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9 September 2015
Orchard Park Man Sentenced for Defrauding the Government Out of Millions in Lost DutiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul Jr., announced today that William Nehill, 70, of Orchard Park, NY, who was convicted of conspiracy to smuggle merchandise into the United States by false and fraudulent invoices, was sentenced to 90 days in prison, two years of supervised release and ordered to pay $6,246,605 in restitution by United States District by Judge William M. Skretny.“This case revealed the extent to which some individuals sought to evade the country’s importation laws, while risking the lives of American war fighters in the process,” said U.S. Attorney Hochul. “Today’s sentencing concludes this particular prosecution, and our Office’s commitment to protecting American citizens and industries will continue.”
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated the defendant was an importer of specialty metals. Nehill, through his company International Technology Group, Inc., entered into an agreement with Superior Metal Powders to import magnesium powder from China.
At the time of the agreement, the United States had a 305.56% antidumping duty in place with respect to the type of magnesium powder the defendant was importing for Superior Metal Powders from China. In order to avoid the 305.56% antidumping duty the magnesium was falsely labeled as magnesium reagent. By labeling the magnesium as a reagent, the duty imposed on the shipments was only 5%. The mislabeling resulted in $6,246,605 duty loss to the United States. Unbeknownst to the defendant, the imported magnesium was ultimately used to produce countermeasure flares.
Nehill was charged in April 2010 along with Gregory Magness, his son Justin Magness, Charles Wright, and Eldon Bott in a conspiracy to import Chinese magnesium into the United States. All defendants now stand convicted and sentenced.
The sentencing is the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of J. Michael Kennedy, Acting Special Agent in Charge, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, and the Department of Defense Criminal Investigative Service, under the direction of Craig W. Rupert, Special Agent in Charge, Northeast Field Office.
Op-Ed: Police Officers Protect and Serve Our CommunitiesRead the Press Release
Residents of the United States of America enjoy a security system like no other country in the world. This system is based upon being able to call the police whenever we need them. Help or protection is never too far away. We know that they will come, regardless of the circumstances or potential danger involved.
We go to sleep every night, secure in the knowledge we will be protected from harm. Also, unlike many countries in the world, we are confident that the police will not come into our homes and take us away without due process of law. As their badges say, they are here to "serve and protect." They serve regardless of the risk of potential harm to themselves. They have sworn to uphold the law. Their families and friends worry more about them than the officers do themselves. They are proud to serve and never hesitate to answer a call. That is their job, their duty, and truly their calling in life.
Officers, like so many others, are often called upon to react at a moment’s notice and exhibit the courage and the fortitude to respond to the situation. They do this without thought, hesitation or reservation. Many times they are heroes in everyday situations that are unknown to the public or even their own families. This lack of publicity makes these acts no less courageous.
Unfortunately, a few officers choose to violate the laws that they have sworn to uphold. In these rare occasions, the officers face the same system of justice as anyone else. However, these few officers and the publicity of their wrongful acts should never overshadow nor demean the good name and service of the majority of police officers who serve and protect us daily. We, as a country, are lucky to have almost 700,000 people willing to take risks and endure the criticism and stress of being law enforcement officers.
As the Department of Justice implements its “Community Policing Initiative,” please feel free to offer your suggestions for improvement. Most importantly, please continue to support law enforcement officers and appreciate the sacrifice and service they make every day to ensure safer communities for everyone.
Odessa Man Sentenced for Selling Fake Indian ArtRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Odessa, Mo., man who falsely claimed to be a Cherokee Indian was sentenced in federal court today for utilizing a fraudulent tribal identification card to sell his Indian artwork at fairs and on-line.
Terry Lee Whetstone, 63, of Odessa, was sentenced by U.S. Magistrate Judge Sarah W. Hays to three years of probation after also pleading guilty today to the charge of misrepresentation of Indian-produced goods and products.
Whetstone is an artist who created and sold paintings and other artwork, representing them to be Indian produced. He sold his artwork via the Internet and at art fairs and events around the country.
Under the terms of today’s plea agreement, Whetstone may not sell art during his term of probation unless he notifies buyers that he is not a member of an Indian tribe. Whetstone must take down his Web site and refrain from advertising or promoting his artwork in any fashion during the term of probation. Whetstone is prohibited from performing flute music publically during the term of probation unless he notifies the audience that he is not a member of an Indian tribe.
On May 31, 2007, the Department of Interior Indian Arts and Crafts Board received a complaint that Whetstone was using a fraudulent Cherokee Nation of Oklahoma enrollment card in conjunction with the sale of his products. The Cherokee Nation verified that Terry Lee Whetstone is not a citizen of the Cherokee Nation.
Whetstone claimed on his Web site to be a Native American and a Cherokee artist. An undercover officer purchased a print of Whetstone’s “Endless Flame” artwork from his Web site in July 2013 and also received a brochure entitled, “Cherokee Artist.”
By pleading guilty today, Whetstone admitted that he knew he was not a member of a formally recognized Indian tribe.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by the U.S. Fish and Wildlife Service.
Nitro woman pleads guilty to defrauding social securityRead the Press Release
CHARLESTON, W. Va. - Linda Alford of Nitro West Virginia, pleaded guilty today in federal court in Charleston admitting she had defrauded the Social Security Administration, announced United States Attorney Booth Goodwin. Alford, 65, faces ten years in prison, a fine of $250,000 and three years of supervised release when she is sentenced on December 21, 2015. As part of her plea, Alford agreed to pay more than $130,000 in restitution.
Alford was receiving survivor benefits from the Social Security Administration after her spouse died in 1990. In 1997, Alford remarried, which made her ineligible for the benefits. Alford did not report her change in marital status to the Social Security Administration and continued to receive the survivors benefits to which she was no longer entitled. From 1997 to 2013, Alford withdrew more than $130,000 in benefit payments and spent the money knowing that she was not entitled to it.
The United States Social Security Administration, Office of Inspector General conducted the investigation. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
Nineteen named in superseding indictment for $200,000 check-kiting conspiracyRead the Press Release
Nineteen people from Northeast Ohio were named in an 85-count superseding indictment for their roles in a check-kiting conspiracy which defrauded banks out of $200,000, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Indicted are: Devinne P. Hollie, Sade Philpott, Shanita Hollie, Marnetta McPherson, Ahmerr Ellis, Calvin McPherson, Asia McPherson, Tavio Jack, Earl Walker, Matthew Johnson, Eddie Stacy. Jeffery Tate, Chad M. Mason, John T. Wilder, Anthony L. McPherson, Thiotis A. Greene, Clarissa V. Day, Toccara Moorer and Diamond C. Simpson. They are charged with conspiracy to commit bank fraud and multiple counts of bank fraud.
The second superseding indictment alleges the Hollies, Philpott and Marnetta McPherson, acting together with their co-conspirators and others not charged, engaged in a check-kiting scheme in which they fraudulently obtained funds from financial institutions by depositing multiple counterfeit and forged checks into co-conspirators’ bank accounts and then withdrawing the proceeds from those accounts at ATMs, check cashing locations, a local casino, and through debit card purchases.
In most instances, the Hollies, Philpott and Marnetta McPherson found a co-conspirator who was willing and able to open a checking account at a bank. Once these co-conspirators obtained their debit cards and PINs for their accounts, they passed these items on to one of the four, who then deposited forged and counterfeit checks into the account-holders’ bank accounts. These deposits typically occurred late at night or in the early morning hours, when the banks were closed and could not detect that the checks were counterfeit and forged, according to the indictment.
The defendants and co-conspirators would then often meet at the Horseshoe Casino in downtown Cleveland, where the co-conspirators would use Total Rewards Cards from the casino linked to their bank accounts to make large scale cash withdrawals from the casino’s cage, according to the indictment.
The Hollies, Philpott, Marnetta McPherson and their co-conspirators made deposits of counterfeit and forged checks on approximately 84 different occasions. The false and fraudulent deposits were in excess of $450,000, and the banks lost more than $200,000.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani, Carmen Brown and Justin Seabury-Gould, following an investigation by the Federal Bureau of Investigation and the Ohio Casino Control Commission.
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 the defendant guilty beyond a reasonable doubt.
Newport Man Sentenced to Fifteen Years in Federal Prison for Possession of Child Pornography and Failure to Register as a Sex OffenderRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that James Russell Bradbury, age 55, of Newport, Washington, was sentenced today, after having previously pled guilty on July 2, 2015 to Possession of Child Pornography and Failure to Register as a Sex Offender. Senior United States District Court Judge Justin L. Quackenbush sentenced Bradbury to a five year term of imprisonment for Failure to Register as a Sex Offender, and a ten year term of imprisonment for Possession of Child Pornography, to be served consecutively, for a total of fifteen years imprisonment, to be followed by a life term of court supervision after he is released from federal prison. In addition, Bradbury was ordered to forfeit to the United States the cell phone that he used to receive and possess child pornography. Bradbury will be required to register as a sex offender.
According to information disclosed during the court proceedings, in 2005 Bradbury was convicted in the Western District of Washington for offenses relating to the sexual exploitation of children. Bradbury was sentenced to ten years imprisonment and required to register as a sex offender after he was released from prison. In 2014, while Bradbury was on supervised release in Utah, he fled from Utah and on February 12, 2015 was arrested by the Pend Oreille County Sheriff’s Department in Newport, WA. Further investigation by the United States Marshal revealed that Bradbury was not registered as a sex offender in Pend Oreille County, Newport, WA. In addition, investigation by the Federal Bureau of Investigation discovered that at the time of Bradbury’s arrest in Newport he was in possession of a cell phone that contained images of child pornography, some of the images were of children under the age of 12 and portrayed sadistic or masochistic conduct.
Michael C. Ormsby stated, “I commend the excellent work of this office’s law enforcement partners from Pend Oreille County, the FBI, and the U.S. Marshals Service. As I have stated publically many times, the United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate
punishment for child pornography crimes. In addition, prosecuting offenders who failure to register as sex offenders is a top priorities of the United States Attorney’s Office.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.justice.gov/psc . For information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
This investigation was conducted the United States Marshall, Federal Bureau of Investigation and Pend Oreille County Sheriff’s Department. The case was prosecuted by Matthew F. Duggan and Stephanie J. Lister, Assistant United States Attorneys for the Eastern District of Washington.
New Mexico to Host DOJ's Native American Issues Subcommittee and Tribal LiaisonsRead the Press Release
SANTA ANA PUEBLO, NM – Montana U.S. Attorney Michael W. Cotter will join New Mexico U.S. Attorney Damon P. Martinez in welcoming the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee (AGAC) to Santa Ana Pueblo on September 9 and 10, 2015, and DOJ’s Tribal Liaisons on September 9-11, 2015. The meeting will be hosted by the New Mexico U.S. Attorney’s Office.
U.S. Attorney Cotter serves as the Chairman of the NAIS, and U.S. Attorney Martinez serves as vice-chair. Currently, 30 U.S. Attorneys from 25 districts and federally recognized tribes serve on the NAIS, which focuses exclusively on Indian Country issues and makes policy recommendations to the Attorney General regarding both criminal and civil issues in Indian Country.
“The Department continues to prioritize issues of criminal and civil law in Indian Country and in particular has made a tremendous effort to quell violence in Indian Country,” said U.S. Attorney Cotter. “I am delighted that United States Attorneys, tribal liaisons, and Indian Country prosecutors – those in the trenches – will convene to share best practices, learn from one-another, and also celebrate the progress that has been made in the past six years.”
While in New Mexico, the NAIS will meet with representatives from tribes in New Mexico, as well as officials from BIA, SAMHSA and the U.S. Department of the Interior, and the Office of Justice Programs and the Environmental and Natural Resources Division of DOJ. The NAIS will meet in a joint session with Tribal Liaisons who will be participating in a training seminar that will cover issues that include justice services, substance abuse, and offender reentry in Indian Country. At the conclusion of the NAIS meeting, Tribal Liaisons and Indian Country prosecutors will meet for an additional day to continue discussions on topics relevant to Assistant U.S. Attorneys who regularly practice in Indian Country.
The morning session of the NAIS meeting on Wednesday, Sept. 9, 2015, will be open to the press and will include welcoming remarks by Montana U.S. Attorney Michael W. Cotter and New Mexico U.S. Attorney Damon Martinez, and 1st Lt. Governor Antonio Chewiwi of Isleta Pueblo, and remarks by Assistant Secretary of the Interior for Indian Affairs Kevin K. Washburn on Progress in Justice Services in Indian Country. More information on meeting time, location, and press accommodations is available by contacting Alyssa Ferda at 505-224-1480 or [email protected].
New Jersey Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
A Bergen County, New Jersey, man pleaded guilty today to conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division made the announcement.
Samuel Rahamin Topaz, 21, of Fort Lee, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton of the District of New Jersey to an information charging him with one count of conspiring with others to provide material support to ISIL. He remains detained without bail.
“Samuel Rahamin Topaz conspired to provide material support to ISIL and sought to travel overseas with others to fight on behalf of the designated foreign terrorist organization,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we remain committed to stemming the flow of foreign fighters abroad and bringing to justice those who attempt to provide material support to terrorists.”
“The crimes Samuel Topaz admitted today threatened the safety of Americans here and abroad,” said U.S. Attorney. “Our efforts to cut off the flow of fighters and resources to known terrorist organizations will not stop with his guilty plea. We have charges pending against his conspirators and remain vigilant against these terrorist operations.”
“Samuel Topaz admitted to conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL) today in the U.S. District Court of New Jersey,” said Special Agent in Charge Frankel. “Now Topaz will face up to 20 years in prison rather than take up arms overseas. Disrupting recruitment efforts by terrorist organizations and preventing acts of terror remains the FBI’s number one priority, and due to the unflagging efforts of the Newark FBI’s Joint Terrorism Task Force this threat was eliminated. I ask the citizens of New Jersey to remain vigilant and contact the FBI if they see or hear something suspicious.”
According to documents filed in this case and related cases and statements made in court:
Topaz admitted that prior to his arrest by the FBI Joint Terrorism Task Force (JTTF) on June 17, 2015, he planned to travel overseas to join ISIL and had saved money for that purpose. Topaz discussed plans to join ISIL with Nader Saadeh, Alaa Saadeh and Munther Omar Saleh, and he admitted that at various times, each of them indicated that they wanted to join ISIL. Topaz also admitted that they all watched ISIL-related videos, some of which depicted the execution of non-Muslims and individuals regarded as apostates from Islam.
On May 5, 2015, Nader Saadeh departed the United States with plans to travel overseas to join ISIL as part of the conspiracy, according to Topaz’s statements in court today. Topaz further admitted that he and others planned to travel overseas separately, meet up with Nader Saadeh and then travel together to join ISIL. After Nader Saadeh left the United States, Topaz met with Saleh and contacted Alaa Saadeh to discuss those plans.
Topaz admitted to knowing that ISIL was a designated foreign terrorist organization taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIL’s commands.
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a statutory maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Nov. 18, 2015.
Topaz’s alleged co-conspirators are being prosecuted and are currently in federal custody. Nader and Alaa Saadeh have been charged in separate criminal complaints brought in the District of New Jersey with conspiring to provide material support to ISIL, among other charges. Saleh has been indicted on terrorism-related charges brought in the Eastern District of New York. The charges and allegations against them are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s JTTF. The case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance the assistance of Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Topaz Plea Agreement
Topaz Information
Minneapolis Man Pleads Guilty to Conspiracy to Provide Material Support to ISILRead the Press Release
Defendant is the Second of Nine Co-Conspirators to Plead Guilty
Hanad Mustofe Musse, 19, of Minneapolis, pleaded guilty today to conspiring with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Musse was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. Musse pleaded guilty today before Senior U.S. District Judge Michael J. Davis of the District of Minnesota.
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Andrew M. Luger of the District of Minnesota made the announcement.
“Hanad Mustofe Musse conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“The facts set forth in Mr. Musse’s guilty plea underscore the length and breadth of this criminal conspiracy,” said U.S. Attorney Luger. “This defendant made multiple attempts to leave Minnesota to join ISIL – criminal prosecution was the best remaining option to stop him and potentially save his life. Twin Cities’ youth continue to be the targets of an intense recruiting campaign by ISIL. Fighting back is the shared responsibility of a wide cross-section of Minnesotans – parents, religious leaders, teachers, community leaders and law enforcement. We must continue to work together to end the cycle of recruiting.”
As the defendant admitted in his guilty plea, between March and June 2014, Musse became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. Musse joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement and the feasibility of using fraudulent travel documents to travel to Syria.
Musse also admitted in his plea that by June 2014, he knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul, Minnesota, International Airport. Nevertheless, Musse continued to make preparations to travel to Syria to join ISIL. Between Oct. 20, 2014, and Nov. 6, 2014, Musse made five cash withdrawals from his federal financial aid account totaling $2,400. He deposited those funds in a personal checking account that he opened on Nov. 3, 2014. Musse later used those funds to purchase a bus ticket from Minneapolis to New York City.
As admitted by the defendant in his guilty plea, on Nov. 6, 2014, Musse and co-conspirators Mohamed Farah, Hamza Ahmed and Zacharia Abdurahman purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, Musse purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. Musse knew that Abdurahman purchased a ticket on the same flight for the same purpose. After being prevented by federal agents from boarding his flight, Musse lied to the agents about the true nature of his travel.
The defendant admitted in his guilty plea that after their failed November 2014 attempt to fly overseas, Musse and co-conspirators Mohamed Farah, Abdurahman and Ahmed met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
Musse admitted in his guilty plea that he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, Musse willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico and fly overseas to join ISIL using those false passports. On April 6, 2015, Musse provided a passport photo of himself to a co-conspirator for the purpose of creating a fake passport. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). When Musse’s family learned of his plan to travel, Musse requested the return of the photograph from the CHS. However, Musse admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, Musse was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria.
This case is being investigated by the FBI-led Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and John F. Docherty of the District of Minnesota, with assistance provided by the National Security Division’s Counterterrorism Section.
Long Island Businessman Harendra Singh Indicted for Bribery, Fraud, and ObstructionRead the Press Release
Singh Charged with Fraudulently Under-Reporting to the IRS Over $17 Million of His Businesses’ Sales and Wages and Submitting False Documents to FEMA to Obtain Over $900,000 in Disaster Relief Funds
A 13-count indictment was unsealed this morning in federal court in Central Islip charging Harendra Singh, also known as “H. Singh,” with five counts of honest services wire fraud, one count of honest services wire fraud conspiracy, one count of federal program bribery, one count of disaster relief fraud, two counts of conspiring to defraud the United States, one count of impeding the Internal Revenue Service, one count of tampering with evidence, and one count of obstruction of justice.[1] Singh was arrested this morning and will be arraigned later today before the Hon. A. Kathleen Tomlinson, United States Magistrate Judge, at the United States Courthouse, 100 Federal Plaza, Central Islip, NY.
The indictment was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Shantelle P. Kitchen, Special Agent- in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).
“As alleged, Harendra Singh ran his businesses through fraud and deceit, using bribes and kickbacks to tilt the playing field in the Town of Oyster Bay. He accomplished this by lying to FEMA and the IRS in order to obtain hundreds of thousands of Hurricane Sandy disaster relief funds to which he was not entitled and evading taxes on millions of dollars of sales and wages,” stated Acting United States Attorney Currie. “The obligation to deal honestly is shared by everyone in our society, and we and our partners in the FBI and IRS-CI are unwavering in our commitment to root out corruption at all levels.”
“The charges alleged in today’s indictment describe an outpouring of greed. As alleged, Singh put local business owners at a significant disadvantage, siphoned funds from public money he was not entitled to, and sidestepped his responsibility to pay taxes on underreported income. Today’s arrest is proof of the FBI’s continued determination to work with our partners in rooting out those who engage in unlawful schemes for profit,” stated FBI Assistant Director-in-Charge Rodriguez.
“IRS-Criminal Investigation, in its mission of ensuring that everyone pays their fair share of taxes, investigates business owners who willfully do not report all of their business receipts and who willfully fail to collect and pay over payroll taxes to the government, said Special Agent-in-Charge Kitchen. “Obviously, taxes are needed to keep the government running, so when people and businesses do not pay their fair share, they increase the burden on law abiding taxpayers. When business owners do not collect payroll taxes, they compound this burden and harm their own employees, potentially depriving them of future government benefits that are funded by these collections, like Social Security payments.”
The Town of Oyster Bay Loan Scheme
Singh owned and operated restaurants and food concessions located primarily in Nassau County (collectively, the Singh entities), and was awarded agreements with the Town of Oyster Bay (the Town), including concession agreements to operate various food concessions within the Town. The indictment charges that Singh paid bribes and kickbacks to a Town employee (identified in the indictment as co-conspirator #3) in exchange for the co-conspirator’s assistance in obtaining the Town’s guarantee of two loans totaling approximately $20 million that two of Singh’s businesses received from a private corporate financing company (identified in the indictment as the Lender). As a result, were Singh’s entities to default on the loans, the Town would be responsible for repaying the Lender the entire amount of the loan.
The first loan, which closed in November 2011, was for $7,843,138. Approximately one week after the loan closed, Singh gave co-conspirator #3 an envelope with five checks, each in the amount of $5,000; the five checks were made out to “cash.” The second loan, which closed in June 2012, was for $12,273,748. Approximately one week after closing, Singh gave co-conspirator #3 an envelope with five additional checks, each in the amount of $5,000; the five checks were each made out to “cash.” In addition, Singh paid for co-conspirator #3 and a relative to travel to Asia a few weeks after the second loan closed, including all transportation and hotel expenses.
The indictment alleges that in late 2012 and 2013, Singh sought an additional loan of approximately $12 million from the Lender in connection with improvements to be made to Singh’s concession facilities at two Town beaches. To assist Singh, co-conspirator #3 arranged for meetings between the Lender and Town officials. Although the loan was not ultimately extended, between September 2012 and February 2015, Singh made monthly cash payments to co-conspirator #3 for the lease of a BMW automobile.
The Tax Fraud Schemes
The indictment alleges that Singh fraudulently under-reported to the IRS the true amount of money certain of the Singh entities earned and the wages he paid his workers, thereby lowering significantly the federal taxes he and his businesses owed and paid. Specifically, for tax years 2009 and 2012, Singh allegedly failed to report approximately $10,000,000 in gross receipts for seven Singh entities. To facilitate this fraud, Singh employed an individual who, at Singh’s direction, did not record the seven Singh entities’ cash sales as gross receipts in the books and records of those businesses. Because the profits of those businesses flowed through to Singh as their owner, the failure to properly report the gross receipts of the businesses enabled Singh to under-report his own income on his personal income tax returns.
In addition, from 2010 through 2014, Singh allegedly concealed approximately $7,091,331 of wages paid to employees of the same Singh entities, plus an additional Singh entity, fraudulently depriving the federal government of payroll taxes. Singh accomplished this scheme by paying a significant portion of the wages paid to employees of these entities “off the books.” By under-reporting employee hours and even concealing the existence of some employees, Singh caused his payroll processing companies to underreport the employee wages and fail to withhold the proper amount of federal payroll taxes required by law.
The FEMA Fraud Scheme
The indictment also alleges that between October 2012 and January 2015, Singh fraudulently obtained federal disaster relief funds by preparing and filing false and fraudulent documents and invoices with FEMA. These documents claimed that the Singh entity, “The Water’s Edge,” which operated a restaurant in Long Island City, New York, suffered losses following Hurricane Sandy. The invoices inflated the amount of losses, often by double or triple the actual amount. Singh also submitted or caused to be submitted to FEMA fraudulent receipts from vendors that inflated the value of the contents of the building that housed the restaurant. As a result, Singh fraudulently received approximately $950,000 in disaster relief funds from FEMA.
Obstruction of Justice
Singh is charged with evidence tampering and obstruction of justice in connection with the execution of a search warrant at his offices by FBI Special Agents on August 5, 2014. When agents questioned Singh about the contents of a locked safe on the premises, he informed the agents that he did not have a key to the safe and that the safe contained guns, for which he had permits. In fact, the safe contained $175,000 in cash which were diverted cash receipts from a Town beach concession operated by one of the Singh entities. Following the execution of the search warrant, Singh removed the cash and instructed two others to each take a portion of the cash home for “safekeeping.” A few days later, Singh instructed those individuals to return the money to his wife.
If convicted, Singh faces terms of imprisonment of up to o 20 years for each honest services wire fraud charge and up to 10 years for the federal program bribery charge, both in connection with the Town loan scheme. If convicted of any of those charges, the government will seek to forfeit Singh’s properties that constitute or are derived from proceeds of those offenses, including two residences located in Nassau County. Singh further faces terms of imprisonment of up to 30 years for the disaster relief fraud charge and up to five years for conspiring to defraud the United States in connection with his submitted claims for disaster relief, up to 20 years for each of the obstruction charges, up to five years for the charge of conspiring to defraud the United States in connection with his scheme to under-report gross receipts and payroll taxes, and up to three years for the charge of obstructing and impeding the due administration of the Internal Revenue Laws.
Mr. Currie expressed his appreciation to the Nassau County District Attorney’s Office, the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice, and the New York State Department of Taxation and Finance for their assistance in and cooperation with the investigation.
The government’s case is being prosecuted by the Office’s Public Integrity Section and Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Raymond A. Tierney, and Lara Treinis Gatz are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division will be responsible for the forfeiture of assets.
The Defendant:
HARENDRA SINGH
Age: 56
Syosset, New YorkE.D.N.Y. Criminal Docket No. 15-450
[1] The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Lebanon Man Sentenced for $1.2 Million K2 Distribution at Lebanon StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., man has been sentenced in federal court for a mail fraud scheme that involved the distribution of more than $1.2 million of synthetic marijuana, commonly referred to as K2, from a head shop in Lebanon.
Eric Scott Reynolds, 33, of Lebanon, was sentenced on Tuesday, Sept. 8, 2015, by U.S. District Judge Beth Phillips to six years in federal prison without parole.
Eric Reynolds was employed at Lucky’s Novelties in Lebanon and distributed synthetic drugs from the head shop. On Oct. 15, 2015, he pleaded guilty to his role in a mail fraud conspiracy and to participating in a money-laundering conspiracy.
His brother and co-defendant, Stephen Brian Reynolds, 36, of Camdenton, Mo., was the owner of Lucky’s Novelties. Stephen Reynolds was sentenced on June 29, 2015, to six years in federal prison without parole after pleading guilty to the mail fraud conspiracy and to money laundering. The court also ordered him to forfeit to the government $1,167,990, which was obtained from the distribution of K2, as well as real estate in Eldridge, Mo., funds in bank accounts, approximately $128,000 that was seized from his residence and a safe deposit box, a 2012 Jeep Grand Cherokee, a 2007 Ducati 1098 motorcycle, three pistols, two rifles and a shotgun.
Stephen and Eric Reynolds both admitted they participated in a conspiracy to commit mail fraud from March 1, 2011, to Dec. 11, 2012. They defrauded the Food and Drug Administration and the public by using mail deliveries in a conspiracy to distribute several products that were labeled as “incense” or “potpourri” and “not for human consumption,” when in reality these substances were synthetic marijuana intended for human consumption as a drug.
Between Sept. 15, 2011, and July 25, 2012, Stephen and Eric Reynolds deposited $1,245,761 in proceeds from the distribution of K2 into bank accounts and a safety deposit box. Based upon DEA undercover purchases, they charged approximately $1 for every 300 mg of K2. Therefore, they distributed approximately 373 kilograms of K2.
Stephen Reynolds was also part-owner of a Springfield, Mo., head shop known as Doobies, which he supplied with wholesale quantities of synthetic marijuana for distribution and from which he received 40 percent of the profits. His partners have also been sentenced in a separate but related case for their roles in the mail fraud conspiracy.
Stephen Reynolds’s sentencing also reflects the court’s finding that he was in possession of firearms in connection with the offense. When DEA agents searched his residence, they seized a Smith and Wesson .380-caliber pistol, a Ruger .380-caliber pistol, an FHN 5.7-caliber pistol, a Ruger AR-15 rifle, a Bushmaster ACR rifle, a Winchester 12-gauge shotgun, body armor and ammunition. Agents also seized cardboard boxes containing synthetic cannabinoids weighing approximately 58 kilograms. Agents also seized $7,506 from a safe in the garage. Law enforcement officers also executed a search warrant at Lucky’s Novelties and seized a handgun.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Laclede County, Mo., Sheriff’s Department, the Lebanon, Mo., Police Department and the Lake Area Narcotics Enforcement Group (LANEG).
Kentucky woman pleads guilty to federal drug chargeRead the Press Release
HUNTINGTON, W.Va. – A Kentucky woman caught with a large quantity of pills during a traffic stop in Huntington in 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Karen Sue Fields, 45, entered a guilty plea in federal court in Huntington to possession with intent to distribute oxycodone and alprazolam.
On July 6, 2014, an officer with the Huntington Police Department was flagged down by a motorist on 5th Street Road in Huntington. The motorist alerted the officer to another vehicle driving erratically on 5th Street. The officer located the vehicle, which was operated by Fields, and conducted a traffic stop after Fields made several abrupt turns in an attempt to evade the officer. The officer then observed multiple bags of pills in the floorboard of Fields’ vehicle. After conducting a search, the officer located 819 30mg oxycodone tablets and in excess of 50 2mg alprazolam tablets. Fields admitted that she had traveled from Kentucky and had purchased the pills for $17,500. Fields also admitted that she taking the pills back to Kentucky to be delivered to another.
Fields faces up to 20 years in federal prison, and is scheduled to be sentenced on December 14, 2015.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Indictment Filed in Husband and Wife Sex Trafficking CaseRead the Press Release
Marcus Dewayne Thompson, 28, and his wife, Robin Thompson, 24, from Park Hills, Missouri, were indicted today by a federal Grand Jury in Benton, Illinois, for one count of sex trafficking of a minor by force, fraud, or coercion, and one count of conspiracy to do the same, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced.
An Indictment is a formal, legally required method of bringing charges against a defendant. A defendant is presumed innocent of the charges unless proven guilty beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigation, Springfield Division, and members of the FBI’s Child Exploitation Task Force, Fairview Heights. Assistant U.S. Attorney Daniel T. Kapsak is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Imposter Attorney, Two Others Charged in Marriage Fraud SchemeRead the Press Release
LOS ANGELES — A Santa Fe Springs man who posed as an attorney and his daughter were arrested this morning for allegedly orchestrating an elaborate immigration fraud scheme in which Chinese nationals paid tens of thousands of dollars to be “married” to United States citizens.
A federal criminal complaint filed yesterday alleges that Chinese nationals paid up to $50,000 to enter into sham marriages in the hopes of obtaining lawful permanent resident cards – often referred to as “Green Cards” – that would allow them to legally reside in the United States. The affidavit in support of the complaint outlines a scheme in which the purported attorney and his daughter lined up U.S. citizen “spouses” for their clients, coached the couples on how to make the marriages appear genuine when questioned by immigration authorities, prepared and filed immigration petitions, and created fraudulent paper trails for the “couples” — including phony apartment leases, wedding photos, bank statements and income tax returns.
The two defendants arrested this morning are:
• Jason Shiao, also known as “Jason Zheng” and “Zheng Yi Xiao,” 65, who allegedly posed as an immigration lawyer; and
• Shiao’s daughter, Lynn Leung, also known as “Linda,” 43, of Pasadena.
A third defendant charged in the case, Shannon Mendoza, 48, of Pacoima, remains at large and is still being sought.
The two arrested this morning were taken into custody by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Shiao and Leung are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
“Marriage fraud presents a serious threat to the integrity of our immigration system by undermining programs designed to allow foreign nationals to come to the United States in a fair and orderly fashion,” said United States Attorney Eileen M. Decker.
While Shiao and Leung served as brokers by allegedly arranging the sham marriages and filing immigration applications, Mendoza acted as a recruiter by finding U.S. citizens who were willing to enter into sham marriages in exchange for payments of up to $10,000. According to the affidavit, however, most of the nearly two dozen “spouses” interviewed by investigators never received the amount they were promised. Mendoza allegedly sought out prospective United States citizen “spouses” who were in dire financial straits and then arranged for them to meet Shiao and Leung.
The affidavit describes how the defendants went to considerable lengths to make the unions appear real. For example, Shiao and Leung allegedly paid for one “couple” to visit the Wynn Hotel in Las Vegas for a purported “honeymoon,” and they allegedly held an actual marriage ceremony at the Dynasty Wedding Studio in Temple City.
“Hollywood may portray marriage fraud as a romantic farce, but it’s a serious crime with serious implications,” said Claude Arnold, special agent in charge for HSI Los Angeles. “Schemes like this not only undermine the integrity of our nation’s legal immigration system, they pose a security vulnerability and potentially rob deserving immigrants of benefits they rightfully deserve.”
As part of Wednesday’s enforcement action, HSI special agents executed a search warrant at Jason Shiao’s Pasadena business, Zhengyi and Associates, formerly known as Jason (USA) International Law Corporation. During the search, authorities seized computers, electronic storage devices and documents thought to be related to the alleged marriage fraud scheme.
The investigation in this case began in September 2012 based on information provided by an anonymous caller who contacted HSI’s toll-free tip line. To date, investigators have identified more than 70 fraudulent immigration applications associated with the defendants, with some dating as far back as October 2006 and others filed as recently as two months ago. Authorities believe the defendants’ clients learned about the service through word of mouth or from advertisements in Chinese newspapers.
USCIS is committed to ensuring the integrity and security of our nation’s immigration system,” said USCIS Los Angeles District Director, Susan M. Curda. “USCIS is vigilant in addressing all cases involved in an immigration fraud and revoking or rescinding benefits that have been obtained unlawfully, while at the same time ensuring that individuals who are eligible for benefits are not harmed by the unscrupulous actions of others.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of conspiracy to commit visa fraud carries a statutory maximum penalty of five years in prison. In addition to prison time, if convicted, Shiao and Leung – who are dual citizens of China and Australia, and themselves lawful permanent residents of the United States – face possible deportation.
This case is the result of a three-year undercover probe by the Los Angeles Document and Benefit Fraud Task Force, which includes HSI, the U.S. Department of State’s Diplomatic Security Service, and U.S. Citizenship and Immigration Services’ (USCIS) Fraud Detection and National Security unit.
Members of the public who have information regarding defendant Shannon Mendoza, who at this time is considered to be a fugitive, are urged to contact HSI’s toll-free tip line at 1-866-DHS-2ICE (866-347-2423).
Huntingdon County Man Charged with Federal Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that today a federal grand jury in Harrisburg returned an indictment against Jay Eugene Reed, age 55, a resident of Three Springs, Pennsylvania. The indictment charges Reed with production of child pornography, possession of child pornography and tampering with witnesses.
According to United States Attorney Peter Smith, Reed was charged in July 2015 by the Pennsylvania State Police with sexually assaulting minors. During the investigation, the State Police seized a cell phone, a computer, and other electronic devices belonging to Reed from his residence pursuant to search warrants. The Indictment alleges that Reed both produced and possessed images of child pornography found on several of the seized devices. The Indictment also alleges that Reed attempted to tamper with a victim or witness by writing a letter asking the victim/witness not to talk to anyone about the case.
Reed has been detained in custody since July 9, 2015 as a result of the sexual assault charges.
This investigation is being conducted by the Federal Bureau of Investigation, the Pennsylvania State Police and the Huntingdon County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
If you have any information regarding this case, please contact Special Agent Clifton Vikara, FBI, at 814-234-0341.
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."
All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hanad Musse Pleads Guilty to Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General John P. Carlin today announced the guilty plea of HANAD MUSTOFE MUSSE, 19, who conspired with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. MUSSE was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. MUSSE pleaded guilty today before Senior U.S. District Judge Michael Davis in United States District Court in Minneapolis, Minn.
“The facts set forth in Mr. Musse’s guilty plea underscore the length and breadth of this criminal conspiracy,” said U.S. Attorney Luger. “This defendant made multiple attempts to leave Minnesota to join ISIL – criminal prosecution was the best remaining option to stop him and potentially save his life. Twin Cities’ youth continue to be the targets of an intense recruiting campaign by ISIL. Fighting back is the shared responsibility of a wide cross-section of Minnesotans – parents, religious leaders, teachers, community leaders and law enforcement. We must continue to work together to end the cycle of recruiting.”
“Hanad Mustofe Musse conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “The National Security Division's highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
As admitted by the defendant in his guilty plea, between March and June 2014, MUSSE became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. MUSSE joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement, and the feasibility of using fraudulent travel documents to travel to Syria.
As admitted by the defendant in his guilty plea, by June 2014, MUSSE knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul International Airport. Nevertheless, MUSSE continued to make preparations to travel to Syria to join ISIL. Between October 20, 2014, and November 6, 2014, MUSSE made five cash withdrawals from his federal financial aid account totaling $2,400. He deposited those funds in a personal checking account that he opened on November 3, 2014. He later used those funds to purchase a bus ticket from Minneapolis to New York City.
As admitted by the defendant in his guilty plea, on November 6, 2014, MUSSE and co-conspirators MOHAMED FARAH, HAMZA AHMED, and ZACHARIA ABDURAHMAN purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, MUSSE purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. MUSSE knew that ABDURAHMAN purchased a ticket on the same flight for the same purpose. After being prevented by federal agents from boarding his flight, MUSSE lied to the agents about the true nature of his travel.
As admitted by the defendant in his guilty plea, after their failed November 2014 attempt to fly overseas, MUSSE and co-conspirators MOHAMED FARAH, ABDURAHMAN, and AHMED met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, MUSSE willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico, and fly overseas to join ISIL using those false passports. On April 6, 2015, MUSSE provided a passport photo of himself to a co-conspirator for the purpose of creating a fake passport. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). When MUSSE’s family learned of his plan to travel, MUSSE requested the return of the photograph from the CHS. However, MUSSE admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, MUSSE was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant United States Attorneys Andrew R. Winter and John Docherty with assistance provided by the National Security Division's Counterterrorism Section.
Defendant Information:
HANAD MUSTOFE MUSSE, 19
Minneapolis, Minn.
Convicted:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Halal Distributor and Halal Certifier Plead GuiltyRead the Press Release
Midamar Corporation (Midamar), a distributor of Halal foods, and ISA Inc. and Islamic Services of America, Inc., (collectively ISA) a globally recognized Halal certifier, both of Cedar Rapids, Iowa, each pleaded guilty this afternoon in United States District Court in Cedar Rapids to one count of conspiracy to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud.
Midamar’s guilty plea was entered by its Treasurer and a corporate director, Yahya Nasser Aossey. ISA’s guilty plea was entered by its President, Secretary, registered agent, and corporate director Jalel Aossey.
The conspiracy charge is punishable by: (1) a term of probation of at least one year but not more than five years; (2) a fine of up to $500,000 or twice the gross gain or loss resulting from the offense, whichever is greater; and (3) a mandatory special assessment of $400.
In addition, each business has agreed to the entry of a judgment of forfeiture in the amount of $600,000 as representing proceeds derived from wire fraud.
A sentencing date has not yet been set.
Midamar and ISA’s founder, William B. Aossey, Jr., was convicted by a jury in July on related charges and is currently detained at the Linn County Jail, awaiting sentencing.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General Office of Investigations, and the Internal Revenue Service Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-CR-00138-LRR.
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Guilty Plea in Case of Disabled Adults Held in Subhuman ConditionsRead the Press Release
Linda Weston, 55, of Philadelphia, Pennsylvania, pleaded guilty today to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements and attics in Philadelphia’s Tacony section and in other states. Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime and false statements. U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for Nov. 5, 2015. Weston has agreed to receive a sentence of life plus 80 years in prison, restitution, fines, supervised release and special assessments.
From approximately 2001 through October 2011, Weston and her co-conspirators lured mentally handicapped individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia; Killeen, Texas; Norfolk, Virginia; and West Palm Beach, Florida. The group targeted mentally challenged individuals who were estranged from their families. Once Weston convinced them to move in, she became their representative payee with Social Security and began to receive their disability benefits and in some instances, their state benefits. On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and Weston Family purposes.
Weston, McIntosh, Wright and others confined their victims to locked rooms, basements, closets, attics and apartments. While confined, the captives were often isolated, in the dark and sedated with drugs placed in their food and drink by Weston and other defendants. When the individuals tried to escape, stole food, or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until Oct. 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city’s Tacony section. The enterprise victimized six disabled adults and four children.
In April 2005, Weston and a co-defendant targeted victim Donna Spadea. They brought Spadea to a home at 2211 Glenview Ave., in Philadelphia. Spadea was kept in the basement with the other victims, fed a substandard diet and not allowed to use the bathroom. On June 26, 2005, Spadea was found dead in the basement. Weston ordered other members of the household to move Spadea’s body to a different location before calling law enforcement.
In 2008, victim Maxine Lee was living with the family. Lee was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined Lee inside a kitchen cabinet and an attic for several months. Lee subsequently died of bacterial meningitis and starvation in November of 2008. Weston ordered other members of the household to move Lee’s body to a bedroom and stage the scene before calling law enforcement. The next day the family left for Philadelphia.
Weston’s daughter, McIntosh, and co-defendant Wright have already pleaded guilty. Co-defendants Gregory Thomas, Sr., and Nicklaus Woodard are awaiting trial.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, IRS Criminal Investigations, the Philadelphia Police Department and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ West Palm Beach Field Office. It is being prosecuted by Assistant U.S. Attorneys Richard P. Barrett and Faith Moore Taylor.
Guilty Plea in Case of Disabled Adults Held Captive in Subhuman ConditionsRead the Press Release
PHILADELPHIA - Linda Weston, 55, of Philadelphia, PA, pleaded guilty today to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements, and attics in Philadelphia’s Tacony section and in other states. Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime, and false statements. U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for November 5, 2015. Weston has agreed to a sentence of life plus 80 years in prison, restitution, fines, supervised release, and special assessments.
From approximately 2001 through October 2011, Linda Weston and her co-conspirators lured mentally handicapped individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia, Pennsylvania, Killeen, Texas, Norfolk, Virginia, and West Palm Beach, Florida. The group targeted mentally challenged individuals who were estranged from their families. Once Linda Weston convinced them to move in, she became their representative payee with Social Security and began to receive their disability benefits and in some instances, their state benefits. On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and Weston Family purposes.
Weston, Jean McIntosh, Eddie Wright and others confined their victims to locked rooms, basements, closets, attics, and apartments. While confined, the captives were often isolated, in the dark, and sedated with drugs placed in their food and drink by Weston and other defendants. When the individuals tried to escape, stole food, or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until October 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city's Tacony section. The enterprise victimized six disabled adults and four children.
In April 2005, Weston and a co-defendant targeted victim D.S. They brought D.S. to a home at 2211 Glenview Avenue, in Philadelphia. D.S. was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, D.S. was found dead in the basement. Weston ordered other members of the household to move D.S.'s body to a different location before calling law enforcement.
In 2008, victim M.L. was living with the family. M.L. was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined M.L. inside a kitchen cabinet and an attic for several months. M.L. subsequently died of bacterial meningitis and starvation in November of 2008. Weston ordered other members of the household to move M.L.'s body to a bedroom and stage the scene before calling law enforcement. The next day the family left for Philadelphia.
Weston’s daughter, Jean McIntosh, and co-defendant Eddie Wright have already pleaded guilty. Co-defendants Gregory Thomas, Sr., and Nicklaus Woodard are awaiting trial.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, IRS Criminal Investigations, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ West Palm Beach Field Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett and Faithe Moore Taylor.
Gangster Disciples Member Receives 120 Months in Federal PrisonRead the Press Release
Memphis, TN – A 22-year-old member of the Gangster Disciples has been sentenced to 10 years in federal prison for felony possession of a firearm. The sentencing was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
Gregory Shaw a.k.a. Violent is part of a Ripley, TN-based subset of the Gangster Disciples, one of the nation’s largest gangs. According to the indictment, on November 4th, 2014, Shaw knowingly possessed a Smith & Wesson .380 caliber pistol. He was a felon at the time.
According to information presented at the sentencing hearing, Shaw, along with several other members of the criminal street gang, robbed five individuals in the Highland Street Apartments Complex at gunpoint. Shaw struck two of the individuals in the head with a pistol. The perpetrators reportedly yelled out phrases symbolizing their allegiance to the Gangster Disciples during the crime.
An anonymous individual alerted the Ripley Police Department of a commotion involving individuals with handguns, according to court information. When officers arrived on the scene, they saw several males running from the back of the apartment complex. Law enforcement was able to locate and apprehend Shaw shortly after the crime behind a nearby residence. A loaded Smith & Wesson .380 caliber pistol and one of the victims’ wallets were in his possession. The gun had been stolen during a residential burglary in May 2013.
Last week, Judge John T. Fowlkes Jr. sentenced Shaw to the statutory maximum of 120 months imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; Tennessee Bureau of Investigation; Ripley Police Department; and 25th Judicial District Attorney General’s Office.
The case was prosecuted by Special Assistant U.S. Attorney Samuel Stringfellow on the government’s behalf.
Four Individuals Plead Guilty to Wire Fraud ConspiracyRead the Press Release
SAN JUAN, P.R. – Today, defendants Joel Díaz Rosario, Mitza Vázquez Meléndez, Marielexy Cestary Roland, and Carlos Calderón Díaz pled guilty before United States Magistrate Judge Bruce J. McGiverin to charges of conspiracy to commit wire fraud and wire fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. On March 25, 2015, a Federal grand jury returned a twenty-three count indictment charging these individuals. The United States Secret Service and the Puerto Rico Police Department were in charge of the investigation.
Beginning in or about June 2008, and continuing to in or about October 2011, the defendants knowingly and willfully conspired or engaged in a scheme to defraud AMGEN to obtain money and property by means of materially false and fraudulent pretenses, representations and promises. The purpose of this scheme was for the defendants to divert AMGEN monies to their pockets using AMGEN’s American Express corporate accounts by making it appear that the transactions were valid purchases to approved vendors when, in fact, they were not. In order to execute the scheme, defendants caused to be transmitted by means of wire communications in interstate commerce numerous fictitious charges for various amounts using AMGEN’s American Express accounts to “approved vendors.”
Defendants admitted that the charges were not actual valid purchases to AMGEN vendors. Rather, this was simply a fictitious method by which to transfer AMGEN monies to defendants for their own pecuniary profit and gain. AMGEN suffered losses totaling over $1.3 million because of this fraudulent scheme.
AMGEN is a multinational company with a manufacturing plant in Juncos, Puerto Rico, which develops biopharmaceutical products. AMGEN’s servers are located in California, Nevada, Rhode Island, Washington, and Colorado. As part of its business, AMGEN issued certain employees American Express credit cards to be used only for official purchases on behalf of AMGEN. Defendant admits that all purchases made using these cards were routed through American Express’ servers in Phoenix, Arizona.
“Some of the defendants had the duty and responsibility to ensure that AMGEN’s facility was able to properly operate twenty four hours a day, seven days a week; but instead, they misused their positions of trust within the company to commit fraud to enrich themselves illegally,” stated Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “AMGEN suffered a loss of over $1.3 million as a result of the scheme; those responsible for this loss were held accountable for their corrupt actions.”
The case was investigated by the United States Secret Service with the collaboration of the Puerto Rico Police Department, and prosecuted by Assistant United States Attorney Luke Cass.
Four Executives Sentenced in Manhattan Federal Court for Their Roles in Multimillion-Dollar Corporate Accounting FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEVEN KAITZ, LATCHMEE MAHATO, a/k/a “Robbie,” and JONATHAN WHEELER, the three owners and principals of Projuban, LLC, d/b/a G3K Displays, Inc., and related entities (“G3K”) – a New Jersey-based company that provided in-store displays for retailers – and ZACHARY KAITZ, an executive at G3K, were sentenced in Manhattan federal court for their roles in an elaborate scheme to defraud G3K’s lenders and customers out of millions of dollars. U.S. District Judge Jed S. Rakoff sentenced STEVEN KAITZ yesterday to 40 months in prison. Today, Judge Rakoff sentenced MAHATO to 24 months in prison; WHEELER to 21 months in prison; and ZACHARY KAITZ to four months in prison. STEVEN KAITZ, MAHATO, WHEELER, and ZACHARY KAITZ, and Kathleen Smith, the fifth defendant charged in this case, each pled guilty earlier this year before Judge Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “This case highlights the lengths people will go to steal money and cover their tracks. These defendants covered much of the fraud playbook, from creating phony purchase orders and invoices to using fake email customer accounts to inflate company revenues, and then used the ill-gotten gains to pay for homes, luxury cars, and private school tuition.”
According to the Indictment and statements made during the proceedings in this case:
STEVEN KAITZ, LATCHMEE MAHATO, and JONATHAN WHEELER were the three owners and principals of G3K, a company that manufactured and designed displays for retailers around the world, including major retailers of sports apparel and footwear. ZACHARY KAITZ served as G3K’s vice president of creative services.
From 2012 to May 2014, in order to trick various lenders, including Veritas Financial Partners, LLC, and MVC Capital, Inc., into lending at least $18.6 million to G3K, STEVEN KAITZ, MAHATO, WHEELER, and others engaged in a scheme to falsely inflate G3K’s revenue and accounts receivable, and as part of the scheme, made and caused to be made materially false and misleading statements about G3K’s financial condition. To create the false impression of sales, the defendants created phony documents, including fake and falsely inflated purchase orders purporting to reflect sales to G3K’s customers. STEVEN KAITZ, MAHATO, WHEELER, and Kathleen Smith also tricked certain of the company’s customers, including Foot Locker, Inc., Smith’s employer, into paying falsely inflated invoices from G3K.
The defendants took elaborate steps to keep the scheme afloat and prevent G3K’s lenders and outside auditors from discovering the fraud. For example, STEVEN KAITZ, MAHATO, and WHEELER were involved in the creation of fake email accounts purporting to belong to fictitious employees of Foot Locker and Adidas, G3K’s two largest customers. STEVEN KAITZ, MAHATO, and WHEELER operated these fake email accounts themselves, pretending to be employees of those customers, and then used those fake email accounts to “verify” false information about G3K’s financial condition, including its sales and accounts receivable, to G3K’s lenders and outside auditors. STEVEN KAITZ, MAHATO, and WHEELER also utilized shell companies to engage in “round-trip” transactions to create the false appearance that customers were paying G3K’s phony outstanding receivables, thereby allowing G3K to continue to borrow from its lenders. ZACHARY KAITZ, who was skilled in graphic design, helped carry out the fraud by creating fraudulent documentation, such as fake invoices, purchase orders, and bills of lading, to support the false representations to the lenders about G3K’s business.
STEVEN KAITZ, MAHATO, and WHEELER further misappropriated approximately $2.8 million of the loan proceeds for their own personal use, to pay for homes and luxury cars, private school tuition, and personal credit card bills, as well as kickbacks to Smith.
As of May 2014, when G3K’s lenders terminated their lending relationships with the company after discovering the fraud, G3K had approximately $18.6 million in loans outstanding.
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In addition to their prison terms, STEVEN KAITZ, 56, of Jersey City, New Jersey, was ordered to forfeit $1,382,427 and pay $18,687,518 in restitution; LATCHMEE MAHATO, a/k/a “Robbie,” 50, of Jamaica, Queens, was ordered to forfeit $2,215,417 and pay $18,687,518 in restitution; JONATHAN WHEELER, 46, of Southport, Connecticut, was ordered to forfeit $957,435 and pay $18,687,518 in restitution; and ZACHARY KAITZ, 32, of Brooklyn, New York, was ordered to forfeit $100,000 and pay $18,687,518 in restitution.
Kathleen Smith, 50, of South Plainfield, New Jersey, is scheduled to be sentenced before Judge Rakoff on October 16, 2015.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Complex Frauds & Cybercrime Unit. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution. Assistant U.S. Attorney Edward B. Diskant of the Money Laundering & Asset Forfeiture Unit is responsible for the forfeiture aspects of the prosecution.
Former Roxse Homes Workers Charged with Taking BribesRead the Press Release
BOSTON – Two former Roxse Homes employees were arrested today on charges that they conspired to rent apartments at the housing development in Roxbury to individuals who were not qualified for those apartments, in exchange for cash bribes.
Mathis Lemons, 41, of Brockton, and Ismael Morales, 35, of Jamaica Plain, were indicted on one count of conspiracy and seven counts of bribery.
The Indictment alleges that Lemons was the assistant property manager and that Morales was a maintenance technician for Roxse Homes, a subsidized housing development on Tremont Street in Roxbury. At Roxse Homes, eligible low-income families and individuals can obtain rental housing for a subsidized rate with Section 8 housing benefits from the U.S. Department of Housing and Urban Development. In 2014, there was a shortage of federally subsidized Section 8 housing in Massachusetts, and Roxse Homes maintained a long waitlist of applicants desiring apartments in the complex. The Roxse Homes waitlist had been closed to external applicants since 2009.
The Indictment alleges that, between approximately September 2014 and February 2015, Lemons and Morales conspired to rent apartments to individuals who were not eligible for subsidized Roxse Homes apartments because they were not on the waitlist. Morales solicited and accepted money from individuals, and in return provided them with blank rental applications. Morales also instructed some of the individuals not to date their applications, or to date their applications in 2006 or 2009, when in fact the applications were completed in 2014. Lemons then added the unqualified individuals to the Roxse Homes computerized waitlist, and falsely wrote that their application dates were 2006 or 2009.
The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of bribery provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Regional Office; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Glenn A. Cunha, Inspector General of Massachusetts; and Boston Police Commissioner William B. Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Minnesota Real Estate Developer Sentenced to 78 Months in Prison and $1.5 Million Special Assessment for Tax Evasion, Mail and Wire FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of BARTOLOMEA JOSEPH MONTANARI, 57, formerly of Bayport, Minn., to 78 months of imprisonment for tax evasion and fraud.
On May 21, 2014, MONTANARI was indicted with one count of Evasion of Payment of Taxes, one count of Mail Fraud, and one count of Wire Fraud. On November 25, 2014, following a 6-day trial, a federal jury found MONTANARI guilty on all counts. On September 9, 2015, U.S. District Judge Ann D. Montgomery sentenced MONTANARI to 78 months, or 6 ½ years, of imprisonment. Judge Montgomery further ordered MONTANARI to pay mandatory restitution of $100,000 and, additionally, to pay more than $1.5 million as a special assessment for the taxes, interest, and penalties owed.
The evidence presented at trial proved that from 2009 until January 2012, MONTANARI willfully evaded the payment of employment and excise taxes owed by him and the three businesses he controlled: St. Croix Development, Emlyn Coal Processing, and Montie’s Resources. One of the ways MONTANARI avoided paying taxes was by transferring over $1.1 million into a bank account in the name of Bella Luca Properties LLC (“Bella Luca”), a shell company with no legitimate business purpose but used by MONTANARI to pay personal expenses. MONTANARI evaded payment of more than $700,000 in taxes and to the federal government.
In December 2009, when the IRS attempted to collect taxes and TFRPs, MONTANARI filed a fraudulent financial statement making numerous misrepresentations to the IRS to avoid paying the taxes he owed. For example, he failed to disclose multiple personal vehicles that he owned and he denied the existence of the Bella Luca bank account, which he was using to receive monthly compensation of $50,000 from two of his companies. MONTANARI also falsely claimed to be living in Bayport, Minnesota, when, in truth, he had already moved into a $1.4 million house he was purchasing in Knoxville, Tennessee.
In addition, as part of a fraud scheme, MONTANARI lied about the sale price of a Caterpillar bulldozer that he needed to purchase for one of his companies. MONTANARI submitted a falsified invoice to the dozer financing company, which issued a check for the dozer for $100,000 more than the true purchase price. MONTANARI kept the extra $100,000 and used it as a down payment for his house in Tennessee.
“Business owners have a responsibility to pay excise taxes, and turn over their employees’ employment taxes withheld from their paychecks, to the Internal Revenue Service,” said Special Agent in Charge Shea Jones of the IRS Criminal Investigation. “This sentence should send a clear message; schemes to evade the payment of taxes are a violation of the Federal Tax Laws and the consequences of such schemes can and will result in significant jail time.”
“Montanari not only evaded payment of taxes and defrauded his business partner, but he repeatedly lied to IRS investigators, pleading poor while living an extravagant lifestyle,” said Assistant United States Attorney Melinda A. Williams. “Today’s sentence sends a strong message to those who would try to cheat the government that this behavior will not be tolerated.”
In sentencing MONTANARI, Judge Montgomery noted that the defendant used the money he stole to finance an “incredibly flamboyant lifestyle,” that this was “not a single error of judgment,” and that MONTANARI had “many chances” to correct his behavior, but did not. Therefore, Judge Montgomery said she focused her sentence on “what will get the message across.”
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, the U.S. Postal Inspection Service, and the Minnesota Financial Crimes Task Force.
Assistant U.S. Attorney Melinda A. Williams prosecuted this case.
Defendant Information:
BARTOLOMEA JOSEPH MONTANARI, 57
Knoxville, Tenn.
Convicted:
- Evasion of Payment of Taxes, 1 count
- Mail Fraud, 1 count
- Wire Fraud, 1 count
Sentenced:
- 78 months in federal prison
- $1.5 million special assessment
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Federal Correctional Officer Pleads Guilty to Accepting Bribes for Smuggling ContrabandRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Robert Lawrence Brown (32, Clermont) has pleaded guilty to accepting a bribe as a public official. He faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning in January 2015, Brown used his position as a Correctional Officer at the Coleman Federal Correctional Complex to smuggle contraband to inmates in exchange for monetary payments. On June 18, 2015, federal agents monitored a meeting between Brown and a cooperating witness. During that meeting, Brown accepted $2,600 for items that he had already smuggled into the prison. When confronted by investigators, Brown admitted that he had illegally negotiated $7,100 in cash payments in return for smuggling cellphones, prescription pills, tobacco, and other items to federal inmates.
This case was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Cook County Sheriff's Police Officer Pleads Guilty to Robbing Drug Dealers While on DutyRead the Press Release
CHICAGO — A former police officer in the Cook County Sheriff’s Department pleaded guilty in federal court today to robbing drug dealers of cocaine, marijuana and contraband cigarettes during home invasions and while on duty.
In a written plea agreement, ROBERT VAUGHAN admitted that he robbed eight drug dealers from 2011 to 2013, earning a total profit of $300,000. Vaughan said he conducted the robberies with two other law enforcement officers, and the trio shared in the profits, according to the plea agreement. The robberies were carried out in Chicago, Cicero, Plainfield, Lyons, Melrose Park and Forest Park.
Vaughan, 44, of Frankfort, pleaded guilty to one count of robbery. He faces a maximum sentence of 20 years in prison, plus a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. U.S. District Judge Samuel Der-Yeghiayan scheduled a sentencing hearing for February 3, 2016, at 10:00 a.m.
According to the plea agreement, Vaughan was assigned to the High Intensity Drug Trafficking Area (HIDTA) team, a joint federal, state, and local initiative to combat the trafficking of illegal narcotics. Vaughan admitted using his position as a police officer to orchestrate deals with drug traffickers for marijuana, cocaine and contraband cigarettes. Immediately after the transactions, Vaughan would arrest and handcuff the individuals – but then keep the narcotics for himself and release the dealers without charges. Vaughan later sold the narcotics to other dealers in exchange for cash.
Vaughan also admitted robbing individuals and homes of marijuana based on information he had learned from confidential informants. He was arrested on Nov. 3, 2014, after he and another law enforcement officer robbed 70 pounds of marijuana from an individual whom they believed was a drug courier. In reality, the individual was an undercover federal agent, according to the plea agreement.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant United States Attorney Sunil Harjani.
Plea Agreement
FnD Gang Members Plead Guilty to Racketeering and Narcotics Charges, Including Mother’s Day ShootingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that AKEIN SCOTT, a/k/a “Keemy,” age 22; SHAWN SCOTT, a/k/a “Shizzle,” age 26; and STANLEY SCOTT, a/k/a “Stizzle,” age 23, all pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbigny gang, or “FnD.”
AKEIN SCOTT pled guilty to eight counts of the Third Superseding Indictment and admitted guilt to the Mother’s Day shooting, which the Indictment alleged was a shooting that was committed in furtherance of the drug trafficking conspiracy and the RICO conspiracy. Additionally, AKEIN SCOTT pled guilty to conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and four counts of Violent Crimes in Aid of Racketeering Assault with Dangerous Weapons.
SHAWN SCOTT pled guilty to five counts of the Third Superseding Indictment and also admitted guilt to the Mother’s Day shooting that was committed in furtherance of the drug trafficking conspiracy and the RICO conspiracy. Additionally, SHAWN SCOTT pled guilty to conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, Violent Crimes in Aid of Racketeering Assault with Dangerous Weapons.
STANLEY SCOTT pled guilty to six counts of the Third Superseding Indictment and admitted to committing a shooting on March 22, 2012, in furtherance of the drug trafficking conspiracy and the RICO conspiracy. STANLEY SCOTT also pled guilty to conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and two counts of Violent Crimes in Aid of Racketeering Assault with Dangerous Weapons.
Each defendant faces at least 20 years in prison, with a maximum sentence of life imprisonment. The drug trafficking conspiracy count carries a mandatory minimum sentence of 10 years in prison. Further, for having committed a shooting in furtherance of the drug trafficking conspiracy, each defendant faces an additional mandatory minimum sentence of 10 years imprisonment, which must be served consecutively to any other sentence. Lastly, the firearms conspiracy and RICO conspiracy counts carry maximum sentences of 20 years and life imprisonment, respectively. U.S. District Judge Ivan L.R. Lemelle set sentencing for January 6, 2016.
According to court documents, the FnD gang was an enterprise engaged in racketeering under federal law. AKEIN SCOTT, SHAWN SCOTT, and STANLEY SCOTT, as members of this gang, conspired to commit numerous overt acts in furtherance of the gang’s activities. These acts included the distribution of illegal narcotics, such as heroin and crack cocaine, as well as crimes of violence, including several shootings. The factual basis, signed by all three defendants, details evidence of drug dealing and shootings that occurred over the course of nearly seven years from 2006 through 2013. FnD members sold heroin, crack cocaine, marijuana, and other illegal drugs near the intersection of Frenchmen and North Derbigny Streets in New Orleans. FnD members often sold drugs in the Frenchmen Meat Market, a convenience store located at the corner of Frenchmen and North Derbigny Streets. FnD members used intimidation, violence, and threats of violence to maintain the gang’s control over turf that extended from Elysian Fields Avenue, North Johnson Street, the I-10 Interstate Highway, St. Anthony Street, and North Claiborne Avenue.
Four other defendants previously pled guilty in the course of this prosecution. CRYSTAL SCOTT, RICHMOND SMITH, and GRALEN BENSON pled to gun and drug-related charges. The grand jury subsequently returned a superseding Indictment charging the remaining defendants with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, among other charges. Defendant JEREMIAH JACKSON pled guilty to RICO conspiracy as well as gun and drug-related charges on May 13, 2015. Defendant BRIAN BENSON pled guilty to RICO conspiracy and narcotics conspiracy on August 7, 2015.
With today’s plea, the sole remaining defendant in this case is TRAVIS SCOTT, who is alleged to be the leader of the FnD gang. TRAVIS SCOTT is scheduled for trial on October 19, 2015, before U.S. District Judge Ivan L.R. Lemelle.
The Indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.
Florida Man Sentenced to 30 Months in Prison for Interstate Travel in Aid of an Unlawful ActivityRead the Press Release
Gulfport, Miss. – Inocensio Villarreal, 40, of Lantana, Florida, was sentenced today by Chief U. S. District Judge Louis Guirola to 30 months in federal prison followed by three years of supervised release for interstate travel in aid of an unlawful activity, announced U.S. Attorney Gregory K. Davis. Villarreal was also ordered to pay a $4,000.00 fine.
On June 26, 2013, Villarreal, a U.S. citizen, was stopped by law enforcement officers on I-10 in Jackson County, Mississippi. A search of his van produced wrapped bundles of U.S. currency totaling $414,450. The investigation revealed that Villarreal traveled in interstate commerce through Texas, Georgia, and Mississippi, knowingly engaging in acts to promote and carry on an unlawful activity; that is, the transporting of currency, or bulk cash smuggling, in furtherance of the business of a drug trafficking organization.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Andrea Jones and Stan Harris.
Firearms Trafficker Sentenced to 60 Months in Federal Prison on Firearms Conviction Stemming from Unlawful Manufacture of FirearmsRead the Press Release
DALLAS — A firearms trafficker, who pleaded guilty earlier this year to one count of aiding and abetting the unlawful manufacturing of firearms, was sentenced today by U.S. District Judge Barbara M. G. Lynn, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Maria Deleon, 57, of Camp Wood, Texas, was sentenced to 60 months in federal prison. He has been in custody since October 2014 on a related federal criminal complaint. Camp Wood is located in southwestern Real County
According to the factual resume filed in the case, between December 2010 and May 2011, Deleon entered into a criminal venture with others to manufacture firearms without a license and then sell those firearms to others. Specifically, Deleon purchased a number of AR-15 and AK firearm receivers that needed to be manufactured to become fully functional firearms suitable for resale. Deleon then communicated with two individuals whom he met at a gun show in North Texas, and he offered to pay them if they manufactured his firearms receivers into fully functional firearms. These two individuals agreed to do so, for varying prices depending on the type of firearm, although neither one had an ATF license to engage in the business of manufacturing firearms. On multiple occasions, however, Deleon paid these individuals to manufacture firearms. Deleon also purchased firearms from them.
Ultimately, Deleon sold the firearms to other individuals who, according to the criminal complaint, took them across the Mexican border. Deleon was involved in trafficking more than 600 firearms, 50 of which have been recovered, to date, in Mexico.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Cara Pierce prosecuted.
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Federal Jury Convicts Juan Alberto Robles Zavala for Attempting to Entice A Child Under the Age of 18 for Sex Using A Facility or Means of Interstate CommerceRead the Press Release
KNOXVILLE, Tenn. - Following a three day trial in U.S. District Court a jury convicted Juan Alberto Robles Zavala, a Mexico Nationalist working in Chattanooga, Tenn., of attempting to entice a child under the age of 18 for sex using a facility or means of interstate commerce.
Sentencing is set for 2:00 p.m., Jan. 20, 2016, in U.S. District Court in Knoxville, Tennessee. Zavala faces a mandatory minimum sentence of 10 years up to life in prison.
Evidence presented at trial showed that law enforcement placed a female profile on an adult sex website “looking for right Dom needing a teacher for Taboo” for herself and her younger version. Zavala replied to the profile and learned that the younger version was a 12-year-old child. Over a four month period of time he emailed who he believed to be a mother and 12-year-old daughter with explicit details of his intent and desires to have sex with the child. Zavala was arrested when he arrived at the meeting location with condoms and a sexual aid.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Zavala included Knoxville Police Department, Internet Crimes Against Children (ICAC) Task Force, Blount County Sheriff’s Department, Homeland Security Investigations. Assistant U.S. Attorney Jennifer Kolman represented the United States at trial.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Bluffton Man Indicted for Illegal Reentry of an Alien
Arturo Luis Hernandez Hernandez, age 34, of Bluffton, was charged in a one-count Indictment with Illegal Reentry of an Alien, in violation of Title 8, United States Code, Section 1326(a). The maximum penalty Hernandez could receive is 2 years imprisonment and a $250,000 fine. The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.North Charleston Man Charged with Production and Possession of Child Pornography and Felon in Possession of a Firearm
Albert Taylor, age 51, of North Charleston, was charged in a three-count Indictment with Production of Child Pornography, Possession of Child Pornography, and Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 2251(a), 2252A(a)(5)(B), and 922(g)(1) respectively. Taylor could receive a mandatory minimum sentence of 15 years imprisonment and a maximum of 30 years imprisonment and a $250,000 fine for the Production of Child Pornography count, a maximum sentence of 20 years imprisonment and a $250,000 fine for the Possession of Child Pornography count, and a mandatory minimum sentence of 15 years imprisonment and a maximum of Life imprisonment and a $250,000 fine for the Felon in Possession of a Weapon count. The case was investigated by agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Essex County, New Jersey, Man Sentenced to 30 Years in Prison for Recording His Sexual Abuse of A GirlRead the Press Release
NEWARK, N.J. – A Newark man was sentenced to 360 months in prison today for inducing a girl to engage in sexually explicit conduct while he took pictures and video, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 59, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to Counts One through Five and Count Seven of a superseding indictment charging him with sexual exploitation of a child and possession of child pornography. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Rios admitted that on five separate dates between March 4, 2008 and Nov. 8, 2011, he induced a girl under the age of 12 to engage in sexually explicit conduct for the purpose of taking pictures and videos of the child’s genitals and the sexually explicit conduct. Rios’s also admitted that he possessed images of child sexual abuse on Feb. 5, 2013. Several of the videos charged in the superseding indictment depict Rios’s abuse of the child victim in the cab of a tractor trailer truck.
In addition to the prison term, Judge Chesler sentenced Rios to a lifetime of supervised release.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Richard M. Frankel; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the N.J. Regional Computer Forensics Laboratory with the investigation leading to today’s sentencing.
The government is represented by Assistant United States Attorneys Danielle Alfonzo Walsman and Jonathan W. Romankow of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Employee of New Jersey-Based Trucking Company Charged with Stealing More Than $1 Million from Her EmployerRead the Press Release
NEWARK, N.J. – An employee of a New Jersey based-trucking company was arrested today and charged with swindling her employer out of more than $1 million by issuing company checks for her own benefit, U.S. Attorney Paul J. Fishman announced.
Tracey Perrigan, 53, of Sparta, Tennessee, is charged by complaint with two counts of wire fraud. FBI agents arrested Perrigan this afternoon at her place of employment in Branchburg, New Jersey. She appeared late this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
Perrigan was an employee of a company identified in the complaint as “Company A,” the corporate parent of several subsidiary trucking, rigging, and transportation companies. Company A was headquartered in Oceanside, New York, and had a Branchburg facility. From September 2012 through August 2015, Perrigan allegedly orchestrated a check scheme through which she diverted funds from her employer to Southern Cross Transport Tow and Recovery (“Southern Cross”), a Tennessee corporation owned and operated by Perrigan and her husband.
Company A used the “Comchek” system, which enables clients to authorize and monitor fuel and repair expenditures by drivers in remote locations. As part of her employment duties, Perrigan was responsible for authorizing Comcheks drawn on Company A’s bank account. Before a Comchek can be presented for payment, the user must obtain a 23-digit code that authorizes the expenditure. The first five digits of the code are the unique number assigned to each Comchek customer.
According to the complaint, Perrigan allegedly issued Comcheks with Company A codes directly to Southern Cross. The Comcheks appeared legitimate and were accepted for payment because Perrigan used her position with Company A to generate seemingly valid Company A codes. As a result, Perrigan and Southern Cross received more than $1.2 million in Company A funds even though Company A has no actual business with Southern Cross.
Each wire fraud count is punishable by a maximum potential penalty of 30 years in prison and $1 million fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Employee Leasing Company Owners Arrested on Tax Fraud ChargesRead the Press Release
PHILADELPHIA - Moni Son and Sreang Po, both 60, both naturalized U.S. citizens living in Philadelphia, were charged by indictment, unsealed today, with conspiracy to defraud the United States and failure to collect and pay over employment taxes, announced United States Attorney Zane David Memeger.
From 2007 through 2008, Son and Po were corporate officers of Asian American Labor Connection, an employee leasing corporation located in Philadelphia from 2007 through 2008. As corporate officers of Asian American Labor Connection, Son and Po were required to collect and remit, on a quarterly basis, Federal Insurance Contribution Act (FICA) taxes to the Internal Revenue Service arising from the wages that they paid their employees.
According to the indictment, during the period of March 31, 2007 through December 31, 2007, Asian American Labor Connection had taxable wages of $760,728.73, but only reported $88,288.00 as taxable wages. During the period of March 31, 2008 through December 31, 2008, according to the indictment, Asian American Labor Connection had taxable wages of $751,438.43, but only reported $91,647.43 as taxable wages to the IRS.
If convicted the defendants face a maximum possible sentence of 10 years in prision, a fine of $ 500,000, a special assessment of $200, and three years of supervised release.
The case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
East St. Louis Man Pleads Guilty to Drug Trafficking, Firearms Offenses, and Obstruction of JusticeRead the Press Release
On September 8, 2015, Ayiko L. Paulette, 40, of East St. Louis, Illinois, pled guilty to a superseding indictment charging him with Conspiracy to Distribute Controlled Substances, Maintaining a Drug-Involved Premises, being a Felon in Possession of Firearms, Distribution of Cocaine, Interstate Travel In Support of Racketeering, and Conspiracy to Obstruct Justice, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Sentencing in the matter is set for January 13, 2016, at 1:30 p.m. before United States District Judge Nancy J. Rosenstengel. At sentencing, Paulette faces a minimum of 20 years in federal prison, to a maximum of Life in prison, a fine of up to $10,000,000, at least 10 years’ supervised release, and a $100 special assessment per count.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, the United States Marshals Service, the Illinois State Police, and the East St. Louis Police Department. This case is being prosecuted by Assistant United States Attorney Donald S. Boyce.
Delmont Man Admits Participating in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH - A Westmoreland County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Tieriq Pinnix, 21, of Delmont, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Tieriq Pinnix was intercepted over the wire conspiring with others, including his father, Cecil Pinnix, to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for January 22, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant on home detention with electronic monitoring.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department conducted the investigation that led to the prosecution of Tieriq Pinnix.
Defendants in Wentzville Pawn Store Burglary SentencedRead the Press Release
St. Louis, MO – KEENAN THOMAS and BRANDON FOSTER were sentenced to 188 months and 144 months, respectively, on charges involving their participation in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri.
According to statements made in court, Brandon Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. October 16th and stole 33 firearms -- 27 handguns and 6 rifles. On October 17, 2014, ATF attempted to arrest Foster and Thomas using three vehicles. Rather than backing out, Thomas drove forward on the grass, turning right in an attempt to elude the agents. He struck one of the ATF vehicles and then proceeded to back up almost striking an agent. After one shot was fired by an agent, Thomas stopped his car. Upon their arrest, agents recovered a Springfield Armory 9mm pistol equipped with an extended 33-round magazine on the floorboard directly under Foster. Foster admits the theft and possession of the 33 firearms from All Star and the purchasing of the ammunition and magazine from Cabela’s.
Thomas and Foster, St. Louis City, previously pled guilty and appeared Wednesday for sentencing before United States District Judge Catherine D. Perry.
Eugene Davis, St. Louis City, has also pled guilty to related charges and awaits sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Defendants Arrested with Guns in Baltimore City Face Federal Charges in 14 Separate CasesRead the Press Release
Baltimore, Maryland – Fourteen defendants arrested with illegal guns in Baltimore this summer will now face federal charges as a result of an alliance between local and federal officials. The defendants were transferred from state custody to federal court. All are charged with being a felon in possession of a gun and face a maximum sentence of 10 years in federal prison.
“These federal indictments serve to put gun-toting criminals on notice that federal prosecutions await them if they choose to arm themselves with a firearm,” said Baltimore Police Department Interim Commissioner Kevin Davis. “We will continue to work collaboratively to identify and prosecute those who choose to continuously violate the law while we are working to make this city safe.”
“This demonstrates the important collaboration we have with our federal partners and sends a strong message to those repeat violent offenders that we will not let them get away with possessing guns in our City,” stated State’s Attorney Marilyn Mosby.
“ATF will continue to prioritize our efforts in combatting violent crime and targeting violent offenders in order to keep our communities safe,” said Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division. “Let it be clear - anyone who makes the decision to illegally carry a gun on the streets of Baltimore should be prepared to be face the consequences that accompany federal prosecution.”
“Police and prosecutors are working to identify armed criminals who deserve to be prosecuted in federal court,” said U.S. Attorney Rod J. Rosenstein.
Under an initiative by the Baltimore City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City State’s Attorney’s Office and the United States Attorney’s Office, prosecutors and police review cases of defendants arrested for firearms violations and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
The following defendants, all of Baltimore, have been charged with being a felon in possession of a gun:
Devonte Boone, age 27; Derek Anthony Davis, age 31; Marcus Davis, age 34; Anthony Evans, age 23; Dion Green, age 46; Gary Hall, age 20; Paul Jones, age 42; Jemal Kimball, age 30; James Kingsborough, age 24; Bernard Lawson, age 29; Larry Matthews, age 34; Daniel McKenzie, age 26; Alfred Patterson, age 50; and
Charles Quailes, age 38.Paul Jones is also charged with possession with intent to distribute a controlled substance, and faces a maximum sentence of 20 years. Charles Quailes is also charged with possession of an unregistered weapon and faces a maximum sentence of 10 years.
Any previously convicted criminal who possesses a gun faces a sentence of up to ten years in federal prison, even if the criminal did not use the gun. There is no probation or parole in the federal criminal justice system.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised ATF, Baltimore Police Department and Baltimore State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael Hanlon, Seema Mittal, Clinton J. Fuchs, Patricia C. McLane, Bonnie S. Greenberg and Aaron S. J. Zelinsky, and Special Assistant U.S. Attorney Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, and Special Assistant U.S. Attorney Shelly S. Glenn, who are prosecuting the cases.
Defendant Charged in Federal Court for Possessing Medication Stolen from a CVS Pharmacy During the Baltimore RiotsRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Rashad Robertson, age 25, of Baltimore, with possession of Alprazolam, a prescription drug stolen during the looting on April 27, 2015 from the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore (CVS Pharmacy). The complaint was filed on August 31, 2015 and unsealed today.
The complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
“Federal law enforcement agencies are working closely with local police and prosecutors to investigate crimes committed during the Baltimore riots,” said U.S. Attorney Rod Rosenstein.
On April 27, 2015, the CVS Pharmacy was looted and burned. According to the affidavit in support of the complaint, on June 17, 2015, during the investigation of the pharmacy robbery, Baltimore police officers followed an individual, not Robertson, who was suspected of having a handgun, to a home in the 2400 block of Francis Street. They subsequently recovered a BB gun replica in the backyard.
The affidavit further alleges that the owner of the residence consented to a search. During an initial sweep of the dwelling, various prescription medications were located in plain view from the upstairs landing on a dresser in a rear bedroom. Many of the medications had “Return to stock vial” printed on the bottles with no prescribed recipient and “XXXX” appearing where a name would normally be provided. The bottles had “CVS Pharmacy” labels affixed to them. The residence is located approximately one block east from the CVS Pharmacy.
According to the affidavit, the owner advised that Robertson resided in the bedroom of the home that contained the medications. Robertson was also present during the search. When questioned, Robertson allegedly told investigators that the medications came from the April riots, and that an associate brought the medications to his house after the riots and put them on his dresser.
The affidavit alleges that further investigation revealed that the prescription bottles had been filled at the CVS Pharmacy. One of the bottles contained 60 pills of Alprazolam. DEA agents obtained video from the CVS Pharmacy. The video allegedly depicted an individual, identified as Robertson, in the pharmacy going through shelves where narcotics are located. Robertson allegedly can be seen taking unknown pill bottles.
Robertson faces a maximum sentence of one year and a $1,000 fine. Robertson had his initial appearance today and was detained pending a detention hearing scheduled for Friday, September 11, 2015, at 2:30 p.m. before U.S. Magistrate Judge Beth P. Gesner.
A federal grand jury returned an indictment on July 16, 2015 charging Raymon Carter, age 24, of Baltimore, with committing arson on April 27, 2015 of the same CVS Pharmacy. Carter has pleaded not guilty.
A criminal complaint and indictment are not a finding of guilt. An individual charged by criminal complaint or indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department and ATF for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Seema Mittal, who is prosecuting the case.
Dallas County Men Receive Long Federal Prison Sentences for Committing 2014 Armed Robbery of Subway Restaurant in Richardson, TexasRead the Press Release
DALLAS — Two men who admitted committing the armed robbery of a Subway restaurant in Richardson, Texas, last year, have been sentenced to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Antonio Demond Douglas, 25, of Richardson, was sentenced by U.S. District Judge Barbara M. G. Lynn to serve a total of 125 months in federal prison. A few weeks ago, co-defendant Allen Leon Pleasant, 26, of Dallas, was sentenced to serve a total of 117 months in federal prison. Each pleaded guilty to one count of interference with commerce by robbery and one count of possessing, using and brandishing a firearm in furtherance of a crime of violence.
According to documents filed in the case, at approximately 7:00 p.m., on June 24, 2014, Douglas and Pleasant entered the Subway restaurant at 212 East Spring Valley Road in Richardson with the specific intent to commit robbery. Once inside, Douglas and Pleasant produced firearms, pointed them at a Subway employee and demanded money from the register. The employee, in fear for his life, removed cash from the register and placed it in a plastic bag Douglas provided.
During the course of the robbery, Douglas and Pleasant also robbed three customers inside the restaurant, taking personal items and money, and then they ran from the store. In a subsequent vehicular chase with law enforcement, Douglas and Pleasant operated their vehicle in a manner that created a substantial risk of death or serious bodily injury to other motorists.
The Richardson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
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Convicted felon pleads guilty to drug distribution and possession of a firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that James Miller Johnson, III, 27, of Parkersburg, West Virginia pleaded guilty to a federal drug charge and being a felon in possession of a firearm. Johnson admitted that on August 14, 2014, he sold cocaine base and heroin to a confidential informant working with law enforcement. The drug sale took place in Parkersburg. When Johnson was arrested on the drug charge on November 19, 2014, he had a gun. Johnson was prohibited from possessing a firearm because of a prior felony drug conviction in 2009 from Ohio. Under federal law, a convicted felon is prohibited from possessing any firearm.
Johnson faces up to 30 years in prison and a $1,250,000 fine when sentenced on December 9, 2015.
The Parkersburg Narcotics Task Force and Vienna Police Department conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Convicted Felon Sentenced to 96 Months in Federal PrisonRead the Press Release
DALLAS — Tevin Rashad Wright, a 27-year-old Grand Prairie, Texas, man with three prior felony convictions, has been sentenced to 96 months in federal prison, by U.S. District Judge Ed Kinkeade, following his guilty plea in May 2015 to one count of being a felon in possession of a firearm. U.S. Attorney John Parker of the Northern District of Texas made the announcement this afternoon.
The day after an August 2014 burglary of a residence in Grand Prairie, Texas, during which several firearms were stolen, the Grand Prairie Police Department’s investigation resulted in the arrest of Wright for the offense. Prior to the date of the robbery, Wright had been convicted of three felony offenses since 2008, all involving cocaine, in Dallas and Tarrant counties.
This case was prosecuted as part of the Project Safe Neighborhood initiative, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Northern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The Grand Prairie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
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Convicted Felon Sentenced for Illegal Possession of GunsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Tommy Ladon Burt, 41, of Evergreen, was sentenced today in federal court on a single charge of being a convicted felon in possession of a firearm. Burt pled guilty to the charge in April of this year.
United States District Court Judge William H. Steele imposed a sentence of 21 months imprisonment, and he ordered that Burt undergo drug and mental health treatment while in custody. He also ordered that Burt receive drug and mental health treatment as conditions of his supervised release term of three years, which will commence when he is released from his prison sentence. No fine was imposed in the case.
The case was investigated by the Conecuh County Sheriff’s Office, the Alabama Law Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Cleveland man faces drug and firearm chargesRead the Press Release
A federal grand jury returned a five-count indictment charging Kevin G. Collins, 33, of Cleveland, with violations of the federal narcotics and firearm laws, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Count 1 of the indictment charges the defendant with conspiracy to possess with the intent to distribute marijuana. Count 2 of the indictment charges the defendant with carrying a firearm during and in relation to a drug trafficking crime. Counts 3 through 5 of the indictment charge the defendant with using the U.S. Mail to assist in the marijuana conspiracy.
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 record, if any, the Defendant’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Daniel J. Riedl and Matthew B. Kall. The investigation was conducted by the United States Postal Inspection Service, Cleveland, Ohio.
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 Area Residents Charged in Puerto Rican ID Theft RingRead the Press Release
CINCINNATI – A federal grand jury has charged nine individuals in an indictment related to the trafficking of real, Puerto Rican identities in the Cincinnati area. Defendants were arrested in Cincinnati and in Puerto Rico today.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS), Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General announced the indictment and arrests.
The indictment alleges that the defendants are linked in a vast document trafficking organization, wherein defendants obtained birth certificates and Social Security cards in the names of real individuals from Puerto Rico, shipped those document sets to Southern Ohio and then sold the document sets in the Cincinnati area. The defendants allegedly sold the document sets for $900-$1200 each.
The defendants include:
- Cipriano Diaz, 38, of Cincinnati
- Ramon E. Fuentes Morillo, 49, of Puerto Rico
- Oris Mercedes Baez Ramirez, 49, of Hamilton
- Jorge Roblero, 34, of Cincinnati
- Kathya Roblero, 50, of Cincinnati
- Chilango Zuniga, 40, of Hamilton
- Esmeralda Hernandez Cervantes, 36, of Cincinnati
- Susana Angiolina Urena, 44, of Hamilton
- Fernano Evelio Velasquez-Morales, 31, of Cincinnati
Each of the defendants was charged with conspiracy to commit wire and mail fraud, a crime punishable by up to 20 years in prison. The indictment also includes 29 counts of aggravated identity theft, a crime punishable by a mandatory two years imprisonment for each count, and two counts of money laundering, which each carry a maximum sentence of 20 years in prison.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant U.S. Attorney Jessica W. Knight and Cincinnati Branch Chief Emily N. Glatfelter, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Centralia Man Sentenced on Gun, Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Craig Allen Heitkamp, 51, Centralia, Illinois, was sentenced on Friday, September 4, 2015, on Possession of Pseudoephedrine with the Intent to Manufacture Methamphetamine and Unlawful User of a Controlled Substance in Possession of Firearms charges to 87 months in federal prison, to be followed by 12 months of supervised release, a $500 fine and a $200 special assessment. Heitkamp was also ordered to forfeit certain firearms.
Court documents establish that from approximately May 2010, through and including June 4, 2014, Heitkamp manufactured methamphetamine in Centralia, Illinois, using pseudoephedrine pills he obtained from various people or merchants. In exchange for the pseudoephedrine pills others obtained for him, Heitkamp traded cash or methamphetamine he manufactured. Heitkamp was a methamphetamine user who also possessed handguns in violation of federal law.
Information leading to the charges against Heitkamp was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, the Centralia Police Department, Jefferson County Sheriff’s Department and the Mt. Vernon Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
California Man Sentenced to 13 Years for Multi-Million Dollar Fraud Scheme in KentuckyRead the Press Release
FRANKFORT - Yesterday, a federal judge sentenced a California man to 13 years in federal prison for his role in an oil investment scheme in Kentucky that defrauded over 200 investors, nationwide, out of more than $3,000,000.
U.S. District Judge Gregory Van Tatenhove sentenced Henry Irving Ramer, 76, for mail fraud, securities fraud, and conspiracy to launder money. Under federal law, Ramer must serve at least 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 3 additional years.
Ramer was convicted by a jury in May of this year. According to the evidence at trial, Ramer and others raised money from investors by making misrepresentations and failing to disclose material facts about the oil well investments in Barren, Monroe, and Cumberland Counties. Ramer’s role was as a salesman and manager of two Los Angeles-based telemarketing sales operations. In 2013 and 2014, he and his team cold-called potential investors around the country and fraudulently convinced many of them to invest. Ramer also created false offering memorandums and a promotional video. Every one of the investors lost all or nearly all of their investment.
In January 2015, John Westine, another leader of the scheme, was convicted of mail fraud, securities fraud, and money laundering conspiracy after a two-week jury trial. He is scheduled for sentencing on September 18. Another co-defendant, Mark Cornell, has pleaded guilty and is also set for sentencing later this month. A fourth defendant, Westine’s half-brother Michael Hicks, was sentenced in July to three years in prison for his role.
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 made the announcement.
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.
Buffalo Woman Sentenced on Tax Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Malisha Mobley, 30, of Buffalo, NY, who was convicted of conspiracy to defraud the government in the filing of false tax returns, was sentenced to three years probation to include six months home detention by U.S. District Judge Richard J Arcara. The defendant has also been ordered to pay restitution totaling $33,016.00 to the Internal Revenue Service and $4,177.00 to the New York State Department of Taxation and Finance.Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant obtained fraudulent W-2 forms from James Chatmon and used the forms to file false tax returns for tax years 2011, 2012 and 2014. As a result the defendant obtained tax refunds which she was not entitled to receive.
In addition, Mobley recruited two other individuals to file false tax returns by providing them with the fraudulent W-2 forms obtained from James Chatmon. Those individuals used the forms to file false tax returns for tax year 2012. As a result of the defendant’s actions, losses to the Internal Revenue Service and New York State Department of Taxation and Finance totaled $37,193.00.
James Chatmon was convicted and will be sentenced on October 7, 2015 at 12:00 p.m. by Judge Arcara.
The sentencing is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Buffalo Man Pleads Guilty to Lying AboutRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Damon Hunter, 25, of Buffalo, NY, pleaded guilty to false declarations before grand jury, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison and a $250,000 fine. The prison sentence may be imposed consecutively to a seven-year New York State term of incarceration that Hunter is currently serving for firearm possession.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that the case involved two shootings on the East Side of Buffalo, the murder of Schuele Boys Gang associate Walter Davison on August 26, 2012, and the murder of Quincy Balance and attempted murder of the defendant on August 30, 2012. It is alleged that members of the Schuele Boys Gang believed that Balance and Hunter were involved in the murder of Walter Davison and as a result committed their own fatal and near fatal violence four days later.
During the federal grand jury investigation that has resulted in the indictments of 28 Schuele Boys Gang members and associates, Hunter was subpoenaed to testify about the August 30 shooting. Despite the murder of his friend and his own personal involvement as a victim in the event, Hunter lied about his knowledge of the shooter.
Despite Hunter’s actions, the grand jury eventually indicted Roderick Arrington for the August 30, 2012, shooting.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
Sentencing is scheduled for December 21, 2015 at 12:30 p.m. before Judge Arcara.
Bucks County Man Sentenced for Distribution of Child PornographyRead the Press Release
PHILADELPHIA - William Kinsley, 67, of Langhorne, PA, was sentenced today to 135 months in prison for distribution of child pornography. Kinsley, a retired Lieutenant with the Philadelphia Fire Department, used the screen name “fire,” to troll the Internet for child pornography and re-distribute some of the illegal child pornography that he found. He pleaded guilty on February 17, 2015.
Kinsley possessed a ThinkPad and two computers. A forensic examination of the three devices revealed 344 images of child pornography in unallocated space and one 23 minute long child pornography video in a temporary file in the AOL directory. Among the child pornography images on Kinsley’s computer were many for which the National Center for Missing and Exploited Children can establish the victim was a real child. Included among these are the 23 minute video and many still images.
In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered 10 years of supervised release, a $10,000 fine, restitution of $25,000, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Paul G. Shapiro.