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20 August 2015
Kanawha County man sentenced to 97 months in prison for possessing child pornographyRead the Press Release
Charleston, W.Va. – A 58-year old Kanawha County man, Ronnie Eugene Naylor, was sentenced to 97 months in federal prison followed by 15 years of supervised release for possessing child pornography, United States Attorney Booth Goodwin announced. The sentence was handed down by United States District Judge John T. Copenhaver, Jr.
Naylor previously admitted that on April 10, 2014, he possessed over 600 images and videos of prepubescent minors engaged in sexual acts. The videos were stored on his personal computer located at his Elkview home. The investigation revealed that Naylor was using two peer-to-peer file sharing programs to share child pornography via the Internet. Some of the videos possessed by Mr. Naylor depict a prepubescent minor engaged in sadistic or masochistic conduct or other depictions of violence. “We will make every effort to ensure that our children are not the victims of such depravity” said Goodwin. “The sentence in this case reflects the seriousness of the offense, and society’s intolerance of victimizing children.”
The West Virginia State Police and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa G. Johnston was in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Kalamazoo Man, Jesus Emmanuel Lopez-Garcia, Sentenced for His Role in Counterfeit Identification Document RingRead the Press Release
The ring operated throughout Kent and Kalamazoo counties
GRAND RAPIDS, MICHIGAN — Jesus Emmanuel Lopez-Garcia, age 31, a citizen of Mexico who most recently resided illegally in Kalamazoo, Michigan, was sentenced to 36 months’ imprisonment today for his role in a counterfeit identification document ring. U.S. District Judge Robert Holmes Bell noted that the offense “undermined the authority of the United States” in imposing a sentence above the sentencing guidelines.
Between September, 2013, and March, 2015, Lopez-Garcia conspired with Jaime Velasco-Jimenez and Victor Hugo Quesada-Pacheco (also citizens of Mexico residing illegally in Kalamazoo), to produce and distribute counterfeit identification documents. Lopez-Garcia and Quesada-Pacheco solicited business from illegal aliens residing in Kent and Kalamazoo counties in need of counterfeit identification documents. Lopez-Garcia and Quesada-Pacheco provided the names, false social security account numbers, and other false biographical information for their customers to Velasco-Jimenez who then produced counterfeit driver’s licenses, state identification documents, social security account number cards, lawful permanent resident cards, and other false identification documents at his apartment in Kalamazoo. Lopez-Garcia and Quesada-Pacheco then delivered the counterfeit identification documents to their customers and collected a fee that was shared with Velasco-Jimenez. The ring produced well in excess of 100 sets of counterfeit identification documents during its operation.
“The U.S. is a nation where the rule of law governs,” said U.S. Attorney Patrick Miles. “Producing counterfeit identification documents for profit under the seal and purported authority of state and federal agencies is blatantly illegal and will be prosecuted to the fullest extent of the law.”
“Document fraud directly threatens national security and undermines the integrity of our nation’s immigration system,” said Marlon Miller, special agent in charge of HSI Detroit. “HSI will continue to aggressively target and dismantle criminal organizations as well as individuals who perpetrate these schemes.”
Lopez-Garcia now faces proceedings regarding his deportation from the United States and recently forfeited numerous electronic devices and $17,488.00 related to his crime. Velasco-Jimenez will be sentenced in federal court on September 11, 2015, and Quesada-Pacheco on September 17, 2015.
Assistant United States Attorney Ronald M. Stella is prosecuting the case. The investigation is being handled by the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations division in Grand Rapids.END
Jefferson City Man, El Paso Woman Plead Guilty to Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Ukrainian national in Jefferson City, Mo., and an El Paso, Texas, woman have pleaded guilty in federal court to their roles in a marriage fraud conspiracy so that he could remain in the United States.
Oleksandr Nikolayevich Druzenko, also known as “Alex,” 35, of Jefferson City, pleaded guilty today before U.S. Magistrate Judge Matt J. Whitworth. Co-defendant Patricia Anne Ewalt, 63, of El Paso, pleaded guilty to the same charge on Aug. 5, 2015.
Druzenko and Ewalt were married on June 22, 2007, in Jefferson City. Druzenko is a Ukrainian national who entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. He was employed at the Missouri Office of Administration in Jefferson City at the time of the Oct. 3, 2012, indictment.
In 2007, Druzenko’s student visa was expiring and he would soon have to leave the United States. After two failed attempts to persuade U.S. citizens to marry him so that he could remain in the country, Ewalt agreed to marry him.
Druzenko and Ewalt, along with co-defendants James Douglas Barding, 62, of Jefferson City, and Darya Chernova, 40, a citizen of Ukraine who currently resides in Chandler, Ariz., entered an agreement to unlawfully deceive the U.S. Citizenship and Immigration Service in matters regarding immigration and naturalization. According to today’s plea agreement, they conspired to arrange a fraudulent marriage between Druzenko and Ewalt so that he could remain in the United States in violation of the law.
Druzenko and Ewalt falsely claimed that they resided together, when, in fact, Druzenko and Ewalt did not live with each other. Druzenko and Ewalt each admitted that they knowingly submitted documents that were materially false and would serve to deceive the U.S. Citizenship and Immigration Service into believing Druzenko’s marriage to Ewalt was genuine. They also admitted that they submitted fraudulent documents so that Druzenko could achieve resident status in the United States.
Barding and Chernova have pleaded guilty to their roles in a marriage fraud conspiracy aimed at enabling Chernova, with whom Barding had a long-running affair, to remain in the United States and seek citizenship.
As a result of his fraudulent marriage to Ewalt, and the submission of false material statements to U.S. Citizenship and Immigration Service, Druzenko was allowed to remain in the United States and gained permanent resident status when in fact he should not have been allowed to remain in the country and did not lawfully qualify for any adjustment to status.
Under federal statutes, Druzenko and Ewalt are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
Today’s guilty plea may have consequences with respect to Druzenko’s immigration status because this is considered a removable offense. Removal and other immigration consequences are the subject of a separate proceeding; however, because Druzenko is pleading guilty to conspiracy to commit offenses against the United States, removal is presumptively mandatory.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Citizenship and Immigration Services and the Jefferson City, Mo., Police Department.
Investment Advisor Indicted for Defrauding Investors of More Than $1.2 MillionRead the Press Release
The United States Attorney’s Office for the District of Minnesota announced the indictment of DAVID BLAINE WELLIVER, 55, for defrauding investors in the Dblaine Fund, a mutual fund for which WELLIVER acted as investment adviser, of at least $1.2 million. The defendant is scheduled to make an initial appearance on September 3, 2015, in U.S. District Court in St. Paul, Minn.
According to the indictment, throughout most of 2010, the Dblaine Fund had only a small number of individual investors. In March 2010, in order to increase the Dblaine Fund’s net assets, WELLIVER entered into an agreement in which, in exchange for a payment of approximately $100,000 to another investment adviser, the Dblaine Fund would acquire the assets of two other mutual funds, the Bryce Capital Growth Fund and the Bryce Capital Value Fund (Bryce Funds).
According to the indictment, because WELLIVER’s investment advisory business had never generated substantial revenues, it lacked the capital to finance the merger between the Dblaine Fund and the Bryce Funds. As of June 30, 2010, WELLIVER’s investment advisory company, Dblaine Capital, had less than $200 in liquid assets. During the same time period, WELLIVER had less than $2,000 in his personal bank accounts, and WELLIVER personally owed millions of dollars in civil judgments, federal income taxes, and other debts. Through his company Dblaine Capital, WELLIVER borrowed money from Lazy Deuce Capital Company, LLC (Lazy Deuce), a limited liability company based in Burnsville, Minn., to finance the merger between the Dblaine Fund and the Bryce Funds. On or about December 8, 2010, WELLIVER used funds borrowed from Lazy Deuce to make a $95,000 payment to the Bryce Funds’ investment adviser, and thereafter the merger was completed. As a result of the merger, the Dblaine Fund’s assets under management increased from approximately $500,000 to over $9 million.
According to the indictment, as part of the scheme to defraud investors in the Dblaine Fund, WELLIVER, in 27 separate transactions between October 2010 and May 2011, borrowed a total of $4 million from Lazy Deuce. Aside from the $95,000 payment to acquire the assets of the Bryce Funds, WELLIVER did not use any of the other proceeds of the Lazy Deuce loans to acquire mutual funds as he had represented to Lazy Deuce. Instead, WELLIVER diverted over $500,000 in proceeds from the Lazy Deuce loans to his own personal use, including for landscaping and interior decorating at his personal residence, to purchase land adjacent to his personal residence, to buy a personal vehicle, and to pay for his son’s college tuition.
According to the indictment, in exchange for Lazy Deuce’s agreement to lend funds to Dblaine Capital, WELLIVER agreed to use his position as investment adviser to the Dblaine Fund to cause Dblaine Fund investors’ money to be invested back into Lazy Deuce. In exchange for Lazy Deuce’s agreement to lend funds to Dblaine Capital, WELLIVER agreed to invest money from the Dblaine Fund back in Lazy Deuce. However, in order to conceal the nature of this transaction from the Dblaine Fund’s investors, its Board of Trustees, and its other service providers, WELLIVER made these investments into a shell company formed by several Lazy Deuce principals, called Semita Partners LLC (Semita).
According to the indictment and documents filed in court, between December 16, 2010, and April 15, 2011, WELLIVER caused $1.725 million in Dblaine Fund investors’ money to be invested in Semita. At the time WELLIVER made the investments in Semita, he knew that Semita was a shell company formed by principals of Lazy Deuce – the same company from which Dblaine Capital had borrowed money – and that Semita had no operations. On December 31, 2010, in order to meet a series of redemptions in the Dblaine Fund, Welliver liquidated nearly all of the stocks held by the Dblaine Fund. Following this liquidation, the Dblaine Fund’s only holdings consisted of worthless Semita shares and cash held in a money market account.
This case is the result of an investigation conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Benjamin F. Langner.
Defendant Information:
DAVID BLAINE WELLIVER, 55
Buffalo, Minn.
Charges:
- Wire fraud, 5 counts
- Mail fraud, 4 counts
- Money laundering, 5 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Indictment Charges Six Defendants in Connection with 86 Stolen GunsRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Grover Crossland, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced today the unsealing of a two-count Indictment charging multiple defendants with the possession of firearms stolen from the Hunter’s Refuge sporting goods store in White Hall, Arkansas. An investigation into a series of burglaries at the shop resulted Thursday in the early-morning arrests of five defendants by the ATF along with the assistance of the Pine Bluff and White Hall police departments. Another defendant named in the Indictment remains in state custody on unrelated charges.
On Friday, August 21, 2015, at 2 p.m., five defendants will be arraigned by United States Magistrate Judge Joe J. Volpe. The remaining defendant will be arraigned on August 27, 2015. The case number is 4:15-cr-204-JM.
The ATF investigation revealed that a group of individuals forced entry into Hunter’s Refuge on December, 18, 2014, broke into a number of locked glass display cases, and stole 24 handguns. On January 8, 2015, a group of individuals again forced entry into Hunter’s Refuge and stole 62 more guns, including eight assault rifles. A number of the stolen guns have since been recovered.
The Indictment, returned by a Federal Grand Jury on August 5th, 2015, charges six defendants with two separate counts of possession of stolen firearms. Count One charges Sir Arthur Carrington-Fields, 19, with possession of one or more of the 24 firearms stolen from Hunter’s Refuge on December 18, 2015. Count Two charges Jakheeno Stewart, 19; Charles Moore Jr., 19; Rodderick Goins, 19; Raheem Wise, 19; Martel Donaldson, 19; and Carrington-Fields with possession of one or more of the 62 firearms stolen from Hunter’s Refuge on January 8, 2015. All defendants are residents of Pine Bluff, Arkansas. Possession of a stolen firearm is punishable by no more than 10 years of incarceration in the Bureau of Prisons, with a possible fine of up to $250,000, and not more than 3 years supervised release.
The investigation was conducted by the ATF, with assistance from several law enforcement agencies including the Pine Bluff Police Department and White Hall Police Department. The case is being prosecuted by Assistant United States Attorney Hunter Bridges.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Grand Jury Returns Indictment Charging Pair with Fraud, Money Laundering in Connection with Alleged Investment Fraud SchemeRead the Press Release
SALT LAKE CITY – A federal grand jury returned a 48-count indictment late Wednesday afternoon charging Wayne LeMar Palmer, age 60, and Julieann Martin, age 47, both of West Jordan, with wire fraud, mail fraud and money laundering in connection with an alleged investment fraud scheme that raised more than $140 million from more than 600 investors.
According to the indictment, Palmer established National Note of Utah (NNU) about Dec. 30, 1992. NNU was located in West Jordan. Palmer owned and operated NNU and made all business decisions, including decisions regarding the use of investor funds. Martin began working at NNU in about 1993. Among other duties, she functioned as a client relations manager, which allowed her to interact with many of NNU’s investors and gave her access to information about investors’ investments with NNU, the indictment alleges.
The indictment alleges NNU solicited and sold investments, generally in the form of fixed rate promissory notes at a rate of 12 percent per year. NNU purported to be in the business of purchasing existing real estate loans and funding new real estate loans. NNU supposedly used investor funds to purchase discounted mortgage notes and deeds of trust and to originate real estate loans at above-market rates. NNU engaged in a variety of other business activities during its existence in an effort to generate revenue, the indictment says, including acquiring and operating rental properties, developing properties it obtained through foreclosures, purchasing real estate for development, buying and operating a mint, and seeking to extract precious metals from previously processed mine tailings.
The indictment alleges Palmer and Martin recruited and retained investors using fraudulent and misleading statements. According to the indictment, Palmer traveled around the country to recruit individuals and entities to invest in NNU. Martin also had contact with potential and existing investors over the phone, in person, and by email communications. For some investors, Martin was their only contact with NNU.
The indictment alleges Palmer and Martin solicited investors with false and fraudulent statements, which included among others, that the investments were safe and guaranteed; NNU was profitable and generated sufficient income from its business operations to pay investors a 12 percent annual return; NNU’s business activities were generating 18 percent or more per year; investments in NNU were secured by real estate assets which exceeded NNU’s investor liabilities; and that NNU had a perfect payment record and had never been late on a single investor payment.
According to the indictment, Palmer and Martin did not tell investors that new investor funds were being used to make payments to older investors and to pay NNU operating expenses. They also were used to pay Palmer’s personal expenses, the indictment alleges.
They also did not tell investors that the vast majority of NNU investments were with affiliated entities Palmer controlled, rather than arms-length investments with third parties. They also did not disclose, among other things, that beginning around 2007, NNU and its affiliates had, on aggregate, reported net losses and negative equity every year and that NNU had insufficient operating revenues to pay investors and operating expenses.
Between 1995 and 2012, according to the indictment, Palmer and Martin raised more than $140 million from more than 600 investors. Many investors, the indictment alleges, lost all or part of their money invested in NNU. Some of the investors utilized self-directed retirement funds to make their investments. When investors complained about late or missing payments, Palmer and Martin typically did not disclose the true state of affairs at NNU but told investors to be patient and payments would be forthcoming.
The indictment includes 14 counts of wire fraud. Palmer is charged in each of the 14 counts and Martin is charged in 11 counts. Palmer is charged in all 17 counts of mail fraud included in the indictment and Martin is charged in nine counts. They are both charged in 17 counts of money laundering in the indictment.
The defendants will receive a summons to appear in federal court for an initial appearance on the charges. The potential maximum penalty for each count of wire and mail fraud is 20 years in prison. The money laundering counts in the indictment carry potential maximum sentences of 10 years in prison.
An indictment is not a finding of guilty. Individuals charged in indictments are presumed innocent unless or until proven guilty in a court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah. Special agents of the FBI and IRS Criminal Investigation are investigating the case. The U.S. Department of Labor, Employee Benefits Security Administration has also contributed to the investigation.
Fourteen Individuals Charged with Conspiracy to Commit Marriage Fraud and Related Immigration Fraud ChargesRead the Press Release
Fourteen individuals have been charged by federal indictment with conspiracy to commit marriage fraud and related immigration fraud charges.
Wifredo A. Ferrer, United States 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), and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS) made the announcement.
Odalys Marrero, 51, of Kendall, Rolando Mulet, 62, of Kendall, Katiusca Elena Aguilar Navarro, 28, of Doral, Carlos Alberto Mederos Paule, 46, of Miami, Manuel Andres Gomez, 46, of Wilton Manors, Virginia De La Caridad Mederos Paule, 57, of Miami, Elisabet Kerese Alvarez, 38, of Aventura, Osvaldo Lastre Duran, 48, of Sweetwater, Natacha Perera, 44, of North Miami, Javier Manejias, 51, of Antioch, TN, Marianelly Auxiliado Rodriguez, 48, of Doral, Rafael Abreu Gonzalez, 46, of Hialeah, Okyvi Olmar Yoll Mesa, 35, of Doral, and Salvador L Cabanas, 44, of Kendall, have been charged by federal indictment with conspiracy to commit marriage fraud and related immigration fraud charges.
According to the indictment, between December 2009 and July 2014, organizers, Marrero and Mulet recruited Cuban citizens eligible for lawful permanent residence under the Cuban Adjustment Act to enter into fraudulent marriages with aliens for the purpose of evading the immigration laws of the United States. Marrero and Mulet charged the aliens a fee to arrange the fraudulent marriages, notarized the fraudulent marriage licenses, completed the necessary immigration paperwork, and prepared the co-conspirators for their interviews with United States Citizenship and Immigration Services. Aliens Aguilar Navarro, Andres Gomez, Kerese Alvarez, Perera, Auxiliado Rodriguez, and Yoll Mesa, all paid a fee to enter into fraudulent marriages with Alberto Mederos Paule, Virginia De la Caridad Mederos Paule, Lastre Duran, Manejias, Abreu Gonzalez, and Cabanas. These fraudulent marriages took place in the Southern District of Florida.
U.S. Attorney Ferrer stated, “Immigration fraud is a serious crime that undermines our nation’s immigration system and can pose a risk to our security. Our Office will continue to work with our law enforcement partners to investigate these crimes and prosecute those individuals who seek to perpetrate fraudulent immigration schemes.”
"These arrests serve as a reminder that America's legal immigration system is not for sale," said Alysa D. Erichs, special agent in charge of ICE-HSI in Miami. "HSI will not tolerate the exploitation of our country's immigration system. We will work aggressively to investigate and bring to justice those who seek to compromise the integrity of that system for personal profit or to evade immigration laws."
“USCIS has no tolerance for immigration fraud,” said Linda Swacina, Director for the USCIS Miami District. “Anyone tempted to take advantage of America’s hospitality needs to understand that USCIS is committed to ensuring the integrity of our nation’s immigration system and along with our law enforcement partners will prosecute those committing fraud to the fullest extent of the law.”
Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS, who provided significant and valuable support to this investigation.
The case is being prosecuted by Assistant United States Attorney Robert Emery.
An indictment is only an accusation, and the defendants are presumed innocent 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.
Four Former Shelby County Jailers Plead Guilty to Attempted Possession of a Controlled SubstanceRead the Press Release
Memphis, TN – Four former Shelby County Corrections Deputies have all pled guilty to attempting to smuggle and distribute OxyContin inside a correctional facility. The pleas were announced by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
According to the indictments, the four defendants – Torriano Vaughn, Brian Grammer, Anthony Thomas, and Marcus Green – all participated in a scheme to smuggle what they thought were OxyContin pills inside of the Shelby County Jail on multiple occasions between May and December 2014.
After inmates informed law enforcement officers of the defendants’ illicit conduct, an undercover investigation was initiated. The investigation involved law enforcement agents posing as associates of cooperating inmates. These inmates would make arrangements with the jailers to have various amounts of OxyContin pills smuggled into jail in exchange for hundreds of dollars.
The undercover agents posing as associates of the inmates met with each jailer at various locations in the city. Three undercover transactions were conducted with each defendant. During these transactions, the agents provided the defendants with several hundred dollars and varying amounts of pills, which were presumed to be OxyContin. In actuality, the pills were "placebos," a pill or substance that has no therapeutic effect. After each transaction, the defendants would smuggle the presumed OxyContin pills into the jail and provide them to cooperating inmates. All of the placebos provided to the jailers were ultimately recovered by law enforcement agents.
All four defendants have pled guilty to attempted possession of a controlled substance with the intent to distribute.
They each face up to 20 years imprisonment when convicted. Each defendant also faces up to a $1 million fine.
Thomas is scheduled to be sentenced on Friday, October 9th at 9:30 a.m. by Judge John T. Fowlkes Jr.
Green is scheduled to be sentenced on Friday, October 23rd at 11 a.m. by Judge Jon Phipps McCalla.
Grammer is scheduled to be sentenced on Tuesday, November 3rd at 9:30 a.m. by Judge Jon Phipps McCalla.
Vaughn is scheduled to be sentenced on Friday, November 6th, at 9:30 a.m. by Judge Sheryl H. Lipman.
The case was investigated by the Tarnished Badge Task Force. The collective is comprised of: the Federal Bureau of Investigation, Shelby County Sheriff’s Department, and Memphis Police Department.
Assistant U.S. Attorney Brian K. Coleman is prosecuting the case on behalf of the government.
Fort Dodge Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced August 19, 2015, to five years in federal prison.
Jeffery Wear, 51, from Fort Dodge, Iowa, received the prison term after a May 6, 2015, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Wear admitted that from about 2012 through December 2014, he conspired to distribute more than 150 grams of actual (pure) methamphetamine. On December 2, 2014, in Audubon County, Iowa, law enforcement conducted a traffic stop of a vehicle driven by Wear. Law enforcement officers seized approximately ½ pound of methamphetamine from Wear’s vehicle.
Wear was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Wear was sentenced to 60 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Wear is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Audubon County Sheriff’s Office, Fort Dodge Police Department, Webster County Sheriff’s Office, and the Iowa Division of Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3067.
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Former Redflex CEO Pleads Guilty to Corruption in Awarding of City of Chicago’s Red-Light Camera ContractsRead the Press Release
CHICAGO — The former chief executive officer of Chicago’s first red-light camera vendor pleaded guilty to a federal bribery charge Thursday.
As the CEO of Redflex Traffic Systems Inc., KAREN FINLEY funneled cash and other personal financial benefits to a City of Chicago official and his friend, knowing that the payments would help persuade the city to award red-light camera contracts to Redflex, according to a plea agreement. The benefits included golf trips, hotels and meals, as well as hiring the city official’s friend as a highly compensated contractor for Redflex, according to the plea agreement.
The benefits flowed over a nine-year period, from 2003 to 2011, during which time the city expanded the Digital Automated Red Light Enforcement Program by awarding millions of dollars in contracts to Phoenix-based Redflex, the plea agreement states.
Finley, 55, of Cave Creek, Ariz., pleaded guilty to one count of conspiracy to commit bribery in a federal program. U.S. District Judge Virginia Kendall scheduled a sentencing hearing for Feb. 18, 2016. Finley faces a maximum sentence of 5 years in prison, a maximum fine of $250,000 or twice the gross gain or gross loss from the offense, and mandatory restitution.
The guilty plea 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; Joseph M. Ferguson, Inspector General for the City of Chicago; and Stephen Boyd, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
According to the plea agreement, Redflex first began competing for the Chicago contract in early 2003, while Finley was then Redflex’s vice president of operations. In the course of the competition, Finley learned that John Bills, who was then an assistant Chicago transportation commissioner in charge of the city’s red-light camera program, was championing Redflex by providing pointers and inside information to Redflex, the plea agreement states.
After Redflex was awarded its first Chicago contract in approximately late May 2003, Finley hired Bills’ friend Martin O’Malley as a contractor for Redflex, in an effort to ensure that Bills would continue to provide assistance to Redflex in future contract negotiations with the city. Finley admitted in the plea agreement that she knew O’Malley was a friend of Bills and that it was important to Bills that Redflex hire him. Finley personally signed O’Malley’s contract, which included provisions for lucrative increases in O’Malley’s compensation as new red-light cameras were added, according to the plea agreement.
After Finley became CEO of Redflex in 2007, O’Malley’s commissions escalated and Bills continued to assist the company, including having at least one red-light contract “sole-sourced” to Redflex, the plea agreement states. Finley states in the plea agreement that she knew Redflex was also paying personal expenses for Bills in order to buy his influence and expand Redflex’s business with the city. These expenses included meals, golf outings, rental cars, airline tickets to Phoenix, rooms at the Biltmore Hotel and other entertainment, according to the plea agreement.
Redflex’s technology uses cameras to automatically record and ticket drivers who run red lights. Between 2004 and 2008, the city paid Redflex approximately $25 million, according to the indictment against Finley, Bills and O’Malley. Bills was a voting member of the city’s Request For Proposal evaluation committee that recommended awarding the contracts to Redflex, the indictment states. In February 2008, the city awarded the “sole-sourced” contract to Redflex, paying the company approximately $33 million, according to the indictment. The city followed up that contract with another one the same month – agreeing to pay Redflex approximately $66 million for the installation of nearly 250 additional red-light cameras.
Bills, 54, of Chicago, was indicted on nine counts of mail fraud, three counts of wire fraud, three counts of federal program bribery, three counts of filing a false federal income tax return, and one count each of extortion and conspiracy to commit federal program bribery. He has pleaded not guilty and is scheduled to proceed to trial on Jan. 11, 2016, before Judge Kendall. Bills retired from the city in 2011.
O’Malley, 74, of Worth, pleaded guilty in December to one count of conspiracy to commit bribery in a federal program. No sentencing date has been set.
The government is represented by Assistant United States Attorney Laurie J. Barsella.
Plea Agreement
Former President of the Park Avenue Bank Sentenced to 30 Months in Prison for Role in Fraud of Government Relief Funds, Self-Dealing, Bank Bribery, Embezzlement of Bank Funds, and Fraud Involving an Insurance CompanyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHARLES ANTONUCCI, SR., the former president and chief executive officer of The Park Avenue Bank, was sentenced today to 30 months in prison for his involvement in a massive fraud involving self-dealing, bank bribery, embezzlement of bank funds, attempting to fraudulently obtain more than $11 million worth of taxpayer rescue funds from the Troubled Asset Relief Program (“TARP”), and participating in a $37.5 million fraud scheme that left an Oklahoma insurance company in receivership. ANTONUCCI pled guilty pursuant to a cooperation agreement with the government in October 2010 before U.S. District Judge Naomi Reice Buchwald, who imposed today’s sentence. Yesterday, Judge Buchwald sentenced Matthew L. Morris, a former senior vice president of the Bank, who also pled guilty pursuant to a cooperation agreement, to one year and one day in prison.
ANTONUCCI was the first defendant convicted of fraud of TARP funds, a program whose purpose was to provide funds to viable financial institutions to stabilize and strengthen the nation’s financial system, and to enable those financial institutions to increase the flow of financing to U.S. businesses and consumers.
According to the Information, Complaint, sentencing submissions, and statements made during court proceedings:
Background
The Park Avenue Bank (the “Bank”) was a federally insured and state-chartered bank that was headquartered on Park Avenue, New York, New York. The Bank’s clients consisted primarily of small businesses, for which the Bank made loans, extended lines of credit, and maintained depository accounts. As of the end of 2009, the Bank had approximately $500 million on deposit, and over $520 million in assets. ANTONUCCI served as president and chief executive officer (“CEO”) of the Bank from June 2004 to October 2009, and also served on its Board of Directors. During this period, and as part of the fraudulent schemes for which he was convicted and sentenced, ANTONUCCI maintained a corrupt relationship with Wilber Anthony Huff, a Kentucky-based businessman, and Morris, the senior vice president of the Bank.
The Schemes
From 2006 through 2010, ANTONUCCI, Morris, and Huff engaged in a massive multifaceted conspiracy, in which they schemed to (i) receive and pay bank bribes, (ii) engage in self-dealing; (iii) defraud bank regulators and the board and shareholders of a publicly traded company, and (iv) fraudulently purchase an Oklahoma insurance company.
Bank Bribery
From 2007 to 2009, Huff paid ANTONUCCI and Morris at least $400,000 in exchange for which they: (i) provided Huff with fraudulent letters of credit obligating the Bank to pay an investor in one of Huff’s businesses $1.75 million if Huff failed to pay the investor back himself; (ii) allowed certain of Huff’s beneficially owned businesses to accrue $9 million in overdrafts; (iii) facilitated intra bank transfers in furtherance of certain of Huff’s other frauds; and (iv) fraudulently caused the Bank to issue at least $4.5 million in loans to Huff’s beneficially owned businesses.
In particular, ANTONUCCI and Morris accepted bribes from Huff, including but not limited to hundreds of thousands of dollars of cash bribes, free use of Huff’s airplane, and free use of another customer’s luxury automobile. On more than 10 occasions in 2008 and 2009, ANTONUCCI used a private plane owned by Huff to fly to, among other places, Florida, Panama, Arizona (so that ANTONUCCI could attend the Super Bowl), and Augusta, Georgia (so that ANTONUCCI could attend the Masters Golf Tournament).
Self-Dealing
ANTONUCCI also engaged in a pattern of self-dealing in connection with his position as President and CEO of the Bank. For example, ANTONUCCI, among other things, approved a $400,000 loan through the Bank to an entity he controlled called Easy Wealth, through which ANTONUCCI obtained tens of thousands of dollars in proceeds. ANTONUCCI also had the Bank pay rent to him for one or more properties that ANTONUCCI owned and which the Bank did not use, including a property in Fishkill, New York, and directed Bank employees to perform substantial work on non-Bank matters in which he had personal financial interests.
Fraud on Bank Regulators and a Publicly Traded Company
From 2008 to 2009, ANTONUCCI, Morris, and Huff engaged in a scheme to prevent the Bank from being designated as “undercapitalized” by regulators – a designation that would prohibit the Bank from engaging in certain types of banking transactions, and that would subject the Bank to a range of potential enforcement actions by regulators. Specifically, they engaged in a series of deceptive, “round-trip” financial transactions to make it appear that ANTONUCCI had infused the Bank with $6.5 million in new capital when, in actuality, the $6.5 million was part of the Bank’s pre-existing capital. ANTONUCCI, Morris, and Huff funneled the $6.5 million from the Bank through accounts controlled by Huff to ANTONUCCI. This was done to make it appear as though ANTONUCCI was helping to stabilize the Bank’s capitalization problem, so the Bank could continue engaging in certain banking transactions that it would otherwise have been prohibited from doing, and to put the Bank in a better posture to receive $11 million from the TARP. To conceal their unlawful financial maneuvering, Huff created, or directed the creation of, documents falsely suggesting that ANTONUCCI had earned the $6.5 million through a transaction involving another company ANTONUCCI owned. When the Bank’s regulators began investigating the source of the purported $6.5 million capital infusion, ANTONUCCI lied to them about the true nature of the transaction. ANTONUCCI, Morris, and Huff further concealed their scheme by stealing $2.3 million from General Employment Enterprises, Inc. (“GEE”), a publicly traded temporary staffing company, in order to pay the Bank back for monies used in connection with the $6.5 million transaction. In order to conceal this transaction, ANTONUCCI caused a counterfeit certificate of deposit (“CD”) to be created by the Bank, making it appear that GEE’s $2.3 million had been invested in a CD at the Bank.
Fraud on Insurance Regulators and the Investment Firm
From July 2008 to November 2009, ANTONUCCI, Morris, Huff, and Allen Reichman, an employee at an investment bank and financial services company headquartered in New York, New York (the “Investment Firm”), conspired to (i) defraud Oklahoma insurance regulators into allowing ANTONUCCI to purchase the assets of Providence P&C (the Oklahoma insurance company), and (ii) defraud the Investment Firm into providing a $30 million loan to finance the purchase. Specifically, ANTONUCCI and Huff devised a scheme in which ANTONUCCI would purchase Providence P&C’s assets by obtaining a $30 million loan from the Investment Firm, which used Providence P&C’s own assets as collateral for the loan. However, because Oklahoma insurance regulators had to approve any sale of Providence P&C, and because Oklahoma law forbade the use of Providence P&C’s assets as collateral for such a loan, ANTONUCCI, Morris, Huff, and Reichman made, and conspired to make, a number of material misstatements and material omissions to the Investment Firm and Oklahoma insurance regulators concerning the true nature of the financing for ANTONUCCI’s purchase of Providence P&C. Among other things, Reichman directed ANTONUCCI to sign a letter that provided false information regarding the collateral that would be used for the loan, and ANTONUCCI, Morris, and Huff conspired to falsely represent to Oklahoma insurance regulators that the Bank – not the Investment Firm – was funding the purchase of Providence P&C.
After deceiving Oklahoma regulators into approving the sale of Providence P&C, Huff took $4 million of the company’s assets. Ultimately, in November 2009, the insurance company became insolvent and was placed in receivership after ANTONUCCI, Morris, and Huff had pilfered its remaining assets.
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In addition to the prison sentence, ANTONUCCI, 64, of Woodside, New York, was also ordered to forfeit $11.2 million to the United States and to provide more than $54 million in restitution to victims of his crimes, including, among others, the Federal Deposit Insurance Corporation (“FDIC”).
Huff, who pled guilty to his role in the above-described offense and other interrelated frauds in December 2014, was sentenced by Judge Buchwald on June 4, 2015, to 12 years in prison. Reichman, who pled guilty to his role in the Providence P&C scheme in February 2015, was sentenced by Judge Buchwald on July 15, 2015, to 21 months in prison.
Mr. Bharara praised the investigative work of the Special Inspector General for the Troubled Asset Relief Program, the Federal Bureau of Investigation, the IRS, the New York State Department of Financial Services, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Office of Inspector General of the FDIC. Mr. Bharara also thanked the Department of Justice’s Tax Division and the United States Attorney’s Office for the Southern District of Florida for their assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Janis Echenberg and Daniel Tehrani are in charge of the criminal case.
Former Oklahoma State Senator Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
TULSA, Okla.—Former Oklahoma State Senator Ricky L. Brinkley pleaded guilty today to fraudulently obtaining over $1.2 million dollars from the Better Business Bureau (“BBB”) and subscribing to a false tax return.
United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma; FBI Special Agent in Charge Scott L. Cruse of the Oklahoma City Division; IRS-Criminal Investigation Acting Special Agent in Charge Madie Branch of the Dallas Field Office; and Director Stan Florence of the Oklahoma State Bureau of Investigation made the announcement.
Brinkley, 54, of Owasso, Oklahoma, pleaded guilty before U.S. District Court Judge Claire V. Eagan to five-counts of wire fraud and one-count of subscribing to a false tax return. Sentencing is scheduled on November 20, 2015. Brinkley represented the 34th District, including Owasso, Collinsville, Skiatook, Sperry, Turley, and Tulsa.
From August 2, 1999 to April 26, 2015, Brinkley served as the President and Chief Executive Officer and then the Chief Operations Officer of the Better Business Bureau (BBB). During his employment, Brinkley was responsible for the operation, accounting, and financial management including paying bills and signing checks on behalf of the BBB.
According to admissions made in connection with his guilty plea, from November 2005 to February 2015, Brinkley diverted in excess of $1.2 million dollars from the BBB through the creation of fraudulent invoices for services not rendered, and improperly represented these invoices as reimbursement for legitimate BBB expenses. He also admitted that he fraudulently signed checks, transferred, used, and disbursed BBB funds to pay personal expenses and debts including mortgage payments, expenses for pool cleaning services at his home, and his personal American Express, Discover, and Visa cards. Brinkley further admitted that he used BBB’s credit card to make cash withdrawals at automated teller machines located within casinos to support his gambling habit and that he would also create and process for payment false invoices using BBB’s funds for payment. The United States believes the loss amount is closer to $1.8 million. Final loss and restitution amounts will be determined prior to sentencing.
In addition to the fraudulent diversion of funds from the BBB, Brinkley admitted that he failed to report the monies and funds on his federal tax return and that he subscribed a false tax return for tax year 2013 by failing to report approximately $148,390 in income.
United States Attorney Williams stated that, “non-profit organizations such as the BBB provide the community with resources to make informed decisions in the marketplace. The BBB’s vision is ‘an ethical marketplace where buyers and sellers trust each other.’ Brinkley has abused the trust of the BBB board, its business members, marketplace consumers, and the trust the public has placed in him. BBB has worked with federal and state agencies by identifying the diverted funds. I hope this investigation and conviction is a step towards strengthening the trust of BBB members and consumers, and will allow BBB to continue to provide valuable services to the community.”
FBI Special Agent in Charge Cruse stated that, “criminal investigations against those holding positions of public trust are never easy, but they are among some of the most important cases that we do in the FBI. That is because we hold our public servants to a higher standard. Our citizens expect their public servants to uphold the law in all aspects of their lives, whether it be in connection with their public responsibilities or in their personal endeavors. The FBI, along with our law enforcement partners, will continue to aggressively target those entrusted by organizations to manage their funds who choose to exploit this trust for their personal gain.”
IRS-CI Acting Special Agent in Charge Branch stated that, “although the BBB emphasizes high ethical standards, honesty, and legal compliance for themselves and their business partners, Mr. Brinkley chose to violate each of these tenets by conducting himself in a financially irresponsible manner. Filing a false income tax return is totally unfair to those American citizens who file accurate tax returns, and is inconsistent with his background as a public servant. However, the public can be confident in the fact that IRS-Criminal Investigation pursues justice on their behalf in seeking prosecution of anyone, regardless of status, who violates the tax laws.”
"Late last year, OSBI developed information indicating potential crimes were committed from within the Tulsa BBB. Once OSBI opened a criminal investigation at the request of Tulsa County D.A. Steve Kunzweiler, it became apparent federal laws may also have been broken. OSBI appreciates the FBI and IRS's willingness to work with OSBI agents to ensure justice, both on the federal and state levels, is served," OSBI Director Stan Florence said.
Brinkley faces a maximum penalty of 20 years in prison and a $250,000 fine, or twice the pecuniary gain/loss caused by the defendant’s acts for the wire fraud charges; and the maximum penalty is three years in prison and a $250,000 fine for the filing of a false tax return. Brinkley has also agreed to the forfeiture of funds in the amount of $1,829,033.86 representing proceeds of the wire fraud scheme.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Oklahoma State Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Clinton J. Johnson, Clemon Ashley, Shannon Cozzoni, and Catherine Depew.
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Former Florida Highway Patrol Trooper Sentenced for Taking BribesRead the Press Release
Kirk Chambers, a former Trooper with the Florida Highway Patrol (FHP), was sentenced today before U.S. District Court Judge Cecilia Altonaga for his participation in a bribery scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, made the announcement.
On August 20, 2015, U.S. District Court Judge Cecilia Altonaga sentenced former FHP Trooper Kirk Chambers to 51 months’ imprisonment. Chambers had previously pleaded guilty to violation of 18 U.S.C. § 1951(a), that is, participating in a conspiracy to affect commerce through extortion under color of law. Chambers’ co-conspirator in the offense, Guillermo “Tony” Sepulveda was previously sentenced by Judge Altonaga to 37 months imprisonment on August 4, 2015.
According to the facts set forth in court documents, Chambers was employed as a sworn FHP Trooper between 2006 and 2015. In 2013, the FBI and local law enforcement agencies opened an investigation into allegations that South Florida law enforcement personnel were being paid bribes by local wrecker operators to illegally solicit business from stranded drivers at accident scenes. Chambers was one of the officers identified as taking bribes.
In 2014, an FBI confidential source (CHS) approached Guillermo “Tony” Sepulveda, the owner and operator of a local Miami based towing company. Under FBI direction, the CHS told Sepulveda that he had a corrupt “chiropractor” that was interested in purchasing confidential accident information from law enforcement in order to permit the chiropractor to illegally solicit business from the accident victims. Sepulveda agreed to participate and introduced the CHS to Trooper Chambers.
Between September and November 2014, Chambers used his position to download the personal information of approximately 100 accident victims from FHP servers. Chambers provided that information to the CHS in return for $5,000, during a series of transactions. For his part in the conspiracy, Sepulveda was paid $1,200.
On January 22, 2015, Chambers was interviewed by the FBI and admitted participating in the bribery scheme. Chambers also admitted being paid thousands of dollars in bribes by various tow truck operators for a number of years.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force, Florida Division of Insurance Fraud and the Florida Highway Patrol. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
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.
Florida Man Sentenced to 84 Months for Role in Conspiracy to Distribute HeroinRead the Press Release
LEXINGTON - A Florida man, who supplied a network of drug traffickers in Mt. Sterling, Ky., with heroin, has been sentenced to 84 months in federal prison.
On Wednesday, U.S. District Judge Danny C. Reeves sentenced 33 year-old Alvin Jason Givens for conspiracy to distribute at least 100 grams of heroin. Under federal law, Givens must serve at least 85 percent of his prison sentence. Givens is the last of 11 defendants involved in the conspiracy to be sentenced. The leader of the Mt. Sterling drug trafficking organization, Jeffrey Wingate, was sentenced earlier this year to 150 months in federal prison.
According to Givens’ plea agreement, from September 2013 until June 2014, Givens supplied Wingate with heroin, as well as oxycodone pills, to bring back to Kentucky and distribute. During the conspiracy, Wingate made several trips to Florida to acquire both oxycodone pills and heroin. In addition to the heroin, Givens was also responsible for the illegal distribution of 20,000 oxycodone pills, which was considered in determining his sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, FBI; Rodney C. Brewer, Commissioner, Kentucky State Police; David Charles, Chief, Mt. Sterling Police Department; and Fred Shortridge, Montgomery County Sheriff, jointly made the announcement today.
The investigation was conducted by the FBI, Kentucky State Police, the Mt. Sterling Police Department and the Montgomery County Sheriff’s Office. Assistant U.S. Attorney Robert M. Duncan Jr. prosecuted this case on behalf of the federal government.
Five North Shore Individuals Charged with Oxycodone DistributionRead the Press Release
BOSTON – Five individuals were charged in U.S. District Court in Boston with distributing oxycodone throughout the North Shore.
Joseph Romano, 38, of Peabody; Anthony Panarese, 35 of Peabody; Paul Williams, 51, of Malden; David Turner, Sr., 55, of Peabody; and Ashley Turner, 26, of Peabody, where arrested this morning and charged with one count of conspiracy to possess with intent to distribute and distribution of oxycodone, a highly-addictive controlled substance used to treat severe pain.
According to the criminal complaint, since March 2014, the defendants conspired to distribute oxycodone. Physical and court-authorized electronic surveillance (i.e., wiretaps and GPS tracking devices) were used to establish that Panarese and Williams were supplying Romano with oxycodone nearly every week. David Turner, Sr. and Ashley Turner were oxycodone pill customers of Romano who also redistributed oxycodone pills supplied by Romano or one of Ramono’s suppliers, such as Williams, to “street” oxycodone users. During the investigation, law enforcement officers completed controlled purchases and seized approximately 950 oxycodone pills from the defendants.
The charging statute provides for a sentence of no greater than 20 years in prison, a lifetime 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Office; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Peabody Police Chief Thomas M. Griffin; and Danvers Police Chief Patrick Ambrose, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. López and James E. Arnold of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Felon in Possession of Firearm Receives Prison TermRead the Press Release
A man who unlawfully possessed a firearm was sentenced August 19, 2015, to nearly four years in federal prison.
Dustin Dimmick, 26, from Tucson, Arizona, received the prison term after an April 23, 2015, guilty plea to felon in possession of a firearm. Dimmick was previously convicted of possession of a controlled substance, a felony, in the Fall River County District Court for South Dakota, on or about April 20, 2012.
At the guilty plea, Dimmick admitted that in 2013, he and others traded and/or bought/sold guns with other persons. On or about December 11, 2013, in Swea City (Kossuth County), Iowa, Dimmick and other persons participated in the burglary of a residence. During this burglary, or shortly thereafter, Dimmick took possession of at least two firearms, two mini dirt bikes and several pool cues. Sometime shortly after December 11, 2013, in Rolfe (Palo Alto County) Iowa, Dimmick sold and/or traded several items of property to another person, including one of the stolen mini bikes, and two stolen firearms, namely, a JGA .22 caliber rifle, Model Karabiner, serial number 520404; and a 9mm Browning handgun, Model Herstal Belgique, serial number 51905.
Dimmick was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Dimmick was sentenced to 46 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Dimmick is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Kossuth County Sheriff’s Office, the Palo Alto County Sheriff’s Office, and the Bureau of Alcohol, Tobacco and Firearms (ATF).
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-3041.
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Eight Area People Sentenced on Fraud Charges Involving Motor Vehicle TitlesRead the Press Release
St. Louis, MO – RANDALL HINTON was the leader of a scheme to alter and counterfeit documents in order to obtain state issued motor vehicle titles for himself and others, and to obtain loans secured by motor vehicle titles. Hinton, of St. Louis, Missouri, was sentenced on August 11 to 136 months in prison; co-defendant JUSTIN CARTER, also of St. Louis, Missouri, was sentenced yesterday afternoon to 60 months in prison. Six other co-defendants have been sentenced earlier this summer to sentences ranging from five years of probation to 37 months in prison.
According to court documents, the schemes involving the defendants resulted in financial losses to the State of Missouri, financial institutions, title loan companies and individuals. As the documents were often altered to decrease the value of the vehicles or to change the state of residence of the vehicle owners to addresses in Illinois, the owners of the vehicles were able to evade paying the appropriate taxes and license fees to the Department of Revenue for the State of Missouri. When Hinton removed the names of financial institutions which had financed the purchases of the vehicles from legitimate titles, Hinton and others were able to sell the vehicles to innocent purchasers, who were then unable to register the vehicles due to existing liens.
The final aspect of the scheme enabled individuals to use the altered documents to obtain motor vehicle title loans from companies located throughout the United States. As a result of existing liens or the fact that the value of the vehicles was less than the defendants represented, the title loan companies experienced large financial losses. Due to the removal of the names of the true lienholders for the documents, government analysts were only able to identify actual losses, which exceeded $311,000. However, due to the number of vehicles that the government was able to identify as being used in the fraudulent scheme, the loss estimate was as high as $1,000,000.
This case was investigated by the United States Postal Inspection Service, the State of Missouri Department of Revenue, the State of Illinois Secretary of State and the St. Louis Metropolitan Police Department. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney's Office.
Defendants Sentenced for Roles in Marijuana Distribution ConspiracyRead the Press Release
ABILENE, Texas — All six defendants who were convicted for their respective roles in a marijuana distribution conspiracy have been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Fabricio Abelardo Perez, 43, of Abilene, Texas, was sentenced by Chief U.S. District Judge Jorge A. Solis to 156 months in federal prison. Earlier this week, Judge Solis sentenced Daniel Longoria, 49, also of Abilene, to 360 months in federal prison. Perez pleaded guilty to his role in the conspiracy and Longoria was convicted at trial in February 2015.
In June 2015, Judge Solis sentenced Abilene residents Jose Cavazos, 52, to 108 months in federal prison; Travis Kyndall Longoria, 23, to 120 months in federal prison; and David Rodriguez, 26, to 30 months in federal prison. Brandon Johnson, 36, of Sweetwater, Texas, was sentenced to 90 months in federal prison.
Daniel Longoria, Cavazos, and Travis Longoria were each convicted at trial on an indictment charging one count of conspiracy to distribute and possess with intent to distribute 100 kilograms or more of marijuana. Rodriguez was found guilty at trial of the lesser charge of conspiracy to distribute and possess with intent to distribute less than 50 kilograms of marijuana. In January 2015, Perez and Johnson each pleaded guilty to the indictment.
According to evidence presented at trial and filed court documents, the investigation into the Daniel Longoria Drug Trafficking Organization (DTO) began when the Abilene Police Department learned that, since 2004, Daniel Longoria had been distributing marijuana from his business, Abilene Automotive and Performance. Daniel Longoria concealed marijuana in speaker boxes, and placed the speakers in vehicles so that the marijuana could be distributed throughout Abilene. Daniel Longoria also used vehicles that had been left at his business to conceal and transport large sums of bulk cash back to the DTO’s supply source in Mexico. All six defendants conspired together and worked together to transport and distribute large quantities of marijuana in Abilene.
The Abilene Police Department, the Texas Department of Public Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Juanita Fielden and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
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Cushing Woman Sentenced to One Year of Probation for Making False StatementsRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Crystal Dinapoli, formerly known as “Crystal Burch,” 23, of Cushing, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to one year of probation for making a false statement to a government agent. Dinapoli pleaded guilty to the charge on April 1, 2015.
According to court records, in June 2014, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was investigating Dinapoli’s then-boyfriend for illegally possessing firearms. In 2013, Dinapoli purchased several handguns from a local firearms dealer. Agents were investigating whether Dinapoli’s boyfriend had possessed any of them. Dinapoli told an ATF agent that she transferred those handguns to her boyfriend’s father, a statement that was false. Later that day, ATF agents found her boyfriend with two of the handguns.
The investigation was conducted by the ATF.
Coin and Precious Metals Dealer and His Company Plead Guilty to Wire FraudRead the Press Release
CHARLOTTE, N.C. – A coin and precious metals dealer and his company pleaded guilty to wire fraud charges for defrauding more than 400 customer-victims of over $15 million, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. The Tulving Company, Inc., and its owner, Hannes Tulving, Jr., 60, of Newport Beach, California, entered their guilty pleas today before U.S. Magistrate Judge David Keesler.
Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins Acting U.S. Attorney Rose in making today’s announcement.
According to the filed plea documents and statements made in court, Tulving was the sole owner, shareholder and President of The Tulving Company, Inc. (Tulving Co.), a California-based business that sold coins, bullion, and other precious metals over the Internet. Court records show that from about August 2013 to January 2014, Tulving and his company executed a scheme to defraud customers nationwide by inducing them to place orders for coins and other merchandise knowing those orders could not be fulfilled. Court records show that the customers paid for the merchandise, expecting their orders to be delivered according to the timetable advertised on the company’s website. According to information contained in plea documents, Tulving and his company accepted the customers’ payments but failed to deliver some of the merchandise. Instead, they diverted the customers’ payments to fulfill other customers’ orders, to pay the company’s debt, and to return the money to previous customers who did not receive their merchandise. Today, the defendants admitted to defrauding more than 400 victims of over $15 million.
As stated in Hannes Tulving’s plea agreement, the wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. As part of his plea with the government, the defendant has agreed to pay restitution to his victims. Tulving was released on bond after entering his guilty plea.
According to the company’s plea agreement, the Tulving Co. faces at sentencing a fine in the amount $500,000, or twice the gross pecuniary gain derived from the crime or twice the gross pecuniary loss to the victims of the crime, whichever is greatest. The company also faces a minimum of one year of organizational probation and will be required to pay full restitution to the victims.
The U.S. Secret Service handled the investigation. Acting U.S. Attorney Rose also thanked the Commodities Futures Trading Commission for their assistance in this case. Assistant U.S. Attorney Kevin Zolot is in charge of the prosecution.
Cochise County Receives More Than $25,000 in Federal Money to Promote Law Enforcement EffortsRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $25,189 in additional federal funds has been awarded to the Cochise County Sheriff’s Office to fund equipment for law enforcement, with the goal of preventing and controlling crime and increasing officer safety. The grant funds are supplied by the Bureau of Justice Assistance (“BJA”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
“These funds support the basic operational law enforcement needs of the county,” said U.S. Attorney John S. Leonardo. “This grant will enhance Cochise County’s efforts to increase officer readiness, reduce crime, and increase public safety. We encourage all agencies to be proactive and apply for future law enforcement grant funding through our Office of Justice Programs.”
Additional information about BJA and its programs is available at: https://www.bja.gov/Default.aspx
Information about OJP and its programs can be found at:http://www.ojp.usdoj.gov.
RELEASE NUMBER: 2015-064_COCHISE GRANT (2015-DJ-BX-0975)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Cocaine Trafficker Sentenced to over 17 Years in Federal PrisonRead the Press Release
ATLANTA - Ricky Nuckles has been sentenced to 17 years, 7 months in federal prison for trafficking 22 kilograms of cocaine and for possessing a firearm in furtherance of that offense. Nuckles was found guilty by a jury on May 13, 2015.
“One of our most solemn responsibilities is to protect the public from the blight of illegal narcotics,” said U.S. Attorney John Horn. “Thanks to a vigilant off-duty DEA agent, 22 kilograms of cocaine is off the streets, and Nuckles' drug-trafficking days are finished.”
“We have removed another cocaine trafficker off of the streets, thanks to the quick thinking and fine police work performed by one of our own Special Agents,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “This criminal can no longer pose a danger to the community.”
According to U.S. Attorney Horn, the charges and other information presented in court: On the morning of December 23, 2013, Ricky Nuckles parked his car beside a pump at a gas station on Cheshire Bridge Road in Atlanta, Georgia, and entered the station’s convenience store. As he entered, Nuckles placed a call on his cell phone. Moments later, a second car entered the gas station and parked beside the defendant’s car. The driver of the second car then carried a large suitcase over to Nuckles' car, placed it inside, and quickly returned to his car and drove away. The defendant watched the delivery through the store’s window and remotely locked his car the moment the suitcase was placed inside.
Unbeknownst to Nuckles, an off-duty DEA agent was also at the gas station that morning, and watched the delivery happen while waiting in line for an emissions inspection. The agent confronted Nuckles as he attempted to return to his car and leave the station. The agent identified himself, and after explaining what he saw, Nuckles fled back inside the convenience store and immediately discarded the cell phone he used to arrange the drug delivery.
When Nuckles exited the store the second time, the agent was still waiting by Nuckles’ car. After learning that the defendants had a loaded firearm next to his driver’s seat, the agent placed himself between Nuckles and the car and dialed 911. Minutes later, additional DEA agents and uniformed Atlanta Police Department officers arrived at the gas station. Nuckles consented to a search of the suitcase, inside which agents found 22 kilograms of cocaine with a wholesale value of approximately $750,000. Agents also found an FN model 57 handgun and two 25-round extended magazines next to the driver’s seat of the car, within easy reach.
Ricky Nuckles, 41, of Johns Creek, Georgia, has been sentenced by Senior U.S. District Court Judge Orinda D. Evans to 17 years, 7 months in prison to be followed by 5 years of supervised release.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Cassandra Schansman and Special Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
California Man Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Carlos Alberto Renteria-Garcia, 23, of Los Angeles, Calif., pleaded guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge. The guilty plea was entered under a plea agreement with the U.S. Attorney’s Office.
Renteria-Garcia was arrested on Feb. 16, 2015, at the Amtrak Train Station in Albuquerque after DEA agents found approximately 5.06 pounds of heroin concealed in the bedroom Renteria-Garcia was using during his ride aboard the train during a consensual search. Renteria-Garcia was indicted on March 10, 2015, and charged with possession of heroin with intent to distribute.
During today’s proceedings, Renteria-Garcia pled guilty to the indictment, and admitted that he was in possession of more than a kilogram of heroin on Feb. 16, 2015. He further admitted that DEA agents found the heroin concealed in his room on the Amtrak train during a stop in Albuquerque.
At sentencing, Renteria-Garcia faces a statutory maximum penalty of 20 years in prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Joel R. Meyers is prosecuting the case.
This case is being 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.
Bridgeport Man Sentenced to 57 Months in Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that on August 18, 2015, GIOVANNI CANDELARIO, 22, of Bridgeport, was sentenced by U.S. District Judge Alvin W. Thompson in Hartford to 57 months of imprisonment, followed by three years of supervised release during which he must complete 300 hours of community service, for illegally possessing a firearm.
According to court documents and statements made in court, at approximately 10 p.m. on February 1, 2014, a vehicle in which CANDELARIO was a passenger engaged in a chase with Bridgeport Police. The vehicle eventually stopped on Ogden Street in Bridgeport and CANDELARIO fled on foot. CANDELARIO was apprehended after he was found hiding in a trash can behind an apartment building on Hallet Street. Officers subsequently traced the route of CANDELARIO’s flight and located a Smith and Wesson MP .40 caliber pistol on the driveway of an Ogden Street residence. The firearm had been previously reported stolen.
In March 2012, CANDELARIO was convicted in state court of possession with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CANDELARIO has been detained since his arrest. On August 19, 2014, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. CANDELARIO attended a call-in on October 30, 2013, in Bridgeport, and was offered services. CANDELARIO rejected the offer of services and he and his group committed acts of violence, which in turn drew the full and focused attention of local, state and federal law enforcement.
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Bookkeeper Sentenced to 3 Years in Prison for Embezzling over $1.3 Million from Non-Profit OrganizationsRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Sharon Harrison, age 48, of Rosedale, Maryland, today to three years in prison followed by three years of supervised release for embezzling from four non-profit organizations for which she worked. Judge Motz also entered an order that Harrison pay restitution of $1,306,797.70, the total amount that she embezzled.
The sentence 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 Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General; and Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General.
“Non-profit organizations that receive federal funds have a legal duty to use them for the intended purpose,” said U.S. Attorney Rod J. Rosenstein. “Sharon Harrison helped herself to federal funds intended to provide services for disadvantaged children and homeless families in Baltimore.”
According to her plea agreement, Harrison was a bookkeeper or fiscal manager for the following non-profit groups, all of which received federal funds to assist in their mission:
Health, Education, Advocacy, Life Inc. (HEAL) from 2005 to March 2011;
Between Friends, Inc. from September 2008 to November 2011;
Jobs, Housing & Recovery, Inc. (JHR) from May 20, 2013 to February 12, 2014; and
Reservoir Hill Improvement Council (RHIC) from December 2012 to February 2014.
HEAL and JHR provided services for the homeless in Baltimore City. Between Friends assisted disadvantaged children to find foster homes and provided services to the children and their foster families. RHIC developed and implemented solutions to needs arising at the Reservoir Hill Community in Baltimore.
Over the course of her employment at these non-profits, Harrison embezzled over $1.3 million. Specifically, Harrison admitted that she embezzled: $226,888.34 from HEAL; $784,781.17 from Between Friends; $161,750.14 from JHR; and $133,178.04 from RHIC.
United States Attorney Rod J. Rosenstein praised the FBI, HUD-OIG and Baltimore Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who prosecuted the case.
August Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 21 indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Alejandro Alcantar-Mascote, age 33, of Grand Island, is charged with illegal reentry into the United States on or about July 7, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* David Allison, age 33, of St. George, Utah, is charged with possession of a stolen firearm on or about July 2, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Yimy Arevalo-Coyoy, age 29, of Grand Island, is charged with illegal reentry into the United States on or about Jun 22, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Oscar Gonzalez-Ahumada, age 38, is charged in a two-count indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine from an unknown date but at least as early as November 1, 2013 and continuing through July 28, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with illegal re-entry. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Dillon Grabowski, age 19, of Lodgepole, Nebraska, is charged with conspiracy to distribute and possess with intent to distribute a mixture containing acetyl fentanyl analogue, a controlled substance analogue, beginning on or about January, 2015, and continuing to on or about May 21, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Juan Hernandez-Martinez, age 38, of Omaha, is charged with illegal reentry into the United States on or about August 11, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Justin Lasley, Sr., also known as Justin Lee Lasley, Sr., age 35, of Macy, Nebraska, is charged with domestic assault by a habitual offender on or about July 29, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* William Lopez-Lopez, age 34, is charged with illegal reentry into the United States on or about August 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Natalie Murta, age 30, of Omaha, is charged with conspiracy to distribute and possess with intent to distribute a mixture containing methamphetamine beginning on or about June 1, 2015, and continuing to on or about June 23, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ruben Navarro-Robles, age 37, is charged with illegal reentry into the United States on or about August 12, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Denny Ochoa-Gonzalez, age 36, of Omaha, is charged with illegal reentry into the United States on or about August 10, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Adan Preciado-Medina, age 46, of Hastings, is charged with illegal reentry into the United States on or about July 21, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jeffrey M. Rindone, age 36, of Wood River, Nebraska, and Scott W. Rindone, age 33, of Lincoln, Nebraska, are charged in an eight-count Indictment. Count I of the Indictment charges the defendants with conspiracy to commit bank fraud beginning in or about May 2013 and continuing through about September 2013. The maximum possible penalty if convicted is 30 years imprisonment, a $1,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Counts II thru XIII of the Indictment charges Jeffrey Rindone and Scott Rindone with bank fraud between on or about May 22, 2013 and on about September 12, 2013. Jeffrey Rindone and Scott Rindone together operated a business, Rindone, Inc., which built houses and borrowed money to do so from West Gate Bank, through lines of credit. The defendants allegedly submitted bogus claims for disbursements on their lines of credit totaling approximately $182,450. The maximum possible penalty if convicted is 30 years imprisonment, a $1,000,000 fine, a 5 year term of supervised release, and a $100 special assessment for each count.
* Duane L. Rouillard, III, age 27, of Winnebago, Nebraska, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with assaulting a federal officer on or about May 11, 2015. The maximum possible penalty if convicted is 8 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II and III of the Indictment charge the defendant with assault with a deadly weapon, on or about May 11, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Edwin Geovany Sanchez Mejia, age 28, is charged with illegal reentry into the United States on or about July 30, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Kevin Smith, age 52, of Hastings, Nebraska, is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on or about July 12, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Jerrell S. Tyndall, age 20, of Walthill, Nebraska, is charged with assault with a dangerous weapon on or about July 25, 2015. The maximum possible penalty if convicted is 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Augustine Valadez-Briceno, age 33, is charged with illegal reentry into the United States on or about July 31, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Adolfo Villa-Cervantes, age 26, of Omaha, is charged with illegal reentry into the United States on or about July 28, 2015, after deportation or removal following a conviction for an aggravated felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaquan D. Washington, age 19, Blayne L. McCroy, age 21, and Edward Davis, age 24, all of Omaha, were charged in a two-count Indictment. Count I of the Indictment charges the defendants with bank robbery resulting in the taking of approximately $1,026.90, from the Bank of the West, 8707 West Center Road, Omaha, Nebraska, on or about November 20, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendants with discharging a firearm during and in relation to robbing the Bank of the West, on or about November 20, 2014. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Shane M. Wibbels, age 39, of Pleasanton, Nebraska, is charged in a two-count Indictment. Counts I and II of the Indictment charge the defendant with making a false statement in an Agricultural Financial Statement regarding his total liabilities which was submitted to the Henderson State Bank, Greeley, Nebraska, on or about January 2009, and on or about March 22, 2010. The maximum possible penalty if convicted is 30 years imprisonment, a $1,000,000 fine, a 5 year term of supervised release, and a $100 special assessment for each count.
Arizona Man Sentenced to 87 Months in Federal Prison for Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Charles Douglas Notbohm, Jr., 51, of Tuscon, Ariz., was sentenced today in federal court in Las Cruces, N.M., for his conviction on drug trafficking charges. Notbohm was sentenced to 87 months in federal prison followed by three years of supervised release.
Notbohm was arrested in Lordsburg, N.M., on Feb. 21, 2014, after officers executed a search warrant on the vehicle in which he was traveling and found more than 116 grams of methamphetamine. On May 21, 2014, Notbohm, James Richard Reeves, 46, also of Tucson, and Armando Conrad Gonzales, 34, of Las Cruces, were indicted and charged with conspiracy and possession of methamphetamine with intent to distribute. On July 16, 2014, Notbohm, Reeves and Gonzales were charged in a superseding indictment with conspiracy and possession of methamphetamine with intent to distribute. The superseding indictment also charged Gonzales with being a felon in possession of a firearm
Notbohm pled guilty on Oct. 7, 2014, to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In entering his guilty plea, Notbohm admitted that on Feb. 21, 2014, he and Reeves were driving from Tucson to Las Cruces for the purpose of delivering methamphetamine to Gonzales. He further admitted that as the two men were driving through Lordsburg, they were stopped by a police officer who found more than 116 grams of methamphetamine in their vehicle.
On Sept. 18, 2014, Reeves pled guilty to the two methamphetamine trafficking charges in the superseding indictment without the benefit of a plea agreement. At sentencing, Reeves faces a sentence of not less than five years and not more than 40 years in prison. Reeves remains in custody pending a sentencing hearing which has yet to be scheduled.
On Nov. 18, 2014, Gonzales pled guilty to Counts 1 and 3 of the superseding indictment, charging him with conspiracy to distribute methamphetamine and being a felon in possession of a firearm. In entering his guilty plea, Gonzales admitted making an agreement with Reeves to purchase four ounces of methamphetamine from Reeves which Reeves and Notbohm were to transport from Tucson to Las Cruces. Gonzales further admitted that on April 11, 2014, he possessed a firearm and ammunition even though he was prohibited from doing so based on his status as a convicted felon.
This case was investigated by Deming office of Homeland Security Investigations and the Lordsburg Police Department, and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
Arizona Man Sentenced for Trafficking Methamphetamine in New MexicoRead the Press Release
ALBUQUERQUE – Emery Lee Begay, 32, of Lakeside, Ariz., was sentenced this afternoon in federal court in Albuquerque, N.M., to 60 months in prison followed by three years of supervised release for his conviction on conspiracy to distribute methamphetamine in Socorro and Catron Counties, N.M.
Begay and his co-defendant Jorge Luis Garcia-Valenzuela, 22, a Mexican national residing in Lakeside, Ariz., were arrested on Oct. 25, 2014, after they traveled to Quemado, N.M., with the intention of selling methamphetamine and marijuana to undercover officers. According to the complaint, on Aug. 19, 2015, Begay delivered approximately 22.6 grams of methamphetamine and approximately three kilograms of marijuana to the undercover officers in Socorro, N.M., after Garcia-Valenzuela allegedly negotiated the drug deal with the officers. The complaint also alleges that Garcia-Valenzuela and Begay were arrested on Oct. 25, 2014, in Quemado when they arrived to consummate a drug deal with the undercover officers. The officers allegedly seized approximately 800 grams of methamphetamine and more than eight kilograms of marijuana when they arrested the two men.
Begay and Garcia-Valenzuela were subsequently indicted on Nov. 19, 2014, and charged with conspiracy to distribute methamphetamine and marijuana, distribution of methamphetamine and marijuana, and possession of methamphetamine and marijuana with intent to distribute. According to the indictment, the offenses were committed between Aug. 19, 2014 and Oct. 25, 2014, in Socorro and Catron Counties.
On May 21, 2015, Begay pled guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute.
Garcia-Valenzuela entered a guilty plea on June 19, 2015, to a felony information charging him with conspiracy to distribute and possess methamphetamine. Under the terms of his plea agreement, Garcia-Valenzuela will be sentenced to 100 months in prison and will be deported following his term of incarceration. His sentencing hearing is currently scheduled for Sept. 24, 2015.
This case was investigated by the Albuquerque and Gallup offices of the FBI, the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Ramah Navajo Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Albuquerque Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE—Terrence Connors, 61, of Albuquerque, N.M., was sentenced late yesterday afternoon in federal court to 60 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Connors and co-defendant Thomas Jones, 44, of Cerrillos, N.M., were arrested in Dec. 2012, on criminal complaints charging them with possession of methamphetamine with intent to distribute. According to the complaints, on Dec. 17, 2012, Homeland Security Investigations (HSI) agents and the HIDTA Region II Narcotics Task Force executed a traffic stop on a car in which Connors and Jones were driving on Interstate 40 near Gallup, N.M. While searching the care, agents found approximately 990.37 grams of methamphetamine and a pistol.
Connors and Jones were subsequently indicted in Jan. 2013, and were charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. Connors also was charged with possessing a firearm in furtherance of a drug trafficking crime. The indictment stated that the offenses were committed on Dec. 17, 2012, in McKinley County, N.M.
On March 25, 2015, Connors pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Connors admitted that on Dec. 17, 2012, law enforcement found 990.37 grams of methamphetamine in the car Connors was driving. Connors also admitted purchasing the methamphetamine earlier that day in Phoenix, Ariz., and that he paid Jones to help him transport the methamphetamine to Albuquerque.
Jones pled guilty on Nov. 3, 2014, to a felony information charging him with possession of methamphetamine with intent to distribute. Jones admitted helping Connors transport the methamphetamine to Albuquerque, and acknowledged that he was paid for his services with methamphetamine. Jones was sentenced on July 1, 2015, to 24 months in prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of HSI and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorney Norman Cairns prosecuted the case.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Afterschool Program Employee Sentenced in Manhattan Federal Court to More Than 17 Years in Prison for Producing, Receiving, Distributing, and Possessing Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RENE CARDONA, a former employee of an afterschool program in the Bronx, was sentenced to 17½ years in prison for producing, receiving, distributing, and possessing child pornography. On April 9, 2015, CARDONA was found guilty by U.S. District Judge Ronnie Abrams following a bench trial. CARDONA, who was arrested on April 30, 2014, has been detained since his arrest.
Manhattan U.S. Attorney Preet Bharara said: “Rene Cardona sexually exploited and victimized young children, including children he was supposed to care for at an afterschool program. He preyed on the most innocent and vulnerable in our community.”
According to the Complaint and other documents filed in this case, and statements made in related court proceedings:
On or about March 13, 2014, the Guam Police Department received information that an 11-year-old boy (“Victim-1”), while residing in Guam, produced child pornography for an adult male in New York, New York, later identified as CARDONA. Victim-1 met CARDONA over the social media site Instagram in or about February 2014. FBI agents in Guam subsequently obtained a search warrant directed to Instagram, which revealed that, in or about February 2014, CARDONA and Victim-1 traded photographs, with CARDONA repeatedly asking Victim-1 to provide sexually explicit photographs of himself. Victim-1 eventually provided CARDONA with five sexually explicit photographs of himself engaged in the lascivious exhibition of his genitals.
After identifying CARDONA’s residence, and learning that CARDONA had been employed in an afterschool program located in the Bronx, New York, law enforcement agents obtained a search warrant for CARDONA’s residence. During the execution of the search warrant, CARDONA admitted to law enforcement agents that he had engaged in the chats with Victim-1 described above. CARDONA further admitted, among other things, that: (1) CARDONA had had sexual contact with a 14-year-old boy (“Victim-2”); (2) CARDONA took three to four sexually explicit photographs of Victim-2; and (3) CARDONA had had inappropriate sexual contact with children, including children he had encountered through an afterschool program. CARDONA’s Instagram account further reflects that in or about February 2014, CARDONA provided an image of Victim-2 engaged in sexually explicit conduct to another individual over the Internet.
During the course of the search of CARDONA’s residence, law enforcement agents identified a laptop computer and an iPhone, which were each later confirmed to belong to CARDONA. Forensic analysis revealed that the laptop and iPhone contained hundreds of images and videos that depicted actual minors engaged in sexually explicit conduct. Some of the files contained on the laptop and iPhone depicted pre-pubescent minors engaged in sexually explicit conduct.
* * *
For the offenses with which he was convicted, CARDONA faced a statutory mandatory minimum of 15 years in prison. In addition to his term of imprisonment, CARDONA, 23, was also sentenced to 10 years of supervised release.
CARDONA worked at the Betances summer camp and afterschool programs in the Bronx from 2012 to approximately 2014 and thereafter as a mentor for youths at the Youth Men’s Initiative at Betances Community Center from January to April 2014. Cardona also worked as a volunteer at the Betances Community Center at various times starting in 2011. The investigation of CARDONA’s conduct relating to inappropriate sexual contact with youths in violation of state law is being handled by the Manhattan District Attorney’s Office.
Mr. Bharara thanked and praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department in this matter, as well as the Manhattan District Attorney’s Office and the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Gina Castellano and Andrew DeFilippis are in charge of the prosecution.
Acoma Pueblo Woman Sentenced to Federal Prison for Assaulting Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Adele Antonio, 35, a member and resident of Acoma Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to a year and a day in federal prison followed by one year of supervised release for assaulting a tribal police officer.
Antonio was arrested Feb. 23, 2015, on a criminal complaint charging her with assaulting an officer of the Acoma Tribal Police Department resulting in serious bodily injury on Feb. 12, 2015. The assault occurred on Acoma Pueblo in Cibola County, N.M., after the tribal officer responded to a call from Antonio’s residence. The tribal police officer received serious injury to his neck as a result of extreme physical pain inflicted by being kicked by the Antonio. As a precautionary measure the tribal police officer was airlifted to the hospital in Albuquerque, N.M. Antonio was subsequently indicted on the same charge on March 10, 2015.
On May 8, 2015, Antonio pled guilty to a felony information charging her with aggravated battery on a peace officer. Antonio admitted that after the Acoma Tribal Police officer placed her under arrest, she kicked the tribal police officer in the neck while he was attempting to place Antonio’s partner under arrest, and that the assault occurred in Indian Country in Acoma Pueblo.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney David Adams prosecuted the case.
19 August 2015
Winchester Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
LEXINGTON - A Winchester, Ky., tax return preparer has admitted in federal court that she submitted false individual income tax returns and evaded paying thousands of dollars in federal income taxes.
Virginia Christine Smith, 44, pleaded guilty today to tax fraud in front of U.S. District Judge Danny C. Reeves.
According to her plea agreement, Smith knowingly underreported income on her personal tax returns in 2009, 2010, and 2011. During that time period, she owned a professional tax return preparation business called Christina’s Bilingual Service, which she operated out of her home in Winchester, Ky.
Smith admitted failing to pay $40,079 in federal taxes. As part of her guilty plea agreement, Smith pledged to repay that amount to the Internal Revenue Service, plus penalties and interest.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Caroline D. Ciraolo, Assistant Attorney General for the Tax Division; and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Neeraj Gupta prosecuted this case on behalf of the federal government.
Smith will appear for sentencing on November 18, 2015. She faces a maximum of three years in prison. The Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
Wheeling man convicted of heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Tyrell Askerneese, 36, of Wheeling, was convicted in federal court today of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Askerneese sold heroin in Ohio County, West Virginia in May 2014. He pled guilty today to one count of “Aiding and Abetting the Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, the Ohio Valley Drug and Violent Crime Task Force, both HIDTA-funded initiatives, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Wentzville Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – JAMES STALEY was sentenced to 84 months in prison and ordered to pay restitution in the amount of $3,313,568 on charges involving his scheme to defraud investors by making false promises of high rates of return and minimal risk. With his April plea, Staley admitted to defrauding sixteen investors/lenders by causing them to invest over $3.3 million, giving him commissions totaling over $570,000.
According to court documents, in 2007 James Staley operated Wealth Financial International. That same year, he became a sales agent for a Premium Financing Company located in California known as B & B Equity. As a sales agent, Staley found individuals to provide loans for life insurance policies. In many instances, several of these investor/lender’s funds were bundled together to provide financing to purchase one life insurance policy. Staley received a commission for each investor/lender that he found to contribute financing for the purchasing of the life insurance policies. B & B required the lender/investor to invest in the insurance policy for a fixed period of time, varying from 18 months to two years. During this period of time, Staley represented to clients of Wealth Financial that B & B Premium Financing Company would sell the bundled insurance policies on the open market with guaranteed returns. However, Staley was well aware that if B & B was unable to secure a buyer for the bundled insurance policies, his clients would lose all their monies invested in the Premium Financing product sold by B & B.
Staley, Wentzville, Missouri, pled guilty in April to four felony counts of wire fraud. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by Federal Bureau of Investigation. Assistant United States Attorneys Dianna Collins and Dorothy McMurtry handled the case for the U.S. Attorney's Office.
Upshur County man convicted of manufacturing methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Steven S. Bennett, 39, of Buckhannon, West Virginia, was convicted today of manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Bennett manufactured methamphetamine in Randolph County, West Virginia in October 2014. He pled guilty today to one count of “Manufacturing Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Buckhannon Police Department investigated.
U.S. Magistrate Judge John S. Kaull presided.
U.S. Investigations Services Agrees to Forego at Least $30 Million to Settle False Claims Act AllegationsRead the Press Release
Contractor Allegedly Failed to Perform Required Quality Control Reviews on Contracts for Background Investigations with the U.S. Office of Personnel Management
The Justice Department announced today that U.S. Investigations Services Inc. (USIS) and its parent company, Altegrity, have agreed to settle allegations that USIS violated the False Claims Act (FCA) for conduct involving a contract for background investigations that USIS held with the U.S. Office of Personnel Management (OPM). The companies have agreed to forgo their right to collect payments that they claim were owed by OPM, valued at least at $30 million, in exchange for a release of liability under the FCA. USIS and Altegrity are headquartered in Northern Virginia.
From its privatization in 1996 until September 2014, USIS provided background investigations services for OPM under various fieldwork contracts. The government alleged that beginning in at least March 2008 and continuing through at least September 2012, USIS deliberately circumvented contractually required quality reviews of completed background investigations in order to increase the company’s revenues and profits. Specifically, USIS allegedly devised a practice referred to internally as “dumping” or “flushing,” which involved releasing cases to OPM and representing them as complete when, in fact, not all the reports of investigations comprising those cases had received a contractually-required quality review. The government contended that, relying upon USIS’ false representations, OPM issued payments and contract incentives to USIS that it would not otherwise have issued had OPM been aware that the background investigations had not gone through the quality review process required by the contracts.
“Shortcuts taken by any company that we have entrusted to conduct background investigations of future and current federal employees are unacceptable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will ensure that those who do business with the government provide all of the services for which we bargained.”
“Contractors who do business for the federal government have a responsibility to provide the goods and services that they promise,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia. “This particular company failed to meet its obligations of comprehensively reviewing the backgrounds of current and prospective federal employees. This settlement demonstrates our commitment to holding government contractors accountable.”
“This case demonstrates my office’s dedication to protecting tax payers’ money,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. “We will continue to vigorously pursue all fraud against the government in order to restore and safeguard funds paid by our citizens.”
In February 2015, Altegrity, USIS and their affiliates filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code in Delaware. The settlement of USIS’ FCA liability is part of a broader settlement that also resolves other matters between the United States and USIS/Altegrity that were part of the bankruptcy proceeding.
The FCA lawsuit against USIS was originally filed under the whistleblower provisions of the act by Blake Percival, a former executive at USIS. The FCA prohibits the submission of false claims for government money or property and, under the act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery. The United States may elect to intervene and take over the case, as it did here. Mr. Percival’s share of the settlement has not yet been determined.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of Columbia, the U.S. Attorney’s Office of the Middle District of Alabama, OPM and OPM’s Office of Inspector General.
The claims resolved by the settlement agreement are allegations only and there has been no determination of liability. The case is United States of America, ex rel., Blake Percival, v. U.S. Investigations Services, LLC, No. 14-cv-00726-RMC (D.D.C.).
U.S. Investigations Services Agrees to Forego at Least $30 Million to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON – The Justice Department announced today that U.S. Investigations Services Inc. (USIS) and its parent company, Altegrity, have agreed to settle allegations that USIS violated the False Claims Act (FCA) for conduct involving a contract for background investigations that USIS held with the U.S. Office of Personnel Management (OPM). The companies have agreed to forgo their right to collect payments that they claim were owed by OPM, valued at least at $30 million, in exchange for a release of liability under the FCA. USIS and Altegrity are headquartered in Northern Virginia.
From its privatization in 1996 until September 2014, USIS provided background investigations services for OPM under various fieldwork contracts. The government alleged that beginning in at least March 2008 and continuing through at least September 2012, USIS deliberately circumvented contractually required quality reviews of completed background investigations in order to increase the company’s revenues and profits. Specifically, USIS allegedly devised a practice referred to internally as “dumping” or “flushing,” which involved releasing cases to OPM and representing them as complete when, in fact, not all the reports of investigations comprising those cases had received a contractually-required quality review. The government contended that, relying upon USIS’ false representations, OPM issued payments and contract incentives to USIS that it would not otherwise have issued had OPM been aware that the background investigations had not gone through the quality review process required by the contracts.
“Contractors who do business for the federal government have a responsibility to provide the goods and services that they promise,” said Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia. “This particular company failed to meet its obligations of comprehensively reviewing the backgrounds of current and prospective federal employees. This settlement demonstrates our commitment to holding government contractors accountable.”
“Shortcuts taken by any company that we have entrusted to conduct background investigations of future and current federal employees are unacceptable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will ensure that those who do business with the government provide all of the services for which we bargained.”
“This case demonstrates my office’s dedication to protecting tax payers’ money,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. “We will continue to vigorously pursue all fraud against the government in order to restore and safeguard funds paid by our citizens.”
In February 2015, Altegrity, USIS and their affiliates filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code in Delaware. The settlement of USIS’ FCA liability is part of a broader settlement that also resolves other matters between the United States and USIS/Altegrity that were part of the bankruptcy proceeding.
The FCA lawsuit against USIS was originally filed under the whistleblower provisions of the act by Blake Percival, a former executive at USIS. The FCA prohibits the submission of false claims for government money or property and, under the act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery. The United States may elect to intervene and take over the case, as it did here. Mr. Percival’s share of the settlement has not yet been determined.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of Columbia, the U.S. Attorney’s Office of the Middle District of Alabama, OPM and OPM’s Office of Inspector General.
The claims resolved by the settlement agreement are allegations only and there has been no determination of liability. The case is United States of America, ex rel., Blake Percival, v. U.S. Investigations Services, LLC, No. 14-cv-00726-RMC (D.D.C.).
Two Individuals Pled Guilty for Endorsing and Cashing Stolen and Fraudulently Obtained United States Treasury ChecksRead the Press Release
Two individuals pled guilty for endorsing and cashing stolen and fraudulently obtained United States Treasury checks.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Pete Hoggins, 32, and Hani Sobhi Alshaikh, a/k/a “Danny”, 35, both of the Southern District of Florida, each pled guilty to one count of conspiracy to commit forgery and theft of public money, in violation of Title 18, United States Code, Section 371. Hoggins also pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The defendants face a maximum statutory sentence of five years in prison for the conspiracy charge, and Hoggins also faces a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to court documents, Alshaikh worked at a gas station in Pompano Beach, Florida. On multiple occasions from December 2011 to January 2014, Hoggins brought Alshaikh stolen and fraudulently obtained Treasury checks to cash at this gas station. Hoggins and Alshaikh forged the payees’ endorsements on the Treasury checks. Alshaikh then deposited those checks into several different business checking accounts that he had opened at various banks in the name of his company, HSA Investment Group.
The total number of victims in the scheme was more than 50, but less than 250. The total amount of intended loss was more than $200,000 but less than $250,000.
Hoggins is scheduled to be sentenced on October 2, 2015 at 10:30 a.m., and Alshaikh is scheduled to be sentenced on October 29, 2015 at 10:00 a.m., both before United States District Judge William J. Zloch.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Defendants Sentenced for Identity Theft Fraud Scheme Involving $144,170 Tax Refund CheckRead the Press Release
Two defendants sentenced by U.S. District Judge Kathleen M. Williams for an identity theft fraud scheme involving a $144,170 tax refund check.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
On August 19, 2015, Eve Mary Jean, 30, of Miami Beach, Florida, was sentenced to 24 months in prison, followed by three years of supervised release. On July 17, 2015, co-defendant James Medard, a/k/a “James Joseph,” 40, of Pembroke Pines, Florida, was sentenced to 16 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $144,170.
Each of the defendants previously pled guilty to one count of theft of government property, in violation of Title 18, United States Code, Sections 641 and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections l 028A(a)(1) and 2.
According to court documents, the defendants stole a United States Department of Treasury tax refund check in the amount of $144,170 that was in the names of two identity theft victims. Jean opened a checking account in the names of the victims, and Medard deposited the check into the account by forging the victims’ names on the back of the check. The victims did not know Medard or Jean, and did not authorize the defendants to possess or deposit the check.
Court documents state that Jean withdrew $110,000 from the fraudulent bank account by making a check payable to Destiny Real Estate Investment, a company owned by Medard. Jean and Medard then deposited the check into Destiny Real Estate Investment’s bank account. Jean issued two other checks to Medard in the amounts of $9,200 and $15,000 from the bank account that she had set up in the names of the victims.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USPIS. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Columbia Men Indicted for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Columbia, Mo., men were indicted by a federal grand jury today, in separate and unrelated cases, for illegally possessing firearms.
USA v. Simmons
Terry Allen Simmons, also known as Terry Roger Walker or Marcus Walton, 27, of Columbia, Mo., was charged in an indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment charges Simmons with being a felon in possession of a firearm. Simmons, who has been convicted of a felony, allegedly was in possession of a Kokiak Industries .380-caliber pistol on July 9, 2015.
This case is being prosecuted by Assistant U.S. Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
USA v. Carter
Darian Maurice Carter, 23, of Columbia, Mo., was charged in an indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment charges Carter with being a felon in possession of a firearm. Carter, who has been convicted of a felony, allegedly was in possession of a Hi-Point 9mm semi-automatic pistol on March 31, 2015.
This case is being prosecuted by Assistant U.S. Anthony P. Gonzalez. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Two Berkeley County men convicted in Baltimore to West Virginia heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Frederick Smitherman, 36, and Brandon Lee Odell, 32, both of Inwood, West Virginia were convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
The defendants were involved in an extensive drug trafficking operation in which heroin was transported across state lines from Baltimore, Maryland into West Virginia. The operation was disrupted in June 2015 by a 163-count federal indictment encompassing 41 defendants.
Odell pled guilty today to one count of “Aiding and Abetting Attempted Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Smitherman pled guilty today to one count of “Aiding and Abetting Interstate Travel in aid of Racketeering.” He faces up to five years in prison and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The matters were investigated by the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
U.S. Magistrate Judge Robert W. Trumble presided.
Tucson Man Convicted of 1998 Child Sexual AbuseRead the Press Release
TUCSON, Ariz. – Yesterday, Christopher James Preston, 48, of Tucson, Ariz., a member of the Tohono O’odham Nation, was found guilty of two counts of aggravated sexual abuse of a child by a federal jury. The case was tried before U.S. District Judge James A. Soto on Aug. 10-18, 2015. Preston is being held after trial and is set for sentencing on Oct. 26, 2015.
The evidence at trial showed that in the summer of 1998, Preston sexually abused the minor victim on the Tohono O’odham reservation. At the time, Preston was the victim’s little league coach.
A conviction for aggravated sexual abuse of a child carries a maximum penalty of lifetime incarceration.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Matthew C. Cassell and Rui Wang, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-13-1851-TUC-JAS-BPV
RELEASE NUMBER: 2015-063_Preston
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Topeka Man Pleads Guilty to Federal Charges in Carjacking, RobberyRead the Press Release
TOPEKA,KAN. - A Topeka man pleaded guilty Wednesday to federal charges of carjacking and robbery, U.S. Attorney Barry Grissom.
Wesley Lavern Harris, Jr., 26, Topeka, Kan., pleaded guilty to one count of carjacking and one count of commercial robbery. In his plea, he admitted that on June 7, 2015, he took a man’s keys, money and car and left the victim in a bathtub at the Econo Lodge Motel at 2950 S.W. Topeka Blvd. Harris and others had placed an ad on a Web site advertising sexual services in order to lure a victim to a hotel room and rob him. Harris left the motel driving the victim’s 2002 Hyundai Sonata.
In his plea, Harris admitted that on June 8, 2015, he entered the back door of the Heartland Perma Column store at 1841 E. 1450 Road in Lawrence, Kan. He threatened to kill an employee and forced her and another employee to give him money from a box in the front office.
Both parties have agreed to recommend a sentence of 86 months in federal prison. Sentencing will be set at a later date determined by the court.
Co-defendant Crystal Marie Jaimez, 23, Topeka, Kan., is set for jury trial Oct. 26. Co-defendant Christal Renee Aponte, 30, Topeka, Kan. has scheduled a change of plea hearing for Sept. 23.
Grissom commended the Topeka Police Department, the Douglas County Sheriff’s Department, the Lawrence Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Statement from U.S. Attorney Dettelbach on the passing of Congressman Louis StokesRead the Press Release
"One of the first things I did when I became U.S. Attorney was arrange for Lou Stokes to address every federal prosecutor in the District. We were in the midst of a huge county corruption scandal, and public service was taking a public beating. But Lou Stokes was always there as a shining beacon of integrity, of excellence and most important of all for us, of justice. I will always remember not only his words and wisdom that day, and whenever we spoke, but the incredible example that his entire life set."
Slidell Man Sentenced for Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONALD BACKES, age 48, of Slidell, was sentenced today after previously pleading guilty to wire fraud relating to an application for financial assistance in the aftermath of the Deepwater Horizon oil spill.
U.S. District Judge Ivan L.R. Lemelle sentenced BACKES to one year of home detention to be followed by four years’ probation. Judge Lemelle also ordered BACKES to pay $192,000 in restitution.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, in August and September 2010 BACKES falsely represented to the GCCF that he earned $156,000 annually from a shrimping business and that another individual earned $36,000 annually as BACKES’s employee. To support these claims, BACKES created and submitted to the GCCF false receipts of shrimp sales. As a result of BACKES’s conduct, GCCF issued checks totaling $192,000.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.
Silver Spring Man Sentenced for Two Bank RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Paul Milton Laney, age 60, of Silver Spring, Maryland today to 78 months in prison followed by three years of supervised release for committing two bank robberies within three days.
The sentence 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; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, on February 18, 2014, Laney entered a bank in the 13000 block of Georgia Avenue in Silver Spring and demanded money from a teller. When the teller did not immediately comply, Laney leapt up onto the counter and stuffed $2,920 from the register into a plastic bag. As Laney was leaving, a bank employee attempted to stop him. Laney stated, “If you take another step closer, I’ll blow your head off.” The employee stepped away and Laney left the bank.
On February 21, 2014, Laney entered a bank in the 8700 block of Georgia Avenue in Silver Spring and demanded money from a teller. The teller was slow to put money in a bag. Laney leaned over the counter revealing a large kitchen knife inside his jacket and threated to kill the teller. The teller handed Laney approximately $999 from the register, and Laney left the bank.
United States Attorney Rod J. Rosenstein commended the FBI and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who prosecuted the case.
Scranton Man Indicted for Robbery of PNC BankRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment was returned late yesterday by a grand jury in Scranton charging a Scranton man with robbing the West Scranton branch of PNC Bank.
According to United States Attorney Peter Smith, the indictment charges that on July 14, 2015, Chester Williams, age 31, robbed the West Scranton PNC bank of five hundred forty dollars ($540).
This case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scranton Man Admits Role in Sex Trafficking ConspiracyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a 26-year-old Scranton man pleaded guilty yesterday before Senior U.S. District Court Judge James M. Munley to conspiracy to commit sex trafficking of a minor.
According to United States Attorney Peter Smith, Jimmy Cantelmo admitted to conspiring with his brother, Sean Cantelmo, and others to persuade a minor to engage in prostitution during February through August 2014.
The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; purchasing and providing condoms for the minor to use during commercial sex acts; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
Jimmy Cantelmo was indicted by a federal grand jury in Scranton in April 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police. Four persons have been charged in connection with the investigation. Sean Cantelmo previously pleaded guilty and was sentenced to 151 months in prison. Justin Strait pleaded guilty and is awaiting sentencing.
Judge Munley scheduled sentencing for November 18, 2015. Cantelmo faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. Cantelmo remains detained in prison pending sentencing.
Prosecution is assigned to Assistant United States Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Santa Clara Pueblo Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Leon J. Tafoya, 20, a member and resident of Santa Clara Pueblo, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 84 months in prison followed by five years of supervised release for his assault conviction.
Tafoya was arrested on Sept. 16, 2014, on a criminal complaint charging him with assault with a dangerous weapon, assault resulting in serious bodily injury, and aggravated assault. According to the complaint, Tafoya committed the crimes in Santa Clara Pueblo in Rio Arriba County, N.M. The complaint alleged that on Sept. 7, 2014, officers of the Santa Clara Pueblo Tribal Police Department responded to a call reporting an assault. They arrested Tafoya for stabbing another member of the Santa Clara Pueblo three times and assaulting a tribal police officer who responded to the stabbing. The complaint asserted that Tafoya attempted to gain control of the officer’s service weapon while the officer was placing Tafoya under arrest.
On May 7, 2015, Tafoya entered a guilty plea to a felony information charging him with possession of a firearm during a crime of violence, aggravated assault with a deadly weapon and assault resulting in serious bodily injury. In entering the guilty plea, Tafoya admitted that on Sept. 7, 2014, he possessed a firearm and assaulted a victim by displaying that firearm in a threatening manner. Tafoya also admitted to assaulting another victim resulting in serious bodily injury to that victim.
This case was investigated by the Santa Fe office of the FBI, the Northern Pueblos Agency of the BIA’s Office of Justice Services, and the Santa Clara Pueblo Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Sacramento Man Sentenced to 5 YEARS in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — Troy Lee Vickers, 49, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Vickers knowingly used peer-to-peer computer software to download at least 200 child pornography videos from the Internet. Most of the videos recorded the sexual abuse of prepubescent children, some of whom appeared as young as six years old. Some of the videos involved sadistic and masochistic conduct.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Department. Assistant United States Attorneys Matthew G. Morris and Amanda Beck prosecuted 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.