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Thursday 23 July 2015
Alleged Rapist Under Federal CustodyRead the Press Release
SAN JUAN, P.R. – Today, United States Magistrate Judge Camille Vélez-Rivé authorized a criminal complaint charging Carlos Cruz-Rivera with two counts of carjacking, two counts of using and carrying a firearm during and in relation to a crime of violence, and possession of a firearm by a convicted felon, announced United States Attorney Rosa Emilia Rodríguez-Vélez. FBI is in charge of the investigation.
According to the information contained in the affidavit submitted in support of the criminal complaint, on July 21, 2015, Cruz-Rivera was detained by the Puerto Rico Police Department (PRPD) pursuant to an ongoing investigation concerning several incidents of rape, kidnapping, carjacking, and robbery that occurred during the months of May through July of 2015.
The investigation conducted by the PRPD revealed that on June 30, 2015, at approximately 9:30 PM, the defendant carjacked an adult woman (hereinafter referred to as Victim 1). That night Victim 1 arrived to her home in the Santurce area and as she exited she felt someone press against her back and shoulder. When she turned to look at the person, she saw Cruz-Rivera standing beside her vehicle, holding a medium sized silver revolver. Cruz-Rivera instructed her to move over to the passenger side of the vehicle.
Cruz-Rivera then drove Victim 1’s vehicle to a Bank located in the Isla Verde area. While driving there, Victim 1 asked Cruz-Rivera where they were going and expressed concerns to him about being raped because she was six months pregnant. Cruz-Rivera simply told her that they were going “somewhere” and that she did not need to worry about the details. Once they arrived at the bank, Cruz-Rivera took Victim 1’s ATM card and pin number and withdrew $500 in cash. Video from the ATM footage obtained in the investigation reveals CRUZ-RIVERA driving Victim 1’s vehicle through the ATM drive-through.
After making the withdrawal, Cruz-Rivera drove Victim 1 to a secluded area in Villa Palmera and stopped the vehicle. Once there, he committed lascivious acts while she pleaded with him not to rape her. Cruz-Rivera then got out of the car and left the area.
The investigation also revealed that on July 11, 2015, Cruz-Rivera committed another carjacking in the Santurce area of San Juan. At approximately 11:00 PM, an adult female, hereinafter referred to as Victim 2 stopped at a Shell gas station on the corner of Calle Loíza and San Jorge. Cruz-Rivera approached her and announced that this was a hold up. He then pointed a black pistol at Victim 2 and ordered her to open the front passenger side door of her vehicle.
After Victim 2 unlocked the vehicle door, Cruz-Rivera instructed her to drive to the same bank located in the Isla Verde area where he had taken Victim 1. Upon arriving at the Bank, Cruz-Rivera placed the pistol against her right side and instructed her to drive through the ATM drive-through and withdraw $60 from the ATM. Upon doing so, Cruz-Rivera took the money and again instructed Victim 2 to drive to a secluded area in Villa Palmera, which was within walking distance of his home. Upon arriving at the location, Cruz-Rivera instructed Victim 2 to stop the vehicle and he got out.
On July 21, 2015 PRPD officers recovered a black .40 caliber Glock 22 pistol with three magazines from the Llorens Torres Apartment where Cruz-Rivera was arrested. On July 22, both victims positively identified Cruz-Rivera in a line-up as their assailant.
“I commend the PRPD agents and detectives for their persistence and efforts in solving these crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will zealously protect the victims who are coming forward in order to seek justice and, will prosecute this defendant to the fullest extent of the law.”
“This sexual predator will no longer be able to roam the streets of Puerto Rico looking for defenseless and innocent victims to attack at will. The FBI, along with the United States Attorney’s Office, will continue to use all its resources and tools to investigate, charge, and prosecute individuals like Cruz-Rivera,” said Carlos Cases, Special Agent in Charge of the FBI, San Juan Field Office.
The case is being prosecuted by Assistant United States Attorney Jenifer Hernández-Vega, Supervisor of the Violent Crimes Unit. If convicted defendant faces a maximum penalty of up life in prison. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
Airplane Broker Charged with 200 Counts of Laundering $3.6 Million for Drug Traffickers via Purchase of More than 35 AirplanesRead the Press Release
SAN DIEGO – A Mexican airplane broker, his wife and others are charged in a 200-count grand jury indictment with laundering the funds of drug traffickers through the sale of 35 Cessna airplanes intended for use in illicit smuggling.
Vincente Contreras-Amezquita, who lived in San Diego during the time period in question, was arrested last week and appeared in court today before U.S. Magistrate Judge Bernard G. Skomal. The judge scheduled a detention hearing for July 30, 2015 at 2:30 p.m.
According to the indictment, Contreras-Amezquita and others facilitated the acquisition and purchase of the Cessnas and airplane parts, including auxiliary fuel tanks, heavy duty tires and landing gear for landing on clandestine airfields. Cessna 206s and 210s are types of airplanes preferred by drug-trafficking organizations operating in Mexico because of their reliability, speed and ability to carry heavy payloads over long distances.
The indictment alleged that Contreras-Amezquita and others used 46 different U.S. bank accounts to deposit $3.6 million in cash deposits during a five-year period and initiated inter-fund transfers for the purchase of airplanes and airplane parts.
The indictment further alleged that in order to conceal his crimes, Contreras-Amezquita collected the unlawful drug proceeds in random locations, like strip malls, parking lots, aircraft hangars and fast-food restaurants.
In order to hide the source of the illicit cash, and to evade the currency reporting requirements, Conreras-Amezquita instructed his money laundering crew to arrange for structured cash deposits under $10,000 into multiple bank accounts at different U.S. financial institutions to avoid reporting requirements.
As part of the money laundering scheme, defendant Contreras-Amezquita and his money laundering crew opened new accounts using different names, different forms of identification, and different addresses. Often times, the money laundering crew would conduct multiple deposits on the same and consecutive days, into multiple bank accounts at multiple branch offices of these financial institutions. On occasion, defendants would travel to multiple branches of the financial institutions located within the same geographic location. They would also travel to multiple states, including Connecticut, Texas, Georgia, Arizona, Michigan, and California, to conduct these financial transactions.
Immediately following the structured deposits, defendants Vincente Contreras-Amezquita and his crew engaged in convoluted financial transactions by initiating and authorizing various fund transfers between these multiple bank accounts. Defendants would engage in fund transfers into designated bank accounts because these designated bank accounts would be used to initiate payment for the airplanes or airplane parts.
Contreras-Amezquita faces up to 20 years in custody.
DEFENDANT Case Number 15CR1144MMA
Vicente Contreras-Amezquita Age 44 Tijuana
CHARGES
CONSPIRACY CHARGES
Count 1
Conspiracy To Launder Money
- Avoid a transaction reporting requirement
- To Conceal & Disguise Nature, Location, Source, Ownership, and Control of Proceeds
18/1956(h)
18/1956(a)(1)(B)(ii)
18/1956(a)(1)(B)(i)
Count 2
Conspiracy to Engage in Monetary Transactions
18/1956(h)
18/1957
Count 3
Conspiracy to Violate Structure Currency Deposits
31/5324(a)(3)
SUBSTANTIVE COUNTS
CESSNA #1 – N761KT
Counts
4-17
Aiding and Abetting/ML - Avoid a transaction reporting requirement (deposits only)
18/1956(a)(1)(B)(ii)
18/2
Counts
18-22
Aiding and Abetting/ML – Conceal & Disguise Nature, Location, Source, Ownership & Control of Proceeds
(inter fund transfers only)
18/1956(a)(1)(B)(i)
18/2
Counts
23-24
Aiding and Abetting/ Engage in Monetary Transactions (payments from accounts only)
18/1957
18/2
Count
25
Aiding and Abetting/Structuring
31/5324(a)(3)
18/2
CESSNA #2 – N6474C
Counts
26-45
Aiding and Abetting/ML - Avoid a transaction reporting requirement (deposits only)
18/1956(a)(1)(B)(ii)
18/2
Counts
46-51
Aiding and Abetting/ML – Conceal & Disguise Nature, Location, Source, Ownership & Control of Proceeds
(inter fund transfers only)
18/1956(a)(1)(B)(i)
18/2
Counts
52-53
Aiding and Abetting/ Engage in Monetary Transactions (payments from accounts only)
18/1957
18/2
Count
54
Aiding and Abetting/Structuring
31/5324(a)(3)
18/2
CESSNA #3 – N6364Y
Counts
55-65
Aiding and Abetting/ML - Avoid a transaction reporting requirement (deposits only)
18/1956(a)(1)(B)(ii)
18/2
Count
66
Aiding and Abetting/ML – Conceal & Disguise Nature, Location, Source, Ownership & Control of Proceeds
(inter fund transfers only)
18/1956(a)(1)(B)(i)
18/2
Counts
67-68
Aiding and Abetting/ Engage in Monetary Transactions (payments from accounts only)
18/1957
18/2
Count
69
Aiding and Abetting/Structuring
31/5324(a)(3)
18/2
CESSNA #4 – N4960C
Counts
70-84
Aiding and Abetting/ML - Avoid a transaction reporting requirement (deposits only)
18/1956(a)(1)(B)(ii)
18/2
Counts
85-86
Aiding and Abetting/ML – Conceal & Disguise Nature, Location, Source, Ownership & Control of Proceeds
(inter fund transfers only)
18/1956(a)(1)(B)(i)
18/2
Counts
87-88
Aiding and Abetting/ Engage in Monetary Transactions (payments from accounts only)
18/1957
18/2
Count
89
Aiding and Abetting/Structuring
31/5324(a)(3)
18/2
CESSNA #5 – N6195Y
Counts
90-105
Aiding and Abetting/ML - Avoid a transaction reporting requirement (deposits only)
18/1956(a)(1)(B)(ii)
18/2
Counts
106
Aiding and Abetting/ML – Conceal & Disguise Nature, Location, Source, Ownership & Control of Proceeds
(inter fund transfers only)
18/1956(a)(1)(B)(i)
18/2
Counts
107-109
Aiding and Abetting/ Engage in Monetary Transactions (payments from accounts only)
18/1957
18/2
Count
110
Aiding and Abetting/Structuring
31/5324(a)(3)
18/2
CESSNA #6 – N345HI
Counts
111-120
Aiding and Abetting/ML - Avoid a transaction reporting requirement (deposits only)
18/1956(a)(1)(B)(ii)
18/2
Counts
121-122
Aiding and Abetting/ML – Conceal & Disguise Nature, Location, Source, Ownership & Control of Proceeds
(inter fund transfers only)
18/1956(a)(1)(B)(i)
18/2
Counts
123-124
Aiding and Abetting/ Engage in Monetary Transactions (payments from accounts only)
18/1957
18/2
Count
125
Aiding and Abetting/Structuring
31/5324(a)(3)
18/2
CESSNA #7 – N7615Q
Counts
126-136
Aiding and Abetting/ML - Avoid a transaction reporting requirement (deposits only)
18/1956(a)(1)(B)(ii)
18/2
Counts
137-139
Aiding and Abetting/ML – Conceal & Disguise Nature, Location, Source, Ownership & Control of Proceeds
(inter fund transfers only)
18/1956(a)(1)(B)(i)
18/2
Adams Man Charged in Connection with Plot to Engage in Terrorism PlotRead the Press Release
BOSTON – An Adams man has been charged in an Indictment in connection with a plot to engage in terrorism on behalf of ISIL. A grand jury in U.S. District Court in Springfield indicted Alexander Ciccolo, a/k/a Ali Al Amriki, 23, on one count of being a convicted felon in possession of firearms and one count of assault with a deadly weapon and causing bodily injury to a person assisting an officer of the United States in the performance of official duties. The latter charge stems from Ciccolo’s alleged attack of a nurse during a jail intake process after his arrest.
According to evidence presented at a previous detention hearing, on July 4, 2015 Ciccolo took delivery of four firearms which he had ordered from a person who was cooperating with members of the Western Massachusetts Joint Terrorism Task Force, and who had been communicating with Ciccolo about Ciccolo’s plans to engage in a terrorist act. Ciccolo was arrested immediately after taking delivery of the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1 556 rifle, a Glock 17-9 mm pistol, and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.
The government alleged that Ciccolo is a supporter of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Ciccolo had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIL, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, like college cafeterias. Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.
During a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.” These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.
Shortly after his arrest, while he was being processed at the Franklin County Correctional Center, Ciccolo stabbed a nurse with a pen, leaving a bloody gash on the top of the nurse’s head.
Based on these alleged facts and evidence presented at Ciccolo’s detention hearing on July 14, 2015, Magistrate Judge Katherine A. Robertson ordered that Ciccolo be detained until trial.
The charge of being a felon in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of assault with a dangerous weapon causing bodily injury provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Assistant Attorney General John P. Carlin and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation is being conducted by the Western Massachusetts Joint Terrorism Task Force, and member agencies of the JTTF including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield Police Department, the Ludlow Police Department, the Holyoke Police Department, the West Springfield Police Department, the Easthampton Police Department, the Pittsfield Police Department, the Massachusetts State Police and Homeland Security Investigations, with critical assistance from the Adams Police Department and the Massachusetts State Regional Hazardous Materials Response Team.
The case is being prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Deepika Shukla of the District of Massachusetts and the National Security Division's Counterterrorism Section.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wednesday 22 July 2015
Woman Pleads Guilty to One Count of Aiding and Abetting Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EVELYN ODOMS, age 64, of New Orleans, pled guilty today to one count of aiding and abetting health care fraud.
On March 12, 2015, ODOMS was indicted along with 18 other defendants in a 26-count Indictment charging approximately $30,052,295 in Medicare fraud and the BP fraud.
According to court documents, ABIDE billed Medicare for providing home health services to an ABIDE patient for approximately five years. During that time period, ODOMS, a licensed practical nurse, was supposed to teach the patient how to treat and handle different diagnoses. But ODOMS never observed the patient exhibit symptoms of the diagnoses and never taught the patient about the diagnoses. ODOMS falsely documented services she was supposed to provide to the patient, documentation that Medicare relied upon to regulate Medicare providers. ABIDE counted on ODOMS to compromise her independent medical observations and ethics to participate in the ongoing health care fraud scheme perpetrated by ABIDE and ODOMS’ co-defendants.
ODOMS faces a maximum term of imprisonment of ten years, followed by three years of supervised release, and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for October 28, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Evelyn Odoms Factual basis.pdf (690.93 KB)
Two Sentenced in Tax Refund SchemeRead the Press Release
TALLAHASSEE, FLORIDA – Dorothy Jean Bailey, 52, and Phillip Walker III, 24, of Tampa, Florida, were sentenced to 110 months and 48 months in prison respectively today for conspiracy, wire fraud, theft of government funds, and aggravated identity theft in connection with the filing of false federal income tax returns. They were also ordered to pay $475,402.01 in restitution. Bailey and Walker were the last of five defendants to be sentenced in the case. The sentences were announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
During their guilty pleas in November and December 2014, the defendants admitted that, between 2011 and 2014, they conspired with co-defendants Darren Christopher Royal, 22, Cedric William Page, 25, and Gabriela Gloria Huerta, 23, each of Tallahassee, to file approximately 335 fraudulent federal income tax returns seeking more than $3.4 million in tax refunds. To prepare these returns, the conspirators used personal identification information (PII) stolen from approximately 662 individuals. The group obtained the PII from criminal court records in Texas, from tenant records maintained by apartment complexes in Tallahassee, and from deceased victims. Bailey, Walker, and Royal also filed fraudulent returns in their own names.
The case was investigated by the Internal Revenue Service-Criminal Investigation and the Leon County Sheriff’s Office, whose joint investigation led to the charges in this case. It was prosecuted by Assistant U.S. Attorney Jason Coody.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Two Convicted by Federal Jury of over $6 Million in FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Brian Newton (57, Port Orange) and Victoria Snow (55, Clearwater) guilty of 1 count of conspiracy, 13 counts of mail fraud, and 11 counts of wire fraud. Each faces a maximum penalty of 20 years in federal prison for each count. Sentencing has been set for October 9, 2015.
Newton and Snow were charged by indictment on April 2, 2014.
According to the evidence presented at trial, Newton and Snow worked on behalf of Dataforce International, Inc. Beginning in 2003, Dataforce had a contract to “factor” its invoices at Amerifactors Financial Group. “Factoring” is a financial transaction in which a business sells its accounts receivables, such as invoices, to a third party (called a factor) at a discount. Accounts receivable are created when a business performs services or sells goods to a client. The factor provides financing to the seller of the invoice in the form of an advance. Once an invoice has been factored by a business, the business will typically arrange to have the client pay the third party factor directly.
In 2003, Newton and a business partner established a factor by the name of Prestige Funding. To fund its factoring, Prestige Funding solicited investors. In total, the company raised over $8 million from over 50 investors to be used to factor invoices.
As part of their scheme, Newton and Snow submitted a series of invoices for factoring to Amerifactors that were inflated and that did not reflect work that had been performed by Dataforce. In addition, the two engaged in “double factoring,” which involved submitting the same Dataforce invoices for factoring to both Amerifactors and Prestige Funding. By executing this scheme, Newton and Snow were able to defraud Amerifactors, Prestige Funding, and the investors of Prestige Funding out of over $6 million. Of that amount, Newton diverted over $3 million into his personal bank account.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Tucson Heroin Trafficker Sentenced over 19 YearsRead the Press Release
TUCSON, Ariz. – Yesterday, Victor Corral, Jr., 36, of Tucson, Ariz., was sentenced by U.S. District Judge Cindy K. Jorgenson to 235 months’ imprisonment. Corral previously pleaded guilty to conspiracy to possess with intent to distribute heroin (greater than 90 kilograms) and conspiracy to launder monetary instruments.
A joint state and federal task force investigation into a Mexican based drug trafficking organization led to the identification of co-conspirators working out of Tucson, Ariz. The Tucson cell of the organization was responsible for the importation and distribution of kilogram quantities of heroin throughout the western United States, including Denver, Colo. and Portland, Ore. Working from Tucson, Corral supervised and managed other co-conspirators in the importation and further distribution of that heroin. Additionally, Corral was responsible for receipt, transport, and smuggling of the bulk cash drug proceeds in excess of a million dollars back into Mexico. Much of the heroin imported and distributed by Corral and the drug trafficking organization, was “white” heroin, with the last seizure in the case weighing approximately 89 pounds with a purity of 90%.
The investigation in this case was conducted by DEA-Tucson, HSI-Tucson, Tucson Police Department, and the Counter Narcotics Alliance. The prosecution was handled by Anthony E. Maingot, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-01156-CKJ (CRP)
RELEASE NUMBER: 2015-054_Corral
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tampa Man Indicted for Receipt of Child PornographyRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Andre Eugene Favreau (30, Temple Terrace) with receipt of child pornography. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the indictment, Favreau downloaded child pornography onto his desktop computer between December 3, 2014, and May 14, 2015.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tahlaquah Man Pleads Guilty to Providing Contraband in PrisonRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that NATHAN LEON STANLEY BENALLY-SAM, age 21, of Tahlequah, Oklahoma, pled guilty to PROVIDING CONTRABAND IN PRISON, in violation of Title 18, United States Code, Section 1791(a)(1).
The charge is a result of an investigation by the Muskogee County Sheriff’s Department and the United States Marshal Service. The defendant was indicted in June, 2015.
The Indictment alleged that on or about February 5, 2015, in the Eastern District of Oklahoma, the Defendant, NATHAN LEON STANLEY BENALLY-SAM, did knowingly and intentionally attempt to provide marijuana, to an inmate in a prison.
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 a presentence report to be completed. The defendant will remain on bond pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Sullivan Man Charged with Child Pornography OffensesRead the Press Release
Peoria, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Peoria has returned an indictment charging Justen W. Troxell, 30, of the 400 block of South Worth Street, Sullivan, Ill., with distribution and possession of child pornography.
The indictment alleges that in June 2015, Troxell distributed and possessed images and videos of minors engaged in sexually explicit conduct. The indictment also seeks forfeiture of computers and related materials allegedly used to commit or promote the offenses.
If convicted, the statutory penalty for each count of distribution of child pornography (two counts) is a mandatory minimum of five years in prison to 20 years in prison and a term of supervised release of up to life following any term of imprisonment. If a defendant has a prior child sex abuse or child pornography conviction, the statutory penalty is not less than 15 years and up to 40 years in prison. For possession of child pornography (one count), the penalty is up to 10 years in prison.
Troxell was arrested on June 26, 2015, and charged in a criminal complaint with distribution of child pornography. During a court appearance on that same day, before U.S. Magistrate Judge Eric I. Long, in Urbana, Troxell was ordered detained in the custody of the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation, the Illinois State Police, and the Tuscola and Sullivan Police Departments.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Statement of U.S. Attorney Preet Bharara on the Guilty Verdict in U.S. v. Thomas LibousRead the Press Release
“Public corruption is a scourge. Every New Yorker wants us to work as hard as possible to end it. But lies to law enforcement make the job of fighting corruption doubly difficult. Today, a jury unanimously found that Tom Libous, the second highest ranking New York Senator, told lie after lie to hide the truth from federal agents investigating corruption in Albany. Libous’s lies have been exposed, his crime has been proven, and Albany will be the better for it.”
St .Croix Man Sentenced to Probation, Home Confinement for Possession of Prison ContrabandRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis today sentenced Michael Anderson Boyce, 29, to five years of probation and eight months of home confinement for Possession of Prison Contraband, United States Attorney Ronald W. Sharpe announced.
On March 20, 2015, Boyce pleaded guilty to one count of Possession of Prison Contraband. As part of the plea, Boyce admitted that on April 4, 2013 while he was an inmate at the Golden Grove Adult Correctional Facility on St. Croix, he possessed a knife that was hidden inside his mattress.
This case was investigated by the U.S. Drug Enforcement Administration and the Virgin Islands Bureau of Corrections. The case was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Springfield Area Business Owner, Son Plead Guilty to $5.5 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of several Springfield, Mo., area restaurants and his son pleaded guilty in federal court today, in two separate but related cases, to their roles in a more than $5.5 million bank fraud scheme.
Bruce Swisshelm, 68, of Battlefield, Mo., and his son, Bruce Swisshelm II, 43, of Springfield, pleaded guilty in separate appearances before U.S. Magistrate Judge David P. Rush. Swisshelm pleaded guilty to bank fraud and money laundering. Swisshelm II pleaded guilty to misprision of a felony.
Swisshelm was the owner of Horned Frog Deli, Inc., and Swisshelm Properties, Inc. These corporations, which specialized in the restaurant industry, owned and developed commercial properties in Springfield and elsewhere. Swisshelm owned and operated Burger King restaurants, Macaroni Grill restaurants, San Francisco Oven restaurants, McAlister’s Deli restaurants, Ebbett’s Field restaurants and a Fog City Coffee restaurant. Swisshelm II served as the president for Swisshelm Properties.
Swisshelm admitted that he submitted false financial documents to Great Southern Bank in order to receive four commercial loans, totaling $5,592,583, from February to June 25, 2011. The bank relied on the false information provided within the financial statements submitted by Swisshelm when it approved the commercial loans.
Swisshelm submitted financial statements to the bank that claimed his businesses earned a net income of more than $780,000 in 2010. Tax documents submitted by Swisshelm to the Internal Revenue Service revealed those businesses had losses that exceeded $1.8 million in 2010.
Swisshelm II admitted that he knew about his father’s bank fraud scheme. He was personally involved in the communications with Great Southern Bank, attended meetings at the bank and signed bank documents related to the issuance of the commercial loans. After Great Southern Bank had issued the loans, Swisshelm II was made aware of his father’s fraud scheme. Swisshelm II was made aware that financial statements submitted to the bank by his father were false. Despite possessing this knowledge, Swisshelm failed to notify authorities.
Swisshelm II admitted that he helped conceal his father’s crime after he became aware of the fraud scheme and delayed the fraud being reported to authorities by Great Southern Bank.
Under the terms of today’s plea agreement, Swisshelm must forfeit to the government $5,592,583, which constitutes the proceeds obtained from his criminal activity.
Under federal statutes, Swisshelm is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $1,250,000 and an order of restitution. Swisshelm II is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the FBI and IRS-Criminal Investigation.
Serial Robber of Adult Entertainment Stores Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Dwayne Fitzgerald Jackson, Jr. (23, Tampa) has pleaded guilty to seven counts of commercial robbery and one count of carrying a firearm in furtherance of a crime of violence. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between June 4, 2014, and continuing until July 30, 2014, Jackson robbed seven commercial businesses, including Xtreme Adult Book and Video Store, Adult World Supercenter Store, and X-mart Adult Supercenter. He was arrested on July 30, 2015, after robbing Xtreme Adult Book and Video Store for the second time. During each robbery, Jackson brandished a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Rocklin Man Pleads Guilty to Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Paul Ross Pacini, 46, of Rocklin, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, an undercover investigation revealed that in June through August of 2013, Pacini used a peer-to-peer file-sharing network to share more than 300 files of pictures and videos depicting the sexual exploitation of children, including videos involving children under the age of 10. A search warrant executed at Pacini’s home revealed that his computers contained more than 2,500 images and more than 900 videos depicting the sexual abuse of children, and that at various times many of those videos were made available to others over the Internet through a file-sharing network.
This case is the product of an investigation by the Sacramento County Sheriff’s Department's Internet Crimes Against Children Task Force. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Pacini is scheduled to be sentenced on October 7, 2015, by United States District Judge Kimberly J. Mueller. Pacini faces a possible sentence of five to 20 years in prison and a $250,000 fine. The actual sentence, 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.
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 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.
Rhode Island Man Indicted for Trafficking over A Kilogram of HeroinRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Providence, Rhode Island man was indicted late yesterday by a federal grand jury sitting in Scranton, on the charge of possession with intent to distribute in excess of one kilogram of heroin.
According to United States Attorney Peter Smith, the defendant, Angel Prado, age 43, allegedly committed the offense on December 19, 2013, in Monroe County, Pennsylvania when he was operator of a vehicle involved in a traffic stop.
The charge against Prado resulted from an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum sentence of 10 years in prison. 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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Real Estate Developer Charged with Swindling Investors <br>In $2 Million Ponzi SchemeRead the Press Release
CHICAGO — A Florida businessman has been charged in federal court with running a Ponzi scheme involving the sale of bogus investments in his real estate development company. RICHARD L. THOMPSON, 60, induced investors to purchase shares in his real estate development company, Latten Management LLC, and to personally loan him money, on the false premise that his company owned more than two hundred acres of property in Tennessee, according to a criminal information filed Tuesday in U.S. District Court in Chicago. Thompson took in approximately $2.1 million in the scheme, including $125,000 from an investor in west suburban Naperville, who purchased shares in Thompson’s company with funds from a retirement account, the information states.
Thompson, of Sarasota, Fla., was charged with one count of wire fraud. He will make an initial appearance before U.S. Magistrate Judge Maria Valdez on a date to be determined by the Court.
The information alleges that Thompson founded Latten Management in Florida in 2007 to develop vacation properties in Tennessee. Thompson personally purchased 54 acres of land in an area known as Green Mountain, and 15 acres in an area known as Green Ridge Park, according to the information. There were mortgages on both properties, and Thompson kept title in his name without ever transferring them to Latten Management, the information alleges.
Thompson and other individuals later purchased 217 acres, known as Catawba Peak, in another area of Tennessee, with Thompson guaranteeing payment for the mortgage loan, the information states. Thompson and the other owners defaulted on the loan when full payment came due in approximately February 2009, leaving a debt of approximately $9.8 million, according to the information. Latten Management never owned the Catawba Peak property, the information states.
From early 2009 until April 2011, Thompson offered and sold shares in his company by telling investors that it owned the three properties in Tennessee, and that the company would develop them into vacation destinations, according to the information. Thompson gave tours of Green Mountain, Green Ridge Park, and Catawba Peak to investors, but concealed the fact that Latten Management didn’t own the properties, according to the information. The information further alleges that Thompson concealed the fact that he and the other individuals had defaulted on the Catawba Park loan. In fact, Thompson knew that Latten Management did not own any real property, and that the investors’ shares in the company were not secured by any property, the information charges. According to the information, Thompson caused losses to Latten investors of approximately $1,652,000. Thompson misappropriated a substantial portion of investors’ funds to pay for his own personal expenses, including his home mortgage, his family’s credit cards, electric bills, college tuition, life insurance, and a Lexus, the information states.
In order to conceal his scheme, Thompson had to continually obtain new funds in order to satisfy his existing obligations to repay investors through Ponzi-type payments, according to the information. He also publicly filed false documents with the Securities and Exchange Commission, and intentionally misled investors about the status of their investments and loans, the information charges.
One of the duped investors lived in Naperville, according to the information. That investor transferred $125,000 in personal retirement savings to an account in Sarasota to purchase shares in Latten, according to the information.
In addition to the investments in Latten shares, Thompson also fraudulently obtained approximately $667,000 in personal unsecured loans from individuals by falsely representing that he would use their money to cover costs associated with developing Latten projects, according to the information. These personal loans were evidenced by promissory notes signed by Thompson, who promised to repay them with interest, even though he knew he did not have the financial ability to do so, the information states.
Thompson used a portion of the personal loans to pay for his own expenses, and to repay some of the Latten investors, according to the information. This part of the scheme resulted in a loss of approximately $500,000 to the individuals, the information states.
The information was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
If convicted, Thompson faces a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The Court would determine the appropriate sentence to be imposed under the advisory United States Sentencing Guidelines.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant United States Attorney Jacqueline Stern.
Information (38.76 KB)
Philadelphia Man Charged with Obstruction of MailRead the Press Release
PHILADELPHIA - Patrick D’Ambrosio, 48, of Philadelphia, PA, was charged by information, filed yesterday, with one count of obstruction of mail, announced United States Attorney Zane David Memeger. The information that D’Ambrosio was employed by the U.S. Postal Service between May 2014 and January 2015 when he obstructed the passage of approximately 22,500 pieces of mail.
If convicted the defendant faces a maximum statutory sentence of six months in prison, a fine, or both.
The case was investigated by the United States Postal Service Office of Inspector General and is being prosecuted by Assistant United States Attorney Marianne Cox.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pearl City Man Sentenced to over 29 Years in Prison for Child Pornography ProductionRead the Press Release
HONOLULU – Ray K. Yokoyama, age 54, formerly of Pearl City, Hawaii, was sentenced in federal court today to 350 months in prison for producing images of a minor engaged in sexually explicit conduct, and making them available over the Internet. United States District Judge Derrick K. Watson also ordered that Yokoyama register as a sex offender, and undergo a lifetime of supervised release following service of his prison term.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced to the court, Yokoyama (1) produced child pornography using a minor on two occasions in 2009, (2) distributed child pornography over an Internet file-sharing network in July 2012, and (3) possessed child pornography in January 2013. According to an affidavit filed on January 18, 2013, the Federal Bureau of Investigation initiated an investigation after an undercover agent in Dallas, Texas downloaded child pornography from a computer in Hawaii. Agents traced the computer's Internet Protocol address to Yokoyama's home in Pearl City, and executed a search warrant for the residence. Agents recovered computer storage media, including a disk that contained images of a minor boy engaged in sexually explicit conduct.
During later court proceedings, Yokoyama admitted taking pictures of a minor boy engaged in sexually explicit conduct. According to information provided in court, the boy was approximately nine years old at the time. Images of the boy were later found in a folder in Yokoyama’s computer, which was available to the public over a file-sharing network.
In imposing today’s sentence, United States District Judge Derrick K. Watson observed that Yokoyama had prior criminal convictions, had once impersonated a law enforcement officer, and failed to accept responsibility for his conduct. Yokoyama has been detained at the Federal Detention Center since his arrest on January 18, 2013.
The case was investigated by the FBI, with support from Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Larry Tong.
Noorvik Man Charged with Burglary of United States Post OfficeRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that the grand jury has returned a one-count indictment charging a Noorvik man with one count of burglary of a United States Post Office.
Theodore Westlake, 18, of Noorvik, is charged in a one-count indictment with burglary of a United States Post Office.
According to Assistant U.S. Attorney Aunnie Steward who presented the case to the grand jury, Westlake forcibly entered the Noorvik Post Office to steal money on June 29, 2015.
The law provides for a maximum sentence of 5 years’ incarceration and a $250,000 fine or both.
Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service and the Alaska State Troopers conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
New York State Senator Thomas W. Libous Found Guilty by White Plains Federal Jury for Lying to the FBIRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that New York State Senator THOMAS W. LIBOUS was found guilty of making false statements to the Federal Bureau of Investigation (“FBI”) following a seven-day trial in White Plains before the Hon. Vincent L. Briccetti, United States District Judge.
Manhattan U.S. Attorney Preet Bharara said: “Public corruption is a scourge. Every New Yorker wants us to work as hard as possible to end it. But lies to law enforcement make the job of fighting corruption doubly difficult. Today, a jury unanimously found that Tom Libous, the second highest ranking New York Senator, told lie after lie to hide the truth from federal agents investigating corruption in Albany. Libous’s lies have been exposed, his crime has been proven, and Albany will be the better for it.”
The evidence at trial proved that a federal grand jury in White Plains was investigating allegations that THOMAS LIBOUS had obtained a job for a family member at a Westchester law firm (“the Law Firm”) in exchange for a promise to refer business to the firm, and had arranged for an Albany lobbying firm that regularly lobbied him to secretly pay the law firm $50,000 per year to defray the cost of the family member's salary and lease of a Range Rover. The lobbying firm specialized in transportation issues and THOMAS LIBOUS served as the Chairman of the Senate's Transportation Committee at the time. The evidence also showed that THOMAS LIBOUS told a partner of the Law Firm that the firm would have to "build a new wing" to accommodate the business he would refer to it if it hired the member of his family.
Special Agents of the FBI interviewed THOMAS LIBOUS on June 24, 2010, as part of the grand jury's investigation. The evidence at trial showed THOMAS LIBOUS made the following false statements to the agents during the interview:
- he could not recall how the family member began to work at the Law Firm;
- no deals were made to get the family member the job at the Law Firm;
- he was not aware that the lobbying firm had paid any part of the family member's salary at the Law Firm;
- he never promised to refer work to the Law Firm;
- he was not involved in the family member's decision to work at the Law Firm;
- he had no business or personal relationship with the Law Firm; and
- he did know of any relationship between the lobbying firm and the Law Firm.
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LIBOUS, 62, of Binghamton, New York, is scheduled to be sentenced by Judge Briccetti on October 30, 2015. LIBOUS faces a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.
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Mr. Bharara praised the investigative work of the FBI.
The prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorneys Benjamin R. Allee and James McMahon are in charge of the prosecution.
New Haven Man Sentenced to 38 Months for Illegally Possessing Ammunition, Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEVEN SINGH, 37, of New Haven, was sentenced today by U.S. District Judge Stephan R. Underhill in New Haven to 38 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition and for violating the terms and conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on June 19, 2013, SINGH was arrested by New Haven Police after he had fired multiple gunshots on Winthrop Avenue. Responding officers recovered three spent cartridges and one unfired bullet from the scene. SINGH later admitted to police that he had fired the shots to scare another individual, and that he had thrown the gun into a nearby river. The gun was never recovered.
SINGH has two prior federal convictions for distributing crack cocaine and, in June 2011, he was sentenced in federal court to 24 months of imprisonment and five years of supervised release.
On September 17, 2014, SINGH pleaded guilty to one count of possession of ammunition by a previously convicted felon, and admitted that he violated the terms and conditions of his supervised release.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
Mississippi Woman Charged with Making False Statements to New Orleans Immigration CourtRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr. announced that MARINA ARNEDO ROJAS-ZAYED, age 34, of Ocean Springs, Mississippi, was charged today in a Bill of Information for making false statements to an agency of the United States.
According to the Bill of Information, from on or about July 2012 until on or about August 2013, ROJAS-ZAYED represented before the New Orleans Immigration Court, that she was a licensed attorney in the state of Alabama, when in truth she was not a licensed attorney.
If convicted, ROJAS-ZAYED faces a possible maximum term of imprisonment of five years, followed by three years of supervised release, and a $250,000 fine.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Homeland Security Investigations (HSI) in investigating this matter. Assistant U. S. Attorney Julia K. Evans is in charge of the prosecution.
Marina Arnedo Rojas-Zayed Bill of Information.pdf (639.95 KB)
Midamar Founder Ordered Held Without Bond Pending SentencingRead the Press Release
Chief United States District Court Judge Linda R. Reade, today issued an written order directing that William B. Aossey, Jr., 73, of Cedar Rapids, Iowa, be detained without bond pending sentencing in United States District Court in Cedar Rapids, Iowa.
Aossey, the founder of Midamar Corporation and Islamic Services of America, both of Cedar Rapids, was convicted by a federal jury on July 13, 2015, of 15 counts of conspiracy, making false statements on export certificates, and wire fraud. Following a detention hearing on that same date, the Court ordered Aossey held without bond pending further order of Court.
In the written order filed today, the Court found Aossey “must remain detained pending sentencing because he has not established by clear and convincing evidence that he is not likely to flee if released under suitable conditions.” The Court also noted,
While on pretrial release Defendant has not earned the trust of the court. Defendant violated the terms of his pretrial release by failing to notify his probation officer of contact with law enforcement, even though the terms of his supervision were discussed with him when he was first released. His ties to the illegal firearms shipments to Lebanon remain under investigation.
A sentencing date has not yet been set.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General, and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00116-LRR.
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Manhattan U.S. Attorney Announces Arrests of Two North Carolina Men for Conspiring to Kidnap and Murder as Part of A Murder-For-Hire Scheme OverseasRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, the Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), today announced the arrests of two defendants – ADAM SAMIA and CARL DAVID STILLWELL, both citizens of the United States and residents of North Carolina. SAMIA and STILLWELL were arrested in Roxboro, North Carolina, and will be presented tomorrow before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina.
SAMIA and STILLWELL are charged in three separate counts with conspiracy to kidnap and murder in the Philippines; discharging a firearm in furtherance of a crime of violence; and conspiracy to launder the proceeds of committing murder-for-hire.
Manhattan U.S. Attorney Preet Bharara said: “As alleged in the indictment, Samia and Stillwell traveled as hired guns from North Carolina to the Philippines to commit a cold-blooded murder, ultimately shooting their victim in the face several times and dumping her body on a pile of garbage. After their contract killing, they allegedly covered their tracks by conspiring to launder the blood-money back to the United States. Thanks to the DEA’s exemplary investigative work and the cooperation of local and federal law enforcement in North Carolina, Samia and Stillwell are now in custody,”
Special Operations Division Special Agent in Charge Mark Hamlet said: “U.S. citizens who murder and commit crimes overseas are not immune from justice. Adam Samia and Carl Stillwell are accused of heinous crimes and DEA is pleased that they will stand trial in a U.S. court of law.”
According to the Indictment against SAMIA and STILLWELL unsealed today[1]:
SAMIA is a self-described “Personal Protection/Security Industry” professional. According to SAMIA’s resume, he has worked as an “Independent Contractor” for clients in the Philippines, China, Papua New Guinea, the Democratic Republic of the Congo, and the Republic of the Congo; and has training in tactics and weapons, including handguns, shotguns, rifles, sniper rifles, and machineguns. According to STILLWELL’s resume, he has training and experience in the field of information technology and has worked at a firm in North Carolina that provides firearms training.
In 2011 and 2012, SAMIA and STILLWELL agreed to commit murders-for-hire in overseas locations in exchange for monthly salaries and bonus payments for each victim. In early 2012, SAMIA and STILLWELL traveled from North Carolina to the Philippines, where they obtained, among other things, information about their intended victims and firearms to use to commit the murders.
In January and February 2012, SAMIA and STILLWELL conducted surveillance on their intended victims in the Philippines as they formulated their plans for the murders. On or about February 12, 2012, SAMIA and STILLWELL killed one of their intended victims – a Filipino woman – in the Philippines by shooting her in the face multiple times (“Victim-1”). After killing Victim-1, SAMIA and STILLWELL disposed of her body on a pile of garbage. SAMIA and STILLWELL were to be paid $35,000 each for completing the murder, and they sent thousands of dollars from the payments they received to the United States using, among other methods, structured wire transfers in amounts under $10,000.
In or about late February and early March 2012, SAMIA and STILLWELL returned from the Philippines to North Carolina, where they continued to reside until their arrests today.
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SAMIA, 41, and STILLWELL, 47, have each been charged with conspiracy to murder and kidnap in a foreign country (Count One), using and carrying a firearm during and in relation to a crime of violence (Count Two), and conspiracy to commit money laundering (Count Three). Counts One and Two each carry a maximum penalty of life in prison and Count Three carries a maximum penalty of 20 years in prison. Count Two also carries a mandatory consecutive sentence of 10 years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge. The case is assigned to U.S. District Judge Laura Taylor Swain.
The arrests of the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; DEA’s Atlanta Field Division, Raleigh Resident Office; the Durham Police Department; the Raleigh Police Department; the Harnett County Sherriff’s Office; the Wake County Sherriff’s Office; the Person County Sherriff’s Office; the Cary Police Department; the North Carolina State Bureau of Investigations; and Customs and Border Protection’s National Targeting Center. Mr. Bharara also thanked the United States Attorney’s Office for the Middle District of North Carolina for its support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Anna Skotko, Emil Bove, and Michael D. Lockard are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Luray Man Pleads Guilty to Tampering with Evidence for Moving Body of Drug Overdose VictimRead the Press Release
ALEXANDRIA, Va. – Jason Gregory Colley, 36, of Luray, Virginia, pleaded guilty today to tampering with evidence for moving the body of a drug overdose victim.
In a statement of facts filed with the plea agreement, on or about Sept. 12, 2014, Colley sold cocaine to Jason Laytham, 37, of Leesburg, Virginia, and another individual at an extended stay hotel in Ashburn, Virginia. After using an additional quantity of drugs, Laytham and the other individual became unconscious. Colley dragged Laytham’s body out of the hotel suite (which Colley had rented using his own name) into a common area of the hotel before calling for paramedics. When law enforcement officers arrived the other individual was unconscious in Colley’s hotel suite. While the other individual survived, Laytham died from the adverse effects of cocaine and other substances.
Colley was charged via criminal complaint on April 2, 2015. He faces a maximum penalty of 20 years in prison when he is sentenced on Oct. 16, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael L. Chapman, Loudon County Sheriff; and Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the Loudon County Sheriff’s Office and the DEA’s Washington Field Division. Assistant U.S. Attorneys Michael P. Ben’Ary and Tobias D. Tobler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-203.
Louisiana Woman Indicted for Child Sex TraffickingRead the Press Release
An indictment was unsealed today charging a Louisiana woman with offenses related to her sex trafficking of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI New Orleans Division.
Kellie M. Dominique, 36, of Baton Rouge, Louisiana, was indicted today for sex trafficking of a minor, attempted sex trafficking of a minor, obstruction of justice and four counts of use of an interstate facility in aid of racketeering.
According to the indictment, Dominique allegedly promoted a prostitution business out of her home and other venues in Baton Rouge, Louisiana. The indictment alleges that a minor worked as a prostitute for Dominique, and that, to promote Dominique’s prostitution business, the minor and others allegedly used the website “backpage.com” to post classified advertisements for commercial sex acts.
The charges and allegations in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police and East Baton Rouge Parish Sheriff’s Office, with assistance from the Baton Rouge Police Department’s Narcotics Division, the U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dominique Indictment
Louisiana Woman Indicted for Child Sex TraffickingRead the Press Release
WASHINGTON – An indictment was unsealed today charging a Louisiana woman with offenses related to her sex trafficking of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI New Orleans Division.
Kellie M. Dominique, 36, of Baton Rouge, Louisiana, was indicted today for sex trafficking of a minor, attempted sex trafficking of a minor, obstruction of justice and four counts of use of an interstate facility in aid of racketeering.
According to the indictment, Dominique allegedly promoted a prostitution business out of her home and other venues in Baton Rouge, Louisiana. The indictment alleges that a minor worked as a prostitute for Dominique, and that, to promote Dominique’s prostitution business, the minor and others allegedly used the website “backpage.com” to post classified advertisements for commercial sex acts.
The charges and allegations in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the FBI New Orleans Division, Louisiana Attorney General’s Office, Louisiana State Police and East Baton Rouge Parish Sheriff’s Office, with assistance from the Baton Rouge Police Department’s Narcotics Division, the U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Leader of Coupon Counterfeiting Ring on Silk Road Websites Pleads GuiltyRead the Press Release
A leader of a coupon counterfeiting ring pleaded guilty today to participating in a conspiracy to sell counterfeit coupons using the “Silk Road” online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Beau Wattigney, 30, New Orleans, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle of the Eastern District of Louisiana to conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting. Sentencing has been scheduled for Oct. 28, 2015.
In connection with his plea, Wattigney admitted that, between May 2012 and November 2014, he used the online monikers “PurpleLotus” and “GoldenLotus” to sell counterfeit coupons for various goods and services on Silk Road 1.0, which was a hidden website through which users around the world bought and sold illegal drugs, goods and services. Wattigney further admitted that he engaged in the same conduct on Silk Road 2.0, a successor to Silk Road 1.0, using the monikers “PurpleLotus” and “CouponKing.”
The coupons allowed purchasers to obtain significant discounts on a variety of goods and services offered by the victim companies, including Hopster, Veri-fi, SmartSource, RedPlum and Visa. For example, Wattigney sold a counterfeit coupon that allowed users to purchase $50.00 Visa Gift Cards for $0.01 each.
Wattigney admitted that he created and manufactured the fraudulent coupons with the assistance of several co-conspirators, and that they designed the coupons to look like original print-at-home manufacturers’ coupons by using the companies’ trademarks. He also admitted that the scheme affected more than 50 U.S.-based businesses, and caused or attempted to cause more than one million dollars in intended losses.
The investigation is being conducted by the FBI Philadelphia Division, with assistance from the FBI New Orleans Field Office. The case is being prosecuted by Senior Counsel Marie-Flore Johnson, Gavin Corn and Robert Wallace of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Jordan Ginsberg of the Eastern District of Louisiana.
Leader of Coupon Counterfeiting Ring on Silk Road Websites Pleads GuiltyRead the Press Release
WASHINGTON – A leader of a coupon counterfeiting ring pleaded guilty today to participating in a conspiracy to sell counterfeit coupons using the “Silk Road” online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.
Beau Wattigney, 30, New Orleans, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle of the Eastern District of Louisiana to conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting. Sentencing has been scheduled for Oct. 28, 2015.
In connection with his plea, Wattigney admitted that, between May 2012 and November 2014, he used the online monikers “PurpleLotus” and “GoldenLotus” to sell counterfeit coupons for various goods and services on Silk Road 1.0, which was a hidden website through which users around the world bought and sold illegal drugs, goods and services. Wattigney further admitted that he engaged in the same conduct on Silk Road 2.0, a successor to Silk Road 1.0, using the monikers “PurpleLotus” and “CouponKing.”
The coupons allowed purchasers to obtain significant discounts on a variety of goods and services offered by the victim companies, including Hopster, Veri-fi, SmartSource, RedPlum and Visa. For example, Wattigney sold a counterfeit coupon that allowed users to purchase $50.00 Visa Gift Cards for $0.01 each.
Wattigney admitted that he created and manufactured the fraudulent coupons with the assistance of several co-conspirators, and that they designed the coupons to look like original print-at-home manufacturers’ coupons by using the companies’ trademarks. He also admitted that the scheme affected more than 50 U.S.-based businesses, and caused or attempted to cause more than one million dollars in intended losses.
The investigation is being conducted by the FBI Philadelphia Division, with assistance from the FBI New Orleans Field Office. The case is being prosecuted by Senior Counsel Marie-Flore Johnson, Gavin Corn and Robert Wallace of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Jordan Ginsberg of the Eastern District of Louisiana.
Law Enforcement and Military Response to the July 16, 2015, Deadly Shootings at A Military Recruitment Center and A Naval and Marine Reserve Center in Chattanooga, TennesseeRead the Press Release
CHATTANOOGA, Tenn. – On July 16, 2015, Mohammad Youssef Abdulazeez, 24, of Hixon, Tenn., shot and killed five individuals and wounded two more, including a Chattanooga Police Officer, at a Military Recruitment Center and Naval and Marine Reserve Center.
Evidence collection and testing are still ongoing. The FBI, along with federal, state and local law enforcement partners, will continue to work tirelessly on this complex investigation. Approximately 250 FBI personnel are on the ground in Chattanooga, with more working across the country and around the globe, following almost 400 leads.
A law enforcement news briefing was held today in Chattanooga to share information concerning the timeline of events which occurred on July 16, 2015. Participating in this press briefing were: Major General Paul W. Briar, United States Marine Corp, Commanding General of 4th Marine Division; Rear Admiral Mary M. Jackson, United States Navy, Commander, Navy Southeast Region; NCIS Assistant Special Agent in Charge Michael Keleher, NCIS Central Field Office; FBI Special Agent in Charge Ed Reinhold, Knoxville Field Office; ATF Special Agent in Charge Steven Gerido, Nashville Field Office; Chattanooga Police Chief Fred Fletcher, Assistant Commissioner David Purkey, Tennessee Department of Safety and Homeland Security; and United States Attorney Bill Killian, Eastern District of Tennessee.
During today’s press conference, FBI Special Agent in Charge Ed Reinhold described the series of events that occurred on July 16, 2015, as follows:
- Shortly before 11:00 a.m., on July 16, 2015, the shooter, who has now been identified as Mohammad Youssef Abdulazeez, drove up to the Armed Forces Recruitment Center and fired shots. He did not get out of his vehicle at this time.
- Abdulazeez then left the Lee Highway location and traveled to the other facility on Amnicola Highway, crashing into the gate at the Naval Reserve Center.
- Abdulazeez exited the vehicle, armed with an assault rifle, handgun and numerous magazines of ammunition.
- A service member fired at Abdulazeez from within the facility as he approached the building. Abdulazeez fired several rounds into building before reaching the facility.
- Abdulazeez then entered the building and shot the first service member and he then made his way through the building and continued to shoot at those he encountered.
- Abdulazeez continued to fire on exposed military personnel as he made his way outside to the gated motor pool area and killed two military service members.
- Two military service members attempted to provide cover and assist the military personnel in getting over the fence and away from Abdulazeez.
- Abdulazeez continued to fire and killed two others service members.
- Abdulazeez attempted to move inside the compound at which point he was engaged by the Chattanooga Police Department.
- One Chattanooga Police Department officer was then wounded and Chattanooga Police Department killed the shooter
- The heroic actions of these service members saved countless lives.
Both U.S. Attorney Killian and FBI Special Agent in Charge Reinhold extended their sincere appreciation for the cooperation and coordination among all levels of law enforcement as well as the support from the city, state and nation as a whole during this investigation. Representatives from the U.S. Marine Corps, U.S. Navy and NCIS likewise recognized the support from the community and the bravery of the responding police.
As this is an ongoing investigation, no further regular press briefings are scheduled after today. If information becomes available that can and should be shared with the public, either a press release will be issued with the information, or the time and location of a press briefing will be announced. All future media inquiries should be directed to Special Agent Jason Pack, Public Information Officer, FBI, at [email protected] or Sharry Dedman-Beard, Public Information Officer, U.S. Attorney’s Office, Eastern District of Tennessee, at [email protected].
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KC Man Sentenced for Armed RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for using a firearm to commit a robbery, which led to a high-speed police chase that ended in a crash that sent him to the hospital.
Gary S. Dorch, 21, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to five years in federal prison without parole.
On March 10, 2015, Dorch pleaded guilty to possessing a firearm in furtherance of a crime of violence. Dorch was a passenger in a Chrysler Sebring that was stolen at gunpoint on Dec. 19, 2013, from a woman at a car wash. A short time later on the same day, still riding in the stolen Sebring, Dorch committed an armed robbery at Public Storage, 9820 Holmes in Kansas City. He stole $80 from the business as well as a wallet, identification and cell phone from an employee.
The Sebring fled the area of the robbery north on Holmes and exited onto I-435 East while being pursued by law enforcement. The Sebring, which refused to stop, was ultimately involved in a vehicular crash near the intersection of Blue Parkway and Elmwood. Dorch and a co-defendant were arrested and officers found a loaded Taurus .40-caliber pistol in Dorch’s front pants pocket. Dorch and his co-defendant were transported to a local hospital for treatment.
Another co-defendant, Randolph E. Wells, 30, of Kansas City, pleaded guilty to participating in a conspiracy to commit robbery and to possession of a firearm in furtherance of a crime of violence, and awaits sentencing. Wells admitted that he, Dorch, and other co-defendants had met earlier that day and discussed the need for a vehicle. They traveled together to the car wash, where a co-defendant carjacked the vehicle, and they agreed to use the stolen vehicle to commit a robbery.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.
Justice Department Settles Disability Discrimination Lawsuit Against University of MichiganRead the Press Release
The Justice Department, along with the U.S. Attorney’s Office of the Eastern District of Michigan, announced today that it has reached an agreement with the University of Michigan under the Americans with Disabilities Act (ADA). The agreement, filed as a consent decree along with a complaint in the U.S. District Court for the Eastern District of Michigan, resolves allegations that the university violated the ADA by failing to accommodate a maintenance employee with degenerative back disease. Specifically, the Justice Department alleged that the university failed to offer the employee, and another employee with a disability, reassignment to available vacant positions for which they were qualified; rather, the employees were required to compete for available positions along with all other applicants. The complaint also alleges that the university engaged in a pattern or practice of disability discrimination by applying a policy that denies reassignment as a reasonable accommodation in violation of the ADA.
Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment. These prohibitions include failing to provide reasonable accommodations, including reassignment, where such an accommodation does not pose an undue hardship.
“It is contrary to the letter and the spirit of the ADA to require disabled employees who need a reassignment as a reasonable accommodation to compete for that assignment,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “As we celebrate the 25th anniversary of the ADA, we recognize its critical impact in the American workplace breaking down barriers for individuals with disabilities. We commend the university for working cooperatively with the department to promptly resolve this matter and affect necessary changes.”
The consent decree, which must be approved by the court, requires the university to pay the employees a total of approximately $215,000 for monetary and compensatory damages, revise the university’s policies on reassignments and transfers, provide training to university staff on Title I of the ADA and file periodic reports with the department.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Jefferson County woman convicted of failure to pay payroll taxesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Patricia Marie Sanderson, 49, of Harpers Ferry, West Virginia, was convicted today of failure to pay payroll taxes, United States Attorney William J. Ihlenfeld, II, announced.
While acting as a manager of Potomac Consulting Services, LLC, a construction planning and consulting firm in Harpers Ferry, Sanderson approved all payments by the company and controlled the company’s bank accounts. Sanderson and the company failed to pay to the Internal Revenue Service nearly $30,000 in payroll taxes withheld from corporate employees.
Sanderson pled guilty today to a criminal Information charging her with one count of “Failure to Pay Tax.” She faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Michael Stein prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigations led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Internet Prescription Drug Company Guilty of Dispensing Medication Without PrescriptionsRead the Press Release
Agrees to forfeit $450,000 from illegal sale of prescription drugs
LOUISVILLE, Ky. – An internet prescription drug company has pleaded guilty in U.S. District Court this week to charges of dispensing prescription drugs without a valid prescription and has agreed to forfeit $450,000 from the illegal sale of the prescription drugs, announced United States Attorney John E. Kuhn, Jr.
According to the plea agreement, Aracoma Drug Company operated a traditional and internet pharmacy located in West Virginia, which provided customers in Kentucky and other states with prescription drugs.
During the period between June 2009, through April 2012, Aracoma electronically received invalid prescriptions from NationalRXRPartners for prescription drugs to be dispensed from prescriptions that were issued from questionnaires completed over the internet. These prescriptions were not issued following the examination of patients by a qualified medical provider, as defined in each respective state.
Aracoma accepted these invalid prescriptions, filled these prescriptions, and then dispensed and shipped these prescription drugs to customers in Kentucky and other states throughout the United States and received payment in return.
At the time, Aracoma was aware that a valid prescription was needed prior to dispensing “prescription only” drugs to customers in Kentucky, West Virginia, and other states.
According to the plea agreement, Aracoma has agreed to pay $100,000 on the date of sentencing, and thereafter, make five payments of $70,000, for the next five years.
This case is scheduled for sentencing before U.S. Magistrate Judge Dave Whalin on November 20, 2015, at 1:30pm in Louisville.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations; the Kentucky State Police; and the West Virginia State Police.
Honolulu Woman Pleads Guilty to Fraud SchemeRead the Press Release
HONOLULU – Jennifer McTigue, age 48, of Honolulu, today pled guilty to conspiring to commit wire fraud, mail fraud, and money laundering, as well as committing wire fraud, mail fraud and money laundering. McTigue pled guilty in federal district court before Senior District Judge Consuelo B. Marshall a day after jury selection for her trial was to have commenced.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, McTigue and codefendants Marc Melton and Sakara Blackwell operated a scheme to defraud lending institutions, buyers of real property and title insurance companies through a process of filing fraudulent mortgage release documents with the Hawaii Bureau of Conveyances. Once the Bureau of Conveyances accepted and filed the defendants’ fraudulent "satisfaction of mortgage" forms, McTigue, Melton and Blackwell were able to market and sell properties at substantial profit, since the lending institution holding the mortgage was never paid its outstanding debt. The scheme resulted in the defrauding of not only mortgage lenders, but also innocent buyers who unwittingly bought properties that appeared to be free and clear but were still subject to the existing mortgages. Documents filed in court allege that the defendants defrauded others of over $3.1 million through the operation of their scheme.
McTigue faces up to five years imprisonment as to one conspiracy and up to ten years imprisonment as to the other; up to 20 years imprisonment for wire fraud and mail fraud charges, and up to to ten years imprisonment on the money laundering charge. McTigue will be sentenced by Judge Marshall on October 26, 2015. Melton and Blackwell previously pled guilty and are to be sentenced by Senior District Judge Charles R. Breyer on September 29, 2015.
The investigation resulting in this prosecution was conducted by the Federal Bureau of Investigation. John A. Michelich, Senior Litigation Counsel of the Fraud Section of the Criminal Division of the Department of Justice, and Assistant U.S. Attorneys Marc A. Wallenstein and Kenneth M. Sorenson handled the prosecution.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OSCAR EDUARDO PENA-TABORA, age 39, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Indictment, on or about March 8, 2015, PENA-TABORA was found in the United States after having been officially deported and removed on or about August 2, 2002.
PENA-TABORA faces a maximum term of imprisonment of two years, followed by one year of supervised release, a fine of $250,000, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for September 2, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Fugitive Arrested in Multi-Million Dollar Investment Fraud SchemeRead the Press Release
BOSTON – A Brazilian national charged with defrauding investors in Massachusetts and elsewhere of more than $12 million was arrested yesterday in Boca Raton, Florida, after evading arrest for more than two weeks.
Daniel Fernandes Rojo Filho, 58, of Orlando, Fla., was charged in a criminal complaint with one count of wire fraud on June 30, 2015. Filho, who did business in Massachusetts and Florida, was arrested coming out of a restaurant in Boca Raton. He had his initial appearance today in U.S. District Court in the Southern District of Florida, and is scheduled to appear again for a bail hearing on July 24.
As alleged in court documents, Filho owns a company called DFRF Enterprises, LLC, which is incorporated in Massachusetts and Florida. Beginning in 2014, Filho and others acting at his direction allegedly began offering people the chance to invest in, and therefore become “members” of DFRF. In solicitations posted in Internet videos, as well as pitches made in person, including a meeting aboard a boat in Boston Harbor, Filho is alleged to have falsely told potential investors that DFRF was engaged in a lucrative, international gold-mining business. Additionally, it is alleged that he misrepresented DFRF’s ties to a consulting company in Brazil and a private bank in Switzerland. It is further alleged that he told potential investors that their principal investments would be 100% insured against losses by a company based in the United Kingdom and Barbados – all of which was untrue.
As further alleged, relying on Filho’s alleged misrepresentations, investors gave Filho and DFRF more than $12 million. Instead of investing the money as promised, however, Filho allegedly took more than $3.5 million himself, spending it on travel, restaurants, and consumer goods -- including approximately $2 million spent on multiple Lamborghinis, a Rolls Royce, a Mercedes, and multiple Cadillacs.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the fraud, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission, which recently filed a separate civil action against Filho in federal court. The United States Attorney’s Office for the Middle District of Florida also assisted in the investigation.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Myers Man Sentenced to More Than Five Years for Possession of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Kevin Charles Kaszynski to 5 years and 10 months in federal prison for possession of child pornography. He pleaded guilty on January 27, 2015.
According to court documents, from at least April 2009, through on or about July 8, 2013, Kaszynski knowingly possessed child pornography. On September 5, 2013, agents obtained a search warrant for his external hard drive and a subsequent forensic analysis of the drive revealed over 7,000 images and over 400 videos of child pornography. The images were sent to the National Center for Missing and Exploited Children, where it was determined that this external hard drive contained many images of real children, and that the images had been produced throughout the United States and other countries.
Furthermore, on January 27, 2014, agents obtained a search warrant for Kaszynski’s E-Machine computer. A subsequent forensic examination of that computer revealed approximately 300 images and 15 videos depicting child pornography.
“HSI will continue investigating child exploitation cases in all its forms,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Our special agents will continue to identify, apprehend and prosecute those who think they can abuse our children and get away with it.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Fort Myers Police Department. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
Former Telemarketing Manager Pleads Guilty to Conspiracy ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Tammie Lynn Cline (33, Leominster, MA) has pleaded guilty to conspiracy to commit mail fraud and wire fraud for her role in the operation of a boiler room. She faces up to 20 years in federal prison. Sentencing has been set for October 9, 2015.
Cline and Mark Gardner (28, Osteen, Florida) were indicted on January 28, 2015.
According to court documents, Gardner and Cline operated a boiler room in Central Florida. Along with the telemarketers who worked at their call center, they would make unsolicited calls to owners of timeshare properties located throughout the United States. During those calls, they claimed that they worked for Universal Timeshare Sales Associates (UTSA) out of Beaverton, Oregon, that UTSA had a purchaser who was interested in buying a timeshare, and that the timeshare owner just needed to pay a fee between $1,600 and $2,200 for the sale to proceed.
In order to convince timeshare owners to pay the fee, Gardner, Cline, and their telemarketers would sometimes claim that an interested purchaser was present in the showroom ready to buy a timeshare, that a buyer had already deposited money into an escrow account for the sale, or that the sale would take place in about 90 days. Those representations were false. The timeshares were not sold as had been promised, and members of the conspiracy would deny or ignore requests for refunds, and would dispute chargebacks with the credit card companies.
In total, victims lost approximately $1.6 million due to the operation of the telemarketing call center.
In May 2013, the Federal Trade Commission and the Florida Attorney General’s Office filed a civil action against Gardner, Cline, and others in federal court. In June 2014, the district court entered a permanent injunction against them related to certain telemarketing practices.
Gardner is set for trial in September 2015. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Representative of Insurance and Investment Company Admits Stealing More Than $650,000 from the Company’s ClientsRead the Press Release
NEWARK, N.J. – A former registered representative of a broker-dealer offering investment products and services, including variable life insurance and annuities, today admitted using his position to steal more than $650,000 from the company’s clients, U.S. Attorney Paul J. Fishman announced.
Kwen Y. Chun, 58, of Midland Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of mail fraud.
According to documents filed in this case and statements made in court:
From September 1998 through June 2014, Chun was employed by the company as a registered agent, with authority to assist clients with withdrawing funds from annuities, applying for deferred annuities, and processing loan requests. Chun diverted funds that belonged to at least eight clients to bank accounts under his control and converted those funds to his own use.
Chun opened a bank account in the name of one client, using the client’s identification without the client’s knowledge or permission. Based upon false representations to the company that the client was requesting withdrawals and loans, Chun caused the company to wire monies from the client’s insurance policies and annuity accounts into the phony account. Chun also admitted that he caused the company to mail numerous checks to his Midland Park residence based upon false representations to the company that at least three other clients had requested to take loans on their insurance policies, which he then deposited into accounts under his control.
Chun admitted to causing other clients to obtain loans from company insurance policies, or to provide him with checks and cash, which Chun falsely advised he would use to open investment accounts on behalf of those clients. Instead, Chun deposited those loan proceeds into bank accounts under his control. He admitted that he provided one of the company’s clients with fabricated statements that purported to show the interest and balance in the client’s fictitious investment account. Chun also provided two other clients with paperwork that purported to illustrate the benefits that they would receive for their alleged annuity investment.
The mail fraud charge to which Chun pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Nov. 2, 2015.
U.S. Attorney Fishman praised inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; criminal investigators with the U.S. Attorney’s Office in Newark; the N.J. Bureau of Securities, Office of the N.J. Attorney General, under the direction of Acting Attorney General John J. Hoffman; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, for the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Joshua P. Cohn Esq., Saddle Brook, New Jersey
Former Postal Inspector Pleads Guilty to Possession of Stolen Mail and Marijuana TraffickingRead the Press Release
SAN JOSE, Calif. — A supervisory postal inspector working at the San Jose Processing and Distribution Center pleaded guilty today to possession of stolen U.S. mail and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Quan Pham Howard, 53, of Saratoga, California, was arrested and charged with theft of mail.
According to his plea agreement, Howard admitted that between late 2010 and June 25, 2014, he unlawfully opened and stole United States mail containing , among other things, quantities of prescription drugs. Further, he admitted possessing a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items. Howard is also charged with possessing over eight kilograms of marijuana with the intent to distribute. During this period, to conceal his theft and trafficking, Howard falsified postal records and disabled a surveillance camera at the distribution center.
Howard also admitted that he attempted to obstruct justice when he became aware of the investigation. On July 2, 2014, Howard contacted a former USPS employee whom he had supervised and attempted to influence the employee’s testimony with instructions regarding what to remember about Howard's prior supervision. In addition, Howard repeatedly contacted one of his former supervisors at the San Jose Postal Inspection Service Office, attempting to get her to support his false explanation for his possession of stolen property.
U.S. Attorney Wagner stated: “When those who are supposed to enforce the law exploit it, they go beyond merely violating the law and damage the trust between law enforcement and the communities we are sworn to protect. We will continue our efforts to nurture that trust by working with our law enforcement partners to vigorously investigate and prosecute such cases.”
U.S. Postal Service Office of Inspector General, Special Inquiries Division, Area Special Agent in Charge Curtis Lembke stated: “This criminal behavior within the Postal Service is not tolerated. The overwhelming majority of Postal Service employees who serve the public are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior.”
This case is the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez, of the Eastern District of California, is prosecuting the case. Because his role as a postal inspector involved Howard in the investigation of cases in the Northern District of California, the U.S. Attorney’s office for the Northern District was recused from this case, which is proceeding in the United States District Court in San Jose.
Howard is scheduled to be sentenced on November 18, 2015, by United States District Judge Lucy H. Koh. Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. The actual sentence, 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.
Former Insurance Company President Sentenced to Prison for EmbezzlementRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; and Deborah Perry, Regional Director of the United States Department of Labor, Employee Benefits Security Administration; announced today that United States District Judge Susan Webber Wright sentenced John Mathis “Matt” Lile, III, age 56, of Little Rock, to one year and one day in federal prison for embezzling more than $100,000 while president of a local insurance company.
Lile was President of the now defunct Cosmopolitan Life Insurance Company, based in Little Rock, which funded and managed self-insurance healthcare plans for small businesses around the State. On September 19, 2014, Lile pleaded guilty to embezzling Cosmopolitan funds. Specifically, Lile admitted that he abused his position by using a company-issued American Express credit card to pay for thousands of dollars in personal expenses over a three-year period, including family vacations to Las Vegas, Florida, and Italy, restaurant supplies, luxury cruises, visits to tanning salons, Hannah Montana concert tickets, and outlet mall shopping sprees.
In addition to the prison sentence, Judge Wright ordered Lile to pay $118,500 in restitution to Cosmopolitan (now in receivership with Arkansas Insurance Department) and to serve three years of supervised release upon the conclusion of his prison term.
“We all need healthcare sooner or later. When the time comes, we rely upon insurance providers to help bear the costs,” said U.S. Attorney Thyer. “We trust that those who run such companies will act in the best interest of their insureds. When they do not, the consequences are far reaching. Matt Lile treated Cosmopolitan like his own personal piggy bank. The United States Attorney’s Office will aggressively pursue anyone who, like Lile, abuses our trust.”
“While Lile held a position of trust and responsibility, he inappropriately took thousands of dollars to finance his own lifestyle, and today’s sentencing makes a strong statement that this type of behavior will not be tolerated,” stated Special Agent in Charge Resch. “We appreciate the efforts made by the United States Attorney’s Office and the United States Department of Labor, and together we will remain vigilant in investigating healthcare fraud.”
“I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector health and pension plans,” said Director Perry.
The FBI and the United States Department of Labor led the investigation. First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Alexander D. Morgan prosecuted the case for the United States.
Former Habersham County Deputy Sheriff Charged for her Role in Flash Bang Grenade IncidentRead the Press Release
ATLANTA – Nikki Autry, a former Habersham County deputy sheriff and special agent of the Mountain Judicial Circuit Criminal Investigation and Suppression Team (“NCIS”), has been indicted by a federal grand jury on charges of providing false information in a search warrant affidavit and providing the same false information to obtain an arrest warrant. Providing false evidence to a judge to obtain a warrant is a federal civil rights violation.
“Our criminal justice system depends upon our police officers’ sworn duty to present facts truthfully and accurately – there is no arrest that is worth selling out the integrity of our law enforcement officers,” said Acting U.S. Attorney John Horn. “In this case, Autry is charged with making false statements to a judge in order to obtain search and arrest warrants. Without her false statements, there was no probable cause to search the premises for drugs or to make the arrest. And in this case, the consequences of the unlawful search were tragic.”
“Integrity is an absolute cornerstone for those who serve in law enforcement and today’s federal indictment of former Deputy Sheriff Autry, sadly, clearly illustrates the results when there is a departure from that ever important core value. The FBI will continue to provide investigative assets and resources toward investigating and presenting for prosecution allegations of law enforcement misconduct as seen here,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“As a result of this investigation, the GBI has partnered with law enforcement and prosecution officials in Habersham County and northeast Georgia to revamp drug enforcement operations in order to prevent incidents such as this in the future.” said Vernon M. Keenan, Director, Georgia Bureau of Investigation.
According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: Autry worked for the Habersham County, Georgia, Sheriff’s Office from 2004 to 2014. On the night of May 27, 2014, Autry and other members of the NCIS team were attempting undercover narcotics buys from various subjects in Habersham County.
Eventually, a brand new NCIS informant and two of his associates – his wife and a roommate – went to a residence located in Cornelia, Georgia. The informant’s roommate, who was not officially working with NCIS, approached the residence and allegedly purchased a small quantity of methamphetamine from an individual unknown to him who was standing outside the residence. There was no police surveillance to verify the purchase. Shortly afterwards, Autry presented an affidavit to a Habersham County magistrate judge falsely swearing that the NCIS informant made the purchase and that the NCIS informant was “a true and reliable informant who has provided information in the past that has led to criminal charges on individuals selling narcotics in Habersham County.”
The federal indictment alleges that Autry knew the NCIS informant had not purchased any methamphetamine from anyone at the residence and the NCIS informant had not proven himself to be reliable in the past. Additionally, the indictment alleges that Autry had not confirmed that there was heavy traffic in and out of the residence. Based on this false information, the magistrate judge issued a “no-knock” search warrant for the residence and an arrest warrant for W. T., who allegedly sold the methamphetamine. The warrant obtained by Autry was executed approximately two hours later, during the early morning hours of May 28, 2014.
During the execution of the search warrant, a Habersham County deputy sheriff tossed a “flash and noise distractionary device,” also known as a flash bang grenade, into a side door of the residence. The flash bang grenade was thrown directly into the room where an 18-month-old toddler was sleeping. The grenade landed inside the toddler’s playpen and critically injured him. The toddler and his family had been staying at the residence for approximately six weeks prior to the search. They are relatives of the lawful occupants of the residence. W. T. was arrested shortly after the flash bang incident at a nearby residence.
Nikki Autry, 29, of Clarkesville, Georgia, will be arraigned by a U.S. Magistrate Judge later this week. The indictment charges Autry with four counts of civil rights violations for willfully depriving the occupants of the residence of their right to be free from unreasonable searches and seizures by a police officer and for knowingly depriving W. T. of his right to be free from arrest without probable cause.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Georgia Bureau of Investigation, and the District Attorney’s Office of the Mountain Judicial Circuit.
Assistant United States Attorneys William McKinnon, Brent Alan Gray and Mary Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former FCI Danbury Employee Sentenced to Prison for Participating in Bribery SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KISHA PERKINS, 43, of Waterbury, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 12 months and one day of imprisonment, followed by one year of supervised release, for participating in a bribe scheme at the Federal Correctional Institution in Danbury (FCI Danbury) where she was employed as a case manager.
According to court documents and statements made in court, in June 2013, PERKINS approached another FCI Danbury employee about an opportunity to participate in a scheme to solicit a cash bribe from an inmate at FCI Danbury in exchange for the inmate’s early release to a halfway house. At that time, PERKINS held the job title of “Unit Counselor” at FCI Danbury and did not have administrative authority to recommend inmates for early release. PERKINS explained that her co-worker was needed to complete the scheme because the co-worker had the administrative ability to recommend inmates for early release.
PERKINS’ co-worker declined to participate in the scheme, reported the incident to law enforcement and agreed to cooperate in the investigation, which included the use of numerous consensually recorded conversations.
In July 2013, under the direction of law enforcement, PERKINS’ co-worker told PERKINS that he/she had changed his/her mind and wanted to participate in the scheme. PERKINS informed her co-worker that a scheme involving the inmate who had been previously identified was no longer feasible. In February 2014, as part of an undercover scenario, PERKINS’ co-worker identified a second inmate as a possible candidate for the bribe scheme. PERKINS agreed to participate and, after extensive planning, on March 8, 2014, PERKINS and her co-worker traveled to a commuter lot off of Exit 28 on Interstate 84 to pick up a partial bribe payment of $5,000 in cash in a fast food bag that, as PERKINS believed, was to be dropped off by an acquaintance of the inmate.
PERKINS was arrested on March 14, 2014.
On April 27, 2015, PERKINS pleaded guilty to one count of acceptance of a bribe by a public official. In pleading guilty, PERKINS specifically admitted that she participated in the scheme and, in February 2014, agreed to accept a pair of shoes or a Louis Vuitton pocketbook in return for counseling the employee regarding the bribe scheme and failing to report the bribe scheme to prison officials.
This matter was investigated by the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Susan Wines.
Former Branch Manager of Bank Who Cashed over $400,000 in Fraudulently Obtained Tax Refund Checks Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN MEJIA was sentenced today in Manhattan federal court to 44 months in prison for his participation in a scheme to cash more than $400,000 in fraudulently obtained federal tax refund checks issued in other people’s names. MEJIA pled guilty to one count of theft of public funds and one count of aggravated identity theft in December 2014 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
According to the allegations in the Complaint and Information filed in this case, and statements made at related court proceedings:
Until March 2014, MEJIA worked at branches of a bank (“Bank-1”) in Yonkers and Manhattan. MEJIA initially was a banker and later became the branch manager of multiple branches of Bank-1. From 2010 through 2013, MEJIA participated in a scheme to fraudulently obtain and cash tax refund checks issued by the United States Treasury. The fraudulent refund checks were generated by the filing of false and fraudulent tax returns in the names of other people (the “Purported Filers”), and the checks were made payable to the Purported Filers. As part of this scheme, MEJIA helped facilitate the cashing of the fraudulent refund checks.
In particular, MEJIA obtained personal identification information for the Purported Filers, including their Social Security numbers and dates of birth. MEJIA then cashed the fraudulent checks himself or by paying a co-conspirator to do so. When cashing a fraudulent check himself, MEJIA presented the refund check, along with the corresponding Social Security number and date of birth of the Purported Filer, to a complicit bank employee. Other times, MEJIA paid a co-conspirator to open bank accounts in the names of the Purported Filers and cash the checks. As part of the scheme, MEJIA cashed, or caused others to cash, more than $400,000 in fraudulent Treasury checks.
In imposing the sentence, Judge Engelmayer told MEJIA: “You played a central role in a fraud that cost the IRS more than $442,000. That was money that the IRS uses to pay for the public good; it pays for first responders, it pays for teachers, it pays for other government employees, it goes to clean our streets, it goes to clean our parks, it goes to fund our military. Tax fraud is a very serious matter. It should be taken every bit as seriously as fraud directed to individual victims.”
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In addition to the term of prison, MEJIA, 31, was sentenced to three years of supervised release and was ordered to pay $442,642.58 in forfeiture and $442,642.58 in restitution.
Mr. Bharara praised the outstanding efforts of the Internal Revenue Service Criminal Investigation Division and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in this investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jonathan Cohen is in charge of the prosecution.
Federal Grand Jury Charges Three Others with Aiding San Antonio Businessman in a Scheme to Defraud Personal Injury ClientsRead the Press Release
Today, a federal grand jury returned a superseding indictment against 46-year-old San Antonio businessman Elpidio Gongora (aka “Pete Gongora”) and three other individuals for their roles in a scheme to defraud personal injury clients. Gongora also faces charges relating to evading payment of more than $1 million in taxes and attempting to hide substantial assets from the Bankruptcy Trustee. That announcement was made United States Attorney Richard L. Durbin, Jr.; Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division; William Cotter, Internal Revenue Service (IRS) Criminal Investigation Acting Special Agent in Charge; and, Judy A. Robbins, U.S. Trustee for the Southern and Western Districts of Texas.
The 17-count superseding indictment charges Gongora; his 48-year-old bookkeeper Rosa Ramirez of San Antonio; 47-year-old Juan Rodriguez of San Antonio; and, 53-year-old Ronald Higgins, former San Antonio attorney and current Sugarland, TX resident, with one count of conspiracy to commit mail fraud. Gongora is also charged with five counts of mail fraud, five counts of bankruptcy fraud, one count of tax evasion and five counts of aggravated identity theft. Ramirez is also charged with five counts of mail fraud and five counts of aggravated identity theft.
According to the indictment, from 2009 through 2014, Gongora, aided and abetted by Ramirez and Rodriguez, operated the law offices of several personal injury attorneys, including the Law Office of Ronald Higgins, in the city of San Antonio and elsewhere in Texas, Arkansas and New Mexico. The indictment alleges that Gongora and Ramirez stole money from these attorneys and their clients by failing to pay monies owed to clients under settlement agreements or to pay obligations for medical treatment and physical therapy after committing to do so. To carry out this scheme, the indictment alleges that Gongora and Ramirez fraudulently endorsed personal injury settlement checks and would hide from the attorneys their failure to pay clients settlement proceeds to which they were entitled. The indictment further alleges that Rodriguez paid money to individuals with insurance and tow truck companies for information pertaining to accident victims. The indictment also alleges that Higgins accepted money in return for allowing Gongora and Ramirez to essentially utilize his law license with impunity and exercised a complete and total lack of oversight.
In 2013, Gongora and his wife filed for Chapter 7 Bankruptcy in the Western District of Texas. The indictment alleges that, in relation to that filing, Gongora failed to disclose to the Bankruptcy Trustee that he owned personal assets that included a 33-foot Chris Craft cabin cruiser; a 29-foot 2005 Seaswirl boat; a 2005 Ford F-150 truck; real property located on Elm Valley in San Antonio; and, a residence located in Aransas Pass, TX.
The indictment further alleges that Gongora willfully attempted to evade paying over $1 million in taxes owed to the Internal Revenue Service for calendar years 2003 through 2005 and 2007 through 2013.
Gongora remains in federal custody after being arrested in April at the San Antonio International Airport. Court summonses will be issued for the other defendants. Upon conviction, conspiracy to commit mail fraud and mail fraud are punishable by imprisonment up to 20 years; bankruptcy fraud, up to five years; tax evasion, up to five years; and, aggravated identity theft, a term of two years.
These charges resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI) and the U.S. Trustee’s Office. Assistant United States Attorney Bud Paulissen is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Elkins man sentenced for unlawful possession of firearmRead the Press Release
ELKINS, WEST VIRGINIA – Johnny Lee Green Jr., 56, of Elkins, was sentenced today to 33 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In 1978, Green was convicted of the felony offenses of “First Degree Murder” and “Using a Weapon in Commission of a Felony.” As a result of those convictions, he is prohibited from possessing firearms. He was discovered in July 2014 in unlawful possession of a 9mm pistol.
Green pled guilty in April 2015 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Eastside gang dismantled in gun and drug arrestsRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler announced today that an Eastside gang has been dismantled as 20 of its members were arrested by federal, state and local law enforcement this morning. Over 525 agents, troopers, officers and support personnel served search and arrest warrants today in early morning raids in some of Indianapolis’ most challenged neighborhoods.
“Protecting our neighborhoods is a shared responsibility of all law enforcement agencies in Marion County,” said Minkler. “Preventing violent crime and holding those accountable who choose to terrorize our community remains one of this office’s top priorities.”
In late 2014, the FBI and IMPD began an investigation into a gang operating on the eastside of Indianapolis known as Block Burners. The gang of approximately 90 members operated in the area of East 42nd Street and North Post Road, which was in the heart of one of the Indianapolis Department of Public Safety’s focus areas. According to law enforcement officials, the Block Burner gang was one of the most violent operating in Indianapolis.
Through various investigative techniques, law enforcement quickly learned that the majority of the gang members were engaged in violence and were distributing pound-quantities of heroin, cocaine, marijuana and prescription pain pills. It was further learned that the gang members would routinely possess illegal weapons to carry out their illegal activities.
Today’s enforcement action included approximately 525 law enforcement personnel, 19 partner agencies and 19 SWAT teams from all around the state of Indiana and the Midwest. Search and arrest teams served 22 federal and state warrants at 32 different locations in two waves. Warrants today produced 21 firearms, multiple quantities of heroin, cocaine, marijuana and prescription pain pills as well as over $53,000 in cash.
Arrested for federal conspiracy to distribute heroin or cocaine include:
- David Williams, 36
- Fred Davidson, 32
- Damon Smith, 19, a/k/a Dumm
- Dustin Murry, 28, , a/k/a D-Rock
- Scott Foor, 34. A/k/a White Boy
- Mark Nelson, 29
- Donte York, 23
- Darrell Stennis, 26
- Aaron Garrett, 22, a/k/a Nanny
- Anthony Burgess, 22
- Brandon Jordan, 27, a/k/a B
- William Davenport, 25
Garrett, Jordan and Murry also face federal charges of possession of a firearm in furtherance of drug trafficking activity.
- Kevin D. Kyner, 32, a/k/a Kevin Leslie, faces federal narcotic and weapons charges.
Arrested for state narcotic and firearms charges include:
- Tremaine Tatum, 22
- William Patterson, 39
- Kevin Johnson, 27
- Dominque Burton, 27
- Khadijah Walker, 34
- Craig Cooper, 18
- Marcus Baxter, 26
- Tommie Jackson, 35
“The FBI recognizes the hard work and dedication of our close partners on the Safe Streets Task Force, to include the Indianapolis Metropolitan Police Department, the Indiana State Police, the United States Attorney’s Office, Fishers Police Department, Carmel Police Department and the Marion County Prosecutor’s Office,” said W. Jay Abbott, Special Agent in Charge of the FBI, Indianapolis. “Together, we conducted an extensive investigation, dedicated significant resources, and utilized a myriad of investigative techniques to disrupt the violent crimes perpetrated by this long standing gang. With today's enforcement action, the leadership, hierarchy, members and support network of this violent gang have been decimated. The citizens of Indianapolis can be assured the streets are safer and the FBI remains vigilant to combat violent crime wherever it may be.”
“We’ve identified key persons and areas entrenched in violence and drug activity within Indianapolis, said IMPD Chief Rick Hite. “Today is a shining example of the collaboration with our Federal, State and local partners while listening to the concerns within our community. These arrests serve as a reminder to those who wreak havoc on our community; that you will be investigated, and you will be arrested.”
“Strategic investigations such as this are key to dismantling the criminal enterprises which contribute to violent crime and illegal drug distribution in our community,” Marion County Prosecutor Terry Curry added. “We appreciate the cooperation of the law enforcement agencies, agents, troopers, officers and prosecutors involved in this investigation.”
Indiana State Police Supt. Doug Carter said, “To successfully conclude an investigation of this magnitude takes an incredible amount of manpower and coordination to ensure the safety of the community at large as well as the police officers executing the warrants.”
According to Michelle Brady who is prosecuting this case for the government, all defendants could spend decades in prison if convicted of all crimes.
A criminal complaint is only a charge and all defendants are considered innocent until proven otherwise in court.
Doctor Sentenced to 21 Months in Prison for Taking Bribes as Part of Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A Middlesex County doctor with practices in Jersey City, New Jersey, was sentenced today to 21 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DelPiano, 55, of Monmouth Junction, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including DelPiano, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $11 million through forfeiture.
According to documents filed in this and related cases and statements made in court:
DelPiano admitted that from October 2005 through March 2013, he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $2,300 per month. In return for a total of $189,175 in bribes, DelPiano’s referrals generated at least $1,752,603.24 in lab business for BLS.
In addition to the prison term, Judge Chesler sentenced DelPiano to one year of supervised release and fined him $10,000. DelPiano must also forfeit $207,500 as part of his plea agreement.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Wick Sollers Esq., Washington, D.C.