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11 August 2015
Wilkinsburg Man Pleads Guilty in Safe Streets Task Force Investigation into Drug TraffickingRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of crack cocaine, United States Attorney David J. Hickton announced today.
Larry Washington, 64, of Wilkinsburg, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, co-conspirators were intercepted over the wire brokering crack cocaine deals on behalf of Washington. Also during that timeframe, agents were able to establish surveillance of Washington conspiring with others to possess with intent to distribute and distribute crack cocaine, which was shipped, in powder form, from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Dec. 2, 2015. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued Washington’s bond and conditions of release.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Larry Washington.
Wichita Man Who Tried to Run from Police Gets 5+ Years in Federal PrisonRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to 63 months in federal prison for a firearm violation, U.S. Attorney Barry Grissom said.
Aaron M. Belcher, 33, Wichita, Kan., already is serving time in state prison for a 2013 case in which he shot at police who were chasing him from the scene of a burglary. He will serve the federal consecutively to the sentence in the state case.
In the federal case, Belcher pleaded guilty to one count of unlawful possession of ammunition following a felony conviction. In his plea, he admitted that on Oct. 29, 2012, he was driving a stolen Corvette when a Wichita police officer tried to pull him over. After a high speed chase, he pulled into a driveway of a home in the 100 block of Alexander in Haysville. When the owner of the home heard police sirens, he confronted Belcher. The home owner wrestled Belcher to the ground and held him until police arrived. Police found the ammunition in the stolen car.
Grissom commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case.
West Roxbury Man Previously Convicted for Ponzi Scheme Sentenced to Prison for Violating Court OrdersRead the Press Release
BOSTON – A West Roxbury man was sentenced today for violating an asset freeze and other court orders entered in a civil case brought by the Securities and Exchange Commission (SEC).
Steven Palladino, 57, was sentenced by U.S. District Court Judge Douglas P. Woodlock to two years in prison, which he will not begin serving until after he completes the ten to twelve-year sentence imposed by the Commonwealth of Massachusetts for his conviction in the state Ponzi scheme case. In May 2015, Palladino pleaded guilty to twenty-five counts of criminal contempt in U.S. District Court in Boston.
From May through November 2013, Palladino violated court orders which were imposed as a result of the SEC’s civil case when he incurred thousands of dollars in credit card charges and cash advances – including charges at high-end restaurants and department stores – and did not deposit the proceeds of cash advances into an escrow account established by the Court. In addition, Palladino violated the same court orders in June 2013 when he sold a truck he owned and did not deposit the proceeds into the escrow account. Furthermore, Palladino violated another court order by not undoing his transfers of luxury vehicles to his wife, and the subsequent encumbrance of those luxury vehicles with $137,000 in new loans, by November 2013.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz also expressed appreciation for the significant assistance provided by the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Undocumented Alien with Guns ConvictedRead the Press Release
LAREDO, Texas – A Mexican national living illegally in Laredo has been convicted of having a firearm in violation of federal law, announced U.S. Attorney Kenneth Magidson.
Jose Angel Villarreal-Sanchez, 42, entered his guilty plea this morning before U.S. District Judge Marina Garcia Marmolejo.
Following a tip, law enforcement went to Villarreal-Sanchez’s home in Laredo on May 14, 2015, where he had been living illegally for some time. It was there that agents with Homeland Security Investigations (HSI) discovered he possessed a pistol and a firearm in his bedroom. A criminal complaint was filed the following day which further detailed that agents had also found three baggies of cocaine hidden in some chicken feed in Villarreal-Sanchez’s back yard.
Villarreal-Sanchez has been in custody since his arrest on May 14, 2015, where he will remain pending his sentencing hearing, set for Dec. 7, 2015. At that time, he faces a maximum of 10 years in federal prison and a possible $250,000 fine.
The investigation leading to the charges was conducted by HSI with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez is prosecuting the case.
U.S. Government Files Civil Suit Involving Lincoln Area Mining ClaimsRead the Press Release
HELENA – The United States Attorney’s Office announces today that a civil suit has been filed in federal court against George Kornec, Philip Nappo, and Intermountain Mining and Refining, LLC, in relation to alleged unauthorized illegal actions on mining claims in the Helena National Forest. Kornec and Nappo are the managers or members of Intermountain Mining and Refining, LLC, according to a business entry on the Montana Secretary of State’s website. The civil suit is being brought by attorneys in the Montana United Attorney’s Office on behalf of the United States Forest Service.
“The miners will have their day in court. These disputes will be resolved by the rule of law in a federal courtroom,” said Montana U.S. Attorney Mike Cotter.
“The Forest Service has worked with the owner and operator of White Hope mine for decades,” said T. David Smith, Director of Public and Government Relations for the Forest Service’s Northern Region. “It is unfortunate that today’s action has become necessary. However, we have an obligation to ensure that all activities conducted on National Forest System lands are done so in accordance with the law and federal regulations.”
According to court documents filed today, the United States government asks the federal district court to find that Kornec, Nappo and Intermountain Mining and Refining, LLC, have failed to comply with regulations governing their unpatented mining claims and to find that they are illegally interfering with property of the United States, which is managed by the United States Forest Service. Court filings further state that the government requests that the court permanently enjoin Kornec, Nappo and Intermountain Mining and Refining from such activity in the future until and unless a plan of operation authorizing mining activities has been approved by the United States Forest Service. The Complaint requests that if a plan is not approved, that the building and roads that were constructed without approval be removed and reclaimed, and that Kornec, Nappo and Intermountain Mining and Refining, LLC, be ordered to cease and desist with interfering with public access across the unpatented mining claims.
To access further details and court filings related to this case, please see PACER case reference 15-78, at www.pacer.gov.
Tyler County woman convicted in methamphetamine manufacturing operationRead the Press Release
WHEELING, WEST VIRGINIA – Kate Lynn Baker, 20, of Friendly, West Virginia, was convicted in federal court for her role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Baker was one of six individuals charged in a 19-count federal indictment in June 2015. Baker was discovered in Wetzel County, West Virginia in possession of matches and pseudoephedrine, both commonly used to manufacture methamphetamine.
Baker pled guilty to a criminal Information charging her with one count of “Possession of Materials to be used in the Manufacture of Methamphetamine.” She faces up to four years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants Count Sheriff’s Department investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Two Plead Guilty in Scheme to Bribe DMV Employees to Issue Commercial Driver’s Licenses; Four More ChargedRead the Press Release
SACRAMENTO, Calif. — Two defendants, including a DMV employee, pleaded guilty today to their roles in a conspiracy to sell Class A commercial driver’s licenses (CDLs) without the buyer having to take or pass the required tests, announced United States Attorney Benjamin B. Wagner; Tatum King, Acting Special Agent in Charge for Homeland Security Investigations (HSI) San Francisco; FBI Special Agent in Charge Monica M. Miller; and Frank Alvarez, Chief of Investigations Division, California Department of Motor Vehicles. Four more persons, including two other DMV employees, were charged in a 17‑count indictment unsealed Friday.
According to court documents, between June 2011 and March 2015, three owners of truck driving schools acted as brokers who accepted money from individuals who wanted Class A CDL without having to take and pass the required written and behind-the-wheel driving tests. The brokers used the money to bribe DMV employees to access the DMV’s computer database to submit false information that the individuals had passed the tests. This resulted in the DMV issuing official driver’s licenses to individuals who were not qualified to receive such licenses.
Emma Klem, 45, of Salinas, a DMV employee who worked in a Salinas DMV branch, and trucking school owner Kulwinder Dosanjh Singh, aka Sodhi Singh, 58, of Turlock, were charged earlier in separate criminal pleadings and entered guilty pleas this morning to conspiracy to commit bribery and to commit identity fraud. The indictment, returned Thursday and unsealed Friday, charges trucking school owners Pavitar Dosangh Singh, aka Peter Singh, 55, of Sacramento; and Mangal Gill, 55, of San Ramon; and DMV examiners Andrew Kimura, 30, of Sacramento; and Robert Turchin, 65, of Salinas, with conspiracy, bribery, and fraud in connection with identification documents. The indictment specifically references the involvement of Klem and Sodhi Singh.
“Public corruption is always a high priority for the U.S. Department of Justice, but our mission is particularly crucial when the conduct not only violates the public trust, but endangers public safety,” said U.S. Attorney Wagner. “We depend on the Department of Motor Vehicles to keep the roads of this state safe, and individuals who undermine that function for personal gain must not expect leniency from the justice system. I am pleased that DMV Investigations worked so closely with FBI, HSI, and my office to expose and prosecute this conduct.”
“These investigations and the criminal charges they produced send a very clear and loud message that the Department of Motor Vehicles takes fraud and illegal activity very seriously, and it is absolutely not tolerated,” stated Frank Alvarez, Chief Investigator, California Department of Motor Vehicles. “DMV has already taken action and cancelled or revoked a number of licenses that appear to have been obtained through fraudulent means. The department will continue to work with our federal partners to ensure that justice is served.”
“Public corruption undermines the integrity of government, compromises safety, and damages our trust in public officials and employees,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “The FBI is grateful for the collaboration of the California DMV and HSI during this complex, multi-year investigation. We are committed to working with our federal and state partners to identify and investigate public corruption at any level and urge the public to contact us with any information regarding corruption in government.”
“This scheme enabled unqualified drivers to obtain licenses to operate all types of commercial vehicles,” said Tatum King, acting special agent in charge for HSI San Francisco. “The implications of putting untrained drivers behind the wheel in such cases is frankly chilling. HSI will continue to work closely with its federal and state law enforcement partners to target schemes like this that serve to enrich the perpetrators at the expense of the public’s safety.”
In order to obtain a Class A CDL to operate a commercial truck, such as an 18-wheel cargo truck, applicants must pass both a written test, which is offered in many DMV locations including Sacramento, and a behind-the-wheel test that is offered in a limited number of DMV locations including Salinas. The charges announced today are the result of investigations conducted by the Federal Bureau of Investigation, Homeland Security Investigations (HSI), and DMV Investigations which originated separately, but which combined in the course of the investigation.
The indictment charges three conspiracies. The first began in approximately June 2011 and involved Kimura, Peter Singh, and Gill, who conspired with Klem and Sodhi Singh to obtain Class A CDLs for individuals who had not taken or passed the necessary DMV examinations in return for the payment of money to employees of the DMV (bribery), and to produce identification documents without lawful authority (ID fraud). The indictment alleges that Kimura was a Licensing Registration Examiner who worked in the DMV’s office in Sacramento. He processed applications for Class A and Class B commercial and Class C non‑commercial driver’s licenses. Peter Singh owned and operated a truck driving school in Sacramento and acted as a broker to assist individuals in obtaining Class A, Class B, and Class C driver’s licenses. Gill owned and operated trucking schools in Fremont, Lathrop, Fresno, and Salinas and acted as a broker to assist individuals in obtaining Class A, Class B, or Class C licenses. Sodhi Singh owned and operated a truck-driving school in Turlock and also acted as a broker to assist individuals in obtaining Class A, Class B, and Class C licenses. Klem was a Motor Vehicle Representative who worked in the DMV’s office in Salinas. Part of her job duties included processing applications for Class A, Class B, and Class C licenses.
The second alleged conspiracy to commit bribery and ID fraud involved Gill, Klem, and DMV employee Robert Turchin, who was a Licensing-Registration Examiner working at the DMV facility in Salinas. According to the indictment, from July 2012 until April 2015, Gill acted as a broker for individuals who desired to obtain Class A or Class B CDLs without taking the requisite DMV examinations. He paid Turchin and Klem and other DMV employees to alter DMV records so that Class A and Class B CDLs would be issued to individuals who were not qualified to receive such licenses.
According to the indictment, the third conspiracy began in April 2013 and continued until July 2015 in Sacramento. It is alleged that Peter Singh paid money to Kimura to access the DMV’s computer database and alter individuals’ electronic DMV records to fraudulently and incorrectly indicate that applicants had passed examinations for Class C licenses, had passed the written examination for Class A CDLs, or had fulfilled the requirements for a Class A or Class B CDL renewal. These incorrect and fraudulent entries in the DMV database caused the DMV to issue licenses to unqualified individuals.
As part of the guilty pleas entered this morning, Sodhi Singh admitted accepting money to bribe DMV employees to obtain CDLs for individuals, and DMV employee Emma Klem admitting changing DMV data to indicate that those individuals had passed behind-the-wheel tests, when in fact they had never appeared to take the test.
Court documents indicate that the number of CDLs issued as a result of the scheme could number over 100. The investigation is continuing. DMV has already cancelled or revoked a number of licenses that appear to have been fraudulently procured, and will be reviewing the evidence to determine what additional actions may be appropriate.
These cases are the product of investigations by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles’ Investigations Division, Office of Internal Affairs. Assistant United States Attorneys Todd Pickles and Rosanne L. Rust are prosecuting the cases.
Klem and Sodhi Singh are scheduled to be sentenced on November 17, 2015. They face a maximum statutory penalty of five years in prison and a $250,000 fine for each count. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Peter Singh and Andrew Kimura were arraigned on August 7, 2015, and entered pleas of not guilty. Turchin and Gill are scheduled to be arraigned on Friday, August 14, 2015. If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two New York City Residents Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
Knife-Wielding Defendants Allegedly Attacked Federal Law Enforcement Officers
Yesterday, a federal grand jury in the Eastern District of New York returned an indictment charging Munther Omar Saleh, 20, of Queens, New York, with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), and assault and conspiracy to assault federal officers. The same indictment also charges Fareed Mumuni, 21, of Staten Island, New York, with conspiring and attempting to provide material support to ISIL, assault and conspiracy to assault federal officers and attempted murder of federal officers.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).
The defendants’ arraignments are scheduled for Aug. 20, 2015, at 11:00 a.m. EDT, before U.S. Magistrate Judge James Orenstein of the Eastern District of New York at the U.S. Courthouse in Brooklyn, New York.
As alleged in the indictment and in other court filings, during the conspiracy, the defendants expressed fervent support for ISIL. Saleh and Mumuni conspired to conduct an attack in the United States, including plotting to use a pressure cooker bomb in the New York metropolitan area on behalf of ISIL. On June 13, 2015, Saleh and another individual were arrested in Queens after they approached a federal agent while armed with knives. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after repeatedly stabbing an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s body armor. During a search of the vehicle used by Mumuni, investigators recovered a second large knife.
“According to the indictment, Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to seek justice against those who conspire to provide material support to designated foreign terrorist organizations – and we will relentlessly pursue any individuals who attempt to harm the brave law enforcement officials who risk their lives to protect us.”
“Both Munther Omar Saleh and Fareed Mumuni allegedly conspired to provide material support to ISIL. Both men also attacked law enforcement officers who work to keep our communities safe,” said Acting U.S. Attorney Currie. “The officers exercised extraordinary skill and restraint in safely subduing the defendants, who will now face the full force of justice in federal court.”
“These indictments remind us of the dangers faced by law enforcement and the community alike,” said Assistant Director in Charge Rodriguez. “The FBI remains vigilant in its pursuit against violence and restrained in its apprehension of such offenders. We are grateful for the safety of our agents and will continue to work to eliminate threats to our country with the help of our law enforcement partners.”
“Stabbing an FBI agent and providing material support to a designated terrorist organization are a recipe for indictment, as alleged,” said Commissioner Bratton. “I commend the agents and detectives from the Manhattan-based Joint Terrorism Task Force and prosecutors in the Eastern District for their work on this case.”
If convicted, Mumuni faces a maximum sentence of 85 years’ imprisonment and Saleh faces a maximum sentence of 65 years’ imprisonment. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda and Ian C. Richardson of the Eastern District of New York, with assistance provided by Trial Attorney Robert Sander of the Justice Department’s Counterterrorism Section.
Saleh and Mumuni Indictment
Two New York City Residents Charged with Conspiracy to Provide Material Support to IsilRead the Press Release
WASHINGTON – Yesterday, a federal grand jury in the Eastern District of New York returned an indictment charging Munther Omar Saleh, of Queens, New York, with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), and with assaulting and conspiring to assault federal officers. The same indictment also charges Fareed Mumuni, of Staten Island, New York, with conspiring and attempting to provide material support to ISIL, assaulting and conspiring to assault federal officers, and with attempted murder of federal officers. The defendants’ arraignments are scheduled for August 20, 2015 at 11 a.m. EDT before United States Magistrate Judge James Orenstein at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI New York Field Office, and Commissioner William J. Bratton of the New York City Police Department (NYPD).
As alleged in the indictment and in other court filings, during the conspiracy, the defendants expressed fervent support for ISIL. Saleh and Mumuni conspired to conduct an attack in the United States, including plotting to use a pressure cooker bomb in the New York metropolitan area on behalf of ISIL. On June 13, 2015, Saleh and another individual were arrested in Queens after they charged at a federal officer while armed with knives. On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni was arrested after repeatedly stabbing an FBI agent in the torso with a large kitchen knife. Fortunately, the knife did not penetrate the agent’s body armor. During a search of the vehicle used by Mumuni, investigators recovered a second large knife.
“According to the indictment, Munther Omar Saleh and Fareed Mumuni conspired to provide material support to ISIL and devised a plan to conduct an attack in New York. During his arrest, Mumuni stabbed an FBI agent numerous times, but thankfully the agent’s body armor protected him from the defendant’s attack and the defendant was safely apprehended by law enforcement,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“Both Munther Omar Saleh and Fareed Mumuni allegedly conspired to provide material support to ISIL. Both men also attacked law enforcement officers who work to keep our communities safe,” said Acting U.S. Attorney Currie. “The officers exercised extraordinary skill and restraint in safely subduing the defendants, who will now face the full force of justice in federal court.”
“These indictments remind us of the dangers faced by law enforcement and the community alike. The FBI remains vigilant in its pursuit against violence and restrained in its apprehension of such offenders. We are grateful for the safety of our agents and will continue to work to eliminate threats to our country with the help of our law enforcement partners,” said FBI Assistant Director in Charge Rodriguez.
“Stabbing an FBI agent and providing material support to a designated terrorist organization are a recipe for indictment, as alleged. I commend the agents and detectives from the Manhattan-based Joint Terrorism Task Force and prosecutors in the Eastern District for their work on this case,” said Police Commissioner Bratton.
If convicted, Mumuni faces a maximum sentence of 85 years’ imprisonment and Saleh faces a maximum sentence of 65 years’ imprisonment. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson of the Eastern District of New York, with assistance provided by Trial Attorney Robert Sander of the Justice Department’s Counterterrorism Section.
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15-CR-393 (EDNY)
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Two Caldwell Men Admit to Unlawfully Possessing FirearmsRead the Press Release
BOISE – Gustavo Collado Rodriguez, 19, and David Angel Prieto, 22, both of Caldwell, Idaho, pleaded guilty today in United States District Court to unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced.
According to information presented in court, police officers responded to a residence in Caldwell, Idaho, after a person called 911 for help. The person told officers that two men came to the residence and one of the men pointed a handgun at an occupant of the home. Police officers followed footprints in the snow to a nearby shed. Inside the shed, officers found Rodriguez and Prieto along with a sawed-off 12 gauge shotgun and a 9 millimeter pistol with a high capacity magazine loaded with hollow point ammunition. Rodriguez is prohibited from possessing firearms because he is an alien illegally and unlawfully in the United States. Prieto is prohibited from possessing firearms because he was previously convicted of the felony crime of possession of a controlled substance. As part of the plea agreements, Rodriguez and Prieto agreed to forfeit the firearms involved in the offense.
The charge of unlawfully possessing firearms is punishable by up 10 years of imprisonment, three years of supervised release, and a maximum fine of $250,000. Rodriguez and Prieto are scheduled for sentencing on November 4, 2015 by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Caldwell Police Department and the Treasure Valley Metro Violent Crimes Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Canyon County Prosecutor’s Office, the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Three Sentenced to Lengthy Federal Prison Sentences for Roles in December 2014 Armored Car HeistRead the Press Release
AMARILLO, Texas — Three men who pleaded guilty to their respective roles in a December 2014 armored car heist in Amarillo, Texas, have been sentenced to lengthy federal prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Britt Michael Gresham, 24, and Brian Keith Hodge, 43, were sentenced today by U.S. District Judge Mary Lou Robinson to 78 months and 63 months, respectively, in federal prison. Last week, co-conspirator Trent Michael Cook, 24, was sentenced by Judge Robinson to 97 months in federal prison. Each pleaded guilty in May 2015 to one count of conspiracy to interfere with commerce by robbery.
According to documents filed in the case, Cook purchased firearm that he, Gresham, and Hodge planned to use to rob the vault of Rochester Armored in Amarillo on December 20, 2014. The plan involved Cook using his status as an employee of Rochester Armored to gain access to the company vault that contained millions of dollars in U.S. currency, so that the three defendants could commit the armed robbery of the business. Cook and Gresham also purchased a van to load and transport bags of U.S. currency taken in the robbery.
Hodge further attempted to obtain a location in Colorado for the defendants to hide after the robbery; in fact, Cook and Gresham were arrested in Colorado Springs, Colorado. When questioned by a Colorado Springs Police Department detective, Cook admitted that he and Gresham stole the money from the Rochester armored car on December 22, 2014. Cook also admitted to initially agreeing with Gresham and Hodge to rob the Rochester vault on December 20, 2014. Cook admitted they were all armed with Smith and Wesson, Model M&P, 9-millimeter caliber pistols when they went to Rochester on December 20, 2014, to attempt the robbery. Cook said they were not able to complete the robbery because there were additional employees at Rochester that he did not expect to be there, and he notified Gresham and Hodge who were parked outside. Cook also said the white Ford van was to be used to load the money and other items to take to Colorado.
Court documents further state that after the defendants were unable to rob to vault, Cook and Gresham decided to steal money from a Rochester armored car, which they did.
The Amarillo Police Department, the Colorado Springs Police Department, the Potter County District Attorney’s Office and the FBI investigated the case. Assistant U.S. Attorney Tim Hammer prosecuted.
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Third Defendant Pleads Guilty to Wire Fraud and Possession of Counterfeit Credit CardsRead the Press Release
BOISE – Rafael Perez, 31, of Guaymas, Mexico, pleaded guilty today in federal court to one count of wire fraud and one count of possession of fifteen or more counterfeit credit cards, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Perez and his co-defendants, Javier Miranda-Molina and Irving Gonzalez-Bocanegra, were present and traveling together in Boise on March 31, 2015, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. The defendants engaged in a number of transactions, at a variety of stores, using credit cards the defendants knew to be counterfeit. The defendants fraudulently obtained merchandise valued at approximately $5,117.63.
Prior to arriving in Boise, on March 29 and 30, 2015, the defendants engaged in similar fraudulent transactions in Montana and obtained merchandise valued at approximately $8,184.01.
When arrested in Boise, the defendants were working together to package and ship a variety of merchandise purchased with counterfeit credit cards, such as GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems. They had in their joint possession a number of counterfeit credit cards. These included: approximately eighty-four counterfeit credit cards taped into the pages of a magazine; three counterfeit credit cards recovered from the trash, and three counterfeit credit cards found in the driver’s side door pocket of their rental car. Each of these counterfeit cards contained one of the defendant’s names embossed on the front of the card and a real but unauthorized account number encoded to the magnetic strip on the back of the card. Perez agreed to the forfeiture of, and to abandon any interest in, all credit cards, gift cards, merchandise, and other items seized at his arrest.
The defendants were charged with wire fraud because all of the described transactions resulted in wire communications that were foreseeable to the defendants, in particular, interstate transmissions by wire of information from the point of sale terminals in the stores to the credit card payment processers and to the account-issuing banks located in different states.
“This case demonstrates how federal and local law enforcement cooperate with Idaho businesses to protect business integrity and consumer confidence from the costs and victimization imposed by fraud,” said Olson.
Wire fraud is punishable by a term of imprisonment of up to twenty years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100. Possession of 15 or more counterfeit and unauthorized access devices is punishable by a term of imprisonment of up to ten years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100.
Perez’s sentencing is set before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise on October 29, 2015.
Co-defendant Javier Miranda-Molina, 22 of Sonora, Mexico, pleaded guilty on August 4, 2015 and is set for a sentencing hearing on October 14, 2015. Co-defendant Irving Gonzalez-Bocanegra, 25, of Hermosillo, Mexico pleaded guilty on August 6, 2015 and is set for sentencing on October 27, 2015.
The case was investigated by the United States Secret Service and the Boise Police Department.
Technology Integration Group Agrees to Pay $5.9 Million to Settle False Claims Act AllegationsRead the Press Release
Company Previously Paid $4.6 Million in Restitution as Part of Non-Prosecution Agreement in Related Criminal Investigation
PC Specialists Inc., doing business as Technology Integration Group (TIG), has agreed to pay the United States $5.9 million to settle allegations that the company inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA) for use at Sandia National Laboratories in Albuquerque, New Mexico. TIG, headquartered in San Diego, buys computers and other technology products for resale to other purchasers.
“The resources available to achieve the important goals carried out by our national laboratories are precious and limited,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that diverting funds from the critical mission of the laboratories by inflating costs and making false claims or causing others to make false claims for government funds will not be tolerated.”
From 2003 to 2013, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA. The NNSA purchased the computers for use at Sandia National Laboratories. The United States alleged that TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract and causing false claims to the government for the inflated prices.
“Fraud involving government contracts will be zealously pursued in New Mexico,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “The U.S. Attorney’s Office and its law enforcement partners are committed to recovering losses, preventing fraud, holding accountable those who exploit government contracts and ensuring that the taxpayers’ monies are properly spent.”
In a separate but related matter, in April 2015, TIG entered into a non-prosecution agreement with the U.S. Attorney’s Office of the District of New Mexico regarding allegations that three employees in TIG’s Albuquerque branch office engaged in a scheme to defraud the United States by inflating the amounts it charged Sandia for computers. The non-prosecution agreement in that matter required TIG to terminate the employment of the three employees in its Albuquerque branch office – a vice president, a senior account executive and an accounts executive – who participated in and profited from the scheme. The non-prosecution agreement also required TIG to retain and pay for an independent monitor selected by the U.S. Attorney’s Office who is responsible for monitoring TIG’s compliance with the agreement, and TIG policies, procedures and training relating to federal government contracts over the agreement’s three-year term.
The allegations resolved by the civil settlement announced today arose from a lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery. Mr. Granger’s share of the settlement has not yet been determined.
These resolutions were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of New Mexico and the U.S. Department of Energy’s Office of Inspector General (DOE-OIG). The criminal investigation was conducted by DOE-OIG, the FBI’s Albuquerque Division and the Albuquerque Office of the Internal Revenue Service-Criminal Investigation.
The False Claims Act lawsuit is captioned United States ex rel. Granger v. PC Specialists, Inc. d/b/a/ Technology Integration Group, No. 14-cv-00633 (D.N.M.). The claims resolved by today’s civil settlement and the earlier non-prosecution agreement are allegations only; there has been no determination of guilt or liability.
Technology Integration Group Agrees to Pay $5.9 Million to Settle False Claims Act AllegationsRead the Press Release
ALBUQUERQUE – PC Specialists Inc., doing business as Technology Integration Group (TIG), has agreed to pay the United States $5.9 million to settle allegations that the company inflated the price of computers sold through another company to the National Nuclear Security Administration (NNSA) for use at Sandia National Laboratories in Albuquerque, New Mexico. TIG, headquartered in San Diego, buys computers and other technology products for resale to other purchasers.
“The resources available to achieve the important goals carried out by our national laboratories are precious and limited,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that diverting funds from the critical mission of the laboratories by inflating costs and making false claims or causing others to make false claims for government funds will not be tolerated.”
From 2003 to 2013, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA. The NNSA purchased the computers for use at Sandia National Laboratories. The United States alleged that TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract and causing false claims to the government for the inflated prices.
“Fraud involving government contracts will be zealously pursued in New Mexico,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “The U.S. Attorney’s Office and its law enforcement partners are committed to recovering losses, preventing fraud, holding accountable those who exploit government contracts and ensuring that the taxpayers’ monies are properly spent.”
In a separate but related matter, in April 2015, TIG entered into a non-prosecution agreement with the U.S. Attorney’s Office of the District of New Mexico regarding allegations that three employees in TIG’s Albuquerque branch office engaged in a scheme to defraud the United States by inflating the amounts it charged Sandia for computers. The non-prosecution agreement in that matter required TIG to terminate the employment of the three employees in its Albuquerque branch office – a vice president, a senior account executive and an accounts executive – who participated in and profited from the scheme. The non-prosecution agreement also required TIG to retain and pay for an independent monitor selected by the U.S. Attorney’s Office who is responsible for monitoring TIG’s compliance with the agreement, and TIG policies, procedures and training relating to federal government contracts over the agreement’s three-year term.
The allegations resolved by the civil settlement announced today arose from a lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and share in the recovery. Mr. Granger’s share of the settlement has not yet been determined.
These resolutions were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of New Mexico and the U.S. Department of Energy’s Office of Inspector General (DOE-OIG). The criminal investigation was conducted by DOE-OIG, the FBI’s Albuquerque Division and the Albuquerque Office of the Internal Revenue Service-Criminal Investigation.
The False Claims Act lawsuit is captioned United States ex rel. Granger v. PC Specialists, Inc. d/b/a/ Technology Integration Group, No. 14-cv-00633 (D.N.M.). The claims resolved by today’s civil settlement and the earlier non-prosecution agreement are allegations only; there has been no determination of guilt or liability.
Tallulah man sentenced to 10 years in prison for selling methamphetamineRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Tallulah man was sentenced Monday to 120 months in prison for selling methamphetamine.
Marvin Brown, 45, of Tallulah, La., was sentenced by U.S. District Judge Robert G. James on one count of distribution of methamphetamine. He was also sentenced to five years of supervised release. According to evidence presented at the May 1, 2015 guilty plea hearing, law enforcement agents recorded Brown selling 109.1 grams of methamphetamine on July 9, 2014 for $6,000 in cash in Tallulah. As agents approached to arrest him, Brown fled. He was later captured after abandoning his vehicle and fleeing on foot.
The DEA conducted the investigation. Assistant U.S. Attorney F. Michael O’Mara prosecuted the case.
South Side Resident Charged with Interstate StalkingRead the Press Release
PITTSBURGH- A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of interstate stalking, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on August 5, named Frederick H. Banks, 47, as the sole defendant.
According to the indictment Banks harassed an individual through telephone calls and a Craigslist posting.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Magistrate Judge Keith A. Pesto ordered Banks detained pending trial.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sixth Person Indicted for Role in Federal Feeding Program FraudRead the Press Release
LITTLE ROCK— Another feeding program sponsor has been indicted for his role in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Reuben Nims, age 51, of Little Rock, has been arrested after the filing of a 10-count indictment.
The indictment, returned by a Federal Grand Jury on August 5, 2015, charges Nims with mail fraud as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Following his arrest Tuesday Nims was arraigned and released on bond by Judge Joe J. Volpe.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Nims operated as a sponsor for a feeding program through an organization called Blessed Thru Success. It alleges that a relative of Nims worked for DHS and processed applications from sponsors applying to participate in the feeding programs.
The indictment alleges that Nims applied with DHS to participate as a sponsor and that his relative at DHS approved his applications. The indictment states that he falsely represented his average daily attendance and the number of meals provided; no children were actually fed. In this way, Nims stole over $182,000 of federal funds, according to the indictment.
"With reportedly over 200,000 children at risk of hunger in Arkansas because they are not getting nutritious food, this indictment is a small step toward ensuring the funding for nutritious feeding programs in Arkansas is actually feeding children," Thyer said. "This is the third indictment and sixth person charged in connection to feeding programs in Arkansas. In December 2014, my office indicted three individuals for their roles in a conspiracy to steal federal money through feeding programs administered by the Department of Agriculture. I expect that as the investigation into Arkansas’ feeding programs continue, there will be additional indictments. We will not tolerate the blatant disregard of the welfare of Arkansas’ children by those who steal the very money meant to alleviate the burgeoning need to put nutritious food in the mouths of hungry children. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to my office at [email protected]."
The statutory penalty for mail fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture – Office of the Inspector General, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Seventy Defendants Facing Multiple Drug and Gun Charges in 40 Separate Indictments Following Major Investigation in Mississippi CountyRead the Press Release
BLYTHEVILLE, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Scott Ellington, Prosecuting Attorney for the Second Judicial District of Arkansas, announced today the simultaneous unsealing of 40 federal indictments charging 70 defendants in a major operation aimed at curbing drug trafficking and gun violence in Blytheville and Mississippi County. The indictments were returned by the Grand Jury on August 5, 2015, and were unsealed today following a coordinated roundup of the charged defendants.
The Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named Blynd Justus, began in 2013, with a goal to target steadily increasing drug and gun crime in Mississippi County. Early Tuesday morning 574 law enforcement officers, including more than 300 tactical officers, helped execute the arrest warrants in a targeted takedown that resulted in the arrests of 50 defendants on various federal firearm and drug charges, including eleven defendants who were already in state custody. Twenty defendants are now fugitives. Most of the defendants are residents of Blytheville (see attachment for complete list of defendants and charges).
"When I was confirmed as U.S. Attorney for the Eastern District of Arkansas five years ago I made a commitment to help clean up the Arkansas Delta," Thyer said. "It has been evident for some time that drugs and guns are overrunning the entire Arkansas Delta in general, and Mississippi County in particular. Today’s operation is a signal to those criminals that the law enforcement community at all levels will find you and stop you. Our collective goal is to return these communities to their law-abiding citizens. And while the 40 indictments announced today are a huge step toward this goal, our commitment to helping our friends in this part of the state will continue long after today."
From January 2014 through June 2015, agents with the FBI and Second Judicial District Drug Task Force coordinated more than 160 controlled purchases of drugs and/or firearms, resulting in the acquisition of more than 19 pounds of methamphetamine and 89 illegally possessed firearms, several of which were stolen. Also, more than 10 ounces of crack cocaine was purchased in the investigation. A majority of the 70 defendants are convicted felons.
"The arrests that were carried out today show our unwavering determination to disrupt violent gang activity and dismantle illegal sales of firearms and drugs in our state," Resch said. "Today’s operation, which includes 40 indictments and 70 defendants, combined with the 72 arrests during Delta Blues and the 24 arrests during Delta Crossroads represent the significant commitment of the FBI and the USAO to target violent criminals in eastern Arkansas. We appreciate the concentrated efforts made by our partners, USAO, ATF, U.S. Marshals, DEA, IRS, 2nd Judicial DTF, Arkansas State Police, Arkansas National Guard Counter Drug Unit, Mississippi County Sheriff’s Office, the Blytheville and Osceola Police Departments, and the SE Missouri Drug Task Force."
"On behalf of our local law enforcement agencies and the cities of Blytheville and Osceola, I want to thank U.S. Attorney Chris Thyer and FBI Special Agent In Charge David Resch for their commitment to help the good people of Mississippi County take back our community from those destroying it with crime and violence," prosecuting attorney Ellington said. "Lieutenant Bobby Ephlin, Lieutenant Roy Coleman, Deputy Prosecutor Corey Seats and all the officers of the Second Judicial District Drug Task Force worked hard in conjunction with FBI Special Agent Ed Jernigan to make this operation successful. Sheriff Dale Cook, Chief Ross Thompson and Chief David Gladden deserve thanks for their continued support of the Task Force.
"Our community is worth fighting for, and I believe in Blytheville and Osceola. Cleaning up this community begins with holding people accountable for their actions. Today, with the help of the FBI and the Arkansas State Police, we took a big step toward taking back our community from the thugs and criminals who choose to sell drugs and guns, rather than contribute to it in a positive manner."
This is the third major operation centered in Mississippi County that the United States Attorney’s office for the Eastern District has been involved in since 2013, and the largest. In March 2013, the Grand Jury returned seven indictments naming 19 defendants, and in January 2014, the Grand Jury returned an indictment naming 25 defendants. Delta Blues was an operation centered in Helena-West Helena, and Delta Crossroads was centered in West Memphis. All indictments included multiple drug charges.
"This type of investigation shows the great teamwork and commitment of the federal, state and local agencies, and the Arkansas State Police in combating drug and gun trafficking in the State of Arkansas," Arkansas State Police Colonel Bill Bryant said. "All of these agencies combined their assets and resources to disrupt and dismantle these drug trafficking organizations."
In addition to the arrest warrants served today, the IRS served two search warrants at properties owned by another individual not indicted, and a financial investigation continues.
"The role of IRS CI (Criminal Investigation) in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations," said Christopher A. Henry, IRS Special Agent in Charge. "We are proud to work with our law enforcement partners by providing our financial investigative expertise. Today’s enforcement actions are an example of how the various law enforcement agencies in this district work together to stop the flow of illegal drugs into our communities."
The counts in today’s unsealed indictments include conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, distribution of crack cocaine and cocaine, use of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, and use of a telephone to facilitate a drug trafficking crime. (See attached defendant/indictment list)
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Joe J. Volpe beginning at 10 a.m. on Thursday, August 13, 2015. Defendants already in custody will be arraigned on August 27, 2015, at 2 p.m.
The investigation was conducted by FBI, in partnership with the 2nd Judicial District Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office. Agencies assisting in today’s arrest operation include the Arkansas State Police, the Drug Enforcement Administration (DEA), the Arkansas National Guard Counter Drug Unit, the Southeast Missouri Drug Task Force (SEMO DTF), and the Internal Revenue Service-Criminal Investigations. The 40 indictments are being prosecuted by a team of multiple Assistant United States Attorneys, headed by Chris Givens and Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
(Blynd Justus Defendant List)
Scranton Man Affiliated with "TF Mafia" Sentenced to 57 Months in Prison on Drug Conspiracy ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Vincent Fearon, age 33, of Scranton, Pennsylvania, was sentenced today in federal court in Scranton, by Senior United States District Edwin Kosik, to serve 57 months in prison on a charge of conspiracy to distribute crack cocaine. Fearon was ordered to serve an additional 3 years under court supervision upon his release from prison.
Fearon was charged after an investigation conducted by the Pennsylvania State Police, the Federal Bureau of Investigation, the Wilkes-Barre City Police Department, the New Jersey State Police and the Internal Revenue Service. The investigation commenced after a routine traffic stop in January 2012, conducted on Interstate 81 in Susquehanna County by the Pennsylvania State Police of a car driven by Paul Rivera of Brooklyn, New York. During the stop, troopers discovered a distribution quantity of cocaine in the trunk of the vehicle. Rivera and other occupants of the car were initially charged with drug offenses in state court.
Further investigation by multiple law enforcement agencies revealed that Rivera was affiliated with “TF Mafia,” a group engaged in criminal activity as well as the production of rap music videos. Ultimately, the investigation resulted in racketeering and other charges being brought in the Eastern District of New York against Rivera and Michael Garrett, also of Brooklyn.
Rivera and Garrett were convicted at trial in federal court in Brooklyn earlier this year and face mandatory minimum sentences of life in prison as a result of the jury’s finding they committed a murder in furtherance of their racketeering activity.
Vincent Fearon, Hassan Woods and others were charged in federal court in Scranton as a result of their involvement in drug trafficking with TF Mafia. Woods was previously sentenced by Judge Kosik to 10 years in prison.
United States Attorney Peter Smith used the occasion of Fearon’s sentencing today to present letters of commendation to 14 individuals from the Pennsylvania and New Jersey State Police, the FBI Scranton Task Force and FBI New York Office and local law enforcement who participated in the investigation.
The case was prosecuted in the Eastern District of New York by Assistant United States Attorneys Taryn Merkl, Alixandra Smith and Michael Robotti. The case was prosecuted in the Middle District of Pennsylvania by Assistant United States Attorney William S. Houser.
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Schenectady Man Sentenced for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Adam Rey Gonzalez, 28, of Schenectady, New York, was sentenced yesterday by the Honorable Thomas J. McAvoy to 220 months in federal prison followed by a lifetime term of supervised release, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. The sentence follows Gonzalez’s April 14, 2015 guilty plea to distribution of child pornography.
"The distribution of child pornography perpetuates the sexual exploitation of the children depicted in such images, re-victimizing them over and over again," said United States Attorney Richard S. Hartunian. "My office will continue to work diligently with the FBI and other law enforcement agencies to uncover and punish those who distribute such unspeakable images."
"Today’s sentencing reflects the commitment of the FBI to apprehend and bring to justice those who commit crimes against children," said Special Agent-in-Charge Andrew W. Vale. "Child pornography is not a victimless crime, and we are committed to protecting our children from sexual predators such as Mr. Gonzalez."
Gonzalez, who has two prior convictions for sexual offenses, including the sexual abuse of a minor, was a registered sex offender when federal agents identified him as a prolific online trader of child pornography known as "Redart-yob." Federal agents searched Gonzalez’s Schenectady home and located a hidden computer that contained a large collection of child pornography, primarily focused on the sexual abuse of young boys. At today’s sentencing hearing, Judge McAvoy described the materials Gonzalez traded as "horrific" and said that victims of child pornography "have their lives stolen from them." Gonzalez was ordered to pay $12,000 in restitution to a victim.
This case was investigated by the Federal Bureau of Investigation, Albany Division and was prosecuted by Assistant United States Attorneys Wayne A. Myers and Emily Farber, and Special Assistant United States Attorney Amanda Cox
Richmond Man Pleads Guilty to Series of RobberiesRead the Press Release
RICHMOND, Va. – Marcus D. Bennett, 31, of Henrico County, Virginia, pleaded guilty today to charges of robbery and brandishing a firearm in furtherance of that robbery.
According to court documents, on Jan. 9, 2015, Bennett entered a McDonald’s restaurant located in Henrico, Virginia, while armed with a revolver. Once inside, Bennett approached the shift manager, and while brandishing the firearm, ordered the manager to open the safe and hand over the money. After getting the money, Bennett went to the cashier who was working the drive through window, and demanded money from the register.
In entering his plea today before Magistrate Judge David J. Novak, Bennett admitted in the signed statement of facts that he had committed three additional armed robberies, to include a second McDonald’s restaurant in Henrico, and two subway restaurants, one in Henrico and the other in Richmond.
Bennett was arrested in May 2015 after an investigation was conducted by officers and detectives with the Henrico and Richmond Police Departments in conjunction with the FBI’s Central Virginia Violent Crime Task Force.
Bennett faces a sentence of up to 20 years in prison for the robbery, and a maximum of life in prison for brandishing the firearm when he is sentenced on Nov. 13, 2015. Bennett faces additional time in prison because he was on federal supervised release when he committed this series of robberies. 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; Douglas A. Middleton, Chief of Henrico County Police Division; and Ray J. Tarasovic, Chief of City of Richmond Police Department, made the announcement after the plea was accepted by Senior District Judge James R. Spencer.
This case was investigated by the FBI, members of the Henrico County Police Department, and members of the Richmond Police department. Assistant U.S. Attorney Angela Mastandrea-Miller is 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-134.
Raleigh Man Sentenced for Submitting Fraudulent Tax Refund ClaimsRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced AKI D. STANLEY, 41, of Raleigh, to serve 45 months in prison, followed by a three-year term of supervised release. Pursuant to his plea agreement, STANLEY agreed to pay $378,834 in restitution to the Internal Revenue Service.
On February 10, 2015, STANLEY plead guilty to making and presenting a false tax refund claim to the IRS, in violation of 18 U.S.C. § 287. According to the charging instrument and other court filings, as well as today’s sentencing proceedings, STANLEY engaged in a scheme to prepare and file fraudulent federal tax returns in the names of others, including homeless individuals in Raleigh from whom STANLEY obtained personal identifying information. The returns that STANLEY unlawfully prepared and submitted to the Internal Revenue Service claimed false tax refunds totaling $487,359.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Adam F. Hulbig represented the United States.
Puerto Rican Woman Sentenced to 30 Months in Prison for Smuggling Cocaine into New JerseyRead the Press Release
NEWARK, N.J. – A woman from Puerto Rico was sentenced today to 30 months in prison for trying to smuggle 2.9 kilograms of cocaine through Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Kenia Diaz, 24, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging her with one count of possessing cocaine with intent to distribute. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 22, 2013, Diaz arrived at Newark Liberty International Airport on a flight from Puerto Rico. During a routine inspection, a canine detected a controlled substance inside Diaz’s suitcase. After searching the suitcase, agents recovered approximately 2.9 kilograms of cocaine.
In addition to the prison term, Judge Wigenton ordered Diaz to serve three years of supervised release.
U.S. Attorney Fishman praised special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Kevin Carlucci Esq., Newark
Previously Convicted St. Mary’s County Sex Offender Pleads Guilty to Attempting to Induce a Minor to Have SexRead the Press Release
Greenbelt, Maryland – Nicholas Edward Seskar, Sr., age 41, of Lusby, Maryland, pleaded guilty today to attempting to induce a minor to engage in sex.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
In 2006, Seskar admitted to having sex with a 15 year old when he was 30 years old. He pleaded guilty in the Circuit Court for St. Mary’s County to one count of sex offense in the third degree and was sentenced.
According to his plea agreement, from March 23 to April 2, 2015, Seskar communicated on Facebook with an individual named “Tiffany” who he believed was 15 years old. “Tiffany” was in fact an undercover law enforcement officer with the St. Mary’s County Sheriff’s Office. Over time, his Facebook conversations became extremely graphic regarding the sexual acts he wanted to perform on “Tiffany.” Seskar told the undercover police officer that he wanted to meet to have sex, and that he had slept with a 15 year old when he was 30 years old.
On April 2, 2015, Seskar arrived at a pre-arranged meeting place and was arrested by officers with the St. Mary’s County Sheriff’s Office.
As part of his plea agreement, Seskar must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Seskar and the government have agreed that if the Court accepts the plea agreement, Seskar will be sentenced to 15 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 18, 2015 at 2:30 p.m.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the St. Mary’s County Sheriff’s Office, HSI Baltimore and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley and Special Assistant U.S. Attorney Jennifer Wine of the U.S. Department of Justice, who are prosecuting the case.
Pottawattamie County Resident Sentenced to 30 Months for Possessing Child PornographyRead the Press Release
COUNCIL BLUFFS, IA- On August 6, 2015, David Leon Breneman, a 49 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison for possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered that Breneman serve 10 years of supervised release following the period of imprisonment. During the period of supervised release, Breneman will be monitored by the United States Probation Office for compliance with conditions of release set by the Court at the time of sentencing.
An investigation by law enforcement revealed that from May to December of 2012, Breneman had obtained images from the internet of prepubescent children engaged in sexually explicit conduct. Breneman pleaded guilty to the charge of possession of child pornography on April 2, 2015.
The investigation was conducted by the Cyber Crime Unit of the Iowa Division of Criminal Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Plainwell Man, Benjamin James Cance, Charged with Illegal Arms Exportation, Other CrimesRead the Press Release
Benjamin James Cance Indicted For Shipping Gun Components Overseas, Money Laundering, and Illegal Possession of a Machinegun
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today the indictment of Benjamin James Cance. Cance, age 30, is charged with three crimes. The first alleges that he illegally shipped gun components that are on the Federal Munitions List overseas. The second charge alleges that he engaged in money laundering by using the profits from this business to purchase a house. Finally, Cance is charged with illegal possession of an unregistered machinegun. International arms shipment is punishable by imprisonment for up to 20 years; the maximum penalty for money laundering and possession of a machinegun is ten years in prison.
In pretrial filings with the court, the government disclosed that Cance’s illegal dealings with his overseas customers were allegedly conducted through illegal internet sites, referred to as the "darknet." He also allegedly utilized electronic currencies, such as Bitcoin, to get paid for his services in an effort to hide the nature of his activities.
The case is assigned to U.S. District Judge Robert Holmes Bell for disposition. On August 11, 2015, Cance appeared before Magistrate Judge Phillip J. Green to answer the charges and entered a plea of not guilty. He was placed on bond at that time. No trial date has yet been set.
The case was assigned to Timothy VerHey, Assistant U.S. Attorney, for prosecution. Investigation of the case is being conducted by the Department of Homeland Security, Immigration and Customs Enforcement, the Internal Revenue Service, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Ohio man sentenced to 10 years for heroin, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – LeDon Gaither, 38, of Cleveland, Ohio, was sentenced today to 121 months in prison for heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Gaither participated in a drug trafficking operation in which heroin and cocaine were transported across state lines from Cleveland, Ohio into Northern West Virginia. The drugs were then distributed and sold in Ohio and Marshall Counties in West Virginia.
Gaither pled guilty in May 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Schedule I and Schedule II Controlled Substances.”
Another participant in the drug trafficking operation, Charles Kraft, 33, of Wheeling, was sentenced today to four months in prison. He pled guilty in March 2015 to one count of “Aiding and Abetting the Distribution of Heroin.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force and the Marshall County Drug and Violent Crime Task Force, both HIDTA-funded initiatives, investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
North Jersey Pharmacist Admits Stealing Controlled Substances from Hospital PharmaciesRead the Press Release
NEWARK, N.J. – A pharmacist working at two New Jersey hospitals today admitted abusing his position to tamper with and steal hundreds of vials of medication, U.S. Attorney Paul J. Fishman announced.
John Kakowski, 29, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a two-count information charging him with tampering with consumer products and obtaining controlled substances by misrepresentation, fraud, forgery, deception or subterfuge.
According to the documents filed and statements made in court:
Kakowski admitted that, between 2013 and 2014, he tampered with and stole medications from one hospital by taking vials of Morphine Sulfate, Dilaudid and Fentanyl from the Pyxis machine, an automated medication dispensing system that he could access as a pharmacist. During that time, he also stole Morphine Sulfate from a second hospital by removing the vials from a cabinet that he had access to as a pharmacist. In addition, Kakawoski admitted using a needle to extract medication from the vials for his own use and then refilling them with saline solution.
The charge of tampering with a consumer product carries a maximum penalty of up to 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The charge of obtaining controlled substances by fraud carries a maximum penalty of up to four years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. No sentencing date has been set at this time.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigations, under the direction of Special Agent in Charge Antoinette V. Henry, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Mark Musella Esq.
Download Kakowski John Information
North Carolina Seafood Processor and Distributor Sentenced for Mislabeling ShrimpRead the Press Release
North Carolina-based seafood processor and wholesale distributor Alphin Brothers Inc., was sentenced today in federal court for falsely labeling imported shrimp, the Justice Department announced.
Pursuant to plea agreement entered on Feb. 10, 2015, Alphin Brothers Inc., pleaded guilty to one felony count of making or submitting false records in violation of the Lacey Act. Court documents state that an Alphin Brothers employee, who purchased and sold shrimp on the company’s behalf, directed Alphin Brothers employees and employees of another seafood processing facility to falsely label approximately 25,000 pounds of farm-raised imported shrimp as wild-caught product of the United States. The falsely labeled shrimp was later sold by Alphin Brothers in interstate commerce to customers in Louisiana.
Consistent with the plea agreement, the court sentenced Alphin Brothers Inc., to pay a criminal fine of $100,000 and to forfeit approximately 21,450 pounds of shrimp. The company also will serve three years of probation, including a special condition requiring the company to implement a training program to educate its employees on federal labeling requirements, as they relate to business activities at the company.
Federal regulations require seafood retailers to provide customers with notice of the country of origin and the method of production, wild-caught or farm-raised, of shrimp and other shellfish. These regulations are known by the acronym COOL, which stands for “country of origin labeling.” The COOL regulations allow country of origin and method of production information to be provided in any format, as long as it is placed in a conspicuous location such that it will likely be read and understood by a customer under normal circumstances. Many shrimp processors and wholesale distributors, including Alphin Brothers Inc., print country of origin and/or method of production information directly on packaging, such as boxes, intended for retail sale.
Under the COOL regulations, shrimp may be labeled as “product of the United States” only if they were harvested and processed in the United States or by a United States-flagged vessel and have not undergone any substantial transformation outside the United States. Packing, repacking, thawing, freezing, cleaning, peeling, deveining, grading, cooking, or soaking shrimp in sodium tripolyphosphate solution does not constitute a substantial transformation under the COOL regulations.
The Lacey Act is a federal law making it illegal to make or submit any false record, account, or label for, or any false identification of, any fish or wildlife that has been or is intended to be imported, transported, purchased or received from any foreign country, or transported in interstate or foreign commerce. The maximum penalties for a felony violation of the Lacey Act include up to five years of imprisonment and $250,000 in fines for individual defendants and up to $500,000 in fines for corporate defendants.
The case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, with assistance from the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
North Carolina Seafood Processor and Distributor Sentenced for Mislabeling ShrimpRead the Press Release
WASHINGTON—North Carolina-based seafood processor and wholesale distributor Alphin Brothers Inc., was sentenced today in federal court for falsely labeling imported shrimp, the Justice Department announced.
Pursuant to plea agreement entered on February 10, 2015, Alphin Brothers Inc., pleaded guilty to one felony count of making or submitting false records in violation of the Lacey Act. Court documents state that an Alphin Brothers employee, who purchased and sold shrimp on the company’s behalf, directed Alphin Brothers employees and employees of another seafood processing facility to falsely label approximately 25,000 pounds of farm-raised imported shrimp as wild-caught product of the United States. The falsely labeled shrimp was later sold by Alphin Brothers in interstate commerce to customers in Louisiana.
Consistent with the plea agreement, the court sentenced Alphin Brothers Inc., to pay a criminal fine of $100,000 and to forfeit approximately 21,450 pounds of shrimp. The company also will serve three years of probation, including a special condition requiring the company to implement a training program to educate its employees on federal labeling requirements, as they relate to business activities at the company..
Federal regulations require seafood retailers to provide customers with notice of the country of origin and the method of production (wild-caught or farm-raised) of shrimp and other shellfish. These regulations are known by the acronym COOL, which stands for “country of origin labeling.” The COOL regulations allow country of origin and method of production information to be provided in any format, as long as it is placed in a conspicuous location such that it will likely be read and understood by a customer under normal circumstances. Many shrimp processors and wholesale distributors, including Alphin Brothers Inc., print country of origin and/or method of production information directly on packaging, such as boxes, intended for retail sale.
Under the COOL regulations, shrimp may be labeled as “product of the United States” only if they were harvested and processed in the United States or by a United States-flagged vessel and have not undergone any substantial transformation outside the United States. Packing, repacking, thawing, freezing, cleaning, peeling, deveining, grading, cooking, or soaking shrimp in sodium tripolyphosphate solution does not constitute a substantial transformation under the COOL regulations.
The Lacey Act is a federal law making it illegal to make or submit any false record, account, or label for, or any false identification of, any fish or wildlife that has been or is intended to be imported, transported, purchased or received from any foreign country, or transported in interstate or foreign commerce. The maximum penalties for a felony violation of the Lacey Act include up to five years of imprisonment and $250,000 in fines for individual defendants and up to $500,000 in fines for corporate defendants.
The case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, with assistance from the Louisiana Department of Wildlife and Fisheries. The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
North Adams Woman Sentenced for Social Security FraudRead the Press Release
BOSTON – Nancy Killackey, 57, of North Adams, Mass., was sentenced yesterday by U.S. District Court Judge Mark G. Mastroianni to 18 months of probation and ordered to pay restitution of $72,635 to the Social Security Administration (SSA).
From Jan. 1, 2002 through Oct. 1, 2013, Killackey received $72,635 in fraudulently obtained Social Security disability benefits. Killackey was not entitled to receive these benefits because she was married to a man who earned substantial wages, which was information that she intentionally concealed in order to continue receiving the benefits. Specifically, on July 21, 2011, Killackey told federal agents that the man was her personal care attendant and not her spouse. When the agents asked Killackey why the man would have told the SSA that they were married, she described him as “a big, fat liar” and “an idiot off his medication.” When asked about their wedding date, Killackey said that this was the day the man had a heart attack, not the day of their wedding.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Nine People Charged in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
More Than 150,000 Press Releases Stolen from Three Major Newswire Companies, Used to Generate Approximately $30 Million in Illegal Trading Profits
NEWARK, N.J. – Nine people were charged in two indictments unsealed today in Brooklyn, New York, and Newark federal court with an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that allegedly generated approximately $30 million in illegal profits.
U.S. Attorney Paul J. Fishman, District of New Jersey, and Acting U.S. Attorney Kelly T. Currie, Eastern District of New York, announced the indictments today, along with U.S. Secretary of Homeland Security Jeh Johnson; U.S. Secret Service Director Joseph P. Clancy; FBI Assistant Director-in-Charge Diego Rodriguez, New York Field Office; and U.S. Securities Exchange Commission (SEC) Chair Mary Jo White. The SEC also unsealed a civil complaint today charging the nine indicted defendants and several other individuals and entities.
The indictments unsealed today charge the defendants with hacking into the newswires and stealing confidential information about companies traded on the NASDAQ and NYSE in what is the largest scheme of its kind ever prosecuted. The defendants allegedly stole approximately 150,000 confidential press releases from the servers of the newswire companies. They then traded ahead of more than 800 stolen press releases before their public release, generating millions of dollars in illegal profits.
“The defendants were a well-organized group that allegedly robbed the newswire companies and their clients and cheated the securities markets and the investing public by engaging in an unprecedented hacking and trading scheme,” U.S. Attorney Fishman said. “The defendants launched a series of sophisticated and relentless cyber attacks against three major newswire companies, stole highly confidential information and used to enrich themselves at the expense of public companies and their shareholders.”
“As alleged, the defendants and their co-conspirators formed an alliance of hackers and securities industry professionals to systematically steal valuable inside information and profit by trading ahead of authorized disclosures to the investing public,” stated Acting United States Attorney Currie. “Today’s sweeping indictments are the result of a cutting edge investigation by law enforcement to combat twenty-first century criminal schemes.”
“Today’s announcement is a testament to the countless hours of hard work and dedication by law enforcement and other personnel across government, including the Secret Service investigative team. In today’s day and age, criminals are using computers instead of guns to steal money and threaten the safety and security of our cyber networks,” Secretary Johnson said. “In matters of cybersecurity, the Department of Homeland Security has a major law enforcement role, and our work to counter cyber threats is a critical priority for the Secret Service because of the substantial threat it poses to this nation’s financial infrastructure.”
The 23-count District of New Jersey indictment charges five defendants – Ivan Turchynov, 27; Oleksandr Ieremenko, 24; and Pavel Dubovoy, 32; all of Ukraine, and Arkadiy Dubovoy, 51, and Igor Dubovoy, 28, of Alpharetta, Georgia – with wire fraud conspiracy, securities fraud conspiracy, wire fraud, securities fraud, and money laundering conspiracy. Turchynov and Ieremenko are additionally charged with computer fraud conspiracy, computer fraud, and aggravated identity theft.
The Eastern District of New York indictment charges four defendants: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania; Vladislav Khalupsky, 45, of Brooklyn, New York; and Odessa, Ukraine; Leonid Momotok, 47, of Suwanee, Georgia; and Alexander Garkusha, 47, of Cummings and Alpharetta, Georgia, with wire fraud conspiracy, securities fraud conspiracy, securities fraud, and money laundering conspiracy.
Earlier today, the government seized 17 bank and brokerage accounts containing more than $6.5 million of alleged criminal proceeds. The government also took steps to restrain 12 properties, a shopping center located in Pennsylvania, an apartment building located in Georgia, and a houseboat, all worth more than $5.5 million.
Five of the nine defendants named above were arrested this morning: Arkadiy Dubovoy, Igor Dubovoy, Momotok, and Garkusha were all arrested at their homes in Georgia, and are scheduled to appear this afternoon before U.S. Magistrate Judge Alan J. Baverman in federal court in Atlanta, Georgia. Korchevsky was arrested at his home in Glenn Mills, Pennsylvania, and is scheduled to appear this afternoon before U.S. Magistrate Judge Linda K. Caracappa in federal court in Philadelphia, Pennsylvania. Turchynov, Ieremenko, Pavel Dubovoy, and Khalupsky remain in Ukraine, and international arrest warrants were issued today for their arrests.
According to the indictments:
Between February 2010 and August 2015, Turchynov and Ieremenko, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P., PR Newswire Association LLC (PRN), and Business Wire. They used a series of sophisticated cyber attacks to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.
At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.
The hackers shared the stolen press releases with traders Arkadiy Dubovoy, Korchevsky, Momotok, Igor Dubovoy, Pavel Dubovoy, Khalupsky, Garkusha, and others, using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use an overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases from Marketwired and PRN for publicly traded companies. Trading data obtained over the course of the investigation showed that, after one of the shopping lists or wish lists was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared information and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release. The defendants illegal trading resulted in gains of more than $30 million, of which Korchevsky accounted for more than $17 million and Arkadiy Dubovoy accounted for more than $11 million.
The traders traded on stolen press releases containing material nonpublic information about publicly traded companies that included, among hundreds of others: Align Technology Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
“This is the story of a traditional securities fraud scheme with a twist—one that employed a contemporary approach to a conventional crime. In this case the defendants allegedly traded on nonpublic information, ultimately benefitting from more than $30 million in illegal profits over the course of three years,” Assistant Director-in-Charge Rodriguez said. “But just as criminals continue to develop relationships with one another in order to advance their objectives, the law enforcement community has developed a collaborative approach to fighting these types of crimes.”
“Cyber cases such as this are a vital part of the Secret Service's integrated mission,” Joseph P. Clancy, Director of the U.S. Secret Service, said. “This is yet another example of the successful investigative work being done in coordination with our partners in the global law enforcement community.”
The wire fraud conspiracy and substantive wire fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy count with which all defendants are charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The substantive securities fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $5 million fine, or twice the gain or loss from the offense. The money laundering conspiracy count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the funds involved in the illegal transfers. The computer fraud counts with which the alleged hackers are charged carry a maximum potential penalty of five years’ imprisonment and a $250,000 fine, or twice the gain or loss from the offense. The aggravated identity theft counts with which the hackers are charged carry a mandatory consecutive term of imprisonment of 24 months.
U.S. Attorney Fishman and Acting U.S. Attorney Currie credited special agents of the U.S. States Secret Service, Criminal Investigations, under the direction of Director Clancy, and the Newark Field Office under the direction of Special Agent in Charge Carl Agnelli; and special agents of the FBI, New York Field Office, under the direction of Assistant Director Diego Rodriguez, for the investigation leading to today’s arrests and indictments. They thanked the U.S. Securities and Exchange Commission, for its significant cooperation and assistance in the investigation and the newswires, which cooperated with law enforcement over the course of the investigation.
In the District of New Jersey, the government is represented by Assistant U.S. Attorneys Andrew S. Pak, Daniel V. Shapiro, and David M. Eskew of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, Assistant U.S. Attorney Svetlana M. Eisenberg of the Office’s Civil Division, and Special Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
In the Eastern District of New York, the government’s case is being prosecuted by the Business and Securities Fraud Section and the National Security and Cybercrime Section. Assistant U.S. Attorneys Christopher A. Ott, Christopher L. Nasson, and Richard M. Tucker are in charge of the prosecution. Assistant U.S. Attorneys Brian D. Morris and Tanisha Payne of the Office’s Civil Division are responsible for the forfeiture of assets.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Nine People Charged in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – Nine people were charged in two indictments unsealed today in Brooklyn, New York, and Newark federal court with an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that allegedly generated approximately $30 million in illegal profits.
U.S. Attorney Paul J. Fishman, District of New Jersey, and Acting U.S. Attorney Kelly T. Currie, Eastern District of New York, announced the indictments today, along with U.S. Secretary of Homeland Security Jeh Johnson; U.S. Secret Service Director Joseph P. Clancy; FBI Assistant Director-in-Charge Diego Rodriguez, New York Field Office; and U.S. Securities Exchange Commission (SEC) Chair Mary Jo White. The SEC also unsealed a civil complaint today charging the nine indicted defendants and several other individuals and entities.
The indictments unsealed today charge the defendants with hacking into the newswires and stealing confidential information about companies traded on the NASDAQ and NYSE in what is the largest scheme of its kind ever prosecuted. The defendants allegedly stole approximately 150,000 confidential press releases from the servers of the newswire companies. They then traded ahead of more than 800 stolen press releases before their public release, generating millions of dollars in illegal profits.
“The defendants were a well-organized group that allegedly robbed the newswire companies and their clients and cheated the securities markets and the investing public by engaging in an unprecedented hacking and trading scheme,” U.S. Attorney Fishman said. “The defendants launched a series of sophisticated and relentless cyber attacks against three major newswire companies, stole highly confidential information and used to enrich themselves at the expense of public companies and their shareholders.”
“As alleged, the defendants and their co-conspirators formed an alliance of hackers and securities industry professionals to systematically steal valuable inside information and profit by trading ahead of authorized disclosures to the investing public,” stated Acting United States Attorney Currie. “Today’s sweeping indictments are the result of a cutting edge investigation by law enforcement to combat twenty-first century criminal schemes.”
“Today’s announcement is a testament to the countless hours of hard work and dedication by law enforcement and other personnel across government, including the Secret Service investigative team. In today’s day and age, criminals are using computers instead of guns to steal money and threaten the safety and security of our cyber networks,” Secretary Johnson said. “In matters of cybersecurity, the Department of Homeland Security has a major law enforcement role, and our work to counter cyber threats is a critical priority for the Secret Service because of the substantial threat it poses to this nation’s financial infrastructure.”
The 23-count District of New Jersey indictment charges five defendants – Ivan Turchynov, 27; Oleksandr Ieremenko, 24; and Pavel Dubovoy, 32; all of Ukraine, and Arkadiy Dubovoy, 51, and Igor Dubovoy, 28, of Alpharetta, Georgia – with wire fraud conspiracy, securities fraud conspiracy, wire fraud, securities fraud, and money laundering conspiracy. Turchynov and Ieremenko are additionally charged with computer fraud conspiracy, computer fraud, and aggravated identity theft.
The Eastern District of New York indictment charges four defendants: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania; Vladislav Khalupsky, 45, of Brooklyn, New York; and Odessa, Ukraine; Leonid Momotok, 47, of Suwanee, Georgia; and Alexander Garkusha, 47, of Cummings and Alpharetta, Georgia, with wire fraud conspiracy, securities fraud conspiracy, securities fraud, and money laundering conspiracy.
Earlier today, the government seized 17 bank and brokerage accounts containing more than $6.5 million of alleged criminal proceeds. The government also took steps to restrain 12 properties, a shopping center located in Pennsylvania, an apartment building located in Georgia, and a houseboat, all worth more than $5.5 million.
Five of the nine defendants named above were arrested this morning: Arkadiy Dubovoy, Igor Dubovoy, Momotok, and Garkusha were all arrested at their homes in Georgia, and are scheduled to appear this afternoon before U.S. Magistrate Judge Alan J. Baverman in federal court in Atlanta, Georgia. Korchevsky was arrested at his home in Glenn Mills, Pennsylvania, and is scheduled to appear this afternoon before U.S. Magistrate Judge Linda K. Caracappa in federal court in Philadelphia, Pennsylvania. Turchynov, Ieremenko, Pavel Dubovoy, and Khalupsky remain in Ukraine, and international arrest warrants were issued today for their arrests.
According to the indictments:
Between February 2010 and August 2015, Turchynov and Ieremenko, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P., PR Newswire Association LLC (PRN), and Business Wire. They used a series of sophisticated cyber attacks to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information.
At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, Ieremenko told Turchynov that he had compromised the log-in credentials of 15 Business Wire employees.
The hackers shared the stolen press releases with traders Arkadiy Dubovoy, Korchevsky, Momotok, Igor Dubovoy, Pavel Dubovoy, Khalupsky, Garkusha, and others, using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use an overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases from Marketwired and PRN for publicly traded companies. Trading data obtained over the course of the investigation showed that, after one of the shopping lists or wish lists was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared information and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release. The defendants illegal trading resulted in gains of more than $30 million, of which Korchevsky accounted for more than $17 million and Arkadiy Dubovoy accounted for more than $11 million.
The traders traded on stolen press releases containing material nonpublic information about publicly traded companies that included, among hundreds of others: Align Technology Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
“This is the story of a traditional securities fraud scheme with a twist—one that employed a contemporary approach to a conventional crime. In this case the defendants allegedly traded on nonpublic information, ultimately benefitting from more than $30 million in illegal profits over the course of three years,” Assistant Director-in-Charge Rodriguez said. “But just as criminals continue to develop relationships with one another in order to advance their objectives, the law enforcement community has developed a collaborative approach to fighting these types of crimes.”
“Cyber cases such as this are a vital part of the Secret Service's integrated mission,” Joseph P. Clancy, Director of the U.S. Secret Service, said. “This is yet another example of the successful investigative work being done in coordination with our partners in the global law enforcement community.”
The wire fraud conspiracy and substantive wire fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud conspiracy count with which all defendants are charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The substantive securities fraud counts with which all defendants are charged carry a maximum potential penalty of 20 years in prison and a $5 million fine, or twice the gain or loss from the offense. The money laundering conspiracy count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the value of the funds involved in the illegal transfers. The computer fraud counts with which the alleged hackers are charged carry a maximum potential penalty of five years’ imprisonment and a $250,000 fine, or twice the gain or loss from the offense. The aggravated identity theft counts with which the hackers are charged carry a mandatory consecutive term of imprisonment of 24 months.
U.S. Attorney Fishman and Acting U.S. Attorney Currie credited special agents of the U.S. States Secret Service, Criminal Investigations, under the direction of Director Clancy, and the Newark Field Office under the direction of Special Agent in Charge Carl Agnelli; and special agents of the FBI, New York Field Office, under the direction of Assistant Director Diego Rodriguez, for the investigation leading to today’s arrests and indictments. They thanked the U.S. Securities and Exchange Commission, for its significant cooperation and assistance in the investigation and the newswires, which cooperated with law enforcement over the course of the investigation.
In the District of New Jersey, the government is represented by Assistant U.S. Attorneys Andrew S. Pak, Daniel V. Shapiro, and David M. Eskew of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, Assistant U.S. Attorney Svetlana M. Eisenberg of the Office’s Civil Division, and Special Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
In the Eastern District of New York, the government’s case is being prosecuted by the Business and Securities Fraud Section and the National Security and Cybercrime Section. Assistant U.S. Attorneys Christopher A. Ott, Christopher L. Nasson, and Richard M. Tucker are in charge of the prosecution. Assistant U.S. Attorneys Brian D. Morris and Tanisha Payne of the Office’s Civil Division are responsible for the forfeiture of assets.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
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New York Doctor Charged with Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
First Doctor Indicted in Case – 38 Defendants Have Pleaded Guilty
NEWARK, N.J. – A doctor with practices in Nassau County, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Bret Ostrager, 50, of Woodbury, New York, was indicted by a federal grand jury and charged with one count of conspiring to violate the Anti-Kickback Statute and the Federal Travel Act, three substantive violations of the Anti-Kickback Statute, and four substantive violations of the Federal Travel Act. Ostrager is scheduled to be arraigned before Judge Stanley Chesler on Aug. 19, 2015.
Ostrager is the first defendant to be indicted in connection with the BLS bribery scheme. To date, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. (See chart below.) The investigation has to date recovered more than $11.5 million through forfeiture.
According to the indictment:
Between February 2011 and April 2013, Ostrager received monthly cash bribes of approximately $3,300 from BLS employees and associates. He periodically solicited and received from the BLS employees and associates tickets and meals that cost thousands of dollars. These additional bribes in response to specific requests from Ostrager included tickets to a New York Mets baseball game, a New York Knicks basketball game, a Katy Perry concert, a Justin Bieber concert, and the Broadway show “Newsies.” In exchange, Ostrager referred patient blood samples to BLS. Ostrager’s referrals generated approximately $909,000 in lab business for BLS.
If convicted, Ostrager faces a maximum potential penalty of five years in prison on each of the counts on which he is charged. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Marc Agnifilo Esq., New York
Defendant
Role
Sentence/ Sentencing Date
David Nicoll
BLS owner
TBD
Scott Nicoll
BLS employee
TBD
Craig Nordman
BLS employee
TBD
Luke Chicco
BLS employee
TBD
Cliff Antell
BLS employee
TBD
Kevin Kerekes
BLS employee
TBD
Doug Hurley
BLS employee
TBD
Peter Breihof
BLS employee
TBD
William Dailey
BLS employee
TBD
Len Rubinstein
BLS employee
37 months
Dave McCann
BLS employee
TBD
Michael Zarelli
BLS employee
8/20/15
Frank Santangelo
Doctor
63 months
Gary Safier
Doctor
TBD
Angelo Calabrese
Doctor
37 months
Dennis Aponte
Doctor
24 months
Dana Fortunato
Doctor
14 months
Claudio Dicovsky
Doctor
12 months’ probation
Paul Ostergaard
Doctor
12 months’ probation
Gary Leeds
Doctor
20 months
Richard Goldberg
Doctor
20 months
Demitrios Gabriel
Doctor
37 months
Surender Gorukanti
Doctor
TBD
Wayne Lajewski
Doctor
14 months
Michelle Martinho
Doctor
TBD
John Vitali
Doctor
10 months’ home conf.
Peter Deplas
Doctor
TBD
Douglas Beinstock
Doctor
37 months
Anthony DeLuca
Doctor
12 months & 1 day
Franz Goyzueta
Doctor
37 months
Eugene DeSimone
Doctor
37 months
Anthony Delpiano
Doctor
21 months
Ralph Messo
Doctor
TBD
Leon Marchetta
Physic. Assist.
9/16/15
Brett Halper
Doctor
8/20/15
Monroe store owner sentenced to 46 months in prison for SNAP/WIC benefits fraudRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Monroe grocery store owner was sentenced Monday to 46 months in prison for a conspiracy to provide cash and ineligible items to SNAP and WIC recipients in exchange for their benefits.
Allen Woods, 60, of Monroe, was sentenced by U.S. District Judge Robert G. James on one count of criminal conspiracy and one count of theft of government property. He was also sentenced to three years of supervised release and ordered to pay $5,048,305.60 restitution. According to evidence presented at the April 2, 2015 guilty plea, Woods operated two businesses illegally at the same location on Old Sterlington Road in Monroe from December 2010 until March 2014. After his other business, Big Al’s grocery store located on Sherrouse Street in Monroe, was permanently disqualified from the Supplemental Nutrition Assistance Program (SNAP) in March of 2010, he opened Honey’s Grocery Store with another Monroe resident in 2010. The store was approved to participate in the SNAP program in December of 2010. As the owner of Honey’s, Woods and others permitted SNAP and WIC recipients to exchange their benefits for cash and other ineligible items.
After Honey’s closed its operations in August 2012, Woods and Marshall Brown opened Brown’s Grocery Store in the same location in September of 2012. Brown’s name was used to qualify the business as a SNAP retailer. Woods, Brown and others allowed SNAP benefits to be used to purchase ineligible items such as alcohol and tobacco from September 2012 until March 2014. Woods, Brown and others also exchanged cash for SNAP benefits and fraudulently acquired at least $5 million from illegally trafficking SNAP and WIC benefits while operating Honey’s and Brown’s grocery stores.
“The U.S. Attorney’s Office and the USDA are actively working on behalf of American taxpayers to protect the federal investment in the SNAP programs to make sure the program is targeted towards those families who need it most,” Finley stated. “We will aggressively act to control SNAP fraud by using purchase data to identify suspicious transaction patterns, conducting undercover investigations, collaborating with other investigative agencies and prosecuting offenders.”
Brown was sentenced on July 7, 2015 to 30 months in prison and three years of supervised release on the conspiracy count. He was also ordered to pay $876,501.40 in restitution.
The U.S. Department of Agriculture, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Mississippi Couple Charged with Conspiracy and Attempt to Provide Material Support to ISILRead the Press Release
WASHINGTON – A Starkville, Mississippi, couple was arrested over the weekend for allegedly conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson Division.
Jaelyn Delshaun Young, 20, and Muhammad Oda Dakhlalla, 22, were charged by criminal complaint with conspiring and attempting to provide material support to ISIL. They appeared this morning for preliminary and detention hearings before U.S. Magistrate Judge S. Allan Alexander of the Northern District of Mississippi. Young and Dakhlalla were denied bond and remanded to the custody of the U.S. Marshal Service.
According to the criminal complaint filed in this case:
This investigation began in May 2015, when the defendant expressed a desire to travel to Syria in support of ISIL, and made several supportive statements about the designated foreign terrorist organization. Both defendants subsequently expressed their readiness to travel overseas to join ISIL.
The defendants procured passports and made arrangements to fly to Istanbul via Amsterdam. On or about Aug. 8, 2015, Young and Dakhlalla travelled to the Golden Triangle Regional Airport in Columbus, Mississippi, for their international flight. The defendants were arrested and, according to the complaint, were interviewed and both confessed to attempting to travel to Turkey to join ISIL in Syria.
The charge in the complaint carries a maximum of potential penalty of 20 years in prison and a fine of $250,000.
The case is being investigated by the FBI Jackson’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Clayton Joyner and Robert Norman of the Northern District of Mississippi and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Mississippi Couple Charged with Conspiracy and Attempt to Provide Material Support to ISILRead the Press Release
A Starkville, Mississippi, couple was arrested over the weekend for allegedly conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson Division.
Jaelyn Delshaun Young, 20, and Muhammad Oda Dakhlalla, 22, were charged by criminal complaint with conspiring and attempting to provide material support to ISIL. They appeared this morning for preliminary and detention hearings before U.S. Magistrate Judge S. Allan Alexander of the Northern District of Mississippi. Young and Dakhlalla were denied bond and remanded to the custody of the U.S. Marshal Service.
According to the criminal complaint filed in this case:
This investigation began in May 2015, when the defendant expressed a desire to travel to Syria in support of ISIL, and made several supportive statements about the designated foreign terrorist organization. Both defendants subsequently expressed their readiness to travel overseas to join ISIL.
The defendants procured passports and made arrangements to fly to Istanbul via Amsterdam. On or about Aug. 8, 2015, Young and Dakhlalla travelled to the Golden Triangle Regional Airport in Columbus, Mississippi, for their international flight. The defendants were arrested and, according to the complaint, were interviewed and both confessed to attempting to travel to Turkey to join ISIL in Syria.
The charge in the complaint carries a maximum of potential penalty of 20 years in prison and a fine of $250,000.
The case is being investigated by the FBI Jackson’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Clayton Joyner and Robert Norman of the Northern District of Mississippi and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Young and Dakhkalla Complaint
Martinsburg man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy William Cook, 30, of Martinsburg, was convicted of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Cook was discovered in May 2014 in possession of heroin in Berkeley County, West Virginia. He pled guilty to one count of “Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Thomas Stine, 39, of Martinsburg, was convicted of heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Stine was one of 41 individuals charged in May 2015 in a 163-count federal heroin trafficking indictment. He was discovered in possession of heroin in February 2015.
Stine pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Los Ranchos Woman Pleads Guilty to March 2015 Robbery of New Mexico Bank & Trust BranchRead the Press Release
ALBUQUERQUE—Denise Romero, 27, of Los Ranchos, N.M., pleaded guilty today to robbing the New Mexico Bank & Trust branch located on 4th Street NW in Albuquerque, N.M., in March 2015. The guilty plea was entered without the benefit of a plea agreement.
Romero was arrested on March 20, 2015, on a criminal complaint alleging that she robbed the New Mexico Bank & Trust branch on March 16, 2015. According to the complaint, Romero approached the bank teller with a note to the teller suggesting that Romero had a gun. The complaint further alleges that Romero used the money from the bank robbery to bail her boyfriend out of jail.
Romero was indicted on April 14, 2015, and charged with bank robbery of the New Mexico Bank & Trust branch in Bernalillo County, N.M.
At sentencing, Romero faces a maximum penalty of 20 years in prison followed by up to three years of supervised release. She remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Kentucky Man Pleads Guilty to Traveling for Illicit Sex with a MinorRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kentucky man pleaded guilty in federal court today to traveling to Missouri for illicit sex with a 15-year-old girl and to attempting to entice a second child victim for sex.
Marvin D. Herren, 53, of Owensboro, Ken., pleaded guilty before U.S. Chief District Judge Greg Kays to traveling with the intent to engage in illicit sex with a minor and to attempting to use the Internet to entice a minor to engage in illegal sexual activity.
By pleading guilty today, Herren admitted that he traveled from Kentucky to Missouri in March 2014 to meet a 15-year-old girl (identified in court documents as “Jane Doe”) to engage in illicit sexual conduct.
Herren initially contacted the child victim through social media on March 1, 2014. After a few days of communicating through social media, Herren began asking her questions of a sexual nature and they exchanged nude photos of themselves. On March 6, 2014, Herren sent an instant message to inform her that he was coming to see her in order to engage in illicit sex. Herren met Jane Doe and her friend at a restaurant near her high school. He drove them back to the high school, at which time her friend left them. Herren parked near the high school and he and Jane Doe engaged in illicit sexual activity in the back seat of his car. Herren returned to Kentucky; although he did not see Jane Doe again, he continued for a short time to contact her by instant messaging.
Investigators searched Herren’s computer and discovered a search query for runaway laws in Missouri, statutes of limitations on statutory rape in Missouri, a pregnancy calculator and a document containing the ages of consent by state.
In May 2014, during the investigation of the allegations by Jane Doe, an FBI special agent assumed an undercover identity on Facebook of a female named “Jenny Breeze.” Although Herren was aware of the federal investigation related to Jane Doe, he began communicating with the undercover agent. The two began a Facebook conversation in which “Jenny” told Herren she was in the eighth grade the year prior and also gave her e-mail address. The two began chatting via e-mail frequently. On Jan. 8, 2015, Herren asked “Jenny” how old she was and she stated that she would turn 15 years old on Feb. 13, 2015. This was the first of several conversations with “Jenny” which were explicitly sexual in nature. On Jan. 12, 2015, Herren e-mailed a nude photo of himself.
Herren made arrangements to meet “Jenny” at a Kansas City, Mo., restaurant. When he arrived at approximately midnight on Jan. 23, 2015, he was placed under arrest.
Under the terms of today’s plea agreement, Herren is subject to a minimum sentence of 10 years in federal prison without parole, up to a sentence of 25 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Joins Harrison County, Mississippi, in Seeking Termination of Consent Decree and Ending Federal Oversight of the Harrison County Adult Detention CenterRead the Press Release
The Justice Department’s Civil Rights Division announced today that it is joining Harrison County, Mississippi, to seek dismissal of a longstanding consent decree designed to improve conditions in the Harrison County Adult Detention Center. If the U.S. District Court grants the parties’ joint motion, it will end federal compliance monitoring and return oversight of the facility back to the county.
“Harrison County officials have worked to improve conditions in the Harrison County Adult Detention Center,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Security, medical, and mental health staffing have all been substantially increased, staff members are better trained, and internal quality assurance mechanisms are now in place. We have therefore joined the county in seeking final dismissal of the settlement in this case, and we commend the county for making these necessary, widespread reforms.”
“The county’s actions have given the Department of Justice reason to expect that it will continue to be diligent in maintaining compliance with the Constitution,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The actions today demonstrate how cooperation with the department on civil rights matters can improve safety for prisoners, staff, and the community.”
The department’s decision follows nearly 20 years of enforcing a 1995 consent judgment, including through on-site inspections, document reviews and stakeholder interviews by department experts and staff.
This case was brought under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison or other correctional facility.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Jury Convicts Roseville Man of 5 Counts of Wire Fraud in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a six–day trial, a federal jury found Erik Hermann Green, 33, of Roseville, guilty today of five counts of wire fraud in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Troy L. Nunley.
According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around November of 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Alameda County District Attorney’s Office. Assistant United States Attorney Michael D. Anderson and Special Assistant United States Attorney Josh F. Sigal are prosecuting the case.
On September 19, 2013, co-defendant Stephen Pirt pleaded guilty to wire fraud and is awaiting sentencing on September 24, 2015. Green is scheduled to be sentenced by Judge Nunley on November 19, 2015. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jefferson County Man Guilty in Carjacking DeathRead the Press Release
BEAUMONT, Texas – A 25-year-old Beaumont, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Demond Patton pleaded guilty today before U.S. Magistrate Judge Keith F. Giblin to carjacking resulting in death.
According to information presented in court, early on the morning of June 23, 2013, Patton and River Shynette Gobert entered a self-service laundry on Florida Avenue in Beaumont intending to rob the sole occupant. When the victim refused to hand over his car keys, Gobert shot him in the leg at Patton’s direction. Patton and Gobert fled the laundry in their vehicle without the victim’s keys. They drove by an apartment complex on Woodrow Avenue where they encountered Daryl Dwayne Fontenot asleep in his vehicle. A struggle ensued when Patton and Gobert attempted to steal the vehicle and Fontenot was shot twice in the chest killing him. Patton and Gobert fled in their vehicle after they were unable to locate Fontenot’s keys. A short time later, law enforcement officers stopped Patton and Gobert because their vehicle matched the vehicle reported in the self-service laundry shooting. Patton and Gobert fled the vehicle but left the weapon used to shoot the two men behind. Patton and Gobert were arrested and each gave statements indicating the other was responsible for the shootings. On Sep. 23, 2013, a Jefferson County grand jury indicted Patton and Gobert for the self-service laundry shooting. Gobert pleaded guilty and was sentenced to seven years in state prison. Patton pleaded guilty and was sentenced to 10 years in state prison. On Mar. 5, 2015, a federal grand jury indicted Patton and Gobert charging them for the carjacking murder of Fontenot.
Patton faces up to life in federal prison at sentencing. A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
Jamaican Man Guilty of False Statements in Obtaining US PassportRead the Press Release
CONCORD, NEW HAMPSHIRE – Sheldon Robinson, of Jamaica, pled guilty today to a one-count indictment alleging false statements in applying for a U.S. passport announced Acting U.S. Attorney Donald Feith.
Robinson is a citizen of Jamaica who was deported in 1997 under the name Patrick Alveranga. Robinson applied for a tourist visa under the Alveranga name in 1999 but the application was denied. In 2000, he applied for a worker visa under the name Sheldon Robinson. The application was granted with an expiration date of December 15, 2000. Robinson overstayed his visa and applied for immigration status, which was denied. During the immigration status proceedings, it was discovered that Robinson was the same person deported under the Alveranga name in 1997. He was granted a voluntary departure and was ordered to depart on or before October 9, 2009. Robinson failed to depart and instead applied for a United States passport in June 4, 2011 under a false identity. He was indicted by a grand jury on March 11, 2015, after agents of the U.S. State Department’s Diplomatic Security Service uncovered the passport fraud.
Robinson pled guilty to willfully and knowingly making false statements to the State Department in a passport application in order to fraudulently obtain a United States passport. Robinson’s sentencing hearing was set by U.S. District Court Judge Landya McCafferty for November 23, 2015 at 10:00 A.M. He faces a statutory penalty of up to five years in prison, but his advisory guideline range under the United States Sentencing Guidelines will recommend a sentence of six to twelve months
Robinson will be deported after serving his sentence.
The case was investigated by the State Department’s Diplomatic Security Service. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Industry Man Pleads Guilty to Unlawfully Receiving Social Security BenefitsRead the Press Release
PITTSBURGH - A Beaver County resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
David Tindell, 53, of Industry, Pa., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from in or around January 2005, to in or around March 2014, Tindell unlawfully received property of the United States, that is, Supplemental Security Income (SSI) benefits in the amount of approximately $70,654.80.
Judge Fischer scheduled sentencing for Dec. 4, 2015 at 9:00 a.m. The law provides for a total sentence of 10 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.
Pending sentencing, the court continued Tindell on bond.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Social Security Administration-Office of Inspector General conducted the investigation that led to the prosecution of Tindell.
Haywood Co. Man Sentenced to Prison on Theft ChargesRead the Press Release
ASHEVILLE, N.C. – Keith Alan Franklin, 27, of Waynesville, N.C. was sentenced today to 27 months in prison on theft charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Franklin to serve three years of supervised release and to pay $475,000 as restitution to Harrah’s Cherokee Casino (Harrah’s).
Acting U.S. Attorney Rose is joined by Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Chief Ben Reid of the Cherokee Indian Police Department in making today’s announcement.
According to court records and today’s sentencing hearing, from October 2013 to April 2014, Franklin embezzled money from Harrah’s, a gaming establishment operated by and for and licensed by the Eastern Band of Cherokee Indians. Court records show that at the time of the offense Franklin was employed at Harrah’s and had direct access to the casino’s funds. According to court records, Franklin routinely stole money while working at Harrah’s by exploiting a flaw in the casino’s security system. Court records indicate that Franklin stole more than $400,000 from the casino in this manner and used the money to buy numerous cars and to support his personal lifestyle. Franklin was fired in April 2014 after Harrah’s discover the theft and pleaded guilty in October 2014 to one count of theft by an employee of gaming establishments on Indian lands.
Franklin is currently in federal custody and will be transferred to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The U.S. Secret service handled the investigation assisted by the Cherokee Police Department. Assistant U.S. Attorney Don Gast prosecuted the case.
Grand Jury Returns Indictment in Human Trafficking CaseRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned a multi-count Indictment alleging
- conspiracy to traffic in children by force for the purposes of prostitution in violation of Title 18, United States Code, Section 1594(c),
- substantive counts charging each coconspirator with trafficking in children in violation of Title 18, United States Code, Section 1591, and
- the transportation of minors in interstate commerce with the intent to engage in sexual activity, in violation of Title 18, United States Code, Section 2423.
The following individuals were charged in the indictment: Brandon L. Littlejohn, age 26, D’Shawn C. Pitts, age 19, Dylan L. Patterson, age 19, Michael G. Riddle, age 20, Michael D. Whitaker, age 25, John A. Gossett, III, age, 22, and Bryson L. Stewart, age 23, all of Spartanburg, South Carolina.
The indictment alleges that the defendants recruited minor victims and young women to work for them, and then instructed and supervised the minor victims and young women on how to solicit and charge for commercial sex acts. The indictment also states that the conspirators “would and did physically beat or threaten to physically beat the minor victims and young women to scare and control them.”
U.S. Attorney Nettles said, “Because human trafficking takes a great personal and psychological toll on the victims and society as a whole, this office and our federal and state partners are committed to devoting the resources required so that all allegations of human trafficking in South Carolina are investigated.”
“The defendants stand accused of exploiting under aged girls through a sex trafficking scheme across multiple states," said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations in Atlanta. "Thanks to some excellent police work by the Spartanburg County Sheriff's Office and my special agents, we have rescued a number of victims and the perpetrators will be brought before the court to face justice."
The maximum penalty the Defendants could face is life imprisonment, and/or a fine of $250,000, and five years of supervised release. The case was investigated by agents of the Department of Homeland Security, Office of Investigations, and the Spartanburg County Sheriff’s Office. The case is assigned to Assistant United States Attorney Bill Watkins of the Greenville office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations, and that all defendants are presumed innocent until and unless proven guilty.
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Georgia Woman Admits Stealing Unemployment Benefits Through Fictitious Employer SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICKY SUE COHRAN, 53, of Villa Rica, Georgia, waived her right to indictment and pleaded guilty today in New Haven federal court to stealing numerous identities while operating a “fictitious employer scheme” that defrauded state unemployment insurance programs of approximately $125,000.
According to court documents and statements made in court, state unemployment insurance programs use employee wages as reported by employers to determine an employee’s benefit amount when the employee files a valid claim for benefits. COHRAN and others utilized several state unemployment insurance program websites to register businesses that had no actual employees, business operations or normal business expenses. COHRAN and her co-conspirators then created and submitted fictitious wage reports that used names and identifying information of individuals without their knowledge. COHRAN and others then posed as fictitious employees to file claims for unemployment benefits.
Through this scheme, COHRAN and her co-conspirators used the names and identifying information of approximately 27 individuals to steal a total of approximately $125,000 from the unemployment insurance programs of Connecticut, Massachusetts, Washington, Minnesota, Pennsylvania, Rhode Island and New Jersey.
The scheme was uncovered shortly after COHRAN registered a fictitious business with the Connecticut Department of Labor in September 2014. In November 2014, three purported employees of the fictitious business filed claims for unemployment benefits with the Connecticut Department of Labor.
COHRAN pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, one count of aggravated identity theft, which carries a mandatory consecutive term of imprisonment of two years, and misuse of a social security number, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on November 3, 2015, in Hartford.
This ongoing investigation is being conducted by the Social Security Administration – Office of Inspector General, U.S. Department of Labor – Office of Inspector General, U.S. Postal Inspection Service, Office of the Chief State’s Attorney, Connecticut Department of Labor, Winter Park (Fla.) Police Department, Pinellas County (Fla.) Sheriff’s Department, Villa Rica (Ga.) Police Department, Temple (Ga.) Police Department and Carroll County (Ga.) Sheriff’s Department.
The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Gang Leader Sentenced to 40 Years in Prison for Violent Racketeering-Related Crimes and Shooting at Federal AgentsRead the Press Release
A leader of the Phantom Outlaw Motorcycle Club, who was also a member of the Vice Lords street gang, was sentenced to 40 years in prison today for violent racketeering-related crimes and shooting at federal agents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division made the announcement.
Marvin Nicholson, 46, of Detroit, was convicted on March 16, 2015, after a multi-week trial before U.S. District Judge Paul D. Borman of the Eastern District of Michigan, of engaging in a RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, assault on federal officers, using and carrying firearms during and in relation to a crime of violence and being a felon in possession of firearms.
At trial, the evidence showed that the Phantom Outlaw Motorcycle Club, which is headquartered in northwest Detroit, and its members were involved in a range of criminal activity, including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles. The evidence also demonstrated that the leadership of the Phantoms was heavily involved in the Vice Lords street gang, which is a well-known street gang originating in Chicago.
According to the evidence presented at trial, Nicholson was the National Enforcer of the Phantoms and a member of the Vice Lords street gang. Further, the evidence showed that Nicholson played a significant role in planning armed assaults on rivals, imposing discipline on the Phantoms and carrying out the orders of Antonio Johnson, aka Mister Tony, MT and Big Bro, who was the National President of the Phantoms and the “Three-Star General” over the Vice Lords street gang in Michigan. The charges of which Nicholson was convicted primarily stemmed from the Phantoms’ attacks or planned attacks on their rivals and enemies, including a murder plot.
Finally, the trial evidence demonstrated that, on Oct. 4, 2013, while the ATF attempted to execute a search warrant at his residence in Detroit, Nicholson shot at ATF agents as they attempted to enter his residence. A wall prevented the bullets from hitting the agents.
Another 12 defendants have been convicted of a variety of racketeering and weapons offenses in this case. Additional sentencing hearings will be held before U.S. District Judge Paul D. Borman of the Eastern District of Michigan.
These convictions are the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit, and through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and the FBI.
This case is being prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.