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18 September 2015
Nicholasville Man Sentenced to 84 Months for Distribution of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Nicholasville man, who previously admitted that he made child pornography images available for download on the internet, has been sentenced to 84 months in federal prison.
On Thursday, Chief U.S. District Judge Karen Caldwell sentenced Jeffrey Treadway, 37, for distribution of child pornography. Under federal law, he must serve at least 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 25 years.
According to court documents, in 2013, law enforcement identified several child pornography files available for download on the internet and traced the source of the images to Treadway’s computer, which was located at his home in Nicholasville.
The FBI searched Treadway’s computer and found over 20,000 thousand images of children, some of whom were under the age of 12, engaged in sexually explicit conduct. Treadway admitted that some of the images depicted adults sexually abusing children.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Howard S. Marshall, Special Agent in Charge, FBI, jointly announced the sentence.
The investigation was conducted by the FBI and the Kentucky Regional Computer Forensic Laboratory (KRCFL). The case was prosecuted by Assistant U.S. Attorney David A. Marye.
Mexican National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ADRIAN RIVERA-MENDOZA, age 35, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, ADRIAN RIVERA-MENDOZA was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on June 29, 2015, after records showed he had been previously deported from the United States to Mexico on October 29, 2012.
If convicted, ADRIAN RIVERA-MENDOZA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.
Member of Drug Trafficking Organization Admits Role in Conspiracy to Sell Heroin in New Jersey; Another Sentenced to 10 Years in PrisonRead the Press Release
TRENTON, N.J. – A Monmouth County man pleaded guilty and another was sentenced today to prison in connection with their roles in a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth counties, U.S. Attorney Paul J. Fishman announced.
Tyshon Young, a/k/a “Young Money,” a/k/a “Young Boy,” 29, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute heroin. Kenneth Greenhow, a/k/a “Fame,” 41, also of Asbury Park, was sentenced by Judge Sheridan to 120 months in prison. Greenhow pleaded guilty on May 11, 2015, to an information charging him with one count of conspiring to distribute heroin.
In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders, Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Nineteen of the defendants have pleaded guilty.
According to documents filed in this case and statements made in court:
Between February 2013 and March 2014, Tyshon Young conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties. Tyshon Young admitted distributing between 40 and 60 grams of heroin in furtherance of the conspiracy. Greenhow admitted that between October 2013 and March 2014, he also participated in the conspiracy and distributed between 40 and 60 grams of heroin.
The distribution conspiracy charge to which Tyshon Young pleaded guilty carries a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for Dec. 22, 2015.
In addition to the prison term, Judge Sheridan sentenced Greenhow to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing and guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
The allegations in complaint against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense Counsel:
Young: James R. Murphy Esq., Princeton, New Jersey
Greenhow: Mark Davis Esq., Trenton
Medical Biller Sentenced to 45 Months in Prison for Role in $4 Million Health Care Fraud SchemeRead the Press Release
The medical biller of a Chicago-area visiting physician practice was sentenced today to 45 months in prison for her role in a $4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Chicago and Acting Special Agent in Charge John A. Brown of the FBI’s Chicago Division made the announcement.
Mary Talaga, 54, of Elmwood Park, Illinois, was convicted in May 2015 following a jury trial of one count of conspiracy to commit health care fraud, six counts of health care fraud and three counts of false statements relating to a health care matter. In addition to imposing the prison term, U.S. District Judge Gary Feinerman of the Northern District of Illinois ordered Talaga to pay approximately $1 million in restitution.
From 2007 to 2011, Talaga was the primary medical biller at Medicall Physicians Group Ltd., a physician practice that visited patients in their homes and prescribed home health care. The evidence at trial showed that Talaga and her co-conspirators routinely billed Medicare for overseeing patient care plans (a service known as “care plan oversight” or CPO) when, in fact, the doctors at Medicall rarely provided the service. The evidence at trial also showed that Talaga and her co-conspirators billed Medicare for other services that were never provided, including services rendered to patients who were deceased, services purportedly provided by medical professionals no longer employed by Medicall, and services purportedly provided by medical professionals who, based on billing records, worked over 24 hours per day.
According to the evidence presented at trial, during the five-year conspiracy, Medicall submitted bills to Medicare for more than $4 million in services that were never provided. Medicare paid more than $1 million on those claims.
Rick Brown, 58, of Rockford, Illinois, and Roger A. Lucero, 64, of Elmhurst, Illinois, were also convicted of offenses based on their roles in the scheme. Brown was convicted along with Talaga at trial and was previously sentenced to serve more than seven years in prison. Lucero, Medicall’s Medical Director, pleaded guilty and will be sentenced at a later date.
The case was investigated jointly by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Illinois. This case was prosecuted by Trial Attorney Brooke Harper and Senior Trial Attorney Jon Juenger of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Lower Brule Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, woman convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 14, 2015, by U.S. District Judge Roberto A. Lange.
Leaf Colette Byington, age 33, was sentenced to 33 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Byington was indicted by a federal grand jury on March 10, 2015. She pled guilty on June 23, 2015.
The conviction stems from an incident on October 24, 2014, when Byington and other persons, including the victim, were consuming alcohol together in Lower Brule. At some point in the early morning hours, Byington and two others were outside arguing. The victim heard the commotion and went outside, where Byington hit the victim in the face and the two began to fight. Byington then stabbed her in the back of the head and ear with a knife. Others intervened in an effort to stop the fight.
When law enforcement arrived at the residence, individuals advised the officer that Byington had stabbed the victim. EMTs were called.
The officer then proceeded over to Byington’s home where he had contact with Byington. She had some blood on her clothes and a knife was seized. A second knife was found on Byington’s person during the booking process at the jail.
The victim was treated at the emergency room in Chamberlain, where she had a significant wound to the back of her head and ear that required over 20 staples to close.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Byington was immediately turned over to the custody of the U.S. Marshals Service.
Louisiana Man Pleads Guilty to Possession of Child PornographyRead the Press Release
U.S. Attorney, Kenneth A. Polite announced that ERIN PITRE, age 36, of Cut Off, pled guilty today to a one-count Bill of Information with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old.
According to court documents, law enforcement officials executed a search warrant at PITRE’S residence on January 22, 2015, during which time they seized an external digital storage device that contained images and videos of child pornography. A forensic examination of the device revealed that PITRE used peer-to-peer file sharing programs on his computer to search for, download, and store images and videos of children as young as two years-old engaging in sexually explicit conduct. The forensic examination located approximately 185 images and 7 videos of children engaging in sexually explicit conduct that PITRE possessed.
PITRE faces a maximum term of imprisonment of not more than twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine. PITRE can also be required to register as a sex offender. U.S. District Judge Mary Ann Vial Lemmon set sentencing for December 10, 2015. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation is investigating this matter. Assistant U.S. Attorney Jordan Ginsberg is in charge of the prosecution.
Long Island Investment Fund Manager Sentenced to Six Years in Prison for Operating A $17 Million Ponzi SchemeRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, James Peister was sentenced to six years in prison and three years of supervised release, following his November 10, 2014 guilty plea to committing securities fraud for defrauding 74 investors of $17.9 million by operating a Ponzi scheme. As part of the sentence, Peister was ordered to pay $9,657,218.65 in restitution to the victims of his fraud and $17.9 million in forfeiture, which includes his residence in St. James, New York, and his Hummer sports utility vehicle.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For nearly a decade, Peister lulled his victims into a false sense of security through empty promises of reliable growth and conservative investing. After stealing millions of dollars in inheritances and retirement savings, Peister now faces his own retirement in prison while his victims struggle to rebuild their lives,” stated Acting United States Attorney Currie. “Would-be fraudsters take note that you, like Peister, who prey on the investing public will be held accountable.” Mr. Currie thanked the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) for their cooperation and assistance.
FBI Assistant Director-in-Charge Rodriguez stated, “Today's sentencing marks a closing for Peister's $17 million Ponzi scheme, although for his victims, who lost their inheritance and retirement savings, there is no closure that can make them whole again. The FBI is committed to investigating and bringing to justice those who prey upon trusting individuals for their own personal gain.”
Between January 2000 and June 2009, Peister raised more than $17 million from at least 74 investors in connection with an investment fund that he managed. He had assured those investors that their money would be invested safely in a variety of securities, including stocks, futures, and fixed income instruments. Instead of investing the money as he had promised, Peister misappropriated the money to run a Ponzi scheme. Among other things, he used the investors’ money to pay millions of dollars in redemptions to his victim investors to keep the scheme afloat and to purchase luxury items such as an expensive estate in St. James and a Hummer luxury vehicle. To avoid detection and continue the scheme, Peister sent phony account statements to investors that falsely showed that their funds were invested and performing well and submitted bogus financial statements to the investment fund’s independent auditor. As a result, investors believed that the funds were performing satisfactorily, and they continued to invest their money with Peister. Peister’s Ponzi scheme collapsed in the wake of the financial crisis in 2008, when he could no longer keep up with demands for redemptions from nervous investors.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis and Jonathan P. Lax are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian D. Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
JAMES M. PEISTER
Age: 63
St. James, New YorkE.D.N.Y. Docket No. 14-CR-328 (JFB)
Lexington, South Carolina, Man Indicted for Misprision of a Felony and Making False Statements Relating to Mother Emanuel AME Church ShootingRead the Press Release
Contact: The Office of Public Affairs (202) 514-2007
WASHINGTON – Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U. S. Attorney Bill Nettles of the District of South Carolina announced today an indictment charging Joseph Carlton Meek, 21, of Lexington, South Carolina, with misprision of a felony and making false statements.
Meek is alleged to have taken steps to conceal his knowledge of the crimes committed by Dylann Storm Roof, and to have made materially false statements when Meek told a Special Agent of the FBI that he did not know specifics of Roof’s plan to shoot individuals on a Wednesday, during Bible Study, at an AME Church in Charleston, South Carolina, prior to Roof’s attack on June 17, 2015. The misprision count carries up to three years in prison and the false statement charge carries up to five years in prison.
The indictment is the result of an investigation conducted by the FBI, Charleston Police Department and South Carolina Law Enforcement Division. Assistant U.S. Attorneys Jay N. Richardson and Nathan Williams of the District of South Carolina are prosecuting the case with the assistance of the Civil Rights Division.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
# # #
Lexington, South Carolina, Man Indicted for Misprision of a Felony and Making False Statements Relating to Mother Emanuel AME Church ShootingRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U. S. Attorney Bill Nettles of the District of South Carolina announced today an indictment charging Joseph Carlton Meek, 21, of Lexington, South Carolina, with misprision of a felony and making false statements.
Meek is alleged to have taken steps to conceal his knowledge of the crimes committed by Dylann Storm Roof, and to have made materially false statements when Meek told a Special Agent of the FBI that he did not know specifics of Roof’s plan to shoot individuals on a Wednesday, during Bible Study, at an AME Church in Charleston, South Carolina, prior to Roof’s attack on June 17, 2015. The misprision count carries up to three years in prison and the false statement charge carries up to five years in prison.
The indictment is the result of an investigation conducted by the FBI, Charleston Police Department and South Carolina Law Enforcement Division. Assistant U.S. Attorneys Jay N. Richardson and Nathan Williams of the District of South Carolina are prosecuting the case with the assistance of the Civil Rights Division.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
Leader of International Counterfeit Currency Ring Sentenced to 15 Years in PrisonRead the Press Release
Itzhak Loz, 48, of Rishon Le Zion, Israel, the leader of an international counterfeit currency ring responsible for over $70 million in counterfeit U.S. currency, was sentenced today to 180 months in prison for leading a RICO conspiracy involving multiple acts of counterfeiting and money structuring. Loz was also ordered to forfeit $20 million and specific assets including a warehouse in New Jersey where the counterfeit currency was most recently printed.
“Loz was the leader of a conspiracy that printed, distributed and passed over $70 million high-quality counterfeit $50 and $100 bills,” said U.S Attorney Dana J. Boente of the Eastern District of Virginia. “This international criminal enterprise operated undetected for many years in Israel and the United States and relied upon a close-knit and loyal network of distributors bound by family ties, loyalty and greed. I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”
“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said Special Agent in Charge James M. Murray of the U.S. Secret Service’s (USSS) Washington Field Office. “This investigation joins a long list of successful counterfeit suppressions over our 150 year history. We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”
Loz, along with 12 co-conspirators, were indicted by a federal grand jury on Aug. 7, 2014. According to court documents filed in the case, Loz was the leader of the racketeering enterprise that manufactured and distributed more than $70 million in counterfeit U.S. currency between 2004 and 2014. The enterprise was financed, in part, by brothers Arkadiy Bangiyev, 38, of Rego Park, New York, and Eduard Bangiyev, 40, of Forest Hills, New York, who operated a retail jewelry store in Long Island and then a gold refinery business in Manhattan’s diamond district.
Loz, along with the Bangiyev brothers and co-conspirator Ronen Fakiro, 47, also of Rishon Le Zion, manufactured the counterfeit currency on offset and lithography printing machinery in Israel and the United States and produced extremely high-quality notes which replicated the many security features of genuine currency. At the height of its operations, the enterprise smuggled $3 million worth of counterfeit currency into the United States every three months. The counterfeit was concealed inside shipping containers containing machinery. Once the counterfeit was in the United States, the enterprise relied upon a network of distributors who obtained the counterfeit from the Bangiyev brothers. The ultimate users of the counterfeit passed the notes at locations up and down the east coast of the United States.
In 2014, Loz and Ronen Fakiro purchased a warehouse in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes and recruited a married couple from Israel, Boaz and Ofra Borohov, 45 and 46, respectively, to assist them in the production of the notes. Loz attempted to recreate and produce the security features of the most recently issued $100 bill but was unable to do so. Instead, beginning in April 2014, the enterprise printed $5.3 million in counterfeit $100 bills. On May 28, 2014, the USSS executed a search warrant at the warehouse and essentially caught the Borohov’s “red handed” as they were operating heat press machines used to manufacture counterfeit currency. That same day, the USSS also seized approximately $2.56 million in counterfeit $100 bills from Loz’s New York storage unit and other assets, including over $200,000 in genuine U.S. currency, along with jewelry, watches, diamonds, bank accounts, luxury cars and real estate.
All 13 defendants named in the original indictment have pleaded guilty. Nine defendants have been sentenced, while the remaining four are awaiting sentencing. The defendants are listed in the indictment in the following order:
Defendant Name & Age
Residence
Arrest Location & Date
Status
Itzhak Loz, 48
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced today to 180 months.
Ronin Fakiro, 47
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.
Boaz Borohov, 45
Tel Aviv, Israel
Cherry Hill
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced today to 33 months.
Ofra Borohov, 46
Tel Aviv, Israel
Cherry Hill
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced today to 24 months.
Arkadiy Bangiyev, 38
Rego Park, New York
Rego Park
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.
Eduard Bangiyev, 40
Forest Hills, New York
Scranton, Pennsylvania
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentencing Sept. 21, 2015.
Johnny Elegante Lee, 46
Glen Oaks, New York
Miami, Florida
June 1, 2014Pleaded guilty Sept. 16, 2014. Sentencing on Sept. 25, 2015.
Tarell Lavon Johnson, 27
Lynbrook, New York
Lynbrook, New York
May 28, 2014Pleaded guilty Oct. 23, 2014. Sentenced to 36 months on Feb. 27, 2015.
Craig Johnson, 49
Douglasville, Georgia
Douglasville, Georgia
June 13, 2014Pleaded guilty Oct. 1, 2014. Sentenced to 16 months on Feb. 13, 2015.
Shannon Lamont Smith, 45
Woodstock, Georgia
Atlanta, Georgia
May 28, 2014Pleaded guilty Sept. 26, 2014. Sentenced to 24 months on July 31, 2015.
Fredrick Barrett, 33
Hempstead, New York
Hempstead, New York
May 28, 2014Pleaded guilty Oct. 24, 2014. Sentenced to 36 months on Feb. 27, 2015.
Ramel Epps, 25
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 20, 2014. Sentenced to 15 months on Feb. 20, 2015.
Brattie Guerra, 23
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 3, 2014. Sentenced to 12 months on Feb. 20, 2015.
U.S. Attorney Boente Director Joseph P. Clancy of USSS, made the announcement after sentencing by U.S. District Judge Liam O’Grady. This case was investigated by the USSS with assistance from U.S. Customs and Border Protection. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg of the Eastern District of Virginia are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
Leader of International Counterfeit Currency Ring Sentenced to 15 YearsRead the Press Release
ALEXANDRIA, Va. – Itzhak Loz, 48, of Rishon Le Zion, Israel, the leader of an international counterfeit currency ring responsible for over $70 million in counterfeit U.S. currency, was sentenced today to 180 months in prison for leading a RICO conspiracy involving multiple acts of counterfeiting and money structuring. Loz was also ordered to forfeit $20 million and specific assets including a warehouse in New Jersey where the counterfeit currency was most recently printed.
“Loz was the leader of a conspiracy that printed, distributed and passed over $70 million high-quality counterfeit $50 and $100 bills,” said U.S Attorney Boente. “This international criminal enterprise operated undetected for many years in Israel and the United States and relied upon a close-knit and loyal network of distributors bound by family ties, loyalty and greed. I want to commend the Secret Service and its law enforcement partners for aggressively investigating this conspiracy and supporting the prosecution of these 13 defendants.”
“The conclusion of this case highlights the Secret Service’s investigative prowess and ability to detect one of the most prolific counterfeit notes in history,” said James M. Murray, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office. “This investigation joins a long list of successful counterfeit suppressions over our 150 year history. We will continue to work closely with our network of law enforcement partners to combat criminal enterprises and protect the Nation’s financial infrastructure.”
Loz, along with 12 co-conspirators, were indicted by a federal grand jury on Aug. 7, 2014. According to court documents filed in the case, Loz was the leader of the racketeering enterprise that manufactured and distributed more than $70 million in counterfeit U.S. currency between 2004 and 2014. The enterprise was financed, in part, by brothers Arkadiy Bangiyev, 38, of Rego Park, New York, and Eduard Bangiyev, 40, of Forest Hills, New York, who operated a retail jewelry store in Long Island and then a gold refinery business in Manhattan’s diamond district.
Loz, along with the Bangiyev brothers and co-conspirator Ronen Fakiro, 47, also of Rishon Le Zion, Israel, manufactured the counterfeit currency on offset and lithography printing machinery in Israel and the United States and produced extremely high-quality notes which replicated the many security features of genuine currency. At the height of its operations, the enterprise smuggled $3 million worth of counterfeit currency into the United States every three months. The counterfeit was concealed inside shipping containers containing machinery. Once the counterfeit was in the United States, the enterprise relied upon a network of distributors who obtained the counterfeit from the Bangiyev brothers. The ultimate users of the counterfeit passed the notes at locations up and down the east coast of the United States.
In 2014, Loz and Ronen Fakiro purchased a warehouse in Cherry Hill, New Jersey, to manufacture counterfeit $100 notes and recruited a married couple from Israel, Boaz and Ofra Borohov, 45 and 46, respectively, to assist them in the production of the notes. Loz attempted to recreate and produce the security features of the most recently issued $100 bill but was unable to do so. Instead, beginning in April 2014, the enterprise printed $5.3 million in counterfeit $100 bills. On May 28, 2014, the U.S. Secret Service (USSS) executed a search warrant at the warehouse and essentially caught the Borohov’s “red handed” as they were operating heat press machines used to manufacture counterfeit currency. That same day, the USSS also seized approximately $2.56 million in counterfeit $100 bills from Loz’s New York storage unit and other assets, including over $200,000 in genuine U.S. currency, along with jewelry, watches, diamonds, bank accounts, luxury cars and real estate.
*UPDATE* (Sept. 25, 2015) - All 13 defendants named in the original indictment have pleaded guilty and been sentenced.
Defendant Name & Age
Residence
Arrest Location & Date
Status
Itzhak Loz, 48
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 180 months on Sept 18, 2015.
Ronin Fakiro, 47
Rison Lezion, Israel
Jamaica, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 84 months on Sept. 21, 2015.
Boaz Borohov, 45
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced to 33 months on Sept. 9, 2015.
Ofra Borohov, 46
Tel Aviv, Israel
Cherry Hill, New Jersey
May 28, 2014Pleaded guilty Feb. 6, 2015. Sentenced to 24 months on Sept. 9, 2015.
Arkadiy Bangiyev, 38
Rego Park, New York
Rego Park, New York
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 108 months on Sept. 21, 2015.
Eduard Bangiyev, 40
Forest Hills, New York
Scranton, Pennsylvania
May 28, 2014Pleaded guilty Jan. 20, 2015. Sentenced to 96 months on Sept. 21, 2015.
Johnny Elegante Lee, 46
Glen Oaks, New York
Miami, Florida
June 1, 2014Pleaded guilty Sept. 16, 2014. Sentenced to 36 months on Sept. 25, 2015.
Tarell Lavon Johnson, 27
Lynbrook, New York
Lynbrook, New York
May 28, 2014Pleaded guilty Oct. 23, 2014. Sentenced to 36 months on Feb. 27, 2015.
Craig Johnson, 49
Douglasville, Georgia
Douglasville, Georgia
June 13, 2014Pleaded guilty Oct. 1, 2014. Sentenced to 16 months on Feb. 13, 2015.
Shannon Lamont Smith, 45
Woodstock, Georgia
Atlanta, Georgia
May 28, 2014Pleaded guilty Sept. 26, 2014. Sentenced to 24 months on July 31, 2015.
Fredrick Barrett, 33
Hempstead, New York
Hempstead, New York
May 28, 2014Pleaded guilty Oct. 24, 2014. Sentenced to 36 months on Feb. 27, 2015.
Ramel Epps, 25
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 20, 2014. Sentenced to 15 months on Feb. 20, 2015.
Brattie Guerra, 23
Freeport, New York
Freeport, New York
May 28, 2014Pleaded guilty Oct. 3, 2014. Sentenced to 12 months on Feb. 20, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and James M. Murray, Special Agent in Charge of the U.S. Secret Service's Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. This case was investigated by the USSS with assistance from U.S. Customs and Border Protection. Assistant U.S. Attorneys Kimberly R. Pedersen and Gordon D. Kromberg are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14CR206.
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Laredo Man Gets Sentenced for Illegally Possessing AmmoRead the Press Release
LAREDO, Texas – A previously convicted felon who resided in Laredo has been sentenced for illegally possessing 14 rounds of 7.62x39mm ammunition, announced United States Attorney Kenneth Magidson. Humberto Hilario-Gomez, 25, of Laredo, pleaded guilty to being a felon in possession of ammunition on Jan. 13, 2015.
Today, U.S. District Judge George P. Kazen handed Hilario-Gomez a sentence of 72 months in federal prison to be immediately followed by three years of supervised release. The Judge commented on Hilario-Gomez’s young age and his extensive history of violent behavior. Hilario-Gomez expressed remorse over his actions.
The conviction stems from an aggravated robbery investigation initiated by Laredo Police Department. After it was determined that Hilario-Gomez was involved in the robbery, a warrant was issued and executed at his residence. There, officers discovered the ammunition in his home.
Hilario-Gomez has prior felony convictions for aggravated assault with a deadly weapon, deadly weapon in a penal institution, taking a weapon from an officer, robbery, and evading arrest with a motor vehicle. As such, he is prohibited from possessing firearms or ammunition per federal law.
The charges are the result of an investigation conducted by Laredo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christopher A. dos Santos prosecuted the case.
Kenner Woman Charged with Theft of Public Money and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NISIKA WEST, age 36, of Kenner, was charged today in a six-count Indictment with theft of public money and aggravated identity theft.
According to the Indictment, between in or about March 2012 and May 2012, WEST knowingly stole money from the United States Department of the Treasury in the form of federal tax refunds by using stolen identities.
If convicted, WEST faces a maximum term of imprisonment of ten years, followed by three years of supervised release, a maximum fine of $250,000, and restitution, as to each of Counts 1 through 3. As to Counts 4 through 6, the defendant faces a mandatory two years of imprisonment as to each count in addition to any sentence received for Counts 1 through 3.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Justice Department and Chinese Ministry of Public Security Coordinate Efforts to Combat International Drug TraffickingRead the Press Release
This week, law enforcement officials from the United States and the People’s Republic of China met in Beijing to coordinate their efforts to fight international drug trafficking.
Representatives of the two sides held two separate but related meetings to exchange law enforcement information, share their assessments of the drug problem, discuss responses in their respective countries, review progress and examine possible mechanisms for further cooperation. In doing so, the two countries expanded their understanding of the differences in their legal systems, investigative practices and national situations.
The Bilateral Drug Intelligence Working Group, led by officials from the U.S. Drug Enforcement Administration and the Chinese Ministry of Public Security, met on Sept. 14-15, 2015. Primarily an exchange mechanism for law enforcement information, the Bilateral Drug Intelligence Working Group conducted briefings on the major drug issues faced by each country.
The Counternarcotics Working Group, led by the Department of Justice and Chinese Ministry of Public Security, met on Sept. 16-17, 2015. This group, which reports to the Joint Liaison Group on law enforcement cooperation, focuses on expanding mutual understanding and cooperation on drug issues. In this meeting, among other issues, the sides discussed the legal and regulatory challenges posed by “designer drugs” – also known as new psychoactive substances – as well as potential avenues for cooperation in investigating and combating this emerging threat.
Going forward, law enforcement exchange and cooperation mechanisms such as these will facilitate more effective cooperation between the two countries in confronting their shared problem of drug trafficking and abuse.
Jury Convicts Lexington Woman of Filing False Tax ReturnsRead the Press Release
Defendant Claimed Hundreds of Thousands of Dollars in Tax Refunds
LEXINGTON, Ky. — A federal jury convicted Winona Jean Cox, of Lexington, Ky., of filing four false income tax returns and then obstructing the Internal Revenue Service from recovering a fraudulently-claimed refund check.
On Thursday, the jury convicted Cox, 40, of four counts of filing false tax claims and one count of interfering with the administration of the internal revenue laws. The jury reached its verdicts after three days of trial and two hours of deliberation.
At trial, the United States proved that Cox falsely claimed over $477,000 in tax refunds during tax years 2005 through 2008. Cox’s fraud involved over-reporting interest income and tax withholding, using counterfeit IRS 1099-OID forms. Cox then submitted claims for tax refunds based on those inflated amounts.
Evidence at trial also proved that, after Cox was mailed a tax refund check for one of the fraudulent returns, she attempted to obstruct the IRS from recovering that money, by assigning the titles of her three homes and her car to nominee trusts and wire transferring most of the refund into a bank account under a different name.
Cox faces a maximum sentence of five years in prison on the filing false claims counts, and three years in prison for interfering with the administration of the internal revenue laws. Sentencing is currently scheduled for December 14, 2015 before U.S. District Judge Joseph Hood. Any sentence imposed by the Court will come after careful consideration of the U.S. Sentencing Guidelines and the federal statutes governing imposition of sentences. Under federal law, Cox must serve at least 85 percent of her prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Neeraj Gupta and Ken Taylor prosecuted this case on behalf of the federal government.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on September 16, 2015, and entering pleas of Not Guilty were:
- JACQUELINE DIANE ERGER, a 45-year-old resident of Kalispell, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine.. If convicted of the most serious charge contained in the indictment, ERGER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force. PACER Case Reference. 15-16
- JACOB EDWARD GENTRY, a 45-year-old resident of Somers, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine.. If convicted of the most serious charge contained in the indictment, GENTRY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force. PACER Case Reference. 15-16
Appearing before U.S. Magistrate Johnston in Great Falls on September 15, 2015, and entering pleas of Not Guilty were:
- BRYCE GLENN GRANBOIS, a 44-year-old resident of Poplar, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, GRANBOIS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Federal Bureau of Investigation. PACER Case Reference. 15-52
Appearing before U.S. Magistrate Lynch in Missoula on September 14, 2015, and entering pleas of Not Guilty were:
- CHASTON ANTONIO FORT, a 20-year-old resident of Hollywood, Florida, appeared on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious charge contained in the indictment, FORT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Federal Bureau of Investigation and the Billings Police Department. PACER Case Reference. 15-22
Appearing before U.S. Magistrate Johnston in Great Falls on September 14, 2015, and entering pleas of Not Guilty were:
- KAYLA MARIE RACINE, a 27-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, RACINE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Federal Bureau of Investigation. PACER Case Reference. 15-51
Appearing before U.S. Magistrate Lynch in Missoula on September 8, 2015, and entering pleas of Not Guilty were:
- ATHENA PATRICIA SCHARNHORST, a 45-year-old resident of Polson, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, SCHARNHORST faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA. PACER Case Reference. 15-55
Appearing before U.S. Magistrate Ostby in Billings on September 8, 2015, and entering pleas of Not Guilty were:
- MARCO POLO OVALLE-MARTINEZ, a 28-year-old resident of Mexico, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, OVALLE-MARTINEZ faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by Department of Homeland Security. PACER Case Reference. 15-112
- ROBERT PEREZ SCHILLING, a 27-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine; carrying a firearm during and in relation to a drug trafficking crime. If convicted of the most serious charges contained in the indictment, SCHILLING faces life in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-61
Appearing before U.S. Magistrate Johnston in Great Falls on September 8, 2015, and entering pleas of Not Guilty were:
- STEPHEN RAY AFTERBUFFALO, a 41-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, AFTERBUFFALO faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-55
- DOUGLAS MONTGOMERY LIU, a 35-year-old resident of Sunnyvale, California, appeared on charges of conspiracy to commit robbery affective commerce, robbery affecting commerce and use of a firearm during a crime of violence. If convicted of the most serious charges contained in the indictment, LIU faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Great Falls Police Department. PACER Case Reference. 05-38
- TALIA JOYCE NO RUNNER, a 35-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, NO RUNNER faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-56
- NATASHA LOUISE RADASA, a 33-year-old resident of Cut Bank, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, RADASA faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-57
- LEON BUCK SHARP, a 39-year-old resident of Browning, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, SHARP faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs and Glacier County Sheriff’s Office. PACER Case Reference. 15-54
Appearing before U.S. Magistrate Ostby in Billings on September 3, 2015, and entering pleas of Not Guilty were:
- BRANDON PATRICK DALTON-JACKSON, a 34-year-old resident of Billings, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, DALTON-JACKSON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation Task Force. PACER Case Reference. 15-98
- ALEJANDRO MARQUEZ GONZALEZ, a 36-year-old resident of Royal City, Washington, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most charge contained in the indictment, GONZALEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the U.S. Border Patrol PACER Case Reference. 15-102
- IGNACIO FIGUEROA RODRIGUEZ, a 37-year-old resident of Royal City, Washington, appeared on charges of possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most charge contained in the indictment, RODRIGUEZ, faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the U.S. Border Patrol PACER Case Reference. 15-102
Appearing before U.S. Magistrate Johnston in Great Falls on September 3, 2015, and entering pleas of Not Guilty were:
- BRUCE DARNELL MOORE, a 50-year-old resident of Great Falls, appeared on charges of conspiracy to conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, MOORE faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. PACER Case Reference. 15-49
Appearing before U.S. Magistrate Lynch in Missoula on September 1, 2015, and entering pleas of Not Guilty were:
- JOSEPH LEE ELDABAA, a 45-year-old resident of Albany, Oregon, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, ELDABAA faces 10 years in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Missouri River Drug Task Force. PACER Case Reference. 15-11
Appearing before U.S. Magistrate Johnston in Great Falls on September 1, 2015, and entering pleas of Not Guilty were:
- DENNIS PEIKER, a 51-year-old resident of Lincoln, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, PEIKER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-12
Appearing before U.S. Magistrate Johnston in Great Falls on August 31, 2015, and entering pleas of Not Guilty were:
- JOAN JOYCE HURLEY, a 38-year-old resident of Brady, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, HURLEY faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. PACER Case Reference. 15-49
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
IT Professional Sentenced to 15 Months in Prison for Installing and Activating Malicious CodeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anand Venkatraman, age 41, of Clarksburg, Maryland today to 15 months in prison, followed by three years of supervised release, for installing code that intentionally caused damage to a computer. Judge Chasanow also entered an order requiring Venkatraman to pay restitution of $157,300.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from September 17, 2012 through January 29, 2014, Venkatraman worked as a contractor and employee of a privately held staffing company serving a variety of industries, based in Hanover, Maryland. Venkatraman held the position of Senior Developer, and was skilled in computer code, server and database construction and maintenance, and website design and architecture.
During the course of his employment with the company, Venkatraman was provided administrator credentials and passwords, and had access to and control over the infrastructure of the website of one of the company’s subsidiaries that helped people with disabilities to find employment. Venkatraman admitted that he used his access privileges and his technical skills to implant malicious code on the subsidiary’s webservers, which allowed him to remotely execute commands that, among other things, would cause the website to crash.
On January 29, 2014, Venkatraman’s last day of employment, the company disabled his credentials and passwords. After his separation from the company, on three separate occasions Venkatraman accessed, without authorization, the malicious code that he had previously implanted on the subsidiary’s webservers, causing the website to crash on June 13, 18 and 20, 2014. On June 26, 2014, Venkatraman again accessed the subsidiary’s webservers without authorization, and posted a blog post disparaging the subsidiary. On June 28, 2014, Venkatraman sent an email to a company official in which he admitted posting the “derogatory blog.” Approximately six months later, Venkatraman again attempted to access the malicious code that he had implanted on the subsidiary’s webservers, but the company had discovered and removed the malicious code.
As a result of Venkatraman’s actions, the company and its subsidiary sustained a loss of $157,300.
United States Attorney Rod J. Rosenstein praised the FBI and U.S. Secret Service for their work in the investigation and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
Hudson County, New Jersey, Man Sentenced to 19 Months in Prison for Racketeering Conspiracy Related to Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced to 19 months in prison for his roles in conspiring with a criminal enterprise that engaged in illegal online sports betting in New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Robert J. Scerbo, 57 of Bayonne, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to separate informations charging them with one count of racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Members of the conspiracy, referred to as “agents,” were given access to Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Instead, Scerbo and his conspirators paid out winnings and collected losses in person. Scerbo admitted that he conspired with the criminal enterprise to commit racketeering acts, namely, the illegal sports betting operation, and that he and his conspirators profited through this criminal venture.
In addition to the prison terms, Judge Cecchi sentenced Scerbo to two years of supervised release and fined him $5,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Scerbo: Thomas J. Cammarata Esq., Jersey City, New Jersey
Bruder: Daniel J. Welsh Esq., Jersey City, New Jersey
Houston Man Schemes to Steal from UK-Company, Lands in Federal PrisonRead the Press Release
HOUSTON – A Houston man has been ordered to federal prison for a wire fraud scheme in which he deceived a United Kingdom-based company into sending him $357,000, announced U.S. Attorney Kenneth Magidson. Avery Lamarr Ayers, 48, pleaded guilty to one count of conspiracy to commit wire fraud on June 18, 2015.
Today, U.S. District Judge Gray Miller, ordered he serve the statutory maximum of 60 months in federal prison to be immediately followed by three years of supervised release. The court also imposed a restitution order in the amount of $357,000. At the hearing, Judge Miller also found Ayers to be a leader/organizer in the conspiracy.
From approximately Nov. 21, 2014, through March 9, 2015, Ayers deceived an oil and gas company into sending him thousands of dollars for a purported contractual agreement. Ayers and others claimed to be the legitimate company that was owed the funds and illegally caused the victim company to wire $357,000 to Ayers via a Comerica account here in Houston. The scheme involved the use of deceptive email accounts and fabricated or illegitimate invoices for payment on services rendered by the legitimate company.
On Jan. 20, 2015, Ayers registered a “dummy” company doing business as (dba) Minas & Hidrocarboneto in the Harris County Clerk’s Office. That same day, Ayers also opened a Comerica Bank account in the name of Avery L. Ayers dba Minas & Hidrocarbonetos GB SARL.
On or about Jan. 21, 2015, co-conspirators circulated a fraudulent invoice to the oil and gas company via email requesting payment in the amount of $357,000 on services rendered by Minas & Hidrocarbonetos. Two days later, a wire in the amount of $356,975 ($357,000 before wire fees) was credited to Ayers’ Comerica Bank account. After receiving the funds, Ayers arrived at the bank and conducted several transactions from the account to include the purchase of multiple cashier’s checks, the withdrawal of nearly $10,000 in cash and the transfer of $50,000 to another account.
Ayers had provided the bank with a fictitious letter to them purportedly from the company which stated "These funds will be used at your discretion to establish a small office, moving & research expenses and pay outs to families in Texas & Louisiana with Gas & Oil rights on their property." The bank soon suspected the wire was fraudulent and attempted to take action. The wire could not be recalled and Comerica requested Ayers return the funds, to which he refused. He then tried to withdraw the rest of the funds, but because of the fraud alert, the bank was able to freeze the funds.
Ayers is currently in state custody on unrelated charges. He will remain there pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Homeland Security Investigations, Asset Identification and Removal Group. Assistant United States Attorney Suzanne Elmilady is prosecuting this case.
Hopi-Tewa Women’s Coalition Receives over $300,000 in Federal Grant Funds to Support Victims of Domestic ViolenceRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $312,608 in grant funds have been awarded to the Hopi -Tewa Women’s Coalition to End Abuse to increase awareness of domestic violence, enhance the response to violence against Indian women, and develop and promote policies and best practices among the tribes. The grant funds were awarded by the Office on Violence Against Women (“OVW”), which is a component of the Department of Justice (“DOJ”).
“This Justice Department grant will fund critical programs to enhance the safety and economic security of the victims of domestic violence in Northern Arizona, which includes the Hopi Reservation and extends over Coconino and Navajo Counties.” said U.S. Attorney Leonardo. “We encourage all agencies to be proactive and apply for future grant funding through our Office on Violence Against Women.”
Information about OVW and its programs can be found at: http://www.justice.gov/ovw.
RELEASE NUMBER: 2015-085_HOPI_TEWA_GRANT (2015-IW-AX-0012)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Hazleton Man Sentenced to 41 Months in Prison for Heroin and Cocaine TraffickingRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old Hazleton resident was sentenced today to serve 41 months in federal prison by Senior U.S. District Court Judge Edwin M. Kosik for participating in a conspiracy to distribute heroin and cocaine.
According to United States Attorney Peter Smith, the defendant, Willy Perez, a citizen of the Dominican Republic, previously pleaded guilty to conspiracy to distribute heroin and cocaine during July through October 2013.
Perez was indicted by a federal grand jury in January 2014, as a result of an investigation by the Federal Bureau of Investigation and Scranton Police.
Judge Kosik also ordered Perez to be placed on three years of supervised release following his prison sentence. Perez, a legal resident alien, faces deportation and removal from the United States as a result of this felony conviction.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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Havre Pawn Shop Owner Pleads Guilty to Not Reporting Large TransactionsRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that SHAD JAMES HUSTON, 40, of Havre, Montana, pleaded guilty during a federal court hearing in Great Falls, Montana, on September 17, 2015, before U.S. District Judge Brian M. Morris to ignoring federal reporting requirements when more than $10,000 in currency was transacted in a single transaction. Huston faces a potential penalty of five years in federal prison, a $250,000 fine and three years of supervised release.
Huston operated various businesses, including Leon’s Pawn & Rental, Inc., which did business as Leon’s Buy and Sell in Havre, Montana, and Leon’s Finance, Inc., which did business as Big Sky Pawn in Great Falls, Montana. Because pawn shops and check-cashing businesses conduct a large volume of cash transactions, they must register as Money Service Businesses with the Financial Crimes Enforcement Network (FinCEN), of the U.S. Department of Treasury. FinCEN’s mission is to combat criminal enterprises and money laundering by identifying people and organizations who engage in large cash transactions; those transactions often relate to criminal activity which can be discovered through the collection, analysis, and dissemination of financial intelligence.
In order for FinCEN to track money laundering and other fraud, Huston, as the owner and operator of a money service business, was required to file Currency Transaction Reports (“CTRs”) when cashing checks for customers in excess of $10,000. According to the indictment, Huston cashed checks in excess of $10,000 for Hailey Belcourt, who was previously indicted and convicted for fraud. He also cashed checks in excess of $10,000 for members of the Houle family. Former Tribal Chairman John Chance Houle was sentenced to over five years in federal prison last year for his role in the wide-spread corruption uncovered by the Guardians Project at the Rocky Boy’s Indian Reservation. The indictment identified 19 checks that Huston cashed that should have been reported to the Treasury Department, but were not.
Judge Morris set sentencing for December 16, 2015, at 1:30 p.m. Four more indictments are pending against Huston; those indictments charge16 other felony crimes including bribery, wire fraud, embezzlement, and false claims fraud. The first trial against Huston is set to begin on October 19, 2015, at 8:30 a.m.
Huston’s conviction for failing to file CTRs is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. The Huston case relating to his failure to file CTRs was investigated by the Criminal Investigations Division of the Internal Revenue Service.
Golfer Sentenced for Insider Trading SchemeRead the Press Release
BOSTON – A Waltham man was sentenced today for conspiracy and insider trading in connection with tipping friends and fellow golfers with inside information about the business activities of American Superconductor Corporation (AMSC).
Eric McPhail, 41, was sentenced by U.S. District Court Judge Denise J. Casper to 18 months in prison and two years of supervised release. In June 2015, McPhail was convicted, following a seven-day jury trial, of conspiring to commit securities fraud and securities fraud. McPhail had been indicted in July 2014.
According the evidence presented at trial, starting around July 2009, McPhail, who is a competitive amateur golfer, began giving his friends inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf games at the Oakley Country Club in Watertown and other social outings with a close friend who was a senior executive at AMSC. The executive, however, trusted McPhail to keep the information to himself and was unaware that McPhail was using it to tip his friends.
Over a two-year period spanning July 2009 to April 2011, several of McPhail’s friends repeatedly traded on the inside information. According to evidence presented at trial, McPhail’s tippees successfully traded on material, nonpublic information about AMSC on at least five occasions, making a total of over $500,000 in illicit gains. One of McPhail’s tippees, Douglas Parigian, who is also a competitive amateur golfer, previously pleaded guilty to securities fraud charges in May 2015.
United States Attorney Carmen M. Ortiz; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Paul Levenson, Regional Director of the Securities and Exchange Commission, Boston Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Andrew E. Lelling and Seth B. Kosto of Ortiz’s Economic Crimes Unit.
Four Men Charged with Unlawful Firearm PossessionRead the Press Release
Keith Diante Moore, Jr., age 30, Derek Anthony Hughes-Doby, age 28 Treundes Lydell Howell, age 28, and Cecil Bernard Howell, age 45, have been charged with unlawfully possessing a firearm. The charges are contained in a Complaint filed on September 14, 2015, in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about September 10, 2015, defendants each possessed a Glock .40 caliber pistol while being unlawful users of marijuana. Federal law prohibits users of illegal controlled substances from possessing firearms.
If convicted, each defendant faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
Defendants Keith Diante Moore, Jr., and Treundes Lydell Howell appeared on September 15, 2015, in federal court in Cedar Rapids, and were ordered detained without bond after a detention hearing on September 18, 2015.
Defendants Derek Anthony Hughes-Doby and Cecil Bernard Howell remain fugitives. Anyone with information regarding the whereabouts of Derek Anthony Hughes-Doby or Cecil Bernard Howell is asked to contact the Cedar Rapids Police Department at (319) 286-5491 or Linn County Crime Stoppers at 1-800-CS-CRIME (272-7463).
Derek Anthony Hughes-Doby is a 28-year-old black male, approximately 5 feet, 10 inches tall. He is pictured below:
Cecil Bernard Howell is a 45-year-old black male, approximately 5 feet, 8 inches tall and approximately 195 pounds. He is pictured below:
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Ravi T. Narayan and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, Cedar Rapids Police Department, and the Sixth Judicial District Department of Correctional Services.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-MJ-281.
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Founder of West Suburban Investment Firm Indicted for Embezzling Client Funds in $3.9 Million Fraud SchemeRead the Press Release
CHICAGO — The founding member of a Geneva investment firm used client funds to trade his own stocks and to purchase a yacht and luxury vehicle for himself, according to a federal indictment announced today.
STEPHEN C. BROWERE, the founder and principal of Geneva-based Stephens Capital Management Inc., used the promise of lucrative and guaranteed returns to persuade his clients to purchase $1.66 million in promissory notes in Douglas Capital Corp., located in Lisle. What Browere didn’t reveal was that a relative was the president of Douglas Capital, and that Browere himself had access to Douglas Capital’s lines of credit and ran its day-to-day operations, according to the eight-count indictment returned Wednesday in U.S. District Court in Chicago. Instead of investing the funds as promised to clients in the promissory notes, Browere used the money to perform trades in his own investment portfolio and to cover personal expenses, including the purchase of a yacht and luxury vehicle, the indictment states.
Browere, 56, of Geneva, also obtained the power of attorney on behalf of an elderly client who was infirm and suffering from dementia, according to the indictment. The power of attorney gave Browere access to the client’s cash and property, which were valued at $2.1 million. Browere misappropriated some of this money to purchase four vacant lots in Lisle and to make interest payments to other clients, the indictment states. After the client died, Browere maintained control over the estate and continued to misuse the estate’s assets, according to the indictment.
The indictment charges Browere with eight counts of mail fraud. It seeks forfeiture of the four vacant lots in Lisle, as well as properties in Geneva and elsewhere in Lisle.
An arraignment hearing will be scheduled by the Court at a later date.
The indictment alleges that Browere’s scheme began no later than 2007 and continued until approximately February 2014. Browere initially promised an annual interest return of 8.5% from the promissory notes in Douglas Capital, plus full repayment of the principal at the end of a year or upon expiration of the notes, the indictment states. Browere concealed the scheme by using principal payments from some investors to make interest payments to others, and by mailing phony account statements that inflated the market performance of their portfolios, according to the indictment. Many of the investors pledged their life savings or funds from their qualified retirement plans or individual retirement accounts, the indictment states.
When the elderly client’s money began to diminish, and some clients began requesting reimbursement of their principal investments in Douglas Capital, Browere announced that interest on the notes would be reduced to 2.5% and payment of principal amounts would be delayed until further notice, according to the indictment. In a letter to investors on Aug. 25, 2010, Browere blamed Douglas Capital’s financial problems on the “economic melt down” and the “current banking system and new government rules and regulations that continue to create havoc in this area of the economy,” according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffrey A. Monhart, Director for the Chicago Region of the U.S. Department of Labor - Employee Benefits Security Administration; Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Illinois Secretary of State Jesse White, whose Securities Department participated in the investigation.
Each count of mail fraud carries a maximum sentence of 20 years in prison, a $250,000.00 fine and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorney Patrick Otlewski.
Indictment
Former Navy Noncommissioned Officer Pleads Guilty to Accepting Bribes While Serving in AfghanistanRead the Press Release
A former Navy noncommissioned officer pleaded guilty today to accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command (Army CID), Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (Air Force OSI).
Donald P. Bunch, 46, of Pace, Florida, pleaded guilty before Senior U.S. District Judge Roger Vinson of the Northern District of Florida to a one-count information charging him with accepting bribes. Sentencing is scheduled to take place on Dec. 8, 2015.
From February to August 2009, Bunch worked as an U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan.
Bunch was responsible for replenishing food and supplies such as rice, beans and clothing at the HA Yard, and for selecting vendors from a pre-determined list to provide the necessary items. In connection with his guilty plea, Bunch admitted that he had been instructed by his predecessor to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered, and Bunch accepted, money for the purpose of influencing his selection of vendors. Bunch admitted that he received a total of approximately $25,000 from the vendors and that, as a result, he secured on their behalf more frequent and lucrative contracts. Bunch also admitted that he sent greeting cards stuffed with proceeds of the bribes to his wife at their residence in Florida, and that they used the money to pay for the construction of a new home.
This case was investigated by the FBI, SIGAR, Army CID, DCIS and Air Force OSI. This case is being prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.
Former Navy Noncommissioned Officer Pleads Guilty to Accepting Bribes While Serving in AfghanistanRead the Press Release
WASHINGTON – A former Navy noncommissioned officer pleaded guilty today to accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
The announcement was made by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command (Army CID), Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (Air Force OSI).
Donald P. Bunch, 46, of Pace, Florida, pleaded guilty before Senior U.S. District Judge Roger Vinson of the Northern District of Florida to a one-count information charging him with accepting bribes. Sentencing is scheduled to take place on Dec. 8, 2015.
From February to August 2009, Bunch worked as an U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan.
Bunch was responsible for replenishing food and supplies such as rice, beans and clothing at the HA Yard, and for selecting vendors from a pre-determined list to provide the necessary items. In connection with his guilty plea, Bunch admitted that he had been instructed by his predecessor to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered, and Bunch accepted, money for the purpose of influencing his selection of vendors. Bunch admitted that he received a total of approximately $25,000 from the vendors and that, as a result, he secured on their behalf more frequent and lucrative contracts. Bunch also admitted that he sent greeting cards stuffed with proceeds of the bribes to his wife at their residence in Florida, and that they used the money to pay for the construction of a new home.
This case was investigated by the FBI, SIGAR, Army CID, DCIS and Air Force OSI. This case is being prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.
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IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Former Middle School Teacher Sentenced for Child PornographyRead the Press Release
Former teacher Brian O. Brannen, age 42, formerly of Albany, Georgia was sentenced September 17, 2015 by the Honorable W. Louis Sands, United States District Judge in Albany, Georgia. Mr. Brannen was sentenced to 78 months imprisonment for possession of child pornography and will be required to register as a sex offender.
On April 3, 2014, a young woman who had been staying with Mr. Brannen reported to law enforcement that she had seen child pornography and other pornographic images on his computer. The Dougherty County Sheriff’s Office executed a search warrant at Mr. Brannen’s apartment and discovered the images of child pornography located in a folder on the desktop computer. These files had names and descriptions that were extremely graphic and correctly identified the files as depictions of child pornography.
While under pretrial supervision, Mr. Brannen was arrested by Dooly County Sheriff’s Office for Terroristic Threats and Acts on September 3, 2014. Based on his arrest, his pretrial bond was revoked. He has remained in custody since that time.
“Child pornography offenses are always disturbing because the child victims are robbed of their innocence and dignity at a tender age,” United States Attorney Michael J. Moore said. “This case is made even worse because Mr. Brannen maintained this material where it was seen by a young woman staying in his home and because he abused the privilege of being allowed to be out on bond awaiting trial. His inability to conform his conduct to what our society rightfully expects certainly warrants the sentence imposed.”
The case was investigated by the Dougherty County Sheriff’s Office together with the Department of Homeland Security. Assistant United States Attorney Jim Crane prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Former Hillsborough County Resident Sentenced to Federal Prison for Role in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Brendan Bolger (41, Chicago, IL) to two years in federal prison for conspiracy to commit bank, wire, and mail fraud. The Court also entered a forfeiture money judgment in the amount of $13,641,197.90, which represents the fraud perpetrated on the mortgage lenders. Bolger pleaded guilty on August 20, 2014.
According to court documents, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County. The new owners of The Arbors then engaged in a plan to convert the complex from rental apartments to condominiums. The developers financed their purchase of The Arbors with a loan from Corus Bank, a financial institution whose deposits were insured by the FDIC. The Corus loan agreement set forth substantial financial penalties for the developers if they failed to satisfy the loan requirements.
Bolger aided the developers in the sale of numerous condominiums at The Arbors through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase condominiums at The Arbors, Bolger created an addendum to the purchase contract that offered buyers various incentives such as rental supplements, money to defray maintenance costs, and a design credit to upgrade the condominium’s amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid a kickback for the amount of the design credit to the buyer from Capital Management’s bank account. In this manner, Bolger and other co-conspirators failed to disclose to both Corus Bank and to the purchasers’ mortgage lenders material facts about the financing of the sale of the condominiums.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
Former Federal Pretrial Services Employee Sentenced to Prison for Violating a Court Order Sealing an IndictmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Michelle Lee Davis, age 38, of Laurel, Maryland today to six months in prison, followed by one year of supervised release which includes six months of home confinement, for criminal contempt.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
Davis was an employee of the U.S. Probation and Pretrial Services for the District of Maryland from February 1998 to October 2014. In recent years, including in April 2014, Davis served as an administrative technician with the Pretrial Services office in Greenbelt, in which she conducted record and criminal history checks of new defendants, scheduled initial appearances with a U.S. magistrate judge, and opened and closed files related to defendants on pretrial release.
According to her plea agreement, on March 24, 2014 a magistrate judge ordered the sealing of an indictment that charged two defendants with a drug conspiracy. The initial appearance of one of the charged defendants was held on April 15, 2014, at which time Davis learned of the defendant’s identity. Davis did not disclose to her supervisors or colleagues that she knew the defendant. During two telephone conversations that day, Davis disobeyed the court order sealing the indictment by disclosing the existence and details of the sealed indictment and the identity of the defendant charged in the sealed indictment, to an acquaintance of Davis and the defendant.
United States Attorney Rod J. Rosenstein commended the FBI and DEA for their work in the investigation. Mr. Rosenstein praised the U.S. Probation and Pretrial Services for their assistance in the investigation, and thanked Assistant U.S. Attorneys Kelly O. Hayes and Arun G. Rao, who prosecuted the case.
Former Clerk at Cook County Recorder of Deeds Indicted for Accepting Cash Bribe in Exchange for Preparing Fraudulent Real Estate DeedRead the Press Release
CHICAGO — A former clerk for the Cook County Recorder of Deeds accepted a $200 cash bribe in exchange for preparing and agreeing to record a back-dated deed on an Oak Park home, according to a federal indictment announced today.
REGINA TAYLOR accepted the bribe from an individual who purportedly wanted to add a relative’s name to the deed of a residence in Oak Park, according to the indictment. Unbeknownst to Taylor, the individual was actually an undercover law enforcement agent, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Taylor, 59, of Chicago, with one count of mail fraud and two counts of wire fraud. Taylor will be arraigned before U.S. District Judge Sara L. Ellis on Sept. 24, 2015, at 10:00 a.m.
According to the indictment, Taylor offered and agreed to prepare a false quit claim deed that added the purported relative to the deed of the Oak Park property, which was allegedly owned by three deceased individuals. Taylor told the undercover agent that she usually charges $500 to prepare and record the fraudulent documents, but that in this instance she was willing to charge only $200, the indictment states.
Taylor directed the undercover agent not to tell anyone that the other individuals on the deed were deceased, according to the indictment. She then prepared a fraudulent quit claim deed and back-dated it by 18 months, confirming the purported relative as a grantee. After giving the fraudulent quit claim deed to the undercover agent to get stamped at the Village of Oak Park, the undercover agent gave Taylor $200 in cash, according to the indictment. Taylor further directed the undercover agent to bring back the stamped copy of the fraudulent deed so that Taylor could file it at the Office of the Cook County Recorder of Deeds, according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The mail fraud charge carries a maximum sentence of 20 years in prison, a $250,000.00 fine and mandatory restitution. Each count of wire fraud is punishable by a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorney Megan Church.
Indictment
Five Southern Illinois Residents Charged with Crack Cocaine OffenseRead the Press Release
Five southern Illinois residents were indicted on September 8, 2015, in a one-count superseding indictment, charging conspiracy to distribute 28 grams or more of crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Keenon J. Farr, a/k/a "Keeno," 32, Roderick L. McClain, a/k/a "Big Bama," 30, and Jeffery L. Cain, a/k/a "Fatz," 35, all of Carbondale, Tommy T. Langston, a/k/a "G," 35, of Herrin, and Tammy R. Whitton, 45, of Mt. Vernon, are charged with conspiracy to distribute 28 grams or more of crack cocaine. The indictment alleges that the offense occurred between October 2014 and July 2015, in Williamson and Jackson Counties. Farr and McClain made their initial appearances in federal court in Benton on September 17, 2015. They are currently being held without bond pending a September 22, 2015, detention hearing. Cain, Langston, and Whitton have previously made court appearances and are being held without bond pending a November 14, 2015, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the crack cocaine offense carries a penalty of a minimum of 5 years to a maximum of 40 years in federal prison, to be followed by 3 years’ supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Federal Penalty for Swampscott Water PollutionRead the Press Release
BOSTON – The Town of Swampscott entered into a Consent Decree today agreeing to pay a $65,000 civil penalty and to take critical remedial measures to address pollution the Town discharged into the ocean near local beaches.
The Consent Decree is the result of a federal enforcement action brought by the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA). The complaint filed simultaneously with the Consent Decree alleges that Swampscott discharged pollutants into its storm water drainage system in violation of its permits.
“By entering this Consent Decree, Swampscott will take the steps necessary to stop pollutants from entering Massachusetts and Nahant Bays,” said United States Attorney Carmen M. Ortiz. “Swampscott is required to locate the source of all unauthorized discharges that enter its storm drains and eliminate them. Successful implementation of the Consent Decree will result in cleaner storm water system discharges and a healthier environmental for all.”
“Under this settlement, the Town will continue to work cooperatively toward controlling contaminated storm water reaching beaches,” said Curt Spalding, Regional Administrator of the EPA’s New England office. “The Town has made improvements in recent years, and we expect that progress to continue.”
Between 2010 and 2012, the EPA tested multiple water samples from the Town’s storm water outfalls and found that the Town was discharging multiple pollutants into waters of the Massachusetts and Nahant Bays. These pollutants included e. coli, enterococcus bacteria, ammonia, and pharmaceutical and personal care products. The Town continues to discharge untreated wastewater containing sewage and other pollutants from its systems into these waters.
The Consent Decree imposes a schedule for the Town to screen and monitor its storm water outfalls during dry and wet weather. Where pollutants are found, the Town must eliminate the flows conveying the pollutants. In addition, the Town must take action to control runoff from land redevelopment projects.
The Consent Decree also assesses a $65,000 civil penalty against the Town for its Clean Water Act violations. Swampscott is subject to vigorous reporting requirements to ensure compliance with the terms of the Consent Decree. If it fails to comply, it may be subject to additional penalties as high as $2,500 per each day of violation.
Preventing pollutants from contaminating surface waters of the United States is one of the EPA’s National Enforcement Initiatives. Municipal wastewater presents significant health threats to those using contaminated waters for recreational use.
The Consent Decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the Consent Decree will be available on the Justice Department website at http://www.justice.gov/enrd/Consent_Decrees.html.
U.S. Attorney Ortiz and EPA Regional Administrator Spalding, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Susan M. Poswistilo of Ortiz’s Civil Division, Senior Attorney Michael Wagner of the EPA, and the Department of Justice’s Environmental and Natural Resources Division.
Federal Indictment Charges 16 with Narcotics Conspiracy Operating in Swain, Cherokee & Surrounding CountiesRead the Press Release
ASHEVILLE, N.C. – A federal criminal indictment unsealed today in Asheville charges 16 men and women with narcotics conspiracy operating in Swain, Cherokee and surrounding counties, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Of the 16 defendants named in the indictment, 15 have been arrested by law enforcement. The indictment is the result of a joint federal, state and local investigation, targeting the distribution of methamphetamine in Western North Carolina.
Acting U.S. Attorney Rose is joined in making today’s announcement with Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Charles Addington, Deputy Associate Director of the Bureau of Indian Affairs, Division of Drug Enforcement; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Christopher Kuvlesky, Assistant Special Agent in Charge, Atlantic Field Office, National Park Service, Investigative Services Branch; Colonel William J. Grey, Commander of the North Carolina State Highway Patrol; Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office; Chief Ben Reed of the Cherokee Indian Police Department; Sheriff Robert L. Holland of the Macon County Sheriff’s Office; and Sheriff Danny Millsaps of the Graham County Sheriff’s Office.
In announcing the charges, Acting U.S. Attorney Rose said, “Drug dealers think they can operate under the radar in smaller, rural areas, and evade detection. They are wrong. We will partner with law enforcement agencies throughout Western North Carolina to protect all communities, large and small, and crackdown on drug traffickers that threaten the safety and well-being of the people living there.”
“The success of this investigation speaks to the continued dedication between our local, state and federal law enforcement partners in targeting and dismantling meth distribution rings that profit by spreading their poison in our communities. Strong partnerships such as this one underscore the power of our combined forces and demonstrate our collective impact on the war against meth,” said Special Agent in Charge Salter, with DEA’s Atlanta Field Division.
All defendants are charged with one count of engaging in a conspiracy to distribute and to possess with the intent to distribute methamphetamine, with some facing additional drug and firearms violations.(Please see the attached chart for a list of all charges and penalties for each defendant). The 16 charged are:
- James Dee Ball, 36, of Bryson City, N.C. (arrested)
- Kelsie Marie Burch, 23, of Sylva, N.C. (not arrested yet)
- Theresa Lorene Burns, 55, of Bryson City. (arrested)
- Anna Marie Postell Cochran, 21, of Bryson City. (arrested)
- Thomas Bart Cochran, 35, of Bryson City. (arrested)
- Jeremiah Jerome Gibby, 35, of Bryson City. (arrested)
- Hoke Benjamin Caleb Hayes, 24, of Hoschton, Georgia. (arrested in Georgia)
- Bryan Keith Jenkins, 35, of Robbinsville, N.C. (in state custody)
- Ray Chad Lequire, 34, of Bryson City. (arrested)
- Amanda Brooke McKinney, 34, of Bryson City. (arrested)
- Miranda Nations, 21, of Bryson City. (arrested)
- Tammie Lynn Payne, 44, of Waynesville, N.C. (arrested)
- Brandi Lynn Smith, 30, of Cleveland, Georgia. (arrested)
- Gregory Daniel Steedly, 48, of Lawrenceville, Georgia. (arrested in Georgia)
- Cain Hamilton Strickland, 34, of Atlanta, Georgia. (in state custody)
- Sebern Todd Wyatt, 50, of Bryson City. (arrested)
According to allegations contained in the indictment, from about April 2013 to about July 2015, in Cherokee, Haywood, Jackson, Macon, and Swain Counties, the defendants conspired with each other to distribute and to possess with intent to distribute methamphetamine. According to court records and statements made in court, over the course of the investigation law enforcement recovered more than three pounds of methamphetamine, drug paraphernalia, approximately $43,000 in cash, 11 firearms, including semi-automatic pistols and rifles, and ammunition.
All defendants named in the indictment are in currently in custody, except Kelsie Marie Burch, who remains a fugitive.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until they have been proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Rose thanked all the law enforcement agencies involved in this investigation for their continued cooperation and assistance. The case is being prosecuted by Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville.
FCI-Greenville Inmate Sentenced for Possession of Contraband by A Federal InmateRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 18, 2015, Anthony Johnson, 25, was sentenced on a one- count indictment charging him with Possession of Contraband by a Federal Inmate. Johnson was an inmate at the Federal Correctional Institution located in Greenville, Illinois, commonly known as FCI-Greenville, at the time the offense was committed. Johnson was sentenced to a term of 28 months’ imprisonment, which must be served consecutively to his current sentence, 3 years’ supervised release, fined $100, and ordered to pay a $100 special assessment. Johnson has been held without bond since his arraignment on May 12, 2015.
The charge arose when, on September 28, 2014, an officer monitoring the visiting room at FCI-Greenville observed the defendant swallow an unknown object. Based on this behavior, the defendant was immediately placed in a dry cell after his visit ended so that his bowel movements could be monitored. On October 1, 2014, the defendant defecated out one (1) balloon which contained a white powdery substance, later determined to be heroin. Federal inmates are prohibited from possessing heroin.
The case was investigated by the Bureau of Prisons’ Special Investigation Section. The case was assigned to Assistant United States Attorney Angela Scott.
Essex County, New Jersey, Woman Admits Participating in Stolen Identity Refund Fraud SchemeRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey, woman today admitted that she conspired to obtain more than $1 million through fraudulently generated refund checks issued by the U.S. Treasury, U.S. Attorney Paul J. Fishman announced.
Marie Poitevien, 53, of Orange, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging her with conspiring to steal government funds.
Background on Stolen Identify Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals.
- SIRF perpetrators complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund.
- They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access.
- With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control.
According to documents filed in this case and statements made in court:
From October 2009 through June 2013, Poitevien participated in a scheme by which her conspirators made fraudulent tax refund applications and had the U.S. Treasury send the refund checks to Poitevien’s residence. Poitevien then negotiated the checks by depositing them into her personal bank account and withdrawing the funds. Poitevien admitted cashing 298 tax refund checks, made payable to 139 different victims, and totaling $1,101,689.
The count of conspiracy to steal government funds to which Poitevien pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the pecuniary gain or loss from the offense. Sentencing is scheduled for Dec. 17, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Linda Foster Esq. Assistant Federal Public Defender, Trenton
Employee Admits Stealing at Least $414,000 from the Bethesda Company Where She WorkedRead the Press Release
Greenbelt, Maryland – Amy Ranee Powell, age 41, of Huntingtown, Maryland pleaded guilty today to interstate transportation of stolen money in connection with a scheme to embezzle over $414,000 from her employer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief J. Thomas Manger of the Montgomery County Police Department.
According to Powell’s plea agreement, from 2003 through 2013 Powell was a trusted employee of an architectural firm in Bethesda, Maryland, whose duties included bookkeeping and office management. As part of her responsibilities, Powell wrote checks linked to the company’s bank account to pay the company’s bills. The company’s owner endorsed the number of blank checks needed to pay the bills, and then gave the checks to Powell to be completed.
Powell admitted that from December 2010 through September 2013, she wrote at least 82 unauthorized checks from the company’s account, payable to herself. The checks ranged in amount from $500 to $8,000, and totaled approximately $420,444.42. Powell transported at least 16 unauthorized company checks, totaling $80,546.55, from the company’s office in Bethesda to her bank in Springfield, Virginia, where she deposited the checks into her bank account. When the fraud was discovered in September 2013, Powell’s bank returned $6,322.40 to the company for an unauthorized check Powell deposited on September 5, 2013.
Powell admitted that she diverted at least $414,122.02 from the company’s bank account and deposited those funds into her own bank account.
As part of her plea agreement, Powell has agreed to the entry of a restitution order in the full amount of the victim’s losses, which is at least $414,122.02. In addition, Powell will be required to forfeit any assets traceable to her offense, substitute assets, and/or a money judgment equal to the value of the property involved in the offense.
Powell faces a maximum sentence of 10 years in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 6, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the Montgomery County Police Department, Financial Crimes Section for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Jennifer L. Wine and Assistant U.S. Attorney Sujit M. Raman, who are prosecuting the case.
Eglin Air Force Base Civilian Contractor Sentenced to Prison for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – John Wesley Sirmans, 61, of Niceville, Florida, was sentenced to 84 months in prison today for receipt of child pornography. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Sirmans was a civilian contractor at Eglin Air Force Base, who accessed child pornography images through the internet using his work computer. During his guilty plea on March 31, 2015, Sirmans admitted that, between June and December 2014, he knowingly received child pornography images through the internet as charged in the Indictment. In total, Sirmans had more than 800 images of child pornography located in his office on Eglin Air Force Base, including many images of children under the age of 12.
The charges were the result of a joint investigation by the Walton County Sheriff’s Office, the Air Force Office of Special Investigation, and the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Jeffrey Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854,
Depew Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Mark Newman, 56, of Depew, NY, who was convicted of possession of child pornography, was sentenced to 10 years in prison and 15 years supervised release by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that during this investigation, the Government determined that Newman engaged in a pattern of sexual abuse of a minor. In addition, on September 26, 2012, a search warrant was executed at the defendant's residence. Items seized from Newman’s residence that contained child pornography included a Toshiba laptop computer. A forensic analysis uncovered approximately 300 videos of child pornography stored on the computer. Some of the images depicted prepubescent minors or minors less than 12 years of age, as well as images of violence.
The sentencing is the result of an investigation on the part of Agents of the Federal Bureau of Investigation.
Department of Defense Employee Sentenced to over Three Years in Prison for Fraudulently Obtaining over $750,000 from Contracts with Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Mark Nixon, age 54, of Silver Spring, Maryland, today to 42 months in prison, followed by three years of supervised release, for conspiring to defraud the United States by steering federal contracts to a company in which he secretly held a financial interest. Judge Garbis also entered an order requiring Nixon to pay restitution of $750,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL). From 2008 to December 2010, Nixon was the Director of Vehicle Technology Directorate with ARL at Aberdeen Proving Ground. He was married to Sandra Nixon.
The Nixons had a financial interest and management role in the operation of the following companies: Motile Robotics, Inc. (MRI), located in Joppa, Maryland; Atlantic Capital Enterprises (ACE); and Arrow Technical Incorporated (ATI).
Mark and Sandra Nixon, along with Kenneth Dawson, created and operated MRI. Dawson had full time employment with two defense contractors at Eglin Air Force Base in Florida, where he lived. In 2007, Dawson used his personal credit cards to pay for startup costs associated with MRI, and the Nixons reimbursed Dawson for these expenses. Although Dawson was the supposed president of MRI, in reality, Mark and Sandra Nixon created MRI, provided significant input regarding its operation, and were in effect silent and undisclosed partners, owners and co-presidents. They helped operate MRI using the aliases “Paul Martin” and “Lisa Hart” in order to conceal their financial interest.
According to the plea agreements, in 2008, Mark Nixon created and approved government documents that caused ARL to fund micro propulsion and wind tunnel research, including the fabrication of a small open-jet wind tunnel. Mark Nixon was designated as the team leader for ARL on the research project.
Beginning in February 2008, the United States awarded a large defense contractor a task order, worth approximately $3.6 million, to construct the open flow wind tunnel. Mark Nixon persuaded the defense contractor to use MRI as a subcontractor. Mark Nixon also played an important role in the government awarding the defense contractor another task order to construct a closed circuit wind tunnel, for approximately $3.5 million, under which MRI was again a subcontractor. Mark Nixon provided the contracting officer with a technical evaluation of the contract and its cost, and acted as the government official overseeing and managing this work on a routine basis.
Although Nixon knew that he had a prohibited financial interest in MRI, he conducted a technical evaluation of MRI’s capabilities as a subcontractor, and approved invoices listing false labor and materials charges. These included more than $35,000 in false labor charges submitted for a relative of Sandra Nixon, who was characterized as an aerospace engineer. In fact, the relative was a retired school employee.
MRI received more than $5 million in federal funds under these subcontracts. Mark Nixon caused MRI to pay money to Arrow Technical, and Arrow Technical to pay Atlantic Capital, both companies in which the Nixons had a financial interest. The Nixons and Dawson personally benefited from over $750,000 sent to these companies.
Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, and Kenneth Dawson, age 52, of Niceville, Florida, previously pleaded guilty to conspiring to defraud the United States. Judge Garbis has scheduled sentencing for Sandra Nixon on October 2, 2015 at 9:30 a.m. and for Kenneth Dawson on October 30, 2015 at 10:00 a.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit, DCIS and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and P. Michael Cunningham, who are prosecuting the case.
Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Eight North Texas residents who were convicted for their respective roles in a methamphetamine distribution conspiracy that operated in North Texas and elsewhere have been sentenced to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Irineo Ramos, 32, was sentenced by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison. He pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. Four co-defendants also pleaded guilty to that offense and were sentenced earlier as follows:
Juan Carlos Cruz, a/k/a Cruzito, 28, 120 months in federal prison
Carlos Wences Castaneda, a/k/a Chaco, 38, 235 months in federal prison
Pablo Ramirez Gallegos, a/k/a Primo, 28, 44 months in federal prison
Ismael Perez, a/k/a Gordo, 26, 41 months in federal prison
Bernardo Rodriguez Martinez, a/k/a Pamo, 27, and Martin Rodriguez Martinez, a/k/a Chivo, 34, each pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine and conspiracy to commit money laundering. Each was sentenced to 240 months in federal prison.
Monica Lemus, 32, was sentenced to 27 months in federal prison for conspiracy to commit money laundering.
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation involved multiple undercover methamphetamine purchases and the seizure of approximately $77,000 in U.S. currency, 18 firearms, 12 kilograms of Ice, 1.5 gallon liquid Ice, 537.7 grams of heroin and three conversion labs.
Bernardo Rodriguez Martinez and Martin Rodriguez Martinez used individuals to deposit money from the methamphetamine sales into various bank accounts in the U.S. In fact, from May 3, 2013, to September 9, 2013, approximately $296,321 in drug proceeds was deposited into various accounts in the Dallas area. Some of the money was sent to Mexico, via wire transfers and couriers, to ensure the supply of methamphetamine continued.
The FBI, IRS Criminal Investigation, Dallas Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Drug Enforcement Administration investigated. Assistant U.S. Attorney George Leal prosecuted.
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DOJ Awards Nearly $500,000 to Combat Gun Crime in SeattleRead the Press Release
The U.S. Department of Justice today awarded nearly $500,000 in federal grant money for an innovative program to reduce gun violence in Seattle, announced U.S. Attorney Annette L. Hayes. The grant, under the Project Safe Neighborhood (PSN) program supports the Puget Sound Regional Crime Gun Task Force, which is focused on increasing the ability of law enforcement to trace shell casings and firearms used in crimes and thus identify shooters and take them off the streets. The grant will also pay part of the costs for a Special Assistant United States Attorney to prosecute gun crimes, and provides funding to Harborview Medical Center to work with gunshot victims in an innovative hospital-based intervention and structured outreach program to prevent future firearm-related crime.
“Research led by Harborview Injury Prevention & Research Center shows that individuals admitted to the hospital for gunshot wounds are at a significantly higher risk of being killed, arrested or reinjured with a gun in the five years following admission,” said U.S. Attorney Annette L. Hayes. “This grant not only helps law enforcement identify and prosecute those who are involved in gun crime, it works to help stop the cycle of violence by intervening with high-risk individuals.”
“The Project Safe Neighborhood program has allowed us to create a successful partnership among state and federal prosecutors, and law enforcement agencies, to combat and decrease gun violence in our region by identifying the worst of the worst firearms and violent offenders in our state’s largest county,” said King County Prosecuting Attorney Dan Satterberg.
The grant will make it possible for all crime gun information to be entered into the National Integrated Ballistic Information Network (NIBIN) database within 72 hours of an incident. NIBIN is administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and provides federal, state and local law enforcement, forensic scientists, and prosecutorial agencies with an automated ballistic imaging system that aids investigations by using digital images of shell casings to link crimes involving firearms. By connecting cases involving the same firearm more efficiently and effectively, NIBIN can have a direct impact on solving violent crime. The grant allocates $50,000 to eliminate a backlog of more than 5000 shell casings in Western Washington waiting to be tested.
“Thorough analysis of forensic evidence is a vital component of our ongoing efforts to curb gun violence in our community,” said Seattle Police Chief Kathleen O’Toole. “This grant will help fund our collaborative partnership with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Washington State Patrol Crime Lab to trace all spent shell casings found at crime scenes.”
In addition, the grant helps support the salary of a Senior Deputy King County Prosecutor who is specially designated to prosecute firearms cases in federal court. This prosecutor reviews all firearms cases filed in King County to evaluate whether they are appropriate for federal prosecution and the supervised release that follows the prison term. The grant also supports the FACE program (Firearms Crimes Enhancement Program) which informs soon to be released state offenders of the potential federal penalties for possessing a firearm.
Finally, the grant funding provides for anti-violence initiatives in the community and with groups identified as at high risk for involvement in gun violence. Nearly $40,000 is targeted for the Seattle Police Department to develop a strategic plan for addressing gang violence. Over two years, more than $50,000 will fund research and outreach at Harborview’s Injury Prevention & Research Center in an innovative program to work with gunshot victims to prevent future firearms related injury. An additional $30,000 is allocated for media outreach addressing gun violence and approximately $100,000 is set aside for academic study and review of the funded programs to determine the level of effectiveness of the grant-supported strategies.
“Our communal sense of safety has been shaken by recent national and local episodes of gun violence,” said UW Medicine’s Dr. Monica Vavilala, director, Harborview Injury Prevention & Research Center. “Most firearm violence is preventable and the grant funding will allow us to address key causes of gun violence and lay the groundwork for developing programs that work to reduce firearm related injuries.”
Special Agent in Charge Douglas Dawson of the ATF Seattle Field Division said “I am excited about the Project Safe Neighborhood funding and I look forward to working with our Federal, State and Local partners in our continual efforts towards the reduction of violent crime in the Western District of Washington.”
DNA People’s Legal Services Receives $400,000 in Federal Grant Funds to Support Victims of Domestic ViolenceRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $400,000 in grant funds have been awarded to the DNA People’s Services to continue providing legal services, case evaluation, and representation to low-income victims. The grant funds were awarded by the Office on Violence Against Women (“OVW”), which is a component of the Department of Justice (“DOJ”).
“This funding will provide important, comprehensive legal services in support of victims of sexual assault, domestic violence, dating violence and stalking in and around the Navajo Nation.” said U.S. Attorney Leonardo. “We encourage all agencies to be proactive and apply for future grant funding through our Office on Violence Against Women.”
Information about OVW and its programs can be found at: http://www.justice.gov/ovw.
RELEASE NUMBER: 2015-083_DNA_PEOPLES_LEGAL_SVCS GRANT (2015-WL-AX-0031)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Chairman McCaul Sponsors 2015 Congressional Open ForumRead the Press Release
On September 17, 2015 INTERPOL Washington, the U.S. National Central Bureau (USNCB), held its third Congressional Open Forum in the Rayburn House Office Building. The forum was attended by many Congressional staffers as well as some INTERPOL Washington staff. These events are intended to educate staffers and members of Congress about what INTERPOL Washington is and how the agency functions. They are incredibly important for building and maintaining relationships between INTERPOL Washington and Congress as well as helping new staff to learn key facts about the agency and dispel any misconceptions that they may have.
This Congressional Open Forum was sponsored by Congressman Michael McCaul (R-TX-10), the Chairman of the House Homeland Security Committee. The Chairman opened the forum by taking time to explain how INTERPOL Washington fits into the current climate of politics and international current events and then briefly took questions from the audience. The Chairman specifically touched on the refugee crisis in the European Union and the expanding role that INTERPOL Washington could take in helping to screen any refugees who come to the United States.
The audience received an extensive INTERPOL 101 presentation and then the discussion was opened to the panel of experts who took questions from the audience. The panel included Director Shawn Bray, Deputy Director Geoff Shank, Senior Advisor to the Director Skip Sigmon, Principal Policy Advisor Wayne Salzgaber, General Counsel Kevin Smith, and Assistant Director Royce Walters. The panelists discussed the expanding Stolen and Lost Travel Document program (SLTD) and the role INTERPOL Washington plays in tracking and apprehending Foreign Terrorist Fighters.
The INTERPOL Washington Congressional Open Forum was a fantastic opportunity for all those involved and another success for the agency. The agency would like to take this opportunity to publicly thank all of those who attended the event or contributed to its success in any way.
Calumet Township Level II Assessor, Pamela Frizzelle, IndictedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that an Indictment was filed against Pamela Griffin Frizzelle, 52, of Merrillville, Indiana for seven counts of Hobbs Act Extortion.
According to documents filed in the case, Frizzelle, an employee of the Township Assessor’s Office, allegedly solicited money from business owners, who’s businesses engaged in interstate commerce, in exchange for reducing or attempting to reduce tax assessments on or about the following dates: March 2013 from Business Owner 1 for $1000; February 2014 from Business Owner 2 for $200; February 2014 from Business Owner 3 for $600; October 14, 2014 from Business Owner 2 for $400; October 23, 2014 from Business Owner 2 for $200 on behalf of Business Owner 4; October 24, 2014 from Business Owner 4 for $600; and January 25, 2015 from Business Owner 5 for $1000.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gary T. Bell.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Buffalo Man Pleads Guilty to Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alie Hassan, 29, of Buffalo, NY, pleaded guilty food stamp fraud, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that Hassan owned and operated the Broadway Mart & Deli located at 1358 Broadway Street in Buffalo. From April 2011 to August 30, 2012, the defendant knowingly purchased food stamp benefits for less than their full value for cash.
The plea is the result of an investigation by Special Agents of the U.S. Department of Agriculture.
Sentencing is scheduled for January 13, 2015 at 2:00 p.m. before Judge Wolford.
Brookyln Resident Indicted for Sex Trafficking MinorsRead the Press Release
Yesterday, a 12-count superseding indictment was unsealed in federal court in Brooklyn charging Alvaun Thompson, also known as “LP,” “Love Pimpin,” “Legit Pimp” and “AT,” with three counts of child sex trafficking, one count of production of child pornography, and various other prostitution-related offenses. The defendant’s arraignment is scheduled for Monday, September 21, 2015, before United States District Judge I. Leo Glasser.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and William J. Bratton, Commissioner, New York City Police Department.
As alleged, from 2013 until his arrest in January 2015, the defendant recruited and enticed two minor victims to engage in prostitution and commercial sex acts. One of Thompson’s victims was 13 years old when he began exploiting her through commercial sex. While inducing one minor victim to engage in sexually explicit activity, the defendant used his cell phone to create a pornographic video recording of the minor. The defendant regularly promoted and managed his prostitution business over the Internet and on two occasions transported his victims to other States intending for them to engage in prostitutions.
“As alleged, the defendant sexually exploited vulnerable minor victims for profit,” stated Acting United States Attorney Currie. “We will aggressively investigate and prosecute those who would sexually exploit our children.”
FBI Assistant Director-in-Charge Rodriguez stated, "The sexual exploitation of children promotes the practice of inducting innocent victims into a life of prostitution and trapping them in a life of misery. This is an epidemic that is spreading rapidly throughout the nation, and the migratory nature of these crimes makes it critical for the FBI and our law enforcement entities to work together to tackle this widespread problem."
“There is no place in our city for the abuse of minors, particularly when the crime is sexual in nature. I commend the work of the NYPD investigators, FBI agents, and the prosecutors of the U.S. Attorney’s Office for the Eastern District of New York who have tirelessly pursued this case,” said Police Commissioner Bratton.
If convicted, the defendant faces a mandatory minimum term of 15 years imprisonment and a maximum sentence of life imprisonment. The charges in the indictment are merely allegations, and the defendants is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s General Crimes Section. Assistant United States Attorneys Matthew J. Jacobs and Jennifer S. Carapiet are in charge of the prosecution.
The Defendant:
Alvaun Thompson
Age: 28
E.D.N.Y. Docket No. 15-CR-80 (ILG)
Bridgeport Man Sentenced to 6 Years in Prison for Participating in Drug Robbery SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TREVOR PIERCE, 30, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 72 months of imprisonment, followed by five years of supervised release, for planning to conduct an armed robbery of narcotics stash house.
This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, in March 2014, the ATF began an investigation into Carlos “Camby” Colon and Carlos “Joel” Colon, who were known narcotics and firearm traffickers in Bridgeport. Law enforcement also had received information that Joel Colon was interested committing an armed robbery of a drug dealer. During the investigation, which employed the use of an ATF agent working in an undercover capacity, the Colons recruited PIERCE and others to commit an armed robbery of what they believed to be a narcotics stash house of 15 kilograms of cocaine.
On April 11, 2014, Pierce, the Colons, Humberto Soto, Markus Mendez, Nelson Diaz and Hiram “Gringo” Mojica gathered at a location in Stamford where they believed they would be informed of the address of the narcotics stash house, and would then travel to the stash house to conduct the robbery. All seven were arrested at that time. A search of the car that PIERCE, Diaz and Mojica drove to the location revealed a loaded .40 caliber pistol, an EO Tech sight, black gloves, as well as two rolls of duct tape that Diaz had recently purchased. A search of the center console of the vehicle that Soto and Mendez drove to the meet location revealed a loaded and 9mm pistol.
PIERCE has been detained since April 11, 2014. On March 10, 2015, he pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of use of a firearm in furtherance of a crime of violence.
PIERCE’s criminal history includes state convictions for robbery, sexual assault, assault and breach of peace.
Camby Colon, Joel Colon, Soto, Diaz, Mendez and Mojica have also pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
Armed Robbers ConvictedRead the Press Release
Three individuals were convicted in federal court for committing armed robberies in Miami, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), made the announcement.
Jesse Foots, 24, of Miami, was convicted on September 11, 2015, of one count of participating in a Hobbs Act robbery conspiracy, two counts of participating in a Hobbs Act robbery, and two counts of brandishing a firearm during a crime of violence, following a four day jury trial before United States District Court Judge Cecilia M. Altonaga.
According to evidence presented at trial, on February 26, 2015, Foots and his co-conspirator, Dario Pinson robbed a Miami-Dade County MetroPCS and a Pizza Hut establishment. During the course of the robbery, Foots struck a victim with a firearm and held customers and employees at gunpoint. Foots faces a statutory mandatory minimum of 32 years to life in prison. Sentencing is scheduled for November 19, 2015.
Dario Pinson, 19, of Atlanta, Georgia, previously pled guilty to participating in the robbery conspiracy with defendant Foots. Pinson and co-conspirator Kendrick Belfon, 18, of Miami, pled guilty to a separate armed robbery conspiracy which occurred on February 24, 2015. Pinson was sentenced to 35 years in prison for his criminal conduct. Belfon was sentenced to 10 years in prison.
Mr. Ferrer commended the collaborative investigative efforts of the ATF Miami Field Office/MDPD Street Terror Offender Program, FBI Miami Field Office’s Multi-Agency Violent Crimes Task Force, MDPD’s Robbery Bureau, Miami Shores Police Department, Plantation Police Department, Pembroke Pines Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Davie Police Department, and Miramar Police Department. Mr. Ferrer also thanked the Crisp County Sheriff’s Office, Riverdale Police Department, Clayton County Police Department and Coweta County Sheriff’s Office, in Georgia, for their assistance. The cases are being prosecuted by Assistant United States Attorneys for the Southern District of Florida.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Amarillo Man Sentenced to 135 Months in Federal Prison on Attempted Child Sex Trafficking ConvictionRead the Press Release
AMARILLO, Texas — An Amarillo man, Deswan Newsome, 19, who pleaded guilty in July 2015 to an indictment charging one count of attempted sex trafficking of a child was sentenced today by U.S. District Judge Mary Lou Robinson to 135 months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to plea documents filed in the case, Newsome admitted that from approximately March 30, 2015 to April 3, 2015, he attempted to recruit a 15-year-old girl to engage in commercial sex acts.
The investigation began when a Task Force Officer (TFO) with U.S .Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) learned that a particular individual was using Facebook to recruit and entice teenage females for prostitution. In March 2015, the TFO set up an undercover Facebook account representing himself as a 15-year-old female, “A.M.,” and the two exchanged messages about A.M. working as a prostitute, with the individual claiming, “You can make 2500 in a week if you really put the work into it.” The individual sent A.M. his phone number and the two discussed a meeting, however the conversation ended without any arrangements being made.
On April 1, 2015, the TFO (A.M.) received a private message on his undercover Facebook account from “Deswan Newsome,” later identified as defendant Newsome. Newsome and A.M. exchanged messages about A.M. engaging in prostitution, and A.M. advised Newsome that she was 15-years-old.
On April 2, 2015, an Amarillo Police Department officer, posing as A.M., made a phone call to Newsome, who answered, but then turned the call over to a female who provided more details about prostitution to A.M. A.M. advised this female that she was 15-years-old.
On April 3, 2015, A.M. and Newsome exchanged messages and arranged to meet at a convenience store in Amarillo so A.M. could engage in prostitution. When Newsome arrived at the location, he was identified and taken into custody. Newsome admitted talking to A.M. on Facebook and said that he was going to have someone else teach her how to perform sex acts, and that he’d get 60 percent of the money she made for performing the commercial sex acts.
The Amarillo Police Department and HSI investigated. Assistant U.S. Attorneys Timothy Hammer and Joshua Frausto prosecuted.
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