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5 November 2015
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the November 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Elizer Bailon. Reentry of Removed Alien. Bailon, 36, is charged with having returned to the United States unlawfully after being deported in December 2011 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Gabriela Rodriguez De Rangel. Possession of Methamphetamine with Intent to Distribute. Rodriguez De Rangel, 40, is charged with possession of methamphetamine with the intent to distribute. If convicted, the statutory maximum penalty is not more than 20 years in prison and a $1,000,000 fine. In addition, Rodriguez De Rangel would face the forfeiture of criminal proceeds and facilitating property, including a .22 caliber pistol. The Drug Enforcement Administration is the investigating agency.
Fernando Gonzalez-Leyva. Reentry of Removed Alien. Gonzalez-Leyva, 45, is charged with having returned to the United States unlawfully after being deported in January 2011 near El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Luis Manuel Leyva. Reentry of Removed Alien. Leyva, 35, is charged with having returned to the United States unlawfully after being deported in September 2009 near El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Abraham Martinez. Possession of an Unregistered Destructive Device. Martinez, 36, of Tulsa, is charged with possession of an unregistered destructive device, specifically, a molotov cocktail. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Jose Bruno Piedra-Ayvar, Jorge Antonio Piedra-Ayvar, Carlos De Los Santos and Adalid Valdez-Nava. Possession of Methamphetamine with Intent to Distribute. Jose Piedra-Ayvar, 26, Jorge Piedra-Ayvar, 22, De Los Santos, 19, and Valdez-Nava, 39, all of Tulsa, are charged with possession with intent to distribute 500 grams or more of methamphetamine. If convicted, the statutory maximum penalty is not less than 10 years in prison and up to life in prison and a fine of $10,000,000. The defendants also face forfeiture of facilitating property and proceeds, including entry of a money judgment of at least $1,000,000. The Drug Enforcement Administration is the investigating agency.
Cody Jacob Wheeler. Felon in Possession of a Firearm and Ammunition. Wheeler, 30, is charged with possession of a .25 caliber pistol and ammunition after a prior felony conviction. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearm and Explosives is the investigating agency.
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Federal Detainee Charged with Solicitation to Commit Crimes of ViolenceRead the Press Release
CLEVELAND – A Pittsburgh man currently being detained in federal custody in Ohio has been indicted by a federal grand jury in Cleveland, Ohio, on charges of solicitation to commit crimes of violence, United States Attorney David J. Hickton of the Western District of Pennsylvania and United States Attorney Steven M. Dettelbach of the Northern District of Ohio announced today.
The two-count indictment, returned on Nov. 4, named Price Montgomery, 35, formerly of Pittsburgh, Pa., as the sole defendant.
According to the indictment, from April 2015 until August 2015, in the Northern District of Ohio, Montgomery solicited or endeavored to persuade two persons known to the grand jury as “P1” and “B” to kill a person known to the grand jury as IV-1 (Intended Victim 1). Additionally, from April 2015 until August 2015, in the Northern District of Ohio, Montgomery solicited or endeavored to persuade “P1” to kill a person known to the grand jury as IV-2 (Intended Victim 2).
According to a criminal complaint filed on Oct. 30 in the Northern District of Ohio, Montgomery solicited the murder of IV-1 because Montgomery believed that IV-1 was cooperating with law enforcement in a money laundering investigation against him. In addition, the complaint states that Montgomery solicited the murder of IV-2 in retaliation for her suspected cooperation or testimony against him.
The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $250,000 or both at each of the two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Montgomery is currently incarcerated at the Northeast Ohio Correctional Center in Youngstown, Ohio, on federal drug trafficking and firearms charges out of the Western District of Pennsylvania.
Assistant U.S. Attorney Shaun E. Sweeney from the Western District of Pennsylvania has been specially designated to handle this case for the government.
The Western Pennsylvania offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation and the U.S. Marshals Service, along with the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of 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.
Former Kansas Man One of Four Charged with Providing Material Support to Al Qaeda in the Arabian PeninsulaRead the Press Release
WASHINGTON – A four-count indictment was unsealed today in the U.S. District Court of the Northern District of Ohio charging four men with conspiring to travel to Yemen to provide thousands of dollars to Anwar Al-Alwaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. One of the men used to live in Kansas.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio, U.S. Attorney Barry R. Grissom of the District of Kansas and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Yahya Farooq Mohammad, 37; Ibrahim Zubair Mohammad, 36; Asif Ahmed Salim, 35; and Sultane Room Salim, 40, were each indicted on one count of conspiracy to provide and conceal material support and resources to terrorists, one count of providing material support and resources to terrorists and one count of conspiracy to obstruct justice. Farooq Mohammad and Ibrahim Mohammad both face an additional count of conspiracy to commit bank fraud.
“According to the allegations in the indictment, Farooq Mohammad, Ibrahim Mohammad, Asif Salim and Sultane Salim conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“The charges in this case outline a plan to send thousands of dollars to a known terrorist, a plan which came to fruition shortly before one of the most notorious attempted attacks in recent memory – an attack claimed by that same terrorist,” said U.S. Attorney Dettelbach. “This indictment is a testament to the perseverance of those who stand watch over our nation and is a clear message to those who support terrorism – we will not forget and you will face justice.”
“In today’s world, Kansas is not far removed from the battlefields of the war on terror,” said U.S. Attorney Grissom. “We will do everything in our power to prevent funding and material support from finding its way from the heart of America to terrorists in foreign lands.”
“These individuals conspired and then acted on their radical beliefs by providing support to a known terrorist organization,” said Special Agent in Charge Anthony. “The identification of their conspiracy and the subsequent investigation demonstrate how members of the FBI’s Joint Terrorism Task Force continue to work with our international law enforcement partners to mitigate terrorist’s threats in order to protect our citizens.”
Farooq Mohammad was an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. In or around March 2008, he married a U.S. citizen. His brother, Ibrahim Mohammad, was also an Indian citizen who studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim was a U.S. citizen who studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago-area from 2006 through 2012, until he moved to the Columbus-area.
According to the indictment, from January 2005 through January 2012, the four defendants conspired to provide money, equipment and other assistance to Anwar Al-Awlaki. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, was designated a global terrorist in 2010. The indictment also alleges that the defendants’ support was to be used in furtherance of violent jihad against the U.S. and U.S. military in Iraq, Afghanistan and throughout the world.
The defendants made various financial transactions in 2008 and 2009, and communicated about raising funds for a trip to the Middle East. Allegations in the indictment charge that Farooq Mohammad and Ibrahim Mohammad obtained money by opening credit cards and withdrawing money with no intention of repaying the amounts obtained from the financial institutions.
The indictment further alleges that on July 22, 2009, Farooq Mohammad travelled with two other people to Yemen to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki.
An indictment is only a charge 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.
If convicted, the defendants’ sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos Georgalis of the Northern District of Ohio, Assistant U.S. Attorney David Smith of the District of Kansas and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section.
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Effingham, Illinois, Doctor Sentenced for Illegal Dispensation of Controlled SubstancesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Naeem Mahmood Kohli, 61, a medical doctor from Effingham, Illinois, was sentenced to 24 months in federal prison and ordered to pay $10,500 in fines as well as $700 in special assessments, to be followed by 3 years of supervised release after incarceration. Kohli was also ordered to forfeit to the United States his office building located at 500 North Maple, as well as $34,419.72, as a result of his drug convictions.
United States Attorney Wigginton stated, "The evidence heard by the jury and judge in this case established that Dr. Kohli abandoned his role as a medical professional for a price. In a community, and a nation, where medical doctors are held up as the trusted gatekeepers, Kohli, for a price, sold the keys to the pharmacy to patients with drug addictions. My office will continue to seek out those willing to peddle their professional integrity for financial gain. The abuse of prescription drugs is at an epidemic level in our communities and those responsible for putting these drugs on the street will be found and prosecuted."
Kohli, who operated the Kohli Neurology and Sleep Center, located at 500 North Maple in Effingham, Illinois, was indicted by a Federal Grand Jury in March of 2014 and went to trial in United States District Court during January 2015. On January 27, 2015, after a 17-day jury trial, Kohli was found guilty on seven counts of illegally dispensing Schedule II Controlled Substances to patients who suffered from drug addiction. The Benton, Illinois, jury concluded that Kohli illegally dispensed Oxycodone and Hydromorphone, both highly addictive controlled substances, outside the usual course of the medical practice and not for a legitimate medical purpose.
The prosecution arose from a law enforcement investigation titled Operation Doctor Feelgood. The joint law enforcement investigation focused on "pill mills" where doctors provided prescription drugs to addicts for a fee.
The successful prosecution is the result of an investigation conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigation; the Illinois State Police, Medicaid Fraud Control Bureau; the Federal Bureau of Investigation; and the Effingham Police Department. The prosecution was handled by Assistant United States Attorneys Ranley R. Killian and Michael J. Quinley.
East Haddam Man Involved in Fraud Scheme Sentenced to 20 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON TORRANCE, 44, of East Haddam, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 20 months of imprisonment, followed by three years of supervised release, for engaging in a fraud scheme.
According to court documents and statements made in court, between approximately March 2008 and August 2012, TORRANCE and Adam Meyers devised a scheme to defraud their employers by arranging for payment on goods that never shipped and instead diverting those payments to themselves. TORRANCE worked out of the New Haven branch of a New Jersey-based electrical and industrial supply company (“Distributor-1”), and Meyers was a project manager for a New Britain-based electrical subcontractor (“Contractor”) that frequently purchased supplies from Distributor-1. In addition, Daniel Wall operated Bob Wall and Associates, a Cheshire-based distributor of electrical and other related equipment.
As part of the scheme, Meyers identified to TORRANCE projects on which he believed the profit margin for Contractor would permit them to divert excess profits to themselves without Contractor becoming aware. Meyers would submit a purchase order for materials to TORRANCE. TORRANCE then submitted a purchase order to Wall for the goods listed on the purchase order sent by Meyers. Wall then submitted an invoice to Distributor-1 for the materials listed on the purchase order, and Distributor-1 paid the invoice by mailing a check to Bob Wall and Associates. Distributor-1 then invoiced Contractor for the goods that were on the purchase order and Contractor issued a check to Distributor-1. Wall then hand-delivered a business check to TORRANCE for approximately 90 percent of the money that had been paid by Distributor-1 to Bob Wall and Associates, and Wall retained the remaining 10 percent as his share of the proceeds from the scheme. TORRANCE then paid out a portion of the proceeds of the scheme to Meyers.
At no time did any product on the purchase orders actually ship to the customer.
The victim companies lost more than $600,000 as a result of this scheme.
On February 23, 2015, TORRANCE and Meyers each pleaded guilty to one count of conspiracy to commit mail fraud. On July 15, 2015, Wall pleaded guilty to one count of misprision of a felony. On October 30, 2015, Meyers, 44, of Southbury, was sentenced to 18 months of imprisonment, followed by three years of supervised release, and Wall, 59, of Bridgeport, was sentenced to three years of probation, the first 12 months of which he must serve in home confinement.
Restitution will be determined after additional court proceedings.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys David E. Novick and William J. Nardini.
Dorchester Real-Estate Broker Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
BOSTON – A real-estate broker was sentenced today for conspiracy to defraud mortgage lenders of $4 million relating to more than two-dozen properties in Dorchester.
Joan Ruggiero, 78, was sentenced by U.S. District Court Judge William G. Young to nine months in prison and nine months of home detention, and was ordered to pay a fine of $100,000 and restitution of $4.1 million to the lenders. In October 2013, Ruggiero pleaded guilty to one count of conspiracy.
Ruggiero, who owned a real-estate business in Dorchester, and her co-conspirator identified buildings for sale in Dorchester that they could purchase and then convert into individual condominium units. After this conversion, Ruggiero and the co-conspirator recruited individuals to pose as purchasers of the condominiums, promising them that they were making a good investment. Ruggiero, who held herself out as a broker, and her co-conspirator actually owned the units. After she recruited the “buyers,” Ruggiero arranged for the submission of mortgage applications to various lenders, which contained false information about the “buyers’” income, assets, and intentions to live in the properties. The scheme also involved creating entirely fictitious documents, such as phony leases, bank documents, and verifications of employment. Relying on the false information provided, the lenders approved the mortgages and provided the required funds at the property closings. Ruggiero and her co-conspirator took those funds – over $4 million – and deposited them into their own accounts.
United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
District Man Sentenced to Six Years in Prison for Theft at Georgetown University Student's ApartmentRead the Press Release
WASHINGTON - Antoine Gibson, 36, of Washington, D.C., has been sentenced to six years in prison for burglarizing an apartment on the Georgetown University campus while a student was asleep inside, U.S. Attorney Channing D. Phillips announced today.
Gibson pled guilty in July 2015, in the Superior Court of the District of Columbia, to first-degree burglary as well as a violation of the Bail Reform Act. He was sentenced on Nov. 4, 2015, by the Honorable Patricia A. Broderick. Following his prison term, Gibson will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 6, 2015, at about 8 p.m., Gibson entered the Henle Village apartment complex on the Georgetown University campus. He went to the fourth floor and entered the victims’ apartment, which was occupied at the time by a sleeping student. Gibson stole a laptop from the living room before heading to the upstairs bedrooms.
The sleeping student awoke to find Gibson, a stranger, standing in the hallway, and confronted him. Gibson denied doing anything illegal and left. The student called the campus police, who found Gibson a short time later within blocks of the main campus gate with the laptop in his backpack. Gibson later failed to appear for the first status hearing in the case in Superior Court. He was later arrested on a bench warrant executed by the U.S. Marshals Service.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers of the Georgetown University Department of Public Safety, as well as the crime scene officers and detectives and officers of the Metropolitan Police Department’s Second District. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including David Foster, La June Thames, and Katina Adams-Washington of the Victim/Witness Assistance Unit; Paralegal Specialist Tiffany Fogle, and Litigation Technology Assistant Aneela Bhatia. Finally, he praised the efforts of Assistant U.S. Attorney Katherine Earnest, who investigated and prosecuted the case.
Department of Justice Announces 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
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.
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.
For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
Department of Justice Announces 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
PORTLAND, Ore. – 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 District of Oregon, the Confederated Tribes of the Umatilla Indian Reservation (CTUIR) have been selected to participate in this initial phase of the TAP.
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 Indian Reservation 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.”
“Providing the Confederated Tribes of the Umatilla Indian Reservation of Oregon access to federal criminal information databases through the Tribal Access Program for National Crime Information will address a longstanding tribal request for access to national databases and will assist tribal law enforcement in protecting and keeping tribal communities safe,” said Acting U.S. Attorney Billy J. Williams.
“The Tribal Access Program will be critical in protecting native women on the Umatilla Indian Reservation by ensuring all tribal domestic violence protection orders are entered into federal criminal databases. Currently, the CTUIR does not have this ability. My hope is that this will prove to be a program that will eventually be available to all tribes and help protect tribal communities throughout the nation. It has been something tribes have long requested and I'm happy the CTUIR has been chosen to be among the pilot tribes.” Brent Leonhard, CTUIR Tribal Attorney, Office of Legal Counsel.
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 mug shots, 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.
For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
Department of Justice Announces 10 Tribes to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
WASHINGTON – 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 Washington, the Tulalip and Suquamish Tribes have been selected to participate in this initial phase of the TAP.
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.”
“I am pleased that the Tulalip and Suquamish Tribes will be on the leading edge of this new data sharing effort,” said U.S. Attorney Annette L. Hayes. “As we discovered after the shooting last year at Marysville-Pilchuck High School, gaps in data sharing allowed a prohibited person to purchase a handgun and possess it at his home. That gun was used in the school shooting with the tragic consequences that we all now know. This pilot program will improve the ability of tribal law enforcement to meet their public safety mission and will improve the reliability of background check information to keep those who do not have a right to possess firearms from obtaining them.”
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. For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
Delaware County Man Charged with Running Second Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Mohamed Mansaray, 39, of Springfield, Pennsylvania, was charged by indictment, unsealed today, in an identity theft and tax fraud scheme, announced United States Attorney Zane David Memeger. The indictment includes 10 counts of wire fraud, nine counts of aggravated identity theft, and 10 counts of aiding or assisting in preparation or filing of false income tax returns. Mansaray was arrested this morning.
According to the indictment, defendant Mansaray defrauded the Internal Revenue Service by preparing and filing fictitious federal income tax returns that used the names and Social Security numbers of children as false dependents. The indictment alleges that Mansaray charged clients $800 to $1,000 to falsely include a dependent on their income tax return. By falsely adding dependents to the returns, Mansaray wrongfully claimed for clients a tax exemption for each false dependent, the child tax credit, the child and dependent care credit, and the earned income tax credit.
On July 2, 2014, Mansaray pleaded guilty to an information that charged him with conspiracy and 13 counts of aiding or assisting in preparation or filing of false income tax returns in a similar scheme. Mansaray admitted falsifying federal income tax returns for clients by fraudulently adding dependents to returns for the tax years 2008 through 2012. He is awaiting sentencing for those charges.
If convicted, the defendant faces a possible advisory sentencing guideline range of 51 to 57 months in prison for the new charges, including a mandatory minimum terms of 24 months in prison for aggravated identity theft, possible fines, up to three years of supervised release, and a $3,000 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
An indictment is an accusation. A defendant is presume innocent unless and until proven guilty.
Defendant Sentenced in Jury Tampering CaseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Jonathan Lawrence Oneal, 42, of Monroeville, was sentenced to three years of probation for attempted jury tampering. Oneal was sentenced by United States District Callie V.S. Granade, and in addition to the prison term, sentenced Oneal to pay a fine of $3,000.
Oneal pled guilty to corruptly endeavoring to influence, obstruct and impede the due administration of justice in the trial of United States v. Hastie. According to the plea agreement filed in the case, Oneal received a telephone call from one of the defendants in that trial and was asked if he knew any of the individuals identified as potential jurors. Oneal did, and agreed to pass a message to the potential jurors through the potential juror’s wife. Oneal contacted the wife of the potential juror at least twice in an attempt to influence the trial.
The case was investigated by the Federal Bureau of Investigation and the Monroe County Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Sean P. Costello.
Darrell L. Duncan Sentenced for Being A Felon in PossessionRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Darrell L. Duncan, age 34, of South Bend, Indiana, was sentenced Wednesday, November 4, 2015, in federal court by Judge Robert L. Miller, Jr. after his guilty plea of being a felon in possession of a firearm.
Duncan was sentenced to 15 years’ imprisonment and 3 years supervised release.
According to documents in the case, May 14, 2015, the United States Marshals Service along with Task Force Agents and other officers from the South Bend Police Department attempted to apprehend Duncan for outstanding warrants. During the operation, Duncan tried to back into a police vehicle and fled on foot. Officers located a .25 caliber firearm that was loaded with one round in the chamber and seven rounds of ammunition in the magazine that was dropped by Duncan during the pursuit. Duncan also dropped a bag containing approximately 3.1 grams of methamphetamine, approximately 24.4 grams of marijuana and 21 oxycodone pills. Also located in Duncan’s vehicle was a backpack containing 22 rounds of .25 caliber ammunition as well as 2.7 grams of marijuana and additional rock like substances. Duncan’s criminal history qualifies under the armed career criminal act for enhanced sentencing.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the South Bend Police Department. The case was handled by the Assistant United States Attorney Donald J. Schmid.
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Child Pornography Charges Filed Against River Ridge ManRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CRAIG QUINTAL, age 40, of River Ridge, was indicted today for crimes involving the sexual exploitation of children.
According to today’s indictment, beginning at an unknown time to on or about July 15, 2015, QUINTAL knowingly accessed child pornography with the intent to view images depicting the sexual victimization of minors. The indictment alleges that QUINTAL accessed visual depictions of minors under the age of twelve years-old engaging in sexually explicit conduct.
If convicted, QUINTAL faces a penalty of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations and the Louisiana Attorney General’s Office, High Tech Crime Unit in investigating this matter. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Cherokee Nation of Oklahoma to Participate in Initial Phase of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
TULSA, Okla. – 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 Northern District of Oklahoma the Cherokee Nation of Oklahoma has been selected to participate in this initial phase of the TAP.
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.”
“The TAP program will provide Cherokee Nation of Oklahoma access to and allow information to be shared with federal crime databases,” said United States Attorney for the Northern District of Oklahoma Danny C. Williams Sr. “The new program will support Cherokee Nation in analyzing their needs for national crime information, help provide appropriate solutions, and provide specialized training and assistance.”
TAP will 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.
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.
For more information about the Department of the Interior’s Bureau of Indian Affairs, visit: www.indianaffairs.gov/
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Chaka Fattah Jr. Convicted of Fraud and Tax ChargesRead the Press Release
A federal jury today convicted Chaka Fattah Jr., 32, of Philadelphia, of 22 of 23 counts in connection with a scheme to defraud banks, the Internal Revenue Service (IRS) and the Philadelphia School District of hundreds of thousands of dollars. Senior U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania scheduled a sentencing hearing for Feb. 3, 2015. The defendant faces a substantial term of imprisonment, restitution to the IRS, fines, a special assessment and supervised release.
Between 2005 and 2012, Fattah Jr.: made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration (SBA) to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
The evidence at trial showed that Fattah Jr. obtained numerous business lines of credit through false and fraudulent statements to local banks and used the funds primarily for personal expenses – including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees and personal credit card expenses – rather than business expenses, as the loan terms required. These false statements involved fictitious earnings information that Fattah Jr. supplied for entrepreneurial companies which he claimed that he operated, including 259 Strategies LLC (259 Strategies) and Chaka Fattah Jr. & Associates. Fattah Jr. claimed that 259 Strategies provided educational consulting, diversity consulting and audit services, technical assistance, community relations and organizational development services to a select group of clients. He claimed that Chaka Fattah Jr. & Associates performed research and consulting concerning the development of computer centers.
In 2011, Fattah Jr. received a loan from United Bank for $50,000 intended for “working capital to support business operations.” Instead, he used the funds to make car payments, to pay down more than $15,000 in personal credit card debt and to pay more than $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
Fattah Jr. defaulted on several lines of credit and provided false information to two banks, to the SBA, which had insured the bank loans, and to an SBA investigator in order to attempt to settle the debts for less than what was owed. Fattah Jr. falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. In fact, during 2010, 259 Strategies was intact and, through this company, Fattah Jr. was earning between $6,250 and approximately $37,500 per month.
Fattah Jr. also stole funds supplied by the federal government to the Philadelphia School District, while acting as the chief operating officer of a Philadelphia company that provided educational services to “at risk” and other students through contracts with the school district. Fattah Jr. provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided and concealed the theft of the funds from the school district.
For tax years 2005, 2006 and 2008, Fattah Jr. filed false federal income tax returns and failed to pay federal income tax on a timely basis of approximately $51,141 on more than $150,000 in reported income during 2010.
The case was investigated by the FBI, IRS-Criminal Investigation and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray and Trial Attorney Eric Gibson of the Criminal Division’s Public Integrity Section.
Chaka Fattah Jr. Convicted of Fraud and Tax ChargesRead the Press Release
PHILADELPHIA – A federal jury today convicted Chaka Fattah, Jr., 32, of Philadelphia, of 22 of 23 counts in connection with a scheme to defraud banks, the Internal Revenue Service, and the Philadelphia School District of hundreds of thousands of dollars. U.S. District Court Judge Harvey Bartle III scheduled a sentencing hearing for February 2, 2015. The defendant faces a substantial term of imprisonment, restitution to the IRS, fines, a special assessment, and supervised release.
Between 2005 and 2012, Fattah, Jr. made false statements to banks to obtain loans; made false statements to banks and the Small Business Administration to settle loans for less than what was owed; filed false federal income tax returns; failed to pay federal taxes; and stole from the Philadelphia School District, which had received federal funds for its operations.
Fattah, Jr., obtained numerous business lines of credit through false and fraudulent statements to local banks and used the funds primarily for personal expenses - including car payments, gambling debts, restaurant and club expenses, utilities, clothing, electronics, retail purchases, charitable donations, jewelry, legal fees, and personal credit card expenses - rather than business expenses, as the loan terms required. These false statements involved fictitious earnings information that Fattah, Jr., supplied for entrepreneurial companies which Fattah claimed he operated, including 259 Strategies, LLC (“259 Strategies”) and Chaka Fattah, Jr. & Associates. Fattah, Jr., claimed that 259 Strategies provided educational consulting, diversity consulting & audit services, technical assistance, and community relations, and organizational development services to a select group of clients. He claimed that Chaka Fattah, Jr. & Associates performed research and consulting concerning the development of computer centers.
In 2011, Fattah, Jr., received a loan from United Bank for $50,000 intended for "working capital to support business operations." Instead, he used the funds to make car payments, to pay down over $15,000 in personal credit card debt, and to pay in excess of $33,000 in gambling debts at area casinos. The charges total approximately $206,000 in bank loans received through false misrepresentations or fraud.
Fattah, Jr., defaulted on several lines of credit and provided false information to two banks, to the United States Small Business Administration, which had insured the bank loans, and to a Small Business Administration investigator, to attempt to settle the debts for less than what was owed. Fattah, Jr., falsely claimed that 259 Strategies was out of business at the time he was attempting to settle his debts in 2010, and that he was earning only $2,500 per month. In fact, during 2010, Fattah, Jr.’s 259 Strategies was intact and, through this company, he was earning between $6,250 per month and approximately $37,500 per month.
Fattah, Jr., also stole funds supplied by the federal government to the Philadelphia School District, while acting as Chief Operating Officer of a Philadelphia company which provided educational services to "at risk" and other students through contracts with the school district. Fattah, Jr. provided false expense information and inflated salary figures for teachers and administrative staff on budgets submitted to the school district, which made payments consistent with the budgets provided and concealed the theft of the funds from the school district.
For tax years 2005, 2006, and 2008 Fattah, Jr., filed false federal income tax returns and he failed to timely pay federal income tax of approximately $51,141 on reported income in excess of $150,000 during 2010.
The case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Education, with the cooperation of the Philadelphia School District’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania and Trial Attorney Eric Gibson of the Criminal Division’s Public Integrity Section.
Caseyville Man Sentenced for Stealing Funds from Railroad Retirement BoardRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Dennis Harold French, 53, of Caseyville, Illinois, was sentenced following his guilty plea to charges that he stole disability benefits from the U.S. Railroad Retirement Board. The United States District Court in East Saint Louis sentenced French to three years of probation. The court also ordered him to pay restitution of $82,763.47 to the U.S. Railroad Retirement Board and a special assessment of $100.
At his plea, French admitted that from May 2009 through June 2012, French fraudulently obtained benefits from U.S. Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive occupational disability benefits.
The case was investigated by agents of the U.S. Railroad Retirement Board, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board=s Office of Inspector General by calling 1.800.772.4258 or by e-mailing a complaint or information to: [email protected].
California Man Sentenced for Sex Trafficking in BillingsRead the Press Release
BILLINGS – Taj Tesfaye Hayes, 39, of Oceanside, California, was sentenced today in Billings federal court to prostitution-related racketeering charges. On July 31, Hayes pleaded guilty to one count of interstate travel in aid of racketeering. U.S. District Court Judge Susan Watters Sentenced Hayes to 18 months incarceration and 2 years supervised release.
In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have produced evidence that Hayes traveled in interstate commerce with the intent to promote, manage, establish, carry on or facilitate prostitution. Specifically, the government was prepared to prove that on February 20, 2015, Hayes rented a car in Oceanside, California. On March 25, Hayes drove the rental car to Las Vegas and then to Salt Lake City with a woman. While in Salt Lake City on the night of March 26, Hayes and the woman posted advertisements for commercial sex with the woman on www.backpage.com, an online classified ad site. On March 27, 2015, Hayes drove with the woman to Billings. They again posted advertisements on www.backpage.com advertising commercial sex with the woman.
An undercover FBI agent responded to the advertisement. The agent negotiated a price and arranged to meet the woman at the Crowne Plaza hotel in Billings. Agents met the woman and Hayes at the hotel and both were questioned. Both Hayes and the woman denied knowing one another, despite evidence to the contrary, including luggage containing male and female attire in the woman’s hotel room, two baseball caps in Hayes’ backpack that had been worn by the woman in the backpage.com ads, and a debit card issued in the woman’s name tucked into the hat Hayes was wearing. One of the Agents called the number listed in the backpage.com ad, and it rang to a phone taken from Hayes.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Federal Bureau of Investigation and the Montana Division of Criminal Investigation as part of an operation targeting sex trafficking in the Billings area.
California Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Yuba City, California, 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, California, Police Department.
Nathan Penner, 25, pleaded guilty today before U.S. District Judge Troy L. Nunley of the Eastern District of California to one count of production of child pornography. The sentencing hearing is set for Jan. 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.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Business Owner Pleads Guilty After Customers' Information is Stolen in Bank Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former business owner in Sparta, Mo., pleaded guilty in federal court today to his role in allowing his customers’ information to be stolen and used to promote a bank fraud scheme that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Mo., and elsewhere.
James Erin Guerin, also known as “Shorty,” 41, of Tulsa, Okla., formerly of Sparta, pleaded guilty before U.S. Magistrate Judge David P. Rush to being an accessory after the fact to aggravated identity theft.
Guerin was the owner of Rogersville Septic Services, LLC.
Co-defendant Phillip Daren Shockey, 50, of Crawford, Ark., was released from federal custody in Arkansas on July 31, 2013. Guerin paid Shockey’s $5,000 bond and Shockey was mandated to live with Guerin in Sparta. Shockey, who had been in federal custody in Arkansas for wire fraud, began to create fictitious financial documents using bank accounts and routing numbers of legitimate customers of Guerin’s plumbing business.
Shockey and those working at his direction passed and attempted to pass approximately 51 fraudulent checks for a loss of at least $159,842.
In August and September 2013, Guerin became aware that Shockey had taken the bank account and routing numbers from his plumbing business customers and was using them to produce fictitious financial documents such as bogus checks drawn upon the customers’ bank accounts. After learning of Shockey’s use of his customers’ bank accounts, Guerin continued to provide comfort and assistance to Shockey. Shockey was given sanctuary at Guerin’s residence to continue his illegal operation.
Shockey pleaded guilty on Jan. 14, 2015. Shockey admitted that he was the leader of the conspiracy to defraud more than a dozen banks from July 31, 2013, to Feb. 28, 2014, by passing counterfeited and forged checks with fake identification documents. At least 12 co-conspirators stole mail, printed counterfeit checks, passed counterfeit checks with fake identification and opened at least five fictitious businesses for the sole purpose of concealing the deposit and subsequent withdrawal of counterfeit checks.
Shockey recruited co-conspirators to steal mail and act as “check runners” who used false identity documents in order to cash fraudulent checks drawn upon the accounts of bank customers. Shockey possessed computers, printers, scanners, cell phones, thumb drives, stolen mail and software in order to produce fraudulent identification and checks for his co-conspirators. Shockey also used false identifications of the banks’ customers and others in order to pass and attempt to pass fraudulent checks.
Guerin is the final defendant to plead guilty in this case. Michael Anthony Spears, 36, of Fort Smith, Ark., was sentenced to seven years in federal prison without parole. Donald Allen Spears, 34, of Columbia, Mo., was sentenced to two years and three months in federal prison without parole. Laura Goines, 32, of Tulsa, was sentenced to time served. Amanda Brook Roberts, 30, of Tulsa, also has pleaded guilty and awaits sentencing.
Under federal statutes, Guerin is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Secret Service Financial Crimes Task Force, the U.S. Postal Service – Criminal Investigations, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Tulsa, Okla., Police Department, the Jasper County, Mo., Sheriff’s Office, the Webster County, Mo., Sheriff’s Office, the Greene County, Mo., Sheriff’s Office, the Columbia, Mo., Police Department, the Blue Springs, Mo., Police Department, the Monett, Mo., Police Department, the Pierce City, Mo., Police Department, the St. Clair County, Mo., Sheriff’s Department, the Rolla, Mo., Police Department and the Catoosa, Okla., Police Department.
Buffalo Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Timothy W. Marlnee, 58, of Buffalo, NY, who was convicted of possession of child pornography following a previous state conviction, was sentenced to 200 months in prison and 10 years of supervised release by U.S. Senior District Judge Richard J. Arcara.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on November 13, 2013, law enforcement officers searched the defendant’s residence on Chippewa St. in Buffalo. Officers recovered a laptop computer being used by Marlnee. A subsequent forensic examination determined that the computer contained 952 images of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contained depictions of violence.
Marlnee is a registered sex offender as a result of state convictions in 1985 and 1993 for statutory rape.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, which includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.Buffalo Brothers Sentenced for Food Stamp FraudRead 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 Bandar Alsaidi, 28, and his brother, Talal Alsaidi, 31, both of Buffalo, who were convicted of unauthorized use of food stamp benefits, were sentenced by U.S. District Judge Richard J. Arcara. Bandar Alsaidi was sentenced to 12 months in prison. Talal Alsaidi was sentenced to two years of probation with five months of home detention. Both defendants were ordered to make restitution to the U.S. Department of Agriculture (USDA) in the amount of $147,658.28 for a total of 295,316.56.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that the Alsaidi brothers participated in the operation of the business known as Big Boys Food Market located at 1129 East Ferry Street in Buffalo. On November 18, 2011, Bandar Alsaidi signed an application to accept food stamps as the sole proprietor of Big Boys. The application was authorized on January 18, 2012. With this approval, retailers are prohibited from exchanging cash for food stamps.
Between April 2012 and May 2013, the defendants, and others, knowingly purchased food stamp benefits for less than their full value for cash from eligible beneficiaries. The defendants, and others, engaged in approximately $671,174 of legitimate and illegitimate transactions for the time period in question. Of this total value, each defendant knew that approximately $147,658.28 of their acquisition or possession of food stamp benefits was unauthorized.
The sentencing is the result of an investigation by the USDA, Office of Inspector General under the direction of Special Agent in Charge William G. Squires Jr. and Immigration and Customs Enforcement, Homeland Security Investigation, under the direction of Special Agent in Charge James C. Spero.
Bozeman Man Convicted of Illegal Possession of an Un-Registered Machine GunRead the Press Release
BILLINGS – Following a three day federal trial, a Montana jury found William Krisstofer Wolf, 53, of Bozeman, guilty on two counts: Illegal Possession of a Machine Gun and Possession of a Firearm not Registered in the National Firearms Registration and Transfer Record. Judge Susan Watters presided over the trial. Sentencing is set for March 3, 2016.
At trial, the government introduced evidence that Wolf had repeatedly expressed an intent to acquire and possess dangerous weapons, including flamethrowers, incendiary ammunition, and napalm, and ultimately did acquire the fully automatic sawed-off shotgun that lead to his arrest.
In his weekly online radio show, named “The Montana Republic,” Wolf discussed his anti-government views and his plans to overthrow local, state, and federal governments by force. He advocated the affirmative targeting of law enforcement officers and stated on numerous occasions that he considered agents of local, state, and federal government to be the enemies. After holding a “committee of safety meeting” on January 29, 2015, Wolf stated in his “extreme movement…my preferred method would be to drop 500 pounds of napalm through the roof of the courthouse and burn it to the ground and roast some marshmallows on it.” He also told people at the meeting, that “my great fatal flaw is I’m gonna’ tell you what I’m going to do to you, and the bottom line is, I do it to you.”
In pursuance of his aims, Wolf stated his intent to acquire the “most devastating weapons he could use” including machine guns and flamethrowers. The FBI arranged for Wolf to meet a Confidential Informant (“CI”), who posed as a like-minded individual in order to determine Wolf’s true intentions. Over time, Wolf communicated to the CI his desire to obtain or build a “blowtorch gun” or flamethrower which could be used to target law enforcement officials and vehicles including the Bozeman Police Department’s recently acquired BearCat vehicle. Wolf agreed to be introduced to a friend of the CI who could help him obtain these items. The CI’s “friend” was actually an undercover FBI agent known only to Wolf as “Dirty.” During his discussions with both the CI and Dirty, Wolf demonstrated his knowledge of flamethrowers, how to make napalm, and fully automatic weapons, including his ability to describe in detail the merits and functionality of such weapons. Dirty offered to help Wolf procure a flamethrower; Wolf responded, “try to get me a Russian automatic shotgun too.” During a subsequent meeting with Dirty, Wolf stated his preference for the Saiga 12 fully automatic shotgun. Wolf also told Dirty that any fully automatic shotgun “will handle most riot crowds and cops.” When Dirty told Wolf that there would be “no paper” with the sale, Wolf replied, “I love that.” Wolf later sent a text message to the CI that he wanted a military-grade (sawed off) barrel on the machine gun he had previously requested from Dirty.
The FBI obtained a Saiga 12 by modifying a semi-automatic shotgun with a standard barrel to the specifications requested by Wolf. The FBI agent made a video demonstrating the fully automatic capabilities of the gun and forwarded it to the CI. The CI showed Wolf the video. The CI told Wolf he would have to pay an additional $125 for the conversion to fully automatic. Wolf readily agreed. Wolf communicated to the CI that he intended to build a flamethrower to mount under the barrel of the shotgun and observed that the shortened barrel was ideal for this purpose. Wolf stated, “the purpose of the gun is not to go hunting with, it’s to clean house.” Wolf agreed to purchase the gun. On March 25, 2015, Wolf met the FBI agent at a truck stop in Livingston, Montana. The agent communicated to Wolf that the weapon had been modified from semi-automatic to fully automatic, which Wolf acknowledged. Minutes before taking possession of the machine gun, Wolf told the agent, “I just need to kill the public officials.” The FBI agent also told Wolf that the weapon was an illegal firearm. Undeterred, Wolf paid the agent and transferred the firearm to his vehicle, at which point he was arrested by the FBI.
At trial, the government used a combination of Wolf’s recorded radio show, excerpts of his conversations with the CI and undercover FBI agent, and post-arrest recordings to demonstrate to the jury that Wolf was aware of the features of the gun that brought it within the scope of the statute requiring registration.
“The members of this Montana jury have sent a strong message that those, like Mr. Wolf, who seek anarchy and violence, and who willingly break federal firearms laws will not be tolerated in Montana,” said Montana U.S. Attorney Mike Cotter. “The agents of the Federal Bureau of Investigation are to be commended for their diligent work and effort in this investigation.”
The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Trial Attorney Danya Atiyeh, from the Counterterrorism Section, National Security Division, of the United States Department of Justice. The case was investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Berkeley County man convicted of oxycodone traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Earl Ferguson, 46, of Inwood, West Virginia, was convicted of prescription painkiller trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Ferguson sold oxycodone in July 2015 in Berkeley County, West Virginia. He pled guilty today to one count of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bergen County, New Jersey, Woman Charged with Tax Evasion, Defrauding Two New York Law Firms Out of $7.8 MillionRead the Press Release
NEWARK, N.J. - A Newark federal grand jury today indicted an Englewood Cliffs, New Jersey, woman for tax evasion and using bogus litigation support companies to obtain millions from two law firms where she was a partner, U.S. Attorney Paul Fishman announced.
Keila Ravelo, 50, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of tax evasion. Ravelo and her husband, Melvin Feliz, 49, also of Englewood Cliffs, were originally arrested and charged by complaint on Dec. 22, 2014 with conspiracy to commit wire fraud.
According to documents filed in the case and statements made in court:
Ravelo worked as a partner for a company identified in the indictment as “Law Firm 1” from July 1, 2005 through October 2010. She then became partner for another company identified as “Law Firm 2” and worked there from October 2010 through November 2014.
From 2008 through July 2014, Ravelo and Feliz allegedly formed two limited liability companies, “Vendor 1” and “Vendor 2,” which purported to provide litigation support for both firms, but in fact provided no actual services. Ravelo and Feliz controlled Vendor 1 and Vendor 2 bank accounts and submitted invoices to Law Firm 1, Law Firm 2 and a client of both firms for work that was never performed. Ravelo, in her capacity as a partner at the law firms, allegedly approved payments to Vendor 1 and Vendor 2, which Ravelo and Feliz later used for personal expenses.
Over the course of the conspiracy, the law firms paid Vendor 1 and Vendor 2 a combined total of approximately $7.8 million. The indictment further alleges that Ravelo willfully failed to report the fraudulent earnings on her tax returns.
The conspiracy charge and each count of wire fraud are punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The tax evasion charges are each punishable by a maximum potential penalty of five years in prison and a $100,000 fine.
The charges and allegations in the indictment are merely accusations, and Ravelo is considered innocent unless and until proven guilty.
On Aug. 25, 2015, Feliz pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. His sentencing is currently scheduled for Dec. 14, 2015.
U.S. Attorney Fishman credited law enforcement officers of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Carl Kotowski, and law enforcement officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorneys Ronnell Wilson, Andrew Kogan, and Brian Urbano of the U.S. Attorney’s Office Criminal Division, Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit, and Assistant U.S. Attorney David Foster of the U.S. Attorney’s Office Special Prosecution’s Division in Newark.
Defense counsel: Lawrence S. Lustberg Esq., Newark, and Steven H. Sadow Esq., Atlanta, Georgia
Baltimore Drug Trafficker ConvictedRead the Press Release
Baltimore, Maryland – A federal jury today convicted Mario Lamar Wair, a/k/a “Unda,” age 42, of Baltimore, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine; and for possession with intent to distribute cocaine and crack cocaine.
The conviction 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; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to evidence presented at his four day trial, from no later than June 2013 through June 2014, Wair conspired with Kareem Moore, and others to distribute cocaine and crack cocaine in southwest Baltimore. Kareem Moore and other co-defendants operated a street-level drug shop that sold crack cocaine daily to customers. Trial evidence showed that Wair supplied two to three ounces of cocaine to Moore, two to three times per week. Moore cooked the cocaine into crack cocaine, which was then sold to other distributors and in user-quantity amounts to street level customers.
According to the trial evidence, Wair and his co-conspirators distributed 500 grams of cocaine and 280 grams of crack cocaine.
Wair faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life years in prison for the conspiracy; and a mandatory minimum of five years and a maximum of 40 years in prison for possession with intent to distribute cocaine and crack cocaine. U.S. District Judge George L. Russell, III, scheduled sentencing for January 22, 2016, at 2:00 p.m.
Kareem Moore pleaded guilty before trial and is scheduled to be sentenced on January 6, 2016, a6 2:00 p.m. Eight other co-defendants have also pleaded guilty to their participation in the conspiracy.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Leo J. Wise, who prosecuted the case.
Army Captain Pleads Guilty to Gratuities ChargeRead the Press Release
A Colorado Springs, Colorado, man pleaded guilty today in federal court before U.S. District Judge Terrence W. Boyle of the Eastern District of North Carolina to solicitation and receipt of a gratuity, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
In connection with his plea, Captain David Anthony Kline, 32, admitted that while serving as a first lieutenant in the U.S. Army stationed at Kandahar Air Field (KAF) in Afghanistan, he sought and accepted $50,000 in gratuities from a contractor who was doing business with the U.S. military. Specifically, from January 2008 to April 2009, then-1st Lt. Kline was deployed to KAF where he oversaw the handling of transportation movement requests (TMRs) directing the transport of supplies from one location to another across Afghanistan. Although contracting procedures technically did not permit the authorizing officer to specify the particular Afghan trucking company that would perform the transportation, in practice, Kline and others were able to designate the Afghan company of their choice. Kline admitted that he sought and accepted $50,000 in U.S. currency from an Afghan national who owned a trucking company doing business on government contracts at KAF, in return for Kline’s facilitation of the award and payment of numerous transportation contracts.
The case was investigated by the Defense Criminal Investigation Service, Army Criminal Investigation Command, the Special Inspector General for Afghanistan Reconstruction and FBI. The case was prosecuted by Trial Attorney Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.
Army Captain Pleads Guilty to Gratuities ChargeRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today, DAVID ANTHONY KLINE, 32, of Colorado Springs, Colorado, pled guilty before United States District Judge Terrence W. Boyle to solicitation and receipt of a gratuity and aiding and abetting the same, all in violation of Title 18, United States Code, Sections 201(c)(1)(B) and 2.
According to the Criminal Information filed on September 9, 2015, and information presented in open court, DAVID ANTHONY KLINE, while serving as a First Lieutenant in the United States Department of the Army and stationed at Kandahar Air Field, in Afghanistan, did seek and accept $50,000 in gratuities from a contractor doing business with the United States military. Specifically, from January 2008 to April 2009, then-Lieutenant KLINE was deployed to Kandahar Air Field (KAF), Afghanistan as a member of the 189th Combat Sustainment Support Battalion (189th CSSB), and he served as the Officer-in-Charge (OIC) of the Movement Control Team. The 189th CSSB is based at Fort Bragg and KLINE deployed to Afghanistan from Fort Bragg. KLINE has since been promoted to the rank of Captain.
As the OIC, KLINE oversaw the handling of Transportation Movement Requests, or TMRs, which are the means by which a military unit in the field submits a request for the transport of military items, to include fuel and equipment, food and other supplies, from one location to another across Afghanistan.
Although contracting procedures technically did not permit the authorizing officer to specify the particular Afghan trucking company that would perform the transportation, in practice, Kline and others were able to designate the Afghan company of their choice. KLINE admitted that he sought and accepted $50,000 in U.S. currency from an Afghan national who owned a trucking company doing business on government contracts at KAF, in return for KLINE’S facilitation of the award and payment of numerous transportation contracts.
Inspector General John Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR) stated: "Stealing from the U.S. government undermines our mission in Afghanistan,
plain and simple. Not only did Captain Kline seek to defraud American taxpayers and abuse his position of authority as an officer, but he also put his fellow soldiers in harm's way by stealing vital resources that are needed for legitimate operations."
"As a First Lieutenant in the U.S. Army, David Kline had an obligation not only to conduct business in the best interest of his country, but also for those service men and women he was responsible for in Afghanistan. Anyone willing to misuse government resources for their own profit will be held accountable," said John Strong, Special Agent in Charge of the FBI in North Carolina.
"The Defense Criminal Investigative Service (DCIS) aggressively pursues those who tarnish the reputation of the U.S. Department of Defense abroad as our Warfighters serve honorably to accomplish our global missions," said DCIS Special Agent in Charge John F. Khin. "Corruption and theft in a combat environment degrade the effectiveness of the U.S. Armed Forces."
The case was investigated by the Defense Criminal Investigation Service (DCIS), Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney Wade Weems of the U.S. Department of Justice Criminal Division’s Fraud Section.
Amherst Company Pleads Guilty to Criminal ContemptRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Acquest Transit, LLC, based in Amherst, NY, pleaded guilty to criminal contempt, before Senior U.S. District Judge William M. Skretny. The charge carries a maximum sentence of a fine of $500,000 and five years probation.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that Acquest Transit, LLC, was established to purchase an approximately 97-acre piece of property at 10880 Transit Road in Amherst. William L. Huntress served as the sole member and manager of Acquest Transit, LLC. On January 20, 2006, the defendant purchased the site for $425,000.
In 2009, the Department of Justice instituted a civil proceeding alleging that the site purchased by Acquest contained federally protected wetlands. The civil action further alleged that the company was engaging in prohibited filling of the wetlands.
On July 15, 2009, Judge Skretny issued a preliminary injunction ordering the defendant not to place additional fill or perform any additional earthmoving work at the site. On May 25, 2010, a farmer, acting on behalf of the defendant, performed mechanized activities on the site with agricultural equipment. These actions were a violation of Judge Skretny’s order, and the defendant acted willfully in violating the order.
The plea is the culmination of an investigation by the Environmental Protection Agency under the direction of Special Agent in Charge, Vernesa Jones-Allen.
Sentencing is scheduled for March 9, 2016 at 10:00 a.m. before Judge Skretny.
2015 Red Ribbon EventsRead the Press Release
Each year communities nationwide join together to raise awareness about the dangers of drug abuse by wearing a red ribbon from October 23 to October 31, which is the National Red Ribbon Week. The first Red Ribbon celebration was organized in 1986 by a grassroots organization of parents concerned about the destruction caused by alcohol and drug abuse. The red ribbon was adopted as a symbol of the movement in honor of Enrique “Kiki” Camarena, an agent with the U.S. Drug Enforcement Administration who was kidnapped and killed while investigating drug traffickers. The Campaign has reached millions of children and has been recognized by the U.S. Congress for its efforts and achievements. In Guam and the NMI, Red Ribbon Week is an opportunity to be visible and vocal in our desire for a drug-free community. Research shows that children are less likely to abuse alcohol and other drugs when parents and other role models are clear and consistent in their opposition to substance use and abuse. The Campaign provides communities with a forum to bring together parents, schools and businesses to find new and innovative ways to keep kids drug free.
The Red Ribbon Committees in Guam and the NMI consist of local and federal agencies and private and non-profit organizations that have partnered to increase awareness of the National Red Ribbon Campaign’s significance and promote a drug-free community. On Guam, the observance of the Red Ribbon Week is extended beyond one week, with events occurring throughout the month of October. Simon Sanchez High School was last year’s Gate/Wall Decorating Contest Winner. The Red Ribbon Campaign kicked off with a Proclamation Signing on September 28, 2015, at Simon Sanchez High School in Yigo. This event was attended by Lt. Governor Raymond Tenorio, other dignitaries and Red Ribbon Committee members.
U.S. Attorney Limtiaco made presentations at Dandan Middle School in Saipan, NMI, together with personnel from the U.S. Probation Office. Assistant U.S. Attorney Rosetta San Nicolas and Red Ribbon Guam Coalition members also made a presentation at Okkudo High School in Guam. Other Red Ribbon Committee members made presentations at many other elementary, middle and high schools on Guam. Students learned about the dangers of drugs and were encouraged to be drug and alcohol free.
In addition to the school outreaches, the following activities were also held in celebration of the Red Ribbon Campaign 2015 in Guam: National Prescription Drug Take Back Day; Drawing Contest and School Gate Decorating Contest; Community Outreach at the Micronesia Mall, which included the distribution of free gunlocks; Wear Red Day; Red Ribbon Wave in Hagatna; Say “Boo” to Drugs at the Agana Shopping Center; Drawing Contest and School Gate Decorating Contest Winners Award Presentation; and various TV and radio appearances.
The following are photos taken at the various events.
Dignitaries awaiting the start of the Red Ribbon events at Simon Sanchez High School in Guam. From left: Principal Carla Masnayan, Senator Frank Aguon, Jr., Lt. Governor Raymond Tenorio, Acting DEA Resident Agent in Charge Dave Stubbs, Supreme Court of Guam Chief Justice Robert Torres, and Lt. Yin of the Guam Army National Guard U.S. Attorney Alicia Limtiaco looks on as students take the pledge on gun safety, which was also being promoted at the Red Ribbon Campaign
Members of the Red Ribbon Committee with students of the Guam Community College’s sign language class who performed several numbers at the Red Ribbon Campaign Outreach at the Micronesia Mall in Guam Some of the students who joined the Red Ribbon Campaign WAVE in Hagatna, Guam Police Recruits supporting the Red Ribbon Campaign WAVE in Hagatna, Guam AUSAs Rosetta San Nicolas and Stephen Leon Guerrero participated at the school outreach at Machanaonao Elementary School in Guam U.S. Attorney Alicia Limtiaco at the school outreach at Dandan Elementary School in Saipan, NMI Say “Boo” To Drugs event at the Agana Shopping Center in Guam An aerial view of the Say “Boo” to Drugs event at the Agana Shopping Center in Guam U.S. Attorney Alicia Limtiaco and Red Ribbon Committee members at the Say “Boo” To Drugs event at the Agana Shopping Center in Guam
4 November 2015
“Pimp” and “John” Convicted in Child Sex Trafficking Conspiracy Involving 12-Year-Old Female VictimRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge Jane J. Boyle, a federal jury has convicted an Irving, Texas, man for his role in a conspiracy to commit sex trafficking of a female child. His co-defendant in the case pleaded guilty to his role in the conspiracy. U.S. Attorney John Parker of the Northern District of Texas made the announcement this afternoon.
The jury convicted Brady Rodriguez-Cruz, a/k/a Marcos Antonio Rodriguez-Mejia, 33, on one count of conspiracy to commit sex trafficking of children. He also pleaded guilty to one count of possession of counterfeit documents. On October 22, 2015, Luis Rivera, 19, also of Irving, pleaded guilty to one count of conspiracy to commit sex trafficking of children.
In the conspiracy, Rodriguez-Cruz acted as the “john,” and Rivera acted as the “pimp.” The government presented evidence at trial that from approximately December 23, 2014, through December 25, 2014, Rodriguez-Cruz and Rivera agreed to cause Jane Doe, a 12-year-old child, to engage in a commercial sex act.
Rivera met Jane Doe, along with three other minor females, in Irving. Shortly after he met the minor females, Rivera learned that Jane Doe was 12-years-old. Rivera and his friends, including one minor friend, took the four minor females to an empty apartment in Irving, where they stayed overnight. The minor females had no money, so they were not able to eat that day.
The next day, the group left the abandoned apartment and went to Rivera’s minor friend’s apartment, and Rivera told the four minor females that they needed to engage in commercial sex acts to earn money for food. Rivera then made several phone calls seeking potential commercial sex customers for the minor females. He planned to charge $100 for sexual intercourse with one of the minors. Rivera reached Rodriguez-Cruz and Rodriguez-Cruz agreed to come to the location to engage in a commercial sex act. Rodriguez-Cruz brought another man with him to the apartment. Rivera told the four minor females to line up so the men could select who they wanted to have sex with, and Rodriguez-Cruz selected the youngest girl, 12-year-old Jane Doe. Rodriguez-Cruz then negotiated the price for sex with a girl down to $50. Shortly thereafter, he engaged in commercial sex acts with Jane Doe, paid Rivera and his minor male friend approximately $50, and hastily left.
The government also presented evidence at trial that on January 28, 2015, when officers with the Irving Police Department executed a traffic stop on a vehicle driven by Rodriguez-Cruz, they found him in possession of an unlawfully obtained, counterfeit U.S. Permanent residence card. That card was issued in another name but bore Rodriguez-Cruz’s photograph.
The conspiracy count carries a maximum statutory penalty of life in federal prison and a $250,000 fine. The counterfeit documents count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Rivera is scheduled to be sentenced by Judge Boyle on February 4, 2016, and Rodriguez-Cruz’s sentencing date has not been set.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce and John Kull prosecuted.
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Yakima Man Sentenced to 15 Years in Federal Prison for Being an Armed Career CriminalRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ronald Alex Phillips, age 48, of Yakima, Washington, was sentenced today for being a previously convicted felon in possession of a firearm. United States District Court Judge Stanley A. Bastian sentenced Phillips to a 15-year term of imprisonment pursuant to the Armed Career Criminal Act, and a five year term of court supervision following release from Federal prison.
According to information disclosed during the court proceedings, on March 28, 2015, Phillips, a previously convicted felon, threatened to shoot a woman at an AM/PM mini-mart in Yakima, Washington. He approached the woman, made a derogatory comment to her, then stated: “I’m going to shoot you.” Phillips lifted up his shirt and revealed a firearm in his waistband. Following a 911 call, Yakima Police Department officers responded to the scene and arrested Phillips, who was in possession of a firearm. Phillips has dozens of prior criminal convictions ranging from drug trafficking and robbery to assault and theft.
Michael C. Ormsby said, “Prosecuting firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. In this
case, the Yakima City Police Department partnered with Special Agents working for the Bureau of Alcohol, Tobacco, Firearms and Explosives to successfully prosecute this Federal case. Previously convicted felons should be aware that there are serious criminal penalties connected with possessing any firearm and that this Office is committed to prosecuting aggressively firearms-related cases in the Eastern District of Washington.”
The case was investigated by the Yakima City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Ian L. Garriques, an Assistant United States Attorney for the Eastern District of Washington.
Wilson Man Sentenced for Drug TraffickingRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced THurman ray bohne, jr., 48, of Wilson, North Carolina to 162 months imprisonment, followed by 10 years of supervised release.
bohne was named in an Indictment filed on January 7, 2015 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or more of Cocaine. On June 29, 2015, bohne pled guilty to that charge.
According to the investigation, BOHNE and his co-conspirators distributed over 13 kilograms of cocaine in the Wilson, North Carolina area from 2007 to 2012.
Investigation of this case was conducted by the Drug Enforcement Administration, the Wilson County Sheriff’s Office, the Wilson Police Department, and the Greenville Police Department. Assistant United States Attorney Lawrence J. Cameron represented the government.
Wendell Woman Sentenced for Tax FraudRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise Flanagan sentenced KIMBERLY NICOLE TORRES, 40, of Wendell, North Carolina to 52 months imprisonment; 3 years supervised release, and $104,624 restitution. On April 16, 2015, TORRES pled guilty to False, Fictitious and Fraudulent Claim for Refund. Evidence presented at TORRES’ plea and sentencing showed that TORRES used the identities of others, often without their knowledge, to prepare and file fraudulent tax returns.
U.S. Attorney Walker stated, “Our tax system relies on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like TORRES deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation and United States Secret Service. Assistant United States Attorney David Bragdon handling the case on behalf of the government.
U.S. Court of Appeals Affirms Conviction of Former Rio Arriba County Sheriff Thomas R. RodellaRead the Press Release
ALBUQUERQUE – The U.S. Court of Appeals for the Tenth Circuit has affirmed the conviction of Thomas R. Rodella, 53, the former Rio Arriba County Sheriff, on criminal civil rights and firearms charges.
Rodella was convicted on Sept. 26, 2014, by a jury on a two-count indictment arising out of a March 11, 2014 incident occurring in Rio Arriba County, N.M., during which Rodella engaged in an unjustified high-speed pursuit and unreasonable seizure of a victim. Count 1 of the indictment charged Rodella with violating the victim’s civil rights by subjecting him to an unreasonable seizure while acting under color of law. Count 2 charged him with brandishing a firearm during a crime of violence. Rodella was the Sheriff of Rio Arriba County when the jury returned its guilty verdict. He resigned from his position as Sheriff on Sept. 29, 2014.
The trial evidence established that on March 11, 2014, Rodella and his son Thomas Rodella, Jr., who were in Rodella’s personal vehicle, engaged in an unjustified high-speed pursuit of the victim and used the vehicle to block the victim’s vehicle on a dead-end lane. Rodella, who was not in uniform, jumped out of his vehicle with firearm in hand, entered the victim’s vehicle, and assaulted the victim with the firearm. Rodella, Jr., dragged the victim out of his vehicle and identified the victim’s assailant as the Sheriff. When the victim requested to see Rodella’s badge, Rodella pulled the victim’s head up by his hair and slammed his badge into the victim’s face. The victim suffered injuries to his face and his hand as a result of the assault; the injury to the victim’s hand required surgical repair.
On Jan. 21, 2015, Rodella was sentenced to 37 months in prison for his deprivation of rights conviction and an additional 84 months for brandishing a firearm while committing the civil rights offense, for an aggregate sentence of 121 months of imprisonment. Rodella also was ordered to pay a $200,000.00 fine.
The case was investigated by the Albuquerque and Santa Fe offices of the FBI and was prosecuted by Assistant U.S. Attorneys Tara C. Neda and Jeremy Peña. Assistant U.S. Attorney Peña represented the United States on appeal.
Two Members of Illegal International Gambling Enterprise Convicted of Racketeering ConspiracyRead the Press Release
A federal jury in Oklahoma City convicted two individuals today for their participation in a scheme involving illegal gambling, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
Kelly Dorn, 53, of Oklahoma City, and Kory Koralewski, 45, of Parker, Colorado, were found guilty of racketeering conspiracy. Dorn was additionally convicted of conducting an illegal gambling business. A sentencing hearing has not yet been set.
According to the trial evidence, from 2003 to 2013, Dorn and Koralewski conspired with others to operate Legendz Sports, an international criminal enterprise that ran Internet and telephone gambling services from Panama City. Legendz Sports took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States betting on American sporting events. Dorn worked as a bookie in Oklahoma who illegally solicited and accepted sports wagers as well as settled gambling debts. Koralewski facilitated the movement of illegal gambling proceeds from the United States to Panama.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Special Assistant U.S. Attorney Robin L. Summer and Assistant U.S. Attorney Travis D. Smith of the Western District of Oklahoma.
Two Caldwell Men Sentenced to Prison for Firearms OffensesRead the Press Release
BOISE – Gustavo Collado Rodriguez, 20, and David Angel Prieto, 22, both of Caldwell, Idaho, were sentenced today for unlawful possession of a pistol and a sawed-off shotgun, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Rodriguez to 60 months in prison, and sentenced Prieto to 36 months in prison followed by three years of supervised release. Both defendants pleaded guilty on August 11, 2015.
According to court documents, Prieto and Rodriguez went to a residence in Caldwell, Idaho, where Rodriguez demanded money and pointed a pistol at the occupant of the home. Prieto and Rodriguez fled before police officers arrived, but officers were able to track them by following footprints in the snow to a nearby shed. Inside the shed, officers found Rodriguez and Prieto along with a sawed-off 12 gauge shotgun and a 9 millimeter pistol with a high capacity magazine loaded with hollow point ammunition. Rodriguez is prohibited from possessing firearms because he is an alien illegally and unlawfully in the United States. Prieto is prohibited from possessing firearms because he was previously convicted of the felony crime of possession of a controlled substance. According to information presented in court, both Prieto and Rodriguez associate with a criminal gang. Judge Lodge ordered Prieto to have no contact with criminal gangs upon his release from prison. Rodriguez will likely be deported after serving his prison sentence because he was unlawfully in the United States. The firearms involved in the offense were forfeited.
The case was investigated by the Caldwell Police Department and the Treasure Valley Metro Violent Crimes Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Canyon County Prosecutor’s Office, the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Business Owners Charged with Filing False Federal Income Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that two owners of a Metairie business were charged today with filing false federal income tax returns.
ROMMEL CORDOVA, age 35 of Luling, and SAUL RAMIREZ, age 43, of Kenner, were each charged in a single Bill of Information with willfully filing false 2011 individual income tax returns. According to the Bill of Information, CORDOVA and RAMIREZ owned and operated Skill Labor Provider, Inc. (“Skill Labor”) a Metairie, Louisiana labor services business. They were each fifty-percent owners of Skill Labor and shared equally in its net income.
During calendar years 2010 and 2011, CORDOVA and RAMIREZ cashed, and caused to be cashed, checks made payable to Skill Labor and other business checks at a check cashing business in Kenner. CORDOVA and RAMIREZ caused false corporate income tax returns for Skill Labor to be prepared which did not accurately report the gross receipts, labor expenses deductions, or net income of Skill Labor. They then filed their respective individual income tax returns, which did not accurately report the amounts of business income that CORDOVA and RAMIREZ received from Skill Labor.
Upon conviction, each defendant faces a maximum penalty of three years of imprisonment, one year of supervised release, a fine of $250,000, or twice the gross gain or loss caused by the offense, a $100 special assessment, and restitution to the Internal Revenue Service.
U. S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations and Homeland Security Investigations for investigating this matter. Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Michael Hatzimichalis are in charge of the prosecution.
Troy Brothers Indicted for Health Care FraudRead the Press Release
ALBANY, NEW YORK – Michael VonFricken and John VonFricken were indicted separately for obtaining false receipts for orthodontic services and submitting them to their union’s health care plan, announced United States Attorney Richard S. Hartunian.
The charges carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years.
Both defendants were arraigned on November 3, 2015 in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released pending a trial scheduled for January 4, 2016 before United States District Judge Mae A. D’Agostino.
John VonFricken, age 55, of Troy, New York, is charged with health care fraud for obtaining $54,600 in reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.
Michael VonFricken, age 44, of Troy, is charged with health care fraud for obtaining $32,732 in reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.
The charges in the Indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Solomon B. Shinerock.
Trafficker Sentenced for Cocaine and Money Laundering ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced RAUL PINEDA, 32, of Anaheim, California, to 89 months in prison and 5 years of supervised release for conspiracy to distribute and possess 5 kilograms or more of cocaine and conspiracy to launder monetary instruments. PINEDA previously pled guilty to these charges on May 13, 2014. FABIO HIROCHI INOUE, one of PINEDA’S co-conspirators, was sentenced to 51 months in prison and 5 years of supervised release for the same charges by Judge Flanagan on June 10, 2015.
The investigation revealed that between April 2013 and September 22, 2013, PINEDA sent INOUE, to Johnston County, North Carolina, to deliver cocaine and collect drug proceeds for a drug trafficking organization operating out of Mexico and California. INOUE made several trips during this time period to meet with cocaine traffickers in the Johnston County, N.C., area. During these trips INOUE delivered multiple kilograms of cocaine and collected drug proceeds. INOUE laundered some of the drug proceeds by depositing portions into a bank account in the name of a real estate business located in California. Based on the investigation, the United States Drug Enforcement Administration (DEA) discovered that INOUE would be flying to the Raleigh Durham International Airport with several kilograms of cocaine on September 22, 2013. Agents found INOUE at the airport and seized his luggage which contained 3,891 grams of cocaine. Agents arrested INOUE after seizing the cocaine.
On November 19, 2013, DEA learned that PINEDA traveled to Garner, N.C., to transport 2 kilograms of cocaine to the Johnston County traffickers. Agents located PINEDA after he exited a hotel in Garner to deliver the cocaine. Agents arrested PINEDA after locating 2 kilograms of cocaine in PINEDA’S backpack. In total, PINEDA was found to be responsible for trafficking 14.89 kilograms of cocaine and laundering drug proceeds totaling $170,985.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office and the Internal Revenue Service-Criminal Investigation Division. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Three New Albany-area men sentenced in fraud schemeRead the Press Release
New Albany – Josh J. Minkler, United States Attorney, announced today that three Louisville-area men were sentenced in federal court on fraud charges. U.S. District Judge Sarah Evans Barker sentenced Travis O. Kiser, 43, Louisville (18 months), Kevin J. O’Donnell, 44 Louisville (15 months) and David Gibson, 45, Floyds Knob (one year and one day) after their convictions for wire fraud and money laundering.
“Defrauding insurance companies has an immediate impact on all of us through higher premiums,” said Minkler. “When emergencies arise and people need their insurance companies, they deserve honest and quick acting service from all who process the claim”
Between 2011 and 2014, Travis Kiser conspired with O’Donnell and Gibson to defraud Farm Bureau and Cincinnati Insurance companies in excess of $340,000.
Gibson was employed by Indiana Farm Bureau Insurance Company as a field claims adjuster in New Albany, Indiana. Kiser was employed by Belfor USA, a restoration company located in Louisville, Kentucky, as a marketing manager. The two orchestrated the scheme by creating an artificial company, Derby City Solutions LLC, to submit inflated invoices to Farm Bureau for emergency services actually performed by Belfor. Kiser would use cashier’s checks payable to Belfor to hide the existence of his sham company. The two would then split the fraudulent proceeds which totaled approximately $126,360.
In a second scheme, Kiser and O’Donnell formed a company called River City Solutions, LLC, which originally was legitimate but later was used solely to defraud the Cincinnati Insurance Company (CIC). The scheme was similar to the previous one. O’Donnell was a field claims superintendent for CIC in Louisville, Ky. He would submit false or inflated invoices for emergency restoration to CIC for payment. They used their pass- through company, River City to defraud the insurance company. Often times the pair would submit invoices that were inflated, the work was performed by another company or never performed at all. They used cashier’s checks payable to the company that legitimately performed the services to hide their fraud. The total loss to CIC was approximately $216,332.
Some of the emergency work being performed was a result of the New Pekin and Henryville tornadoes from February 2012.
This case was investigated by the Internal Revenue Service, Criminal Investigation who Judge Barker lauded for their efforts in such a complex and sophisticated scheme.
IRS Criminal Investigation Special Agent in Charge Stephen Boyd stated, “Insurance fraud impacts almost all honest American citizens because the cost of this crime comes out of all of our pockets. IRS Criminal Investigation special agents are experts in tracing the flow of money which assisted the investigative team in uncovering the three guilty individuals who will be held accountable with time in prison.”
According to Assistant United States Attorney James M. Warden, who prosecuted this case for the government, all three men must serve a period of supervised release after their sentence, some of which is on home detention. They must also make full restitution for the money they stole.
Statement Concerning Arrest of Superior Court Judge JonesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker confirms the arrest this morning of North Carolina Superior Court Judge Arnold Ogden Jones, II. A federal grand jury returned a three-count indictment yesterday charging Jones with Promising and Paying a Bribe to a Public Official, Promising and Paying a Gratuity to a Public Official, and Corruptly Attempting to Influence an Official Proceeding.
Jones is scheduled to make his initial appearance at 10:00 a.m. this morning before U.S. Magistrate Judge Robert T. Numbers in Raleigh. A copy of the indictment is attached.
Six sentenced for heroin, painkiller traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Six individuals were sentenced in federal court today for heroin and prescription pill trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Jonathan Paul Calain, 38, of Elkins, was sentenced today to 78 months in prison after he admitted that he conspired with multiple other individuals to possess and distribute oxycodone in Randolph County, West Virginia. He pled guilty in February 2015 to one count of “Conspiracy to Distribute Oxycodone.” The Mountain Region Drug and Violent Crime Task Force, the West Virginia State Police, the Randolph County Sheriff’s Department, the Upshur County Sheriff’s Department, the Drug Enforcement Administration, and the Internal Revenue Service investigated.
In another matter, five individuals were sentenced in federal court today for selling heroin and prescription medications throughout 2014 and 2015 in Grant County, West Virginia following an investigation by the West Virginia State Police and the Potomac Highlands Task Force.
Richard Dean Gibson, 32, of Petersburg, West Virginia, was sentenced today to 21 months in prison for selling heroin in May 2014 in Grant County, West Virginia. He pled guilty in July 2015 to one count of “Aiding and Abetting Distribution of Heroin.”
John Daniel Barnett, 39, of Petersburg, West Virginia, was sentenced today to 18 months in prison for selling heroin in May 2104 in Grant County, West Virginia. He pled guilty in July 2015 to one count of “Aiding and Abetting Distribution of Heroin.”
Kaylei Oressa Wilson, 26, of Petersburg, West Virginia, was sentenced today to 6 months in prison for selling heroin in August 2014 in Grant County, West Virginia. She pled guilty in July 2015 to one count of “Aiding and Abetting Distribution of Heroin.”
Autumn Lyn Forbeck, 24, of Frostburg, Maryland, was sentenced today to three years of probation after she was discovered in possession of heroin in June 2014 in Grant County, West Virginia. She pled guilty in July 2015 to one count of “Aiding and Abetting Possession with Intent to Distribute Controlled Substances.”
Sandra Elizabeth Gibbins, 58, of Moorefield, West Virginia, was sentenced today to two years of probation for selling heroin in May 2014 in Grant County, West Virginia. She pled guilty in July 2015 to one count of “Aiding and Abetting Distribution of Heroin.”
Assistant U.S. Attorney Stephen Warner prosecuted Calain and Assistant U.S. Attorney Michael Stein prosecuted the remaining defendants on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Sharon, Pa., Tobacco Businesses, Owner and Manager Plead Guilty to Fraud, Filing False ReportsRead the Press Release
PITTSBURGH – Residents of Ohio and New York, along with two tobacco wholesale businesses in Sharon, Pennsylvania, pleaded guilty in federal court to charges of mail fraud and failure to file required reports with state revenue authorities, United States Attorney David J. Hickton announced today.
Raid Zaghari, 43, of Brooklyn, New York, USA Trading Corporation-I and USA Trading Corporation-V, both located in Sharon, Pennsylvania, pleaded guilty to mail fraud before United States District Judge Cathy Bissoon.
Tareq Alasadi, a/k/a Tareq Alasade, 41, of Youngstown, Ohio, pleaded guilty before United States District Judge Cathy Bissoon to failure to file a report setting forth the amount of tobacco product sold to a North Carolina distributor.
According to information presented to the Court at the guilty pleas by Assistant U.S. Attorney Stephen R. Kaufman, Zaghari, USA Trading Corporation-I and USA Trading Corporation-V used commercial interstate carriers for the purpose of executing a scheme to defraud. Non-cigarette tobacco, known in the industry as “other tobacco products” or “OTP,” was sold by the defendants from their warehouse in Sharon, Pennsylvania, to distributors in New York and North Carolina, states that impose an excise tax on OTP. Pennsylvania is the only state in the nation which does not tax the wholesale distribution of OTP. In the mail fraud schemes, the defendants agreed not to report the sales to the taxing authorities in those other states, as required by law, which caused significant loss of tax revenue to the those states. USATC-I and USATC-V admitted that the loss was $3 million in taxes.
Alasadi failed to file, with the North Carolina Department of Revenue, the required notifications pertaining to the interstate distribution of taxable tobacco products to a customer in North Carolina by USATC-I.
Judge Bissoon scheduled sentencing for March 2, 2016 for Alasadi, March 9, 2016 for Zaghari, and April 7, 2016 for USA Trading Corporation-I and USA Trading Corporation-V. The law provides for a maximum total sentence of three years in prison, a fine of $250,000 or both for Alasadi and Zaghari. The law provides for a maximum total sentence of a term of probation, an order of criminal forfeiture, and restitution for USA Trading Corporation-I and USA Trading Corporation-V. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the charges in this case.
Second California Resident Sentenced to Prison for Helping to Transport Heroin Across the CountryRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 39-year-old California resident was sentenced to 41 months in prison today by Senior U.S. District Court Judge Richard P. Conaboy in Scranton, for possessing with intent to distribute more than one kilogram of heroin.
According to United States Attorney Peter Smith, the defendant, Livier Cantor-Huizar, of Fresno, California, admitted to transporting heroin from California to the Mt. Pocono area of Monroe County in July 2014.
Cantor-Huizar was indicted by a federal grand jury in July 2014, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.
Judge Conaboy ordered Cantor-Huizar to serve two years on supervised release following her prison sentence.
Last week, Judge Conaboy sentenced co-defendant Jose Rosario Huizar-Rios to 46 months in prison. Two other defendants have entered guilty pleas in the case and are awaiting sentencing.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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San Juan County Resident Arraigned on Federal Wire Fraud ChargesRead the Press Release
ALBUQUERQUE – Bobby Willis, 43, a resident of Kirtland, N.M., was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with wire fraud. Willis entered a not guilty plea and was released on pretrial conditions pending trial.
The two-count indictment, which was filed on Oct. 20, 2015, alleges that, from March 2010 through Aug. 2011, Willis executed an illegal scheme to defraud two victims of $1,000,000. According to the indictment, Willis allegedly offered the victims the opportunity to purchase a five-percent interest in a real estate investment company for $1,000,000 with the understanding that he and other individuals had also invested millions of dollars in the company. Willis then allegedly spent $995,000.00 of the victims’ $1,000,000 instead of investing the funds.
Count 1 of the indictment alleges that on Oct. 25, 2010, Willis caused $900,000.00 to be wire transferred from the bank account of the real estate investment company to his and his wife’s bank account. Count 2 alleges that on Nov. 12, 2010, Willis caused another $95,000.00 to be wire transferred from the real estate investment company’s bank account to his and his wife’s bank account. The indictment includes forfeiture provisions seeking a money judgment against Willis in the amount of $1,000,000.
If convicted, Willis faces a statutory maximum sentence of 20 years in prison and a maximum fine of $250,000.00. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
Rockford Woman Arrested on Federal Tax Fraud ChargesRead the Press Release
ROCKFORD — A Rockford, Ill. woman was arrested today on federal charges of making false claims for federal tax refunds and using other persons’ identification in connection with the fraudulent claims for tax refunds. CRYSTAL S. JACKSON, 27, of Rockford, was charged by a federal indictment on Oct. 20, 2015. The indictment charged her with 45 counts of filing fraudulent claims for federal tax refunds, and three counts of illegally possessing and using other persons’ identification in connection with making fraudulent claims for federal tax refunds.
The indictment alleges that between Aug. 1, 2011 and Feb. 5, 2013, Jackson prepared and filed, both electronically and by mail, 45 federal individual income tax returns in the names of other individuals without their permission, causing fraudulent claims for refunds to be made against the United States Treasury. The 45 false returns were filed with the IRS for tax years 2010, 2011, and 2012, and requested refunds totaling $189,237. Some of the 2010 and 2011 fraudulent tax returns listed the address of a relative of Jackson as the taxpayers’ address, and requested debit cards containing the tax refunds be mailed to that address.
Each count of filing a fraudulent claim for a federal income tax refund carries a maximum potential penalty of up to 5 years in prison. Each count of possessing another person’s identification in connection with making a fraudulent claim for a federal income tax refund carries a potential penalty of up to 5 years in prison, or up to 15 years in prison if the charge involves obtaining anything of value totaling $1,000 or more during any one year period. In addition each count charged carries a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater, and full restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. Jackson will appear for a detention hearing at 3:00 p.m. today in Federal Court in Rockford, before U.S. Magistrate Iain D. Johnston.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The arrest was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Stephen Boyd, Special Agent-In-Charge of the Chicago Field Office of Internal Revenue Service - Criminal Investigation Division
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Indictment
Riverhead Physician Assistant Arrested for Conspiracy to Illegally Prescribe OxycodoneRead the Press Release
Michael Troyan, a physician assistant who operated two urgent care clinics on the east end of Long Island was arrested this morning pursuant to a grand jury indictment[1] with conspiring to illegally distribute oxycodone, a highly addictive prescription pain medication. Also this morning, a search warrant was executed at the East End Urgent and Primary Care in Riverhead by the DEA’s Long Island Tactical Diversion Squad which is comprised of agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, and Port Washington Police Department. The Long Island Tactical Diversion Squad was also assisted by agents and officers of the Department of Health & Human Services, the Southampton Town Police Department, and the Suffolk County District Attorney’s East End Drug Taskforce. The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the United States Courthouse in Central Islip, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent in Charge, Drug Enforcement Administration (DEA), New York.
The indictment and public filings allege that between November 2011 and October 2015, Troyan, a physician assistant with authority to prescribe controlled substances, issued prescriptions for thousands of oxycodone pills to co-conspirators for the purpose of illegally re-selling the pills for cash. Troyan was captured on video in an undercover operation writing phony prescriptions for oxycodone and receiving large quantities of cash at his Riverhead medical office for prior illegal sales. Troyan was receiving half of the profit from the sale of the oxycodone pills.
United States Attorney Capers stated, “As alleged, Troyan abused his authority to prescribe controlled substances and his position of trust as a physician assistant to illegally sell oxycodone in exchange for cash. Such abuse by health care professionalswill not be tolerated.” Mr. Capers extended his grateful appreciation to each of theparticipating law enforcement agencies for their assistance in this case.
DEA Special Agent in Charge James J. Hunt stated, “People who are addicted to opioid painkillers are forty times more likely to be addicted to heroin. Cashing in on heroin’s hold over American communities, it is alleged that Michael Troyan wrote prescriptions to oxycodone dealers on the East End in exchange for half the cash profits from the resulting drug sales. DEA and our law enforcement partners will continue to identify the diverted painkiller suppliers, be it an oxy street dealer, a rogue doctor, or a greedy physician’s assistant.”
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 18 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Allen Bode is in charge of the prosecution.
The Defendant:
Name: MICHAEL TROYAN
Age: 37
Residence: Riverhead, New York
[1] The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Rhode Island Man Arrested for Interstate Travel to have Sex with a MinorRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that William McNeill, 23, of Cumberland, Rhode Island, was arrested yesterday in Massachusetts following his indictment in Maine on October 21, 2015 for travelling interstate on October 18, 2014 to have sex with a minor.
McNeill faces up to 30 years in prison and a $250,000 fine.
The joint investigation was conducted by the Naval Criminal Investigative Service and the Bridgton, Maine Police Department.
An indictment is merely an accusation and a defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.