Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 August 2015
Ringleader Pleads Guilty in $7.4 Million Mortgage Fraud Conspiracy That Targeted Northern Virginia Hispanic CommunityRead the Press Release
ALEXANDRIA, Va. – Rosita Vilchez, 39, a fugitive in Lima, Peru, until she was extradited to the United States in June 2015, pleaded guilty yesterday to leading a wide-ranging mortgage fraud conspiracy that targeted hundreds of victims in the northern Virginia Hispanic community. The mortgage fraud scheme, which operated between August 2005 and August 2007, generated nearly $7.4 million in fraudulent proceeds and caused losses of more than $15 million to lenders, most of which were federally insured.
Vilchez pleaded guilty to conspiracy to commit bank fraud and wire fraud affecting a financial institution. According to court documents, Vilchez operated a real estate firm (Vilchez & Associates), a title insurance company (Pino Title), and the branch of a loan brokerage business (Mount Vernon Capital Corporation) in Manassas, Va., all of which she used to carry out the fraud scheme. Vilchez and her co-conspirators submitted fraudulent loan documents that falsified their real estate clients’ income, employment, and assets so that they could obtain loans to buy property through Vilchez & Associates, which received commissions of as much as six percent of the selling price of every home.
The Vilchez conspiracy targeted Hispanic clients who were not proficient in spoken or written English, and the borrowers often were unable to read their loan documents and were unaware of the false statements submitted to the lenders on their behalf. According to court filings, the fraudulent loan applications made it possible for the borrowers to qualify for loans they could not afford to repay. Most of these borrowers later lost their homes to foreclosure.
To date, thirteen defendants have been convicted in connection with this conspiracy. Vilchez faces a maximum penalty of 30 years in prison when she is sentenced on December 4, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Matthew Alessandrino, FDIC Assistant Inspector General for Investigations, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
This case was investigated by the FBI’s Washington Field Office and the FDIC’s Office of Inspector General. Assistant U.S. Attorneys James P. Gillis and Julia K. Martinez are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cr-394.
Ravia Woman Sentenced to 60 Months Probation, $78,000 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARNITA CAROL FOSTER a/k/a Marnita Carol Parker, age 48, of Ravia, Oklahoma, was sentenced to 5 years of probation and ordered to pay $78,939.50 in restitution for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Section 641.
The charge arose from an investigation by the Department of Veterans Affairs, Office of Inspector General. The defendant pled guilty in March, 2015.
The Indictment alleged that on or about October 16, 2009, and continuing until on or about May 1, 2014, within the Eastern District of Oklahoma, defendant MARNITA CAROL FOSTER a/k/a Marnita Carol Parker, did knowingly and willfully embezzle, steal, and purloin money of the Department of Veterans Affairs, a department or agency of the United States, namely, Department of Veterans Affairs Dependency and Indemnity Compensation payments to which she knew she was not entitled, having a value in excess of $1,000.00.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Raceland Man Pleads Guilty to Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMIE PLAISANCE, age 38, of Raceland, pled guilty today to a one-count Indictment for possession of child pornography.
On March 16, 2015, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations, arrested PLAISANCE during the execution of a federal search warrant at his Raceland home. Agents found PLAISANCE in possession of several items, including an Apple I-Touch and cellular phones that contained images depicting the sexual victimization of prepubescent children. PLAISANCE appeared in federal court on March 17, 2015, and was detained by a United States Magistrate Judge.
According to court records, PLAISANCE has a prior federal conviction for possession of child pornography.
Due to his prior conviction, PLAISANCE faces a mandatory minimum penalty of ten years imprisonment up to twenty years, followed by up to a life term of supervised release, and a $250,000 fine. U.S. District Judge Martin L.C. Feldman set sentencing for December 9, 2015.
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."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Overton Man Sentenced for Enticing a JuvenileRead the Press Release
United States Attorney Deborah R. Gilg announced that Paul Michael Tegeler, 68, formerly of Overton, Nebraska, was sentenced today in Lincoln, Nebraska, to 7 years in prison by United States District Judge John M. Gerrard for coercion and enticement of a juvenile. After serving his sentence, Tegeler will be required to remain on supervised release for 10 years and register as a sex offender.
In April of 2014, the Nebraska State Patrol was contacted by law enforcement officers with the Arapahoe County, Colorado, Sheriff’s Office with a report that Paul M. Tegeler had been identified as an individual who had placed an advertisement on Craigslist looking for a sex slave. Law enforcement officials, using the persona of a 13-year-old female child, began communicating with Tegeler. During the conversations Tegeler described sexually explicit conduct to the female child and invited the female child to meet him for sex. Also during those online conversations with the undercover deputy, Tegeler asked the female child to send him nude images. The investigation culminated when Tegeler sent the female child a one-way bus ticket to travel from her home in Colorado to Lexington, Nebraska, so Tegeler could then take her to his residence in Overton, Nebraska and have sex with her. Tegeler was arrested by the Nebraska State Patrol in May of 2014, when he arrived at the bus stop in Lexington, Dawson County, Nebraska, expecting to meet the child he had been communicating with.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol and the Arapahoe County Colorado Sheriff’s Office.
Orange County Sex Offender Convicted for Possessing and Receiving Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Ashley Anders Bishop (42, Orlando) guilty of one count of possessing and four counts of receiving child pornography. Bishop was previously convicted of a sex offense and, as a result, faces a mandatory minimum penalty of 10 years, up to 20 years, in federal prison for the possession count, and a mandatory minimum penalty of 15 years, up to 40 years, for each count of receiving child pornography. His sentencing hearing is scheduled for November 6, 2015. In reaching their decision, the jury made a special finding that certain exhibits depicted children under the age of 12.
Bishop was indicted on May 27, 2015.
According to the testimony presented at trial, on October 6, 2000, in Orange County, Bishop was convicted of attempting to commit lascivious molestation on a child under the age of 12 and was sentenced to a 15-year prison term. After his release, Bishop, a registered sex offender, was arrested on two different occasions, and each time had a cellphone in his possession. Both phones were searched pursuant to state search warrants and found to contain child pornography.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Orange County Department of Corrections. It is being prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.justice.gov/psc.
North Pole Man Indicted by Federal Grand Jury on Drug Trafficking and Firearm ChargesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a North Pole man was indicted by a federal grand jury on drug and firearm charges.
Ray Don Groskreutz, 38, of North Pole, Alaska, was named in a two-count indictment, which alleges that Groskreutz possessed with the intent to distribute methamphetamine and heroin on July 27, 2015, and knowingly and intentionally possessed a handgun in furtherance of that drug trafficking crime. The United States is also seeking forfeiture of the .380 caliber handgun seized from Groskreutz’s person on July 27, 2015, along with 14 firearms and numerous rounds of ammunition seized from his van.
Assistant U.S. Attorney Andrea W. Hattan, who presented the case to the grand jury, indicated that, for the methamphetamine and heroin charge, Groskreutz faces a mandatory minimum sentence of five years and up to 40 years in prison, a fine of $5,000,000, or both. The firearm charge carries a mandatory minimum sentence of five years imprisonment, which must be consecutive to the drug trafficking crime, a fine of $250,000, or both. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant. Groskreutz is currently in custody on unrelated State charges.
The Drug Enforcement Administration and the Alaska State Troopers conducted the investigation leading to the indictment in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Nazi Memorabilia Collector Convicted of Possessing More than 10 Thousand Pornographic imagesRead the Press Release
CORPUS CHRISTI, Texas – A 62-year-old resident of Corpus Christi has entered a guilty plea to possessing child pornography, announced U.S. Attorney Kenneth Magidson. Lewis Wayne Blackburn admitted in court today that he possessed more than 10 thousand images and videos containing the pornographic material.
The investigation into Blackburn began when detectives with the Corpus Christi Police Department - Internet Crimes Against Children Task Force (CCPD-ICAC) used peer-to-peer software to successfully download various files containing child pornography. The images were found to originate from an IP address associated with Blackburn. As a result of this information, Homeland Security Investigations (HSI) furthered the investigation and ultimately executed a search warrant at Blackburn’s residence in June 2015.
At the time of the search, authorities seized various electronic devices, on which forensic analysis ultimately revealed more than 9,900 images and more than 200 videos of child pornography. Blackburn admitted to using the peer-to-peer software to download the child pornography. The court also heard today that at the time of the search authorities noted Blackburn’s entire residence was covered in Nazi memorabilia and he possessed a fully-automatic WWII era .30 Caliber M2 Carbine gun.
Senior U.S. District Judge Hayden Head accepted the guilty plea today and set sentencing for Nov. 4, 2015. At that time, Blackburn faces up to 10 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Blackburn also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect and prohibit the use of the Internet.
HSI and CCPD-ICAC investigated the matter.
The case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Mississippi Phosphates Corp. Pleads Guilty to Clean Water Act Violation and Agrees to Transfer 320 Acres to Grand Bay National EstuaryRead the Press Release
Mississippi Phosphates Corp. (MPC), a Mississippi corporation which owned and operated a fertilizer manufacturing facility located on Bayou Casotte in Pascagoula, Mississippi, pleaded guilty today to a felony information charging the company with a criminal violation of the Clean Water Act, announced Principal Deputy Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Gregory K. Davis for the Southern District of Mississippi.
As part of the guilty plea, MPC admitted discharging more than 38 million gallons of acidic wastewater in August 2013. The discharge contained pollutants in amounts greatly exceeding MPC’s permit limits, resulting in the death of more than 47,000 fish and the closing of Bayou Casotte. MPC also admitted that, in February 2014, MPC discharged oily wastewater from an open gate on a storm water culvert into Bayou Casotte, creating an oily sheen that extended approximately one mile down the bayou from MPC.
MPC entered its guilty plea before Chief Judge Louis Guirola Jr. of the U.S. District Court for the Southern District of Mississippi. Because MPC is in bankruptcy and is obligated to assist in funding the estimated $120 million cleanup of its site, the court accepted the parties’ agreement for MPCto transfer 320 acres of property near to its Pascagoula plant to become a part of the Grand Bay National Estuarine Research Reserve, which is managed by the Mississippi Department of Marine Resources as part of the National Oceanic and Atmospheric Administration’s National Estuarine Research Reserve System.
“With this plea, Mississippi Phosphates has accepted responsibility for having discharged millions of gallons of industrial pollutants that killed tens of thousands of fish, damaged marine habitats and polluted recreational waterways,” said Principal Deputy Assistant Attorney General Hirsch. “Mississippi Phosphates has acknowledged its misconduct and has been sentenced to transfer property it owns that is adjacent to the Grand Bay National Estuary, thus protecting and potentially rehabilitating a vital marine resource that this company’s pollutant discharges had severely damaged.”
“When operators break the law, they can harm natural resources and communities such as those around Bayou Casotte and neighboring waterways,” Acting Special Agent in Charge said Andy Castro of EPA’s criminal enforcement program in Mississippi. “Over the years, state, local and federal governments have spent billions of dollars restoring the delicate Gulf Coast ecosystem. Illegally discharged wastewater compromises that hard work. EPA will continue to work with its law enforcement partners to hold companies fully accountable for their conduct, and to ensure they comply with laws that protect the public and from harm.”
As the felony information describes, when it was in full production, MPC manufactured diammonium phosphate fertilizers from phosphate rock which it received by ship and rail and from sulphur which was piped to its facility from a neighboring oil refinery. In its production of fertilizer, MPC generated a variety of pollutants and hazardous wastes. MPC has been regulated under a number of environmental statutes that govern the production, storage and release of a variety of air and water pollutants as well as hazardous wastes. In the manufacturing process, strong acids and ammonia were produced. If improperly discharged, acids and ammonia can be highly toxic to fish and to other forms of marine life. MPC was obligated to comply with permits issued by the Mississippi Department of Environmental Quality (MDEQ) under the authority of the Environmental Protection Agency (EPA) as prescribed by the Clean Water Act. These permits regulated the storage and discharge of MPC’s stormwater and wastewater, prescribing the circumstances under which they could be discharged into Bayou Casotte and limiting the concentration and quantity of the pollutants they could contain.
As detailed in the felony information, since January 2000, MPC has been cited by MDEQ in numerous notices for hundreds of violations of its Clean Water Act permit for discharging wastewater exceeding its pollutant limits. MPC was also cited for its failure to maintain adequate wastewater storage capacity, its discharge of untreated wastewater from its sulfuric acid plant directly through MPC’s main outfall, its combined release of untreated and undertreated stormwater and process wastewater from other outfalls, and its failure to implement required remedial measures to prevent the pollutant discharges and environmental harm it has caused for decades. An April 2005 discharge resulted in the release of more than 17 million gallons of highly acidic wastewater into waterways adjacent to its facility, including Bayou Casotte, Tillman Creek and Bangs Lake of the Grand Bay National Estuarine Research Reserve. These waters are some of the most productive nurseries for aquatic species on the Gulf Coast. MPC’s massive discharge of pollutants resulted in the death of thousands of fish and other forms of marine life as well as the destruction of marsh grass, trees and shrubs. In the years following this environmental catastrophe, in spite of MDEQ’s orders and MPC’s remedial proposals, MPC never implemented the measures necessary to prevent the release of pollutants from its facility and the discharge of an even larger torrent of wastewater destroying even more marine life.
U.S. Attorney Davis praised the efforts of EPA’s Criminal Investigation Division, for its diligent work in the investigation of this matter. Senior Trial Attorney Jeremy F. Korzenik of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Gaines Cleveland are the prosecutors in charge of the case.
Milwaukee Man Sentenced to 10 Years in Prison for Receiving Child PornographyRead the Press Release
WASHINGTON – A Milwaukee man was sentenced today to 10 years in prison for receiving more than one million images of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin.
Jeffrey Feldman, 48, of Milwaukee, pleaded guilty in April 2015 to one count of receipt of child pornography. The sentence was imposed by U.S. District Judge Lynn S. Adelman of the Eastern District of Wisconsin.
According both to admissions made in connection with his guilty plea and to information introduced at sentencing, in January 2013, FBI special agents detected Feldman sharing files containing child pornography over the Internet via a peer-2-peer network. During a subsequent search of Feldman’s residence, agents recovered numerous encrypted computers and electronic storage devices. And forensic analyses of those devices revealed that Feldman had received over one million files that included child pornography images and videos.
The case was investigated by the FBI. The case was prosecuted by Trial Attorney Jeffrey Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Karine Moreno-Taxman of the Eastern District of Wisconsin.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # #
15-1015
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Millington Reserve Officer Indicted on Child Pornography ChargesRead the Press Release
Memphis, TN – A 66-year-old Millington reserve police officer has been indicted on multiple charges for possessing and producing child pornography. The indictment was announced by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
According to the indictment, between July 2013 and July 2015, Rickie Friar created various images and videos of six minor females engaging in sexually explicit conduct. At least one of the minors was under the age of 12 years old at the time.
Over the aforementioned time period, Friar also transported one of the minor females between Tennessee and Oklahoma for the purpose of engaging in sexual activity. Furthermore, he downloaded child pornographic images from the Internet and stored them on his Compaq computer, according to the indictment.
The Shelby County District Attorney's Office has also filed charges alleging Friar had sexual contact with minor females. He has been in state custody since his arrest in July.
Friar has been indicted federally on one count of transporting a minor for criminal sexual activity; 10 counts of production of child pornography; and one count of child pornography possession.
• Friar faces a minimum sentence of 10 years imprisonment if convicted of transporting a minor for criminal sexual activity.
• Friar faces a minimum sentence of 15 years imprisonment for each count of production of child pornography.
• Friar faces up to 20 years imprisonment if convicted of possession of child pornography.
• Friar faces up to $250,000 in fines per offense of conviction.
The case is being investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Debra Ireland is prosecuting the case on behalf of the government.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Middletown Man Sentenced to 84 Months' Imprisonment for Receipt of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Middletown man was sentenced today in U.S. District Court in Harrisburg to 84 months’ imprisonment by United States District Judge John E. Jones, III for receipt of child pornography.
According to United States Attorney Peter Smith, the defendant, Steven Alan Shepherd, age 30, previously pleaded guilty to the receipt of child pornography in January 2015. Judge Jones also ordered Shepherd to pay restitution in the amount of $135,000.
The charges resulted from a search of Shepherd’s home on May 1, 2014, where over 21,000 images and 909 video files of child pornography were located and seized. Shepherd received the material via a computer in 2010.
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."
This case was investigated by the United States Postal Inspection Service, Homeland Security Investigations and the Pennsylvania State Police and prosecuted by Assistant United States Attorney Daryl F. Bloom.
# # #
Memphis Pastor Indicted on Child Pornography ChargesRead the Press Release
Memphis, TN – A Memphis pastor has been indicted on child pornography possession charges. The indictment was announced by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
According to the indictment, between August 2014 and May 2015, Demarcus Smith coerced a male under the age of 18 to photograph himself engaging in sexually explicit conduct. Smith, 32, asked the minor male to send him sexual images via cellphone on numerous occasions.
Smith is a pastor at Oak Hill Missionary Baptist Church in South Memphis. He’s also a member of the Baptist Ministerial Association.
He has been charged with one count of coercion and solicitation of a minor; one count of production of child pornography; and one count of receipt of child pornography.
• Smith faces a minimum sentence of 10 years imprisonment if convicted of coercion/solicitation of a minor.
• Smith faces a minimum sentence of 15 years imprisonment if convicted of production of child pornography.
• Smith faces up to 20 years imprisonment if convicted of receipt of child pornography
• Smith faces up to $250,000 in fines per offense of conviction.
The case is being investigated by the Memphis Child Exploitation Task Force. The collective is comprised of Federal Bureau of Investigation; Homeland Security
Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the United States Secret Service.
Assistant U.S. Attorney Debra Ireland is prosecuting the case on behalf of the government.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Mayfield Heights man accused of embezzling $677,000 from his employerRead the Press Release
A Mayfield Heights man is accused of stealing more than $677,000 from his former employer, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Geno Trunzo, 51, was indicted on one count of making or possessing forged securities of private entities and four counts of money laundering.
Trunzo worked for a company that engaged in the retail sale of mattresses and bedding supplies from 2004 until December 2014. Trunzo was promoted to be the company’s controller in late 2005. In this role, he managed the company’s accounts payable , was responsible for paying the company’s business expenses and had access to the company’s books, records, checks and credit lines, according to the indictment.
Trunzo forged and created approximately 431 checks drawn on the company’s accounts by affixing, without authorization, a stamped image of the name of an authorized signer of the checks. Trunzo made the checks payable to himself and to third-party payees for his personal benefit, causing a loss to the company of approximately $677,131, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mayfield Heights man accused of embezzling $677,000 from former employerRead the Press Release
A Mayfield Heights man is accused of stealing more than $677,000 from his former employer, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Geno Trunzo, 51, was indicted on one count of making or possessing forged securities of private entities and four counts of money laundering.
Trunzo worked for a company that engaged in the retail sale of mattresses and bedding supplies from 2004 until December 2014. Trunzo was promoted to be the company’s controller in late 2005. In this role, he managed the company’s accounts payable , was responsible for paying the company’s business expenses and had access to the company’s books, records, checks and credit lines, according to the indictment.
Trunzo forged and created approximately 431 checks drawn on the company’s accounts by affixing, without authorization, a stamped image of the name of an authorized signer of the checks. Trunzo made the checks payable to himself and to third-party payees for his personal benefit, causing a loss to the company of approximately $677,131, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney, FBI Assistant Director, and NYPD Commissioner Announce Arrest of Man for Hoax Threat to Blow up the Statue of LibertyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that JASON PAUL SMITH was arrested today in Lubbock, Texas, for communicating a hoax threat to bomb the Statue of Liberty that precipitated the evacuation of more than 3,200 people from Liberty Island in New York Harbor. SMITH is expected to be presented later today in federal court in the Northern District of Texas.
As alleged in the criminal Complaint[1] unsealed today in Manhattan federal court:
On April 24, 2015, SMITH initiated a call to the emergency 911 system (the “911 Call”) from his iPad using a service that assists hearing-impaired individuals with making and receiving telephone calls (the “Service”). In the 911 Call, SMITH identified himself as “Abdul Yasin,” described himself as an “ISI terrorist,” and threatened that “we” are preparing to “blow up” the Statue of Liberty.
Law enforcement officers responded to the threat that SMITH conveyed in the 911 Call, and conducted a sweep of the areas in and around the Statue of Liberty and Liberty Island with the aid of canine units trained to detect explosives. Canine units alerted to the area of the visitor lockers at the base of the Statue of Liberty, prompting law enforcement officers and emergency responders to evacuate the more than 3,200 people who were on Liberty Island at the time. Subsequently, the threat conveyed by SMITH was determined to be unfounded.
The iPad registered in SMITH’s name has used the Service to make other 911 calls, including at least two calls in May 2015 from a user who identified himself as “Isis allah Bomb maker” and who threatened to attack Times Square and kill police officers at the Brooklyn Bridge.
* * *
SMITH, 42, of Harts, West Virginia, is charged with one count of conveying false and misleading information and hoaxes, which carries a maximum sentence of five years in prison. The maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD. Mr. Bharara also thanked the United States Park Police for its assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney David Zhou is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the text of the Complaint and the description of the Complaint herein constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Guilty Pleas of Three Defendants Who Conspired to Import 100 Kilgrams of North Korean Methamphetamine into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the guilty pleas of YE TIONG TAN LIM, a citizen of Taiwan, ALLAN KELLY REYES PERALTA, a citizen of the Philippines, and ADRIAN VALKOVIC, a citizen of the Czech Republic, to conspiring to import 100 kilograms of North Korean-produced methamphetamine into the United States. TAN LIM, PERALTA, and VALKOVIC were arrested in September 2013, along with co-defendants Scott Stammers and Philip Shackels, following a long-term investigation by the Drug Enforcement Administration (“DEA”). VALKOVIC pled guilty on August 5, 2015, before U.S. District Judge Andrew L. Carter. PERALTA pled guilty on August 18, 2015, and TAN LIM pled guilty August 19, 2015, both before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “Ye Tiong Tan Lim, Kelly Reyes Peralta, and Adrian Valkovic’s conspiracy reads much like the script of an action movie - outlaw biker gangs providing protection and logistics for a U.S.-bound load of North Korean methamphetamine. But the plan was all too real, and the target for the drugs they planned to import were the streets of the United States. Thanks to the expert work of the DEA and prosecutors in my office, the conspiracy was thwarted and the drug traffickers’ mission made impossible.”
According to the allegations contained in the Indictment, the plea agreements for TAN LIM, PERALTA, and VALKOVIC, and statements made in court proceedings:
In 2012, TAN LIM and PERALTA, members of a criminal organization operating in Hong Kong and the Philippines, sold more than 30 kilograms of methamphetamine that had been produced in North Korea. Stammers and Shackels were responsible for storing the methamphetamine after it had been sold by TAN LIM and PERALTA. This North Korean methamphetamine was later seized by law enforcement agents in Thailand and in the Philippines and tested at more than 99% pure.
In 2013, TAN LIM and PERALTA again agreed to provide North Korean methamphetamine, this time agreeing to supply 100 kilograms of the methamphetamine to confidential sources working at the direction of the DEA (the “CSes”) for importation to the United States. As TAN LIM explained, his criminal organization was the only one currently able to obtain methamphetamine from North Korea: “Because before, there were eight [other criminal organizations]. But now only us, we have the NK [i.e., North Korea] product. . . . [I]t’s only us who can get from NK.” TAN LIM further explained that, because of recent international tensions, the North Korean government had destroyed some methamphetamine labs, leaving behind only the labs of TAN LIM’s organization: “And all the, the NK government already burned all the labs. Only our labs are not closed. . . . To show Americans that they [the North Korean government] are not selling it any more, they burned it. Then they transfer to another base.” In anticipation of these geo-political complications, TAN LIM noted that his organization had stockpiled one ton of North Korean methamphetamine in the Philippines for storage.
As a prelude to the 100-kilogram methamphetamine deal, TAN LIM and PERALTA arranged to have a sample of the drug delivered to Shackels, who sent that sample (along with a second sample from another supplier) to an address from which the methamphetamine samples would be sent to the United States. These two methamphetamine samples tested at more than 98% and 96% pure.
TAN LIM and PERALTA agreed to deliver the 100 kilograms of North Korean methamphetamine in Thailand, from where they understood it would be shipped to the United States by boat. In preparation, TAN LIM and PERALTA arranged for a “dry run,” sending a shipping container of tea leaves from the Philippines to Thailand in order to test delivery channels that would later be used for the shipment of methamphetamine.
VALKOVIC, Stammers, and Shackels agreed to provide security, transportation, and storage for the 100 kilograms of methamphetamine once it arrived in Thailand. VALKOVIC, the Sergeant-at-Arms of the Outlaw Motorcycle Club (“OMC”) in Thailand, was to be the “ground commander,” and would supervise an armed crew of OMC members that would provide security for the methamphetamine. Stammers and Shackels were to arrange for the 100 kilograms to be taken to a warehouse, counted, re-packaged, and delivered to a marina in Thailand, to be transferred to a boat that would deliver the methamphetamine to the United States.
In September 2013, TAN LIM and PERALTA traveled to Thailand in order to receive payment for the 100 kilogram methamphetamine deal. TAN LIM, PERALTA, VALKOVIC, Stammers, and Shackels were arrested by Thai law enforcement on September 25, 2013.
* * *
As a result of their guilty pleas, TAN LIM, 55, PERALTA, 43, and VALKOVIC, 45, each face a maximum possible term of life in prison and a mandatory term of 10 years in prison. The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants will be determined by the judge. VALKOVIC is scheduled to be sentenced by Judge Carter on November 6, 2015. Sentencing dates have not yet been scheduled for TAN LIM and PERALTA.
The remaining defendants, Stammers, 46, and Shackels, 32, are charged with conspiracy to import methamphetamine into the United States. Trial is scheduled to commence before Judge Carter on September 21, 2015.
The guilty pleas were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division, Bilateral Investigations Unit; and DEA’s Bangkok, Manila, Ghana, Pretoria, Bucharest, Nassau, and Copenhagen Country Offices. Mr. Bharara also thanked the Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration; the Royal Thai Attorney General’s Office; the Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General’s Office; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs for their support and assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Anna Skotko, Michael D. Lockard, and Emil Bove are in charge of the prosecution.
The charges against Stammers and Shackels are merely accusations and these defendants are presumed innocent unless and until proven guilty.
Man Sentenced to 37 Months in PrisonRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on Tuesday sentenced Juan Carlos Seguinot-Martinez, 34, of Puerto Rico, to 37 months in prison and three years of supervised release for Possession of Cocaine with Intent to Distribute, United States Attorney Ronald W. Sharpe announced. Judge Lewis also ordered Martinez to pay a $1,500 fine and $500 community restitution.
In April, Martinez pleaded guilty to one count of Possession of Cocaine with Intent to Distribute. Court records show that in December 2014, Martinez purchased and attempted to mail approximately one kilogram, approximately 2.2 pounds, of cocaine from St. Croix to Buffalo, New York.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland
Security Investigations, and was prosecuted by Assistant U.S. Attorney Rami S. Badawy
Luzerne County Man Charged with Federal Heroin Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Luzerne County man was indicted late yesterday by a federal grand jury in Scranton for heroin trafficking.
According to United States Attorney Peter Smith, the indictment charges Pedro Noriega, age 42, of Plymouth, Luzerne County, with possession with intent to distribute heroin.
The charge stems from an investigation in April 2015 which investigators arranged to make a purchase of heroin from Noriega and then obtained a search warrant for Noriega’s residence on West Main Street in Plymouth, and allegedly seized approximately 495 bags of suspected heroin, 19 grams of raw heroin, packaging materials and drug paraphernalia from a bedroom in the residence.
The investigation was conducted by the Luzerne County Drug Task Force, the Bureau of Narcotics Investigations (BNI) of the Pennsylvania Office of Attorney General, and the Bureau of Alcohol, Tobacco and Firearms (ATF). Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to twenty years in prison, 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.
###
Local, State and Federal Law Enforcement Cooperation Leads to Indictments of Four Alleged Armed Drug-Dealers in Luzerne CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that, as the result of ongoing cooperation among local, state and federal law enforcement agencies, indictments were returned late yesterday by a grand jury in Scranton charging four men in separate cases with possession of firearms in connection with drug-dealing activity in Luzerne County communities.
The charges were part of an ongoing cooperative effort by federal, state and local law enforcement against violent crime in Luzerne County.
According to United States Attorney Peter Smith, on February 4, 2015, Jeffery Stevens, 32, of Wilkes-Barre, Pennsylvania, was arrested by agents of the Pennsylvania Attorney General’s Bureau of Narcotics Investigations following an alleged heroin transaction at a hotel room in Plains Township. At the time of his arrest, the defendant was allegedly in possession of heroin, a .380 semi-automatic pistol with an obliterated serial number, a 9mm semi-automatic pistol with an obliterated serial number, a .357 revolver, 135 rounds of ammunition and $1,410 in United States currency.
On June 12, 2015, Dennis Couvertier, 43, of Luzerne, was arrested by Kingston Police detectives allegedly following the third of three cocaine transactions that took place between June 3 and June 12. At the time of his arrest, Couvertier was allegedly in possession of a .45 caliber semi-automatic pistol, a 9 mm semi-automatic pistol, 43 rounds of ammunition and $2,916 in United States currency.
On July 11, 2015, Joshua Harris, 26, of Newark, New Jersey, was arrested for allegedly distributing marijuana and possessing marijuana with the intent to distribute it following a routine traffic stop by the Edwardsville Police. At the time of his arrest, Harris—an alleged felon who is not permitted to possess firearms—was allegedly in possession of a Chinese assault-style rifle with 30-round magazines, 50 rounds of ammunition and $669 in United States currency.
The investigation of these cases was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives working in conjunction with the Attorney General’s Bureau of Narcotics Investigations, the Kingston Police and the Edwardsville Police. Prosecution is assigned to Assistant United States Attorney Peter Hobart.
A fourth Indictment charges Aaron Bangaroo, age 35, of Kingston, with possession with intent to distribute heroin and cocaine, two counts of distribution of heroin, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
The charges stem from an investigation in which police made two purchases of heroin from Bangaroo and then obtained a search warrant for Bangaroo’s residence, located on South Gates Avenue in Kingston, and seized heroin, cocaine, two firearms and ammunition from a bedroom in the residence.
The investigation was conducted by the Kingston Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Couvertier faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $1,250,000. Harris faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $500,000. Stevens faces a minimum term of 5 years and up to life imprisonment as well as fines totaling $1,500,000. Bangaroo faces a minimum term of 5 years and up to life imprisonment as well as a $250,000 fine.
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.
Under the Federal Sentencing Guidelines, the Judge is 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.
# # #
Lithia, Georgia, Man Sentenced to 40 Months, $148,000 Restitution for Possession of Counterfeit SecuritiesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TORY DERREL LARKINS, age 30, of Lithia, Georgia, was sentenced to 40 months imprisonment, followed by 36 months of supervised release for POSSESSION OF COUNTERFEIT SECURITIES, in violation of Title 18, United States Code, Section 513(a). The defendant was also ordered to pay $148,975.03 in restitution.
The charge arose from an investigation by the Oklahoma Highway Patrol and the United States Secret Service. The defendant pled guilty in April, 2015.
The Indictment alleges that on or about October 9, 2014, within the Eastern District of Oklahoma, TORY DERREL LARKINS, defendant herein, knowingly possessed counterfeit securities, to wit: counterfeit checks purported to be genuine checks of MTW Creations, LLC, drawn on an account at Bank of America, an organization which operates in interstate commerce, with intent to deceive another.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Lindsey Man Sentenced to 15 Months, $81,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CODY DILLON CORDELL, age 27, of Lindsey, Oklahoma, was sentenced to 15 months imprisonment, followed by 3 years of supervised release for WIRE FRAUD, in violation of Title 18, United States Code, Section 1343. The defendant was also ordered to pay $81,343.24 in restitution.
The charges arose from an investigation by the Federal Bureau of Investigation. The defendant pled guilty in April, 2015.
The Information alleged that on or about March 13, 2013 to on or about March 15, 2013, within the Eastern District of Oklahoma and elsewhere, the defendant, CODY DILLON CORDELL devised and intended to devise a scheme and artifice to defraud Action Petroleum Services Corp. to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
First Assistant United States Attorney Doug Horn represented the United States.
Kenner Man Pleads Guilty to Possessing Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN GAETA, age 41, of Kenner, pled guilty today to a one-count Bill of Information for crimes involving the possession of child pornography.
According to court records, on November 25, 2014, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) executed a federal search warrant at GAETA’s Kenner home. HSI agents determined Gaeta used Peer to Peer file sharing programs to possess approximately 120 videos and 500 images depicting the sexual victimization of children.
GAETA faces a maximum penalty of twenty years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender pursuant to the Sex Offender Registration Notification Act. U.S. District Judge Kurt D. Engelhardt set sentencing for November 18, 2015.
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."
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Jury Finds Chicago Man Guilty of Knowingly Transporting a Minor with Intent to Engage in Sexual ActivityRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that David S. Duffin, age 44, of Chicago, Illinois, was found guilty on one count of Knowingly Transporting a Minor in Interstate Commerce with Intent to Engage in Sexual Activity following a three day jury trial in Fayetteville. The Honorable Timothy L. Brooks presided.
U.S. Attorney Eldridge stated, “This defendant used the internet to target a child, abducted her, and sexually abused her while traveling through several states. This conduct is frightening, and today he has been held accountable. We thank the jury for their attention to this case, as well as the team of law enforcement and prosecutors for their work. Those who seek out and prey on children threaten the core of our communities. I am proud of the work we have done prosecuting defendants such as this, and we should continue to remain focused on this horrific criminal activity.”
According to evidence presented at the trial, on April 4, 2015, a 13-year-old female was reported missing from her home in Chicago, Illinois. The Chicago Police Department later developed evidence that the minor was with the defendant, David Duffin, who had driven her from her home in Chicago, to a motel in Bentonville, Arkansas. On April 9, 2015, the Benton County Sheriffs’ Department located Duffin and the minor in Benton County. After being interviewed at the Benton County Sherriff’s department, Duffin admitted to meeting the minor by pretending to be a teenage boy online, and then engaging in sexual intercourse with the minor both in Chicago and later after bringing her to Arkansas.
Duffin was indicted by a Federal Grand Jury on June 3, 2015. Sentencing will be held at a later date. The maximum penalty is not less than 10 years imprisonment or for life, not more than $250,000.00 fine, or both. The defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violations.
This case was investigated by the Federal Bureau of Investigation (FBI), the Benton County Sheriff’s Office, and the Chicago Police Department. Assistant United States Attorney Kyra Jenner and Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Jury Convicts New Jersey Man of Illegally Trafficking in PaddlefishRead the Press Release
A New Jersey man was convicted in federal court today of illegally trafficking in paddlefish caviar after being caught in stemming from an undercover operation in the Warsaw, Missouri, area, announced the Department of Justice’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Western District of Missouri.
In support of Missouri’s paddlefish conservation efforts, the U.S. Fish and Wildlife Service and the Missouri Department of Conservation conducted an undercover investigation known as “Operation Roadhouse,” centered on an area known as the Roadhouse in Warsaw. As part of the operation, state and federal officers operated a paddlefish snagging business during the 2011 and 2012 paddlefish seasons.
Petr Babenko, 45, of Vineland, New Jersey, was found guilty of participating in a conspiracy to illegally buy and sell paddlefish and one count of illegally trafficking in paddlefish in violation of the Lacey Act. Babenko owned European International Foods, a specialty grocery business in Vineland.
Codefendant Bogdan Nahapetyan, 37, an Armenian citizen residing in Lake Ozark, Missouri, pleaded guilty on Nov. 12, 2013, to illegally trafficking in paddlefish.
Neither Babenko nor Nahapetyan had a valid roe fish dealer permit. Evidence introduced during the trial indicated that they possessed paddlefish and paddlefish eggs in excess of the Missouri possession limits and transported the paddlefish and paddlefish eggs across state lines.
For example, on April 24, 2012, Babenko and Nahapetyan negotiated with the undercover investigators to purchase 80 pounds of paddlefish eggs and five female paddlefish for $4,625. While loading the purchased caviar and female paddlefish into their van, they placed an additional order with the undercover investigators for more fish and caviar.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Missouri, deliberated for about 35 minutes before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Aug. 17, 2015.
In separate cases that arose from the undercover investigation, five additional defendants have pleaded guilty to trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act: Fedor Pakhnyuk, 41, of Hinsdale, Illinois, Felix Baravik, 50, and Arkadiy Lvovskiy, 54, both of Aurora, Colorado, Dmitri Elitchev, 49, of Centennial, Colorado, and Artour Magdessian, 48, of Lone Tree, Colorado.
Under federal statutes, Babenko is subject to a sentence of up to ten years in federal prison without parole, plus a fine up to $500,000. Babenko must forfeit to the government a 2011 Mercedes Benz cargo van that was used to commit the offense. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The Lacey Act is a federal statute which makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. The retail value of the caviar is estimated to be between $30,000 and $50,000. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
This case is being prosecuted by Senior Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri. It was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation.
Jury Convicts New Jersey Man of Illegally Trafficking in PaddlefishRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New Jersey man was convicted in federal court today of illegally trafficking in paddlefish caviar after being caught in an undercover operation in the Warsaw, Mo., area.
In support of Missouri’s paddlefish conservation efforts, the U.S. Fish and Wildlife Service and the Missouri Department of Conservation conducted a covert investigation, “Operation Roadhouse,” centered on an area known as the Roadhouse in Warsaw. As part of the covert operation, state and federal officers operated a paddlefish snagging business during the 2011 and 2012 paddlefish seasons. Covert officers also sold paddlefish to people who were interested in buying them.
Petr Babenko, 45, of Vineland, New Jersey, was found guilty of participating in a conspiracy to illegally buy and sell paddlefish and one count of illegally trafficking in paddlefish in violation of the Lacey Act. Babenko owned European International Foods, a specialty grocery business in Vineland.
Co-defendant Bogdan Nahapetyan, 37, an Armenian citizen residing in Lake Ozark, Mo., pleaded guilty on Nov. 12, 2013, to illegally trafficking in paddlefish.
Neither Babenko nor Nahapetyan had a valid roe fish dealer permit. Evidence introduced during the trial indicated that they possessed paddlefish and paddlefish eggs in excess of the Missouri possession limits, and transported the paddlefish and paddlefish eggs across state lines. The retail value of the caviar is estimated to be between $30,000 and $50,000.
For example, on April 24, 2012, Babenko and Nahapetyan negotiated with the undercover investigators to purchase 80 pounds of paddlefish eggs and five female paddlefish for $4,625. While loading the purchased caviar and female paddlefish into their van, they placed an additional order with the undercover investigators for more fish and caviar.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for less than an hour before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, Aug. 17, 2015.
In separate cases that arose from the undercover investigation, five additional defendants have pleaded guilty to trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act: Fedor Pakhnyuk, 41, of Hinsdale, Ill.; Felix Baravik, 50, and Arkadiy Lvovskiy, 54, both of Aurora, Colo.; Dmitri Elitchev, 49, of Centennial, Colo.; and Artour Magdessian, 48, of Lone Tree, Colo.
Under federal statutes, Babenko is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $500,000. Babenko must forfeit to the government a 2011 Mercedes Benz cargo van that was used to commit the offense. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
The Lacey Act
The Lacey Act is a federal statute which makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.
Paddlefish Trafficking
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
This case is being prosecuted by Senior Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri. It was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation.
Jury Convicts KC Man of PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of his role in a conspiracy to distribute PCP as well as a money-laundering conspiracy.
Antonio Laregus Robertson, 37, of Kansas City, was found guilty of the charges contained in a March 27, 2013, federal indictment.
Evidence presented during the trial indicated that Robertson participated in a conspiracy to distribute at least kilogram of PCP from Jan. 1, 2007, to March 13, 2013, as well as a conspiracy to conduct financial transactions that involved the proceeds of illegal drug trafficking. Cash and other items obtained from drug sales were used to purchase additional drugs for sale, which promoted the drug-trafficking conspiracy.
Robertson was among 20 defendants charged in the indictment, of whom 19 pleaded guilty and four have been sentenced.
According to the indictment, at least 10 law enforcement-controlled purchases of PCP, cocaine and crack cocaine were conducted with at least five of the defendants. At least 10 arrests or searches of co-conspirators occurred where PCP, cocaine or crack was recovered, the indictment says, and on multiple occasions during the conspiracy, defendants were found in possession of hundreds or thousands of dollars in cash, with no known legitimate income.
Robertson purchased PCP from co-defendant Walter Deandre Sorrells, also known as “Juice,” “Waterboy,” and “Walt,” 39, of Blue Springs, Mo. Sorrells pleaded guilty on Aug. 13, 2015, to his role in the drug-trafficking and money-laundering conspiracies. Sorrells admitted that he purchased large quantities of PCP from a source in California and re-sold it in smaller quantities in the Kansas City metropolitan area. Thirteen controlled drug purchases, totaling well in excess of one kilogram of PCP, were made directly with Sorrells. Additionally, at least two shipments of PCP (and other controlled substances) were taken by law enforcement before they were delivered to Sorrells and containers of another shipment were recovered from Sorrells. These shipments, in total, exceed one kilogram of PCP. Under the terms of his plea agreement, Sorrells will be sentenced to 20 years in federal prison without parole.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about seven hours before returning the guilty verdicts to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, Aug. 17, 2015.
Under federal statutes, Robertson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
All of the co-defendants are severally and jointly liable to forfeit to the government $814,000, which was received in exchange for the unlawful distribution of PCP, cocaine or crack cocaine. According to the indictment, that is based upon a conservative street price of $200 per ounce of PCP (3,099 ounces distributed), $1,000 per ounce of cocaine (129 ounces distributed) and $1,100 per ounce of crack cocaine (60 ounces distributed).
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Patrick C. Edwards. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI and IRS-Criminal Investigation.
Juneau Resident Sentenced to 15 Years for Drug Trafficking and Possession of A Firearm in Furtherance of A Drug Trafficking CrimeRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a former Juneau resident was sentenced to 180 months of imprisonment for drug trafficking and possession of a firearm in furtherance of a drug trafficking crime.
William Byron Benedict, 46, a resident of Juneau, Alaska, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess in Anchorage to 180 months of imprisonment followed by a five year term of supervised release. On April 6, 2015, Benedict pled guilty to one count of drug trafficking conspiracy and one count of being in possession of a firearm in furtherance of a drug trafficking crime.
According to Assistant U.S. Attorney Jack Schmidt, who prosecuted the case, on June 2, 2013, Benedict was contacted by DEA agents at the Seattle-Tacoma Airport while attempting to board a flight to Juneau, Alaska. The agents seized 64.9 grams of actual methamphetamine and 336.8 grams of heroin from Benedict. On April 22, 2014, law enforcement executed an arrest warrant at Benedict’s residence in Juneau and subsequently discovered multiple loaded firearms and eight grams of actual methamphetamine and 155.4 grams of heroin. Law enforcement also seized $12,272 in U.S. currency that was obtained from the sale of narcotics, which Benedict was required to forfeit as part of his plea, along with the firearms seized at his residence.
In sentencing Benedict, Judge Burgess noted the seriousness of the crime, the defendant’s extensive criminal history, deterrence of the defendant and others, and a need to protect the public as the reasons for the sentence he imposed.
Ms. Loeffler commended the Drug Enforcement Administration, Federal Bureau of Investigation, Port of Seattle Police Department, and Juneau Police Department – Metro Drug Unit who conducted the investigation leading to the successful prosecution in this case.
Jonesboro Woman Pleads Guilty to Lying and Buying of Firearm Used to Kill Omaha, Nebraska Police OfficerRead the Press Release
ATLANTA - Jalita Jenera Johnson has pleaded guilty to lying during the purchase of a gun and magazine, saying it was for her, when in fact she purchased the gun for her convicted felon boyfriend, Marcus Wheeler. Wheeler later used the gun to kill an Omaha, Nebraska, police officer who was attempting to serve a warrant for his arrest.
“Laws which prevent convicted felons from buying guns are designed to protect the public,” said U.S. Attorney John Horn. “This defendant helped a convicted felon circumvent those laws. The tragic consequences and loss of life in this case reinforces the reason we have such strict laws in place.”
“The plea today is another reminder that ATF will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Special Agent in Charge Carl Walker.
According to U.S. Attorney Horn, the charges and other information presented in court: In April 2015, Jalita Jenera Johnson bought a Glock semiautomatic firearm, a 50‑round drum magazine, and ammunition from a pawnshop in Jonesboro, Georgia. When Johnson bought the firearm, she was required to fill out a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473. That form requires the purchaser of the firearm to disclose who the true buyer or transferee of the firearm is. The defendant stated on the form that she was the true buyer. However, Johnson was, in fact, buying the firearm for her boyfriend, Marcus Wheeler, a convicted felon who could not buy the gun for himself.
Wheeler provided Johnson with the money to buy the gun and magazine and directed the defendant on which gun and magazine to buy. In May 2015, using the gun and magazine that Johnson bought for him, Wheeler got into an armed confrontation with the City of Omaha Police Department in Omaha, Nebraska, that resulted in the officer’s death. Wheeler was also killed during the shootout.
Sentencing for Jalita Jenera Johnson, 26, of Jonesboro, Georgia, is scheduled for November 2, 2015, at 2:00 p.m., before United States District Judge Eleanor L. Ross.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Mary L. Webb is prosecuting the case.
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.
Jared Fogle charged with child pornography distribution and repeatedly engaging in commercial sex acts with minorsRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the filing of formal charges against Jared S. Fogle for distributing and receiving child pornography, and conspiring to do so, as well as repeatedly traveling to engage in commercial sex acts with underage minors. Fogle, 37, of Zionsville, Indiana, was charged by Information and has notified the U.S. District Court that he will plead guilty to all charges. He had his initial appearance before a magistrate judge earlier today and was released on home detention with GPS monitoring and other conditions. The case was the result of a joint state, local and federal investigation by the Indiana State Police, the Indianapolis Metropolitan Police Department, the Federal Bureau of Investigation, and the Indiana Internet Crimes Against Children Task Force, with assistance from the Marion County Prosecutor’s Office.
According to Minkler, “Mr. Fogle has admitted in court pleadings that he received child pornography involving multiple minors living in Indiana and other countries over the course of several years. His child pornography crime began when he learned that alleged co-conspirator Russell Taylor was sexually exploiting a 14 year old girl in March 2011. At that time, Mr. Fogle did nothing to stop the abuse or report it to authorities, but chose instead to receive and repeatedly view the child pornography involving the girl and those other minors produced by his alleged co-conspirator in the years that followed. It total, Mr. Fogle admitted in court pleadings filed today that his actions caused the sexual victimization of a total of 12 minors in Indiana before his co-conspirator’s arrest in April 2015. He preyed on minor victims who did not have the ability to protect themselves.”
Minkler further explained, “Mr. Fogle has also admitted in court papers that he repeatedly traveled to other states to engage in commercial sex acts with victims he knew were underage minors. This criminal conduct began years before his child pornography activities and did not involve Taylor. Such activities have devastating effects in the lives of minors subjected to such sex trafficking. Federal law provides strong punishment for engaging in commercial sex acts with minors under the age of 18 years or producing child pornography involving any minor under the age of 18 years. We will remain steadfast in our dedication to protecting children from offenders like him.”
According to the detailed charging Information and the admitted facts contained in Plea Agreement, between March of 2011, and January of 2015, Russell C. Taylor (who was federally charged in a separate case in May 2015) allegedly produced child pornography involving 12 minor victims in Indiana. Taylor secretly produced the images and videos of these minors, who were between 9 and 16 years old. The victims were filmed in Taylor’s house using multiple hidden cameras which were concealed in clock radios and positioned so they would capture the victims changing clothes, showering, bathing or engaging in other activities. Taylor allegedly then shared some of these images and videos with Fogle, who knew the victims were minors. During conversations and text messages with Taylor, Fogle made comments approving of the activity and discussed some of the minors by name. However, Fogle did not receive all of the material Taylor allegedly produced.
Fogle also allegedly received commercially produced child pornography videos from Taylor, who allegedly obtained the material through internet sources. The videos were made outside of the United States by other persons and showed the sexual abuse of victims as young as six years old. Fogle viewed some of these video files on a computer provided by Taylor as well as through text messages and a thumb drive. On one occasion, Fogle allegedly displayed some of these videos to another person using a thumb drive provided by Taylor.
From 2007 until June of 2015, Fogle repeatedly engaged in Internet social networking and traveled to other states for the purpose of engaging in commercial sexual acts with at least two underage minors. He did this using an email account, social networking websites containing advertisements for escorts or erotic services, online messaging, and text messages. On November 3, 2012, Fogle traveled to New York City and engaged in commercial sexual acts with a 17 year old female. This occurred at the Plaza Hotel, where Fogle was staying. The following day, Fogle sent text messages to the victim offering to pay her a fee, if she could find another underage girl to have sex with him. During the text discussions, Fogle stated he would accept a 16 year old girl, while indicating the younger the better.
On December 27, 2012, Fogle sent text messages to the same 17 year old victim, offering a fee if she could find a young minor to engage in sex. He provided the victim with an email address and asked her to send him pictures of herself. She complied and sent three, two of which were pornographic. Fogle acknowledged receiving the photos and expressed his approval.
In January 2013, Fogle engaged in commercial sex with the same victim at the Ritz Carlton Hotel in New York City, where he was staying. The victim provided Fogle with her true age when they first met and he knew that she was not yet 18 years old. The meetings with the victim were arranged through Internet communication and text messages to discuss sexually explicit details and financial terms.
Court filings also stated that Fogle engaged in commercial sex acts with a second underage minor in New York City. At other times, Fogle offered to pay adult prostitutes a finder’s fee if they could provide him underage minors for commercial sex acts with him, including minors as young as 14-15 years old.
Indiana State Police Superintendent Doug Carter said, “This entire investigation started with one lone tip to a state police officer. From that point the full resources of the Indiana Internet Crimes Against Children Task Force were brought to bear. This included investigators and forensic examiners from the state police, the Indianapolis Metro PD and the FBI.” Carter concluded, “This clearly demonstrates celebrity status does not serve as a shield from criminal prosecution, especially when such despicable crimes are perpetrated against children.”
“In our society, children are our most precious resource,” said IMPD Chief Rick Hite. “It is our collective responsibility to protect them from predators and bring to justice anyone who causes them hurt, harm, or danger.”
“As with all child pornography cases, the FBI investigates these cases with a sense of urgency due to the extreme vulnerability of the victims involved; our children,” said FBI Special Agent in Charge, W. Jay Abbott. “This case demonstrates that commitment to investigate those who would possess child pornography. The FBI looks forward to continuing its work on such matters with the United States Attorney’s Office, the Indiana State Police and the Indianapolis Metropolitan Police Department.”
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuting the case for the government, under the terms of the plea agreement, Fogle faces a mandatory minimum sentence of at least 5 years of imprisonment, a fine of up to $500,000, and supervised release after serving his prison sentence for at least 5 years and up to the remainder of his life. There is no agreed sentence in the case and the government may request of up to 151 months of imprisonment. However, Fogle may not request a sentence below 5 years of imprisonment.
The Plea Agreement also requires Fogle to pay a total of $1,400,000 in restitution to the 14 victims in the case, 8 of whom are still minors, and forfeit assets of $50,000. This is the largest amount of restitution ever ordered for a child pornography or sex trafficking case in the history of the Southern District of Indiana. The victims will be able to use these funds to pay for counseling and treatment to combat the debilitating life effects of these crimes.
The facts stated in the Information are allegations only, and Fogle and Taylor are presumed innocent until proven guilty beyond a reasonable doubt. While Fogle has signed a plea agreement and notified the Court he will plead guilty as charged, the hearing to accept his plea of guilty has not yet been scheduled. He will appear before U.S. District Court Judge Tanya Walton Pratt.
Individual Found Guilty of Drug TraffickingRead the Press Release
SAN JUAN, P.R. – After a four day jury trial, Delfín Robles-Álvarez was found guilty of conspiracy to distribute cocaine for the purpose of unlawful importation, conspiracy to import cocaine, and conspiracy to commit money laundering, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Pérez-Giménez presided over the trial. Eight other co-conspirators had already pled guilty and are awaiting sentence and one other defendant is awaiting extradition.
According to the indictment, throughout the year of 2005 and continuing up to 2014, the defendant, along with others, intentionally combined, conspired, and agreed to possess with intent to import and distribute more than five kilograms of cocaine from Saint Martin, Netherlands Antilles into Puerto Rico.
During trial, the government presented video, audio, and telephone recordings of a Drug Enforcement Administration investigation into a drug trafficking organization responsible for transporting over 2,000 kilograms of cocaine from Saint Martin, Netherlands Antilles, to Puerto Rico for distribution and sale as well as the laundering of funds in excess of 12 million U.S. dollars. The complex conspiracy involved numerous players with various roles, the smuggling of money and drugs both by sea and by air, and various methods to launder the proceeds from these illegal activities, one of which was the Puerto Rico lottery system. A jury heard lay and expert testimony at trial that proved Delfin Robles-Alvarez’ willful participation and knowing involvement in the conspiracy.
“This conviction marks yet another victory in our fight against narcotics in Puerto Rico. Our team of prosecutors and case agents set an excellent example of teamwork during the investigation which led to the conviction of this defendant at trial,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case was prosecuted by Assistant United States Attorney Mariana Bauza and Special Assistant United States Attorney Glenn Goetchius. Delfín Robles-Álvarez faces a maximum penalty of up to life imprisonment. The now convicted defendant also faces a possible fine and a money judgment to be determined later by the Judge.
Indianapolis Man Pleads Guilty in Pittsburgh-based Darkode CaseRead the Press Release
PITTSBURGH - A resident of Indianapolis, Indiana, pleaded guilty in federal court in Pittsburgh to a charge of violating the CAN-SPAM ACT, United States Attorney David J. Hickton announced today.
Phillip Fleitz, 31, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr. Fleitz is one of 12 individuals charged in connection with a significant computer hacking forum known as Darkode, which has been dismantled.
In connection with the guilty plea, the court was advised that Fleitz knowingly used a protected computer to relay or retransmit multiple commercial electronic mail messages with the intent to deceive or mislead recipients.
Judge Cohill scheduled sentencing for Nov. 24, 2015, at 2 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Phillip Fleitz.
Husband of Former DeKalb County Commissioner Sentenced to Prison for Stealing County FundsRead the Press Release
ATLANTA – John Boyer, the husband of former DeKalb County, Georgia, Commissioner Elaine Boyer, has been sentenced to one year and one day in federal prison for conspiring to steal county money. His plea and corruption charges stem from Elaine Boyer’s conviction on similar charges in September 2014.
“John Boyer used his wife’s position as a DeKalb County Commissioner to steal thousands of dollars in taxpayer funds. The Boyers’ scheme put county money in their pockets and ultimately left the citizens of DeKalb County holding the tab,” said U.S. Attorney John A. Horn. “In a county that has recently seen its share of corruption cases, this is a particularly sad chapter.”
“The sentencing of Mr. Boyer further illustrates that there are consequences for those who assist or entice public officials with regard to criminal corrupt activities. The FBI continues to make public corruption investigations its number one criminal program priority and asks that anyone with information regarding such activity to notify their nearest FBI field office,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners serves as the legislative branch of the DeKalb County Government. The Board of Commissioners is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.
In 1992, Elaine Boyer began serving as the Commissioner of District 1, which serves citizens in north DeKalb County, including Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. In August 2014, Elaine Boyer resigned mid-term as the Commissioner of District 1.
In 2009, Elaine and John Boyer experienced financial difficulties. As a result, an unlawful kickback scheme was devised to obtain money from DeKalb County. In particular, in or about September 2009, Elaine Boyer, as the Commissioner of District 1, hired a family-friend Marion Rooks Boynton (who has been separately charged) as a political advisor allegedly to assist her with government consulting.
As part of the scheme, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Boynton. In fact, Boynton performed no services for DeKalb County government, Elaine Boyer’s Office, or the citizens of DeKalb County.
Elaine Boyer used the false invoices as a basis to authorize payments to Boynton. From September 2009 to November 2011, based on requisition requests from Elaine Boyer’s Office, DeKalb County issued approximately 35 checks to Boynton for consulting services that were never performed. In total, DeKalb County paid Boynton more than $85,000.
John Boyer then instructed Boynton to deposit the money that Boynton received from DeKalb County into a bank account used by Elaine and John Boyer. Consequently, after being paid by DeKalb County, Boynton funneled approximately $60,000 received from DeKalb County into a personal bank account used by the Boyers. In turn, the Boyers used the money deposited into the account to pay personal living expenses.
In August 2014, Elaine Boyer, 59, of Stone Mountain, Georgia, resigned mid-term as the Commissioner of District 1. The day after resigning, Boyer was charged with conspiring to commit wire and mail fraud. On March 20, 2015, Boyer was sentenced to one year, two months in prison and ordered to pay approximately $87,000 in restitution.
On February 24, 2015, John Boyer, 63, of Stone Mountain, Georgia, pleaded guilty to conspiring to commit mail fraud. Boyer was sentenced to one year and one day in federal prison, three years of supervised release, and ordered to pay approximately $87,000 in restitution.
On August 11, 2015, the Grand Jury returned an indictment against Marion Rooks Boynton, 73, of Saint Simons Island, Georgia, on charges of conspiracy and substantive federal program theft.
This case is being investigated by Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
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/gan/.
Hobbs Woman Pleads Guilty to Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Ida Rodriguez, 46, of Hobbs, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating federal narcotics trafficking laws. Under the terms of her plea agreement, Rodriguez will be sentenced to 60 months in prison followed by a term of supervised release to be determined by the court.
Rodriguez was arrested on June 10, 2015, on a criminal complaint charging her with possession with intent to distribute methamphetamine in Lea and Doña Ana Counties, N.M. According to the complaint, Rodriguez sold methamphetamine to an undercover DEA agent in July 2014 and Aug. 2014. It also alleged that on Aug. 16, 2015, deputies of the Lea County Sherriff’s Office (LCSO) executed a traffic stop on Rodriguez and found her to be in possession of 168 grams of methamphetamine.
During today’s proceedings, Rodriguez pled guilty to a three-count felony information charging her with distribution of methamphetamine and possession of methamphetamine with intent to distribute. In entering the guilty plea, Rodriguez admitted that (1) on July 29, 2014, she sold 28 grams of methamphetamine to an undercover agent in Hobbs, (2) on Aug. 4, 2014, she sold 56 grams of methamphetamine to an undercover agent in Las Cruces, N.M., and (3) on Aug. 16, 2014, she was stopped by LCSO deputies for a traffic violation during which the deputies found 168 grams of methamphetamine in her vehicle. Rodriguez further admitted that she had obtained the methamphetamine in Phoenix, Ariz., and planned to sell it in Hobbs.
Rodriguez has been in federal custody since her arrest on June 10, 2015, and remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force with assistance from the 5th Judicial District Attorney’s Office for the State of New Mexico. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. 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.
Heroin Dealer Sentenced to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Eric Johnson, age 38, of Baltimore, today to 12 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn Mosby; and Interim Baltimore Police Commissioner Kevin Davis.
According to his plea agreement, between January and June 2014, Johnson conspired with co-defendants Ronald Ross, Keith Gilliam, Sara Jones, Nicholas Jones and others to distribute heroin in Baltimore City. The defendants obtained bulk quantities of heroin and packaged the heroin for retail distribution. The prepackaged heroin was provided daily to Johnson and his co- defendants who sold the drugs to customers at an open-air drug shop in the vicinity of Baltimore and Bentalou Streets.
Johnson and his co-conspirators distributed between 100 and 400 grams of heroin.
Ronald Ross, age 27, and Keith Gilliam, age 21, both of Baltimore, were previously sentenced to 10 years in prison and five years in prison, respectively. Nicholas Jones, age 23, of Baltimore, has pleaded guilty and is scheduled to be sentenced on August 31, 2015.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Grand Prairie Resident Sentenced to 100 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A 34-year-old Grand Prairie, Texas, man, Luis Vasquez-Sanchez, was sentenced this morning by U.S. District Judge Ed Kinkeade to 100 months in federal prison, following his guilty plea in March 2015 to one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Vasquez-Sanchez, a citizen of Honduras, has been in custody since his arrest in January 2015 on a related federal criminal complaint. He will be referred for deportation proceedings following his incarceration
According to documents filed in the case, the investigation began in July 2014 when a detective with the Plano Police Department, working in an undercover capacity to identify persons participating in the distribution of child pornography and the sexual exploitation of children through the use of peer-to-peer file sharing, identified Vasquez-Sanchez as an individual linked to a computer that was making images of child pornography available to share.
In January 2015, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) contacted and consensually interviewed Vasquez-Sanchez at his residence, and he allowed agents to search his computer. During that search, several images and videos of child pornography were discovered. A subsequent forensic examination of the computer revealed more than 100 images and 50 videos of child pornography. Some of the images and videos he collected depicted sadistic and/or violent content, and some of the files depicted infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI and the Plano Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
# # #
Former executive convicted of bribing former director of Cleveland VA Medical CenterRead the Press Release
A Virginia executive was convicted by a federal jury on 14 counts related to providing things of value to the former director of the Cleveland and Dayton Veterans Affairs Medical Center in exchange for confidential information about VA construction projects, law enforcement officials said.
Mark S. Farmer, 55, of Arlington, Virginia, was convicted on one count of conspiracy, one count of violating the Hobbs Act, two counts of wire fraud, six counts of mail fraud and four counts of theft of government property. He is scheduled to be sentenced Nov. 9.
Farmer was employed at CannonDesign, an integrated design firm headquartered in Buffalo, New York, that performed work for the VA. He worked in several different capacities, including associate principal.
Farmer and CannonDesign received VA records and things of value, including non-public information concerning the VA and streamlined access to public information concerning the VA, which William Montague had embezzled and stolen without authority from the VA. This was done to give Farmer and CannonDesign an advantage over other companies in the awarding and administration of VA business, according to court documents and trial testimony.
Montague, the former director of the Cleveland and Dayton Veterans Affairs Medical Center, previously pleaded guilty to 64 counts related to his role in the conspiracy. He is awaiting sentencing.
“Bribing a public official to obtain internal government documents and information for a competitive business advantage is illegal,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to root out corruption at all levels.”
“Today's verdict shows contractors and VA executives who cheat the taxpayers and veterans will be held accountable,” said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland.
Farmer asked Montague to obtain information concerning VA contracts and business, including VA records. Montague used his power and influence at the VA to gain access to VA employees in ways that Farmer could not. Montague gave false and misleading information to VA employees about Montague’s reasons for requesting VA records and information, according to court records and trial testimony.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Paul Flannery following an investigation by the FBI and United States Department of Veterans Affairs—Office of Inspector General.
Former U.S. Government Employee Charged in Computer Hacking and Cyber Stalking SchemeRead the Press Release
A former locally-employed staff member of the U.S. Embassy in London was charged with engaging in a hacking and cyberstalking scheme in which, using stolen passwords, he obtained sexually explicit photographs and other personal information from victims’ email and social media accounts, and threatened to share the photographs and personal information unless the victims ceded to certain demands.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division made the announcement.
Michael C. Ford, 36, was charged by indictment on Aug. 18, 2015, with nine counts of cyberstalking, seven counts of computer hacking to extort and one count of wire fraud.
“According to the indictment, Ford hacked into email accounts and extorted sexually explicit images from scores of victims,” said Assistant Attorney General Caldwell. “As these allegations highlight, predators use the Internet to target innocent victims. With the help of victims and our law enforcement partners, we will find those predators and hold them accountable.”
“Ford is alleged to have hacked into hundreds of email accounts and tormented women across the country, by threatening to humiliate them unless they provided him with sexually explicit photos and videos,” said U.S. Attorney John Horn. “This sadistic conduct is all the more disturbing as Ford is alleged to have used the U.S. Embassy in London as a base for his cyberstalking campaign.”
“The Diplomatic Security Service is firmly committed to working with the Department of Justice and our other law enforcement partners to investigate allegations of crime and to bring those who commit these crimes to justice,” said Director Miller. “When a public servant in a position of trust is alleged to have committed a federal felony such as cybercrime, we vigorously investigate such claims.”
“While the allegations in this case are disturbing, it does illustrate the willingness and commitment of the FBI and its federal partners to aggressively follow those allegations wherever they take us,” said Special Agent in Charge Johnson. “The FBI will continue to provide significant resources and assets as we address complex cyber based investigations as seen here.”
According to allegations in the indictment, from January 2013 through May 2015, Ford, using various aliases that included “David Anderson” and “John Parsons,” engaged in a computer hacking and “sextortion” campaign to force numerous women to provide him with personal information and sexually explicit photographs and videos. To do so, Ford allegedly posed as a member of the fictitious “account deletion team” for a well-known email service provider and sent notices to thousands of potential victims, including members of college sororities, warning them that their accounts would be deleted if they did not provide their passwords.
Using the passwords collected from this phishing scheme, Ford allegedly hacked into hundreds of email and social media accounts, stole sexually explicit photographs and personal identifying information (PII), and saved both the photographs and PII to his personal repository.
Ford then allegedly emailed the victims and threatened to release the photographs, which were attached to the emails, unless they obtained videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then sent the videos to him.
The indictment alleges that, when the victims either refused to comply or begged Ford to leave them alone, Ford responded with additional threats, including by reminding the victims that he knew where they lived. On several occasions, Ford allegedly followed through with his threats by sending sexually explicit photographs to victims’ family members and friends.
During the pendency of the alleged scheme, Ford was a civilian employee at the U.S. Embassy in London, England. He allegedly used his government-issued computer at the U.S. Embassy to conduct the phishing, hacking and cyberstalking activities.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of State’s Diplomatic Security Service and the FBI. The Criminal Division’s Office of International Affairs and the U.S. Embassy in London provided assistance. The case is being prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.
Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement. Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber.
Ford Indictment
Former Treasury Department Worker Pleads Guilty to Theft of Government FundsRead the Press Release
Greenbelt, Maryland – Marlene Biggs, age 53, of Bowie, Maryland today admitted to unlawfully converting funds obtained from her government credit cards to her personal use.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
Biggs was a management analyst with the Department of Treasury. She retired in 2013. According to her plea agreement, from October 2010 to January 2013, Biggs charged approximately $142,000 in 62 separate transactions to two Treasury-issued purchase cards for purported purchases of office supplies and equipment from a government vendor. In fact, no supplies and equipment were purchased in a majority of these transactions and instead, the vendor sent approximately $108,000 in 60 installments to Biggs’ personal bank account, and retained the balance.
In May 2014, an agent from the Treasury’s OIG office spoke to the vendor’s owner, who admitted to an agreement with Biggs in which he would charge government credit cards used by Biggs and then send approximately 75% of the charged amount back to Biggs’ personal bank account. When interviewed in July 2014, Biggs initially denied that she personally benefited from the funds she obtained from the vendor under this scheme. In fact, however, Biggs converted at least $100,000 in government funds to her personal use.
The total loss attributable to Biggs is between $120,000 and $200,000.
Biggs faces a maximum sentence of 10 years in prison for theft and conversion of government funds. Biggs has agreed to the entry of an order to pay restitution of at least $142,000 and forfeit at least $108,000. U.S. District Judge George J. Hazel has scheduled sentencing for November 24, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Department of the Treasury – OIG for its work in the investigation and thanked Special Assistant U.S. Attorney Nicholas J. Patterson, of the U.S. Department of Justice, and Assistant U.S. Attorney Joseph R. Baldwin, who are prosecuting the case.
Former State Department Employee Indicted in Computer Hacking and Cyberstalking SchemeRead the Press Release
ATLANTA – A federal grand jury has returned an indictment charging former U.S. State Department employee Michael C. Ford has been engaging in a hacking and cyberstalking scheme in which, using stolen passwords, he obtained sexually explicit photographs and other personal information from victims’ email and social media accounts, and threatened to share the photographs and personal information unless the victims provided him with additional explicit photos and videos.
“Ford is alleged to have hacked into hundreds of email accounts and tormented women across the country, by threatening to humiliate them unless they provided him with sexually explicit photos and videos,” said U.S. Attorney John Horn. “This sadistic conduct is all the more disturbing as Ford is alleged to have used the U.S. Embassy in London as a base for his cyberstalking campaign.”
“According to the indictment, Ford hacked into email accounts and extorted sexually explicit images from scores of victims,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “As these allegations highlight, predators use the Internet to target innocent victims. With the help of victims and our law enforcement partners, we will find those predators and hold them accountable.”
“The Diplomatic Security Service is firmly committed to working with the Department of Justice and our other law enforcement partners to investigate allegations of crime and to bring those who commit these crimes to justice,” said Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security. “When a public servant in a position of trust is alleged to have committed a federal felony such as cybercrime, we vigorously investigate such claims.”
“While the allegations in this case are disturbing, it does illustrate the willingness and commitment of the FBI and its federal partners to aggressively follow those allegations wherever they take us,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division. “The FBI will continue to provide significant resources and assets as we address complex cyber-based investigations as seen here.”
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2013 through May 2015, Ford, using various aliases that included “David Anderson” and “John Parsons,” engaged in a computer hacking and “sextortion” campaign to force numerous women to provide him with personal information and sexually explicit photographs and videos. To do so, Ford allegedly posed as a member of the fictitious “account deletion team” for a well-known email service provider and sent notices to thousands of potential victims, including members of college sororities, warning them that their accounts would be deleted if they did not provide their passwords.
Using the passwords collected from this phishing scheme, Ford allegedly hacked into hundreds of email and social media accounts, stole sexually explicit photographs and personal identifying information (PII), and saved both the photographs and PII to his personal repository.
Ford then allegedly emailed the victims and threatened to release the photographs, which were attached to the emails, unless they obtained videos of “sexy girls” undressing in changing rooms at pools, gyms and clothing stores, and then sent the videos to him.
The indictment alleges that, when the victims either refused to comply or begged Ford to leave them alone, Ford responded with additional threats, including by reminding the victims that he knew where they lived. On several occasions, Ford allegedly followed through with his threats by sending sexually explicit photographs to victims’ family members and friends.
During the pendency of the alleged scheme, Ford was a civilian employee at the U.S. Embassy in London, England. He allegedly used his government-issued computer at the U.S. Embassy to conduct the phishing, hacking and cyberstalking activities.
Michael C. Ford, 37, of Atlanta, Georgia, was indicted by a grand jury on August 18, 2015, charging him with nine counts of cyberstalking, seven counts of computer hacking to extort, and one count of wire fraud. The names of the victims are being withheld from the public in order to protect their privacy.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Department of State, Diplomatic Security Service and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section. Assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Embassy in London.
Anyone who believes that they are the victim of hacking, cyberstalking, or “sextortion” should contact law enforcement. Resources regarding hacking and other cybercrimes can be found at: https://www.fbi.gov/about-us/investigate/cyber.
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.
Former Member of Tax Services Firm Pleads Guilty in $20 Million Fraud SchemeRead the Press Release
RICHMOND, Va. – Sean M. Weaver, 33, of Alexandria, Virginia, pleaded guilty today to mail fraud and money laundering for filing false claims resulting in over $20 million in sales and use tax refunds to two corporate clients.
According to a statement of facts filed with the plea agreement, Weaver was a member of the transaction tax practice group in the Arlington, Virginia office of Ryan LLC, a tax services firm headquartered in Dallas, Texas. The transaction tax practice group specialized in submitting claims to state and local taxing authorities to obtain refunds of sales and/or use tax overpayments made by Ryan LLC’s corporate clients. Ryan LLC generally entered into compensation agreements with its clients whereby it would receive as a fee a percentage of the overpayments that it recovered on behalf of its clients.
Weaver managed a team of 10 to 15 employees and was responsible for submitting claims to the state taxing authorities on behalf of Ryan LLC’s clients. For engagements to which he and his team were assigned, Weaver would receive as a bonus payment a percentage of the fee received by Ryan LLC.
Between October 2011 and December 2014, Weaver submitted and caused to be submitted several false claims for sales and/or use tax refunds to the Virginia Department of Taxation and the Texas Comptroller of Public Accounts on behalf of two of Ryan LLC’s corporate clients. In submitting the false claims, Weaver manipulated client transactional data and falsified invoices and other transactional records to inflate the amount of sales and/or use tax actually paid by the clients during certain transactions. As a result of the scheme, the state taxing authorities issued over $20 million in fraudulent refunds to Ryan LLC clients and Weaver received over $350,000 in personal bonus payments.
Ryan LLC voluntarily reported Weaver’s actions to law enforcement and fully cooperated in the investigation. As part of the plea agreement, Weaver admitted that he acted alone and that no one else from Ryan LLC or its clients took part in the scheme. Weaver further agreed to forfeit $250,480 seized by the United States as property involved in the offense and the value of his account with a peer-to-peer lending company.
Weaver faces a maximum penalty of 30 years in prison sentenced on December 1, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and David G. Bowers, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS), made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.
This case was investigated by the FBI’s Richmond Field Office, IRS-CI, and USPIS. Assistant U.S. Attorneys Dominick S. Gerace and Michael S. Dry are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-139.
Former Louisville Teacher Pleads Guilty to Charges of Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant met in person with 15 year old to engage in and record sexual activity
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – A Louisville man previously employed by a parochial high school located in Jefferson County, Kentucky, as a high school teacher and assistant coach with the school’s athletics department, pled guilty today in United States District Court to violating child exploitation laws announced United States Attorney John E. Kuhn, Jr. United States District Judge David J. Hale accepted the guilty pleas.
Patrick Newman, age 33, was previously charged in a Criminal Complaint and then felony Information. He pled guilty to 16 counts of producing child pornography, one count of online enticement of a minor, one count of transporting child pornography, and one count of possessing child pornography. The charges involved 16 different victims, all boys. The ages of the children ranged from 12 to 17. Three victims are from Kentucky, including at least one of whom Newman met in person. According to information exchanged during their online communications, the remaining victims are from Texas, Ohio, Indiana, Colorado, North Carolina, New York, Utah, Oregon, and the United Kingdom.
"These were unspeakable crimes, victimizing vulnerable and impressionable minors,” stated U.S. Attorney Kuhn. “Protecting our children will always be the highest priority of this office, and we will continue to prosecute those who exploit children to the fullest extent of the law."
According to the Affidavit attached to a previous criminal complaint, the investigation started earlier this year when the National Center for Missing and Exploited Children received a CyberTip from Twitter, Inc. regarding the upload of child pornography materials to VINE (a video sharing website owned by Twitter) from the same IP address in Texas, between 12-28-2014 and 12-30-2014. Law enforcement officials in Texas identified the child depicted in the images and later identified Newman as an adult who had been communicating with the child and obtaining sexually explicit images of the child.
Law enforcement officials executed a federal search warrant on Newman’s Louisville home in early June. Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS) arrested Newman that same day. During a recorded, post-Miranda interview, Newman admitted a sexual interest in boys 13-17 years of age. He also admitted to communicating with minors through social media tools/applications such as KIK, VINE, Snapchat and Topix for the past two years.
Forensic examination of Newman’s cellular telephone revealed electronic communications between him and many other individuals involving the sexual exploitation of minors. Based on representations during those communications, Newman solicited and obtained sexually explicit images from 16 boys under the age of 18. He gave specific directions to some of the children as to what he wanted them to do, record, and send him. With one child, he specifically asked for sadistic images involving a plunger. Newman met at least one boy (age 15) in person on several occasions. The two engaged in sexual activity which Newman recorded – using his phone. He told other people, via social media, about his sexual activities with the boy and transported/distributed the videos to them. He also shared other images and videos of child pornography with people via social media. According to a review of his phone, he transported/distributed child pornography to 56 people, in addition to the 16 minors. Also, a review of Newman’s “Dropbox” account, he possessed 87 videos depicting child pornography involving boys.
Newman has been in federal custody since his arrest on June 1, 2015. He faces a mandatory minimum prison term of 15 years followed by a 5-year period of Supervised Release. The maximum potential penalties are life in prison, a $4,750,000.00 fine, and up to and including a life period of Supervised Release. A sentencing hearing will be held on December 16 2015, at 1:30pm, before United States District Judge Hale.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The investigation is being led by HSI Louisville Division of the Department of Homeland Security, with assistance from state, local, and federal law enforcement entities in Kentucky, Indiana and Texas.
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."
Former Dmv Clerk Pleads Guilty to Unauthorized Use of A Protected ComputerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.- The United States Attorney’s Office announced today that Michael Anthony Young, 49, of Buffalo, N.Y., pleaded guilty to obtaining information from a protected computer, before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The charge carries a maximum penalty of 1 year in prison and a $100,000 fine.Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that Mr. Young, a former employee at the Erie County Department of Motor Vehicles, used his position as a Motor Vehicle Representative to solicit and accept bribes for his assistance in passing permit examinations. After failing an examination on one or more occasions, Mr. Young would provide the correct answers to individuals in advance of the test. After the applicant had received a passing score due to Mr. Young’s assistance, Mr. Young would complete paperwork containing the false passing score which would then be inputted into the DMV computer systems so that the individual would be mailed his or her permit.
The plea is the result of an investigation by Special Agents from the Department of Homeland Security, Homeland Security Investigations, and Investigators from the New York State Department of Motor Vehicles, Division of Field Investigations.
Sentencing is scheduled for November 19, 2015 at 11 A.M. before Judge Schroeder.
Final Freedom Industries defendants plead guiltyRead the Press Release
Former Freedom Presidents Gary Southern and Dennis Farrell
Admit to Federal Environmental Crimes in Elk River Chemical Spill
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that the final defendants charged in connection with the January 2014 Elk River chemical spill pleaded guilty in federal court. Gary Southern, 53, the president of Freedom Industries, Inc., at the time of the spill, pleaded guilty today to violating the federal Clean Water Act, negligently discharging refuse matter in violation of the federal Refuse Act, and failing to have a pollution prevention plan. Dennis P. Farrell, 58, a former Freedom president and owner, pleaded guilty Tuesday to violating the federal Refuse Act and failing to have a pollution prevention plan. Freedom and four other Freedom officials previously pleaded guilty to environmental crimes in March 2015.
“This should serve as a wakeup call to those who operate chemical storage facilities near our precious water resources. If you place our water at risk, you face prison time,” Goodwin said. “As I said when these individuals were charged, this spill, which was completely preventable, happened to take place in this district, but it could have happened anywhere. If we don’t want it to happen again, we need to make it crystal clear that those who engage in this kind of criminal behavior will be held accountable. That’s exactly what we have done through these prosecutions.”
Freedom Industries, Inc., and six former Freedom officials—including Farrell and Southern—were charged in December 2014 with various federal crimes related to the January 2014 Elk River chemical spill in Charleston, W.Va., which ultimately affected the water supply of more than 300,000 people.
Southern faces a mandatory minimum of 30 days and up to three years in federal prison when he is sentenced on December 16, 2015. Farrell faces a mandatory minimum of 30 days and up to two years in federal prison when he is sentenced on December 14, 2015.
Southern and Farrell’s criminal conduct included:
• failure to properly maintain the containment area surrounding the tanks at Freedom’s Elk River facility and to make necessary repairs to ensure the containment area would contain a chemical spill;
• failure to properly inspect a tank containing the chemical MCHM;
• failure to develop and implement a spill prevention, control and countermeasures plan; and
• failure to develop and implement a stormwater pollution prevention plan and groundwater protection plan, both requirements of a National Pollutant Discharge Elimination System Permit.
William E. Tis of Verona, Pa., and Charles E. Herzing of McMurray, Pa., former owners of Freedom, each pleaded guilty in March 2015 to one count concerning the negligent discharge of refuse matter in violation of the federal Refuse Act. They each face a mandatory minimum of 30 days and up to a year in federal prison. Tis is set to be sentenced December 2, 2015. Herzing is set to be sentenced December 3, 2015.
Freedom environmental consultant Robert J. Reynolds of Apex, N.C., and tank farm plant manager Michael E. Burdette of Dunbar, W. Va., were charged separately with violating the federal Clean Water Act. They each pleaded guilty to those charges in March 2015. They each face up to one year in prison. Reynolds is set to be sentenced December 7, 2015. Burdette’s sentencing is set for December 9, 2015.
Freedom Industries itself, which has been in bankruptcy since shortly after the spill, was charged with violating the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. A representative of the corporation entered a guilty plea to those charges on its behalf in March 2015. Freedom is set to be sentenced December 10, 2015.
Drug Trafficker Pleads Guilty to Methamphetamine DistributionRead the Press Release
PHOENIX– Today, Raul Gutierrez-Cisneros, 43, of Phoenix, Ariz., pleaded guilty to possession with intent to distribute methamphetamine.
In this Organized Crime Drug Enforcement Task Force-led (OCDETF) undercover investigation, Gutierrez-Cisneros engaged in negotiations in February 2015 during which he agreed to sell 60 pounds of methamphetamine. Soon afterward, Gutierrez-Cisneros arranged for two of his associates, one of whom chose to bring a loaded Browning 9mm pistol, to deliver approximately 18 pounds of methamphetamine to a Phoenix hotel. Upon their arrival at the hotel, the FBI arrested all three men and seized the methamphetamine and the pistol.
Gutierrez-Cisneros’s conviction for possession with intent to distribute methamphetamine carries a maximum penalty of life in prison, a maximum fine of $10,000,000, or both.
Sentencing is set before Judge Susan R. Bolton on Nov. 2, 2015 at 1:30 P.M.
The OCDETF investigation in this case was conducted by the Federal Bureau of Investigation and Homeland Security Investigations. The prosecution is being handled by Don Pashayan, Assistant U.S. Attorney, and Dominique Park, Special Assistant U.S. Attorney and Immigration and Customs Enforcement Assistant Chief Counsel, District of Arizona, Phoenix.
CASE NUMBER: CR-15-00335-001-PHX-SRB
RELEASE NUMBER: 2015-062_Gutierrez-Cisneros
# # #
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.
Dominican National Charged with Heroin Trafficking and Illegal Reentry into the United States After DeportationRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Hazleton resident with distributing more than 100 grams of heroin and illegally reentering the country after having been removed as an illegal alien.
According to United States Attorney Peter Smith, the Information alleges that Edwin Guerrero-Guerrero a/k/a “Angel Dueno Matos,” age 35, who is a citizen of the Dominican Republic and was residing in Hazleton at the time of his arrest, distributed and possessed with intent to distribute more than 100 grams of heroin, and illegally reentered the United States after having been previously removed as an illegal alien.
The charges stem from an investigation by special agents and task force officers of the Federal Bureau of Investigation, Homeland Security Investigations, and Hazleton Police.
Guerrero-Guerrero faces a potential maximum sentence of 40 years in prison and a $5 million fine if he is convicted of the drug charge, and up to 20 years in prison and a $250,000 fine if he is convicted of the illegal reentry charge.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is a total of 60 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Department of Justice Announces Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
Department of Justice Tribal Access Program (TAP) Will Improve the Exchange of Critical Data
Department of the Interior Companion Program to Provide Name-Based Emergency Background Checks for Child Placement
The Department of Justice is launching an initial phase of the Tribal Access Program for National Crime Information (TAP) to provide federally-recognized tribes access to national crime information databases for both civil and criminal purposes. TAP will allow tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.
This initial phase of TAP was announced today in a meeting with tribes held during the 2015 Department of Justice/FBI Criminal Justice Information Services (CJIS) Division Tribal Conference in Tulsa, Oklahoma.
“Federal criminal databases hold critical information that can solve crimes, and keep police officers and communities safe,” said Deputy Attorney General Sally Quillian Yates. “The Tribal Access Program is a step forward to providing tribes the access they need to protect their communities, keep guns from falling into the wrong hands, assist victims and prevent domestic and sexual violence. Empowering tribal law enforcement with information strengthens public safety and is a key element in our ongoing strategy to build safe and healthy communities in Indian country. ”
“The FBI is pleased to participate in this initiative,” said Executive Assistant Director Amy Hess of the FBI’s Science and Technology Branch. “This will be a positive step for the tribal agencies to receive valuable criminal information and also for those same tribal agencies to submit criminal information at the national level. Through this partnership, information becomes richer and communities can become safer.”
TAP will support tribes in analyzing their needs for national crime information and help provide appropriate solutions, including a-state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and civil purposes through the Department of Justice. TAP will also provide specialized training and assistance for participating tribes.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal criminal information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
Departments of Justice and Interior Working Group
In 2014, the Departments of Justice and the Interior (DOI) formed a working group to assess the impact of the pilots and identify long-term sustainable solutions that address both criminal and civil needs of tribes. The outcome of this collaboration was the TAP, as well as an additional program announced today by the DOI’s Bureau of Indian Affairs (BIA) that provides tribes with national crime information prior to making child placement decisions in emergency circumstances. Under the BIA program, social service agencies of federally recognized tribes will be able to view criminal history information accessed through BIA’s Office of Justice Services who will conduct name-based checks in situations where parents are unable to care for their children.
“Giving tribal government programs access to national crime databases through DOJ’s Tribal Access Program for National Crime Information is a tremendous step forward towards increasing public safety in Indian Country,” said Assistant Secretary Kevin K. Washburn for Indian Affairs at the Department of the Interior. “The Bureau of Indian Affairs Office of Justice Services’ Purpose Code X program provides a much-needed tool for tribal social service agencies when they must find safe homes to place children during temporary emergency situations.”
In the initial phase of the TAP program, the biometric/biographic workstations will be deployed to up to 10 federally-recognized tribes who will provide user feedback. This phase will focus on assisting tribes that have law enforcement agencies, while in the future the department will seek to address needs of the remaining tribes and find a long-term solution. The department will continue to work with Congress for additional funding to more broadly deploy the program.
The Department of Justice’s Chief Information Officer manages TAP.
“It is our hope that TAP can minimize the national crime information gap and drive a deeper and more meaningful collaboration between the federal, state, local and tribal criminal justice communities,” said Chief Information Officer Joseph F. Klimavicz for the department.
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For more information about the Department of the Interior Bureau of Indian Affairs, visit www.indianaffairs.gov/
Defendant Admits Smuggling Cocaine through an Underwater Narcotics Tunnel in Wetsuit and Scuba GearRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Sherri Hobson (619) 546-6986
NEWS RELEASE SUMMARY – August 19, 2015
SAN DIEGO – Evelio Padilla-Zepeda, a Honduran national, pleaded guilty in federal court today, admitting that he donned a wetsuit and scuba gear and smuggled 55 pounds of cocaine through an underwater drug tunnel that exited into the All-American Canal just north of the international border.
Padilla-Zepeda entered his plea before U.S. Magistrate Judge William Gallo. He is scheduled to be sentenced on December 7, 2015 at 9:00 a.m. before U.S. District Judge Roger Benitez.
On April 25, 2015, Border Patrol Agents were patrolling about seven miles east of the Calexico West Port of Entry at 10:25 p.m. when they were informed by a remote video surveillance operator that there was an individual along the All-American Canal.
According to court records, agents searched the southern embankment and encountered the defendant, who was soaking wet and dressed in a wetsuit. Agents apprehended the defendant and continued to search the immediate area and found 25 one-pound vacuum-sealed weighted and gift-wrapped packages of cocaine plus scuba tanks and diving gear, including two rebreather tanks which recirculate a diver’s exhaled breath and prevent tell-tale bubbles – a giveaway that a diver is in the water.
Subsequently, Border Patrol Agents found an underground tunnel from Mexicali, Mexico, continuing under the border and ending at the south bank of the canal. The exit point of the tunnel is in the embankment of the canal, partially submerged by the canal’s water and covered with rocks which have to be moved to access the exit. The tunnel was approximately 45 to 50 yards long.
In court, Padilla-Zepeda admitted that he entered the south canal bank of the All-American Canal in Calexico through an underground tunnel from Mexico into the United States, wearing scuba gear and carrying 25 packages of cocaine. The defendant also admitted that he intended to use his scuba gear to transport the cocaine in the canal and underwater to another location in the All-American Canal.
“Drug smugglers will try anything to move their product – even scuba diving in an underwater tunnel,” said U.S. Attorney Laura Duffy. “The ingenuity of the smugglers is matched only by our determination to thwart it, as we have done in this case.”
“This investigation demonstrates the incredible lengths that these drug trafficking organizations will go to ensure that their product makes it to the streets,” said DEA San Diego Special Agent in Charge William R. Sherman. “With the assistance of our law enforcement partners, a cross-border drug tunnel was shut down, keeping our communities safe.”
“We are pleased with the conclusion of this serious matter resulting from the arrest of this man and dangerous drugs seized by El Centro Sector Border Patrol agents,” said Chief Patrol Agent Carla Provost.
DEFENDANT Criminal Case No. 15CR1375-BEN
Evelio Padilla-Zepeda Age: 28 Hometown: Mexicali, Mexico; Citizen of Honduras
SUMMARY OF CHARGE
Possession of Cocaine With Intent To Distribute -- Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: 20 years’ imprisonment and $250,000 fineAGENCIES
United States Border Patrol, Calexico Station
Homeland Security Investigation
Drug Enforcement Administration
Dallas Lawyer Sentenced to Serve 12 Months and One Day in Federal PrisonRead the Press Release
DALLAS — A Dallas attorney who pleaded guilty to federal felony offenses involving copyright infringement and investor fraud was sentenced this morning, announced John Parker, U.S. Attorney for the Northern District of Texas.
Andrew Lee Siegel, 56, was sentenced this morning by U.S. District Judge Ed Kinkeade to serve a total of 12 months and one day in federal prison and ordered to pay $285,310 in restitution. He must surrender to the Bureau of Prisons by October 15, 2015. In July 2014, Siegel pleaded guilty to one count of felony criminal infringement of a copyright, and in January 2015, he pleaded guilty to one count of mail fraud.
In fall 2010, Siegel established Dynasty Spirits, LLC, and later Dynasty Spirits, Inc. and Speak Easy Distillers, LLC, to facilitate the production and bottling of “Nue Vodka.” In February 2012, Siegel created a private placement memorandum for Dynasty Spirits, Inc. (Dynasty) authorizing the sale of up to $2 million of common stock shares by Dynasty. In June 2013, Siegel became the registered agent and manager of Vanguard Spirits, LLC, which was established for the purpose of distilling, branding and marketing “Vanguard Vodka.”
From September 2011 through July 2012, Siegel collected approximately $1,595,000 from 35 investors for the sale of Dynasty stock certificates. Siegel concealed from Dynasty owners that he unlawfully used up to $410,000 of that amount for his personal benefit, which he had collected from no more than six of the 35 investors.
In November 2012, Dynasty owners suspected Siegel had unlawfully used investor funds, and when confronted, Siegel falsely stated that he had attempted to wire $185,000 in investor funds to Dynasty but the transfer was misrouted. The following month, Siegel created fraudulent and fictitious emails to Dynasty owners representing he attempted to wire transfer $185,000 from his bank account to the Dynasty owners’ bank account. Some of the fraudulent emails Siegel created contained copyrighted writings and the logo of The Northern Trust Company.
Later that month, Siegel created another fraudulent email to Dynasty owners that contained copyrighted writings, letterhead and logos of the Federal Reserve Bank Services. In fact, Siegel used several fraudulent and fictitious emails that falsely represented to Dynasty owners that he was in contact with The Northern Trust Company and the Federal Reserve Bank Services in connection with his “attempted” $185,000 wire transfer to the Dynasty owners. Siegel engaged in this fraudulent conduct to deceive the owners of Dynasty and convince them that he was making a good faith effort to transfer investor funds to the investors of Dynasty.
On June 24, 2013, Siegel stole $210,000 from client EP’s escrow account to use as part of a legal settlement payment to owners of Dynasty Spirits. Those owners were the victims in Siegel’s infringement conviction. From June through November 2013, Siegel stole a total of $275,000 from his client EP's escrow account.
On May 21, 2014, Siegel reimbursed EP by fraudulently and secretly disbursing $285,310 of Vanguard Spirits investor funds. Siegel concealed this fraudulent disbursement of Vanguard investor funds from Vanguard investors and management.
When Siegel pleaded guilty in July 2014, he made no admission or reference to his fraudulent disbursement of funds from both EP’s escrow account and from Vanguard Spirits’ investor funds.
The FBI investigated the case and Assistant U.S. Attorney David L. Jarvis prosecuted.
# # #
Columbus Man Sentenced to 50 Months for Failure to Update Sex Offender RegistrationRead the Press Release
COLUMBUS, Ohio – Robert Jarrod Johnson, 33, most recently of Columbus, Ohio, was sentenced in U.S. District Court to 50 months in prison and five years of supervised release for failure to comply with the Sex Offender Registration and Notification Act.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Peter Tobin, U.S. Marshal, Southern District of Ohio, announced the sentence handed down yesterday by Senior U.S. District Judge Peter C. Economus.
According to court documents, Johnson was convicted of Second Degree Rape of a female juvenile in North Carolina in 2001. For at least the next 30 years, he was ordered to register as a sex offender in any state in which he lived or worked. Johnson moved to Columbus, Ohio and obtained employment and an Ohio state ID card, but never registered as a sex offender in Ohio. He was indicted in December 2014 on a federal Sex Offender Registration and Notification Act violation and pleaded guilty to that offense in February 2015.
During the course of the case, investigators discovered that between May 2013 and October 2013, Johnson allegedly committed multiple sex offenses against a girl between the ages of 12 and 13 in Columbus, Ohio, during the period in which he was not registering as a sex offender. Judge Economus ruled that it was appropriate to increase Johnson’s sentence based on that conduct.
In April 2015, Johnson was indicted in Franklin County on counts of Rape, Gross Sexual Imposition, and Unlawful Sexual Conduct with a Minor. That case remains pending. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
U.S. Attorney Stewart commended the investigation by Senior Inspector Nicole Ralston, as well as Assistant United States Attorney Brian Martinez, who represented the United States in this case.
Clover Gang Member Pleads Guilty to Federal Firearm and Drug ChargesRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joseph Matthew Polk, age 24, of Clover, South Carolina pled guilty today in federal court. Polk plead guilty to possession with intent to distribute and distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime (to wit: possession with intent to distribute and distribution of marijuana), all in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C) and Title 18, United States Code, Section 924(c). Under the plea agreement, Polk agreed to a total sentence of 240 months (20 years) imprisonment and an appropriate term of supervised release to follow, comprised of 180 months (15 years) imprisonment on the possession with intent to distribute and distribution of methamphetamine charge and 60 months (5 years) consecutive imprisonment on the firearm charge. Senior United States District Joseph F. Anderson, Jr. accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on March 19, 2015, at his residence in Clover, South Carolina, Polk, while armed with a Harrington & Richardson .32 caliber revolver, sold a quantity of marijuana to a confidential informant. The following day, March 20, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. Thereafter, on March 24, 2015, Polk, while armed with a Smith & Wesson 9mm handgun, sold a quantity of methamphetamine to a confidential informant. On that date, a young child was observed in the same room where the distribution occurred and while Polk waved around the 9mm handgun. Each of the three distributions of drugs was recorded on audio and video by local law enforcement officers. Polk was arrested on state charges on April 9, 2015, and during the arrest, officers recovered the Smith & Wesson 9mm handgun, along with gang paraphernalia, and a residue amount of methamphetamine. After being advised of his rights, which he waived, Polk admitted to being in possession of firearms and being a dues collector for a local gang. At the time of the three distributions, Polk was on federal supervised release from a 2014 federal conviction for felon in possession of a firearm out of the Spartanburg Division. Polk is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for possession of firearm by a felon and his prior state convictions for burglary 2nd degree and grand larceny.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the York County Multi-jurisdictional Drug Enforcement Unit and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####