedented sharing of critical information between tribal, state and federal governments, information that could help solve a crime or even save someone’s life,” said Deputy Attorney General Sally Quillian Yates. “This initial phase of TAP will help us understand the information gaps and the best ways to use this service to strengthen public safety in Indian country. The TAP program is a reflection of the Justice Department’s commitment to the government-to-government relationship, to overcoming barriers, and building strong partnerships with American Indian and Alaska Native people. The department will continue to work with Congress for additional funding to more broadly deploy the program.”
TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots, and submit records to national databases, as well as the ability to access the FBI’s Criminal Justice Information Service (CJIS) systems for criminal and civil purposes through the Department of Justice. TAP will also provide specialized training and assistance for participating tribes.
This initial phase, funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) and supported with technical assistance from the Office of the Chief Information Officer, will focus on assisting tribes that have law enforcement agencies. In the future, the department will seek to address the needs of the remaining tribes and find a long-term solution.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal crime information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA Purpose Code X Program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services, which will conduct name-based checks in situations where parents are unable to care for their children.
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
Ten Charged in $11.1 Million Tax Refund Fraud ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned a 14-count indictment, unsealed today, charging 10 defendants with conspiracy, theft of government funds, and aggravated identity theft. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The defendants are:
- Ja’Baree Vazquez Allen, 26, Tallahassee, Florida;
- Ronald Edward Brown, 27, Quincy, Florida;
- Anre’ Juardon Davis, 34, St. Petersburg, Florida;
- Addrain Montez McMillan, 29, Overland Park, Kansas;
- Rashard Lavonta McMillian, 26, Quincy, Florida
- Jasmine Junae Robinson, 25, Tallahassee, Florida;
- Daria Patrice Simmons, 33, Tampa, Florida;
- Jazzman Shabazz Simmons, 27, Tallahassee, Florida;
- John Walter Simmons, 34, Tampa, Florida; and
- Mercedes Shevon Sutton, 25, Tampa, Florida.
The indictment alleges that, between January 2011 and April 2014, the conspirators fraudulently obtained the personal identifying information of approximately 2,800 individuals from multiple sources, including the insurance provider AmeriGroup and the online death database, dobsearch.com. The indictment further alleges that the conspirators then prepared and electronically filed fraudulent federal income tax returns using the victims’ information and caused the Internal Revenue Service to issue tax refunds in the victims’ names. The tax refunds were allegedly loaded onto debit cards, issued in the form of U.S. Treasury checks, and deposited into bank accounts controlled by the conspirators. By this conduct, the conspirators allegedly attempted to obtain approximately $11.1 million in tax refunds. Additionally, John Walter Simmons is charged with knowingly possessing a firearm as a convicted felon. The trial is scheduled for December 14, 2015, at 8:30 a.m.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Tallahassee Police Department, and the Leon County Sheriff’s Office. Assistant United States Attorney Jason R. Coody is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Sharpsville Man Named in Six-Count Indictment Charging Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH - A resident of Mercer County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production, distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on Nov. 4, named Jason D. Lambert, 40, of Sharpsville, Pennsylvania, as the sole defendant.
According to the indictment, Lambert, on or about May 11, 2015, employed, used, persuaded, induced, enticed, and coerced a child victim to engage in sexually explicit conduct for the purpose of producing a video of such conduct, and then, on or about June 1, 2015, used a second child victim to engage in sexually explicit conduct to produce still photographs of the conduct. The indictment further charges that Lambert, in the morning, the late afternoon, and the evening of June 2, 2015, distributed by computer still images depicting minors engaged in sexually explicit conduct to an individual in Washington, D.C. Lastly, the indictment charges that on June 3, 2015, Lambert unlawfully possessed, in computer graphics files, videos and photographs depicting minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 45 years in prison, a fine of $1,500,000.00, 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 Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Serial Fraudster Sentenced to Eight Years in Prison for Business Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Curtis R. Martin, Jr., age 55, of Baltimore, Maryland, today to 8 years in prison, followed by three years of supervised release, for wire fraud. Martin previously pleaded guilty a scheme to defraud a business of more than $132,000. At today’s sentencing hearing the government presented evidence of additional fraud schemes committed by Martin and Judge Bennett found that the total loss as a result of Martin’s fraud schemes was $1,572,195. Judge Bennett entered an order requiring Martin to pay restitution in the full amount of the loss, $1,572,195. In addition, Judge Bennett ordered that Martin perform a total of 300 hours of community service during his supervised release – 100 hours each year.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to his plea agreement, while Martin was serving the final portion of a 162-month federal prison sentence at a halfway house in Maryland in the summer of 2010, he incorporated Oledix Technologies, LLC. Martin assumed the positions of President and Chief Executive Officer (CEO) of Oledix. On December 23, 2010, Martin was released from the halfway house and began serving a three-year term of supervised release. In the fall of 2011, Martin acquired office space for Oledix Technologies in downtown Baltimore, and began hiring employees. Oledix operated from this space until it was evicted for non-payment of rent at the end of June, 2012.
Martin represented that Oledix Technologies was in the business of selling video teleconferencing equipment that employed LED touchscreen technology, and that The Oledix Store was a retail outlet for Oledix Technologies. In fact, neither company did any significant amount of business. It’s operations in 2011 – 2012 were largely funded by money provided by a woman with whom Martin was romantically involved; by charges incurred on corporate credit cards obtained by Martin; and by financing obtained by Martin on behalf of Oledix from financing and leasing companies, including New Century Financial. New Century Financial (NCF) is a Texas company in the business of accounts receivable financing. Accounts receivable financing permits a business to obtain loans from a lender or financing company based upon outstanding invoices issued to customers, but for which payment is not yet due under the terms of the invoice. An accounts receivable financing company agrees to provide financing that is less than the full face value of the invoice. The business receiving the financing instructs its customer to make the payment owed on the invoice to the financing company, which retains the difference between the amount financed and the full face value of the invoice as its profit.
According to the statement of facts, on April 11, 2012, Martin submitted an on-line application for financing to NCF which falsely represented and inflated the monthly sales of Oledix Technologies. In support of the financing application, Martin submitted additional fraudulent documents, including bank statements, financial reports, and sales summaries, that presented a false and misleading picture of the financial position of Oledix Technologies.
In June 2012 he submitted a further request for financing to NCF and provided NCF with a fraudulent invoice which falsely represented that Oledix Techologies had sold Johns Hopkins Hospital/Hopkins Medical Center three “Oledix mobile telemedicine carts” at a cost of $174,200. In August 2012, Martin submitted an additional fraudulent invoice to NCF claiming that Hopkins had purchased an additional six “Oledix Mobile Telemedicine Carts” for a total price of $332,550. In fact, Oledix Technologies had not sold any equipment to Johns Hopkins Hospital or Hopkins Medical Center. To carry out the scheme, Martin sent or caused to be sent to NCF fraudulent emails, purporting to be from a Hopkins doctor and from a Hopkins account manager, which falsely confirmed the validity of the Hopkins invoices.
Martin admitted that, based on his fraudulent representations, NCF provided a total of $132,470 to Martin for the invoices purportedly issued to Johns Hopkins. Martin used the money for personal and business-related expenses.
The government presented evidence today that on May 4, 2012, NCF provided an additional $80,000 in financing to Martin based upon a fraudulent invoice Oledix had purportedly issued to Company 1. Judge Bennett found that not only did Martin defraud NCF of the $80,000, but based on evidence presented by the government, Martin committed other frauds involving eight individual victims and entities, with losses totaling $1,492,195.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked the U.S. Probation Office for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Sentencings for November 2 - November 4, 2015Read the Press Release
Armando Lopez-Ruiz aka Alejandro Garcia-Ramos, Alejandro Garcia-Ralu, 33, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson November 2, 2015, for illegal re-entry of a previously deported alien into the United States. Lopez-Ruiz was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Noah Vonwerner, 28, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 3, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Vonwerner was arrested in Gillette, Wyoming. He received 180 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Christopher Phillips, 32, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 4, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Phillips was arrested in Gillette, Wyoming. He received 121 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Scottish Citizen Indicted for Twitter-Based Stock Manipulation SchemeRead the Press Release
Defendant Tweeted False Information about Publicly Traded Companies, Causing More than $1 Million in Losses
A federal grand jury in San Francisco indicted James Alan Craig today with securities fraud, announced Acting U.S. Attorney Brian J. Stretch of the Northern District of California and Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division.
According to the indictment, Craig, 62, of Dunragit, Scotland, alleged set up Twitter accounts using names similar to real market research firms for the purpose of manipulating stock prices. Craig issued tweets with false and fraudulent information about publicly-traded securities, causing the price of the securities to rapidly decline. Craig then bought securities of the targeted companies through his girlfriend’s brokerage account and later sold them at a higher price per security. Craig’s actions are alleged to have caused of more than $1.6 million in losses to shareholders.
According to the indictment, on Jan. 25, 2013, Craig set up a Twitter account with the handle @Mudd1Waters using the alias “Shun Ho” and a Gmail address he previously created. In an effort to make the account appear to be associated with Muddy Waters Research, a market research firm, Craig used the firm’s logo as the Twitter account’s profile picture. Craig also used a name associated with the founder of Muddy Waters Research as the account’s handle. On Jan. 29, 2013, Craig used the @Mudd1Waters Twitter account to publish multiple false and fraudulent tweets about the Bay Area sound technology company, Audience. For example, Craig tweeted that Audience was being investigated by the “DOJ” on rumored fraud charges. Audience’s security price on the NASDAQ stock exchange fell significantly in the wake of Craig’s tweets until trading was halted. That same day, Craig used his girlfriend’s TradeMonster account to purchase 300 shares of Audience’s securities. The next day, he bought another 100 shares of Audience’s securities. Craig then sold all 400 securities at a per-share price higher than the 300 he had bought the day before.
The indictment describes a similar scheme involving Sarepta, a biopharmaceutical firm based in Washington. According to the indictment, on Jan. 29, 2013, Craig set up a Twitter account with the handle @citreonresearc using a false email address purporting to belong to Citron Research, a market research firm. Craig used Citron Research’s logo as the Twitter account’s profile picture in an effort to make the account appear to be associated with the firm. The next day, Craig used the @citreonresearc Twitter account to publish multiple false and fraudulent tweets about Sarepta’s business activities, such as that Sarepta’s trial papers were seized by the “FDA.” Sarepta’s security price fell significantly in the wake of Craig’s tweets. That same day, Craig used his girlfriend’s TradeMonster account to purchase 700 total shares of Sarepta’s securities. Then, on or about Feb. 1, 2013, Craig sold all 700 securities at an average per-share price higher than the average per-share price at which he had bought them.
Craig was charged with a single count of securities fraud. The Securities and Exchange Commission filed a separate complaint today charging Craig with securities fraud.
“The allegations in this indictment describe a significant stock price manipulation committed through the use of social media,” said Acting U.S. Attorney Stretch. “This prosecution makes clear that we will find and prosecute those who commit fraud on our stock exchanges, by any means, no matter where they reside.”
“This investigation dismantled a stock market manipulation scheme that operated with one goal in mind — to falsely defame a company in order to destroy its stock value for financial gain,” said Special Agent in Charge Johnson. “The FBI is dedicated to stopping this type of predatory behavior. It causes substantial harm to businesses, deceives the average investor and erodes overall confidence in the markets.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Craig faces a maximum sentence of 25 years’ imprisonment and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
Assistant U.S. Attorney Robert David Rees of the Northern District of California is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by the FBI.
Scottish Citizen Indicted for Twitter-Based Stock Manipulation SchemeRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted James Alan Craig today with securities fraud, announced Acting United States Attorney Brian J. Stretch and the Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment, Craig, 62, of Dunragit, Scotland, is alleged to have set up accounts at Twitter using names similar to real market research firms for the purpose of manipulating stock prices. Craig issued so-called “Tweets” with false and fraudulent information about publicly-traded securities, causing the price of the securities to rapidly decline. Craig then bought securities of the targeted companies through his girlfriend’s brokerage account and later sold them at a higher price per security. Craig’s actions are alleged to have caused losses to shareholders in excess of $1,600,000.00.
According to the indictment, on January 25, 2013, Craig set up a Twitter account with the handle @Mudd1Waters using the alias “Shun Ho” and a Gmail address he previously created. In an effort to make the account appear to be associated with Muddy Waters Research, a market research firm, Craig used the logo of that firm as the Twitter account’s profile picture. As part of that same effort, Craig used a name associated with the founder of Muddy Waters Research, as the account’s handle. A few days later, on January 29, 2013, Craig used the @Mudd1Waters Twitter account to publish multiple false and fraudulent Tweets about the Bay Area sound technology company, Audience. For example, Craig Tweeted that Audience was being investigated by the “DOJ” on rumored fraud charges. Audience’s security price on the NASDAQ stock exchange fell significantly in the wake of Craig’s Tweets until trading was halted. That same day, Craig used his girlfriend’s TradeMonster account to purchase 300 shares of Audience’s securities. The next day, he bought 100 more shares of Audience’s securities. Craig then sold all 400 securities at a per-share price higher than the 300 he had bought the day before.
The indictment describes a similar scheme involving the Washington-based biopharmaceutical firm Sarepta. According to the indictment, on January 29, 2013, Craig set up a Twitter account with the handle @citreonresearc using a false email address purporting to belong to Citron Research. As the Twitter account’s profile picture, Craig used the logo of Citron Research, a market research firm, in an effort to make the account appear to be associated with that firm. The next day, Craig used the @citreonresearc Twitter account to publish multiple false and fraudulent Tweets about Sarepta’s business activities, such as that Sarepta’s trial papers were seized by the “FDA.” Sarepta’s security price fell significantly in the wake of Craig’s Tweets. That same day, Craig used his girlfriend’s TradeMonster account to purchase 700 total shares of Sarepta’s securities. Then, on or about February 1, 2013, Craig sold all 700 securities at an average per-share price higher than he average per-share price he had bought them the day before.
Craig was charged with a single count of securities fraud, in violation of Title 18, United States Code, Section 1348. The Securities and Exchange Commission has filed a separate complaint today charging Craig with securities fraud.
“The allegations in this indictment describe a significant stock price manipulation committed through the use of social media,” said Acting United States Attorney Brian Stretch. “This prosecution makes clear that we will find and prosecute those who commit fraud on our stock exchanges, by any means, no matter where they reside.”
“This investigation dismantled a stock market manipulation scheme that operated with one goal in mind — to falsely defame a company in order to destroy its stock value for financial gain,” said Special Agent in Charge David J. Johnson. “The FBI is dedicated to stopping this type of predatory behavior. It causes substantial harm to businesses, deceives the average investor and erodes overall confidence in the markets.”
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Craig faces a maximum sentence of 25 years’ imprisonment and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Sacramento Couple Sentenced for Theft and Possession of Stolen MailRead the Press Release
SACRAMENTO, Calif. — A Sacramento couple was sentenced today by United States District Judge Troy L. Nunley for a smash and grab vehicle burglary in South Sacramento, United States Attorney Benjamin B. Wagner announced.
Keo Seng Saechao, 33, was sentenced to 21 months in prison, and his wife Pang Shoua Xiong, 33, was sentenced to 30 months in prison.
According to court documents, on September 26, 2012, a postal vehicle was burglarized in South Sacramento. The back window of the vehicle was smashed in with a tire iron and all of the mail in the truck was stolen. At the time of the burglary, 531 postal customers were left on the route. Saechao was driving the car during the burglary and Xiong was in the front seat.
On October 11, 2012, California Probation officers and CHP officers conducted a probation search of the defendants’ home as part of an unrelated investigation. They found evidence linking the couple to the postal vehicle burglary, as well as numerous other instances of mail theft in the South Sacramento area. A second search turned up large piles of stolen mail from the addresses that would have been in the vehicle in South Sacramento on September 26, 2012. A search of the computers in the apartment showed false IDs with the defendants’ pictures superimposed on it, “Check Designer” software that allows users to create and print checks, and the names and account numbers associated with several of the fraud victims whose identifiers were found on papers in the apartment.
On July 30, 2015, Saechao and Xiong pleaded guilty to theft of the mail.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Matthew Morris prosecuted the case.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office to arrest and prosecute the individuals responsible for the theft of U.S. Mail and damage to Postal property and equipment.
Ronald Rup, Jr. Pleads Guilty to Equipment Theft from Agri-MarkRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Ronald Rup Jr., 53, of Fairfax, pleaded guilty today in United States District Court in Burlington to a charge of wire fraud. Chief District Judge Christina Reiss released Rup on conditions pending sentencing, which is set for May 10, 2016.
Last month, the United States Attorney filed a criminal information charging Rup with wire fraud, and Rup pleaded guilty to that charge today. According to the information, Rup was employed by Agri-Mark as its manager of IT infrastructure. Several years ago, when Agri-Mark was constructing a new headquarters in Waitsfield, Rup was the employee responsible for purchasing the IT network equipment for the facility. As part of his criminal scheme, Rup caused Agri-Mark to purchase more than 100 pieces of switching equipment than were needed to serve the new building. The switches were expensive – many costing $8500 or more. Between about April 2012 and March 2012, Rup stole the extra switches from Agri-Mark's inventory and sold them over the Internet to a Texas company which specializes in buying and selling new and used IT networking equipment. Rup sold the switches for about one-third of their cost to Agri-Mark. The Texas company paid for the switches by depositing funds into Rup's PayPal account. Altogether, Rup realized more than $475,000 from the sales. He used the money, to buy vehicles, snowmobiles, motorcycles and jewelry, and to pay for improvements to his home, among other things.
Rup faces up to 20 years of imprisonment and a fine of up to twice Agri-Mark's loss. His actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation.
Rup is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Rochester Man Sentenced for Filing False ReturnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced that today Anselmo Barilla, 48, of Rochester, NY, who was convicted of filing a false tax return with the Internal Revenue Service, was sentenced to two years probation and ordered to pay restitution in the amount of $56,152 by U.S. District Court Judge Charles J. Siragusa.Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that the defendant was self-employed as a mason in Rochester. For the tax years 2007 and 2008, Barilla underreported the amount of income he had received from his mason business. The total amount of unreported income was $171,364, resulting in the failure to pay federal taxes in the amount of $56,152.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Rensselaer Man Ordered to Pay $54,000 in Restitution for Theft of Government PropertyRead the Press Release
ALBANY, NEW YORK – Lawrence Macera, age 65, of Rensselaer, was sentenced yesterday to serve two years of probation and to pay $54,041.43 in restitution on a conviction of theft of government property, announced United States Attorney Richard S. Hartunian and Martin J. Dickman, Inspector General for the United States Railroad Retirement Board.
In May, Macera pled guilty to a one-count Information charging theft of government property. Macera was sentenced by U.S. District Court Judge Mae A. D’Agostino.
Macera was prosecuted for receiving approximately $54,041.43 of retirement benefits to which he was not entitled. Specifically, Macera, who was receiving a disability annuity from the Railroad Retirement Board at the time, failed to report income that he received between January 1, 2009 and December 31, 2010. His failure to report that income caused the Railroad Retirement Board to pay him money to which he was not entitled.
This case was investigated by the United States Railroad Retirement Board, Office of Inspector General, and prosecuted by Assistant United States Attorney Emily T. Farber.
RI Dermatology and Cosmetic Center Pays More Than $150,000 to Settle Allegations of Upcoding Medicare ClaimsRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New England Region, announced today that Rhode Island Dermatology and Cosmetic Center, LLC, and Rhode Island Dermatology OBS, LLC, of Lincoln, have paid $152,043.25 to resolve civil allegations that they violated the federal False Claims Act by billing Medicare for some patient services and procedures performed at rates higher than were warranted.
Based on an investigation conducted by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the United States Attorney’s Office, the United States alleged that, between 2009 and 2014, Rhode Island Dermatology, which provides dermatology, plastic surgery, and cosmetic surgery services, billed Medicare for surgical closure procedures at a higher rate of complexity than was supported by certain patients’ condition or the circumstances of the closure, and which should properly have been classified at a lower billing rate for less complex procedures. The amount that Medicare pays for a given medical or surgical procedure is frequently dependent on the complexity of that procedure. Upcoding, or billing for a level of complexity that is not warranted by a patient’s actual condition and treatment, results in improperly higher payments for care that should have actually been reimbursed by Medicare at a lower rate.
The matter was settled prior to litigation, without an admission of liability or wrongdoing on the part of the practice.
The case was litigated by Assistant U.S. Attorney Zachary A. Cunha.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
President of Ambulance Company Pleads Guilty to Perjury in Connection with False Health Care Claims InvestigationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, JAIME LEONARD SMITH, 35, of Morehead City, North Carolina, pleaded guilty to Perjury.
According to the Criminal Information, SMITH was the president of CCMT, Inc., doing business as Crystal Coast Medical Transport (CCMT). CCMT was a nonemergency ambulance transportation company that operated in Craven and Carteret counties.
In 2012, CCMT and SMITH became the subject of investigation after a member of the public videotaped CCMT employees routinely transporting patients in CCMT ambulances when the patients had the ability to walk or ride in wheelchairs. Medicare and TRICARE generally do not cover nonemergency ambulance transportation services when the patient has the ability to walk or ride in a wheelchair. Additionally, for reimbursement to be covered by Medicare and TRICARE, the ambulance company must obtain an order, known as a Physician’s Certification Statement (PCS), from the patient’s physician indicating that the ambulance trip is medically required.
In October of 2013, the United State Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) issued Civil Investigative Demand (CID) upon CCMT, to the attention of SMITH. The CID required CCMT to produce to the government, “Any and all Physician Certification Statements on which you relied to provide ambulance transport to any beneficiary of a government healthcare program, including but not limited to Medicare, Medicaid, or TRICARE for the time period January 1, 2011 [to] the present.” In November of 2013, SMITH produced records and swore under oath that the records she produced were responsive to the CID.
In fact, the investigation revealed that in many instances, SMITH had altered the PCS forms to include additional markings that were not made by the patients’ physicians. In some instances, PCS forms were fabricated to cover dates of service for which no genuine PCS form existed. In other instances, the PCS forms were altered to include additional markings that were not made by the patient’s physician. For example, some PCS forms were altered to indicate that the ambulance transport was medically necessary, or to reflect that the patient had additional illnesses or medical conditions justifying the ambulance transport.
In no instance did the physicians authorize SMITH or any other agent of CCMT to fabricate or alter PCS forms for their patients.
At sentencing, SMITH faces up to 5 years in prison and 3 years of supervise release. The defendant also faces a fine of up to $250,000 and restitution if ordered by the court.
The investigation of this case was conducted by agents of the United States Department of Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represents the United States.
Pittsburgh Man Sentenced to 4 Years in Prison, Ordered to Pay Restitution for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 48 months imprisonment, followed by eight years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor. The defendant was also ordered to pay $ 11,881.28 in restitution to five victims, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Christopher J. Bailey, 50, of Pittsburgh, Pennsylvania.
According to information presented to the court, Bailey, on or about Dec. 23, 2013, knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General for conducting the investigation that led to the successful prosecution of Bailey.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia Man Arraigned on Robbery and Carjacking ChargesRead the Press Release
PHILADELPHIA - Cory D. Foster, 27, of Philadelphia, Pennsylvania was arraigned today on an Indictment, charging him with three counts of robbery which interferes with interstate commerce, one count of carjacking, and four counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger and Montgomery County District Attorney Risa Vetri Ferman.
The indictment charges that on November 18, 2014, Foster and an accomplice robbed a service station and convenience store in Trevose, Bucks County, Pennsylvania at gunpoint, stealing cash and merchandise worth about $1,000 and cash and a wallet from an employee, before escaping in a getaway car operated by an unknown driver; on December 2, 2014, Foster and an accomplice robbed a service station and convenience store in Plymouth Meeting, Montgomery County, Pennsylvania at gunpoint, stealing about $700 cash and about $2,400 worth of cigarettes and case from an elderly employee, before escaping in a getaway car operated by an unknown driver; and on December 7, 2014, Foster and an accomplice robbed a gas station and convenience store in Phoenixville, Chester County, Pennsylvania at gunpoint, stealing about $984 Pennsylvania Lottery cash, about $790 cash, and more than $4,000 worth of cigarettes and cigars. Foster then smashed a victim employee in the face, breaking his orbital eye socket, before stealing the customer’s car at gun point. Foster and his accomplice then fled the scene, one robber in the customer’s car and the second in a getaway car. The indictment alleges that in early February 2015, the handgun used in these crimes of violence was seized by law enforcement from Foster in the state of Delaware and that on the same date the stolen car was recovered from another person and Foster in Delaware.
If convicted the defendant faces a maximum possible sentence of life imprisonment, including a total mandatory minimum prison sentence of 82 years’ imprisonment consecutive to any other sentence imposed.
The case was investigated by the Federal Bureau of Investigation, Plymouth Township Police Department, Bensalem Township Police Department, Schuylkill Township Police Department, the Delaware State Police, and the Montgomery County District Attorney’s Office. The case will be prosecuted by Special Assistant United States Attorney and Montgomery County Assistant District Attorney Gabriel C. Magee.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Unlicensed Money Transmitter Business Sentenced for Failing to File Currency Transaction Reports and Illegally Sending Money to CubaRead the Press Release
An owner of an unlicensed money transmitter business was sentenced to 30 months in prison, followed by two years of supervised release for failing to file Currency Transaction Reports and illegally sending money to Cuba. The defendant also agreed to forfeit $480,622 in United States currency representing the funds seized in connection with the offense.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), made the announcement.
Karell Cordero, 40, of Hialeah, previously pled guilty to one count of operating an unlicensed money transmitter business, in violation of Title 18, United States Code, Section 1960.
According to court documents, between June 2012 and May 2014, Cordero owned and operated K & Y Multiservices in Hialeah, Florida, where he received euros and exchanged them for U.S. dollars. These transactions often involved sums of tens of thousands of dollars, but Cordero did not submit Currency Transaction Reports (CTRs) or other forms or reports that must be submitted to the Treasury Department. On occasion, Cordero conducted these transactions to exchange money knowing it was derived from unlawful activity. Law enforcement officers monitored two separate meetings where Cordero exchanged 240,000 euros for $326,900 in U.S. currency. Cordero was told that the money was from Mexico and came from drug dealers. Cordero did not file a CTR or any other required report on either occasion.
Another aspect of Cordero's business involved collecting money from various persons in the United States who wanted to send it to persons in Cuba. He used many of the euros he obtained from his money exchange business for this purpose. Cordero used a variety of means to transmit money to the persons for whom it was intended in Cuba, while collecting a fee for his services. Cordero knew that he was prohibited under U .S. law from sending currency from the United States to Cuba.
Cordero handled approximately $800,000 in foreign currency exchanges and transmissions of money to Cuba without filing CTRs or otherwise reporting the money to any governmental regulatory or law enforcement agencies as required by law. In addition, Cordero and his company were not licensed as a money transmitter, money service business, or foreign currency exchange.
Mr. Ferrer commended the investigative efforts of ICE-HSI, IRS-CI, and the DEA. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
Owner of Connecticut Media Agency that Falsely Advertised Mortgage Modification Services is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW GOLDREICH, 46, of East Lyme, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to two years of probation, including three months of home confinement, for producing and disseminating false advertisements for mortgage modification services. Chief Judge Hall also ordered GOLDREICH to pay a $100,000 fine and $75,794 in restitution.
According to court documents and statements made in court, in March 2009, the U.S. Department of the Treasury created the Home Affordable Modification Program (“HAMP”), which consisted of a number of incentives to encourage struggling homeowners and financial institutions to modify existing loans on owner-occupied primary residences in order to help keep these properties out of foreclosure.
Between approximately May 2009 and February 2013, GOLDREICH used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by GOLDREICH. The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications. Many of the advertisements also falsely depicted NMHC as affiliated with the federal government, including through references to government stimulus programs and the use of President Barack Obama’s image. One advertisement that aired in 2010 stated: “Attention homeowners. We know it’s tough out there. And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.” The same advertisement also stated: “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half. Our trained specialists know all the new regulations to get you quick relief. We help thousands of homeowners every day.”
The advertisements included toll-free telephone numbers for mortgage borrowers to call for help modifying their mortgages. In truth, NMHC did not provide mortgage modification services for any homeowners, and operated only as a front. Homeowners who called the toll-free telephone numbers advertised by NMHC were routed to National Media Connection’s clients. The clients, in turn, paid National Media Connection for these “leads.” Under the pretense of helping homeowners modify their mortgages, certain National Media Connection clients then charged the homeowners fees and provided no services whatsoever in return.
As a result of the advertisements, several struggling homeowners across the United States were defrauded by unscrupulous clients of GOLDREICH’s media company, and some are in danger of losing their homes.
On August 13, 2015, GOLDREICH pleaded guilty to one count of false advertising.
This investigation is being conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.
Orange County Sex Offender Sentenced to More Than 20 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, FL – United States District Judge Paul G. Byron today sentenced Ashley Anders Bishop (42) to 23 years and 4 months in federal prison, and a life term of supervised release for possessing and receiving child pornography.
A federal jury convicted Bishop on August 19, 2015. In reaching their decision, the jury made a special finding that certain exhibits depicted children under the age of 12.
According to the testimony presented at trial, on October 6, 2000, in Orange County, Bishop was convicted of attempting to commit lascivious molestation on a child under the age of 12 and was sentenced to a 15-year prison term. After his release, Bishop, a registered sex offender, was arrested on two different occasions, and each time had a cellphone in his possession. Both phones were searched pursuant to state search warrants and found to contain child pornography.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Orange County Department of Corrections. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
Officials to recognize Charleston Police and Firefighters for preventing drug overdoseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, joined by Charleston Police Chief Brent Webster, Charleston Fire Department Captain Mark Strickland, Kanawha-Charleston Health Department Executive Director/Health Officer Dr. Michael Brumage, and other local officials will be recognizing the drug overdose prevention efforts of Charleston Police Department Patrolmen Seth Johnson and Nick Castleman and the Charleston Fire Department at a press conference at Charleston City Hall on Friday, November 6, 2015, at 12:30 p.m.
Patrolmen Johnson and Castleman are the first Charleston Police Officers to use Naloxone, commonly known as Narcan, a medication that can reverse the effects of opioid overdose. The two officers recently responded to an overdose call and upon arrival, they used their training to quickly assess the situation and administer Narcan to stop a heroin overdose. The actions of Patrolmen Johnson and Castleman were largely made possible by the work of the Charleston Fire Department to forge partnerships and conduct overdose prevention training with local law enforcement and first responders.
This event will serve to commend the lifesaving actions of these individuals and acknowledge the commitment of local agencies to have their personnel trained in the use of Narcan as a powerful tool in the fight against drug abuse.
WHO:
- United States Attorney Booth Goodwin
- Charleston Police Chief Brent Webster
- Charleston Fire Department Captain Mark Strickland
- Kanawha-Charleston Health Department Executive Director/Health Officer Dr. Michael Brumage
- Other local officials
WHAT:
- Press conference to recognize the drug overdose prevention efforts of Charleston Police and Firefighters
WHERE:
- Charleston City Hall – Third Floor, A/V Room (adjacent to City Council Chambers)
- 501 Virginia Street, East, Charleston, WV 25301
WHEN:
- Friday, November 6, 2015, at 12:30 p.m.
Newcastle Man Pleads Guilty in Scheme to Defraud United Auburn Indian CommunityRead the Press Release
SACRAMENTO, Calif. — Gregory Scott Baker, 48, of Newcastle, pleaded guilty today to conspiring commit mail and wire fraud, conspiring to launder monetary instruments, and filing a false tax return, United States Attorney Benjamin B. Wagner announced.
In August 2012, Baker, Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, and Darrell Patrick Hinz, 48, of Cameron Park, were charged with conspiring to commit mail and wire fraud and various money laundering charges as part of a scheme to defraud the United Auburn Indian Community (UAIC) of more than $17 million. In April, 2013, the government filed a superseding indictment which additionally charged Baker with filing false tax returns from 2006 through 2009 in connection with the fraud.
According to court documents, in October 2006, the UAIC hired Volen, a developer, to finish construction on four tribal buildings – a school, a community center, and administrative offices – on UAIC-owned property in Auburn. Volen submitted false and inflated invoices to the UAIC knowing that Baker and Hinz, both UAIC employees, would approve the fraudulent invoices based on an agreement the three men had reached earlier. Volen supported his invoices with inflated cost proposals from his general contractor’s company, Sequoia Pacific Builders (SPB), and, at times, inflated invoices from various subcontractors. At Volen’s direction, over 160 SPB cost proposals were fraudulently inflated.
Baker was the UAIC tribal administrator, and his duties included overseeing the Indian Hills Office Project. Hinz was a contract employee hired by the UAIC to manage the construction at the Indian Hills Office Project site. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would pay for work done on the Project. The indictment alleges that during the scheme to defraud the tribe, Baker engaged in conduct to insure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. He was aware of what Volen was doing and was later paid by Volen for his participation in the scheme. According to court documents, a total of over $17 million was ultimately stolen from the UAIC, and Baker received over $1.4 million for his participation.
With regard to the tax offense, according to court documents, Baker filed tax returns contained a Schedule C in which Baker failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of between $250,000 and $550,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent and Kevin C. Khasigian are prosecuting the case.
Hinz is scheduled for trial in Sacramento on February 29, 2016. The charges against him are only allegations; Hinz is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Baker is scheduled to be sentenced by United States District Judge Troy L. Nunley on March 17, 2016. Volen previously pleaded guilty to similar charges in this case on June 12, 2014. Chris W. Eatough, the owner of Sequoia Pacific Builders, previously pleaded guilty to a felony related to this case on June 20, 2013, in case number 2:13-cr-214 TLN. Volen and Eatough are scheduled to be sentence by Judge Nunley on April 28, 2016 and March 17, 2016, respectively. Both Baker and Volen have agreed to pay at least $17 million in restitution to the United Auburn Indian Community.
Baker faces a maximum sentence of 20 years in prison and a $250,000 fine, or twice the value of the gross gain or loss for conspiring to commit mail and wire fraud. The maximum statutory penalty for conspiring to launder monetary instruments is 20 years in prison and a $500,000 fine or twice the value of the laundered money Any sentence imposed in this case, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.