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Friday 7 August 2015
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on August 7, 2015, and entering pleas of Not Guilty were:
- JESUS YEIZON DENIZ MENDOZA, a 18-year-old resident of Worland, Wyoming, appeared on charges of first degree murder, assault with intent to commit murder, assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious charges contained in the indictment, MENDOZA faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-93
Appearing before U.S. Magistrate Ostby in Billings on July 31, 2015, and entering pleas of Not Guilty were:
- ZETH ANDREW HILARIO, a 32-year-old resident of Billings, appeared on charges of mail fraud and aggravated identity theft. If convicted of the most serious charges contained in the indictment, HILARIO faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-83
Appearing before U.S. Magistrate Johnston in Great Falls on July 29, 2015, and entering pleas of Not Guilty were:
- SHANLEY LEONARD BIGHORN, a 30-year-old resident of Brockton, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, felon in possession of a firearm and possession of a firearm not registered in the national firearm registration and transfer record. If convicted of the most serious charges contained in the indictment, BIGHORN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-44
- PAUL DARRELL RED EAGLE, SR., a 27-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, RED EAGLE faces life in prison, $10,000,000 in fines and 5years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-44
Appearing before U.S. Magistrate Lynch in Missoula on July 28, 2015, and entering pleas of Not Guilty were:
- NATHAN GLEN KIRKLAND, a 45-year-old resident of Lakeside, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, KIRKLAND faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force. PACER Case Reference. 15-16
Appearing before U.S. Magistrate Ostby in Billings on July 27, 2015, and entering pleas of Not Guilty were:
- DAVID JAMES MATTHEW, a 54-year-old resident of Hardin, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, MATTHEW faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-81
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston, Texas-Area Teenager Pleads Guilty to “Swatting” and Making Bomb Threats to Minnesota High SchoolRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ZACHARY LEE MORGENSTERN, 19, to calling in multiple false bomb threats, making harassing text messages, and making “swatting” phone calls, in which he falsely reported hostage situations. MORGENSTERN was arrested in Texas on May 14, 2015, and was transported to Minnesota. He pleaded guilty today before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
“‘Swatting’ is dangerous to victims and a significant drain on scarce law enforcement resources,” said U.S. Attorney Andrew M. Luger. “This defendant made swatting attacks, bomb threats and threats to shoot students at schools in Minnesota, in an attempt to harass and intimidate. Schools in Marshall were disrupted by these threats and law enforcement was forced to deploy in order to address imagined hostage situations. The FBI and U.S. Attorney’s Office will not allow such threats to go unanswered.”
According to the defendant’s guilty plea and documents filed in court, between October 2014 and May 2015, MORGENSTERN, made a series of threatening communications against a number of different victims in the Marshall, Minnesota area. The defendant, cloaking himself in anonymized email addresses, Twitter handles, and Internet-based phone accounts, made threats to kill a police officer and her family; threats to use explosives to blow up a school; and threats to use guns to shoot up a school. MORGENSTERN also engaged in a series of “swatting” attacks, in which he made hoax phone calls to law enforcement making it appear that there was a violent crime in progress at a residence, when in fact no such crime was taking place. The defendant engaged in these “swatting” calls with the intent that they would result in an emergency police response to the residence, ideally involving a Special Weapons and Tactics (SWAT) team.
According to the defendant’s guilty plea and documents filed in court, one such attack came on October 7, 2014, when MORGENSTERN called the Marshall Police dispatch center and claimed to have taken two people hostage at a residence of H.M., a minor, in Marshall. MORGENSTERN further claimed that he had shot one of the hostages in the knee cap and that he was going to kill both hostages unless he received a duffel bag containing a half a million dollars. The Marshall Police Department determined that call was a hoax.
According to the defendant’s guilty plea and documents filed in court, beginning on January 6, 2015, MORGENSTERN, claiming to be D.R., a 17-year-old from Marshall, made at least three separate bomb threats to Marshall High School. Approximately four hours after the first threat was called in on January 6, MORGENSTERN used the twitter handle @RIURichHomie, to tweet to D.R., “OOPS. NICE BOMB THREAT. TEEHEEEEEEEE :).” MORGENSTERN later sent a tweet to both D.R. and his friend, S.V., in which he claimed responsibility for the bomb threat.
According to the defendant’s guilty plea and documents filed in court, on January 8, 2015, MORGENSTERN twice called the Marshall Police Department dispatcher. During those calls, MORGENSTERN claimed to have taken hostage a father and son in their home in Marshall. The address provided to police was the residence of D.R. Shortly after each call to Marshall Police, MORGENSTERN tweeted D.R. that he was in the process of “swatting” D.R.
According to the defendant’s guilty plea and documents filed in court, on January 9, 2015, MORGENSTERN called the Marshall Police dispatch and, claiming to be D.R., threatened to “shoot up” Marshall High School in 30 minutes and kill everybody. MORGENSTERN then tweeted from the account, @RIURichHomie that D.R. was going to shoot up a school in 10 minutes. On January 11, 2015, an email was sent to the Superintendent of the Marshall Public Schools, which had purportedly been sent by D.R. The sender claimed to be D.R. and that D.R. and had planted a bomb in at a Marshall, Minn., school that would detonate at 10:00 a.m. the following day. The sender also claimed that he/she would arrive at a different Marshall school at the same time and shoot students and faculty members.
According to the defendant’s guilty plea and documents filed in court, MORGENSTERN engaged in additional threats, harassment, and swatting attacks against individuals in other states. For example, on or about December 24, 2014, the defendant called the Amelia, Ohio Police dispatch center and claimed to be a boy hiding in the closet while a home invasion was in progress. He falsely stated that he was calling from a residence in Amelia, and that three men broke into his house and shot his mother. On or about February 10, 2015, the defendant contacted the Amesbury, Massachusetts Police dispatch center and claimed to be a boy hiding in his closet at an address that was the residence of G.Q, a minor. He falsely stated that four black men had broken into his residence and shot his mother. The call resulted in an armed police entry into the residence, after which police concluded the call was a hoax.
“The multiple calls to law enforcement and the Marshall High School spread fear and taxed the resources of the Police Department and the school,” said Marshall Police Chief Rob Yant. “Even after the first couple of threats, when it appeared that they were being done as a hoax, we had to take them seriously because what if we hadn’t and they turned out to be real? The Internet has made us vulnerable to these types of threats, even when the perpetrator turns out to be halfway across the country, and it has also made it easier for people making the threats to conceal their location and identity. Local police departments do not have the time or the expertise to investigate these cases. That is why we are so grateful for the assistance of the FBI and the US Attorney’s Office in locating and bringing the perpetrator to justice in this case.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Marshall Police Department.
This case is being prosecuted by the United States Attorney’s Office for the District of Minnesota.
Defendant Information:ZACHARY LEE MORGENSTERN, 19
Cypress, Tex.Convicted:
- Threats to kill, 1 count
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN VASQUEZ-ALVARADO, age 47, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, VASQUEZ-ALVARADO reentered the United States after having been previously deported on September 5, 2002. If convicted, VASQUEZ-ALVARADO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution
Former Union Bookkeeper Pleads Guilty to EmbzzlingRead the Press Release
Carolyn Hall, 53, of McLeansboro, Illinois, entered a plea of guilty to a one-count indictment that charged embezzlement and theft from a labor union, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Hall faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 years’ supervised release. Sentencing has been scheduled for December 1, 2015.
As part of the plea, Carolyn Hall admitted that while she was the bookkeeper for Laborer's Local 1197 she took $26,491 of cash receipts from members' dues payments and used the funds for personal use. The thefts occurred from approximately July of 2012 and continued through approximately February of 2014. Laborers' Local 1197 is part of the Laborers' International Union of North America and is headquartered in McLeansboro, Illinois. Laborers' Local 1197 provides jobs, training, and benefits to members in fourteen counties in Southern and Central Illinois.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of Laborer's Local 1197. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former U.S. Postal Service Employee Sentenced to Federal Prison for Theft of Postal Funds and Identity TheftRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson sentenced LARONDA D. MOORE, age 38, of Baton Rouge, Louisiana, yesterday to serve 32 months in federal prison for her conviction for aggravated identity theft and misappropriation of postal funds. Following her release from prison, MOORE will be required to serve a 2-year term of supervised release. MOORE must also make restitution to the United States and other victims in the amount of $8,922.60.
According to documents filed in this case, MOORE worked as a United States Postal Service employee at the Sunshine Post Office in St. Gabriel, Louisiana from July 15, 2013, to June 30, 2014. From at least June 1, 2014, until June 30, 2014, while working in her capacity as a Postal Service employee, MOORE stole $7,776.56 in postal funds. Also during this time, Moore stole and opened undelivered mail in order to collect personally identifiable information and fraudulently obtain the identities of citizens living in the community for which she served. MOORE then used these fraudulently obtained identities to apply for and obtain multiple lines of credit and make unauthorized purchases on behalf of the victims.
United States Attorney Green stated: “It is outrageous that Ms. Moore would betray the trust of the community and use her position as a federal employee with the U.S. Postal Service to steal and commit identity theft in order to enrich herself. Her actions undermine the honest and hard work performed everyday by the vast majority of those working for the U.S. Postal Service. I greatly appreciate the through investigative efforts of the Office of the Inspector General for the U.S. Postal Service in uncovering these criminal acts.”
U.S. Postal Service, Office of Inspector General, Special Agent-in-Charge Maximo Eamiguel stated: “The United States Postal Service understands the sacred trust that the public invest in it on a daily basis. We do not tolerate employees of our agency utilizing their position of public trust to defraud those that they serve. We are committed to the immediate and vigorous prosecution of any individual involved in such activities.”
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the United States Postal Service, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
Former Spring Valley Mayor Noramie Jasmin Sentenced to Four Years in Prison for Extortion and Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that NORAMIE JASMIN, the former mayor of Spring Valley in Rockland County, was sentenced today in federal court in White Plains to four years in prison for fraud and extortion, charges that stemmed from her misuse of her position as mayor in an effort to enrich herself. JASMIN negotiated a 50% stake in a development company and $5,000 cash for herself in exchange for her use of her office to obtain land and various government approvals to construct a community center in Spring Valley. JASMIN was convicted in April after a one-week bench trial before U.S. District Judge Colleen McMahon, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “By abusing her position as mayor for her own personal gain, Noramie Jasmin betrayed the trust the people of Spring Valley put in her. As the conviction and prison sentence today make clear, we do not accept public corruption in New York as the status quo. I would like to thank our partners at the FBI, the Rockland County District Attorney’s Office, and the Spring Valley Police Department for their excellent work in this important case.”
According to the evidence presented at trial, the Indictment, and the Complaint:
NORAMIE JASMIN was sworn in as Mayor of the Village of Spring Valley, New York in December 2009. From September 2011 through April 2013, JASMIN accepted cash and other benefits from an undercover FBI agent (the “UC”) and a witness cooperating with the Government (the “CW”) on multiple occasions in exchange for official acts. The scheme centered on the development of a community center in the Village of Spring Valley whose construction costs were expected to be at least $12 million. In exchange for her vote in favor of the sale of land owned by Spring Valley to a company she believed was controlled by the UC, JASMIN demanded a secret ownership stake in the company. JASMIN also asked for an advance on her profits from the scheme and accepted a $5,000 cash payment from the CW. In support of the scheme, JASMIN directed the UC to find people to pose as bidders for the project so that the transaction would appear legitimate to the other members of the Spring Valley Board of Trustees who were to, and did, vote on the sale. Over the course of two days, JASMIN met the UC, together with two other undercover FBI agents posing as straw bidders (the “Straw Bidders”), in hotel rooms and instructed the Straw Bidders on how to make a presentation before the Spring Valley Board of Trustees such that the Straw Bidders would lose their purported bids on the land sale. JASMIN then presided over the presentations made by the company in which she had a secret financial stake and the fake presentations that she had helped prepare. The following day, JASMIN presided over a Village Board of Trustees meeting, during which she asked the Board for permission to negotiate the sale of Village land to the UC’s company and then voted a “strong yes” to grant herself that permission. When questioned as to why the Board needed to vote to grant her that permission, JASMIN remarked that she “cannot sit behind closed doors with a developer to negotiate on behalf of the Board.” The evidence showed that that was precisely what she did; she sat behind closed doors and negotiated a financial stake for herself in the days preceding the vote.
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In addition to her prison sentence, JASMIN, 51, of Spring Valley, New York, was sentenced to three years of supervised release and ordered to pay $15,000 in restitution of her salary and to forfeit $5,000. JASMIN was ordered to surrender to the Bureau of Prisons on November 2.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the Rockland County District Attorney’s Office, and Chief Paul Modica and the Spring Valley Police Department.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom and Jessica K. Feinstein are in charge of the prosecution.
Former President of Chicago Construction Company Indicted in $1.9 Million Union Fraud SchemeRead the Press Release
CHICAGO — The former president of a Southwest Side construction company paid off-the-books cash wages to workers and under-reported their hours as part of a scheme to defraud the benefit funds of the employees’ labor union, according to a federal indictment unsealed Friday.
While serving as president of My Baps Construction Corp., YASHVANT C. PATEL paid less-than-union-scale wages to dozens of employees, including illegal aliens, in order to reduce the employer contributions to the benefit funds of the Construction and General Laborers’ District Council of Chicago and Vicinity, according to the indictment. Patel falsely reported that My Baps and a sister company, Vijay Construction Corp., owed approximately $600,000 less to the benefit funds and approximately $1.3 million less to the companies’ employees than what was required by collective-bargaining agreements with the union, the indictment states.
Patel, 59, of St. Charles, was arrested Friday morning. He is scheduled to make an initial court appearance at 11:30 a.m. today before U.S. Magistrate Judge Daniel G. Martin in Chicago.
The indictment charges Patel with four counts of mail fraud and four counts of making false statements in documents required to be kept pursuant to the Employee Retirement Income Security Act (ERISA). The indictment seeks forfeiture from Patel of $1.9 million.
From January 2009 through October 2010, Patel controlled the daily operations and finances of My Baps and Vijay, both of which operated as concrete and asphalt contractors while sharing a principal place of business at 7601 S. Kedzie Ave. in Chicago, the indictment states. Patel had authority over the bank accounts of both companies, and he approved expenditures to outside entities, including monthly payments to the benefit funds, according to the indictment. The benefit funds, in turn, provided union members with pension, health and training benefits. Pursuant to collective-bargaining agreements, My Baps and Vijay were required to pay their employees certain wages, and to provide the benefit funds with monthly remittance reports identifying the hours worked and the total contribution due for each covered employee, according to the indictment.
The indictment charges that Patel under-reported approximately 33,000 hours of work performed by his employees, some of whom were not lawfully entitled to work in the United States, resulting in purportedly lower employer contributions into the union’s benefit funds. Patel paid many of these workers in under-the-table cash payments, at wages that were less than what was required by the collective-bargaining agreements, the indictment states.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago, Section of Labor Racketeering & Fraud Investigations; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Each count of mail fraud carries a maximum sentence of 20 years in prison, a $250,000.00 fine and mandatory restitution. Each count of making false statements in ERISA documents carries a maximum sentence of five years in prison, a $250,000 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 Christopher McFadden.
Indictment
Former Oakland Accountant Sentenced to over Four Years in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
OAKLAND – Robert Thomas Doyle was sentenced today to 51 months in prison and ordered to pay restitution in the amount of $142,031 for wire fraud and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
Doyle, 64, of Oakland, pleaded guilty on February 23, 2015. According to the plea agreement, during 2011, 2012, and 2013, Doyle implemented an identity theft and tax fraud scheme in which he caused the filing of a number of tax returns claiming fraudulent refunds. As part of his scheme, Doyle, a certified public accountant until 1987, created false businesses and claimed false income and expenses for his clients in order to maximize the Earned Income Tax Credit. The fraudulent income and expenses led to a larger-than-allowed claimed refund. Doyle did not ask his clients about any income earned or current or past employment history. Doyle also used the names and social security numbers of former clients to prepare and file false tax returns without these victims' knowledge or consent. On many of the tax returns, Doyle directed the refunds to be mailed to addresses where he could retrieve them or have the refunds electronically deposited into bank accounts that he controlled. Doyle was indicted on February 20, 2014, with two counts of mail fraud, in violation of 18 U.S.C. § 1341; six counts of wire fraud, in violation of 18 U.S.C. § 1343; and eight counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
The sentence was handed down today by the Honorable Jon S. Tigar, United States District Judge. Following his release from prison, the defendant will be required to serve three years of supervised release, and pay restitution in the amount of $142,031. The defendant will begin serving his sentence on October 5, 2015.
Assistant United States Attorney Thomas Moore and Special Assistant United States Attorney Jennifer Tolkoff are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former National Geospatial-Intelligence Agency Official Pleads Guilty to Making False StatementsRead the Press Release
A former National Geospatial-Intelligence Agency (NGA) official pleaded guilty to making false statements to federal investigators regarding his financial interest in a private company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Inspector General for Investigations Patricia C. Langford of NGA and Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office made the announcement.
Brian P. Hearing, 43, of Falls Church, Virginia, pleaded guilty before U.S. District Judge T. S. Ellis III of the Eastern District of Virginia to an information charging him with making material false statements to federal investigators.
According to the statement of facts filed along with his plea agreement, Hearing worked at NGA from 2011 to 2015 in its Innovision Directorate, an applied science and technology research group. Hearing admitted that, during this time, he also co-founded a private company for the purpose of developing and commercializing a certain type of automated detection system. Hearing also admitted that he inappropriately used his position with the NGA to promote the company.
In connection with his guilty plea, Hearing also admitted that, when questioned by federal agents about his involvement with the company, he lied to conceal his conflict of interest. Among other things, Hearing admitted to falsely claiming that another individual was the only founder of the company and to denying having any legal or financial connections to the company when, in fact, he co-founded the company and shared equal ownership of it.
This case was investigated by the NGA-OIG and the DCIS. The case is being prosecuted by Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul J. Nathanson of the Eastern District of Virginia.
Hearing Plea Agreement
Former Leader of Nine-Trey Gangster Bloods Sentenced to 30 Years in Prison for Role in Violent RobberiesRead the Press Release
ALEXANDRIA, Va. – Brien Keith Hughes, 32, formerly of Alexandria, was sentenced today to 360 months in prison, followed by five years of supervised release for convictions related to his role in two violent robberies where firearms were used.
Hughes pleaded guilty on March 4, 2015. According to court documents and statements made in court, Hughes, who previously served as a leader of the Nine Trey Gangster Bloods clique of the United Blood Nation transnational street gang, was involved in two violent robberies on May 13, 2013. In both instances, Hughes, along with other co-conspirators, targeted a low-level marijuana dealer and engaged in what is referred to as a “drug rip,” where after setting up a drug transaction, the purchaser robs the drug dealer of their narcotics and any other valuables. In this case, Hughes and other Bloods members executed an armed robbery of the victim and stole his narcotics, identification, vehicle, and keys.
After waiting for a period of time, Hughes and his co-conspirators, using the information found on the victim’s stolen identification, traveled to the home where the victim was residing. In addition to the victim, two other individuals, innocent bystanders who merely rented a room to the victim, were also present when the defendant and his fellow gang members made entry into the home.
The defendant and his co-conspirators, armed with handguns and zip-ties, forced entry into the home and quickly assaulted the three sleeping occupants and restrained the victims using zip-ties. Once the victims were tied up and partially blindfolded, some gang members ransacked the house looking for drugs, valuables, and weapons, while the other gang members, including the defendant, interrogated the three victims regarding the location of additional marijuana. This interrogation was particularly heinous as it involved physical and sexual assault.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the Fairfax County Police Department’s Gang Unit and the FBI’s Washington Field Office, with assistance from the Spotsylvania County Sheriff’s Department and City of Fredericksburg Police Department. Assistant U.S. Attorney Zachary Terwilliger and former Special Assistant U.S. Attorney Catherine Ahn prosecuted the case. A special thanks to our prosecutorial partners at the Spotsylvania County Commonwealth Attorney’s Office for their assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-70.
Former Investment Manager Employee Sentenced in Manhattan Federal Court to Four Months in Prison for Obstruction of Justice and PerjuryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN HART was sentenced yesterday to four months in prison in Manhattan federal court for obstruction of justice and perjury charges relating to an investigation that the U.S. Securities and Exchange Commission (the “SEC”) had conducted into potential violations of the federal securities laws. Hart previously pled guilty on March 13, 2015 to a two-count criminal information. He was sentenced by U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Preet Bharara said: “Steven Hart obstructed an SEC investigation into securities fraud by giving false testimony under oath and even going so far as to impersonate his boss when the SEC called with questions. Prosecutors and regulators cannot do their jobs properly if people deliberately obstruct their investigations, as Hart did here.”
According to the Information filed in Manhattan federal court, other court documents, and statements made in court:
HART, who was employed at an investment management firm headquartered in Englewood Cliffs, New Jersey (the “Investment Firm”), and reported directly to the president of the Investment Firm (the “Investment Firm President”), served as a portfolio manager at the firm and, in that capacity, exercised trading authority over the brokerage accounts for one of the funds managed by the Investment Firm (the “Fund”). At the same time, HART also controlled and directed Octagon Capital Partners, LP (“Octagon”), a private investment fund with its principal place of business in New York, NY. Through Octagon, HART invested his own money and the money of several of his associates.
In 2009, the SEC was investigating HART’s trading activities at the Investment Firm (the “SEC Investigation”). First, the SEC was investigating whether HART, in his capacity as a portfolio manager at the Investment Firm, had conducted improper “match trades” or “cross trades” between his personal fund, Octagon, and the Fund. The SEC was also investigating whether HART had traded in securities based on material non-public information (“MNPI”) relating to confidentially-marketed securities offerings – information that HART had obtained while being solicited to invest in those offerings.
As part of this investigation, SEC officials, among other things, issued a subpoena to the Investment Firm, care of the Investment Firm President, seeking the production of several different categories of documents. HART received the subpoena at the Investment Firm before it was seen by any other employee and produced documents to the SEC in New York without (1) informing anyone else at the Investment Firm about the subpoena, or (2) informing the SEC that it was HART alone who responded to the subpoena.
Moreover, in the course of providing sworn testimony to the SEC, HART made several materially false statements. He falsely testified that the Investment Firm President had agreed that HART should conduct match trades involving the Fund as part of an investment strategy for the Fund. HART also falsely testified that he and the Investment Firm President had discussed the SEC Investigation, and that the Investment Firm President was aware that HART had been subpoenaed to testify before the SEC.
On two occasions, HART impersonated the Investment Firm President during telephone conversations with the SEC. Specifically, on December 9, 2009, an SEC attorney called the Investment Firm to speak with the firm’s President about the SEC Investigation. HART received the phone call and pretended to be the Investment Firm President. During that call, HART, speaking as the Investment Firm President, falsely stated that: (1) the Investment Firm President was aware that HART had engaged in improper trading activity, but nevertheless wanted HART to remain an employee of the Investment Firm; and (2) the Investment Firm President was aware of, and had approved, HART’s match trading activity as a means for the Fund to dispense of restricted shares of stock.
On December 11, 2009, the same SEC attorney, along with a second SEC attorney, called the Investment Firm again to speak with the firm’s President. HART again received the phone call and pretended to be the Investment Firm President. During that call, HART, speaking as the Investment Firm President, falsely stated to the SEC attorneys that: (1) HART’s match trading activity was an intentional strategy of the Investment Firm to take a loss on the trading in exchange for the ability to sell otherwise restricted shares of stock; (2) HART was still a valued employee of the Investment Firm who had earned the Investment Firm far more than whatever amount HART had gained through match trading; and (3) HART had fully disclosed to the Investment Firm President that HART had traded based on MNPI and that this was a one-time mistake that would not happen again. Each of these statements was false.
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In addition to the prison term, Judge Failla sentenced Hart, 42, who currently resides in Manhattan, New York, to two years’ supervised release.
Mr. Bharara thanked the U.S. Securities and Exchange Commission for its assistance in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason H. Cowley is in charge of the prosecution.
Former Intelligence Agency Official Pleads Guilty to Lying to Federal AgentsRead the Press Release
ALEXANDRIA, Va. – Brian P. Hearing, 43, of Falls Church, Virginia, a former official with the National Geospatial-Intelligence Agency (NGA), pleaded guilty today to lying to federal investigators to conceal his ownership of a private company he was inappropriately using his official position to promote.
According to the statement of facts filed along with his plea agreement, Hearing worked at NGA from 2011 to 2015 in its Innovision Directorate, an applied science and technology research group. Hearing admitted that, during this time, he also co-founded a private company for the purpose of developing and commercializing a certain type of automated detection system. Hearing also admitted that he inappropriately used his position with the NGA to promote the company.
In connection with his guilty plea, Hearing also admitted that, when questioned by federal agents about his involvement with the company, he lied to conceal his conflict of interest. Among other things, Hearing admitted to falsely claiming that another individual was the only founder of the company and to denying having any legal or financial connections to the company when, in fact, he co-founded the company and shared equal ownership of it.
Hearing faces a maximum penalty of five years in prison when sentenced on Nov. 13, 2015. 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; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Patricia C. Langford, Assistant Inspector General of NGA; and Paul Sternal, Acting Special Agent in Charge for the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
This case was investigated by the NGA Office of Inspector General and DCIS. Assistant U.S. Attorney Paul J. Nathanson of the Eastern District of Virginia, and Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section are 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. 1:15-cr-214.
FnD Gang Member Pleads GuiltyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRIAN BENSON, a/k/a “Dub,” a/k/a “Dubba,” age 31, of New Orleans, pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbigny gang, or “FnD.”
BENSON pled guilty to two counts of the Third Superseding Indictment. Count 1 charged BENSON with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. The maximum sentence for Count 1 is a term of life imprisonment. BENSON also pled guilty to Count 2, charging conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, for which BENSON faces a mandatory minimum of 20 years in prison and a maximum of life imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing on November 4, 2015.
According to court documents, FnD constituted a racketeering “enterprise” under federal law. BENSON, as a member of this enterprise, conspired to commit numerous overt acts in furtherance of this enterprise. These acts included the distribution of illegal narcotics, such as heroin and crack cocaine. FnD members used a store, the Frenchmen Meat Market, located at Frenchmen and N. Derbigny streets to sell drugs. As set forth in plea documents, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) raided the store in August 2013 pursuant to a search warrant. Agents seized video surveillance recordings from the store that showed BENSON and other members of FnD selling drugs over the course of five days.
CRYSTAL SCOTT, RICHMOND SMITH, GRALEN BENSON, and JEREMIAH JACKSON have previously pled guilty and are awaiting sentencing. TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, and AKEIN SCOTT are scheduled for trial on October 19, 2015.
The Indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.
Florida Man Pleads Guilty to Multiple Lacey Act Violations for Trading Illegal SnakesRead the Press Release
Gerard Kruse, 42, a social worker who lives in Oviedo, Florida, pleaded guilty today in federal court in Brooklyn, New York, to 13 Lacey Act violations for his role in the trade of illegally caught snakes, the Justice Department’s Environment and Natural Resources Division announced.
Kruse pleaded guilty to seven counts of illegal transport of wildlife and six counts of illegal receipt of wildlife, which under the facts of the case are misdemeanors under the Lacey Act. At the time of the crimes, Kruse was living in Douglaston, New York. In court documents, Kruse admitted that between 2008 and 2012, he knowingly participated in violations, which involved the illegal collection, transport and receipt of 59 snakes that were collected from and protected by various states, such as New Jersey, California and Oregon. Under the Lacey Act, it is illegal to knowingly ship or receive snakes in interstate commerce that were taken in violation of state law. During the course of his conduct, Kruse personally collected protected snakes and shipped them to collectors in other states. Sometimes he received money for the reptiles; other times he bartered snakes. In addition, Kruse would solicit snakes from out-of-state collectors, while knowing that those collectors had procured their snakes illegally. The last charge of the information deals with Kruse’s involvement in the shipment of a diamondback rattlesnake from Texas to Douglaston in a coffee can, in violation of U.S. Postal regulations.
The Lacey Act is an important statute for protecting our nation’s wildlife against those who make enforcement of state laws difficult by crossing state lines with protected species,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “All of our protected species, including reptiles, are important to our ecosystems and must be shielded from such illegal trafficking. The Justice Department will continue to vigorously support efforts against domestic wildlife trafficking.”
According to the terms of the pela agreement, the government will seek 13 months of home confinement with electronic monitoring, a request which is unopposed by the defense. In addition, Kruse has agreed to be placed on probation and subject to special conditions such as forfeiture of his snakes and being banned from the collection, sale and trade of reptiles and amphibians. Terms of Kruse’s sentence that the parties could not agree on will be decided at a sentencing hearing set for Dec. 15, 2015.
The case was investigated by agents of the U.S. Fish and Wildlife Service as part of Operation Kingsnake. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.
Federal Jury Convicts Jemez Pueblo Man on Felony Murder ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict this afternoon finding Gavin Yepa guilty on a felony murder charge after a ten-day trial, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Yepa, 30, a member and resident of Jemez Pueblo, was arrested on Jan. 3, 2012, on a criminal complaint charging him with killing a 38-year-old Navajo woman during a sexual assault that took place at Yepa=s residence on Jemez Pueblo on the night of December 28, 2011. Yepa previously had been arrested on tribal charges on Dec. 28, 2011, and remained in tribal custody until his arrest on the criminal complaint.
In Jan. 2012, a federal grand jury indicted Yepa on a felony murder alleging that the victim died as the result of an aggravated sexual assault by Yepa. Trial of the case was delayed by interlocutory appeals. The trial commenced on July 27, 2015, and concluded this afternoon when the jury returned a guilty verdict on the sole charge before them.
The evidence at trial established that Yepa met the victim in San Ysidro, N.M., on the evening of Dec. 28, 2011, and took her to his residence. Shortly before midnight, Yepa contacted tribal officials and reported that there was a woman in his home who was not breathing. When Yepa escorted the officials into his residence, they observed a large amount of blood on the floor throughout the house and found the victim’s nude body, which was covered with blood, in a bedroom.
After finding the victim’s body, the tribal officials notified the Jemez Pueblo Trial Police Department who then notified the FBI. The FBI then initiated an investigation into the victim’s death. The investigation revealed that Yepa had numerous scratches and abrasions on his arms, torso and legs as well as blood on his hands, feet and clothing. Forensic investigation determined that the victim was the source of the blood on Yepa.
An examination of the victim’s body revealed that she had been brutally sexually assaulted, and the investigation revealed that a water bottle, a liquor bottle and the handle of a shovel, all of which were found at the crime scene, were used to assault her. DNA analysis confirmed that the victim’s blood was all three items.
Yepa has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Yepa faces a mandatory sentence of life imprisonment.
This case was investigated by the Albuquerque office of the FBI with assistance from the Jemez Pueblo Tribal Officials, the Jemez Pueblo Tribal Police Department and the Crime Scene Unit of the New Mexico State Police. Assistant U.S. Attorney Niki Tapia-Brito and Linda Mott are prosecuting the case.
The prosecution of this case is part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Family Members Sentenced for Roles in Marriage Fraud SchemeRead the Press Release
DALLAS — A North Texas mother and her daughter, along with seven other family and extended family members, have been sentenced for their roles in a marriage fraud conspiracy that began more than 20 years ago, announced John Parker, U.S. Attorney for the Northern District of Texas.
Frances Sandoval, 61, and her daughter, Monica Morena, 32, were each sentenced last week, by U.S. District Judge David C. Godbey, to 65 months and 48 months, respectively, in federal prison. In addition, Sandoval was ordered to forfeit $45,850, and Morena was ordered to forfeit $21,710, the proceeds each received for participating in the conspiracy.
Both Sandoval and Morena pleaded guilty in March 2015 to conspiracy to commit fraud in connection with immigration documents and aggravated identity theft. They prepared and filed fraudulent applications for family unity, which included counterfeit birth certificates and fraudulent income tax returns and affidavits. They used the fraudulent documents to make it appear that aliens without lawful status in the U.S. were children of U.S. citizens or lawful permanent residents. For identity documents for the “parents,” Sandoval and Moreno used actual naturalization certificates and copies of permanent resident cards that Sandoval obtained from her tax clients, without the clients’ knowledge or permission. Sandoval engaged in this scheme for more than 20 years and is responsible for more than 350 fraudulent filings. Moreno engaged in the scheme for more than 10 years.
Five of the seven remaining defendants, Adolfo Moreno, 24; Edward Moreno, Jr., 30; Claudia Gonzalez, 35; Lidia Saldana, 40; and Cassandra Gonzalez, 23; pleaded guilty to marriage fraud or conspiracy to commit marriage fraud. Each was sentenced to two years of probation, to include 120 days of home confinement, and fines ranging from $2,000 to $5,000. Adolfo Moreno, Edward Moreno, Jr., and Lidia Saldana are also Frances Sandoval’s children.
One defendant, Marsha Garcia, 53, pleaded guilty to one count of conspiracy to defraud the U.S. She was observed creating a counterfeit birth certificate that she knew was going to be submitted in one of the fraudulent I-817 (Application for Family Unity Benefits) filings. She was sentenced to two years of probation, to include 120 days of home confinement, and ordered to pay a $1,000 fine.
A federal jury convicted one defendant, Bartola Contreras, 55, who is Frances Sandoval’s husband, in March 2015 on one count of conspiracy to commit marriage fraud. He was sentenced to six months in federal prison and ordered to pay a $2,000 fine.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from U.S. Citizenship and Immigration Services (USCIS) Office of Fraud Detection and National Security, investigated the case. Special Assistant U.S. Attorney Michelle D. Allen-McCoy prosecuted.
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Eight Defendants Sentenced in $24 Million Stolen Identity Tax Refund Fraud RingRead the Press Release
9,000 Identities Stolen from the U.S. Army, Alabama State Agencies, a Georgia Call Center and a Georgia Company
Eight residents of Alabama and Georgia were sentenced today to serve more than 31 years in prison, collectively, for their roles in a $24 million stolen identity refund fraud (SIRF) conspiracy, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
U.S. District Court Judge Kristi K. DuBose of the Southern District of Alabama imposed the following sentences:
- Tracy Mitchell, of Phenix City, Alabama, was sentenced to serve 159 months in prison, three years of supervised release and ordered to pay a forfeiture judgment in the amount of $329,242, which was seized in cash from her residence;
- Talarius Paige, of Phenix City, was sentenced to serve 60 months in prison, three years of supervised release and ordered to pay $762,512 in restitution to the Internal Revenue Service (IRS);
- Mequetta Snell-Quick, of Columbus, Georgia, was sentenced to serve 24 months and one day in prison, two years of supervised release and ordered to pay $199,471 in restitution to the IRS ;
- Latasha Mitchell, of Phenix City, was sentenced to serve 36 months in prison, two years of supervised release and ordered to pay $513,821 in restitution to the IRS ;
- Dameisha Mitchell, of Phenix City, was sentenced to serve 65 months in prison, three years of supervised release and ordered to pay $440,176 in restitution to the IRS;
- Sharonda Johnson, of Phenix City, was sentenced to serve 24 months in prison, two years of supervised release and ordered to pay $440,176 in restitution to the IRS;
- Patrice Taylor, of Midland, Georgia, was sentenced to serve 12 months and one day in prison, two years of supervised release and ordered to pay $28,783 in restitution to the IRS; and
- Cynthia Johnson, of Phenix City, was sentenced to two years of probation and ordered to pay $5,047 in restitution to the IRS.
The sentencing of Keisha Lanier, of Seale, Alabama, is scheduled on Aug. 24. Tamaica Hoskins, a co-defendant who was charged in the same indictment, was sentenced on June 25 to serve 145 months in prison. Tamika Floyd, a defendant in a related case, was sentenced on May 19 to serve 87 months in prison.
“These conspirators abused their access to government and private databases to steal thousands of identities, including those of soldiers deployed in Afghanistan, and filed false tax returns seeking over $20 million in fraudulent refund claims,” said Acting Assistant Attorney General Ciraolo. “The significant prison sentences and financial penalties imposed today reflect the seriousness of this criminal conduct and send a clear message that those who victimize U.S. citizens and steal from the U.S. Treasury will be prosecuted to the fullest extent of the law.”
According to information in court documents and at the sentencing hearings, between January 2011 and December 2013, Lanier and Tracy Mitchell led a large-scale identity theft ring in which Lanier, Tracy Mitchell and their co-defendants filed more than 9,000 false individual federal income tax returns that claimed more than $24 million in fraudulent claims for tax refunds. The IRS paid out close to $10 million in refunds on these fraudulent claims. The defendants obtained the stolen identities from various sources, including from the U.S. Army, several Alabama state agencies, a Georgia call center and employee records from a Georgia company. Mitchell worked at the hospital located at Fort Benning, Georgia, where she had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan. She stole the personal information of soldiers and used that information to file false tax returns.
“Today’s sentencing of eight criminals, who used the identities of American service members and hospital patients to enrich themselves by stealing tax refunds, demonstrates the depths of how far criminals will stoop and the extent to which IRS-CI will go to fight identity theft,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “We will use every available resource in collaboration with our law enforcement partners to combat these serious crimes.”
“Today's sentences show our unwavering commitment to aggressively pursue cases of cybercrime and protect the men and women serving our nation,” said Director Daniel Andrews of the U.S. Army Criminal Investigation Command's (CID) Computer Crime Investigative Unit. “These defendants stole personal identities for monetary gain, and their sentences should resonate with would-be criminals that we can, and we will, hold them accountable for their crimes.”Floyd stole personal information from two Alabama state agencies and provided those names to Lanier. Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Paige and others to file false tax returns. Lanier also obtained stolen identities from the Alabama Department of Corrections. Paige and Taylor worked in a call center for a payment-processing company in Columbus and stole identities. Paige, in turn, used those identities to file false tax returns, some of which he filed from Tracy Mitchell’s residence. Tracy and Latasha Mitchell also obtained employee files from a Columbus company and used those identities to file false tax returns.
In order to file the false tax returns, the defendants obtained several IRS Electronic Filing Numbers in the names of sham tax businesses. On behalf of those sham tax businesses, the defendants applied for bank products from various financial institutions. Under the guise of a legitimate business account, the institutions mailed blank check stock to the defendants’ homes. The defendants directed the IRS to pay anticipated tax refunds to prepaid debit cards, in U.S. Treasury checks and to financial institutions, which in turn issued the tax refunds via prepaid debit cards or checks. When the refunds were sent through the financial institutions, the defendants simply printed out the refund checks from the check stock that had been sent to their homes.
After a period of time, the financial institutions stopped permitting the defendants to print out the tax refund checks. To continue the scheme, Tracy Mitchell and members of her family recruited U.S. Postal Service employees. The corrupt postal employees specified addresses along their postal routes to have the U.S. Treasury checks mailed, then obtained those checks and turned them over to the defendants for a fee.
The scheme also involved a complex money laundering operation. Almost $10 million in fraudulent tax refund checks were cashed at several businesses located in Alabama, Georgia and Kentucky. To coordinate this massive check cashing scheme, the defendants communicated using text messages and maintained detailed records. For instance, Sharondra Johnson worked at the Walmart money center in Columbus, where she cashed checks for customers as part of her job. Dameisha Mitchell recruited Sharondra Johnson to cash tax refund checks that were fraudulently issued in the names of other individuals. Sharondra Johnson agreed to cash the checks and communicated with Dameisha and Tracy Mitchell via text messages. In an attempt to conceal the crime from Walmart, the defendants had multiple individuals deliver the tax refund checks to Johnson for her to cash them.
At sentencing, the government offered victim impact statements from several individuals whose identities were stolen, and from companies and governmental agencies where the identity theft breaches occurred. As one agency representative noted, the identity theft was not only devastating financially, but it also had a chilling effect on their ability to serve the residents of this state. A mother of a young U.S. Army soldier who was an identity theft victim described the consequences of the fraud on her and her family, stating:
While [my son] was fighting for our country and all back home[,] I received a very disturbing phone call from [an] Agent [] from the IRS that my son[,] while at Ft. Benning training to defend our country[,] the land of the free[,] had his identity stolen and fraudulent tax returns were filed with his social security number. This news was devastating to think that my [] 19-year-old son[,] who was defending the very freedom this country stands [for] [,] was wronged by one of those people [he] was willing to die for. My whole family could not believe what was happening. We now had to worry about this terrible act by one of our own. As I tried my best to keep composed and handle all of the gruesome mounds of paperwork to get this straightened out with the IRS, [my son] was then denied his tax refund. This created a financial hardship on [him]. We were too afraid to tell [him] while he was deployed because we did not want to worry him and we wanted him to focus only on getting home alive and not have to worry about such an atrocious act by someone who did not even know [him].
“No sentence is too strong for those who prey on our fighting men and women,” said U.S. Attorney Beck Jr. “War is hell on the home front, too, and the family left behind holding things together must be strongly protected.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of the IRS-Criminal Investigation and the U.S. Army-CID, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorneys Todd A. Brown, Jonathan S. Ross and Kevin P. Davidson of the Middle District of Alabama, who prosecuted the case. Ciraolo and Beck Jr. also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Dorchester Man Pleads Guilty to Conspiring to Transport an Individual for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE - Enoc Ayuso, 26, of Dorchester, Massachusetts, appeared in United States District Court on Thursday and pled guilty to conspiring to transport an individual in interstate commerce for prostitution, announced Acting U.S. Attorney Donald Feith.
In February of 2014, the Homeland Security Investigations, Manchester, New Hampshire and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a minor female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution, including Ayuso.
Ayuso is scheduled to be sentenced in November of 2015.
“Ever since the passage of the Mann Act in 1948, the federal government has been investigating and prosecuting those who would transport individuals for the purpose of sexual activity. The transportation of minors for purposes of commercial sex activity is particularly egregious and is a primary enforcement priority for federal law enforcement,” stated Acting United States Attorney Donald Feith. “This office will work with local, state and federal law enforcement to secure convictions of and punishment for those who prey on children and use them for their financial advantage.”
The case was investigated by the Homeland Security Investigations, Manchester, New Hampshire and the Salem, New Hampshire Police Department, in conjunction with the police departments of Boston, Massachusetts and Manchester, New Hampshire, as well as the New Hampshire Internet Crimes Against Children Task Force (NH ICAC). This case is being prosecuted by Assistant United States Attorneys Nick Abramson and Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Council Bluffs, Iowa Resident Sentenced to 75 Months Possession of a Firearm by a Prohibited PersonRead the Press Release
Council Bluffs, IA - On August 6, 2015, Timothy Andrew Frieze, a 50 year old resident of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge Robert Pratt to seventy-five months in prison for possessing a firearm after a felony conviction. Senior Judge Pratt also ordered Frieze to serve a term of three years of supervised release when he completes his imprisonment. On August 14, 2014, Frieze pled guilty to Possession of a Firearm by a convicted felon. The charge was the result of an investigation being done by the Southwest Iowa Narcotics Task Force into drug trafficking in Council Bluffs, Iowa. On October 11, 2013, Frieze was seen leaving a residence that was under law enforcement surveillance for suspicion of narcotics trafficking. Frieze was stopped by law enforcement and found to be carrying a Raven .25 caliber handgun. Frieze was prohibited from possession of the firearm based on several prior convictions for felony offenses.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, the Council Bluffs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Corinna Man Sentenced to 6 Months for Being an Accessory to Township 37 Marijuana GrowRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Berg, 52, of Corinna, Maine, was sentenced in U.S. District Court by Judge John A. Woodcock, Jr. to 6 months in prison and one year of supervised release for being an accessory after the fact to the manufacture of 1,000 or more marijuana plants. An accessory after the fact is a person who, knowing that an offense against the United States has been committed, comforts or assists the offender in order to hinder or prevent his apprehension, trial or punishment. He was also ordered to pay a $10,000 fine. Berg pleaded guilty to the charge on January 7, 2014.
According to court records, following the September 22, 2009 discovery by law enforcement officers of a large, sophisticated marijuana growing operation in Township 37 in Washington County, Berg provided assistance to those who committed the crime. Specifically, Berg was aware that Malcolm French, Rodney Russell and Kendall Chase and a number of migrant workers were growing marijuana in Township 37. When it was discovered, several offenders including migrant workers, fled into and hid in the woods of Township 37. Shortly thereafter, at French’s request, Berg drove to Township 37 with another individual, located the migrant workers, took them to his Corinna residence and hid them in his barn. He also gave them food and clothing. A day or two later, another individual picked up the migrant workers at Berg’s barn and drove them out of state.
The case was investigated by the Maine Drug Enforcement Agency, U.S. Department of Homeland Security, Office of Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation, with assistance from the U.S. Drug Enforcement Administration.
Chelsea Woman Sentenced to 21 Months for Being an Accessory to a Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Nicole A. Breton, 21, of Chelsea, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 21 months in prison and three years of supervised release for being an accessory after the fact to a pharmacy robbery. An accessory after the fact is a person who, knowing that an offense against the United States has been committed, comforts or assists the offender in order to hinder or prevent his apprehension, trial or punishment. Breton pleaded guilty to the charge on February 9, 2015.
Court records show that on the evening of September 2, 2014, Dominic J. Pomerleau robbed the Rite Aid Pharmacy located on Hospital Street in Augusta, Maine. He approached the pharmacy counter with a note that demanded oxycodone and absconded with three bottles of oxycodone. Breton was waiting for Pomerleau in a getaway car. She emptied the pills from the bottles and threw the empty bottles and caps out the car window. Pomerleau, Breton, and the driver of the car fled to Breton’s residence and spent the night there. They consumed many of the pills that were taken from the robbery. The robbery was captured on surveillance video and witnesses provided descriptions of Pomerleau and his distinctive arm and neck tattoos. Pomerleau pleaded guilty to pharmacy robbery and attempted pharmacy robbery charges on January 23, 2015 and awaits sentencing.
In imposing sentence, Judge Woodcock said: “If you commit a serious crime and you end up in federal court you will get a serious sentence.”
The investigation was conducted by the Augusta Police Department and the Federal Bureau of Investigation.
Broward County Tax Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
A Broward County tax preparer was sentenced to 33 months in prison, followed by one year of supervised release, and was ordered to pay restitution in the amount of $58,626.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Hugo Jean Joseph, 60, of Coral Springs, was previously convicted at trial of eleven counts of preparing false tax returns for his clients.
As shown at trial and in court documents, Jean Joseph and co-defendant Guencia Piard a/k/a Guencia Toussaint operated Lakay Multi Services (LMS), a tax return service with locations in Pompano Beach, Naples and Fort Myers, Florida. Jean Joseph and Piard prepared and filed fraudulent tax returns on behalf of their customers during the 2006 to 2008 tax years by using false Schedule A deductions (such as those for medical and unreimbursed employee business expenses), false Schedule C expenses, false education expenses, and false credits for federal fuel tax without their clients’ knowledge or consent. By inflating their clients' deductions, expenses, education credits, and fuel tax credits, Jean Joseph and Piard attained higher tax refunds for their clients which attracted a greater volume of clients. Jean Joseph and Piard kept a portion of the fraudulently inflated tax refunds as payment for their services.
Jean Joseph and Piard prepared at least 76 false tax returns for twenty-one sets of clients for tax years 2006, 2007, and 2008. Sometimes, Jean Joseph and Piard provided clients with copies of their respective tax returns which were different from the tax returns filed with the IRS. At least 21 of the 76 tax returns filed with the IRS reported a higher tax refund than the copy of the tax return provided to the client.
The total tax loss to the IRS was $283,834.
Co-defendant Piard was sentenced on August 7, 2014 to 24 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $283,834. Piard pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Couple Sentenced in Manhattan Federal Court for Massive Internet Identity Theft and Credit Card Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RANA KHANDAKAR, and USAWAN SAELIM were sentenced today to 56 and 36 months in prison, respectively, for engaging in a massive internet credit card fraud and identity theft scheme. KHANDAKAR and SAELIM were convicted in July 2014 following a three-week jury trial before U.S. District Judge John G. Koeltl, who imposed their sentences.
Manhattan U.S. Attorney Preet Bharara said: “Khandakar and Saelim used the internet to engage in a smorgasbord of frauds, ranging from the unauthorized sale of EZPass tags to Medicaid fraud. For their years of cyber scamming, the defendants now face years in federal prison.”
According to the Superseding Indictment, evidence admitted at trial, and submissions made in connection with sentencing:
From 2008 through 2012, KHANDAKAR and SAELIM engaged in a large-scale and sophisticated cyber fraud involving millions of dollars in completed and attempted fraudulent charges on hundreds of stolen credit cards and debit cards. The defendants’ fraud consisted principally of two types of schemes from which they netted over $1 million worth of goods, services, and cash. In one type of scheme, the defendants used stolen credit and debit card numbers to buy goods, such as EZ Pass tags, baby care items, gift cards, movie tickets and computers, and then resold those items online. The second scheme involved the use of stolen identities to set up merchant processing accounts, which were then used to incur charges on stolen credit cards for the benefit of the defendants. In addition, KHANDAKAR and SAELIM used stolen personal identifying information of their victims to establish fake businesses, open bank accounts, acquire and manufacture credit and debit cards, and create counterfeit checks, among other things.
One way in which the defendants obtained the personal identifying information of their victims was by posting fake job listings online, in which they required applicants to submit their Social Security number and other personal identifying information. The defendants also used stolen credit and debit account information to obtain goods and services for their personal use, such as food delivery, pet insurance, entertainment, and cash. Throughout the course of their fraud scheme, while amassing hundreds of thousands of dollars in ill-gotten gains, the defendants were also defrauding the Medicaid program, by collecting thousands of dollars in health insurance benefits intended for low-income individuals to which they were not entitled.
The Fraudulent Purchase and Re-Sale of EZ Pass Tags and other Items
KHANDAKAR and SAELIM used at least 50 stolen American Express credit cards to purchase EZ Pass tags and credits. They then resold the tags and credits through two websites they founded – www.drezpass.com and www.ezpasstag.com. Neither of these websites was an authorized EZ Pass retailer. The defendants also purchased baby care items using stolen credit card information and re-sold those items on another website they founded – www.udiapers.com. In addition, the defendants purchased tens of thousands of dollars of gift cards, computers, and movie tickets, and resold those items on websites such as eBay and Craigslist. Because they had obtained the merchandise for free using stolen credit cards, their profit margin in reselling the merchandise was 100% of the sale price.
The Fraudulent Merchant Accounts
In order to process credit and debit card transactions, a business must establish an account with a credit and debit card processor, known as a “merchant account.” Each merchant account is linked to a bank account associated with the business.
As part of their scheme, KHANDAKAR and SAELIM established fraudulent online merchant accounts linked to phony businesses, such as “Tips,” “La Pala Pa,” and “Cafe 007,” which they used to process bogus credit and debit card charges. The defendant used stolen personal identifying information to set up the merchant accounts, and then made unauthorized charges to those merchant accounts using stolen credit and debit card numbers.
Through these fraudulent merchant accounts, KHANDAKAR and SAELIM attempted to make millions of dollars’ worth of charges on at least 385 stolen American Express credit card accounts, and on more than 1,000 credit or debit card accounts at Citibank, JP Morgan Chase, Bank of America, and Discover, among others. In some cases, the same credit cards that incurred charges in connection with the fraudulent EZ Pass purchases were also charged in connection with the fraudulent merchant accounts.
KHANDAKAR and SAELIM were convicted of one count of conspiracy to commit mail and bank fraud; one count of access device fraud; one count of aggravated identity theft; and one count of theft from the government. In addition, Khandakar was convicted of one count of mail fraud and SAELIM was convicted of one count of bank fraud.
* * *
In addition to their prison sentences, KHANDAKAR and SAELIM were sentenced to three years of supervised release, and were each ordered to pay $263,000 in restitution and $950,000 in forfeiture.
Mr. Bharara praised the work of the Secret Service, the MTA-OIG, the Port Authority OIG, and U.S. Department Health and Human Services OIG. He also thanked the New York State Police, the New York State Department of Vehicles Field Investigative Unit, and the Social Security Administration for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Bremerton, Washington Man Pleads Guilty to Anti-Gay Hate Crime for Assault in Seattle’s Capitol Hill NeighborhoodRead the Press Release
A 38-year-old Bremerton, Washington man pleaded guilty today to a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced U.S. Attorney Annette L. Hayes and Principal Deputy Assistant Attorney General Vanita Gupta, head of DOJ’s Civil Rights Division. TROY DEACON BURNS, will be sentenced by U.S. District Judge James L. Robart on November 10, 2015. Under the terms of the plea agreement, prosecutors will recommend a prison sentence at the low end of the guidelines range as calculated by the court. However, Judge Robart is not bound by any recommendation by the parties and can impose any sentence up to the statutory maximum ten year term.
According to the plea agreement, just after midnight on January 25, 2015 three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when BURNS came up behind them and shouted homophobic slurs. BURNS was holding a knife, which he raised up over his head in a stabbing position. Fearing for their safety the men started running. As BURNS caught up to one of the men he again used a slur as he threatened to stab him. One of the other men was able to pull his friend away from BURNS. The third man located Seattle Police Officers who took BURNS into custody. While detained in the patrol car, BURNS continued to yell homophobic slurs. BURNS was under the influence of drugs and alcohol at the time of the assault and says that he does not remember his actions.
The case was investigated by the Seattle Police Department and is being prosecuted by Assistant United States Attorney Bruce Miyake and Saeed Mody, Trial Attorney, Civil Rights Division, United States Department of Justice. The King County Prosecuting Attorney’s Office is providing significant assistance with the case.
Bremerton, Washington Man Pleads Guilty to Anti-Gay Hate Crime at Seattle’s Capitol HillRead the Press Release
A 38-year-old Bremerton, Washington man pleaded guilty today to a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced U.S. Attorney Annette L. Hayes, Western District of Washington and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division. Troy Deacon Burns, will be sentenced by U.S. District Judge James L. Robart on November 10, 2015.
According to the plea agreement, just after midnight on January 25, 2015 three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when Burns came up behind them and shouted homophobic slurs. Burns was holding a knife, which he raised up over his head in a stabbing position. Fearing for their safety the men started running. As Burns caught up to one of the men he again used a slur as he attempted to stab him. One of the other men was able to pull his friend away from Burns. The third man located Seattle Police Officers who took Burns into custody. While detained in the patrol car, Burns continued to yell homophobic slurs. Burns was under the influence of drugs and alcohol at the time of the assault and says that he does not remember his actions.
The case was investigated by the Seattle Police Department and is being prosecuted by Assistant United States Attorney Bruce Miyake and Saeed Mody, Trial Attorney, Civil Rights Division, United States Department of Justice. The King County Prosecuting Attorney’s Office is providing significant assistance with the case.
Boynton Beach Resident Pleads Guilty to Participating in an Identity Theft Tax Refund Fraud SchemeRead the Press Release
A Boynton Beach resident pled guilty to possessing heroin and participating in an identity theft tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), and Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office (PBSO), made the announcement.
Christopher Richard Edwards, 25, of Boynton Beach, pled guilty today to possession with intent to distribute heroin, in violation of Title 21, United States Code, Section 841(a)(1), access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and making a material false statement by filing a false tax return with the Internal Revenue Service, in violation of 18, United States Code, Section 287. At sentencing, the defendant faces a maximum of twenty years of imprisonment for the possession with intent to distribute heroin charge, a maximum of ten years for the access device charge, a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge, and a maximum of five years imprisonment for making a false statement by filing a false tax return with the IRS.
According to the superseding information and additional court documents, a search warrant was executed at Edwards’ apartment after the defendant’s probation officer conducted a welfare check and discovered narcotics and indicia of identity theft in plain view. During the search warrant, law enforcement found approximately 159 unauthorized access devices (debit cards) in other peoples’ names, three laptop computers, an encoder/decoder, a credit card embosser, a currency counter machine, several ledgers containing personal identification information (PII), 66 capsules containing heroin, a digital scale, and a plate containing heroin residue.
A forensic examination of the access device cards revealed that they contained unauthorized unemployment benefits. An examination of Edwards’ computer revealed fraudulent filings for unemployment benefits, consistent with the unemployment benefit cards found in his apartment. The unemployment claims filed from Edwards’ computer in 2014 totaled $287,360. The investigation further revealed that Edwards filed 41 tax returns containing false information, including the names of other individuals who did not authorize Edwards to use file with their PII. Edwards claimed a total of $299,240 in false tax refunds.
The total amount of loss attributable to Edwards’ fraudulent scheme is $586,600 and the number of victims exceeds 250.
Edwards is scheduled to be sentenced on November 13, 2015 at 10:30 a.m. before United States District Judge Kenneth A. Marra.
Mr. Ferrer commended the investigative efforts of the IRS-CI, USSS, DOL-OIG, and PBSO. This case is being prosecuted by Assistant U.S. Attorney Lauren E. Jorgensen.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Arizona Man Pleads Guilty to Drug and Money Laundering ChargesRead 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 Jordan Ali, 35, of Arizona, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, as well as a separate charge of money laundering conspiracy, before U.S. Magistrate Judge Leslie Foschio. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a fine of $10,000,000.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2004 and February 1, 2012, the defendant conspired with others to distribute large quantities of cocaine and marijuana in the Buffalo area. In April 2009, Ali and co-defendant Shane Grafman began assisting one another in their drug distribution businesses. The defendants obtained the narcotics in the State of Arizona, and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
As part of his plea, the defendant admitted that he distributed between five and 10 kilograms of cocaine and more than 100 kilograms of marijuana during the course of his crimes.
"As law enforcement has now demonstrated for the second time this week, this Office will continue to target those who poison our community with large quantities of illegal narcotics," said U.S. Attorney Hochul.
A total of six defendants have been arrested in this case, four have been convicted. Grafman was convicted and is awaiting sentencing.
The plea is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Shantelle P. Kitchen; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.
Sentencing will be scheduled at a later date.
A Previously Removed Czech Citizen was Sentenced to 27 Months in Prison for Attempting to Re-Enter the U.S.Read the Press Release
Ivan Vaclavik, 68, of the Czech Republic was sentenced today to 27 months in prison, to be followed by two years of supervised release, for attempting to enter the United States illegally as an alien who was previously deported, in violation of Title 8, United States Code, Sections 1326(a) and (b)(1).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
According to court documents, Vaclavik was born in Czechoslovakia, holds a passport from the Czech Republic and is prohibited from entering the United States. Despite the prohibition, on January 13, 2015, Vaclavik boarded an 18-foot vessel in Freeport, Bahamas, bound for the United States. During the trip, the vessel lost power and began to take on water due to the turbulent waters. The boat captain, Henry Noel, radioed for assistance and the United States Coast Guard responded with air and marine assets in order to assist the sinking vessel. Vaclavik and other vessel occupants were rescued approximately 8 nautical miles off the coast of Palm Beach County, Florida.
Vaclavik was previously removed from the United States, twice, on October 8, 2013 and again on December 8, 2014, following a series of criminal convictions. Vaclavik did not apply for nor receive permission to re-enter the United States from the Secretary of Homeland Security or the Attorney General.
Noel previously pled guilty to alien smuggling, in Case No. 15-CR-80024, and was sentenced to 36 months in prison.
Mr. Ferrer commended the investigative efforts of ICE-HIS, United States Customs and Border Protection and United States Border Patrol. This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Jennifer Keene.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Thursday 6 August 2015
Woman Sentenced in Federal Court on Meth ChargesRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Heidi Elizabeth Hancock, 42, of Mobile, was sentenced today in federal court for her participation in conspiracy to manufacture methamphetamine and conspiracy to possess a List I chemical with knowledge it would be used to manufacture a controlled substance. Hancock pled guilty to the offenses on October 30, 2014. Court documents reflect that Mobile County sheriff’s deputies were looking for a co-conspirator, Justin Ryan Boles, to arrest him on active warrants. Pursuing a lead in the investigation, they knocked on the door of an apartment off Old Shell Road and Boles and other conspirators fled through another door. Other individuals were arrested and active methamphetamine labs were seized at that location. Hancock was one of the individuals involved in providing pseudoephedrine, a List I chemical used as a precursor during the methamphetamine manufacturing process. Boles was sentenced earlier this month to 168 months imprisonment for his role in the cases.
This morning, United States District Court Judge William H. Steele imposed a sentence of 84 months on each count, to be served concurrently. The judge also ordered that Hancock serve a period of supervised release of three years following her release from prison. Hancock was directed to undergo drug testing and treatment as a special condition of her supervised release. She was ordered to pay a special mandatory assessment of $200, but no fine was imposed.
Agencies participating in the investigation of the case were the Mobile County Sheriff’s Office and the Saraland Police Department. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
VA Contract Specialist Admits Using Government Credit Card to Make $28K in Unauthorized PurchasesRead the Press Release
PITTSBURGH - A McCandless resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Brian R. Kaminski, age 31, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Kaminski was a Contract Specialist employed by the Department of Veteran’s Affairs who was given a Government Purchase Card (a credit card) for use in his duties for those occasions when he needed to make incidental purchases. During the period September through November 2012, Kaminski made a series of 29 unauthorized purchases (in person and online) at four different merchants totaling just over $28,000. Kaminski then took steps to hide what he had done relative to the internal accounting procedures of the VA.
Judge Bissoon scheduled sentencing for Nov. 19, 2015 at 2:15 p.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Department of Veteran Affairs, through the Veterans Affairs Police and the Office of Inspector General conducted the investigation that led to the prosecution of Kaminski.
Utah woman admits fraudulent sale of medical deviceRead the Press Release
For Further Information, Contact:
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
SAN DIEGO – Salt Lake City resident Beth Campbell pleaded guilty in federal court today, admitting that she fraudulently sold a prescription medical device to an undercover agent who she knew did not have a prescription.
In pleading guilty, Beth Campbell admitted that she sold medical devices from her home in Utah over the Internet, and in December of 2014, she offered to sell an undercover agent a medical device without a prescription, to treat a condition for which the device was not approved for use. Campbell acknowledged that she sold the device for $3,495, knowing that a prescription was required and that the agent had no prescription.
Campbell stated that she told the undercover agent that the device required a prescription, which could be easily obtained from a chiropractor, or one could enroll as a distributor with her and then buy the device without a prescription. Campbell advised the agent that it was not necessary to sell the machines to be a distributor, but only to enroll as one to purchase the machine. Campbell admitted that when the agent expressed discomfort over the distributorship agreement, she offered to personally order a machine herself and then ship it to the agent, without a prescription or distributorship agreement.
Campbell admitted that she acted with the intent to defraud by attempting to make it appear that this transaction was a legitimate sale of a prescription medical device by ordering it herself, and falsely representing that it was a display model for a distributor.
The device, the Wellness Pro, is a prescription medical device approved by the FDA for use to treat pain, and not to treat cancer, as she claimed. The Wellness Plus device sold in this transaction was misbranded because it lacked adequate directions for use in that it was a prescription device sold to a layperson who was not under the supervision of a licensed practitioner.
Campbell is scheduled to be sentenced on November 2, 2005, at 9:00 a.m. before the Honorable Roger T. Benitez.
DEFENDANT Criminal Case No. 15cr0360-BEN
Beth Campbell Age: 54 Salt Lake City, Utah
SUMMARY OF CHARGE
Misbranding– Title 21, U.S.C., Sections 331(a) and 333(a)(2)
Maximum penalty: Three years in prison and $250,000 fineAGENCIES
Food and Drug Administration, Office of Criminal Investigations
Homeland Security Investigations
Postal Inspection ServiceUnion County, New Jersey, Man Admits Robbing Multiple New Jersey Banks at GunpointRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man today admitted robbing seven New Jersey banks at gunpoint and attempting to rob an eighth bank at the time of his arrest on July 30, 2012, U.S. Attorney Paul J. Fishman announced.
Claude Williams, 63, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count One, Count Fourteen and Count Fifteen of an indictment charging him with conspiracy to commit bank robbery, bank robbery and using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
Williams admitted that, between Sept. 26, 2011 and July 30, 2012, he robbed seven banks and attempted to rob an eighth bank, all at gunpoint. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweatshirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams admitted robbing, or attempting to rob, the following New Jersey banks:
Date
Bank
Location
Sept. 26, 2011
Financial Resources Federal Credit Union
Somerset
Nov. 21, 2011
Somerset Savings Bank
Somerville
Feb. 27, 2012
Provident Bank
Piscataway
April 17, 2012
Provident Bank
Clifton
May 22, 2012
Provident Bank
Piscataway
June 20, 2012
Fulton Bank
Metuchen
July 12, 2012
Unity Bank
Middlesex
July 30, 2012
Unity Bank
North Plainfield
Prior to the July 12, 2012 robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car and crouch down to hide. After noting the license plate number, the officer followed the car. During today’s hearing, Williams admitted that he exited the getaway car, walked toward the officer’s car and pointed his firearm at the officer, forcing the officer to leave the scene.On July 30, 2012, Williams was arrested after law enforcement observed him driving in the vicinity of the Unity Bank in North Plainfield on July 27, 2012 and July 28, 2012. He admitted today that he planned to rob the bank at gunpoint.
The conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The armed bank robbery charge carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. Sentencing is scheduled for Nov. 16, 2015.
Andrea Dorsey, 56, of Plainfield New Jersey, who admitted that she served as a lookout and getaway driver for three of the robberies, was sentenced to 87 months in prison on March 13, 2014. Teresa Webb, 45, of Plainfield, who admitted that she was the getaway driver for one of the robberies, was sentenced to 54 months in prison on May 30, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s plea. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their roles.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Courtney M. Oliva of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., Irvington
Download Williams Claude Indictment
U.S. Attorney’s Office of the Southern District of New York and FBI Announce Return of Stolen Stradivarius Violin to Heirs of Musician Roman TotenbergRead the Press Release
Stradivarius Violin, Constructed in 1734, was Missing for 35 Years Before Its Recovery by the FBI
U.S. Attorney Preet Bharara of the Southern District of New York, and Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field, announced today the return of a 1734 Stradivarius violin to the heirs of deceased violinist Roman Totenberg today at a ceremony at the U.S. Attorney’s Office in the Southern District of New York. The violin was stolen from Totenberg in 1980. It was recently recovered by the FBI following a tip to a New York City Police Department (NYPD) detective’s source about the stolen violin. The detective exercised due diligence and conducted an initial assessment before passing the case along to the FBI’s Art Crime Team.
“Today, we return to its rightful owners the centuries-old Ames Stradivarius, stolen 35 years ago from renowned violinist Roman Totenberg,” said U.S. Attorney Bharara. “This is a remarkable story of a quick-witted violin appraiser who recognized the long-lost Ames Stradivarius and immediately called law enforcement. Thanks to the violin appraiser’s good citizenship and law enforcement’s prompt response, today we celebrate the Totenberg family’s reunion with a priceless family heirloom, thought for decades to have been lost forever – a joyful ending to an amazing story.”
“Today’s ceremony is just one example of our commitment to restore significant arts and antiquities to their rightful owners,” said Assistant Director in Charge Diego Rodriguez. “We will continue to provide investigative support to address these criminal matters. Many thanks to our partners at the U.S. Attorney’s Office for the Southern District of New York and the New York City Police Department for their continued partnership in this and so many investigations. I’d like to remind the public that two antique bows were stolen along with the Ames Stradivarius. We ask anyone with information to please contact the FBI’s Art Crime Team in New York at (212) 384-2100 as we work to return this stolen property to the Totenberg family.”
According to court filings and other publically available information:
The violin, known as the Ames Stradivarius after violinist George Ames, the owner of the violin in the late 19th Century, was made in 1734 by Antonio Stradivari, a luthier based in Cremona, Italy. Between 1666 and 1737, Stradivari created over 1,000 instruments, including approximately 400 violins that are known to exist today. Stradivari’s violins are widely considered to be of the highest quality of craftsmanship.
In 1980, the Ames Stradivarius was owned by Totenberg, a Polish-born violinist who immigrated to the United States in 1938. Totenberg enjoyed a long and distinguished career as a performer and a teacher. He was chair of the strings department at Boston University from 1961 to 1978; the director of the Longy School of Music in Cambridge, Massachusetts, from 1978 to 1985; an instructor at various conservatories across the country; and co-chairman of the Boston University strings department for a second time beginning in 1994. Totenberg passed away in 2012.
In May 1980, following a concert at the Longy School, the Ames Stradivarius was stolen, along with two antique bows also belonging to Totenberg.
On June 26, 2015, after having been missing for over 35 years, the Ames Stradivarius surfaced at a hotel in Manhattan, where it was being presented for appraisal by an individual who had received the violin from a former spouse. After being contacted by the appraiser, the FBI approached the individual, who voluntarily relinquished the Ames Stradivarius to a special agent assigned to the FBI’s Art Crime Team. After contacting the heirs of Roman Totenberg, the U.S. Attorney’s Office of the Southern District of New York and the FBI have arranged for the return of the Ames Stradivarius to the Totenberg family.
The return today to Totenberg’s three daughters is being made pursuant to stipulated agreements that have been entered between the relevant parties and also so ordered by the Honorable Lorna G. Schofield, U.S. District Court Judge of the Southern District of New York.
U.S. Attorney Bharara thanked the FBI and the NYPD for their outstanding work on this matter.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the case.
Stradivarius Stipulation (US-Totenberg)
Stradivarius Stipulation (US-Tran)
Ames Stradivarius - Photos
U.S. Attorney’s Office Settles Americans with Disabilities Act Case with Linden, New Jersey-Based Electronics StoreRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office today reached an Americans with Disabilities Act (ADA) settlement with a Linden-based electronics store to ensure equal access for individuals with disabilities at its retail store, on the internet, and through telephone orders, U.S. Attorney Paul J. Fishman announced.
The announcement comes as the Department of Justice marks the 25th anniversary of the ADA. The Justice Department, including the nation’s U.S. Attorneys, plays a critical role in enforcing the ADA, ensuring equal opportunity and full participation for persons with disabilities.
The agreement resolves an ADA complaint filed by a deaf individual who alleged that Westpark Electronics LLC, d/b/a Abe’s of Maine, would not do business with her over the telephone using a telecommunications relay service. The U.S. Attorney’s Office determined that Abe’s of Maine refused to accept multiple relay calls from the complainant in violation of the ADA. Since the commencement of the investigation, Abe’s of Maine has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations.
Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. The ADA requires sales establishments, such as Abe’s of Maine, to take steps to communicate effectively with customers who are disabled. For individuals who are deaf or hard of hearing, the ADA requires business to provide auxiliary aids and services, such as the use of relay services, to ensure effective communication.
The agreement requires Abe’s of Maine to accept relay calls, amend its policies, and provide training to its staff to ensure that disabled individuals receive equal access to Abe’s of Maine’s goods and services. The agreement also requires Abe’s of Maine to post and distribute an announcement to its employees stating its willingness to accept relay calls. Abe’s of Maine has also paid a $1,000 civil penalty to the U.S. Treasury.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
This government is represented by Assistant U.S. Attorney Michael E. Campion of the U.S. Attorney’s Office Civil Division in Newark.
U.S. Attorney's Office Sponsors Events at Area Homeless Shelters on Dangers of Using Synthetic CannabinoidsRead the Press Release
WASHINGTON – Acting U.S. Attorney Vincent H. Cohen, Jr., the U.S. Attorney’s Office for the District of Columbia, and the District of Columbia Prevention Center for Wards 5 & 6 have scheduled a series of presentations at homeless shelters, starting tonight, that will be focused on the dangers of synthetic cannabinoids, such as K-2 and Spice.
These presentations are being given in response to a recent spike in overdoses related to the use of synthetic cannabinoids; many requiring hospital attention were staying at area shelters. The sessions are tailored to equip the homeless population with important information about the dangers of using substances such as K-2 and Spice, as well as the current state of the law enforcement efforts related to the use and sale of the substances. The D.C. Department of Behavioral Health will be at the events to assist those who are in present need of treatment.
“Despite innocent-sounding names like Spice and Scooby Snax, synthetic cannabinoids threaten public health and safety,” said Acting U.S. Attorney Cohen. “While we are committed to enforcing criminal laws, we also have a responsibility to educate the public. As evidenced by recent overdoses of homeless individuals, we need to reach out to all segments of our community to get the message out that synthetic cannabinoids are far from harmless.”
Three events are scheduled:
Thursday, Aug. 6, 6:30 p.m.: Shelter at the former D.C. General Hospital, 1900 Massachusetts Avenue SE.
Tuesday, Aug. 11, 6 p.m.: Men’s shelter at the Central Union Mission, 65 Massachusetts Avenue NW.
Wednesday, Aug. 19, 7 p.m.: Shelter at the Community for Creative Non-Violence (CCNV), 425 Mitch Snyder Place (Second and D Streets NW).
All presentations are free for residents and guests of the shelters.
People with questions about the presentations may contact Carolyn Crank at the U.S. Attorney’s Office at (202)-729-3718 or [email protected]. For media inquiries, please contact Bill Miller at the U.S. Attorney’s Office at (202)-252-6933 or [email protected].
U.S. Attorney recognizes Voting Rights Act 50th anniversaryRead the Press Release
SHREVEPORT/MONROE/ALEXANDRIA/LAKE CHARLES/LAFAYETTE, La.: Today marks the 50th Anniversary of the signing of the Voting Rights Act by President Lyndon Baines Johnson, the 36th President of the United States.
voting_rights_act.pdf (101.4 KB)The U.S. Attorney General, Loretta Lynch, held an open media call to mark the momentous occasion.
United States Attorney Stephanie Finley stated, “The Voting Rights Act along with the Civil Rights Act was pivotal legislation for all Americans. The goal - to ensure that every person, regardless of race, nationality or status in life, could exercise one of the most important rights of citizenship in this country, the right to vote. It is hard to believe, and we often forget, that just 50 years ago there were Americans who desired to exercise their voice through the ballot, but were denied, solely based on race. They were met with many restrictions, often intimidated and limited in other ways, sometimes by force. Voting is the bedrock of our democracy. It ensures that this great nation continues to be a government ‘of the people, by the people and for the people.’ This office is committed to enforcing the provisions of the act to the fullest extent of the law in order to protect that precious right.”
Following the Civil War to the 1960s, the freedoms provided in the 15th Amendment of 1870, guaranteeing the freedom of former slaves and people of color were muted. Some states, including Louisiana, enacted laws to bar these groups from voting and participating in other forms of civic involvement. In addition to laws, poll taxes, education tests, threats, intimidation and violence were used to further push minority groups farther from the ballot box. Change came slowly and real legislation was seen in 1964 with the enactment of the Civil Rights Act in 1964. The Voting Rights Act was passed in 1965 to further expand upon the rights of the disenfranchised and specifically to bring fairness to the voting and the redistricting process. For more history of the Voting Rights Act visit www.justice.gov/crt/about/vot/intro/intro_b.php. See President Johnson’s March 15, 1965 speech to Congress concerning the voting rights online at https://www.youtube.com/watch?v=VNjlwwf2K9g.
If members of the public have any information on potential violations, contact the Justice Department or the U.S. Attorney’s Office. The public may contact the Voting Section of the Civil Rights Division at 1-800-253-3931 or [email protected] for general information concerning the Section’s activities or to make a complaint concerning a voting matter. The U.S. Attorney’s offices are in frequent contact with the Justice Department’s Civil Rights Division and Criminal Division, and can direct calls to the appropriate office.
Two Twin Cities' Restauranteurs Sentenced for Hiring Undocumented WorkersRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MING GUO, 46, owner of two Twin Cities restaurants, both named Hibachi Grill and Supreme Buffet, and BIJIAN WENG, a/k/a “Wilson,” 28, manager of the restaurants, to federal prison sentences for employing unlawful aliens. GUO and WENG were charged on January 26, 2015, with one count each of Knowingly Hiring Ten or More Unlawful Aliens. GUO and WENG pleaded guilty on March 20, 2015, and were sentenced yesterday by U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
“Hiring illegal aliens is not a victimless crime. It gives an unfair advantage to a business, forces competitors out of business, and results in lost tax revenue for the community,” said Acting Special Agent in Charge, William Lowder of HSI St. Paul. “Harboring illegal aliens is a very real crime with very real victims. HSI will remain vigilant in protecting American businesses and keeping the playing field level. ”
“These defendants created a successful restaurant business on the backs of undocumented workers,” said Assistant U.S. Attorney Julie E. Allyn. “They forced the victims to work 12-hour shifts, six days per week, by housing them and isolating them without the means and access to build a life. Guo and Weng did not simply hire illegal aliens – they took sustained steps to harbor and transport these workers in violation of U.S. law.”
According to the defendants’ guilty pleas and documents filed in court, from September 30, 2013 through September 30, 2014, GUO and WENG knowingly hired and employed at least 17 individuals who were not authorized to be employed or lawfully admitted for permanent residence in the United States. On September 30, 2014, HSI agents executed search warrants at the restaurants in Spring Lake Park and West St. Paul, Minnesota. They identified 17 undocumented workers working in the restaurants.
According to the defendants’ guilty pleas and documents filed in court, GUO and WENG were aware that the employees were not authorized to work in the United States. Moreover, the defendants did not ask the employees to fill out paperwork, including I-9 Employment Eligibility Verification forms. GUO and WENG also failed to report the unauthorized workers to the Minnesota Department of Economic Development. The employees were paid in cash “off the books.”
According to the defendants’ guilty pleas and documents filed in court, in addition to hiring illegal aliens, GUO and WENG took additional sustained steps to harbor and transport the victims. The defendants housed the victims and transported them to and from work each day. With no cars and limited family (if any) nearby, these employees were left with no choice but working at the restaurants. This allowed the defendants to profit by exploiting and using the employees to work endless hours six days each week.
This case is the result of an investigation conducted by Homeland Security Investigations.
Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino are prosecuting this case.
Defendant Information:
BIJIAN WENG, a/k/a “Wilson,” 28
Spring Lake Park, Minn.
Convicted:
- Knowingly Hiring Ten or More Unlawful Aliens, 1 count
Sentenced:
- Six months in prison
- Six months location monitoring
- Two years supervised release
- 100 hours of community service
- $304,827.75 money judgment and criminal fine
MING GUO, 46
North Miami Beach, Fla.
Convicted:
- Knowingly Hiring Ten or More Unlawful Aliens, 1 count
Sentenced:
- Five months in prison
- Seven months location monitoring
- Two years supervised release
- 50 hours of community service
- $304,827.75 money judgment and criminal fine
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Men Indicted for Growing Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Macedonio Madrigal-Herrera (Madrigal), 44, and Ezequiel Armas-Ortiz (Armas), 49, both of Mexico, charging them with conspiring to cultivate, distribute and possess with intent to distribute marijuana; cultivating and possessing with intent to distribute marijuana; and damaging public land and natural resources as a result of the large-scale marijuana cultivation operation, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 30, 2015, Madrigal and Armas were found at the cultivation site in the Brush Creek drainage in the Sequoia National Forest in Tulare County during the execution of a federal search warrant. Agents removed 2,719 marijuana plants from the site and found toxic chemicals, fertilizer, and trash strewn throughout. The cultivation activities caused extensive damage to the land and natural resources. Trees and plants, newly generated following the 2002 McNally Fire, were cut down to make room for the marijuana. Water was diverted from a nearby stream that supports trout.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California National Guard, California Department of Fish and Wildlife, and Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Armas and Madrigal were previously ordered detained as a flight risk and danger to the community and are scheduled for arraignment on the indictment on August 12, 2015, in federal court in Fresno. If convicted of the drug offenses, they face a maximum statutory penalty of 20 years in prison and a $1 million fine as to each count. If convicted of the environmental crime, the defendants face a maximum statutory penalty of 10 years in prison, a $250,000 fine, and restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tree Thieves and Mill Owner Indicted for Theft of Big Leaf Maples from National ForestRead the Press Release
Three southwest Washington timber cutters and a Winlock, Washington wood buyer and his lumber mill have been indicted on theft and environmental crimes for cutting Big Leaf Maple trees on national forest land, announced U.S. Attorney Annette L. Hayes. Wood buyer HAROLD CLAUSE KUPERS, 48, and his company J & L TONEWOODS are charged with receipt of stolen property and seven violations of the Lacey Act, which prohibits trafficking in “illegal” wildlife, fish, and plants. The three tree cutters are charged with theft of government property and damaging government property for illegally harvesting the maple trees in the Gifford Pinchot National Forest in November and December 2011 and May 2012. RYAN JUSTICE, 28, of Randle, Washington, JAMES MILLER, 36, of Morton, Washington are in custody pending detention hearings. KEVIN MULLINS, 56, of Packwood, Washington has not yet made his initial appearance on the indictment.
“The trees in our national forests belong to all Americans and should not be chopped up to enrich a few,” said U.S. Attorney Annette L. Hayes. “In this case a beautiful and valued resource that is home to endangered species, was felled with some parts just discarded on the forest floor. We are prosecuting not only the tree cutters, but also the mill owner who created a market for the sale of this stolen property.”
According to the indictment, in November and December 2011, the three tree cutters received training and assistance from KUPERS in illegal harvesting of Big Leaf Maples from various sites in the Gifford Pinchot National Forest. The men would seek out “figured maple” which is particularly valuable for musical instruments. Between October 2011 and March of 2012 the tree cutters made approximately fifty sales of illegally-harvested maple wood to KUPERS and J & L TONEWOODS. The wood cutters would bring pieces of the trees to J & L TONEWOODS, where it was cut into salable blocks called “billets.” The indictment alleges KUPERS and J & L TONEWOODS purchased the maple knowing it was stolen and then sold it to out of state companies for more than $800,000.
Violations of the Lacey Act are punishable by up to five years in prison and a $250,000 fine. The other charges in the indictment are punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Forest Service. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Three Swiss Banks Reach Resolutions under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Privatbank Reichmuth & Co., Banque Cantonale du Jura SA and Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA have reached resolutions under the department’s Swiss Bank Program.
“The department is acquiring detailed information regarding the many ways in which U.S. taxpayers attempt to hide foreign assets, including through the use of sham trusts and insurance policies wrapped around foreign bank accounts to shroud the identity of U.S. beneficial owners,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “The department is dismantling these structures, unwrapping these policies, and pursuing and prosecuting those involved in this fraudulent conduct.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Privatbank Reichmuth & Co. was founded in 1996 as an external asset management firm. It is now a private bank headquartered in Lucerne, Switzerland. Reichmuth knew that it was likely that certain U.S. customers who maintained accounts there were not complying with their U.S. income tax and reporting obligations.
Reichmuth opened and maintained undeclared numbered or code name accounts for individual U.S. customers and held statements and other mail at its offices in Switzerland. In the period since Aug. 1, 2008, Reichmuth opened at least 14 undeclared U.S.-related accounts that came from UBS or another bank under investigation by the department.
In 2001, Reichmuth entered into a Qualified Intermediary (QI) Agreement with the Internal Revenue Service (IRS). The QI Agreement took account of the fact that Reichmuth, like other Swiss banks, was prohibited by Swiss law from disclosing the identity of an accountholder. In general, if an accountholder wanted to trade in U.S. securities and avoid mandatory U.S. tax withholding, the QI Agreement required Reichmuth to obtain the consent of the accountholder to disclose the client’s identity to the IRS.
Reichmuth’s position was that it could assist U.S. accountholders that it knew or had reason to believe were engaged in tax evasion so long as its accountholders were prohibited from trading in U.S.-based securities or the account was nominally structured in the name of a non-U.S. based entity. In the latter circumstance, U.S. accountholders, with the assistance of their advisors, would create an entity, such as a Liechtenstein or Panama foundation, and pay a fee to third parties to act as directors. Those third parties, at the direction of the U.S. accountholder, would then open a bank account at Reichmuth in the name of the entity or transfer a pre-existing Swiss bank account from another Swiss bank. Reichmuth made no effort to determine whether such an entity was valid for U.S. tax purposes.
Since Aug. 1, 2008, Reichmuth permitted U.S. customers to open and maintain at least 18 undeclared accounts held in the name of non-U.S. corporations, foundations, trusts or other legal entities. Of these structures, seven were domiciled in Liechtenstein, five in Panama, five in St. Vincent and the Grenadines and one in the British Virgin Islands. Even though Reichmuth was aware that U.S. persons were the beneficial owners of those accounts, Reichmuth obtained documents from the nominal accountholders that falsely declared they were not U.S. taxpayers.
In connection with one structured account, Reichmuth agreed to open an “insurance wrapped” account for the U.S. beneficial owner, whereby the beneficial owner funded an insurance policy with assets held in an undeclared account at Reichmuth. While the insurance-wrapped account was held in the name of a Panamanian structure and Reichmuth was not named as a party to the insurance contract, the assets held in the account were provided by the beneficial owner, held for his benefit and controlled by him. Reichmuth was aware that the account consisted of assets supplied by the beneficial owner and retained for his benefit. By accepting this account, Reichmuth knowingly enabled the beneficial owner in the evasion of his U.S. tax liabilities and concealment of his assets.
Since Aug. 1, 2008, Reichmuth maintained and serviced 103 U.S.-related accounts with an aggregate value of approximately $281 million, including both declared and undeclared accounts. Reichmuth will pay a penalty of $2.592 million.
Banque Cantonale du Jura SA (BCJ) was formed in 1979 and is headquartered in Porrentruy, Switzerland. BCJ opened and maintained undeclared accounts for certain U.S. client taxpayers knowing or having reason to know that by doing so, BCJ likely helped these U.S. taxpayers evade their U.S. tax obligations. BCJ was aware, or should have been aware, that this conduct violated U.S. law.
BCJ provided traditional Swiss banking services that it knew could assist, and that did in fact assist, certain U.S. taxpayers to evade their U.S. tax obligations, file false federal tax returns with the IRS and otherwise hide accounts held at BCJ from the IRS. Those services included opening accounts identified solely by pseudonyms, rather than by the names of the accountholders, and hold mail service. In at least two instances, BCJ permitted U.S. persons to transfer funds from accounts held at banks under investigation by the department into pre-existing accounts at BCJ. It also processed cash withdrawals for U.S. accountholders in sums below $10,000 on numerous occasions and, in at least two cases, withdrawing larger sums of cash when closing their accounts.
Due in part to the assistance of BCJ and its personnel, and with the knowledge that Swiss banking secrecy laws would prevent BCJ from disclosing their identities to the IRS, some of BCJ’s U.S. clients filed false and fraudulent U.S. Individual Income Tax Returns (IRS Forms 1040) which failed to report their respective interests in their undeclared accounts and the related income. Some of BCJ’s U.S. clients also failed to file and otherwise report their undeclared accounts on Reports of Foreign Bank and Financial Accounts (FBARs).
As part of its cooperation throughout the Swiss Bank Program, BCJ has provided certain account information related to U.S. taxpayers that may assist the government in making requests under the 1996 Convention between the United States and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income for, among other things, the identities of U.S. accountholders.
Since Aug. 1, 2008, BCJ had 18 U.S. clients with a total of 118 U.S.-related accounts. The aggregate amount of assets under management of all accounts associated with U.S. taxpayers at BCJ was approximately $10 million. BCJ will pay a penalty of $970,000.
Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA (BIM Suisse) was established in 2001 and is located in Lugano, Switzerland. BIM Suisse opened and maintained undeclared accounts for some U.S. taxpayers with the knowledge that by doing so, BIM Suisse was helping these U.S. taxpayers violate their legal duties. BIM Suisse agreed to hold bank statements and other mail relating to the accounts at BIM Suisse, rather than send them to U.S. taxpayers located in the United States, to ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
In January 2002, BIM Suisse entered into a QI Agreement with the IRS. BIM Suisse subverted the terms of that agreement by failing to fully comply with both its withholding and reporting obligations to the IRS, thus enabling U.S. accountholders to avoid reporting their accounts to the U.S. authorities.
Between Aug. 1, 2008, and May 2015, BIM Suisse closed 13 of its 16 U.S.-related accounts. As of July 2015, BIM Suisse maintains only three U.S.-related accounts, and none of those accounts remain undisclosed to the U.S. tax authorities. Under the terms of the agreement signed today, BIM Suisse will not pay a penalty.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s announcement emphasizes the strength and stamina of the Swiss Bank Program,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “Taxpayers with offshore accounts continue to come forth voluntarily to make things right with the IRS. Time is running out for those offshore accountholders who have not yet have taken that step. Through the Swiss Bank Program and the tremendous volume of information these banks are providing, the IRS will continue to identify and bring to justice those who would evade U.S. tax laws.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business and International Division for their substantial assistance. Ciraolo also thanked Michael N. Wilcove, Gregory S. Seador, Sean P. Beaty and Kimberle E. Dodd, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Three Individuals Charged in Manhattan Federal Court with Participating in Student Financial Aid Fraud Scheme to Lower Student Loan Default Rate of For-Profit SchoolRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian M. Hickey, the Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Northeastern Regional Office (“ED-OIG”), announced charges today against three individuals for their participation in a scheme to fraudulently lower the student loan default rate of the for-profit school in whose Loan Management Department they were employed during the scheme. Defendants DIANNA SALAZAR, ALEKSANDRA CHOLEWICKA, and SHAYNA POLITE are charged with conspiracy to commit federal student financial aid fraud and make false statements, attempted federal student financial aid fraud, making false statements, and wire fraud. All of the defendants surrendered to law enforcement today and were presented before U.S. Magistrate Judge Andrew J. Peck in Manhattan federal court this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Student financial aid fraud depletes federal funds meant to fuel the dreams of an affordable higher education for countless Americans. The defendants charged today are alleged to have lied to lower their for-profit school’s student loan default rate in order to receive more such financial aid.”
ED-OIG Special Agent-in-Charge Brian Hickey said: “Federal student aid exists so that individuals can make their dream of a higher education a reality, it’s not a slush fund for unscrupulous school officials. As the law enforcement arm of the U.S. Department of Education, we are committed to fighting student aid fraud and ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions.”
According to the Complaint unsealed today in Manhattan federal court[1]:
Each of the defendants was associated with a for-profit educational institution (the “For-Profit School”) that was located in New York, New York during the scheme and specializes in preparing students for employment in a technical career after graduation. DIANNA SALAZAR was the manager of the School’s Loan Management Department. ALEKSANDRA CHOLEWICKA and SHAYNA POLITE worked as loan advisors in the Loan Management Department.
The named defendants are charged with preparing and submitting fraudulent applications for deferment or forbearance of student loans administered by the United States Department of Education (“ED”) in order to fraudulently lower the student loan default rate of the For-Profit School so that it would continue to be eligible to receive federal student aid.
The ED administers and provides loans to eligible students and families to help cover the cost of higher education through Title IV Federal Student Assistance Programs authorized by the Higher Education Act of 1965, as amended. If a school’s student loan default rate, which is a measurement of the percentage of students who entered repayment on their loans and defaulted within a specific period, is 30 percent or higher in three consecutive years, the school loses its eligibility to receive certain federal student aid for its students. A student that has entered repayment on his or her loan and has been granted a deferment or forbearance is relieved of making loan payments for a specified time period and is not considered in default.
The defendants submitted fraudulent deferment and forbearance applications to the ED and other loan holders in two ways. First, the defendants manually altered dates on previously submitted deferment and forbearance applications using liquid paper and resubmitted the applications in order to extend the deferment or forbearance period. Second, the defendants copied authentic student signatures from old deferment and forbearance documents and manually cut and pasted those signatures on new deferment and forbearance applications that were submitted with current dates. By falsifying dates and forging student signatures, the defendants misrepresented to the ED and other loan holders that the For-Profit School’s students were eligible for a deferment or forbearance and that the student had certified that the information provided in the forms was true and correct.
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Attached are charts containing the charges against the defendants and the maximum penalties they face, as well as the defendants’ ages and residences. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of ED-OIG.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sagar K. Ravi is 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 herein, constitute only allegations, and every fact described should be treated as an allegation.
Taos Pueblo Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE—Julian Concha, 26, a member and resident of Taos Pueblo, N.M., pleaded guilty this morning in Albuquerque, N.M., to federal assault charges. Under the terms of his plea agreement, he will be sentenced to 37 months in prison followed by a term of supervised release to be determined by the court.
Concha was arrested on Feb. 13, 2015, on an indictment charging him assault resulting in serious bodily injury and two counts of assault with a dangerous weapon. The indictment alleged that the crimes were committed on Jan 15, 2013, in Taos Pueblo in Taos County, N.M.
During today’s proceedings, Concha pled guilty to a felony information charging him with assault resulting in serious bodily injury and assault by striking, beating or wounding. Concha admitted that on Jan. 15, 2013, he assaulted a woman by striking her on the face and head resulting in permanent damage to her left eye, and he assaulted a man by striking, beating and wounding the man’s face and head.
A sentencing hearing has yet to be scheduled.
This case was investigated by Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Police Department. Assistant U.S. Attorneys Kristopher N. Houghton and Niki Tapia-Brito are prosecuting the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Tahlequah Man Sentenced to 37 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DARRELL DEWAYNE PERRY, age 55, of Tahlequah, Oklahoma, was sentenced to 37 months imprisonment, followed by 5 years of supervised release for FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge is a result of an investigation by the United States Marshal Service. The defendant was indicted in December, 2014.
The Indictment alleged that from in or about October 2014 until on or about November 20th, 2014, in the Eastern District of Oklahoma, and elsewhere, DARRELL DEWAYNE PERRY, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received felony convictions from the State of Oklahoma, Muskogee County, on or about September 14, 1998, for the offenses of Rape First Degree, Rape by Instrumentation and Sodomy, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility in which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
St. Petersburg Real Estate Agent Indicted on Conspiracy and Bank Fraud ChargesRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Gary Blankenship (44, St. Petersburg, Florida) with conspiracy, wire fraud, and bank fraud. He faces a maximum penalty of 30 years’ imprisonment for each charge. The indictment also notifies him that the United States is seeking a money judgment for the proceeds of the charged criminal conduct.
According to the indictment and court proceedings, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners then engaged in a plan to convert the complex from rental apartment units to condominium units.
Blankenship’s co-conspirator, Brenden Bolger, aided the developers in the sale of numerous condominium units through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase The Arbors units, Bolger created an addendum to the purchase contract offering buyers various incentives such as rental supplements, money to defray maintenance costs, and a design credit to upgrade the units’ amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid them a kickback from his company’s bank account for the amount of the design credit. Blankenship’s role in the conspiracy as a realtor consisted of marketing The Arbors units by promising buyers that they would not be required to provide any money at closing, actually providing cash for borrowers to close on the units, facilitating the payment of kickbacks to his clients via Capital Management Guarantee, and facilitating the submission of false loan applications to FDIC-insured financial institutions, or their subsidiaries. In this manner, Bolger, Blankenship, and other co-conspirators failed to disclose material facts to the buyers’ mortgage lenders about the financing of the condominium sales.
Bolger previously pleaded guilty his role in the conspiracy. His sentencing is scheduled for September 18, 2015.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency - Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
Sorrento Councilman and Wife Indicted for Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has indicted RANDY ANNY (ANNY), age 51, and BARBARA FALGOUST ANNY (FALGOUST), age 51, both of Sorrento, Louisiana, with conspiracy and wire fraud in connection with a claim made to the Gulf Coast Claims Facility in the aftermath of the Deepwater Horizon Oil Spill. If convicted, each defendant faces incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from in or about November 2010 through in or about June 2011, ANNY and FALGOUST engaged in a scheme to profit from a fraudulent claim submitted to the Gulf Coast Claims Facility or “GCCF,” an administrative entity that BP Exploration and Production, Inc. established to process damage claims resulting from the Deepwater Horizon Oil Spill in the Gulf of Mexico.
According to the allegations contained in the Indictment, between November and December 2010, ANNY and FALGOUST submitted a fraudulent claim to the GCCF which represented that ANNY’s 26 foot boat had been damaged by the Oil Spill while located in Grand Isle, Louisiana. In support of the claim, ANNY and FALGOUST submitted a repair invoice which fraudulently reflected that ANNY had paid a company $7,800 in cash to repair specific items on his boat and boat trailer. As a result of the fraudulent claim, the GCCF wired $7,800 to a bank account controlled by ANNY and FALGOUST in June 2011.
This ongoing investigation and prosecution is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, and the Ascension Parish Sherriff’s Office. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Alan Stevens, who serve as Deputy Chiefs of the Criminal Division.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes, and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected].
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Shreveport resident sentenced to 33 months in prison for failing to update his sex offender registrationRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport resident was sentenced to 33 months in prison for failing to register his correct address for his sex offender identification.
Joseph Kelly Parson, 31, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of failure to update his sex offender registration. He was also sentenced to five years of supervised release. According to evidence presented at the April 6, 2015 guilty plea, Parson did not update his sex offender registration when living at a Shreveport address from October 8, 2013 until November 12, 2014. Parson originally pleaded guilty to two counts of statutory rape in Liberty County, Ga., in 2004. Upon release from prison, he was informed that he was required to register as a sex offender. He was later found living in Texas in 2010 and served a term of imprisonment for failure to register as a sex offender in Texas. After his release, Parson later moved to Shreveport but did not register in Louisiana as a sex offender.
The U.S. Marshals Service and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Seventeen Arrested in Connection with Lengthy Drug Trafficking InvestigationRead the Press Release
A lengthy drug trafficking investigation of a criminal group with ties to California and Mexico has resulted in seventeen arrests and the seizure of pound quantities of methamphetamine and heroin, announced U.S. Attorney Annette L. Hayes. Over the last 36 hours, teams of local, state and federal law enforcement agents searched twenty locations across the Puget Sound region in the culmination of an 18 month investigation involving court authorized wire-taps and extensive surveillance of members of the criminal group. Some of those arrested made their initial appearances on the indictments yesterday in U.S. District Court in Seattle. One additional defendant is appearing at 2:00 today.
“Heroin, and methamphetamine continue to wreak havoc in our communities,” said U.S. Attorney Annette L. Hayes. “I commend the law enforcement professionals who investigated this drug trafficking organization, taking large loads of drugs off the street, while also gathering key evidence to make these arrests and prosecutions possible.”
Beginning early yesterday morning, federal state and local law enforcement officers served search warrants on seventeen residences, three storage facilities and more than a dozen vehicles tied to the criminal group. Search warrants were executed in: Auburn, Bellevue, SeaTac, Seattle, Tukwila, Renton, Kent, Port Orchard, and Everett, Washington. An indictment and criminal complaints have been filed charging 22 defendants with conspiracy to distribute controlled substances including methamphetamine and heroin. Some of the defendants are charged with conspiracy to commit money laundering. During the course of the investigation law enforcement seized more than 29 pounds of meth, more than 18 pounds of heroin, 6 pounds of cocaine, approximately $178,000 in cash and sixteen firearms, including five assault rifles.
Those arrested include:
VERONICA ACEVES SANTILLANO, 28, of Renton, Washington
EDIBERTO ASEVEZ SANTILLANO, 36, of Renton, Washington
BRIAN CHRISTENSEN, 39, of Port Orchard, Washington
WILL EDWARD BRAMBILA, 26, of Kent, Washington
SANDRO CRIOLLO, 22, of Seattle
SENDHY AMAIRANY FELIX ACEVEZ, 21, of SeaTac, Washington
FRANCISCO FLORES PENUELAS, 43, of Kent, Washington
JOSE GONZALEZ MEDINA, 35, of Everett, Washington
EDUARDO GUZMAN VALENZUELA, 23, of Kent, Washington
MARICARMEN HERNANDEZ, 34, of Renton, Washington
HANZEL KNIGHT, 42, of Auburn, Washington
HERIBERTO PACHECO JUAREZ, 22, of Kent, Washington
RUBEN RODRIGUEZ RODRIGUEZ, 23, of Renton, Washington
RICARDO TOPETE, 24, of Seattle
RAMON ZAVALA ZAZUETA, 44, of Kent, Washington
JESUS GASTELUM-PAYAN, 20, of Kent, Washington
ALFONSO LEOS VILLASENOR, 20, of Kent, Washington
“This investigation is a great example of law enforcement collaboration,” said Seattle Police Chief Kathleen O’Toole. “The Seattle Police Department will continue to work closely with our federal, state and local partners to eliminate the flow of deadly drugs, such as heroin and methamphetamine to our region.”
Due to the drug quantities involved, some of the defendants face mandatory minimum sentences of ten years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. All of the defendants appearing on indictments yesterday entered pleas of “not guilty.” Trial was set for September 28, 2015 in front of Chief U.S. District Judge Marsha J. Pechman.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration, the FBI and the Seattle Police Department. The searches and arrests involved agents and officers from: Homeland Security Investigations – Seattle, Port of Seattle Police Department, Washington State Patrol, Snohomish County Sheriff’s Office, Snohomish Regional Drug And Gang Task Force, King County Sheriff’s Office, Kitsap County Sheriff’s Office, Lynnwood Police Department, Kent Police Department, Renton Police Department, Auburn Police Department, Tukwila Police Department, Federal Way Police Department, and the Pierce County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Thomas Woods.
Settlement Agent Sentenced to Six Years in Prison in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
WASHINGTON – Edward Dacy, 77, most recently of West Melbourne, Fla., was sentenced today to six years in prison on charges stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
Dacy was found guilty on March 25, 2015, following a trial in the U.S. District Court for the District of Columbia, of 10 counts of conspiracy, bank fraud, and mail fraud. He was sentenced by the Honorable Reggie B. Walton. His conviction completes a three-year investigation relating to this mortgage fraud scheme. A total of nine individuals have admitted their guilt through guilty pleas or were found guilty after trial. Upon completion of his prison term, Dacy will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $2,730,345 in restitution and an identical amount as a forfeiture money judgment.
The government’s evidence at trial included testimony from conspirators who were involved in the scheme to defraud banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, and ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.
The trial evidence included information about conspirators who purchased properties in the names of general partnerships. They then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, according to the evidence, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns and letters from a Certified Public Accountant, and fraudulent deeds conveying title to the nominee buyers.
According to the trial evidence, Dacy handled the settlements of the real estate transactions. The settlement company received the funding from the mortgage lenders and should have collected the buyers’ cash contributions; it was under the obligation to disburse the money only if all of the mortgage lenders’ conditions were met and the buyers’ financial contributions collected. Only then would the settlement company be authorized to release the lenders’ money, and pay the costs of the closing, the debts of the property or seller, and any other authorized expenses as set forth on the Settlement Statement. According to the evidence, Dacy joined the multi-million dollar fraud conspiracy by managing and overseeing the straw buyers’ settlements of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
In announcing the sentence, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Special Agent in Charge Rubenstein, and Assistant Director in Charge McCabe commended the work of the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales and Assistant U.S. Attorneys Anthony Saler, Thomas Swanton, and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys David A. Last and Virginia Cheatham, who prosecuted the case.
Second of Three Co-Defendants Pleads Guilty to Wire Fraud and Possession of Counterfeit Credit CardsRead the Press Release
BOISE – Irving Gonzalez-Bocanegra, 25, of Hermosillo, Mexico, pleaded guilty today in federal court to one count of wire fraud and one count of possession of fifteen or more counterfeit credit cards, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Gonzalez-Bocanegra and his co-defendants, Javier Miranda-Molina and Rafael Perez, were present and traveling together in Boise on March 31, 2015, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. The defendants engaged in a number of transactions, at a variety of stores, using credit cards the defendants knew to be counterfeit. The defendants fraudulently obtained merchandise valued at approximately $5,117.63.
Prior to arriving in Boise, on March 29 and 30, 2015, the defendants engaged in similar fraudulent transactions in Montana and obtained merchandise valued at approximately $8,184.01.
When arrested in Boise, the defendants were working together to package and ship a variety of merchandise purchased with counterfeit credit cards, such as GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems. They had in their joint possession a number of counterfeit credit cards. These included: approximately eighty-four counterfeit credit cards taped into the pages of a magazine; three counterfeit credit cards recovered from the trash, and three counterfeit credit cards found in the driver’s side door pocket of their rental car. Each of these counterfeit cards contained one of the defendant’s names embossed on the front of the card and a real but unauthorized account number encoded to the magnetic strip on the back of the card. Gonzalez-Bocanegra agreed to the forfeiture of, and to abandon any interest in, all credit cards, gift cards, merchandise, and other items seized at his arrest.
The defendants were charged with wire fraud because all of the described transactions resulted in wire communications that were foreseeable to the defendants, in particular, interstate transmissions by wire of information from the point of sale terminals in the stores to the credit card payment processers and to the account-issuing banks located in different states.
“This case demonstrates how federal and local law enforcement cooperate with Idaho businesses to protect business integrity and consumer confidence from the costs and victimization imposed by fraud,” said Olson.
Wire fraud is punishable by a term of imprisonment of up to twenty years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100. Possession of 15 or more counterfeit and unauthorized access devices is punishable by a term of imprisonment of up to ten years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100.
Gonzalez-Bocanegra’s sentencing is set before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise on October 27, 2015.
Co-defendant Rafael Perez, 31, of Guaymas, Mexico, is set for a plea hearing on August 11, 2015. Co-defendant Javier Miranda-Molina, 22 of Sonora, Mexico, pleaded guilty on August 4, 2015 and is set for a sentencing hearing on October 14, 2015.
The case was investigated by the United States Secret Service and the Boise Police Department.
Rwandan Native Indicted on Charges of Making False Statements and Lying to Government AgentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a two-count indictment charging Peter Kalimu, 48, of Buffalo, NY, with making false statements both in his application for naturalization as a United States Citizen and to Special Agents of the Department of Homeland Security. The charges carry a maximum penalty of 15 years in prison, a fine of $250,000 or both. Kalimu also faces automatic revocation of his U.S. citizenship if convicted of making a false statement on his application for naturalization.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that according to the indictment, the defendant, a native of Rwanda, concealed the fact that he previously used the name “Fidele Twizere.” An individual named “Fidele Twizere” has been identified as an alleged member of the majority Hutu tribe who participated in the genocidal atrocities perpetrated against the minority Tutsis. This followed the April 6, 1994 assassination of Juvenal Habyarimana, the president of Rwanda at the time.
The indictment states that Kalimu answered “none” to the question on his naturalization petition that asked “If you have even been known by any other names, provide them below.” In November 2014, the defendant provided a letter to Homeland Security agents claiming that he had never used another name (other than Peter Kalimu) and that he did not use any other name (other than Peter Kalimu) in Rwanda. These statements prevented the Department of Homeland Security, which is responsible for determining if foreign nationals are qualified to become U.S. citizens, from fully investigating the defendant’s background to determine if he was the “Fidele Twizere” that was allegedly involved in the 1994 Rwandan genocide.
The defendant will be arraigned on August 12, 2015 at 10:30 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The Indictment is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.