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11 September 2015
Luzerne County Man Charged with Theft from Postal ServiceRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Luzerne county man with stealing over $20,000 from the United States Postal Service by submitting multiple false insurance claims over an eight month period.
According to United States Attorney Peter Smith, on multiple occasions between October 2011 and June 2013, David Steele, age 44, of Luzerne County, Pennsylvania, submitted false insurance claims to the United States Postal Service, resulting in losses totaling $20,903.13.
The government filed a plea agreement in the case which is subject to the approval of the court.
This case was investigated by the United States Postal Service Office of the Inspector General. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
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 10 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 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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Lubbock Man Sentenced to 200 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Jeffrey William McCall, 42, was sentenced this morning by U.S. District Judge Sam R. Cummings to 200 months in federal prison, following his guilty plea in June 2015 to one count of production of child pornography, announced U.S. Attorney John R. Parker of the Northern District of Texas.
According to documents filed in the case, on April 7, 2015, McCall obtained a video of a minor female child by hiding his cellular telephone in the bathroom and turning on the video camera when the child went into the bathroom to take a shower. McCall carefully positioned and aimed the lens of the camera with the intent of obtaining images of the child.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Lubbock Police Department’s Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Louisiana Man Gets 10-Year Prison Sentence for Robbing Pittsburgh BankRead the Press Release
PITTSBURGH - A former resident of Crowley, Louisiana, has been sentenced in federal court on his conviction of bank robbery. Kirk Stutes, 52, received a sentence of 120 months imprisonment, followed by three years supervised release. Stutes was ordered to pay restitution in the amount of $700.00, a Special Assessment in the amount of $100.00. In addition, the Court ordered that $3,148.00 shall be paid through forfeiture of funds recovered from Stutes.
United States District Judge Nora Barry Fischer imposed the sentence on Stutes.
According to information presented to the court, on Jan. 16, 2015, Stutes robbed First National Bank located at 6298 Steubenville Pike, in Pittsburgh, Pa. The bank is insured by the Federal Deposit Insurance Corporation.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, Robinson Township Police Department, North Fayette Police Department, Allegheny County Police Department, Allegheny County Sheriff’s Department, and the Pennsylvania State Police for conducting the investigation leading to the successful prosecution of Stutes.
Lewiston Man Pleads Guilty to Tax ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jon DiBernardo, 51, of Lewiston, NY, pleaded guilty to tax evasion before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of five years in prison, a fine of $100,000 or both.Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendant was the owner of Water Street Landing, a restaurant in Lewiston, NY. Between 2006 and 2009, DiBernardo submitted tax returns to the Internal Revenue Service understating business revenues thereby evading payment of income tax. In addition, the defendant paid employees off the books and as a result failed to pay employment taxes.
DiBernardo failed to report a total of $419,221 in taxable income resulting in a loss of $111,377 to the IRS. In addition, the defendant failed to report $285,705 in employee wages resulting in a loss of $43,712 to the IRS.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for January 20, 2016 at 1:00 p.m. before Judge Arcara.
Jury finds Monroe tax preparer guilty of filing false returnsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found a Monroe tax preparer guilty of filing multiple false tax returns.
The jury found Richard Allan Scott, 38, of Monroe, guilty of multiple counts of aiding or subscribing a false tax return. United States District Judge Robert G. James presided over the trial, which started Wednesday and ended today. The jury deliberated for approximately an hour and a half. Evidence admitted at trial revealed that more than 50 false tax returns for years 2011 and 2012 were prepared. Many of the returns contained fictitious information pertaining to W-2 withholdings, dependent care expenses and tax credits. The total amount stolen during the scheme was approximately $338,380.
“We are pleased with today’s conviction,” Finley stated. “Our tax system is built on the premise that taxpayers voluntarily file accurate and timely tax returns. Mr. Scott used his knowledge of this system to fraudulently manipulate tax returns to steal from the U.S. Treasury and now will have to pay for this crime. To ensure confidence in the tax system, the U.S. Attorney’s Office and the IRS remain committed to the aggressive pursuit and prosecution of individuals who intentionally violate the nation’s tax laws.”
Scott faces up to three years in prison, five years supervised release, a $250,000 fine and restitution for each count. A sentencing date of January 4, 2016 was set.
The IRS-Criminal Investigations and the Monroe Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Jury Finds Husband and Wife Guilty in Antelope Home ArsonRead the Press Release
SACRAMENTO, Calif. — After a 10-day trial before Chief United States District Judge Morrison C. England Jr., a jury returned its verdict today finding a Sacramento couple guilty on all four counts related to the arson of their former home in Antelope, United States Attorney Benjamin B. Wagner announced.
The jury found Alexander Sakhanskiy, 43, and Larisa Sakhanskiy, 46, guilty of arson to commit another felony, two counts of mail fraud, and arson affecting interstate commerce. After today’s verdict, the judge ordered the defendants to be taken into custody.
According to evidence introduced at trial, on May 22, 2010, a gasoline-fueled fire destroyed the defendants’ home, a single-family house at 5745 Hawkeye Lane, in Antelope, California; the home was also being used as the business location of “Alex’s Plumbing.” Prior to the fire, the defendants removed most of their personal belongings from the house. Firefighters testified that the residential fire sprinkler system and smoke detectors had been deactivated. The fire resulted in the total destruction of the house, however, firefighters were able to prevent the fire from spreading to neighboring homes.
Evidence at trial showed that the defendants had set the fire or caused the fire to be set in order to collect insurance money from Farmers Insurance Group, Mid-Century Insurance Company. In filing the claim, the defendants falsely claimed that hundreds of thousands of dollars of property was destroyed in the fire, when in reality, most of the contents of the house had been removed and hidden before the fire.
Eric Harden, ATF Acting Special Agent in Charge of the San Francisco Field Division, said: “Arson is an act of violence and endangers our communities. Let this case be a warning, we are committed to aggressively pursue arson investigations with our law enforcement partners.”
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sacramento Metropolitan Fire District. The Sacramento County District Attorney’s Office assisted investigators with the initial fire investigation. Assistant U.S. Attorneys Michael D. Anderson and Nirav Desai are prosecuting the case.
The defendants are scheduled to be sentenced on December 4, 2015. They face a minimum statutory penalty of 10 years in prison, a $250,000 fine, and a three-year term of supervised release for the charge of arson to commit another felony. The mail fraud counts carry a potential penalty of up to 20 years in prison, a $250,000 fine, and a three-year term of supervised release. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Convicts Houston Psychiatrist in $158 Million Medicare Fraud SchemeRead the Press Release
A Houston psychiatrist was convicted late yesterday by a federal jury of participating in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Region, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and Special Agent in Charge D. Richard Goss of the Internal Revenue Service-Criminal Investigation Division (IRS-CI) Houston Field Office made the announcement.
Sharon Iglehart, 58, of Harris County, Texas, was convicted of one count of conspiracy to commit health care fraud, one count of health care fraud and three counts of making false statements relating to health care matters, following a seven-day jury trial before U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. Iglehart is scheduled to be sentenced on Dec. 5, 2015.
According to evidence presented at trial, from 2006 until June 2012, Iglehart and others engaged in a scheme to defraud Medicare by submitting, through Riverside General Hospital (Riverside), approximately $158 million in false and fraudulent claims for partial hospitalization program (PHP) services to Medicare. A PHP is a form of intensive outpatient treatment for severe mental illness.
The evidence presented at trial showed that the Medicare beneficiaries for whom Riverside billed Medicare did not receive PHP services. In fact, according to evidence presented at trial, most of the Medicare beneficiaries for whom Riverside billed Medicare rarely saw a psychiatrist and did not receive intensive psychiatric treatment.
In addition, evidence presented at trial showed that Iglehart personally billed Medicare for individual psychotherapy and other treatment to patients at Riverside locations – treatment that she never provided. The evidence at trial also demonstrated that Iglehart falsified the medical records of patients at Riverside’s inpatient facility to make it appear as if she provided psychiatric treatment when, in fact, she did not.
To date, 12 others previously have been convicted of offenses based on their roles in the fraudulent scheme. Earnest Gibson III, the former president of Riverside; Earnest Gibson IV, the operator of one of Riverside’s PHP satellite locations; Regina Askew, a group home owner and patient file auditor; and Robert Crane, a patient recruiter, were all convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison. Earnest Gibson IV was sentenced to 20 years in prison. Regina Askew was sentenced to 12 years in prison. Robert Crane has not yet been sentenced. Mohammad Khan, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie and Sharonda Holmes, who were all involved in paying or receiving kickbacks, also pleaded guilty. Bullock, Clark and Ferguson await sentencing.
The case was investigated by the FBI, HHS-OIG, Texas MFCU, and IRS-CI with assistance from the Railroad Retirement Board-Office of Inspector General (RRB-OIG) Chicago Field Office and the Office of Personnel Management-Office of Inspector General, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova and Trial Attorney Ashlee C. McFarlane of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Humboldt County Juvenile Corrections Officer Sentenced to 60 Months in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Keith Monroe Wallace was sentenced today to 60 months in prison for possession of child pornography, announced Acting United States Brian J. Stretch and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
Wallace, 53, of Eureka, Calif., pleaded guilty on June 24, 2015, to possession of child pornography. According to the plea agreement the defendant admitted to knowingly possessing 600 or more visual depictions of prepubescent minors or minors who had not attained 12 years of age engaging in sexually explicit conduct. The images included depictions of sadistic or masochistic conduct or other depictions of violence. Wallace was indicted by a federal grand jury on March 10, 2015, and charged with one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2).
At the time of his arrest, Wallace was employed by the Humboldt County Juvenile Probation Office as a Supervising Juvenile Corrections Officer in the Northern California Regional Facility in Eureka. According to court documents, federal law enforcement agents with HSI were led to Wallace as a result of an investigation into the sexual exploitation of children in the Northern District of California. On February 26, 2015, a federal search warrant was executed at Wallace’s residence in Eureka. HSI agents and Humboldt County District Attorney Investigators seized various computers and digital media storage devices pursuant to the search warrant. A forensic review of the computers and digital media storage devices seized from Wallace’s residence revealed the existence of videos and images depicting minors engaging in sexually explicit conduct. Wallace was taken into federal custody at the time of the execution of the search warrant.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer also sentenced Wallace to a ten-year period of supervised release and a number of other conditions. One such condition is that Wallace will be required to register with the state sex offender registration agency as required by state law. Restitution will be determined by the court at a later date. The defendant will begin serving his prison term immediately.
Assistant U.S. Attorney Claudia A. Quiroz is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the HSI Child Exploitation Investigations Group, as well as investigators from the Humboldt County District Attorney’s Office.
If members of the public have any information relevant to this investigation or regarding child sexual exploitation crimes they are encouraged to call the ICE tip line at 1-866-347-2423 (1-866-DHS-2ICE).
Hudson County, New Jersey, Man Sentenced to 15 Months in Prison for Role in Illegal Online Gambling EnterpriseRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was sentenced today to 15 months in prison for conspiring with a criminal enterprise that engaged in illegal sports betting in New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Mark A. Sanzo, 57, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Members of the conspiracy, referred to as “agents,” were given access to Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors. Sanzo was an agent of the gambling enterprise.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Instead, Sanzo and his conspirators paid out winnings and collected losses in person. During his plea hearing, Sanzo admitted that he conspired to commit racketeering acts in connection with the illegal sports betting operation, and that he and other conspirators profited from the scheme.
In addition to the prison term, Judge Cecchi ordered Sanzo to serve three years of supervised release and pay a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni; and the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Christopher L. Patella Esq., Bayonne, New Jersey
Howard County Man Sentenced to over 15 Years in Prison for Armed Robbery and Being an Accessory to a MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Avery Terry, age 23, of Laurel, Maryland, today to 181 months in prison followed by three years of supervised release for robbery, using and brandishing a firearm during the robbery, and accessory after the fact to a second robbery resulting in death.
The sentence 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 his plea agreement, on January 21, 2014, Terry and another individual robbed the CVS Pharmacy in Elkridge, Maryland at gun point. A store video camera recorded the robbery, including the distinctive clothing worn by the robbers. Terry texted a picture of himself holding the handgun used in the robbery two days prior. Terry had a previous felony conviction for drug distribution and was prohibited from possessing a gun or ammunition.
On January 26, 2014, Howard County Police executed an arrest warrant for another individual who was a suspected shooter in a January 23, 2014 robbery and homicide. Law enforcement saw Terry and the suspect leaving the suspect’s home and get into Terry’s car. Police made a traffic stop and arrested the suspected shooter. A black .38 caliber revolver, different from the gun used in the CVS robbery, was found under the driver’s seat where Terry was driving. Ammunition was also found in Terry’s car.
A Howard County detective who was investigating the CVS robbery was also participating in the execution of the arrest warrant that day. The detective noticed clothing in Terry’s car that matched the distinctive clothing worn by the CVS robbers on January 21. Law enforcement executed a search warrant at Terry’s home and recovered a mask and other clothing matching that worn by one of the CVS robbers.
After Terry’s arrest, Howard County Police monitored Terry’s jail calls, including a call in which he asked his mother to get his employer to provide a false alibi for him at the time of the CVS robbery. Terry’s mother called the employer and asked him to provide the alibi, but the employer refused and promptly reported the call to police. Cell site data from Terry’s phone revealed that it was used to send calls or data through a cell tower location near the CVS Pharmacy at the time of the robbery.
Subsequent investigation revealed additional information concerning Terry’s knowledge of the January 23, 2014, robbery/homicide. Call records show that between January 21 and January 26, 2014, Terry had frequent telephone communication with two individuals charged with that crime. In addition, Terry admitted that at the time of the alleged shooter’s arrest in Terry’s car, they were attempting to get rid of the murder weapon. The alleged shooter, Desmick Lewis, age 23, of Columbia, is facing murder charges in Howard County Circuit Court. A second alleged co-conspirator, Pepe Taylor, age 21, of Laurel, is charged federally for his role in the robbery and murder. Taylor has pleaded not guilty and his trial is scheduled to begin November 30, 2015. 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 prosecuted the case.
Hollister Man Pleads Guilty to Producing Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Hollister, Mo., man has pleaded guilty in federal court to producing child pornography.
Michael Shane Tyson, 30, of Hollister, pleaded guilty on Thursday, Sept. 10, 2015, before U.S. District Judge M. Douglas Harpool to the charge contained in a May 13, 2015, federal indictment.
By pleading guilty, Tyson admitted that he sexually assaulted a 9-year-old child over a two-year period and created several videos of the abuse with his cell phone.
According to the plea agreement, a Hollister, Mo., police officer responded to Cox Hospital in Branson, Mo., on April 7, 2015, to a report of child molestation. The mother of the child victim told the officer that Tyson had sexually assaulted her daughter the previous week. The mother also told the officer that the abuse had been occurring over the past two years. The child victim did not report the abuse, she said, because Tyson had threatened to kill her if she told anyone.
The child victim was interviewed at the Branson West Child Advocacy Center. She reported that Tyson made videos of her with his cell phone. When she told Tyson she did not want to engage in sexual activities, the plea agreement says, he became angry and threatened her by brandishing a knife taken from a knife block in the kitchen.
Law enforcement officers executed a search warrant at Tyson’s residence and seized seven cell phones, two laptop computers and four flash drives. Investigators discovered several video recordings on one of Tyson’s cell phones in which he placed his phone in the bathroom and secretly recorded two additional child victims, of similar ages to the first victim, undressing, showering and drying off. Investigators also discovered videos and images of the sexual assault of the first child victim on Tyson’s laptop computer, along with 20 images of child pornography that had been downloaded over the Internet.
Under the terms of the plea agreement, Tyson must forfeit to the government the laptop computer and Droid Razr Maxx cell phone that were used to commit the offense. Tyson will be required under the Sex Offender Registration and Notification Act to register as a sex offender and keep the registration current in each of the jurisdictions where he resides, where he is employed and where he is a student.
Under federal statutes, Tyson is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution to his victim. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Four Men Indicted Federally in the Wake of an Increase in Gun Violence in West Palm BeachRead the Press Release
Four men were indicted yesterday in the wake of an increase in gun violence in West Palm Beach.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Palm Beach County, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Bryan Kummerlen, Chief, West Palm Beach Police Department and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
Patrick D. Turner, 30, Antonio Gaynus, 24, Devontae L. Colbert, 20, and Adrian Coleman, 25, all of West Palm Beach, were charged by indictment with being felons in possession of a firearm. If convicted and determined to be Armed Career Criminals, Turner and Coleman, face a mandatory minimum sentence of 15 years to life in prison. Gaynus and Colbert face a statutory maximum sentence of 10 years in prison.
The criminal complaints allege that on various dates the four defendants unlawfully possessed firearms.
On July 25, 2015, Turner, a convicted felon, was found in possession of a loaded semi-automatic pistol. On July 24, 2015, Gaynus, a convicted felon, was found in possession of a loaded 9mm semi-automatic pistol. On June 29, 2015, law enforcement officers with the West Palm Beach Police Department responded to a shooting at the Roosevelt Full Service Center School in West Palm Beach and found Colbert, a convicted felon, on the scene. Colbert allegedly attempted to conceal a firearm he possessed, by throwing it on top of a container. A forensic examination was conducted and Colbert’s blood and DNA was allegedly discovered on the recovered firearm. On July 15, 2015, Coleman, was the rear passenger of a vehicle and attempted to flee from the police during a traffic stop. Following his arrest, law enforcement discovered that Coleman had placed and attempted to conceal a loaded.45 caliber pistol in the vehicle.
These cases are the result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commended the investigative efforts of the ATF, West Palm Beach Police Department and Palm Beach County Sheriff’s Office. These cases are being prosecuted by Assistant U.S. Attorney Adam McMichael.
A criminal indictment is only an accusation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Marin Attorney Charged in Securites Fraud, Money Laundering SchemeRead the Press Release
SAN JOSE – James Seltzer, a former attorney and resident of Marin County, appeared today in San Jose on charges he defrauded several clients by convincing them to make contributions for sham investments, announced Acting United States Attorney Brian Stretch, FBI Special Agent in Charge David J. Johnson, and IRS Criminal Investigation Special Agent in Charge José M. Martinez. Seltzer was apprehended in Hawaii and ordered to appear in San Jose to face the charges presented in an indictment filed the Northern District of California.
According to the indictment unsealed today, beginning in 2005 through 2011, Seltzer, 67, of Belvedere, approached several clients of his law practice, as well as their friends and acquaintances, to solicit funds for sham investments. For some potential investors, Seltzer invited them to invest in real estate outside the United States. For other potential investors, Seltzer convinced them to hand over funds for stock investments. For example, Seltzer allegedly represented to victims that he could purchase shares of private companies before the companies were acquired by publically traded companies. Seltzer allegedly told his victims that his status as a shareholder of the private companies gave him special access to the shares before the companies were acquired. Then, rather than invest the money as he promised, Seltzer deposited the funds from potential investors into his own personal bank accounts. According to the indictment, Seltzer spent the money on his own personal expenses including home mortgages, credit card bills, and international travel. In addition, Seltzer engaged in a “Ponzi” scheme in which he diverted monies received from later investors to return monies to earlier investors. In sum, Seltzer was charged with five counts of securities fraud, in violation of 15 U.S.C. § 78; one count of mail fraud, in violation of 18 U.S.C. § 1341; and three counts of money laundering, in violation of 18 U.S.C. § 1957.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum term of imprisonment for securities fraud is 20 years for each count, the maximum term of imprisonment for mail fraud is 20 years, and the maximum term of imprisonment for money laundering is 10 years for each count. Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Seltzer remains free on a bond and is scheduled to appear on September 17, 2015, before U.S. Magistrate Judge Howard R. Lloyd to assess the conditions of release pending trial.
Assistant U.S. Attorneys Timothy Lucey and Arvon Perteet are prosecuting the case with the assistance of Laurie Worthen and Yolanda Singletary. The prosecution is the result of an investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation.
Former Independence, Missouri, Police Officer Pleads Guilty to Federal Civil Rights ChargeRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division and U.S. Attorney Tammy Dickinson of the Western District of Missouri announced that former Independence, Missouri, police officer Timothy Runnels pleaded guilty today for violating the constitutional rights of a minor who was in his custody.
Documents filed in connection with the guilty plea state that Runnels, while employed as an officer of the Independence Police Department, deprived the minor of his civil rights by deliberately dropping the minor face first onto the ground while the minor was restrained and not posing a threat to Runnels or others. According to the court filings, Runnels’ actions resulted in bodily injury to the minor.
Runnels faces a statutory maximum sentence of 10 years in prison and a fine of $250,000 for his conviction for violating the minor’s civil rights.
“The department remains committed to ensuring that police officers who violate their sworn oaths by using excessive force are held accountable,” said Principal Deputy Assistant Attorney General Gupta. “I am hopeful that today’s plea brings a measure of closure for the victim.”
“The use of excessive force by law enforcement officers is a serious offense that strikes at the heart of Constitutional protections for all citizens,” said U.S. Attorney Dickinson of the Western District of Missouri. “This former police officer who violated his sworn duty to protect and serve should not reflect upon the vast majority of officers who perform their duties with integrity and professionalism.”
This case was investigated by the FBI’s Kansas City Division and is being prosecuted by Trial Attorney Shan Patel of the Civil Rights Division and First Assistant U.S. Attorney David Ketchmark of the Western District of Missouri.
Former Federal Employee Indicted for Using Stolen Money Order Receipts in Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former federal employee has been indicted by a federal grand jury for using stolen money order receipts in a fraud scheme to avoid paying his medical bills.
Byron G. Gorman, 50, of St. Joseph, Mo., was charged in a six-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Sept. 10, 2015. That indictment was unsealed and made public today upon Gorman’s arrest and initial court appearance.
Gorman was employed as an information technology specialist for the U.S. Department of Agriculture's Office of Inspector General, assigned to the Heart of America Regional Computer Forensics Laboratory in Kansas City, Mo., an FBI-facilitated laboratory where he was being trained to become a computer forensic examiner.
The federal indictment alleges that Gorman used stolen money order receipts – taken by Gorman as he participated in a criminal investigation – as fraudulent evidence in court, both to defend himself against a lawsuit against him by his creditors and in his own lawsuit against his creditors. The indictment also alleges that Gorman stole the identities of several persons by forging their signatures on documents he created to use as evidence in court.
According to the indictment, Gorman was a defendant in a civil collection lawsuit in Buchanan County, Mo., in which a judgment had been entered against him and a garnishment of his wages had been ordered to recover monies owed on medical bills incurred at the Heartland Regional Medical Center in St. Joseph. On Sept. 28, 2012, Gorman’s creditors filed a second civil collection lawsuit against him in Buchanan County to recover monies owed on additional unpaid medical bills.
On May 22, 2012, Gorman participated in the execution of a federal search warrant at the offices of a private business in Kansas City, Kan. Gorman was there to search for computer-related evidence. He allegedly found and took five blank U.S. Postal Service money order receipts belonging to the private business for the purpose of facilitating a scheme to defraud Heartland Regional Medical Center and related entities to whom he owed medical bills for services provided at Heartland Regional Medical Center.
The federal indictment alleges that Gorman used the stolen money order receipts and other fraudulent documents created as evidence in his defense. Gorman allegedly claimed that he had submitted postal money orders to his creditors, but the payments had not posted. As evidence, he allegedly provided the five stolen money order receipts, which were filled out to make it appear that money orders had been made out to Heartland Regional Medical Center, as well as a number of forged letters displaying the names and purported signatures of postal employees.
Gorman also used the stolen money order receipts and other fraudulent documents he created as evidence in a lawsuit he caused to be filed against his creditors, according to the indictment. Gorman allegedly placed the names and forged signatures of the actual persons onto letters purporting to be from the U.S. Postal Service and the U.S. Federal Trade Commission onto two letters and two certified mail receipts as part of his wire fraud scheme.
Gorman is charged with one count of mail fraud, two counts of wire fraud and three counts of aggravated identity theft. The federal indictment also contains a forfeiture allegation, which would require Gorman to forfeit to the government any property derived from the proceeds of the alleged offenses, including $18,000.
As an examiner in training, Gorman did not perform any computer forensic examinations unless under the supervision of a fully certified Heart of America Regional Computer Forensic Laboratory (HARCFL) examiner.
Upon learning of the allegations regarding Gorman, the Heart of America Regional Computer Forensic Laboratory did a complete and thorough review of any cases which Gorman may have assisted in the examination of computer forensic evidence. No inconsistencies, errors or issues were noted with any evidence. The HARCFL is a fully accredited laboratory facility following a strict protocol for the examination of evidence and the training protocol for examiners in training.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the FBI and the U.S. Postal Inspection Service.
Former Business Manager Charged with Theft from Labor UnionRead the Press Release
A former business manager of the Local 657 of the Laborers International Union of North America (LIUNA) was charged with stealing from the organization.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Agent in Charge Steven D. Anderson of the Department of Labor Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations Washington, D.C., Regional Office and District Director Mark Wheeler of the Department of Labor’s Office of Labor Management Standards Washington, D.C., District Office made the announcement.
Anthony Wendel Frederick Sr., 49, of Upper Marlboro, Maryland, the former Business Manager of Local 657 of LIUNA based in Washington, D.C., was charged by criminal complaint with one count of theft from a labor organization. The defendant was arrested today and is scheduled to have his initial appearance at 1:45 p.m. EDT before U.S. Magistrate Judge G. Michael Harvey of the District of Columbia.
LIUNA is a labor organization that represents laborers in the construction industry. LIUNA’s Local 657 represents construction laborers in Washington, D.C. and five adjacent counties. For approximately 10 years, until June 2014, Frederick served as the business manager for Local 657.
The criminal complaint alleges that, from May 2013 to June 2014, Frederick directed more than $1.7 million in Local 657 funds to STS Contracting of Greenbelt, Maryland, without the knowledge or authorization of the Local 657 Executive Board or officials in LIUNA International. Specifically, according to the criminal complaint, a routine audit of the local union by LIUNA in June 2014 revealed that Frederick had paid nearly $1.1 million to STS Contracting for minimal renovations at the Local 657 administrative building. In addition, the complaint alleges that, without authorization, Frederick directed over $580,000 in Local 657 funds to STS Contracting for expediting permits for the construction of a new training center for Local 657, which project was being handled by another construction firm. According to the criminal complaint, the LIUNA auditor also discovered that Frederick grossly overpaid STS Contracting for expediting various permits, including $20,000 to expedite a $143 excavation permit, and over $20,000 to renew existing permits, which could have been accomplished online for approximately $250 apiece.
The criminal complaint further alleges that STS Contracting paid a down payment of $225,000 on a home purchased by Frederick, and directed more than $600,000 to a corporation owned in part by Frederick’s wife. In addition, STS Contracting principals allegedly depleted a company bank account, which contained only stolen Local 657 funds, by withdrawing more than $500,000 in cash and using the remainder for personal items, entertainment, shopping trips, hotel stays and overseas travel.
The charges and allegations contained in a criminal complaint are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and the Department of Labor. The case is being prosecuted by Trial Attorney Vincent Falvo of the Criminal Division’s Organized Crime and Gang Section.
Frederick Criminal Complaint
Florida Man Pleads Guilty in Bank Fraud SchemeRead the Press Release
PITTSBURGH - A Florida resident pleaded guilty in federal court to a charge of conspiracy to commit bank fraud, United States Attorney David J. Hickton announced today.
Mark Anthony Sosso, 43, pleaded guilty to one felony count before United States District Judge Arthur J. Schwab.
According to information presented to the Court, Sosso knowingly and willfully conspired with other individuals to commit an offense against the United States, that is, bank fraud, in connection with a co-conspirator’s purchase of the real property located in Longboat Key, Fla. Sosso, through a company controlled by him - Sosso Homes, Inc. - sold the property on July 27, 2007, to the co-conspirator for the ostensible purchase price of $3,000,000 and fraudulently induced Washington Mutual Bank into making a mortgage loan to the co-conspirator in the amount of $2,377,000 in order to fund the transaction.
It was part of the conspiracy that Sosso and the co-conspirator submitted false and fraudulent loan documents to Washington Mutual Bank. As part of the conspiracy, Sosso and the co-conspirator submitted to Washington Mutual Bank a HUD-1 Settlement Statement that falsely represented that the co-conspirator had paid Sosso Homes a $600,000 cash deposit, well knowing that the co-conspirator had never paid, or intended to pay, the $600,000 cash deposit. It was also part of the conspiracy that Sosso paid $458,350 of the mortgage loan monies to the co-conspirator as kickbacks, without the knowledge or approval of Washington Mutual Bank. It was further a part of the conspiracy that $1,677,598 of the mortgage loan monies were used to pay off Sosso Homes’ mortgage debt to another bank.
Judge Schwab scheduled sentencing for Jan. 14, 2016. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Sosso on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service and the Internal Revenue Service/Criminal Investigation Division conducted the investigation leading to the Information in this case.
Federal Jury Finds New York Man Guilty of Heroin Trafficking OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found WILMER ANTONIO GOMEZ-RODRIGUEZ, 29, a citizen of the Dominican Republic last residing in New York, New York, guilty of heroin trafficking offenses. The trial began on September 8 and the jury returned guilty verdicts on two counts of an indictment yesterday.
According to trial testimony and the evidence disclosed during the trial, this matter stems from an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) and the Norwalk Police Department into suspected cocaine and heroin distribution by Omar Andrade. In September 2014, Andrade agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. Andrade, GOMEZ and Joel A. Estrella-Disla, were arrested on September 30, 2014, after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
The jury found GOMEZ guilty of one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. The jury also found GOMEZ guilty of one count of possession with intent to distribute, and distribution of, 100 grams or more of heroin, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on December 3, 2015.
GOMEZ, who had been released on bond, was remanded at the conclusion of the trial.
In August 2015, Andrade and Estrella each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. They await sentencing.
Andrade, a citizen of Mexico last residing in Norwalk, has been detained since his arrest. Estrella, a citizen of the Dominican Republic last residing in New York, New York, is released on a $500,000 bond.
This case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the September 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Kenneth O’Neal Batten. Sexual Exploitation of a Child, Distribution of Child Pornography, and Possession of Child Pornography. O’Neal Batten, 36, of Claremore, is charged with sexual exploitation of a child for the purpose of producing and distributing child pornography, as well as possessing child pornography. If convicted, the statutory minimum penalty is 15 years and not more than 30 years in prison and a $250,000 fine for sexual exploitation of a child; not less than five years and not more than 20 years in prison and a $250,000 fine for distribution of child pornography; and not more than 20 years in prison and a $250,000 fine for possession of child pornography. United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is the investigating agency.
Llobane Cobos-Carperna. Reentry of Removed Alien. Cobos-Carperna, 27, is charged with having returned to the United States unlawfully after being deported in September 2008 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Joshua Robert Downs. Possession of Firearm and Ammunition After Conviction of a Crime of Domestic Violence. Downs, 36, of Skiatook, is charged with possessing a firearm and ammunition after a prior domestic assault and battery conviction. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation is the investigating agency.
Santos Flores-Alvarado. Reentry of Removed Alien. Flores-Alvarado, 32, is charged with having returned to the United States unlawfully after being deported in October 2012 near Atlanta, Georgia. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Fernando Gonzalez-Esparza. Reentry of Removed Alien. Gonzalez-Esparza, 31, is charged with having returned to the United States unlawfully after being deported in November 2012 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
John Dean Lockett. Failure to Register as a Sex Offender. Lockett, 46, of Tulsa, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. United States Marshals Service is the investigating agency.
Sammie Leo Montgomery. Failure to Register as a Sex Offender. Montgomery, 50, is charged with failing to register as a sex offender as required under the Sex Offender Registration and Notification Act. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. United States Marshals Service is the investigating agency.
Jorge Sanchez-Urquiza. Reentry of Removed Alien. Sanchez-Urquiza, 29, is charged with having returned to the United States unlawfully after being deported in December 2009 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Timothy Jason Sumner. Felon in Possession of a Firearm and Ammunition. Sumner, 31, of Tulsa , is charged with possessing a 9mm caliber revolver and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Albert Sveinjonsson. Abusive Sexual Contact in Indian Country. Sveinjonsson, a non-Indian, 46, of Haskell, is charged with engaging in sexual contact with an Indian woman without her permission. If convicted, the statutory maximum penalty is two years in prison and a $250,000 fine. The Federal Bureau of Investigation is the investigating agency.
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Employee Sent to Prison for Stealing from Charity and Cheating on TaxesRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – September 11, 2015
SAN DIEGO –Tamara Azizov, formerly an accounts payable clerk at the Lawrence Family Jewish Community Center (“JCC”) in La Jolla, was sentenced today by U.S. District Chief Judge Barry T. Moskowitz to 12 months and one day in jail for embezzling over $150,000 from the JCC, and concealing this income on her federal income tax returns.
Azizov served as an accounts payable clerk from June 1989 to May 2014. In this position, she had access to the JCC’s bank accounts, credit card accounts, and bookkeeping records. Azizov abused this access to misappropriate $154,192.74, which she used for a variety of purchases including: Tom Ford sunglasses; $1,820 for sushi at Zip Fusion; Simone Pérèle lingerie; and thousands of dollars’ worth of clothing from Neiman Marcus, Nordstrom, and Anthropologie.
At the same time Azizov was embezzling funds to pay for jewelry and designer clothing, the JCC had to reduce its community programs because Azizov was siphoning from the JCC coffers. Moreover, due in part to the embezzlement, the JCC was forced to cut personnel in order to balance its budget. Azizov continued her theft until leaving the JCC in May of 2014.
Azizov was able to carry out the embezzlement by virtue of her access to the full range of the JCC’s financial records and accounts. On most occasions, Azizov would simply use the JCC’s credit cards to make personal purchases. In order to fool the JCC’s executive staff, auditors, and bookkeepers, Azizov falsely characterized her personal purchases as legitimate JCC expenses.
The JCC was founded in 1945 and promotes the continuity and vibrancy of the Jewish community by offering social, cultural, educational, and recreational programs and services.
The JCC operates, among other things, a preschool, a center for senior citizens, and one of the largest single-site summer day camps in California. Each year, thousands of community members attend the JCC’s San Diego Jewish Film Festival and the San Diego Jewish Book Fair.
United States Attorney Duffy said that charitable organizations such as the JCC add much to the region’s quality of life, and need protection from the unscrupulous.
“This office is committed to ensuring that white collar predators don’t prevent those less fortunate from receiving all the benefits that the generous citizens of San Diego County provide through organizations such as the JCC.”
Chief Judge Moskowitz also ordered Azizov to pay $154,192.74 in restitution to the JCC.
This is the second conviction and sentencing associated with embezzlement from the JCC. On August 28, 2015, District Judge Dana M. Sabraw sentenced former CFO Nancy Johnson to 12 months and one day for a similar embezzlement scheme that she executed for several years while employed at the JCC. Please see U.S. v. Nancy Johnson, 15-CR-1446-DMS.
DEFENDANT: Case Number 15cr1447-BTM
Tamara Azizov Age: 62 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Filing a False Tax Return – Title 26, U.S.C., Section 7206(1)
Maximum penalty: 3 years’ imprisonment and $250,000 fine
Eighth Person Charged for Role in Federal Feeding Program FraudRead the Press Release
LITTLE ROCK— Another feeding program sponsor has been charged for her role in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Maria Carmen Nelson, age 49, has been arrested after the filing of a complaint.
The complaint, filed today, charges Nelson with wire fraud as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Following her arrest, Nelson was arraigned and released on bond by Judge J. Thomas Ray. Nelson is the eighth person charged in an ongoing investigation. She is an employee of a security firm that guards the Federal Building in Little Rock.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The complaint states that Nelson operated as a sponsor for a feeding program through an organization called "Securing Our Future." It alleges that Nelson applied with DHS to participate as a sponsor, and the DHS employee who approved her application also approved the application of Michael R. Lee, who was indicted in July 2015. The complaint states that she falsely represented her average daily attendance of children who were fed. In this way, Nelson stole over $575,000 of federal funds, according to the complaint.
You may report fraudulent activity regarding these feeding programs by contacting [email protected].
The statutory penalty for wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The investigation is ongoing and is conducted by the United States Department of Agriculture – Office of the Inspector General, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
A complaint contains only allegations. Defendants are presumed innocent until proven guilty.
Eagle Butte Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 9, 2015, by U.S. District Judge Roberto A. Lange.
Theodore Provencial, age 47, was sentenced to 68 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Provencial was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on April 14, 2015. He pled guilty to Assault with a Dangerous Weapon on June 23, 2015.
The conviction arose from an April 3, 2015, incident at Bear Creek Community, when Provencial began fighting with the victim, stabbing her repeatedly with a kitchen knife. A member of the household heard the victim screaming for help and attempted to intervene, hitting Provencial with a broom handle and telling him to get out of her house. Provencial then began swinging the knife at her, and then left the residence. The victim, who received more than 17 stab wounds, stopped breathing and was unconscious for a period of time.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Provencial was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for AssaultRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on September 9, 2015, by U.S. District Judge Roberto A. Lange.
Michael Archambault, age 37, was sentenced to 12 months and 1 day in custody, followed by 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Archambault was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on March 10, 2015. He pled guilty to Assault Resulting in Substantial Bodily Injury to an Intimate Partner on June 23, 2015.
The conviction arose from an August 2, 2014, incident at Eagle Butte, when Archambault and his girlfriend got into a verbal argument. Archambault got angry and assaulted the victim with a knife, inflicting a stab wound to her arm.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Camela Theeler prosecuted the case.
Archambault will report to the U.S. Marshals Service on September 16, 2015, to begin serving his sentence.
District Man Sentenced to 19 Years in Prison for Sexually Assaulting Woman Near Northwest Washington ParkRead the Press Release
WASHINGTON - Glen Green, 24, also known as Glenvert Green, of Washington D.C., was sentenced today to 19 years in prison for sexually assaulting a woman who had just finished jogging at a Northwest Washington park, announced Acting U.S. Attorney Vincent H. Cohen, Jr.
Green pled guilty in June 2015, in the Superior Court of the District of Columbia, to a charge of first-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for a 19-year prison sentence. The Honorable Rhonda Reid Winston accepted the plea today and sentenced Green accordingly. Following his prison term, Green will be placed on lifetime supervised release. He also must register as a sex offender for the remainder of his life.
According to the government’s evidence, the attack occurred just before 7 a.m. on April 21, 2015. That morning, the victim was jogging in Meridian Hill Park. When she finished, she began walking back home. She was wearing headphones and did not notice the defendant, who began following her from behind on foot. Green got steadily closer to the victim as she got closer to her home. As the victim turned into an alleyway near 14th and Chapin Streets NW, Green grabbed her from behind and began dragging her behind a dumpster.
The victim struggled to free herself, demanding repeatedly that the defendant let her go. Green, who is much larger than the victim, told her not to make this more difficult than it had to be. Then, as the victim continued to struggle, he punched her in the face. Green dragged the victim behind a dumpster in the alleyway, forced her to remove her pants and underwear, and sexually assaulted her. Afterwards, he demanded money from the victim. She handed over her iPod and the defendant fled the area, warning the victim not to move until he had left.
The victim returned home and called 911. After police responded, she was transported to Washington Hospital Center, where medical care providers documented numerous injuries on her body.
Detectives from the Metropolitan Police Department’s Sexual Assault Unit responded to the scene and immediately commenced an investigation. They canvassed the area and located witnesses who were nearby when the assault occurred and provided a description of the assailant. Moreover, they quickly identified and recovered surveillance video capturing Green fleeing the area. Portions of that video were disseminated to the public through news outlets and other media requesting the public’s assistance in identifying the suspect.
Soon thereafter, the police began receiving calls identifying the defendant as the individual seen fleeing in the surveillance video. Green was located and arrested on the evening of April 22, 2015, one day after the sexual assault occurred.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work performed by detectives from the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the work of the Forensic Services Division of the U.S. Secret Service, which assisted in processing the surveillance video. In addition, he recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan, Paralegal Specialist D’Yvonne Key, Criminal Investigator John Marsh, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he commended the work of Assistant U.S. Attorney Jason Park, who prosecuted the case.
Department of Justice Files Amicus Brief in Pennsylvania Right to Counsel CaseRead the Press Release
The Department of Justice has filed an amicus curiae brief in the Supreme Court of Pennsylvania in Adam Kuren, et al. v. Luzerne County, et al. The class action asserts that the public defense system in Luzerne County, Pennsylvania, is so underfunded and poorly staffed that the attorneys appointed to represent indigent adults accused of committing criminal acts are attorneys in name only. The department’s brief focuses solely on the question of whether indigent defendants can bring a civil claim alleging a constructive denial of counsel under the Sixth Amendment to the United States Constitution. This brief represents the department’s first filing to address constructive denial of counsel in a state’s highest court.
“For too many public defenders, crushing caseloads and scarce resources make it impossible to adequately represent clients who need and deserve assistance in legal matters,” said Attorney General Loretta E. Lynch. “The Constitution of the United States guarantees adequate counsel for indigent defendants, and the Department of Justice is committed to ensuring that right is met.”
“This brief recognizes the importance of the right to counsel as fundamental to a fair criminal justice process,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Civil Rights Division will continue to ensure that this essential right is protected.”
“Public defenders around the country are being asked to do essential, even heroic work, with a fraction of the resources they need,” said Director Lisa Foster of the Office for Access to Justice. “When defenders are unable to do their jobs, their clients are stripped of a critical constitutional right, and our justice system is diminished.”
In Kuren, the plaintiffs allege that their Sixth Amendment right to counsel has been violated by the failure of the county to provide adequate resources to the Luzerne County Office of the Public Defender (OPD). According to the plaintiffs, due to the overwhelming volume of work, OPD lawyers are unable to engage in many of the basic functions of representation, including conferring with clients in a meaningful way prior to critical stages of their legal proceedings, reviewing client files, conducting discovery, engaging in motion practice, conducting factual investigations or devoting the time necessary to prepare for hearings, trials and appeals. The plaintiffs claim that the conditions are systemic and so egregious that although a lawyer may technically be appointed to represent them, they will be constructively denied their right to counsel.
In its amicus brief, the department asserts that, “the Sixth Amendment right to counsel requires more than the mere appointment of a member of the bar.” Additionally, the amicus brief goes on to explain that the right of indigent criminal defendants to an attorney may be violated by the government’s “actual denial of counsel or by a constructive denial of counsel.” A civil action to remedy such violations is viable when traditional markers of representation such as “timely and confidential consultation with clients, appropriate investigation, and meaningful adversarial testing of the prosecution’s case” are systemically absent or compromised and when substantial structural limitations “such as a severe lack of resources, unreasonably high workloads, or critical understaffing of public defender offices” result in such absence or limited representation.
Both the trial court and the Pennsylvania Commonwealth Court ruled that the plaintiffs could not bring a civil claim for constructive denial of counsel. The Pennsylvania Supreme Court will now consider whether the plaintiffs’ claim can proceed.
Defendant Sentenced to 33 Months for Impersonating an Attorney, Defrauding Clients of over $200,000 in Legal FeesRead the Press Release
Earlier today in Brooklyn federal court, Steven H. Dickman was sentenced to 33 months of imprisonment. Dickman stole an attorney’s identity and collected legal fees from more than 50 clients to whom Dickman falsely claimed he was that attorney. The sentencing proceeding was held before U.S. District Judge Allyne Ross. Dickman pleaded guilty to one count of wire fraud in December 2014.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
As set forth in court filings, Dickman was admitted to the New York Bar in 1969 but resigned from the bar in 1987 when he was investigated for attorney misconduct. In 2009, Dickman stole the identity of a victim-attorney and assumed that victim-attorney’s status as a member of the New York Bar. Dickman then represented himself to be the victim-attorney to putative clients in order to obtain legal fees from them. In 2012, Dickman submitted an application to be admitted to practice law in the United States District Court for the Eastern District of New York and falsely swore an oath affirming that his name was that of the victim-attorney, that he was an attorney, and that he was a member in good standing of the New York Bar.
As part of his sentence, Dickman was also ordered to forfeit $20,000. The Court did not impose restitution today, but scheduled a restitution hearing for December 18, 2015.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorney Lan Nguyen is in charge of the prosecution.
The Defendant:
Steven H. Dickman
Age: 70
Brooklyn, NYE.D.N.Y. Docket No. 14-CR-610 (ARR)
Charity Director Admits Using Funds for Personal Use, Filing False Tax ReturnsRead the Press Release
PITTSBURGH - A resident of Beaver County, Pennsylvania, pleaded guilty in federal court to charges of mail fraud and filing a false income tax return, United States Attorney David J. Hickton announced today.
Steven R. Wetzel, 39, of Beaver Falls, Pa., pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Steven R. Wetzel was the Executive Director of the Hero Program. He was responsible for collecting donations and making distributions of funds collected. The Hero Program was a charity operated through the Frontline Initiative, Inc., a Pennsylvania non-profit tax exempt organization, located in Beaver, Pennsylvania. The Hero Program funds were to be used to meet the needs of terminally ill children. Wetzel used the Hero Program grant and donation monies intended for the benefit of terminally ill children and their families for his own personal benefit and personal reasons by, among other things, paying his own Duquesne Light bills, spending approximately $5,000 at restaurants, spending approximately $1,500 for Starbucks Coffee purchases, purchasing flowers for three women and Sewickley Spa gift certificates for two women, spending approximately $3,600 for Pittsburgh Pirates Baseball game tickets, paying for his own treatment at a dentist and an eye doctor, purchasing glasses for himself, and paying for home remodeling projects at his own home. Wetzel attempted to cover up these personal expenditures by claiming that each was made for the benefit of Hero Program families. Approximately $91,000 was spent for his personal benefit, while approximately $10,000 went to the intended recipients of those grant and donation monies. In addition, Wetzel filed four United States Individual Income Tax Returns, Form 1040s for the calendar years 2010 through 2013 reporting less taxable income than was received in that he did not report the monies described above.
Judge Fischer scheduled sentencing for Jan. 14, 2016. The law provides for a maximum total sentence of 23 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Beaver Police Department initiated and worked together with the U.S. Postal Inspection Service and the Internal Revenue Service-Criminal Investigation to conduct the investigation leading to the Information filed in this case.
Centralia Man Sentenced to More Than 20 Years in Federal Prison for Burglarizing Gun DealerRead the Press Release
Dakota R. Moss, 20, of Centralia, Illinois, was sentenced to 248 months in federal prison on September 11, 2015, for burglarizing the Buchheit of Centralia farm and home supply store and stealing thirty nine (39) guns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Moss was also ordered to pay $29,712.75 in restitution, to pay a $400 special assessment, and to serve five years of supervised release after he is released from prison.
Moss was arrested days after the burglary and was indicted by a federal grand jury on December 16, 2014. Moss’ accomplice was not identified because that person is a juvenile. Moss pleaded guilty on April 29, 2015, in US District Court.
On November 29, 2014, the Buchheit of Centralia farm and home supply store was burglarized and thirty nine (39) firearms were stolen, along with at least one thousand rounds of ammunition. The burglary was accomplished using a full size pickup truck, which was stolen from the Centralia, Illinois High School. The suspects used the stolen truck to ram the locked security gate to make entry onto Buchheit’s parking lot, where the suspects then broke out store windows to make entry into the store. The surveillance video established that the initial burglary occurred at approximately 2:40 am. However, the video evidence revealed that the two suspects left the scene and returned to steal additional firearms and ammunition on two occasions - thereby making a total of three separate entries into the FFL between 2:40 am and 4:00 am.
Evidence established that Moss and his juvenile accomplice were armed while inside of Buchheit’s and intended to shoot anyone who interrupted the burglary – including police. Moss and his accomplice stole the firearms in order to sell the guns for profit. It was established during sentencing that Moss and his accomplice discussed selling the firearms while also participating in the ongoing rioting and looting of businesses in the Ferguson, Missouri area in the summer of 2014.
Centralia Police and agents from the ATF identified the suspects soon after the burglary and have recovered 37 of the 39 stolen guns as of this date. Anyone with knowledge of the remaining stolen firearms or the ammunition is encouraged to call law enforcement.
US Attorney Stephen R. Wigginton credited the law enforcement response when he stated, "The ATF, the Centralia police department and Clinton County State’s Attorney John Hudspeth all deserve credit for the cooperation and outstanding investigation that made this sentence possible." US Attorney Wigginton said, "I hope this sentence serve as a warning to others who would consider stealing and trafficking in firearms. We will find you, and you will go to prison. Moss is now scheduled to serve more time in prison than he has been on this earth."
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia Police Department, along with the Clinton County State’s Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Buffalo Woman Sentenced for Tax Fraud SchemeRead 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 Kalah Bishop, 27, of Buffalo, NY, who was convicted of access device fraud, was sentenced to 37 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution in the amount of $416,192 to the Internal Revenue Service and $18,872 to New York State.Assistant U.S. Attorney Maura K. O’Donnell, who handled the case, stated that beginning in 2012, the defendant and her associates filed fraudulent federal and New York State income tax returns for more than 49 individuals. The tax refunds were deposited onto debit cards, which were then used by Bishop and her associates to make purchases and withdraw cash.
The tax refunds received by the defendant and her associates totaled $435,064.
The sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen, and investigators from the New York State Department of Taxation and Finance, Criminal Investigations Division, under the direction of Michael Szrama.
Sentencing is scheduled for January 20, 2016 at 1:00 p.m. before Judge Arcara.Bedford man sentenced for mail fraud, money laundering, and filing a false federal tax returnRead the Press Release
Evansville – Josh J. Minkler, United States Attorney, announced today that Blakely A. Clements, 33, of Bedford, Indiana, was sentenced to 15 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to Mail Fraud, Money Laundering and Filing a False Federal Tax Return. This case was the result of an investigation by the Secret Service, the Internal Revenue Service Criminal Investigation Division, and the Indiana State Police and the Daviess County Indiana Prosecuting Attorney.
“Emergency grants are meant to help people get back on their feet after a natural disaster, not line the pockets of public officials,” said Minkler. “Those who choose to put personal greed ahead of community needs will face the hammer of federal prosecution.”
On September 8, 2015, Clements admitted to the Court that he participated in a scheme to defraud the Daviess County Long Term Recovery Committee (DCLTRC) and to obtain money by means of false and fraudulent pretenses using the United States Mail. While acting as the financial director of the DCLTRC, Clements submitted invoices to Non-profit Processing and Accounting Services to comply with conditions of a grant the Committee received from United Way of Indiana. The purpose of the grant was to provide financial assistance to Daviess County victims in repairing flood damage. Clements submitted invoices that appeared to be for the benefit of flood victims when in fact the expenditures were made to acquire home improvement materials and other items for the personal benefit of Clements in the amount of $89,500.
Clements admitted to money laundering by paying his personal Home Depot Citibank credit card using funds obtained from the DCLTRC and deposited a refund check from the credit card into his personal account for $11,352.21. Finally, Clements also admitted to filing a false federal tax return for the year 2010, because he did not report as income any of the funds derived from the DCLTRC.
“Today’s sentencing of Mr. Clements sends a clear message that defrauding the people of Daviess County comes with a price,” said IRS Special Agent in Charge Steven Boyd. “IRS Criminal Investigation helps ensure that all Americans, including public officials, are held to the same standard. IRS Criminal Investigation will continue to work as a team with the United States Attorney’s Office, our federal and state counterparts to follow the money and stop corruption.”
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Judge Young imposed three years supervised release following Clements release from prison and order restitution in the amount of $114,670.80.
Area Man Pleads Guilty to Cyber Attack of the St. Louis County Police Union WebsiteRead the Press Release
St. Louis, MO – JUSTIN PAYNE pled guilty to destroying the St. Louis County Police Association website through a distributed denial of service attack.
According to court documents, on December 2, 2014, the group "Rebel But Gangster Black Rebels," aka RBG Black Rebels, promoted a cyber-attack against the St. Louis County Police Association (SLCPA) website on Twitter. An investigation by the FBI determined that the RBG Black Rebels’ Twitter account is solely operated and held by the defendant, Justin Payne. His cyber-attack was in conjunction with the group Operation Ferguson, which claimed affiliation with the group Anonymous.
On December 2, 2014, messages were sent out on Twitter by the Defendant. These messages contained a link for a Distributed Denial of Service (DDoS) attack on the SLCPA Website. A distributed denial-of-service attack is an attempt to make a machine or network resource unavailable to its intended users. All networks have a limited amount of connections that they can have at any one time. The program distributed by the defendant exploited this limit by initiating as many connections with SLCPA website as possible to fill up the bandwidth. This attack on the SLPCA website actually shut down the website. On December 3, 2014, the St. Louis Division of the FBI confirmed a DDoS attack on SLCPA.org website and began an investigation. The SLCPA provided FBI Agents with web logs detailing the IP addresses used in the attack. A review of the logs determined the times of the attack coincided with the Twitter messages sent by Justin Payne via his RBG Black Rebels Twitter account.
On January 27, 2014, a review of Payne’s Twitter account revealed messages associated with killing law enforcement officers. Through investigation, FBI agents determined that Justin Payne worked at the V.A. facility located at One Archives Way, St. Louis, Missouri. After Payne was arrested for the DDoS attack, the FBI received a search warrant for Payne’s car. During the search of Payne’s trunk, agents located a glass container containing a flammable liquid mix of gasoline, water and ethanol, which was later determined to be an improvised incendiary device, commonly known as a Molotov cocktail.
Payne, address unknown, pled guilty to one felony count of possession of an unregistered firearm and one count of damage to a protected computer before United States District Judge Henry Autrey. Sentencing has been set for December 7, 2015.
The firearm charge carries a maximum penalty of 10 years in prison and/or a fine of $250,000 and damage to a protected computer carries a maximum penalty of one year in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Federal Bureau of Investigation and the Federal Protective Service. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney’s Office.
Area Government Contractor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – JAMES MATTHEW ALEXANDER, the President of a local defense contractor, pled guilty to a scheme to defraud the United States related to the construction of shipping containers for use with the F/A-18 Super Hornet aircraft.
Matthews Manufacturing, Incorporated (MMI) was a defense contractor that provided equipment to the United States Department of Defense (DoD) and the United States armed services. MMI served as a prime contractor for multiple United States Government contracts. Defendant Alexander was the President of MMI.
In June 2010, the Defense Logistics Agency, a component of DoD, awarded MMI a contract for the construction of fifty-six High Pressure Turbine Module Shipping Containers for use with the F/A-18 Super Hornet aircraft. The contract designated the container a "Critical Application Item." Shock mounts are utilized in the construction of F414 High Pressure Turbine Module Shipping Containers. The DLA contract with MMI specified and required that shock mounts be no older than one year old when installed in the container.
According to court documents, Alexander, as part of a scheme to defraud the government, altered the original white alpha-numeric marking indicating the actual cure date of the shock mounts MMI received from the manufacturer. Original dates were “buffed” off and modified stamps were used to re-stamp the mounts with a cure date to comply with the contract specifications. Alexander and MMI then shipped the containers with the altered shock mounts bearing false and forged cure dates to the government. As a result of the fraud, payments by the government to MMI for delivered F414 High Pressure Turbine Module Shipping Containers totaled $120,536.
Alexander, Chesterfield, MO, pled guilty Thursday afternoon to one felony count of mail fraud before United States District Judge E. Richard Webber. Sentencing has been set for December 10, 2015.
Co-defendant Larry Charles Maxwell, Jr., St. Louis, MO, was indicted on related charges. He is presumed innocent until and unless proven guilty.
This charge carries a maximum penalty of 20 years in prison and/or a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the United States Department of Defense, Defense Criminal Investigative Service and the United States Naval Criminal Investigative Service. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
7th Street Gang Member Pleads Guilty to Rico Conspiracy; Admits Role in Murder of Rival Gang MemberRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Esteban Ramos-Cruz, 27, of Buffalo, pleaded guilty to racketeering conspiracy (RICO) before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2012, Cruz was a member of the Cheko’s Crew/7th Street Gang which was responsible for drug trafficking and violent crime on Buffalo’s West Side. During this time, as a part of the rivalry with the 10th Street Gang, the defendant participated with others in the murder of 10th Street Gang associate Eric Morrow on August 11, 2009. Cruz and co-defendant Jordan Hidalgo both shot at Morrow with Morrow being killed by the .22 caliber rifle discharged by Cruz. The defendant also sold illegal narcotics on Buffalo’s West Side.
The plea is the culmination of an investigation on the part of Special Agents of the FBI, New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for January 13, 2016 at 1:00 p.m. before Judge Arcara.
10 September 2015
Zuni Pueblo Man Sentenced for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Christopher T. Tsalate, 28, was sentenced today in federal court in Albuquerque, N.M., to 14 months in prison followed by three years of supervised release for his domestic assault by a habitual offender conviction.
Tsalate, a member and resident of Zuni Pueblo, N.M., was arrested on Jan. 11, 2015, on an indictment charging him with domestic assault of an intimate partner by a habitual offender based on his two prior domestic violence convictions in the Pueblo of Zuni Tribal Court.
On April 14, 2015, Tsalate pled guilty to the indictment and admitted assaulting the victim, his spouse, on May 7, 2014, in McKinley County, N.M.
Court records reflect that Tsalate previously was convicted on domestic violence charges before the Zuni Tribal Court in May 2010 and Oct. 2012. The victim in this case was also the victim in both of the prior tribal court cases.
This case was investigated by the Zuni Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Novaline Wilson. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Wisconsin Man Sentenced for His Involvement in Tax Refund SchemeRead the Press Release
Jacksonville, Florida – United States Senior District Judge Henry Lee Adams, Jr. has sentenced Chad Heins (41, Nekoosa, Wisconsin) to one year and one day in federal prison for conspiracy to defraud the United States. He was also ordered to pay $287,533.53 in restitution to the Internal Revenue Service. Heins pleaded guilty on March 23, 2015.
According to court documents, Heins spent 13 years and 8 months in prison after being arrested, tried, and convicted of first-degree murder. After his release, he communicated with at least one Florida inmate and reached an agreement to split tax refund proceeds that had been obtained from the filing of fraudulent tax returns. Heins opened bank accounts in his name and fraudulently obtained income tax refunds in the total amount of at least $1,258,178. Of that amount, at least $287,533 was actually deposited into bank accounts that Heins had opened.
The case was investigated by The Internal Revenue Service - Criminal Investigation and the Florida Department of Corrections. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Wilburton Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that BRIAN DWAIN JORDAN, age 40, of Wilburton, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The charges are a result of an investigation by the Hartshorne Police Department, the Latimer County Sheriff’s Department and the Pittsburg County Sheriff’s Department. The defendant was indicted in August, 2015.
The Indictment alleged that on or about June 15, 2015 and continuing to on or about June 16, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of presentence report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Western PennsylvaniaTrio Indicted for Conspiracy to Distribute A Half-Pound of HeroinRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Williamsport returned a two-count indictment charging three residents of Westmoreland County with conspiracy to distribute a half-pound of heroin.
According to United States Attorney Peter Smith, the grand jury charged Brian Keith Robinson, Cesare Biagio Palumbi, and Natawsha Durand with conspiracy to distribute approximately 224 grams (about a half pound) of heroin recovered in a rental vehicle following their arrests on February 26, 2015 by Scott Township Police Department officers on State Route 487 near Interstate 80 in Columbia County. The indictment also charges them with distribution and possession of heroin.
Robinson, age 31, and Durand, age, 20, are residents of New Kensington, Pennsylvania. Palumbi, age 23, is a resident of Irwin, Pennsylvania.
The investigation was conducted by the Federal Bureau of Investigation together with the Scott Township Police Department, South Centre Township Police, the Columbia County Drug Task Force, and the Columbia County District Attorney’s Office. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.
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 sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing 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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Virginia Man Pleads Guilty to Kidnapping Philadelphia Woman from A City StreetRead the Press Release
PHILADELPHIA - Delvin Barnes, 38, of Charles City County, Virginia, pleaded guilty today to kidnapping, announced United States Attorney Zane David Memeger. U.S. District Court Judge J. Curtis Joyner scheduled a sentencing hearing for January 6, 2016. Barnes faces 35 years in prison.
On November 2, 2014, at approximately 9:40 p.m., in the area of 100 W. Coulter Street in Philadelphia, Barnes violently grabbed a 22-year old woman from a sidewalk as she walked home. Barnes dragged the victim down the street and forced her into his car. A video recording capturing the abduction shows the victim struggling with the defendant in her attempt to get away. The victim struck Barnes in the head with a hammer after he forced her into his car. The defendant threatened that if she did not stop fighting, he would kill her.
Barnes drove to Maryland with the victim, bound by her wrists, in the trunk of the car. On November 5, 2015, federal agents arrested Barnes in Jessup, Maryland, and the victim was rescued. She identified Barnes as her abductor.
The case was investigated by the FBI, the Philadelphia Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal’s Service with assistance from the Charles City County Sheriff’s and New Kent County Sheriff’s Offices. It is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Violent South Coast Drug Dealer Sentenced to over 20 Years in PrisonRead the Press Release
BOSTON – A violent South Coast drug dealer was sentenced yesterday in U.S. District Court in Boston for the robbery of two large-scale oxycodone dealers and related narcotics crimes.
“The communities of the South Shore can rest assured knowing that this violent, high-level narcotics dealer will remain behind bars for an extended period,” said United States Attorney Carmen M. Ortiz. “This case reflects our commitment to investigations and prosecutions of drug traffickers who flood our state with opiates and use violence to further their operations.”
“DEA is committed to investigating and dismantling violent Drug Trafficking Organizations (DTO) like this one headed by Monteiro,” said Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration, New England Field Division. “The Monteiro DTO has been in operation for many years, poisoning the streets of the South Coast and Cape Cod with heroin. These are not low level incidents related to the throws of addiction. These were calculated, criminal acts committed by violent drug offenders. This investigation would not have been a success without the continued commitment of our state and local law enforcement partners.”
Francisco Monteiro, a/k/a “Cisco,” 34, of Bourne, Mass., was sentenced today by U.S. District Court Judge Denise J. Casper to 250 months in prison. Following a two-week jury trial, Monteiro was convicted in April 2014 of conspiracy to distribute 100 grams or more of heroin, distribution of heroin, possession with intent to distribute heroin, and interference with commerce by threat or violence (a drug robbery).
Monteiro, a long-time South Coast drug trafficker, acquired drugs to sell through violent drug robberies. At trial, federal agents testified how, in February 2013, Monteiro was recorded agreeing to provide large quantities of heroin to a cooperating witness and then recorded Monteiro as he and two associates sold nearly 100 grams of heroin to a cooperating witness. When agents attempted to set up a second heroin purchase, Monteiro robbed the cooperating witness of the “buy money.” Monteiro was arrested three days later, at which time agents seized heroin, much of the stolen money, other drug trafficking materials, handcuffs, and brass knuckles from his home.
The jury also heard testimony concerning a 2011 robbery committed by Monteiro and several other men. In May 2011, Monteiro was confined to his home and monitored by a GPS device because of a pending state prosecution. Nevertheless, Monteiro and others lured Stanley Gonsalves and Joshua Gonsalves, two large-scale Cape Cod OxyContin dealers, to a meeting where the Gonsalves brothers believed they were purchasing 15,000 OxyContin pills. Instead, Monteiro and his crew robbed the Gonsalves brothers of the $225,000 they brought to purchase the pills.
Judge Casper previously sentenced Monteiro’s heroin trafficking co-defendants. In May 2015, Manuel Lopes was sentenced to 188 months in prison. In April 2015, Judge Casper sentenced Henry Parsons, the middle man in the sale, to 66 months in prison.
After a separate federal investigation, Stanley and Joshua Gonsalves were convicted of conspiracy to distribute oxycodone and money laundering. Joshua Gonsalves was sentenced to 20 years in prison in January 2015. In June 2015, Stanley Gonsalves was sentenced to 25 years in prison.
United States Attorney Carmen M. Ortiz; Drug Enforcement Administration Special Agent in Charge Michael J. Ferguson; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Attleboro Police Chief Kyle Heagney; and Taunton Police Chief Edward James Walsh, made the announcement. Significant assistance was also provided by the Barnstable and Bristol County Sheriffs’ Offices and the Barnstable, Bourne, Fairhaven, Fall River, New Bedford, and Wareham Police Departments. The case was prosecuted by Assistant U.S. Attorneys Christopher Pohl and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
Vice President Biden and Attorney General Lynch Announce $41 Million Grant Initiative to Address National Backlog of Untested Sexual Assault KitsRead the Press Release
Combined Total of $79 Million through Partnership with New York County DA’s Office
Vice President Joe Biden and Attorney General Loretta E. Lynch today announced $41 million in grant awards to 20 jurisdictions to eliminate or reduce the number of untested sexual assault kits across the country. Today’s announcement is being announced as part of an unprecedented partnership with the New York County District Attorney’s Office (DANY) – whose own grant program is contributing $38 million to the cause for a total of $79 million to eliminate the backlog reaching 43 jurisdictions in 27 states across the country.
“Rape kits are an essential tool in modern crime fighting — not only for the victim, but, for the entire community. Studies show we solve up to 50 percent of previously unsolved rapes when these kits are tested. When we solve these cases, we get rapists off the streets. For most survivors, seeing their rapists brought to justice, and knowing that they will not return, brings peace of mind and a sense of closure. The grants we’re announcing today to reduce the national rape kit backlog will bring that sense of closure and safety to victims while improving community safety,” Vice President Biden said.
“The groundbreaking initiative we are announcing today is part of the Justice Department’s longstanding efforts to support survivors of sexual violence and to bring abusers to justice,” said Attorney General Loretta Lynch. "For anyone who has felt isolated and afraid, for anyone that has lost faith or lost hope as a result of a sexual crime, this is our pledge to you: we will not forget you. We will not abandon you."
The National Sexual Assault Kit Initiative, a competitive grant program administered by the Justice Department’s Bureau of Justice Assistance (BJA), supports the comprehensive reform of jurisdictions’ approaches to evidence found in sexual assault kits that have never been submitted to a crime laboratory for testing. BJA created the initiative in consultation with the National Institute of Justice (NIJ), Office for Victims of Crime, (OVC), and Office on Violence Against Women (OVW). The goals of the initiative are to create a coordinated community response that ensures just resolution to these cases whenever possible through a victim-centered approach, as well as to build jurisdictions’ capacity to prevent conditions that lead to high numbers of untested kits. The funding awarded through DANY’s program will pay directly for testing kits, and the combined effort between BJA and DANY is projected to achieve testing of approximately 70,000 sexual assault kits. BJA and DANY partnered to reach as many jurisdictions as possible and also to identify jurisdictions where funding could be combined to adequately address kit backlogs.
The initiative is part of the Justice Department’s larger ongoing effort to comprehensively address the problem of sexual assault and to support victims. For example, NIJ maintains a webpage on Sexual Assault Investigations, Sexual Assault Kits: Using Science to Find Solutions, which provides information ranging from improving forensic sexual assault examinations to research findings on untested evidence in sexual assault cases. OVC provides a Sexual Assault Response Team Toolkit, which has over 1.4 million views to date and includes a checklist of recommendations for victim-centered policies and practices in developing a sexual assault response. OVW updated the National Protocol for Sexual Assault Medical Forensic Examinations and released a companion document on Recommendations for Administrators of Prisons, Jails, and Community Confinement Facilities for Adapting the U.S. Department of Justice's National Protocol for Sexual Assault Medical Forensic Examinations, Adults/Adolescents.
Since 2008, the National Institute of Justice (NIJ) has provided more than $825 million for DNA analysis in crime laboratories and for activities such as research dedicated to strengthening the accuracy and reliability of forensic science.
A complete listing of today’s federal award recipients can be found at www.bja.gov/SAKI
A complete listing of the Manhattan District Attorney’s Initiative awards can be found here.
Valiant Bank AG Reaches Resolution under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Valiant Bank AG has reached a resolution under the department’s Swiss Bank Program.
“Offshore enforcement remains a top priority of the department, and banks seeking to avoid prosecution pursuant to the terms of the Swiss Bank Program continue to accept responsibility, provide a detailed account of the ways in which they have assisted U.S. individuals in willfully evading their U.S. tax obligations and fully cooperate with our ongoing investigations that are stretching around the globe,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Those engaged in this criminal conduct who choose not to come forward, or come forward but offer only limited cooperation, picking and choosing the facts disclosed and attempting to minimize culpability, will quickly learn that the department is committed to aggressively investigating and prosecuting these offenses, and holding both individuals and entities accountable.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Valiant agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
Valiant traces its origins to 1824 and is headquartered in Bern, the capital of Switzerland. Today, Valiant is the successor of 40 banks.
Valiant offered hold mail services and numbered accounts to its U.S. clients, including some U.S. clients who had not provided Valiant with an Internal Revenue Service (IRS) Form W-9. Valiant also accepted funds from 19 UBS accountholders who exited UBS. Eleven of these 19 U.S. persons provided a signed Form W-9. The remaining eight U.S. persons who did not were later forced to close their Valiant accounts.
For 26 accountholders who refused to sign a Form W-9, Valiant cashed out or converted into gold hundreds of thousands (and even millions) of dollars in account balances. In late November 2011, one accountholder withdrew more than one million Swiss francs in various currencies and 114,000 Swiss francs in gold coins, gold bars and precious metal. Another accountholder withdrew $2 million in cash and wired 400,000 Swiss francs to a U.S. bank. In both instances, the accountholders refused to sign a Form W-9. Other accountholders withdrew only amounts under $10,000 either by U.S. dollar cash withdrawals or by check or wire transfer to the United States, or transferred large sums to non-U.S. institutions. For example, one accountholder transferred over 435,000 euros to France and $350,000 to Luxembourg. Two other accountholders each transferred 75,000 Swiss francs to Dubai and closed their accounts with cash withdrawals of over 300,000 Swiss francs.
In 2009, an accountholder refused to sign a Form W-9 and requested that Valiant ignore the accountholder’s U.S. status. The accountholder’s non-U.S. spouse later opened a separate account at Valiant, and the accountholder transferred more than $1 million into that account. According to an “Agreement of Donation” between the accountholder and the accountholder’s non-U.S. spouse, the purpose of the transfer was “to make a donation” and “without any consideration.” The agreement provided that the donation was “irrevocable.” The non-U.S. spouse then transferred the funds to UBS and instructed Valiant to close the account.
Some U.S.-related accounts at Valiant were held in the name of non-U.S. entities with one or more U.S. beneficial owners. In one case, a British Virgin Islands entity opened an account at Valiant through a third-party Swiss entity assigned to manage the account. The entity holding the account designated four U.S. persons as beneficial owners, but signed a Valiant form declaring that the account was for the benefit of non-U.S. persons.
Since Aug. 1, 2008, Valiant had 330 U.S.-related accounts, out of a total of 600,000 accounts. The maximum aggregate dollar value of the U.S.-related accounts was $147.4 million. Valiant will pay a penalty of $3.304 million.
In accordance with the terms of the Swiss Bank Program, Valiant mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at Valiant who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Valiant must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s resolution with Valiant Bank AG marks another significant milestone in DOJ’s Swiss Bank Program,” said Acting Deputy Commissioner David Horton of the IRS Large Business & International Division. “These settlements ensure that U.S. taxpayers report their foreign accounts and pay their taxes on the income earned on those accounts. They also provide additional information that supports our efforts to fight offshore tax evasion and those who may be aiding this unlawful behavior.”
“Today is another example of the success of the Swiss Bank Program and our partnership with the Department of Justice,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “We are proud of our joint efforts and the resulting success of the program to date. Each of these agreements is a recognition of that collaboration leading to increased international tax compliance. With each new partnership, we gain a wealth of information and assistance to put an end to the abusive practice of illegally concealing offshore accounts.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Brian D. Bailey, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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United States Department of Justice Announces Grants for the Eastern District of Michgian to Address Backlog of Untested Sexual Assault KitsRead the Press Release
Michigan agencies will receive more than $5 million in federal grants to address the backlog of untested sexual assault kits and related issues, U.S. Attorney Barbara L. McQuade announced today. The Michigan grants were part of a $41 million grant package awarded by the U.S. Department of Justice that was announced by Vice President Biden and Attorney General Loretta Lynch today. The Michigan agencies receiving grants are the Wayne County Prosecutor’s Office ($1,999,109), Michigan State Police ($2,000,000), the Flint Police Department ($1,313,409) and the Michigan Department of Health and Human Services ($419,000). "Today's grants from the U.S. Department of Justice are a direct result of the hard work of Kym Worthy and others to refuse to accept that sexual assault victims would be forgotten while evidence sat on a shelf collecting dust," U.S. Attorney McQuade said. "These grants will help achieve justice and healing for countless victims of sexual assault in Michigan, and will help identify perpetrators before they can harm more victims." Wayne County Prosecutor Kym Worthy stated, "We are beyond excited that we received this grant today. We have been working so hard on this issue for years and these funds will allow us to more swiftly deal with our almost 2500 CODIS hits and 487 identified serial rapists. We will immediately step up our investigative and prosecutorial efforts. This is a great day for sexual assault victims in Detroit and Wayne County." “The Michigan State Police applied for this grant on behalf of a team that includes the MSP, Michigan Domestic and Sexual Violence Prevention and Treatment Board and Prosecuting Attorney’s Association of Michigan. These funds will allow the team to conduct a statewide inventory of unsubmitted sexual assault evidence kits in law enforcement custody, provide training to law enforcement and prosecutors, and assist with victim services in jurisdictions with a high volume of unsubmitted sexual assault evidence kits. These monies will also be used to fund the enhancement of a sexual assault evidence kit tracking system for victims and the outsourcing of DNA analysis of unsubmitted sexual assault evidence kits found during the inventory process,” stated Col. Kriste Kibbey Etue, director of the Michigan State Police. “Receiving this grant award is further proof and recognition of several years of hard work by a collaborative team here in Michigan to give a voice to survivors of sexual assault.” “The award of this grant is terrific news for the City of Flint and will be a tremendous benefit to the victims in our community,” said Flint Police Chief James W. Tolbert. “The processing of backlogged sexual assault kits has been a top priority for the FPD since my time with the department began almost two years ago. We are extremely thankful of the U.S. Department of Justice for this assistance and look forward to working with our partners in the Michigan State Police, the Genesee County Prosecutor’s Office and our victim advocacy groups as we work to improve the service received by Flint’s victims of sexual assault.” The National Sexual Assault Kit Initiative, a competitive grant program administered by the Justice Department’s Bureau of Justice Assistance (BJA), supports the comprehensive reform of jurisdictions’ approaches to evidence found in sexual assault kits that have never been submitted to a crime laboratory for testing. BJA created the initiative in consultation with the National Institute of Justice (NIJ), Office for Victims of Crime, (OVC), and Office on Violence Against Women (OVW). The goals of the initiative are to create a coordinated community response that ensures just resolution to these cases whenever possible through a victim-centered approach, as well as to build jurisdictions’ capacity to prevent conditions that lead to high numbers of untested kits. The initiative is part of the Justice Department’s larger ongoing effort to comprehensively address the problem of sexual assault and to support victims. For example, NIJ maintains a webpage on Sexual Assault Investigations, Sexual Assault Kits: Using Science to Find Solutions, which provides information ranging from improving forensic sexual assault examinations to research findings on untested evidence in sexual assault cases. OVC provides a Sexual Assault Response Team Toolkit, which has over 1.4 million views to date and includes a checklist of recommendations for victim-centered policies and practices in developing a sexual assault response. OVW updated the National Protocol for Sexual Assault Medical Forensic Examinations and released a companion document on Recommendations for Administrators of Prisons, Jails, and Community Confinement Facilities for Adapting the U.S. Department of Justice's National Protocol for Sexual Assault Medical Forensic Examinations, Adults/Adolescents. A complete listing of today’s federal award recipients can be found at www.bja.gov/SAKIUS Attorneys Goodwin and Ihlenfeld announce almost $3 million in grants to State of WV to address backlog of untested sexual assault kitsRead the Press Release
Part of $79 Million Grant Initiative to Address National Backlog Announced Today by Vice President Biden, Attorney General Lynch and N.Y. County District Attorney
Charleston, WV – United States Attorneys Booth Goodwin (Southern District of West Virginia) and William J. Ihlenfeld, II (Northern District of West Virginia) announced today almost $3 million in grants to the State of West Virginia designed to reduce the backlog of untested sexual assault kits in West Virginia. The State of West Virginia grants include a $1,170,800 grant to the West Virginia Division of Justice and Community Services and a $1,763,281 grant to the West Virginia State Police Forensic Laboratory. The grants are part of $79 million in grant awards to 43 jurisdictions in 27 states to eliminate or reduce the number of untested sexual assault kits across the country. The grant initiative was announced earlier today in New York by Vice President Joe Biden, Attorney General Loretta E. Lynch and New York County District Attorney Cyrus Vance, Jr.
Below is the Department of Justice Press Release regarding the national announcement and attached are documents reflecting the State of West Virginia awards.
Vice President Biden and Attorney General Lynch announce $41 million grant to address national backlog of untested sexual assault kitsCombined Total of $79 Million through Partnership with New York County DA’s Office
NEW YORK, NY – Vice President Joe Biden and Attorney General Loretta E. Lynch today announced $41 million in grant awards to 20 jurisdictions to eliminate or reduce the number of untested sexual assault kits across the country. Today’s announcement is being announced as part of an unprecedented partnership with the New York County District Attorney’s Office (DANY) – whose own grant program is contributing $38 million to the cause for a total of $79 million to eliminate the backlog reaching 43 jurisdictions in 27 states across the country.
“Rape kits are an essential tool in modern crime fighting — not only for the victim, but, for the entire community. Studies show we solve up to 50 percent of previously unsolved rapes when these kits are tested. When we solve these cases, we get rapists off the streets. For most survivors, seeing their rapists brought to justice, and knowing that they will not return, brings peace of mind and a sense of closure. The grants we’re announcing today to reduce the national rape kit backlog will bring that sense of closure and safety to victims while improving community safety,” Vice President Biden said.
“The groundbreaking initiative we are announcing today is part of the Justice Department’s longstanding efforts to support survivors of sexual violence and to bring abusers to justice,” said Attorney General Loretta Lynch. “For anyone who has felt isolated and afraid, left out and left behind as a result of a sexual crime, our message is clear: we will not forget you. We will not abandon you. You are not alone.”
The National Sexual Assault Kit Initiative, a competitive grant program administered by the Justice Department’s Bureau of Justice Assistance (BJA), supports the comprehensive reform of jurisdictions’ approaches to evidence found in sexual assault kits that have never been submitted to a crime laboratory for testing. BJA created the initiative in consultation with the National Institute of Justice (NIJ), Office for Victims of Crime, (OVC), and Office on Violence Against Women (OVW). The goals of the initiative are to create a coordinated community response that ensures just resolution to these cases whenever possible through a victim-centered approach, as well as to build jurisdictions’ capacity to prevent conditions that lead to high numbers of untested kits. The funding awarded through DANY’s program will pay directly for testing kits, and the combined effort between BJA and DANY is projected to achieve testing of approximately 70,000 sexual assault kits. BJA and DANY partnered to reach as many jurisdictions as possible and also to identify jurisdictions where funding could be combined to adequately address kit backlogs.
The initiative is part of the Justice Department’s larger ongoing effort to comprehensively address the problem of sexual assault and to support victims. For example, NIJ maintains a webpage on Sexual Assault Investigations, Sexual Assault Kits: Using Science to Find Solutions, which provides information ranging from improving forensic sexual assault examinations to research findings on untested evidence in sexual assault cases. OVC provides a Sexual Assault Response Team Toolkit, which has over 1.4 million views to date and includes a checklist of recommendations for victim-centered policies and practices in developing a sexual assault response. OVW updated the National Protocol for Sexual Assault Medical Forensic Examinations and released a companion document on Recommendations for Administrators of Prisons, Jails, and Community Confinement Facilities for Adapting the U.S. Department of Justice's National Protocol for Sexual Assault Medical Forensic Examinations, Adults/Adolescents.
Since 2008, the National Institute of Justice (NIJ) has provided more than $825 million for DNA analysis in crime laboratories and for activities such as research dedicated to strengthening the accuracy and reliability of forensic science.
A complete listing of today’s federal award recipients can be found at www.bja.gov/SAKI
A complete listing of the Manhattan District Attorney’s Initiative awards can be found here.
Manhattan DA Grant Recipients (96.24 KB)
OJP to WVDJCS (67.66 KB)
Two from Northeast Ohio indicted on firearms chargesRead the Press Release
Two men from Northeast Ohio were indicted for illegally having firearms, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Indicted are Mustafa B. Ayad, 28, of North Olmsted, and Ameen Shoman, 26, of Olmsted Falls. Both were indicted on one count of being a felon in possession of firearms and ammunition.
“We are committed to keeping firearms out of the hands of those who are forbidden by law from having them,” Dettelbach said.
“These convicted felons illegally possessed firearms and must be held accountable,” Anthony said.
Ayad possessed a Ruger .357-caliber revolver and ammunition on March 23, 2015, despite a 2012 conviction for aggravated assault, according to the indictment.
Shoman possessed a Smith & Wesson 9mm pistol, a Springfield Armory 9 mm pistol and ammunition on July 21, 2015, despite 2010 conviction for attempted felonious assault, according to the indictment.
These cases are being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
An indictment 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.
Two Indictments for Crimes Related to Sex Trafficking of Minors in Sacramento and Solano CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury in Sacramento brought two indictments today against three defendants, charging them for their involvement in sex trafficking of minors, United States Attorney Benjamin B. Wagner announced.
The grand jury charged Jeremy Ray Warren, 22, of Vallejo, and Alyssa Tegan Brulez, 22, of Vacaville, with sex trafficking of children or by force, threats of force or coercion. A separate indictment charged Jarrail Lamont Smith, 23, of Cleveland, Ohio, with transportation of minors with intent to engage in prostitution.
According to court documents in the first case, between February 1, 2012, and April 18, 2013, Warren trafficked two minor victims, knowing that means of force, threats of force, and coercion would be used to cause the minors to engage in prostitution. And between April 23 and April 25, 2013, Warren and Brulez conspired to traffic a third minor victim, and to benefit financially from commercial sex acts by the third minor victim. Brulez recruited and enticed the third minor victim, knowing that force and threats of force would be used to cause the third minor to engage in prostitution.
This case is the product of an investigation by the Federal Bureau of Investigation the California Highway Patrol, the Vacaville Police Department and the Las Vegas Metropolitan Police Department. Assistant United States Attorneys Michael M. Beckwith and Michele M. Beckwith are prosecuting the case. (Docket # 2:15-cr-189 TLN)
According to the second indictment, between August 3, 2015 and August 25, 2015, Smith transported two minor girls from Cleveland to Northern California with the intent that they engage in prostitution. Smith was arrested after the two minors were discovered in a hotel room in Sacramento. One of the victims had two black eyes when she was recovered.
This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Sacramento Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case. (Docket # 2:15-cr-188 TLN)
If convicted, Warren and Brulez face a maximum statutory penalty of life in prison and a $250,000 fine. If convicted, Smith faces a minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Two Hugo Individuals Plead Guilty to Methamphetamine Distribution and Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL DANGELO JOHNSON, age 27, and LACEY SHARELL FREEMAN, age 27, both of Hugo, Oklahoma, pled guilty in federal court.
JOHNSON pled to one count of POSSESSION OF FIREARM IN FURTHERANCE OF DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years imprisonment, up to a $250,000.00 fine or both.
FREEMAN pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, up to $1,000,000.00 fine or both.
The charges are a result of an investigation by the Choctaw County Sheriff’s Department and the Federal Bureau of Investigation. The defendants were indicted in August, 2015.
The Indictment alleged that beginning on or about June 30, 2015, in the Eastern District of Oklahoma, LACEY SHARELL FREEMAN, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
It is also alleged that on or about June 30, 2015, within the Eastern District of Oklahoma, MICHAEL DANGELO JOHNSON, did knowingly possess a firearm in furtherance of a drug trafficking crime.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of presentence reports. The defendants will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
Two Foreign Nationals Indicted on Federal Fraud Charges for Swindling Senior Citizens in $10 Million Telemarketing ScamRead the Press Release
CHICAGO — Two foreign nationals have been indicted on federal fraud charges for running a $10 million telemarketing scam that targeted elderly investors in the United States.
JONATHAN PAPA and METHSIRI “LAL” PALLIYAGURU sold phony investments in certificates of deposit and real estate to nearly 200 investors, primarily American senior citizens, according to an eight-count indictment returned Wednesday afternoon in U.S. District Court in Chicago. The unsuspecting investors had been identified through online research of American retirement communities, and then contacted by call centers operated by Papa and Palliyaguru in the Philippines, according to the indictment. In some of the calls and promotional materials, Papa and Palliyaguru knowingly misrepresented that Warren Buffett and Berkshire Hathaway were involved with the purported real estate investments, according to the indictment.
From August 2008 to August 2013, the investors paid approximately $10 million to a series of companies operated by Papa and Palliyaguru, the indictment states. The defendants sent fraudulent account statements to investors that falsely stated the investments were increasing in value, when, in fact, their money had never been invested into any securities, according to the indictment.
Papa, 43, and Palliyaguru, 57, were each charged with eight counts of mail fraud that victimized ten or more persons over the age of 55. Each count carries a maximum sentence of 30 years in prison.
Both defendants are considered fugitives. Papa is believed to be residing in the Philippines, while Palliyaguru, formerly of the Philippines, is now believed to be in Canada. U.S. authorities will seek the arrests and extradition of both defendants. An arraignment date has not been scheduled.
A third defendant, AUSTIN ETCHES, previously pleaded guilty to mail fraud and cooperated with the investigation against Papa and Palliyaguru. Etches, of Toronto, Canada, was sentenced last year to 84 months in prison.
According to the indictment, the defendants managed various companies, including one called Bradley Cooper Financial Services, which purported to be in the business of offering and selling investments. They set up “virtual offices” in or near major American cities, including one at 500 N. Michigan Ave. in Chicago, to make it appear that the companies were legitimately operating inside the United States, the indictment states. The defendants also used voice-over-Internet-protocol technology to make it appear that calls from the Philippines had originated from telephone numbers in the U.S., the indictment charges.
In reality, employees of the companies were not physically present in the virtual offices, but instead worked for Papa and Palliyaguru in the Manila area of the Philippines, according to the indictment. Once the duped investors deposited funds into U.S. bank accounts controlled by Papa and Palliyaguru, the money was transferred overseas to accounts in China, Hong Kong and the Philippines, the indictment states.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Antonio Gómez, Inspector in Charge of the U.S. Postal Inspection Service in Chicago.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant United States Attorney Rachel Cannon.
Indictment
Two Contractors and One Former Civilian Employee Sentenced in Bribery Scheme at Georgia Military BaseRead the Press Release
The Defendants Received 22 Years, 10 Years and Five Years in Prison Respectively
A former civilian employee and a former contractor of the Marine Corps Logistics Base (MCLB) in Albany, Georgia, as well as one outside contractor were sentenced today to prison terms for bribery and fraud arising from their handling of military trucking contracts and theft of surplus military equipment.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Christopher Whitman, 48, of Sylvester, Georgia, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was sentenced to 22 years in prison for his conviction of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property. Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was sentenced to 10 years in prison for his conviction of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice. Bradford Newell, 43, of Sylvester, a former contractor at the MCLB-Albany, was sentenced to five years in prison for his conviction of 13 counts of honest services wire fraud, one count of bribery, and one count of theft of government property. All three were found guilty by a jury in the Middle District of Georgia on March 3, 2015, following a five-week trial.
In addition to imposing the prison terms, the court ordered each defendant to forfeit assets reflecting losses to the government attributable to the bribery and fraud schemes. Whitman was ordered to forfeit $18,860,313.75; McCarty was ordered to forfeit $15,410,151.55; and Newell was ordered to forfeit $513,600. Whitman was specifically ordered to surrender assets derived from the schemes, including more than 100 parcels of real property, several boats and vehicles, and rental income estimated to be worth more than $14 million.
According to the evidence presented at trial, between 2008 and 2012, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including McCarty, to obtain commercial trucking contracts from the base. The evidence showed that contracts included unnecessary costly provisions, such as expedited service, expensive trailers and exclusive use (i.e., a requirement that freight be shipped separately from other equipment). Evidence presented at trial and in a post-trial forfeiture hearing established that Whitman’s company grossed more than $37 million, and resulted in government losses and an improper benefit to Whitman of more than $20 million.
The evidence further demonstrated that Whitman paid nearly $200,000 in bribes to Newell and the former inventory control manager of the Distribution Management Center at MCLB-Albany, both of whom used their official positions to help Whitman steal from the base more than $1 million in surplus military equipment, including bulldozers, cranes and front-end loaders. According to the trial evidence, in exchange for the bribe payments, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company. The evidence showed that, after having the equipment refurbished, Whitman sold it to private purchasers.
Five other individuals have pleaded guilty to their roles in the corruption and fraud schemes. In October 2013, Kelli Durham, the former manager of Whitman’s company, pleaded guilty to conspiracy to commit wire fraud, admitting to intentionally overbilling the United States for services the company did not perform, resulting in losses ranging from $7 million to $20 million. In May 2013, Mitchell Potts and Jeffrey Philpot pleaded guilty to bribery for collectively accepting more than $700,000 in bribes from Whitman. In February 2013, Shelby Janes pleaded guilty to bribery for receiving nearly $100,000 in bribes from Whitman. These defendants have not yet been sentenced. In February 2014, C.W. Smith, a Whitman associate who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County, Georgia, District Attorney’s Office; Defense Criminal Investigative Service; DLA Office of the Inspector General; and the Department of Labor Office of the Inspector General. The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The forfeiture is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the U.S. Attorney’s Office of the Middle District of Georgia.
Tutoring Services Corporation and 31 Individuals Indicted and Arrested for Defrauding the Department of EducationRead the Press Release
SAN JUAN, P.R. – On September 9, 2015, a Federal grand jury returned a seventy-four count indictment charging Rocket Learning, LLC and 31 individuals with conspiracy to commit mail fraud, mail fraud, theft of government money and property, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Department of Education- Office of Inspector General, the FBI and ICE-HSI are in charge of the investigation. The indictment was unsealed earlier today.
The indictment alleges twenty six-counts of mail fraud, a violation of Title 18, United States Code, Section 1341, related to payments caused to be made via the U.S. Mail to Rocket Learning, Inc., for twenty six fraudulent invoices submitted from 2011 - 2013 to the Puerto Rico Department of Education; one count of theft of public money, a violation of Title 18, United States Code, Section 641, related to the approximately $954,297.00 in stolen Title I Federal Funds; and forty-five counts of aggravated identity theft, a violation of Title 18, United States Code, Section 1028A(a)(1), related to the use of means of identification of another person by using the name and signature of real students, in relation to the theft of public money charged in the indictment.
“Individuals and businesses who choose to illegally enrich themselves at the expense of our students and the U.S. taxpayer, instead of providing the educational services invoiced, will be aggressively investigated and prosecuted by the Department of Justice,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “These arrests demonstrate the combined federal commitment to combating fraud, waste and abuse. The investigation continues”.
“Supplemental Education Services program funds provide critical resources for deserving students who seek to improve their academic performance. Today’s actions allege that these 31 individuals and the corporation they worked for, billed and retained SES payments for students who did not receive the tutoring services. That is unacceptable,” said Yessyka Santana, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “Tracking down those who would cheat this important program is a priority of our office.”
The defendants are:
- Rocket Learning, LLC
- Brenda Pérez García – SES Director
- Juan Nieves Rivera Rivera –Director of San Juan Region
- José Acevedo Rivera –Director of Caguas Region
- Lynnette Asencio Plaza –Director of Ponce Region
- Héctor Baez Villanueva –Director of Arecibo Region
- Kay Pagán Rivera – Program Manager in Caguas Region
- Karenie Laborde Muñiz – Program Manager in Caguas Region
- Annerys Rodríguez Aponte – Program Manager in Caguas Region
- Lis García Medina – Program Manager in Caguas Region
- Edjeledeira Meléndez-Rivera – Jr. Program Manager in Caguas Region
- Jonathan Morales Febus – Operation Coordinator in Caguas Region
- Jeannette Ramírez-Zapata – Program Manager in Ponce Region
- Francisco Sánchez Zayas – Program Manager in Ponce Region
- Yamaris Torres Ortiz – Program Manager in Ponce Region
- Sayra López Torres – Program Manager in Ponce Region
- Anita Ortiz Rodríguez – Program Manager in Ponce Region
- Sheila Pagán Carrasquillo – Operation Coordinator in Ponce Region
- Elba Yanira Jiménez Pérez – Program Manager in Arecibo Region
- Gretchen Román Soto – Program Manager in Arecibo Region
- Milliam Centeno Soto – Program Manager in Arecibo Region
- Emmanuel Cruz Martínez – Program Manager in Arecibo Region
- Katia Tapia Torres – Program Manager in Arecibo Region
- Noraima Mercado Vázquez – Program Manager in Arecibo Region
- Nayra Alicea Delgado – Program Manager in San Juan Region
- Eileen Gutiérrez Stone – Program Manager in San Juan Region
- Glorymar Rodríguez Casiano – Program Manager in San Juan Region
- Minerva Mendoza Acevedo – Program Manager in San Juan Region
- Suhayl Méndez Reyes – Program Manager in San Juan Region
- Javier Reyes López – Program Manager in San Juan Region
- Luisa García Arriaga – Program Manager in San Juan Region
- José Sánchez Bauzá – Program Manager in San Juan Region
The case is being prosecuted by Assistant United States Attorney Seth A. Erbe and the Chief of the Financial Fraud and Corruption Unit, José Capó-Iriarte. If found guilty, defendants are facing a maximum penalty of 20 years in prison and two additional years for each aggravated identity theft count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Three Members of International Organization of Money Launderers for the Largest Drug Cartels ArrestedRead the Press Release
Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, James Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Field Division (DEA), and Thomas E. Bishop, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Division (IRS), announced today the unsealing of an indictment in Brooklyn federal court charging three alleged leaders of an international money laundering organization for their role in brokering a series of financial transactions designed to conceal the source of illegal narcotics trafficking. The defendants allegedly used the Chinese and Hong Kong financial system and the shipment of counterfeit goods around the world to launder over $5 billion for drug cartels based in Mexico and Colombia.
“As alleged, the defendants and their co-conspirators laundered billions of dollars in illegal narcotics proceeds on behalf of several of the largest drug cartels in the world. The organization used a variety of methods to conceal the source of the drug proceeds in an operation that stretched around the globe,” stated Acting United States Attorney Currie. Mr. Currie thanked the Department of Justice, Office of International Affairs; DEA Dallas Field Office; New York City Police Department; New York State Police; DEA Beijing Country Office; DEA Hong Kong Country Office; IRS Beijing Country Office; IRS Hong Kong Country Office; the Financial Investigations Group of the Hong Kong Customs and Excise Department; and the Chinese Ministry of Public Security.
“These indictments are a result of a lengthy and extensive investigation that tracked the profit of billions of dollars made by drug traffickers through five continents. Allegedly, the three defendants provided the financial lifeline for drug cartels to operate and push illegal drugs into the United States,” said Drug Enforcement Administration Special Agent-in-Charge Hunt.
“Attacking the proceeds from the sale of illegal drugs is a proven technique for dismantling drug organizations of all sizes,” said IRS Acting Special Agent-in-Charge Bishop. “Collaborations between IRS-Criminal Investigation and the DEA are successful, as our joint investigations bring together highly skilled drug investigators with highly skilled financial investigators in the fight against global narcotics trafficking organizations. Accordingly, we are pleased to partner with the DEA and the U.S. Attorney’s Office in this trade-based money laundering investigation.”
As alleged in the indictment, the investigation determined that from approximately January 1, 2004 to the present, members of an international organization of money launderers and drug trafficking organizations conspired to carryout trade-based money laundering activities in China, Colombia, the United States, Spain, Ecuador, Venezuela, and elsewhere. The group was led by Colombian nationals based in Guangzhou, China (the Guangzhou Enterprise). The Guangzhou Enterprise laundered money through bank accounts in Hong Kong and China on behalf of drug trafficking organizations in Mexico and Colombia to fund purchases of counterfeit goods in China, which were then shipped to Colombia and elsewhere for resale.
The Enterprise typically paid Colombian pesos to the drug traffickers in exchange for their U.S. dollar proceeds of drug trafficking at a heavily discounted exchange rate, which reflected the risks incurred by the money brokers. The Enterprise then located Colombian or other South American customers – usually businesses – that needed U.S. dollars to pay for imported goods or services. They then sold the U.S. dollars to those customers, who used the money to purchase goods and services in China for resale.
The investigation revealed that the Guangzhou Enterprise, led by Christian Duque-Aristizabal, Jhon Hincapie-Ramirez and Henry Poveda, among others, was responsible for laundering over $5 billion in narcotics proceeds.
Duque-Aristizabal was arrested in Panama City, Panama, on July 13, 2015, and Hincapie-Ramirez was arrested in Cali, Colombia, on August 13, 2015. The government is currently seeking their extradition to the United States. Poveda was arrested in Honolulu, Hawaii, on August 23, 2015. Poveda was arraigned earlier today before the Hon. Carol B. Amon at the U.S. District Court in Brooklyn.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Amir H. Toossi, Tyler J. Smith, and Ameet B. Kabrawala are in charge of the prosecution.
The Defendants:
CHRISTIAN DUQUE-ARISTIZABAL
Age: 36JHON HINCAPIE-RAMIREZ
Age: 54HENRY POVEDA
Age: 49E.D.N.Y. Docket No. 15-Cr-81