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16 September 2015
Justice Department Awards over $97 Million to Improve Public Safety and Victim Services for American Indian Communities and Alaska Native VillagesRead the Press Release
WASHINGTON, DC. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.
Eight Tribes in the Western District of Washington successfully competed for the grant funding. These grants include: Makah Tribe - $883,800; Nooksack Tribe - $449,658; Port Gamble S’Klallam - $523,413; Puyallup Tribe - $232,476; Quileute Tribe - $377,666; Skokomish Tribe - $291,941; Squaxin Island Tribe - $940,427; and the Suquamish Tribe $1,522,365.
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
“This $5.2 million in grant funding will help make our Tribal communities safer by providing training and equipment to police, support services to victims of crime -- including those affected by domestic violence -- and funding for substance abuse treatment programs,” said U.S. Attorney Annette L Hayes. “I commend the Tribal leaders who identified these needs in their communities and successfully competed for these funds.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indian communities and Alaska Native villages experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of today’s awards is available at www.justice.gov/tribal/.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Justice Department Awards over $97 Million to Improve Public Safety and Victim Services for American Indians and Alaska NativesRead the Press Release
TULSA, Okla. – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.
The grant recipients from the Northern District of Oklahoma include:
- Cherokee Nation, Public Safety and Community Policing (COPS), $936,872
- Eastern Shawnee Tribe of Oklahoma, Violence Against Women Tribal Governments Program (OVW), $784,000
- Muscogee (Creek) Nation, Public Safety and Community Policing (COPS), $894,468
- Muscogee (Creek) Nation, Justice Systems and Alcohol and Substance Abuse (BJA), $739,944
- Osage Nation of Oklahoma, Violence Against Women Tribal Governments Program (OVW), $877,882
- Quapaw Tribe of Oklahoma, Public Safety and Community Policing (COPS), $513,332
- Quapaw Tribe of Oklahoma, Violence Against Women Tribal Governments Program (OVW), $449,420
- Wyandotte Nation, Public Safety and Community Policing (COPS), $299,746
- Wyandotte Nation, Violence Against Women Tribal Governments Program (OVW), $233,945
“Today’s more than $5.7 million in grant funding reflects the Department of Justice’s strong commitment to assisting tribes with improving public safety and preventing violence against women in the Northern District of Oklahoma,” said United States Attorney Danny C. Williams Sr. “My office is deeply committed to increasing engagement and coordination with native tribes for the betterment and safety of their members and communities. We regard our responsibility to the tribes as a significant priority.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of today’s awards is available at www.justice.gov/tribal/. A fact sheet on CTAS is available at /media/791821/dl?inline.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
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Justice Department Awards over $97 Million to Improve Public Safety and Victim Services for American Indians and Alaska NativesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Washington, DC – The Department of Justice today announced 206 awards, totaling more than $97 million, to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees. The announcement was made at the 2015 Tribal Leader Briefing, sponsored by the National Congress of American Indians, and included Tribal leaders, Members of Congress and Administration officials.
The Aroostook Band of Micmacs was awarded $894,553 for its Violence Against Women Tribal Government Program. The Penobscot Nation was awarded $876,889 for its Violence Against Women Tribal Government Program and $307,891 for its Juvenile Healing to Wellness Courts.
The awards are made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
Todd Lowell, the Tribal Liaison for the United States Attorney’s Office for the District of Maine said: “these awards to support efforts to reduce domestic and dating violence and to promote wellness and healing for tribal youth will undoubtedly help make these two Maine tribal communities safer and healthier.”
“For the past five years, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded hundreds of programs to better serve crime victims, promote community policing, and strengthen justice systems. This year’s awards also support efforts to reduce domestic and dating violence, and promote wellness and healing for tribal youth, among many other programs.”
Since then, more than 1,400 grants totaling more than $620 million have been provided to enhance law enforcement practices, victim services, and sustain crime prevention and intervention efforts in nine purpose areas; public safety and community policing; justice systems planning: alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to identifying and accessing culturally relevant services. CTAS funding helps tribes to develop and strengthen tribal justice systems’ response to crime, while significantly increasing programs and services available to them.
A listing of today’s awards is available at www.justice.gov/tribal/.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.Indian Tribes in Kansas Receive More than $950,000 in Public Safety GrantsRead the Press Release
KANSAS CITY, KAN. – Indian tribes in Kansas are being awarded more than $950,000 in public safety grants from the U.S. Dept. of Justice, U.S. Attorney Barry Grissom said today.
“Our goal is to strengthen and sustain native communities in Kansas by improving public safety and promoting the fair administration of justice,” said U.S. Attorney Barry Grissom.
The grants, awarded through the Justice Department’s Coordinated Tribal Assistance program, include:
- Iowa Tribe of Kansas and Nebraska: $426,465 for justice systems and alcohol and substance abuse through the Bureau of Justice Assistance, and $449,741 for prevention of violence against women and tribal governments program through the Office of Violence Against Women, for a total of 876,206
- Prairie Band Potawatomi Nation: $74,764 for comprehensive tribal justice systems strategic planning from the Bureau of Justice Assistance.
Nationally, the Justice Department announced 206 awards for FY 2015 to American Indian tribes totaling more than $97 million to enhance law enforcement practices and sustain crime prevention and intervention efforts. The grants are awarded in purpose areas including public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, violence against women, juvenile justice and tribal youth programs.
A listing of the awards is available at www.justice.gov/tribal/ . A fact sheet on is available at /media/791821/dl?inline.
Hillsborough County Resident Pleads Guilty to Bankruptcy Fraud Charges and Lying to the Office of the United States TrusteeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that David W. Griffin (44, Lutz) today pleaded guilty to one count of bankruptcy fraud and one count of making a false statement under oath during a bankruptcy proceeding. Griffin faces a maximum penalty of 5 years in federal prison for each charge. A sentencing date has not yet been set.
According to court documents, Griffin operated a foreclosure rescue scheme through his companies, Bay2Bay Area Holding, LLC and Business Development Consultants, LLC. The purpose of the scheme was to obtain quitclaim or warranty deeds from distressed homeowners facing foreclosure in return for false promises to rescue their homes from foreclosure by negotiating with creditors, renting the property back to the homeowner to obtain rental income, and falsely promising that the homeowner could repurchase the property from Griffin. To maximize his rental income, Griffin also prevented creditors and guarantors, including the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Administration, from pursuing lawful foreclosure and eviction actions against homeowners who had defaulted on their mortgages. This was accomplished by filing, or causing to be filed, fraudulent bankruptcies in the names of the homeowners without their knowledge or consent.
Griffin also admitted that he had lied under oath in sworn testimony before the Office of the United States Trustee. Under penalty of perjury, Griffin stated that he had no knowledge of a bankruptcy petition filed in the name of his company, Bay2Bay Area Holding Group, when in fact, he had prepared the petition and had directed an individual to sign his name and file the petition with the United States Bankruptcy Court for the Middle District of Florida.
Griffin has agreed to make full restitution to the Clerk for the United States Bankruptcy Court for the Middle District of Florida. The estimated losses resulting from Griffin’s conduct are approximately $25,125.00.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Federal Housing Finance Agency - Office of Inspector General, and the U.S. Department of Housing and Urban Development – Office of Inspector General. The Office of the U.S. Trustee in Tampa also provided substantial assistance. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Hazleton Man Charged with Ten Counts of Heroin Distribution; Some Near A SchoolRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 44-year-old Hazleton resident was indicted by a federal grand jury late yesterday in Scranton, on 10 counts of distribution and possession with intent to distribute heroin.
According to United States Attorney Peter Smith, the defendant, Israel Calcano-Garcia, a citizen of the Dominican Republic, allegedly committed the crimes between January 2015 and September 2015, in Luzerne County.
The charges in the indictment resulted from an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, and Hazleton Police.
Eight of the charges allege that the defendant distributed heroin within 1,000 feet of a school. Each of those charges is punishable by a mandatory minimum one-year prison sentence and a potential maximum sentence of 40 years in prison. Calcano-Garcia faces up to 20 years in prison if he is convicted on the two other charges.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is imprisonment for 20 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted on Firearm ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg man has been indicted by a federal grand jury in Harrisburg on firearm charges.
According to United States Attorney Peter Smith, Christopher Fleisher, age 35, of Harrisburg, Pennsylvania was charged in an indictment with being a felon in possession of a firearm and with possessing a stolen firearm. The indictment alleges the offenses occurred on June 4, 2015 in Harrisburg and involved a stolen .38 caliber Smith and Wesson handgun.
The case was investigated by the by the Harrisburg Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Harrisburg Police Department and the Commonwealth of Pennsylvania’s Office of Probation and Parole. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Gun Charge Added Against a Laurel Man Previously Indicted for His Role in the Murder of a Robbery VictimRead the Press Release
Baltimore, Maryland – A federal grand jury returned a second superseding indictment today against Taylor King Pepe, age 21, of Laurel, Maryland on charges arising from the robbery of an individual who was shot and killed.
The second superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to the four count indictment, on January 23, 2014, Pepe and others robbed an individual at gunpoint of Oxycodone pills. The victim was shot and killed.
The second superseding indictment adds an allegation that Pepe possessed a revolver on January 23 and 24, 2014. Pepe was allegedly prohibited from possessing a firearm pursuant to a protective order issued by the District Court of Howard County on October 3, 2013.
Pepe faces a sentence of 20 years in prison each for the conspiracy and for the robbery; a mandatory minimum of 10 years and a maximum of life in prison for aiding in the discharge of a firearm during a crime of violence; and 10 years in prison for possession of a firearm by a prohibited person. His initial appearance has not been scheduled. Pepe remains in federal custody.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Zachary A. Myers, who are prosecuting the case.
Godfrey Man Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
Adam B. Hill, 35, of Godfrey, Illinois, was sentenced Tuesday, September 15, 2015, in federal court to 10 years in prison for Receipt of Child Pornography, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. Following his prison sentence, Hill will be on federal supervised release for 5 years and will be required to register as a sex offender for the remainder of his life. Hill was also ordered to pay $24,000 in restitution to the victims, a $200 fine, and a special assessment of $100.
Court documents establish that on June 30, 2015, the Madison County Sheriff’s Department responded to a complaint of a suspicious man who appeared to be photographing young children while sitting in his vehicle outside a local swimming pool in Godfrey, Illinois. Based upon a description of the vehicle, including the license plate number, a Madison County Sheriff’s deputy identified the suspect as Adam B. Hill. The deputy made contact with Hill later that same day and confronted him about his activities at the swimming pool. During that conversation, Hill gave the officer consent to search his vehicle, during which the deputy recovered a Kodak digital camera and a metal pipe used for smoking cannabis. Hill was arrested and subsequently interviewed further regarding his activities at the swimming pool and his involvement in viewing and downloading of child pornography. Hill admitted that he had used file sharing programs to download child pornography on the internet for several years and that he had a large collection of images and videos on his computer. During a forensic examination of Hill’s iMac computer, law enforcement agents recovered over 3,500 image files and 185 video files which contained child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation Cyber Crimes Task Force and the Madison County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Ali Summers.
Godfrey Man Sentenced for Three Robberies in Eight DaysRead the Press Release
Joseph E. Schwank, 24, of Godfrey, Illinois, was sentenced in federal district court, in East St. Louis today, for his recent conviction on one count of Bank Robbery and two counts of Interference with Commerce by Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Schwank was sentenced to 92 months in prison; three years supervised release; a $300 fine; and ordered to pay a total of $300 in special assessments.
Schwank pled guilty on May 22, 2015, to charges stemming from a February, 23, 2015, robbery of a Pizza Hut restaurant in Alton, Illinois, during which Schwank demanded money from an employee in a threatening tone, displayed an airsoft gun, and was handed approximately $475 by the employee before fleeing; a March 2, 2015, bank robbery at a US Bank branch in Alton, Illinois, during which Schwank entered the bank wearing a hunter’s hat and large white sunglasses, handed a teller a note which read, "DON’T BE A HERO PUT ALL OF THE MONEY IN YOUR CASH REGISTER ON THE COUNTER FOR ME. ROBBERY," and was handed $1,613 before fleeing; and a March 3, 2015, robbery of a Domino’s Pizza in Bethalto, Illinois, during which Schwank disguised his face, demanded money from an employee, and was provided approximately $53 before fleeing.
This case was investigated by the Federal Bureau of Investigation, as well as the Alton, Illinois, Police Department, and was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Gang Member Admits Executing Person Who Was Ordered Killed for Violating Mexican Mafia Rules on ‘Taxation’ of Drug DealersRead the Press Release
LOS ANGELES – A Baldwin Park man and former 18th Street gang member pleaded guilty today to a federal drug trafficking offense and admitted that he was the triggerman in the previously unsolved 2006 murder of a person who had failed to pay “taxes” to a member of the Mexican Mafia.
Eddie “Criminal” Garcia, 39, pleaded guilty to participating in a conspiracy to distribute methamphetamine in relation to a case that targeted the San Gabriel Valley-based Puente-13 gang. In addition to participating in drug trafficking activities that include collecting “taxes” or “rent” on behalf of the Mexican Mafia member who controlled Puente-13, Garcia admitted that he murdered another gang member who failed to pay to make those extortion payments.
In his plea agreement, Garcia admitted that in 2006 he and two members of Puente-13 lured another gang member to an apartment complex, where Garcia “shot the victim…in the head with a pistol,” an execution that constituted pre-meditated first-degree murder. Garcia was acting at the behest of leaders of Puente-13, who targeted the victim, a Valinda man named David Dragna, because Dragna was suspected of taking drug money that was intended for the Mexican Mafia.
Garcia’s guilty plea is pursuant to an agreement in which federal prosecutors have agreed with the defense to jointly seek a sentence of between 18 years and 24 years in federal prison.
Garcia pleaded guilty today before United States District Judge Michael W. Fitzgerald, who is scheduled to sentence the defendant on January 25, 2016.
Two members of Puente-13 have previously been convicted of participating in Dragna’s murder. Angel “Smiley” Torres, 39, and Steven “Flaco” Nunez, 36, each pleaded guilty in federal court. Torres was sentenced to 186 months in prison, and Nunez was sentenced to 10 years. The Dragna murder was unsolved prior to a federal racketeering indictment that was unsealed in June 2010.
The Mexican Mafia member who controlled the Puente-13 gang and his brother were sentenced in 2013 to life in federal prison after being convicted at trial for their roles in leading a wide-ranging Puente-13 drug and murder conspiracy (see: http://go.usa.gov/3eyKj).
The investigation into the Puente-13 criminal enterprise and the murder of Dragna was conducted by the Drug Enforcement Administration and the Los Angeles County Sherriff’s Department.
Four Indicted on Federal Charges Related to Ventura County-Based Scheme to Obtain Unemployment Benefits through Sham CompaniesRead the Press Release
LOS ANGELES – Four men have been indicted on mail fraud and other federal charges for participating in a scheme that allegedly used dozens of bogus companies to collect millions of dollars in unemployment benefits for “employees” who never did any work at the sham entities. Two of the four defendants were arrested this morning and are due in federal court this afternoon.
The defendants were charged in a 22-count indictment that was returned yesterday afternoon by a federal grand jury. The indictment alleges an overarching conspiracy to create fictitious companies that supposedly employed scores of workers who then sought unemployment insurance benefits by claiming to have been laid off. The indictment also alleges substantive counts of mail fraud, use of unauthorized access devices (debit cards) and aggravated identity theft.
The two defendants taken into custody today are Jack Benjamin Hessiani, also known as “Jack Herrera,” 37, of Camarillo, and Hessiani’s cousin, Eduardo Josue Garcia, 24, also of Camarillo.
Hessiani and Garcia are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
The other two defendants in the case – Hessiani’s brother, James Manuel Herrera, 27, also of Camarillo; and Daniel Ayala-Mora, another cousin of Hessiani and Herrera, 25, who recently moved from Camarillo to Las Vegas – are currently being sought be authorities.
According to the indictment, Hessiani and Herrera created numerous fictitious companies for the sole purpose of defrauding the state Employment Development Department (EDD), the agency that administers the federal unemployment insurance program in California. After filing documents with EDD that showed fictitious earnings for “workers,” Hessiani and Herrera allegedly filed and caused to be filed unemployment claims for purported laid-off “employees,” who were actually people who had agreed to provide their personal identifying information in exchange for a portion of the unemployment benefits. The unemployment benefits, in the form of checks and debit cards, were sent to “mail drops” that Hessiani and Herrera had established in the names of others. Once EDD began issuing unemployment benefits, Hessiani and Herrera saw that documents were filed that claimed the laid-off “workers” were still unemployed, and later they sought “extended benefits” to obtain unemployment insurance beyond the normal six-months, according to the indictment.
All four defendants allegedly sought unemployment insurance benefits for themselves based on their own “work” at the fictitious companies. Investigators believe that the scheme involved more than 40 fictitious businesses in Ventura County. Most of the fake companies had names that made them appear to be involved in marketing and networking services.
Hessiani and Herrara allegedly kept enlarging their scheme by inducing “workers” to act as recruiters of other “workers” and would pay referral fees for each new “worker” brought into the scheme.
As a result of this scheme, investigators believe that members of the conspiracy sought approximately $6.7 million in fraudulent unemployment insurance benefits, and that EDD and the United States Treasury suffered combined actual losses of approximately $4.8 million.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The conspiracy and 12 substantive mail fraud charges in the indictment each carry a statutory maximum penalty of 20 years in federal prison. The charge of using an unauthorized access device carries a prison term of up to 10 years. The charge of aggravated identity theft carries a mandatory consecutive sentence of two years. Therefore, if they are convicted of the charges in the indictment, Hessiani and Herrera, who are charged in most of the counts, each would face potential sentences of decades in federal prison.
The investigation in this case was conducted by the United States Department of Labor, Office of Inspector General; the United States Secret Service, U.S. Immigration and Customs Enforcement, Homeland Security Investigations; and the California Employment Development Department.
Fort Campbell, Kentucky, Resident SentencedRead the Press Release
PADUCAH, Ky. – A civilian resident of Fort Campbell, Kentucky, was sentenced in U.S. District Court Monday, by Senior Judge Thomas B. Russell, to 27 months in prison, followed by a two year period of supervised release for the assault of another person that caused serious bodily injury, announced United States Attorney John E. Kuhn, Jr. There is no parole in the Federal Court system.
Kenneth Earl Dycus, age 44, of Christian County, Kentucky, was charged on February 10, 2015, in a single count grand jury indictment with the assault that occurred on February 8, 2015 on the Fort Campbell military base. On June 11, 2015, Dycus pleaded guilty to the single charge.
According to court records, Dycus intentionally injured another person, by choking him to the extent that the person was rendered unconscious. As a result of that injury, the individual sustained a bodily injury that involved a substantial risk of death, extreme physical pain, and protracted loss and impairment of the function of his memory.
If convicted at trial, Dycus could have been sentenced to no more than ten years in prison, fined up to $250,000 and ordered to serve a three year period of supervised release.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the Fort Campbell, Kentucky military police and the Federal Bureau of Investigation (FBI).
Former Governor of Santa Ana Pueblo Sentenced to 51 Months in Federal Prison for Conviction on Embezzlement and Tax ChargesRead the Press Release
ALBUQUERQUE – A former Governor of Santa Ana Pueblo was sentenced late this afternoon in federal court in Albuquerque, N.M., for his conviction on charges arising out of a scheme to embezzle approximately $3,575,000.00 from the Indian Pueblo Federal Development Corporation (IPFDC), an Indian tribal organization formed by the 19 Pueblos of New Mexico for the purpose of developing land that once had been the site of the Albuquerque Indian School.
Bruce Sanchez, 61, was ordered to serve 51 months in federal prison to be followed by three years of supervised release. He also was ordered to pay, jointly with his co-defendant, restitution in the amount of $3,575,000.00 to the IPFDC. The court also ordered Sanchez to pay the IRS $655,276.00, the federal taxes owed on the money he embezzled from the IPFDC and failed to report to the IRS, as a special condition of his supervised release.
In announcing the sentence, U.S. Attorney Damon P. Martinez said, “The IPFDC was established to develop real estate for the benefit of the 19 Pueblos of New Mexico and their people. Bruce Sanchez was entrusted with spearheading that development but instead he lined his own pockets at the expense of the people he was duty-bound to serve.”
“This sentence confirms that those who take advantage of their position, community’s trust, and people, will be held responsible for their actions. This is a positive move forward and a new chapter for the 19 Pueblos of New Mexico. It is also the result of on-going efforts, and strong commitment, by law enforcement agencies and the U.S. Department of Justice,” stated David House, Special Agent in Charge for the Western Region Office of Inspector General Investigations, Department of the Interior.
“Sanchez wrongfully used his positon, as a public servant, to orchestrate an illegal scheme to embezzle $3.5 million dollars from the Indian Pueblo Federal Development Corporation. Sanchez’s scheme diverted much needed public funds for his own personal use then further violated the law by not reporting the funds on his income tax returns,” said Special Agent in Charge Ismael Nevarez, Jr., of IRS- Criminal Investigation. “IRS- Criminal Investigation will continue its collaborative efforts to investigate individuals that violate public trust by engaging in illicit financial fraud schemes.”
Sanchez and co-defendant Thomas Keesing, 62, of Pecos, N.M., were indicted in Oct. 2012, and charged with a conspiracy offense and ten substantive embezzlement offenses arising out of the scheme to steal funds belonging to the IPFDC. The 15-count indictment also charged Sanchez with three tax evasion counts alleging an aggregate federal tax loss of $655,276.00, and a misdemeanor count of willful failure to file a tax return. In Aug. 2013, Keesing was charged by information with three misdemeanor counts of failure to file tax returns and those tax charges were consolidated into the case. The information charged Keesing with failure to file federal tax returns for calendar years 2006, 2007 and 2008, even though he received gross income in the aggregate amount of $2,771,250.00 during those three years.
According to the indictment, between 2003 and 2009, Sanchez and Keesing conspired to embezzle approximately $3,575,000.00 from the IPFDC. During that time, Sanchez was the president and chief executive officer of the IPFDC. Keesing, a commercial real estate developer and the owner of New Mexico Real Estate, Inc. (NMREI), worked as a consultant for IPFDC in 2002 and 2003. Sanchez and Keesing engaged in a scheme to unlawfully profit from the development of the Albuquerque Indian School property by having Keesing submit false and fraudulently inflated invoices for payment from NMREI to the IPFDC. Sanchez approved the invoices even though the payments were vastly in excess of the value of any services provided by Keesing and NMREI. Keesing then shared the proceeds of the fraudulently obtained IPFDC payments with Sanchez. Between 2003 and 2008 and as a result of this illegal scheme, Keesing and NMREI received $3,775,000.00 in payments from the IPFDC, including $3,575,000.00 that was fraudulently obtained. During that same period, Sanchez and Tsachu, LLC, his solely-owned consulting company, received approximately $1,722,823.04 from Keesing and NMREI.
On Jan. 28, 2015, Sanchez entered a guilty plea to Counts 3 and 13 of the indictment charging him with embezzlement from an Indian tribal organization and tax evasion, respectively. Sanchez’s plea agreement detailed the embezzlement scheme through which Sanchez and Keesing defrauded the IPFDC of $3,575,000.00. Sanchez brought Keesing onto the IPFDC development team in 2002 and Keesing performed services for the IPFDC in 2002 and 2003. Thereafter, Sanchez and Keesing entered into a brokerage and development agreement that was never presented to the IPFDC board for approval, and used the agreement as the vehicle to perpetuate their embezzlement scheme. Between Jan. 2005 and Nov. 2008, Keesing and NMREI submitted more than 100 invoices for professional services purportedly provided in connection with the development of the Albuquerque Indian School site. Sanchez arranged for the IPFDC to pay the invoices, and in return, Sanchez and Tsachu, LLC, received more than 100 checks in the aggregate amount of $1,652,823.04 from Keesing and NMREI. Although this illegally obtained money was taxable income, Sanchez did not report the income to the IRS.
Keesing also entered a guilty plea on Jan. 28, 2015. He pled guilty to Count 3 of the indictment charging him with aiding and abetting embezzlement from an Indian tribal organization, and Count 1 of the misdemeanor information charging him with the willful failure to file an income tax return. Keesing’s plea agreement sets forth a detailed description of his role in the embezzlement scheme that defrauded the IPFDC of $3,575,000.00. According to his plea agreement, Keesing shared these illegally obtained proceeds with Sanchez with Sanchez taking $1,652,823.00, and Keesing retaining the balance. Keesing acknowledged that Sanchez provided nothing of value in return for this money and used Keesing as a conduit to receive IPFDC funds to which he was not entitled. Keesing participated in the scheme to obtain additional compensation for work he previously performed on behalf of the IPFDC and for which he felt he was not adequately compensated. Although the proceeds Keesing obtained from the IPFDC were taxable income, he failed to file federal tax returns reporting the income.
Keesing remain on conditions of release and under pretrial supervision pending his sentencing hearing, which is set for Dec. 16, 2015. Keesing faces a statutory maximum of five years in prison on the embezzlement count and up to one year in prison on the tax count. His plea agreement also requires that Keesing pay, jointly with Sanchez, full restitution to the IPFDC for the losses it sustained as a result of their criminal conduct.
The case was investigated by the IRS Criminal Investigation and the Department of the Interior’s OIG, and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Former Federal Grand Juror Sentenced to Probation for Leaking Sealed Grand Jury InformationRead the Press Release
PORTLAND, Ore. – Today, Lori Ann Cubit, 56, of Gresham, Oregon, was sentenced by U.S. District Judge Michael W. Mosman to one year of probation following her conviction of the misdemeanor crime of criminal contempt of court. As a condition of probation, Mrs. Cubit will be required to perform 100 hours of community service.
On December 30, 2013, a federal grand jury was presented with information related to the criminal activities of a violent Blood street gang involved in drug trafficking and other crimes in the greater Portland, Oregon metropolitan area. The evidence presented to the grand jury was the result of a year-long Metro Gang Task Force investigation which included the use of federal wiretaps to target the involved individuals. On December 31, 2013, the government learned through an informant that secret information regarding the grand jury proceedings had been disclosed within the community. The leaked information included the identities of people who had been criminally charged by the grand jury, the charges they faced and the existence and use of federal wiretaps and evidence derived from them. At the time of the disclosure, the indictments were under seal and not subject to disclosure. Due to the leak of information, a series of planned search warrants and arrests had to be canceled due to concerns over officer safety. One defendant fled the jurisdiction.
An investigation into the source of the leaked grand jury proceedings revealed that Mrs. Cubit, a former federal grand jury member, had disclosed the information to family members and others. From there, the information spread throughout the community.
On April 29, 2015, Mrs. Cubit pled guilty to one count of criminal contempt of court. In her plea agreement, Mrs. Cubit admitted that, on or about December 30, 2013, she knowingly disobeyed the order and commands of a Court of the United States and of U.S. District Judge Ancer L. Haggerty that she not to disclose any information relating to any matter occurring before the grand jury. She additionally admitted that she disclosed information from the grand jury on December 30, 2013, to unauthorized individuals, including evidence presented to the grand jury, the existence of federal wiretaps, the names of the defendants and the criminal charges they faced, all while the evidence presented and charging documents were still under seal and not subject to disclosure to the public.
Both before and during the sentencing hearing, Mrs. Cubit apologized for her actions.
"The rules governing grand jury proceedings are critically important to the integrity and safety of the investigative process and they must be followed," stated Acting U.S. Attorney Billy J. Williams. "This case, unfortunately, highlights the serious consequences that can result from the unauthorized disclosure of criminal matters, even when it is not done with any malicious intent. We are grateful that we found out about the leak when we did so that no law enforcement officers were placed in danger as a result of Mrs. Cubit’s actions."
This case was investigated by the Metro Gang Task Force (MGTF) and Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U. S. Attorney Scott Kerin.
Former Director of Marketing and Merchandising for Pa-Liquor Control Board Pleads Guilty in Honest Services Fraud SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Director of Marketing and Merchandising for the Pennsylvania Liquor Control Board (PA-LCB) pled guilty before U.S. District Court Judge Sylvia H. Rambo to a scheme to defraud the state, its citizens and the PA-LCB of their right to his honest services as a public official through bribes, kick-backs and concealing information.
According to United States Attorney Peter Smith, James H. Short, Jr., age 50, of Harrisburg, Pennsylvania, admitted to the charge of Honest Services Mail Fraud. Short was indicted by a grand jury in August 2015.
Short served as the Director of Marketing and Merchandising from approximately 2003 to 2012 and supervised the process through which alcoholic beverages are selected and acquired for sale in Pennsylvania’s state-run liquor stores.
By pleading guilty Short admitted to approximately 10 years (2002 to 2012) of receiving benefits from a distributor and a manufacturer of alcoholic beverages sold in Pennsylvania’s stores. These benefits included all-expense paid golf trips, cash, gift cards, meals, and other benefits.
As Director of Marketing and Merchandising for the PA-LCB, Short supervised the process of recommending to the PA-LCB which new products should be sold and which products should no longer be sold in Pennsylvania’s 500 state-run liquor stores.
No date has been scheduled yet for Short’s sentencing.
The case is part of a continuing investigation by the Harrisburg Office of the FBI and is being prosecuted by Assistant United States Attorney Michael A. Consiglio. The case initially was brought by the Pennsylvania Ethics Commission which found that Short violated the Pennsylvania Ethics act when he accepted certain things of value charged in the present federal case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Collin Street Bakery Executive and Wife SentencedRead the Press Release
DALLAS — Sandy Jenkins, a former executive at the Collin Street Bakery (“the Bakery”) in Corsicana, Texas, and his wife, Kay Jenkins, were sentenced today on felony convictions stemming from Sandy Jenkins’s embezzlement of approximately $16 million from the Bakery, announced U.S. Attorney John Parker of the Northern District of Texas.
Sandy Jenkins was sentenced by U.S. District Judge Ed Kinkeade to serve a total of 120 months in federal prison. Judge Kinkeade sentenced Kay Jenkins to five years’ probation. Kay Jenkins was further ordered to complete 100 hours of community service and to submit a formal apology in writing to the Bakery.
Sandy Jenkins, 66, served as the Corporate Controller for the Bakery from February 1998 to June 21, 2013. After the Bakery discovered the fraud, he was terminated on June 21, 2013. He pleaded guilty in May 2014 to one count of mail fraud, one count of conspiracy to commit money laundering, and one count of making a false statement to a financial institution. Kay Jenkins, 64, of Corsicana, pleaded guilty in May 2015 to one count of conspiracy to commit money laundering.
According to documents filed in the case and evidence proffered at the sentencing hearing, beginning at least as early as December 2004, and continuing until his termination from the Bakery, Sandy Jenkins engaged in a massive scheme to defraud the Bakery. During that time, he embezzled more than $16 million from the Bakery, and he and his wife, Kay Jenkins, used that money to bank-roll a lavish lifestyle. The government introduced evidence at sentencing identifying the 223 trips on private jets as well as the locations (primarily Santa Fe, New Mexico; Aspen, Colorado; and Napa, California, among other places), with a total cost that exceeded $3.3 million.
The government also showed at sentencing that the Jenkins purchased 38 vehicles over the course of the scheme, including many Lexus automobiles, a Mercedes Benz, a Bentley, and a Porsche. According to evidence proffered at sentencing, Sandy Jenkins and Kay Jenkins purchased a new automobile every time they needed an oil change. The government further established at sentencing that the Jenkins spent over $11 million on a Black American Express card alone—roughly $98,000 per month over the course of the scheme—for a couple that had a legitimate income, through the Bakery, of approximately $50,000 per year. The evidence at sentencing also established that a significant portion of stolen funds (approximately $1.2 million) were spent at Neiman Marcus at Northpark in Dallas where Sandy Jenkins and Kay Jenkins had nicknames, “Fruitcake” and “Cupcake,” respectively. The government further proffered evidence at sentencing that the Jenkins stopped shopping at Neiman Marcus when Neiman’s ran out of things to sell them.
Based on the evidence at sentencing, the Court determined that the total loss as a result of Sandy Jenkins’s offense was $16,766,645.70. Through the efforts of law enforcement in this case, the government recovered approximately $4,000,000 in property and cash that will be turned over to the Bakery as partial restitution for the losses suffered in this case. That includes the following: (a) four vehicles, including a 2005 Lexus SC, a 2010 Mercedes Benz CL550, a 2013 GMC Yukon Denali, and a 2013 BMW X53 (having an approximate value of $150,000); (b) 532 luxury items, including 41 bracelets, 15 pairs of cufflinks, 21 pairs of earrings, 16 furs, 61 handbags, 45 necklaces, 9 sets of pearls, 55 rings, and 98 watches (having an approximate value of $3.5 million); $580,754.90 in cash; a wine collection (having an approximate value of $50,000.00); and a Steinway electronic piano (having a value of $58,500.00). As a result of the turnover of property, the Court ordered restitution jointly and severally for Sandy and Kay Jenkins in the amount of $12,697,921.79 to be paid to the Bakery.
The FBI conducted the investigation with assistance from the Corsicana Police Department and the Austin Police Department. Assistant U.S. Attorney J. Nicholas Bunch prosecuted the case and Deputy Criminal Chief Assistant U.S. Attorney Melissa Childs handled the forfeiture.
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Federal Inmates in Wayne County Charged with Assaults with A Dangerous WeaponRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that late yesterday a federal grand jury in Scranton indicted five federal inmates at the United States Penitentiary Canaan (“USP Canaan”), in Waymart, Pennsylvania, in separate cases involving alleged assaults with a dangerous weapon.
One of the incidents involves an assault by an inmate on correction officers.
According to United States Attorney Peter Smith, the following inmates were charged in the following cases:
Jerome Lummes, age 37, is charged with assaulting four correctional officers at USP Canaan on August 18, 2015. Lummes also was charged with possessing a homemade weapon fashioned from a sharpened piece of metal, commonly known as a “shank.”
The maximum penalty under federal law for Lummes is 20 years of imprisonment for each assault count, a term of supervised release following imprisonment, and a $250,000 fine. The maximum penalty under federal law is 5 years of imprisonment for the use of a dangerous weapon, a term of supervised release following imprisonment, and a $250,000 fine.
On June 3, 2015, inmate Reuben Blajos, age 41, originally from California, and inmate Manuel Vasquez-Perez, age 39, originally from Mexico, allegedly assaulted another inmate at USP-Canaan, repeatedly striking the victim with improvised weapons made by tying metal padlocks to prison-issued socks.
Blajos and Vasquez-Perez face up to 20 years’ incarceration and fines of up to $750,000.
James E. Carson, age 29, is charged with assaulting a fellow inmate at USP Canaan on July 12, 2015. Carson also was charged with possessing a homemade weapon fashioned from a sharpened piece of metal, commonly known as a “shank.”
The maximum penalty under federal law for Carson is 15 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Efrain Rodriguez, age 43, was charged with assaulting a fellow inmate at USP Canaan on July 23, 2015. Rodriguez also was charged with possessing a homemade weapon fashioned from a razor blade and a toothbrush, commonly known as a “shank.”
The maximum penalty under federal law for Rodriguez is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.
The investigations were conducted by the Federal Bureau of Investigation and officers from USP Canaan. Lummes is being prosecuted by Assistant United States Attorney John C. Gurganus. Blajos and Vasquez-Perez and are being prosecuted by Assistant United States Attorney Peter Hobart. Carson and Rodriguez are being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Grand Jury Indicts Norfolk Man on Felon in Possession of Ammunition ChargeRead the Press Release
NORFOLK, Va. – Wesley Paul Hadsell, 37, of Norfolk, was indicted by a federal grand jury today on charges of felon in possession of ammunition.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office, made the announcement after the grand jury returned the indictment. Assistant U.S. Attorney Benjamin L. Hatch is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-116.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Federal Charge of Involuntary Manslaughter Filed in Shooting Death at Fort RileyRead the Press Release
TOPEKA, KAN. – Federal prosecutors Wednesday filed an involuntary manslaughter charge against a Riley County man in connection with a shooting death at Fort Riley, U.S. Attorney Barry Grissom said.
Juwuan D. Jackson, 18, who lives on the Fort Riley base, is charged with one count of involuntary manslaughter. A criminal complaint alleges that on Sept. 11, 2015, Jackson handled a firearm in a reckless manner, resulting in the shooting death of 16-year-old Kenyon Givens, who also lives on Fort Riley.
If convicted, Jackson faces a maximum penalty of eight years in federal prison. Army Criminal Investigations Division and the FBI investigated. Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Tony Mattivi are prosecuting.
Exeter Man Pleads Guilty to Making False StatementsRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Clifford Sprague, 37, of Exeter, Maine, pleaded guilty today in U.S. District Court to making false statements to obtain Social Security Disability Insurance (“SSDI”) benefits. SSDI benefits are paid by the Social Security Administration (“SSA”) to people with disabilities.
According to court records, from March 2011 until March 2012, the defendant received $12,864 in SSDI benefits for himself and his three dependent children. In November 2011, the defendant was required to undergo a Continuing Disability Review to determine if he was still disabled. During this review, the defendant told his representative payee to falsely represent that the defendant did not work outside the house and required someone to clean, bathe, dress and cook for him. In truth and fact, the defendant did not have disabilities that required someone else to clean, bathe, dress and cook for him. The defendant did a significant amount of work outside the house including working as a scrap metal dealer, carpenter and woodcutter.
The defendant faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the SSA’s Office of the Inspector General.
Exeter Man Pleads Guilty to Assisting Pharmacy RobberyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Clifford Sprague, 37, of Exeter, Maine, pled guilty today in U.S. District Court to being an accessory after the fact to a pharmacy robbery. An accessory after the fact is a person who, knowing that an offense against the United States has been committed, comforts or assists the offender in order to hinder or prevent his apprehension, trial or punishment.
According to court records, on March 10, 2012, Michael Thompson entered the Rite Aid pharmacy in Guilford, Maine wearing a bandana, a hood, sunglasses and gloves. He jumped over the pharmacy counter, brandished a large hunting style knife and demanded narcotics. A pharmacist opened the locker containing narcotics and Thompson filled his back pack with more than $5000 worth of them. After the robbery, Thompson called Sprague, told him that he had robbed the pharmacy and asked Sprague to pick him up in his car. Sprague did so. Shortly after picking up Thompson, Sprague saw a Somerset County Sheriff’s Office vehicle. Sprague slowed down his vehicle and told Thompson he needed to get out. Thompson got out of Sprague’s vehicle and fled into the woods. Later, Sprague used and sold some of the narcotics Thompson stole.
On June 29, 2015, Thompson was sentenced to 82 months in prison for his role in the pharmacy robbery.
The defendant faces up to ten years in prison and a $125,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Piscataquis County Sheriff’s Office, the Maine State Police, the Federal Bureau of Investigation and the Somerset County Sheriff’s Office.
El Paso Man Sentenced in New Mexico for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Carlos Jesus Carrasco, 25, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., for his methamphetamine trafficking conviction. Carlos Carrasco was sentenced to 87 months in prison followed by three years of supervised release.
Carlos Carrasco and his co-defendant and cousin, Bernabe Carrasco, 36, also of El Paso, were arrested on Dec. 20, 2013, and charged by criminal complaint with conspiracy and possession of methamphetamine with intent to distribute. According to court filings, the two men were arrested by U.S. Border Patrol agents at the Border Patrol traffic checkpoint on U.S. Highway 54 near Alamogordo, N.M., after the agents discovered that they were concealing packages of methamphetamine on their bodies during a routine immigration check of passengers. The two men subsequently were indicted on the same two charges.
On April 9, 2015, Carlos Carrasco and Bernabe Carrasco both pled guilty to informations charging them with conspiracy to possess methamphetamine with intent to distribute and possession of methamphetamine with intent to distribute. Both men admitted to possessing 2.07 kilograms of methamphetamine on Dec. 20, 2013, which they intended to distribute. Carlos Carrasco and Bernabe Carrasco admitted boarding a bus in El Paso with packages containing methamphetamine strapped to their bodies which they intended to deliver to Amarillo, Texas, in exchange for $1,200.00.
Bernabe Carrasco was sentenced on April 9, 2015, to 63 months in prison followed by four years of supervised release.
This case was investigated by the Las Cruces office of the DEA and U.S. Customs and Border Protection, with assistance from the Doña Ana County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
DeCarlos Frazier Found Guilty by Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that DeCarlos Frazier, 32, of Chicago, Illinois, was found guilty after a three-day jury trial of being a felon in possession of a firearm.
According to documents in this case, on March 29, 2014 East Chicago Police observed two males loitering in the area of 149th and Baring Avenue. As officers approached in a marked squad car and attempted to make contact with the subjects, DeCarlos Frazier fled on foot tossing a .38 caliber revolver handgun from his person. When a criminal history was run, it revealed that Frazier had prior a felony conviction for aggravated robbery.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department. This case was prosecuted by Assistant United States Attorneys Jennifer Chang-Adiga and Dean R. Lanter.
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Court Judgment Cancels Coal Lease for Utah MineRead the Press Release
SALT LAKE CITY – U.S. District Court Judge Dale A. Kimball has signed a judgment and order against a Utah coal mining company that cancels its federal coal lease and orders the company to pay more than $230,000 for past-due royalties and rental payments, United States Attorney John W. Huber announced today.
The judgment and order follows a stipulated agreement reached by the United States and Hidden Splendor Resources, Inc. (HSRI)
“It is imperative that energy companies operating on federal lands abide by the terms of the lease, post the necessary bonds, and pay the royalties and rentals due to American taxpayers,” Huber said.
The order issued by Kimball declares that HSRI violated the terms of its coal lease and a BLM Notice of Noncompliance by not posting a required bond. It cancels the coal lease for HSRI’s failure to comply with the lease terms and the Notice of Noncompliance that BLM had previously issued to it. And finally, the judgment requires HSRI to pay past-due royalties and rentals in the amount of $230,929.04 plus 1 percent interest until the date of the judgment and, thereafter, interest at the statutory rate until the debt is paid in full.
The U.S. Attorney’s Office in Utah originally filed a civil action against Hidden Splendor Resources on Dec. 29, 2014. Hidden Splendor Resources agreed to work with the United States on the stipulated judgment. The judgment was filed in July.
“This judgment stipulates that unpaid royalties dating back to 2012 and rental payments from 2009 through 2014 must be paid by Hidden Splendor Resources,” said Office of Natural Resources Revenue (ONRR) Director Greg Gould. “ONRR will remain vigilant in collecting every dollar due from energy production that occurs on Federal lands.”
Acting State Director for the Bureau of Land Management in Utah Jenna Whitlock said, “As the administrator of a number of coal leases in Utah, the Bureau of Land Management is committed to helping ensure that minerals are responsibly extracted from public lands. Despite the requirements of the coal lease and our Notice of Noncompliance, the company failed to post the required bond for important post-mining reclamation activities and it is appropriate to cancel their coal lease.”
Hidden Splendor Resources acquired the lease in March 2006 for the Horizon Mine, an underground coal mine located approximately 15 miles northwest of Price, Utah. The company failed to pay royalties from production in the “Horizon Mine” in February, April and July 2012, as well as associated rental payments from 2009 through 2014.
The United States Attorney’s Office acknowledged the cooperation of agencies involved in reaching the stipulated judgment, including the Office of Natural Resources Revenue, the Bureau of Land Management, and the Department of the Interior’s Solicitor’s Office.
The Office of Natural Resources Revenue and the Bureau of Land Management are part of the Department of the Interior. BLM is the leasing and inspection agency involved in onshore production on federal lands, while ONRR is responsible for collecting and disbursing revenues from energy production that occurs onshore on federal and American Indian lands and offshore in the Outer Continental Shelf. During Fiscal Year 2014, ONRR disbursed more than $13.4 billion to states, American Indian Tribes, individual Indian mineral owners, and to various federal accounts, including the U.S. Treasury, the Land and Water Conservation Fund, and the Reclamation Fund.
Court Authorizes IRS to Issue Summonses to Discover U.S. Taxpayers with Offshore Bank Accounts at Belize Bank International Limited and Belize Bank LimitedRead the Press Release
A federal court in Miami entered an order today authorizing the Internal Revenue Service (IRS) to serve a “John Doe” summons seeking information about U.S. taxpayers who may hold offshore accounts at Belize Bank International Limited (BBIL) or Belize Bank Limited (BBL), the Justice Department announced today. The order, which was entered by U.S. District Judge Ursula Ungaro, granted the United States’ petition for permission to seek records of BBIL’s and BBL’s correspondent accounts at Bank of America, N.A. and Citibank, N.A. Those records will allow the IRS to identify U.S. taxpayers who hold or held interests in financial accounts at BBIL and BBL, as well as other financial institutions that used the same correspondent accounts.
“The Department and the IRS are using every tool available to identify and investigate those individuals determined to evade their U.S. tax and reporting obligations through the use of offshore financial accounts and foreign entities,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “These John Doe summonses will provide detailed information about individuals using financial institutions in Belize and, to the extent funds were transferred, other jurisdictions. But rest assured, we are receiving information from many sources regarding hidden foreign accounts and offshore schemes. The time to come clean is now – before we knock on your door.”
“This court action further demonstrates our relentless efforts to pursue and catch those evading taxes with hidden offshore accounts no matter where they are or what structures are used to hide behind,” said Commissioner John Koskinen of the IRS. “This court action also reinforces the ongoing importance of the John Doe summons in international tax enforcement.”
According to the IRS declaration, BBL is incorporated and based in Belize, and directly owns BBIL. The IRS declaration further states that Belize Corporate Services (BCS) is incorporated and based in Belize and offers corporate services including the purchase of “shelf” Belizean international business companies. BBL, BBIL and BCS are all corporate subsidiaries of BCB Holdings Limited, according to the declaration. The declaration describes and IRS Revenue Agent’s review of information submitted by BBL and BBIL customers who disclosed their foreign accounts through the IRS offshore voluntary disclosure programs. The customers in the “John Doe” class may have failed to report income, evaded income taxes, or otherwise violated the internal revenue laws of the United States, according the declaration.
The IRS uses what are known as “John Doe” summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. The John Doe summonses approved today direct Citibank and Bank of America to produce records identifying U.S. taxpayers with accounts at Belize Bank International Limited, Belize Bank Limited, or their affiliates, including other foreign banks that used BBIL and BBL’s correspondent accounts to service U.S. clients. The court also granted the IRS permission to seek records related to Citibank’s and Bank of America’s correspondent accounts for BCS and information related to BCS’s deposit accounts at Bank of America.
A correspondent account is a bank account that one bank maintains for another bank. Financial transactions involving U.S. dollars flow through U.S. banks; therefore, foreign banks that do business in U.S. dollars, but do not have an office in the United States, obtain a correspondent account in order to reach U.S. customers. Transactions in the correspondent account leave a trail in the United States that the IRS can follow, including by using a John Doe summons. The John Doe summons can let the IRS obtain records of money deposited, paid out through checks, and moved through the correspondent account through wire transfers.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. Willful failure to report a foreign account can result in a fine of up to 50 percent of the amount in the account at the time of the violation. Individuals wishing to learn more about the IRS offshore voluntary disclosure programs should visit http://www.irs.gov/Individuals/International-Taxpayers/Offshore-Voluntary-Disclosure-Program or http://www.irs.gov/Individuals/International-Taxpayers/Options-Available-For-U-S--Taxpayers-with-Undisclosed-Foreign-Financial-Assets.
The Justice Department has previously obtained similar orders from the U.S. District Court of the Southern District of New York, permitting a John Doe summons on UBS AG for records of Swiss bank Wegelin & Co.’s correspondent account at UBS and from the U.S. District Court of the Northern District of California, permitting a John Doe summons on Wells Fargo, N.A., for records of the Barbados-based Canadian Imperial Bank of Commerce FirstCaribbean International Bank (FCIB).
For further information about the Department of Justice’s offshore compliance initiatives, please visit: http://www.justice.gov/tax/offshore-compliance-initiative.
Colorado Woman Admits Participation in Conspiracy to Illegally Transfer FirearmsRead the Press Release
TRENTON, N.J. – A former resident of Colorado today admitted her involvement in a conspiracy to illegally transfer firearms from Colorado to a felon in New Jersey, United States Attorney Paul J. Fishman announced.
Krystel Lopez, 28, of Greeley, Colorado, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to one count of an indictment charging her with conspiracy to illegally transfer firearms interstate.
According to documents filed in this case and statements made in court:
Between February and April 2013, Lopez purchased an assault rifle and a handgun in Colorado. Later in April 2013, she mailed both the assault rifle and the handgun to the business address of a known felon in New Jersey, who was prohibited from possessing such weapons.
The charge of conspiracy to illegally transfer firearms interstate to a known felon carries a maximum sentence five years in prison and a fine of up to $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 5, 2016.
U.S. Attorney Fishman praised special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Cleveland woman charged with Social Security theftRead the Press Release
A one-count Information was filed charging Beverly Harris, 75, of Cleveland, Ohio, with theft of government funds, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The information alleges that from on or about March 1, 2009, through December 1, 2013, Beverly Harris stole Social Security survivor benefits in the amount of $50,263 from the United States Social Security Administration, to which she was not entitled.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Carmen E. Brown and Special Assistant U.S. Attorney Lisa Sanniti, following an investigation by agents of the Office of Inspector General of the United States Social Security Administration.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Chesapeake Resident Smuggled Silencers into the United States from CanadaRead the Press Release
NORFOLK, Va. – Benjamin Lloyd Fisher, 42, of Chesapeake, was indicted by a federal grand jury today on charges of smuggling goods into the United States and being a prohibited person based on a prior domestic violence conviction.
According to court documents, the Alcohol, Tobacco, Firearms, and Explosives’ (ATF) investigation of a citizen of Canada revealed that he was smuggling firearms, silencers and mechanisms to convert a semi-automatic firearm into a machinegun, into the United States. A search of the Canadian citizen’s email account revealed that he was selling silencers to Fisher, and together they had worked out a plan to smuggle the silencers into the United States. A search warrant was executed at Fisher’s residence in Chesapeake where ATF agents found 13 firearms including pistols, rifles, shotguns, thousands of rounds of ammunitions, and six complete silencers and two silencer parts. The defendant is a prohibited person as he was previously convicted of a domestic violence crime which makes it illegal for him to possess a firearm.
Fisher faces a maximum penalty of 10 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Office, made the announcement after the grand jury returned an indictment today against Fisher. Fisher had previously made an initial appearance before a U.S. Magistrate Judge on a criminal complaint. Assistant U.S. Attorney William Muhr is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-271.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Chambersburg Man Indicted for Federal Workers' Compensation FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Chambersburg man has been indicted by a federal grand jury in Harrisburg on a charge of theft and fraud regarding federal workers’ compensation benefits he received from 2011 through 2014.
According to United States Attorney Peter Smith, Chad McClure, age 45, of Chambersburg, PA was charged in an five count indictment with fraudulently receiving $143,475.41 in benefits paid out under the Federal Employees Compensation Act (FECA). The Department of Labor’s Office of Workers’ Compensation administers the FECA program. The indictment alleges that McClure was a civilian employee of the U.S. Army Corps of Engineers. In 2009, he went out on a disability claim. From April 2011 through 2014, McClure, who claimed a work-related injury, concealed his employment and affiliation with, CM Pig Out, a catering services firm, during this same time period he submitted the forms each year by the Office of Workers’ Compensation for benefits to continue to be paid.
The case was investigated by the by the United States Department of Labor’s Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations. Prosecution is assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment on each count of theft and 5 years on each count alleging FECA program fraud, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Catholic Community Services of Southern Arizona Receives $600,000 in Federal Grant Funds to Support Victims of Domestic ViolenceRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $600,000 in grant funds have been awarded to the Catholic Community Services of Southern Arizona to continue providing immigration legal advice, case evaluation, and representation to victims residing in a five county service area in southern Arizona. 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 vital legal services to enhance the safety and economic security of the victims of domestic violence in Southern Arizona for a 36 month period.” 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: 2015-076_CATHOLIC_COMM_SVC GRANT (2015-WL-AX-0030)
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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.
Buffalo Man Pleads Guilty to Money Laundering ConspiracyRead 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 Justin Stevens, 31, of Buffalo, NY, pleaded guilty to money laundering conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $500,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between January 2014 and September 30, 2014, the defendant obtained marijuana via commercial shipments from co-conspirator, James Parish, of Carlsbad, California. In turn, Stevens deposited $38,100 in marijuana proceeds into Parish’s bank account in Buffalo. The defendant also provided $10,000 in proceeds from marijuana distribution to co-conspirator Benjamin Golembiewski to be forwarded on to Parish.
Both Parish and Golembiewski have been convicted and are awaiting sentencing.
The plea is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George W. Gast.
Sentencing is scheduled for January 27, 2015, at 1:00 p.m. before Judge Arcara.
Brooksville Bank Executive Charged with Bank FraudRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the filing of an information and plea agreement charging David Donato (58, Brooksville) with bank fraud. If convicted, he faces a maximum penalty of 30 years in federal prison. The information also notifies Donato that the United States intends to seek a money judgment in the amount of $143,878.80, which is traceable to the proceeds of the fraud.
According to court documents, Donato worked as a Senior Vice President and Commercial Lender for the CenterState Bank located at 12435 Cortez Boulevard in Brooksville. Donato was also the treasurer of the Hernando Youth League (HYL), a non-profit youth sports organization located in Hernando County. As treasurer, Donato maintained the organization’s bank accounts at his branch of CenterState Bank and had sole signature authority.
During a routine audit of its accounts in 2015, officials at CenterState Bank discovered suspicious activity in the accounts maintained by HYL. Further investigation revealed that, between at least 2011 and 2015, Donato had obtained five different lines of credit and loans from the bank in the name of HYL without permission or knowledge from HYL or its Board of Directors. He used the loan proceeds on personal expenses.
In total, Donato obtained $143,878.80 on behalf of HYL based on false statements and forged bank documents. Investigators have determined that Donato used approximately $98,420 for personal expenses, including paying his mortgage, credit cards, and cellphone and cable bills. He wrote checks to himself totaling $39,350 and also wrote checks in exchange for cash totaling $3,400. Each of these checks was written from the HYL accounts without the organization’s knowledge or consent.
An information is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Hernando County Sheriff’s Office and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Mandy Riedel.
Update:
Donato pleaded guilty on Tuesday, September 30, 2015, at 2:00 PM in Tampa before Magistrate Judge Elizabeth A. Jenkins (Courtroom 11A).
A sentencing date has not yet been set.
Broker-Dealer Admits Role in Scheme to Trade on Inside Information Stolen from Prominent Law FirmRead the Press Release
A broker-dealer admitted today to participating in a five-year insider trading scheme that relied on information stolen from a prominent, international law firm, yielding net profits of more than $5.6 million, announced U.S. Attorney Paul J. Fishman for the District of New Jersey.
Vladimir Eydelman, 43, formerly of Colts Neck, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud and one count of tender offer fraud.
According to documents filed in this case and statements made in court: From 2009 to 2013, Eydelman, a broker-dealer employed first by Oppenheimer & Co. and most recently by Morgan Stanley, repeatedly traded on material nonpublic information provided to him by his brokerage client, Frank Tamayo, 42, of Brooklyn, New York, who, in turn, had obtained the inside information from his friend and former law school classmate, Steven Metro, 41, of Katonah, New York. Metro was the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The inside information divulged by Metro to Tamayo and, in turn, by Tamayo to Eydelman, related to corporate transactions, such as mergers and acquisitions or tender offers, in which the law firm represented a party or financial advisor to the transaction. As the law firm’s managing clerk, a litigation-related function, Metro did not personally work on most of the corporate transactions at issue. In most instances, Metro stole the inside information from the firm by scouring its computer system using search terms such as “merger agreement,” “bid letter,” “engagement letter,” “due diligence,” as well as client names and client-matter numbers.
After obtaining the information, Metro divulged it to Tamayo in person, usually meeting at a bar, coffee shop or other location near their respective workplaces in midtown Manhattan. During such meetings, Metro provided Tamayo inside information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals and information related to how the deals would affect the issuers’ stock price once announced. Tamayo generally would write the security’s ticker symbol on a small piece of paper or napkin and commit to memory any pricing/timing inside information provided by Metro.
After Tamayo received the inside information from Metro, Tamayo would meet with Eydelman, usually at a location near Eydelman’s workplace, such as under the large clock in New York City’s Grand Central Terminal, where Tamayo would pass it on to Eydelman. Tamayo would show Eydelman the paper or napkin on which Tamayo had written the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo then would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s source at a law firm, Eydelman purchased securities for himself, family members, friends and clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to cash out his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source, Metro, for providing them inside information.
By exploiting the information that Metro had stolen from the law firm, Eydelman and conspirators Metro and Tamayo netted more than $5.6 million in illicit profits.
Eydelman faces a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy count and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities and tender offer fraud counts. He also must forfeit the proceeds of the criminal offenses. Sentencing is scheduled for Dec. 21, 2015.
Tamayo pleaded guilty to conspiracy and securities and tender offer fraud on Sept. 19, 2014. Metro has pleaded not guilty to the charges against him and is scheduled to go to trial before Judge Shipp on Feb. 8, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu of the U.S. Attorney’s Office in Newark and Joseph R. Gribko of the U.S. Attorney’s Office in Trenton, New Jersey, as well as Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway 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. attorney’s 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Broker-Dealer Admits Role in Scheme to Trade on Inside Information Stolen from Prominent Law FirmRead the Press Release
TRENTON, N.J. B A broker-dealer admitted today to participating in a five-year insider trading scheme that relied on information stolen from a prominent, international law firm, yielding net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Vladimir Eydelman, 43, formerly of Colts Neck, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Eydelman, a broker-dealer employed first by Oppenheimer & Co. and most recently by Morgan Stanley, repeatedly traded on material nonpublic information provided to him by his brokerage client, Frank Tamayo, 42, of Brooklyn, New York, who, in turn, had obtained the inside information from his friend and former law school classmate, Steven Metro, 41, of Katonah, New York. Metro was the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The inside information divulged by Metro to Tamayo and, in turn, by Tamayo to Eydelman, related to corporate transactions, such as mergers and acquisitions or tender offers, in which the law firm represented a party or financial advisor to the transaction. As the law firm’s managing clerk, a litigation-related function, Metro did not personally work on most of the corporate transactions at issue. In most instances, Metro stole the inside information from the firm by scouring its computer system using search terms such as “merger agreement,” “bid letter,” “engagement letter,” “due diligence,” as well as client names and client-matter numbers.
After obtaining the information, Metro divulged it to Tamayo in person, usually meeting at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During such meetings, Metro provided Tamayo inside information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once announced. Tamayo generally would write the security’s ticker symbol on a small piece of paper or napkin and commit to memory any pricing/timing inside information provided by Metro.
After Tamayo received the inside information from Metro, Tamayo would meet with Eydelman, usually at a location near Eydelman’s workplace, such as under the large clock in New York City’s Grand Central Terminal, where Tamayo would pass it on to Eydelman. Tamayo would show Eydelman the paper or napkin on which Tamayo had written the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo then would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s source at a law firm, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to cash out his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source, Metro, for providing them inside information.
By exploiting the information that Metro had stolen from the law firm, Eydelman and conspirators Metro and Tamayo netted more than $5.6 million in illicit profits.
Eydelman faces a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy count and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities and tender offer fraud counts. He also must forfeit the proceeds of the criminal offenses. Sentencing is scheduled for Dec. 21, 2015.
Tamayo pleaded guilty to conspiracy and securities and tender offer fraud on Sept. 19, 2014. Metro has pleaded not guilty to the charges against him and is scheduled to go to trial before Judge Shipp on Feb. 8, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu of the U.S. Attorney’s Office in Newark, and Joseph R. Gribko of the U.S. Attorney’s Office in Trenton, as well as Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway 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. attorney’s 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Brighton Man Pleads Guilty in Child Pornography CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Joseph Lamica, 26, of Brighton, NY, pleaded guilty to knowing receipt of child pornography, before U.S. District Judge Elizabeth A. Wolford. The charge carries carry a minimum of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, handled the case, stated that Lamica was a babysitter who advertised his services on Care.com and Craigslist.com. A family the defendant was working for discovered that Lamica was engaging in inappropriate behavior with nine-year-old son and terminated the babysitting contract. Thereafter, the defendant attempted to approach the boy at school.
The Monroe County Sheriff’s Office obtained a search warrant and searched Lamica’s residence. Deputies found materials and notebooks with writings expressing the defendant’s interest in young boys. Another search warrant was obtained for Lamica’s digital media hardware which contained images of child pornography, and a video of another minor the defendant babysat in 2014.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing is scheduled for December 14th at 2:00 p.m. Judge Wolford.
Brevard County Heroin Dealer Sentenced to 15 Years in PrisonRead the Press Release
Orlando, FL – Senior U.S. District Judge Kendall Sharp today sentenced Antwon Sexton (37, Cocoa) to 15 years in federal prison for conspiracy to possess with the intent to distribute more than 100 grams of heroin. He pleaded guilty on May 28, 2015.
According to court documents, Sexton was a heroin dealer in Brevard County and had at least one source of supply in New Jersey. He managed at least five others who acted as drivers and/or street level dealers and who also helped him obtain and distribute heroin. During the investigation, agents purchased heroin from Sexton and identified several of his customers.
On March 4, 2015, Sexton arrived in downtown Orlando on a train that had originated in New Jersey. When Sexton departed the train, agents saw that he was carrying a duffle bag. He then got into a van and left the train station. During a traffic stop, agents searched the van and located more than 300 grams of heroin in Sexton’s duffle bag. During the investigation, agents linked Sexton to more than 600 grams of heroin.
This case was investigated by the Drug Enforcement Administration, the Brevard County Sheriff’s Office, and the Titusville Police Department. It was prosecuted by Assistant United States Attorney David Haas.
Baltimore Woman Indicted for Allegedly Stealing Almost $200,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Patricia Green Jackson, age 63, of Baltimore, for theft of government property and other charges arising from a scheme to steal social security benefits. The indictment was returned on September 15, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to the two-count indictment, Jackson was a friend of J.W. and a co-signer on J.W.’s bank account. J.W. began receiving retirement benefits from the Social Security Administration (SSA) in 1986, which were paid by direct deposit to her bank account. J.W. died on December 31, 1997. SSA was not aware of J.W.’s death, and continued to make monthly payments of J.W.’s retirement benefits until March 2015.
According to the indictment, after J.W.’s death Jackson used a debit card to withdraw and spend J.W.’s monthly SSA retirement benefits. At the time J.W.’s benefits were suspended in 2015, SSA was paying $1,087 per month in benefits and paid a total of $196,323 in unauthorized benefits after J.W.’s death in 1997. The indictment alleges that not only did Jackson steal those funds, but she concealed J.W.’s death so that SSA would continue to pay J.W.’s retirement benefits.
Jackson faces a maximum sentence of 10 years in prison for theft of government property and a maximum of five years in prison for SSA benefit fraud. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren E. Perry, who is prosecuting the case.
Austin Couple Sentenced for Producing Sexually Explicit Videos and Images of Two GirlsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ANTHONY DOANE EDGE, 36, and DEBORAH SUSAN EDGE, 37, each of whom pleaded guilty to manufacturing child pornography. The defendants were sentenced yesterday before Senior U.S. District Judge Michael Davis in U.S. District Court in Minneapolis, Minn.
According to the defendants’ guilty pleas and documents filed in court, sometime between October 6, 2013, and March 27, 2014, A. EDGE and D. EDGE used a six-year-old minor for the purpose of making a sexually explicit video of the minor’s genitals and pubic area.
According to the defendants’ guilty pleas, A. EDGE made child pornography videos of two young girls in the bathroom of his home using pin-hole cameras disguised to look like household objects, one in the shape of a plastic coat hook and one in the shape of an ink pen. D. EDGE participated in making a child pornography video of one of the young girls. Moreover, more than one thousand suspected images of child pornography were recovered from computers seized at the Edge residence, including many depictions of the sexual exploitation of pre-pubescent children and infants.
This case is the result of an investigation by the Minnesota Bureau of Criminal Apprehension and the Austin Police Department.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Assistant U.S. Attorneys Katharine T. Buzicky and Carol M. Kayser prosecuted this case.
Defendant Information:
ANTHONY DOANE EDGE, 36
Austin, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 25 years in federal prison
DEBORAH SUSAN EDGE, 37
Austin, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 10 years in federal prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Arizona Department of Public Safety Receives over $40 Million in Federal Grant FundsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $40,786,191 has been awarded to the Arizona Department of Public Safety. These funds will, among other things, be used to provide direct services to crime victims. The funds were awarded by the Office for Victims of Crime (“OVC”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
“The Arizona Department of Public Safety is one of our key law enforcement partners, and we are pleased that the Department of Justice has allocated over $40 million in federal funds to supplement its important work in Arizona,” said Leonardo. “We encourage all agencies to be proactive and apply for future law enforcement grant funding through our Office of Justice Programs.”
"As the state's designated recipient of federal Victims of Crime Act Grants, the Arizona Department of Public Safety realizes that this year’s funding will surpass any level of funding that the agency has ever seen. Our employees also understand the responsibilities associated with this funding and are working hard to distribute these funds to service those most in need” said Col. Frank Milstead, Director of the Arizona Department of Public Safety.
Additional information about OVC and its programs is available at: http://www.ovc.gov/.
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
Learn more about the Arizona Department of Public Safety link: http://www.azdps.gov/.
RELEASE NUMBER: 2015-079_AZ _Dept_Pub_Safety (2015-VA-GX-0032)
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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.
10th Annual National Prescription Drug Take-Back Day Saturday, September 26, 2015Read the Press Release
Oklahoma City – U.S. Attorney Sanford C. Coats wants to encourage the public to participate in the Drug Enforcement Administration’s 10th National Prescription Drug Take-Back Day set for Saturday, September 26, 2015, from 10:00 a.m. to 2:00 p.m.
"Prescription drug abuse constitutes one of the greatest public safety and public health epidemics of our time, inflicting devastating, long-term, harm to individuals as well as destroying families and communities throughout the country," said U.S. Attorney Sanford C. Coats. "We can all do our part to fight this epidemic by cleaning out our medicine cabinets of unwanted, unneeded, or expired prescription drugs for safe disposal at one of the many collection sites."
Last September, Americans turned in 309 tons (over 617,000 pounds) of prescription drugs at nearly 5,500 sites operated by the DEA and more than 4,000 of its state and local law enforcement partners. When those results are combined with what was collected in its previous Take Back events, DEA and its partners have taken in over 4.8 million pounds—more than 2,400 tons—of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
Collection sites will be set up throughout communities nationwide.
*******media Advisory*******Read the Press Release
ALBUQUERQUE – Officials from the Department of Justice and Department of the Interior (Interior) will hold a press conference on THURSDAY, SEPTEMBER 17, 2015, to announce a landmark settlement with a nationwide class of tribes and tribal entities.
WHO: Principal Deputy Assistant Attorney General Benjamin C. Mizer Head of the Justice Department’s Civil Division
U.S. Attorney Damon P. Martinez of the District of New Mexico
DOI Assistant Secretary – Indian Affairs Kevin K. Washburn
President David Jose of Ramah Navajo Chapter
President John Yellowbird Steele of Oglala Sioux Tribe
Governor Val R. Panteah Sr. of Pueblo of Zuni
Michael P. Gross, M.P. Gross Law Firm P.C.
C. Bryant Rogers, partner in VanAmberg, Rogers, Yepa, Abeita, Gomez and Works LLP
Lloyd B. Miller, partner in Sonosky Chambers Sachse Miller & Munson
WHEN:THURSDAY, SEPTEMBER 17, 2015 11:00 a.m. MDT / 1:00 p.m. EDT
WHERE:U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials (which must be worn around the neck or pinned to clothing at all times). Media may begin to arrive at 10:00 a.m. MDT. Members of the media must RSVP for the above event to Nicole Navas at [email protected] and Elizabeth Martinez at [email protected] by Thursday, September 17, at 9:00 a.m. EDT. Please include your name, outlet, position, phone number and email address. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
15 September 2015
White Mountain Apache Tribe Receives Nearly $290,000 in Federal Grant Funds to Support Sex Offender Registration and Notification EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $282,014 in additional grant funds have been made available to the White Mountain Apache Tribe to support, maintain, and refine jurisdiction-wide programs and functions under the Sex Offender Registration and Notification Act (“SORNA”). These funds will assist in improving victim notification services, providing educational services, and increasing service capacity. The grant funds were awarded by the Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (“SMART”) Office, which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-071_WHITE MTN GRANT (2015-AW-BX-0017)
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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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Utah Cities Get Department of Justice Grants to Support Police Departments, Serve CommunitiesRead the Press Release
SALT LAKE CITY – The Department of Justice has awarded grants to several Utah cities under the Edward Byrne Memorial Justice Assistance Grant (JAG) Program. The JAG Program is the primary provider of federal criminal justice funding to state and local jurisdictions and supports a range of program areas including law enforcement, prosecution and court programs, prevention and education programs, corrections and community corrections, drug treatment and enforcement, crime victim and witness initiatives, and planning, evaluation, and technology improvement programs.
Among the cities receiving local solicitation grants this year are West Valley City, Layton, Sandy, Provo, Ogden, West Jordan, Salt Lake City, South Salt Lake City, and Murray. The Utah Commission on Crime and Juvenile Justice (CCJJ) received a JAG grant of $1,421,840 under the state solicitation portion of the grant program.
“This program allows cities to apply for grant funds to address local needs and to support a broad range of local initiatives. Our communities are using the funding to increase officer safety, build transparency between police officers and the communities they serve, and to reduce crime in our neighborhoods. Grant recipients are also using funds to target specific issues we face in Utah, such as prescription drug abuse, domestic violence, and gang violence,” U.S. Attorney for Utah John W. Huber said today. The grants are awarded through DOJ’s Bureau of Justice Assistance.
CCJJ will used its JAG funds to enhance statewide public safety services, support of the Utah Residential Substance Abuse Treatment (RSAT) program; and continue other evidence-based projects that support the juvenile justice system, among other things. CCJJ’s JAG priority areas include addressing gang prevention/education or enforcement, prescription drug abuse prevention/education or enforcement, sexual assault or domestic violence, mental health courts and problem solving courts.
West Valley City will receive $90,892 to purchase body cameras for officers. The goals of the grant funding include facilitating transparency and fostering relationships of trust between officers and citizens of the city.
Layton will receive $13,529 to purchase equipment to increase officer safety and to help provide effective service to city residents and Davis County.
Sandy will also use its $19,579 grant to buy equipment, including in-car video camera systems, to provide increased safety for officers and help reduce crime.
Provo will use its $22,532 grant to enhance officer safety and to protect residents of the city. Purchases will include upgrading computers and software. Funds also will be used to purchase Tasers.
Ogden intends to use its $56,117 grant to purchase body cameras and provide training as a part of the city’s participation in multi-jurisdictional law enforcement efforts.
West Jordan will receive $29,487 to purchase law enforcement equipment, including hand-held radios, to improve the capability of police officers.
Murray intends to use its award of $26,439 to purchase digital in-car cameras to improve the capabilities of first responders in the city.
South Salt Lake City will use its $27,963 grant to purchase body cameras for officers.
Salt Lake City will receive a grant of $291,397 to support the Salt Lake City Police Department’s Explorer Program and the Salt Lake Peer Court. The funding will be used to provide equipment and technology, training for civilians and sworn officers, and organizing enforcement and community overtime projects.
Taylorsville, awarded $29,916, will use its grant money to purchase bicycles, lasers, printers, first aid equipment, surveillance equipment, digital cameras, and safety supply handouts for presentations. The updated equipment will help improve neighborhoods security in Taylorsville.
Two Sentenced to Prison for Trafficking More Than Five Pounds of MethRead the Press Release
BUTTE – A federal judge sentenced two defendants on Tuesday for attempting to transport more than five pounds of methamphetamine into Montana. Ismael Melin, 40, of Long Beach, California was sentenced today to 87 months in federal prison for possession with intent to distribute methamphetamine. Jose Luis Montano-Espericueta, 38, also of Long Beach, was sentenced today to 36 months in federal prison for possession of meth with the intent to distribute. Upon release from prison, both defendants will be remanded to the Bureau of Immigration and Customs Enforcement for deportation to Mexico. Chief U.S. District Court Judge Dana Christensen presided over the proceedings.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan Whittaker, the government stated that if the case had proceeded to trial, the government would have proven that between September 2013 and February 2015, Melin and Montano-Espericueta possessed, with intent to distribute, 500 grams or more of methamphetamine, a Schedule II controlled substance. In January of 2015, agents of the Northwest Drug Task Force set up an ostensible drug deal through use of a Confidential Informant. During the exchange, which took place on February 6, agents obtained from the defendants a cooler in which was concealed approximately five pounds of methamphetamine. The defendants were arrested and during subsequent interviews admitted that they had driven from California to Montana for the purpose of transporting and distributing the methamphetamine in Montana.
The defendants had requested sentences significantly below the recommended guideline range. The United States had argued for sentences within the guideline range based on the extremely large amount of methamphetamine and the profound social and economic toll caused by the drug in Montana.
Assistant U.S. Attorney Bryan Whittaker prosecuted the cases. The crimes were investigated by the Northwest Drug Task Force. The defendants will have to serve at least 85% of their sentences before being released from federal prison.
Two Defendants Plead Guilty in Manhattan Federal Court for Their Roles in Orchestrating $18.5 Million Mortgage Modification Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PED ABGHARI, a/k/a “Ted Allen,” and JUSTIN ROMANO pled guilty for their roles in orchestrating a massive mortgage modification scheme that collectively defrauded over 8,000 homeowners out of over $18.5 million. ABGHARI and ROMANO each pled guilty to wire fraud and conspiracy to commit wire fraud, and ABGHARI also pled guilty to misprision of a felony. ROMANO pled on September 14, 2015, and ABGHARI pled on September 15, 2015, before U.S. District Judge. John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “As they have now admitted, Ped Abghari and Justin Romano took advantage of thousands of homeowners under water with debt and in need of assistance from the Home Affordable Modification Program and similar mortgage modification programs. Instead of helping to lift desperate homeowners out of debt, Abghari and Romano pushed them deeper in through exorbitant fees for mortgage modification services they never intended to provide. More than 8,000 homeowners were victimized by the defendants’ greed, but thanks to the extraordinary efforts of the Office of the Special Inspector General for the Troubled Asset Relief Program, those victims now can find some comfort in knowing that those who preyed on their suffering have been forced to admit to their crimes.”
According to the Indictment, and statements made at the plea proceedings:
The Home Affordable Modification Program
As a result of the financial crisis and collapse of the housing bubble in 2008, Congress enacted the Home Affordable Modification Program (“HAMP”), which was to be funded through the Troubled Asset Relief Program (“TARP”). HAMP permits qualified home owners to obtain mortgage relief. Specifically, HAMP seeks to prevent foreclosure by modifying troubled loans to achieve monthly payments the homeowner can afford.
Pursuant to HAMP, any homeowner may apply to his or her mortgage provider by completing a short form and submitting it, along with supporting paperwork, to the homeowner’s mortgage provider. HAMP further sets guidelines for lenders to follow in determining eligibility, such as guidelines based on the homeowner’s income and the principal balance remaining on the mortgage. Pursuant to HAMP, only a homeowner’s lender may determine the homeowner’s eligibility for a modification and, if appropriate, the modified rate and monthly payment for which the homeowner is eligible.
HAMP applications are readily available online as well as in many local banks. Submitting an application is, by law, free of charge to the homeowner. Virtually all mortgage providers are required to participate in the HAMP program and accept HAMP applications.
If a HAMP applicant is approved, he or she receives a reduced monthly mortgage payment set by the lender. If the HAMP applicant is not eligible for a modification, the application may be rejected. Common reasons for rejection of a HAMP application include that the homeowner earns too much income to qualify or has not demonstrated sufficient financial hardship or need for a modification.
Mortgage Modification Fraud
PED ABGHARI, a/k/a “Ted Allen,” was a president and owner of an Irvine, California, company that offered purported mortgage modification services (the “Telemarketing Firm”). JUSTIN ROMANO held himself out as the president of two purported law firms (the “Purported Law Firms”), based in Holbrook, New York, and Sayville, New York, which offered purported mortgage modification services in conjunction with the Telemarketing Firm.
From at least January 2011 through May 2014, through the Telemarketing Firm and the Purported Law Firms, ABGHARI and ROMANO, among others, perpetrated a scheme to defraud homeowners in dire financial straits who were seeking relief through HAMP and other mortgage relief programs. Through a series of false and fraudulent representations, the defendants duped thousands of homeowners into paying thousands of dollars each in up-front fees in exchange for little or no service from the defendants or their companies. In total, through their scheme, the defendants obtained over $18.5 million from more than 8,000 victim-homeowners throughout the United States.
Through the Telemarketing Firm, ABGHARI and others purchased thousands of “leads,” consisting of the name, address, and other contact information of homeowners who had fallen behind in making mortgage payments on their homes. ABGHARI and others then caused the Telemarketing Firm to send, by e-mail, false and fraudulent solicitation letters to the homeowners they identified through the “leads,” misleading these homeowners into believing that their mortgages were already under review and that new, modified rates had already been contemplated and approved by the homeowners’ lenders.
At the direction of ABGHARI and ROMANO, among others, the Telemarketing Firm’s telemarketer and sales people (the “Sales Staff”) called homeowners and/or answered telephone calls from homeowners who received the Telemarketing Firm’s fraudulent solicitations. During these calls, in an effort to convince the homeowners to pay up-front fees, the defendants, through the Sales Staff, regularly caused various false and fraudulent representations to be made to homeowners, including that (a) the homeowners were retaining a “law firm” and an “attorney” who would complete the HAMP application and negotiate aggressively on the homeowners’ behalf with banks to modify the terms of the homeowners’ mortgages; (b) the defendants would “pre-approve” the homeowners for a guaranteed modification through HAMP; (c) the defendants employed underwriters who would calculate and guarantee the homeowners a new, modified rate and monthly mortgage payment; and (d) the defendants’ mortgage modification services were free, and the up-front fees paid by the homeowners would be paid directly to the homeowners’ lenders. In truth and in fact, and as ABGHARI and ROMANO well knew, all of these representations were false and fraudulent.
* * *
ABGHARI, 38, of Irvine, California, and ROMANO, 41, of Blue Point, New York, each pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of twenty years in prison. ABGHARI also pled guilty to one count of misprision of a felony, which carries a maximum sentence of three years in prison. Sentencings for ABGHARI and ROMANO have been set for January 14, 2016.
The maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
The remaining defendant charged for his role in the scheme, Dionysius Fiumano, a/k/a “D,” is scheduled to begin trial on December 9, 2015, before Judge Keenan. The charges pending against Fiumano are merely allegations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the Office of the Special Inspector General for the Troubled Asset Relief Program.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward B. Diskant and Joshua A. Naftalis are in charge of the prosecution.
Trivillian's Pharmacy sentenced for federal healthcare and drug crimesRead the Press Release
Former Owner Paula Butterfield Sentenced to One Year and One Day in Federal Prison
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Trivillian’s Pharmacy, a long-standing Kanawha City retail and compounding pharmacy, was sentenced today in federal court in Charleston to three years of probation. Trivillian’s Pharmacy had previously entered guilty pleas on February 25, 2015, to healthcare fraud and misbranding drugs. Trivillian’s Pharmacy admitted it defrauded Medicare and Medicaid by dispensing compounded drugs while billing for more expensive brand name drugs, dispensing generic drugs while billing for more expensive brand name drugs, billing for drugs that were never dispensed and dispensing drugs that were compounded outside of a safe and clean environment. Trivillian’s Pharmacy also admitted to dispensing compounded drugs under labels and identification numbers associated with name brand drugs. As part of the plea, Trivillian’s Pharmacy agreed to make restitution to the Medicare and Medicaid programs in the amount of $355, 312.19**, and to forfeit an additional $355,312.19 of proceeds of the fraud schemes to the United States.
Paula J. Butterfield, the former owner and president of Trivillian’s Pharmacy was also sentenced to one year and one day in federal prison, followed by three years of supervised release. Butterfield, who was insured by Medicare, previously pleaded guilty to causing Trivillian’s Pharmacy to bill Medicare for drugs that were never dispensed to her. Butterfield has agreed make restitution to Medicare in the amount of $5,106.90.
Goodwin’s office has also reached a civil settlement with Trivillian’s Pharmacy under the federal False Claims Act, through which the United States recovered an additional $1.1 million for Medicare and Medicaid. The settlement amount represents more than three times the losses suffered by these federal healthcare programs. Between Trivillian’s Pharmacy and Butterfield, a total of more than $1.4 million will be paid through the civil settlement, criminal restitution and asset forfeiture.
Goodwin said, “Pharmacists and pharmacies hold positions of trust in our communities. Patients trust them to provide the medicines they need and bill correctly for the medicines they dispense. The crimes committed in this case represent a substantial breach of that trust. Here, the pharmacist and the pharmacy she owned were held accountable for their crimes and the programs they stole from were made whole. This should send a message to others who would engage in such conduct.”
The investigation was conducted by the United States Health and Human Services, the FDA, the Drug Enforcement Administration, the West Virginia State Police, and the West Virginia Medicaid Fraud Control Unit. Assistant United States Attorney Eumi Choi was in charge of the prosecution. Assistant United States Attorney John Gianola is responsible for the civil settlement.
** The pharmacy gets credit towards restitution for this amount based on its payments to date under the civil settlement.
Topsfield Man Pleads Guilty to Tax and Bankruptcy Fraud ChargesRead the Press Release
BOSTON – A Topsfield man pleaded guilty today in connection with evading nearly $400,000 in federal income taxes and false statements he made in bankruptcy filings.
Robert P. Bonefant, Jr., 57, pleaded guilty to two counts of tax evasion, three counts of filing a false tax return, and three counts of bankruptcy fraud for making false statements. U.S. District Chief Judge Patti B. Saris scheduled sentencing for Dec. 18, 2015.
In late 2008, the IRS assessed Bonefant for $194,430 in taxes owed for tax years 2004 and 2005. Thereafter, Bonefant took steps to prevent the IRS from learning of his true income and determining his actual tax liabilities. He did so by, among other things, depositing $1 million into his father’s bank accounts, including both taxable income and non-taxable business expense reimbursements. Bonefant also filed three federal income tax returns that failed to report significant income he had received for tax years 2009, 2011, and 2012. Additionally, he failed to file taxes for 2010. In total, including the amounts assessed for 2004 and 2005 and the amounts owed for 2009 through 2012, Bonefant failed to pay approximately $386,984 in taxes.
In 2012, Bonefant filed a chapter 7 bankruptcy case in Massachusetts seeking to discharge various debts, including the outstanding 2004 and 2005 federal tax liability. In documents filed with the Bankruptcy Court, and which he signed under the penalty of perjury, Bonefant made false statements concerning his income and assets, as well as his use of his father’s bank accounts.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of filing a false tax return provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000. The charge of bankruptcy fraud provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Trustee’s Office in Boston also provided assistance with this case. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Third Defendant Sentenced in Illegal Deer Trafficking CaseRead the Press Release
COLUMBUS, Ohio – Benjamin N. Chason, 61, of Climax, Ga. pleaded guilty and was sentenced in U.S. District Court for three charges related to violating the Lacey Act. Chason was ordered to pay $1.6 million in fines and restitution, the largest sum of money ordered of an individual to pay for a wildlife crime in the United States.
Of the $1.6 million, $600,000 is to be paid into the Ohio Department of Natural Resources Wildlife Habitat Fund $200,000 to the Federal Endangered Species and Wildlife Diversity Fund, $400,000 to Columbus and Franklin County Metro Parks and $100,000 to the Ohio DNR Division of Wildlife Turn in a Poacher (TIP) program.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Gregory Jackson, Special Agent in Charge, United States Fish and Wildlife Service Office of Law Enforcement, Chief Scott Zody, Ohio Department of Natural Resources Division of Wildlife, Franklin County Prosecutor Ron O’Brien, the Florida Fish and Wildlife Conservation Commission and Georgia Department of Natural Resources announced the sentence, which was unsealed yesterday.
According to court documents, Chason and co-conspirator Donald W. Wainwright, Sr., trafficked in live white-tailed deer. Wainwright Sr. owned hunting preserves in Logan County, Ohio, and Live Oak, Florida; both preserves were named Valley View Whitetails. Donald Wainwright, Jr. was part-time resident and part-time operator of the site in Ohio. Chason was part-owner of Valley View Whitetails in Ohio and also owned an extensive high-fenced property containing white-tailed deer in Climax, Ga.
Wainwright Sr. illegally shipped deer to Florida from Ohio and attempted to ship deer to Georgia from Ohio. The deer herds involved with these shipments were not certified to be free from chronic wasting disease, tuberculosis and brucellosis. Federal law requires interstate shipments of deer to be certified to be disease-free; because the deer in the present case were not certified as disease-free, deer herds (both captive and wild) in Florida were potentially exposed to these diseases. Tuberculosis and brucellosis can also be transmitted from deer to cows and humans.
The attempted shipment to Georgia was intercepted on I-71 South, about 50 miles from the Ohio River, when Ohio Division of Wildlife officers noticed deer noses and antlers inside a cargo trailer and pulled over a truck driven by Wainwright Sr.’s employees.
Wainwright Sr. and Chason placed federal identification tags from a certified deer that had previously died into the ear of an uncertified deer they were selling. They then sold breeding services and semen from the deer to breeders around the United States.
The defendants also sold illegal white-tailed deer hunts at Valley View Whitetails of Ohio. They induced clients from around the country to hunt at Valley View Whitetails of Ohio – charging customers from $1,000 to $50,000 to kill deer inside his high fence preserve when Wainwright did not have a hunting preserve license. The customers then took the bucks back to their home states, including: Florida, Michigan, Alabama and Virginia.
“Illegal sale and transport of white-tailed deer are serious crimes and I appreciate the teamwork and cooperation between all of the agencies involved to help obtain these convictions,” ODNR Division of Wildlife Chief Scott Zody said.
"We are pleased to see the positive results in this investigation. The U.S. Fish and Wildlife Service, Office of Law Enforcement considers the potential spread of disease caused by the illegal commercialization of fish and wildlife resources a high priority, and we will continue to work closely with our State partners to assist them in these important investigations," said Edward Grace, U.S. Fish and Wildlife Service Deputy Assistant Director for Law Enforcement.
Chason pleaded guilty on May 1, 2014. Besides being ordered to pay restitution, Chason was sentenced to three years of probation and four months of home confinement. Chason also agreed to publish a statement in North American Whitetail Magazine and perform 150 hours community service in an Ohio or Georgia State Park.
Wainwright Sr. pleaded guilty on February 27, 2015, to 12 charges related to violating the Lacey Act, one count of conspiracy and one count of wire fraud. He was sentenced to 21 months in prison, a $125,000 fine 200 hours of community service to be served in a parks system and ordered to publish an article in The Deer Breeders Gazette.
Wainwright Jr. pleaded guilty on February 17, 2015, to eight charges related to offering illegal hunts in violation the Lacey Act and was sentenced to four months of house arrest and three years of probation.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Special Assistant United States Attorney Heather Robinson with the Franklin County Prosecutor’s Office and Assistant United States Attorneys J. Michael Marous and Peter Glenn-Applegate, who represented the United States in this case.
Texas Man Pleads Guilty to Federal Hate Crime Against Gay African American ManRead the Press Release
A Texas man has pleaded guilty to hate crime offenses for his role in a Mar. 8, 2012, assault of a gay African American man in Corpus Christi, Texas, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Ramiro Serrata Jr., 22, pleaded guilty in federal court in Corpus Christi to one count of conspiracy to commit hate crimes and one count of a hate crime violation based on sexual orientation.
During the plea hearing, Serrata admitted that he and others conspired to assault a gay African American man because of his race, color and sexual orientation. Serrata admitted that during the assault, he and his co-conspirators punched and kicked the man and assaulted him with various dangerous weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt.
Serrata admitted that when the victim began to bleed, the conspirators forced him to remove all of his clothing and clean up the blood throughout the apartment. After the victim was completely naked, one of the conspirators pointed a gun at the victim, while Serrata sodomized him with a broom. During the assault, the conspirators poured bleach onto the man’s face and eyes, pistol-whipped him with a handgun and whipped him with a belt.
Serrata acknowledged that throughout the assault, the conspirators repeatedly called the victim racial and homophobic slurs and made other anti-black and anti-gay statements. The conspirators also prevented the man from leaving the apartment by physical force and threats of force. The victim eventually escaped the apartment by jumping out of a window.
Serrata will be sentenced on Dec. 9, 2015, and faces a maximum sentence of fifteen years in prison. Serrata is incarcerated pending sentencing.
Jimmy Garza Jr. is also charged with related hate crimes in connection to this offense. His trial is scheduled for Sept. 29, 2015. He has pleaded not guilty, and is presumed innocent unless and until proven guilty.
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department and is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division and Assistant U.S. Attorney Ruben Perez of the Southern District of Texas.