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17 September 2015
Vickery Creek Park Backpack Bomber Pleads GuiltyRead the Press Release
ATLANTA - Michael C. Sibley, who placed a backpack containing two pipe bombs at Vickery Creek Park in the Chattahoochee River National Recreation Area, has pleaded guilty to a charge of conveying false and misleading information about a crime.
“In addition to breaking the law, threatening an act of terrorism is a serious matter that diverts scarce law enforcement resources away from legitimate threats and unnecessarily causes alarm,” said U.S. Attorney John Horn. “Sibley’s crime is even more troubling because he attempted to exploit stereotypical fears and prejudices.”
“The guilty plea of Mr. Sibley concludes an investigation that triggered a significant law enforcement response, to include that of numerous bomb technicians, to address the backpack that Mr. Sibley had left at a Roswell, Georgia park on November 4, 2014. This also resulted in a significant investigative effort to identify and locate the person later determined to be Mr. Sibley,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office. “The FBI takes these types of call outs seriously and individuals that engage in this type of criminal conduct will be investigated and presented for federal prosecution. The FBI would like to thank the swift response and continued assistance of the Roswell Police Department and the Cobb County Police Department’s Bomb Squad in addressing this matter.”
According to U.S. Attorney Horn, the charges and other information presented in court: On November 4, 2014, visitors at Vickery Creek Park, which is a part of the Chattahoochee River National Recreation Area in Roswell, Georgia, discovered an abandoned backpack and contacted local law enforcement. An inspection of the bag revealed what appeared to be two completely constructed pipe bombs. Nails and screws were taped to the outside of the tubing consistent with construction designed for maximum fragmentation upon explosion. The pipe bombs also appeared to be ready for remote detonation. The devices, however, did not have a power source, which was required to remotely cause the explosion.
The name written on the abandoned backpack appeared to be a Middle Eastern name. The backpack also contained two books: “The Rape of Kuwait” and “The Holy Qur’an.”
On March 20, 2015, Mr. Sibley voluntarily contacted the FBI and asked to meet with the agents. During this meeting, he confessed to making the devices and to placing them in Vickery Creek Park. Mr. Sibley stated that he placed the bag with these devices, the books and other items in the park to “wake-up” people in the United States. He related that he believes the Mexican border is poorly defended and that many people are entering this country illegally. He also said that he made the explosive devices and placed them in the park to make people realize that if this can happen in Roswell, Georgia, it can happen anywhere.
The sentencing for Michael C. Sibley, 67, of Marietta, Georgia, is scheduled for January 21, 2016.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Tracia M. King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Union Organizer Indicted for Corruption, Attempted Extortion, and Money LaunderingRead the Press Release
OAKLAND - A federal grand jury in Oakland indicted Daniel Rush today with taking illegal payments as a union employee, honest services fraud, attempted extortion, and money laundering announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment, Rush, 54, of Oakland, is alleged to have used his position as a union organizer with the United Food and Commercial Workers (UFCW) to obtain money and other things of value over a five year period from 2010 to 2015.
Rush was an organizing coordinator of the medical cannabis division of the UFCW. The indictment alleges that, while a union employee, Rush accepted $550,000 in debt forgiveness from an individual affiliated with medical marijuana dispensaries. According to an affidavit filed by an FBI agent in connection with a criminal complaint filed in the same matter, Rush and a coconspirator formulated a scheme to obtain debt forgiveness in exchange for favorable treatment by the union. The individual who agreed to the debt forgiveness was cooperating with the FBI’s investigation at the time Rush proposed the arrangement.
The indictment also charges Rush with taking kickbacks from an attorney to whom he had referred medical marijuana dispensaries as clients. Rush, the indictment alleges, had a duty to provide honest services to the UFCW; that duty including refraining from self-dealing when interacting with the marijuana dispensaries whose workers it was his job to organize. Rush is charged with engaging in a scheme in which he violated that duty in exchange for kickbacks from the attorney.
The indictment further charges Rush with taking kickbacks from the same attorney in exchange for arranging for the attorney to represent clients in worker’s compensation matters. Rush was an officer and director of an advocacy organization for the working poor. Rush directed the organization’s referral of worker’s compensation clients to the attorney. In exchange, the attorney provided Rush with a credit card on which Rush charged thousands of dollars of personal expenses which ultimately were paid by the attorney.
Rush also is charged with attempted extortion. Rush was a member of the Berkeley Medical Cannabis Commission, which is a commission of the City of Berkeley organized to facilitate the appropriate licensing and regulation of medical marijuana in the city. Rush demanded a well-compensated job from a prospective medical marijuana dispensary in exchange for his influence as a member of the commission.
In addition, the indictment alleges that Rush engaged in a conspiracy to commit money laundering and financial structuring, as well as substantive money laundering. The indictment and FBI agent’s affidavit filed in the case explain that Rush took a loan totaling $600,000 in cash from a person engaged in the marijuana business. Rush and the attorney engaged in a series of structuring transactions designed to obscure the origin of the money. Over the ensuing years, Rush required the attorney to fund interest payments on the loan and, when Rush ultimately was not able to repay the loan, he offered favorable union benefits in exchange for forgiveness of the loan.
In sum, Rush was charged with taking illegal payments as a union employee, in violation of 29 U.S.C. §§ 186(a) and (b); honest services fraud, in violation of 18 U.S.C. §§ 1341, 1343 and 1346; attempted extortion, in violation of 18 U.S.C. § 1951; conspiracy to commit structuring and money laundering, in violation of 18 U.S.C. § 371; and money laundering by concealment, in violation of 18 U.S.C. § 1956(a)(1)(B)(i).
The investigation began with cooperation from individuals in the medical marijuana industry who reported Rush’s allegedly corrupt activities. According to the affidavit, the attorney with whom Rush was working has been cooperating with the FBI and has agreed to plead guilty to offenses related to the charges against Rush.
Rush was originally charged by criminal complaint and arrested in Oakland on August 11, 2015, and made his initial appearance in federal court in Oakland on August 12, 2015. Rush was released on bond and bail was set at $500,000. Rush’s next scheduled appearance is September 23, 2015, at 9:30 am for arraignment before the Honorable Kandis Westmore, U.S. Magistrate Judge, in Oakland. The case has been assigned to the Honorable Haywood S Gilliam, Jr., U.S. District Court Judge, in Oakland.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The defendant faces a maximum term of imprisonment of 20 years if he is convicted of the charges of honest services fraud, attempted extortion, or money laundering, along with a fine as much as $500,000 and restitution if appropriate. If the defendant is convicted of accepting an illegal payment as a union employee or engaging in a criminal conspiracy, he faces a maximum term of imprisonment of 5 years. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco and investigated by the FBI.
U.S. Citizen Arrested for Attempting to Provide Material Support to ISILRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Ali Saleh with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. Saleh was arrested earlier today at his residence in Queens, New York, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Roanne L. Mann at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the New York Field Office of the Federal Bureau of Investigation (FBI), and Commissioner William J. Bratton of the New York City Police Department.
As set forth in court documents, Saleh is a 22-year-old citizen of the United States. In the last year, Saleh made multiple attempts to travel to the Middle East to join ISIL. In August 2014, he made a flight reservation to travel from New York’s John F. Kennedy International Airport (JFK) to Istanbul, Turkey. A few days earlier, Saleh used his Twitter account to post, “I’m ready to die for the Caliphate, prison is nothing.”[1] Saleh was unable to travel at that time, but continued to pursue his goal of travelling overseas to join ISIL. For example, in July 2015, Saleh made a flight reservation to travel from JFK to Cairo, Egypt. On that same day, Saleh used his Twitter account to communicate with an ISIL facilitator who instructed followers to contact him “for hijrah advice to IS in Libya ONLY.”[2] After speaking with airline personnel, Saleh did not board a flight from JFK Airport. Over the span of the next two days, Saleh subsequently continued his attempts to travel to the Middle East by visiting Newark Liberty International Airport in New Jersey and Philadelphia International Airport, where he was again denied boarding.
Saleh then made his way to an Amtrak station in Cleveland, Ohio, in an attempt to take a train to Toronto, Canada, and travel to the Middle East from there. In a subsequent interview with law enforcement officers, Saleh indicated that were he not arrested, he would continue to attempt to travel to the Middle East.
“Saleh was relentless in his attempts to travel to the Middle East to join a terrorist organization,” stated Acting United States Attorney Currie. “We will continue to track down and prosecute individuals like Saleh before they are able to harm the United States and its allies.” Mr. Currie extended his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a number of federal, state, and local agencies from the region. Mr. Currie also thanked the FBI’s Indianapolis Field Office and the New York City Police Department’s Intelligence Division for their assistance.
“According to the allegations in the complaint, Ali Saleh attempted to provide material support to ISIL and made repeated efforts to travel overseas to join their ranks,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“The persistence of Saleh in his alleged attempts to travel overseas in order to ‘die for the Caliphate,’ did not match the dedication of New York’s Joint Terrorism Task Force (JTTF) to work quickly to identify and interrupt this threat. We will continue to be vigilant in our attempts to proactively stop threats before harm can occur,” said FBI Assistant Director in Charge Diego Rodriguez.
“By his own words, Ali Saleh was willing to pledge allegiance to, and die for ISIL, an organization that has called for terrorist attacks against the United States,” said Police Commissioner Bratton. “Saleh’s attempts to travel to Syria and ISIL’s battlefields were halted by good intelligence and smart law enforcement. I commend the agents and detectives of the Joint Terrorism Task Force as well as the dedicated prosecutors at the office of the United States Attorney for the Eastern District of New York.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the office’s National Security & Cybercrime Section. Assistant United States Attorney Saritha Komatireddy is in charge of the prosecution, with assistance provided by Trial Attorneys Lolita Lukose and Alison Daly of the Justice Department’s Counterterrorism Section.
The Defendant:
ALI SALEH
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 15-M-886
[1] In this context, the term “Caliphate” refers to ISIL, given its stated goal of establishing an Islamic caliphate in Iraq and Syria.
[2] The term “hijrah” is a reference to making a journey, and “IS” is a reference to ISIL.
U.S. Attorney of the Southern District of New York Announces Criminal Charges Against General Motors and Deferred Prosecution Agreement with $900 Million ForfeitureRead the Press Release
General Motors Admits to Failing to Disclose Deadly Safety Defect in Its Cars to Consumers and U.S. Regulator
Independent Monitor to Be Appointed to Oversee General Motors’ Reporting of Safety Issues and Public Statements
Attorney General Loretta E. Lynch, Secretary Anthony Foxx of the Department of Transportation, U.S. Attorney Preet Bharara of the Southern District of New York, Administrator Mark R. Rosekind of the National Highway Traffic Safety Administration (NHTSA), Inspector General Calvin L. Scovel III of the U.S. Department of Transportation (DOT-OIG), Special Inspector General Christy Goldsmith Romero of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Assistant Director in charge Diego Rodriguez of the FBI’s New York Field Office, announced the filing of criminal charges against General Motors Company (GM or the company), an automotive company headquartered in Detroit, that has designed, manufactured, assembled and sold Chevrolet, Pontiac and Saturn brand vehicles, among others. GM is charged with concealing a potentially deadly safety defect from its U.S. regulator, the National Highway Traffic Safety Administration (NHTSA), from the spring of 2012 through February 2014, and, in the process, misleading consumers concerning the safety of certain of GM’s cars. The defect consisted of an ignition switch that had been designed and manufactured with too-low torque resistance and could therefore move easily out of the “Run” position into “Accessory” or “Off” (the defective switch). When the switch moved out of Run, it could disable the affected car’s frontal airbags – increasing the risk of death and serious injury in certain types of crashes in which airbags were otherwise designed to deploy. The models equipped with the defective switch were the 2005, 2006 and 2007 Chevrolet Cobalt; the 2005, 2006 and 2007 Pontiac G5; the 2003, 2004, 2005, 2006 and 2007 Saturn Ion; the 2006 and 2007 Chevrolet HHR; the 2007 Saturn Sky; and the 2006 and 2007 Pontiac Solstice. To date, GM has acknowledged a total of 15 deaths, as well as a number of serious injuries, caused by the defective switch.
U.S. Attorney Bharara also announced a deferred prosecution agreement with GM (the agreement) under which the company admits that it failed to disclose a safety defect to NHTSA and misled U.S. consumers about that same defect. The admissions are contained in a detailed statement of facts attached to the agreement. The agreement imposes on GM an independent monitor to review and assess policies, practices and procedures relating to GM’s safety-related public statements, sharing of engineering data and recall processes. The agreement also requires GM to transfer $900 million to the United States by no later than Sept. 24, 2015, and agree to the forfeiture of those funds pursuant to a parallel civil action also filed today in the Southern District of New York.
The criminal charges are contained in an information (the information) alleging one count of engaging in a scheme to conceal material facts from NHTSA and one count of wire fraud. If GM abides by all of the terms of the agreement, the government will defer prosecution on the information for three years and then seek to dismiss the charges.
“Every consumer has the right to expect that car manufacturers are taking their safety seriously,” said Attorney General Lynch. “The Department of Justice is committed to ensuring that the products Americans buy are safe; that consumers are protected from harm; and that auto companies follow the law.”
“General Motors not only failed to disclose this deadly defect, but as the Department of Justice investigation shows, it actively concealed the truth from NHTSA and the public,” said Transportation Secretary Foxx. “Today’s announcement sends a message to manufacturers: deception and delay are unacceptable, and the price for engaging in such behavior is high.”
“For nearly two years, GM failed to disclose a deadly safety defect to the public and its regulator,” said U.S. Attorney Bharara. “By doing so, GM put its customers and the driving public at serious risk. Justice requires the filing of criminal charges, detailed admissions, a significant financial penalty, and the appointment of a federal monitor. These measures are designed to make sure that this never happens again.”
“Today’s action strengthens NHTSA’s efforts to protect the driving public,” said Administrator Rosekind. “It sends a message not only to GM, but to the entire auto industry, that when it comes to safety, telling the full truth is the only option.”
“To the families and friends of those who died and to those who were injured as a result of crashes related to GM’s defective ignition switches, I offer my deepest sympathies for your loss and my highest admiration for the strength you demonstrate every day,” said Inspector General Scovel III. “As is true for Secretary Foxx and the Department of Transportation, safety is and will remain the highest priority of my office, and we will continue to work relentlessly to ensure accountability throughout the Department and transportation sector. The OIG is committed to working with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations. The efforts of this dedicated multi-agency team and the agreement reached with General Motors, and that with Toyota in March 2014, must continue to serve as a clarion call to all auto manufacturers and their suppliers of the need to be vigilant and forthcoming to keep the public safe.”
“General Motors’ criminal conduct found by SIGTARP and our law enforcement partners defies comprehension,” said Special Inspector General Goldsmith Romero. “Our investigation uncovered that GM learned about a life-threatening ignition switch defect that would cause air bags not to inflate, but concealed the deadly safety defect from its regulator, and from people buying used cars from GM dealers. The worst part about this tragedy is that it was entirely avoidable. GM could have significantly reduced the risk of this deadly defect by improving the key design for less than one dollar per vehicle but GM chose not to because of the cost. Americans stepped up and bailed out General Motors with $50 billion; and General Motors must step up and make substantial corporate changes to prevent anything like this from happening again. SIGTARP commends U.S. Attorney Bharara for bringing these charges and standing united in the fight against TARP-related crime.”
“GM concealed a safety defect from consumers and regulators, which put drivers at risk,” said Assistant Director in Charge Rodriguez. “The resolution of this case shows that safety should never take a backseat to expediency.”
According to the allegations in the information, as well as other documents filed today in the Southern District of New York, including the statement of facts:
From the spring of 2012 through February 2014, GM deceived consumers and failed to make a required disclosure to NHTSA, its U.S. regulator, by regarding the connection that certain of its personnel had identified between the defective switch and airbag non-deployment. GM also falsely represented to consumers that vehicles equipped with the defective switch posed no safety concern.
Early Knowledge of the Defective Switch
GM engineers knew before the defective switch even went into production in 2002 that it was prone to easy movement out of the Run position. Testing of a prototype showed that the torque return between the Run and Accessory positions fell below GM’s own internal specifications. But the engineer in charge of the defective switch approved its production anyway.
In 2004 and 2005, as GM employees, media representatives and GM customers began to experience sudden stalls and engine shutoffs caused by the defective switch, GM considered fixing the problem. However, having decided that the switch did not pose a safety concern, and citing cost and other factors, engineers responsible for decision-making on the issue opted to leave the defective switch as it was and simply promulgate an advisory to dealerships with tips on how to minimize the risk of unexpected movement out of the Run position. GM even rejected a simple improvement to the head of the key that would have significantly reduced unexpected shutoffs at a price of less than a dollar a car.
At the same time, in June 2005, GM made public statements that, while acknowledging the existence of the defective switch, gave assurance that the defect did not pose a safety concern.
GM’s Knowledge that the Defective Switch Causes Airbag Non-Deployment
By the spring of 2012, GM knew that the defective switch presented a safety defect because it could cause airbag non-deployment in certain GM cars. Specifically, GM personnel investigating the cause of a series of airbag non-deployment incidents learned that the defective switch could cause frontal airbag non-deployment in at least some model years of the Cobalt, and were aware of several fatal incidents and serious injuries that occurred as a result of accidents in which the defective switch may have caused or contributed to airbag non-deployment. This knowledge extended well above the ranks of investigating engineers to certain supervisors and attorneys at the company.
GM’s Failure to Disclose the Defect and Recall Affected Cars
Yet not until approximately 20 months later, in February 2014, did GM first notify NHTSA and the public of the connection it had identified between the defective switch and airbag non-deployment incidents. The company thus egregiously disregarded NHTSA’s five-day regulatory reporting requirement for safety defects.
Moreover, for much of the period during which GM failed to disclose this safety defect, it not only failed to correct its June 2005 assurance that the defective switch posed no safety concern but also actively touted the reliability and safety of cars equipped with the defective switch, with a view to promoting sales of used GM cars. Although GM sold no new cars equipped with the defective switch during this period, GM dealers were still, from in or about the spring of 2012 through in or about the spring of 2013, selling pre-owned Chevrolet, Pontiac and Saturn brand cars that would later become subject to the February 2014 recalls. These sales were accompanied by certifications from GM, assuring the unwitting consumers that the vehicles’ components, including their ignition systems and keys, met all safety standards.
GM’s delay in disclosing the defect at issue was the product of actions by certain personnel responsible for shepherding safety defects through GM’s internal recall process, who delayed the recall until GM could fully package, present, explain and handle the deadly problem. Rather than move swiftly and efficiently toward recall of at least the population of cars known to be affected by the safety defect and thus certainly destined for recall, GM personnel took affirmative steps to keep the company’s internal investigation into airbag non-deployment caused by the defective switch “offline” – outside of GM’s regular recall process.
Moreover, on at least two occasions while the defective switch condition was well known by some within GM but not disclosed to the public or NHTSA, GM personnel made incomplete and therefore misleading presentations to NHTSA assuring the regulator that GM would and did act promptly, effectively and in accordance with its formal recall policy to respond to safety problems – including airbag-related safety defects.
GM’s Acceptance of Responsibility and Cooperation in the Government Investigation
In February 2014, GM finally conducted a recall of approximately 700,000 vehicles affected by the defective switch. By March 2014, the recall population had grown to more than 2 million vehicles.
Since February 2014 and the inception of this federal criminal investigation, GM has taken exemplary actions to demonstrate acceptance and acknowledgement of responsibility for its conduct. GM, among other things, conducted a swift and robust internal investigation, furnished the government with a continuous flow of unvarnished facts gathered during the course of that internal investigation, voluntarily provided, without prompting, certain documents and information otherwise protected by the attorney-client privilege, provided timely and meaningful cooperation more generally in the federal criminal investigation, terminated wrongdoers and established a full and independent victim compensation program that has to date paid out hundreds of millions of dollars in awards.
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U.S. Attorney Bharara praised the outstanding investigative work of SIGTARP, DOT-OIG, NHTSA and the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Bonnie Jonas, Deputy Chief of the Criminal Division, and Assistant U.S. Attorneys Sarah Eddy McCallum and Edward A. Imperatore are in charge of the prosecution, and Assistant U.S. Attorney Jason H. Cowley, Chief of the Money Laundering and Asset Forfeiture Unit, is responsible for the forfeiture aspects of the case.
U.S. Attorney Announces Gun Charge Against Mount Vernon Man After Shooting in New RochelleRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the arrest and charge against RAHEEM JONES for possession of a gun after a shooting in New Rochelle, New York that resulted in a victim being shot three times. JONES was arrested Tuesday by the Westchester County Department of Public Safety and was presented before United States Magistrate Judge Paul E. Davison yesterday and detained.
U.S. Attorney Preet Bharara said: “Raheem Jones has been charged with the federal crime of being a felon in possession of a firearm. As alleged, Jones showed a blatant disregard for public safety when he possessed the gun in a car from which multiple shots were fired, in broad daylight on a busy street in New Rochelle, hitting a victim three times. Because of Westchester law enforcement’s quick response, this allegedly violent criminal is now off of the street. I want to thank the Westchester County District Attorney’s Office for their cooperation in this case, as well as the investigative work of the FBI, the Westchester County Department of Public Safety and the New Rochelle Police Department.”
As alleged in the Complaint[1]:
On September 15, 2015, around lunchtime, there was a shooting in the vicinity of Clinton Avenue in New Rochelle. The shots were fired from the front passenger window of an SUV into another car, hitting an individual in the second car approximately three times. The individuals in the SUV fled, leading to an area-wide search for the SUV. Shortly thereafter, an officer with the Westchester County Department of Public Safety located an SUV matching the description of the vehicle used in the shooting, and attempted to pull that SUV over.
The SUV stopped momentarily, and then fled at a high rate of speed. The officer pursued the SUV in his patrol car. When the SUV slowed and the man sitting in the front passenger seat of the SUV jumped out of the car, carrying a backpack, the officer pursued that man, later identified as JONES, on foot. After a short chase, JONES, who had thrown the backpack nearby, was detained outside of a building. Law enforcement officers found a Smith and Wesson .38 caliber revolver inside of the backpack.
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JONES, 26, of Mount Vernon, was charged with possession of a gun after having committed a felony, which carries a maximum sentence of 10 years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI, the Westchester County Department of Public Safety, the Mount Vernon Police Department, and the New Rochelle Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Anden Chow and Sarah Krissoff are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two convicted in multi-state heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Shanley-Sexton, 23, of Gaithersburg, Maryland, and James R. Dove, 30, of Keyser, West Virginia, were convicted in federal court for their role in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants were among 41 defendants named in a 163-count federal heroin trafficking indictment in June 2015. The indictment stemmed from a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into surrounding states, including West Virginia.
Shanley-Sexton pled guilty to one count of “Conspiracy to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Dove pled guilty to one count of “Interstate Travel in Aid of Racketeering.” He faces up to five years in prison and a fine of up to $250,000.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Two Sentenced for Healthcare FraudRead the Press Release
ABINGDON, VIRGINIA – A mother and daughter who operated a business that provided oversight to personal care aides caring for elderly and disabled individuals, were sentenced earlier this week in the United States District Court for the Western District of Virginia in Abingdon on healthcare fraud charges.
Connie Robbins, 59, of Sugar Grove, Va. and Stephanie Dawn Robbins, 37, of Marion, Va., both previously waived their rights to be indicted and pled guilty to one-count Informations charging them each with conspiracy to commit healthcare fraud. On Monday, September 14, 2015, Connie Robbins was sentenced to one year and one day in prison. Stephanie Robbins was sentenced to two years of probation, 200 hours of community service and three months of home confinement. The defendants were ordered to repay Virginia Medicaid $137,106 in total restitution.
According to evidence presented at a previous guilty plea hearing by Virginia Assistant Attorney General and Special Assistant United States Attorney Janine Myatt, Stephanie and Connie Robbins operated Robbins CD Services, a Consumer Directed Service Facilitator (CDSF) service provider. A CDSF is paid by Virginia Medicaid to assist Medicaid recipients who are eligible for a waiver that allows them to avoid moving into a nursing home and instead receive critical care in their homes.
The only two employees at CD Robbins Services were Connie Robbins, a registered nurse, and her daughter, Stephanie Robbins, who served as the office manager. Between October 2008 and August 2013, Connie Robbins created false supporting paperwork that documented home face-to-face visits with patients that never occurred. In her role as office manager, Stephanie Robbins billed Virginia Medicaid for the face-to-face home assessments that she knew never occurred. Approximately 35 percent of the home assessments billed by Robbins CD Services and paid by Medicaid never occurred.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Medicaid Fraud Control Unit for the Virginia Office of the Attorney General. Virginia Assistant Attorney General and Special Assistant United States Attorney Janine Myatt is prosecuting the case for the United States.
Twin Peaks Company Pleads Guilty to Hiring Unauthorized WorkersRead the Press Release
WICHITA, KAN. – Le Grande Tetons, LLC, the company that owned and operated the Twin Peaks bar and restaurant in east Wichita, has pleaded guilty to engaging in a pattern or practice of employing aliens not authorized to work in the United States, U.S. Attorney Barry Grissom said.
Grissom said the guilty plea was entered by a lawyer for the company in federal court Thursday before U.S. Magistrate Judge Gwynne E. Birzer. Pursuant to a plea agreement in the case, Judge Birzer imposed a fine of $50,000. Companies or persons who engage in a pattern or practice of employing unauthorized aliens can be fined up to $3,000 for each person so employed.
Le Grande Tetons, LLC, has sold or is in the process of selling its Twin Peaks location and franchise, which is at 8310 E. 21st St.
According to plea agreement, the U.S. Attorney’s office has agreed not to pursue any additional charges against the owners, current employees or former employees of Le Grande Tetons, LLC, with the exception of two former management employees who remain under investigation.
“The word is getting out: Employers who knowingly hire foreign workers who are not authorized to work in the United States face criminal prosecution,” Grissom said. “I blame employers for this practice, not the employees. It isn’t very hard to figure out whether someone from another country has permission to work in the United States.”
According to the plea agreement, the Twin Peaks east location underwent an I-9 employment authorization form inspection by the Department of Homeland Security, Homeland Security Investigations (HSI), in September 2013 that identified more than 20 unauthorized workers employed primarily in the east Twin Peaks kitchen area. A Twin Peaks manager agreed to fire the employees immediately, but HSI received word several months later than many of the same employees had been rehired. Federal search warrants were executed at both Wichita Twin Peaks locations in July.
Grissom praised HSI for its investigation of the case and Assistant U.S. Attorney Brent Anderson for its prosecution. Other agencies, including the Wichita Police Department, the Kansas Department of Labor, the Kansas Department of Revenue and the Social Security Administration Office of Inspector General also assisted in the case.
Three Men Handed Down Prison Sentences on Child Pornography Charges in Separate CasesRead the Press Release
CHARLOTTE, N.C. – On Wednesday, September 16, 2015, U.S. District Judge Max O. Cogburn sentenced an Indian Trail, N.C. man to 20 years in prison on transportation of child pornography charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Jason Michael Brown, 41, was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division.
According to court documents and statements made in court, on or about December 2011, law enforcement became aware that an individual with the username “Gigatribal007,” later identified as Brown, was sharing child pornography using peer to peer software. The investigation revealed that Brown possessed a collection of child pornography, consisting of more than 10,000 images and videos depicting children being sexually abused. Brown was also found to have sexually abused a child under the age of five. According to court records, Brown pleaded guilty in September 2014 to one count of transportation of child pornography and one count of possession of child pornography.
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In a separate case, on Tuesday, September 15, 2015, Chief U.S. District Judge Frank D. Whitney sentenced John Moore, Jr., 56, of Monroe, N.C. to 108 months in prison and 20 years of supervised release. According to filed documents and statements made in court, in September 2009, law enforcement became aware of Moore’s collection of child pornography after it was discovered by a computer repair technician who was repairing Moore’s computer. Court documents indicate that a forensic examination of the seized computer revealed that Moore possessed an extensive collection of child pornography, consisting of more than 1,200 images of child pornography and videos. Moore pleaded guilty in April 2013 to one count of possession of child pornography. Judge Whitney also ordered Moore to register as a sex offender once he is released from prison.
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In a third case sentenced this week, on Monday, September 14, 2015, Judge Cogburn sentenced Clinton Williams, Jr., 35, of Charlotte, to 72 months in prison and a lifetime of supervised release. According to court records, between February and August 2013, Williams accessed and downloaded on his computer child pornography using a peer to peer network. Court records indicate that Williams, who at the time was a detention officer with the Mecklenburg County Sheriff’s Office, downloaded more than 100 images and videos of child pornography, some of which included children as young as four years old. Williams pleaded guilty to one count of receiving child pornography and one count of possession of child pornography.
All three defendants are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
These investigations were handled by the FBI. The Charlotte-Mecklenburg Police Department also assisted with the investigation into Williams.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Third and Final Member, Victor Hugo Quesada-Pacheco, of Kalamazoo Counterfeit Identification Document Ring SentencedRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that Victor Hugo Quesada-Pacheco, also known as "Galvan," age 34, a citizen of Mexico who most recently resided illegally in Kalamazoo, Michigan, was sentenced to 30 months’ imprisonment today for his role in a counterfeit identification document ring. Quesada-Pacheco is the final defendant involved in the ring to be sentenced. Jesus Emmanuel Lopez-Garcia and Jaime Velasco-Jimenez previously received sentences of 36 months’ imprisonment.
Between September, 2013, and March, 2015, the ring produced hundreds of counterfeit identification documents at the apartments of Velasco-Jimenez in Plainwell and Kalamazoo, Michigan. Velasco-Jimenez recruited Lopez-Garcia and Victor Hugo Quesada-Pacheco to solicit illegal aliens residing in Kent and Kalamazoo counties in need of counterfeit identification documents. Lopez-Garcia and Quesada-Pacheco provided the names, false social security account numbers, and other false biographical information for their customers to Velasco-Jimenez who then produced counterfeit driver’s licenses, state identification documents, social security account number cards, lawful permanent resident cards, and other false identification documents at his apartment in Kalamazoo. Lopez-Garcia and Quesada-Pacheco then delivered the counterfeit identification documents to their customers and collected a fee that was shared with Velasco-Jimenez.
Marlon Miller, special agent in charge for HSI Detroit, commented that "HSI will continue to aggressively target counterfeit identity document schemes." He explained that "The proliferation of counterfeit identity documents can have a rippling effect on all of us because it potentially compromises national security and the integrity of the U.S. immigration system."
Quesada-Pacheco forfeited numerous electronic devices and cash related to his crime. And he faces removal from the United States.
Assistant U.S. Attorney Ronald M. Stella prosecuted the case, which was investigated by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations division in Grand Rapids.
Telluride man convicted and sentenced for massive littering of the Uncompahgre National ForestRead the Press Release
DENVER – Benjamin Yoho, age 41, currently of Telluride and Ouray, was convicted and sentenced earlier this week following a one day bench trial before U.S. Magistrate David L. West in Durango of crimes related to the massive littering of an area north of Telluride within the Uncompahgre National Forest, the U.S. Attorney’s Office, the U.S. Forest Service, and the San Miguel County Sheriff announced. From a period of October, 2014, through April, 2015, Yoho not only lived and maintained a structure on National Forest System Lands, but also transported large quantities of items from the Telluride “Free Box” to National Forest System Lands where he littered a large area near the Jud Wiebe Trail. A volunteer effort was mobilized in May, 2015, and with the help of 48 volunteers and numerous crewpersons with the Colorado Division of Fire Prevention and Control, approximately 8500 pounds of debris was removed from the forest by helicopter.
Yoho was charged and convicted of Residing on National Forest System Lands, Maintaining a Structure on National Forest System Lands, and Leaving Debris on National Forest System Lands. He was sentenced to 6 months in the Federal Bureau of Prisons, to be followed by one year of probation. Conditions of Probation include Yoho’s placement at a halfway house upon release from prison and a ban from Forest and BLM lands. Additionally, the Court recommended that the defendant receive mental health treatment while at the Federal Bureau of Prisons. The issue of restitution will be decided at a later date.
“This was no ordinary case of littering in the National Forest – this was full-scale trashing of the public lands, and merited a term of incarceration,” said U.S. Attorney John Walsh.
“The Forest Service greatly appreciates the cooperative effort with the San Miguel County Sheriff’s Office and the local community with this case,” said U.S. Forest Service Special Agent in Charge Laura Mark. “Individuals residing on national forest lands is not only illegal, it poses a significant public safety concern and causes damage to the resources and watersheds, as well as threatening wildlife and in some cases prevents the public from being able to safely recreate in the national forest.”
"This case was an excellent example of the U.S. Forest Service, the Department of Justice and the local community working together to solve a terrible environmental problem,” said San Miguel County Sheriff Bill Masters. “I hope this serves as a warning to all that trashing our National Forest is unacceptable behavior. Unfortunately the defendant in this case took advantage of the charitable nature of the Telluride community and made a mockery of it. In the future law enforcement and citizens need to be more vigilant in controlling abuses of the "Freebox" and other giving institutions to make certain people are not using donated items for criminal purposes."
This case was investigated by the U.S. Forest Service with support from the San Miguel County Sheriff.
Yoho was prosecuted by Assistant U.S. Attorney Dondi Osborne of the U.S. Attorney’s Durango Branch Office.
Shawnee Mission Man Pleads Guilty to $6 Million EmbezzlementRead the Press Release
KANSAS CITY, KAN. – A Shawnee Mission man pleaded guilty Wednesday to federal charges he embezzled more than $6 million from an Overland Park company, U.S. Attorney Barry Grissom said.
Kenneth Voboril, 46, Shawnee Mission, Kan., pleaded guilty to one count of wire fraud and one count of filing a false tax return. In his plea, he admitted he was hired in 2005 by Commodity Specialists Company to run its subsidiary, TransMaxx. TransMaxx brokered trucking deliveries for customers and occasionally provided services to CSC.
Voboril devised a scheme to defraud CSC by creating fake companies and billing CSC for deliveries that never occurred. He caused false truck load information to be entered into TransMaxx’s computer system, resulting in invoices being created by TransMaxx’s account software program.
Over the course of time, he embezzled more than $6 million from CSC. In addition, he failed to report the income on his federal tax returns.
Sentencing is set for Dec. 7. He faces maximum penalty of 20 years in federal prison and a fine up to $1 million on the wire fraud count, and a maximum penalty of three years and a fine up to $250,000 on the tax count. Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Senior Living Center Employee Sentenced to Nearly Five Years in Prison for ID Theft and $335,000 Fraud Against Elderly ResidentRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a former Hoover senior living center employee to four years and nine months in prison for using the identity of a resident with dementia to steal more than $300,000 from the resident's bank and credit accounts, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Special Agent in Charge Craig Caldwell.
U.S. District Judge Abdul K. Kallon sentenced SHOSTOCKA KEYA WARD, 43, of Pleasant Grove, for bank fraud and aggravated identity theft. In accordance with Ward's plea agreement with the government, the judge also ordered her to pay $335,214 in restitution to the power of attorney for her elderly victim and several financial institutions, and to forfeit the same amount to the government as proceeds of illegal activity. Ward pleaded guilty to the charges in May. She must report to prison Jan. 4.Between Oct. 11, 2011, and Feb. 13, 2014, Ward carried out a scheme to defraud eCO Credit Union of money in the victim’s account through various means and without the victim’s authorization. According to Ward's guilty plea, her fraud included, in part, writing more than $70,000 in unauthorized checks to herself and using the victim's credit cards to charge thousands of dollars for expenses that included financing her own wedding, applying money to someone's prison account, making car and private school tuition payments, and taking trips to Las Vegas, Chicago, Tunica, Miss., and Gatlinburg, Tenn.
According to court documents, Ward worked at Galleria Woods as a resident assistant or a transportation coordinator from about August 2010 to January 2014. In 2011, Ward became acquainted with the victim, a Galleria Woods resident who was 75 years old, had no immediate family, few visitors and an out-of-town family friend who served as her power of attorney, but was not actively involved in her daily care or the management of her daily finances.Ward began assisting the victim with transportation, errands, bill payments and other financial issues, and gained access to the victim’s purse, mail, financial statements, checkbook, and debit and credit cards. Ward maintained her relationship with the victim during her employment at Galleria Woods as the victim’s mental and physical condition declined and she became incapable of managing her financial affairs, according to Ward's plea.
U.S. Secret Service investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes prosecuted.
Rosedale Woman Pleads Guilty to Embezzling from Non-Profit Organization She FoundedRead the Press Release
Baltimore, Maryland - Kimberly Harrison, age 46, of Rosedale, Maryland, pleaded guilty today to embezzling funds from a federally funded non-profit organization she founded. She also admitted committing bankruptcy fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.
According to her plea agreement, Kimberly Harrison embezzled over $100,000 from Between Friends, which she founded and operated from 2008 to 2012, including $60,264 which she stole from September 2011 to September 2012. Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families. Kimberly Harrison also admitted that when she filed for bankruptcy on June 28, 2012, she did not disclose the approximately $45,514 she had received from Between Friends, Inc., in the form of both checks made payable to Harrison directly, and checks made payable to her landlord for Harrison’s monthly rent payments, from June 2011 until the filing of her petition. Harrison also failed to list as an asset a 2009 Lexus RX350 that she purchased for $31,037.88 on June 23, 2012, just five days prior to filing her petition.
As part of her plea agreement, Harrison will be required to pay restitution of $104,432.11, the total amount she embezzled from Between Friends.
Kimberly Harrison faces a maximum sentence of 10 years in prison for federal program theft. U.S. District Judge J. Frederick Motz has scheduled sentencing for November 19, 2015 at 10:00 a.m.
Kimberly Harrison’s sister, Sharon Harrison, age 48, also of Rosedale, was recently sentenced to three years in prison for embezzling from four non-profit organizations for which she worked, including Between Friends. Sharon Harrison was also ordered to pay restitution of $1,306,797.70, the total amount that she embezzled.
United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Rochester Woman Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Jodia Campbell, 33, of Rochester, NY, pleaded guilty to transporting individuals across state lines with intent that the individuals engage in illegal sex acts before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorneys Tiffany H. Lee and Melissa M. Marangola, who are handling the case, stated that in April 2013, Campbell transported an adult from New York to the State of New Jersey for the purpose of engaging in prostitution. The defendant used Backpage.com to post ads for the minor.
Campbell was arrested in April 2014 along with Laree Greggs and Jennifer Miller. Greggs and Miller have been convicted and are awaiting sentencing.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Rochester Man Charged with Possession of Stolen GunsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ramel Robinson, 21, of Rochester, NY, was charged by criminal complaint in connection with his unlawful possession of firearms which had been stolen from the residence at 184 Clay Avenue in Rochester. The charges carry a maximum penalty of 10 years, a fine of $250,000, or both.Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that according to the complaint, Robinson entered the residence at 184 Clay Street on September 9, 2015 and stole a gun safe. The safe contained five firearms and numerous rounds of ammunition.
After learning of the burglary, state and federal law enforcement officers essentially shut down the area near Clay and Lyell Avenue in an attempt to locate the stolen firearms. During the execution of a search warrant at 350 Clay Avenue, investigators recovered two firearms, including a Mossberg Maverick Arms 12 gauge shotgun and a Ruger 05806 KMini-30P, 7.62 x 39 mm semi-automatic rifle. The firearms were identified by the victim of the burglary at 184 Clay Avenue as two of the five firearms stolen earlier that day. On September 14, 2015, Robinson was arrested by Rochester Police officers for allegedly operating a stolen vehicle.
Robinson will make an initial appearance on September 18, 2015, at 11:00 a.m. before U.S. Magistrate Judge Jonathan W. Feldman.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, by the Federal Bureau of Investigation, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.
Richmond Heroin Dealer Sentenced to 20 Years in PrisonRead the Press Release
RICHMOND, Va. – Maulana Rashada Harrison, aka Bah, 32, of Richmond, was sentenced today to 240 months in prison, followed by five years of supervised release for distributing heroin and being in possession of a firearm in furtherance of drug trafficking.
Harrison pleaded guilty on May 11, 2015, to two counts of an indictment charging him with possession with intent to distribute heroin, and with possession of a firearm in furtherance of drug trafficking. According to the statement of facts filed with the court, on Oct. 10, 2014, law enforcement officers executed a search warrant at Harrison’s residence in Richmond. While clearing the apartment, officers observed a bag containing individually knotted baggy corners containing approximately 3.8 grams of heroin. Numerous additional items were also recovered during the search of the residence, including: a 9mm semi-automatic pistol; 8 rounds of 9 mm ammunition; a .38 caliber semi-automatic pistol with and obliterated serial number; 8 rounds of .38 ammunition; and two digital scales. Harrison was arrested immediately following the search. Both firearms and the ammunition had previously been shipped on interstate commerce. At the time of his arrest, Harrison was advised of his rights, waived his rights, and admitted that all of the heroin and firearms located inside the residence belonged to him.
Harrison was sentenced to 180 months on the drug charge, and 60 months on the firearm charge. Those sentences will run consecutively, bringing the total prison time to 20 years.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Ray J. Tarasovic, Chief of City of Richmond Police Department, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
This case was investigated by the Richmond Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant U.S. Attorney S. David Schiller 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. 3:15-cr-48.
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Providence Man Indicted on Sex Trafficking, Witness Tampering & Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned a five-count indictment charging Dujuan Harris, 35, of Providence, R.I., with sex trafficking a 17-year-old girl, witness tampering and production of child pornography, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
The indictment charges Harris with one count each of sex trafficking a child, transportation of a minor with intent to engage in criminal sexual activity, production of child pornography, possession of child pornography and witness tampering.
It is alleged that after befriending a 17-year-old female on the Internet, Harris purchased tickets for the teenager to pay for her to travel by bus from her home in Texas to Boston. Harris met the young woman when she arrived in Boston on June 12, 2015, and then purchased a ticket for her to travel with him by bus to Providence. Within a few days of her arrival in Providence, it is alleged that the defendant took photographs of the victim in various stages of undress and posted them in ads on Backpage.com.
According to an investigation by the Providence Police Department and agents from Homeland Security Investigations (HSI), the response to the ad was immediate and several sexual encounters with the 17-year-old for a fee were allegedly arranged. All of the funds were allegedly turned over to Harris.
According to court documents, when Harris told the young woman that he wanted to earn more money by having her engage in an increased number of sexual encounters for payment, the young woman told Harris she no longer wanted to participate. It is alleged that Harris removed the battery from the victim’s cell phone so that she could not be located and on several occasions refused to allow her to leave the Providence apartment they were staying in.
On June 30, 2015, HSI agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in an apartment in Providence. Following the rescue of the victim, law enforcement discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone allegedly taken from Skype conversations between Harris and the victim while she was in Texas.
According to the indictment, it is alleged that between August 19 and September 15, 2015, while detained, Harris allegedly engaged in numerous telephone conversations with the victim in an intimidating and/or threatening manner, in an attempt to influence, delay and prevent the victim from providing testimony in this matter to a grand jury and to law enforcement.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
Prosecutors from the Rhode Island Department of the Attorney General are assisting the United States Attorney’s Office in the prosecution of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Principal Deputy Assistant Attorney General Benjamin C. Mizer, Head of the Justice Department’s Civil Division, Delivers Remarks at Press Conference Announcing Ramah Navajo Chapter V. Jewell SettlementRead the Press Release
ALBUQUERQUE—Today, the Department of Justice is pleased to announce a proposed settlement to resolve a nationwide class action brought by tribes and tribal contractors that had Indian Self Determination Act contracts with the Bureau of Indian Affairs. This is a preliminary resolution we submitted to the district court last night. If the settlement is approved by the court, it will bring to a close 25 years of litigation between the tribes and the federal government in a way that is fair and honorable to all the parties involved.
This agreement is a compromise that was long in the making – reached only after years of complex negotiations following the Supreme Court’s 2012 decision in Salazar v. Ramah Navajo Chapter. During that time, the parties have met repeatedly, working with expert accountants, auditors and statisticians to analyze thousands of contract documents. The result is a settlement that both sides can be proud of.
The proposed settlement will provide for a $940 million lump-sum payment to the class to resolve claims for contract support costs for the years 1994 through 2013. These are the tribes’ share of costs incurred in carrying out important federal programs that serve the well-being of members of the tribes. It establishes a fair and equitable system for distributing shares of this amount to each of the 645 class member tribes and tribal contractors. As a general rule, each tribal contractor that submits a claim will receive a share based on the amount of contract support costs it has incurred over the last 20 years. But the parties have also agreed to a minimum payment for each year that a self-determination contract existed with a tribe in order to ensure that no tribe is excluded from the benefit of this agreement.
I would like to extend a particular thanks to the three named plaintiffs – Ramah Navajo Chapter, Oglala Sioux Tribe and Pueblo of Zuni – for their efforts, and the efforts of class counsel on their behalf. This proposed settlement would not exist without their determination and tireless efforts over the last 25 years. I’d also like to thank the hard work of the attorneys at the Justice Department under the Civil Division’s Federal Programs Branch and the U.S. Attorney’s Office of the District of New Mexico, as well as those at the Department of the Interior. Without them, a settlement of this scope and importance would not have been possible.
Before I conclude, I would like to emphasize that this agreement does more than simply resolve this pending litigation. It also is an embodiment of a stronger relationship between the United States and the sovereign tribal nations, a relationship that is stronger today than perhaps any time in history. It demonstrates how the central mission of the Department of Justice is to ensure that justice is done, and how our attorneys work tirelessly every day to achieve that goal.
Pocatello Man indicted for Stalking and Using Interstate Communication to Hire Someone to Harm His Ex-WifeRead the Press Release
COEUR D’ALENE - John Kent Davis, 65, of Pocatello, Idaho, was indicted in Coeur d’Alene yesterday on charges of interstate communication of a threat of bodily injury and stalking, U.S. Attorney Wendy J. Olson announced. Davis’s arraignment is set for September 17, 2015, before U.S. Magistrate Judge Larry M. Boyle in Pocatello. Davis was arrested in Pocatello on August 17 on a federal complaint charging him with interstate communication of a threat. He has been detained there pending the grand jury proceedings in Coeur d’Alene.
The indictment alleges that on July 29 and August 3, 2015, the defendant used a form of interstate communication to try and hire someone to harm his ex-wife. The individual the defendant hired was actually an undercover FBI agent. The defendant met with the undercover agent telephonically and in person and paid money to the undercover agent while directing the undercover agent to where his ex-wife lived in northern Idaho, and telling him how badly he wanted her hurt. The defendant was also charged with one count of stalking his ex-wife from February 2015, until his arrest on August 17, 2015.
The case is being investigated by Federal Bureau of Investigation (FBI) and North Idaho Violent Crimes Task Force (NIVCTF).
The maximum penalty, upon conviction, for charges of interstate communication of a threat of bodily injury and stalking is up to five years imprison, and a $250,000 fine.
Philadelphia Man Charged in Pharmacy BurglariesRead the Press Release
PHILADELPHIA - Michael Katzin, 33, of Philadelphia, PA, was charged by superseding indictment with two pharmacy robberies, announced United States Attorney Zane David Memeger. Katzin is charged with conspiracy to commit pharmacy burglary, conspiracy to possess with the intent to distribute controlled substances, pharmacy burglary, and possession with the intent to distribute controlled substances.
According to the indictment, Katzin conspired with Harry Katzin and Mark Katzin, both charged elsewhere, and others, to enter Rite Aid pharmacies, with intent to steal materials and compounds containing any quantity of a controlled substance. The defendants allegedly robbed the Rite Aid pharmacy at 1852 Brownsville Rd, in Feasterville-Trevose, on November 18, 2010, and the Rite Aid pharmacy at 807 S. 4th Street, in Hamburg, on December 16, 2010, to steal amphetamine salts, dextroamphetamine, fentanyl, methylphenidate, dexmethylphenidate, morphine sulfate, meperidine, oxymorphone, tapentadol, codeine sulfate, hydromorphone, hydrocodone, hydrocodone APAP, hydrocodone chlorpheniram, oxycodone, and oxycodone APAP, each a Schedule II controlled substance.
If convicted, the defendant faces a maximum sentence of 70 years in prison, a fine of up to $2.5 million, up to a lifetime of supervised release, and a $400 special assessment.
The case was investigated by agents from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the Southampton Township Police Department, and the Hamburg Borough Police Department, and has been assigned to Assistant United States Attorney Thomas M. Zaleski.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man and Woman Charged in A Series of Bank RobberiesRead the Press Release
Philadelphia - David Thomas, a/k/a David Thompson, 22, of Philadelphia, PA, Alvin Johnson, 29, of Philadelphia, PA, and Sharae Johnson Coleman, 28, of Philadelphia, PA, were charged today by indictment[i] in a series of robberies with charges of conspiracy and bank robbery. Defendant David Thomas is charged with bank robbery for the robbery on May 14, 2015 of approximately $23,657 from Wells Fargo Bank, located at 52 North Bryn Mawr Avenue, Bryn Mawr, Pennsylvania; defendants David Thomas, Alvin Johnson and Sharae Johnson Coleman are charged with conspiracy and bank robbery for the robbery on June 2, 2015 of approximately $10,633 from Wells Fargo Bank, located at 52 North Bryn Mawr Avenue, Bryn Mawr, Pennsylvania; and defendants David Thomas and Alvin Johnson are charged with conspiracy and bank robbery for the robbery on June 30, 2015 of approximately $7,000 from TD Fargo, located at 8600 Germantown Avenue, Philadelphia, Pennsylvania; announced United States Attorney Zane David Memeger.
If convicted of the charges, defendant David Thomas faces a maximum sentence of 70 years imprisonment, defendant Alvin Johnson faces a maximum sentence of 50 years imprisonment, and defendant Sharae Johnson Coleman faces a maximum sentence of 25 years imprisonment. They also each face a maximum period of supervised release of three years, a substantial fine, a special assessment, and restitution.
This case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Lower Merion Township Police Department, and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
[i] An Indictment or an Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parkville Sex Offender Sentenced to 14 Years in Prison for Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Rodney Hubert, a/k/a “Noah,” age 40, of Parkville, Maryland, a registered sex offender in Maryland, to 14 years in prison followed by lifetime supervised release for sex trafficking of a minor. Judge Russell ordered that upon his release from prison, Hubert must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement and court documents, in January 2013, Hubert and Charles Hufton, a doorman at a nightclub in Baltimore, recruited girls to engage in prostitution, some of whom were underage.
Hubert sought a 19-year-old associate to work as a prostitute beginning in December 2012. Hubert and Hufton offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in a Parkville house provided by Hubert, and on at least seven occasions at other locations.
Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos, although Hubert never paid her the promised fee. Hubert and Hufton used the photos to post online prostitution ads. Hubert also offered to pay her $1,000 to make a pornographic film with him in which they would engage in sex.
Hufton used his smartphone and email address to create and post online prostitution ads. Hubert and Hufton advertised online that the 16 year old would prostitute at both the Parkville house, as well as other locations of prospective clients. Hufton drove the prostitutes, including the 16 year old, to “out-call” locations and collected a portion of their earnings.
Co-defendant Charles Hufton, age 27, formerly of Cockeysville, Maryland, previously pleaded guilty to conspiring to commit sex trafficking of a minor and was sentenced to 30 months in prison.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation, and thanked Assistant U.S. Attorney Ayn B. Ducao, who prosecuted the case.
Oklahoma City Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TIMOTHY CRAIG BOXFORD, age 43, of Oklahoma City, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleges that on or June 21, 2014, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is up to Life imprisonment, up to a $20,000,000.00 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Northern Arizona University Receives over $500,000 in Federal Grant Funds to Support Victims of Domestic Violence in Santa Cruz CountyRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $550,000 in grant funds have been awarded to Northern Arizona University to encourage and build innovative and collaborative safety and accountability networks among stakeholders in Santa Cruz County. The grant funds were awarded by the Office on Violence Against Women (“OVW”), which is a component of the Department of Justice (“DOJ”).
“This significant amount of Justice Department funding will enhance awareness of and prevent domestic violence, dating violence, sexual assault, and stalking in rural communities, and increase the services available to the victims of those offenses.” said U.S. Attorney Leonardo. “We encourage all agencies to be proactive and apply for future grant funding through our Office on Violence Against Women.”
Information about OVW and its programs can be found at: http://www.justice.gov/ovw.
RELEASE NUMBER: 2015-081_N._AZ_UNIV_GRANT (2015-WR-AX-0033)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
North Central West Virginia leaders announce action plan to combat drug abuseRead the Press Release
CLARKSBURG, WEST VIRGINIA – Community leaders in North Central West Virginia are taking a new approach to combat drug abuse and overdose deaths in the region, United States Attorney William J. Ihlenfeld, II, announced today.A diverse group of local community leaders recently gathered at Robert C. Byrd High School to present the United States Attorney’s Addiction Action Plan, an innovative strategy designed to address substance abuse through innovative prevention initiatives, increasing access to treatment, and effective enforcement.
U.S. Attorney Ihlenfeld coordinated the working group, which has been meeting since March 2015. The working group included nine subcommittees, led by the following individuals:
• Prevention. Jo Anne McNemar • Harrison County Family Resource NetworkNorth Central West Virginia leaders announce action plan to combat drug abuse
• Education. Superintendent Frank Devono • Monongalia County Schools
• Law Enforcement. Chief Ed Preston • Morgantown Police Department
• Medical. Pat Ryan, MA • CEO • William R. Sharpe, Jr. Hospital
• Treatment. Dr. Carl Sullivan • WVU Healthcare • Chestnut Ridge Center
• Treatment. Dr. James Berry • WVU Healthcare • Chestnut Ridge Center
• News Media. Aaron Williams • News Director • WBOY-TV
• News Media. John Miller • Executive Editor • Exponent Telegram
• Community Corrections. Ted Offut • Director • Marion County Day Report Center
• Recovery. Lou Ortenzio • Celebrate Recovery Clarksburg
• Business & Legislation. Barbara Evans Fleischauer • West Virginia House of DelegatesThe plan released today targets North Central West Virginia and is one part a larger initiative. A similar plan is already in place in the Northern Panhandle, and Ihlenfeld plans to create similar working groups throughout Northern West Virginia.
Anyone interested in additional information on the effort to combat drug abuse is encouraged to contact the United States Attorney’s Office for the Northern District of West Virginia at (304) 234-0100. Updates on the plan will be available through the U.S. Attorney’s official Twitter account @NDWVnews.
A complete copy of the United States Attorney’s Addiction Action Plan for North Central West Virginia is available here: Addiction Action Plan.
New York Man Convicted of Jewelers Store Robbery Following Jury TrialRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Jesse Brewer, age 40, of Jamaica, New York was convicted late yesterday of interference with commerce by robbery and use of a firearm during the commission of a crime of violence after a three-day jury trial in Harrisburg before U.S. District Court Judge William W. Caldwell.
According to United States Attorney Peter Smith, the jury returned with the verdict of guilty after approximately two hours deliberation. The charges were the result of a robbery that occurred on July 12, 2012 at White Jewelers in York, PA. Brewer, along with Jamell Smallwood and Timothy Forbes, robbed the store of more than fifty Rolex watches valued at over $500,000. In the course of the robbery, Brewer shot the owner of the store, severely injuring him. Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years in prison for his role in the robbery. Forbes of Allentown, Pennsylvania pleaded guilty and is awaiting sentencing. No sentencing date was set for Brewer.
This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown and New York Police Departments. The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New York Man Arrested for Attempting to Provide Material Support to ISILRead the Press Release
Defendant Repeatedly Attempted to Travel to the Middle East to Join Terrorist Group
A criminal complaint was unsealed today in the Eastern District of New York charging Ali Saleh, 22, of Queens, New York, with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Saleh was arrested earlier today at his residence in Queens and his initial appearance is scheduled for this afternoon before U.S. Magistrate Judge Roanne L. Mann of the Eastern District of New York.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department.
As set forth in court documents, in the last year, Saleh made multiple attempts to travel to the Middle East to join ISIL. In August 2014, he made a flight reservation to travel from New York’s John F. Kennedy International Airport (JFK) to Istanbul. A few days earlier, Saleh used his Twitter account to post, “I’m ready to die for the Caliphate, prison is nothing.” Saleh was unable to travel at that time, but continued to pursue his goal of traveling overseas to join ISIL. For example, in July 2015, Saleh made a flight reservation to travel from JFK to Cairo. On the same day, Saleh used his Twitter account to communicate with an ISIL facilitator who instructed followers to contact him “for hijrah advice to IS in Libya ONLY.” Saleh was denied boarding at JFK Airport by airline personnel. Over the span of the next two days, Saleh subsequently continued his attempts to travel to the Middle East by visiting Newark Liberty International Airport in New Jersey and Philadelphia International Airport, where he was again denied boarding. Saleh then made his way to an Amtrak station in Cleveland in an attempt to take a train to Toronto and travel to the Middle East from there. In a subsequent interview with law enforcement officers, Saleh indicated that were he not arrested, he would have continued to attempt to travel to the Middle East.
“According to the allegations in the complaint, Ali Saleh attempted to provide material support to ISIL and made repeated efforts to travel overseas to join their ranks,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Saleh was relentless in his attempts to travel to the Middle East to join a terrorist organization,” said Acting U.S. Attorney Currie. “We will continue to track down and prosecute individuals like Saleh before they are able to harm the United States and its allies.”
“The persistence of Saleh in his alleged attempts to travel overseas in order to ‘die for the Caliphate,’ did not match the dedication of New York’s Joint Terrorism Task Force (JTTF) to work quickly to identify and interrupt this threat,” said Assistant Director in Charge Diego Rodriguez. “We will continue to be vigilant in our attempts to proactively stop threats before harm can occur.”
“By his own words, Ali Saleh was willing to pledge allegiance to, and die for ISIL, an organization that has called for terrorist attacks against the United States,” said Commissioner Bratton. “Saleh’s attempts to travel to Syria and ISIL’s battlefields were halted by good intelligence and smart law enforcement. I commend the agents and detectives of the Joint Terrorism Task Force as well as the dedicated prosecutors at the office of the United States Attorney for the Eastern District of New York.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Joint Terrorism Task Force, the FBI’s Indianapolis Field Office and the New York City Police Department’s Intelligence Division. The case is being prosecuted by Assistant U.S. Attorney Saritha Komatireddy of the Eastern District of New York, with assistance provided by Trial Attorneys Lolita Lukose and Alison Daly of the National Security Division’s Counterterrorism Section.
Saleh Complaint
Navy Base Employee Sentenced in Death of Navy Police DetectiveRead the Press Release
PROVIDENCE, R.I. – Alan Bradley, 54, of Middletown, R.I., was sentenced today by U.S. District Court Judge Mary M. Lisi to five years probation, having been convicted at trial by a federal court jury of driving to endanger death resulting in the death of Navy Detective Frank Lema in September 2013.
U.S. District Court Judge Mary M. Lisi, who presided over the trial, ordered Bradley to serve the first year of his term of probation on home confinement with electronic monitoring and to perform 1,500 hours of community service. Bradley was also ordered to pay restitution to the estate of Detective Lema in the amount of $16,504.72.
The Government recommended to the court that the defendant be sentenced to serve 48 months in prison, a sentence which falls within the recommended guideline sentence for this matter of between 41-51 months incarceration.
The sentence imposed is announced by United States Attorney Peter F. Neronha; Leo S. Lamont, Special Agent in Charge of the Northeast Field Office of Naval Criminal Investigative Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to the government’s evidence presented at trial, Bradley, who was a civilian employee on Naval Station Newport, was operating a Navy vehicle on the base on September 26, 2013, when he struck and killed Detective Lema. Lema was standing outside of the Navy public safety building with a fellow Navy law enforcement officer when he was struck. After striking Detective Lima, Bradley’s vehicle continued to travel another 200 feet before stopping on a grassy embankment.
According to the government’s evidence, on at least six occasions between February 2011 and July 2013, Bradley’s personal physician warned Bradley not to drive because he was a risk to both himself and others due to a seizure disorder. The evidence also showed that Bradley was involved in a serious single car crash in 2011in Middletown in which his young son was a passenger. Bradley attributed his seizure disorder as a contributing factor to the cause of that accident.
The case was prosecuted by First Assistant United States Attorney Stephen G. Dambruch.
The case was investigated by Naval Criminal Investigative Service and the Rhode Island State Police.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Minnesota Man Pleads Guilty to Conspiracy to Provide Material Support to ISILRead the Press Release
Zacharia Yusuf Abdurahman, 20, of Columbia Heights, Minnesota, pleaded guilty to conspiring with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Andrew M. Luger of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division made the announcement.
“Zacharia Yusuf Abdurahman conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we remain committed to stemming the flow of foreign fighters abroad and bringing to justice those who attempt to provide material support to terrorists.”
“Zacharia Abdurahman is the third co-conspirator to plead guilty and admit in detail his longstanding efforts to join ISIL,” said U.S. Attorney Luger. “Despite being stopped by federal agents on his first attempt, Abdurahman continued to seek ways to join this terrorist group. We hope that Abdurahman’s guilty plea today, and those of Hanad Musse and Abdullahi Yusuf before him, deter others from planning to join ISIL.”
“The FBI will continue to fight terrorism recruitment and material support with every available resource,” said Special Agent in Charge Thornton. “We stand alongside our Somali community partners in Minnesota to prevent terror groups from targeting their youth.”
Abdurahman was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. Abdurahman pleaded guilty today before Senior U.S. District Judge Michael Davis of the District of Minnesota.
As admitted by the defendant in his guilty plea, between March and June 2014, Abdurahman became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. Abdurahman joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement and the feasibility of using fraudulent travel documents to travel to Syria.
As admitted by the defendant in his guilty plea, by June 2014, Abdurahman knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul International Airport. Nevertheless, Abdurahman continued to make preparations to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, on Nov. 6, 2014, Abdurahman and co-conspirators Mohamed Farah, Hamza Ahmed and Hanad Musse purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, Abdurahman purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. After being prevented by federal agents from boarding his flight, Abdurahman lied to federal agents about the true nature of his travel.
As admitted by the defendant in his guilty plea, after their failed November 2014 attempt to fly overseas, Abdurahman and co-conspirators Farah, Musse and Ahmed met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, Abdurahman willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico, and fly overseas to join ISIL using those false passports. On April 1, 2015, Abdurahman provided a passport photo of himself to an individual he believed would be traveling with him. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). On April 3, 2015, Abdurahman asked the CHS for the return of his passport photograph, fearing the number of co-conspirators involved in the plot to leave the United States for Syria increased the probability of getting caught by law enforcement. However, Abdurahman admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, Abdurahman was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria. Abdurahman on April 3, 2015, further provided $100 in U.S. currency to the CHS as a down payment for co-defendant Farah’s false passport which the defendant knew would be used by Farah to attempt to travel to Syria to join ISIL.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and John Docherty with assistance provided by the National Security Division's Counterterrorism Section.
Minersville Man Sentenced for Manufacturing and Dealing Explosive MaterialsRead the Press Release
Ryan Joseph Hribick, 34, of Minersville, Pennsylvania, was sentenced today to 43 months in prison for possession of unregistered firearms, manufacturing and dealing explosive materials, conspiracy to obstruct justice, and witness tampering. Hribick made, possessed, and sold improvised explosive devices ("IEDs"), including PVC pipes – some containing nails, screws, and/or rocks – and cardboard tubes, all center primed with flash powder.
After federal agents searched his home, Hribick instructed and conspired with others to destroy and conceal cardboard tubes and flash powder – which Hribick was using to manufacture IEDs – so as to keep that evidence from federal agents and the federal grand jury. In addition, Hribick attempted to influence the testimony of a federal grand jury witness to lie about their destruction and concealment of evidence.
In addition to the 43 month prison term, United States District Judge Robert F. Kelly ordered three years of supervised release, a $2,500 fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, the Maryland State Police, North Carolina State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms & Explosives . The case was prosecuted by Assistant United States Attorney Vineet Gauri.
Manhattan U.S. Attorney Announces Criminal Charges Against General Motors and Deferred Prosecution Agreement with $900 Million ForfeitureRead the Press Release
Loretta E. Lynch, the Attorney General of the United States, Anthony Foxx, the United States Secretary of Transportation, Preet Bharara, the United States Attorney for the Southern District of New York, Mark R. Rosekind, Administrator of the National Highway Traffic Safety Administration (“NHTSA”), Calvin L. Scovel, III, Inspector General of the United States Department of Transportation (“DOT-OIG”), Christy Goldsmith Romero, Special Inspector General of the Office of the Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the filing of criminal charges against General Motors Company (“GM” or the “Company”), an automotive company headquartered in Detroit, Michigan, that has designed, manufactured, assembled, and sold Chevrolet, Pontiac, and Saturn brand vehicles, among others. GM is charged with concealing a potentially deadly safety defect from its U.S. regulator, the National Highway Traffic Safety Administration (“NHTSA”), from the spring of 2012 through February 2014, and, in the process, misleading consumers concerning the safety of certain of GM’s cars. The defect consisted of an ignition switch that had been designed and manufactured with too-low torque resistance and could therefore move easily out of the “Run” position into “Accessory” or “Off” (the “Defective Switch”). When the switch moved out of Run, it could disable the affected car’s frontal airbags – increasing the risk of death and serious injury in certain types of crashes in which airbags were otherwise designed to deploy. The models equipped with the Defective Switch were the 2005, 2006, and 2007 Chevrolet Cobalt; the 2005, 2006, and 2007 Pontiac G5; the 2003, 2004, 2005, 2006, and 2007 Saturn Ion; the 2006 and 2007 Chevrolet HHR; the 2007 Saturn Sky; and the 2006 and 2007 Pontiac Solstice. To date, GM has acknowledged a total of 15 deaths, as well as a number of serious injuries, caused by the Defective Switch.
Mr. Bharara also announced a deferred prosecution agreement with GM (the “Agreement”) under which the Company admits that it failed to disclose a safety defect to NHTSA and misled U.S. consumers about that same defect. The admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement imposes on GM an independent monitor to review and assess policies, practices, and procedures relating to GM’s safety-related public statements, sharing of engineering data, and recall processes. The Agreement also requires GM to transfer $900 million to the United States by no later than September 24, 2015, and agree to the forfeiture of those funds pursuant to a parallel civil action also filed today in the Southern District of New York.
The criminal charges are contained in an Information (the “Information”) alleging one count of engaging in a scheme to conceal material facts from NHTSA and one count of wire fraud. If GM abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charges.
Attorney General Loretta E. Lynch said: “Every consumer has the right to expect that car manufacturers are taking their safety seriously. The Department of Justice is committed to ensuring that the products Americans buy are safe; that consumers are protected from harm; and that auto companies follow the law.”
Transportation Secretary Anthony Foxx said: “General Motors not only failed to disclose this deadly defect, but as the Department of Justice investigation shows, it actively concealed the truth from NHTSA and the public. Today’s announcement sends a message to manufacturers: Deception and delay are unacceptable, and the price for engaging in such behavior is high.”
Manhattan U.S. Attorney Preet Bharara said: “For nearly two years, GM failed to disclose a deadly safety defect to the public and its regulator. By doing so, GM put its customers and the driving public at serious risk. Justice requires the filing of criminal charges, detailed admissions, a significant financial penalty, and the appointment of a federal monitor. These measures are designed to make sure that this never happens again.”
NHTSA Administrator Mark R. Rosekind said: “Today’s action strengthens NHTSA’s efforts to protect the driving public. It sends a message not only to GM, but to the entire auto industry, that when it comes to safety, telling the full truth is the only option.”
DOT Inspector General Calvin L. Scovel, III, said: “To the families and friends of those who died and to those who were injured as a result of crashes related to GM’s defective ignition switches, I offer my deepest sympathies for your loss and my highest admiration for the strength you demonstrate every day. As is true for Secretary Foxx and the Department of Transportation, safety is and will remain the highest priority of my office, and we will continue to work relentlessly to ensure accountability throughout the Department and transportation sector. The OIG is committed to working with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations. The efforts of this dedicated multi-agency team and the agreement reached with General Motors, and that with Toyota in March 2014, must continue to serve as a clarion call to all auto manufacturers and their suppliers of the need to be vigilant and forthcoming to keep the public safe.”
SIGTARP Special Inspector General Christy Goldsmith Romero said: “General Motors’ criminal conduct found by SIGTARP and our law enforcement partners defies comprehension. Our investigation uncovered that GM learned about a life-threatening ignition switch defect that would cause air bags not to inflate, but concealed the deadly safety defect from its regulator, and from people buying used cars from GM dealers. The worst part about this tragedy is that it was entirely avoidable. GM could have significantly reduced the risk of this deadly defect by improving the key design for less than one dollar per vehicle but GM chose not to because of the cost. Americans stepped up and bailed out General Motors with $50 billion; and General Motors must step up and make substantial corporate changes to prevent anything like this from happening again. SIGTARP commends U.S. Attorney Bharara for bringing these charges and standing united in the fight against TARP-related crime.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “GM concealed a safety defect from consumers and regulators, which put drivers at risk. The resolution of this case shows that safety should never take a backseat to expediency.”
According to the allegations in the Information, as well as other documents filed today in Manhattan federal court, including the Statement of Facts:
From the spring of 2012 through February 2014, GM deceived consumers and failed to make a required disclosure to NHTSA, its U.S. regulator, by regarding the connection that certain of its personnel had identified between the Defective Switch and airbag non-deployment. GM also falsely represented to consumers that vehicles equipped with the Defective Switch posed no safety concern.
Early Knowledge of the Defective Switch
GM engineers knew before the Defective Switch even went into production in 2002 that it was prone to easy movement out of the Run position. Testing of a prototype showed that the torque return between the Run and Accessory positions fell below GM’s own internal specifications. But the engineer in charge of the Defective Switch approved its production anyway.
In 2004 and 2005, as GM employees, media representatives, and GM customers began to experience sudden stalls and engine shutoffs caused by the Defective Switch, GM considered fixing the problem. However, having decided that the switch did not pose a safety concern, and citing cost and other factors, engineers responsible for decision-making on the issue opted to leave the Defective Switch as it was and simply promulgate an advisory to dealerships with tips on how to minimize the risk of unexpected movement out of the Run position. GM even rejected a simple improvement to the head of the key that would have significantly reduced unexpected shutoffs at a price of less than a dollar a car.
At the same time, in June 2005, GM made public statements that, while acknowledging the existence of the Defective Switch, gave assurance that the defect did not pose a safety concern.
GM’s Knowledge that the Defective Switch Causes Airbag Non-Deployment
By the spring of 2012, GM knew that the Defective Switch presented a safety defect because it could cause airbag non-deployment in certain GM cars. Specifically, GM personnel investigating the cause of a series of airbag non-deployment incidents learned that the Defective Switch could cause frontal airbag non-deployment in at least some model years of the Cobalt, and were aware of several fatal incidents and serious injuries that occurred as a result of accidents in which the Defective Switch may have caused or contributed to airbag non-deployment. This knowledge extended well above the ranks of investigating engineers to certain supervisors and attorneys at the Company.
GM’s Failure to Disclose the Defect and Recall Affected Cars
Yet not until approximately 20 months later, in February 2014, did GM first notify NHTSA and the public of the connection it had identified between the Defective Switch and airbag non-deployment incidents. The Company thus egregiously disregarded NHTSA’s five-day regulatory reporting requirement for safety defects.
Moreover, for much of the period during which GM failed to disclose this safety defect, it not only failed to correct its June 2005 assurance that the Defective Switch posed no safety concern but also actively touted the reliability and safety of cars equipped with the Defective Switch, with a view to promoting sales of used GM cars. Although GM sold no new cars equipped with the Defective Switch during this period, GM dealers were still, from in or about the spring of 2012 through in or about the spring of 2013, selling pre-owned Chevrolet, Pontiac, and Saturn brand cars that would later become subject to the February 2014 recalls. These sales were accompanied by certifications from GM, assuring the unwitting consumers that the vehicles’ components, including their ignition systems and keys, met all safety standards.
GM’s delay in disclosing the defect at issue was the product of actions by certain personnel responsible for shepherding safety defects through GM’s internal recall process, who delayed the recall until GM could fully package, present, explain, and handle the deadly problem. Rather than move swiftly and efficiently toward recall of at least the population of cars known to be affected by the safety defect and thus certainly destined for recall, GM personnel took affirmative steps to keep the Company’s internal investigation into airbag non-deployment caused by the Defective Switch “offline” – outside of GM’s regular recall process.
Moreover, on at least two occasions while the Defective Switch condition was well known by some within GM but not disclosed to the public or NHTSA, GM personnel made incomplete and therefore misleading presentations to NHTSA assuring the regulator that GM would and did act promptly, effectively, and in accordance with its formal recall policy to respond to safety problems – including airbag-related safety defects.
GM’s Acceptance of Responsibility and Cooperation in the Government Investigation
In February 2014, GM finally conducted a recall of approximately 700,000 vehicles affected by the Defective switch. By March 2014, the recall population had grown to more than 2 million vehicles.
Since February 2014 and the inception of this federal criminal investigation, GM has taken exemplary actions to demonstrate acceptance and acknowledgement of responsibility for its conduct. GM, among other things, conducted a swift and robust internal investigation, furnished the Government with a continuous flow of unvarnished facts gathered during the course of that internal investigation, voluntarily provided, without prompting, certain documents and information otherwise protected by the attorney-client privilege, provided timely and meaningful cooperation more generally in the federal criminal investigation, terminated wrongdoers, and established a full and independent victim compensation program that has to date paid out hundreds of millions of dollars in awards.
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Mr. Bharara praised the outstanding investigative work of SIGTARP, DOT-OIG, NHTSA, and the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Bonnie Jonas, Deputy Chief of the Criminal Division, and Assistant U.S. Attorneys Sarah Eddy McCallum and Edward A. Imperatore are in charge of the prosecution, and Assistant U.S. Attorney Jason H. Cowley, Chief of the Money Laundering and Asset Forfeiture Unit, is responsible for the forfeiture aspects of the case.
Man Sentenced in Connection with Rope Tied Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
WASHINGTON – U.S. District Court Judge Michael P. Mills of the Northern District of Mississippi today sentenced Graeme Phillip Harris to six months in prison and one year supervised release for helping place a rope around the neck of the James Meredith statue on the University of Mississippi campus.
The incident occurred in the early morning hours of Feb. 16, 2014. Court documents show that Harris and others hung a rope and an outdated version of the Georgia state flag—which prominently depicts the Confederate battle flag—around the neck of the Meredith statue, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African-American student.
Harris was indicted by a federal grand jury on March 27 on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African-American students because of their race or color. On June 18, he pleaded guilty to the threats charge, pursuant to a plea agreement.
“Those who would use threats and intimidation to spread fear and hatred through our schools and workplaces should know that the Department of Justice will vigorously prosecute these cases,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “No one should have to endure threats or intimidation because of their race or the color of their skin.”
“The United States Attorney’s Office for the Northern District of Mississippi greatly appreciates the assistance of the Department of Justice Civil Rights Division, the FBI, and the University of Mississippi in the investigation and prosecution of this case,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi.
“The FBI is committed to the protection of the civil rights of all citizens and will continue to investigate allegations of crime motivated by hate,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “I’m hopeful that this sentencing will clarify the consequences for anyone contemplating senseless, hurtful actions such as this.”
The investigation is ongoing.
This case is being investigated by the Oxford Resident Agency of the FBI’s Jackson, Mississippi, Division’s and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Sentenced in Connection with Rope Tied Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
U.S. District Court Judge Michael P. Mills of the Northern District of Mississippi today sentenced Graeme Phillip Harris to six months in prison and one year supervised release for helping place a rope around the neck of the James Meredith statue on the University of Mississippi campus.
The incident occurred in the early morning hours of Feb. 16, 2014. Court documents show that Harris and others hung a rope and an outdated version of the Georgia state flag—which prominently depicts the Confederate battle flag—around the neck of the Meredith statue, with the intent to threaten and intimidate African-American students and employees at the university. The iconic statue honors Meredith’s role as the university’s first African-American student.
Harris was indicted by a federal grand jury on March 27 on one count of conspiracy to violate civil rights and one count of using a threat of force to intimidate African-American students because of their race or color. On June 18, he pleaded guilty to the threats charge, pursuant to a plea agreement.
“Those who would use threats and intimidation to spread fear and hatred through our schools and workplaces should know that the Department of Justice will vigorously prosecute these cases,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “No one should have to endure threats or intimidation because of their race or the color of their skin.”
“The United States Attorney’s Office for the Northern District of Mississippi greatly appreciates the assistance of the Department of Justice Civil Rights Division, the FBI, and the University of Mississippi in the investigation and prosecution of this case,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi.
“The FBI is committed to the protection of the civil rights of all citizens and will continue to investigate allegations of crime motivated by hate,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “I’m hopeful that this sentencing will clarify the consequences for anyone contemplating senseless, hurtful actions such as this.”
The investigation is ongoing.
This case is being investigated by the Oxford Resident Agency of the FBI’s Jackson, Mississippi, Division’s and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Man Pleads Guilty to Significant Heroin and Cocaine Conspiracy Involving Mexican Drug CartelRead the Press Release
The United States Attorney's Office for the District of Vermont stated today that David Baez Garcia, age 49, a citizen of the Dominican Republic, has pleaded guilty in front of Chief Judge Christina Reiss in the U.S. District Court in Burlington to a conspiracy to distribute five kilograms or more of cocaine, 100 grams or more of heroin and oxycodone from in or about Summer 2009 through in or about June 2010.
According to documents filed with the Court and testimony from a jury trial that took place starting on September 9, 2015, Baez Garcia, who also used the names Josue Ortiz and Jose Altagracia Ramirez Beltre, came to Rutland, Vermont in 2008. With the assistance of Alexis Jimenez and Florencio Reyes, who he met in New Hampshire, Baez Garcia brought hundreds of grams of heroin and multiple kilograms of cocaine into Vermont during the time frame of the conspiracy. Rauddys Barias Tejeda, of Providence, Rhode Island, supplied the heroin, which in total reached kilogram levels, as well as some of the cocaine. In 2009, Baez Garcia also received multi-kilogram shipments of cocaine from two brothers-in-law, Canciano Marquez Mayorga and Candelario Tovar Garcia, who, in turn, were receiving the cocaine from a Mexican drug cartel. After obtaining the cocaine from across the United States-Mexican border in Arizona, Marquez Mayorga and Tovar Garcia, then residing in Manchester, New Hampshire, had it shipped across the country in tractor trailers for redistribution in Vermont and New Hampshire, among other locations. The Vermont group received the final shipment of 10 kilograms of cocaine, worth in excess of $300,000, in late 2009. It traveled across country via tractor trailer to Pawtucket, Rhode Island. Thereafter, it was stored in Worcester, Massachusetts en route to Vermont. Law enforcement seized three kilograms of this shipment during a traffic stop in Massachusetts on December 15, 2009 when it was being transported to Vermont.
As the United States Attorney’s Office stated in its filings, none of these men had any connection to Vermont prior to engaging in drug trafficking here. “Collectively, these men preyed upon addicted individuals in the Rutland area, as well as in other places, for their own profit.”
Baez Garcia pleaded guilty to the charged conspiracy five days into the jury trial. Thereafter, the jury trial was discontinued. According to the plea agreement filed with the Court, Baez Garcia has agreed to serve between fifteen and eighteen years in jail for his crime.
As a result of the broader investigation, the United States Attorney’s Office has convicted seventeen defendants associated with this drug conspiracy, including Baez Garcia. This includes Alexis Jimenez, age 48, of Nashua, New Hampshire, Florencio Reyes, age 46, of Worcester, Massachusetts, Canciano Marquez Mayorga, age 29, Candelario Tovar Garcia, age 43, and Rauddys Barias Tejeda, age 43.
The United States also has convicted Justine Durfee, Jessica Lever, Thomas Morrissey, Peter Stout, Samantha Thuman, and Danielle Jankowski, of Rutland, Vermont. These individuals were involved in supporting the drug conspiracy by delivering drugs, providing housing, registering vehicles, or doing other tasks related to the conspiracy for Baez Garcia. In addition, the United States has convicted Edgar Corona and Ramiro Reyes of Worcester, Massachusetts, and Roberto Melendez and Elijah Kleinhans, of Lebanon, New Hampshire for their roles in delivering drugs or otherwise assisting the drug conspiracy. Letitia Carstensen, of Milton, Vermont, also was convicted of drug charges related to her involvement into drug distribution with her then-boyfriend, Alexis Jimenez.
This case was investigated by the Drug Enforcement Administration with assistance from the Southern Vermont Drug Task Force, the Vermont State Police, and the Burlington Police Department. United States Attorney Eric Miller commends the exemplary work of the federal, state and local law enforcement agencies investigating this matter.
The United States was represented in this matter by Assistant U.S. Attorney Heather Ross. Assistant United States Attorney Timothy C. Doherty, Jr., also represented the United States at the trial against David Baez Garcia. Baez Garcia is represented by David Williams, Esq. and Brooks McArthur, Esq. of Burlington.
Los Lunas Woman Sentenced to Two Years in Federal Prison for Aggravated Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Mitzi Marsh, 57, of Los Lunas, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to two years in prison followed by one year of supervised release for her conviction on conspiracy and identity theft charges. Marsh also was ordered to pay $90,938.65 in restitution to the businesses that were victims of her criminal conduct.
Marsh and her co-defendants, Jeremy Bacuccini, 37, of Albuquerque and Reese Chancellor, 33, of Santa Fe, N.M., were indicted in Nov. 2012, on identity theft, aggravated identity theft, and conspiracy charges. According to the 11-count indictment, the three co-conspirators unlawfully used the identities of others to commit crimes in 2007 and 2008. The indictment alleged that the three co-conspirators used counterfeit access devices, like credit cards, opened in the names of others and without their permission to fraudulently obtain items valued at more than $1,000.00. Court filings indicate that the co-conspirators were responsible for $124,708.71 in losses sustained by the retailers.
Marsh pled guilty to Count 10 of the indictment, charging her with aggravated identity theft on April 29, 2015. In entering her guilty plea, Marsh admitted that on Dec. 23, 2007, she fraudulently opened a Costco account using a fake ID, for purchases totaling $6,148.32. However, under the terms of her plea agreement, Marsh was required to pay restitution based on all losses suffered as a result of all of Marsh’s criminal conduct.
On Aug. 2, 2013, Chancellor entered guilty pleas to Counts 3 and 7 of the indictment, charging him with conspiracy to commit identity theft, and Count 8, charging him with identity theft. In his plea agreement, Chancellor admitted that, while working at an Albuquerque apartment complex in Oct. 2007, he obtained unauthorized access to tenant files and used the names and identifiers of the tenants to make fake IDs and counterfeit checks. Chancellor further admitted that Bacuccini and Marsh used the fake IDs and counterfeit checks to make fraudulent purchases at numerous retailers, including Home Depot, Zales, Lowe’s, Costco, Sam’s Club and Sears, valued in aggregate at $124,708.71. Chancellor was sentenced on Nov. 7, 2013, to five months in prison followed by three years of supervised release. Chancellor was also ordered to pay $127,705.71 in restitution to the businesses that were victims of his criminal conduct.
Bacuccini pleaded guilty on June 17, 2013, to Count 6 of the indictment, charging him with aggravated identity theft. In his plea agreement, Bacuccini admitted that, in Dec. 2007 and Jan. 2008, he used the names and personal identifiers of four individuals, which he obtained from Chancellor, to open accounts at businesses in Albuquerque and Santa Fe and make purchases. He also admitted using fake checks in the names of two of the individuals to make purchases at Albuquerque businesses. Bacuccini also admitted making fake checks using bank account numbers provided by Marsh, who worked at a physician’s office. Bacuccini acknowledged that he and Chancellor are jointly responsible for $30,431.70 in losses sustained by retailers as a result of their criminal conduct. Bacuccini was sentenced on Sept. 9, 2013, to two years in prison followed by one year of supervised release. Bacuccini was also ordered to pay $33,431.70 in restitution to the businesses that were victims of his criminal conduct.
This case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorneys Kimberly A. Brawley and Cynthia L. Weisman.
Lancaster Man Sentenced for Manufacturing MethamphetamineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Michael Jachimiak, 38, of Lancaster, N.Y., who was convicted of conspiracy to manufacture methamphetamine, was sentenced to 57 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between April 2014 and June 19, 2014, Jachimiak conspired to manufacture and use methamphetamine with others, including codefendant John Ruth, at 97 Field Street in Lancaster where he resided.
In the early morning hours of June 19, 2014, officers from the Lancaster Police Department conducted a trash pull at the residence and seized approximately 736 spent pseudophedrine blister packs, and receipts for the purchase of precursor materials used to manufacture methamphetamine. Later that day, officers and Drug Enforcement Administration special agents executed a NYS search warrant at the residence. Officers seized 3-hydrocholoric acid gas generators, hypodermic needles containing suspected liquid methamphetamine, white, crystalline substance weighing approximately 43.27 grams, Mason jars containing “one-pot” methamphetamine laboratory residue, 1 Coleman fuel bottle, 1 can of Zippo acid, 2 bottles of ammonium nitrate, and other precursors used to manufacture methamphetamine.
Jachimiak and Ruth manufactured methamphetamine numerous times at the residence. At various times, Ruth arranged for other individuals to purchase pseudophedrine tablets and other materials needed to manufacture methamphetamine. Ruth used some of the methamphetamine and sold some of it. The substances seized were sent to the DEA Northeast Regional Laboratory for analysis, which confirmed that the substances contained methamphetamine residue.
John Ruth was sentenced to 57 months in prison.
The sentencing 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 Division and the Lancaster Police Department, under the direction of Chief Gerald Gill.
Lackawanna Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Reginald Royal, Jr., 23, of Lackawanna, NY, pleaded guilty to possession with intent to distribute, and distribution of, crack cocaine within 1,000 feet of public housing property, before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum penalty of 40 years in prison, a fine of $2,000,000, or both."As this case shows, those who choose to turn public housing into a site for illegal drug dealing will pay a very heavy price upon conviction,” said U.S. Attorney Hochul. “We applaud the residents of this project for taking a stand against such criminals."
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on July 9, 2014, the defendant sold crack cocaine to a confidential informant working with Lackawanna Police Officers. The controlled purchase occurred within 1,000 feet of the Gates Housing Project in Lackawanna, The housing facility is owned by the Lackawanna Municipal Housing Authority.
On July 17 and July 18, 2014, Royal again sold crack cocaine base to a confidential informant. The controlled purchases occurred within 1,000 feet of the Baker Homes Housing Project in Lackawanna, another housing facility owned by the Lackawanna Municipal Housing Authority.
Royal was arrested along with 17 others in December 2014. The defendant is the second defendant to be convicted.
The plea is the result of culmination of an investigation by the Federal Bureau of Investigation and the Lackawanna Police Department, under the direction of Chief James Michel.Sentencing will be scheduled at a later date.
Kodiak Man Sentenced to 10 Years in Prison for Drug TraffickingRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kodiak man was sentenced in federal court in Anchorage for one count of trafficking narcotics. Eric McDaniel, 45, of Kodiak, had previously pled guilty on December 2, 2014, to one count of possession with intent to distribute over 500 grams of a mixture and substance containing methamphetamine, and a mixture and substance containing heroin.
McDaniel was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 120 months in prison.
According to Assistant U.S. Attorney Bryan Schroder, McDaniel was found on April 19, 2014, in a hotel room in Kodiak, along with 620 grams (1.3 pounds) of methamphetamine, and 46 grams of heroin. The methamphetamine was packaged in 1 ounce bags, consistent with distribution. McDaniel admitted he intended to distribute the drugs.
Ms. Loeffler commends the FBI and the Kodiak Police Department for the investigation of this case. Tim Putney, the head of the Kodiak Police Department’s Major Crimes and Drug Enforcement Units added, “This case is an excellent example of the power of partnerships between the public, local and federal law enforcement officials. The case started with tips from Kodiak residents and with support from the FBI, our Drug Enforcement Unit detectives took over 25 ounces of meth and just under 2 ounces of high-grade heroin off the streets. We have every reason to believe that amount of drugs in our community would have led to other types of criminal activity. Mr. McDaniel apparently thought he could run from his previous drug felony convictions and continue his illegal business here in Kodiak. He was proven wrong.”
Justice Department Awards over $97 Million to Improve Public Safety and Victim Services for American Indians and Alaska NativesRead the Press Release
JUSTICE DEPARTMENT AWARDS OVER $97 MILLION TO IMPROVE PUBLIC SAFETY AND VICTIM SERVICES FOR AMERICAN INDIANS AND ALASKA NATIVES
LOCAL ARIZONA TRIBAL AWARDS
WASHINGTON, DC. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, members of Congress and Administration officials.
DISTRICT AWARDS:
Colorado River Indian Tribes $915,168
Gila River Indian Community $1,311,992
Hualapai Detention and Rehabilitation Center $1,037,227
Navajo Nation $299,408
Quechan Indian Tribe $436,260
Salt River Pima-Maricopa Indian Community $511,080
San Carlos Apache Tribe $884,547
Tohono O'odham Nation $570,042
Yavapai-Prescott Indian Tribe $202,098
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
“The awards made to tribes in the District of Arizona today recognize the critical need to support our Indian Communities,” said U.S. Attorney John S. Leonardo. “The $6.1 million in federal grant monies will support our on-going effort to build safer communities by funding much needed services for community policing, public safety, tribal youth programs, violence against women prevention, and alcohol and substance abuse treatment.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
A listing of today’s awards is available at www.justice.gov/tribal/.
A fact sheet on CTAS is available at /media/791821/dl?inline.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
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RELEASE NUMBER: 2015-080_ CTA_2015_Grants
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Awards over $97 Million to Improve Public Safety and Victim Services for American Indians and Alaska NativesRead the Press Release
WASHINGTON, DC. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.
Among the tribes in the Northern District of California are the Coyote Valley Band of Pomo Indians, Hoopa Valley Tribe, Hopland Band of Pomo Indians, Round Valley Indian Tribes, and the Yurok Tribe. Combined, the tribes will receive a total of $5,244,787 for a number of programs focusing on a wide range of issues such as public safety and community policing, justice systems and correctional alternatives, as well as reduction of violence and juvenile healing.
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
“The programs funded by these awards can be extremely effective in reducing violence and promoting a positive and productive relationship between Native Americans and law enforcement,” said Acting United States Attorney Brian J. Stretch. “The dramatic increase of funds granted directly to area tribes emphasizes the Justice Department's support of local efforts to reduce violence and promote public safety.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of today’s awards is available at www.justice.gov/tribal/.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Justice Department Announces Two Banks Reach Resolutions under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that St. Galler Kantonalbank AG (SGKB) and E. Gutzwiller & Cie, Banquiers, have reached resolutions under the department’s Swiss Bank Program. These banks will collectively pay penalties totaling more than $11 million.
“Today’s agreements signify the clear recognition by Swiss financial institutions of the need to resolve their criminal exposure in the United States in order to successfully operate in the global marketplace,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Banks reaching agreements with the department understand that they must accept full responsibility for their criminal conduct, pay appropriate penalties in accordance with the established terms of the Swiss Bank Program, and provide full, complete and timely cooperation with respect to those individuals and other entities who facilitated the concealment of U.S.-related accounts and the evasion of U.S. tax obligations.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
St. Galler Kantonalbank AG (SGKB) has its headquarters in the Canton of St. Gallen, Switzerland. It was founded in 1868 to provide credit services to Cantonal residents and to assist in the development of the regional economy. By Cantonal law, the Canton of St. Gallen is SGKB’s majority shareholder, owning 54.8 percent of SGKB’s shares.
SGKB offered a variety of traditional Swiss banking services that it knew could assist, and that did in fact assist, U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). These services included hold mail, as well as code name or numbered account services. These services helped U.S. clients eliminate the paper trail associated with the undeclared assets and income they held at SGKB in Switzerland. By accepting and maintaining such accounts, SGKB assisted some U.S. taxpayers in evading their U.S. tax obligations.
SGKB agreed to open accounts for at least 58 U.S. taxpayers who had left other banks being investigated by the department without ensuring that each such account was compliant with U.S. tax law from their inception at SGKB. SGKB also issued checks, including series of checks, in amounts of less than $10,000 that were drawn on accounts of U.S. taxpayers or structures in at least nine cases, totaling $3 million. For example, one U.S. taxpayer made 31 wire transfers for just less than $10,000 between June 2012 and December 2012. SGKB further processed large cash withdrawals totaling approximately $5.8 million for at least 14 U.S. taxpayers at or around the time the clients’ accounts were closed, even though SGKB knew, or had reason to know, the accounts contained undeclared assets.
Since Aug. 1, 2008, SGKB held accounts for 41 entities or structured accounts. Eight of these accounts came to SGKB as part of the acquisition of business from Hyposwiss Privatbank AG, of which SGKB formerly was the parent company. Of the remaining 33 entities, 18 were incorporated at or around the time their SGKB accounts were opened. These entities were incorporated in Switzerland, Liechtenstein, St. Vincent and the Grenadines, the United States, Ireland, Panama, Haiti and Belize.
In August 2008, SGKB mandated that no new funds would be accepted from U.S. residents without a signed IRS Form W-9. However, certain executives had full discretion and authority to make exceptions to this policy, in keeping with SGKB’s general bank policy of permitting flexibility in its directives. One executive first requested the authority to make a specific exception because he already had agreed to accept a “pipeline” of problematic U.S.-related accounts from UBS and wanted to keep his word to his former UBS colleague. This “pipeline” consisted of six U.S.-related accounts with approximately $9.2 million in assets under management. This executive granted another significant exception from this policy in connection with clients of an external asset manager. At least 72 accounts with approximately $150 million in assets under management were opened at an SGKB subsidiary between late October and December 2008 without a Form W-9 as an exception to SGKB’s policy. The majority of these accounts were transferred from UBS.
Since Aug. 1, 2008, SGKB held a total of 626 U.S.-related accounts with approximately $303 million in assets under management. SGKB will pay a penalty of $9.481 million.
E. Gutzwiller & Cie, Banquiers, was founded in 1886 and is headquartered in Basel, Switzerland. This entity is affiliated with two asset managing entities in Geneva and Zurich, Gutzwiller SA Geneve and Gutzwiller AG Zurich, respectively (collectively Gutzwiller).
Of the 128 U.S.-related accounts at Gutzwiller, approximately 96 used hold mail services. Gutzwiller also opened and maintained 11 U.S.-related accounts held by non-U.S. entities, such as a Panama foundation or a British Virgin Islands corporation, with the knowledge that a U.S. person was the true beneficial owner of assets. With respect to some of those 11 accounts, the entity properly identified the U.S. beneficial owners of the assets for Swiss “Know Your Customer” rules, but Gutzwiller’s IRS Forms W-8BEN falsely declared that the beneficial owner of the account was not a U.S. person. The false Forms W-8BEN thus allowed the true ownership of the accounts to be concealed.
In addition, Gutzwiller accepted an account from a U.S. citizen and resident who presented a U.S. passport at the account opening in 1992. At various times, the U.S. client refused to sign a Form W-9, prohibited anything relating to the account from being reported to the IRS or other U.S. governmental authority, and refused to respond to Gutzwiller’s questions about whether the account was declared to the IRS. Although Gutzwiller did not use code names or numbers to communicate with clients, the U.S. client communicated with Gutzwiller by signing communications with an identifying number. Beginning in 2009, Gutzwiller began to urge the U.S. client to close the account. Over approximately the next year, the U.S. client began liquidating the account by withdrawing large amounts of cash in person in the form of U.S. dollars, Swiss francs, Euros and U.S. travelers checks. Gutzwiller also honored the U.S. client’s requests to prepare numerous checks written in amounts below $10,000, which the U.S. client then picked up at Gutzwiller. In late 2010, Gutzwiller declined a request to liquidate remaining funds in the account in a similar manner and informed the U.S. client that it would only close the account through a single payment in the form of a cash withdrawal, a single check or a wire transfer. The account was closed in 2011 with a wire transfer of more than $3 million to another Swiss bank, without the U.S. client coming into compliance with U.S. tax obligations. The U.S. client later voluntarily disclosed the account at Gutzwiller and the other Swiss bank to the IRS.
Since Aug. 1, 2008, Gutzwiller held a total of 128 U.S.-related accounts with a high value of approximately $271 million. Gutzwiller will pay a penalty of $1.556 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“The cumulative penalties the Swiss Bank Program has generated to date are extraordinary,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “However, a significant element of the program is the highly-detailed account and transactional data that has been provided to IRS specifically for law enforcement purposes. We will continue to use this information to vigorously pursue U.S. taxpayers who may still be trying to illegally conceal offshore accounts, ensuring we are all playing by the same rules.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Kimberle E. Dodd and Kathleen E. Lyon, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Joint Task Force Investigation Leads to Arrests for Online Solicitation ChargesRead the Press Release
CORPUS CHRISTI, Texas – Three local men have been charged in separate, but similar cases following a joint investigation conducted by the FBI, Homeland Security Investigations (HSI) and Corpus Christi Police Department – Internet Crimes Against Children Task Force (CCPD-ICAC), announced U.S. Attorney Kenneth Magidson.
Taylor Alan Mills, 29, and Christopher Alan Rue, 39, both of Rockport, and James Robert Kirkland, 48, of Corpus Christi, were all charged separately by criminal complaint this week for online solicitation of a minor. Mills and Kirkland made their initial appearance Wednesday afternoon before U.S. Magistrate Judge B. Janice Ellington, at which time they were ordered temporarily into custody pending further criminal proceedings. Rue is expected to make his initial appearance this afternoon.
Each criminal complaint alleges the men were communicating with a person they believed was the mother of two minor female children – ages 14 and 11. In reality, the men were actually talking to an undercover officer. Each man expected to meet and engage in sexual contact with the minors, according to the charges. They were arrested as they arrived at the designated meeting place.
“CCPD-ICAC is proud to have partnered with HSI, FBI and the U.S. Attorney’s Office on this most recent operation,” said Captain Dave Cook. “We continually strive to protect our great community and maintain a safe environment for our children. We take Internet safety seriously and will continue to remain diligent in our pursuit of online predators.”
The cases will be prosecuted by Assistant U.S. Attorney Hugo R. Martinez and were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is an allegegation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Jamestown Woman Arrested on Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Alicia Wilson, 37, of Jamestown, NY, was arrested and charged by criminal complaint with access device fraud. The charge carries a penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie Grisanti, who is handling the case, stated that according to the complaint, Wilson, an in-home health care aid, applied for credit cards in the names of the elderly couple she cared for. The defendant used the credit cards online and at local retail establishments in Jamestown and Erie, Pennsylvania, and withdrew cash from local banks.
Wilson made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released.
The criminal complaint is the result of an investigation by the United States Postal Inspection Service under the direction of Acting Inspector in Charge James Buthorn.
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.Interior, Justice Departments Announce $940 Million Landmark Settlement with Nationwide Class of Tribes and Tribal EntitiesRead the Press Release
Ramah Navajo Chapter v. Jewell Resolves Historic Contract Support Cost Lawsuit with Tribes
The U.S. Department of Justice and the U.S. Department of the Interior (Interior) today announced a $940 million proposed settlement with a nationwide class of Native American Tribes and tribal entities that, if approved by the federal district court, would resolve a 25-year-old legal dispute related to contract support costs for tribal agencies. The proposed settlement would address claims that the United States contracted with tribes to run programs but did not pay the full amounts required by law.
“This landmark settlement represents another important step in the Obama Administration’s efforts to turn the page on past challenges in our government-to-government relationship with tribes,” said Interior Secretary Sally Jewell. “Tribal self-determination and self-governance will continue to be our North Star as we navigate a new chapter in this important relationship and we are committed to fully funding contract support costs so that tribal contracting can be more successful. Congress can and should make this happen. Today’s announcement resolves past claims and allows money wrapped up in litigation to be used more productively.”
The proposed settlement, announced today by Interior Secretary Jewell, Assistant Secretary for Indian Affairs Kevin Washburn and Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, would address claims that the government contracted with tribes and tribal agencies to run Bureau of Indian Affairs (BIA) programs like law enforcement, forest management, fire suppression, road maintenance, housing, federal education and other support programs, but failed to appropriate sufficient funds to pay the costs under the agreements. Native American tribal agencies manage these programs under the Indian Self-Determination Act of 1975.
“The Department of Justice is pleased that the parties have reached an agreement to finally resolve this litigation that has spanned four administrations,” said Principal Deputy Assistant Attorney General Mizer. “This agreement was long in the making – reached only after years of complex negotiations – and both sides can be proud of the result.”
This proposed settlement was filed yesterday in U.S. District Court in Albuquerque, New Mexico, and will require court approval. The proposed settlement would resolve the government’s liability and avoid years of tedious contract-by-contract litigation that would require tens of thousands of hours of work by federal and tribal attorneys as well as expert auditors and accountants.
The claims arose because of a mismatch between federal self-determination laws and available appropriations. While the federal government has signed contracts that provided for certain amounts to cover administrative costs of implementing contracts – such as workers’ compensation costs for tribal employees – Congress capped appropriated funds available to pay for these costs. This funding gap was one of the sources of the claims, which were raised in a class action lawsuit filed in 1990.
“Time and again, we have seen that when a tribal government runs a federal program, the program is more successful and more responsive to the tribal community,” said Assistant Secretary Washburn. “Today’s proposed settlement, together with President Obama’s request for full, mandatory funding of tribal contract support costs in the future, removes one of the significant obstacles to tribal self-determination and self-governance. Tribes can now be confident that the federal government will pay sufficient costs to allow them to be successful in running federal programs.”
In 2012, the issue reached the Supreme Court, which ultimately agreed with the Tribes that the government was liable for the payments, regardless of whether Congress had appropriated adequate funds. Since 2012, the United States has been negotiating with tribal entities to find a fair and efficient resolution of this dispute and to pay the money owed.
In the president’s fiscal year 2016 budget request to Congress for the Departments of the Interior and Health and Human Services, the administration proposed a long-term solution to this persistent problem: mandatory, non-discretionary funding, beginning in fiscal year 2017, for contract support costs.
The proposed settlement marks another significant effort by the Obama Administration to address long-running litigation concerning federal policy in Indian Country, so that Tribes and the federal government can enjoy a more fruitful and constructive relationship in the future. Since 2010, the Departments of Justice and the Interior have settled the Cobell class action lawsuit, and more than 80 similar lawsuits brought by various American Indian tribes, alleging breach of trust for federal mismanagement of their financial assets and natural resources.
Interior, Justice Departments Announce $940 Million Landmark Settlement with Nationwide Class of Tribes and Tribal EntitiesRead the Press Release
WASHINGTON – The U.S. Department of Justice and the U.S. Department of the Interior (Interior) today announced a $940 million proposed settlement with a nationwide class of Native American Tribes and tribal entities that, if approved by the federal district court, would resolve a 25-year-old legal dispute related to contract support costs for tribal agencies. The proposed settlement would address claims that the United States contracted with tribes to run programs but did not pay the full amounts required by law.
“This landmark settlement represents another important step in the Obama Administration’s efforts to turn the page on past challenges in our government-to-government relationship with tribes,” said Interior Secretary Sally Jewell. “Tribal self-determination and self-governance will continue to be our North Star as we navigate a new chapter in this important relationship and we are committed to fully funding contract support costs so that tribal contracting can be more successful. Congress can and should make this happen. Today’s announcement resolves past claims and allows money wrapped up in litigation to be used more productively.”
The proposed settlement, announced today by Interior Secretary Jewell, Assistant Secretary for Indian Affairs Kevin Washburn and Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, would address claims that the government contracted with tribes and tribal agencies to run Bureau of Indian Affairs (BIA) programs like law enforcement, forest management, fire suppression, road maintenance, housing, federal education and other support programs, but failed to appropriate sufficient funds to pay the costs under the agreements. Native American tribal agencies manage these programs under the Indian Self-Determination Act of 1975.
“The Department of Justice is pleased that the parties have reached an agreement to finally resolve this litigation that has spanned four administrations,” said Principal Deputy Assistant Attorney General Mizer. “This agreement was long in the making – reached only after years of complex negotiations – and both sides can be proud of the result.”
This proposed settlement was filed yesterday in U.S. District Court in Albuquerque, New Mexico, and will require court approval. The proposed settlement would resolve the government’s liability and avoid years of tedious contract-by-contract litigation that would require tens of thousands of hours of work by federal and tribal attorneys as well as expert auditors and accountants.
The claims arose because of a mismatch between federal self-determination laws and available appropriations. While the federal government has signed contracts that provided for certain amounts to cover administrative costs of implementing contracts – such as workers’ compensation costs for tribal employees – Congress capped appropriated funds available to pay for these costs. This funding gap was one of the sources of the claims, which were raised in a class action lawsuit filed in 1990.
“Time and again, we have seen that when a tribal government runs a federal program, the program is more successful and more responsive to the tribal community,” said Assistant Secretary Washburn. “Today’s proposed settlement, together with President Obama’s request for full, mandatory funding of tribal contract support costs in the future, removes one of the significant obstacles to tribal self-determination and self-governance. Tribes can now be confident that the federal government will pay sufficient costs to allow them to be successful in running federal programs.”
In 2012, the issue reached the Supreme Court, which ultimately agreed with the Tribes that the government was liable for the payments, regardless of whether Congress had appropriated adequate funds. Since 2012, the United States has been negotiating with tribal entities to find a fair and efficient resolution of this dispute and to pay the money owed.
In the president’s fiscal year 2016 budget request to Congress for the Departments of the Interior and Health and Human Services, the administration proposed a long-term solution to this persistent problem: mandatory, non-discretionary funding, beginning in fiscal year 2017, for contract support costs.
The proposed settlement marks another significant effort by the Obama Administration to address long-running litigation concerning federal policy in Indian Country, so that Tribes and the federal government can enjoy a more fruitful and constructive relationship in the future. Since 2010, the Departments of Justice and the Interior have settled the Cobell class action lawsuit, and more than 80 similar lawsuits brought by various American Indian tribes, alleging breach of trust for federal mismanagement of their financial assets and natural resources.
Indictment Charges Bridgeport Man with Illegal Possession of FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Colonel Brian F. Meraviglia of the Connecticut State Police and Easton Police Chief Timothy Shaw announced that a federal grand jury in Bridgeport returned an indictment today charging KYLE NAVIN, 27, of Bridgeport, with one count of possession of a firearm by an individual who is an unlawful user of and addicted to any controlled substance.
NAVIN was originally charged by criminal complaint. As alleged in the complaint, on August 7, 2015, federal, state and local law enforcement agencies began investigating the disappearance of NAVIN’s parents, Jeffrey and Jeanette Navin of Easton. On August 13, 2015, investigators conducted a court-authorized search of NAVIN’s Bridgeport residence and seized two firearms and numerous rounds of ammunition from NAVIN’s bedroom. On August 19, 2015, law enforcement conducted a second search of NAVIN’s residence and located and seized items indicative of substance abuse, including numerous heroin brand-stamped glassine baggies with heroin residue, hypodermic needles, empty prescription bottles for oxycodone and prescription bottles containing other controlled substances. Investigators also recovered from NAVIN’s residence a receipt from a firearms shooting range that was issued on August 5, 2015.
The complaint further alleges that investigators conducted a court-authorized search of NAVIN’s cellphone and reviewed numerous text messages that discuss NAVIN’s use of heroin, oxycodone and Xanax.
NAVIN has been detained since his arrest on September 8, 2015.
The charge of possession of a firearm by an individual who is an unlawful user of and addicted to any controlled substance carries a maximum term of imprisonment of 10 years.
NAVIN’s arraignment has not been scheduled. This case has been assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI Bridgeport Violent Crimes Task Force, Connecticut State Police Western District Major Crime Squad and Easton Police Department, with the assistance of the State’s Attorney’s Office for the Fairfield Judicial District and the Westport, Weston and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Houston Tax Preparer Convicted of Defrauding the IRSRead the Press Release
HOUSTON – The operator of a tax preparation in Houston has entered a plea of guilty to one count of knowingly preparing a materially false claim against the United States, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation (IRS-CI). Adriana Lizette Luna pleaded guilty today, admitting she prepared a materially false 2011 U.S. Individual Income Tax return.
According to the written plea agreement filed in the record of the case, Luna operated an income tax preparation business known at times as Ruby’s Income Tax and Diaz Tax Service at other times. As part of the plea, Luna admitted preparing at least 23 false income tax returns for clients, including the 2011 return which the basis for her plea which claimed a false refund of approximately $11,724.
Luna admitted in the plea agreement that the intended tax loss on the 23 false tax returns she prepared was more than $235,000 and that she split roughly one-half of the false tax refunds with her clients. As part of the plea, she has agreed to pay restitution to the United States in the amount of $116,000.
U.S. District Judge Sim Lake, who accepted the plea, has set sentencing for Dec. 10, 2015. At that time, Luna faces up to five years and a possible $250,000 fine.
IRS-CI investigated. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN VASQUEZ-ALVARADO, age 47, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.
According to the Indictment, VASQUEZ-ALVARADO reentered the United States on or about July 2, 2015, after having been previously removed on September 5, 2002.
VASQUEZ-ALVARADO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for October 29, 2015.
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
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