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21 August 2015
Hernando County Woman Sentenced to More Than Five Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – Senior United States District Judge Richard A. Lazzara sentenced Bertha Hart today to five years and ten months in federal prison for theft of government property. She pleaded guilty on May 11, 2015.
According to court documents, Hart was arrested by deputies from the Hernando County Sheriff’s Office on November 1, 2012. Several prepaid debit cards, in other peoples’ names, containing fraudulent tax refunds were found in her possession. Hart later admitted to participating in a conspiracy involving federal tax returns and stolen identities. Hart allowed fraudulent tax filers to use her address to receive prepaid debit cards containing federal tax refunds. She also retrieved similar debit cards from other peoples’ mailboxes. Once these cards were in her possession, Hart delivered them to her co-conspirators, who removed most of the money from them. The co-conspirators later returned the cards to Hart with $1,000 to $2,000 remaining on them as her payment.
This case was investigated by the Hernando County Sheriff’s Office, the Internal Revenue Service – Criminal Investigation, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Fourteen Defendants Indicted in Cocaine ConspiracyRead the Press Release
ALEXANDRIA, Va. – Following a year-long investigation by a task force of federal and local law enforcement officers in four states and the District of Columbia, the United States has charged fourteen defendants in a federal indictment with conspiracy to distribute five kilograms or more of cocaine.
According to the indictment, which was issued yesterday, the defendants represent various components in a criminal enterprise responsible for importing bulk quantities of cocaine from Mexico into the United States and distributing it throughout the Washington, D.C. metropolitan area. The defendants include alleged street level dealers with ties to the transnational 18th Street gang. During the course of arrests in June 2015, agents recovered multiple firearms, distribution quantities of cocaine, and over $45,000 in U.S. currency.
The defendants charged in yesterday’s indictment include:
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Roberto Carlos Esparza Suarez, also known as “Soldier,” 26, of Dale City, Virginia
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Joaquin Santana Rivera Mejia, also known as “Chino,” 37
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Christopher Flores, also known as “Magic,” 36, of Gaithersburg, Maryland
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Juan Delao, also known as “Tony” and “Chiki,” 41, of Triangle, Virginia
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Josue Emmanuel Rivera Lemus, also known as “Chipi,” 32, of Riverdale, Maryland
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Fredy Armando Pereira, also known as “Shakira” and “Rat,” 36, of Adelphi, Maryland
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Lisette Natali Cordova, 24, of Dale City, Virginia
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Laura Shepherd, 38, of Berwyn Heights, Maryland
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Jose Komairo Hernandez Lopez, 34, of Woodbridge, Virginia
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Alexander Lorenzo, 33, of Hyattsville, Maryland
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Jeovany Francisco Andrade, 29, of Rockville, Maryland
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Marco Valdez Hernandez, 35, of Denver, Colorado
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Jorge Enrique Mendez Limon, 34, of Berwyn Heights, Maryland
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Luis Manuel Villa Castelan, 34, of the Bronx, NY
Almost all of the defendants face a minimum penalty of ten years and a maximum penalty of life in prison if convicted. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Furthermore, eight guilty pleas have been entered by co-conspirators in this case. Those include:
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Edgar Hernandez, also known as “Pelon,” 33, of Berwyn Heights, Maryland, who pleaded guilty on August 18, 2015 to charges of conspiracy to distribute five kilograms or more of cocaine and possession of a firearm used in furtherance of a drug trafficking crime.
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Jose Ulloa Sanchez, also known as “Alfredo Ulloa” and “Mexico,” 35, of Dumfries, Virginia, who pleaded guilty on August 18, 2015 to a charge of conspiracy to distribute five kilograms or more of cocaine.
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Jessica Hernandez, of Berwyn Heights, Maryland, who pleaded guilty on August 19, 2015 to a charge of conspiracy to distribute five kilograms or more of cocaine.
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Walter Blanco Lopez, 21, of Alexandria, Virginia, who pleaded guilty on August 19, 2015 to a charge of conspiracy to distribute cocaine.
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Guillermo Castellon, also known as “Memo,” 27, of Woodbridge, Virginia, pleaded guilty on August 13, 2015 to a charge of conspiracy to distribute 500 grams or more of cocaine.
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Rodrigo Torres, also known as “Jerry Reyes,” 29, of Riverdale, Maryland pleaded guilty August 11, 2015 to a charge of conspiracy to distribute five kilograms or more of cocaine.
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Oscar Marroquin, also known as “Joker,” 27, of Manassas, Virginia, pleaded guilty on August 13, 2015 to a charge of conspiracy to distribute 500 grams or more of cocaine.
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Sifredo Anthony Barrientos, also known as “Big Boy,” 24, of Manassas, Virginia, pleaded guilty on July 17, 2015 to a charge of conspiracy to distribute 500 grams or more of cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Stephan M. Hudson, Prince William County Chief of Police, made the announcement after the pleas were accepted by U.S. District Judges Gerald Bruce Lee, Claude M. Hilton, and James C. Cacheris.
This case was investigated by the FBI’s Washington Field Office, ICE-HSI Washington, and the Prince William County Police Department. Special Assistant U.S. Attorneys Jennifer A. Clarke and Andrea Duvall are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-183.
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Four Tampa Residents Plead Guilty in Conspiracy to Import XLR-11, a Synthetic Cannabinoid, a/k/a "Spice"Read the Press Release
Four Tampa residents plead guilty to their involvement in a conspiracy to import a synthetic cannabinoid, XLR-11, a/k/a “Spice,” and paraphernalia to the United States from China, before United States Chief Magistrate Judge Frank J. Lynch, Jr., in Ft. Pierce, Florida.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Saiful Hossain, 28, of Tampa, pleaded guilty to conspiracy to import a Schedule l controlled substance (XLR-11) and conspiracy to manufacture, possess with intent to manufacture and distribute a Schedule l controlled substance (XLR-11). Each offense carries a maximum penalty of 20 years in prison. Hossain also agreed to the forfeiture of assets totaling over $1.5 million and real property in St. Petersburg, Florida.
Last week, on Tuesday, August 11, 2015, Ahmed Yehia Khalifa, 28, and Ahmed Maher Elhelw, 25, both from Tampa, pleaded guilty to conspiracy to import a Schedule 1 controlled substance (XLR-11) and conspiracy to manufacture, possess with intent to manufacture and distribute a Schedule 1 controlled substance (XLR-11). Each offense carries a maximum penalty of 20 years in prison. The defendants also agreed to the forfeiture of assets totaling $472,780.00.
On Wednesday, August 12, 2015, Tanjina Islam Piya, 24, of Tampa, pleaded guilty to conspiracy to import drug paraphernalia. The offense carries a maximum penalty of 3 years in prison. The defendant also agreed to the forfeiture of assets totaling $157,158.80 and real property in St. Petersburg, Florida.
The sentencing for the four defendants has been set for October 22, 2015, before U.S. District Court Judge Donald M. Middlebrooks in West Palm Beach, Florida.
According to allegations contained in court records, U.S. Customs and Border Protection (CBP) Officers in New York identified, searched and detained twelve United States Postal Service (USPS) parcels, destined for Indian River and Palm Beach Counties, in the Southern District of Florida. Each of the parcels was shipped from China and allegedly contained three kilogram packages of a controlled substance, XLR-11 a chemical used in the manufacture of smokable synthetic cannabinoids (SSC). The parcels were mailed to separate private mailboxes, with defined street addresses, located at mailbox service centers in Indian River and Palm Beach Counties.
The court records further allege that SSC products, commonly known as “Spice,” are a mixture of an organic “carrier” medium, such as the herb-like substance damiana leaf and/or marshmallow leaf, which is then typically sprayed or mixed with a synthetic cannabinoid chemical compound which mimics the pharmacological effect of a Schedule I or II controlled substance. This organic “carrier” is then commonly sprayed with a tobacco flavoring such as strawberry, blueberry, or pineapple, in order to mask the harsh chemical taste upon ingestion. Currently, there are hundreds of synthetic cannabinoid compounds.
Mr. Ferrer commended the investigative efforts of HSI, DEA, USPIS, CBP, Hillsborough County Sheriff’s Office, Tampa Police Department, and the Indian River County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and Antonia Barnes.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Owner of Mastro Auctions Sentenced to 20 Months in Federal Prison in Shill-Bidding ScamRead the Press Release
CHICAGO — The former owner and CEO of a sports memorabilia auction house was sentenced Thursday to 20 months in federal prison for using phony bids to fraudulently inflate the price of his company’s listings at auction.
As the owner and chief executive officer of Mastro Auctions, WILLIAM MASTRO and several colleagues placed fake bids to drive up the prices of various listings, a process known as “shill bidding.” Mastro also sold phony and altered memorabilia, including a Honus Wagner baseball card whose sides Mastro had cut with a paper-slicing machine, and a purported 1869 Cincinnati Red Stockings trophy ball that Mastro knew contained paint manufactured after World War II.
Mastro, 62, of Palos Park, pleaded guilty in 2013 to one count of mail fraud. In addition to the 20-month prison term, U.S. District Judge Ronald A. Guzman noted that Mastro had already satisfied the court-imposed fine of $250,000. Judge Guzman ordered Mastro to begin serving his sentence no later than Nov. 30, 2015.
“The long-running and systematic nature of the scheme undermines confidence in the auction house and sports-memorabilia industries, and calls into question the true value of merchandise,” said Assistant U.S. Attorney Steven J. Dollear. “The defendant’s ultimate goal was to beat the competition and garner more business for his auction house, and, in the end, more money for himself.”
Mastro is one of four former Mastro Auctions employees, including three executives, who have pleaded guilty in connection with the fraud scheme. Prior to closing in 2009 amidst the federal investigation, Mastro Auctions had maintained offices at different times in Oak Brook, Willowbrook and Burr Ridge.
The T206-series Wagner card is considered one of the world’s most expensive trading cards. Mastro admitted in the plea agreement that he cut the card’s side borders, and then concealed this information when he sold the card in 1987. Mastro again failed to disclose his alteration even after participating in subsequent auctions of the card in 1991 and 2000. The sale in 2000 produced a purchase price of more than $1 million, according to the plea agreement. Mastro also failed to disclose that he cut the Wagner card again in 1992, even though he was aware that the card had been submitted to become the first baseball card assigned a grade based on the condition of the card.
Mastro sold the alleged 1869 Cincinnati Red Stockings trophy ball to a collector in 2006 for $62,000, even though Mastro was aware that the trophy ball had previously been returned to the auction house by a prior buyer who had conducted laboratory testing on it. The testing had shown that the trophy ball contained paint that was manufactured after World War II, casting doubt on the ball’s authenticity. Mastro did not inform the 2006 collector of the laboratory testing.
Mastro Auctions, which also operated under the names Mastro Fine Sports and Mastro Net, specialized in sports memorabilia but also featured coins, art, and Americana collectibles. Most items were consigned to Mastro Auctions by their owners, but the house also owned some of the items it sold. Mastro had sold the company in 2004 but stayed on as its chairman and chief executive officer until its closure.
Mastro admitted in a plea agreement that the shill-bidding scheme spanned from 2002 to 2009. The scam involved submitting phony bids to artificially drive up the price of online and live auctions. Mastro admitted that he or one of several colleagues would place the shill bids as needed to inflate the price and to protect the interests of consignors and sellers – at the expense of unwitting bidders. If the shill bids ever won the item being auctioned, Mastro or his colleagues would cancel the sale.
Three other former employees of Mastro Auctions have admitted their roles in the scheme. Doug Allen, 52, of Crete, served as president and chief operating officer from 2001 to 2009. He pleaded guilty to one count of wire fraud. Mark Theotikos, 54, of Addison, worked for Mastro Auctions from 1996 to 2009 as vice president of auction operations and acquisitions. He pleaded guilty to one count of mail fraud. Allen and Theotikos are scheduled to be sentenced by Judge Guzman on Oct. 14, 2015. William Boehm, 66, of Ballwin, Missouri, worked for Mastro Auctions in information technology. He pleaded guilty to one count of making false statements to agents of the Federal Bureau of Investigation who were probing the company’s practices. Boehm was given two years of probation.
The sentence 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 António Gomez, Inspector in Charge of the U.S. Postal Inspection Service in Chicago.
The government is being represented by Mr. Dollear and Assistant U.S. Attorney Derek R. Owens.
Former NIST Police Officer Admits That He Attempted to Manufacture Methamphetamine, Causing an ExplosionRead the Press Release
Greenbelt, Maryland – Former National Institute of Standards and Technology (NIST) police officer Christopher Bartley, age 41, of Gaithersburg, Maryland, pleaded guilty today to attempting to manufacture methamphetamine in a laboratory room on the NIST campus on Saturday, July 18, 2015, which resulted in an explosion.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Scott Hinckley of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
"Methamphetamine is unsafe to produce and unsafe to use," said U.S. Attorney Rod J. Rosenstein. "Mr. Bartley damaged government property and jeopardized the health and safety of NIST employees by mixing dangerous chemicals."
According to his plea agreement, on July 18, 2015, Bartley reported to work at NIST where he worked as a lieutenant with the NIST police force. In the evening, Bartley entered a room inside a NIST building in order to use equipment to manufacture methamphetamine under a chemical fume hood. While attempting to manufacture methamphetamine, Bartley caused an explosion that blew four of the room’s windows out of their frames. The shatterproof windows were found at distances ranging from 22 to 33 feet from the building. Bartley suffered burns on his head and arm.
The explosion caused the temperature in the room to rise to 180 degrees, activating a silent heat alarm. When firefighters entered the building shortly thereafter, they saw Bartley leaving the room with burns on his arm, as well as singed eyebrows and hair. Before leaving the building, Bartley collected remnants of items from the scene of the explosion and later threw the items in a dumpster near the building. He then drove to another NIST building where he discarded additional items in the trash related to his attempt to manufacture methamphetamine.
Law enforcement later searched the trash near those two buildings and seized a coffee grinder with white powder residue, rubber gloves, a funnel, a soda bottle containing white powder with a rubber tube coming out the top, coffee filters, burnt and melted plastic, a bottle of Drano crystals, a gas mask and protective safety glasses.
Law enforcement agents searched Bartley’s vehicle and recovered a book that contained Bartley’s handwritten notes of ingredients and equipment needed to manufacture methamphetamine, including tubing, a funnel, coffee filters, Coleman camp fuel and lye.
At 1:27 a.m. on July 19, 2015, Bartley sent an email to his supervisor titled “tonight’s explosion” in which he admitted he had attempted to manufacture methamphetamine. A few hours later, Bartley also admitted to a law enforcement agent that he had been trying to manufacture methamphetamine at the time the explosion occurred.
The total amount of methamphetamine involved in the offense was less than five grams.
Bartley faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for November 19, 2015 at 9:30 a.m. Bartley is not in custody.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Montgomery County Police Department for their work in the investigation, and praised NIST for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah Jo Bressack and Mara Zusman Greenberg, who are prosecuting the case.
Former Belgrade State Bank Branch Manager Sentenced for Purposefully Evading Reporting RequirementsRead the Press Release
St. Louis, MO – SHEILA AUBUCHON was sentenced today to twelve months and one day in prison on charges relating to her willful failure to file reports of more than $100,000 in cash transactions during her employment with Belgrade State Bank and her theft of funds from that same bank.
Aubuchon, Potosi, Missouri, pled guilty in March to two felony counts of purposefully causing Belgrade Bank to fail to file currency transaction reports, or CTRs, with the Internal Revenue Service, as required by federal law. Aubuchon appeared today in St. Louis for sentencing before United States District Judge Rodney W. Sippel.
The court found that Aubuchon had failed to report, as required by federal law, more than $100,000 in cash transactions between 2009 and 2010, and more than $76,000 of the funds she failed to report were funds she had stolen from Belgrade State Bank. Aubuchon admitted that she failed to report these transactions for the purpose of evading federal laws and regulations. According to court records, Aubuchon’s fraudulent conduct included 67 different transactions at Belgrade State Bank over the course of more than three years and affected more than 20 bank customers. Belgrade State Bank has fully compensated all identified victims for their losses.
The case was investigated by the United States Secret Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Richard E. Finneran and Colleen C. Lang handled the case for the U.S. Attorney’s Office.
Florida Man Charged with Obstructing A Federal Officer or Employee in the Course of Their Duties and with Entering an Airport Area in Violation of Security RequirementsRead the Press Release
Incident Occurred At Louisville International Airport
LOUISVILLE, KY. – An Orange Park, Florida man residing in Louisville, was arrested yesterday at Louisville International Airport and charged by criminal complaint with Resisting, Opposing, Impeding, and Obstructing a Federal Officer or Employee in the course of their duties, and one count of Entering Airport Area in Violation of Security Requirements announced U.S. Attorney John E. Kuhn, Jr.
According to the complaint, at approximately 2:20 p.m. yesterday, David Harold Patton, age 36, allegedly fled from a checkpoint screening area and into a sterile area (the terminals) causing a security breach. He was immediately apprehended and arrested by Louisville Regional Airport Authority Public Safety Officers (LRAAPSO).
Specifically, Patton was issued a gate pass in order to escort his grandmother to her flight gate. During the screening process by Transportation Safety Administration (TSA) security personnel, Patton was asked to remove items from his pocket. At this point, TSA security personnel report that Patton ran from the screening area. He was stopped by the LRAAPSO and escorted out of the gate area.
Further, at the checkpoint, a TSA security screener allegedly witnessed Patton consume an item and discard another before fleeing. LRAAPSO immediately obtained the discarded item and discovered a small package of what was later identified as heroin. During a subsequent FBI interview, Patton allegedly admitted that he attempted to leave the check point before passing through the scanner because he knew he had drugs in his pocket. Patton has been charged in state court with Possession of Heroin along with other related charges, and is being held in custody at the Louisville Metropolitan Corrections facilities.
A federal arrest warrant has been issued for Patton and he will appear before a United States Magistrate Judge once his state court charges have been resolved.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigated by the FBI and TSA.
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The charge of a person by criminal complaint is an accusation only and that person is presumed innocent until and unless proven guilty.
Final Defendant Sentenced in Three-Year Drug ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – The last man involved in a massive marijuana distribution organization has been sentenced to federal prison, announced U.S. Attorney Kenneth Magidson. Ricardo Jason Villeza, 41, is the last of eight defendants sentenced for their respective roles in the conspiracy. All men had previously entered guilty pleas in the case.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Villeza, of Encino, California, to serve 28 months in federal prison to be immediately followed by a three-year-term of supervised release. The leader of the conspiracy, Arnulfo Molina Jr., 41, of Carrollton, was sentenced last month to 108 months in federal prison and five years of supervised release. At that hearing, the court found Molina responsible for nearly 1,000 kilograms of marijuana.
Testimony at the various sentencing hearings revealed the extent of the smuggling conspiracy, which was in existence from 2009-2012. Authorities began to dismantle the organization after a after a lone driver, Neal Douglas Head, 25, of Fort Worth, came into the Falfurrias Border Patrol checkpoint with 70 pounds of marihuana hidden in his truck’s gas tank. After his arrest, agents discovered numerous marijuana seizures at the Falfurrias and Sarita checkpoints in which the drugs were hidden in a similar manner. Head received a sentence of 21 months in federal prison.
Eventually, five more drivers were charged and convicted, including Villeza. Steven Alan Thomas, 56, of Garland, received a 60-month sentence, while William Edward Brooks, 58, of Midlothian, Terry Lynn Riley, 58, of Granbury, and Stephen Kaluzny, 51, of Carrollton, received respective sentences of 62, 12, and 20 months.
Travis Cory Davis, 31, of Granbury, recruited many of the drivers and distributed the marijuana along with Molina. He was sentenced in 2013 to a total of 108 months in prison followed by a five-year term of supervised release.
All defendants have been and will remain in custody pending transfer to U.S. Bureau of Prisons facilities to be determined in the near future.
This charges were the result of a joint investigation by the Drug Enforcement Administration and the Kleberg County Sheriff’s Office. Assistant U.S. Attorney Michael Hess prosecuted the case.
Federal Jury Convicts Dallas Man on Conspiracy and Kidnapping ChargesRead the Press Release
DALLAS — Following a nearly two-week trial, a federal jury has convicted a Dallas man on felony offenses stemming from the May 2012 kidnapping of a female victim whom he planned to sell into sex slavery, announced John Parker, U.S. Attorney for the Northern District of Texas.
Steric Paul Mitchell, 45, was convicted on one count of conspiracy to commit kidnapping and one count of kidnapping. Mitchell’s coconspirator in the case, Gregory Steven Hunt, aka “K.C.,” 43, pleaded guilty in April 2015 to one count of kidnapping. The conspiracy count and the kidnapping count each carry a maximum statutory penalty of life in federal prison and a $250,000 fine. Mitchell is scheduled to be sentenced by U.S. District Judge Sam A. Lindsay on December 14, 2015; Hunt is scheduled to be sentenced on October 5, 2015.
According to evidence presented at Mitchell’s trial and documents filed in the case, Mitchell and Hunt knew each other from the neighborhood, and in early May 2012, Mitchell hired Hunt to pick up the victim at a hotel and transport her to another location under the ruse that Hunt was taking her to a private party. In fact, Hunt and Mitchell planned to kidnap and sexually assault her. Hunt was also supposed to pay another woman, R.E., $100 when he picked up the victim from the motel, and Hunt understood he would get to have sex with the victim as part of the agreement.
R.E. told the victim that she had a “good friend” who wanted to hire a private dancer for a party and that the men were “safe.” At a Dallas hotel, R.E. introduces the victim to Hunt, who pays R.E. the $100 and then drives the victim to an abandoned house in Dallas where Mitchell was waiting.
At the abandoned house, Mitchell threatened the victim with a firearm and shocked her with a Taser to frighten and restrain her. Hunt then raped her while Mitchell stood guard with a firearm. Mitchell then shocked her again with a Taser, bound her ankles and wrists, wrapped her in a bed sheet, carried her to another motor vehicle, and put her in the backseat. He then drove the victim to a second location, tied her to a chair, raped her, and told her he planned to sell her into sexual slavery. He held her overnight at that location. Later, he wrapped her in a bed sheet again, put her in the backseat of a vehicle, and drove her to a house in Duncanville, Texas, where he sexually assaulted her. At this third location, the victim was able to locate a cell phone and place four 911 calls; officers with the Duncanville Police Department found and rescued her.
The FBI and the Duncanville Police Department investigated. Assistant U.S. Attorneys Cara Pierce, Taly Haffar and Andrew Wirmani prosecuted.
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Federal Correctional Officer Pleads Guilty to Bribery ChargeRead the Press Release
RICHMOND, Va. – A federal prison guard in Petersburg, Virginia pleaded guilty yesterday to accepting bribes in exchange for smuggling cigarettes to inmates.
Jermaine Brown, 37, of Chesterfield, Virginia, pleaded guilty to one count of bribery of a public official. In a statement of facts filed with the plea agreement, Brown admitted that he accepted bribes in exchange for providing contraband cigarettes to inmates while he was employed as a correctional officer at Federal Correctional Institute–Petersburg. After providing the contraband cigarettes, Brown instructed the inmates to have their friends or family members wire transfer money to a known associate of Brown.
On or about February 10, 2011, Brown’s associate picked up two Western Union wire transfers totaling $1,450 sent by or on behalf of the inmates, and the associate delivered the money to Brown as a bribe for providing contraband cigarettes to inmates at FCI Petersburg. As part of his plea, Brown agreed that he received and accepted a total of $3,050 in bribes from federal inmates.
As a result of his conduct, Brown will be terminated from his employment as a federal correctional officer. Brown faces a maximum penalty of 15 years in prison when he is sentenced on November 19, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Michael Tompkins, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck.
This case was investigated by the Department of Justice Office of Inspector General and the FBI’s Richmond Field Office. Assistant U.S. Attorneys Erik S. Siebert and Michael C. Moore are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-93.
Ex-Marine Convicted in Sexual Assault of Another Marine on Camp PendletonRead the Press Release
For Further Information, Contact: Assistant U.S. Attorneys Kathleen J. O’Hara (619) 546-7945 or
Michelle M. Pettit (619) 546-7972
SAN DIEGO – A former Marine was convicted by a federal jury yesterday of sneaking into the Camp Pendleton apartment of a female Marine he did not know and sexually assaulting her as she slept.
Pedro Javier Orellana, 24, was convicted of one count of sexual abuse of an incapacitated victim following a three-day trial. The jury deliberate for one day. The defendant, who had been released on bond with GPS monitoring since his arrest in March, 2015, was immediately taken into custody upon conviction. U.S. District Judge Larry Alan Burns scheduled sentencing for November 30, 2015.
According to evidence presented at trial, after the sexual assault, Orellana went to a neighbor’s house where he hid and the victim reported it to her friends. The Naval Criminal Investigative Service tracked Orellana down approximately five days later in Vista, California. He admitted to NCIS and to the jury at trial that he had only seen the victim in passing twice, that he did not know her name, and that he had never had a conversation with her.
Despite that fact, he walked into the apartment without knocking, looked for her on the couch, and then walked into a dark bedroom, where she lay asleep on top of the bed. When he spoke to NCIS, Defendant used the words “deep sleep,” “unconscious,” and “too drunk to know what was going on” to describe the victim’s state. Orellana also stated that he had received training as a former Marine regarding sexual assault prevention, and he knew that alcohol impaired a person’s ability to consent to sex.
“It is important for the security of our community and our military installations to pursue justice for sexual assault victims,” said U.S. Attorney Laura Duffy. “We will continue to support our NCIS partners to aggressively investigate and prosecute crimes on federal property, particularly when service members are victimized.”
DEFENDANT
Pedro Javier Orellana Age: 24 Laurel, MD
SUMMARY OF CHARGES
18 U.S.C. § 2242(2) – Sexual Abuse- Incapacitated Victim (Maximum Life Sentence)
AGENCY
Naval Criminal Investigative Service
Ex-Employee of SIUE Sentenced for Lying to Federal AgentsRead the Press Release
Kwa Mister, 38, from Fairview Heights, Illinois, received a sentence of three years of probation, a fine of $2,500, and a $200 special assessment as a result of his conviction of two counts of Making A False Statement to the United States Department of Transportation, Office of Inspector General and the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. "Simply put," United States Attorney Wigginton noted, "there is no right to lie to federal agents conducting an investigation."
The Illinois Department of Transportation entered into an intergovernmental agreement with Southern Illinois University at Edwardsville (SIU-E) to be the fiscal agent for the Highway Construction Preparatory Training Program. Kwa Mister was the Director/Project Manager at the Small Business Development Center at SIU-E and served as the project manager for the Highway Construction Preparatory Training Program. Other facts revealed in Court showed that an investigation and an audit revealed that Kwa Mister obtained five contracts between SIU-E and Phoenix Support Services for Phoenix Support Services to purportedly serve as an independent consultant to assist with the training program, but that from March 2010 through January 2011, an audit discovered five Purchase Orders, five Contracts, and at least four Justification for Sole Source Purchase or Contract forms concerning the procurement of services from "L. A. S" [name removed]., Director, d/b/a Phoenix Support Services. The procurement of these contracts with Phoenix Support Services was initiated by the Program Manager for the Highway Construction Preparatory Training Program, Kwa Mister. Kwa Mister procured the services of his mother, L. A. S., for sole source contracts and concealed the family relationship and the potential conflict of interest from SIU-E. When the propriety of the contracts with Phoenix Support Services was under investigation by SIU-E, Kwa Mister lied to SIU-E as to whether the owner of Phoenix Support Services was his mother. Kwa Mister was charged with lying to federal agents concerning whether he provided false information to SIU-E.
The successful prosecution is the result of an investigation conducted by the United States Department of Transportation, Office of Inspector General, the U. S. Department of Labor, Office of Labor Racketeering and Fraud Investigations and the Federal Bureau of Investigation with the assistance of Southern Illinois University and the Office of Executive Inspector General for the Agencies of the Illinois Governor. The prosecution of the case was handled by Assistant U.S. Attorney Norman R. Smith.
Ex-Employee of Postal Service Indicted for FraudRead the Press Release
Ashton Luck, 29, of South Roxana, Illinois, was indicted for one count of workers compensation fraud and five additional counts of making false statements, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. If convicted, Luck faces up to thirty years in prison, a $250,000 fine, up to three years supervised, plus mandatory restitution. The indictment alleges that Luck worked for the U.S. Postal service as a mail carrier for the East Alton Post Office and while in her position she submitted a fraudulent workers compensation claim for a purported on-the-job injury. The indictment also alleges that she submitted a number of false leave slips, fabricated a doctor's note and falsified hospital records in support of claimed emergency and sick leave.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The indictment is the result of an investigation conducted by the United States Postal Inspection Service, Office of Inspector General. The prosecution of the case is being handled by Assistant U.S. Attorney Norman R. Smith.
Ex-Employee of Department of Veteran's Affairs Indicted for Embezzling Veteran and Survivor BenefitsRead the Press Release
Terrence Starks, 37, from Bunker Hill, Illinois, was indicted by a federal grand jury for wire fraud and aggravated identity theft, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. If convicted, Starks faces up to twenty years in prison, a $250,000 fine, and up to three years supervised release on the wire fraud count and a mandatory consecutive two year prison sentence for the aggravated identity theft count.
The indictment alleges that Starks worked for the U.S. Department of Veteran's Affairs and in his position he accessed the U.S. Department of Veteran's Affairs computerized software system for the payment and distribution of benefits. That database contained names, Social Security numbers, dates of birth, and bank account information, among other information. The indictment alleges that Starks fraudulently changed the routing number and account number of veteran recipient's benefits to an account controlled by Starks through his girlfriend, thereby misrepresenting to the U.S. Department of Veteran's Affairs that the veteran or survivor was still receiving the benefits.
An indictment is a formal charge against a defendant. A defendant is presumed innocent of that charge until proven guilty beyond a reasonable doubt.
The indictment is the result of an investigation conducted by the United States Department of Veterans Affairs, Office of Inspector General. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
East Bay Residents Plead Guilty to Tax Fraud ConspiracyRead the Press Release
OAKLAND – Cassandra Tompkins, Cordia Spearman, and Damien Mitchell pleaded guilty in federal court in San Francisco yesterday to conspiracy to file false federal tax returns, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
Tompkins, 48, of Oakland; Spearman, 46, of Vacaville; and Mitchell, 52, of El Sobrante, were all charged on January 15, 2015, along with a fourth defendant, in a thirteen count federal indictment with conspiracy to file false claims. In pleading guilty, Tompkins, Spearman, and Mitchell admitted that between January 15, 2011, and May 15, 2012, they obtained and used personal identifying information to prepare and file 219 false federal income tax returns with the IRS. Tompkins admitted using the names and social security numbers of individuals to claim $678,426 in tax refunds, of which $287,498 was actually paid by the IRS. Tompkins further admitted she maintained notebooks that listed the names and other personal identifying information for some of the taxpayers, along with falseW-2s that she filed with the IRS. Tompkins, Spearman, and Mitchell each admitted they knew the tax returns were false except for the personal identifying information used to file the returns. All three defendants acknowledged having received a portion of certain tax refunds. Under the plea agreements, Tompkins, Spearman, and Mitchell pleaded guilty to conspiracy to file false claims, in violation of 18 U.S.C § 286.
The sentencing hearing for Tompkins and Spearman is scheduled for December 17, 2015, before The Honorable James Donato, U.S. District Court Judge, in Oakland. The sentencing hearing for Mitchell is not yet scheduled.
The maximum sentence for conspiracy to file false claims is 10 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
District Woman Sentenced to 24 Years in Prison for Murder of Man at Northwest Washington HotelRead the Press Release
WASHINGTON – Jamyra Gallmon, 21, of Washington, D.C., was sentenced today to 24 years in prison for the Feb. 9, 2015 murder of David Messerschmitt in a robbery at a downtown Washington hotel, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gallmon pled guilty on May 27, 2015, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a sentence between 18 and 25 years. The Honorable Michael Ryan accepted the plea today and sentenced Gallmon accordingly. Upon completion of her 24-year prison term, Gallmon will be placed on five years of supervised release.
Also today, Judge Ryan sentenced a co-defendant, Dominique Johnson, 19, for her role in events on the day of the crime. Johnson, also of Washington, D.C., pled guilty on May 27, 2015 to a charge of conspiracy to commit robbery. Judge Ryan sentenced Johnson to a year of incarceration, but suspended all but six months of that time on the condition that she successfully complete three years of probation.
“Jamyra Gallmon planned and carried out a cold-hearted scam to trick David Messerschmitt for the purpose of robbing him,” said Acting U.S. Attorney Cohen. “Then she repeatedly stabbed him when he tried to fight back. After leaving Mr. Messerschmitt to die from his wounds, she met up with Dominique Johnson and they rode a bus home together with the proceeds of the crime. The sentences handed down today hold both of them accountable for their callous crimes and hopefully will warn others who are even considering such senseless violence.”
Mr. Messerschmitt, 30, was killed on the evening of Feb. 9, 2015. He was attacked while a guest at the Donovan Hotel, in the 1100 block of 14th Street NW. According to the government’s evidence, Mr. Messerschmitt posted an advertisement earlier that day on Craigslist soliciting responses from other men. Gallmon pretended to be a man interested in meeting Mr. Messerschmitt and responded to his advertisement by e-mail. In fact, however, her true purpose in meeting with him was to rob him of his possessions.
Gallmon and Mr. Messerschmitt arranged to meet at approximately 7:30 p.m. in his hotel room. Gallmon walked into the hotel at 7:44 p.m., concealing her identity by wearing a jacket with a hood up and a covering over the bottom half of her face. She then entered Mr. Messerschmitt’s unlocked room. She attempted to rob him, and, when Mr. Messerschmitt fought back, she stabbed him approximately seven times in his chest, groin area, arm, and back.
During the robbery, Gallmon took Mr. Messerschmitt’s cell phone and SmarTrip Metro card. She then left the room and immediately made her way out of the hotel, once again disguising her identity by wearing a jacket with the hood up.
According to the government’s evidence, Gallmon and Johnson had discussed committing a robbery and traveled together to the hotel on the night of the murder. Johnson subsequently used Mr. Messerschmitt’s SmarTrip card on a near-daily basis for about six weeks.
Gallmon was arrested April 1, 2015 and Johnson was arrested seven days later.
In announcing the sentences, Acting U.S. Attorney Cohen and Chief Lanier commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department (MPD). They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker, Paralegal Specialist Vanessa Trent-Valentine, and Assistant U.S. Attorney Sharon Donovan. Finally, they acknowledged the work of Assistant U.S. Attorney Shana L. Fulton, who investigated and prosecuted the case.
Chicago Man Pleads Guilty to Mailing Bomb Threats and Threats of Violence Against Southern Illinois UniversityRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Derrick Dawon Burns, 22, of Chicago, Illinois, pled guilty in federal court to four federal charges stemming from a series of bomb threats and threats of violence directed toward Southern Illinois University in Carbondale (SIUC) students, faculty and staff on October 10, 2012, October 15, 2012, December 6, 2012, and October 1, 2013. Three of these letters were entitled "The War on SIU." Each letter was addressed to a combination of the following targets: Southern Illinois University, staff, student, SIU police, and the FBI.
Sentencing is set for December 8, 2015, in the United States District Court in Benton. Each charge of Willfully Making a Bomb Threat carries maximum penalties of ten years in federal prison, three years supervised release, a $250,000 fine and a $100 special assessment. Burns was ordered to remain detained, that is, held without bond, pending sentencing.
The investigation was conducted by the SIUC Department of Public Safety, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistance was provided by the Carbondale Police Department, the Illinois Secretary of State Bomb Squad, the Jackson County Sheriff’s Department, and the Illinois State Police. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Cape Coral Couple Indicted for Conspiracy to Steal Government Assistance Funds in New York and FloridaRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Cape Coral residents Ronald R. Raiola, a/k/a Ronald Sambuco (57), and Rose Ann Labarbera (61) with conspiracy to defraud the United States and to commit theft of government funds, and theft of government funds involving the Housing and Urban Development’s (HUD) Housing Choice Voucher (HCV) Program. Raiola is charged with an additional count of theft of government funds in relation to the Social Security Administration’s (SSA) Supplemental Security Income (SSI) Program. The conspiracy charge carries a maximum penalty of 5 years, and each count of theft of government funds carries a maximum penalty of 10 years in federal prison. The indictment also notifies the couple that the United States is seeking a money judgment in the amount of the proceeds of each of the fraud schemes.
Raiola and Labarbera were arrested earlier today and made their initial appearances in federal court in Fort Myers. They were released on bond and Raiola was also ordered to participate in home detention and electronic monitoring.
According to the indictment, Raiola participated in the HCV Program, commonly referred to as “Section 8,” from at least January 1997 until December 2012. He made fraudulent representations concerning his identity, marital status, place of residence, financial status, and ability to engage in gainful employment in order to participate in, and receive housing assistance subsidies through the HCV Program and SSI benefits from the SSA. Raiola is married to and lives with Labarbera. As part of the alleged conspiracy, they concealed their marital status, income, and ownership interests in residential properties in New York and Florida from HUD. Some of these properties were purportedly rented through the HCV Program to Raiola, and rent was paid to Labarbera and to Raiola’s alias by HUD.
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 United States Department of Housing & Urban Development - Office of Inspector General, and the Social Security Administration - Office of Inspector General, with assistance from the Lee County Sherriff’s Office Economic Crimes and Special Operations Units, the City of Fort Myers Housing Authority, the New York City Housing Authority, the United States Postal Inspection Service, and the Cape Coral Police Department. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Canadian Companies Fined $45 Million and Ordered to Forfeit an Additional $30 Million for Smuggling Misbranded Pharmaceuticals into the United StatesRead the Press Release
ALEXANDRIA, Va. – SB Medical Inc., and TC Medical Group, companies based in Toronto, Canada, and St. Michael, Barbados, were fined $45 million and required to forfeit another $30 million for orchestrating a multi-year conspiracy to smuggle misbranded prescription pharmaceuticals into the United States. During the conspiracy, SB Medical Inc. and TC Medical Group received over $33 million in proceeds from selling misbranded prescription pharmaceuticals to U.S. doctors and clinics.
SB Medical, Inc. and TC Medical Group pleaded guilty on May 7, 2015. According to court documents, from at least 2011 through 2014, the companies smuggled orthopedic injections, rheumatology infusions, cosmetic devices, optomology products, and oncology drugs into the United States. The non-FDA approved prescription pharmaceuticals were sourced from other foreign countries, including India, Turkey, France, Italy, and other countries. The pharmaceuticals included Lucentis, Mabthera, Botox, Dysport, Euflexxa, Remicade, Restylane, Synvisc, Prolia, Orencia, Orthovisc, and other products.
Members of the conspiracy working for SB Medical Inc. and TC Medical Group used false names to sell the pharmaceutical products throughout the United States. To smuggle pharmaceuticals across the U.S. border, large shipments were broken down into multiple small shipments. Those shipments were sent to addresses in Maryland, New Jersey, Florida, and other locations under different false names over several days. Customs forms falsely stated the contents and value of the shipments. Drop shippers in the United States received these packages, removed indicia that they were from abroad, and re-shipped them to doctors and clinics in the United States so that packages would have a United States-based return address. These drop shippers stored the drugs and medical devices in the basements of their private residences, often in violation of safety regulations requiring the pharmaceuticals to be stored at cool temperatures.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; George M. Karavetsos, Director, FDA Office of Criminal Investigations; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the sentence was imposed by U.S. District Judge Anthony J. Trenga.
This case was investigated by the FDA’s Office of Criminal Investigations, ICE-HSI, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Kellen S. Dwyer and Jay V. Prabhu are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-397.
California Man Pleads Guilty to the Sale of Horns from a Black RhinocerosRead the Press Release
Lumsden W. Quan, 47, an art dealer from San Francisco, California, pleaded guilty today to conspiracy to violate the Lacey and Endangered Species Act and to a violation of the Lacey Act for knowingly selling black rhinoceros horns to an undercover agent from the U.S. Fish and Wildlife Service (USFWS). His co-defendant, Edward N. Levine, charged in the indictment remains scheduled for trial on Oct. 19, 2015, in Las Vegas, Nevada.
The guilty plea was announced by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Daniel G. Bogden for the District of Nevada and Director Dan Ashe for USFWS.
Quan pleaded guilty before the Honorable Chief Judge Gloria M. Navarro in U.S. District Court in Las Vegas, Nevada, to all charges in the indictment. He is scheduled to be sentenced on Dec. 3, 2015. Quan was identified as part of “Operation Crash,” a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.
Quan admitted in federal court to conspiring with co-defendant Levine to sell two black rhinoceros horns to an undercover agent posing as a Colorado wildlife collector. Quan stated that he and Levine arranged to have the horns transported to Las Vegas, where on March 19, 2014, Quan sold them to the agent for $55,000. Quan faces a maximum sentence of five-years imprisonment.
The black rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law, including the Endangered Species Act. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
The investigation is continuing and is being handled by the USFWS’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of Nevada and the Justice Department’s Environmental Crimes Section. The government is represented by Trial Attorneys Jennifer Blackwell and Ryan Connors, Assistant U.S. Attorney Kathryn Newman, and paralegal Amanda Backer.
Businessman charged for trying to bribe East Cleveland councilmanRead the Press Release
An East Cleveland businessman was charged for attempting to bribe a councilman in that city in exchange for support in getting a liquor license, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Office of the Federal Bureau of Investigation.
Mukundkumar Patel, 52, was charged in a criminal information with one count of bribery concerning programs receiving federal funds.
“This councilman acted as we expect all public officials would and immediately reported a bribe offer to the FBI, who did great work following up,” Dettelbach said. “The lesson of this case is simple: ‘briber beware.’”
“We will not tolerate individuals believing they can circumvent the law by bribing a public official,” Anthony said. “The FBI commends the public official involved for adhering to his ethical principles by not accepting the bribe made by this business owner.”
Patel began renovating the former bar area of McCalls into a Convenient Food Mart which would sell beer and wine. Doing so would require a liquor license, which requires a written application endorsed by the city of East Cleveland, according to the information.
Patel submitted a liquor license application. City officials told Patel they were not inclined to endorse his application but would consider his request after speaking with community stakeholders, according to the information.
On October 15, 2014, Patel met with an East Cleveland councilman, identified in the charges only as Public Official 1, and offered to pay $2,000 if the councilman would sign the application. The councilman refused and Patel raised his offer to $3,000. The councilman again refused and Patel told the councilman to name his price, according to the information.
Unbeknownst to Patel, the councilman contacted the FBI to report the bribe solicitation. On Oct. 23, 2014, Patel again met with the councilman, who was acting at the FBI’s direction. Patel offered the councilman $4,000 up front and $1,000 later in return for signing Patel’s beer and wine application, according to the information.
The next day, Patel and the councilman met again and Patel paid him $4,000 in cash. The councilman turned the money over to the FBI, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Antoinette T. Bacon following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
A charge 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.
Broward Man Charged in Federal Court for Using a Means of Interstate Commerce to Attempt to Entice a Mother and Her Minor Daughters to Engage in IncestRead the Press Release
Broward man charged in federal court for using a means of interstate commerce to attempt to entice a mother and her minor daughters to engage in incest
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Palm Beach County, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Rick Bradsaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
Aaron J. Fink, 44, of Deerfield Beach, has been charged by a criminal complaint with using the internet to attempt to entice a mother and her two minor children to engage in illegal sexual activity. Fink is presently in state custody at the Palm Beach County jail and is expected to appear for Initial Appearance in two weeks before a United States Magistrate Judge upon which the government will seek his detention. If convicted, the defendant faces a 10 year mandatory term of imprisonment and a maximum term of life.
Between June 29, 2015, and August 13, 2015, Fink sent numerous sexually explicit messages via a public website, e-mail and text messages to an undercover officer who posed as the single mother of two minor daughters, 8 and 12 years old. As alleged in the criminal complaint, Fink discussed his desire to have sexual intercourse with the mother and both children as part of an incestuous relationship. Fink’s desires culminated on August 13, 2015, when he drove to West Palm Beach in an attempt to meet the mother and her children to engage in illegal sexual activity. PBSO intercepted Fink and he was arrested. Fink later confessed to sending sexually explicit messages to the mother, whom he did not know was an undercover officer. Fink also admitted that he traveled to West Palm Beach to meet the mother and minor children to “possibly” engage in sexual activity with them.
This case was adopted from state prosecution in cooperation with the Palm Beach County State Attorney’s Office and the South Florida ICAC. This case was also brought into federal court as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorney’s Offices and the Criminal Division’ Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach State Attorney’s Office.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
20 August 2015
Wasilla Man Indicted for Child Exploitation CrimeRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a two-count indictment against Justin Raymond Nekeferoff, 27, of Wasilla, Alaska, charging him with attempted sexual exploitation of a child – coercion and enticement of a minor.
According to court documents, between June 8, 2015, and July 22, 2015, Nekeferoff, using a facility and means of interstate and foreign commerce, did knowingly attempt to persuade, induce, entice, and coerce an individual who he believed had not attained the age of 18 years, to engage in any sexual activity for which any person can be charged with a criminal offense, to wit: Sexual Abuse of a Minor in the First Degree, in violation of Alaska Statute 11.41.434(a)(1).
The case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey J. Renschen is prosecuting the case.
If convicted of attempted sexual exploitation of a child – coercion and enticement of a minor, Nekeferoff faces a statutory penalty of not less than 10 years and up to life imprisonment. The count also carries a fine of up to $250,000, as well as the possibility of a life time period of supervised release following any sentence of imprisonment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Washington Resident Sentenced to 10 Years for Drug Trafficking, Possession of A Firearm in Furtherance of A Drug Trafficking Crime, and Being A Felon in Possession of A FirearmRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a former Washington resident was sentenced to 120 months of imprisonment for drug trafficking, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
Layten Scott Banchero, 29, a resident of Seattle, Washington, was sentenced Monday by U.S. District Court Judge Timothy M. Burgess in Juneau to 120 months of imprisonment followed by a five year term of supervised release. On April 6, 2015, Banchero pled guilty to a drug trafficking conspiracy, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, on or about May 11, 2014, Banchero entered into a drug trafficking conspiracy with other co-conspirators to bring methamphetamine and heroin from the lower 48 to Ketchikan, Alaska using various transportation methods. On June 13, 2014, Ketchikan Police were investigating another individual for a drug offense which subsequently led them to Banchero, who was residing in a local hotel room. During that contact, officers obtained a search warrant for Banchero’s room. Banchero was found to be in possession of 83.71 grams of actual methamphetamine and 30.1 grams of heroin, drug ledgers, a large amount of U.S. currency, and a loaded .357 magnum pistol. Banchero has a number of felony convictions from Washington and is prohibited from possessing firearms. During the investigation, it was discovered that Banchero had secured a local storage locker and law enforcement executed several warrants at that location. Officer’s discovered a number of other firearms and $24,000 in U.S. currency. Law enforcement seized a total of $38,533 in U.S. currency that was obtained from the sale of drugs and was forfeited as part of Banchero’s plea, along with the firearms seized from his storage locker and his room.
In sentencing Banchero, Judge Burgess noted the seriousness of the crime, the extensive criminal history of the defendant, deterrence of the defendant and others, and a need to protect the public as the reasons for sentence he imposed.
Ms. Loeffler commended the Drug Enforcement Administration, Ketchikan Police Department, and the Alaska State Troopers who conducted the investigation leading to the successful prosecution in this case.
Violent Drug Dealer Sentenced to Life ImprisonmentRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that United States District Court Judge Shelly D. Dick sentenced JEFFREY D. PERRY, age 32, of Baton Rouge, Louisiana, yesterday to serve life imprisonment, followed by a prison term of fifteen years. Judge Dick also ordered PERRY to forfeit drug trafficking related proceeds of up to $10,505,205.
Following a multi-week jury trial in September 2014, PERRY was convicted of conspiring to distribute cocaine and “crack” cocaine, distributing cocaine and “crack” cocaine, car-jacking, possessing firearms in furtherance of crimes of violence and drug trafficking crimes, and possessing firearms while a convicted felon.
During yesterday’s sentencing, the Court found that PERRY made his living trafficking drugs and that he did whatever it took to protect his drug trafficking enterprise. As an example of his danger to the community, the Court noted that reliable evidence suggested that PERRY had hired an individual and two young men to set an elderly man’s house on fire. These two young men died later that day as a result of burns they sustained from the arson they had committed. During sentencing, the Court noted PERRY’s cold-blooded and callous statements about one of the arsonists, as he lay dying in his backyard, seeking medical assistance for the injuries he sustained from the fire PERRY had hired him to set.
Evidence at trial showed that, from August 2006 until September 2011, PERRY led a drug-trafficking endeavor within Baton Rouge operating largely on Evergreen Street, Louisiana Street, and Delphine Street, which distributed kilogram and multi-ounce amounts of cocaine and “crack” cocaine. Customers used cash, stolen equipment, firearms, and food stamps to purchase in those locations varying amounts of cocaine and “crack” cocaine from PERRY. He used “crack” addicts to test the quality of the “crack” he cooked before selling it to others.
As the Court found, PERRY often used violence. As another example, evidence at trial showed that PERRY solicited the assistance of Mark Allen to rob another individual who had been supplying him with kilogram amounts of cocaine. A few days after this robbery, PERRY enlisted Allen’s assistance to rob one of his customers of approximately $80,000. During this robbery, Allen shot and wounded the customer and car-jacked him. After Allen met PERRY and handed the cash he had taken during the armed robbery over to PERRY, the latter rewarded Allen, whom he then knew to be a convicted felon, with an ounce of “crack” cocaine and a Taurus .40 caliber semi-automatic pistol to protect himself against any reprisals the victim or his friends might take as a result of the robbery Allen had committed.
Other Defendants
- On August 31, 2011, following trial, a jury convicted Donald Frank of conspiracy to distribute cocaine for conduct arising from his drug trafficking endeavors, on behalf of PERRY. On March 6, 2012, he was sentenced to serve a time of life imprisonment by United States District Judge James J. Brady.
- On June 16, 2015, Judge Dick sentenced Jermaine Chapman who, along with PERRY, had also been convicted of drug trafficking and firearm related violations at trial, to a forty-five year term of imprisonment.
- On June 18, 2015, Judge Dick sentenced Charles Boyer who, along with PERRY and Chapman, had also been convicted at trial of conspiracy to commit drug trafficking, to a ten year term of imprisonment.
U.S. Attorney Green stated: “Justice has been served and a community has been freed from a violent menace. The defendant has brutalized and victimized neighborhoods for years while growing a drug trafficking empire responsible for the distribution of over $10 million worth of cocaine into our community. His culture of violence and drugs undermined all those struggling to raise children without those influences. Given the defendant’s past and present misconduct, I believe Judge Dick’s sentence of life imprisonment is entirely appropriate. I am extremely proud and grateful of the prosecutors and agents whose dedication and hard work have made our community safer.”
DEA Assistant Special Agent-in-Charge Joseph W. Shepherd stated, “Perry and his cohorts, through violence, intimidation, and domestic drug trafficking attempted to hold this community hostage. This life sentence is a resounding statement to the citizens of the Greater Baton Rouge area from DEA and the rest of our law enforcement partners that enough is enough. For those contemplating a life of crime and drug dealing in our community, let this be a warning to you.”
This matter was prosecuted by Assistant United States Attorney Robert W. Piedrahita, who serves as Litigation Counsel within the United States Attorney’s Office, and Assistant United States Attorney Chris Dippel, who serves as a Deputy Criminal Chief. This matter was investigated by the Drug Enforcement Administration (DEA) and the Baton Rouge City Police, with valuable assistance from the Louisiana State Police, the Louisiana State Police Crime Lab, and the Jefferson County (Texas) Sheriff’s Office.
Veterans Affairs Official Pleads Guilty to Accepting Gifts in Relation to His Job DutiesRead the Press Release
SACRAMENTO, Calif. —Anthony Castaneda, 45, resident of Oakdale, pled guilty today before Judge Morrison C. England Jr. to Receipt of a Gratuity by a Public Official, United States Attorney Benjamin B. Wagner announced.
According to court documents, while working as a contracting official at the Department of Veterans Affairs, Castaneda was in a position to influence the award of construction contracts at VA facilities, including the VA hospital at the former Mather Field in Sacramento. In 2010, a construction contractor provided Castaneda with a prepaid vacation package at a theme park worth approximately $2,243.56. Castaneda and his family traveled to the theme park for five days in October 2010. At the time that he accepted that gift, Castaneda was in a position to influence the award of construction contracts by making recommendations about which contractors should be given VA business. Court records also show that Castaneda received a second vacation package from the same contractor, worth approximately $1,439, in 2008.
The contractor in question has been charged separately in federal court in San Jose: United States v. Herrera, case number 5:14-cr-219.
This case was the product of an investigation by the Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
Castaneda faces a maximum statutory penalty of two years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. A conviction can also result in Castaneda being debarred from being awarded government procurement contracts in the future for up to five years.
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United States Files Complaint Seeking Receivership, Injunction and Money Judgment Against Venture Capital CompanyRead the Press Release
PHILADELPHIA - A civil complaint and consent decree were filed yesterday on behalf of the U.S. Small Business Administration (SBA) against Murex Investments I, L.P., a limited partnership in Philadelphia, PA, announced United States Attorney Zane David Memeger. The complaint alleges that Murex entered into an agreement with the SBA, wherein the SBA provided Leverage to Murex through the guarantee of debentures with a face value of $8.25 million. Under the terms of that agreement, Murex was prohibited from exceeding a certain level of Capital Impairment and the complaint alleges that Murex has violated that level. At the time of the violation, $3.4 million of the debentures remained outstanding.
The consent decree provides for the appointment of the SBA as Receiver of Murex for the purpose of marshaling and liquidating Murex’s assets and satisfying the claims of its creditors. It also provides for a money judgment in the amount of $2,588,850.54 plus interest from the date of the entry of judgment.
The case was referred by SBA counsel Arlene M. Embrey and is being handled by Assistant United States Attorney Richard M. Bernstein.
U.S. Attorney Pamela Cothran Marsh Announces ResignationRead the Press Release
TALLAHASSEE, FLORIDA – Pamela Cothran Marsh announced her resignation today as United States Attorney for the Northern District of Florida, effective September 4, 2015. Since 2010, U.S. Attorney Marsh has served as the leading federal prosecutor for Florida’s 23 panhandle counties, from Alachua to Escambia, overseeing offices in Gainesville, Tallahassee, Panama City, and Pensacola.
“For more than five years as United States Attorney for the Northern District of Florida, Pamela Cothran Marsh has worked tirelessly to protect and empower the people of her community,” said Attorney General Loretta Lynch. “The skills, integrity, and passion that Pam has brought to the job each and every day have advanced the cause of justice on a variety of important fronts, from human trafficking to public corruption to law enforcement officer safety. Pam’s remarkable record of service reflects her immense talent as an advocate, her consummate professionalism as a leader, and her unwavering commitment to the pursuit of justice. From our earliest days together on the Attorney General’s Advisory Committee, I have always admired Pam’s dedication to the mission of this Department, to the high ideals of public service, and to the timeless principles that make our nation exceptional. I thank her for her extraordinary work as United States Attorney, and I look forward to all that she will continue to achieve in the next phase of her already distinguished career.”
“It was a tremendous honor to be appointed by President Barack Obama as United States Attorney, and it has been my great privilege to lead this office for the last five and a half years,” said U.S. Attorney Marsh. “I have loved working for Justice since my first day on the job. The lawyers and staff are incredibly talented and work hard every day in the name of justice, fairness, and equality. I would like to express my deep thanks to the President, the two wonderful Attorneys General with whom I worked – Eric H. Holder, Jr., and Loretta Lynch – and to Senators Nelson and Rubio for the confidence they placed in me. I will be forever grateful for the opportunities I have had as United States Attorney to protect our communities in the Northern District of Florida.”
On June 25, 2010, following President Obama’s nomination and the U.S. Senate’s confirmation, U.S. Attorney Marsh became the district’s 40th U.S. Attorney, and the first woman to serve in this position for the Northern District of Florida
Over the past five years, the Northern District of Florida has prosecuted a variety of cases related to tax and BP oil spill fraud, drug trafficking, sexual exploitation of minors, health care fraud, mortgage fraud, and civil rights violations, including:
- In 2012, seven individuals were sentenced in Tallahassee for conspiring to file more than 350 fraudulent income tax returns, seeking more than $2.4 million in tax refunds.
- In 2012 and 2013, as part of “Operation See Change”, nine individuals were sentenced in Tallahassee after a six-month undercover investigation targeting street-level drug distribution along Tallahassee’s Alabama Street corridor.
- In 2013, as part of the Project Safe Childhood initiative, a Georgia man was sentenced in Gainesville to 235 months in prison for attempted sexual exploitation of a minor via the Internet.
- In 2014, nine individuals were sentenced in Pensacola for filing fraudulent BP oil spill claims.
- In 2014, a California woman was sentenced to seven years in federal prison for her role in a $16 million mortgage fraud scheme involving properties in Navarre, Santa Rosa Beach, and Panama City. She was ordered to pay over $10 million in restitution to the victims of the fraud.
- In 2014, a Freeport physician was sentenced to 30 years in prison on charges that included health care fraud violations and illegally distributing controlled substances.
- In 2015, a former Gadsden County Deputy Sheriff’s Captain was sentenced in Tallahassee to 30 months in prison for violating the civil rights of an arrestee.
During her tenure, in addition to criminal prosecution, U.S. Attorney Marsh’s priorities have included outreach in human trafficking, reentry, violent crime prevention, and law enforcement officer safety.
U.S. Attorney Marsh created and chaired the Big Bend Coalition Against Human Trafficking, which has contributed to an increase in both human trafficking awareness and prosecutions. In a 2014 Panama City case, a human trafficker received life in prison for kidnapping and transporting a victim to Mississippi for prostitution.
Through the Big Bend After Reentry Coalition, U.S. Attorney Marsh’s office has joined other government agencies and non-profit groups in North Florida to assist offenders upon their release from incarceration, by providing support during their transitions into our communities.
U.S. Attorney Marsh has hosted law enforcement training sessions and recently co-produced an officer safety training video for officers responding to violent encounters.
Also, in a unique case, U.S. Attorney Marsh personally led a successful civil case to return a renaissance painting taken from the rightful owners, a Jewish family living in France, during World War II. The painting, known as the Cristo Portacroce by Romanino, was seized from an exhibit of paintings on loan from the Italian state museum in Milan, Italy.
After U.S. Attorney Marsh’s departure, First Assistant U.S. Attorney Christopher P. Canova will serve as Acting U.S. Attorney for the Northern District of Florida.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Two Swiss Banks Reach Resolutions under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that bank zweiplus ag (Bank Zweiplus) and Banca dello Stato del Cantone Ticino (Banca Stato) have reached resolutions under the department’s Swiss Bank Program.
“Swiss banks continue to accept responsibility for their involvement in the concealment of foreign assets and the evasion of tax by U.S. accountholders,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “The banks are paying penalties, making necessary reforms and providing information and cooperation that are enabling the department to hold accountable those individuals that facilitated this misconduct.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank 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 these banks for tax-related criminal offenses.
Bank Zweiplus was founded in July 2008 as a retail bank based in Zurich. Offices located in Geneva and Basel, Switzerland, were closed in 2008 and 2012, respectively. Since Aug. 1, 2008, Bank Zweiplus maintained and serviced 44 U.S.-related accounts with an aggregate value of approximately $12.1 million.
Bank Zweiplus was aware that U.S. taxpayers have a legal duty to report to the Internal Revenue Service (IRS) their ownership of bank accounts outside the United States and to pay taxes on income earned in such accounts. Nevertheless, in disregard of U.S. laws, the bank provided a variety of traditional Swiss banking services that assisted some U.S. taxpayers in concealing their undeclared accounts. For example, Bank Zweiplus maintained numbered accounts and accounts held in the name of structures which were effectively owned or controlled by U.S. persons, including structures in the British Virgin Islands and the Bahamas.
Bank Zweiplus cooperated with the department during its participation in the Swiss Bank Program and encouraged its U.S. clients to enter the IRS Offshore Voluntary Disclosure Program. Bank Zweiplus will pay a penalty of $1.089 million.
Banca Stato was established in 1915 and is headquartered in Bellinzona, Switzerland. Banca Stato was aware that U.S. taxpayers had a legal duty to report to the IRS and pay taxes on the basis of all of their income, including income earned in accounts that the U.S. taxpayers maintained at the bank. Despite this, the bank opened and serviced accounts for U.S. clients who the bank knew or had reason to know were not complying with their U.S. income tax obligations.
In 2001, Banca Stato entered into a Qualified Intermediary Agreement with the IRS. In 2001, the bank issued an internal directive prohibiting U.S. persons without a Form W-9 on file with the bank from buying U.S. securities. However, prior to 2011, Banca Stato’s relationship managers were not instructed to, and did not, evaluate or screen incoming U.S. clients for U.S. tax compliance status. At that time, more than 70 percent of the assets under management were related to U.S. accountholders who had not provided a Form W-9 to the bank.
In 2011, Banca Stato implemented a project that it called “Colombo” to change the manner in which it handled U.S. clients. The bank recognized both risks and rewards of handling U.S. clients. As to the former, the bank recognized that “[w]e can no longer have clients who are U.S. Persons who have not signed the W-9 form.” But the bank also recognized an opportunity to attract new U.S. clients because many Swiss banks declined to service U.S. persons from Ticino, Switzerland, and the bank perceived “a huge demand from fully tax-compliant U.S. Persons . . . attracted by the brand BancaStato (especially because we have no branches in the US).”
Banca Stato entered into a relationship with a Lugano-based U.S. Securities and Exchange-registered investment advisory firm to partner in attracting U.S. persons living and working in the Ticino region who could not open or maintain accounts at other institutions. The bank paid the firm a one-time finder’s fee of 0.5 percent on the incoming funds. Despite the bank’s decision to refuse to open new accounts of U.S. persons without a Form W-9, it did not always adhere to this policy.
Banca Stato offered a variety of traditional Swiss banking services that it knew would and in certain instances did assist U.S. clients in concealing assets and income from the IRS, including hold mail and code name or numbered accounts. In addition, the bank employed a variety of other means or conduct that it knew or should have known would assist U.S. taxpayers in concealing their Banca Stato accounts, including opening accounts for U.S. taxpayers who left other banks being investigated by the department and allowing U.S. clients to direct repeated wire transfers between $9,000 and $9,900 in an effort to conceal their Swiss bank accounts from U.S. authorities.
During the applicable period, Banca Stato maintained and serviced 187 U.S.-related accounts with an aggregate maximum balance of approximately $137 million. Banca Stato will pay a penalty of $3.393 million.
In accordance with the terms of the Swiss Bank Program, each bank 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 these banks 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 these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“The vigorous pursuit of unreported income in hidden offshore accounts is one of our top priorities,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Through our coordinated efforts with the Department of Justice, we now have significantly more information about the institutions and individuals involved in offshore tax evasion. The public should be on notice that we will continue to use all tools at our disposal to stop this abuse and protect the American taxpayer.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business and International Division for their substantial assistance. Ciraolo also thanked John E. Sullivan, Thomas G. Voracek and Mark Kotila, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Two Sentenced in Methamphetamine Trafficking ConspiracyRead the Press Release
ABILENE, Texas — Two defendants, Ceddrick Lamont Johnson, a/k/a “Bunny Cool,” of Abilene, Texas, and Stephanie McQueen, of Sweetwater, Texas, who pleaded guilty to their roles in a methamphetamine trafficking conspiracy have been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, McQueen, 25, was sentenced by U.S. District Judge Jorge A. Solis to 60 months in federal prison. Yesterday, Judge Solis sentenced Johnson, 38, as a career offender to 240 months in federal prison. Each pleaded guilty in April 2015 to one count of conspiracy to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine.
According to the factual resumes filed in the case, special agents with the FBI and investigators with the Nolan County District Attorney’s Office began an investigation in 2013 into the distribution of methamphetamine in the Sweetwater, Texas, area. McQueen was identified as a distributor. When McQueen was stopped for traffic violations in August 2014, officers located a small quantity of methamphetamine in the vehicle. In a subsequent interview, she identified a person she knew as “Bunny Cool,” (Johnson) as one of her supply sources for the methamphetamine she distributed in Sweetwater. She indicated she was introduced to Johnson in 2013 and that he fronted her methamphetamine for approximately nine months. She purchased one ounce of methamphetamine every other day.
On September 25, 2014, McQueen texted Johnson and negotiated the purchase of methamphetamine. Johnson subsequently distributed 4.3 grams of methamphetamine to McQueeen. He was arrested on September 26, 2014, and text messages from his phone showed a pattern of drug trafficking. On October 3, 2014, law enforcement agents purchased methamphetamine from McQueen and another person in Sweetwater.
The FBI and the Nolan County District Attorney’s Office investigated. Assistant U.S. Attorney Juanita Fielden prosecuted.
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Two Anakyuvuk Pass Women Indicted for Theft of Postal Funds and PropertyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two women from Anaktuvuk Pass were separately indicted by a federal grand jury in Anchorage for multiple counts of Misappropriation of Postal Funds.
According to Assistant U.S. Attorney Bryan Schroder, Dorothy Gordon was indicted on 23 counts related to theft of deposits from the Anaktuvuk Pass Post Office, as well as theft of cash on delivery (COD) funds. The total amount of theft charged for Gordon is over $70,000. Bernice Hart was charged in a separate indictment on 45 counts related to theft of deposits, theft of COD funds, and theft of money orders. The total amount of theft charged for Hart is over $40,000.
The charge of Misappropriation of Postal Funds carries a maximum sentence of five years imprisonment, or a fine of $250,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Ms. Loeffler commends the U.S. Postal Service, Office of Inspector General for the investigation of this case. According to Joanne Yarbrough, Special Agent in Charge for the Western Area Field Office of the United States Postal Service Office of Inspector General, the vast majority of Postal Service employees are hardworking professional individuals dedicated to the furtherance of Postal Service operations. However, when employees violate the public trust, as alleged in this case, OIG agents will investigate those individuals aggressively and seek prosecution to the fullest extent of the law.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Suitland Woman Pleads Guilty to Stealing over $115,000 in Social Security Retirement BenefitsRead the Press Release
Greenbelt, Maryland – Theresa Darlene Snead, age 56, of Suitland, Maryland pleaded guilty today to theft of government property in connection with a scheme to steal over $115,000 in social security benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to Snead’s plea agreement, between May 1986 and her death on January 10, 2003, Individual A received monthly retirement benefits from the Social Security Administration (SSA). At the time of her death, Individual A was living with Snead. Individual A’s death was not reported to SSA. Between January 2003 and March 2014, when the benefits were terminated, SSA continued to mail Individual A’s monthly benefits check to Snead’s address in Suitland.
Snead admitted that after Individual A’s death she cashed the SSA checks at a local liquor store, using an identification card bearing Individual A’s name, but Snead’s photograph. Snead signed the back of each check in Individual A’s name. SSA paid a total of $115,388 in retirement benefits after Individual A’s death. Snead admitted that she knew she was not entitled to these benefits.
Snead and the government have agreed that if the Court accepts the plea agreement Snead will be sentenced to 18 months in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 10, 2015 at 2:30 p.m.
United States Attorney Rod J. Rosenstein commended the SSA Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren Perry and Assistant U. S. Attorney Lindsay Eyler Kaplan, who are prosecuting the case.
Springfield Man Indicted on Federal Firearms and Drug ChargesRead the Press Release
BOSTON – Robert Crichlow, 37, was indicted in U.S. District Court in Springfield on one count of being a convicted felon in possession of a firearm and ammunition and one count of possession with intent to distribute crack cocaine.
The indictment alleges that, on June 4, 2015, Crichlow possessed a Taurus Model PT 145 .45 caliber pistol and seven rounds of .45 caliber ammunition. He also possessed eight rocks of crack cocaine packaged for sale.
For those who qualify as armed career criminals, the charge of being a felon in possession of a firearm provides a mandatory minimum sentence of 15 years and a maximum of a lifetime in prison, five years of supervised release, and a fine of $250,000. The charge of possessing crack cocaine with intent to distribute provides a sentence of no greater than 20 years in prison, up to life of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Smuggling Boss and Two Others Head to Prison in Alien Smuggling ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A total of three people have been ordered to federal prison for their roles related to a conspiracy to harbor and transport illegal aliens, announced U.S. Attorney Kenneth Magidson.
Homero Gonzalez-Carranza, 30, a citizen of Mexico who resided in Houston, pleaded guilty to being a boss in the conspiracy which existed from January 2007 until January 2015. Eduardo Luis Pompa, 26, also of Houston, was convicted June 11, 2015, following a two-day trial and only 45 minutes of deliberations. Also sentenced today was co-conspirator Lisa Quintanilla, 46, of Premont, who had previously pleaded guilty.
Today, Senior U.S. District Judge Hayden Head handed Gonzalez-Carranza a 151-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings upon his release from federal prison. Pompa received a sentence of 63 months, while Quintanilla was sentenced to 34 months.
Gonzalez-Carranza oversaw the transportation of illegal aliens from the Rio Grande Valley to Houston. Illegal aliens would be harbored at stash houses in Houston until ultimately being transported to their final destinations within the United States. During the conspiracy, illegal aliens suffered injuries during transport, such as during high speed chases and vehicles crashes.
In one instance, 115 illegal aliens were discovered in a house in Houston on March 19, 2014. They were held against their will at the stash house which was about 1400 square feet with boarded up windows and doors.
During Pompa’s trial, which involved the testimony of 15 government witnesses, evidence established that Pompa served as a scout for the alien smuggling organization. In that role, he would drive ahead of or behind vehicles transporting illegal aliens to look for law enforcement. Pompa served in this capacity from early 2014 until July 14, 2014, when he was arrested with nine other conspirators transporting 57 aliens to Houston.
Quintanilla also served as a scout for the alien smuggling organization and did so from January 2014 to June 2014. Lucia Mendez, 35, of Pasadena, who previously pleaded guilty, also worked for the alien smuggling organization. She provided vehicles that were used by other members of the organization to transport illegal aliens and served in this role during 2014. Mendez is scheduled to be sentenced Sept. 29, 2015. Mendez, Pompa, and Quintanilla worked for Gonzalez-Carranza.
Additionally, evidence also established that this criminal organization transported multiple loads of illegal aliens on a weekly and even daily basis. On one occasion - April 23, 2014 - a load driver for the organization was arrested transporting five illegal aliens near Premont. That driver attempted to flee, traveling in excess of 100 miles per hour and finally crashing into a tree, causing serious bodily injuries to the aliens. Quintanilla served as a scout for this particular load. The evidence also established that Pompa was working as a scout that same day, but for another load of transported aliens.
It is estimated that thousands of illegal aliens were transported and harbored during this conspiracy.
Gonzalez-Carranza and Pompa will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Quintanilla will remain on bond pending her designation to a U.S. Bureau of Prisons facility, also to be determined in the near future.
The case was investigated by Homeland Security Investigations and Border Patrol as part of the South Texas Campaign. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
Schickell Best Sentenced to 51 Months ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced today that Schickell Best, 27, of Gary, Indiana was sentenced to 51 months imprisonment and 2 years of supervised release by District Court Judge James Moody after pleading guilty to being a felon in possession of a firearm.
According to documents filed in this case, on September 28, 2013, Best was arrested by law enforcement at the a bar in Gary, Indiana after being observed standing outside the bar as it was closing in possession of a loaded Norinco model SKS semi-automatic rifle. Best had prior felony convictions including one for Battery on Law Enforcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Gary Police Department. The case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
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San Antonio Man Sentenced to Federal Prison on Child Pornography ChargesRead the Press Release
In San Antonio today, 40-year-old Gabriel Espinoza of San Antonio, TX, was sentenced to the statutory maximum of 30 years in federal prison for production of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero, San Antonio Division.
In addition to the prison term, United States District Judge Orlando Garcia ordered that Espinoza be placed on supervised release for 40 years after completing his prison term.
On February 3, 2015, Espinoza pleaded guilty to one count of production of child pornography. By pleading guilty, Espinoza admitted that on or about May 2011 he coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction. Espinoza then distributed images of the victim through the internet.
“The heavy sentence imposed on Espinoza sends a clear message that there are serious consequences for those who exploit children in anyway,” stated Special Agent in Charge, James Spero, HSI San Antonio. “Targeting crimes of this nature is a high priority for HSI. We will continue to dedicate HSI resources nationwide to identify and bring to justice these individuals."
This case was investigated by HSI. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Sacramento Man Sentenced to More Than Eleven Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. —Robert M. Schaefer, 68, of Sacramento, was sentenced today by Chief United States District Judge Morrison C. England Jr. to eleven years and four months in prison for two counts of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2001 to 2010, Schaefer uploaded thousands of images of children being sexually exploited, including children under 10, to various file‑sharing websites. He would surf the Internet looking for people seeking particular types of photos, which he would then supply from his extensive collection. His computers were seized once by the Sacramento Police Department in 2006, but Schaefer rebuilt his pornography collection and began collecting and sharing the materials again. The FBI seized his computers again on 2010 after the German Federal Police provided a tip that Schaefer had recently been uploading child pornography to a file-sharing site in Germany.
In sentencing the defendant, Chief Judge England noted that the volume of the defendant’s collection of child pornography was “astronomical” and that he had served as a niche supplier of child pornography to people seeking particular types of images from all over the world. Because of these facts, Chief Judge England ordered that the defendant serve ten years, the maximum allowable under the law, for his offense of possessing child pornography in 2010, to be followed consecutively by 16 additional months for his offense of possessing child pornography in 2006, for a total sentence of 136 months in prison. Upon release from prison, the defendant will be required to spend the remainder of his life under the supervision of a United States probation officer, and will be required to register as a sex offender.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Internet Crimes against Children Task Force, and the Sacramento Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
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Ringleader in Check and Credit Card Fraud Schemes Sentenced to over 5 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Egwolo Wilfred Otete, age 31, of formerly of Jacksonville, Florida and Beltsville, Maryland today, to 61 months in federal prison, followed by two years of supervised release, for check and credit card fraud schemes with over 250 victims and losses of more than $468,000. Otete has already served nearly 41 months in Florida state prison in connection with the schemes. Judge Bennett also ordered Otete to pay restitution of $468,534.42, the amount of the victims’ actual losses. Otete was ordered to be surrendered to immigration authorities for deportation after the service of his federal sentence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, from September 3, 2010 through March 1, 2011, Otete conspired with co-defendants Jimoh Babatunde Aderomilehin, Olaniyi Olalekan Akintuyi, Moyosore Fakeye, Obinna Stanley Okpala, and others, to execute a scheme to defraud financial institutions by depositing counterfeit checks into accounts at financial institutions and withdrawing the funds before the checks were returned as fraudulent.
Shortly after Otete arrived in the United States to attend college, he met Oluwaseun Sanya at a nightclub. Soon, Otete became deeply involved in both the check fraud scheme and a counterfeit credit card scheme, and moved in with Sanya. Their apartment became a central point where counterfeit checks and credit cards were produced and distributed, and fraud proceeds delivered.
In the counterfeit check scheme, Otete and others recruited students and others to allow the group to use their bank accounts to deposit counterfeit checks. Otete also recruited bank employees to obtain account and personal information about bank customers, which he and Sanya used to create the counterfeit checks to be deposited into the students’ compromised accounts. Once counterfeit checks were deposited, funds were withdrawn before the counterfeit checks could be identified as fraudulent and the deposits reversed. Otete also conducted transactions himself. Finally, Otete and Sanya received a substantial share of the proceeds after paying the students, the corrupt bank employees, and the costs of producing the checks.
In addition to the check fraud scheme, from October 2010 through November 2012, Otete conspired with co-defendants Aderomilehin, Fakeye, Akintuyi, Okpala, Hannah Moekay Konteh and others to execute a second scheme by obtaining stolen credit card numbers from individuals who worked in local businesses and “skimmed” credit cards. The skimmed numbers were used to re-encode credit cards the defendants already had. Otete and Sanya both had equipment to re-encode the credit cards and did so regularly. Sometimes they were paid for the cards, and sometimes they received a percentage of the funds which were obtained by using the re-encoded cards. Sometimes Otete directed co-defendants as to what to purchase. In some cases, Otete, Sanya, or others involved in the conspiracy identified complicit tellers or cashiers to use for transactions. Individuals traveled to North Carolina, Pennsylvania, Georgia and other locations to conduct transactions. Eventually, Otete taught others, such as Fakeye and Aderomilehin, how to manufacture the counterfeit credit cards and they obtained their own equipment.
In March 2011, Otete was arrested. A search warrant was subsequently executed at the apartment shared by Otete and Sanya. Sanya had disposed of his own equipment, but had left Otete’s equipment to be discovered. When he was released, Otete went to live with a friend of Sanya’s in Florida, and resumed credit card fraud as a way to pay his expenses. On several occasions he arranged for co-defendant Hannah Konteh to visit him and assist by conducting fraudulent transactions. Within months, Otete was arrested and detained for this conduct. He was subsequently convicted and served a sentence of nearly 41 months for the Florida conduct. Upon his release, he was transferred to Maryland for this case.
Otete and his co-conspirators attempted to obtain between $400,000 and $1 million as a result of the two fraud conspiracies, using the identities of more than 250 victims.
Oluwaseun Sanya, age 28, of Beltsville, Maryland; Jimoh Babatunde Aderomilehin, age 24, of Randallstown, Maryland;; Olaniyi Olalekan Akintuyi, age 25, of Baltimore; Moyosore Fakeye, age 27, of Baltimore; Obinna Stanley Okpala, age 24, of Baltimore; and Hannah Moekay Konteh, age 26, of Clinton, Maryland; Brianna Janet Turner, age 25, of Upper Marlboro, Maryland; Brittnee Ashanya Bellamy Handon, age 24, of Baltimore; and Nazrat Zaman, age 24, of Baltimore, previously pleaded guilty and were sentenced. Sanya was sentenced to 212 months in prison; Turner was sentenced to 65 months in prison; Konteh and Handon were each sentenced to four years in prison; Aderomilehin, Akintuyi, Fakeye, and Okpala were each sentenced to three years in prison; and Zaman was sentenced to six months.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and the Montgomery County and Baltimore County Police Departments for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamara L. Fine, who prosecuted the case.
Rapper Young Buck Pleads Guilty and Sentenced for Violating Terms of Supervised ReleaseRead the Press Release
David Darnell Brown aka “Young Buck,” 34, of Murfreesboro, Tenn., pleaded guilty today to knowingly and willfully falsifying, concealing, and covering up by trick, scheme, and device, material facts regarding his possession and use of marijuana, by providing a false urine sample and lying to a U.S. Probation Officer, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Brown was sentenced by U.S. District Judge Todd J. Campbell to serve 18 months’ probation, pay a $7,500 fine; perform 100 hours of community service; and submit to mandatory drug testing and treatment.
In July 2013 Brown was convicted of two felonies in U.S. District Court; being a convicted felon in unlawful possession of a firearm and being a convicted felon in unlawful possession of ammunition. Brown was sentenced to 18 months in prison and to a 3-year term of supervised release for these offenses. He completed his prison sentence and began his term of supervised release in November 2013.
Among other conditions of his supervised release, Brown was not to use or possess any controlled substances, including marijuana, and was required to submit to random drug testing during the period of supervised release.
On May 13, 2015, Brown was subjected to a random urinalysis to determine his compliance with the Court’s order against using controlled substances. Before providing a urine sample, Brown was asked by a U.S. Probation Officer if he had used or possessed any controlled substances and he replied that he had not. Brown then proceeded to supply a urine sample, at which time the probation officer noticed that he was providing the sample from a device designed to provide urine from another person, consisting mainly of a plastic bag concealed under his clothing and an attached tube designed to deliver a stream of urine. Brown used this device in an attempt to conceal his illegal use of marijuana.
In sentencing Brown, Judge Campbell commented that the defendant’s conduct “goes to the integrity of the system.”
This case was referred by the U.S. Probation Office and prosecuted by Assistant U.S. Attorney Sunny A.M. Koshy.
Prison Escapee Who Was Arrested in Kansas Sentenced on Firearm ChargeRead the Press Release
WICHITA KAN. – An escapee from an Oklahoma prison who was arrested with a gun in Kansas was sentenced Thursday to 53 months in federal prison, U.S. Attorney Barry Grissom said. The sentence will be served consecutively to his prison term in Oklahoma.
Lance D. Colbert, 40, who was an inmate at the Mack Alford Correctional Center in Stringtown, Okla., pleaded guilty to one count of unlawful possession of a firearm following a felony conviction.
On March 11, 2015, two days after escaping from the Oklahoma prison, Colbert was arrested in Spivey, Kan. (Kingman County). He had a .38 caliber Smith and Wesson revolver in his pants pocket.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Kansas Highway Patrol and Assistant U.S. Attorney Lanny Welch for their work on the case.
PoleZero Corporation Agrees to Pay $2.8 Million to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Department of Defense contractor PoleZero Corporation, owned by Dover Corporation since 2007, has agreed to pay the United States $2,800,000 to resolve allegations under the False Claims Act that the company caused false claims to be submitted to the Department of Air Force for communications equipment.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) - Mid-Atlantic Field Office; Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations; Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS), Washington Field Office.
Pole Zero is a subcontractor that provided radiofrequency filters (RF filters) and integrated co-site equipment (ICE) to the United States Air Force for use in its E-3 AWACS Aircraft program. The settlement agreement resolves allegations that from 2004-2013 Pole Zero knowingly provided RF filters and ICE equipment that failed to meet contractual specifications. PoleZero denies the allegations.
“Defense contractors are expected to ensure that the equipment they provide meets the expectations of the contract. The military needs to be able to depend on the quality of the products it purchases," said United States Attorney for the District of Maryland Rod J. Rosenstein.
“Getting what you pay for is something we all should expect,” said Robert Craig, Special Agent in Charge for the DCIS, Mid-Atlantic Field Office. “DCIS and its law enforcement partners remain steadfast in expecting contractors to adhere to agreements made with the government when providing products and services.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland (United States ex rel. Stoneham v. PoleZero Corporation, PoleZero Acquisition, Inc. and Dover Corporation, WDQ 12-392). As part of today’s resolution, the Relator will receive $504,000 from the settlement.
The settlement was a result of an investigation by the U.S. Attorney's Office for the District of Maryland, U.S. Department of Justice, DCIS, Air Force Office of Special Investigations, and NCIS. Mr. Rosenstein commended the Defense Contract Audit Agency for their assistance in the investigation. The investigation was handled by Assistant U.S. Attorneys Thomas H. Barnard and Thomas F. Corcoran and Senior Trial Counsel Dan Spiro from the Department of Justice.
Pittston Man Sentenced to 63 Months in Prison for Conspiracy to Distribute Bath SaltsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Alan Folweiler, age 22, of Pittston, Pennsylvania, was sentenced to 63 months’ imprisonment by United States District Court Judge Malachy E. Mannion for participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Peter Smith, Folweiler pleaded guilty in April 2015 to his involvement in the conspiracy which was responsible for distributing large quantities of alpha-pvp, a controlled substance analogue, to others during 2011 through 2013.
Folweiler was indicted by a federal grand jury in August 2014, following an investigation by Department of Homeland Security agents, the Pennsylvania State Police, and West Pittston Police.
Judge Mannion also ordered Folweiler to serve three years on supervised release following his prison sentence, and to pay a special assessment of $100.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
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Orlando Men Sentenced to More Than Thirteen Years for String of Armed RobberiesRead the Press Release
Orlando, FL – U.S. District Judge G. Kendall Sharp has sentenced three Orlando residents for robbery and using a firearm in furtherance of a crime of violence. Malcolm Jamal Ward (23), Stanley Valentin (20), and Javier Tyson Farrar (21) were each sentenced to 13 years and 6 months in federal prison. The Court also ordered them to pay $5,637.42 in restitution. Valentin and Farrar pleaded guilty on April 28, 2015. Ward pleaded guilty on May 4, 2015.
According to court documents, over the course of two weeks in October 2014, Ward, Valentin, and Farrar committed six armed robberies. One of the robberies occurred at a Red Lobster restaurant in Orlando as the employees were closing for the night. The five other robberies involved drugstores throughout Orange, Volusia, Osceola, and Polk Counties. In addition, Ward committed an additional armed robbery of a drugstore by himself during that same period.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, the Volusia County Sheriff’s Office, and the Polk County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
Navajo Woman Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Clara Beth Joe, 26, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pleaded guilty this morning in Albuquerque, N.M., to an involuntary manslaughter charge.
Joe was arrested on Aug. 27, 2014, on an indictment filed Aug. 12, 2014, charging her with involuntary manslaughter on Jan. 30, 2014, in San Juan County, N.M.
During today’s proceedings, Joe pled guilty to the indictment and admitted that on Jan. 31, 2014, she was found by law enforcement in Crystal, N.M., on the Navajo Indian Reservation, near a creek, heavily intoxicated and suffering from hypothermia. Joe admitted that her cousin also arrived at the scene and asked where Joe’s 13-month-old son was, and after a search by law enforcement, the boy was found drowned near where Joe had been found. Joe further admitted that her level of intoxication was a negligent act and was an important contributing factor in her son’s death.
At sentencing, Joe faces a statutory maximum penalty of eight years in federal prison followed by up to three years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case.
Navajo Man from Beclabito Sentenced to Federal Prison for Arson ConvictionRead the Press Release
ALBUQUERQUE – Benjamin Joe Begay, Jr., 45, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to a year and a day in prison followed by three years of supervised release for his arson conviction.
Begay was arrested on Aug. 19, 2014, on a criminal complaint charging him with arson, and was indicted on that same charge on Aug. 26, 2014. According to court filings, Begay set fire to the residence he shared with his wife and children on July 31, 2014, following an argument with his family. The residence, its contents and a grey truck were a total loss to the fire.
On March 31, 2015, Begay pled guilty and admitted willfully and maliciously setting fire to the home he shared with his wife and family on July 31, 2014, on the Navajo Indian Reservation in San Juan County, N.M.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI. The case was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Muskogee Man Sentenced to 57 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JORDAN WAYNE PARKS, age 24, of Muskogee, Oklahoma, was sentenced to 57 months imprisonment, followed by 3 years of supervised release for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The defendant was indicted in March, 2015 and pled guilty in April, 2015.
The Indictment alleged that on or about June 17, 2014, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Middlesex County, New Jersey, Man Sentenced to Five Years in Prison for Distributing Child Sex Abuse ImagesRead the Press Release
NEWARK, N.J. - An East Brunswick, New Jersey, man was sentenced today to 60 months in prison for sharing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Armia Alber, 29, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an indictment charging him with distributing images of child pornography over the Internet. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Alber admitted that between March and July 2013, he was a member of an online peer-to-peer file sharing network and had more than 600 images or videos of children being sexually abused. Alber also admitted he made images and videos of child pornography available for other members to download from his “shared” folder. During this period, a law enforcement agent successfully downloaded multiple images and videos of child sexual abuse from Alber’s computer.
On July 25, 2013, federal law enforcement agents executed a search warrant at Alber’s residence. The agents recovered two computer hard drives, both of which contained numerous images and videos of child pornography.
As part of his guilty plea, Alber agreed to forfeit the computers and computer accessories he used to commit the offense. He is also required to register as a sex offender.
In addition to the prison term, Judge Chesler sentenced Alber to serve five years of supervised release.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the sentencing. He also thanked the Middlesex County Prosecutor’s Office and the East Brunswick Police Department for their roles in the search and arrest.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., Newark
Miami Resident Sentenced in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A Miami resident was sentenced by U.S. District Court Judge Darrin P. Gayles for her participation in a stolen identity tax refund fraud scheme. Melissa Pearl Davis (“Davis,”) 32, was sentenced to 48 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $219,721.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (“IRS-CI”), made the announcement.
Davis and her co-defendant, Kiesha Adderly Mitchell (“Mitchell,”) 36, each previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. As part of their plea agreements, each defendant agreed to restitution in the amount of $219,721.
According to court documents, in 2009, the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFINs”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services. The defendants used those EFINs to submit false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority. After the tax returns were received by the IRS, various financial institutions would authorize the defendants to load onto debit cards refund anticipation loans in the names of tax payers whose names and Social Security numbers were used to file the false and fraudulent tax returns. The defendants then withdrew the unlawfully obtained tax proceeds from the debit cards for their personal use and enrichment. The total intended loss from the defendants’ false and fraudulent filings of unauthorized income tax returns was over $400,000.
A sentencing date has not been set for Mitchell.
Mr. Ferrer commended the investigative efforts of the South Florida Identity Theft Tax Fraud Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Federal Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Yareli Jasmin Bustamante-Conchas, 29, a Mexican citizen illegally residing in Albuquerque, N.M., was sentenced this afternoon in federal court to 60 months in prison for her federal heroin trafficking conviction. She will be deported after completing her prison sentence. Bustamante-Conchas also was ordered to forfeit $42,818.47 which were proceeds of her drug trafficking activities.
Bustamante-Conchas was arrested on a criminal complaint on Aug. 29, 2014, in Bernalillo County, N.M., after DEA agents seized approximately 745.4 grams of heroin, drug packaging materials and $42,818.47 in U.S. currency from Bustamante-Conchas’ residence during a consensual search.
Bustamante-Conchas was subsequently indicted on Sept. 23, 2014, and charged with possession of heroin with intent to distribute. The indictment included forfeiture provisions seeking an order requiring Bustamante-Conchas to forfeit $102,000.00 representing drug proceeds in addition to the $42,818.47 seized from her home on Aug. 29, 2014.
On March 24, 2015, Bustamante-Conchas pled guilty to the indictment and admitted that on Aug. 28, 2014, DEA agents seized 745.4 grams of heroin, $42,818.47 in cash and drug packaging materials from her home. Bustamante-Conchas also admitted that she was illegally present in the United States and had been making approximately $3,000.00 a week by distributing heroin since Dec. 2013.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Man Indicted for Kidnapping in FairbanksRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a two-count indictment against Michael Dewayne Bowen, Jr., 40, charging him with kidnapping two girls in North Pole, Alaska.
According to the Indictment, on August 1, 2015, Bowen willfully and unlawfully seized, confined, inveigled, decoyed, kidnapped, abducted, and carried away the two girls, ages 6 and 9 years old, using any means, facility and instrumentality of interstate and foreign commerce and transported them within the special jurisdiction of the United States.
The case was the product of an investigation by the Federal Bureau of Investigation and the North Pole Police Department. Assistant U.S. Attorney Audrey J. Renschen and U.S. Department of Justice Trial Attorney Jeffrey Zeeman are prosecuting the case.
If convicted of kidnapping, Bowen faces a minimum statutory penalty of 20 years, and up to life imprisonment, as to each count. Both counts also carry fines of up to $250,000, as well as the possibility of a life time period of supervised release following any sentence of imprisonment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to protect children from exploitation.