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Tuesday 21 July 2015
Mashpee Resident, Former New York Pediatrician Sentenced for Distribution and Possession of Child PornographyRead the Press Release
BOSTON - A former New York pediatrician and resident of Mashpee was sentenced today for distribution and possession of child pornography.
Daniel J. O’Hern, 65, was sentenced today by U.S. District Court Denise J. Casper to 63 months in prison to be followed by five years of supervised release and a fine of $12,500. O’Hern pleaded guilty in April to distribution and possession of child pornography. Following the completion of his sentence, O’Hern will be required to register as a sex offender with the Sex Offender Registration Board.
In May 2014, law enforcement discovered that O’Hern was distributing child pornography when he utilized a public file sharing program to post pictures and videos of minors, between the ages of five and 12 years old, engaged in sexually explicit conduct with adults. In June 2014, federal agents executed a search warrant at O’Hern’s residence and seized multiple computers, external hard drives, hundreds of DVDs and other media storage devices which contained an extensive collection of images and videos depicting children being sexually assaulted by adults. O’Hern was arrested following the execution of the search warrant and has been held in federal custody since that time.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Masphee Police Chief Rodney Collins; and Barnstable Police Chief Paul MacDonald made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys Offices and the Criminal Divisions CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Marietta Industrial Enterprises, Inc. Pleads Guilty to Causing Oil Spill on Ohio RiverRead the Press Release
COLUMBUS, OHIO -- Marietta Industrial Enterprises, Inc. (MIE) pleaded guilty today in U.S. District Court in Columbus to charges related to an oil spill on the Ohio River caused by MIE on October 2, 2013.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Jason D. Wimer, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS), Ohio Attorney General Mike DeWine, and Justin A. Oesterreich, Acting Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA) announced the guilty plea today by MIE in front of U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, MIE owned and operated a barge which was located on the Ohio River, near the MIE facility in Marietta, Ohio. On October 1, 2013, an MIE employee pumped out the ballast tanks of the barge which contained a significant amount of oil, without first checking the tanks. By 11:00 a.m. on the day of the spill, an oil sheen could be seen on the Ohio River approximately 75 feet downstream of the barge.
In the first count of the information, MIE is charged with violating the Oil Pollution Act for negligently causing an oil spill on the Ohio River. Also related to the oil spill, in the second count, MIE is charged with violating the Refuse Act, which prohibits the discharge of oil or oily wastewater from a barge into navigable waters of the United States.
A plea agreement, which has been submitted for the Court’s approval, provides that MIE will be fined $35,000, implement a compliance program, and be placed on probation for one year. In addition, the plea agreement provides that $7,500 of the fine will be paid to the individual who reported the spill to the Coast Guard, and that MIE will make a community service payment of $1,000 to an organization to be named at the time of sentencing.
This case was jointly investigated by the Coast Guard and the U.S. EPA Criminal Investigation Division, all members of the Central Ohio Environmental Crimes Task Force, and is being prosecuted by Senior Trial Attorney Christopher J. Costantini, Special Assistant U.S. Attorney Brad Beeson and Assistant U.S. Attorney J. Michael Marous.
Manhattan U.S. Attorney Announces Charges Against Two Florida Men for Operating an Underground Bitcoin ExchangeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Robert Sica, Special Agent-in-Charge of the New York Field Office of the United States Secret Service, announced today the unsealing of criminal complaints charging ANTHONY R. MURGIO and YURI LEBEDEV with running an unlicensed Internet Bitcoin exchange, which they operated through a phony front-company and, at times, a federal credit union that MURGIO acquired for purposes of the scheme. The defendants were arrested today at their residences in Florida, and are expected to be presented today in federal court in the Middle District of Florida.
According to the allegations contained in the criminal complaints unsealed today in Manhattan federal court[1]:
Since at least late 2013, MURGIO, LEBEDEV, and their co-conspirators have knowingly operated Coin.mx, a Bitcoin exchange service, in violation of federal anti-money laundering (“AML”) laws and regulations, including those requiring money services businesses like Coin.mx to meet registration and reporting requirements set forth by the United States Treasury Department. Through Coin.mx, MURGIO, LEBEDEV, and their co-conspirators enabled their customers to exchange cash for Bitcoins, charging a fee for their service. In doing so, they knowingly exchanged cash for people whom they believed may be engaging in criminal activity. MURGIO and his co-conspirators have also knowingly exchanged cash for Bitcoins for victims of “ransomware” attacks, that is, cyberattacks in which criminals (here, distributors of the ransomware known as “Cryptowall”) electronically block access to a victim’s computer system until a sum of “ransom” money, typically in Bitcoins, is paid to them. In doing so, MURGIO, and his co-conspirators knowingly enabled the criminals responsible for those attacks to receive the proceeds of their crimes, yet, in violation of federal anti-money laundering laws, MURGIO never filed any suspicious activity reports regarding any of the transactions.
In total, between approximately October 2013 and January 2015, Coin.mx exchanged at least $1.8 million for Bitcoins on behalf of tens of thousands of customers. In addition, in the course of the scheme, MURGIO transferred hundreds of thousands of dollars to bank accounts in Cyprus, Hong Kong, and Eastern Europe, and received hundreds of thousands of dollars from bank accounts in Cyprus and the British Virgin Islands, in furtherance of the operations of his unlawful business.
MURGIO, LEBEDEV, and their co-conspirators engaged in substantial efforts to evade detection of their scheme by operating through a phony front-company, “Collectables Club,” and maintaining a corresponding phony “Collectables Club” website. In doing so, they sought to trick the major financial institutions through which they operated into believing that their unlawful Bitcoin exchange business was simply a members-only association of individuals who discussed, bought, and sold collectable items, such as sports memorabilia.
More recently, in an effort to evade potential scrutiny from these institutions and others, MURGIO obtained beneficial control of a New Jersey-based federal credit union (the “Credit Union”) which served primarily low-income local residents. MURGIO then installed LEBEDEV and others on the Credit Union’s Board of Directors, and transferred Coin.mx’s banking operations to the Credit Union, which MURGIO, LEBEDEV and other co-conspirators operated, at least until early 2015, as a captive bank for their unlawful business. At that time, after discovering that substantial payment processing activity was being conducted through the Credit Union, the National Credit Union Administration forced the Credit Union to cease engaging in such activity, and MURGIO thereafter found new, overseas payment processing channels for his unlawful business.
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MURGIO, 31, of Tampa, Florida, and LEBEDEV, 37, of Jacksonville, Florida, are each charged with one count of conspiracy to operate an unlicensed money transmitting business, and one count of operating an unlicensed money transmitting business, each of which carries a maximum sentence of five years in prison. MURGIO is also charged with one count of money laundering, which carries a maximum sentence of 20 years in prison and one count of willful failure to file a suspicious activity report, which carries a maximum sentence of five years in prison.The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the Secret Service. He also thanked the National Credit Union Administration for their assistance with the investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Nicole Friedlander, Sarah Lai, and Eun Young Choi are in charge of the prosecution.Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the criminal complaints 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 complaints, and the description of the complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Charges Against Three Defendants in Multimillion-Dollar StockRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Robert J. Sica, Special Agent in Charge of the US Secret Service New York Field Office (“USSS”) announced today the unsealing of an indictment charging GERY SHALON, JOSHUA SAMUEL AARON, and ZIV ORENSTEIN with orchestrating a scheme to manipulate the price and volume of traded shares in numerous publicly traded stocks by means of deceptive and misleading email campaigns, and manipulative, prearranged stock trading. SHALON and ORENSTEIN were arrested today in Israel by the Israel Police. The United States Attorney's Office will seek their extradition to stand trial in the United States. AARON remains at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants manipulated trading in U.S. securities from overseas, using fake identities to funnel millions of dollars in unlawful proceeds through a web of international shell companies. Using false and misleading spam emails sent to millions of people, these defendants allegedly directed their pump-and-dump scheme from their computers halfway around the world.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Crimes, such as the ones alleged herein, are multinational and complex in nature. The defendants are alleged to have profited in the millions of dollars and defrauded innocent investors for their own gain. The FBI is committed to working with our partners, both foreign and domestic, to ensure the integrity of our markets and protect our communities from fraud and deception, regardless of the scheme, means, or medium.”
USSS Special Agent in Charge Robert J. Sica said: “This case highlights the Secret Service’s investigative skills and our commitment to collaborate with our partners in detecting and dismantling highly sophisticated transnational criminal enterprises targeting the United States. These crimes can have a detrimental impact to our nation’s critical financial infrastructure. The Secret Service, in conjunction with its many law enforcement partners across the United States and around the world, is committed to deploying cutting edge investigative practices and technology in order to bring these offenders to justice.”
In a separate action, the United States Securities and Exchange Commission (“SEC”) announced civil charges against SHALON, AARON and ORENSTEIN.
According to the allegations contained in the indictment unsealed today in Manhattan federal court[1]:
Since 2011, SHALON, AARON, ORENSTEIN, and their co-conspirators have orchestrated multi-million dollar stock manipulation -- or “pump and dump” -- schemes to manipulate the price and trading volume of numerous publicly traded microcap stocks (“penny stocks”) in order to enable members of the conspiracy to sell their holdings in those stocks at artificially inflated prices. In furtherance of the conspiracy, SHALON and AARON partnered with “promoters” who identified the companies whose stock would be targeted for manipulation. In doing so, AARON acted as the scheme’s “front-man,” using the alias “Mike Shields” (including false identification and a Social Security Number belonging to another person) to communicate with the promoters and others at SHALON’s direction. In some instances, at the time SHALON and AARON partnered with the promoters, the targeted companies were already publicly traded, and in other instances, SHALON and AARON worked with the promoters to cause the companies to become publicly traded in furtherance of the scheme. In either case, upon partnering with the promoters, SHALON, AARON and the promoters agreed upon the compensation SHALON and AARON would receive for their role in the scheme, which typically amounted to either hundreds of thousands of dollars, or to shares in the targeted stock that SHALON and AARON typically sold for hundreds of thousands or millions of dollars in profits in the course of the scheme.
Also in furtherance of the conspiracy, the promoters -- along with, at certain times, SHALON and AARON -- acquired control over all or substantially all of the free-trading shares of the targeted stock, that is, shares that the owner could trade without restriction on a national stock exchange or in the over-the-counter market. At certain times, in furtherance of the scheme, when they acquired such free-trading shares, SHALON and AARON held the shares in brokerage accounts in the United States, which were opened in the names of shell companies (the “Brokerage Accounts”) and managed in part at SHALON’s direction by ORENSTEIN under aliases that ORENSTEIN supported with false and fraudulent passports and other false personal identification information.
As a further part of the scheme to defraud, after members of the conspiracy acquired control of a substantial portion of the free-trading shares of the targeted stock, SHALON, AARON, and their co-conspirators artificially inflated the stock’s price and trading volume through two fraudulent and deceptive means. First, certain members of the conspiracy typically executed pre-arranged manipulative trades to cause the stock’s price to rise small amounts on successive days. Second, in connection with that trading, SHALON and AARON began disseminating materially misleading, unsolicited (“spam”) emails – emailing up to millions of recipients per day – that falsely touted the stock in order to trick others into buying it. As orchestrated by SHALON and AARON, these emails contained materially false and fraudulent statements including, for example, (i) that the stock’s recent trading activity reflected legitimate demand for the stock (when in fact, and as AARON and SHALON well knew, the trading activity was caused in whole or in part by the manipulative trading of their co-conspirators) and (ii) that the emails were being distributed and financed by certain third parties when, in fact, and as AARON and SHALON well knew, the emails were being distributed and financed by SHALON, AARON, and their co-conspirators, who controlled all or nearly all of the free-trading shares of the stock.
After causing the stock’s price and trading volume to increase artificially during the days or weeks of the email promotional campaign, members of the conspiracy (including, when they owned shares, SHALON and AARON) began dumping, or selling, their shares in a coordinated fashion, often resulting in huge profits to members of the conspiracy. SHALON and AARON alone earned millions of dollars in illicit profits this way, selling shares of manipulated stocks from the Brokerage Accounts in coordination with their email promotional campaigns and co-conspirators. The co-conspirators’ massive coordinated sales typically placed downward pressure on the stock’s price and caused its trading volume to plummet, exposing unsuspecting investors to significant losses. SHALON and AARON then laundered their criminal proceeds overseas, directing millions of dollars of their criminal profits to a shell company bank account in Cyprus for further distribution in part to another Cyprus-based shell company account owned and controlled by AARON, and to other overseas shell company accounts beneficially owned and controlled by SHALON and other members of the conspiracy.
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For this alleged conduct, SHALON, AARON, and ORENSTEIN are charged with the following offenses, which carry the maximum prison terms listed below:
Count
Defendants
Charge
Maximum Prison Term
One
SHALON, AARON, and ORENSTEIN
Conspiracy to commit securities fraud
Five years
Two
SHALON, AARON, and ORENSTEIN
Conspiracy to commit wire fraud
20 years
Three
SHALON, AARON, and ORENSTEIN
Securities fraud
20 years
Four
SHALON and AARON
Securities fraud
20 years
Five
SHALON and AARON
Securities fraud
20 years
Six
SHALON and AARON
Securities fraud
20 years
Seven
SHALON, AARON, and ORENSTEIN
Securities fraud
10 years
Eight
SHALON, AARON, and ORENSTEIN
Wire fraud
20 years
Nine
SHALON, AARON, and ORENSTEIN
Conspiracy to commit identification document fraud
15 years
Ten
SHALON and AARON
Aggravated Identity Theft
Mandatory two years
Eleven
SHALON and AARON
Conspiracy to commit money laundering
20 years
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
SHALON, 31, of Savyon, Israel, and ORENSTEIN, 40, of Bat Hefer, Israel, are Israeli nationals, and were arrested earlier today at their residences. AARON, 31, a U.S. citizen who resides in Moscow, Russia, and Tel Aviv, Israel, remains at large.
Mr. Bharara praised the investigative work of the FBI, the USSS, and expressed his sincere gratitude to the Israel Police and the Israel Ministry of Justice for their support and assistance with the investigation. He also thanked the SEC.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Nicole Friedlander, Sarah Lai, and Eun Young Choi are in charge of the prosecution.Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
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.
Man Charged in District Court with Firearm OffensesRead the Press Release
St. Thomas, USVI – Achille Heywood, 32, made his initial appearance Monday before U.S. Magistrate Judge Ruth Miller after being charged in a four-count Information with Possession of a Firearm by a Convicted Felon, Possession of Ammunition by a Convicted Felon, Possession with Intent to Distribute Narcotics and Use of a Firearm During the Commission of Drug Trafficking, United States Attorney Ronald W. Sharpe announced. Heywood was released after posting 10% of a $35,000 bond.
According to the Information, which was filed June 16 in District Court on St. Thomas, Heywood was found in possession of a firearm and ammunition after he was convicted in the Superior Court of unauthorized possession of a firearm.
If convicted of Possession of a Firearm by a Convicted Felon or Possession of Ammunition by a Convicted Felon, Heywood faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of Possession with intent to Distribute Narcotics, he faces a maximum sentence of 20 years in prison and $1million fine. For Use of a Firearm during the Commission of Drug Trafficking, Heywood faces a mandatory consecutive sentence of five years in prison.
United States Attorney Sharpe reminds the public that an Information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Louisville Man Sentenced to 24 Months in Prison for Defrauding Two Churches and Several BusinessesRead the Press Release
Ordered to pay $114,018 restitution to the victims
BOWLING GREEN, Ky. – A Louisville man who admitted to defrauding two churches and several businesses was sentenced Thursday, by U.S. District Judge Greg N. Stivers, to 24 months in prison and ordered to pay restitution to the victims in the amount of $114,018 announced United States Attorney John E. Kuhn, Jr.
Timothy Ray Hatler, 59, was charged in a federal indictment on April 16, 2014 with three counts of mail fraud and one count of wire fraud and pleaded guilty to the charges on November 14, 2014.
According to the plea agreement, between March 18, 2011 and September 17, 2013, Hatler falsely represented to the public, through websites and internet postings, that he manufactured and sold light-emitting diode (LED) signs.
Hatler designed a scheme by doing business under various names including SignTech Manufacturing, SkyTech Signs, and Digital View Marketing. Hatler would inform individuals interested in purchasing LED signs that if they provided him with payment by mail or wire, he would provide signs made to their specifications. Hatler opened two bank accounts for the scheme and used a mailbox drop service in Atlanta to forward mail to two Louisville addresses and an address in Scottsville, Kentucky.
On a few occasions, Hatler ordered LED signs from other companies such as Olive LED and Soulphase, shipped the products to his customers, then requested that those customers serve as references for potential future customers. Most customers did not receive the signs they ordered and Hatler admitted to using the money for his personal use and benefit.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the U.S. Federal Bureau of Investigation (FBI).
Laguna Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Anthony Riley, 38, pleaded guilty this morning in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge. Under the terms of his plea agreement, Riley will be sentenced to a federal prison term within the range of 13 to 18 months followed by a term of supervised release to be determined by the court.
Riley, a member and resident of Laguna Pueblo, N.M., was arrested on May 1, 2015, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on March 4, 2015, in Indian Country in Cibola County, N.M. According to the criminal complaint, Riley was charged as a habitual offender based on his two prior domestic violence convictions in Laguna Tribal Court. Laguna Tribal Court records reflect that Riley’s prior convictions occurred in 2005 and 2009, and that the victim was also an intimate partner.
Riley was subsequently indicted on the same charge on May 28, 2015.
During today’s proceedings, Riley pled guilty to the indictment and admitted that on March 4, 2015, he assaulted the victim, his intimate partner by striking her in the head and face with his fists. He also acknowledged his prior tribal court convictions. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kamiah Woman Sentenced for Resisting and Impeding a FBI AgentRead the Press Release
COEUR D'ALENE - Pennie Sue Moffett, 41, of Kamiah, Idaho, was sentenced yesterday to ten months in prison to be followed by three years supervised release for resisting and impeding an officer of the United States, U.S. Attorney Wendy J. Olson announced. Moffett pleaded guilty on April 28, 2015.
According to the plea agreement, on March 27, 2014, Moffett obstructed, resisted and impeded an FBI agent who was engaged in his official duties by kicking the agent as he assisted in a tribal arrest. The plea agreement states the FBI agent did not suffer bodily harm during the incident.
The case was investigated by the Federal Bureau of Investigation (FBI) and Nez Perce Tribal Police.
Justice Department Will Not Challenge AT&T's Acquisition of DirecTVRead the Press Release
The Department of Justice’s Antitrust Division announced today that it will close its investigation into AT&T’s proposed $48 billion acquisition of DirecTV.
This announcement follows a statement by FCC Chairman Tom Wheeler that a final order approving the transaction has been circulated to the Commission.
“After an extensive investigation, we concluded that the combination of AT&T’s land-based internet and video business with DirecTV’s satellite-based video business does not pose a significant risk to competition,” said Assistant Attorney General Bill Baer of the Antitrust Division. “Our investigation benefitted from the Division’s close and constructive working relationship with the FCC. The commitments that the proposed FCC order includes, if adopted, will provide significant benefits to millions of subscribers.”
Johnson County Man Arrested and Detained on Federal Complaint Charging Production of Child PornographyRead the Press Release
WICHITA FALLS, Texas — Ryan Anthony Winner of Olney, Texas, remains in federal custody following his arrest on a federal complaint charging production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Winner, 33, was arrested Monday and made his initial appearance today in federal court in Wichita Falls, Texas, where U.S. Magistrate Judge Robert K. Roach ordered that he remain in federal custody pending a probable cause and detention hearing set for July 28, 2015.
According to the filed complaint, law enforcement learned that an individual, later identified as Winner, had created albums containing images of a minor male on a website that is used by persons interested in exchanging child pornography in order to meet and become trading partners.
Further investigation revealed that Winner had created an account to which he had uploaded files containing suspected child pornography. On July 16, 2015, a search warrant was executed by law enforcement at two residences in Olney – one belonging to Winner and the other to his father.
Winner, according to the affidavit filed with the complaint, advised he had taken photos of MV1 (Minor Victim 1), a minor male in his Sunday school class, and that agents would locate files on his computer depicting sexual encounters between him and MV1. Winner advised that he did not have internet access at his residence and used the internet at his father’s residence. Law enforcement seized Winner’s laptop and files depicting the sexual abuse of a prepubescent minor male were discovered.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the case to a grand jury for indictment. The maximum statutory penalty for the offense as charged is not less than 15 years, or more than 30 years, in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), is investigating, with assistance from the Texas Department of Public Safety and the Young County Sheriff’s Office.
Anyone who may have been victimized related to this case should contact the toll-free tip line to Homeland Security Investigations (HSI) at 1-866-347-2423.
Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Indictment: Eight Defendants Trafficked $1.7 Million Worth of Cocaine in Topeka AreaRead the Press Release
TOPEKA, KAN. - Eight defendants, including six from Topeka, were indicted Tuesday on federal charges of trafficking $1.7 million worth of powder cocaine in the Topeka area, U.S. Attorney Barry Grissom said.
Charged are:
Booker Zachery Johnson, III, 38, Topeka, Kan.
Quinton “Ron” Warner, 39, Houston, Texas.
Huey James Love, 57, Grandview, Mo.
Shanae Ransom, 30, Topeka, Kan.
Christopher McMillon, 32, Topeka, Kan.
Frederick Brooks, 35, Topeka, Kan.
Brannon Smith, 37, Topeka, Kan.
Trena L. Talbert, 48, Topeka, Kan.
All the defendants are charged with one count of conspiracy to distribute more than five kilograms of cocaine. The conspiracy is alleged to have existed from October 2014 to July 9, 2015, in Topeka and elsewhere. In addition, Johnson and Warner each are charged with one count of possession with intent to distribute cocaine.
The indictment seeks the forfeiture of more than $73,000 in cash seized on July 9, 2015, and asks the court for a money judgment of $1.7 million against the defendants, which represents the proceeds of the crime.
If convicted, the defendants face a penalty of not less than 10 years in federal prison and a fine up to $10 million on the conspiracy charge. The possession charges carry a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Topeka Police Department, the Shawnee County Sheriff’s Office, the Lawrence Police Department, the Kansas Highway Patrol, the Drug Enforcement Administration, the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard and Assistant U.S. Attorney Jared Maag are prosecuting.
OTHER GRAND JURY INDICTMENTS
Ignacio Lopez-Gonzalez, 28, Fontana, Calif., is charged with one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute fentanyl and one count of possession with intent to distribute cocaine. The crimes are alleged to have occurred Dec. 8, 2014, in Ellis County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison on each count. The Kansas Highway Patrol investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Gary Matthew Andrus, 43, formerly of Carmichael, Calif., is charged with one count of failing to register as required by the federal Sex Offender Registration and Notification Act. The crime is alleged to have occurred from Feb. 10, 2014, to April 8, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Juan A. Garcia, 32, Exeter, Calif., is charged with one count of distributing methamphetamine. The crime is alleged to have occurred from May 8 to May 18, 2015 in Liberal, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Daniel Vega, 37, Dodge City, Kan., is charged with one count of possession with intent to distribute approximately one pound of methamphetamine, and one count of unlawful possession of an unregistered sawed off shotgun. The crimes are alleged to have occurred July 13, 2015, in Dodge City, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million on the methamphetamine count, and a maximum penalty of 10 years and a fine up to $10,000 on the firearm count. The Dodge City Police Department, the Kansas Highway Patrol, the Kansas Highway Patrol, the Wichita Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Humphrey Ezekiel Etenyi, 31, a citizen of Kenya, is charged with one count of possessing wrongfully obtained documents, one count of unlawful production of an identification document, one count of aggravated identity theft, one count of unlawfully interfering with his removal from the United States, and one count of making a false statement to the government. The crimes are alleged to have occurred in 2015 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Wrongfully obtained documents: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful production of an identification document: A maximum penalty of 15 years and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence.
Unlawful interference with removal: A maximum penalty of four years and a fine up to $250,000.
Making a false statement to the government: A maximum penalty of five years and a fine up to $250,000.
Immigration and Custom Enforcement – Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Kalpeshkumar “Bobby” Patel, 39, is charged with making a false statement to an agent of the U.S. Department of Homeland Security. The crime is alleged to have occurred July 29, 2014, in McPherson, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Domingo Reynoso-Ren, 37, a citizen of Guatemala, and Antonio Pastor-Larios, 24, a citizen of Guatemala, are charged with one count of document fraud, two counts of aggravated identity theft and one count of sale of a Social Security card. The crimes are alleged to have occurred Feb. 6, 2015, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Document fraud: A maximum penalty of 15 years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence.
Sale of a Social Security card: A maximum penalty of five years and a fine up to $250,000.
Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hartville Man Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hartville, Mo., man was charged with an additional count of child sexual exploitation in a federal indictment today.
Edward Penn, 31, of Hartville, Mo., was charged in a two-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a Dec. 9, 2014, federal indictment and adds one count. Penn has been in federal custody since his arrest on Dec. 10, 2014.
Today’s indictment alleges that Penn used a minor, identified as Jane Doe #1, to produce child pornography from Jan. 1, 2013, to Oct. 3, 2014. The indictment contains the original charge of receiving and distributing child pornography over the Internet from Jan. 1, 2013, to Oct. 3, 2014.
The indictment also contains a forfeiture allegation, which would require Penn to forfeit to the government any property used to commit the alleged offense, including his cell phone.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrime Task Force and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Furniture Company Owner Admits Role Running International “Fish” Smuggling OperationRead the Press Release
A Los Angeles-based furniture business, Kaven Company, Inc. (“Kaven”) and its owner, Kam Wing Chan, pled guilty today on charges related to the smuggling of endangered abalone and Totoaba that could have been sold for millions of dollars in China.
The charging documents allege that Chan used Kaven, which was ostensibly an importer of Asian furniture, to purchase endangered fish in Mexico, import them into the United States, and then export them to Asia. For example, in entering guilty pleas, Chan admitted that on one occasion on October 9, 2013, he smuggled into the United States 37 pounds of dried abalone (including the endangered white and black abalone) and 58 Totoaba swim bladders, which had been purchased in violation of Mexican law. The seafood was then illegally exported to companies owned by one of Chan’s relatives in China. Both abalone and Totoaba are prized in Asia where they are considered "culinary delicacies," and often adorn the buffets of festival meals and are served at formal dinners.
As part of their plea agreements, the defendants agreed to forfeit the smuggled wildlife and make restitution to the government of Mexico in the total amount of $55,000 for the loss of the natural resource, and pay fines totaling $14,500.
Background on Totoaba:
Totoaba macdonaldi, also known as Cynoscion macdonaldi, is a species of marine fish. It can grow to more than 6½ feet in length, weigh up to 220 pounds, and live up to 25 years. This marine fish is the largest species within the scaienidae family. It is endemic only to the Gulf of California, the narrow inlet between Baja California and the Mexico’s mainland (also called the Sea of Cortez). During the Totoaba’s spawning season, which runs from approximately March to May each year, Totoaba fish travel to the shallower waters at the mouth of the Colorado River, making them vulnerable to commercial and sport fishermen.Totoaba fish have internal air bladders that help them control their buoyancy in water. These air bladders, also called swim bladders, are highly prized in Asia for a variety of uses: as an ingredient in a specialty soup, for perceived therapeutic and medicinal purposes, and to improve the complexion. Swim bladders from the endangered Totoaba fish can be identified by distinctive tubes that are attached to the bladders. Totoaba fish are protected as an endangered species under the Endangered Species Act (16 U.S.C. § 1531, et seq.) (“ESA”), the Lacey Act (16 U.S.C. § 3731, et seq.), and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). These laws generally prohibit the taking, possessing, transporting, importing, sale, and trade of Totoaba fish.
Based on information law enforcement officers have developed from conversations with researchers in Mexico and Totoaba fish smugglers, the value of Totoaba swim bladders in Mexico is approximately $1,500-$1,800 each. Once imported into the United States, the value increases to $5,000 each. They can be resold for $10,000 to $20,000 apiece in the overseas market.
As it is not legal to fish for Totoaba in Mexico, a poacher cannot risk being caught in possession of the easily-identified body of the endangered fish. It is much simpler to transport only the bladder, which is lighter, smaller, and much more valuable. As a result, PROFEPA (the Mexican federal agency tasked with the protection of endangered species) reports encountering Totoaba taken from the Colorado River, carved open so their swim bladders can be removed, and left to die on the shores.
Background on White Abalone:
White abalone (Haliotis sorenseni) are herbivorous gastropods (the same taxonomic class as snails and slugs) that live in rocky ocean waters. Their shell is oval-shaped and very thin. The bottom of their feet is orange, and the epipodium (a sensory extension of their foot that has tentacles) is a mottled orange-tan. They are generally 5-8 inches (13-20 cm) long, but can grow to as big as 10 inches (25 cm). They weigh about 1.7 pounds (0.8 kg) on average. They were the first marine invertebrate to be listed as endangered under the ESA.Due mainly to overfishing, there has been a 99% reduction in white abalone density since the 1970’s. Once occurring in numbers as high as 1 per square meter of suitable habitat, recent surveys show that densities average 1 per hectare (10,000 square meters) in the Channel Islands off southern California. Although historically there have been millions of white abalone off our coast, recent studies suggest that the current population is approximately 1,600-2,500 individuals. Unfortunately, adults do not occur in high enough densities to successfully reproduce, contributing to repeated recruitment failure and an effective population size near 0.
Background on Black Abalone:
Black abalone (Haliotis cracherodii) are large marine gastropod mollusks found in rocky intertidal and subtidal habitats. Both their "mantle" and "foot" are black. They have 5-9 open respiratory pores along the left sides of their shell and spiral growth lines on the rear. Their tentacles (surrounding their foot and extending out of their shell) sense food and predators. Black abalone are herbivores. They primarily eat giant kelp and feather boa kelp in southern California (i.e., south of Point Conception) habitats, and bull kelp in central and northern California habitats.Black abalone commercial fishing peaked in 1973 at 868 metric tons (nearly 2 million pounds). By 1993, both commercial and recreational fisheries for black abalone closed. Black abalone have experienced significant declines in abundance and have gone locally extinct in most locations south of Point Conception, CA.
Increasing distance among spawning males and females has led to reproductive failure as population density decreases. In addition to disease, black abalone face challenges due to elevated water temperature caused by the thermal discharge of power plants. Other factors responsible for the decline of black abalone are illegal harvest and habitat destruction. Natural predation by a variety of predators (sea stars, the southern sea otter, and striped shore crab) as well as competition with purple and red sea urchins for space also threaten their survival.
DEFENDANTS Case Number: 14-CR-3662-AJB Kaven Company Los Angeles, California Kam Wing Chan Age; 61 Monterey Park, California CHARGESCounts 3 and 6
Smuggling/Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: 20 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Forfeiture in violation of Title 16, United States Code, Section 3374 and Title 18, United States Code, Section 981.
INVESTIGATING AGENCIESNational Oceanic and Atmospheric Administration, Office of Law Enforcement
U.S. Fish and Wildlife Service, Office of Law EnforcementFour Defendants Sentenced After Cooperation in Pinson RICO TrialRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
COLUMBIA, SOUTH CAROLINA –Lance Wright, age 49, of Columbia, South Carolina; Michael Bartley, age 51, of Orangeburg, South Carolina; Robert Anthony Williams, age 57, of Tampa, Florida; and Phillip Mims, age 46, of Columbia, South Carolina, were sentenced today in federal court by United States District Judge David C. Norton. The court heard motions by the government for reduced sentences which detailed the defendants’ cooperation and assistance in the prosecution of United States v. Jonathon Pinson, and then imposed the following reduced sentences:
Wright, Williams and Mims: sentenced to 3 years probation, 3 months in a half-way house, ordered to pay $993,777.65 in restitution and a $200 special assessment.
Bartley: sentenced to 3 years probation, 100 hours of community service and a $100 special assessment.
Wright, Bartley, Williams and Mims had previously pled guilty to the following charges:
Bartley: One count of conspiring to use his influence as Chief of Police of South Carolina State University to promote the sale of property to SCSU in exchange for a gratuity, in violation of Title 18, United States Code, Section 371.
Wright, Williams and Mims: One count of conspiring to steal and convert public funds in violation of Title 18, United States Code, Section 371 and one count of bank fraud in violation of Title 18, United States Code, Section 1344.
The charges in these cases were the result of a joint investigation conducted by the Federal Bureau of Investigation, the U.S. Internal Revenue Service – Criminal Investigations, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the South Carolina Law Enforcement Division. Assistant United States Attorneys Nancy Wicker, Jane Taylor, J.D. Rowell and Dewayne Pearson of the Columbia office prosecuted the case.
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Former Prison Nurse Sentenced for Smuggling Contraband into FCI YazooRead the Press Release
Jackson, Miss - Lavonne Boose, 43, of Benton, a former nurse at the Federal Correctional Institution in Yazoo City, MS, was sentenced today by U.S. Magistrate Judge Linda R. Anderson to 60 days in federal prison followed by one year of supervised release for smuggling a cell phone into the prison, U.S. Attorney Gregory K. Davis announced. Boose was also ordered to pay a $1,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Patrick Lemon.
Former Hopkins County Teacher Indicted on Child Sexual Exploitation ViolationsRead the Press Release
TYLER, Texas – A 38-year-old former Hopkins County school teacher has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lucas R. Hill, formerly of Sulphur Springs, Texas, has been named in a three-count indictment returned by a federal grand jury on July 15, 2015 charging him with producing child pornography, enticing and coercing a minor, and transferring obscene matter to a child younger than 16 years of age.
The indictment was unsealed today and Hill is scheduled to make his initial appearance before U.S. Magistrate Judge Don D. Bush on July 22, 2015.
According to the indictment and information presented in court, earlier this year, law enforcement officials were notified by a family who had discovered that an unknown individual had created an account on the social media site, Facebook, using images of their minor son. An investigation revealed that an individual accessed the account from Hill’s residence in Sulphur Springs, Texas. At the time, Hill was a teacher with the Cumby Independent School District. Hill is alleged to have created the Facebook account under the fictitious name, “Aaron Cage,” and posed as a teenage boy by utilizing photographs of another minor male, without that minor’s knowledge or consent. From at least October 2013, Hill is alleged to have contacted a number of minor females, including children who may have attended Cumby schools, through the fictitious “Aaron Cage” Facebook page. Hill chatted with the females and persuaded them to engage in sexually explicit conduct, including producing images and videos of themselves engaged in sexual activity.
If convicted, Hill faces a minimum of 10 years and up to life in federal prison.
Any minors who may have had contact with “Aaron Cage” are urged to contact Victim-Witness Coordinator Judy Daigle at the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by the U.S. Secret Service, the Hopkins County Sheriff’s Office, and the Sulphur Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Marisa J. Miller.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Former CEO of Bristol Virginia Utilities Authority Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno, along with representatives from the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigations, announced today the latest conviction in the ongoing investigation into corruption at the Bristol Virginia Utilities Authority (BVU).
Today in the United States District Court for the Western District of Virginia, Wes Rosenbalm, 45, of Johnson City, Tennessee, the former CEO at BVU, waived his right to be indicted and pled guilty to a one count Information charging him with conspiracy to defraud the Internal Revenue Service and conspiracy to commit Federal Program Fraud.
“It’s unfortunate when we see people in positions of power abuse those positions for personal financial gains,” Acting United States Attorney Anthony P. Giorno said today. “Their abuses have consequences not only for them, but their families as well. This case demonstrates that the US Attorney’s office and our law enforcement partners will be on the lookout for abuses of power and we will hold accountable those who violate the public trust.”
“Individuals such as Mr. Rosenbalm, that take advantage of the public to line their own pockets will be held accountable," said Assistant Special Agent in Charge Kathryn Montemorra on the Internal Revenue Service- Criminal Investigations. “Abusing positions of trust, is a blight on any community and Mr. Rosenbalm's contributions to this scheme were extensive. Today's plea should be a warning to those involved in criminal activities that they will be held accountable for their actions.”
“Mr. Rosenbalm's solicitation and acceptance of such extravagant "gifts" at the expense of clients demonstrates the unfortunate need for consumers to be aware of and report public corruption at any government level. Public corruption remains our top criminal priority,” said Special Agent in Charge Adam S. Lee of the FBI’s Richmond Division.
According to evidence presented today by Assistant United States Attorney Zachary Lee, Rosenbalm was the CEO at BVU and between January 1, 2003 and January 1, 2014, he and others conspired to defraud the Internal Revenue Service by willfully evading income taxes and conspired to corruptly solicit things of value as a reward for the awarding of contracts to vendors of Bristol Virginia Utilities Authority.
In a statement of facts agreed to by both parties and filed with the court during today’s guilty plea hearing, Rosenbalm admitted to soliciting, and using others to solicit gifts and monetary payments from a variety of vendors that did business with BVU while BVU was receiving federal grant funds. These vendors felt the gifts and other payments they were being asked to provide to BVU had to be provided in order to continue to do business with BVU. Rosenbalm has admitted to soliciting gifts and monetary payments that include, but are not limited to: tickets to University of Kentucky basketball games; $663 for alcohol purchases at a BVU customer appreciation event; $2,850 for a Thanksgiving lunch for BVU employees; $15,000 for the BVU Christmas dinner; $5,500 for the BVU Children’s Christmas party; and $4,125 for a scorer’s table at the school one of Rosenbalm’s children attended. Rosenbalm has agreed to pay $50,000 forfeiture to account for this conduct.
In addition, Rosenbalm admitted to defrauding the IRS by failing to truthfully report income and benefits received by himself and other BVU employees. This unreported compensation and benefits included country club memberships, personal use of BVU vehicles, bonuses paid in cash to employees, and bonuses paid to employees using gift cards. Rosenbalm has agreed, as part of his plea agreement, to pay $150,000 in restitution to BVU for taxes and penalties owed by BVU as a result of his conduct. He also faces a maximum possible sentence of five years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
Former 171st Air Refueling Wing Commander Caught in Scheme to Defraud the U.S.Read the Press Release
PITTSBURGH – A former Guardsmen officer at the 171st Air Refueling Wing in Coraopolis, Pa., has pleaded guilty to conspiring to defraud the United States Air Force and the Air National Guard of tens of thousands of dollars in military pay and benefits, United States Attorney David J. Hickton announced today.
Gerard J. Mangis, 60, of Glenshaw, Pa., pleaded guilty to one count of conspiracy to defraud the U.S. before Senior U.S. District Judge Gustave Diamond.
According to information presented to the Court, Mangis, a Colonel and former Mission Support Group Commander at the 171st Air Refueling Wing, conspired with Robert St. Clair, a contract employee at the National Guard Bureau and former tech sergeant at the 171st, to defraud the United States Air Force in false claims for military pay between 2002 and 2011. In 2002, Mangis appointed St. Clair to a position at the 171st where Mangis arranged for St. Clair to be enlisted at the 171st in a “no show” position, and enable him to avoid performing required guardsman duties such as drill weekends and physical tests, while earning valuable military pay and benefits. In exchange, using his authority at National Guard Bureau at Andrews AFB, St. Clair issued streams of military “workdays” to Mangis, which he used to accumulate excessive active and inactive duty military pay between 2006 and 2011. The estimated loss to the government is up to $70,000.
U.S. Attorney Hickton said, “Pursuing and prosecuting fraud against the government is a priority of the U.S. Attorney’s Office and the FBI, and we remain steadfast in our shared commitment to protect the public trust through the elimination of corruption.”
Judge Diamond scheduled sentencing for Nov. 17, 2015, at 10 a.m. The law allows for a maximum total sentence of five years in prison, a fine of $250,000, or both. Robert St. Clair, who pleaded guilty on April 14, 2014, to a one-count information charging conspiracy to defraud the United States, is scheduled to be sentenced on Sept. 25, 2015 before U.S. District Judge Arthur J. Schwab.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Air Force Office of Special Investigations and the Federal Bureau of Investigation conducted the investigation leading to prosecution of this case.
Florida Man Charged in Manhattan Federal Court with Concealing an Offshore Bank Account in Liechtenstein Worth More Than $1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service’s Criminal Investigation Division (“IRS”), announced today the unsealing of an indictment (the “Indictment”) charging HARRY FALTERBAUER, a United States citizen and resident of Florida, for failing to disclose a bank account worth more than $1 million that he maintained in Liechtenstein, and for lying to federal agents who questioned him about this offshore account. FALTERBAUER was arrested this morning at his residence in Coconut Creek, Florida, and was presented in federal court in Fort Lauderdale, Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, in order to evade taxes, Harry Falterbauer hid from the U.S. authorities a million-dollar offshore bank account he maintained in Liechtenstein. The indictment unsealed today is part of our ongoing efforts, with our partners at the IRS, to ensure that taxpayers do not use a foreign country’s bank-secrecy laws to avoid their tax obligations.”
IRS-CI Special Agent-in-Charge Shantelle P. Kitchen said: “The Internal Revenue Service has made the investigation of individuals who allegedly conceal assets in offshore accounts and who willfully fail to report the income that those accounts generate a priority. Such actions undermine our nation’s tax system and essentially make law abiding taxpayers pay more than their fair share. In a similar way, individuals who allegedly lie to government investigators undermine our nation’s justice system. As a law enforcement agency, IRS-CI will pursue the prosecution of anyone who lies to a Special Agent during the course of a criminal investigation.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:
From approximately 1988 to 2008, FALTERBAUER maintained an undeclared bank account at Liechtensteinische Landesbank AG, a bank based in Vaduz, Liechtenstein (“LLB-Vaduz”). FALTERBAUER opened the account in his own name, presenting his United States passport so LLB-Vaduz could verify his identity. To conceal the connection to FALTERBAUER, the bank then referred to the account exclusively by its account number. In an affidavit provided to the bank in 2003, FALTERBAUER declared that he was a United States citizen and that he was not authorizing LLB-Vaduz to disclose his name to U.S. tax authorities.
The undeclared account generated capital gains and losses from investments. It reached a high balance of more than $1.5 million in approximately 2007, and had a balance of more than $1.1 million before its closure in 2008.
For the calendar year 2008, FALTERBAUER willfully failed to disclose on his tax returns both his interest in the offshore account and the income that account generated. For the same year, FALTERBAUER also willfully failed to file with the IRS a Report of Foreign Bank and Financial Accounts, or FBAR, as the law required him to do.
In 2012, Liechtenstein amended its laws to permit banks to produce documents relating to certain United States taxpayers to the Department of Justice. LLB-Vaduz subsequently provided files from undeclared accounts, including FALTERBAUER’s, to this Office.
IRS Special Agents from Manhattan interviewed FALTERBAUER about the undeclared account in or about April 2013. During that interview, FALTERBAUER falsely stated that he had not opened an account at LLB-Vaduz. After being shown documents indicating otherwise, FALTERBAUER falsely stated that he never reported the account to the IRS because he had opened it for another person whose identity he did not know.
* * *
FALTERBAUER, 59, of Coconut Creek, Florida, is charged with willful failure to disclose an offshore bank account for the calendar year 2008, and with making false statements to IRS Special Agents. Each charge carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of IRS-CI. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for its assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah Paul and David Abramowicz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is 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 herein, constitute only allegations, and every fact described should be treated as an allegation.
Federal Inmate Indicted for Assaulting OfficerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., was indicted by a federal grand jury today for assaulting a federal officer.
Paulino Aparicio, 51, an inmate at the U.S. Medical Center for Federal Prisoners, was charged in an indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Aparicio assaulted a corrections officer at the medical center on April 10, 2015. According to the indictment, Aparicio struck the officer in the face with his fist, fracturing the officer’s nose.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the U.S. Bureau of Prisons.
Federal Inmate Charged with Relatives in Theft SchemeRead the Press Release
PHILADELPHIA – Kenneth Hampton, 54, an inmate of a federal prison, was charged by indictment, unsealed today, with masterminding a scheme under which he and his coconspirators defrauded the City of Philadelphia, the State of Pennsylvania, and innocent owners and purchasers of Philadelphia real estate. The indictment charges one count of conspiracy, eleven counts of wire fraud, and two counts of aggravated identity theft. Charged with Hampton are his son Terrell Hampton, 34, of Philadelphia, PA, and his brother Ellis, 56, of Darby, PA, and fiancée Roxanne Mason, 33, of Philadelphia, both of whom were arrested this morning.
According to the indictment, during the time he was a federal inmate, Hampton led a scheme to file false and fraudulent deeds for residential properties in Philadelphia. Using the prison telephones Hampton would direct other members of the scheme to locate houses, prepare and file false deeds, reside in the properties, and then eventually sell the properties for a profit.
If convicted, the defendants face mandatory minimum terms of two years in prison with a possible advisory sentencing guideline range of between 24 months and 102 months in prison.
The case was investigated by the United States Secret Service and the Office of the Philadelphia Inspector General. It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Employer Indicted for Failing to Hand over Payroll Taxes to IRSRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., was indicted by a federal grand jury in Pittsburgh on charges of willful failure to remit employment taxes, United States Attorney David J. Hickton announced today.
The eleven-count indictment named John H. Johnson, 53.
According to the indictment presented to the court, from July 1, 2013 until December 31, 2014, Johnson failed to remit to the Internal Revenue Service (IRS) the payroll taxes he collected from his employees at Central Anesthesia and Johnny on the Spot, totaling $710,514 in delinquent payroll taxes due and owing by Johnson to the IRS.
The law provides for a maximum total sentence of 55 years in prison and a fine of $110,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to 46 Months in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Michael Centanni, 49, of Washington, D.C., has been sentenced to 46 months in prison for possession of child pornography, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
Centanni pled guilty in January 2015, in the U.S. District Court for the District of Columbia. He was sentenced on July 20, 2015, by the Honorable Senior Judge Thomas F. Hogan. Upon completion of his prison term, Centanni will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a minimum of 15 years.
Centanni was arrested on Oct. 30, 2014 following an investigation by HSI. According to a statement of offense signed by the defendant as well as the government, the investigation determined that Centanni had been using the Internet to obtain child pornography files.
Law enforcement searched Centanni’s residence on Oct. 14, 2014 and seized hard drives and other electronic media. A subsequent examination identified more than 3,000 images and 267 videos depicting child pornography. Centanni has been in custody since his arrest. In an interview with law enforcement, he admitted obtaining images and videos depicting child pornography and storing it on the electronic devices seized during the search.
In announcing the sentence, Acting U.S. Attorney Cohen and Special Agent in Charge Settles commended the work of the HSI Special Agents who investigated the case and expressed appreciation for the assistance of the Metropolitan Police Department (MPD). They also expressed appreciation for the efforts of Assistant U.S. Attorneys Cassidy Kesler Pinegar and Andrea L. Hertzfeld, who prosecuted the case, and Assistant U.S. Attorney Ari Redbord, who assisted in the investigation.
Department of Justice Gives Grant to Utah to Support Substance Abuse Treatment for PrisonersRead the Press Release
SALT LAKE CITY – The U.S. Department of Justice’s Office of Justice Programs has awarded a $72,125 grant to the Utah Commission on Criminal and Juvenile Justice to support substance abuse treatment programs for prisoners.
The funding comes from the Residential Substance Abuse Treatment for State Prisoners Program. This program assists states and local governments in developing and implementing substance abuse treatment programs in state and local correctional and detention facilities and to create and maintain community-based aftercare services for offenders. The goal of the program is to break the cycle of drugs and violence by reducing the demand for, use, and trafficking of illegal drugs.
According to grant documents, Utah will use the funds to implement up to three types of programs, including residential, jail-based, and aftercare. At least 10 percent of the total state allocation this year will be made available to local correctional and detention facilities.
Criminal Complaint Filed Against Jasmine McMichaelRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that Jasmine McMichael, 22 of East Chicago, Indiana was charged with using the threat of force against a witness.
According to documents filed in the case, McMichael, the sister of Anton Lamont James, used threat of physical force against a witness. McMichael, along with her mother Dalia Guerrero, confronted a witness after James was arrested and allegedly made threatening statements to the witness. Dalia Guerrero was indicted on July 16, 2015 for her participation in the same confrontation.
Anton Lamont James was indicted last week for murder in aid of racketeering and was arrested for that offense on the morning of July 16.
United States Attorney David Capp stated, “Witness intimidation in any manner by any person will not be tolerated.”
This case is being investigated by the Federal Bureau of Investigation and Hammond Police Department. The case is being handled by Assistant United States Attorney David J. Nozick.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Conspirator Pleads Guilty to $3.8 Million Mortgage Fraud SchemeRead the Press Release
Baltimore, Maryland –Alberic Okou Agodio, age 30, of Bethesda, Maryland, pleaded guilty today to conspiracy, wire fraud, and aggravated identity theft, arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information, to obtain approximately $3.8 million in home mortgage loans to buy approximately three dozen row houses in Baltimore, all of which are in default or foreclosure.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Olga Acevedo of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“When we are made aware of individuals whose criminal conduct causes financial harm to the public and unnecessary risks to the FHA Insurance Fund we commit whatever resources are necessary to bring these individuals to justice and have them debarred from participation in government programs,” said Special Agent in Charge Cary Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General. “Mortgage fraud investigations can be very labor intensive and we would like to thank our law enforcement partners for their collaborative efforts.”
According to his plea agreement, Agodio agreed to purchase row houses in Baltimore City from co-conspirator Kevin Campbell, who had acquired the houses as part of his real estate business. Agodio purchased the houses at prices far in excess of their actual market value. In return, Campbell kicked back a substantial portion of the purchase price to Agodio, which Agodio used to pay for the down payments and closing costs for most of the properties; to pay a commission to the individuals whom he persuaded to allow him to use their names to purchase the properties (“the straw purchasers”); to pay referral fees to individuals who referred other straw purchasers to him; and to compensate himself for his participation in the scheme. In all, from June 2009 to November 2010, Agodio purchased 35 row houses from Campbell. The financing received on these transactions totaled approximately $3.8 million and Agodio received commission payments from Campbell in excess of $1.2 million.
To perpetrate the scheme, Agodio persuaded approximately three dozen immigrants and students to purchase the row houses under their names. Although none of these “straw purchasers” had any experience in real estate transactions, nor the funds needed to buy the properties, Agodio told each straw purchaser that he would prepare the loan application; manage the property after its purchase by finding renters, collecting the rent and paying the mortgage; and would pay the straw purchaser $7,000 to $8,000 after the transaction closed. He further promised to sell the property in three years and give the individual up to 80% of the sale proceeds. Agodio also paid thousands of dollars in additional commissions to those straw purchasers who referred other individuals to him as potential buyers for similar transactions.
Agodio admitted that he falsely represented in the loan applications the straw purchasers’ assets and earnings, and that the property would be the primary residence of the purchaser. Agodio also provided fraudulent earnings and bank statements for the purchasers, to document the false information provided in the loan application. Agodio provided the necessary funds for the down payment and the buyer’s share of the closing costs, causing the settlement statement form to inaccurately reflect that the down payments and closing costs had been paid by the straw purchasers.
Following the closings, Agodio retained the keys to each property and assumed the responsibility for finding renters and making the required monthly mortgage payments. The named purchasers never lived in the properties. Agodio eventually allowed all of the mortgages to go into default.
After a fire occurred at one of the row house properties purchased through a straw purchaser Agodio falsely identified himself as the straw purchaser to the insurance company in order to collect $106,500 in insurance paid for the repair the property. Agodio cashed the check, which was made out to the straw purchaser and the bank holding the mortgage, and used the funds for his own purposes. Agodio did not notify the bank that the funds to make the repairs to the property had been received, nor did he arrange to make or pay for any repairs to the property.
Kevin Campbell, age 52, of Baltimore, previously pleaded guilty and is scheduled to be sentenced on September 11, 2015 at 9:15 a.m.
Agodio faces a maximum sentence of 30 years in prison for conspiracy and for wire fraud; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge James K. Bredar has scheduled sentencing for October 22, 2015 at 11:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended HUD- OIG, FDIC – OIG, FHFA - OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
Cleveland woman charged with theft of government fundsRead the Press Release
A federal grand jury indicted Selina Scott, 52 of Cleveland today for theft of government funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Scott fraudulently received Social Security Title XVI Supplemental Security Income benefits from March 2006 until May 2014, taking approximately $62,249 to which she was not entitled.
The Social Security Administration Office of Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cincinnati Man Sentenced to Three Years Imprisonment for His Role in Multi-Million Dollar Fraud Scheme in KentuckyRead the Press Release
FRANKFORT — A Cincinnati man has been sentenced to three years in federal prison after pleading guilty to his role in a Kentucky oil investment scheme that defrauded over 200 victims nationwide out of more than $3,000,000.
On Monday, U.S. District Judge Gregory F. Van Tatenhove sentenced Michael Hicks for mail fraud. As Hicks admitted, and as shown by evidence at the trials of Hicks’s co-defendants, from 2012 to 2014, Hicks was part of a scheme that used high-pressure telephone calls to sell investments in oil wells, located in in Barren, Monroe, and Cumberland Counties in Kentucky, to victims around the country.
These sales presentations included fraudulently guaranteed and exaggerated oil production numbers, and failed to disclose material facts and risks about the investments. Members of the scheme avoided detection by using false names when communicating with investors, repeatedly changing their company’s name, and shifting addresses between Bowling Green, Louisville, Covington, Nashville, and Los Angeles. Every investor lost all or nearly all of their investment.
As part of his guilty plea agreement, Hicks admitted that he willingly joined the scheme, opened bank accounts in various names, operated mailing addresses in various names, cashed or deposited investor checks made out to various company names, and then withdrew and mailed the victims’ money to his co-defendants in California.
Hicks also agreed to testify against his co-defendants John Westine and Henry Ramer, who were each convicted of mail fraud, securities fraud, and money laundering conspiracy, in separate jury trials in January 2015 and May 2015. Westine, Hicks’s half-brother and a resident of Malibu, Calif., was a leader of the scheme. Ramer, another leader of the scheme, worked as a salesman and manager of two Los Angeles-based telemarketing sales operations. A fourth member of the scheme, Mark Cornell, a local Kentucky oil well operator who assisted the conspiracy by exaggerating his oil production numbers, pleaded guilty to securities fraud in March 2015. These three other defendants will be sentenced by the samejudge in August and September.
Under federal law, Hicks must serve at least 85 percent of his prison sentence. Hicks will be placed under the supervision of the U.S. Probation Office for an additional three years after his prison sentence, and was also ordered to pay over $3,000,000 in restitution to his victims.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Dugan Wong, Inspector in Charge of the U. S. Postal Inspection Service; and Charles Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly announced the sentence.
The investigation started when investors submitted complaints to the Kentucky Department of Financial Institutions, Division of Securities. The investigation was conducted by the U.S. Postal Inspection Service, including Postal Inspector Roberta Bottoms, and the Kentucky Department of Financial Institutions, Division of Securities.
Assistant U.S. Attorneys Ken Taylor and Neeraj Gupta prosecuted these cases on behalf of the federal government.
Canton man charged with bank robberyRead the Press Release
A federal grand jury returned a one-count indictment charging Thomas Lee Jones, 25, of Canton, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on June 16, 2012, Jones robbed the PNC Bank located at 2800 Whipple Avenue, NW, Canton, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Stark County Sheriff’s Office and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Fugitive Who Shot at Swat Agents Sentenced to over 18 Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. – A California fugitive who shot multiple times at federal agents as they were attempting to serve an arrest warrant on him at an apartment in Las Vegas in May 2013, was sentenced today to 225 months in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and FBI Assistant Special Agent in Charge for Nevada Patrick Brodsky.
Rene Alexander Dendaas, 39, of West Covina, Calif., was sentenced by U.S. District Judge Andrew P. Gordon. Dendaas pleaded guilty on Jan. 21 to one count of assault on a federal officer and one count of use of a firearm during and in relation to a crime of violence.
“This case demonstrates the danger that law enforcement agents and officers face each and every day in doing their jobs,” said U.S. Attorney Bogden. “Fortunately, the defendant was arrested, and despite the many shots he fired at law enforcement, the situation was resolved with no one being seriously injured or killed.”
According to the plea agreement, on May 21, 2013, four FBI SWAT Team Agents in Las Vegas went to an apartment on East Karen Avenue in Las Vegas to arrest Dendaas, who was wanted on homicide charges in San Bernardino. As the agents announced their presence at the door of the apartment and attempted to gain entry, Dendaas fired eight or nine gunshot rounds through the door at the agents, who were using ballistic shields. The SWAT agents again announced their presence, and Dendaas fired at them again through the door. One SWAT agent returned fire, and Dendaas fired again, with several of his rounds entering other apartments in his building and in an adjacent building. The four SWAT agents then escaped the area. One of the agents suffered minor injuries from Dendaas’ gunshots. Negotiators talked with Dendaas throughout the night, and at about 2:00 a.m., they introduced tear gas into the apartment and Dendaas exited and was taken into custody.
“This sentence demonstrates the importance and effectiveness of the FBI SWAT team and the FBI-led Criminal Apprehension Team (CAT), and more broadly, of law enforcement coordination and collaboration in apprehending and prosecuting violent fugitives,” said Assistant Special Agent in Charge Brodsky. “The FBI will continue to work with our partners to ensure these violent criminals are captured and brought to justice.”
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.
Baltimore Man Sentenced to 10 Years in Prison for Three Armed Robberies Committed in Less than a MonthRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rodney Smith, age 51, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for conspiring to commit three armed robberies and using and brandishing a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Smith’s plea agreement, from September 2013 through October 11, 2013, Smith conspired with Derek Roberts to commit armed robberies at a fast food restaurant, a drug store and a gas station.
According to their plea agreements, on the morning of September 15, 2013, Smith and Roberts went to a fast food restaurant in Rosedale, Maryland, and waited for an employee to arrive. When the employee arrived to open the store Smith and Roberts approached him. Roberts pointed a loaded gun at the employee and pushed him into the store. Roberts tied up the victim and demanded money from the cash register. Roberts and Smith stole approximately $200 from the restaurant. On September 27, 2013, Smith and Roberts robbed a drug store in Havre de Grace. When two employees began closing the store, Roberts pointed a loaded gun at the employees and forced them into the store, where he and Smith tied up the victims and demanded money. One of the victims opened the store safe and Smith took money from the safe. Smith and Roberts stole $3,400 from the store, several cartons of cigarettes and a purse belonging to one of the victims. On October 3, 2013, Smith and Roberts drove from Maryland to a gas station in Fredericksburg, Virginia. An employee let Smith and Roberts into the store and Roberts pointed a loaded gun at the victim. Roberts instructed the victim to go to a back room and lay on the ground, and demanded money. Smith and Roberts stole approximately $200, cartons of cigarettes and beer from the gas station.
Derek Roberts, age 45, of Baltimore, pleaded guilty to his role in the robberies and was sentenced to 19 years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and thanked Cecil County State’s Attorney Ellis Rollins, Baltimore City State’s Attorney Marilyn J. Mosby, and their offices for their assistance in the prosecution. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Bakersfield Man Indicted for Laser Strikes on Police Helicopter and Possessing 7 BombsRead the Press Release
FRESNO, Calif. — Earlier today an indictment was unsealed charging Pablo Cesar Sahagun, 26, of Bakersfield, in connection with laser strikes of a police helicopter and possessing seven bombs, United States Attorney Benjamin B. Wagner announced. The indictment was returned by a federal grand jury on July 16, 2015.
Sahagun was charged with aiming the beam of a green laser pointer at Air-1, a Kern County Sheriff’s Office helicopter. According to court documents, the laser pointer was key‑activated and was labeled a Laser 301, a device which purports to have strong burning capabilities. Sahagun was also found to be in possession of seven CO2 cartridge or cricket bombs. Cricket bombs are improvised explosive devices which can kill or seriously injure people.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration received 3,894 reports of incidents of laser strikes on aircraft. In the Eastern District of California, there were 150 reported incidents last year, with the majority in Bakersfield, Fresno, and Modesto. Lasers can incapacitate pilots, endangering their crew members, passengers and people on the ground.
This case being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Sahagun is scheduled for an initial appearance on the indictment today before U.S. Magistrate Judge Jennifer L. Thurston in Bakersfield. He faces a prison term of five years and a fine of up to $250,000, if convicted of aiming the beam of a laser pointer at an aircraft. If convicted of the bomb charge, Sahagun faces an additional 10 years in prison and a fine of up to $10,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If you have information about a lasing incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
After Nearly 20 Years, International Fugitive in Multi-Million Dollar Fraud Scheme Apprehended in Greece and Extradited to United States to Serve Prison SentenceRead the Press Release
A former New York businessman, who disappeared the same day a federal jury sitting in the U.S. District Court in Newark, New Jersey, began deliberating in his tax evasion and fraud trial, was caught while in Greece more than 18 years after his conviction, and appeared in federal court in the District of New Jersey on Friday, July 17, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Gideon Misulovin, 58, whose last known address was in New York City, was extradited from Greece to the United States to serve his 10-year prison sentence. He has been incarcerated in the United States since his return on July 16.
On March 7, 1996, a jury convicted Misulovin of conspiracy to impede and impair the Internal Revenue Service (IRS) in the ascertainment and collection of more than $6.5 million in federal motor fuel excise taxes, wire fraud and money laundering stemming from a scheme to conceal the unpaid diesel fuel excise taxes from state and federal tax authorities.
During trial, Misulovin was free on $500,000 bail and attended each day of the trial. He failed to appear in court March 4, 1996, for the parties’ closing arguments. U.S. Senior District Judge Dickinson R. Debevoise of the District of New Jersey in Newark issued a warrant for his arrest. On June 25, 1997, Judge Debevoise sentenced Misulovin in absentia to serve 10 years in prison and a three-year term of supervised release, and to pay a $150,000 fine. The court also ordered Misulovin to pay restitution in the amount of $200,000 to the United States and $100,000 to the state of New Jersey.
The evidence at trial established that from 1988 through Jan. 31, 1993, Misulovin and his co-conspirators sold untaxed diesel fuel in a series of paper transactions using wholesale companies. Some of the companies were shams and called “burn” or “butterfly” companies. As part of the scheme, the sham company would assume the federal and state tax liability and then vanish, allowing the conspirators to keep the excise taxes they collected from truck stops and service stations.
The case, part of a then-nationwide motor fuel excise tax enforcement effort, was investigated jointly by the Motor Fuel Task Force and the U.S. Attorney’s Office of the District of New Jersey. In an effort to infiltrate the bootleg gasoline industry, task force agents set up an undercover business called RLJ Management that competed directly with the defendants’ operation.
At the conclusion of the undercover operation, in November 1992, federal agents seized Misulovin’s assets, including approximately $70,000 in cash from his residence and $277,000 from his business bank account.
Misulovin’s co-defendant and co-conspirator, Arnold Zeidenfeld, of Brooklyn, New York, pleaded guilty prior to trial and testified for the government. Gurmit Singh and Manbir Singh, of Matawan, New Jersey, who operated truck stops in southern New Jersey, also pleaded guilty for their roles in the scheme.
In August 2014, based on an Interpol Red Notice, Misulovin was detained in a Greek airport using an alias and traveling with an Israeli passport. He was subsequently arrested pursuant to a U.S. request for a provisional arrest, and after contested extradition proceedings, was found extraditable in 2015.
The task force included attorneys from the Tax Division and agents from the IRS Criminal Investigation and Examination Divisions, the FBI, the U.S. Department of Transportation and the New Jersey State Department of Taxation and Finance. Seth D. Uram, formerly a Trial Attorney in the Tax Division and now an Assistant U.S. Attorney in Portland, Oregon, and Trial Attorney Charles A. O’Reilly of the Tax Division prosecuted the case.
Acting Assistant Attorney General Ciraolo thanked the Department of Justice’s Office of International Affairs, the FBI’s New Jersey Field Office and the Greek Ministry of Justice for their assistance in apprehending and extraditing Misulovin. Ciraolo also thanked the U.S. Attorney’s Office of the District of New Jersey for their substantial assistance.
Accountant Charged with Embezzling Nearly $130,000 from the Illinois Medical District CommissionRead the Press Release
CHICAGO — A senior accountant at the Illinois Medical District Commission embezzled nearly $130,000 from the agency by directing funds into her personal accounts while fraudulently claiming the payments had been sent to the agency’s energy provider, according to a federal criminal complaint unsealed today.
CYNTHIA FERNANDEZ-ALONSO, 42, of Berwyn, was arrested by FBI agents this morning. She was charged with embezzlement in a criminal complaint filed yesterday in U.S. District Court and unsealed after the arrest. She is scheduled to make an initial court appearance at 11:00 a.m. today before U.S. Magistrate Judge Sheila Finnegan.
According to the complaint affidavit, Fernandez-Alonso worked as a senior accountant for the Illinois Medical District Commission, a governmental agency that receives federal funds to facilitate collaboration among the various medical, health and social service agencies operating within the Illinois Medical District on Chicago’s Near West Side. Fernandez-Alonso had the sole responsibility of authorizing payments from the Commission’s bank account to its outside vendors, including Constellation Energy, the Commission’s electrical and natural gas supplier, according to the complaint affidavit.
From February 2014 to at least April 2015, according to the affidavit, Fernandez-Alonso used her position to direct payments from the Commission’s bank account into two personal checking accounts. Fernandez-Alonso recorded the payments in the Commission’s internal records, but attributed them as having been sent to Constellation Energy, according to the affidavit.
The affidavit describes how Fernandez-Alonso arranged for 32 separate direct deposits into her personal accounts at Bank of America and Chase Bank, totaling $129,487. On the same day she received one such deposit – for $4,852 on Dec. 10, 2014 – a purchase was made with her Chase debit card at Kay Jewelers for $2,847, the affidavit states.
The charge of embezzlement from a program receiving federal funds carries a maximum penalty of 10 years in prison and a $250,000 fine, as well as mandatory restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrest and complaint were 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.
The government is being represented by Assistant U.S. Attorney Maureen E. Merin.
The public is reminded that a complaint 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.
Complaint
Monday 20 July 2015
Two Men Sentenced for Clean Air and Clean Water Act ViolationsRead the Press Release
SIOUX CITY, IOWA – An Iowan and a Nebraskan will each serve prison time for violating provisions of the Clean Air Act and Clean Water Act.
Clean Water Act Violation
Michael J. Wolf, age 58, from Remsen, Iowa, received a sentence including six weekends in prison after a December 16, 2014, guilty plea to one count of knowingly discharging a pollutant into a waterway of the United States. The discharge resulted in a fish kill. At the plea and sentencing hearings, the United States presented evidence that on October 23 and 24, 2012, Wolf, while he was the maintenance manager at Sioux-Preme Packing, intentionally discharged biological materials and agricultural wastes (e.g., blood, fecal material, animal guts, cleaning chemicals, etc.) from one of Sioux-Preme’s waste lagoons into a tributary of the West Branch of the Floyd River.
The discharge lasted more than 11 hours. It fouled over 11 miles of river, downstream from the lagoon. It killed over 190,058 fish of various species (with a value of $20,282.94) and caused the State of Iowa to expend more than $5,000 in response costs. One witness to the fish kill described watching fish jumping out of the water and racing around to avoid the deadly plume. Wolf lied to members of the Iowa Department of Natural Resources’ Emergency Response team attempting to ameliorate the effects of the spill. This delay likely worsened the effects of the spill.
Clean Air Act Violation
Larry Wolf, age 54, from Dakota City, Nebraska, received a sentence including a year and a day in prison after a December 17, 2014, guilty plea to one count of knowingly violating the work practice standards of the Clean Air Act by failing to thoroughly inspect the old -more-Sioux City YMCA to ascertain the amount of asbestos, and whether that amount was sufficient to subject the demolition project to regulation.
At the plea and sentencing hearings, the United States presented evidence that Wolf knew the building contained asbestos and regulated asbestos-containing material and that he had even received an asbestos abatement estimate for the building.
Despite knowing the old YMCA building contained asbestos, defendant directed friends, family, and others to, disturb, renovate, remove, and dispose the asbestos and regulated asbestos-containing material and help him personally do so. Defendant took at least 19,514 pounds of scrap metal from the old YMCA and was paid at least $30,477.54 from one particular scrap yard for it. Defendant boasted he had made $80,000.00 or more from the old YMCA in this way. When defendant was questioned by Special Agents of the United States Environmental Protection Agency, he lied telling them he had only removed naked materials from the facility.
United States Attorney Kevin W. Techau commented: “Environmental crimes that involve polluting air and Iowa’s water are serious matters. These cases show that violations of our environmental laws are taken very seriously because they impact our communities both now and in years to come. These sentences show that if you commit environmental crimes you will be prosecuted. I offer my congratulations to all of our partners in these cases.”
Sentencing
Michael J. Wolf was sentenced in Sioux City by United States District Court Judge Mark W. Bennett for his violation of the Clean Water Act. He was sentenced to six weekends of imprisonment and a one-year term of probation. A special assessment of $100 was imposed.
Larry Wolf was sentenced in Sioux City by United States District Court Judge Mark W. Bennett for his violation of the Clean Air Act. He was sentenced to 12 months and one day imprisonment and a two-year term of supervised release following his imprisonment. A special assessment of $100 was imposed.
Michael J. Wolf and Larry Wolf are not related.
These two cases were investigated by the United States Environmental Protection Agency and the Iowa Department of Natural Resources and were prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov. The case file numbers are CR14-4091 (Michal J. Wolf), and CR14-4055 (Larry Wolf).
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Two Former Bellevue Residents Who Allowed Apartment to be used for Drug Manufacturing Sentenced to Three Years in PrisonRead the Press Release
Two men who invited a third man to use their Bellevue, Washington apartment for the illegal manufacturing of hash oil were sentenced to prison today in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes. JESSE D. KAPLAN, 32, of Redmond, Washington and Daniel James STRYCHARSKE, 29, of Kirkland, Washington were each sentenced to three years in prison and three years of supervised release. Last month the lead defendant in the case, David Richard Schultz, II, 33, was sentenced to nine years in prison. Schultz was using highly explosive butane gas to make hash oil in the Hampton Greens Apartment complex on November 5, 2013 while the other two apartment residents were sleeping. The gas exploded and numerous people in the apartment complex were injured fleeing the fire. One of them, a former Mayor of Bellevue, died following treatment for injuries sustained while trying to escape the building.
“As I emphasized when the lead defendant was sentenced, this case tragically demonstrates why BHO extraction operations are so dangerous,” said U.S. Attorney Annette L. Hayes. “Just like the meth labs we have worked so hard to eradicate, hash oil labs involve dangerous solvents and pose a serious risk of death and property damage.”
At the sentencing hearings U.S. District Judge James L. Robart said, “What moves the court is the loss of life, the permanently disabling and significant injuries the people received all because they lived in an apartment building with these defendants….who undertook this incredibly reckless and dangerous activity.”
According to records filed in the case, KAPLAN and STRYCHARSKE rented the apartment and allowed Schultz to set up the BHO manufacturing equipment in their space. The men planned to sell the BHO for profit. All three men suffered injuries in the explosion. Former Bellevue Mayor Nan Campbell was hospitalized for a broken pelvis she suffered trying to escape the flames. She later died following complications from her hospitalization. Two other apartment residents suffered shattered bones as they had to jump from their upper level apartments. In all the fire caused more than $2 million in property damage. The total amount of restitution owed by these defendants will be finalized by a hearing scheduled for September 21, 2015.
Judge Robart determined an upward departure from the sentencing guidelines was warranted for the defendants in the case because of the severe damage to the community. “I am troubled that the conduct was motivated by greed – the money that could be made by manufacturing hash oil,” Judge Robart said. He added that prison sentences may deter others from getting involved in butane hash oil manufacturing.
This case was investigated by multiple local and federal agencies, including: the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, and the Bellevue Police and Fire Departments.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Two Colombian Citizens Sentenced for Their Participation in an International Money Laundering ConspiracyRead the Press Release
Two Colombian citizens were sentenced for their participation in an international money laundering conspiracy. Leonardo Forero Ramirez, 59, was sentenced to 37 months in prison, followed by one year of supervised release. Ubaner Alberto Acevedo Espinosa, 32, was sentenced to 18 months in prison, followed by one year of supervised release.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
The defendants each previously pled guilty to one count of conspiracy to commit money laundering.
According to court documents, both Acevedo and Forero were Colombian citizens residing in Bogota. During 2008 and 2009, Acevedo handled customer accounts at a stock brokerage firm that offered accounts which could be used by customers to receive deposits, wire transfers, and other credit or money, and to disburse the funds through wire transfers and cash or other withdrawals. The stock brokerage firm was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions. Forero was one of Acevedo's customers.
During the course of his participation in this scheme, Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Acevedo was involved in the transfer of approximately $335,000 from IRS undercover accounts in the United States to the stock brokerage firm in Colombia, and the conversion of the dollars into pesos and the subsequent withdrawal of the monies by Forero. Both Acevedo and Forero knew that the money was derived from criminal activity.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Carbondale Residents Sentenced on Methamphetamine OffenseRead the Press Release
On July 14, 2015, James C. Leming, 54, and Dawn E. Unterfer, 45, both of Carbondale, IL, were sentenced for their involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Leming and Unterfer, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, were sentenced to 87 months and 78 months in federal prison, respectively. Both were also placed on 3 years’ supervised release and fined $300. The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Leming and Unterfer were involved with each other and others in the manufacture of methamphetamine. Both co-defendants purchased pseudoephedrine for others to use in the manufacture of methamphetamine. At the sentencing hearings, the district court found that Leming was responsible for the illegal possession of 229 grams of pseudoephedrine and that Unterfer was found responsible for the illegal possession of 253 grams of pseudoephedrine. Seven co-defendants have previously been sentenced for their involvement in the methamphetamine conspiracy. Three co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three Appear in Federal Court on Firearms ChargesRead the Press Release
FRESNO, Calif. — Juan Valenzuela, 34, and Ernie Rodriguez, 39, both of Fresno, and Anthony Rodriguez, 32, of Modesto, appeared before U.S. District Judge Lawrence J. O’Neill today on federal firearms charges, United States Attorney Benjamin B. Wagner announced.
Valenzuela was sentenced to three years in prison for possessing a firearm after a conviction for a domestic violence misdemeanor. Judge O’Neill commented on the Valenzuela’s lengthy history of domestic violence offenses, and said that the he was lucky in this case that no one was harmed by the bullets discharged from his gun. 1:14-cr-131-LJO
Ernie Rodriguez, 39, pleaded guilty to being a felon in possession of a firearm. His sentencing is set for October 13, 2015. 1:15-cr-008-LJO
Anthony Rodriguez was sentenced to four years in prison for being a felon in possession of a firearm and ammunition. 1:15-cr-035-LJO
U.S. Attorney Wagner stated: “Any time a firearm is taken out of the hands of a criminal, our neighborhoods are safer. As seen in these cases, Project Safe Neighborhood brings together federal and local law enforcement to combat gun and gang crime. Increased federal prosecution seeks to incapacitate chronic violent offenders and communicates a credible deterrent threat to potential gun offenders.”
“ATF’s primary mission is to reduce violent crime and in doing so protect the citizens of our communities,” said Acting Special Agent in Charge, Eric D. Harden. “We will continue to aggressively pursue these repeat offenders with our law enforcement partners and remove dangerous weapons from their grasp and hold them accountable for their crimes.”
These cases resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, the Fresno Police Department, the Modesto Police Department, and the Mendota Police Department. The cases are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly Sanchez is prosecuting Juan Valenzuela and Ernie Rodriguez. Assistant U.S. Attorney Vincenza Rabenn prosecuted Anthony Rodriguez.
Rodriguez faces up to 10 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.
Tennessee Man Sentenced for Stealing Government PropertyRead the Press Release
ABINGDON, VIRGINIA – A Laurel Bloomery, Tenn. man, who pled guilty to a pair of counts related to the theft of government equipment, was sentenced today in the United States District Court of the Western District of Virginia in Abingdon.
John Riley Morefield, 33, of Laurel Bloomery, Tenn., previously pled guilty to one count of aiding and abetting the possession, concealment and storage of a motor vehicle which had cross state lines after being stolen and one count of stealing two government license plates from a Department of Agriculture vehicle. Today in District Court, Morefield was sentenced to eight months imprisonment.
According to evidence presented at previous hearings by Assistant United States Attorney Jennifer Bockhorst, on August 25, 2014, a contractor’s backhoe, valued at $31,915, was stolen from the Virginia Creeper Trail in the Jefferson National Forest in Washington County. Approximately one month later the backhoe was recovered from property near Morefield’s residence in Tennessee. When approached, Morefield admitted to officers that the backhoe was there and he showed them where it had been hidden in the woods and covered with fresh cut pine trees. Morefield stated that the backhoe had been stolen by an acquaintance.
While on the property, officers also recovered two stolen US government license plates, which had been taken from a bulldozer owned by the United States Forest Service at the Mount Rogers Ranger District of the Jefferson National Forest in Virginia. Morefield admitted to taking the license plates.
The investigation of the case was conducted by the Washington County, Virginia Sheriff’s Office, the Johnson County, Tennessee Sheriff’s Office, and the United States Forest Service. Assistant United States Attorney Jennifer Bockhorst prosecuted the case for the United States.
Ten People Charged in Northeast Alabama Conspiracy to Distribute MethRead the Press Release
HUNTSVILLE -- Two illegal aliens serving time in Georgia state prisons and using contraband cell phones directed at least eight people in northeastern Alabama and Chattanooga to carry out a conspiracy to traffic methamphetamine, federal and local officials announced today.
Eight people now face a federal indictment that they conspired to traffic 50 grams or more of the illegal drug in Cleburne, Etowah, Marshall and DeKalb counties from December 2013 through May this year. A ninth individual faces a separate distribution count in the indictment. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger Stanton, Etowah County Sheriff Todd Entrekin, Gadsden Police Chief John Crane, Dekalb County Sheriff Jimmy Harris, Cherokee County Sheriff Jeff Shaver and Heflin Police Chief A.J. Benefield announced the charges from a 19-count indictment returned in June and unsealed this month following the arrest of three defendants. One of the remaining six defendants already was in federal custody, and the five others are in jails or state prisons in Georgia and Alabama.
A 10th defendant, THOMAS WATSON SMITH, 39, of Rome, Ga., was charged in April with one count of possession with intent to distribute at least 50 grams of methamphetamine in Cherokee County in August 2014. Smith pleaded guilty June 30. He is scheduled for sentencing Oct. 14.
The June indictment charges JOSE ROLANDO ARROYO BALCAZAR, 36, his sister, JUANNA BALCAZAR, 28, of Boaz, YESENIA MONTUFAR MARTINEZ, 28, MIGUEL MANRIQUEZ, 38, ALLEE THOMAS WALKER, 37, ANTHONY PAUL LEE, 36, BERNUBE PEREZ, 22, and RAFAEL JOSE CASTILLO MORALES, 27, of Chattanooga, Tenn., with the 2013-2015 conspiracy. MELISSA NICASIO, 28, also of Chattanooga, is charged with one count of conspiring with Morales between March and April this year to distribute 50 grams or more of methamphetamine in Etowah and DeKalb Counties.
The three defendants arrested July 9 are Juanna Balcazar, Morales and Nicasio.
"The conspiracy charged here was responsible for supplying the intensely addictive and debilitating drug, methamphetamine, in northeast Alabama for at least two years," Vance said. "Thanks to the many law enforcement agencies that joined together to identify the participants in this organization, including two who were giving orders from within Georgia state prisons, we were able to shut off this illegal supply network. This case exemplifies the mission of the OCDETF Program," she said.
“This case is another great example of local, state and federal law enforcement partners working together to eliminate a significant drug-trafficking operation," Stanton said. "Thanks to all the members of the FBI’s North Alabama Safe Streets Task Force and particularly, the Etowah County Sheriff’s Office and the Gadsden Police Department for their tireless work in bringing this case to fruition.”
Jose and Juanna Balcazar and Manriquez are Mexican nationals in the United States illegally, and Morales is a Honduran national in the country illegally. Jose Balcazar is serving a 30-year sentence in a Georgia state prison on a 2007 methamphetamine trafficking conviction, according to Georgia Department of Corrections records. Manriquez is serving a life sentence in a separate Georgia prison on a 2003 murder conviction, according to the state's Corrections Department records.
Jose Balcazar and Manriquez communicated with each other and with people outside the prison system to carry on the methamphetamine trafficking operation in northeast Alabama, according to testimony last week in federal court in Huntsville during a detention hearing for Morales. Morales, who was living in Chattanooga, was ordered into custody pending trial.
Along with the June indictment's two conspiracy charges, most of the remaining counts charge various defendants with distributing methamphetamine on specific dates between July 2014 and May 2015. Count 19 charges Lee with possessing a firearm -- a .380-caliber Derringer pistol -- in furtherance of a drug-trafficking crime.
The penalty for the conspiracy counts and the counts of distributing 50 grams or more of methamphetamine is 10 years to life in prison and a maximum $10 million fine. The minimum prison term for those offenses increases to 20 years if there has been a previous felony drug conviction. The penalty for distributing five grams or more of methamphetamine is five to 40 years in prison and a maximum $5 million fine. That penalty increases to 20 years to life in prison if there has been a prior felony drug conviction. The firearms charge carries a minimum mandatory prison sentence of five years and a maximum fine of $250,000.
The FBI’s North Alabama Safe Streets Task Force, with participation of the sheriff's offices in Etowah, Cherokee and Dekalb counties, the Gadsden and Heflin Police Departments, and the District Attorney's Offices for Cherokee and Etowah counties investigated the case as part of the Organized Crime Drug Enforcement Task Force Program. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. Assistant U.S. Attorney Laura D. Hodge is prosecuting the case.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Staten Island, New York, Man Sentenced to 54 Months in Prison for Multimillion-Dollar Organized Retail Crime ConspiracyRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 54 months in prison for his role in a large-scale, organized, retail crime scheme involving the theft of tens of millions of dollars’ worth of over-the-counter (OTC) pharmaceuticals and health and beauty aid (HBA) products, U.S. Attorney Paul J. Fishman announced.
Mohammed Abuteer, 27, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to transport stolen goods interstate. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2008 through May 2013, Abuteer participated in an elaborate scheme to steal and resell HBA and OTC, such as Claritin, Zantac, Mucinex, Prilosec, and Crest White Strips. The items were stolen from retail stores including Target, Wal-Mart, and CVS, and military commissaries, some of which were located in New Jersey.
Conspirators known as “boosters” stole HBA and OTC products and sold them to low-level “fences” at a fraction of the retail value. For example, a package of 30-count Crest White Strips, which retailed for approximately $50, would be sold for $11. The fences resold the items to mid-level distributors – including Abuteer, and his brother, Salim Abutair, who was previously charged by complaint with participating in the conspiracy and is now a fugitive in Jordan. The distributors resold the items to higher-level distributors, who then sold the stolen goods to retailers or directly to consumers.
Abuteer maintained an inventory of his stolen product in a large storage unit in Staten Island, where he and others “cleaned” the items by removing security packaging and other labels that identified the retail stores from which the products were stolen. He used the storage unit to arrange for deliveries of merchandise to other conspirators. Abuteer and his brother also maintained several bank accounts from which they paid for the stolen merchandise and where they held their profits. Over the course of Abuteer’s involvement in the conspiracy, he and his brother purchased tens of millions of dollars of stolen HBA and OTC merchandise. Abuteer was arrested in May 2013 while attempting to travel to Jordan. At the time of his arrest, he was carrying $10,000 in cash, and federal agents seized approximately $300,000 worth of stolen items from his storage unit.
In addition to the prison term, Judge McNulty sentenced Abuteer to two years of supervised release and entered a money judgment of $1,301,500, representing the proceeds of the scheme. He also forfeited certain assets previously seized by the government, including approximately $66,000 and a property in Staten Island. Abuteer, an illegal alien, has been out on bail on home detention for the majority of time since his arrest.
U.S. Attorney Fishman credited special agents with the New York field office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Raymond Parmar Jr.; agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr.; and agents of the U.S. Air Force, Office of Special Investigations, under the direction of Detachment Commander Matthew Sarkissian, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the Economic Crimes Unit.
Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Defense counsel: Michael Chazen Esq., Freehold, New Jersey
St. Francis Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on July 13, 2015, by U.S. District Judge Roberto A. Lange.
Joseph Four Horns, age 37, was sentenced to 12 months and 1 day of custody, 2 years of supervised released, and a special assessment of $100 to the Federal Crime Victims Fund.
Four Horns was indicted by a federal grand jury on February 11, 2015. He pled guilty on April 21, 2015.
The conviction stems from an incident on or about January 1, 2015, when the victim went to a friend’s house in St. Francis where he encountered Four Horns who, without provocation, began an altercation with him. Four Horns pushed the victim to the ground, and then proceeded to kick the victim about the body and face.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Four Horns was immediately turned over to the custody of the U.S. Marshals Service.
Spokane Valley Man Admits to Robberies Across Four StatesRead the Press Release
COEUR D'ALENE - Brian James Lindsey, 25, of Spokane Valley, Washington, pleaded guilty on July 20, 2015, to 13 counts of interference with commerce by robbery, U.S. Attorney Wendy J. Olson announced. Lindsey was indicted by federal grand juries in four states between January and April of 2015.
According to the plea agreement, Lindsey admitted that in October of 2014, he began a robbery spree across North Dakota, Montana, Idaho and Washington. Lindsey robbed six businesses in North Dakota between October 22 and 31, 2014. Initially these robberies were for cash. By October 28, 2014, Lindsey was robbing pharmacies seeking prescription narcotic drugs. After leaving North Dakota, Lindsey robbed a Shopko in Sidney, Montana, taking drugs. He arrived back in the Spokane area by November 15, 2014. Between November 15, 2014, and January 4, 2015, Lindsey robbed six more pharmacies in the Coeur d’Alene and Spokane area. The FBI sponsored North Idaho Violent Crime Task Force began to focus its attention on Lindsey prior to the last robbery. The Task Force worked with the U.S. Attorney's Office for the District of Idaho and applied for a tracker warrant for Lindsey's vehicle. After Lindsey robbed a Walgreens in Idaho, law enforcement was able to quickly apprehend him. Once in custody, Lindsey made a full confession to all the robberies. The cases were consolidated after Lindsey was indicted in each federal district where he committed his offense. The District of Idaho agreed to handle all the counts since Lindsey was already charged in Coeur d’Alene.
The charge of interference with commerce by robbery is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for October 20, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“As demonstrated by this defendant’s crime spree across four states, prescription drug addiction and abuse can lead to very serious criminal conduct with real victims,” said Olson. “Each individual who was robbed by Lindsey suffered the threat of harm and pharmacists in the area were on high alert during the time Lindsey was engaged in his robberies. I commend the collaborative work of all law enforcement in all four states that helped apprehend Lindsey.”
The case was investigated by state, federal and local law enforcement in North Dakota, Montana, Idaho and Spokane, WA.
Selection Panel to launch application process for Community Police CommissionRead the Press Release
Applications for the Community Police Commission will be released July 20, at 7:00 p.m. during a public meeting held at Cuyahoga Community College’s Advanced Technology Training Center. The application and related materials are available online at clecpc.org. Links to Community Police Commission application will be accessible through the City of Cleveland and the U.S. Attorney’s Office for the Northern District of Ohio websites. Paper copies of the application will be available for pickup at Cleveland City Hall and all branches of the Cleveland Public Library.
Completed applications for the Commission must be submitted to the Selection Panel by Thursday, August 6, 2015. Applications may be submitted online via clecpc.org, by email, U.S. postal mail, or in person to a secure drop-off box that will be available at City Hall for the delivery of paper copies. The Selection Panel is working with community groups and faith-based organizations to facilitate the distribution of these applications throughout the city.
In addition to the 10 members appointed by the Selection Panel, the commission will also include a member appointed by each of the three local police associations: the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield.
The Community Police Commission will work to bring forward recommendations to the Mayor and Cleveland Division of Police on policies and practices that will help strengthen relations between the City of Cleveland Police Department and the communities they serve. The commission will regularly issue progress updates to the community.
Readout of the Attorney General’s Meeting with President Muhammadu Buhari of NigeriaRead the Press Release
Attorney General Loretta E. Lynch met with President Muhammadu Buhari of Nigeria today at the Blair House in Washington, D.C. Both leaders discussed opportunities for U.S. Department of Justice officials to increase collaborative efforts with their Nigerian counterparts to dismantle and defeat Boko Haram, ISIL and other terrorist organizations active in the region. The Attorney General underscored the importance of combatting transnational crime and corruption through the Kleptocracy Initiative. These anti-corruption efforts not only assist the Nigerian people in their efforts to recover assets stolen from victims but they are also helpful tools to protect the U.S. financial system from being utilized by criminals.
Plummer Man Sentenced for StrangulationRead the Press Release
COEUR D’ALENE - James Andrew Samuels, Jr., 27, of Plummer, Idaho, was sentenced today to 18 months in prison for strangulation, U.S. Attorney Wendy J. Olson announced. The Court also ordered that Samuels serve three years supervised release following his sentence and complete anger management counseling. He pleaded guilty to the charge in December 2014.
According to the plea agreement, in November 2013, Samuels got into an argument with a woman he was dating. Samuels admitted that during the argument he grabbed the victim by the neck and strangled or attempted to strangler her. The woman sustained bruises to her face and neck.
U.S. Attorney Wendy J. Olson stated that the conviction and sentence are part of the office’s effort to ensure that Native American women and families are protected from domestic violence. “The strangulation statute and the Violence Against Women Act are useful tools to fight domestic violence crimes that endanger women and children on reservations. This violence tears apart families, damages children, and may even have lethal consequences. I commend the law enforcement officers that investigated this case and the victim who stood up to her abuser.”
The case was investigated by the Coeur d’Alene Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted in federal court because the crime occurred on the Coeur d’Alene Indian Reservation and the defendant is an enrolled member of the Coeur d’Alene Tribe.
Pittsburgh, Detroit men sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four individuals, including three Michigan natives, were sentenced today for cocaine and oxycodone trafficking offenses, United States Attorney William J. Ihlenfeld, II, announced.
Richard Speciale, 53, of Pittsburgh, Pennsylvania, was convicted and sentenced today for selling cocaine within the Northern District of West Virginia and the Western District of Pennsylvania. He pled guilty today to one count of “Conspiracy to Distribute Over Five (5) Kilograms of Cocaine,” following an investigation by the Pennsylvania Office of Attorney General and the Federal Bureau of Investigation. He was sentenced today to 144 months in prison.
Ryan Gardner, 28, of Detroit, Michigan, was sentenced today to 70 months in prison for selling oxycodone in November 2014 in Monongalia County, West Virginia. He pled guilty in March 2015 to one count of “Distribution of Oxycodone,” following an investigation by the Mon Valley Drug and Violent Crime Task Force.
Terrell Moore, 36, of Detroit, Michigan, was sentenced today to 63 months in prison for selling oxycodone in January 2015 in Monongalia County, West Virginia. He pled guilty in March 2015 to one count of “Distribution of Oxycodone,” following an investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative.
Ronnie Days, 24, of Westland, Michigan, was sentenced today to 41 months in prison for selling oxycodone in August 2014 in Monongalia County, West Virginia. He pled guilty in January 2015 to one count of “Distribution of Oxycodone,” following an investigation by the Mon Valley Drug and Violent Crime Task Force.
Assistant U.S. Attorney Andrew Cogar prosecuted Speciale, Assistant U.S. Attorney Shawn Morgan prosecuted Moore, and Assistant U.S. Attorney Zelda Wesley prosecuted Gardner and Days on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Pine Ridge Man Convicted in Child Abuse CaseRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that Timothy Kenneth White Plume, age 36, of Pine Ridge, South Dakota, was found guilty of Felony Child Abuse and Neglect, and Assault Resulting in Serious Bodily Injury, at the conclusion of a seven-day federal jury trial in Rapid City, South Dakota. The jury returned the verdict on July 14, 2015.
The maximum penalty on the child abuse charge is 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The maximum penalty on the assault charge is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The conviction stems from White Plume assaulting a three-month old baby in December of 2012 at Pine Ridge, causing multiple skull fractures, catastrophic brain injury, broken ribs, and a broken leg.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Division of Criminal Investigation.
Assistant U.S. Attorneys Sarah B. Collins and Gregg S. Peterman prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Painting Contractor Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONALD S. BATTAGLIA, 66, of Stratford, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to filing false tax returns.
According to court documents and statements made in court, BATTAGLIA is the sole owner of Custom Painting, which provides interior and exterior painting services primarily in Fairfield County. During the 2008 through 2012 tax years, BATTAGLIA failed to provide his tax return preparer with information concerning an additional $867,656 in gross receipts he received in those years. The total tax reported as due on the five returns was $46,687, but BATTAGLIA willfully failed to report and pay an additional $277,582 in federal income taxes for those five years.
The investigation revealed that BATTAGLIA’s clients typically paid him by check. BATTAGLIA then cashed the checks at his bank and received currency for the full value of the check, or he made a split deposit, receiving some cash and depositing the balance into his business account. The amounts of the transactions were typically less than $10,000.
BATTAGLIA pleaded guilty to one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years and a fine of up to $250,000. Judge Bolden scheduled sentencing for October 9, 2015.
BATTAGLIA has repaid the IRS $277,582 in restitution. He is still required to pay substantial penalties and interest that have accrued on his unpaid taxes.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed with the assistance of Law Student Intern Lisa Wang.