Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
28 August 2015
Columbus Man Pleads Guilty to Marijuana, Money Laundering, Gun ChargesRead the Press Release
COLUMBUS, Ohio – Richard Spriggs, Sr., 47, of Columbus, pleaded guilty in U.S. District Court to conspiracy to possess with intent to distribute marijuana, conspiracy to commit money laundering and unlawful possession of a firearm.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Agency (DEA), Kathy A. Enstrom. Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Columbus Police Chief Kim Jacobs, announced the plea entered into yesterday before U.S. Magistrate Judge Terence P. Kemp.
According to court documents, Spriggs and others in an organization were responsible for distributing multiple kilograms of marijuana by use of Ohio residences, business fronts, commercial freight, semi tractor-trailers and vehicles. Spriggs and others transported marijuana to various places in Columbus, Ohio from suppliers in Houston, Texas. The drug shipments were disguised as hair care products, beauty supplies and whole grain rice.
Spriggs used the drug proceeds to purchase at least two residences by paying cash. He used pre-paid debit cards which he funded in another person’s name as his personal credit card, buying air travel, rental vehicles and cellular telephone bills.
Spriggs pleaded guilty to one count of possession with intent to distribute marijuana, one count of money laundering and one count of unlawful possession of a firearm by a convicted felon.
The marijuana charge carries a potential maximum sentence of 40 years imprisonment, and conspiracy to commit money laundering and unlawful possession of a firearm each carry a potential maximum sentence of 10 years in prison.
Spriggs has agreed to forfeit approximately $86,000 in cash, firearms and ammunition.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Chattanooga Pill Mill Operator Sentenced to 280 Years in PrisonRead the Press Release
CHATTANOOGA, Tenn. – On August 27, 2015, Barbara Lang, a.k.a. “Aunt Bea,” 61, of Rossville, Ga., was sentenced by the Honorable Curtis L. Collier, U.S. District Judge, to serve 280 years in federal prison.
After a 25-day trial that spanned almost three months, Lang was convicted of two counts of conspiring to distribute and dispense Schedule II and IV controlled substances, outside the scope of professional practice and not for a legitimate medical purpose; five counts of maintaining a premises for the purpose of distributing controlled substances; and fourteen counts of structuring financial transactions to evade reporting requirements.
Lang was charged along with three other individuals. Her daughter, Faith Blake, pleaded guilty to conspiring to illegally distribute drugs through Superior One medical clinic, a business she operated with her mother. Blake also pleaded guilty to conspiring to illegally distribute drugs through Elite Care, another Chattanooga pain clinic that she operated. Additionally, she pleaded guilty to obstructing the Internal Revenue Service (IRS) and failure to appear for a federal court proceeding. Sentencing for Blake is set for 9:00 a.m., October 1, 2015, in U.S. District Court in Chattanooga.
Dr. Jerome Sherard, Superior One’s medical director, pleaded guilty to conspiring to illegally distribute drugs at Superior One Medical Clinic and at the Sherard Clinic, his own practice. Sherard was sentenced to serve five years in federal prison. Sherard was also ordered to forfeit $192,956.31 to the United States.
Charles Larmore, a nurse practitioner employed by Lang at Superior One and Primary Care, pleaded guilty to conspiring to illegally distribute drugs at both those clinics. Larmore was sentenced to serve 13 years in federal prison. Larmore was also fined $20,000 and ordered to forfeit $375,829.20 to the United States.
“We are very pleased with this very lengthy sentence given to this defendant, who disbursed these very addictive drugs to many people over a long period of time. Illegal opioid pain medication distribution organizations, such as this, contribute to an epidemic of addiction in the United States. We thank the cooperative work of the federal, state and local agencies, who investigated this case and participated in this very lengthy trial. She will never be able to participate in the illegal distribution of prescription drugs again,” said U.S. Attorney Bill Killian.
Daniel R. Salter, Special Agent in Charge, Drug Enforcement Administration (DEA), Atlanta Division stated, “The dispensing of addictive prescription pain medication under the guise of a doctor’s care is not about the good of the community or an individual’s specific health needs; it is about greed and those involved in “pill mill” activity are in fact drug dealers. The sentencing of this defendant makes the Chattanooga area a safer place today.”
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lang, Blake, Sherard and Larmore included: the Drug Enforcement Administration (DEA); IRS - Criminal Investigation; Tennessee Bureau of Investigation; Hamilton County Sheriff’s Office; Chattanooga Police Department; Roane County Sheriff’s Department; and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
###
Attempting to Export Ammunition to Mexico Sends Woman to Federal PrisonRead the Press Release
BROWNSVILLE, Texas - A 53-year-old resident alien from Mexico who resided in Brownsville, has been ordered to federal prison following her conviction of attempting to export 3,500 rounds of ammunition and one AK-47 rifle, announced U.S. Attorney Kenneth Magidson. Rosa Maria Melendez-Jimenez was convicted in May 2015, following a three-day trial and less than two hours of deliberation.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Melendez-Jimenez a total sentence of 78 months in federal prison. Melendez-Jimenez is expected to face deportation proceedings following her release from prison.
During trial, the jury heard that law enforcement suspected that a possible unlawful exportation of ammunition was going to occur at the Gateway International Bridge. Investigators conducted surveillance there and stopped Pedro Ramirez-Aguirre who was in possession of a dolly loaded with two black duffle bags. The bags were found to contain a total of 2,500 rounds of 7.62 x 39 mm caliber ammunition, 1,000 rounds of .223 caliber ammunition, one AK-47 rifle, one large capacity .223 rifle magazine, two 7.62 x 39 mm rifle magazines and tactical gear.
Law enforcement followed the vehicle that dropped Ramirez-Aguirre off at the bridge which led them to the home of Melendez-Jimenez. The investigation continued and agents soon recovered a third duffle bag in the alley behind her home. That bag was found to contain 2,500 rounds of 7.62 x 39 mm caliber ammunition.
Melendez-Jimenez admitted she had received all three bags with the intent of delivering them to Ramirez-Aguirre for unlawful exportation to Mexico.
Melendez-Jimenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Homeland Security Investigations and the Cameron County Sheriff’s Office. Assistant U.S. Attorneys Israel Cano III and David Coronado are prosecuting the case.
Amherst Woman Sentenced for Bank RobbreyRead 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 Sheila Cassata, 48, of Amherst, NY, who was convicted of bank robbery, was sentenced to 37 months in prison followed by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on December 26, 2013, co-defendant Michael Mitchell entered the First Niagara Bank on Lyell Avenue in Rochester, NY and passed the teller a demand note threatening the use of weapon. The bank teller froze, Mitchell left without money, and got into a car driven by Cassata who drove Mitchell from the area.
On December 27, 2013, Michael Mitchell entered the KeyBank on Amherst Street in Buffalo and passed the teller a demand note and once again threatened the use of weapon. Mitchell received some money, left the bank and again got into a car driven by Cassata.
Two more similar bank robberies occurred on January 3, 2014 at the M&T Bank on Grant Street in Buffalo and on January 9, 2014 at the First Niagara Bank on Abbott Road in Lackawanna, NY.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lackawanna Police Department, under the direction of Chief James Michel, and Rochester Police Department, under the direction of Chief Michael Ciminelli.
Alabama Resident and U.S. Postal Worker Indicted in Stolen Identity Tax Refund Fraud Scheme Claiming More than $1.5 Million in RefundsRead the Press Release
An Alabama resident and U.S. Postal Service (USPS) employee was arrested today after being indicted by a grand jury sitting in Montgomery, Alabama, on one count of conspiracy to defraud the United States, 14 counts of mail fraud, 14 counts of aggravated identity theft and 14 counts of embezzling mail, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to the allegations in the indictment, Elizabeth Grant of Seale, Alabama, was a USPS mail carrier. In 2013, Grant became involved in a stolen identity tax refund fraud conspiracy. Grant’s co-conspirators obtained stolen personal identification information from several sources, including from an Alabama state database, and then prepared and filed false federal income tax returns for tax year 2012. The co-conspirators directed the tax refund checks from the U.S. Treasury to be mailed to addresses located on Grant’s postal route. Grant would then be paid a fee to provide the checks to her co-conspirators. The conspirators allegedly filed more than 700 false returns that claimed more than $1.5 million in refunds.
If convicted, Grant faces a statutory maximum sentence of 10 years in prison for the conspiracy count, 20 years in prison for each count of mail fraud, five years in prison for each count of embezzling mail and a mandatory minimum sentence of two years in prison for aggravated identity theft. She also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation and the USPS Office of the Inspector General, who investigated the case, and Trial Attorneys Michael C. Boteler, Gregory Bailey and Robert J. Boudreau of the Tax Division and Assistant U. S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
18 Sentenced to Federal Prison for Roles in Austin-Based Drug Distribution OperationRead the Press Release
In Austin, 18 individuals have been sentenced over the past two days to federal prison terms for their roles in a cocaine and methamphetamine distribution operation announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
United States District Judge Sam Sparks sentenced:
Rene Perez, 35, of Austin, to 324 months imprisonment followed by five years of supervised release; Mario Gonzalez, 35, of Austin, to 235 months imprisonment followed by five years of supervised release; David Depaz, 22, of Austin, to 168 months imprisonment followed by five years of supervised release; Gerardo Diaz, 24, of Austin, to 57 months imprisonment followed by three years of supervised release; Ricardo Cruz, 27, of Pharr, TX, to 97 months imprisonment followed by five years of supervised release; Juan Gonzalez, 28, of Austin, to 120 months imprisonment followed by five years of supervised release; Joel Avilez-Jaimes, 39, of Austin, to 18 months imprisonment followed by five years of supervised release; Arthur Villalobos, 35, of Taylor, TX, to 70 months imprisonment followed by four years of supervised release; Alvaro Salinas, 46, of Austin, to 41 months imprisonment followed by four years of supervised release; Francisco Lopez, 38, of Austin, to 135 months imprisonment followed by five years of supervised release; Javier Tejeda, 25, of Austin, to 84 months imprisonment followed by five years of supervised release; Fernando Tejeda, 32, of Austin, to 135 months imprisonment followed by five years of supervised release; Efren Dias, 29, of Austin, to 262 months imprisonment followed by five years of supervised release; Jose Nieto-Figueroa, 24, of Pflugerville, TX, to 30 months imprisonment followed by five years of supervised release; Alejandro Rodriguez, 41, of Austin, to 51 months imprisonment followed by five years of supervised release; Timothy Cooper, 50, of Debray, FL, to 41 months imprisonment followed by four years of supervised release; Rogelio Villanueva, 35, of Austin, to 60 months imprisonment followed by five years of supervised release; and, James Yerkes, 47, of Austin, to 87 months imprisonment followed by five years of supervised release.
In addition, Judge Sparks sentenced a 19th defendant in this case, 32-year-old Veronica Deleon of Taylor, TX, to three years probation after she pleaded guilty to one count of misprision of felony.
Sentencing for a 20th defendant, 24-year-old Hector Mayorga of Austin, was reset to September 3, 2015.
All of the defendants, with the exception of Deleon, pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. According to court records, these defendants were involved in a conspiracy, led by Rene Perez, to distribute cocaine and methamphetamine throughout the Austin area and elsewhere in the United States. During this investigation, authorities seized approximately 28 kilograms of cocaine and 45 kilograms of methamphetamine, three firearms and close to $100,000 in U.S. Currency.
This case resulted from an investigation conducted by the Austin High Intensity Drug Trafficking Area (HIDTA) Task Force. The Austin HIDTA Task Force is made up of investigators from the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Travis County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office, Cedar Park Police Department and the Georgetown Police Department. Assistant United States Attorneys Dan Guess and Matt Harding prosecuted this case on behalf of the Government.
27 August 2015
Waterloo Man Convicted of Methamphetamine and Firearm ChargesRead the Press Release
A Waterloo man who conspired to distribute large quantities of methamphetamine and was a felon in possession of a firearm pled guilty yesterday in federal court in Cedar Rapids.
Derrick Plunkett, 37, from Waterloo, Iowa, was convicted of one count of conspiracy to distribute 500 grams or more of methamphetamine with a prior felony drug conviction and one count of possession of a firearm with three or more felony convictions for violent or serious drug crimes.
At the plea hearing, Plunkett admitted that he worked with others to distribute well more than 500 grams of methamphetamine in the Waterloo, Iowa, area between the spring of 2013 and May 2015. Plunkett admitted that on April 7, 2015, he was in possession of a Glock firearm and had previously been convicted of at least three felony offenses, specifically: Robbery-Second Degree and two separate cases of possession with intent to deliver methamphetamine.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Plunkett remains in custody of the United States Marshal pending sentencing. For the drug charge, Plunkett faces a mandatory minimum sentence of 20 years’ imprisonment and the following maximum penalties: (1) not more than life imprisonment without the possibility of parole; (2) a fine of not more than $20,000,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 10 years to life.
For the firearms charge, Plunkett faces a mandatory minimum sentence of 15 years’ imprisonment without the possibility of parole and the following maximum penalties: (1) not more than life imprisonment without the possibility of parole; (2) a fine of not more than $250,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of not more than 5 years.
The case was prosecuted by Assistant United States Attorneys Patrick J. Reinert and Lisa Williams, and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2035.
Follow us on Twitter @USAO_NDIA.
Vinalhaven Man Sentenced to One Year for Making Hoax Distress CallsRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Owen R. Adair, 23, of Vinalhaven, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to one year in prison, up to one year in community confinement and three years of supervised release for making false distress calls to the U.S. Coast Guard. Adair was also ordered to repay the Coast Guard $15,000 for the costs associated with the search that it conducted in response to the hoax calls. Adair pled guilty to the charge on April 15, 2015.
According to court records, on September 30, 2014, the defendant initiated a two-way radio call using a VHF radio with a radio operator at U.S. Coast Guard Sector Northern New England. In the initial radio transmission to the Coast Guard, the defendant stated: “Mayday, Mayday, Mayday.” In a lengthy conversation, the defendant then repeatedly told the Coast Guard operator that he urgently needed assistance because a crewman on his fishing vessel sustained a serious injury to his neck and was bleeding badly. The Coast Guard operator repeatedly attempted to determine the position from which the defendant was calling, but the defendant gave false location information. In fact, the defendant was not aboard a vessel, but was on Vinalhaven Island and was using a VHF radio in his truck. There was also no injured person needing assistance from the Coast Guard. The Coast Guard dispatched a search and rescue vessel from Rockland. After a seven-hour search, the Coast Guard suspended the search.
"What is important to understand about this hoax call is that lives were unnecessarily put at risk while a boat crew searched seven hours offshore for a situation that did not exist," said Rear Admiral Linda Fagan, commander, First U.S. Coast Guard District. "In addition to our Coast Guard responders, multiple agencies and individuals, including medical personnel, police dispatch, harbormasters, mariners, and the Maine Marine Patrol, devoted time and resources to this case and each made extensive preparations to assist with a case that was simply a hoax."
The case was investigated by the U.S. Coast Guard Investigative Service.
Union County Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Union County man was sentenced today in U.S. District Court to 25 years in federal prison for producing child pornography, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Chad Landon Blume, 34, of Waxhaw, N.C., was also ordered to serve a lifetime of supervised release and to register as a sex offender. The sentence was imposed by U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Union County Sheriff Eddie Cathey join Acting U.S. Attorney Rose in making today’s announcement.
According both to admissions made in connection with Blume’s guilty plea and to information introduced at sentencing, law enforcement recovered an SD Card that contained visual depictions of a minor engaging in sexually explicit conduct. Court records indicate that law enforcement determined the SD Card came from Blume’s cellular phone, which he had used to produce the child pornography on or about November 2012. During a subsequent search of Blume’s residence, agents seized Blume’s computer and other devices. A forensic analysis of those devices revealed that Blume had produced numerous sexually explicit pictures of a female minor under the age of 10. After Blume’s arrest, a second minor female came forward and disclosed that she had been molested by Blume. Blume pleaded guilty to one count of production of child pornography in December 2013.
Blume has been in federal custody since April 2013. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The FBI’s Crimes Against Children Squad investigated the case, assisted by the Union County Sheriff’s Office. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte handled the prosecution.
Two in Williamsport Indicted for Drug Trafficking and Firearms ViolationsRead the Press Release
WILLIAMSPORT. The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Williamsport men were indicted today by a federal grand jury for narcotics trafficking and possession of firearms in furtherance of their drug trade.
According to United States Attorney Peter Smith, the grand jury alleges that Anthony Gaskin, age 24, and Ibrahim Stevens, age 25, possessed crack cocaine and heroin in a Williamsport apartment. These narcotics were found in a 2014 surveillance and investigation of the apartment by Williamsport police that also uncovered 3 unlicensed handguns and equipment and materials to weigh and package the drugs.
Both Gaskin and Stevens face charges of Conspiracy to Distribute Controlled Substances, Possession with the Intent to Distribute Controlled Substances, Possession of a Firearm in Drug Trafficking and Possession of a Stolen Firearm. Gaskin also faces a count of Possession of a Firearm by a Felon.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives(ATF), the Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Geoffrey MacArthur.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of 4 years’ supervised release following imprisonment, and a $5 million dollar 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.
# # #
Trio charged for bank robberies in Parma and Parma HeightsRead the Press Release
A grand jury returned a three-count indictment related to three bank robberies in Parma and Parma Heights, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Russell C. Bowers, 29, of Lakewood, and Ashley Wentz, 23, of Parma, were each charged with three counts of bank robbery. Jason D. Spinelli, 40, of Cleveland, was charged with one count of bank robbery.
The indictment alleges that Bowers, Spinelli, and Wentz robbed the Citizens Bank, 5775 Chevy Road, in Parma, Ohio, a federally insured financial institution, on June 26, 2015.
The indictment further alleges that Bowers and Wentz robbed the Fifth Third Bank, 6809 West 130th Street, in Parma Heights, Ohio, a federally insured financial institution, on July 12, 2015; and the Citizens Bank, 6555 Pearl Road, in Parma Heights, Ohio, a federally insured financial institution, on July 17, 2015.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Federal Bureau of Investigation, Cleveland Division, and the Parma and Parma Heights Police Departments.
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.
Three Convicted Felons from Chicago Area Indicted on Federal Firearm OffensesRead the Press Release
CHICAGO — Three Chicago-area men with prior felony convictions have been indicted on federal gun charges for illegally possessing semiautomatic weapons.
THADDEUS JIMENEZ, 36, of Des Plaines, was arrested in Chicago last week while in possession of a loaded Kimber, Sapphire-model, .380-caliber semiautomatic pistol. He was charged with one count of being a felon-in-possession of a firearm, according to the indictment. Jimenez was previously convicted of a felony.
JOSE ROMAN, 22, of Chicago, was also arrested in Chicago last week while in possession of a firearm. The indictment charges Roman with being a felon-in-possession of a firearm for possessing a loaded Mossberg International, 715T-model, .22-caliber semiautomatic rifle. Roman was previously convicted of a felony.
The indictment against Jimenez and Roman was returned Wednesday afternoon in U.S. District Court in Chicago. Jimenez and Roman will be arraigned on a date to be set by the Court.
A third defendant, DANTRELL WILLIAMS, 19, was charged in a separate indictment with being a felon-in-possession of a firearm. Williams, of Chicago, was arrested while in possession of a loaded Romarm, GP WASR-series, semiautomatic rifle, according to the indictment, which was also returned Wednesday. He was previously convicted of a felony. Williams is currently scheduled to appear for a detention hearing on Friday at 11:00 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert.
The charge of being a felon-in-possession of a firearm carries a maximum sentence of ten years in federal prison and a $250,000 fine.
“The United States Attorney’s Office is committed to aggressively using federal gun laws to fight violent crime,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “We will prosecute violent offenders with vigor, using whatever federal tools are appropriate, as part of our ongoing partnership with the city and state to protect Chicago’s neighborhoods against violence.”
Mr. Fardon announced the indictments along with Jeffrey A. Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry F. McCarthy, Superintendent of the Chicago Police Department.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorneys Kathryn Malizia and Michelle Petersen.
Jimenez & Roman Indictment
Williams Indictment
Tennessee man charged with child sex exploitationRead the Press Release
A grand jury returned a four-count indictment charging David K. Turner, of Knoxville, Tennessee, with engaging in illicit sexual conduct with a minor, distributing a visual depiction of a minor engaged in sexually explicit conduct, coercion and enticement of a minor, and travel with intent to engage in illicit sexual conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Canton Resident Agency and the Massillon Police Department.
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.
Statement of U.S. Attorney Preet Bharara on April 21, 2015, Death of Samuel Harrell, an Inmate at Fishkill Correctional FacilityRead the Press Release
“My Office has been in communication with the office of Dutchess County District Attorney William Grady, and we will be coordinating and working with his office to investigate the April 21, 2015 death of Samuel Harrell, an inmate at Fishkill Correctional Facility.”
Southside York Gang Leader Enters Guilty Plea to Racketeering ConspiracyRead the Press Release
HARRISBURG - A leader of the “Southside Gang” located in York, Pa. pled guilty to racketeering and drug trafficking conspiracy today before U.S. Magistrate Judge Karoline Mehalchick in Scranton.
According to United States Attorney Peter Smith, James Abney, a/k/a “Doocs”, age 29, of York, pled guilty as the parties prepare for a jury trial scheduled for September 21, 2015.
On September 17, 2014, a federal indictment was brought by a grand jury in Harrisburg charging 21 one members of the Southside Gang with racketeering and drug trafficking conspiracy. In the indictment, the Southside Gang is identified as an alleged criminal enterprise whose purpose is to protect its territory and power through intimidation, violence and threats, generate profits primarily through open-air drug dealing within its territory and violent crime, defend and retaliate on behalf of gang members, and assist members through retaliation against witnesses and thwarting efforts of law enforcement.
According to the U.S. Attorney’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Essam E. Rabadi, the racketeering conspiracy indictment was the result of a two-year combined investigation by ATF, York City Police Department and the York County District Attorney’s Office with participation by the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Michael A. Consiglio, William Houser, Joseph Terz, and Daryl Bloom are prosecuting the case.
The names of those charged in the indictment are listed at the end of this release. They all were held in custody pending trial.
According to the indictment, all 21 men allegedly are or have been members or participants in the Southside Gang, which operated in the southern area of the City of York. The center of the alleged gang area is near Maple and Duke Streets in York, a location locally known as “the Jungle.”
The gang allegedly functions through an organized structure, including senior leaders, drug traffickers engaged in narcotics distribution; and “shooters,” who commit violent acts on behalf of the gang and to protect each other. Order is allegedly maintained through intimidation, threats, violence and, in some cases, murder.
The indictment alleges that defendant James Abney has been a principal leader and organizer, along with six other indicted individuals. The indictment also alleges that the Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang.
The indictment alleges criminal acts involving violence against a rival York gang, called “Parkway,” allegedly resulting in deaths of members of both gangs and innocent bystanders.
Southside Gang members allegedly distribute illegal drugs, mainly crack cocaine, as a major part of the criminal enterprise’s business and used and possessed firearms to protect the drugs.
Many Southside gang members have been investigated and prosecuted by York and York County law enforcement agencies for years as individual cases. The federal prosecution aims at dismantling the organization by exposing and attacking its ongoing structure and leadership. The federal investigations of gang violence and drugs in York are continuing in full cooperation with local police and the York County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty James Abney faces is 25 years 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.
Name and Street Name Age
Rolando Cruz, a/k/a “Mico” 29
Marc Hernandez, a/k/a “Marky D” 29
Douglas Kelly, a/k/a “Killer” 36
Roscoe Villega, a/k/a “P Shawn” 40
James Abney, a/k/a “Doocs” 28
Tyree Eatmon, a/k/a “Ree” 26
Jahkeem Abney, a/k/a “Foo” 24
Maurice Atkinson, a/k/a “Mo” 27
Anthony Sistrunk, a/k/a “Kanye” 26
Cordaress Rogers, a/k/a “Tank” 28
Eugene Rice, a/k/a “B Mor” 26
Angel Schueg, a/k/a “Pocko” 24
Marquis Williams, a/k/a “Quis” 26
Jalik Frederick, a/k/a “Murder Cat” 21
Brandon Orr, a/k/a “B Or” 22
Malik Sturdivant, a/k/a “Base” 22
Jabree Williams, a/k/a “Minute” 23
Ronald Payton, a/k/a “Ron Ron” 22
Jerrod Brown, a/k/a “Boogie” 25
Quintez Hall, a/k/a “Q” 21
Richard Nolden, a/k/a “Rich” 24
# # #
Seven convicted in Baltimore to West Virginia heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Seven individuals were convicted in federal court this week for their role in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants convicted this week participated in a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into West Virginia. The operation was disrupted in June 2015 by a 163-count federal indictment encompassing 41 defendants.
Bonnie Hanna, 34, of Martinsburg, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000.
James Ross, 32, of Martinsburg, pled guilty to one count of “Aiding and Abetting Attempted Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Harmony Hahn, 32, of Martinsburg, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin,” for which she faces up to 20 years in prison and a fine of up to $1,000,000. She also pled guilty to one count of “Aiding and Abetting Interstate Travel in aid of Racketeering,” for which she faces up to five years in prison and a fine of up to $250,000.
Javier Howard, 32, and Cassandra Riggs, 26, both of Martinsburg, each pled guilty to one count of “Use of a Telephone to Facilitate the Distribution of Heroin,” and one count of “Aiding and Abetting Interstate Travel in aid of Racketeering.” They each face up to four years in prison for the telephone charge and five years in prison for the racketeering charge. They each also face a fine of up to $250,000 on each count.
Jessica Kesecker, 33, of Berkeley Springs, West Virginia, and Teddy Edward Threadgill, 46, of Harpers Ferry, West Virginia each pled guilty to one count of “Interstate Travel in aid of Racketeering.” They each face up to five years in prison and fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Selim Zherka, Westchester Businessman, Pleads Guilty in White Plains Federal Court to Conspiring to Make False Statements to A Bank and to File Materially False Federal Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Westchester businessman SELIM ZHERKA pled guilty today to conspiring to make false statements to a bank in order to receive millions of dollars in loans and to file materially false tax returns with the IRS. As part of his plea agreement, ZHERKA agreed to forfeit $5.23 million. ZHERKA entered his guilty plea before U.S. District Judge Cathy Seibel.
U.S. Attorney Preet Bharara said: “With his guilty plea, Selim Zherka now has admitted to what we have been alleging all along, that he waged a years-long campaign of lies to a bank and the IRS to obtain millions of dollars in loans and fraudulently reduce his tax liabilities. In addition to admitting his guilt, Zherka has agreed to forfeit over $5 million in ill-gotten gains. I want to thank the FBI, IRS, and the TARP Special Inspector General for the excellent work in this investigation and prosecution.”
According to the Superseding Information filed today in White Plains federal court and other court documents filed in this case:
From December 2005 through the present, ZHERKA conspired with others to obtain $63.5 million in loans from Sovereign Bank (now Santander), for the purchase and/or refinancing of apartment house complexes in Tennessee by lying about the purchase price of the real estate he was acquiring and the amount of the down payment he was making toward the purchase in question.
Additionally, the Superseding Information to which ZHERKA pled guilty charges him with engaging in a five-year-long tax fraud scheme. The Information alleges that ZHERKA repeatedly submitted fraudulent tax returns to the IRS that overstated depreciation expenses and understated his capital gains for the real estate holding companies in which he was a partner and which, in turn, owned apartment house complexes, thereby reducing their tax liabilities.
Four other individuals have previously pled guilty in White Plains federal court to conspiring with ZHERKA to commit offenses related to the conduct to which ZHERKA pled guilty today, and are awaiting sentencing.
SELIM ZHERKA, 47, of Somers, New York, faces a maximum sentence of five years in prison, based on the conspiracy charge to which he pled guilty. ZHERKA is scheduled to be sentenced by U.S. District Judge Cathy Seibel on December 22, 2015, at 10:00 a.m. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
* * *
Mr. Bharara praised the outstanding efforts of the IRS, the FBI, and the Special Inspector General for the Troubled Asset Relief Program. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled out of the White Plains Division. Assistant United States Attorneys Elliott B. Jacobson and Perry A. Carbone and Special Assistant United States Attorney Andrew J. Kameros are in charge of the prosecution.
San Diego Tax Return Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
A San Diego tax return preparer was arrested today after being indicted by a federal grand jury sitting in the Southern District of California on 36 counts of aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
The indictment alleges that Marla Lynn Cunningham owned and operated Cunningham’s Tax Service, a tax preparation business located in El Cajon, California. According to the charges in the indictment, in 2010, 2011 and 2012, Cunningham prepared false individual income tax returns for others, which included false Schedules C that reported fictitious business losses and false Schedules A that reported inflated or fictitious itemized deductions, such as charitable contributions and medical, dental and unreimbursed employee expenses. Cunningham also attached forms claiming fictitious education credits that her clients were not entitled to receive.
If convicted, Cunningham faces a statutory maximum sentence of three years in prison and a fine of up to $250,000 for each count.
Acting Assistant Attorney General Ciraolo commended the special agents of the Internal Revenue Service–Criminal Investigation, who investigated the case, and Trial Attorneys Matthew R. Hoffman and Benjamin J. Weir of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of California for their substantial assistance.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Romanian National Pleads Guilty to Bank FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARINICA MIREL COTOI, age 37, of Romania, pled guilty today to one count of bank fraud related to the use of ATM “skimming” devices.
According to court documents, in January 2015, the U.S. Secret Service and the Louisiana Financial Crimes Task Force began investigating the unauthorized collection of debit card numbers through the installation of “skimming devices” on various ATM machines and the subsequent illegal use of fake debit cards. In March of this year, COTOI and another man rented a hotel room in Covington. Shortly thereafter, COTOI was captured on surveillance video using fake debit cards to withdraw funds from three local bank accounts. COTOI later admitted that he illegally entered the United States.
COTOI faces a sentence of up to 30 years in prison, up to $250,000 in fines, and up to three years of supervised release. COTOI also faces deportation consequences as a result of his conviction. U.S. District Judge Nannette Jolivette Brown set sentencing on December 3, 2015.
U.S. Attorney Polite praised the work of the U.S. Secret Service and the Louisiana Financial Crimes Task Force, with assistance from the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Edward J. Rivera and Carter Guice are in charge of the prosecution.
Rochester Man Charged with Bank RobberyRead 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 Jerry Little, 44, of Rochester, NY, was arrested and charged by criminal complaint with bank robbery. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the complaint, on August 15, 2015, the defendant entered First Niagara Bank branch located at 2255 Eastridge Road in Rochester. Little approached a bank teller, displayed a note which read “this is a robbery,” and told the teller to give him everything in the top drawer. The teller gave the defendant two envelopes with a specific amount of money in them. Little then fled the scene.
The defendant was apprehended on August 19, 2015 after a member of the community recognized Little from a photograph of the robbery suspect that was issue to the public.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and is being detained. Little is due back in court on October 15, 2015, at 9:00 a.m.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, the New York State Police, under the direction of Major Craig Hanesworth, the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Republic Man Pleads Guilty to Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Republic, Mo., man pleaded guilty in federal court today to producing child pornography.
Benjamin Michael Hopper, 23, of Republic, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a May 13, 2015, federal indictment.
By pleading guilty today, Hopper admitted that he used a minor, identified as “Jane Doe #1,” to produce child pornography between Jan. 21 and 25, 2015.
According to court documents, Hopper met the 14-year-old victim in an on-line chat room. She later snuck out of her home and was picked up by Hopper, who kept her at his home for several days, during which time he engaged in various sexual acts with the minor. These acts were recorded on Hopper’s iPad.
Under federal statutes, Hopper is subject to a mandatory minimum sentence of up to 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Republic, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pittsburgh Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
PITTSBURGH -A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of crack cocaine, United States Attorney David J. Hickton announced today.
Mark Spearman, 34, 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, Spearman was intercepted over the wire conspiring with others to possess with intent to distribute and distribute crack cocaine, which was shipped, in powder form, from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Jan. 6, 2016. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, 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 Spearman’s bond and conditions of release.
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 Streets 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 Bureau of Police conducted the investigation that led to the prosecution of Mark Spearman.
Philadelphia Man Charged with Possession of A Firearm by A Convicted FelonRead the Press Release
Dumar Combs, 24, of Philadelphia, Pennsylvania was charged today by indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of ten years imprisonment.
The case was investigated by the Philadelphia Police Department, and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian Man Charged with Leading Conspiracy to Defraud and Extort Spanish-Speaking Consumers through Call CentersRead the Press Release
A resident of Lima, Peru, was indicted by a Miami grand jury on fraud and attempted extortion charges for allegedly operating call centers that lied to and threatened Spanish-speaking victims in the United States, convincing them to pay fraudulent settlements.
Cesar Luis Kou Reyna, 40, was charged in a 33-count indictment with conspiracy, mail fraud, wire fraud and attempted extortion.
The announcement was made by Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Inspector in Charge Ronald J. Verrochio of the U.S. Postal Inspection Service (USPIS) Miami Division.
“The Department of Justice is committed to addressing the noted increase in fraud schemes targeting specific communities of U.S. residents,” said Principal Deputy Assistant Attorney General Mizer. “As this case and other recent examples show, we will track down those responsible for defrauding American consumers, no matter where the fraudster resides, what language the fraudster uses or which population he or she targets.”
“The U.S. Postal Inspection Service’s investigations have no borders when it comes to investigating crimes committed in the U.S. or on American victims,” said Inspector in Charge Verrochio. “Postal inspectors will track down criminals, anywhere in the world, and bring them to justice.”
According to allegations in the indictment, Kou Reyna owned and controlled a corporation, Fonomundo FC, which operated call centers in Peru and payment and fulfilment operations in Miami. Fonomundo FC and its affiliates in South America used Internet-based telephone calling services to place cold calls to Spanish-speaking residents in the United States. The callers falsely claimed to be attorneys and sometimes claimed to be government representatives. Callers claimed that victims had failed to pay for or receive a delivery of products, although the victims had not ordered these products.
According to the indictment, callers claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment or deportation. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these threats.
Kou Reyna was originally charged by criminal complaint and was arrested by USPIS on July 31 in Houston. He has remained incarcerated since his arrest.
Principal Deputy Assistant Attorney General Mizer commended USPIS for its investigative efforts and thanked the U.S. Attorney’s Office of the Southern District of Florida for its contributions to the case. The case is being prosecuted by Trial Attorneys Phil Toomajian and Stephen T. Descano of the Civil Division’s Consumer Protection Branch.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
Penn Hills Man Admits Dealing Cocaine and HeroinRead the Press Release
PITTSBURGH - A resident of Penn Hills, PA, pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine and 100 grams or more of heroin, United States Attorney David J. Hickton announced today.
Douglas Smith, Jr., 43, pleaded guilty to two counts 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, Douglas Smith, Jr. was intercepted over the wire conspiring with others 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, and heroin, which the conspirators obtained in Cleveland, Ohio, and transported to the Western District of Pennsylvania for further distribution.
Judge Hornak scheduled sentencing for Jan. 7, 2016. For each count, 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’s detention.
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 Streets 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 Bureau of Police conducted the investigation that led to the prosecution of Douglas Smith.
PSP Investigation Leads to Indictment of New Bedford Man on Child Pornography ChargesRead the Press Release
PITTSBURGH - A former resident of New Bedford, Pennsylvania, was indicted on August 25, 2015, by a federal grand jury in Pittsburgh on charges of distribution of material depicting the sexual exploitation of a minor and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The two-count indictment named Sean J. Barner, 37, as the sole defendant.
According to the indictment, on Jan. 25, 2015, Barner distributed visual depictions, namely videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct. The indictment further charges that Barner, on March 28, 2015, unlawfully possessed in computer graphics files, photographs and videos depicting minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owners and Nurses of Chicago Home-Healthcare Company Among Seven Indicted in Medicare Fraud and Kickback SchemeRead the Press Release
CHICAGO — The husband-and-wife owners of a Chicago home-healthcare business paid kickbacks to employees and marketers in exchange for referring elderly and disabled patients to the company for unnecessary or non-existent treatment that was funded by Medicare, according to a 23-count federal indictment unsealed today.
HCN Home Healthcare Inc., through its owners, ESTRELLITA DUQUILLA and MIGUEL DUQUILLA, paid kickbacks to employees and marketers to induce the referral of Medicare beneficiaries to HCN, according to the indictment. The indictment further contends that HCN employees altered nursing reports and patient files to falsely create the appearance that its patients qualified for in-home treatment. As a result of the kickback and fraudulent billing scheme, Medicare made overpayments to HCN in excess of $6 million, according to the indictment.
The Duquillas, of Des Plaines, were each charged with conspiracy to pay and receive healthcare kickbacks. Also charged in the conspiracy were four employees of HCN and an outside marketer who is married to an HCN nurse.
The indictment comes amid a lengthy federal investigation that included the execution of a search warrant at HCN’s office. The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Department of Justice and HHS to prevent fraud and to enforce anti-fraud laws around the country.
In addition to the kickback conspiracy charge, Estrellita Duquilla, 58, was charged with five counts of paying kickbacks to induce referrals of Medicare beneficiaries. Miguel Duquilla, 60, was charged with two counts of paying kickbacks to induce referrals of Medicare beneficiaries. The indictment also charges the Duqillas with one count of conspiracy to commit healthcare fraud, and ten counts of Medicare fraud. The Duquillas are the owners and operators of HCN, which is located at 6288 N. Cicero Ave. in Chicago. The indictment states that the fraud scheme spanned from 2008 to 2012.
According to the indictment, many of the beneficiaries were not qualified for home-health services, and in several instances never needed or received the care. In some cases, the employees and marketers paid cash to the patients in exchange for allowing the patients’ information to be used in paperwork submitted to Medicare, the indictment states.
One of HCN’s registered nurses, ZENAIDA DIMAILIG, 78, of Bensenville, solicited and received kickbacks from the Duquillas, in exchange for steering Medicare beneficiaries to HCN, according to the indictment. Dimailig is charged with one count of conspiracy to pay and receive healthcare kickbacks, and one count of conspiracy to commit Medicare fraud.
HCN’s Quality Assurance Nurse, GRACE MENDEZ, 59, of Des Plaines, put false information in patient files, such as the dates of non-existent nursing visits, knowing this information would be submitted to Medicare as a basis for seeking payments to HCN, according to the indictment. She is charged with one count of conspiracy to pay and receive healthcare kickbacks, two counts of knowingly and willfully soliciting and receiving a Medicare kickback, one count of conspiracy to commit healthcare fraud, and one count of Medicare fraud.
HCN’s Director of Nursing, DANIEL FAJARDO, 45, of Chicago, is charged with one count of conspiracy to pay and receive healthcare kickbacks, and one count of conspiracy to commit healthcare fraud. HCN’s nursing assistant, SHERROD HARRIS, 49, of Chicago, is charged with one count of conspiracy to pay and receive healthcare kickbacks, and two counts of knowingly and willfully soliciting and receiving a healthcare kickback.
In addition to the HCN employees, an outside marketer was also charged in the scheme. ROBERTO JONSON, 58, of Bensenville, was the owner of Berzen Home Care Services Inc., a now-defunct company that was based out of his home. The charges allege that Jonson, who is Dimailig’s husband, received payments from the Duquillas in exchange for referring non-homebound Medicare beneficiaries to HCN. Jonson is charged with one count of conspiracy to pay and receive healthcare kickbacks, and one count of conspiracy to commit healthcare fraud.
The indictment was returned last week and unsealed today in advance of the arraignments of Harris and Mendez, which were scheduled for 11:00 a.m. today before U.S. Magistrate Judge Michael T. Mason. The arraignments of the other defendants will be scheduled by the Court at a later date.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General.
The investigation is ongoing, the officials said.
The healthcare fraud conspiracy and the Medicare fraud counts carry a maximum penalty of ten years in prison and a $250,000 fine. The kickback and kickback conspiracy counts are punishable by up to five years in prison and a $250,000 fine. If convicted, restitution is mandatory and the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Renai S. Rodney and Justice Department Senior Trial Attorney Jon M. Juenger.
To report health care fraud or to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), logon to: StopMedicareFraud.gov.
Indictment
New York Man Convicted in Manhattan Federal Court for Attempting to Acquire Deadly Toxin, RicinRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHENG LE was found guilty of attempting to acquire ricin to use as a weapon, postal fraud, and identity theft. LE was convicted after a four-day jury trial before United States District Judge Alison J. Nathan.
U.S. Attorney Bharara said: “As a unanimous jury has found, Cheng Le attempted to acquire ricin, a potentially lethal toxin, through the Dark Web so that it could be used to kill without a trace. As Le himself put it, he was looking for ‘simple and easy death pills’ and ways to commit ‘100% risk-free’ murder. Thanks to the FBI, the NYPD, and the Postal Inspection Service, he was thwarted in his poisonous plot.”
According to the allegations contained in the Complaint and Indictment filed in federal court, and the evidence presented at trial:
Ricin is a highly potent and fatal toxin with no known antidote. The “Dark Web” is a colloquial name for a number of extensive, sophisticated, and widely used online criminal marketplaces, which allow participants to buy and sell illegal items, including ricin.
In early December 2014, LE contacted an FBI online covert employee (the “OCE”) on a particular Dark Web marketplace using an encrypted messaging service. The OCE had taken over the Dark Web identity from another individual who had a reputation for selling lethal poisons. After making contact with the OCE, LE inquired, “this might sound blunt but do you sell ricin?”
Following that initial contact, LE exchanged a series of messages with the OCE concerning his efforts to purchase ricin. During these messages, LE confirmed his understanding of the lethal nature of ricin, revealed his intent to resell the ricin to at least one secondary buyer, proposed that the OCE conceal the ricin in a single pill in an otherwise ordinary bottle of pills, and indicated a desire to obtain more ricin in the future. LE’s messages to the OCE included the following:
- “If [the ricin’s] good quality, I’ve already had buyers lining up.”
- “Does ricin have antidote? Last I check there isn’t one, isn’t it?”
- “Injection can be difficult to pull off. Ricin doesn’t work immediately. You wouldn’t expect the target to not fight back after being jabbed.”
- “The client would like to know . . . if it is wise to use ricin on someone who is hospitalized. . . . Injection will leave needle holes on the body which could be found in regular forensic examination. But hospitalized people already have needles in them so it wouldn’t be suspicious. Thing is, would ricin make the death look like someone succumbed to the injuries after an accident and didn’t make it through? In that case then, a little anethestical gas in the target’s car, get him drowsy when driving, get into an accident, and then kill him in the hospital bed.”
- “I probably told you this before, about mixing one and only one toxic pill into a bottle of normal pills. They all look identical. And as the target takes the medicine every day, sooner or later he’d ingest that poisonous pill and die. Even if there is a murder investigation, they won’t find any more toxin. 100% Risk Free.”
- “If you can make them into simple and easy death pills, they’d become bestsellers.”
- “I’ll be trying out new methods in the future. After all, it is death itself we’re selling here, and the more risk-free, the more efficient we can make it, the better.”
- “Also, besides that one bottle of pills with one poisonous pill in there, can you send some extra loose powder/liquid ricin? I’d like to test something.”
Moreover, during these exchanges, LE further revealed to the OCE that he had a specific victim in mind: “someone middle-aged. Weight around 200 lbs.”
On December 18, 2014, LE directed the OCE to send a quantity of ricin in the name of an individual whose stolen identity LE had assumed, and to a particular postal box in Manhattan (the “Postal Box”). On December 22, 2014, the FBI prepared a mock shipment of ricin (the “Sham Shipment”) that was consistent with LE’s request to the OCE. The Sham Shipment included both a fake “ricin” tablet concealed in a pill bottle (the “Pill Bottle”), and a quantity of loose fake “ricin” powder. The next day, the Sham Shipment was delivered to the Postal Box. LE, wearing latex gloves, retrieved the Sham Shipment, opened it, and took the contents to his apartment.
When FBI agents entered LE’s apartment to arrest LE and to search the apartment, pursuant to a search warrant, they saw the Pill Bottle open in his apartment. The agents additionally recovered from LE’s apartment an envelope containing castor seeds, which is the substance from which ricin is derived. The agents further observed that LE’s computer – which was protected with encryption software – was open to the online account that he had used to communicate with the OCE and to LE’s personal email account.
* * *
LE, 22, of New York, New York was convicted of one count of attempting to possess a biological toxin for use as a weapon, in violation of Title 18, United States Code, Section 175(a), which carries a maximum sentence of life in prison; one count of using a fictitious name in furtherance of unlawful business involving the mail, in violation of Title 18, United States, Section 1342, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft during and in relation to a terrorism offense, in violation of Title 18, United States Code, Section 1028A(a)(2), which carries an additional mandatory minimum sentence of five years in prison. This prosecution marked the first convictions after trial in this District for violations of Sections 175(a) and 1028A(a)(2).
The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing has not yet been scheduled.
Mr. Bharara praised the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department – and the United States Postal Inspection Service. He also thanked the National Security Division of the U.S. Department of Justice for its assistance.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty are in charge of the prosecution.
Navajo Man from Gamerco, N.M., Sentenced for Making a False Statement to FBIRead the Press Release
ALBUQUERQUE – This morning in federal court, Benson Pete, 75, an enrolled member of the Navajo Nation who resides in Gamerco, N.M., was sentenced to 33 months in federal prison followed by three years of supervised release for making a false statement to the FBI.
Pete was arrested on June 3, 2014, on an indictment charging him two counts of sexual abuse of a child under the age of 12. According to the indictment, the crimes were committed between Jan. 1, 2013 and March 31, 2013, within the Navajo Nation in McKinley County, N.M.
On March 30, 2015, Pete pled guilty to an information charging him with making a false statement to a law enforcement agency. In entering the guilty plea, Pete admitted that on July 30, 2013, he provided false information regarding the aggravated sexual abuse of a victim to the FBI. Pete also admitted that he withdrew any claims that he was coerced to make the false statements by an FBI agent, and acknowledged that he voluntarily made the false statements.
This case was investigated by the Gallup office of the FBI and was prosecuted by Assistant U.S. Attorneys Elaine Y. Ramirez and Raquel Ruiz-Velez.
Morgantown woman sentenced in multi-state heroin, oxycodone trafficking schemeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Loren Delaney, 24, of Morgantown, West Virginia, was sentenced today to 46 months in prison for her role in a multi-state heroin and oxycodone trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
Delaney was among 21 individuals charged in a 65-count federal indictment in November 2014. The indictment disrupted an extensive drug trafficking operation in which heroin and oxycodone were transported across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale throughout the region.
Delaney, also known as “Lo,” sold oxycodone in Monongalia County, West Virginia. She pled guilty in March 2015 to one count of “Aiding and Abetting Distribution of Oxycodone.”
The leader of the drug trafficking operation, Juwan Robert Woods, 32, of Philadelphia, Pennsylvania, pled guilty in April 2015 to a criminal Information charging him with one count of “Aiding and Abetting the Distribution of Oxycodone within 1000’ of Protected Location.” Specifically, Woods admitted that he distributed oxycodone near Wiles Hill playground in Monongalia County, West Virginia in May 2014. He is currently scheduled to be sentenced on August 28, 2015.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Valley Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Mexican Man Convicted of Using Fraudulent Identification Documents and Fictitious Social Security NumberRead the Press Release
A Mexican man who used fraudulent identification documents and a fictitious Social Security number to obtain employment in the United States was convicted by a jury on August 26, 2015, after a one-day trial in federal court in Cedar Rapids.
Jose Miguel Machorro-Xochicale, age 28, a Mexican living in Lime Springs, Iowa, was convicted of one count of unlawful use of identification documents and one count of misuse of a Social Security account number. The verdict was returned on August 26, 2015, following about four hours of jury deliberations.
The evidence at trial showed that Machorro-Xochicale, a Mexican citizen not lawfully admitted into the United States, used a fraudulent permanent resident card and a fraudulent Social Security card when applying to work in the United States on October 31, 2014. The fraudulent permanent resident card had Machorro-Xochicale’s picture with an identification number assigned to a female from Iran. Machorro-Xochicale represented that the Social Security number belonged to him but in fact it was an invalid number.
Sentencing before Senior United States Circuit Judge Michael J. Melloy will be set after a presentence report is prepared. Machorro-Xochicale remains in custody of the United States Marshal pending sentencing. He faces a possible maximum sentence of 15 years’ imprisonment, a $500,000 fine, $200 in special assessments, and three years of supervised release following any imprisonment.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-2020.
Follow us on Twitter @USAO_NDIA.
Member of Baltimore Cocaine Conspiracy Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Deshawn Steven Yarborough, age 29, of Baltimore, Maryland, today to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence 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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from December 2013 through April 2014, Yarborough was a member of a conspiracy to distribute cocaine, along with Tyrone Robert Bailey, Lamont George Thomas, and others. As part of the conspiracy, Yarborough obtained kilograms of cocaine from a New York supplier. Law enforcement intercepted drug related calls and text messages through court-ordered wiretaps on Yarborough’s phones.
For example on March 10, 2014, Yarborough was overheard talking to Bailey about Bailey’s plans to travel to New York that day with co-conspirator Lamont Thomas in order to obtain cocaine. Later that day, as Bailey returned from New York, Maryland State Police conducted a traffic stop of Bailey’s pick-up truck for speeding. Lamont Thomas was driving the vehicle and Bailey was the front seat passenger. After a K-9 alerted to the presence of narcotics, law enforcement located an electronically controlled false compartment in the seat back of the rear bench seat. The compartment contained approximately 4.2 kilograms of cocaine. Law enforcement recovered $1,600 in cash and multiple cell phones from Bailey. One of the cell phones was the phone Bailey used to talk to Yarborough.
On March 11, 2014, investigators intercepted communications between Yarborough and his Baltimore-based customers, which indicated that Yarborough was waiting to be resupplied with drugs. After Thomas and Bailey’s arrest by Maryland State Police, Yarborough attempted to contact Bailey on one of the telephones law enforcement had seized from Bailey at the time of his arrest.
Yarborough admitted that during his participation in the conspiracy he was responsible for the distribution of between five and 15 kilograms of cocaine
Tyrone Robert Bailey, age 28, and Lamont G. Thomas, age 34, both of Baltimore, pleaded guilty to their roles in the conspiracy and were each sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, Maryland State Police, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Marion Prison Inmate Sentenced to an Additional 2 Years for Possessing WeaponsRead the Press Release
Juan Luevanos-Montiel, 33, an inmate at the United States Penitentiary at Marion, Illinois, was sentenced on August 26, 2015, in United States District Court in Benton to a term of imprisonment of 24 months for possessing two weapons within that facility, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Luevanos-Montiel previously pled guilty to an indictment charging him with two counts of possessing a weapon. The offenses were committed at USP-Marion on September 11, 2014.
At the time he possessed the weapons, Luevanos-Montiel, who is an illegal alien from Mexico, was serving a 46 month sentence for reentering the United States after having been deported or removed. The 24 month sentence was imposed consecutively to that sentence.
In addition to the term of imprisonment, Luevanos-Montiel was ordered to pay the United States fines and special assessments totaling $300 and was placed on a three year term of supervised release to follow his incarceration.
Luevanos-Montiel was immediately returned to the custody of the Federal Bureau of Prisons to resume serving his sentences.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney James M. Cutchin.
Manhattan U.S. Attorney Announces Guilty Plea of Defendant Who Conspired to Import 100 Kilograms of North Korean Methamphetamine into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the guilty plea of SCOTT STAMMERS, a citizen of the United Kingdom, to conspiring to import 100 kilograms of North Korean-produced methamphetamine into the United States. STAMMERS was arrested in September 2013, along with co-defendants Philip Shackels, Ye Tiong Tan Lim, Kelly Allan Reyes Peralta, and Adrian Valkovic, following a long-term investigation by the Drug Enforcement Administration (“DEA”). STAMMERS pled guilty before Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “Scott Stammers conspired to import into the United States 100 kilograms of dangerously pure North Korean methamphetamine. Thanks to the work of the DEA and the cooperation of law enforcement partners around the world, including in Thailand, Liberia and Romania, Stammers’s scheme ended, not with the North Korean methamphetamine flooding American streets as he had intended, but rather with a guilty plea in a Manhattan federal court.”
According to the allegations contained in the Indictment, the plea agreement for STAMMERS, and statements made in court proceedings:
In 2012, Tan Lim and Peralta, members of a criminal organization operating in Hong Kong and the Philippines, sold more than 30 kilograms of methamphetamine that had been produced in North Korea. STAMMERS and Shackels were responsible for storing the methamphetamine after it had been sold by Tan Lim and Peralta. This North Korean methamphetamine was later seized by law enforcement agents in Thailand and in the Philippines and tested at more than 99% pure.
In 2013, Tan Lim and Peralta again agreed to provide North Korean methamphetamine, this time agreeing to supply 100 kilograms of the methamphetamine to confidential sources working at the direction of the DEA (the “CSes”) for importation to the United States. As Tan Lim explained, his criminal organization was the only one currently able to obtain methamphetamine from North Korea: “Because before, there were eight [other criminal organizations]. But now only us, we have the NK [i.e., North Korea] product. . . . [I]t’s only us who can get from NK.” Tan Lim further explained that, because of recent international tensions, the North Korean government had destroyed some methamphetamine labs, leaving behind only the labs of Tan Lim’s organization: “And all the, the NK government already burned all the labs. Only our labs are not closed. . . . To show Americans that they [the North Korean government] are not selling it any more, they burned it. Then they transfer to another base.” In anticipation of these geo-political complications, Tan Lim noted that his organization had stockpiled one ton of North Korean methamphetamine in the Philippines for storage.
As a prelude to the 100-kilogram methamphetamine deal, Tan Lim and Peralta arranged to have a sample of the drug delivered to Shackels, who sent that sample (along with a second sample from another supplier) to an address from which the methamphetamine samples would be sent to the United States. These two methamphetamine samples tested at more than 98% and 96% pure.
Tan Lim and Peralta agreed to deliver the 100 kilograms of North Korean methamphetamine in Thailand, from where they understood it would be shipped to the United States by boat. In preparation, Tan Lim and Peralta arranged for a “dry run,” sending a shipping container of tea leaves from the Philippines to Thailand in order to test delivery channels that would later be used for the shipment of methamphetamine.
STAMMERS, Valkovic, and Shackels agreed to provide security, transportation, and storage for the 100 kilograms of methamphetamine once it arrived in Thailand. Valkovic, the Sergeant-at-Arms of the Outlaw Motorcycle Club (“OMC”) in Thailand, was to be the “ground commander,” and would supervise an armed crew of OMC members that would provide security for the methamphetamine. STAMMERS and Shackels were to arrange for the 100 kilograms to be taken to a warehouse, counted, re-packaged, and delivered to a marina in Thailand, to be transferred to a boat that would deliver the methamphetamine to the United States.
In September 2013, Tan Lim and Peralta traveled to Thailand in order to receive payment for the 100 kilogram methamphetamine deal. STAMMERS, Tan Lim, Peralta, Valkovic, and Shackels were arrested by Thai law enforcement on September 25, 2013.
* * *
As a result of his guilty plea, STAMMERS, 46, faces a maximum possible term of life in prison and a mandatory term of 10 years in prison. The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge. A sentencing date for STAMMERS has not been scheduled.
Valkovic pled guilty on August 5, 2015, before Judge Carter to conspiring to import 100 kilograms of methamphetamine into the United States. Peralta pled guilty on August 18, 2015, and Tan Lim pled guilty on August 19, 2015, to the same charge before U.S. Magistrate Judge Debra Freeman.
The remaining defendant, Shackels, 32, is charged with conspiracy to import methamphetamine into the United States. His trial is scheduled to commence before Judge Carter on September 21, 2015.
The guilty plea was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; and DEA’s Bangkok, Manila, Ghana, Pretoria, Bucharest, Nassau, and Copenhagen Country Offices. Mr. Bharara also thanked the Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration; the Royal Thai Attorney General’s Office; the Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General’s Office; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs for their support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Anna Skotko, Michael D. Lockard, and Emil Bove are in charge of the prosecution.
The allegations against Shackels in the Indictment are merely accusations and that defendant is presumed innocent unless and until proven guilty.
Manatee County Man Indicted for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Ledale Johnson with three counts of credit card fraud, two counts of filing false tax returns, and three counts of aggravated identity theft. If convicted, he faces a maximum penalty of up to ten years in federal prison for each count of credit card fraud, up to five years for each of the false tax filing counts, and a consecutive two-year term for the aggravated identity theft counts. The indictment also notifies Johnson that the United States is seeking a money judgment of $48,416, the proceeds of the charged criminal conduct. Johnson had his initial appearance before U.S. Magistrate Judge Anthony Porcelli and was detained.
According to the indictment, on several occasions between October 2011 and March 2012, Johnson possessed and used unauthorized and counterfeit debit cards that had been loaded with fraudulently obtained tax refunds. Those refunds were the result of tax returns that had been filed using stolen identities. Johnson also filed a fraudulent tax return in his name and the name of another individual.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Manatee County Sheriff’s Office, the Bradenton Police Department, and the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Man Sentenced to 17.5 Years on Federal Heroin, Money Laundering, and Firearm ChargesRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Eric Shawn Bradley, a/k/a “E,” age 47, of Columbia, South Carolina and formerly of Brooklyn, New York, was sentenced to a total of 210 months (17.5 years) imprisonment today in federal court in Columbia, South Carolina, after earlier pleading guilty to the following charges: conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, money laundering conspiracy, and felon in possession of a firearm and ammunition, all in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B) and Title 18, United States Code, Sections 1956(h), 922(g)(1), and 924(a)(2). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia imposed the sentence, which will be followed by 8 years of supervised release.
Bradley was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that Bradley and others were involved in the 2011 and 2012 importation of heroin into the United States from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers have been charged by the Eastern District of New York for their role in the drug conspiracy. Bradley faced an enhanced sentence based upon his prior felony drug convictions. Bradley had prior state convictions for grand larceny, criminal possession of a weapon, possession of heroin, strong arm robbery, and possession of cocaine.
Five of Bradley’s co-defendants have plead guilty to their role in the drug conspiracy here in South Carolina and have been sentenced as follows: Kenneth Crawford, age 42, of Washington, D.C. and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release to follow; Charles Bradley, age 32, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 40, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; and Jessany Lyons, age 25, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Co-defendant Larry Bookman, age 52, of Columbia, has plead guilty and is currently awaiting sentencing. Four other co-defendants charged in the indictment remain fugitives.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, United States Secret Service, Federal Bureau of Investigation, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
#####
Maine Businessman Sentenced to Prison for Tax CrimesRead the Press Release
A Brunswick, Maine, businessman was sentenced to prison today for tax crimes in U.S. District Court for the District of Maine, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Delahanty II of the District of Maine.
F. William Messier, 71, and David E. Robinson, 78, both of Brunswick, were convicted on April 3 after a five-day jury trial of conspiracy to defraud the United States and corruptly endeavoring to impede the lawful administration of the Internal Revenue Code. U.S. District Judge D. Brock Hornby of the District of Maine sentenced Messier to serve one year and one day in prison and three years of supervised release. The court also ordered Messier to pay a $15,000 fine and file federal income tax returns dating back to 2005. Robinson’s sentencing has been scheduled for Oct. 5.
According to trial testimony, Messier, doing business as Oak Hill Communications, earned income generated on leases from telecommunication towers located on his Brunswick property. From 1999 through 2014, Messier engaged in conduct that was intended to impede and obstruct the enforcement of the Internal Revenue laws, including the provision of false tax documents to customers, obstruction of IRS collection activities and extensive use of cash. In 2012, the IRS assessed taxes and interest against Messier totaling $172,094 for tax years 2000 to 2004. Robinson claimed to be the “Interim Attorney General” of the “Maine Republic Free State” and advocated that people not pay federal and state taxes. According to witness testimony, after the IRS sent Notices of Levy to Messier’s customers to collect the taxes due and owing, Robinson and Messier presented the IRS with a fake money order for the amount due by Messier and other false documents. Messier and Robinson also urged customers not to honor the levies or to pay the IRS, directed customers to pay Messier in cash, and sent threatening and misleading correspondence to Oak Hill Communications customers urging them not to cooperate with the IRS. The defendants also filed civil lawsuits against some of Messier’s customers and employees of the IRS, which were dismissed in separate proceedings.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Delahanty commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney James W. Chapman Jr. of the District of Maine and Assistant Chief Karen E. Kelly of the Tax Division, who are prosecuting the case.
Lueders, Texas, Man Sentenced to 193 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
ABILENE, Texas —Rockey Koonce, 40, of Lueders, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 192 months in federal prison, following his guilty plea in April 2015 to one count of receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Following the sentencing, Judge Solis remanded Koonce, who had been on bond, into custody.
According to documents filed in the case, Koonce used a laptop computer at his residence, connected to the Internet, to search for images and videos depicting minors engaged in sexually explicit conduct. In May 2014, Koonce knowingly received a video file depicting a prepubescent female, under age 18, engaged in sexually explicit conduct. Koonce received the video through the use of peer-to-peer file sharing software.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, the Wichita Falls Police Department and the Stamford Police Department investigated. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
# # #
Lorain man indicted for possessing images of child sex abuseRead the Press Release
A grand jury returned a two-count indictment charging Robert B. Ray, 52, of Lorain, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct, and with possessing child pornography, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Field Office, Elyria Resident Agency.
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.
Logan man sentenced for being a convicted felon in possession of firearmsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Gary Brian Adams, 35, of Logan, West Virginia was sentenced today in federal court in Charleston to 37 months in federal prison for being a convicted felon in possession of three firearms. In May of 2013, officers with the West Virginia State Police and the Logan County Sheriff’s Department responded to a home near Chapmanville and recovered three firearms that Adams had stored in the home. Adams has two prior felony drug trafficking convictions from Logan County, so he is prohibited by federal law from possessing firearms.
This case was investigated by the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Logan County man sentenced to five years for mailing threatening lettersRead the Press Release
CHARLESTON, W.Va. –A Logan County man who wrote threatening letters while incarcerated was sentenced today to five years in federal prison, announced United States Attorney Booth Goodwin. Kelly Gerald Crosby, 32, previously pleaded guilty in federal court in Charleston to mailing threatening communications.
On September 8, 2014, Crosby was incarcerated at the Southwestern Regional Jail on state criminal charges relating to the use of minors in filming sexually explicit conduct. While incarcerated, Crosby mailed a letter addressed and delivered to the Logan County Courthouse, in which he made several threats to workers, public officials and others in the Logan County area. The threats included a list of people who he wanted to “kill, rape and make suffer.”
The investigation was conducted by the United States Postal Inspector’s Service, the United States Secret Service, the Logan County Sheriff’s Department, and the West Virginia State Police. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution.
Logan County man pleads guilty to drug distributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that William Leslie Toler, 29, of Logan, West Virginia entered a guilty plea to distribution of oxymorphone, commonly known as “Opana”. During his plea hearing, Toler admitted that on April 10, 2014, he sold a 40 mg Opana pill to a confidential informant working with law enforcement for $65.00. The drug sale took place at a residence new Chapmanville in Logan County, West Virginia.
Toler faces up to 20 years imprisonment when he is sentenced on January 6, 2016.
This case was invested by the US 119 Drug Task Force, Logan County Sheriff's Department, WVSP-BCI-Charleston, Chapmanville Police Department, DEA- Charleston Office, IRS Criminal Investigation- Charleston Office, and WVSP Logan Detachment.
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.
Local Man Charged in Federal Indictment Involving three Drug-Related HomicidesRead the Press Release
St. Louis, MO – ANTHONY JORDAN, St. Louis, Missouri, was charged with multiple drug and weapons charges which resulted in the deaths of three area people.
According to the indictment, on December 29, 2013, Jordan shot and killed Robert "Parker G" Parker and Clara Walker in furtherance of a drug trafficking crime. Ms. Walker was inadvertently struck by gunfire while she was inside her apartment at the time of the drug-related shooting. Additionally, the indictment alleges that on January 21, 2014, again in furtherance of drug a trafficking crime, Jordan shot and killed Michail “Yellow Mack” Gridiron.
The indictment was returned by a federal grand jury on August 26, but remained sealed until the arrest of Jordan earlier today.
If convicted, the charge of conspiracy to possess with the intent to distribute cocaine carries a maximum penalty of 20 years in prison and/or fines up to $250,000; possession and/or discharge of a firearm in furtherance of a drug trafficking crime resulting in death carries a range of punishment that includes life imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
United States Attorney Richard Callahan stated that this indictment is part of an on-going coordinated effort between his office, the St. Louis Circuit Attorney’s Office and the St. Louis Metropolitan Police Department, to address the rising homicide rate in the City of St. Louis.
This case was investigated by the St. Louis Metropolitan Police Department, Federal Bureau of Investigation, United States Drug Enforcement Administration and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Last Defendant in Federal, State, Local Joint Drug Organization Investigation Sentenced to 12 Years; U.S. Attorney Announces Sharing of Forfeited Drug Proceeds; Thanks Officials, Officers and Agencies for Their WorkRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania today announced the successful conclusion of the investigation and prosecution of a major Harrisburg-area drug trafficking organization and recognized the efforts of law enforcement agencies in the case.
United States Attorney Peter Smith particularly thanked Dauphin County District Attorney Ed Marsico and Harrisburg Police Chief Thomas Carter, for their key role as long-time partners in drug law enforcement in the Harrisburg area.
In 2011, the Drug Enforcement Administration and Internal Revenue Service Criminal Investigations in Harrisburg began investigating a large-scale drug trafficking organization whose members were bringing substantial quantities of cocaine hydrochloride into this area and distributing it to local drug dealers. Some of it was cooked into crack cocaine. Both the powder cocaine and crack cocaine were sold on the streets of Harrisburg.
The agents dubbed the investigation “Operation Ghost Hunter” because the main targets, including John Rawls and Antwaun Byrd, had eluded law enforcement for a long time. The investigation involved court-authorized wiretaps as well as federal funding. It resulted in the conviction of 22 drug dealers for drug offenses and money laundering. In addition, law enforcement officers seized cash drug proceeds, firearms, and luxury cars.
During the course of the investigation, agents learned that, generally, Harrisburg-area dealers, including Antwaun Byrd, sent couriers by Amtrak to the Atlanta, Georgia, area. The couriers carried cash which they turned over to Rawls who, in turn, provided them with large quantities of cocaine hydrochloride. The couriers traveled back to Harrisburg, usually by bus, and turned the drugs over to Byrd and other members of the organization. Drug proceeds were laundered, in part, through the purchase and sale of luxury automobiles.
The last of the defendants, and one of two defendants convicted at jury trials, was sentenced today by U.S. District Court Judge William Caldwell this morning. The Court sentenced Shaine L. Williams, age 44, of Harrisburg, to 144 months’ imprisonment. Previously, Judge Caldwell sentenced Adrian Totton, the other defendant who went to trial, to 240 months’ imprisonment. The prosecutor was Assistant U.S. Attorney Christy Fawcett, currently head of the Organized Crime Drug Enforcement Task Force in the U.S. Attorney’s Office.
Other defendants received substantial sentences as well (see the attached list). Nearly all these defendants were drug dealers or career criminals or both. The drug seizures included three kilos of cocaine hydrochloride seized from Rawls’ house in Atlanta, another three kilos seized from a courier at the Harrisburg bus station, and a half kilo of methamphetamine seized in Atlanta, as well as additional drugs.
Eight firearms, including a pistol-grip shotgun, were seized. One of the more unusual firearms that was seized was a handgun the drug dealers called “Pinky.”
Five luxury vehicles paid for with drug profits and used to transport drugs were confiscated. These included two BMWs, two Mercedes Benz, and a Cadillac Escalade.
Agents and officers seized almost $620,000 in cash, including $435,000 found at a safe in a house owned by Rawls in Atlanta.
The U.S. Attorney’s Office announced that $432,103 of that money was turned over to its partners in local law enforcement to fund their efforts in drug law enforcement, including $340,386.59 that went to the Dauphin County Drug Task Force.
This case, and other similar ongoing cooperative and joint efforts, demonstrate the remarkable and often unsung work of state and local law enforcement in the effort to combat criminal activities involving illegal drugs as part of their overall responsibility to protect the public.
Other law enforcement agencies and law enforcement personnel contributed significantly to this case. They include the DEA Atlanta Field Division Strike Force Group 1, IRS Criminal Investigations in Atlanta, the United States Marshals Service, Dauphin County Probation, Lebanon County Drug Task Force, the Pennsylvania Office of Attorney General’s Bureau of Narcotics Investigation, the Clayton County Georgia, Sheriff’s Office, The Columbia County, Pennsylvania Sheriff’s Office, and the North Carolina State Highway Patrol.
# # #
KC Business Owner Indicted for $125,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Kansas City, Mo., business has been indicted by a federal grand jury for a wire fraud scheme in which he stole more than $125,000 from a retiree who wished to assist the inner city community by renovating homes for those in need.
Gregory T. Evans, 59, of Kansas City, Mo., was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, Aug. 26, 2015. Evans was arrested today and has an initial court appearance this afternoon.
Evans is co-owner of Regal Homes, LLC. According to the indictment, Evans was introduced to the victim in 2012 and portrayed a desire to help her to assist impoverished neighborhoods. Evans suggested that she buy a house in the 4100 block of Chestnut in Kansas City, Mo., which Regal Homes would renovate so that it could be provided to a needy family.
The victim agreed to purchase the house and wired money to Regal Homes on two occasions. The first wire transfer, in the amount of $17,000 on Aug. 15, 2012, was for the purpose of buying the house. Evans allegedly bought the house for only $8,000 to $12,000. The second wire transfer, in the amount of $22,000 on Aug. 24, 2012, was for the purpose of renovating the house. Evans allegedly did not renovate the house as promised but instead used those funds for cash withdrawals and personal expenses, and transferred money to his personal bank account.
According to the indictment, Evans also offered the same victim a chance to invest in a securities deal with a bank in Thailand in 2012. Evans claimed that he had personally invested $500,000 with the company and was involved in the proposed securities deal. The victim investor authorized two $50,000 wire transfers to Regal Homes but she never received any money from the investment.
Analysis of the Regal Homes bank account, the indictment says, revealed that $90,000 of her total investment was transferred into Evans’ personal bank account. Analysis of Evans’ personal bank account, the indictment says, revealed that more than $57,000 was drawn out in cash via checks, withdrawals, and ATMs, and that an additional $13,000 was spent at retail stores, convenience stores, grocery stores, restaurants, hardware stores, health and beauty stores, and the like.
According to the indictment, Evans stole a total of $125,480 from his victim.
Evans is charged with three counts of wire fraud. The indictment also contains a forfeiture allegation, which would require Evans to forfeit any property derived from the proceeds of the alleged offense, including $125,480, representing the proceeds of the wire fraud scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
Hypothekarbank Lenzburg AG Reaches Resolution under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Hypothekarbank Lenzburg AG (HBL) has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
-
Make a complete disclosure of their cross-border activities;
-
Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
-
Cooperate in treaty requests for account information;
-
Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
-
Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
-
Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, HBL agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute the bank for tax-related criminal offenses.
HBL was founded in 1868 and is headquartered in Lenzburg, Switzerland. Its principal business, focused on the Canton of Aargau, Switzerland, is issuing mortgages on real property and lending to businesses.
HBL offered a variety of traditional Swiss banking services that it knew could assist, and that did assist, U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). For example, HBL, upon client request, did not send mail associated with some U.S.-related accounts to the United States. In addition, HBL offered numbered accounts to its clients, a service by which access to information about an account, including the identity of the accountholder, was limited to only certain employees of HBL. In a handful of instances, the accountholders of U.S.-related accounts who refused to provide a Form W-9 or who admitted that they were not tax compliant withdrew significant amounts of cash or physical assets when HBL forced these accounts to be closed.
In or about 2008, Swiss bank UBS AG publicly announced that it was the target of a criminal investigation by the IRS and the department, and that it would be exiting and no longer accepting certain U.S. clients. In a later deferred prosecution agreement, UBS admitted that its cross-border banking business used Swiss privacy law to aid and assist U.S. clients in opening accounts and maintaining undeclared assets and income from the IRS. HBL opened one account for a U.S. person who exited UBS. For another long-standing holder of a U.S.-related account, HBL received a transfer of funds from an account held at UBS into a pre-existing account at HBL.
Another accountholder who resided in the United States for many years had two accounts, one of which was a numbered account. In 2012, the accountholder’s relationship manager requested a Form W-9 for the numbered account and the accountholder refused to provide one. As a result, the relationship manager directed the accountholder to close the numbered account. Thereafter, the accountholder came to Lenzburg to close the numbered account. The accountholder withdrew 240,000 Swiss francs and 12,000 euros and purchased precious metals in the amount of 318,000 Swiss francs.
Since Aug. 1, 2008, HBL had 96 U.S.-related accounts with an aggregate value of $69.8 million. HBL’s average annual revenue attributable to U.S.-related accounts in the form of fees, commissions and earnings on client funds that were loaned out by HBL was $198,000, or a total of $1.2 million since Aug. 1, 2008. HBL will pay a penalty of $560,000.
In accordance with the terms of the Swiss Bank Program, HBL mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at HBL who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at HBL must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance. Ciraolo also thanked Brian D. Bailey, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
-
Husband and Wife Charged with Sex Trafficking of MinorRead the Press Release
Marcus Dewayne Thompson, 28, and his wife Robin Thompson, 24, from Park Hills, Missouri, were charged by a criminal complaint, unsealed on August 24, 2015, in federal court in East St. Louis, 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 today.
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 United States 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
A Criminal Complaint is merely a procedural method of bringing charges against a defendant. A defendant is presumed innocent of those charges unless proven guilty beyond a reasonable doubt.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAROL DAVID SOSA-PALMA, age 34, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, JAROL DAVID SOSA-PALMA reentered the United States after having been previously deported on June 21, 2013. If convicted, JARONL DAVID SOSA-PALMA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran Citizen Charged with Illegal ReentryRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Williamsport has indicted Alexander Cebilla-Amaya on charges of Illegal Reentry to the United States after a prior deportation.
According to United States Attorney Peter Smith, Cebilla-Amaya, age 38, of Honduras, was charged in an indictment alleging that he illegally re-entered the United States after having been previously deported in 2013. In April 2015, he was arrested in Towanda, Pennsylvania.
The case was investigated by the by the Allenwood Office of Immigration and Customs Enforcement. Prosecution is assigned to Assistant United States Attorney Geoffrey W. MacArthur.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is two years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Hartford Man Pleads Guilty to Crack Cocaine Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that COURTNEY BYRD, also known as “Buck,” 31, of Hartford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of distributing cocaine base (“crack cocaine”).
According to court documents and statements made in court, in February and March 2015, BYRD distributed approximately 98 grams of crack cocaine to an individual working with law enforcement.
On March 5, 2015, BYRD twice fled at a high rate of speed from law enforcement officers who were attempting to stop his vehicle, first in East Hartford and then in Hartford. During his second flight, BYRD hit a pedestrian in the area of Ann Uccello Street and Church Street in Hartford. The victim suffered a broken leg. A six-year-old child was in BYRD’s car at the time.
BYRD was arrested on March 19, 2015.
Judge Shea scheduled sentencing for November 23, 2015, at which time BYRD faces a maximum term of imprisonment of 20 years.
BYRD, whose criminal history includes multiple felony convictions, has been detained since his arrest.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. BYRD attended a call-in in August 2014.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, the U.S. Marshals Service and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.