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Wednesday 5 August 2015
Jefferson County Man Guilty of Sexual Exploitation of a ChildRead the Press Release
BEAUMONT, Texas – A 28-year-old Guatemalan man living in Beaumont, Texas has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cesar Estuardo Hernandez-Cruz pleaded guilty to production of child pornography on Aug. 4, 2015 before U.S. District Judge Marcia Crone.
According to information presented in court, on Dec. 4, 2014, law enforcement officers were notified by a parent that they had discovered sexually explicit photographs of their child. The photographs had been taken by the child on a cellular phone and had been sent by text message to Hernandez-Cruz at his request. Hernandez-Cruz admitted to knowing the child was only 12-years-old. Hernandez-Cruz was indicted by a federal grand jury on June 3, 2015.
Hernandez-Cruz faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jefferson City Attorney Pleads Guilty to Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., attorney has pleaded guilty in federal court to enlisting a U.S. citizen to marry a Ukrainian national (with whom he was having an affair) so that she could remain in the United States and seek citizenship.
James Douglas Barding, 62, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, Aug. 4, 2015, to participating in the marriage fraud conspiracy.
Barding, an attorney and a married U.S. citizen, had a long-running affair with a Ukrainian national who entered the United States on a student visa. She formerly lived a couple of blocks from the Jefferson City residence where Barding and his wife resided but has since moved out of the state; their two children live with Barding.
Barding admitted that he met with the Ukrainian national and another co-conspirator (who had agreed to marry her before her visa expired) on April 20, 2010, the day before they were scheduled to be questioned by representatives of the U.S. Citizenship and Immigration Service. The purpose of the meeting was to go over their testimony and Barding advised them to stick to their false stories regarding their fraudulent marriage. On April 21, 2010, Barding gave them a ride to the interview in St. Louis, Mo., where the Ukrainian national made false statements with Barding’s knowledge.
Soon afterward, Barding assured co-conspirator that, if they stayed together and stuck to their stories, they would not get caught with their plan to deceive the government, and she could remain in the United States.
Barding also admitted that he told his co-conspirator in late 2004 that, if he agreed to marry the Ukrainian national, he would not have to live with her and could get divorced after she gained sufficient status to remain in the United States. They were married on March 13, 2005, in Cape Girardeau, Mo., so that persons they knew in Cole County, Mo., would not be likely to find out about the marriage. Barding flew to Cape Girardeau and acted as a witness to their wedding.
Although they never lived together, according to the plea agreement, they each filled out forms falsely claiming they shared a Jefferson City apartment. She also submitted documents that purported to show they shared accounts and bills when, in truth, the majority of the submissions were in name only and no accounts or bills were actually shared. The only purpose for their marriage was so that she could evade immigration laws and remain in the United States with Barding. At various times she made material false statements regarding her address and the true purpose of her marriage, which resulted in her being granted conditional permanent resident status on Nov. 27, 2008.
Approximately nine months and 16 days after the fraudulent marriage, a child was born to Barding and the Ukrainian national. A second child was born to them the following year, which she falsely claimed on immigration forms and on the birth certificate was the biological child of her husband in the fraudulent marriage, to prevent federal officials from suspecting the marriage was fraudulent.
Under federal statutes, Barding is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), U.S. Citizenship and Immigration Services (USCIS) and the Jefferson City, Mo., Police Department.
Jackson County Man Pleads Guilty to Illegally Purchasing Native American Human RemainsRead the Press Release
COLUMBUS, Ohio – Mark M. Beatty, 56, of Wellston, Ohio, pleaded guilty in U.S. District Court to violating the Native American Graves Protection and Repatriation Act by purchasing human remains of Native Americans. The case is the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Jackson County Sheriff Tedd Frazier and Rick Perkins, Chief Ranger, National Park Service at Hopewell Culture National Historical Park, announced the plea entered into today before U.S. Magistrate Judge Elizabeth Preston Deavers.
According to court documents, individuals were observed digging in a rock shelter in Salt Creek Valley in Jackson County, Ohio. When they were approached, they ran off into the woods and left behind shovels, dirt sifters, buckets and trash. Investigators confirmed that at least two individuals were digging on the property and had unburied human remains. Beatty admitted to purchasing those remains.
An anthropologist confirmed that the human remains were consistent with Native Americans, specifically identifiable by cradle boarding, a cultural activity used only by Native American Indians in North America. The identity of the remains was also confirmed by an archeologist, who verified that rockshelters were used extensively for burials in Southern Ohio and specifically in Jackson County.
DNA testing concluded a direct connection to present day Native American Indians living in the United States today.
“We are going to continue to investigate crimes against the Native American Graves Protection and Repatriation Act,” Jackson County Sheriff Tedd Frazier said.
The parties involved in the case have agreed to a proposed sentence of three years of probation including three months home confinement, a $3,500 fine and restitution in the amount of $1,000 to the Miami Tribe of Oklahoma, to be used for re-burial of the Native American remains. The remains will be transferred to the federally recognized tribes who have assisted with this case, and re-buried in Ohio at an undisclosed location and in private once all the court proceedings are completed.
Beatty has also agreed to publish an advertisement in a circulation warning others not to engage in illegal excavation of Native American bones and artifacts. As part of his plea, he has agreed to perform 100 hours of community service for a program that protects or promotes the interests of Native Americans.
U.S. Attorney Stewart commended the investigation by the Jackson County Sheriff’s Office and FBI and the participation from an archeologist from Wayne National Forest and researchers from Ohio University, The Ohio State University and Washington State University, as well as Assistant United States Attorneys J. Michael Marous and Brian Martinez, who are representing the United States in this case.
Irwin Lipkin, Former Controller at Bernard L. Madoff Investment Securities LLC, Sentenced in Manhattan Federal Court to Six Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that IRWIN LIPKIN, the former Controller at Bernard L. Madoff Investment Securities LLC (“BLMIS”), was sentenced today to six months in prison for fraud and other offenses set forth in a two-count Superseding Information to which LIPKIN pled guilty. Specifically, LIPKIN pled guilty in November 2012 to one count of conspiracy to commit securities fraud, to falsify records, to make false filings with the Securities and Exchange Commission (“SEC”), and to falsify statements in relation to documents required by the Employee Retirement Income Security Act (“ERISA”), and to one substantive count of falsifying statements in relation to documents required by ERISA. The overt acts in the conspiracy included, among other things, falsifying financial information BLMIS filed with the SEC, causing fake trades to be created in investment accounts LIPKIN and his family members maintained at BLMIS, and arranging to keep himself and his wife on the BLMIS payroll after his retirement in 1998 – even though neither was working for the firm – so they could collect benefits to which they were not entitled. LIPKIN was sentenced in Manhattan federal court by U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Preet Bharara said: “Bernard Madoff did not commit his massive fraud alone. Irwin Lipkin, hired in the 1960s as BLMIS’s third employee, right after Madoff and Madoff’s wife, was among Madoff’s most loyal accomplices. Year after year, Lipkin helped keep Madoff’s house of cards from collapsing, falsifying the very financial records that Lipkin, as the Controller, was supposed to monitor. In exchange, Lipkin reaped the rewards of fake trades and no-show jobs for himself and his family. Lipkin’s sentencing – the last among the 15 defendants convicted for their participation in Madoff’s fraud – marks the close of another chapter in this tragic tale of unchecked greed.”
According to the Superseding Information to which LIPKIN pled guilty and other court filings:
LIPKIN was employed by BLMIS from 1964 through 1998, and was the first person who was not a family member to be hired by Bernard L. Madoff. In his role as Controller, LIPKIN participated in maintaining the firm’s financial books and records since at least the mid-1970s. At the direction of Bernard L. Madoff, LIPKIN, along with Daniel Bonventre, Enrica Cotellessa-Pitz, and others, made false and misleading entries concerning BLMIS’s profit and loss numbers (“P&L”) in the General Ledger and Stock Record, and in supporting books and records.
As an SEC-registered broker-dealer, BLMIS was required to file Financial and Operational Combined Uniform Single (“FOCUS”) Reports on a monthly, quarterly, and annual basis, as well as annual financial statements concerning BLMIS’s assets, liabilities, revenues, and expenses. The information contained in the FOCUS Reports and the annual financial statements was derived principally from information recorded in the BLMIS General Ledger and the Stock Record. Because those numbers were false and misleading, the corresponding numbers contained in the FOCUS Reports and annual financial statements were false and misleading as well. The annual financial statements provided to various BLMIS Investment Advisory customers also failed to accurately reflect the P&L of BLMIS. “These filings,” LIPKIN admitted when pleading guilty in November 2012, “helped Mr. Madoff run the Ponzi scheme that harmed thousands of people.”
When LIPKIN retired from BLMIS in 1998, he taught his successor as Controller how to manipulate the revenues at BLMIS in order to reach a particular P&L result, thereby allowing the fraud at BLMIS to continue.
In addition, since at least 1975, LIPKIN and his wife maintained their own personal Investment Advisory accounts at BLMIS. On multiple occasions, LIPKIN asked Annette Bongiorno, a BLMIS employee who worked in the Investment Advisory business, to execute fake, back-dated trades in both his account and the accounts of his family members. In an effort to reduce his capital gains income, LIPKIN also asked Bongiorno either to cancel the sales of shares in his account well after those sales had purportedly occurred, or to document nonexistent purchases of shares near the monthly high price, and nonexistent sales near the monthly low price, weeks later. No such trades actually occurred.
LIPKIN also arranged “no-show” jobs at BLMIS for both himself and his wife. As a result, they received income from salaries, health care insurance, 401(k) plans, and other benefits to which they were not entitled.
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In addition to the prison term, Judge Swain sentenced LIPKIN, 77, of Paramus, New Jersey, to three years’ supervised release, including eighteen months of home confinement. LIPKIN was also ordered to forfeit $170 billion dollars and various pieces of property, including a house in Florida, stocks from brokerage and retirement accounts, and artwork. This amount represents all of the investor funds paid into BLMIS from the mid-1970s – when LIPKIN became involved with the conspiracy – through December 2008.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission and the U.S. Department of Labor for their assistance on this case.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christopher Frey, Andrea Griswold, and David Abramowicz are in charge of the prosecution. Assistant U.S. Attorneys Jonathan Cohen, Paul Monteleoni, and Niketh Velamoor are responsible for the forfeiture aspects of the case.
Individual Convicted of Conspiracy and Money Laundering for Role in Costa Rican Telemarketing SchemeRead the Press Release
An Ohio man was convicted yesterday after a two-day jury trial in the Western District of North Carolina for his role in a Costa Rican telemarketing scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina made the announcement.
Paul Ronald Toth Jr., 40, of Wintersville, Ohio, was convicted of one count of conspiracy to commit money laundering and six counts of international money-laundering concealment. Sentencing before U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina will be scheduled at a later date.
According to the evidence presented at trial, Toth was involved in a telemarketing scheme in which his co-conspirators contacted U.S. residents from call centers in Costa Rica, falsely informing them that they had won substantial cash prizes in “sweepstakes.” To claim the cash prizes, the victims – many of whom were elderly – were instructed to send a purported “refundable insurance fee.”
The trial evidence showed that, between approximately November 2009 and November 2010, Toth was a United States-based “smasher” who facilitated the laundering of funds received from the elderly victims. Specifically, according to the evidence presented at trial, Toth and others he recruited and supervised received over $300,000 from victims and, using various individuals as senders and recipients to conceal the fraudulent nature of the transactions, wired over $200,000 of those funds to co-conspirators in Costa Rica. The evidence further demonstrated that Toth kept the remainder as his profit.
This case is being investigated by the U.S. Postal Inspection Service, the FBI, the Internal Revenue Service, Federal Trade Commission and Department of Homeland Security. The case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorneys William Bowne and Anna Kaminska of the Criminal Division’s Fraud Section.
Illinois Man Sentenced for Violating the Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KEITH CANTORE, age 35, of Monee, Illinois, was sentenced today for violating the Lacey Act by attempting to purchase threatened turtles that were captured in violation of state law.
U.S. District Judge Kurt D. Engelhardt sentenced CANTORE to 41 months incarceration, to be followed by three years of supervised release and $100 special assessment. Additionally, CANTORE was ordered to pay approximately $41,000 in restitution.
According to court records, CANTORE was charged with three counts of purchasing and/or attempting to purchase threatened species of turtles that were illegally captured from the wild. CANTORE pled guilty to attempted purchase of 100 North American Wood Turtles for $40,000.
According to court documents, the charges against CANTORE stemmed from undercover operations conducted by agents from the United States Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service. Court documents also note that CANTORE was previously convicted of federal charges related to the illegal sale of turtles and that he continued to illegally sell turtles while on bond for the current charges.
“The illicit trade in threatened and endangered species represents the destructive results of unfettered greed,” said Special Agent in Charge Raymond R. Parmer, head of ICE Homeland Security Investigations in New Orleans. “The poaching of Wood Turtles has had a significant negative impact on its population in the wild. In effect, this defendant was willing to help drive this species to extinction to make a few bucks. Law enforcement agencies like HSI and our partners at the U.S. Fish and Wildlife Service and U.S. Postal Inspection Service are eager to work with conservation services to stop the illegal trade in wildlife to ensure future generations get to enjoy these species in their native habitats.”
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
Idaho Summit on Prescription Drug Diversion Set for September 9 in BoiseRead the Press Release
BOISE - U.S. Attorney Wendy J. Olson today announced that the Treasure Valley’s hospital community, the State of Idaho health professional licensing boards, private law firms, law enforcement agencies and other organizations are partnering to host the Idaho Summit on Prescription Drug Diversion on Wednesday, September 9, 2015, at Washington Group Plaza.
“Prescription drug abuse and prescription drug diversion have created a national public health and public safety crisis. Idaho is not immune,” said Olson. “Prescription drug addiction can lead directly to heroin use and addiction, and to accidental death. Prescription drug abuse is responsible for impaired driving and property crimes as addicts seek means to fuel their addiction. Fortunately, Idaho’s health care leaders and federal and local law enforcement are committed to educating providers and the community about the dangers associated with prescription drug diversion.”
Olson said that her office in the last few years has prosecuted an increasing number of defendants who have illegally obtained, diverted or sold prescription drugs. Nationally, a Center for Diseases Control analysis found that one in twenty people in the United States ages 12 and older used prescription painkillers non-medically in 2010. Prescription painkiller overdoses killed nearly 15,000 people in 2008, triple the number from 1999. Moreover, according to the 2010 National Survey on Drug Use and Health, more than half of those 12 and over who used prescription painkillers non-medically for the first time obtained them from a family member or friend who had been prescribed the painkiller by a health care provider. The statistics are also alarming in Idaho. There were 456 drug-induced deaths in Idaho from 2007-2009. Of those, 262 involved narcotics, with 68 deaths from Hydrocodone and 43 from Oxycodone prescriptions alone.
The four-hour summit will involve presentations from the Drug Enforcement Administration, Boise Police Department and U.S. Attorney’s Office on how prescriptions are diverted to street sales, the community impact, the law enforcement response, and criteria for prosecution of cases. Medical professionals and regulators will provide tools for health care providers and health care organizations to identify diversion and diversion risks. They will also discuss medical standards in Idaho for safely prescribing prescription drugs.
“This conference is intended to provide medical providers of all specialties with critical information on simple steps they can take every day to help stop the flow of these prescription drugs from would-be patients while at the same time learning how these government agencies work to protect our community,” said Terrence S. Jones, partner at Quane Jones McColl, PLLC, and one of the event organizers.
“Our objective is not only to slow the flow of diverted prescription drugs, but also to open a dialogue and promote understanding between the medical community and law enforcement about each other’s practices and concerns,” said Olson. “This is a community health care and public safety problem and I am pleased that so many members of Idaho’s law enforcement and health care community are committed to finding community solutions.”
The Summit sponsors are: the Idaho Boards of Medicine, Pharmacy, and Nursing, the Idaho Bureau of Occupational Licenses, the Idaho Office of Drug Policy, the Idaho Medical Association, Boise State University, Idaho State University, the Drug Enforcement Administration, C.N.A. Professional Insurance, West Valley Medical Center, St. Luke’s Health Systems, Independent Doctors of Idaho, the Boise City Police Department, St. Alphonsus Hospital, Garrett Richardson, PLLC, and Quane Jones McColl, PLLC. The Summit will be held from 1:30 p.m. to 5:30 p.m. at the Washington Group Plaza Main Auditorium. Interested providers can enroll online at http://usaoidtraining.org/idahodrugsummit.
Hancock County man convicted of possessing stolen firearmRead the Press Release
WHEELING, WEST VIRGINIA – Timothy J. Jackson, 56, of New Cumberland, West Virginia, was convicted of possessing a stolen firearm, United States Attorney William J. Ihlenfeld, II, announced.
Jackson was discovered in Hancock County, West Virginia in December 2014 in possession of a stolen firearm. He pled guilty to one count of “Possession of a Stolen Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, led the investigation.
U.S. Magistrate Judge James E. Seibert presided.
Georgia Man Charges with Transporting Stolen Range Rover Across State LinesRead the Press Release
PITTSBURGH- A resident of Fayetteville, Georgia, has been indicted by a federal grand jury in Pittsburgh on a charge of interstate transportation of a stolen vehicle, United States Attorney David J. Hickton announced today.
The one-count indictment named Tom E. Smith, 53, as the sole defendant.
According to the indictment, Smith unlawfully transported a stolen Land Rover Range Rover Sport from Western Pennsylvania into West Virginia on or about July 1, 2015.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Northern Regional Police Department of Allegheny County, Monroeville Police Department of Allegheny County, Allegheny County Police Department, West Virginia State Police, and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Las Vegas Couple Guilty of Defrauding over 400 Vulnerable Homeowners in $3.8 Million Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Kristen Michelle Ayala, aka “Amber Lynch,” aka “Olivia Benet,” aka “Grace Williams,” 30, and Joshua Manuel Sanchez, aka “Nelson Cruz,” aka “Chris Ward,” “Daniel Mora,” 34, both formerly of Las Vegas, have pleaded guilty to conspiracy to commit wire fraud for their role in a $3.8 million dollar mortgage modification scam.
In a statement of facts filed with the plea agreement, from in and around October 2012 through September 2014, Ayala, Sanchez, and others, executed a scheme to defraud vulnerable victim homeowners who were at risk of foreclosure. Ayala and Sanchez developed fraudulent documents, telephone scripts, and aliases in an effort to defraud the victim homeowners. Their scheme lulled victim homeowners into believing that the defendants were part of the legitimate U.S. Government “Home Affordable Modification Program” (“HAMP”). During the execution of the ruse, the Ayala and Sanchez used documents containing fraudulent government seals, made statements regarding modification of the victims’ mortgages through the HAMP program, and the victims’ mortgage payments to their own accounts rather than to the victims’ lenders. To date, the scheme defrauded more than 400 victims, caused losses of over $3.8 million dollars, and resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.
Ayala and Sanchez were indicted by a federal grand jury on May 1, 2015. Each faces a maximum penalty of 20 years in prison when sentenced on Oct. 29, 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; and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris.
This case was investigated by SIGTARP. Assistant U.S. Attorneys Zach Terwilliger and James P. Gillis 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-147.
Former Executives of Wilmington Trust Indicted for Conspiracy and False StatementsRead the Press Release
WILMINGTON, Del. – Robert V.A. Harra, age 66, of Wilmington, David Gibson, age 58, of Wilmington, William North, age 55 of Bryn Mawr, Pennsylvania, and Kevyn Rakowski, age 61, of Lakewood Ranch, Florida, were indicted today for their respective roles in concealing from the Federal Reserve, the Securities and Exchange Commission (SEC) and the investing public the total quantity of past due loans on Wilmington Trust’s books from October 2009 until November 2010. The Nineteen-Count Superseding Indictment charges defendants with making false statements in securities filings and to agencies of the United States government.
All defendants are charged with conspiracy to defraud the United States, to commit fraud in connection with the purchase and sale of securities, and making false statements to regulators (18 U.S.C. § 371). All defendants are charged with one count of false statements in connection with the purchase or sale of securities (18 U.S.C. § 1348), four counts of making false entries in banking records (18 U.S.C. § 1005), seven counts of making false statements to agencies of the United States government (18 U.S.C. § 1001), and two counts of making false statements in SEC reports (15 U.S.C. §§ 78m(a) and 78ff). Harra and Gibson are also charged with two additional counts of making false statements in SEC reports and Gibson is charged with three counts of falsely certifying financial reports (18 U.S.C. § 1348). North and Rakowski were previously charged with two counts of making false statements to an agency of the United States, relating to the concealment from the market and the Federal Reserve the total quantity of past due loans on the bank’s books during the months of October and November 2009.
Wilmington Trust was required to report in its quarterly filings with both the SEC and the Federal Reserve the quantity of its loans for which payment was past due for 90 days or more. Investors and banking regulators consider the 90-day number in evaluating the health of a bank’s loan portfolio. According to the Superseding Indictment, Harra, Gibson, North, and Rakowski helped conceal the truth about the health of Wilmington Trust’s loan portfolio from the SEC, the investing public and from the bank’s regulators.
The Superseding Indictment alleges that Harra, Gibson, North, and Rakowski participated in Wilmington Trust’s failure to include in its reporting a material quantity of past due loans, despite the reporting requirements and knowing the significance of past due loan volume to investors and regulators. North, as the bank’s Chief Credit Officer, approved the exclusion or “waiver” of such loans from internal reports that he knew would be used to generate the bank’s external financial reports. As the bank’s President and Head of Regional Banking, Harra encouraged the “waiver” of past due loans. He served as a primary point of contact with the bank’s regulators during 2009 and 2010, signed bank regulatory filings, participated in quarterly earnings calls with investors, and did not disclose the bank’s failure to report “waived” loans. The Chief Financial Officer, Gibson, also knew the bank had “waived” loans from public reporting and failed to disclose this. Despite this knowledge, Gibson helped to draft and approved SEC filings and certified that those same filings fairly presented the financial condition of Wilmington Trust. Rakowski, as Controller, approved the bank’s filings with the SEC and the Federal Reserve knowing that those reports did not include past due loans that had been “waived.”
In November 2010, Wilmington Trust was acquired by another bank at a discount of approximately 46% from the bank’s share price the prior trading day.
In announcing the Superseding Indictment, United States Attorney for the District of Delaware Charles M. Oberly, III, stated, “This Superseding Indictment marks the next significant step in our investigation into the illegal conduct by at Wilmington Trust. The failure by these individuals to properly inform regulators and investors about the true financial condition of Wilmington Trust resulted in significant harm to those investors and losses to the Delaware community. As high-ranking bank executives, these individuals had an obligation to accurately report important financial metrics which enable investors to make informed decisions. Even in the wake of the financial crisis, their deception was neither permissible nor excusable.”
“The deception explained in this indictment shows the defendants set out to hide information from the federal government. The men and women named in this case not only hid financial details from regulators but from the general public and investors,” said acting Special Agent in Charge Scott Hinckley of the FBI in Delaware. “These aren’t victimless crimes and those who committed them will be held accountable.”
“The criminal charges filed today allege that four senior executives of a TARP bank did not want to face the consequences of telling the truth about past due loans on the bank’s books, and in reporting to regulators, investors and shareholders,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “These TARP bankers allegedly engaged in a practice of waiving past-due loans from their external reports, and making mass extensions of past-due loans with limited – if any – underwriting and many lacking updated appraisals. In 2008 Treasury, on behalf of American taxpayers, invested $330 million in TARP bailout funds in Wilmington Trust. In 2010, the bank then turned to the market to raise capital using its falsely reported past due numbers. The bank was then sold at a severe discount, roughly half its discount from the prior day. Bankers across the nation were faced with declining economic conditions and rising past-due loans, and told the truth about those loans and losses. Bankers at Wilmington Trust did not. We commend United States Attorney Charles Oberly, III and our law enforcement partners for standing firm with SIGTARP to combat TARP-related crime.”
“Bank executives hold positions of trust not only within their banks but also in the eyes of the public. That trust is broken when such executives abuse their power and commit crimes. This latest indictment should serve as a continued warning to anyone who is contemplating similar financial fraud, that their illegal activity will not go unnoticed” said Akeia Conner, Special Agent In Charge, IRS Criminal Investigation.
“Today’s indictment sends a clear message that bank executives who engage in fraud to deceive regulators and the public will be held accountable for their actions,” said Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.The case is being investigated by the Federal Bureau of Investigation, the Department of Treasury’s Special Inspector General for the Troubled Asset Relief Program, the Internal Revenue Service’s Criminal Investigative Division, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. The Securities and Exchange Commission has also contributed to the investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert Kravetz and Lesley Wolf of the District of Delaware.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
Former Employee of Hobbs Gun Shop Sentenced to Prison for Federal Firearms ConvictionRead the Press Release
ALBUQUERQUE – Carlos Carlon Cruz, the father of a the former owner of a gun shop in Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., for violating the federal firearms laws. Carlos Carlon Cruz was sentenced to 18 months in prison followed by three years of supervised release. His wife, Norma M. Cruz was sentenced last week to three years of supervised release for her conviction on firearms charges. Their son, Carlos Jonathan Cruz was sentenced on Feb. 4, 2015, to 12 months and one day in prison followed by three years of supervised release.
Carlos Carlon Cruz, 61, Norma M. Cruz, 58, and their son Carlos Jonathan Cruz, 32, the former owner of Hobbs Satellite Company Guns & Ammo, were indicted in June 2013. The indictment charged the three defendants with violating federal firearms laws by making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser” and buying firearms on behalf of others. Carlos Jonathan Cruz also was charged with unlawfully selling thousands of rounds of ammunition to an alien illegally in the United States, unlawfully possessing an unregistered sawed-off shotgun, and unlawfully possessing firearms with obliterated serial numbers.
Carlos Carlon Cruz and Norma M. Cruz pled guilty on Jan. 7, 2014, to felony informations charging them with making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and unlawfully selling ammunition to a prohibited person. In entering their guilty pleas, the couple admitted that on April 9, 2013, they sold 2,500 rounds of ammunition to an alien who was illegally in the United States. They also admitted that on April 23, 2013, they knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at the gun shop for an individual who was working as a confidential informant for the ATF.
Carlos Jonathan Cruz also pled guilty on Jan. 7, 2014, to a felony information charging him with making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and unlawfully possessing firearms with obliterated serial numbers. In entering his guilty plea, Carlos Jonathan Cruz admitted that on April 23, 2013, he knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at his gun shop for an individual who was working as a confidential informant for the ATF. Cruz also admitted possessing a firearm with an obliterated serial number on May 29, 2013.
Under the terms of their plea agreements, all three defendants are required to forfeit approximately 165 firearms, 25,703 rounds of ammunition and six silencers.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the DEA and the Hobbs Police Department, and was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office. Assistant U.S. Attorney Stephen R. Kotz is handling the related forfeiture proceedings.
Former Credit Union Employee Indicted for Embezzling Funds from Pantex Federal Credit UnionRead the Press Release
AMARILLO, Texas — A federal grand jury returned an indictment last week charging a former employee of the Pantex Federal Credit Union in Borger, Texas, with embezzlement, announced John Parker, United States Attorney for the Northern District of Texas.
Dorothy Stegall Barnes, a/k/a “Dorothy Stegall Newman,” 56, is charged with one count of embezzlement from a federally insured credit union. She made her initial appearance in federal court today. Barnes entered a plea of not guilty, a trial date will be set at a later date.
The indictment alleges that from approximately September 1996 through December 2010, Barnes, the Assistant Vice-President of Teller Operations at the Pantex Federal Credit Union, embezzled approximately $826,000 from the credit union.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for this offense is 30 years in federal prison and a $1 million fine. Restitution may also be ordered.
The FBI and Borger Police Department investigated. Assistant U.S. Attorney Tim Hammer is prosecuting.
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Florida and Louisiana Residents Charged in Multi-State Scheme to Distribute Illegal and Mislabelled Diet PillsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today actions taken in connection with a federal criminal investigation into an alleged multi-state scheme to illegally distribute diet pills containing sibutramine, a Schedule IV controlled substance, which were falsely labeled and marketed as “all natural” dietary supplements.
A federal grand jury indictment, originally filed on July 29, 2015, was unsealed today. The indictment charges Darlene V. Krueger, age 53, of Destrehan, Louisiana, with conspiring to distribute and possess with the intent to distribute sibutramine, distributing sibutramine, and introducing misbranded drugs into interstate commerce.
The indictment alleges that sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed significantly increased risk of strokes and heart attacks. According to the indictment, since the removal of Meridia, no drug containing sibutramine has been approved for use in humans in the United States.
The indictment alleges further that, between 2009 through 2014, Krueger conspired with John Wesley Hoag, age 51, of Ft. Lauderdale, Florida, to sell purportedly “all natural” dietary supplements under various names, such as “Slim Forte Slimming Capsules,” “Slim Forte Double Power Slimming Capsules,” “Slim-Vie Slimming Capsules,” and “Slim-Vie Double Power Slimming Capsules,” which they knew contained sibutramine, to customers throughout the United States. According to the indictment, even after learning that the diet pills contained sibutramine and had potentially serious side effects, Krueger continued to distribute the diet pills and disseminate false and misleading information about the safety and efficacy of her products.
On July 29, 2015, Hoag pled guilty before U.S. District Judge John W. deGravelles to a Bill of Information charging him with conspiring with Krueger to distribute and possess with the intent to distribute sibutramine and introducing misbranded drugs into interstate commerce. During the guilty plea hearing, Hoag admitted to unlawfully importing the diet pills from manufacturers based in China and then distributing the diet pills to his distributors, including Krueger, and consumers.
As a result of their respective roles, Krueger and Hoag face significant incarceration, fines, restitution, forfeiture of proceeds, and supervised release following imprisonment.
U.S. Attorney Green stated: “This important prosecution is a reminder that drug trafficking conspiracies come in all shapes and sizes, and can involve a wide variety of illegal substances, none of which we will tolerate. When individuals knowingly sell potentially dangerous misbranded drugs to unsuspecting consumers, my office will work diligently with our law enforcement partners to protect public health by identifying the illegal products and dismantling the illegal distribution networks.”
“Consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Robert J. West, Acting Special Agent-in-Charge, Miami Field Office, FDA Office of Criminal Investigations. “Our office will continue to defend the public’s health by ensuring that dietary supplements are accurately labeled, and do not contain dangerous undeclared active pharmaceutical ingredients.”
This ongoing investigation is being handled by the FDA’s Office of Criminal Investigations. The matter is being prosecuted by Assistant United States Attorneys Cam T. Le and Paul L. Pugliese.
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA. For more information regarding dietary supplements and to report adverse events, please visit the FDA’s website at http://www.fda.gov/Food/DietarySupplements/.
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.
Five Defendants Indicted in One of the Nation’s Largest Fentanyl SeizuresRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a an indictment charging Herman E. Aguirre, 41, of Brea, CA, Troy R. Gillon, 41, of Lockport, NY, Darryl J. Williams, 43, of Williamsville, NY, Maulana Lucas, 41, Niagara Falls, NY, and Shirley Grigsby, 40, Buffalo, NY, with conspiracy to possess with intent to distribute heroin, fentanyl, and cocaine and possession with intent to distribute heroin, fentanyl and cocaine. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum life, and a $20,000,000 fine.
“In this time of heightened concern regarding multiple overdose deaths in our community, the seizure of a trifecta of dangerous and potentially deadly drugs - cocaine, heroin and fentanyl - is both highly significant and extremely good news for our area,” said U.S. Attorney Hochul. “Our law enforcement partners are working aggressively to track down these traffickers who are bringing nothing but danger and in too many cases death to the streets of our neighborhood.”
"In a broad sense, these arrests give the public a good idea how poly-drug trafficking organizations are being tracked down by law enforcement,” said DEA Special Agent in Charge James J. Hunt. “We are not only targeting the very top of the drug hierarchy who disseminate large quantities of heroin, cocaine and fentanyl but we are also focused on the distributors throughout the country. We not only want to seize as much of this poison as we can, but in this case we are also snatching away their drug proceeds, crippling these organizations financially. Our efforts are centered on targeting these drug entities who are trafficking multiple addictive drugs, dismantle them on all levels and continue our fight against addiction to powerful drugs."
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated according to the indictment, between June 2013 and July 29, 2015, the defendants conspired to possess and distribute heroin, fentanyl, and cocaine in Western New York, primarily Lockport and Niagara Falls.
During the course of the investigation, law enforcement officers in Western New York, California and Nebraska seized a total of 40 kilograms of cocaine, 17 kilograms of heroin and eight kilograms of fentanyl. The seized fentanyl alone represents one of the largest seizures of fentanyl ever in the United States. In addition, law enforcement tracked $13,000,000 in cash flowing from an area bank to California.
According to information provided in Court, the investigation began in March 2014. Defendants Gillon and Williams received large quantities of narcotics from Herman Aguirre’s “seafood” warehouse in Montebello, California and then distributed the drugs to others in the Western New York area including Trent Adair Hamilton and Michael Paul Mitchell. Hamilton and Mitchell were arrested in connection with this case in March 2015. The defendants are charged with conspiracy to possess with intent to distribute and to distribute heroin. Hamilton is also charged with possession with intent to distribute and to distribute heroin. Mitchell is facing an additional charge of possession with intent to distribute and to distribute crack cocaine.
According to a complaint filed earlier in the case against defendants Lucas and Grigsby, on March 23, 2015, Buffalo Police received a call regarding a family dispute at 98 Folger St. After they arrived, officers received written consent to search the residence and found three duffle bags which contained approximately eight kilograms of fentanyl and 24 kilograms of cocaine.
The 32 kilograms of drugs seized at 98 Folger Street were submitted to the Erie County Central Police Services for analysis. A chemical analysis of the substance inside the first kilogram was determined to be pure fentanyl, which is extremely dangerous, if not fatal, if ingested. As a result, the analysis of the drugs was suspended due to the danger of ingestion of airborne fentanyl. The investigation was thereafter completed in a federal laboratory.
Defendants Grigsby, Lucas, Gillon and Williams have been arraigned and are being detained. Herman Aguirre was arrested in California and is being held pending further proceedings. Trent Hamilton is being held, Michael Mitchell was released on conditions.
Today’s indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the DEA Los Angeles Field Division, the Niagara County Drug Task Force and Niagara County Sheriff’s Office, under the direction of Sheriff James Voutour, the Niagara County District Attorney’s Office, under the direction of Michael Violante, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Erie County District Attorney’s Office, under the direction of Frank Sedita, the Erie County Central Police Services Forensic Laboratory, under the direction of John Simich, the Lockport Police Department, under the direction of Chief Lawrence Eggert, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, the Town of Tonawanda Police Department, under the direction of Chief Jerome Uschold, the New York State Office of the Attorney General, New York State Parole, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of J. Michael Kennedy, Acting Special Agent in Charge, the Federal Bureay of Investigation Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and Customs and Border Protection, Office of Air and Marine, under the direction of Brian Manaher, Director, Marine Operations.
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.
Federal Grand Jury Indicts Austin Man in Alleged Counterfeiting SchemeRead the Press Release
In Austin, a federal grand jury late yesterday afternoon indicted 42-year-old Randolf Ace Corujo for his role in a counterfeiting scheme announced United States Attorney Richard L. Durbin, Jr., and U.S. Secret Service Resident Agent in Charge Thomas C. Edwards, Austin Resident Office.
A five-count indictment charges Corujo, of Austin, with one count of conspiracy to manufacture and pass counterfeit U.S. Currency. The indictment also charges Corujo with two counts of passing, uttering and possessing counterfeit U.S. Currency and two counts of making, forging, altering and counterfeiting U.S. Currency.
According to the indictment, Corujo and others conspired earlier this year to create and pass counterfeit U.S. Currency. Investigative information revealed over 160 passes of counterfeit currency at local businesses and banks from March 2015 through July 2015 with a total aggregate value in excess of over $23,000.00.
Upon conviction of the conspiracy charge, Corujo faces up to five years. Each remaining charge calls for up to 20 years imprisonment upon conviction. Corujo has remained in federal custody since his arrest in Austin on July 24, 2015.
In a related case, 31-year-old William Neal and 35-year-old Joshua Neal of Leander, TX, await sentencing after pleading guilty to passing, uttering and possessing counterfeit U.S. Currency. William Neal is currently on a $10,000 bond. Joshua Neal has remained in custody since their arrest in April 2015. Sentencing is scheduled for 9:00am on August 20, 2015, before U.S. District Judge Sam Sparks in Austin.
This investigation was conducted by the Central Texas Financial Crimes Task Force together with the Cedar Park Police Department, Burnet Police Department, Pflugerville Police Department, and the Sunset Valley Police Department. The Central Texas Financial Crimes Task Force, led by the United States Secret Service, is comprised of investigators with the Austin Police Department, Hays County Sheriff’s Office, Williamson County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Federal Court Approves Consent Decree with Commonwealth of Puerto Rico to Resolve Allegations of Employment Discrimination Against Puerto Rico Police DepartmentRead the Press Release
The Department of Justice announced today that the U.S. District Court for the District of Puerto Rico has approved the department’s consent decree with the commonwealth of Puerto Rico and the Puerto Rico Police Department (PRPD) that resolved allegations that the PRPD discriminated against Yolanda Carrasquillo on the basis of race, color and religion in violation of Title VII of the Civil Rights Act of 1964.
The department’s complaint in this action, filed on July 22, 2013, alleged that Carrasquillo, a sworn police officer, was subjected to a hostile work environment because of the discriminatory actions of a civilian co-worker. This co-worker regularly directed racial and other offensive slurs at Carrasquillo and other black or dark-skinned employees, and disparaged Carrasquillo’s Christian faith. According to the complaint, PRPD failed to take any meaningful steps to stop the harassment or discipline the harasser. The department’s complaint was based on a charge filed by Carrasquillo with the Equal Employment Opportunity Commission, which investigated the matter, determined that there was reasonable cause to believe that discrimination had occurred and referred the matter to the department.
This consent decree resolves the individual charge of employment discrimination against the PRPD. Under the terms of the decree, the PRPD will provide Carrasquillo with $60,000 in monetary relief and credit her with 30 days of annual leave.
The consent decree also requires the PRPD to revise its anti-discrimination employment policies and train its employees within the framework of its existing July 17, 2013, comprehensive systemic reform agreement with the department.
“This settlement agreement is yet another step towards the fulfillment of the necessary reforms in the Puerto Rico Police Department that will ensure that the PRPD will have appropriate procedures in place to protect the rights of its employees, ” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Through this consent decree, the Department of Justice continues to protect the rights of all workers to a workplace free from the fear of harassment because of their race, color or religion.”
The continued enforcement of Title VII is a priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Father, Sons Indicted for Defrauding Victims of More Than $18 MillionRead the Press Release
Memphis, TN – A father and two sons were indicted on multiple charges this week for their alleged roles in a scheme that defrauded victims of more than $18 million.
Larry Bates, a former Tennessee state legislator, was CEO of First American Monetary Consultants (FAMC), Inc. A financial company, FAMC engaged in buying, selling and trading precious metals, primarily gold and silver coins. He was also the CEO of Information Radio Network, Inc. (IRN), a broadcast service that provided radio listeners with information and advice on a variety of topics including politics and world economy.
Larry’s son, Charles "Chuck" Bates, was executive vice president and news director for IRN and an economist with FAMC. Larry’s other son, Robert Bates, was an economist with FAMC.
From May 2002 to October 2013, the trio allegedly encouraged customers, many of whom were Christians and elderly individuals, to purchase copious amounts of certain types of gold and silver from FAMC. All of the individuals targeted by the Bates were seeking advice and help from a supposed trusted Christian advisor and/or an alleged reputable Christian financial company, according to the indictment.
The defendants utilized IRN as a means of advertising, promoting, and soliciting the sale or purchase of gold and silver to and from individuals nationwide, according to the indictment. To execute their scheme, the Bates’ told potential customers that they needed to purchase gold and silver to protect themselves from "Mystery Babylon," an alleged forthcoming economic, political and religious downturn.
Those who accepted the Bates’ offers provided payment via mail, wire transfers, or through private and commercial interstate carriers to purchase gold and silver from FAMC. Subsequent to submitting their payments, the customers would receive an invoice and order confirmation via mail, according to the indictment.
After the defendants received money and/or gold and silver from customers, they would partially complete the customers’ orders or fail to fill them altogether. The indictment alleges that the defendants utilized a portion of the embezzled proceeds to fund personal expenses and maintain operation of FAMC and IRN. When contacted by customers who didn’t receive their orders, the defendants would allegedly provide false promises, delay returning calls or emails, or neglect to respond altogether. According to the indictment, this activity continued from weeks up to years.
"As the indictment alleges, the defendants defrauded unsuspecting victims of more than $18 million by promising to purchase gold and silver coins on their behalf," said U.S. Attorney Edward L. Stanton III. "Unfortunately, hundreds of these victims never received the coins they purchased. Instead, their money was used by the defendants to fund lofty salaries and exorbitant lifestyles."
More than 300 people were victimized during the Bates’ scheme. In addition to individuals in West Tennessee, the Bates’ defrauded people in Texas, Alabama, Kansas, Vermont, Oklahoma, Missouri, Florida, Massachusetts, and a multitude of other states.
All three defendants are being charged with multiple counts of mail and wire fraud. If convicted, they each face up to 20 years imprisonment and up to $1 million in fines per count.
The defendants are also being charged with conspiracy to commit mail and wire fraud.
If convicted, they each face up to 20 years imprisonment and up to $1 million in fines.
The case is being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Larry Laurenzi and David Pritchard are representing the government in this case.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
El Tribunal Federal Aprueba el Decreto por Consentimiento con el Estado Libre Asociado de Puerto Rico en Resolución de Alegatos de Discriminación en el Empleo Contra el Departamento de Policía de Puerto RicoRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que el Tribunal Federal de Distrito para el Distrito de Puerto Rico ha aprobado el decreto por consentimiento del departamento con el Estado Libre Asociado de Puerto Rico y el Departamento de Policía de Puerto Rico [Puerto Rico Police Department (PRPD)] que resolvió alegatos de que el PRPD discriminó a Yolanda Carrasquillo debido a raza, color y religión, en violación del Título VII de la Ley de Derechos Civiles de 1964.
La demanda del departamento, entablada el 22 de julio de 2013, alegó que Carrasquillo, una agente de la policía juramentada, fue sometida a un ambiente de trabajo hostil debido a las acciones discriminatorias de un compañero de trabajo civil. Dicho compañero de trabajo se dirigía habitualmente a Carrasquillo y otros empleados de raza negra o con piel oscura, profiriendo insultos raciales y ofensivos, y menospreció la fe cristiana de Carrasquillo. De acuerdo con la demanda, el PRPD dejó de tomar medidas para poner fin al acoso o dejó de tomar medidas disciplinarias contra el acosador. La demanda del departamento se basó en una queja presentada por Carrasquillo a la Comisión de Igualdad de Oportunidades de Empleo, que investigó el caso, y habiendo determinado que existía causa razonable para creer que había ocurrido discriminación, remitió el caso al departamento.
Este decreto por consentimiento resuelve el cargo individual de discriminación en el empleo entablado contra el PRPD. Bajo los términos del decreto, el PRPD pagará a Carrasquillo $60.000 en compensación monetaria y le otorgará 30 días de licencia anual.
El decreto por consentimiento también exige que el PRPD realice una revisión de sus políticas contra la discriminación en el empleo y capacite a sus empleados de acuerdo con su existente acuerdo integral de reforma sistémica del 17 de Julio de 2013 con el departamento.
“Este acuerdo conciliatorio es un paso más hacia la realización de las reformas necesarias en el Departamento de Policía de Puerto Rico que garantizarán que el PRPD implemente procedimientos adecuados para proteger los derechos de sus empleados”, dijo la Procuradora General Adjunta Suplente Principal Vanita Gupta, quien encabeza la División de Derechos Civiles. “Por medio de este decreto por consentimiento, el Departamento de Justicia sigue protegiendo los derechos de todos los trabajadores de trabajar libres de temor al acoso debido a su raza, color o religión”.
Es prioridad de la División de Derechos Civiles hacer valer el Título VII en forma continua. Existe disponible información adicional sobre la División de Derechos Civiles en su sitio en internet en www.justice.gov/crt .
El Departamento de Justicia Resuelve una Denuncia de Discriminación por Ciudadanía Contra la Ciudad de Eugene, Estado de OregónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con la Ciudad de Eugene, Oregón, que resuelve las acusaciones de que la Ciudad había violado la disposición antidiscriminatoria de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). La Ciudad de Eugene es la segunda ciudad más grande en el estado de Oregón.
La investigación del Departamento de Justicia encontró que la Ciudad de Eugene había restringido los puestos disponibles en los cuerpos de orden público a individuos que en el momento de la contratación fuesen ciudadanos estadounidenses, aunque no existe ninguna ley, reglamento, orden ejecutiva o contrato de gobierno que autorice ese tipo de restricción. La investigación demostró que la Ciudad de Eugene preguntó a postulantes al cargo de agentes de policía acerca de su estatus de ciudadanía con la intención de excluir a postulantes que no fuesen ciudadanos de los Estados Unidos en el momento de la contratación. La disposición antidiscriminatoria de la INA prohíbe que los empleadores restrinjan los cargos a ciudadanos estadounidenses salvo en los casos en los que el empleador está obligado a hacerlo por ley o conforme a un reglamento, una orden ejecutiva o un contrato gubernamental.
Según el acuerdo de resolución, la Ciudad de Eugene pagará una multa civil, capacitará a sus empleados acerca de la disposición antidiscriminatoria de la INA y será sujeto al monitoreo por parte del Departamento de Justicia durante un período de tres años.
“La División de Derechos Civiles se compromete a asegurar que los individuos que cuenten con autorización para trabajar en los Estados Unidos no se enfrentan con barreras discriminatorias ilegales”, declaró la Subprocuradora General Interina, Vanita Gupta, de la División de Derechos Civiles. “La División de Derechos Civiles desea felicitar a la Ciudad de Eugene por su cooperación con el Departamento de Justicia y las medidas correctivas oportunas que tomó para abordar la situación”.
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) tiene la responsabilidad de hacer cumplir con la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivo de la ciudadanía o el estatus migratorio de un individuo, o bien por su origen nacional, en la contratación, el despido o el reclutamiento o la recomendación a cambio de un honorario. El caso lo gestionó el Abogado Litigante de la OSC, Pablo A. Godoy.
Para más información sobre las protecciones contra la discriminación en el empleo bajo las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1‑800-237-2515, TTY para las personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con discapacidades auditivas); matricúlese para una conferencia en línea gratuita en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los postulantes o empleados que creen haber sido víctimas de discriminación por motivo de su ciudadanía, estatus migratorio u origen nacional en la contratación, el despido o el reclutamiento o referencia por comisión deberán llamar a la línea directa para trabajadores mencionada arriba y serán atendidos.
Drug Trafficker Exiled to 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lateef Fisher, age 37, of Greencastle, Pennsylvania, today to 13 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin or 28 grams or more of cocaine base in Hagerstown, Maryland, and the surrounding counties in Maryland, Pennsylvania, and West Virginia.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Hagerstown Police Chief Mark Holtzman; and Washington County Sheriff Douglas W. Mullendore.
According to evidence presented at his seven day trial, Fisher sold heroin to an individual who agreed to cooperate with law enforcement. On February 19, 2014, law enforcement arrested Fisher after he parked his car in a lot in Hagerstown, Maryland, and seized two plastic bags of heroin.
Law enforcement made controlled purchases of heroin using confidential informants on five occasions from March 19 to July 23, 2014. These purchases totaled over 28 grams of heroin. In addition, from May to September 2014, two customers purchased approximately one kilogram of heroin from Fisher. Other customers purchased over 600 grams of heroin in July and August, 2014.
On September 4, 2014, law enforcement executed search warrants at Fisher’s residence and a storage unit he rented, seizing 709.5 grams of heroin, 40 grams of crack cocaine, 10 handguns, ammunition, $240,000, a press designed to compress kilogram packages of narcotics, vacuum sealers, digital scales and plastic baggies.
United States Attorney Rod J. Rosenstein commended the DEA, Hagerstown Police Department, Washington County Sheriff’s Office, and the Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Evan T. Shea, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Delaware County Dairy Cattle Farmer Pleads Guilty to Illegal Alien HarboringRead the Press Release
A Delaware County, Iowa, man pled guilty today in federal court in Cedar Rapids to one count of harboring, encouraging, and inducing an alien to reside in the United States in violation of law, for the purpose of commercial advantage or personal financial gain.
Michael Thomas Millenkamp, 47, of rural Earlville, Iowa, was convicted of one count of harboring, encouraging, and inducing an alien to reside unlawfully in the United States.
In a plea agreement filed at the time of the plea hearing, Millenkamp admitted that between 2007 and 2011, he employed several illegal aliens at his business, Mike Millenkamp Dairy Cattle, near Earlville. Some of the illegal alien employees were permitted to reside at one or more farms owned by Millenkamp. Millenkamp admitted he told one illegal alien:
“these people I know, they’re my friends, and they’re like, Mike why are you hiring people that are illegal? Why are you hiring people illegal Mike? I said, I don’t know. But I knew I had to lie, I had to lie.”
As part of the plea agreement, Millenkamp is required to engage in ongoing compliance with the employment eligibility verification laws, and to obtain a certification that his animal feeding operations are in compliance with Iowa’s water quality standards. If the environmental assessment indicates deficiencies in Millenkamp’s operations, Millenkamp will be required to remediate those problems.
Millenkamp also agreed as part of his plea agreement to pay a total financial sanction of $250,000 to the United States, and to make at least two public presentations to statewide farm groups to bring awareness to his case.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Millenkamp was released on bond pending sentencing. Millenkamp faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 in special assessment, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-02031-LRR.
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Danville Man Indicted on Fraud ChargesRead the Press Release
Danville, VIRGINIA – A majority owner of Hayes & Iron Metal, a full service metal recycling and salvage operation founded in 1980, was indicted by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke on a variety of fraud charges.
Douglas T. Alderson II, 44, of Danville, Virginia, was charged in a sealed indictment earlier this month. That indictment was unsealed today after the defendant made his initial court appearance in U.S. District Court in Roanoke.
The grand jury has charged Alderson with one count of bank fraud and two counts of making false statements to obtain bank funds.
According to the indictment, Alderson secured a $6 million loan, later increased to $7 million, from BB&T bank for what he claimed were “seasonal working needs” for Hayes & Iron Metal. The primary collateral was Hayes’ accounts receivables. One of the entities Alderson listed on his Loan Base Report to BB&T was a vendor, Virginia Wire and Processing. However, it was later revealed that Virginia Wire and Processing was not a vendor of Hayes Iron & Metal but was rather an entity owned and funded by Alderson. Alderson purposefully misstated the amounts owed to Hayes Iron and Metal in order to secure the loan.
The indictment alleges that Alderson treated Virginia Wire and Processing as a wholly owned subsidiary of Hayes and was paying Virginia Wire and Processing’s bills, payroll and advancing money to run their operations. It is also alleged that Alderson used Virginia Wire and processing money for personal expenses, including but not limited to: in 2011, $329,390 in American Express charges that were personal in nature, including $92,534 for lodging at the Ritz-Carlton in New York City and $53,856 for charter jets. In 2013, Alderson alleged charged $260,093 in personal charges on the American Express account, including but not limited to, $34,585 for lodging at the Ritz-Carlton, $79,415 for personal shopping, $68,712 for event tickets and $22,210 for jet, bus and limousine charters.
If convicted, the defendant faces up to 30 years in prison and/or a fine of up to $1 million.
The investigation of the case was conducted by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney C. Patrick Hogeboom III will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Cruise Line Employee Sentenced to 13 Months in Prison for Abusive Sexual Contact of Sleeping Woman on Cruise ShipRead the Press Release
NEWARK, N.J. – A Mauritius man was sentenced today to 13 months in prison for sexually abusing a sleeping woman aboard a cruise ship, U.S. Attorney Paul Fishman announced.
Karan Seechurn, 26, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of abusive sexual contact. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Seechurn was employed by a cruise line and was responsible for restocking the minibars located in passengers’ rooms. In order to conduct this duty, he was provided with a key that gave him access to passengers’ rooms. Seechurn admitted that on Dec. 23, 2014, while he was off-duty, he entered a passenger’s room and encountered a sleeping woman. Seechurn admitted that he touched the passenger’s genitalia while she was asleep.
In addition to the prison term, Judge Salas sentenced Seechurn to one year of supervised release.
The federal government has special maritime jurisdiction over sexual abuse cases, such as those that occur on cruise ships.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office General Crime Unit in Newark.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Clinical Director of Home Care Agency Convicted of Health Care Fraud SchemeRead the Press Release
BOSTON – The clinical director of a home nursing agency was convicted today in U.S. District Court in Boston following a four-day trial in connection with her role in a multi-million dollar scheme to defraud Medicare.
Janice Troisi, 66, of Revere, was convicted of conspiracy to commit health care fraud and 10 counts of health care fraud. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Nov. 10, 2015.
Troisi, a registered nurse, was the Clinical Director of At Home VNA (AHVNA), a home health agency located in Waltham, which was owned and operated by her co-conspirator, Michael Galatis, also a registered nurse. From 2006 to 2012, Galatis submitted more than $27 million in fraudulent home health care claims to Medicare, and Medicare paid more than $20 million of those fraudulent claims that, by and large, were not medically necessary. Troisi joined AHVNA in fall 2009, and by Jan. 1, 2010, she had joined the conspiracy.
The Medicare program pays for home health services only under specified conditions, including that a physician has certified that the patient is homebound and needs certain skilled services, such as nursing or physical therapy. Troisi and Galatis trained AHVNA nurses to recruit Medicare beneficiaries who lived in senior housing developments or group homes for the disabled. They held “wellness clinics” at these developments, where nurses convinced senior citizens to enroll with AHVNA and have a nurse visit them in their home. Troisi and Galatis trained AHVNA nurses to manipulate the patients’ Medicare assessment forms to make it appear as though the patients qualified for Medicare home health services, when that was often not the case. The home health orders were signed by AHVNA’s paid medical director, Dr. Spencer Wilking. Dr. Wilking falsely certified to Medicare that these individuals were homebound and needed skilled services, when he never treated or even met the vast majority of AHVNA’s approximately 1,400 patients. In fact, the overwhelming majority of AHVNA’s patients were not homebound and did not need home health services, but many worked, took out-of-state vacations, and lived independent lives.
Many of the patients’ primary care physicians were unaware that AHVNA was sending nurses to see their patients in their homes. A number of primary care physicians who learned of AHVNA’s services complained to Troisi and Galatis and asked them to stop seeing their patients, but Troisi and Galatis ignored these requests. Similarly, AHVNA’s nurses frequently asked Troisi and Galatis if they could stop seeing the patients, because they did not need home health services, but Troisi and Galatis refused these requests as well in order to ensure a steady billing stream.
In 2011, Medicare passed a new regulation requiring that the physician certify that she or he had a face-to-face encounter with the patient about the need for home health care. Even after this regulation was enacted, Troisi continued to prepare certifications and orders for home health care for a doctor to sign despite knowing that the doctor had not examined any of the patients. This allowed Galatis to bill Medicare for millions of dollars of home health care despite the new regulation.
Galatis was convicted of conspiracy to commit health care fraud, ten counts of health care fraud, and seven counts of money laundering, and sentenced in February 2015 to 92 months in prison.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or the greater of twice the gross gain or loss resulting from the offense, and restitution to the Medicare program. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Philip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistance was also provided by the New England Benefit Integrity Support Center, a fraud contractor for the Medicare program. The case was prosecuted by Assistant U.S. Attorneys Lisa A. Schlatz and David S. Schumacher of Ortiz’s Health Care Fraud Unit.
Child Pornography Producer Receives Lengthy Prison SentenceRead the Press Release
ATLANTA - Jeff Clouse has been sentenced to 20 years in prison for producing and distributing child pornography via the Internet. Clouse possessed and actively traded child pornography on the Internet.
“Clouse created a series of vile videos depicting a mother sexually abusing her own young children,” said Acting U.S. Attorney John Horn. “He further exploited these children by trading the videos for more child pornography. This is simply one of those cases that defies any explanation, and it is difficult to quantify the pain and suffering his conduct caused. But it reinforces our commitment to bring justice those who victimize children by producing child pornography.”
“This case exemplifies the international nature of the modern child pornography trade,” said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations (HSI) in Atlanta. “The defendant sexually exploited a mother and her young daughters in the Philippines via a webcam. He then traded recordings of that abuse with others for additional child pornography on a Russian file sharing site. As we learn more and more in these investigations, the fight against child pornography is clearly global in nature, and HSI is well positioned to follow the threads of these international networks and hold child predators accountable for their crimes against the innocent.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In January 2012, agents with the Department of Homeland Security in Phoenix, Arizona, initiated an investigation into an individual using a Russian file sharing website to trade child pornography. During a forensic review of the individual’s computer, Phoenix agents found that their target was exchanging child pornography with an email address in Atlanta, Georgia. A subsequent investigation revealed that this email address was associated with Jeff Clouse in Conyers, Georgia.
On February 15, 2013, agents went to Clouse’s home and explained that child pornography had been sent to an email address associated with him. Clouse admitted that he possessed thousands of images of child pornography and actively traded child pornography on the Internet. Clouse then directed the agents to the areas on his computer where he kept the images.
As agents reviewed Clouse’s email accounts, they found hundreds of images and videos containing child pornography, including videos that appeared to have been made with a web camera and “streamed” over the Internet. In the videos, a woman performed sexual acts on her minor daughters while Clouse directed her on a live video link. From chat logs found on Clouse’s computer, it appears that this woman lived in the Philippines and that the small children were her daughters.
After these videos were identified, Clouse agreed to speak with agents about the items found on his computer. In that interview, Clouse admitted he met the woman in the videos online in a chat room and that she created the child pornography at his direction using a web camera on her computer. The videos were made in the Philippines and transmitted over the Internet to Clouse in the United States, who then saved them on his computer so that he could view and trade the images at a later time. Clouse said that the two girls who were sexually abused in the videos were the woman’s minor daughters who were 6 and 8 years old.
A forensic review of his computer showed that Clouse subsequently distributed these videos to other individuals who were seeking child pornography. For Clouse, the videos became a kind of currency by which he could obtain more child pornography from other pedophiles. The forensic review also revealed that Clouse had been grooming at least one other minor during this same time.
On Tuesday, August 4, 2015, the Court sentenced Jeff Clouse, 47, of Conyers, Georgia, to 20 years in prison to be followed by 50 years of supervised release, and ordered him to pay restitution in the amount of $16,000. Clouse was convicted on these charges on June 12, 2014, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Kurt R. Erskine prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Child Exploitation, Human Trafficking, Drug Abuse and Working with Crime VictimsRead the Press Release
DUBUQUE, IOWA – Seven United States Attorneys’ Offices joined together in a multi-state conference with the Iowa Organization for Victim Assistance to host a three day conference in Dubuque beginning today. Over 100 victim service professionals and law enforcement officers are participating in the summit, which focuses on “excellence in victim services.”
The Iowa Organization for Victim Assistance (IOVA) was established in 1983 for the purpose of educating Iowans regarding victim rights issues. It is comprised of survivors of crime, witnesses, victim advocates, concerned citizens and related agencies and organizations.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, made opening remarks at the conference. He noted that, “The conference brings in the best and the brightest national speakers who provide cutting edge information and research relating to the best practices for responding to victims of crime.”
During the conference, IOVA kicked-off its new awareness campaign, “Don’t be a bystander, blow the whistle on Crime!” IOVA President Karl Schilling said, “The idea behind this campaign was to encourage people to help one another yet still be safe. Whistles are a great way to protect one’s self and to draw attention to get help.”
The inspiring stories of two victim surveyors highlight the conference during the opening and closing programs.
Keynote speaker Kevin Mulcahy recounted how he survived childhood sexual abuse at the hands of his youth soccer coach. Now, an Assistant United States Attorney working in the Eastern District of Michigan, he prosecutes childexploitation cases. Mulcahy’s personal experience provided a straightforward, firsthand account of the importance and value of the services provided to victims.
The conference will close with another inspiring life story of resilience and redemption. As a child, Derek Clark will detail how he suffered unthinkable child abuse, abandonment, and emotional distress. He was labeled and misdiagnosed as mentally handicapped. Clark will tell how he defied the artificial limitations imposed on him to become a successful businessman and motivational speaker.
Over the two and one half day conference, attendees receive training and information on a variety of continuing and emerging victim issues to equip them to better serve crime victims. Among the scheduled sessions are workshops on assisting drug endangered children; domestic violence; prescription drug abuse; violence against children; human trafficking; working with people in crisis; victim-offender dialogue; and victim compensation.
Those interested in learning more about the Iowa Organization for Victim Assistance can access more information at http://www.iowaiova.com/.
The media was invited to attend the presentation made by the two survivors.
Follow us on Twitter @USAO_NDIA.
Cecil County Man Indicted for the Attempted Sexual Exploitation of a Minor and for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury indicted James J. Stanley, age 28, of Rising Sun, Maryland, today for the attempted sexual exploitation of a minor and for distribution of child pornography.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief F.D. “Chip” Peterson, Jr. of the Rising Sun Police Department; and Cecil County State’s Attorney Ellis Rollins.
According to the two-count indictment, Stanley used a website that hosts anonymous, randomized, one-to-one video and text chat. The website allows users to seek chat partners without creating an account or providing any identifying information, and markets itself as an opportunity for users to “Talk to strangers!” The website allows users to engage in text-based chat sessions with or without accompanying video from the user’s webcam.
The indictment alleges that on October 20, 2014, while Stanley was participating in a video chat session on the website he used his webcam to display an image documenting the sexual abuse of a prepubescent girl.
The indictment also alleges that Stanley placed a digital recording device in a shower that he knew would be used by a minor female (Girl1), with the intent to create video recordings of Girl 1 engaged in sexually explicit conduct. Between November 14, 2014 and January 14, 2015, Stanley allegedly saved a video file to his computer that depicted Girl 1 taking a shower. Girl 1’s genital area is not visible in the video.
Stanley faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for the attempted sexual exploitation of a child; and a minimum mandatory sentence of five years and a maximum of 20 years in prison for distribution of child pornography, each followed by up to lifetime of supervised release. An initial appearance has not yet been scheduled for Stanley, who is currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, the Maryland State Police, Rising Sun Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
Businessman Sentenced to Five Years in Federal Prison for Conspiracy to Misbrand a Product for Human Consumption, Money LaunderingRead the Press Release
Labeling Failed to Disclose That “Potion 9” Contained an Ingredient Known to Metabolize into What is Commonly Referred to as a “Club Drug” or “Date Rape Drug.”
Tayfun Karauzum, 45, of Newport Beach, California, has been sentenced in U.S. District Court in Providence, Rhode Island, to five years in federal prison for manufacturing, marketing and distributing for human consumption Potion 9, a product containing butanediol, an industrial solvent that rapidly metabolizes into gammahydroxybutyric acid (GHB) – commonly referred to as a “club drug” or “date rape drug.”
Karauzum was the owner of Max American Distribution LLC in Newport Beach through which he marketed and distributed between $1 million and $2.5 million worth of Potion 9 through online sales and dietary supplement companies.
An investigation by the U.S. Attorney’s Office for the District of Rhode Island and the Rhode Island U.S. Food and Drug Administration (FDA) Task Force, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation, determined that Karauzum provided to a lab the ingredients for the manufacture of his Potion 9, including unlabeled containers of butanediol, which Karauzum claimed to be a proprietary ingredient. Karauzum also provided labels for the packaging of Potion 9, which did not list butanediol as an ingredient.
Karauzum marketed Potion 9 as a “mood enhancer” that “may improve stamina and energy, promote a feeling of well-being, produce euphoria, [and] increase intensity of orgasms.”
The investigation revealed that Karauzum caused to have manufactured and made available for distribution nearly 13.5 million milliliters of the misbranded product Potion 9. The investigation also determined that Karauzum routinely transferred proceeds from the sale of Potion 9 sales in increments in excess of $10,000 from his business’ PayPal account into a personal bank account.
Karauzum’s sentencing is announced by U.S. Attorney Peter F. Neronha of the District of Rhode Island and Acting Special Agent in Charge Jeff Ebersole of the Office of FDA Criminal Investigations’ New York Field Office.
“The misbranding of drugs is an ongoing and increasing threat to public safety in general,” said U.S. Attorney Neronha. “Here, the defendant’s criminal conduct was particularly egregious. He misbranded not just any drug, but an incredibly dangerous one, one used to victimize unsuspecting innocent people, on an enormous scale. The lengthy prison sentence he has received is well-deserved.”
“The defendant’s actions exposed unsuspecting consumers to potentially serious danger,” said Acting Special Agent in Charge Ebersole. “This investigation demonstrates the Office of Criminal Investigations’ commitment to vigorously pursue criminal violations that threaten the public health. We thank our partners from the U.S. Attorney’s Office in the District of Rhode Island, the U.S. Postal Inspection Service and the Criminal Investigation Division of the Internal Revenue Service for their efforts in this case.”
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karauzum to serve three years supervised release upon completion of his prison term. Karauzum pleaded guilty on Jan. 30, 2015 to one count of conspiracy to misbrand a product for human consumption and one count of money laundering.
The case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
Businessman Sentenced to 5 Years in Prison for Conspiracy to Misbrand a Product for Human Consumption, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Tayfun Karauzum, 45, of Newport Beach, Calif. has been sentenced in U.S. District Court in Providence, R.I., to 60 months in federal prison for manufacturing, marketing and distributing for human consumption Potion 9, a product containing butanediol, an industrial solvent that rapidly metabolizes into gammahydroxybutyric acid (GHB) – commonly referred to as a “club drug” or “date rape drug.”
Karauzum was the owner of Max American Distribution LLC in Newport Beach, Calif., through which he marketed and distributed between $1 million and $2.5 million dollars worth of Potion 9 through online sales and dietary supplement companies.
An investigation by the United States Attorney’s Office for the District of Rhode Island and the Rhode Island U.S. Food and Drug Administration Task Force, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation, determined that Karauzum provided to a lab the ingredients for the manufacture of his Potion 9, including unlabeled containers of butanediol which Karauzum claimed to be a proprietary ingredient. Karauzum also provided labels for the packaging of Potion 9, which did not list butanediol as an ingredient.
Karauzum marketed Potion 9 as a “mood enhancer” that “may improve stamina and energy, promote a feeling of well-being, produce euphoria, [and] increase intensity of orgasms.”
The investigation revealed that Karauzum caused to have manufactured and made available for distribution nearly 13.5 million milliliters of the misbranded product Potion 9. The investigation also determined that Karauzum routinely transferred proceeds from the sale of Potion 9 sales in increments in excess of $10,000 from his business’ PayPal account into a personal bank account.
Karauzum’s sentencing is announced by United States Attorney Peter F. Neronha and Jeff Ebersole, Acting Special Agent in Charge of the Office of FDA Criminal Investigations’ New York Field Office.
United States Attorney Peter F. Neronha said, “The misbranding of drugs is an ongoing and increasing threat to public safety in general. Here, the defendant’s criminal conduct was particularly egregious. He misbranded not just any drug, but an incredibly dangerous one, one used to victimize unsuspecting innocent people, on an enormous scale. The lengthy prison sentence he has received is well-deserved.”
“The defendant’s actions exposed unsuspecting consumers to potentially serious danger. This investigation demonstrates the Office of Criminal Investigations’ commitment to vigorously pursue criminal violations that threaten the public health,” said Jeff Ebersole, Acting Special Agent in Charge of FDA’s Office of Criminal Investigations’ New York Field Office. “We thank our partners from the United States Attorney’s Office in the District of Rhode Island, the U.S. Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service for their efforts in this case.”
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karauzum to serve three years supervised release upon completion of his prison term. Karauzum pleaded guilty on January 30, 2015 to one count of conspiracy to misbrand a product for human consumption and one count of money laundering.
The case was prosecuted by Assistant United States Attorneys Sandra R. Hebert and Richard B. Myrus.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Aaron T. Holmes, 44, of Buffalo, NY, who was convicted of possession and distribution crack cocaine, was sentenced to 84 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S Attorney Thomas S. Duszkiewicz, who handled the case, stated that Holmes sold crack cocaine to an individual working for the Federal Bureau of Investigation on eight separate dates in 2013. During those purchases, the FBI observed the defendant engaging in drug transactions with 16 other individuals during surveillance of the undercover purchases. During this same time period, Holmes was arrested three times by Buffalo Police. Each arrest followed the execution of a search warrant at the defendant’s residence. On December 3, 2013, the FBI executed a search warrant and recovered quantities of crack cocaine, drug paraphernalia, $2,184 in United States currency and a sophisticated surveillance system.
The plea is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Bremerton, Washington, Man Charged with Anti-Gay Hate Crime for Assault on Seattle's Capitol HillRead the Press Release
Defendant Screamed Homophobic Slurs while Chasing Gay Men with a Knife
A 38-year-old Bremerton, Washington, man was charged today with 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 Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington. Troy Deacon Burns was transferred from state custody today for his initial appearance on the federal charge in U.S. District Court in Seattle at 2:00 p.m. PDT.
According to the criminal complaint, just after midnight on Jan. 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.
The charges contained in the complaint 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.
Commission of a hate crime is punishable by up to ten years in prison and a $250,000 fine.
The case was investigated by the Seattle Police Department and is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant U. S. Attorney Bruce Miyake of the Western District of Washington. The King County Prosecuting Attorney’s Office is providing significant assistance with the case.
Bremerton, Washington Man Charged with Anti-Gay Hate Crime for Assault on Seattle’s Capitol HillRead the Press Release
A 38-year-old Bremerton, Washington man was charged today with 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, was transferred from state custody today for his initial appearance on the federal charge in U.S. District Court in Seattle at 2:00 p.m.
“When he signed the Shephard/Byrd Hate crimes prevention act into law, President Obama said ‘no one in America should ever be afraid to walk down the street holding the hands of the person they love.’ It is just that sort of fear this defendant engendered with his attack,” said U.S. Attorney Annette L. Hayes. “This federal prosecution demonstrates our commitment to protecting all the residents in our district from bias motivated attacks.”
According to the criminal complaint, 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.
The charges contained in the complaint 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.
Commission of a hate crime is punishable by up to ten years in prison and a $250,000 fine.
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.
Birmingham Woman Charged with Tax Evasion and Preparing Fraudulent Tax ReturnsRead the Press Release
Federal prosecutors have charged a Birmingham woman with tax evasion and aiding in the preparation of fraudulent tax returns announced U.S. Attorney Joyce White Vance and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
The U. S. Attorney’s Office charged EUNICE F. PLUMMER, 35, with three counts of tax evasion and eight counts of aiding in the preparation of fraudulent tax returns. The government also filed a plea agreement with Plummer in which she agrees to plead guilty to the charges and to pay restitution of $104,098 to the IRS for taxes not paid on income earned in 2011 through 2013, plus an additional $67,206 to the IRS for aiding in the preparation of fraudulent tax returns.
Plummer is the owner of M&P Tax Services located in Birmingham, AL. The information charges Plummer evaded income taxes for 2011, 2012, and 2013 by preparing and submitting personal tax returns in which she failed to report all the taxable income she earned from her business. According to the plea agreement, Plummer attempted to evade taxes by depositing the income received from M&P Tax Services into a bank account held in a relative’s name. Plummer’s understatement of taxable income resulted in additional taxes of $104,098 owed to the IRS.
The information also charges Plummer prepared false returns for the clients of M&P Tax Services and requested significant refunds from IRS. Plummer added false deductions and expenses to her clients’ tax returns which resulted in a$67,206 tax loss to the government
The case was investigated by the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant United States Attorney Amanda Wick.
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Berkeley County man convicted of lying to purchase firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kody William Brown, 21, of Inwood, West Virginia, was convicted of making false representations while attempting to purchase a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In February 2015, Brown attempted to purchase a .357 caliber revolver from a licensed firearms dealer in Morgan County, West Virginia. He misled the firearms dealer by indicating that he was purchasing the firearm for himself. In fact, he was purchasing the firearm for another individual who was prohibited from lawfully purchasing the gun.
Brown pled guilty to a criminal Information charging him with one count of “False Statement During Purchas of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Attorney General Loretta E. Lynch Statement on Court of Appeals Ruling in Texas Voter ID CaseRead the Press Release
Attorney General Loretta E. Lynch released a statement today after the 5th Circuit Court of Appeals upheld the ruling that Texas’s voter ID law violates Section 2 of the Voting Rights Act:
“We are pleased that the court of appeals agreed unanimously with the district court that the Texas statute violates Section 2 of the Voting Rights Act and we are studying the opinion in light of the future proceedings the court of appeals has ordered.”
A-CHANCE School Initiative Announced in Six Arkansas CountiesRead the Press Release
Fayetteville, Arkansas - United States Attorney Conner Eldridge announced the A-Chance Initiative that will be implemented in 13 schools throughout six counties in the Western District of Arkansas in the upcoming school year. Beginning when school starts on August 17, the A-Chance Program will ensure that when children are present at a violent, criminal, or traumatic event, police will notify their school by the next morning. The school will then be better able to interact with and educate the child. This program will be implemented in Washington, Sebastian, Crawford, Union, Clark, and Ouachita Counties.
Eldridge was joined at the announcement by Sebastian County Sheriff Bill Hollenbeck, Washington County Sheriff Tim Helder, Crawford County Sheriff Ron Brown, Alma Chief of Police Russell White, Fayetteville Chief of Police Greg Tabor, Farmington Chief of Police Brian Hubbard, Lincoln Chief of Police Russell Morphis, Springdale Interim Chief of Police Mike Peters, West Fork Chief of Police Bryan Watts, and Johnson Chief of Police Vernon Sizemore. Also present were the following representatives: Sergeant Frank Petra, Van Buren Police Department; Sergeant Dawn Sprayberry, Fort Smith Police Department; Farmington Freshman Academy Principal Bob Echols; Greenland Principal Alan Barton; Lincoln Assistant Principal Stan Karber; Farmington Resource Officer Chad Parrish and Fayetteville School Associate Superintendent Dr. Kim Garrett.
U.S. Attorney Eldridge commented, “Children throughout Arkansas are exposed to horrible, unconscionable situations and we must do something about it. The A-Chance program brings together those on the front lines of many of these situations: law enforcement and schools. By improving communication between these vital community leaders, kids throughout Arkansas will be more likely to receive the help and support they need in order to succeed in school and in life.”
“A-Chance” stands for Arkansas Cultivating Healthy Attitudes and Nurturing Children to Excel, and is part of a larger initiative of the Department of Justice to address children exposed to violence and trauma. The A-Chance Program directly addresses the goal of mitigating negative impacts on children exposed to violence and trauma by identifying children that have come into contact with law enforcement and ensuring that school personnel are aware of that fact. The program is simple and requires no funding, but the commitment of these law enforcement agencies and school administrators is essential in making it a success. Any time a police officer responds to the scene of a “traumatic event” and a child is present, the officer will fill out a simple form with the child’s name and the school they attend. The police will forward a the information to the school’s district office who will then forward a “Handle With Care Notice” to the appropriate school principal by the beginning of the next school day. The child’s teacher and counselor will also be notified.
The “Handle With Care Notice” contains only the child’s name, school, and that police encountered the child at a traumatic event. Potential measures schools could take when receiving the notice may include but are not limited to notifying the child’s teacher(s) that the child may need special attention; re-teaching important lessons and/or postponing testing; permitting the child time to rest if he/she has trouble focusing or staying awake; or referring the child to the school counselor if he/she exhibits behavioral or emotional problems in the classroom.
Law enforcement agencies and school districts that will participate in the A-Chance Program are as follows:
Clark County:
Clark County Sheriff’s Office
Amity Police Department
Arkadelphia Police Department
Arkadelphia Public Schools
Centerpoint Public Schools
Gurdon Police Department
Gurdon Public Schools
Crawford County:
Crawford County Sheriff’s Office
Alma Police Department
Alma Public Schools
Van Buren Police Department
Van Buren Public Schools
Ouachita County:
Ouachita County Sheriff’s Office
Camden Police Department
Camden Public Schools
Sebastian County:
Sebastian County Sheriff’s Office
Fort Smith Police Department
Fort Smith Public Schools
Union County:
Union County Sheriff’s Office
El Dorado Police Department
El Dorado Public Schools
Washington County:
Washington County Sheriff’s Office
Fayetteville Police Department
Fayetteville Public Schools
Springdale Police Department
Springdale Public Schools
Greenland Police Department
Greenland Public Schools
Lincoln Police Department
Lincoln Public Schools
Greenland Police Department
Greenland Public Schools
Farmington Police Department
Farmington Public Schools
West Fork Police Department
West Fork Public Schools
Johnson Police Department
This program is available to any school and law enforcement agency in the Western District of Arkansas. We are asking that interested parties please contact us to get started in the program.
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Tuesday 4 August 2015
West Burlington Man Pleads Guilty to Tax Related ChargesRead the Press Release
DAVENPORT, IA – On August 3, 2015, William W. Peugh (Peugh), 62, of West Burlington, Iowa, entered guilty pleas to three counts of failure to file tax returns before United States Magistrate Judge Stephen B. Jackson, Jr., announced U.S. Attorney Nicholas A. Klinefeldt. On each count Peugh faces a maximum sentence of one year in prison, a maximum fine of $25,000, and a term of supervised release of not more than one year following any period of incarceration. A mandatory special assessment of $25 per count must be imposed by the sentencing court.
The charges arose due to Peugh’s failure to file income tax returns for calendar years 2008, 2009, and 2010. Peugh, who owned and operated WWPeugh Sales, received income through the sale of machinery for other companies. Peugh’s income is from commissions paid by these companies. In calendar year/tax year 2008, Peugh received approximately $400,000 in commissions resulting in a tax due and owing to the Internal Revenue Service. The due date for the 2008 Form 1040 was April 15, 2009. Peugh filed for an extension to October 15, 2009 but did not file a return. In calendar year/tax year 2009, Peugh received approximately $400,000 in commissions resulting in a tax due and owing to the Internal Revenue Service. No return was filed. In calendar year/tax year 2010, Peugh received approximately $360,000 resulting in a tax due and owing to the Internal Revenue Service. Again no return was filed.
Magistrate Judge Jackson accepted Peugh’s guilty pleas, and the Court has scheduled the sentencing hearing for December 16, 2015.
The case was investigated by the Internal Revenue Service - Criminal Investigation, and the case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Virginia Beach Man Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
NORFOLK, Va. – Jonathon Giddens, 24, of Virginia Beach, Virginia, was sentenced yesterday to 360 months in prison, followed by lifetime of supervised release for production of child pornography. The court directed that this sentence was to run consecutively to the sentence imposed on Giddens in a related case in the City of Virginia Beach.
Giddens pleaded guilty on April 20, 2015. According to court documents, Giddens produced child pornography by tricking adolescent boys into masturbating on camera. Giddens developed numerous female alter egos, to whom he gave life by creating email addresses and accounts on dozens of social media sites. While posing as one of these girls, Giddens would then strike up online relationships with teenaged boys – both by email and chat services – and send them photographs or videos of a teenage girl exposing herself or masturbating. In exchange for these images, Giddens would convince these boys to take pictures or videos of themselves masturbating and email them to Giddens. Additionally, posing as one of his female aliases, he requested that the minors perform those acts on webcam which Giddens would then record. Giddens did not produce this pornography for its own end, but rather to use to trade with other pedophiles. In this way, Giddens amassed a collection of 6,000 images and 1,500 videos of child pornography, including a significant number of depictions of infants and toddlers being sexually abused, as well as sadomasochistic conduct, and bestiality. He also communicated with other persons about his method of successfully tricking these boys, and encouraged them to do the same.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Washington, D.C., made the announcement after sentencing by U.S. District Judge Mark S. Davis.
This case was investigated by HSI. Assistant U.S. Attorneys V. Kathleen Dougherty and Joseph L. Kosky prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-117.
Utica/Rome Area Residents Arrested in Heroin CaseRead the Press Release
SYRACUSE, NEW YORK – 21 defendants from the Utica and Rome area were arrested this morning on federal heroin charges, announced United States Attorney Richard S. Hartunian, James J. Hunt, Special Agent in Charge, United States Drug Enforcement Administration (DEA) for the region and New York State Police Superintendent Joseph A. D'Amico. Two indictments charge a total of 21 defendants for their involvement in the distribution of significant quantities of heroin. One indictment charges Edmaldo Figuero-Martinez, a/k/a Po, and 13 others with participating in a conspiracy to distribute over a kilogram of heroin in Oneida County, and 3 people with maintaining premises in Rome and Utica for heroin distribution. The other indictment charges Ernesto Alequin, a/k/a Cano, and 6 others with participating in a conspiracy to distribute over a kilogram of heroin and another man with maintaining premises in Rome for heroin distribution. Four defendants – Jamel Febus, a/k/a Shrimp, Jeremy Delmoral, Darius Wright, and Yousif Aluhujazi, a/k/a Jacob – are charged with having participated in both heroin conspiracies.
This morning, all 21 defendants were arrested and 11 federal search warrants were executed. The arrests follow a three month multi-agency investigation that included court authorized electronic eavesdropping warrants (wiretaps) obtained through federal court.
United States Attorney Richard S. Hartunian said: "The heroin epidemic has hit central New York, and we are hitting back. This case illustrates our commitment to bringing together a broad array of local, state, and federal agencies to preserve public safety and protect public health with swift and strong action. The arrests today disrupt the supply of kilograms of heroin so they do not destroy lives and devastate families."
"Today, the number of Americans who abuse heroin is at epic proportions. The defendants arrested today sought to capitalize on this deadly epidemic by turning heroin addicts into heroin dealers, doubling their customer base in the Utica and Rome areas. Law enforcement focused investigative efforts on this heroin distribution crew, resulting in 21 arrests, effectively dismantling this organization responsible for fueling heroin addiction," said DEA Special Agent in Charge James J. Hunt.
"I commend our federal and local law enforcement partners for their work in putting these drug dealers out of business -- these arrests would not be possible without their continued collaboration. Our message is simple: If you bring heroin or any other illegal drug into our communities, we will find you and put you behind bars. Heroin is a dangerous and often times deadly drug, and we will use every resource available to shut down these operations," said New York State Police Superintendent Joseph A. D'Amico.
A chart of the defendants, their charges, and maximum potential sentences is attached.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), New York State Police-Community Narcotics Enforcement Team-Central (NYSP-CNET), City of Rome Police Department, City of Utica Police Department, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, U.S. Marshals Service, U.S. Border Patrol, U.S. Department of Homeland Security Investigations, Onondaga County Sheriff’s Office, and Onondaga County District Attorney’s Office. The case is being prosecuted by Assistant U.S. United States Attorney Carla Freedman.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
US Attorney’s Office Taking Part in National Night OutRead the Press Release
CEDAR RAPIDS, IOWA – Tuesday, August 4th United States Attorney Kevin Techau and office staff will join law enforcement and community leaders as part of the annual National Night Out crime and drug prevention campaign.
National Night Out is designed to heighten crime and drug prevention awareness, generate support for and participation in local anti-crime efforts, strengthen neighborhood spirit and police-community partnerships, and send a message to criminals letting them know neighborhoods are organized and fighting back. National Night Out organizers are expecting over 16,000 communities and 37 million people nationwide to take part in community events on Tuesday.
“National Night Out is a perfect opportunity for neighbors to join with their law enforcement and community partners to demonstrate that crime does not rule the night and that criminals have no safe haven when the sun goes down. I look forward to joining my colleagues on Tuesday to help continue to spread the important message that we are all in this together,” said U.S. Attorney Techau.
Assistant United States Attorneys will be joining community leaders and law enforcement across the Northern District of Iowa in Sioux City, Cedar Rapids, and Marion.
To learn more about National Night Out go to: https://natw.org/registration.
Follow us on Twitter @USAO_NDIA.
U.S. Files Intervention in Support of Tulalip Tribes Lawsuit Against State of Washington over Right to Collect Taxes from Non-Indian Businesses on Tribal LandsRead the Press Release
The United States today filed a motion to intervene and a complaint in intervention on its own behalf and as trustee for the Tulalip Tribes in their lawsuit against the state of Washington and Snohomish County over the imposition of taxes on non-Indian businesses operating on lands held in trust for Tulalip on the Tulalip Reservation. The intervention seeks to protect the authority of tribes under the U.S. Constitution and federal law to develop reservation resources and fund governmental services without unlawful interference from state and local taxation.
The Tulalip Tribes occupy a 22,000-acre reservation in Snohomish County, 35 miles north of Seattle. For economic-development purposes, Tulalip chartered its own municipal corporation, the Consolidated Borough of Quil Ceda Village, on trust land within the Reservation adjacent to Interstate 5.
“The United States takes seriously the federal role in protecting tribal self-government, which has its foundation in federal statutes, treaties, and regulations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “To this end, we are committed to eliminating barriers, such as these, which hinder tribes from developing healthy economies and providing necessary governmental services on the reservation.”
With tens of millions of dollars in financial support and planning assistance from the federal government, Tulalip designed and built the infrastructure necessary to support a major retail, tourism and commercial center at Quil Ceda Village, including a tribal casino, resort and shopping center. The Tribe and federal government manage, maintain and provide all significant governmental services to the tenants and visitors at Quil Ceda, including police and fire protection, emergency medical and 911 services, among many others.
According to the complaint in intervention filed today in Seattle, the state of Washington and Snohomish County did not contribute in any significant respect to the development of Quil Ceda Village. Moreover, they provide no significant governmental services at the Village and they play no role in the Village’s ongoing operations. The state and county, however, impose over $40 million in annual property, business and occupation and sales taxes on the on-reservation activities at Quil Ceda. Even though Tulalip has its own applicable tribal tax laws, state and county taxation in effect precludes Tulalip from imposing its own taxes and deprives it of the tax base needed to fund important governmental services.
The United States has substantial interests in this action by virtue of the Indian Commerce Clause of the U.S. Constitution as well as federal statutes and regulations designed to foster tribal self-determination and economic independence. The United States also has substantial interests in the interpretation of its statutes and regulations and in the principles governing state and local taxation and regulation of activities on Indian reservations.
On June 12, 2015, the Tribe and Village filed suit against the Director of the Washington State Department of Revenue, as well as against Snohomish County and County officials, seeking declaratory and injunctive relief against the administration and enforcement of state and County sales and use, B&O and property taxes in connection with the economic activities at Quil Ceda Village. The legal claims in this case, however, squarely implicate federal interests.
Two Men Charged with Illegal Gambling BusinessRead the Press Release
BOSTON – Two men, one from Middleborough and the other from Winthrop, were charged today in the U.S. District Court in Boston with conducting an illegal gambling business.
John Evans, 68, of Middleborough, and Joseph Petrucelli, 24, of Winthrop, were charged in connection with a five-year gambling operation being conducted, in part, from a condominium on Seal Harbor Road in Winthrop, Mass. According to the indictment, the gambling business started by at least 2009 and operated through 2014. The indictment alleges that at least five people were involved in conducting the business. Only Evans and Petrucelli have been charged.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Jr., Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford, Middleborough, Quincy, and Whitman Police Departments. The case is being prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Canadians Sentenced for Distributing Counterfeit and Adulterated Botox to Local DoctorsRead the Press Release
St. Louis, MO – KAMALDEEP SANDHU and NAVDEEP SANDHU, both residents of Vancouver, British Columbia, Canada, pled guilty today and were sentenced for distributing counterfeit, misbranded and adulterated Botox® into the United States, including multiple shipments to two doctors located in St. Louis County, Missouri. Both defendants entered their plea before United States District Judge Carol E. Jackson, in St. Louis, MO. Kamaldeep Sandhu received a sentence of 24 months of imprisonment, while Navdeep Sandhu received a sentence of 3 months.
According to defendants’ plea agreements, defendants operated a sophisticated wholesale drug distribution business involving multiple persons in Canada, Panama and Turkey. Defendants sourced Botox® from Turkey and shipped it to multiple U.S. doctors in Missouri and other states. According to the label for FDA approved Botox® Cosmetic, unopened vials of Botox® Cosmetic should be stored in a refrigerator at temperatures between 2° to 8° Celsius before dispensing to patients. Defendants’ drugs were adulterated because defendants’ business did not keep the Botox® Cosmetic at constant cold temperatures, and sometimes shipped and stored these drugs with no refrigeration or insulation. Further, some of the Botox® Cosmetic sold by defendants had counterfeit exterior packaging, and the manufacturing lot numbers on the exterior of the drugs’ cartons did not match the lot numbers on the drug vials inside the cartons.
FDA issued several public safety alerts about these events. This ongoing investigation has led to a number of related prosecutions in the District, including Dr. Erick Falconer, Greg Martin, Ozkan Semizoglu and Sabahaddin Akman.
"Today's sentencing demonstrates that we will continue to pursue and bring to justice those who violate the law and jeopardize public safety by shipping adulterated and misbranded drugs into the United States," said Catherine Hermsen, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City. "I would like to thank our law enforcement partners in INTERPOL Washington, the U.S. Marshals Service and the Royal Canadian Mounted Police for their assistance in this case."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from a number of other domestic and foreign law enforcement organizations.
Three Orange County Residents Charged with $2.5 Million Fraud Involving Fraudlent Loans to Banks and Credit Unions Throughout the NortheastRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), and Thomas E. Bishop, Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service’s Criminal Investigation Division (“IRS-CI”) announced the arrests today of BINDER TAL, BALDEV TAL, and SHARIFUL MINTU on bank fraud and money laundering charges. BALDEV TAL was arrested this morning in Orefield, Pennsylvania and appeared in Philadelphia federal court this afternoon. MINTU was arrested this morning in Orange County, New York, and appeared in White Plains federal court this morning, before U.S. Magistrate Judge Paul E. Davison. BINDER TAL remains at large. Each defendant is charged with one count of conspiring to commit bank fraud and one count of conspiring to commit money laundering.
Manhattan U.S. Attorney Bharara said: “For years, banks, credit unions, and small businesses have lost millions of dollars because of the fraud allegedly perpetrated by the defendants in this case. I would like to thank our partner agencies for their assistance on this case.”
Inspector in Charge Philip R. Bartlett said: “Through disguise and deceit, these defendants created an elaborate scheme to defraud financial institutions. The use of the U.S. Mail to facilitate any fraud scheme will never be tolerated by members of America's oldest law enforcement agency"
Acting Special Agent-in-Charge Thomas E. Bishop said: “IRS-CI is always ready to work with our law enforcement partners in the investigation of money laundering schemes and the financial crimes with which they are related. It is important to remember that money laundering is not a victimless crime. While the victims of bank fraud are usually identifiable individuals or institutions, the damage money laundering inflicts on our nation’s economic strength ultimately harms every American taxpayer.”
According to the allegations in the Complaint unsealed this morning in White Plains federal court[1]:
From at least in or about 2007 through in or about July 2015, BINDER TAL, BALDEV TAL, and MINTU fraudulently obtained loans and lines of credit from banks, credit unions, and other lending institutions. The defendants obtained the loans by providing materially false information to the lenders about the borrowers’ assets, including false information about the borrowers’ employment and income. Through their scheme, the defendants and their co-conspirators fraudulently obtained more than $2.5 million in proceeds in connection with dozens of loan applications and applications for lines of credit. The vast majority of the loans and lines of credit went into default, and millions of dollars were not repaid.
As part of their fraud scheme, the defendants used the proceeds to personally enrich themselves and their families. They used their proceeds for, among other things, (i) credit card debts for personal expenses; (ii) debts arising from business expenses; and (iii) debts arising from other fraudulently obtained loans, to conceal the fraudulent nature of these loans.
In addition, the defendants and their co-conspirators also engaged in extensive efforts to perpetuate and conceal the fraudulent scheme. These efforts included members of the conspiracy acting as the borrowers for different loans, falsely claiming that the purpose of the loans was to purchase or finance used luxury automobiles. In fact, many of the automobiles were never purchased or leased by the defendants or their co-conspirators, and the loan proceeds were later distributed to other members of the conspiracy and to entities they controlled.
* * *
BINDER TAL, BALDEV TAL, and MINTU each face a maximum sentence of 30 years in prison on the charge of conspiring to commit bank fraud and a maximum sentence of 20 years in prison on the charge of conspiring to commit money laundering. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation Division, and the New York State Police Special Investigations Unit.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins, Jr. is in charge of the prosecution.
The charge and allegations 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.
Texas Man and Mexican National Plead Guilty in New Mexico to Federal Heroin Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Arturo Martinez, 23, of El Paso, Texas, and Bryan Marinelarena, 20, a Mexican national, each pleaded guilty this morning in federal court in Las Cruces, N.M., to a federal heroin trafficking charge.
Martinez and Marinelarena were arrested on May 23, 2015, during a routine inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Doña Ana County, N.M. According to the criminal complaint, agents found approximately 6.6 kilograms of heroin concealed within the vehicle that Martinez and Marinelarena were driving from El Paso to California.
During today’s proceedings, Martinez and Marinelarena each pled guilty to a felony information charging them with conspiracy to possess heroin with intent to distribute. Each admitted that on May 23, 2015, in Doña Ana County, Border Patrol agents discovered approximately 6.6 kilograms of heroin hidden in the engine of the SUV in which they were traveling. The two men further admitted that they were paid to transport the heroin from El Paso to California.
Under the terms of their respective plea agreements, Martinez and Marinelarena each will be sentenced to 87 months in prison followed by a term of supervised release to be determined by the court. Both remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Ten Defendants Charged in White Plains Federal Court with Heroin Trafficking and Firearms Offenses in Dutchess CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Adrian H. Anderson, the Dutchess County Sheriff, and Ronald J. Knapp, the Chief of Police of City of Poughkeepsie Police Department, today announced the unsealing of an Indictment and two Complaints charging 10 defendants with committing heroin trafficking and firearms offenses in and around Dutchess County, New York. Eight defendants were taken into federal custody today and were presented in White Plains federal court this afternoon before U.S. Magistrate Judge Paul E. Davison. Two defendants were previously taken into federal custody on a Complaint filed on May 14, 2015.
U.S. Attorney Preet Bharara said: “Heroin is a growing problem in New York, making an unfortunate comeback in cities and rural communities alike. Heroin and prescription pill overdoses keep going up, killing more and more people every day. With heroin trafficking and firearms charges like those brought today against ten defendants selling drugs in Dutchess County, we aim to confront this epidemic. We thank the FBI, the Dutchess County Sherriff’s Office and the Poughkeepsie Police Department for their extraordinary efforts on this case.”
Assistant Director-in-Charge Diego Rodriguez said: “Today, we announce the charges against ten individuals who allegedly sought to sell heroin in the City of Poughkeepsie with the aid of firearms. The charges demonstrate the FBI’s continued effort to work closely with our law enforcement partners in eliminating the terror these groups inflict on our communities. Dismantling violent gangs remains a priority for the FBI.”
Sheriff Adrian H. Anderson said: “Today the Dutchess County Sheriff’s Office partnered with Federal and local law enforcement agencies to assist in the arrests of numerous people who have allegedly been dealing heroin and other dangerous drugs throughout Dutchess County and surrounding areas. All of these law enforcement agencies are dedicated to working together to rid our streets of dangerous drugs, and I would like to take this opportunity to thank the U.S. Attorney’s Office, the FBI, and the City of Poughkeepsie Police for their outstanding work in helping to make this investigation such an enormous success. Those who deal in heroin and other dangerous drugs are not going to be allowed to poison our community, and this investigation is the latest example of how Federal and local law enforcement agencies working together can make a huge difference and go a long way towards making our streets and residents safer.”
Chief of Police Ronald J. Knap said: “These arrests culminate a joint investigation into regional narcotics trafficking, specifically heroin. The City of Poughkeepsie was one of the communities that these suspects lived and operated in. We thank the U.S. Attorney’s Office for their work and pending prosecution of this case. We also thank the FBI and Dutchess County Sheriff for their participation in this successful investigation. The City of Poughkeepsie has suffered more than its share of heroin deaths. Arresting and prosecuting those who deal in these dangerous drugs on the Federal level is an important strategy as the effort cannot be deal with solely as a local problem.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From December 2013 through June 2015, MONDU ALLAH, CARITA BENNERMAN, CLIFTON CATTS, EUGENE LAMONT GRAVES, LARRY GRAVES, MAURICE HOLLIS, JULIENNE KOLOZY, and SAMUEL TURNER conspired to sell more than one kilogram of heroin. During the course of the conspiracy, law enforcement officers observed certain defendants participating in the sale of heroin to confidential informants working with law enforcement and to an undercover law enforcement officer. Law enforcement officers, using a court-authorized wiretap, also intercepted numerous communications in which certain of the defendants discussed heroin trafficking and arranged heroin transactions. On May 13, 2015, ALLAH and HOLLIS also carried, and aided and abetted the carrying of, a firearm in furtherance of the narcotics conspiracy charged in the Indictment.
In addition the Indictment, two Complaints were also unsealed today. As alleged in those Complaints:
From December 2013 through January 2014, ROBERT NOVICK conspired to sell heroin, and sold 3, 4 methylenedioxymethamphetamine, commonly referred to as “MDMA,” in Poughkeepsie. On May 9, 2015, VARICK GOSS conspired to sell heroin and crack cocaine in Poughkeepsie.
* * *
ALLAH and HOLLIS, two of the defendants charged in the Indictment, both face a mandatory term of 10 years in prison on Count One and a mandatory term of 5 years in prison on Count Two, consecutive to any sentence on Count One. Each faces a maximum term of life in prison on both counts. The other six defendants charged in the Indictment each face a mandatory term of 10 years in prison on Count One, and a maximum term of life. Each defendant charged in the Complaints faces a maximum term of 20 years in prison. The statutory minimum and maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI Hudson Valley Safe Streets Task Force, the Dutchess County Sheriff’s Office, the City of Poughkeepsie Police Department, and other local law enforcement partners.
These cases are being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Lauren Schorr and Douglas Zolkind are in charge of the prosecutions.
The charges contained in the Indictment and Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-202
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Narcotics conspiracy – Heroin
(conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
MONDU ALLAH,
a/k/a “Mindu Allah,”
a/k/a “Duberry,”
a/k/a “Du,”
CARITA BENNERMAN,
CLIFTON CATTS,
EUGENE LAMONT GRAVES,
LARRY GRAVES,
a/k/a “Knowledge,”
MAURICE HOLLIS,
a/k/a “Mo,”
JULIENNE KOLOZY, and
SAMUEL TURNER
Life in prison
Mandatory minimum: 10 years in prison
Use of a firearm in furtherance of a drug trafficking crime
(in violation of 18 U.S.C. § 924(c))
MONDU ALLAH,
a/k/a “Mindu Allah,”
a/k/a “Duberry,”
a/k/a “Du,” and
MAURICE HOLLIS,
a/k/a “Mo”
Life in prison
Mandatory minimum: 5 years in prison, to be imposed consecutively to any other sentence
Narcotics conspiracy – Heroin
(conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(C))
ROBERT NOVICK
20 years in prison
Distribution and possession with intent to distribute 3, 4 methylenedioxymethamphetamine
(in violation of 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(C))
ROBERT NOVICK
20 years in prison
Narcotics conspiracy – Heroin and crack cocaine
(conspiracy to distribute and possess with intent to distribute heroin, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(C))
VARICK GOSS
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaints, and the description of the Indictment and the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Sullivan County Man Sentenced to 12 Years in Prison for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SAMUEL TERWILLIGER was sentenced to 12 years in prison for his attempted enticement of a minor to engage in sexual activity. TERWILLIGER pled guilty on October 22, 2014 before U.S. District Court Judge Vincent Briccetti, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Samuel Terwilliger has now been sentenced for his predatory crime, attempting to entice a minor to engage in sexual activity. This case – and others like it that we prosecute – underlines the need for law enforcement to be vigilant in its protection of children from those who prey on them. I want to thank the FBI, the Rockland County Computer Crimes Task Force, the Child Protective Services of Sullivan County, and the Sullivan County Sheriff’s Department for their work in this investigation and prosecution. ”
According to the Complaint and other documents filed in this case, and statements made in related court proceedings:
In August 2013, an individual (the “Reporter”) advised the Federal Bureau of Investigation (“FBI”) that the Reporter, posing as a 14-year-old girl, had engaged in online communications with a person using the screen name “tas_128.” During those communications, “tas_128” indicated that “tas_128” wanted to engage in sexual activities with the Reporter. The FBI instructed the Reporter to advise “tas_128” that the Reporter had a young friend who would be interested in communicating with “tas_128” and provided the Reporter with an email address to provide to “tas_128” for an undercover FBI agent (“UC”).
Between August 16, 2013 and September 26, 2013, the UC and “Tas_128,” later identified as SAMUEL TERWILLIGER, engaged in a series of emails and text communications. Among other things, TERWILLIGER told the UC that he was 24 years old and the UC told TERWILLIGER that she was a 13-year-old girl. During these communications, TERWILLIGER acknowledged his understanding that the UC was a minor, solicited graphic sexual images of the minor from the UC, and described in detail a variety of sexual acts he wanted to engage in with the 13-year-old. TERWILLIGER repeatedly requested that the minor join him in a “three-way relationship” with his girlfriend and told the girl that he wanted to impregnate her. TERWILLIGER told the UC, “We have been trying to find a woman for a year now that would join our relationship.”
On April 10, 2014, the FBI executed a search warrant at the defendant’s residence. On that date, the defendant admitted that he had engaged in sexually-explicit conversations with a girl whom he believed to be approximately 13 years old. He also admitted that, at the time he was communicating with her, he planned to bring her to stay with him and his girlfriend because he wanted to have sex with her and impregnate her. In addition, the defendant admitted that, in October 2013, he had engaged in sexual intercourse with a 15-year-old girl while his girlfriend watched.
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TERWILLIGER, 26, of Calicoon, NY, was also sentenced to 5 years’ supervised release to follow the imprisonment.
Mr. Bharara praised the efforts of the FBI, the Rockland County Computer Crimes Task Force, Child Protective Services of Sullivan County, and the Sullivan County Sheriff’s Department in connection with this case.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
St. Francis Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on July 28, 2015, by U.S. District Judge Roberto A. Lange.
Cody James Horse Looking, age 30, was sentenced to 1 month in custody, followed by 18 months of supervised release, which includes 9 months of home confinement, and a special assessment of $100 to the Federal Crime Victims Fund.
Horse Looking was indicted by a federal grand jury on August 19, 2014. He pled guilty on April 27, 2015.
The conviction stems from an incident on February 15, 2014, when Horse Looking, who previously had been convicted of Domestic Violence Simple Assault in 2011, was at a bar in Valentine, Nebraska, and had a disagreement with another man. At some point after the bar closed, Horse Looking stopped at the Rosebud Casino Fuel Plaza convenience store, and the other man was also there. There was more arguing and disagreement in the parking lot, when Horse Looking produced a Glock .40 caliber pistol and fired it into the air. No one was injured or shot at directly. Horse Looking left the area and law enforcement was called.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Horse Looking is to self-report to the custody of the U.S. Marshals Service by September 1, 2015, to commence his sentence.
St. Francis Man Sentenced for First Degree BurglaryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of First Degree Burglary was sentenced on July 27, 2015, by U.S. District Judge Roberto A. Lange.
Nathan Sharpfish, age 28, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Sharpfish was indicted by a federal grand jury on February 11, 2015. He pled guilty on May 5, 2015.
The conviction stems from an incident on or about January 8, 2015, when Nathan Sharpfish, who was drinking at the home of Kirby Sharpfish, was asked to leave the premises. Nathan Sharpfish left, but returned a short while later and began to hit the door of the home with a hatchet. Kirby Sharpfish opened the door, and Nathan Sharpfish swung the hatchet at him, hitting Kirby on the back of his head, causing a laceration.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Sharpfish was immediately turned over to the custody of the U.S. Marshals Service.
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