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Friday 18 September 2015
Houston Man Schemes to Steal from UK-Company, Lands in Federal PrisonRead the Press Release
HOUSTON – A Houston man has been ordered to federal prison for a wire fraud scheme in which he deceived a United Kingdom-based company into sending him $357,000, announced U.S. Attorney Kenneth Magidson. Avery Lamarr Ayers, 48, pleaded guilty to one count of conspiracy to commit wire fraud on June 18, 2015.
Today, U.S. District Judge Gray Miller, ordered he serve the statutory maximum of 60 months in federal prison to be immediately followed by three years of supervised release. The court also imposed a restitution order in the amount of $357,000. At the hearing, Judge Miller also found Ayers to be a leader/organizer in the conspiracy.
From approximately Nov. 21, 2014, through March 9, 2015, Ayers deceived an oil and gas company into sending him thousands of dollars for a purported contractual agreement. Ayers and others claimed to be the legitimate company that was owed the funds and illegally caused the victim company to wire $357,000 to Ayers via a Comerica account here in Houston. The scheme involved the use of deceptive email accounts and fabricated or illegitimate invoices for payment on services rendered by the legitimate company.
On Jan. 20, 2015, Ayers registered a “dummy” company doing business as (dba) Minas & Hidrocarboneto in the Harris County Clerk’s Office. That same day, Ayers also opened a Comerica Bank account in the name of Avery L. Ayers dba Minas & Hidrocarbonetos GB SARL.
On or about Jan. 21, 2015, co-conspirators circulated a fraudulent invoice to the oil and gas company via email requesting payment in the amount of $357,000 on services rendered by Minas & Hidrocarbonetos. Two days later, a wire in the amount of $356,975 ($357,000 before wire fees) was credited to Ayers’ Comerica Bank account. After receiving the funds, Ayers arrived at the bank and conducted several transactions from the account to include the purchase of multiple cashier’s checks, the withdrawal of nearly $10,000 in cash and the transfer of $50,000 to another account.
Ayers had provided the bank with a fictitious letter to them purportedly from the company which stated "These funds will be used at your discretion to establish a small office, moving & research expenses and pay outs to families in Texas & Louisiana with Gas & Oil rights on their property." The bank soon suspected the wire was fraudulent and attempted to take action. The wire could not be recalled and Comerica requested Ayers return the funds, to which he refused. He then tried to withdraw the rest of the funds, but because of the fraud alert, the bank was able to freeze the funds.
Ayers is currently in state custody on unrelated charges. He will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Homeland Security Investigations, Asset Identification and Removal Group. Assistant United States Attorney Suzanne Elmilady is prosecuting this case.
Hopi-Tewa Women’s Coalition Receives over $300,000 in Federal Grant Funds to Support Victims of Domestic ViolenceRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $312,608 in grant funds have been awarded to the Hopi -Tewa Women’s Coalition to End Abuse to increase awareness of domestic violence, enhance the response to violence against Indian women, and develop and promote policies and best practices among the tribes. The grant funds were awarded by the Office on Violence Against Women (“OVW”), which is a component of the Department of Justice (“DOJ”).
“This Justice Department grant will fund critical programs to enhance the safety and economic security of the victims of domestic violence in Northern Arizona, which includes the Hopi Reservation and extends over Coconino and Navajo Counties.” said U.S. Attorney Leonardo. “We encourage all agencies to be proactive and apply for future grant funding through our Office on Violence Against Women.”
Information about OVW and its programs can be found at: http://www.justice.gov/ovw.
RELEASE NUMBER: 2015-085_HOPI_TEWA_GRANT (2015-IW-AX-0012)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Hazleton Man Sentenced to 41 Months in Prison for Heroin and Cocaine TraffickingRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old Hazleton resident was sentenced today to serve 41 months in federal prison by Senior U.S. District Court Judge Edwin M. Kosik for participating in a conspiracy to distribute heroin and cocaine.
According to United States Attorney Peter Smith, the defendant, Willy Perez, a citizen of the Dominican Republic, previously pleaded guilty to conspiracy to distribute heroin and cocaine during July through October 2013.
Perez was indicted by a federal grand jury in January 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.
Judge Kosik also ordered Perez to be placed on three years of supervised release following his prison sentence. Perez, a legal resident alien, faces deportation and removal from the United States as a result of this felony conviction.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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Havre Pawn Shop Owner Pleads Guilty to Not Reporting Large TransactionsRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that SHAD JAMES HUSTON, 40, of Havre, Montana, pleaded guilty during a federal court hearing in Great Falls, Montana, on September 17, 2015, before U.S. District Judge Brian M. Morris to ignoring federal reporting requirements when more than $10,000 in currency was transacted in a single transaction. Huston faces a potential penalty of five years in federal prison, a $250,000 fine and three years of supervised release.
Huston operated various businesses, including Leon’s Pawn & Rental, Inc., which did business as Leon’s Buy and Sell in Havre, Montana, and Leon’s Finance, Inc., which did business as Big Sky Pawn in Great Falls, Montana. Because pawn shops and check-cashing businesses conduct a large volume of cash transactions, they must register as Money Service Businesses with the Financial Crimes Enforcement Network (FinCEN), of the U.S. Department of Treasury. FinCEN’s mission is to combat criminal enterprises and money laundering by identifying people and organizations who engage in large cash transactions; those transactions often relate to criminal activity which can be discovered through the collection, analysis, and dissemination of financial intelligence.
In order for FinCEN to track money laundering and other fraud, Huston, as the owner and operator of a money service business, was required to file Currency Transaction Reports (“CTRs”) when cashing checks for customers in excess of $10,000. According to the indictment, Huston cashed checks in excess of $10,000 for Hailey Belcourt, who was previously indicted and convicted for fraud. He also cashed checks in excess of $10,000 for members of the Houle family. Former Tribal Chairman John Chance Houle was sentenced to over five years in federal prison last year for his role in the wide-spread corruption uncovered by the Guardians Project at the Rocky Boy’s Indian Reservation. The indictment identified 19 checks that Huston cashed that should have been reported to the Treasury Department, but were not.
Judge Morris set sentencing for December 16, 2015, at 1:30 p.m. Four more indictments are pending against Huston; those indictments charge16 other felony crimes including bribery, wire fraud, embezzlement, and false claims fraud. The first trial against Huston is set to begin on October 19, 2015, at 8:30 a.m.
Huston’s conviction for failing to file CTRs is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. The Huston case relating to his failure to file CTRs was investigated by the Criminal Investigations Division of the Internal Revenue Service.
Golfer Sentenced for Insider Trading SchemeRead the Press Release
BOSTON – A Waltham man was sentenced today for conspiracy and insider trading in connection with tipping friends and fellow golfers with inside information about the business activities of American Superconductor Corporation (AMSC).
Eric McPhail, 41, was sentenced by U.S. District Court Judge Denise J. Casper to 18 months in prison and two years of supervised release. In June 2015, McPhail was convicted, following a seven-day jury trial, of conspiring to commit securities fraud and securities fraud. McPhail had been indicted in July 2014.
According the evidence presented at trial, starting around July 2009, McPhail, who is a competitive amateur golfer, began giving his friends inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf games at the Oakley Country Club in Watertown and other social outings with a close friend who was a senior executive at AMSC. The executive, however, trusted McPhail to keep the information to himself and was unaware that McPhail was using it to tip his friends.
Over a two-year period spanning July 2009 to April 2011, several of McPhail’s friends repeatedly traded on the inside information. According to evidence presented at trial, McPhail’s tippees successfully traded on material, nonpublic information about AMSC on at least five occasions, making a total of over $500,000 in illicit gains. One of McPhail’s tippees, Douglas Parigian, who is also a competitive amateur golfer, previously pleaded guilty to securities fraud charges in May 2015.
United States Attorney Carmen M. Ortiz; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Paul Levenson, Regional Director of the Securities and Exchange Commission, Boston Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Andrew E. Lelling and Seth B. Kosto of Ortiz’s Economic Crimes Unit.
Four Men Charged with Unlawful Firearm PossessionRead the Press Release
Keith Diante Moore, Jr., age 30, Derek Anthony Hughes-Doby, age 28 Treundes Lydell Howell, age 28, and Cecil Bernard Howell, age 45, have been charged with unlawfully possessing a firearm. The charges are contained in a Complaint filed on September 14, 2015, in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about September 10, 2015, defendants each possessed a Glock .40 caliber pistol while being unlawful users of marijuana. Federal law prohibits users of illegal controlled substances from possessing firearms.
If convicted, each defendant faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
Defendants Keith Diante Moore, Jr., and Treundes Lydell Howell appeared on September 15, 2015, in federal court in Cedar Rapids, and were ordered detained without bond after a detention hearing on September 18, 2015.
Defendants Derek Anthony Hughes-Doby and Cecil Bernard Howell remain fugitives. Anyone with information regarding the whereabouts of Derek Anthony Hughes-Doby or Cecil Bernard Howell is asked to contact the Cedar Rapids Police Department at (319) 286-5491 or Linn County Crime Stoppers at 1-800-CS-CRIME (272-7463).
Derek Anthony Hughes-Doby is a 28-year-old black male, approximately 5 feet, 10 inches tall. He is pictured below:
Cecil Bernard Howell is a 45-year-old black male, approximately 5 feet, 8 inches tall and approximately 195 pounds. He is pictured below:
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Ravi T. Narayan and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, Cedar Rapids Police Department, and the Sixth Judicial District Department of Correctional Services.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-MJ-281.
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Founder of West Suburban Investment Firm Indicted for Embezzling Client Funds in $3.9 Million Fraud SchemeRead the Press Release
CHICAGO — The founding member of a Geneva investment firm used client funds to trade his own stocks and to purchase a yacht and luxury vehicle for himself, according to a federal indictment announced today.
STEPHEN C. BROWERE, the founder and principal of Geneva-based Stephens Capital Management Inc., used the promise of lucrative and guaranteed returns to persuade his clients to purchase $1.66 million in promissory notes in Douglas Capital Corp., located in Lisle. What Browere didn’t reveal was that a relative was the president of Douglas Capital, and that Browere himself had access to Douglas Capital’s lines of credit and ran its day-to-day operations, according to the eight-count indictment returned Wednesday in U.S. District Court in Chicago. Instead of investing the funds as promised to clients in the promissory notes, Browere used the money to perform trades in his own investment portfolio and to cover personal expenses, including the purchase of a yacht and luxury vehicle, the indictment states.
Browere, 56, of Geneva, also obtained the power of attorney on behalf of an elderly client who was infirm and suffering from dementia, according to the indictment. The power of attorney gave Browere access to the client’s cash and property, which were valued at $2.1 million. Browere misappropriated some of this money to purchase four vacant lots in Lisle and to make interest payments to other clients, the indictment states. After the client died, Browere maintained control over the estate and continued to misuse the estate’s assets, according to the indictment.
The indictment charges Browere with eight counts of mail fraud. It seeks forfeiture of the four vacant lots in Lisle, as well as properties in Geneva and elsewhere in Lisle.
An arraignment hearing will be scheduled by the Court at a later date.
The indictment alleges that Browere’s scheme began no later than 2007 and continued until approximately February 2014. Browere initially promised an annual interest return of 8.5% from the promissory notes in Douglas Capital, plus full repayment of the principal at the end of a year or upon expiration of the notes, the indictment states. Browere concealed the scheme by using principal payments from some investors to make interest payments to others, and by mailing phony account statements that inflated the market performance of their portfolios, according to the indictment. Many of the investors pledged their life savings or funds from their qualified retirement plans or individual retirement accounts, the indictment states.
When the elderly client’s money began to diminish, and some clients began requesting reimbursement of their principal investments in Douglas Capital, Browere announced that interest on the notes would be reduced to 2.5% and payment of principal amounts would be delayed until further notice, according to the indictment. In a letter to investors on Aug. 25, 2010, Browere blamed Douglas Capital’s financial problems on the “economic melt down” and the “current banking system and new government rules and regulations that continue to create havoc in this area of the economy,” according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffrey A. Monhart, Director for the Chicago Region of the U.S. Department of Labor - Employee Benefits Security Administration; Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Illinois Secretary of State Jesse White, whose Securities Department participated in the investigation.
Each count of mail fraud carries a maximum sentence of 20 years in prison, a $250,000.00 fine and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
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 government is represented by Assistant United States Attorney Patrick Otlewski.
Indictment
Former Navy Noncommissioned Officer Pleads Guilty to Accepting Bribes While Serving in AfghanistanRead the Press Release
A former Navy noncommissioned officer pleaded guilty today to accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command (Army CID), Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (Air Force OSI).
Donald P. Bunch, 46, of Pace, Florida, pleaded guilty before Senior U.S. District Judge Roger Vinson of the Northern District of Florida to a one-count information charging him with accepting bribes. Sentencing is scheduled to take place on Dec. 8, 2015.
From February to August 2009, Bunch worked as an U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan.
Bunch was responsible for replenishing food and supplies such as rice, beans and clothing at the HA Yard, and for selecting vendors from a pre-determined list to provide the necessary items. In connection with his guilty plea, Bunch admitted that he had been instructed by his predecessor to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered, and Bunch accepted, money for the purpose of influencing his selection of vendors. Bunch admitted that he received a total of approximately $25,000 from the vendors and that, as a result, he secured on their behalf more frequent and lucrative contracts. Bunch also admitted that he sent greeting cards stuffed with proceeds of the bribes to his wife at their residence in Florida, and that they used the money to pay for the construction of a new home.
This case was investigated by the FBI, SIGAR, Army CID, DCIS and Air Force OSI. This case is being prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.
Former Navy Noncommissioned Officer Pleads Guilty to Accepting Bribes While Serving in AfghanistanRead the Press Release
WASHINGTON – A former Navy noncommissioned officer pleaded guilty today to accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command (Army CID), Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (Air Force OSI).
Donald P. Bunch, 46, of Pace, Florida, pleaded guilty before Senior U.S. District Judge Roger Vinson of the Northern District of Florida to a one-count information charging him with accepting bribes. Sentencing is scheduled to take place on Dec. 8, 2015.
From February to August 2009, Bunch worked as an U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan.
Bunch was responsible for replenishing food and supplies such as rice, beans and clothing at the HA Yard, and for selecting vendors from a pre-determined list to provide the necessary items. In connection with his guilty plea, Bunch admitted that he had been instructed by his predecessor to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered, and Bunch accepted, money for the purpose of influencing his selection of vendors. Bunch admitted that he received a total of approximately $25,000 from the vendors and that, as a result, he secured on their behalf more frequent and lucrative contracts. Bunch also admitted that he sent greeting cards stuffed with proceeds of the bribes to his wife at their residence in Florida, and that they used the money to pay for the construction of a new home.
This case was investigated by the FBI, SIGAR, Army CID, DCIS and Air Force OSI. This case is being prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.
15-1140
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Former Middle School Teacher Sentenced for Child PornographyRead the Press Release
Former teacher Brian O. Brannen, age 42, formerly of Albany, Georgia was sentenced September 17, 2015 by the Honorable W. Louis Sands, United States District Judge in Albany, Georgia. Mr. Brannen was sentenced to 78 months imprisonment for possession of child pornography and will be required to register as a sex offender.
On April 3, 2014, a young woman who had been staying with Mr. Brannen reported to law enforcement that she had seen child pornography and other pornographic images on his computer. The Dougherty County Sheriff’s Office executed a search warrant at Mr. Brannen’s apartment and discovered the images of child pornography located in a folder on the desktop computer. These files had names and descriptions that were extremely graphic and correctly identified the files as depictions of child pornography.
While under pretrial supervision, Mr. Brannen was arrested by Dooly County Sheriff’s Office for Terroristic Threats and Acts on September 3, 2014. Based on his arrest, his pretrial bond was revoked. He has remained in custody since that time.
“Child pornography offenses are always disturbing because the child victims are robbed of their innocence and dignity at a tender age,” United States Attorney Michael J. Moore said. “This case is made even worse because Mr. Brannen maintained this material where it was seen by a young woman staying in his home and because he abused the privilege of being allowed to be out on bond awaiting trial. His inability to conform his conduct to what our society rightfully expects certainly warrants the sentence imposed.”
The case was investigated by the Dougherty County Sheriff’s Office together with the Department of Homeland Security. Assistant United States Attorney Jim Crane prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Former Hillsborough County Resident Sentenced to Federal Prison for Role in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Brendan Bolger (41, Chicago, IL) to two years in federal prison for conspiracy to commit bank, wire, and mail fraud. The Court also entered a forfeiture money judgment in the amount of $13,641,197.90, which represents the fraud perpetrated on the mortgage lenders. Bolger pleaded guilty on August 20, 2014.
According to court documents, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County. The new owners of The Arbors then engaged in a plan to convert the complex from rental apartments to condominiums. The developers financed their purchase of The Arbors with a loan from Corus Bank, a financial institution whose deposits were insured by the FDIC. The Corus loan agreement set forth substantial financial penalties for the developers if they failed to satisfy the loan requirements.
Bolger aided the developers in the sale of numerous condominiums at The Arbors through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase condominiums at The Arbors, Bolger created an addendum to the purchase contract that offered buyers various incentives such as rental supplements, money to defray maintenance costs, and a design credit to upgrade the condominium’s amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid a kickback for the amount of the design credit to the buyer from Capital Management’s bank account. In this manner, Bolger and other co-conspirators failed to disclose to both Corus Bank and to the purchasers’ mortgage lenders material facts about the financing of the sale of the condominiums.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
Former Federal Pretrial Services Employee Sentenced to Prison for Violating a Court Order Sealing an IndictmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Michelle Lee Davis, age 38, of Laurel, Maryland today to six months in prison, followed by one year of supervised release which includes six months of home confinement, for criminal contempt.
The sentence 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; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
Davis was an employee of the U.S. Probation and Pretrial Services for the District of Maryland from February 1998 to October 2014. In recent years, including in April 2014, Davis served as an administrative technician with the Pretrial Services office in Greenbelt, in which she conducted record and criminal history checks of new defendants, scheduled initial appearances with a U.S. magistrate judge, and opened and closed files related to defendants on pretrial release.
According to her plea agreement, on March 24, 2014 a magistrate judge ordered the sealing of an indictment that charged two defendants with a drug conspiracy. The initial appearance of one of the charged defendants was held on April 15, 2014, at which time Davis learned of the defendant’s identity. Davis did not disclose to her supervisors or colleagues that she knew the defendant. During two telephone conversations that day, Davis disobeyed the court order sealing the indictment by disclosing the existence and details of the sealed indictment and the identity of the defendant charged in the sealed indictment, to an acquaintance of Davis and the defendant.
United States Attorney Rod J. Rosenstein commended the FBI and DEA for their work in the investigation. Mr. Rosenstein praised the U.S. Probation and Pretrial Services for their assistance in the investigation, and thanked Assistant U.S. Attorneys Kelly O. Hayes and Arun G. Rao, who prosecuted the case.
Former Clerk at Cook County Recorder of Deeds Indicted for Accepting Cash Bribe in Exchange for Preparing Fraudulent Real Estate DeedRead the Press Release
CHICAGO — A former clerk for the Cook County Recorder of Deeds accepted a $200 cash bribe in exchange for preparing and agreeing to record a back-dated deed on an Oak Park home, according to a federal indictment announced today.
REGINA TAYLOR accepted the bribe from an individual who purportedly wanted to add a relative’s name to the deed of a residence in Oak Park, according to the indictment. Unbeknownst to Taylor, the individual was actually an undercover law enforcement agent, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Taylor, 59, of Chicago, with one count of mail fraud and two counts of wire fraud. Taylor will be arraigned before U.S. District Judge Sara L. Ellis on Sept. 24, 2015, at 10:00 a.m.
According to the indictment, Taylor offered and agreed to prepare a false quit claim deed that added the purported relative to the deed of the Oak Park property, which was allegedly owned by three deceased individuals. Taylor told the undercover agent that she usually charges $500 to prepare and record the fraudulent documents, but that in this instance she was willing to charge only $200, the indictment states.
Taylor directed the undercover agent not to tell anyone that the other individuals on the deed were deceased, according to the indictment. She then prepared a fraudulent quit claim deed and back-dated it by 18 months, confirming the purported relative as a grantee. After giving the fraudulent quit claim deed to the undercover agent to get stamped at the Village of Oak Park, the undercover agent gave Taylor $200 in cash, according to the indictment. Taylor further directed the undercover agent to bring back the stamped copy of the fraudulent deed so that Taylor could file it at the Office of the Cook County Recorder of Deeds, according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The mail fraud charge carries a maximum sentence of 20 years in prison, a $250,000.00 fine and mandatory restitution. Each count of wire fraud is punishable by a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
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 government is represented by Assistant United States Attorney Megan Church.
Indictment
Five Southern Illinois Residents Charged with Crack Cocaine OffenseRead the Press Release
Five southern Illinois residents were indicted on September 8, 2015, in a one-count superseding indictment, charging conspiracy to distribute 28 grams or more of crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Keenon J. Farr, a/k/a "Keeno," 32, Roderick L. McClain, a/k/a "Big Bama," 30, and Jeffery L. Cain, a/k/a "Fatz," 35, all of Carbondale, Tommy T. Langston, a/k/a "G," 35, of Herrin, and Tammy R. Whitton, 45, of Mt. Vernon, are charged with conspiracy to distribute 28 grams or more of crack cocaine. The indictment alleges that the offense occurred between October 2014 and July 2015, in Williamson and Jackson Counties. Farr and McClain made their initial appearances in federal court in Benton on September 17, 2015. They are currently being held without bond pending a September 22, 2015, detention hearing. Cain, Langston, and Whitton have previously made court appearances and are being held without bond pending a November 14, 2015, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the crack cocaine offense carries a penalty of a minimum of 5 years to a maximum of 40 years in federal prison, to be followed by 3 years’ supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Federal Penalty for Swampscott Water PollutionRead the Press Release
BOSTON – The Town of Swampscott entered into a Consent Decree today agreeing to pay a $65,000 civil penalty and to take critical remedial measures to address pollution the Town discharged into the ocean near local beaches.
The Consent Decree is the result of a federal enforcement action brought by the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA). The complaint filed simultaneously with the Consent Decree alleges that Swampscott discharged pollutants into its storm water drainage system in violation of its permits.
“By entering this Consent Decree, Swampscott will take the steps necessary to stop pollutants from entering Massachusetts and Nahant Bays,” said United States Attorney Carmen M. Ortiz. “Swampscott is required to locate the source of all unauthorized discharges that enter its storm drains and eliminate them. Successful implementation of the Consent Decree will result in cleaner storm water system discharges and a healthier environmental for all.”
“Under this settlement, the Town will continue to work cooperatively toward controlling contaminated storm water reaching beaches,” said Curt Spalding, Regional Administrator of the EPA’s New England office. “The Town has made improvements in recent years, and we expect that progress to continue.”
Between 2010 and 2012, the EPA tested multiple water samples from the Town’s storm water outfalls and found that the Town was discharging multiple pollutants into waters of the Massachusetts and Nahant Bays. These pollutants included e. coli, enterococcus bacteria, ammonia, and pharmaceutical and personal care products. The Town continues to discharge untreated wastewater containing sewage and other pollutants from its systems into these waters.
The Consent Decree imposes a schedule for the Town to screen and monitor its storm water outfalls during dry and wet weather. Where pollutants are found, the Town must eliminate the flows conveying the pollutants. In addition, the Town must take action to control runoff from land redevelopment projects.
The Consent Decree also assesses a $65,000 civil penalty against the Town for its Clean Water Act violations. Swampscott is subject to vigorous reporting requirements to ensure compliance with the terms of the Consent Decree. If it fails to comply, it may be subject to additional penalties as high as $2,500 per each day of violation.
Preventing pollutants from contaminating surface waters of the United States is one of the EPA’s National Enforcement Initiatives. Municipal wastewater presents significant health threats to those using contaminated waters for recreational use.
The Consent Decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the Consent Decree will be available on the Justice Department website at http://www.justice.gov/enrd/Consent_Decrees.html.
U.S. Attorney Ortiz and EPA Regional Administrator Spalding, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Susan M. Poswistilo of Ortiz’s Civil Division, Senior Attorney Michael Wagner of the EPA, and the Department of Justice’s Environmental and Natural Resources Division.
Federal Indictment Charges 16 with Narcotics Conspiracy Operating in Swain, Cherokee & Surrounding CountiesRead the Press Release
ASHEVILLE, N.C. – A federal criminal indictment unsealed today in Asheville charges 16 men and women with narcotics conspiracy operating in Swain, Cherokee and surrounding counties, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Of the 16 defendants named in the indictment, 15 have been arrested by law enforcement. The indictment is the result of a joint federal, state and local investigation, targeting the distribution of methamphetamine in Western North Carolina.
Acting U.S. Attorney Rose is joined in making today’s announcement with Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Charles Addington, Deputy Associate Director of the Bureau of Indian Affairs, Division of Drug Enforcement; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Christopher Kuvlesky, Assistant Special Agent in Charge, Atlantic Field Office, National Park Service, Investigative Services Branch; Colonel William J. Grey, Commander of the North Carolina State Highway Patrol; Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office; Chief Ben Reed of the Cherokee Indian Police Department; Sheriff Robert L. Holland of the Macon County Sheriff’s Office; and Sheriff Danny Millsaps of the Graham County Sheriff’s Office.
In announcing the charges, Acting U.S. Attorney Rose said, “Drug dealers think they can operate under the radar in smaller, rural areas, and evade detection. They are wrong. We will partner with law enforcement agencies throughout Western North Carolina to protect all communities, large and small, and crackdown on drug traffickers that threaten the safety and well-being of the people living there.”
“The success of this investigation speaks to the continued dedication between our local, state and federal law enforcement partners in targeting and dismantling meth distribution rings that profit by spreading their poison in our communities. Strong partnerships such as this one underscore the power of our combined forces and demonstrate our collective impact on the war against meth,” said Special Agent in Charge Salter, with DEA’s Atlanta Field Division.
All defendants are charged with one count of engaging in a conspiracy to distribute and to possess with the intent to distribute methamphetamine, with some facing additional drug and firearms violations.(Please see the attached chart for a list of all charges and penalties for each defendant). The 16 charged are:
- James Dee Ball, 36, of Bryson City, N.C. (arrested)
- Kelsie Marie Burch, 23, of Sylva, N.C. (not arrested yet)
- Theresa Lorene Burns, 55, of Bryson City. (arrested)
- Anna Marie Postell Cochran, 21, of Bryson City. (arrested)
- Thomas Bart Cochran, 35, of Bryson City. (arrested)
- Jeremiah Jerome Gibby, 35, of Bryson City. (arrested)
- Hoke Benjamin Caleb Hayes, 24, of Hoschton, Georgia. (arrested in Georgia)
- Bryan Keith Jenkins, 35, of Robbinsville, N.C. (in state custody)
- Ray Chad Lequire, 34, of Bryson City. (arrested)
- Amanda Brooke McKinney, 34, of Bryson City. (arrested)
- Miranda Nations, 21, of Bryson City. (arrested)
- Tammie Lynn Payne, 44, of Waynesville, N.C. (arrested)
- Brandi Lynn Smith, 30, of Cleveland, Georgia. (arrested)
- Gregory Daniel Steedly, 48, of Lawrenceville, Georgia. (arrested in Georgia)
- Cain Hamilton Strickland, 34, of Atlanta, Georgia. (in state custody)
- Sebern Todd Wyatt, 50, of Bryson City. (arrested)
According to allegations contained in the indictment, from about April 2013 to about July 2015, in Cherokee, Haywood, Jackson, Macon, and Swain Counties, the defendants conspired with each other to distribute and to possess with intent to distribute methamphetamine. According to court records and statements made in court, over the course of the investigation law enforcement recovered more than three pounds of methamphetamine, drug paraphernalia, approximately $43,000 in cash, 11 firearms, including semi-automatic pistols and rifles, and ammunition.
All defendants named in the indictment are in currently in custody, except Kelsie Marie Burch, who remains a fugitive.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until they have been proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Rose thanked all the law enforcement agencies involved in this investigation for their continued cooperation and assistance. The case is being prosecuted by Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville.
FCI-Greenville Inmate Sentenced for Possession of Contraband by A Federal InmateRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 18, 2015, Anthony Johnson, 25, was sentenced on a one- count indictment charging him with Possession of Contraband by a Federal Inmate. Johnson was an inmate at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, at the time the offense was committed. Johnson was sentenced to a term of 28 months’ imprisonment, which must be served consecutively to his current sentence, 3 years’ supervised release, fined $100, and ordered to pay a $100 special assessment. Johnson has been held without bond since his arraignment on May 12, 2015.
The charge arose when, on September 28, 2014, an officer monitoring the visiting room at FCI-Greenville observed the defendant swallow an unknown object. Based on this behavior, the defendant was immediately placed in a dry cell after his visit ended so that his bowel movements could be monitored. On October 1, 2014, the defendant defecated out one (1) balloon which contained a white powdery substance, later determined to be heroin. Federal inmates are prohibited from possessing heroin.
The case was investigated by the Bureau of Prisons’ Special Investigation Section. The case was assigned to Assistant United States Attorney Angela Scott.
Essex County, New Jersey, Woman Admits Participating in Stolen Identity Refund Fraud SchemeRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey, woman today admitted that she conspired to obtain more than $1 million through fraudulently generated refund checks issued by the U.S. Treasury, U.S. Attorney Paul J. Fishman announced.
Marie Poitevien, 53, of Orange, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging her with conspiring to steal government funds.
Background on Stolen Identify Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals.
- SIRF perpetrators complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund.
- They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access.
- With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control.
According to documents filed in this case and statements made in court:
From October 2009 through June 2013, Poitevien participated in a scheme by which her conspirators made fraudulent tax refund applications and had the U.S. Treasury send the refund checks to Poitevien’s residence. Poitevien then negotiated the checks by depositing them into her personal bank account and withdrawing the funds. Poitevien admitted cashing 298 tax refund checks, made payable to 139 different victims, and totaling $1,101,689.
The count of conspiracy to steal government funds to which Poitevien pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the pecuniary gain or loss from the offense. Sentencing is scheduled for Dec. 17, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Linda Foster Esq. Assistant Federal Public Defender, Trenton
Employee Admits Stealing at Least $414,000 from the Bethesda Company Where She WorkedRead the Press Release
Greenbelt, Maryland – Amy Ranee Powell, age 41, of Huntingtown, Maryland pleaded guilty today to interstate transportation of stolen money in connection with a scheme to embezzle over $414,000 from her employer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief J. Thomas Manger of the Montgomery County Police Department.
According to Powell’s plea agreement, from 2003 through 2013 Powell was a trusted employee of an architectural firm in Bethesda, Maryland, whose duties included bookkeeping and office management. As part of her responsibilities, Powell wrote checks linked to the company’s bank account to pay the company’s bills. The company’s owner endorsed the number of blank checks needed to pay the bills, and then gave the checks to Powell to be completed.
Powell admitted that from December 2010 through September 2013, she wrote at least 82 unauthorized checks from the company’s account, payable to herself. The checks ranged in amount from $500 to $8,000, and totaled approximately $420,444.42. Powell transported at least 16 unauthorized company checks, totaling $80,546.55, from the company’s office in Bethesda to her bank in Springfield, Virginia, where she deposited the checks into her bank account. When the fraud was discovered in September 2013, Powell’s bank returned $6,322.40 to the company for an unauthorized check Powell deposited on September 5, 2013.
Powell admitted that she diverted at least $414,122.02 from the company’s bank account and deposited those funds into her own bank account.
As part of her plea agreement, Powell has agreed to the entry of a restitution order in the full amount of the victim’s losses, which is at least $414,122.02. In addition, Powell will be required to forfeit any assets traceable to her offense, substitute assets, and/or a money judgment equal to the value of the property involved in the offense.
Powell faces a maximum sentence of 10 years in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 6, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the Montgomery County Police Department, Financial Crimes Section for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Jennifer L. Wine and Assistant U.S. Attorney Sujit M. Raman, who are prosecuting the case.
Eglin Air Force Base Civilian Contractor Sentenced to Prison for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – John Wesley Sirmans, 61, of Niceville, Florida, was sentenced to 84 months in prison today for receipt of child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Sirmans was a civilian contractor at Eglin Air Force Base, who accessed child pornography images through the internet using his work computer. During his guilty plea on March 31, 2015, Sirmans admitted that, between June and December 2014, he knowingly received child pornography images through the internet as charged in the Indictment. In total, Sirmans had more than 800 images of child pornography located in his office on Eglin Air Force Base, including many images of children under the age of 12.
The charges were the result of a joint investigation by the Walton County Sheriff’s Office, the Air Force Office of Special Investigation, and the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Jeffrey Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854,
Depew Man Sentenced on Child Pornography ChargeRead 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 Mark Newman, 56, of Depew, NY, who was convicted of possession of child pornography, was sentenced to 10 years in prison and 15 years supervised release by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that during this investigation, the Government determined that Newman engaged in a pattern of sexual abuse of a minor. In addition, on September 26, 2012, a search warrant was executed at the defendant's residence. Items seized from Newman’s residence that contained child pornography included a Toshiba laptop computer. A forensic analysis uncovered approximately 300 videos of child pornography stored on the computer. Some of the images depicted prepubescent minors or minors less than 12 years of age, as well as images of violence.
The sentencing is the result of an investigation on the part of Agents of the Federal Bureau of Investigation.
Department of Defense Employee Sentenced to over Three Years in Prison for Fraudulently Obtaining over $750,000 from Contracts with Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Mark Nixon, age 54, of Silver Spring, Maryland, today to 42 months in prison, followed by three years of supervised release, for conspiring to defraud the United States by steering federal contracts to a company in which he secretly held a financial interest. Judge Garbis also entered an order requiring Nixon to pay restitution of $750,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL). From 2008 to December 2010, Nixon was the Director of Vehicle Technology Directorate with ARL at Aberdeen Proving Ground. He was married to Sandra Nixon.
The Nixons had a financial interest and management role in the operation of the following companies: Motile Robotics, Inc. (MRI), located in Joppa, Maryland; Atlantic Capital Enterprises (ACE); and Arrow Technical Incorporated (ATI).
Mark and Sandra Nixon, along with Kenneth Dawson, created and operated MRI. Dawson had full time employment with two defense contractors at Eglin Air Force Base in Florida, where he lived. In 2007, Dawson used his personal credit cards to pay for startup costs associated with MRI, and the Nixons reimbursed Dawson for these expenses. Although Dawson was the supposed president of MRI, in reality, Mark and Sandra Nixon created MRI, provided significant input regarding its operation, and were in effect silent and undisclosed partners, owners and co-presidents. They helped operate MRI using the aliases “Paul Martin” and “Lisa Hart” in order to conceal their financial interest.
According to the plea agreements, in 2008, Mark Nixon created and approved government documents that caused ARL to fund micro propulsion and wind tunnel research, including the fabrication of a small open-jet wind tunnel. Mark Nixon was designated as the team leader for ARL on the research project.
Beginning in February 2008, the United States awarded a large defense contractor a task order, worth approximately $3.6 million, to construct the open flow wind tunnel. Mark Nixon persuaded the defense contractor to use MRI as a subcontractor. Mark Nixon also played an important role in the government awarding the defense contractor another task order to construct a closed circuit wind tunnel, for approximately $3.5 million, under which MRI was again a subcontractor. Mark Nixon provided the contracting officer with a technical evaluation of the contract and its cost, and acted as the government official overseeing and managing this work on a routine basis.
Although Nixon knew that he had a prohibited financial interest in MRI, he conducted a technical evaluation of MRI’s capabilities as a subcontractor, and approved invoices listing false labor and materials charges. These included more than $35,000 in false labor charges submitted for a relative of Sandra Nixon, who was characterized as an aerospace engineer. In fact, the relative was a retired school employee.
MRI received more than $5 million in federal funds under these subcontracts. Mark Nixon caused MRI to pay money to Arrow Technical, and Arrow Technical to pay Atlantic Capital, both companies in which the Nixons had a financial interest. The Nixons and Dawson personally benefited from over $750,000 sent to these companies.
Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, and Kenneth Dawson, age 52, of Niceville, Florida, previously pleaded guilty to conspiring to defraud the United States. Judge Garbis has scheduled sentencing for Sandra Nixon on October 2, 2015 at 9:30 a.m. and for Kenneth Dawson on October 30, 2015 at 10:00 a.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit, DCIS and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and P. Michael Cunningham, who are prosecuting the case.
Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Eight North Texas residents who were convicted for their respective roles in a methamphetamine distribution conspiracy that operated in North Texas and elsewhere have been sentenced to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Irineo Ramos, 32, was sentenced by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison. He pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Four co-defendants also pleaded guilty to that offense and were sentenced earlier as follows:
Juan Carlos Cruz, a/k/a Cruzito, 28, 120 months in federal prison
Carlos Wences Castaneda, a/k/a Chaco, 38, 235 months in federal prison
Pablo Ramirez Gallegos, a/k/a Primo, 28, 44 months in federal prison
Ismael Perez, a/k/a Gordo, 26, 41 months in federal prison
Bernardo Rodriguez Martinez, a/k/a Pamo, 27, and Martin Rodriguez Martinez, a/k/a Chivo, 34, each pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine and conspiracy to commit money laundering. Each was sentenced to 240 months in federal prison.
Monica Lemus, 32, was sentenced to 27 months in federal prison for conspiracy to commit money laundering.
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation involved multiple undercover methamphetamine purchases and the seizure of approximately $77,000 in U.S. currency, 18 firearms, 12 kilograms of Ice, 1.5 gallon liquid Ice, 537.7 grams of heroin and three conversion labs.
Bernardo Rodriguez Martinez and Martin Rodriguez Martinez used individuals to deposit money from the methamphetamine sales into various bank accounts in the U.S. In fact, from May 3, 2013, to September 9, 2013, approximately $296,321 in drug proceeds was deposited into various accounts in the Dallas area. Some of the money was sent to Mexico, via wire transfers and couriers, to ensure the supply of methamphetamine continued.
The FBI, IRS Criminal Investigation, Dallas Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Drug Enforcement Administration investigated. Assistant U.S. Attorney George Leal prosecuted.
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DOJ Awards Nearly $500,000 to Combat Gun Crime in SeattleRead the Press Release
The U.S. Department of Justice today awarded nearly $500,000 in federal grant money for an innovative program to reduce gun violence in Seattle, announced U.S. Attorney Annette L. Hayes. The grant, under the Project Safe Neighborhood (PSN) program supports the Puget Sound Regional Crime Gun Task Force, which is focused on increasing the ability of law enforcement to trace shell casings and firearms used in crimes and thus identify shooters and take them off the streets. The grant will also pay part of the costs for a Special Assistant United States Attorney to prosecute gun crimes, and provides funding to Harborview Medical Center to work with gunshot victims in an innovative hospital-based intervention and structured outreach program to prevent future firearm-related crime.
“Research led by Harborview Injury Prevention & Research Center shows that individuals admitted to the hospital for gunshot wounds are at a significantly higher risk of being killed, arrested or reinjured with a gun in the five years following admission,” said U.S. Attorney Annette L. Hayes. “This grant not only helps law enforcement identify and prosecute those who are involved in gun crime, it works to help stop the cycle of violence by intervening with high-risk individuals.”
“The Project Safe Neighborhood program has allowed us to create a successful partnership among state and federal prosecutors, and law enforcement agencies, to combat and decrease gun violence in our region by identifying the worst of the worst firearms and violent offenders in our state’s largest county,” said King County Prosecuting Attorney Dan Satterberg.
The grant will make it possible for all crime gun information to be entered into the National Integrated Ballistic Information Network (NIBIN) database within 72 hours of an incident. NIBIN is administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and provides federal, state and local law enforcement, forensic scientists, and prosecutorial agencies with an automated ballistic imaging system that aids investigations by using digital images of shell casings to link crimes involving firearms. By connecting cases involving the same firearm more efficiently and effectively, NIBIN can have a direct impact on solving violent crime. The grant allocates $50,000 to eliminate a backlog of more than 5000 shell casings in Western Washington waiting to be tested.
“Thorough analysis of forensic evidence is a vital component of our ongoing efforts to curb gun violence in our community,” said Seattle Police Chief Kathleen O’Toole. “This grant will help fund our collaborative partnership with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Washington State Patrol Crime Lab to trace all spent shell casings found at crime scenes.”
In addition, the grant helps support the salary of a Senior Deputy King County Prosecutor who is specially designated to prosecute firearms cases in federal court. This prosecutor reviews all firearms cases filed in King County to evaluate whether they are appropriate for federal prosecution and the supervised release that follows the prison term. The grant also supports the FACE program (Firearms Crimes Enhancement Program) which informs soon to be released state offenders of the potential federal penalties for possessing a firearm.
Finally, the grant funding provides for anti-violence initiatives in the community and with groups identified as at high risk for involvement in gun violence. Nearly $40,000 is targeted for the Seattle Police Department to develop a strategic plan for addressing gang violence. Over two years, more than $50,000 will fund research and outreach at Harborview’s Injury Prevention & Research Center in an innovative program to work with gunshot victims to prevent future firearms related injury. An additional $30,000 is allocated for media outreach addressing gun violence and approximately $100,000 is set aside for academic study and review of the funded programs to determine the level of effectiveness of the grant-supported strategies.
“Our communal sense of safety has been shaken by recent national and local episodes of gun violence,” said UW Medicine’s Dr. Monica Vavilala, director, Harborview Injury Prevention & Research Center. “Most firearm violence is preventable and the grant funding will allow us to address key causes of gun violence and lay the groundwork for developing programs that work to reduce firearm related injuries.”
Special Agent in Charge Douglas Dawson of the ATF Seattle Field Division said “I am excited about the Project Safe Neighborhood funding and I look forward to working with our Federal, State and Local partners in our continual efforts towards the reduction of violent crime in the Western District of Washington.”
DNA People’s Legal Services Receives $400,000 in Federal Grant Funds to Support Victims of Domestic ViolenceRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $400,000 in grant funds have been awarded to the DNA People’s Services to continue providing legal services, case evaluation, and representation to low-income victims. The grant funds were awarded by the Office on Violence Against Women (“OVW”), which is a component of the Department of Justice (“DOJ”).
“This funding will provide important, comprehensive legal services in support of victims of sexual assault, domestic violence, dating violence and stalking in and around the Navajo Nation.” said U.S. Attorney Leonardo. “We encourage all agencies to be proactive and apply for future grant funding through our Office on Violence Against Women.”
Information about OVW and its programs can be found at: http://www.justice.gov/ovw.
RELEASE NUMBER: 2015-083_DNA_PEOPLES_LEGAL_SVCS GRANT (2015-WL-AX-0031)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Chairman McCaul Sponsors 2015 Congressional Open ForumRead the Press Release
On September 17, 2015 INTERPOL Washington, the U.S. National Central Bureau (USNCB), held its third Congressional Open Forum in the Rayburn House Office Building. The forum was attended by many Congressional staffers as well as some INTERPOL Washington staff. These events are intended to educate staffers and members of Congress about what INTERPOL Washington is and how the agency functions. They are incredibly important for building and maintaining relationships between INTERPOL Washington and Congress as well as helping new staff to learn key facts about the agency and dispel any misconceptions that they may have.
This Congressional Open Forum was sponsored by Congressman Michael McCaul (R-TX-10), the Chairman of the House Homeland Security Committee. The Chairman opened the forum by taking time to explain how INTERPOL Washington fits into the current climate of politics and international current events and then briefly took questions from the audience. The Chairman specifically touched on the refugee crisis in the European Union and the expanding role that INTERPOL Washington could take in helping to screen any refugees who come to the United States.
The audience received an extensive INTERPOL 101 presentation and then the discussion was opened to the panel of experts who took questions from the audience. The panel included Director Shawn Bray, Deputy Director Geoff Shank, Senior Advisor to the Director Skip Sigmon, Principal Policy Advisor Wayne Salzgaber, General Counsel Kevin Smith, and Assistant Director Royce Walters. The panelists discussed the expanding Stolen and Lost Travel Document program (SLTD) and the role INTERPOL Washington plays in tracking and apprehending Foreign Terrorist Fighters.
The INTERPOL Washington Congressional Open Forum was a fantastic opportunity for all those involved and another success for the agency. The agency would like to take this opportunity to publicly thank all of those who attended the event or contributed to its success in any way.
Calumet Township Level II Assessor, Pamela Frizzelle, IndictedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that an Indictment was filed against Pamela Griffin Frizzelle, 52, of Merrillville, Indiana for seven counts of Hobbs Act Extortion.
According to documents filed in the case, Frizzelle, an employee of the Township Assessor’s Office, allegedly solicited money from business owners, who’s businesses engaged in interstate commerce, in exchange for reducing or attempting to reduce tax assessments on or about the following dates: March 2013 from Business Owner 1 for $1000; February 2014 from Business Owner 2 for $200; February 2014 from Business Owner 3 for $600; October 14, 2014 from Business Owner 2 for $400; October 23, 2014 from Business Owner 2 for $200 on behalf of Business Owner 4; October 24, 2014 from Business Owner 4 for $600; and January 25, 2015 from Business Owner 5 for $1000.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gary T. Bell.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Buffalo Man Pleads Guilty to Food Stamp FraudRead 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 Alie Hassan, 29, of Buffalo, NY, pleaded guilty food stamp fraud, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that Hassan owned and operated the Broadway Mart & Deli located at 1358 Broadway Street in Buffalo. From April 2011 to August 30, 2012, the defendant knowingly purchased food stamp benefits for less than their full value for cash.
The plea is the result of an investigation by Special Agents of the U.S. Department of Agriculture.
Sentencing is scheduled for January 13, 2015 at 2:00 p.m. before Judge Wolford.
Brookyln Resident Indicted for Sex Trafficking MinorsRead the Press Release
Yesterday, a 12-count superseding indictment was unsealed in federal court in Brooklyn charging Alvaun Thompson, also known as “LP,” “Love Pimpin,” “Legit Pimp” and “AT,” with three counts of child sex trafficking, one count of production of child pornography, and various other prostitution-related offenses. The defendant’s arraignment is scheduled for Monday, September 21, 2015, before United States District Judge I. Leo Glasser.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and William J. Bratton, Commissioner, New York City Police Department.
As alleged, from 2013 until his arrest in January 2015, the defendant recruited and enticed two minor victims to engage in prostitution and commercial sex acts. One of Thompson’s victims was 13 years old when he began exploiting her through commercial sex. While inducing one minor victim to engage in sexually explicit activity, the defendant used his cell phone to create a pornographic video recording of the minor. The defendant regularly promoted and managed his prostitution business over the Internet and on two occasions transported his victims to other States intending for them to engage in prostitutions.
“As alleged, the defendant sexually exploited vulnerable minor victims for profit,” stated Acting United States Attorney Currie. “We will aggressively investigate and prosecute those who would sexually exploit our children.”
FBI Assistant Director-in-Charge Rodriguez stated, "The sexual exploitation of children promotes the practice of inducting innocent victims into a life of prostitution and trapping them in a life of misery. This is an epidemic that is spreading rapidly throughout the nation, and the migratory nature of these crimes makes it critical for the FBI and our law enforcement entities to work together to tackle this widespread problem."
“There is no place in our city for the abuse of minors, particularly when the crime is sexual in nature. I commend the work of the NYPD investigators, FBI agents, and the prosecutors of the U.S. Attorney’s Office for the Eastern District of New York who have tirelessly pursued this case,” said Police Commissioner Bratton.
If convicted, the defendant faces a mandatory minimum term of 15 years imprisonment and a maximum sentence of life imprisonment. The charges in the indictment are merely allegations, and the defendants is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s General Crimes Section. Assistant United States Attorneys Matthew J. Jacobs and Jennifer S. Carapiet are in charge of the prosecution.
The Defendant:
Alvaun Thompson
Age: 28
E.D.N.Y. Docket No. 15-CR-80 (ILG)
Bridgeport Man Sentenced to 6 Years in Prison for Participating in Drug Robbery SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TREVOR PIERCE, 30, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 72 months of imprisonment, followed by five years of supervised release, for planning to conduct an armed robbery of narcotics stash house.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, in March 2014, the ATF began an investigation into Carlos “Camby” Colon and Carlos “Joel” Colon, who were known narcotics and firearm traffickers in Bridgeport. Law enforcement also had received information that Joel Colon was interested committing an armed robbery of a drug dealer. During the investigation, which employed the use of an ATF agent working in an undercover capacity, the Colons recruited PIERCE and others to commit an armed robbery of what they believed to be a narcotics stash house of 15 kilograms of cocaine.
On April 11, 2014, Pierce, the Colons, Humberto Soto, Markus Mendez, Nelson Diaz and Hiram “Gringo” Mojica gathered at a location in Stamford where they believed they would be informed of the address of the narcotics stash house, and would then travel to the stash house to conduct the robbery. All seven were arrested at that time. A search of the car that PIERCE, Diaz and Mojica drove to the location revealed a loaded .40 caliber pistol, an EO Tech sight, black gloves, as well as two rolls of duct tape that Diaz had recently purchased. A search of the center console of the vehicle that Soto and Mendez drove to the meet location revealed a loaded and 9mm pistol.
PIERCE has been detained since April 11, 2014. On March 10, 2015, he pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of use of a firearm in furtherance of a crime of violence.
PIERCE’s criminal history includes state convictions for robbery, sexual assault, assault and breach of peace.
Camby Colon, Joel Colon, Soto, Diaz, Mendez and Mojica have also pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
Armed Robbers ConvictedRead the Press Release
Three individuals were convicted in federal court for committing armed robberies in Miami, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), made the announcement.
Jesse Foots, 24, of Miami, was convicted on September 11, 2015, of one count of participating in a Hobbs Act robbery conspiracy, two counts of participating in a Hobbs Act robbery, and two counts of brandishing a firearm during a crime of violence, following a four day jury trial before United States District Court Judge Cecilia M. Altonaga.
According to evidence presented at trial, on February 26, 2015, Foots and his co-conspirator, Dario Pinson robbed a Miami-Dade County MetroPCS and a Pizza Hut establishment. During the course of the robbery, Foots struck a victim with a firearm and held customers and employees at gunpoint. Foots faces a statutory mandatory minimum of 32 years to life in prison. Sentencing is scheduled for November 19, 2015.
Dario Pinson, 19, of Atlanta, Georgia, previously pled guilty to participating in the robbery conspiracy with defendant Foots. Pinson and co-conspirator Kendrick Belfon, 18, of Miami, pled guilty to a separate armed robbery conspiracy which occurred on February 24, 2015. Pinson was sentenced to 35 years in prison for his criminal conduct. Belfon was sentenced to 10 years in prison.
Mr. Ferrer commended the collaborative investigative efforts of the ATF Miami Field Office/MDPD Street Terror Offender Program, FBI Miami Field Office’s Multi-Agency Violent Crimes Task Force, MDPD’s Robbery Bureau, Miami Shores Police Department, Plantation Police Department, Pembroke Pines Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Davie Police Department, and Miramar Police Department. Mr. Ferrer also thanked the Crisp County Sheriff’s Office, Riverdale Police Department, Clayton County Police Department and Coweta County Sheriff’s Office, in Georgia, for their assistance. The cases are being prosecuted by Assistant United States Attorneys for the Southern District of Florida.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Amarillo Man Sentenced to 135 Months in Federal Prison on Attempted Child Sex Trafficking ConvictionRead the Press Release
AMARILLO, Texas — An Amarillo man, Deswan Newsome, 19, who pleaded guilty in July 2015 to an indictment charging one count of attempted sex trafficking of a child was sentenced today by U.S. District Judge Mary Lou Robinson to 135 months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to plea documents filed in the case, Newsome admitted that from approximately March 30, 2015 to April 3, 2015, he attempted to recruit a 15-year-old girl to engage in commercial sex acts.
The investigation began when a Task Force Officer (TFO) with U.S .Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) learned that a particular individual was using Facebook to recruit and entice teenage females for prostitution. In March 2015, the TFO set up an undercover Facebook account representing himself as a 15-year-old female, “A.M.,” and the two exchanged messages about A.M. working as a prostitute, with the individual claiming, “You can make 2500 in a week if you really put the work into it.” The individual sent A.M. his phone number and the two discussed a meeting, however the conversation ended without any arrangements being made.
On April 1, 2015, the TFO (A.M.) received a private message on his undercover Facebook account from “Deswan Newsome,” later identified as defendant Newsome. Newsome and A.M. exchanged messages about A.M. engaging in prostitution, and A.M. advised Newsome that she was 15-years-old.
On April 2, 2015, an Amarillo Police Department officer, posing as A.M., made a phone call to Newsome, who answered, but then turned the call over to a female who provided more details about prostitution to A.M. A.M. advised this female that she was 15-years-old.
On April 3, 2015, A.M. and Newsome exchanged messages and arranged to meet at a convenience store in Amarillo so A.M. could engage in prostitution. When Newsome arrived at the location, he was identified and taken into custody. Newsome admitted talking to A.M. on Facebook and said that he was going to have someone else teach her how to perform sex acts, and that he’d get 60 percent of the money she made for performing the commercial sex acts.
The Amarillo Police Department and HSI investigated. Assistant U.S. Attorneys Timothy Hammer and Joshua Frausto prosecuted.
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Thursday 17 September 2015
Zacharia Abdurahman Pleads Guilty to Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney Andrew M. Luger, Assistant Attorney General John P. Carlin and FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton today announced the guilty plea of ZACHARIA YUSUF ABDURAHMAN, 20, who conspired with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. MUSSE was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. ABDURAHMAN pleaded guilty today before Senior U.S. District Judge Michael Davis in United States District Court in Minneapolis, Minn.
“Zacharia Abdurahman is the third co-conspirator to plead guilty and admit in detail his longstanding efforts to join ISIL,” said U.S. Attorney Luger. “Despite being stopped by federal agents on his first attempt, Abdurahman continued to seek ways to join this terrorist group. We hope that Abdurahman’s guilty plea today, and those of Hanad Musse and Abdullahi Yusuf before him, deter others from planning to join ISIL.”
“Zacharia Yusuf Abdurahman conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we remain committed to stemming the flow of foreign fighters abroad and bringing to justice those who attempt to provide material support to terrorists.”
“The FBI will continue to fight terrorism recruitment and material support with every available resource,” said Special Agent in Charge Thornton. “We stand alongside our Somali community partners in Minnesota to prevent terror groups from targeting their youth.”
As admitted by the defendant in his guilty plea, between March and June 2014, ABDURAHMAN became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. ABDURAHMAN joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement, and the feasibility of using fraudulent travel documents to travel to Syria.
As admitted by the defendant in his guilty plea, by June 2014, ABDURAHMAN knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul International Airport. Nevertheless, ABDURAHMAN continued to make preparations to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, on November 6, 2014, ABDURAHMAN and co-conspirators MOHAMED FARAH, HAMZA AHMED, and HANAD MUSSE purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, ANDURAHMAN purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. MUSSE knew that ABDURAHMAN purchased a ticket on the same flight for the same purpose. After being prevented by federal agents from boarding his flight, MUSSE lied to federal agents about the true nature of his travel.
As admitted by the defendant in his guilty plea, after their failed November 2014 attempt to fly overseas, ABDURAHMAN and co-conspirators MOHAMED FARAH, MUSSE, and AHMED met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, ABDURAHMAN willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico, and fly overseas to join ISIL using those false passports. On April 1, 2015, ABDURAHMAN provided a passport photo of himself to an individual he believed would be traveling with him. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). On April 3, 2015, ABDURAHMAN asked the CHS for the return of his passport photograph, fearing the number of co-conspirators involved in the plot to leave the United States for Syria increased the probability of getting caught by law enforcement. However, ABDURAHMAN admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, ABDURAHMAN was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria. ABDURAHMAN on April 3, 2015, further provided $100 in U.S. currency to the CHS as a down payment for co-defendant MOHAMED FARAH’s false passport which the defendant knew would be used by MOHAMED FARAH to attempt to travel to Syria to join ISIL.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant United States Attorneys Andrew R. Winter and John Docherty with assistance provided by the National Security Division's Counterterrorism Section.
Defendant Information:
ZACHARIA YUSUF ABDURAHMAN, 20
Columbia Heights, Minn.
Convicted:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wyoming Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on September 16, 2015, John William Spoonhunter, 31, was charged with aggravated sexual abuse of a child in violation of 18 U.S.C. §§ 2241(c) and 1153 in connection with allegations occurring on the Wind River Indian Reservation. Spoonhunter is facing not less than thirty years nor more than life imprisonment; and a $250,000 fine; a $250 special assessment and possible restitution costs. An indictment and complaint are only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt beyond a reasonable doubt. The case is being investigated by the Federal Bureau of Investigation.
Woman Sentenced to Eight Months in Prison for Marijuana PossessionRead the Press Release
St. Thomas, USVI– District Court Judge Curtis V. Gomez today sentenced Amari Stroy, 23, of Union City, Georgia, to eight months in prison and one year of supervised release for possession of marijuana, United States Attorney Ronald W. Sharpe announced.
On June 8, 2015, Stroy pleaded guilty to possession of marijuana. Court records show that on February 13, 2015, Stroy was apprehended at the Cyril E. King International Airport on St. Thomas with approximately 9.9 kilograms of marijuana after arriving from Atlanta, Georgia.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and prosecuted by Assistant United States Attorney David White.
Virginia Beach Man Pleads Guilty to Drug ChargesRead the Press Release
NORFOLK, Va. – Alonzo Diangelo Bell, 32, of Virginia Beach, pleaded guilty today to charges of manufacturing marijuana and maintaining drug-involved premises.
According to the statement of facts filed with the plea agreement, in February of 2015, Virginia Beach Police conducted surveillance of a storage facility located at the corner of Maxey Drive and Virginia Beach Boulevard after an officer who had been patrolling the area detected a strong odor of marijuana. Bell who had been observed exiting one of the units of the storage facility was stopped for speeding. During the stop, officers detected the odor of marijuana and searched Bell’s vehicle, but no contraband was found. Later, when the police contacted the manager of the storage facility to inquire about Bell, they were informed that several complaints had been made about the smell of marijuana coming from the units that Bell was renting. The manager consented to a search of units adjacent to the units Bell was renting. When police determined that the marijuana odor was coming from the two storage units being rented by Bell, search warrants were executed. In one unit, the police found approximately 1883 grams of marijuana. In the second unit, police discovered a marijuana grow operation consisting of approximately 30 mature plants, a carbon dioxide generator and grow lights. The total weight of the marijuana seized was approximately 4.665 kilograms. Latent fingerprints belonging to Bell were found on various items in both units.
Bell was indicted by a federal grand jury on Aug. 5, 2015. Bell faces maximum penalty of 30 years in prison when sentenced on Dec. 17, 2015. Bell faces an enhanced maximum term of 10 years for manufacturing and possessing with intent to distribute marijuana and 20 years for maintaining drug-involved premises. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Darryl Mitchell is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-99.
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Vickery Creek Park Backpack Bomber Pleads GuiltyRead the Press Release
ATLANTA - Michael C. Sibley, who placed a backpack containing two pipe bombs at Vickery Creek Park in the Chattahoochee River National Recreation Area, has pleaded guilty to a charge of conveying false and misleading information about a crime.
“In addition to breaking the law, threatening an act of terrorism is a serious matter that diverts scarce law enforcement resources away from legitimate threats and unnecessarily causes alarm,” said U.S. Attorney John Horn. “Sibley’s crime is even more troubling because he attempted to exploit stereotypical fears and prejudices.”
“The guilty plea of Mr. Sibley concludes an investigation that triggered a significant law enforcement response, to include that of numerous bomb technicians, to address the backpack that Mr. Sibley had left at a Roswell, Georgia park on November 4, 2014. This also resulted in a significant investigative effort to identify and locate the person later determined to be Mr. Sibley,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI takes these types of call outs seriously and individuals that engage in this type of criminal conduct will be investigated and presented for federal prosecution. The FBI would like to thank the swift response and continued assistance of the Roswell Police Department and the Cobb County Police Department’s Bomb Squad in addressing this matter.”
According to U.S. Attorney Horn, the charges and other information presented in court: On November 4, 2014, visitors at Vickery Creek Park, which is a part of the Chattahoochee River National Recreation Area in Roswell, Georgia, discovered an abandoned backpack and contacted local law enforcement. An inspection of the bag revealed what appeared to be two completely constructed pipe bombs. Nails and screws were taped to the outside of the tubing consistent with construction designed for maximum fragmentation upon explosion. The pipe bombs also appeared to be ready for remote detonation. The devices, however, did not have a power source, which was required to remotely cause the explosion.
The name written on the abandoned backpack appeared to be a Middle Eastern name. The backpack also contained two books: “The Rape of Kuwait” and “The Holy Qur’an.”
On March 20, 2015, Mr. Sibley voluntarily contacted the FBI and asked to meet with the agents. During this meeting, he confessed to making the devices and to placing them in Vickery Creek Park. Mr. Sibley stated that he placed the bag with these devices, the books and other items in the park to “wake-up” people in the United States. He related that he believes the Mexican border is poorly defended and that many people are entering this country illegally. He also said that he made the explosive devices and placed them in the park to make people realize that if this can happen in Roswell, Georgia, it can happen anywhere.
The sentencing for Michael C. Sibley, 67, of Marietta, Georgia, is scheduled for January 21, 2016.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Tracia M. King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Union Organizer Indicted for Corruption, Attempted Extortion, and Money LaunderingRead the Press Release
OAKLAND - A federal grand jury in Oakland indicted Daniel Rush today with taking illegal payments as a union employee, honest services fraud, attempted extortion, and money laundering announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment, Rush, 54, of Oakland, is alleged to have used his position as a union organizer with the United Food and Commercial Workers (UFCW) to obtain money and other things of value over a five year period from 2010 to 2015.
Rush was an organizing coordinator of the medical cannabis division of the UFCW. The indictment alleges that, while a union employee, Rush accepted $550,000 in debt forgiveness from an individual affiliated with medical marijuana dispensaries. According to an affidavit filed by an FBI agent in connection with a criminal complaint filed in the same matter, Rush and a coconspirator formulated a scheme to obtain debt forgiveness in exchange for favorable treatment by the union. The individual who agreed to the debt forgiveness was cooperating with the FBI’s investigation at the time Rush proposed the arrangement.
The indictment also charges Rush with taking kickbacks from an attorney to whom he had referred medical marijuana dispensaries as clients. Rush, the indictment alleges, had a duty to provide honest services to the UFCW; that duty including refraining from self-dealing when interacting with the marijuana dispensaries whose workers it was his job to organize. Rush is charged with engaging in a scheme in which he violated that duty in exchange for kickbacks from the attorney.
The indictment further charges Rush with taking kickbacks from the same attorney in exchange for arranging for the attorney to represent clients in worker’s compensation matters. Rush was an officer and director of an advocacy organization for the working poor. Rush directed the organization’s referral of worker’s compensation clients to the attorney. In exchange, the attorney provided Rush with a credit card on which Rush charged thousands of dollars of personal expenses which ultimately were paid by the attorney.
Rush also is charged with attempted extortion. Rush was a member of the Berkeley Medical Cannabis Commission, which is a commission of the City of Berkeley organized to facilitate the appropriate licensing and regulation of medical marijuana in the city. Rush demanded a well-compensated job from a prospective medical marijuana dispensary in exchange for his influence as a member of the commission.
In addition, the indictment alleges that Rush engaged in a conspiracy to commit money laundering and financial structuring, as well as substantive money laundering. The indictment and FBI agent’s affidavit filed in the case explain that Rush took a loan totaling $600,000 in cash from a person engaged in the marijuana business. Rush and the attorney engaged in a series of structuring transactions designed to obscure the origin of the money. Over the ensuing years, Rush required the attorney to fund interest payments on the loan and, when Rush ultimately was not able to repay the loan, he offered favorable union benefits in exchange for forgiveness of the loan.
In sum, Rush was charged with taking illegal payments as a union employee, in violation of 29 U.S.C. §§ 186(a) and (b); honest services fraud, in violation of 18 U.S.C. §§ 1341, 1343 and 1346; attempted extortion, in violation of 18 U.S.C. § 1951; conspiracy to commit structuring and money laundering, in violation of 18 U.S.C. § 371; and money laundering by concealment, in violation of 18 U.S.C. § 1956(a)(1)(B)(i).
The investigation began with cooperation from individuals in the medical marijuana industry who reported Rush’s allegedly corrupt activities. According to the affidavit, the attorney with whom Rush was working has been cooperating with the FBI and has agreed to plead guilty to offenses related to the charges against Rush.
Rush was originally charged by criminal complaint and arrested in Oakland on August 11, 2015, and made his initial appearance in federal court in Oakland on August 12, 2015. Rush was released on bond and bail was set at $500,000. Rush’s next scheduled appearance is September 23, 2015, at 9:30 am for arraignment before the Honorable Kandis Westmore, U.S. Magistrate Judge, in Oakland. The case has been assigned to the Honorable Haywood S Gilliam, Jr., U.S. District Court Judge, in Oakland.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The defendant faces a maximum term of imprisonment of 20 years if he is convicted of the charges of honest services fraud, attempted extortion, or money laundering, along with a fine as much as $500,000 and restitution if appropriate. If the defendant is convicted of accepting an illegal payment as a union employee or engaging in a criminal conspiracy, he faces a maximum term of imprisonment of 5 years. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco and investigated by the FBI.
U.S. Citizen Arrested for Attempting to Provide Material Support to ISILRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Ali Saleh with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. Saleh was arrested earlier today at his residence in Queens, New York, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Roanne L. Mann at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the New York Field Office of the Federal Bureau of Investigation (FBI), and Commissioner William J. Bratton of the New York City Police Department.
As set forth in court documents, Saleh is a 22-year-old citizen of the United States. In the last year, Saleh made multiple attempts to travel to the Middle East to join ISIL. In August 2014, he made a flight reservation to travel from New York’s John F. Kennedy International Airport (JFK) to Istanbul, Turkey. A few days earlier, Saleh used his Twitter account to post, “I’m ready to die for the Caliphate, prison is nothing.”[1] Saleh was unable to travel at that time, but continued to pursue his goal of travelling overseas to join ISIL. For example, in July 2015, Saleh made a flight reservation to travel from JFK to Cairo, Egypt. On that same day, Saleh used his Twitter account to communicate with an ISIL facilitator who instructed followers to contact him “for hijrah advice to IS in Libya ONLY.”[2] After speaking with airline personnel, Saleh did not board a flight from JFK Airport. Over the span of the next two days, Saleh subsequently continued his attempts to travel to the Middle East by visiting Newark Liberty International Airport in New Jersey and Philadelphia International Airport, where he was again denied boarding.
Saleh then made his way to an Amtrak station in Cleveland, Ohio, in an attempt to take a train to Toronto, Canada, and travel to the Middle East from there. In a subsequent interview with law enforcement officers, Saleh indicated that were he not arrested, he would continue to attempt to travel to the Middle East.
“Saleh was relentless in his attempts to travel to the Middle East to join a terrorist organization,” stated Acting United States Attorney Currie. “We will continue to track down and prosecute individuals like Saleh before they are able to harm the United States and its allies.” Mr. Currie extended his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a number of federal, state, and local agencies from the region. Mr. Currie also thanked the FBI’s Indianapolis Field Office and the New York City Police Department’s Intelligence Division for their assistance.
“According to the allegations in the complaint, Ali Saleh attempted to provide material support to ISIL and made repeated efforts to travel overseas to join their ranks,” 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 designated foreign terrorist organizations.”
“The persistence of Saleh in his alleged attempts to travel overseas in order to ‘die for the Caliphate,’ did not match the dedication of New York’s Joint Terrorism Task Force (JTTF) to work quickly to identify and interrupt this threat. We will continue to be vigilant in our attempts to proactively stop threats before harm can occur,” said FBI Assistant Director in Charge Diego Rodriguez.
“By his own words, Ali Saleh was willing to pledge allegiance to, and die for ISIL, an organization that has called for terrorist attacks against the United States,” said Police Commissioner Bratton. “Saleh’s attempts to travel to Syria and ISIL’s battlefields were halted by good intelligence and smart law enforcement. I commend the agents and detectives of the Joint Terrorism Task Force as well as the dedicated prosecutors at the office of the United States Attorney for the Eastern District of New York.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the office’s National Security & Cybercrime Section. Assistant United States Attorney Saritha Komatireddy is in charge of the prosecution, with assistance provided by Trial Attorneys Lolita Lukose and Alison Daly of the Justice Department’s Counterterrorism Section.
The Defendant:
ALI SALEH
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 15-M-886
[1] In this context, the term “Caliphate” refers to ISIL, given its stated goal of establishing an Islamic caliphate in Iraq and Syria.
[2] The term “hijrah” is a reference to making a journey, and “IS” is a reference to ISIL.
U.S. Attorney of the Southern District of New York Announces Criminal Charges Against General Motors and Deferred Prosecution Agreement with $900 Million ForfeitureRead the Press Release
General Motors Admits to Failing to Disclose Deadly Safety Defect in Its Cars to Consumers and U.S. Regulator
Independent Monitor to Be Appointed to Oversee General Motors’ Reporting of Safety Issues and Public Statements
Attorney General Loretta E. Lynch, Secretary Anthony Foxx of the Department of Transportation, U.S. Attorney Preet Bharara of the Southern District of New York, Administrator Mark R. Rosekind of the National Highway Traffic Safety Administration (NHTSA), Inspector General Calvin L. Scovel III of the U.S. Department of Transportation (DOT-OIG), Special Inspector General Christy Goldsmith Romero of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Assistant Director in charge Diego Rodriguez of the FBI’s New York Field Office, announced the filing of criminal charges against General Motors Company (GM or the company), an automotive company headquartered in Detroit, that has designed, manufactured, assembled and sold Chevrolet, Pontiac and Saturn brand vehicles, among others. GM is charged with concealing a potentially deadly safety defect from its U.S. regulator, the National Highway Traffic Safety Administration (NHTSA), from the spring of 2012 through February 2014, and, in the process, misleading consumers concerning the safety of certain of GM’s cars. The defect consisted of an ignition switch that had been designed and manufactured with too-low torque resistance and could therefore move easily out of the “Run” position into “Accessory” or “Off” (the defective switch). When the switch moved out of Run, it could disable the affected car’s frontal airbags – increasing the risk of death and serious injury in certain types of crashes in which airbags were otherwise designed to deploy. The models equipped with the defective switch were the 2005, 2006 and 2007 Chevrolet Cobalt; the 2005, 2006 and 2007 Pontiac G5; the 2003, 2004, 2005, 2006 and 2007 Saturn Ion; the 2006 and 2007 Chevrolet HHR; the 2007 Saturn Sky; and the 2006 and 2007 Pontiac Solstice. To date, GM has acknowledged a total of 15 deaths, as well as a number of serious injuries, caused by the defective switch.
U.S. Attorney Bharara also announced a deferred prosecution agreement with GM (the agreement) under which the company admits that it failed to disclose a safety defect to NHTSA and misled U.S. consumers about that same defect. The admissions are contained in a detailed statement of facts attached to the agreement. The agreement imposes on GM an independent monitor to review and assess policies, practices and procedures relating to GM’s safety-related public statements, sharing of engineering data and recall processes. The agreement also requires GM to transfer $900 million to the United States by no later than Sept. 24, 2015, and agree to the forfeiture of those funds pursuant to a parallel civil action also filed today in the Southern District of New York.
The criminal charges are contained in an information (the information) alleging one count of engaging in a scheme to conceal material facts from NHTSA and one count of wire fraud. If GM abides by all of the terms of the agreement, the government will defer prosecution on the information for three years and then seek to dismiss the charges.
“Every consumer has the right to expect that car manufacturers are taking their safety seriously,” said Attorney General Lynch. “The Department of Justice is committed to ensuring that the products Americans buy are safe; that consumers are protected from harm; and that auto companies follow the law.”
“General Motors not only failed to disclose this deadly defect, but as the Department of Justice investigation shows, it actively concealed the truth from NHTSA and the public,” said Transportation Secretary Foxx. “Today’s announcement sends a message to manufacturers: deception and delay are unacceptable, and the price for engaging in such behavior is high.”
“For nearly two years, GM failed to disclose a deadly safety defect to the public and its regulator,” said U.S. Attorney Bharara. “By doing so, GM put its customers and the driving public at serious risk. Justice requires the filing of criminal charges, detailed admissions, a significant financial penalty, and the appointment of a federal monitor. These measures are designed to make sure that this never happens again.”
“Today’s action strengthens NHTSA’s efforts to protect the driving public,” said Administrator Rosekind. “It sends a message not only to GM, but to the entire auto industry, that when it comes to safety, telling the full truth is the only option.”
“To the families and friends of those who died and to those who were injured as a result of crashes related to GM’s defective ignition switches, I offer my deepest sympathies for your loss and my highest admiration for the strength you demonstrate every day,” said Inspector General Scovel III. “As is true for Secretary Foxx and the Department of Transportation, safety is and will remain the highest priority of my office, and we will continue to work relentlessly to ensure accountability throughout the Department and transportation sector. The OIG is committed to working with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations. The efforts of this dedicated multi-agency team and the agreement reached with General Motors, and that with Toyota in March 2014, must continue to serve as a clarion call to all auto manufacturers and their suppliers of the need to be vigilant and forthcoming to keep the public safe.”
“General Motors’ criminal conduct found by SIGTARP and our law enforcement partners defies comprehension,” said Special Inspector General Goldsmith Romero. “Our investigation uncovered that GM learned about a life-threatening ignition switch defect that would cause air bags not to inflate, but concealed the deadly safety defect from its regulator, and from people buying used cars from GM dealers. The worst part about this tragedy is that it was entirely avoidable. GM could have significantly reduced the risk of this deadly defect by improving the key design for less than one dollar per vehicle but GM chose not to because of the cost. Americans stepped up and bailed out General Motors with $50 billion; and General Motors must step up and make substantial corporate changes to prevent anything like this from happening again. SIGTARP commends U.S. Attorney Bharara for bringing these charges and standing united in the fight against TARP-related crime.”
“GM concealed a safety defect from consumers and regulators, which put drivers at risk,” said Assistant Director in Charge Rodriguez. “The resolution of this case shows that safety should never take a backseat to expediency.”
According to the allegations in the information, as well as other documents filed today in the Southern District of New York, including the statement of facts:
From the spring of 2012 through February 2014, GM deceived consumers and failed to make a required disclosure to NHTSA, its U.S. regulator, by regarding the connection that certain of its personnel had identified between the defective switch and airbag non-deployment. GM also falsely represented to consumers that vehicles equipped with the defective switch posed no safety concern.
Early Knowledge of the Defective Switch
GM engineers knew before the defective switch even went into production in 2002 that it was prone to easy movement out of the Run position. Testing of a prototype showed that the torque return between the Run and Accessory positions fell below GM’s own internal specifications. But the engineer in charge of the defective switch approved its production anyway.
In 2004 and 2005, as GM employees, media representatives and GM customers began to experience sudden stalls and engine shutoffs caused by the defective switch, GM considered fixing the problem. However, having decided that the switch did not pose a safety concern, and citing cost and other factors, engineers responsible for decision-making on the issue opted to leave the defective switch as it was and simply promulgate an advisory to dealerships with tips on how to minimize the risk of unexpected movement out of the Run position. GM even rejected a simple improvement to the head of the key that would have significantly reduced unexpected shutoffs at a price of less than a dollar a car.
At the same time, in June 2005, GM made public statements that, while acknowledging the existence of the defective switch, gave assurance that the defect did not pose a safety concern.
GM’s Knowledge that the Defective Switch Causes Airbag Non-Deployment
By the spring of 2012, GM knew that the defective switch presented a safety defect because it could cause airbag non-deployment in certain GM cars. Specifically, GM personnel investigating the cause of a series of airbag non-deployment incidents learned that the defective switch could cause frontal airbag non-deployment in at least some model years of the Cobalt, and were aware of several fatal incidents and serious injuries that occurred as a result of accidents in which the defective switch may have caused or contributed to airbag non-deployment. This knowledge extended well above the ranks of investigating engineers to certain supervisors and attorneys at the company.
GM’s Failure to Disclose the Defect and Recall Affected Cars
Yet not until approximately 20 months later, in February 2014, did GM first notify NHTSA and the public of the connection it had identified between the defective switch and airbag non-deployment incidents. The company thus egregiously disregarded NHTSA’s five-day regulatory reporting requirement for safety defects.
Moreover, for much of the period during which GM failed to disclose this safety defect, it not only failed to correct its June 2005 assurance that the defective switch posed no safety concern but also actively touted the reliability and safety of cars equipped with the defective switch, with a view to promoting sales of used GM cars. Although GM sold no new cars equipped with the defective switch during this period, GM dealers were still, from in or about the spring of 2012 through in or about the spring of 2013, selling pre-owned Chevrolet, Pontiac and Saturn brand cars that would later become subject to the February 2014 recalls. These sales were accompanied by certifications from GM, assuring the unwitting consumers that the vehicles’ components, including their ignition systems and keys, met all safety standards.
GM’s delay in disclosing the defect at issue was the product of actions by certain personnel responsible for shepherding safety defects through GM’s internal recall process, who delayed the recall until GM could fully package, present, explain and handle the deadly problem. Rather than move swiftly and efficiently toward recall of at least the population of cars known to be affected by the safety defect and thus certainly destined for recall, GM personnel took affirmative steps to keep the company’s internal investigation into airbag non-deployment caused by the defective switch “offline” – outside of GM’s regular recall process.
Moreover, on at least two occasions while the defective switch condition was well known by some within GM but not disclosed to the public or NHTSA, GM personnel made incomplete and therefore misleading presentations to NHTSA assuring the regulator that GM would and did act promptly, effectively and in accordance with its formal recall policy to respond to safety problems – including airbag-related safety defects.
GM’s Acceptance of Responsibility and Cooperation in the Government Investigation
In February 2014, GM finally conducted a recall of approximately 700,000 vehicles affected by the defective switch. By March 2014, the recall population had grown to more than 2 million vehicles.
Since February 2014 and the inception of this federal criminal investigation, GM has taken exemplary actions to demonstrate acceptance and acknowledgement of responsibility for its conduct. GM, among other things, conducted a swift and robust internal investigation, furnished the government with a continuous flow of unvarnished facts gathered during the course of that internal investigation, voluntarily provided, without prompting, certain documents and information otherwise protected by the attorney-client privilege, provided timely and meaningful cooperation more generally in the federal criminal investigation, terminated wrongdoers and established a full and independent victim compensation program that has to date paid out hundreds of millions of dollars in awards.
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U.S. Attorney Bharara praised the outstanding investigative work of SIGTARP, DOT-OIG, NHTSA and the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Bonnie Jonas, Deputy Chief of the Criminal Division, and Assistant U.S. Attorneys Sarah Eddy McCallum and Edward A. Imperatore are in charge of the prosecution, and Assistant U.S. Attorney Jason H. Cowley, Chief of the Money Laundering and Asset Forfeiture Unit, is responsible for the forfeiture aspects of the case.
U.S. Attorney Announces Gun Charge Against Mount Vernon Man After Shooting in New RochelleRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the arrest and charge against RAHEEM JONES for possession of a gun after a shooting in New Rochelle, New York that resulted in a victim being shot three times. JONES was arrested Tuesday by the Westchester County Department of Public Safety and was presented before United States Magistrate Judge Paul E. Davison yesterday and detained.
U.S. Attorney Preet Bharara said: “Raheem Jones has been charged with the federal crime of being a felon in possession of a firearm. As alleged, Jones showed a blatant disregard for public safety when he possessed the gun in a car from which multiple shots were fired, in broad daylight on a busy street in New Rochelle, hitting a victim three times. Because of Westchester law enforcement’s quick response, this allegedly violent criminal is now off of the street. I want to thank the Westchester County District Attorney’s Office for their cooperation in this case, as well as the investigative work of the FBI, the Westchester County Department of Public Safety and the New Rochelle Police Department.”
As alleged in the Complaint[1]:
On September 15, 2015, around lunchtime, there was a shooting in the vicinity of Clinton Avenue in New Rochelle. The shots were fired from the front passenger window of an SUV into another car, hitting an individual in the second car approximately three times. The individuals in the SUV fled, leading to an area-wide search for the SUV. Shortly thereafter, an officer with the Westchester County Department of Public Safety located an SUV matching the description of the vehicle used in the shooting, and attempted to pull that SUV over.
The SUV stopped momentarily, and then fled at a high rate of speed. The officer pursued the SUV in his patrol car. When the SUV slowed and the man sitting in the front passenger seat of the SUV jumped out of the car, carrying a backpack, the officer pursued that man, later identified as JONES, on foot. After a short chase, JONES, who had thrown the backpack nearby, was detained outside of a building. Law enforcement officers found a Smith and Wesson .38 caliber revolver inside of the backpack.
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JONES, 26, of Mount Vernon, was charged with possession of a gun after having committed a felony, which carries a maximum sentence of 10 years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI, the Westchester County Department of Public Safety, the Mount Vernon Police Department, and the New Rochelle Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Anden Chow and Sarah Krissoff are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two convicted in multi-state heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Shanley-Sexton, 23, of Gaithersburg, Maryland, and James R. Dove, 30, of Keyser, West Virginia, were convicted in federal court for their role in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants were among 41 defendants named in a 163-count federal heroin trafficking indictment in June 2015. The indictment stemmed from a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into surrounding states, including West Virginia.
Shanley-Sexton pled guilty to one count of “Conspiracy to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Dove pled guilty to one count of “Interstate Travel in Aid of Racketeering.” He faces up to five years in prison and a fine of up to $250,000.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Sentenced for Healthcare FraudRead the Press Release
ABINGDON, VIRGINIA – A mother and daughter who operated a business that provided oversight to personal care aides caring for elderly and disabled individuals, were sentenced earlier this week in the United States District Court for the Western District of Virginia in Abingdon on healthcare fraud charges.
Connie Robbins, 59, of Sugar Grove, Va. and Stephanie Dawn Robbins, 37, of Marion, Va., both previously waived their rights to be indicted and pled guilty to one-count Informations charging them each with conspiracy to commit healthcare fraud. On Monday, September 14, 2015, Connie Robbins was sentenced to one year and one day in prison. Stephanie Robbins was sentenced to two years of probation, 200 hours of community service and three months of home confinement. The defendants were ordered to repay Virginia Medicaid $137,106 in total restitution.
According to evidence presented at a previous guilty plea hearing by Virginia Assistant Attorney General and Special Assistant United States Attorney Janine Myatt, Stephanie and Connie Robbins operated Robbins CD Services, a Consumer Directed Service Facilitator (CDSF) service provider. A CDSF is paid by Virginia Medicaid to assist Medicaid recipients who are eligible for a waiver that allows them to avoid moving into a nursing home and instead receive critical care in their homes.
The only two employees at CD Robbins Services were Connie Robbins, a registered nurse, and her daughter, Stephanie Robbins, who served as the office manager. Between October 2008 and August 2013, Connie Robbins created false supporting paperwork that documented home face-to-face visits with patients that never occurred. In her role as office manager, Stephanie Robbins billed Virginia Medicaid for the face-to-face home assessments that she knew never occurred. Approximately 35 percent of the home assessments billed by Robbins CD Services and paid by Medicaid never occurred.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Medicaid Fraud Control Unit for the Virginia Office of the Attorney General. Virginia Assistant Attorney General and Special Assistant United States Attorney Janine Myatt is prosecuting the case for the United States.
Twin Peaks Company Pleads Guilty to Hiring Unauthorized WorkersRead the Press Release
WICHITA, KAN. – Le Grande Tetons, LLC, the company that owned and operated the Twin Peaks bar and restaurant in east Wichita, has pleaded guilty to engaging in a pattern or practice of employing aliens not authorized to work in the United States, U.S. Attorney Barry Grissom said.
Grissom said the guilty plea was entered by a lawyer for the company in federal court Thursday before U.S. Magistrate Judge Gwynne E. Birzer. Pursuant to a plea agreement in the case, Judge Birzer imposed a fine of $50,000. Companies or persons who engage in a pattern or practice of employing unauthorized aliens can be fined up to $3,000 for each person so employed.
Le Grande Tetons, LLC, has sold or is in the process of selling its Twin Peaks location and franchise, which is at 8310 E. 21st St.
According to plea agreement, the U.S. Attorney’s office has agreed not to pursue any additional charges against the owners, current employees or former employees of Le Grande Tetons, LLC, with the exception of two former management employees who remain under investigation.
“The word is getting out: Employers who knowingly hire foreign workers who are not authorized to work in the United States face criminal prosecution,” Grissom said. “I blame employers for this practice, not the employees. It isn’t very hard to figure out whether someone from another country has permission to work in the United States.”
According to the plea agreement, the Twin Peaks east location underwent an I-9 employment authorization form inspection by the Department of Homeland Security, Homeland Security Investigations (HSI), in September 2013 that identified more than 20 unauthorized workers employed primarily in the east Twin Peaks kitchen area. A Twin Peaks manager agreed to fire the employees immediately, but HSI received word several months later than many of the same employees had been rehired. Federal search warrants were executed at both Wichita Twin Peaks locations in July.
Grissom praised HSI for its investigation of the case and Assistant U.S. Attorney Brent Anderson for its prosecution. Other agencies, including the Wichita Police Department, the Kansas Department of Labor, the Kansas Department of Revenue and the Social Security Administration Office of Inspector General also assisted in the case.
Three Men Handed Down Prison Sentences on Child Pornography Charges in Separate CasesRead the Press Release
CHARLOTTE, N.C. – On Wednesday, September 16, 2015, U.S. District Judge Max O. Cogburn sentenced an Indian Trail, N.C. man to 20 years in prison on transportation of child pornography charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Jason Michael Brown, 41, was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division.
According to court documents and statements made in court, on or about December 2011, law enforcement became aware that an individual with the username “Gigatribal007,” later identified as Brown, was sharing child pornography using peer to peer software. The investigation revealed that Brown possessed a collection of child pornography, consisting of more than 10,000 images and videos depicting children being sexually abused. Brown was also found to have sexually abused a child under the age of five. According to court records, Brown pleaded guilty in September 2014 to one count of transportation of child pornography and one count of possession of child pornography.
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In a separate case, on Tuesday, September 15, 2015, Chief U.S. District Judge Frank D. Whitney sentenced John Moore, Jr., 56, of Monroe, N.C. to 108 months in prison and 20 years of supervised release. According to filed documents and statements made in court, in September 2009, law enforcement became aware of Moore’s collection of child pornography after it was discovered by a computer repair technician who was repairing Moore’s computer. Court documents indicate that a forensic examination of the seized computer revealed that Moore possessed an extensive collection of child pornography, consisting of more than 1,200 images of child pornography and videos. Moore pleaded guilty in April 2013 to one count of possession of child pornography. Judge Whitney also ordered Moore to register as a sex offender once he is released from prison.
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In a third case sentenced this week, on Monday, September 14, 2015, Judge Cogburn sentenced Clinton Williams, Jr., 35, of Charlotte, to 72 months in prison and a lifetime of supervised release. According to court records, between February and August 2013, Williams accessed and downloaded on his computer child pornography using a peer to peer network. Court records indicate that Williams, who at the time was a detention officer with the Mecklenburg County Sheriff’s Office, downloaded more than 100 images and videos of child pornography, some of which included children as young as four years old. Williams pleaded guilty to one count of receiving child pornography and one count of possession of child pornography.
All three defendants are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
These investigations were handled by the FBI. The Charlotte-Mecklenburg Police Department also assisted with the investigation into Williams.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Third and Final Member, Victor Hugo Quesada-Pacheco, of Kalamazoo Counterfeit Identification Document Ring SentencedRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that Victor Hugo Quesada-Pacheco, also known as "Galvan," age 34, a citizen of Mexico who most recently resided illegally in Kalamazoo, Michigan, was sentenced to 30 months’ imprisonment today for his role in a counterfeit identification document ring. Quesada-Pacheco is the final defendant involved in the ring to be sentenced. Jesus Emmanuel Lopez-Garcia and Jaime Velasco-Jimenez previously received sentences of 36 months’ imprisonment.
Between September, 2013, and March, 2015, the ring produced hundreds of counterfeit identification documents at the apartments of Velasco-Jimenez in Plainwell and Kalamazoo, Michigan. Velasco-Jimenez recruited Lopez-Garcia and Victor Hugo Quesada-Pacheco to solicit illegal aliens residing in Kent and Kalamazoo counties in need of counterfeit identification documents. Lopez-Garcia and Quesada-Pacheco provided the names, false social security account numbers, and other false biographical information for their customers to Velasco-Jimenez who then produced counterfeit driver’s licenses, state identification documents, social security account number cards, lawful permanent resident cards, and other false identification documents at his apartment in Kalamazoo. Lopez-Garcia and Quesada-Pacheco then delivered the counterfeit identification documents to their customers and collected a fee that was shared with Velasco-Jimenez.
Marlon Miller, special agent in charge for HSI Detroit, commented that "HSI will continue to aggressively target counterfeit identity document schemes." He explained that "The proliferation of counterfeit identity documents can have a rippling effect on all of us because it potentially compromises national security and the integrity of the U.S. immigration system."
Quesada-Pacheco forfeited numerous electronic devices and cash related to his crime. And he faces removal from the United States.
Assistant U.S. Attorney Ronald M. Stella prosecuted the case, which was investigated by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations division in Grand Rapids.
Telluride man convicted and sentenced for massive littering of the Uncompahgre National ForestRead the Press Release
DENVER – Benjamin Yoho, age 41, currently of Telluride and Ouray, was convicted and sentenced earlier this week following a one day bench trial before U.S. Magistrate David L. West in Durango of crimes related to the massive littering of an area north of Telluride within the Uncompahgre National Forest, the U.S. Attorney’s Office, the U.S. Forest Service, and the San Miguel County Sheriff announced. From a period of October, 2014, through April, 2015, Yoho not only lived and maintained a structure on National Forest System Lands, but also transported large quantities of items from the Telluride “Free Box” to National Forest System Lands where he littered a large area near the Jud Wiebe Trail. A volunteer effort was mobilized in May, 2015, and with the help of 48 volunteers and numerous crewpersons with the Colorado Division of Fire Prevention and Control, approximately 8500 pounds of debris was removed from the forest by helicopter.
Yoho was charged and convicted of Residing on National Forest System Lands, Maintaining a Structure on National Forest System Lands, and Leaving Debris on National Forest System Lands. He was sentenced to 6 months in the Federal Bureau of Prisons, to be followed by one year of probation. Conditions of Probation include Yoho’s placement at a halfway house upon release from prison and a ban from Forest and BLM lands. Additionally, the Court recommended that the defendant receive mental health treatment while at the Federal Bureau of Prisons. The issue of restitution will be decided at a later date.
“This was no ordinary case of littering in the National Forest – this was full-scale trashing of the public lands, and merited a term of incarceration,” said U.S. Attorney John Walsh.
“The Forest Service greatly appreciates the cooperative effort with the San Miguel County Sheriff’s Office and the local community with this case,” said U.S. Forest Service Special Agent in Charge Laura Mark. “Individuals residing on national forest lands is not only illegal, it poses a significant public safety concern and causes damage to the resources and watersheds, as well as threatening wildlife and in some cases prevents the public from being able to safely recreate in the national forest.”
"This case was an excellent example of the U.S. Forest Service, the Department of Justice and the local community working together to solve a terrible environmental problem,” said San Miguel County Sheriff Bill Masters. “I hope this serves as a warning to all that trashing our National Forest is unacceptable behavior. Unfortunately the defendant in this case took advantage of the charitable nature of the Telluride community and made a mockery of it. In the future law enforcement and citizens need to be more vigilant in controlling abuses of the "Freebox" and other giving institutions to make certain people are not using donated items for criminal purposes."
This case was investigated by the U.S. Forest Service with support from the San Miguel County Sheriff.
Yoho was prosecuted by Assistant U.S. Attorney Dondi Osborne of the U.S. Attorney’s Durango Branch Office.
Shawnee Mission Man Pleads Guilty to $6 Million EmbezzlementRead the Press Release
KANSAS CITY, KAN. – A Shawnee Mission man pleaded guilty Wednesday to federal charges he embezzled more than $6 million from an Overland Park company, U.S. Attorney Barry Grissom said.
Kenneth Voboril, 46, Shawnee Mission, Kan., pleaded guilty to one count of wire fraud and one count of filing a false tax return. In his plea, he admitted he was hired in 2005 by Commodity Specialists Company to run its subsidiary, TransMaxx. TransMaxx brokered trucking deliveries for customers and occasionally provided services to CSC.
Voboril devised a scheme to defraud CSC by creating fake companies and billing CSC for deliveries that never occurred. He caused false truck load information to be entered into TransMaxx’s computer system, resulting in invoices being created by TransMaxx’s account software program.
Over the course of time, he embezzled more than $6 million from CSC. In addition, he failed to report the income on his federal tax returns.
Sentencing is set for Dec. 7. He faces maximum penalty of 20 years in federal prison and a fine up to $1 million on the wire fraud count, and a maximum penalty of three years and a fine up to $250,000 on the tax count. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Senior Living Center Employee Sentenced to Nearly Five Years in Prison for ID Theft and $335,000 Fraud Against Elderly ResidentRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a former Hoover senior living center employee to four years and nine months in prison for using the identity of a resident with dementia to steal more than $300,000 from the resident's bank and credit accounts, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Special Agent in Charge Craig Caldwell.
U.S. District Judge Abdul K. Kallon sentenced SHOSTOCKA KEYA WARD, 43, of Pleasant Grove, for bank fraud and aggravated identity theft. In accordance with Ward's plea agreement with the government, the judge also ordered her to pay $335,214 in restitution to the power of attorney for her elderly victim and several financial institutions, and to forfeit the same amount to the government as proceeds of illegal activity. Ward pleaded guilty to the charges in May. She must report to prison Jan. 4.Between Oct. 11, 2011, and Feb. 13, 2014, Ward carried out a scheme to defraud eCO Credit Union of money in the victim’s account through various means and without the victim’s authorization. According to Ward's guilty plea, her fraud included, in part, writing more than $70,000 in unauthorized checks to herself and using the victim's credit cards to charge thousands of dollars for expenses that included financing her own wedding, applying money to someone's prison account, making car and private school tuition payments, and taking trips to Las Vegas, Chicago, Tunica, Miss., and Gatlinburg, Tenn.
According to court documents, Ward worked at Galleria Woods as a resident assistant or a transportation coordinator from about August 2010 to January 2014. In 2011, Ward became acquainted with the victim, a Galleria Woods resident who was 75 years old, had no immediate family, few visitors and an out-of-town family friend who served as her power of attorney, but was not actively involved in her daily care or the management of her daily finances.Ward began assisting the victim with transportation, errands, bill payments and other financial issues, and gained access to the victim’s purse, mail, financial statements, checkbook, and debit and credit cards. Ward maintained her relationship with the victim during her employment at Galleria Woods as the victim’s mental and physical condition declined and she became incapable of managing her financial affairs, according to Ward's plea.
U.S. Secret Service investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes prosecuted.
Rosedale Woman Pleads Guilty to Embezzling from Non-Profit Organization She FoundedRead the Press Release
Baltimore, Maryland - Kimberly Harrison, age 46, of Rosedale, Maryland, pleaded guilty today to embezzling funds from a federally funded non-profit organization she founded. She also admitted committing bankruptcy fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.
According to her plea agreement, Kimberly Harrison embezzled over $100,000 from Between Friends, which she founded and operated from 2008 to 2012, including $60,264 which she stole from September 2011 to September 2012. Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families. Kimberly Harrison also admitted that when she filed for bankruptcy on June 28, 2012, she did not disclose the approximately $45,514 she had received from Between Friends, Inc., in the form of both checks made payable to Harrison directly, and checks made payable to her landlord for Harrison’s monthly rent payments, from June 2011 until the filing of her petition. Harrison also failed to list as an asset a 2009 Lexus RX350 that she purchased for $31,037.88 on June 23, 2012, just five days prior to filing her petition.
As part of her plea agreement, Harrison will be required to pay restitution of $104,432.11, the total amount she embezzled from Between Friends.
Kimberly Harrison faces a maximum sentence of 10 years in prison for federal program theft. U.S. District Judge J. Frederick Motz has scheduled sentencing for November 19, 2015 at 10:00 a.m.
Kimberly Harrison’s sister, Sharon Harrison, age 48, also of Rosedale, was recently sentenced to three years in prison for embezzling from four non-profit organizations for which she worked, including Between Friends. Sharon Harrison was also ordered to pay restitution of $1,306,797.70, the total amount that she embezzled.
United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.