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7 August 2015
Murphysboro Resident Pleads Guilty to Crack Cocaine and Methamphetamine OffensesRead the Press Release
On August 6, 2015, Isaac Jackson, 35, of Murphysboro, pled guilty to a three-count indictment charging two counts of distribution of crack cocaine and methamphetamine and one count of possession with intent to distribute crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment asserts that the offenses occurred on February 24-25, 2015, in Jackson County. Evidence at the plea hearing established that, on February 24 and 25, 2015, Jackson sold both crack cocaine and methamphetamine to a confidential source working for law enforcement. When Jackson was arrested on February 25, 2015, he was in possession of a large amount of U.S. currency and a large amount of crack cocaine, which was packaged for distribution.
The crack cocaine and methamphetamine offenses carry a penalty of up to 20 years in federal prison, to be followed by 3 years of supervised release, and a fine of up to $1,000,000.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
More Prison Time for Former Investment AdviserRead the Press Release
BOSTON – A former Merrill Lynch and Smith Barney investment adviser previously convicted of securities fraud for defrauding a single client out of nearly a quarter of a million dollars was sentenced to additional time in prison yesterday for engaging in a nearly two-decade scheme to defraud several other clients.
Jane E. O’Brien, 62, of Needham, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 45 months in prison, two years of supervised release, and ordered to pay more than $825,000 in restitution to her victims. In imposing the sentence, the Court found that O’Brien had attempted to obstruct the government’s investigation of her additional crimes following her prior conviction for securities fraud in December 2012. The Court ordered the 45-month sentence to be served consecutively to her prior sentence of 33 months in prison, imposed in May 2013.
In April 2015, O’Brien pleaded guilty to multiple counts of mail fraud, wire fraud, and investment adviser fraud in connection with a scheme to defraud several clients for whom she provided investment advisory services from 1995 to 2013. As part of the scheme, O’Brien misappropriated funds entrusted to her through a variety of means, including persuading clients to withdraw money from their bank and brokerage accounts and give the money to her personally to invest on their behalf. After gaining control of her clients’ money, however, O’Brien made no such investments. Instead, she used the misappropriated client funds for a variety of improper purposes, including paying personal expenses, and paying purported investment returns or repaying personal loans to other clients. Finally, in order both to perpetuate her fraud and conceal it from her clients, O’Brien made false statements and misrepresentations to clients, including by making lulling payments to clients and otherwise providing them with false assurances of their financial security.
Among other things, O’Brien caused one client first to empty her Smith Barney brokerage account and give the proceeds to O’Brien, and then to borrow an additional $1 million on her home and give much of that money to O’Brien to invest. With respect to a second client, O’Brien caused the client to empty her Merrill Lynch brokerage account and give the proceeds to O’Brien, purportedly to invest in a Hollywood movie called “Crooked Arrows.” With respect to a third client, O’Brien caused the client to withdraw $190,000 from her bank account and give the proceeds to O’Brien to invest. O’Brien made none of the investments she promised.
O’Brien’s prior securities fraud conviction related to a scheme to defraud yet another client of $240,000 by selling her a security that did not, in fact, exist.
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. The case is being prosecuted by Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
Miami-Dade Police Officer Pled Guilty to Wire FraudRead the Press Release
A Miami-Dade Police Department officer pled guilty to participating in a wire fraud scheme, arising out of the operation of a series of credit repair businesses.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Miami-Dade Police Officer George Price, 42, of Miami-Dade, pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1349, an offense punishable by up to twenty years in prison.
According to court documents, including the stipulated proffer, Price and his co-conspirators participated in a scheme to provide false police reports to individuals operating credit repair businesses. A co-conspirator would provide Price with identifying information of credit business customers. Price would then create false police reports, using the customers’ identifying information. The police reports would falsely represent that the customers had reported to the Miami-Dade Police Department facts consistent with having been victims of identity theft. Price would cause the false police reports to become official records of the Miami-Dade Police Department. A member of the conspiracy would cause the false police reports created by Price to be transmitted to credit reporting agencies in order to induce the removal of negative items from the credit histories of the alleged victims identified in the false police reports. Price created the false police reports in order to promote the success of the credit businesses and in return would receive payment from his co-conspirators.
“Law enforcement officers have a duty to protect and serve the public. Instead, George Price betrayed his badge in order to enrich himself unjustly. Our Office remains vigilant in its efforts to track down and root out official corruption,” stated U.S. Attorney Wifredo A. Ferrer.
“George Price was a police officer who participated in a wire fraud scheme wherein he provided false police reports in exchange for payment. This unacceptable behavior only serves to tarnish the reputation of the overwhelming majority of police officers who serve their communities faithfully and well every day,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI operates the Miami Area Corruption Task Force to root out this type of activity.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and MDPD Professional Compliance Bureau. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Area Pharmacy Owner Pleads Guilty to Role in $1.6 Million Medicare Fraud SchemeRead the Press Release
A Miami-area pharmacy owner pleaded guilty today to submitting almost $1.6 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tamara Esponda, 47, of Miami, pleaded guilty before U.S. District Judge James I. Cohn of the Southern District of Florida to one count of health care fraud. Sentencing has been scheduled for Nov. 13, 2015.
Esponda owned Biomax Pharmacy Inc. In connection with her guilty plea, Esponda admitted that, between October 2012 and September 2013, Biomax Pharmacy submitted almost $1.6 million in fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary, not purchased by Biomax Pharmacy and not provided to Medicare beneficiaries. Medicare paid 100 percent of the claims.
According to Esponda’s admissions, she and her accomplices stole or illegally paid for unique identifying information of Medicare beneficiaries, and used this information to submit the fraudulent claims. Esponda also admitted that she controlled Biomax Pharmacy’s bank accounts, and that she transferred the payments received from Medicare to herself and her accomplices.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Esponda Plea Agreement
McLaughlin Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on August 3, 2015, by U.S. District Judge Charles B. Kornmann.
River Grey Bull, age 20, was sentenced to 1 year and 1 day of custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Grey Bull was indicted by a federal grand jury on February 12, 2014. He pled guilty on May 18, 2015.
The conviction stems from an incident which occurred on January 24, 2014, when Standing Rock dispatch received a call for help stating a 19-year old male had been stabbed in the back of his head. Bureau of Indian Affairs (BIA) law enforcement arrived on scene and made contact with a female who was tending to the victim. She identified the victim, and also identified Grey Bull as the person responsible for the injuries to the victim. Initially the officers could not locate Grey Bull, but while they were processing the scene, a young male with blood spots on his sweatpants was spotted near a patrol vehicle. The officers interviewed Grey Bull and he admitted that he had gotten into a fight with the victim, and assaulted him with a knife.
This case was investigated by the Federal Bureau of Investigation, and the BIA, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Grey Bull was immediately turned over to the custody of the U.S. Marshals Service.
Marijuana Cultivation Operation in the Shasta-Trinity National Forest Results in Federal Prison SentenceRead the Press Release
SACRAMENTO, Calif. — Isidro Alcazar-Tapia, 26, of Eureka, was sentenced today to seven years and three months in prison and ordered to pay $17,000 in restitution for conspiring to manufacture and possess with intent to distribute marijuana and for depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, Isidro Alcazar-Tapia and his brother, Arturo Alcazar-Tapia, 31, of Eureka, conspired to grow more than 20,000 marijuana plants at two sites in the Shasta-Trinity National Forest in Trinity County. The marijuana was packaged for distribution at a house in Eureka. On August 4, 2014, law enforcement executed a search warrant at the defendants’ home in Eureka and found 33 pounds of processed marijuana divided into one pound packages and more than $6,000 in cash. At a cultivation site at Big French Creek, agents located and destroyed approximately 7,980 marijuana plants and arrested co‑defendant Ricky Martin Huerta, 21, of Eureka. At a site at Hobo Gulch Road, agents located and destroyed approximately 13,642 marijuana plants. Both grow sites are in the Shasta-Trinity National Forest. The marijuana cultivation caused significant damage to the land and natural resources of the forest that provides habitat for several threatened and endangered animal species.
At the Big French Creek site, agents observed hundreds of holes dug in the dirt containing soluble fertilizer, bags of trash, empty fertilizer bags, propane tanks, and water lines diverting water from a stream into the marijuana garden. Analysts estimate that cleaning the Big French Creek site will cost the U.S. Forest Service more than $4,000. Agents observed similar destruction at the Hobo Gulch Road site. Analysts estimate that cleaning the Hobo Gulch Road site will cost the U.S. Forest Service approximately $13,000.
All three defendants pleaded guilty in January 2015. On June 16, 2015, Judge Garland E. Burrell Jr. sentenced Ricky Martin Huerta to two years and eight months in prison. Arturo Alcazar-Tapia is scheduled to be sentenced on October 23, 2015.
This case is the product of an investigation by the United States Forest Service, the Humboldt County Drug Task Force, North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.
Manhattan U.S. Attorney Announces Extradition of South American Drug Trafficker on Drug Importation Conspiracy ChargeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, the Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), today announced the extradition of EDMUND QUINCY MUNTSLAG, a citizen of Suriname, who is charged with conspiring to import cocaine into the United States. MUNTSLAG’s co-defendant, Dino Bouterse, a citizen of Suriname who held himself out as Commander of that country’s Counter-Terrorism Unit, previously pled guilty in Manhattan federal court to participating in the cocaine importation conspiracy as well as to attempting to provide material support and resources to Hezbollah, a designated terrorist organization, and a firearms offense. MUNTSLAG was arrested in Trinidad & Tobago on August 29, 2013, at the request of the United States. He arrived in the Southern District of New York last night, and was presented today before Magistrate Judge Andrew J. Peck. The case is assigned to United States District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara said: “Now that Edmund Quincy Muntslag has arrived in the Southern District of New York, he can be held accountable for his alleged role in conspiring to import massive quantities of cocaine from Suriname to the United States. Today’s extradition is the result of the continued collaboration between our office, the DEA and our international law enforcement partners.”
DEA Special Operations Division Special Agent in Charge Mark Hamlet said: “Critical to strengthening our national security are efforts such as DEA‘s successful pursuit of global criminals like Edmund Muntslag and dangerous facilitators of terror such as Dino Bouterse. The frightening connection between drug trafficking and terror across the world is clearly illustrated in this successful case. This could not have been done without our strong foreign partnerships, and DEA is extremely pleased that Muntslag has been extradited to face justice in a U.S. court.”
According to the allegations contained in the Indictment unsealed in Manhattan federal court[1]:
In June 2013, MUNTSLAG and Bouterse met in Suriname with confidential sources working with the DEA (the “CSes”), in a local government office. During the meeting, Bouterse showed the CSes a rocket launcher and a kilogram of cocaine. According to MUNTSLAG, the cocaine had been treated to evade detection by drug-sniffing dogs.
Approximately one month later, MUNTSLAG and Bouterse worked together to provide transportation and security for cocaine being sent through Suriname to the United States. As a test run, MUNTSLAG and Bouterse sent ten kilograms of cocaine on a commercial flight departing from Suriname. MUNTSLAG personally oversaw the arrangements for the 10-kilogram cocaine shipment, and confirmed its departure from Suriname via text message. The cocaine was intercepted by law enforcement officials after it departed Suriname.
In July 2013, Bouterse met in Suriname with one of the CSes to discuss opening Suriname to the CSes’ purported Hezbollah associates. Later that month, Bouterse met in Greece with the same CS and two other men who purported to be associated with Hezbollah. During this meeting, Bouterse discussed initially hosting 30 to 60 Hezbollah members in Suriname for training and operations. He also indicated that he wanted a Hezbollah cell in Suriname, in part, to act as a kind of personal armed force. Immediately after the conclusion of the meeting in Europe, Bouterse sent MUNTSLAG a text message stating “we hit the jackpot.”
At a subsequent meeting in August 2013 in Panama, Bouterse delivered a Surinamese passport with false identifying information to one of the CSes. As had been discussed at the July 2013 meeting in Greece, one of the purported Hezbollah operatives was to use the fraudulent passport to travel to Suriname. At the August 2013 meeting, Bouterse indicated that everything was ready in Suriname for the arrival of the purported Hezbollah members, and that some “toys,” or weapons, would be available for inspection. Bouterse also discussed receiving $2 million in cash in exchange for giving the purported Hezbollah operatives arms and access to Suriname, and asked the CSes to have the cash delivered to MUNTSLAG in Trinidad & Tobago. At that time, MUNTSLAG was waiting in Trinidad & Tobago to receive the cash, which he planned to transport back to Suriname to deliver to Bouterse. Shortly after the August 2013 meeting, MUNTSLAG was arrested in Trinidad & Tobago.
* * *
The Indictment charges MUNTSLAG with conspiring to import cocaine into the United States and to distribute cocaine, knowing and intending that it would be imported to the United States.
If convicted, MUNTSLAG faces a maximum sentence of life in prison and a mandatory minimum term of 10 years in prison.The maximum and mandatory minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
On August 29, 2014, Bouterse pleaded guilty to the narcotics importation conspiracy with which MUNTSLAG is charged as well as attempting to provide material support to Hezbollah, a Foreign Terrorist Organization; and using and carrying, or aiding and abetting the use and carrying of, a firearm, during and in relation to a drug-trafficking crime.On March 10, 2015, Judge Scheindlin sentenced Bouterse to 195 months’ imprisonment on all counts.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Miami Field Division, Panama City Country Office, Port-of-Spain Country Office, and Bogota Country Office; the Government of the Republic of Panama; the Government of the Republic of Trinidad and Tobago; and the U.S. Department of Justice’s Office of International Affairs and its National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit.Assistant United States Attorneys Adam Fee and Michael D. Lockard are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Maine Corporation Fined $10,000 for Counterfeit Goods TraffickingRead the Press Release
Contact: Joel B. Casey
F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Berg Enterprises, Inc., d/b/a “Berg Sportswear” of Corinna, Maine was fined $10,000 today in U.S. District Court by Judge John A. Woodcock, Jr. for trafficking in counterfeit goods. The defendant was also placed on probation for one year and ordered to pay $11,855.67 in restitution. The defendant pleaded guilty to the charge on June 23, 2014.
The defendant operates a screen printing business that prints, markets and sells apparel items bearing trademarks and other logos and images. A trademark is a symbol, word, or words legally registered in the United States Patent and Trademark Office or established by use as representing a company or product. According to court records, between January 2006 and January 2011, the defendant counterfeited apparel bearing the trademarks of the Boston Red Sox, Boston Celtics, New England Patriots, New York Yankees, Harley Davidson, John Deere, Jack Daniels, Orange County Choppers and Playboy. Employees designed counterfeit trademarks, created screens from which the trademarks could be printed on apparel items and printed the counterfeit trademarks on those items.
"Counterfeiting is not a victimless crime. It dupes the consumer, forces local stores out of business, and results in lost revenue for the trademark holders,” said special agent in charge Matthew Etre of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston. “Intellectual property theft is a very real crime with very real victims.”
The case was investigated by HSI, with the assistance of the Maine Drug Enforcement Agency and the Internal Revenue Service-Criminal Investigation.
Miami-Area Pharmacy Owner Pleads Guilty to Role in $1.6 Million Medicare Fraud SchemeRead the Press Release
A Miami-area pharmacy owner pleaded guilty today to submitting almost $1.6 million in fraudulent claims to Medicare.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tamara Esponda, 47, of Miami, pleaded guilty before U.S. District Judge James I. Cohn of the Southern District of Florida to one count of health care fraud. Sentencing has been scheduled for Nov. 13, 2015.
Esponda owned Biomax Pharamcy Inc. In connection with her guilty plea, Esponda admitted that, between October 2012 and September 2013, Biomax Pharmacy submitted almost $1.6 million in fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary, not purchased by Biomax Pharmacy and not provided to Medicare beneficiaries. Medicare paid 100 percent of the claims.
According to Esponda’s admissions, she and her accomplices stole or illegally paid for unique identifying information of Medicare beneficiaries, and used this information to submit the fraudulent claims. Esponda also admitted that she controlled Biomax Pharmacy’s bank accounts, and that she transferred the payments received from Medicare to herself and her accomplices.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Lutz Man Convicted of Attempted Child Enticement and Firearms ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Bryan Shane Sneed (41, Lutz) guilty of attempted enticement of a minor for sex and possession of a firearm during and in relation to a crime of violence. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for October 29, 2015.
Sneed was originally indicted on January 28, 2015. A superseding indictment was returned on March 18, 2015.
According to testimony and evidence presented at trial, on January 24, 2014, an undercover agent posing as a 14-year-old child responded to an online personal ad posted by Sneed. Sneed, who traveled frequently, communicated with the undercover agent through emails and text messages for almost a year, believing that the agent was 14 years old. During the communications, Sneed repeatedly sent the “child” multiple graphic images and a video of adult pornography. He made firm plans to meet the “child” in Tampa. On January 21, 2015, Sneed arrived at the agreed upon location and was placed under arrest. A search of his vehicle revealed loaded 9 millimeter and .45 caliber handguns, and condoms.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lincoln Woman Sentenced to 10 Years Imprisonment for Drug Trafficking and Money LaunderingRead the Press Release
United States Attorney Deborah R. Gilg announced that Jodi Muratella, 39 years old, was sentenced today to a 10 year term of imprisonment, and a term of 8 years of supervised release after she completes her prison sentence, by the Honorable Joseph F. Bataillon, United Stated District Court Judge. Jodi Muratella pleaded guilty on May 8, 2015 to conspiracy to distribute methamphetamine and conspiracy to commit money laundering. This case stems from a wiretap investigation where law enforcement discovered that several people, including Jodi Muratella, were distributing methamphetamine and marijuana in the Omaha and Lincoln areas. Jodi Muratella is from Lincoln, Nebraska. Some of those involved in selling the drugs, including Jodi Muratella, would at times deposit the proceeds of their drug sales into various bank accounts in order to funnel the money back to the drug suppliers in Mexico.
This case was investigated by the Greater Omaha Safe Streets Task Force, the Federal Bureau of Investigation, IRS Criminal Investigation, and the Drug Enforcement Administration. The Greater Omaha Safe Streets Task Force is comprised of the following agencies: The Omaha Police Department, The Bellevue Police Department, The LaVista Police Department, The Council Bluffs Police Department, The Douglas County Sheriff’s Office, and The Nebraska State Patrol.
Lincoln Resident Pleads Guilty to Gun ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Bruce Smith, 58, of Lincoln, Maine pleaded guilty today in U.S. District Court to possession of firearms by an unlawful user of bath salts.
According to court records, between January and April 2014, the defendant possessed seven firearms at a time when he was regularly using Alpha-PVP. Alpha-PVP is a schedule I controlled substance and is among a group of illegal, street drugs commonly referred to as bath salts. Two of the firearms were seized on March 9, 2014 following a traffic stop and Smith’s arrest by the Lincoln Police Department. Two more were seized on March 11, 2014 in Bradford, Maine and traced back to Smith. Smith possessed three more on April 8, 2014 when he was questioned by federal agents.
The defendant faces up to 10 years in prison, a $250,000 fine, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Drug Enforcement Agency; the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Lincoln Police Department.
Lawrence Police Chief, State NAACP President to Appear at Kansas Civil Rights SymposiumRead the Press Release
TOPEKA, KAN. - The chief of the Lawrence Police Department and the president of the Kansas State Conference of the NAACP will take part in the Kansas Civil Rights Symposium next week, U.S. Attorney Barry Grissom said today.
Lawrence Police Chief Tarik Khatib and state NAACP president Renee Wiggins will join U.S. Attorney Barry Grissom and Rita Valenciano of the Justice Department’s Community Relations Service to discuss building trust between police and the communities they serve.
The symposium is set for 9 a.m. to 4 p.m. Friday, Aug. 14, in the auditorium of the Brown v. Board of Education National Historic Site at 1515 SE Monroe in Topeka. There is no charge to attend, but registration is required.
Valenciano, a conciliation specialist with the Justice Department’s Community Relations Service (CRS), will speak on how the agency works to build stronger relationships between police departments and communities. She was a member of the CRS team that went to Ferguson, Mo., following the death of Michael Brown in August 2014.
Other presenters will include Anthony Fadale, Kansas State ADA Coordinator, speaking on the Americans with Disabilities Act; and Jennifer White and Stacie Donaldson of ICT-SOS speaking on human trafficking.
Registration is still open for the symposium, but seating is limited to 100. The symposium annually attracts law enforcement officers and civil rights leaders from across Kansas.
To register, download the registration form at:
http://www.justice.gov/usao-ks
Email the completed form to [email protected]. For more information, contact Heather Buller at 620-694-1537 or Jim Cross at 316-269-6552.
Jury Convicts Stephentown Man of Possessing Cocaine, Heroin and Oxycodone with the Intent to DistributeRead the Press Release
ALBANY, NEW YORK – On August 5, a jury found Joshua Stegemann, 38, of Stephentown, New York, guilty of (a) possessing cocaine, heroin, and oxycodone with the intent to distribute; (b) possessing two handguns in furtherance of a drug trafficking crime; and (c) possessing three firearms and ammunition while being a felon, announced United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge, New York Division, Drug Enforcement Administration.
United States Attorney Hartunian stated "This successful prosecution was brought about through the excellent cooperation of local, state, and federal law enforcement agencies working together to combat the trafficking of highly addictive drugs like cocaine, heroin and oxycodone. I commend these agencies for their tireless pursuit of those responsible for trafficking drugs on our streets."
The investigation was initiated by the Massachusetts State Police, who were subsequently joined by the Rensselaer County Sheriff’s Office, the Drug Enforcement Administration, and the New York State Police. The evidence at trial showed that Stegemann, a long-time resident of Stephentown, New York, used his Stephentown residence and surrounding grounds as a base of operation for his drug trafficking business. On April 30, 2013, investigators executed a search warrant at Stegemann’s residence and surrounding grounds and recovered large amounts of cocaine, heroin, and oxycodone pills, along with two loaded handguns, a loaded shotgun, and over $296,000 in U.S. currency. Most of these items were found hidden either inside of the defendant’s residence or in various landscaping features on the defendant’s property such as rock gardens, a stump pile or buried next to pine trees. On May 3, 2013, investigators recovered a safe hidden by the defendant in a Pittsfield, Massachusetts residence. The safe was found to contain over $160,000 in U.S. currency. Cumulatively, investigators recovered over 600 grams of cocaine, over 30 grams of heroin, over 700 oxycodone pills, three firearms, dozens of rounds of ammunition, and over $450,000 in U.S. currency.
Joshua Stegemann will be sentenced on December 2, 2015 at 9:00 a.m. in federal court in Albany before Chief Judge Gary L. Sharpe. Stegemann faces at least 15 years in prison and up to a life term of imprisonment, followed by a term of at least eight years of supervised release, and a fine up to $8,000,000.00.
This case was prosecuted by Assistant United States Attorneys Richard Belliss and Kofi Sansculotte.
Jury Convicts Albany County Man of Producing Child PornographyRead the Press Release
ALBANY, NEW YORK – Robert C. McCoy, 56, of Glenmont and Selkirk, NY, was convicted yesterday of three federal felony counts of sexual exploitation of a minor, possession of child pornography and commission of a felony offense involving a minor by a registered sex offender, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. The defendant was found guilty following a four day jury trial.
According to the evidence presented at trial, from 2012 to 2014, McCoy, a registered sex offender, produced sexually explicit images of a minor victim and possessed child pornography obtained by him from the Internet.
"Sexual exploitation crimes are heinous, preying upon the most vulnerable among us, our children," stated United States Attorney Richard S. Hartunian. "My office will continue to collaborate with our partner law enforcement agencies to investigate and prosecute such predators."
Sentencing was set by U.S. District Judge Mae D’Agostino for December 14, 2015 at 10 am. McCoy faces at least 35 years of imprisonment, with a maximum sentence of 70 years, a term of supervised release of no less than five years and up to life, and a fine of up to $250,000.
The case was investigated by the Town of Bethlehem NY Police Department and the Federal Bureau of Investigation, with assistance from the New York State Police. The case was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, Assistant United States Attorney Emily T. Farber, and former Special Assistant United States Attorney Amanda W. Cox. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Joint Investigation Leads to Large-Scale Narcotics Indictment and Arrests on Detroit's EastsideRead the Press Release
An indictment charging 24 members of a large-scale narcotics organization from the Ravendale neighborhood on Detroit’s east side was unsealed today, United States Attorney Barbara L. McQuade announced. Joining McQuade in the announcement was Special Agent in Charge Paul D. Abbate, Federal Bureau of Investigation. The indictment also charges six of the defendants with participating in an extensive illegal dogfighting ring. The indictment allege that these defendants acquired, bred and trained dogs for dogfights in Detroit. The indictment alleges that the group used 16 different houses, most of them abandoned, in and around the Ravendale neighborhood to distribute heroin, cocaine and crack cocaine during the past last several years. During that period, various law enforcement agencies have seized drugs, firearms and distribution paraphernalia in many of these abandoned houses. Through their joint investigative efforts, federal, state and local law enforcement agencies were able to connect this evidence to the larger distribution ring. Among those charged in the indictment unsealed today are: - Damon Burnett, 36, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and possession of a firearm by a felon; - Maurice Littles, 44, of Jackson, charged with conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute cocaine, and conspiracy to sponsor and exhibit an animal fighting venture; - Eric Edmon, 42, of Roseville, charged with conspiracy to possess with intent to distribute controlled substances; - Erik Carter, 39, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Derek Carter, 39, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Daron Calhoun, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Stevie Bridgeman, 36, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Clyde Woodson, 47, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Pierre Livingston, 43, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Marcus Bradford, 44, of Southfield, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Brian Williams, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Jackie Littles, 53, of Harper Woods, charged with conspiracy to possess with intent to distribute controlled substances; - Michael Anderson, 40, of Romulus, charged with conspiracy to possess with intent to distribute controlled substances; - Kim Robinson, 45, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Darren Parchem, 28, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Sherita Jones, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Maurice Littles Jr., 24, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and conspiracy to sponsor and exhibit an animal fighting venture; - Myron Duncan Plunkett, 23, charged with conspiracy to possess with intent to distribute controlled substances; - Ivin Booth, 40, of Pontiac, charged with conspiracy to possess with intent to distribute controlled substances; - Shajuana Barnes, 26, of Roseville, charged with conspiracy to possess with intent to distribute controlled substances; - Latrina Hamilton, 35, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; - Eugene Jackson, 29, of Monroe, charged with conspiracy to possess with intent to distribute controlled substances; - Renee Jackson, 40, of Monroe, charged with conspiracy to possess with intent to distribute controlled substances; and - Edward Wilson, 26, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances. “Large-scale, armed drug trafficking organizations that operate out of homes in residential areas create an unacceptable risk of violence to our neighborhoods,” McQuade said. “Dogfighting not only exposes animals to torture for human amusement, but it also poses a safety hazard for residents living in our community when dogs are trained to attack.” “We are extremely proud of the outstanding work done today by our agents and law enforcement partners, which is the result of long-term efforts to counter violent crime, illegal drugs, and organized criminal activity,” said Paul Abbate, Special Agent in Charge of the Detroit Field Office. "The success and impact of this joint effort is an example of our continued commitment together to ensure public safety and protect the citizens we serve in the city and the metropolitan area." The Federal Bureau of Investigation’s Violent Gang Task Force, consisting of representatives of the Detroit Police Department, Michigan State Police, Michigan Department of Corrections, and Homeland Security Investigations, led the investigation. The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
International Sports Gambling Ring Leaders Sentenced for RacketeeringRead the Press Release
NEWS RELEASE SUMMARY – August 7, 2015
SAN DIEGO - Two brothers were sentenced today for leading an international gambling ring that took millions of dollars in illegal sports wagers over the last decade in the San Diego and Los Angeles areas.
U.S. District Judge Janis L. Sammartino sentenced Jan Harald Portocarrero to 18 months in custody and a $50,000 fine; Erik Portocarrero received a 22-month sentence and a $50,000 fine.
Judge Sammartino ordered the Portocarreros to forfeit $1.7 million that they obtained from their illegal gambling business, “Macho Sports.” In addition, the brothers and 16 other defendants were ordered to forfeit unlawful gambling proceeds valued at over $10 million.
According to court documents, the FBI investigation of Macho Sports began in 2011, and employed wiretaps and undercover agents to infiltrate the organization and uncover the defendants’ illegal gambling and extortionate debt collection activities. Nearly two years ago, in coordinated law enforcement actions in Norway, Los Angeles, and San Diego, FBI agents and Norwegian police arrested 18 members of Macho Sports, and seized nearly $12 million in illegal assets.
Jan Portocarrero and Erik Portocarrero were both arrested in June 2013, although they were half a world apart – Jan Portocarrero surrendered to authorities in Los Angeles, California, and Erik Portocarrero was arrested in Oslo, Norway. For the next 22 months Erik Portocarrero fought his extradition from Norway, but that legal battle ended when the Kingdom of Norway extradited him to the United States.
According to the superseding indictment and admissions in court, Jan Portocarrero and Erik Portocarrero started their illegal gambling business shortly after the 1995 Super Bowl. Although originally from California, the Portocarrero brothers set up Macho Sports in Peru after being investigated for gambling crimes in the Los Angeles area.
Using the Internet and toll-free telephone lines, Macho Sports accepted high-stakes sports bets from customers throughout California. The organization ensured the prompt payment of gambling debts through, among other means, intimidation and a reputation of violence toward delinquent customers. The co-conspirators avoided detection by laundering their illegal proceeds and maintaining a company headquarters and physical platform outside the United States.
The Portocarreros employed managers in Peru to oversee the enterprise’s telephone and internet operations, resolve disputes and adjust customers’ lines of credit. The organization also used teams of bookies—such as Amir Mokayef of La Jolla, California (who operated primarily in the San Diego area) and Joseph Barrios (who operated primarily in the Los Angeles area)—to recruit customers, pay off winning bets, and collect losing bets.
Mokayef and Barrios, in turn, managed their own network of “sub-bookies” to recruit customers and collect payments. The enterprise also used “runners,” who dealt directly with customers and maintained thousands (and sometimes millions) of dollars in cash to handle customer payments and collections. Millions of dollars from these “banks” – which the conspirators kept in their homes and safe deposit boxes – were seized by authorities as part of the investigation.
Mokayef and Barrios have pleaded guilty and are awaiting sentencing. The other individual defendants have also pleaded guilty and either have been sentenced, or are awaiting sentencing.
“After running an international racketeering organization for two decades, Jan and Erik Portocarrero finally faced American justice today,” said U.S. Attorney Laura Duffy. “Despite attempting to evade U.S. law enforcement by moving their sophisticated operations to Peru and Norway, they must now face substantial custodial sentences and millions in forfeitures. No longer can their global Macho Sports enterprise engage in violence, threats, and intimidation to amass illegal profits.”
Duffy added: “We wish to thank our law enforcement partners in Norway for their invaluable assistance throughout this case.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Today’s sentencings mark the end of a sophisticated international gambling criminal enterprise that preyed upon the gambling addiction of its customers. It also reaffirms the FBI’s commitment to working with our domestic and international law enforcement partners, integrating intelligence into our criminal investigations and dismantling sophisticated criminal enterprises such as Macho Sports.”
The Portocarreros were ordered to report to prison on August 31, 2015.
DEFENDANTS Case Number: 13CR2196-JLS
Jan Harald Portocarrero Age: 42 Los Angeles, CA
Erik Portocarrero Age: 44 Oslo, Norway
SUMMARY OF CHARGES
Count 1: Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of Title 18, United States Code, Sections 1962(c)&(d)
Maximum penalties: 20 years in prison, 3 years supervised release; and a $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service – Criminal Investigation
Norwegian Police
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney’s Office today announced that during a federal court session in Billings, Montana on August 5, 2015, before U.S. Magistrate Judge Ostby, the following individuals appeared:
- BURHAN A. MALLAK, a 63-year-old resident of Billings, made an initial appearance on a complaint alleging possession of methamphetamine with intent to distribute. He is currently detained. If formally charged with this offense by indictment, MALLAK, faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.. The investigation is being conducted by the Federal Bureau of Investigation. PACER Case Reference: 15-65
- DENISE KELLY MALLAK, a 47-year-old resident of Billings, made an initial appearance on a complaint alleging possession of methamphetamine with intent to distribute. She is currently detained. If formally charged with this offense by indictment, MALLAK, faces 20 years in prison, $1,000,000 in fines and 3 years supervised release.. The investigation is being conducted by the Federal Bureau of Investigation. PACER Case Reference: 15-66
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on August 7, 2015, and entering pleas of Not Guilty were:
- JESUS YEIZON DENIZ MENDOZA, a 18-year-old resident of Worland, Wyoming, appeared on charges of first degree murder, assault with intent to commit murder, assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious charges contained in the indictment, MENDOZA faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-93
Appearing before U.S. Magistrate Ostby in Billings on July 31, 2015, and entering pleas of Not Guilty were:
- ZETH ANDREW HILARIO, a 32-year-old resident of Billings, appeared on charges of mail fraud and aggravated identity theft. If convicted of the most serious charges contained in the indictment, HILARIO faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-83
Appearing before U.S. Magistrate Johnston in Great Falls on July 29, 2015, and entering pleas of Not Guilty were:
- SHANLEY LEONARD BIGHORN, a 30-year-old resident of Brockton, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, felon in possession of a firearm and possession of a firearm not registered in the national firearm registration and transfer record. If convicted of the most serious charges contained in the indictment, BIGHORN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-44
- PAUL DARRELL RED EAGLE, SR., a 27-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, RED EAGLE faces life in prison, $10,000,000 in fines and 5years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-44
Appearing before U.S. Magistrate Lynch in Missoula on July 28, 2015, and entering pleas of Not Guilty were:
- NATHAN GLEN KIRKLAND, a 45-year-old resident of Lakeside, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, KIRKLAND faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations and the Northwest Drug Task Force. PACER Case Reference. 15-16
Appearing before U.S. Magistrate Ostby in Billings on July 27, 2015, and entering pleas of Not Guilty were:
- DAVID JAMES MATTHEW, a 54-year-old resident of Hardin, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, MATTHEW faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-81
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston, Texas-Area Teenager Pleads Guilty to “Swatting” and Making Bomb Threats to Minnesota High SchoolRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ZACHARY LEE MORGENSTERN, 19, to calling in multiple false bomb threats, making harassing text messages, and making “swatting” phone calls, in which he falsely reported hostage situations. MORGENSTERN was arrested in Texas on May 14, 2015, and was transported to Minnesota. He pleaded guilty today before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
“‘Swatting’ is dangerous to victims and a significant drain on scarce law enforcement resources,” said U.S. Attorney Andrew M. Luger. “This defendant made swatting attacks, bomb threats and threats to shoot students at schools in Minnesota, in an attempt to harass and intimidate. Schools in Marshall were disrupted by these threats and law enforcement was forced to deploy in order to address imagined hostage situations. The FBI and U.S. Attorney’s Office will not allow such threats to go unanswered.”
According to the defendant’s guilty plea and documents filed in court, between October 2014 and May 2015, MORGENSTERN, made a series of threatening communications against a number of different victims in the Marshall, Minnesota area. The defendant, cloaking himself in anonymized email addresses, Twitter handles, and Internet-based phone accounts, made threats to kill a police officer and her family; threats to use explosives to blow up a school; and threats to use guns to shoot up a school. MORGENSTERN also engaged in a series of “swatting” attacks, in which he made hoax phone calls to law enforcement making it appear that there was a violent crime in progress at a residence, when in fact no such crime was taking place. The defendant engaged in these “swatting” calls with the intent that they would result in an emergency police response to the residence, ideally involving a Special Weapons and Tactics (SWAT) team.
According to the defendant’s guilty plea and documents filed in court, one such attack came on October 7, 2014, when MORGENSTERN called the Marshall Police dispatch center and claimed to have taken two people hostage at a residence of H.M., a minor, in Marshall. MORGENSTERN further claimed that he had shot one of the hostages in the knee cap and that he was going to kill both hostages unless he received a duffel bag containing a half a million dollars. The Marshall Police Department determined that call was a hoax.
According to the defendant’s guilty plea and documents filed in court, beginning on January 6, 2015, MORGENSTERN, claiming to be D.R., a 17-year-old from Marshall, made at least three separate bomb threats to Marshall High School. Approximately four hours after the first threat was called in on January 6, MORGENSTERN used the twitter handle @RIURichHomie, to tweet to D.R., “OOPS. NICE BOMB THREAT. TEEHEEEEEEEE :).” MORGENSTERN later sent a tweet to both D.R. and his friend, S.V., in which he claimed responsibility for the bomb threat.
According to the defendant’s guilty plea and documents filed in court, on January 8, 2015, MORGENSTERN twice called the Marshall Police Department dispatcher. During those calls, MORGENSTERN claimed to have taken hostage a father and son in their home in Marshall. The address provided to police was the residence of D.R. Shortly after each call to Marshall Police, MORGENSTERN tweeted D.R. that he was in the process of “swatting” D.R.
According to the defendant’s guilty plea and documents filed in court, on January 9, 2015, MORGENSTERN called the Marshall Police dispatch and, claiming to be D.R., threatened to “shoot up” Marshall High School in 30 minutes and kill everybody. MORGENSTERN then tweeted from the account, @RIURichHomie that D.R. was going to shoot up a school in 10 minutes. On January 11, 2015, an email was sent to the Superintendent of the Marshall Public Schools, which had purportedly been sent by D.R. The sender claimed to be D.R. and that D.R. and had planted a bomb in at a Marshall, Minn., school that would detonate at 10:00 a.m. the following day. The sender also claimed that he/she would arrive at a different Marshall school at the same time and shoot students and faculty members.
According to the defendant’s guilty plea and documents filed in court, MORGENSTERN engaged in additional threats, harassment, and swatting attacks against individuals in other states. For example, on or about December 24, 2014, the defendant called the Amelia, Ohio Police dispatch center and claimed to be a boy hiding in the closet while a home invasion was in progress. He falsely stated that he was calling from a residence in Amelia, and that three men broke into his house and shot his mother. On or about February 10, 2015, the defendant contacted the Amesbury, Massachusetts Police dispatch center and claimed to be a boy hiding in his closet at an address that was the residence of G.Q, a minor. He falsely stated that four black men had broken into his residence and shot his mother. The call resulted in an armed police entry into the residence, after which police concluded the call was a hoax.
“The multiple calls to law enforcement and the Marshall High School spread fear and taxed the resources of the Police Department and the school,” said Marshall Police Chief Rob Yant. “Even after the first couple of threats, when it appeared that they were being done as a hoax, we had to take them seriously because what if we hadn’t and they turned out to be real? The Internet has made us vulnerable to these types of threats, even when the perpetrator turns out to be halfway across the country, and it has also made it easier for people making the threats to conceal their location and identity. Local police departments do not have the time or the expertise to investigate these cases. That is why we are so grateful for the assistance of the FBI and the US Attorney’s Office in locating and bringing the perpetrator to justice in this case.”
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Marshall Police Department.
This case is being prosecuted by the United States Attorney’s Office for the District of Minnesota.
Defendant Information:ZACHARY LEE MORGENSTERN, 19
Cypress, Tex.Convicted:
- Threats to kill, 1 count
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN VASQUEZ-ALVARADO, age 47, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, VASQUEZ-ALVARADO reentered the United States after having been previously deported on September 5, 2002. If convicted, VASQUEZ-ALVARADO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution
Former Union Bookkeeper Pleads Guilty to EmbzzlingRead the Press Release
Carolyn Hall, 53, of McLeansboro, Illinois, entered a plea of guilty to a one-count indictment that charged embezzlement and theft from a labor union, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Hall faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 years’ supervised release. Sentencing has been scheduled for December 1, 2015.
As part of the plea, Carolyn Hall admitted that while she was the bookkeeper for Laborer's Local 1197 she took $26,491 of cash receipts from members' dues payments and used the funds for personal use. The thefts occurred from approximately July of 2012 and continued through approximately February of 2014. Laborers' Local 1197 is part of the Laborers' International Union of North America and is headquartered in McLeansboro, Illinois. Laborers' Local 1197 provides jobs, training, and benefits to members in fourteen counties in Southern and Central Illinois.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of Laborer's Local 1197. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former U.S. Postal Service Employee Sentenced to Federal Prison for Theft of Postal Funds and Identity TheftRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson sentenced LARONDA D. MOORE, age 38, of Baton Rouge, Louisiana, yesterday to serve 32 months in federal prison for her conviction for aggravated identity theft and misappropriation of postal funds. Following her release from prison, MOORE will be required to serve a 2-year term of supervised release. MOORE must also make restitution to the United States and other victims in the amount of $8,922.60.
According to documents filed in this case, MOORE worked as a United States Postal Service employee at the Sunshine Post Office in St. Gabriel, Louisiana from July 15, 2013, to June 30, 2014. From at least June 1, 2014, until June 30, 2014, while working in her capacity as a Postal Service employee, MOORE stole $7,776.56 in postal funds. Also during this time, Moore stole and opened undelivered mail in order to collect personally identifiable information and fraudulently obtain the identities of citizens living in the community for which she served. MOORE then used these fraudulently obtained identities to apply for and obtain multiple lines of credit and make unauthorized purchases on behalf of the victims.
United States Attorney Green stated: “It is outrageous that Ms. Moore would betray the trust of the community and use her position as a federal employee with the U.S. Postal Service to steal and commit identity theft in order to enrich herself. Her actions undermine the honest and hard work performed everyday by the vast majority of those working for the U.S. Postal Service. I greatly appreciate the through investigative efforts of the Office of the Inspector General for the U.S. Postal Service in uncovering these criminal acts.”
U.S. Postal Service, Office of Inspector General, Special Agent-in-Charge Maximo Eamiguel stated: “The United States Postal Service understands the sacred trust that the public invest in it on a daily basis. We do not tolerate employees of our agency utilizing their position of public trust to defraud those that they serve. We are committed to the immediate and vigorous prosecution of any individual involved in such activities.”
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the United States Postal Service, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.
Former Spring Valley Mayor Noramie Jasmin Sentenced to Four Years in Prison for Extortion and Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that NORAMIE JASMIN, the former mayor of Spring Valley in Rockland County, was sentenced today in federal court in White Plains to four years in prison for fraud and extortion, charges that stemmed from her misuse of her position as mayor in an effort to enrich herself. JASMIN negotiated a 50% stake in a development company and $5,000 cash for herself in exchange for her use of her office to obtain land and various government approvals to construct a community center in Spring Valley. JASMIN was convicted in April after a one-week bench trial before U.S. District Judge Colleen McMahon, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “By abusing her position as mayor for her own personal gain, Noramie Jasmin betrayed the trust the people of Spring Valley put in her. As the conviction and prison sentence today make clear, we do not accept public corruption in New York as the status quo. I would like to thank our partners at the FBI, the Rockland County District Attorney’s Office, and the Spring Valley Police Department for their excellent work in this important case.”
According to the evidence presented at trial, the Indictment, and the Complaint:
NORAMIE JASMIN was sworn in as Mayor of the Village of Spring Valley, New York in December 2009. From September 2011 through April 2013, JASMIN accepted cash and other benefits from an undercover FBI agent (the “UC”) and a witness cooperating with the Government (the “CW”) on multiple occasions in exchange for official acts. The scheme centered on the development of a community center in the Village of Spring Valley whose construction costs were expected to be at least $12 million. In exchange for her vote in favor of the sale of land owned by Spring Valley to a company she believed was controlled by the UC, JASMIN demanded a secret ownership stake in the company. JASMIN also asked for an advance on her profits from the scheme and accepted a $5,000 cash payment from the CW. In support of the scheme, JASMIN directed the UC to find people to pose as bidders for the project so that the transaction would appear legitimate to the other members of the Spring Valley Board of Trustees who were to, and did, vote on the sale. Over the course of two days, JASMIN met the UC, together with two other undercover FBI agents posing as straw bidders (the “Straw Bidders”), in hotel rooms and instructed the Straw Bidders on how to make a presentation before the Spring Valley Board of Trustees such that the Straw Bidders would lose their purported bids on the land sale. JASMIN then presided over the presentations made by the company in which she had a secret financial stake and the fake presentations that she had helped prepare. The following day, JASMIN presided over a Village Board of Trustees meeting, during which she asked the Board for permission to negotiate the sale of Village land to the UC’s company and then voted a “strong yes” to grant herself that permission. When questioned as to why the Board needed to vote to grant her that permission, JASMIN remarked that she “cannot sit behind closed doors with a developer to negotiate on behalf of the Board.” The evidence showed that that was precisely what she did; she sat behind closed doors and negotiated a financial stake for herself in the days preceding the vote.
* * *
In addition to her prison sentence, JASMIN, 51, of Spring Valley, New York, was sentenced to three years of supervised release and ordered to pay $15,000 in restitution of her salary and to forfeit $5,000. JASMIN was ordered to surrender to the Bureau of Prisons on November 2.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the Rockland County District Attorney’s Office, and Chief Paul Modica and the Spring Valley Police Department.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom and Jessica K. Feinstein are in charge of the prosecution.
Former President of Chicago Construction Company Indicted in $1.9 Million Union Fraud SchemeRead the Press Release
CHICAGO — The former president of a Southwest Side construction company paid off-the-books cash wages to workers and under-reported their hours as part of a scheme to defraud the benefit funds of the employees’ labor union, according to a federal indictment unsealed Friday.
While serving as president of My Baps Construction Corp., YASHVANT C. PATEL paid less-than-union-scale wages to dozens of employees, including illegal aliens, in order to reduce the employer contributions to the benefit funds of the Construction and General Laborers’ District Council of Chicago and Vicinity, according to the indictment. Patel falsely reported that My Baps and a sister company, Vijay Construction Corp., owed approximately $600,000 less to the benefit funds and approximately $1.3 million less to the companies’ employees than what was required by collective-bargaining agreements with the union, the indictment states.
Patel, 59, of St. Charles, was arrested Friday morning. He is scheduled to make an initial court appearance at 11:30 a.m. today before U.S. Magistrate Judge Daniel G. Martin in Chicago.
The indictment charges Patel with four counts of mail fraud and four counts of making false statements in documents required to be kept pursuant to the Employee Retirement Income Security Act (ERISA). The indictment seeks forfeiture from Patel of $1.9 million.
From January 2009 through October 2010, Patel controlled the daily operations and finances of My Baps and Vijay, both of which operated as concrete and asphalt contractors while sharing a principal place of business at 7601 S. Kedzie Ave. in Chicago, the indictment states. Patel had authority over the bank accounts of both companies, and he approved expenditures to outside entities, including monthly payments to the benefit funds, according to the indictment. The benefit funds, in turn, provided union members with pension, health and training benefits. Pursuant to collective-bargaining agreements, My Baps and Vijay were required to pay their employees certain wages, and to provide the benefit funds with monthly remittance reports identifying the hours worked and the total contribution due for each covered employee, according to the indictment.
The indictment charges that Patel under-reported approximately 33,000 hours of work performed by his employees, some of whom were not lawfully entitled to work in the United States, resulting in purportedly lower employer contributions into the union’s benefit funds. Patel paid many of these workers in under-the-table cash payments, at wages that were less than what was required by the collective-bargaining agreements, the indictment states.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago, Section of Labor Racketeering & Fraud Investigations; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Each count of mail fraud carries a maximum sentence of 20 years in prison, a $250,000.00 fine and mandatory restitution. Each count of making false statements in ERISA documents carries a maximum sentence of five years in prison, a $250,000 fine, and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorney Christopher McFadden.
Indictment
Former Oakland Accountant Sentenced to over Four Years in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
OAKLAND – Robert Thomas Doyle was sentenced today to 51 months in prison and ordered to pay restitution in the amount of $142,031 for wire fraud and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
Doyle, 64, of Oakland, pleaded guilty on February 23, 2015. According to the plea agreement, during 2011, 2012, and 2013, Doyle implemented an identity theft and tax fraud scheme in which he caused the filing of a number of tax returns claiming fraudulent refunds. As part of his scheme, Doyle, a certified public accountant until 1987, created false businesses and claimed false income and expenses for his clients in order to maximize the Earned Income Tax Credit. The fraudulent income and expenses led to a larger-than-allowed claimed refund. Doyle did not ask his clients about any income earned or current or past employment history. Doyle also used the names and social security numbers of former clients to prepare and file false tax returns without these victims' knowledge or consent. On many of the tax returns, Doyle directed the refunds to be mailed to addresses where he could retrieve them or have the refunds electronically deposited into bank accounts that he controlled. Doyle was indicted on February 20, 2014, with two counts of mail fraud, in violation of 18 U.S.C. § 1341; six counts of wire fraud, in violation of 18 U.S.C. § 1343; and eight counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
The sentence was handed down today by the Honorable Jon S. Tigar, United States District Judge. Following his release from prison, the defendant will be required to serve three years of supervised release, and pay restitution in the amount of $142,031. The defendant will begin serving his sentence on October 5, 2015.
Assistant United States Attorney Thomas Moore and Special Assistant United States Attorney Jennifer Tolkoff are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former National Geospatial-Intelligence Agency Official Pleads Guilty to Making False StatementsRead the Press Release
A former National Geospatial-Intelligence Agency (NGA) official pleaded guilty to making false statements to federal investigators regarding his financial interest in a private company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Inspector General for Investigations Patricia C. Langford of NGA and Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office made the announcement.
Brian P. Hearing, 43, of Falls Church, Virginia, pleaded guilty before U.S. District Judge T. S. Ellis III of the Eastern District of Virginia to an information charging him with making material false statements to federal investigators.
According to the statement of facts filed along with his plea agreement, Hearing worked at NGA from 2011 to 2015 in its Innovision Directorate, an applied science and technology research group. Hearing admitted that, during this time, he also co-founded a private company for the purpose of developing and commercializing a certain type of automated detection system. Hearing also admitted that he inappropriately used his position with the NGA to promote the company.
In connection with his guilty plea, Hearing also admitted that, when questioned by federal agents about his involvement with the company, he lied to conceal his conflict of interest. Among other things, Hearing admitted to falsely claiming that another individual was the only founder of the company and to denying having any legal or financial connections to the company when, in fact, he co-founded the company and shared equal ownership of it.
This case was investigated by the NGA-OIG and the DCIS. The case is being prosecuted by Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul J. Nathanson of the Eastern District of Virginia.
Hearing Plea Agreement
Former Leader of Nine-Trey Gangster Bloods Sentenced to 30 Years in Prison for Role in Violent RobberiesRead the Press Release
ALEXANDRIA, Va. – Brien Keith Hughes, 32, formerly of Alexandria, was sentenced today to 360 months in prison, followed by five years of supervised release for convictions related to his role in two violent robberies where firearms were used.
Hughes pleaded guilty on March 4, 2015. According to court documents and statements made in court, Hughes, who previously served as a leader of the Nine Trey Gangster Bloods clique of the United Blood Nation transnational street gang, was involved in two violent robberies on May 13, 2013. In both instances, Hughes, along with other co-conspirators, targeted a low-level marijuana dealer and engaged in what is referred to as a “drug rip,” where after setting up a drug transaction, the purchaser robs the drug dealer of their narcotics and any other valuables. In this case, Hughes and other Bloods members executed an armed robbery of the victim and stole his narcotics, identification, vehicle, and keys.
After waiting for a period of time, Hughes and his co-conspirators, using the information found on the victim’s stolen identification, traveled to the home where the victim was residing. In addition to the victim, two other individuals, innocent bystanders who merely rented a room to the victim, were also present when the defendant and his fellow gang members made entry into the home.
The defendant and his co-conspirators, armed with handguns and zip-ties, forced entry into the home and quickly assaulted the three sleeping occupants and restrained the victims using zip-ties. Once the victims were tied up and partially blindfolded, some gang members ransacked the house looking for drugs, valuables, and weapons, while the other gang members, including the defendant, interrogated the three victims regarding the location of additional marijuana. This interrogation was particularly heinous as it involved physical and sexual assault.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the Fairfax County Police Department’s Gang Unit and the FBI’s Washington Field Office, with assistance from the Spotsylvania County Sheriff’s Department and City of Fredericksburg Police Department. Assistant U.S. Attorney Zachary Terwilliger and former Special Assistant U.S. Attorney Catherine Ahn prosecuted the case. A special thanks to our prosecutorial partners at the Spotsylvania County Commonwealth Attorney’s Office for their assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-70.
Former Investment Manager Employee Sentenced in Manhattan Federal Court to Four Months in Prison for Obstruction of Justice and PerjuryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN HART was sentenced yesterday to four months in prison in Manhattan federal court for obstruction of justice and perjury charges relating to an investigation that the U.S. Securities and Exchange Commission (the “SEC”) had conducted into potential violations of the federal securities laws. Hart previously pled guilty on March 13, 2015 to a two-count criminal information. He was sentenced by U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Preet Bharara said: “Steven Hart obstructed an SEC investigation into securities fraud by giving false testimony under oath and even going so far as to impersonate his boss when the SEC called with questions. Prosecutors and regulators cannot do their jobs properly if people deliberately obstruct their investigations, as Hart did here.”
According to the Information filed in Manhattan federal court, other court documents, and statements made in court:
HART, who was employed at an investment management firm headquartered in Englewood Cliffs, New Jersey (the “Investment Firm”), and reported directly to the president of the Investment Firm (the “Investment Firm President”), served as a portfolio manager at the firm and, in that capacity, exercised trading authority over the brokerage accounts for one of the funds managed by the Investment Firm (the “Fund”). At the same time, HART also controlled and directed Octagon Capital Partners, LP (“Octagon”), a private investment fund with its principal place of business in New York, NY. Through Octagon, HART invested his own money and the money of several of his associates.
In 2009, the SEC was investigating HART’s trading activities at the Investment Firm (the “SEC Investigation”). First, the SEC was investigating whether HART, in his capacity as a portfolio manager at the Investment Firm, had conducted improper “match trades” or “cross trades” between his personal fund, Octagon, and the Fund. The SEC was also investigating whether HART had traded in securities based on material non-public information (“MNPI”) relating to confidentially-marketed securities offerings – information that HART had obtained while being solicited to invest in those offerings.
As part of this investigation, SEC officials, among other things, issued a subpoena to the Investment Firm, care of the Investment Firm President, seeking the production of several different categories of documents. HART received the subpoena at the Investment Firm before it was seen by any other employee and produced documents to the SEC in New York without (1) informing anyone else at the Investment Firm about the subpoena, or (2) informing the SEC that it was HART alone who responded to the subpoena.
Moreover, in the course of providing sworn testimony to the SEC, HART made several materially false statements. He falsely testified that the Investment Firm President had agreed that HART should conduct match trades involving the Fund as part of an investment strategy for the Fund. HART also falsely testified that he and the Investment Firm President had discussed the SEC Investigation, and that the Investment Firm President was aware that HART had been subpoenaed to testify before the SEC.
On two occasions, HART impersonated the Investment Firm President during telephone conversations with the SEC. Specifically, on December 9, 2009, an SEC attorney called the Investment Firm to speak with the firm’s President about the SEC Investigation. HART received the phone call and pretended to be the Investment Firm President. During that call, HART, speaking as the Investment Firm President, falsely stated that: (1) the Investment Firm President was aware that HART had engaged in improper trading activity, but nevertheless wanted HART to remain an employee of the Investment Firm; and (2) the Investment Firm President was aware of, and had approved, HART’s match trading activity as a means for the Fund to dispense of restricted shares of stock.
On December 11, 2009, the same SEC attorney, along with a second SEC attorney, called the Investment Firm again to speak with the firm’s President. HART again received the phone call and pretended to be the Investment Firm President. During that call, HART, speaking as the Investment Firm President, falsely stated to the SEC attorneys that: (1) HART’s match trading activity was an intentional strategy of the Investment Firm to take a loss on the trading in exchange for the ability to sell otherwise restricted shares of stock; (2) HART was still a valued employee of the Investment Firm who had earned the Investment Firm far more than whatever amount HART had gained through match trading; and (3) HART had fully disclosed to the Investment Firm President that HART had traded based on MNPI and that this was a one-time mistake that would not happen again. Each of these statements was false.
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In addition to the prison term, Judge Failla sentenced Hart, 42, who currently resides in Manhattan, New York, to two years’ supervised release.
Mr. Bharara thanked the U.S. Securities and Exchange Commission for its assistance in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason H. Cowley is in charge of the prosecution.
Former Intelligence Agency Official Pleads Guilty to Lying to Federal AgentsRead the Press Release
ALEXANDRIA, Va. – Brian P. Hearing, 43, of Falls Church, Virginia, a former official with the National Geospatial-Intelligence Agency (NGA), pleaded guilty today to lying to federal investigators to conceal his ownership of a private company he was inappropriately using his official position to promote.
According to the statement of facts filed along with his plea agreement, Hearing worked at NGA from 2011 to 2015 in its Innovision Directorate, an applied science and technology research group. Hearing admitted that, during this time, he also co-founded a private company for the purpose of developing and commercializing a certain type of automated detection system. Hearing also admitted that he inappropriately used his position with the NGA to promote the company.
In connection with his guilty plea, Hearing also admitted that, when questioned by federal agents about his involvement with the company, he lied to conceal his conflict of interest. Among other things, Hearing admitted to falsely claiming that another individual was the only founder of the company and to denying having any legal or financial connections to the company when, in fact, he co-founded the company and shared equal ownership of it.
Hearing faces a maximum penalty of five years in prison when sentenced on Nov. 13, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Patricia C. Langford, Assistant Inspector General of NGA; and Paul Sternal, Acting Special Agent in Charge for the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
This case was investigated by the NGA Office of Inspector General and DCIS. Assistant U.S. Attorney Paul J. Nathanson of the Eastern District of Virginia, and Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-214.
FnD Gang Member Pleads GuiltyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRIAN BENSON, a/k/a “Dub,” a/k/a “Dubba,” age 31, of New Orleans, pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbigny gang, or “FnD.”
BENSON pled guilty to two counts of the Third Superseding Indictment. Count 1 charged BENSON with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. The maximum sentence for Count 1 is a term of life imprisonment. BENSON also pled guilty to Count 2, charging conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, for which BENSON faces a mandatory minimum of 20 years in prison and a maximum of life imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing on November 4, 2015.
According to court documents, FnD constituted a racketeering “enterprise” under federal law. BENSON, as a member of this enterprise, conspired to commit numerous overt acts in furtherance of this enterprise. These acts included the distribution of illegal narcotics, such as heroin and crack cocaine. FnD members used a store, the Frenchmen Meat Market, located at Frenchmen and N. Derbigny streets to sell drugs. As set forth in plea documents, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) raided the store in August 2013 pursuant to a search warrant. Agents seized video surveillance recordings from the store that showed BENSON and other members of FnD selling drugs over the course of five days.
CRYSTAL SCOTT, RICHMOND SMITH, GRALEN BENSON, and JEREMIAH JACKSON have previously pled guilty and are awaiting sentencing. TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, and AKEIN SCOTT are scheduled for trial on October 19, 2015.
The Indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the FnD gang. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.
Florida Man Pleads Guilty to Multiple Lacey Act Violations for Trading Illegal SnakesRead the Press Release
Gerard Kruse, 42, a social worker who lives in Oviedo, Florida, pleaded guilty today in federal court in Brooklyn, New York, to 13 Lacey Act violations for his role in the trade of illegally caught snakes, the Justice Department’s Environment and Natural Resources Division announced.
Kruse pleaded guilty to seven counts of illegal transport of wildlife and six counts of illegal receipt of wildlife, which under the facts of the case are misdemeanors under the Lacey Act. At the time of the crimes, Kruse was living in Douglaston, New York. In court documents, Kruse admitted that between 2008 and 2012, he knowingly participated in violations, which involved the illegal collection, transport and receipt of 59 snakes that were collected from and protected by various states, such as New Jersey, California and Oregon. Under the Lacey Act, it is illegal to knowingly ship or receive snakes in interstate commerce that were taken in violation of state law. During the course of his conduct, Kruse personally collected protected snakes and shipped them to collectors in other states. Sometimes he received money for the reptiles; other times he bartered snakes. In addition, Kruse would solicit snakes from out-of-state collectors, while knowing that those collectors had procured their snakes illegally. The last charge of the information deals with Kruse’s involvement in the shipment of a diamondback rattlesnake from Texas to Douglaston in a coffee can, in violation of U.S. Postal regulations.
The Lacey Act is an important statute for protecting our nation’s wildlife against those who make enforcement of state laws difficult by crossing state lines with protected species,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “All of our protected species, including reptiles, are important to our ecosystems and must be shielded from such illegal trafficking. The Justice Department will continue to vigorously support efforts against domestic wildlife trafficking.”
According to the terms of the pela agreement, the government will seek 13 months of home confinement with electronic monitoring, a request which is unopposed by the defense. In addition, Kruse has agreed to be placed on probation and subject to special conditions such as forfeiture of his snakes and being banned from the collection, sale and trade of reptiles and amphibians. Terms of Kruse’s sentence that the parties could not agree on will be decided at a sentencing hearing set for Dec. 15, 2015.
The case was investigated by agents of the U.S. Fish and Wildlife Service as part of Operation Kingsnake. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.
Federal Jury Convicts Jemez Pueblo Man on Felony Murder ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict this afternoon finding Gavin Yepa guilty on a felony murder charge after a ten-day trial, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Yepa, 30, a member and resident of Jemez Pueblo, was arrested on Jan. 3, 2012, on a criminal complaint charging him with killing a 38-year-old Navajo woman during a sexual assault that took place at Yepa=s residence on Jemez Pueblo on the night of December 28, 2011. Yepa previously had been arrested on tribal charges on Dec. 28, 2011, and remained in tribal custody until his arrest on the criminal complaint.
In Jan. 2012, a federal grand jury indicted Yepa on a felony murder alleging that the victim died as the result of an aggravated sexual assault by Yepa. Trial of the case was delayed by interlocutory appeals. The trial commenced on July 27, 2015, and concluded this afternoon when the jury returned a guilty verdict on the sole charge before them.
The evidence at trial established that Yepa met the victim in San Ysidro, N.M., on the evening of Dec. 28, 2011, and took her to his residence. Shortly before midnight, Yepa contacted tribal officials and reported that there was a woman in his home who was not breathing. When Yepa escorted the officials into his residence, they observed a large amount of blood on the floor throughout the house and found the victim’s nude body, which was covered with blood, in a bedroom.
After finding the victim’s body, the tribal officials notified the Jemez Pueblo Trial Police Department who then notified the FBI. The FBI then initiated an investigation into the victim’s death. The investigation revealed that Yepa had numerous scratches and abrasions on his arms, torso and legs as well as blood on his hands, feet and clothing. Forensic investigation determined that the victim was the source of the blood on Yepa.
An examination of the victim’s body revealed that she had been brutally sexually assaulted, and the investigation revealed that a water bottle, a liquor bottle and the handle of a shovel, all of which were found at the crime scene, were used to assault her. DNA analysis confirmed that the victim’s blood was all three items.
Yepa has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Yepa faces a mandatory sentence of life imprisonment.
This case was investigated by the Albuquerque office of the FBI with assistance from the Jemez Pueblo Tribal Officials, the Jemez Pueblo Tribal Police Department and the Crime Scene Unit of the New Mexico State Police. Assistant U.S. Attorney Niki Tapia-Brito and Linda Mott are prosecuting the case.
The prosecution of this case is part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Family Members Sentenced for Roles in Marriage Fraud SchemeRead the Press Release
DALLAS — A North Texas mother and her daughter, along with seven other family and extended family members, have been sentenced for their roles in a marriage fraud conspiracy that began more than 20 years ago, announced John Parker, U.S. Attorney for the Northern District of Texas.
Frances Sandoval, 61, and her daughter, Monica Morena, 32, were each sentenced last week, by U.S. District Judge David C. Godbey, to 65 months and 48 months, respectively, in federal prison. In addition, Sandoval was ordered to forfeit $45,850, and Morena was ordered to forfeit $21,710, the proceeds each received for participating in the conspiracy.
Both Sandoval and Morena pleaded guilty in March 2015 to conspiracy to commit fraud in connection with immigration documents and aggravated identity theft. They prepared and filed fraudulent applications for family unity, which included counterfeit birth certificates and fraudulent income tax returns and affidavits. They used the fraudulent documents to make it appear that aliens without lawful status in the U.S. were children of U.S. citizens or lawful permanent residents. For identity documents for the “parents,” Sandoval and Moreno used actual naturalization certificates and copies of permanent resident cards that Sandoval obtained from her tax clients, without the clients’ knowledge or permission. Sandoval engaged in this scheme for more than 20 years and is responsible for more than 350 fraudulent filings. Moreno engaged in the scheme for more than 10 years.
Five of the seven remaining defendants, Adolfo Moreno, 24; Edward Moreno, Jr., 30; Claudia Gonzalez, 35; Lidia Saldana, 40; and Cassandra Gonzalez, 23; pleaded guilty to marriage fraud or conspiracy to commit marriage fraud. Each was sentenced to two years of probation, to include 120 days of home confinement, and fines ranging from $2,000 to $5,000. Adolfo Moreno, Edward Moreno, Jr., and Lidia Saldana are also Frances Sandoval’s children.
One defendant, Marsha Garcia, 53, pleaded guilty to one count of conspiracy to defraud the U.S. She was observed creating a counterfeit birth certificate that she knew was going to be submitted in one of the fraudulent I-817 (Application for Family Unity Benefits) filings. She was sentenced to two years of probation, to include 120 days of home confinement, and ordered to pay a $1,000 fine.
A federal jury convicted one defendant, Bartola Contreras, 55, who is Frances Sandoval’s husband, in March 2015 on one count of conspiracy to commit marriage fraud. He was sentenced to six months in federal prison and ordered to pay a $2,000 fine.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from U.S. Citizenship and Immigration Services (USCIS) Office of Fraud Detection and National Security, investigated the case. Special Assistant U.S. Attorney Michelle D. Allen-McCoy prosecuted.
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Eight Defendants Sentenced in $24 Million Stolen Identity Tax Refund Fraud RingRead the Press Release
9,000 Identities Stolen from the U.S. Army, Alabama State Agencies, a Georgia Call Center and a Georgia Company
Eight residents of Alabama and Georgia were sentenced today to serve more than 31 years in prison, collectively, for their roles in a $24 million stolen identity refund fraud (SIRF) conspiracy, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
U.S. District Court Judge Kristi K. DuBose of the Southern District of Alabama imposed the following sentences:
- Tracy Mitchell, of Phenix City, Alabama, was sentenced to serve 159 months in prison, three years of supervised release and ordered to pay a forfeiture judgment in the amount of $329,242, which was seized in cash from her residence;
- Talarius Paige, of Phenix City, was sentenced to serve 60 months in prison, three years of supervised release and ordered to pay $762,512 in restitution to the Internal Revenue Service (IRS);
- Mequetta Snell-Quick, of Columbus, Georgia, was sentenced to serve 24 months and one day in prison, two years of supervised release and ordered to pay $199,471 in restitution to the IRS ;
- Latasha Mitchell, of Phenix City, was sentenced to serve 36 months in prison, two years of supervised release and ordered to pay $513,821 in restitution to the IRS ;
- Dameisha Mitchell, of Phenix City, was sentenced to serve 65 months in prison, three years of supervised release and ordered to pay $440,176 in restitution to the IRS;
- Sharonda Johnson, of Phenix City, was sentenced to serve 24 months in prison, two years of supervised release and ordered to pay $440,176 in restitution to the IRS;
- Patrice Taylor, of Midland, Georgia, was sentenced to serve 12 months and one day in prison, two years of supervised release and ordered to pay $28,783 in restitution to the IRS; and
- Cynthia Johnson, of Phenix City, was sentenced to two years of probation and ordered to pay $5,047 in restitution to the IRS.
The sentencing of Keisha Lanier, of Seale, Alabama, is scheduled on Aug. 24. Tamaica Hoskins, a co-defendant who was charged in the same indictment, was sentenced on June 25 to serve 145 months in prison. Tamika Floyd, a defendant in a related case, was sentenced on May 19 to serve 87 months in prison.
“These conspirators abused their access to government and private databases to steal thousands of identities, including those of soldiers deployed in Afghanistan, and filed false tax returns seeking over $20 million in fraudulent refund claims,” said Acting Assistant Attorney General Ciraolo. “The significant prison sentences and financial penalties imposed today reflect the seriousness of this criminal conduct and send a clear message that those who victimize U.S. citizens and steal from the U.S. Treasury will be prosecuted to the fullest extent of the law.”
According to information in court documents and at the sentencing hearings, between January 2011 and December 2013, Lanier and Tracy Mitchell led a large-scale identity theft ring in which Lanier, Tracy Mitchell and their co-defendants filed more than 9,000 false individual federal income tax returns that claimed more than $24 million in fraudulent claims for tax refunds. The IRS paid out close to $10 million in refunds on these fraudulent claims. The defendants obtained the stolen identities from various sources, including from the U.S. Army, several Alabama state agencies, a Georgia call center and employee records from a Georgia company. Mitchell worked at the hospital located at Fort Benning, Georgia, where she had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan. She stole the personal information of soldiers and used that information to file false tax returns.
“Today’s sentencing of eight criminals, who used the identities of American service members and hospital patients to enrich themselves by stealing tax refunds, demonstrates the depths of how far criminals will stoop and the extent to which IRS-CI will go to fight identity theft,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “We will use every available resource in collaboration with our law enforcement partners to combat these serious crimes.”
“Today's sentences show our unwavering commitment to aggressively pursue cases of cybercrime and protect the men and women serving our nation,” said Director Daniel Andrews of the U.S. Army Criminal Investigation Command's (CID) Computer Crime Investigative Unit. “These defendants stole personal identities for monetary gain, and their sentences should resonate with would-be criminals that we can, and we will, hold them accountable for their crimes.”Floyd stole personal information from two Alabama state agencies and provided those names to Lanier. Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Paige and others to file false tax returns. Lanier also obtained stolen identities from the Alabama Department of Corrections. Paige and Taylor worked in a call center for a payment-processing company in Columbus and stole identities. Paige, in turn, used those identities to file false tax returns, some of which he filed from Tracy Mitchell’s residence. Tracy and Latasha Mitchell also obtained employee files from a Columbus company and used those identities to file false tax returns.
In order to file the false tax returns, the defendants obtained several IRS Electronic Filing Numbers in the names of sham tax businesses. On behalf of those sham tax businesses, the defendants applied for bank products from various financial institutions. Under the guise of a legitimate business account, the institutions mailed blank check stock to the defendants’ homes. The defendants directed the IRS to pay anticipated tax refunds to prepaid debit cards, in U.S. Treasury checks and to financial institutions, which in turn issued the tax refunds via prepaid debit cards or checks. When the refunds were sent through the financial institutions, the defendants simply printed out the refund checks from the check stock that had been sent to their homes.
After a period of time, the financial institutions stopped permitting the defendants to print out the tax refund checks. To continue the scheme, Tracy Mitchell and members of her family recruited U.S. Postal Service employees. The corrupt postal employees specified addresses along their postal routes to have the U.S. Treasury checks mailed, then obtained those checks and turned them over to the defendants for a fee.
The scheme also involved a complex money laundering operation. Almost $10 million in fraudulent tax refund checks were cashed at several businesses located in Alabama, Georgia and Kentucky. To coordinate this massive check cashing scheme, the defendants communicated using text messages and maintained detailed records. For instance, Sharondra Johnson worked at the Walmart money center in Columbus, where she cashed checks for customers as part of her job. Dameisha Mitchell recruited Sharondra Johnson to cash tax refund checks that were fraudulently issued in the names of other individuals. Sharondra Johnson agreed to cash the checks and communicated with Dameisha and Tracy Mitchell via text messages. In an attempt to conceal the crime from Walmart, the defendants had multiple individuals deliver the tax refund checks to Johnson for her to cash them.
At sentencing, the government offered victim impact statements from several individuals whose identities were stolen, and from companies and governmental agencies where the identity theft breaches occurred. As one agency representative noted, the identity theft was not only devastating financially, but it also had a chilling effect on their ability to serve the residents of this state. A mother of a young U.S. Army soldier who was an identity theft victim described the consequences of the fraud on her and her family, stating:
While [my son] was fighting for our country and all back home[,] I received a very disturbing phone call from [an] Agent [] from the IRS that my son[,] while at Ft. Benning training to defend our country[,] the land of the free[,] had his identity stolen and fraudulent tax returns were filed with his social security number. This news was devastating to think that my [] 19-year-old son[,] who was defending the very freedom this country stands [for] [,] was wronged by one of those people [he] was willing to die for. My whole family could not believe what was happening. We now had to worry about this terrible act by one of our own. As I tried my best to keep composed and handle all of the gruesome mounds of paperwork to get this straightened out with the IRS, [my son] was then denied his tax refund. This created a financial hardship on [him]. We were too afraid to tell [him] while he was deployed because we did not want to worry him and we wanted him to focus only on getting home alive and not have to worry about such an atrocious act by someone who did not even know [him].
“No sentence is too strong for those who prey on our fighting men and women,” said U.S. Attorney Beck Jr. “War is hell on the home front, too, and the family left behind holding things together must be strongly protected.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of the IRS-Criminal Investigation and the U.S. Army-CID, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorneys Todd A. Brown, Jonathan S. Ross and Kevin P. Davidson of the Middle District of Alabama, who prosecuted the case. Ciraolo and Beck Jr. also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Dorchester Man Pleads Guilty to Conspiring to Transport an Individual for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE - Enoc Ayuso, 26, of Dorchester, Massachusetts, appeared in United States District Court on Thursday and pled guilty to conspiring to transport an individual in interstate commerce for prostitution, announced Acting U.S. Attorney Donald Feith.
In February of 2014, the Homeland Security Investigations, Manchester, New Hampshire and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a minor female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution, including Ayuso.
Ayuso is scheduled to be sentenced in November of 2015.
“Ever since the passage of the Mann Act in 1948, the federal government has been investigating and prosecuting those who would transport individuals for the purpose of sexual activity. The transportation of minors for purposes of commercial sex activity is particularly egregious and is a primary enforcement priority for federal law enforcement,” stated Acting United States Attorney Donald Feith. “This office will work with local, state and federal law enforcement to secure convictions of and punishment for those who prey on children and use them for their financial advantage.”
The case was investigated by the Homeland Security Investigations, Manchester, New Hampshire and the Salem, New Hampshire Police Department, in conjunction with the police departments of Boston, Massachusetts and Manchester, New Hampshire, as well as the New Hampshire Internet Crimes Against Children Task Force (NH ICAC). This case is being prosecuted by Assistant United States Attorneys Nick Abramson and Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Council Bluffs, Iowa Resident Sentenced to 75 Months Possession of a Firearm by a Prohibited PersonRead the Press Release
Council Bluffs, IA - On August 6, 2015, Timothy Andrew Frieze, a 50 year old resident of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge Robert Pratt to seventy-five months in prison for possessing a firearm after a felony conviction. Senior Judge Pratt also ordered Frieze to serve a term of three years of supervised release when he completes his imprisonment. On August 14, 2014, Frieze pled guilty to Possession of a Firearm by a convicted felon. The charge was the result of an investigation being done by the Southwest Iowa Narcotics Task Force into drug trafficking in Council Bluffs, Iowa. On October 11, 2013, Frieze was seen leaving a residence that was under law enforcement surveillance for suspicion of narcotics trafficking. Frieze was stopped by law enforcement and found to be carrying a Raven .25 caliber handgun. Frieze was prohibited from possession of the firearm based on several prior convictions for felony offenses.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, the Council Bluffs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Corinna Man Sentenced to 6 Months for Being an Accessory to Township 37 Marijuana GrowRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Berg, 52, of Corinna, Maine, was sentenced in U.S. District Court by Judge John A. Woodcock, Jr. to 6 months in prison and one year of supervised release for being an accessory after the fact to the manufacture of 1,000 or more marijuana plants. An accessory after the fact is a person who, knowing that an offense against the United States has been committed, comforts or assists the offender in order to hinder or prevent his apprehension, trial or punishment. He was also ordered to pay a $10,000 fine. Berg pleaded guilty to the charge on January 7, 2014.
According to court records, following the September 22, 2009 discovery by law enforcement officers of a large, sophisticated marijuana growing operation in Township 37 in Washington County, Berg provided assistance to those who committed the crime. Specifically, Berg was aware that Malcolm French, Rodney Russell and Kendall Chase and a number of migrant workers were growing marijuana in Township 37. When it was discovered, several offenders including migrant workers, fled into and hid in the woods of Township 37. Shortly thereafter, at French’s request, Berg drove to Township 37 with another individual, located the migrant workers, took them to his Corinna residence and hid them in his barn. He also gave them food and clothing. A day or two later, another individual picked up the migrant workers at Berg’s barn and drove them out of state.
The case was investigated by the Maine Drug Enforcement Agency, U.S. Department of Homeland Security, Office of Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation, with assistance from the U.S. Drug Enforcement Administration.
Chelsea Woman Sentenced to 21 Months for Being an Accessory to a Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Nicole A. Breton, 21, of Chelsea, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 21 months in prison and three years of supervised release for being an accessory after the fact to a pharmacy robbery. An accessory after the fact is a person who, knowing that an offense against the United States has been committed, comforts or assists the offender in order to hinder or prevent his apprehension, trial or punishment. Breton pleaded guilty to the charge on February 9, 2015.
Court records show that on the evening of September 2, 2014, Dominic J. Pomerleau robbed the Rite Aid Pharmacy located on Hospital Street in Augusta, Maine. He approached the pharmacy counter with a note that demanded oxycodone and absconded with three bottles of oxycodone. Breton was waiting for Pomerleau in a getaway car. She emptied the pills from the bottles and threw the empty bottles and caps out the car window. Pomerleau, Breton, and the driver of the car fled to Breton’s residence and spent the night there. They consumed many of the pills that were taken from the robbery. The robbery was captured on surveillance video and witnesses provided descriptions of Pomerleau and his distinctive arm and neck tattoos. Pomerleau pleaded guilty to pharmacy robbery and attempted pharmacy robbery charges on January 23, 2015 and awaits sentencing.
In imposing sentence, Judge Woodcock said: “If you commit a serious crime and you end up in federal court you will get a serious sentence.”
The investigation was conducted by the Augusta Police Department and the Federal Bureau of Investigation.
Broward County Tax Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
A Broward County tax preparer was sentenced to 33 months in prison, followed by one year of supervised release, and was ordered to pay restitution in the amount of $58,626.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Hugo Jean Joseph, 60, of Coral Springs, was previously convicted at trial of eleven counts of preparing false tax returns for his clients.
As shown at trial and in court documents, Jean Joseph and co-defendant Guencia Piard a/k/a Guencia Toussaint operated Lakay Multi Services (LMS), a tax return service with locations in Pompano Beach, Naples and Fort Myers, Florida. Jean Joseph and Piard prepared and filed fraudulent tax returns on behalf of their customers during the 2006 to 2008 tax years by using false Schedule A deductions (such as those for medical and unreimbursed employee business expenses), false Schedule C expenses, false education expenses, and false credits for federal fuel tax without their clients’ knowledge or consent. By inflating their clients' deductions, expenses, education credits, and fuel tax credits, Jean Joseph and Piard attained higher tax refunds for their clients which attracted a greater volume of clients. Jean Joseph and Piard kept a portion of the fraudulently inflated tax refunds as payment for their services.
Jean Joseph and Piard prepared at least 76 false tax returns for twenty-one sets of clients for tax years 2006, 2007, and 2008. Sometimes, Jean Joseph and Piard provided clients with copies of their respective tax returns which were different from the tax returns filed with the IRS. At least 21 of the 76 tax returns filed with the IRS reported a higher tax refund than the copy of the tax return provided to the client.
The total tax loss to the IRS was $283,834.
Co-defendant Piard was sentenced on August 7, 2014 to 24 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $283,834. Piard pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Couple Sentenced in Manhattan Federal Court for Massive Internet Identity Theft and Credit Card Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RANA KHANDAKAR, and USAWAN SAELIM were sentenced today to 56 and 36 months in prison, respectively, for engaging in a massive internet credit card fraud and identity theft scheme. KHANDAKAR and SAELIM were convicted in July 2014 following a three-week jury trial before U.S. District Judge John G. Koeltl, who imposed their sentences.
Manhattan U.S. Attorney Preet Bharara said: “Khandakar and Saelim used the internet to engage in a smorgasbord of frauds, ranging from the unauthorized sale of EZPass tags to Medicaid fraud. For their years of cyber scamming, the defendants now face years in federal prison.”
According to the Superseding Indictment, evidence admitted at trial, and submissions made in connection with sentencing:
From 2008 through 2012, KHANDAKAR and SAELIM engaged in a large-scale and sophisticated cyber fraud involving millions of dollars in completed and attempted fraudulent charges on hundreds of stolen credit cards and debit cards. The defendants’ fraud consisted principally of two types of schemes from which they netted over $1 million worth of goods, services, and cash. In one type of scheme, the defendants used stolen credit and debit card numbers to buy goods, such as EZ Pass tags, baby care items, gift cards, movie tickets and computers, and then resold those items online. The second scheme involved the use of stolen identities to set up merchant processing accounts, which were then used to incur charges on stolen credit cards for the benefit of the defendants. In addition, KHANDAKAR and SAELIM used stolen personal identifying information of their victims to establish fake businesses, open bank accounts, acquire and manufacture credit and debit cards, and create counterfeit checks, among other things.
One way in which the defendants obtained the personal identifying information of their victims was by posting fake job listings online, in which they required applicants to submit their Social Security number and other personal identifying information. The defendants also used stolen credit and debit account information to obtain goods and services for their personal use, such as food delivery, pet insurance, entertainment, and cash. Throughout the course of their fraud scheme, while amassing hundreds of thousands of dollars in ill-gotten gains, the defendants were also defrauding the Medicaid program, by collecting thousands of dollars in health insurance benefits intended for low-income individuals to which they were not entitled.
The Fraudulent Purchase and Re-Sale of EZ Pass Tags and other Items
KHANDAKAR and SAELIM used at least 50 stolen American Express credit cards to purchase EZ Pass tags and credits. They then resold the tags and credits through two websites they founded – www.drezpass.com and www.ezpasstag.com. Neither of these websites was an authorized EZ Pass retailer. The defendants also purchased baby care items using stolen credit card information and re-sold those items on another website they founded – www.udiapers.com. In addition, the defendants purchased tens of thousands of dollars of gift cards, computers, and movie tickets, and resold those items on websites such as eBay and Craigslist. Because they had obtained the merchandise for free using stolen credit cards, their profit margin in reselling the merchandise was 100% of the sale price.
The Fraudulent Merchant Accounts
In order to process credit and debit card transactions, a business must establish an account with a credit and debit card processor, known as a “merchant account.” Each merchant account is linked to a bank account associated with the business.
As part of their scheme, KHANDAKAR and SAELIM established fraudulent online merchant accounts linked to phony businesses, such as “Tips,” “La Pala Pa,” and “Cafe 007,” which they used to process bogus credit and debit card charges. The defendant used stolen personal identifying information to set up the merchant accounts, and then made unauthorized charges to those merchant accounts using stolen credit and debit card numbers.
Through these fraudulent merchant accounts, KHANDAKAR and SAELIM attempted to make millions of dollars’ worth of charges on at least 385 stolen American Express credit card accounts, and on more than 1,000 credit or debit card accounts at Citibank, JP Morgan Chase, Bank of America, and Discover, among others. In some cases, the same credit cards that incurred charges in connection with the fraudulent EZ Pass purchases were also charged in connection with the fraudulent merchant accounts.
KHANDAKAR and SAELIM were convicted of one count of conspiracy to commit mail and bank fraud; one count of access device fraud; one count of aggravated identity theft; and one count of theft from the government. In addition, Khandakar was convicted of one count of mail fraud and SAELIM was convicted of one count of bank fraud.
* * *
In addition to their prison sentences, KHANDAKAR and SAELIM were sentenced to three years of supervised release, and were each ordered to pay $263,000 in restitution and $950,000 in forfeiture.
Mr. Bharara praised the work of the Secret Service, the MTA-OIG, the Port Authority OIG, and U.S. Department Health and Human Services OIG. He also thanked the New York State Police, the New York State Department of Vehicles Field Investigative Unit, and the Social Security Administration for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Bremerton, Washington Man Pleads Guilty to Anti-Gay Hate Crime for Assault in Seattle’s Capitol Hill NeighborhoodRead the Press Release
A 38-year-old Bremerton, Washington man pleaded guilty today to a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced U.S. Attorney Annette L. Hayes and Principal Deputy Assistant Attorney General Vanita Gupta, head of DOJ’s Civil Rights Division. TROY DEACON BURNS, will be sentenced by U.S. District Judge James L. Robart on November 10, 2015. Under the terms of the plea agreement, prosecutors will recommend a prison sentence at the low end of the guidelines range as calculated by the court. However, Judge Robart is not bound by any recommendation by the parties and can impose any sentence up to the statutory maximum ten year term.
According to the plea agreement, just after midnight on January 25, 2015 three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when BURNS came up behind them and shouted homophobic slurs. BURNS was holding a knife, which he raised up over his head in a stabbing position. Fearing for their safety the men started running. As BURNS caught up to one of the men he again used a slur as he threatened to stab him. One of the other men was able to pull his friend away from BURNS. The third man located Seattle Police Officers who took BURNS into custody. While detained in the patrol car, BURNS continued to yell homophobic slurs. BURNS was under the influence of drugs and alcohol at the time of the assault and says that he does not remember his actions.
The case was investigated by the Seattle Police Department and is being prosecuted by Assistant United States Attorney Bruce Miyake and Saeed Mody, Trial Attorney, Civil Rights Division, United States Department of Justice. The King County Prosecuting Attorney’s Office is providing significant assistance with the case.
Bremerton, Washington Man Pleads Guilty to Anti-Gay Hate Crime at Seattle’s Capitol HillRead the Press Release
A 38-year-old Bremerton, Washington man pleaded guilty today to a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced U.S. Attorney Annette L. Hayes, Western District of Washington and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division. Troy Deacon Burns, will be sentenced by U.S. District Judge James L. Robart on November 10, 2015.
According to the plea agreement, just after midnight on January 25, 2015 three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when Burns came up behind them and shouted homophobic slurs. Burns was holding a knife, which he raised up over his head in a stabbing position. Fearing for their safety the men started running. As Burns caught up to one of the men he again used a slur as he attempted to stab him. One of the other men was able to pull his friend away from Burns. The third man located Seattle Police Officers who took Burns into custody. While detained in the patrol car, Burns continued to yell homophobic slurs. Burns was under the influence of drugs and alcohol at the time of the assault and says that he does not remember his actions.
The case was investigated by the Seattle Police Department and is being prosecuted by Assistant United States Attorney Bruce Miyake and Saeed Mody, Trial Attorney, Civil Rights Division, United States Department of Justice. The King County Prosecuting Attorney’s Office is providing significant assistance with the case.
Boynton Beach Resident Pleads Guilty to Participating in an Identity Theft Tax Refund Fraud SchemeRead the Press Release
A Boynton Beach resident pled guilty to possessing heroin and participating in an identity theft tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), and Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office (PBSO), made the announcement.
Christopher Richard Edwards, 25, of Boynton Beach, pled guilty today to possession with intent to distribute heroin, in violation of Title 21, United States Code, Section 841(a)(1), access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and making a material false statement by filing a false tax return with the Internal Revenue Service, in violation of 18, United States Code, Section 287. At sentencing, the defendant faces a maximum of twenty years of imprisonment for the possession with intent to distribute heroin charge, a maximum of ten years for the access device charge, a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge, and a maximum of five years imprisonment for making a false statement by filing a false tax return with the IRS.
According to the superseding information and additional court documents, a search warrant was executed at Edwards’ apartment after the defendant’s probation officer conducted a welfare check and discovered narcotics and indicia of identity theft in plain view. During the search warrant, law enforcement found approximately 159 unauthorized access devices (debit cards) in other peoples’ names, three laptop computers, an encoder/decoder, a credit card embosser, a currency counter machine, several ledgers containing personal identification information (PII), 66 capsules containing heroin, a digital scale, and a plate containing heroin residue.
A forensic examination of the access device cards revealed that they contained unauthorized unemployment benefits. An examination of Edwards’ computer revealed fraudulent filings for unemployment benefits, consistent with the unemployment benefit cards found in his apartment. The unemployment claims filed from Edwards’ computer in 2014 totaled $287,360. The investigation further revealed that Edwards filed 41 tax returns containing false information, including the names of other individuals who did not authorize Edwards to use file with their PII. Edwards claimed a total of $299,240 in false tax refunds.
The total amount of loss attributable to Edwards’ fraudulent scheme is $586,600 and the number of victims exceeds 250.
Edwards is scheduled to be sentenced on November 13, 2015 at 10:30 a.m. before United States District Judge Kenneth A. Marra.
Mr. Ferrer commended the investigative efforts of the IRS-CI, USSS, DOL-OIG, and PBSO. This case is being prosecuted by Assistant U.S. Attorney Lauren E. Jorgensen.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Arizona Man Pleads Guilty to Drug and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Jordan Ali, 35, of Arizona, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, as well as a separate charge of money laundering conspiracy, before U.S. Magistrate Judge Leslie Foschio. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a fine of $10,000,000.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2004 and February 1, 2012, the defendant conspired with others to distribute large quantities of cocaine and marijuana in the Buffalo area. In April 2009, Ali and co-defendant Shane Grafman began assisting one another in their drug distribution businesses. The defendants obtained the narcotics in the State of Arizona, and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
As part of his plea, the defendant admitted that he distributed between five and 10 kilograms of cocaine and more than 100 kilograms of marijuana during the course of his crimes.
"As law enforcement has now demonstrated for the second time this week, this Office will continue to target those who poison our community with large quantities of illegal narcotics," said U.S. Attorney Hochul.
A total of six defendants have been arrested in this case, four have been convicted. Grafman was convicted and is awaiting sentencing.
The plea is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Shantelle P. Kitchen; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; Federal Bureau of Investigation; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and Oklahoma State Police.
Sentencing will be scheduled at a later date.
A Previously Removed Czech Citizen was Sentenced to 27 Months in Prison for Attempting to Re-Enter the U.S.Read the Press Release
Ivan Vaclavik, 68, of the Czech Republic was sentenced today to 27 months in prison, to be followed by two years of supervised release, for attempting to enter the United States illegally as an alien who was previously deported, in violation of Title 8, United States Code, Sections 1326(a) and (b)(1).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
According to court documents, Vaclavik was born in Czechoslovakia, holds a passport from the Czech Republic and is prohibited from entering the United States. Despite the prohibition, on January 13, 2015, Vaclavik boarded an 18-foot vessel in Freeport, Bahamas, bound for the United States. During the trip, the vessel lost power and began to take on water due to the turbulent waters. The boat captain, Henry Noel, radioed for assistance and the United States Coast Guard responded with air and marine assets in order to assist the sinking vessel. Vaclavik and other vessel occupants were rescued approximately 8 nautical miles off the coast of Palm Beach County, Florida.
Vaclavik was previously removed from the United States, twice, on October 8, 2013 and again on December 8, 2014, following a series of criminal convictions. Vaclavik did not apply for nor receive permission to re-enter the United States from the Secretary of Homeland Security or the Attorney General.
Noel previously pled guilty to alien smuggling, in Case No. 15-CR-80024, and was sentenced to 36 months in prison.
Mr. Ferrer commended the investigative efforts of ICE-HIS, United States Customs and Border Protection and United States Border Patrol. This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Jennifer Keene.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
6 August 2015
Woman Sentenced in Federal Court on Meth ChargesRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Heidi Elizabeth Hancock, 42, of Mobile, was sentenced today in federal court for her participation in conspiracy to manufacture methamphetamine and conspiracy to possess a List I chemical with knowledge it would be used to manufacture a controlled substance. Hancock pled guilty to the offenses on October 30, 2014. Court documents reflect that Mobile County sheriff’s deputies were looking for a co-conspirator, Justin Ryan Boles, to arrest him on active warrants. Pursuing a lead in the investigation, they knocked on the door of an apartment off Old Shell Road and Boles and other conspirators fled through another door. Other individuals were arrested and active methamphetamine labs were seized at that location. Hancock was one of the individuals involved in providing pseudoephedrine, a List I chemical used as a precursor during the methamphetamine manufacturing process. Boles was sentenced earlier this month to 168 months imprisonment for his role in the cases.
This morning, United States District Court Judge William H. Steele imposed a sentence of 84 months on each count, to be served concurrently. The judge also ordered that Hancock serve a period of supervised release of three years following her release from prison. Hancock was directed to undergo drug testing and treatment as a special condition of her supervised release. She was ordered to pay a special mandatory assessment of $200, but no fine was imposed.
Agencies participating in the investigation of the case were the Mobile County Sheriff’s Office and the Saraland Police Department. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
VA Contract Specialist Admits Using Government Credit Card to Make $28K in Unauthorized PurchasesRead the Press Release
PITTSBURGH - A McCandless resident pleaded guilty in federal court to a charge of theft of government property, United States Attorney David J. Hickton announced today.
Brian R. Kaminski, age 31, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Kaminski was a Contract Specialist employed by the Department of Veteran’s Affairs who was given a Government Purchase Card (a credit card) for use in his duties for those occasions when he needed to make incidental purchases. During the period September through November 2012, Kaminski made a series of 29 unauthorized purchases (in person and online) at four different merchants totaling just over $28,000. Kaminski then took steps to hide what he had done relative to the internal accounting procedures of the VA.
Judge Bissoon scheduled sentencing for Nov. 19, 2015 at 2:15 p.m. The law provides for a total sentence of ten 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.
The Department of Veteran Affairs, through the Veterans Affairs Police and the Office of Inspector General conducted the investigation that led to the prosecution of Kaminski.
Utah woman admits fraudulent sale of medical deviceRead the Press Release
For Further Information, Contact:
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
SAN DIEGO – Salt Lake City resident Beth Campbell pleaded guilty in federal court today, admitting that she fraudulently sold a prescription medical device to an undercover agent who she knew did not have a prescription.
In pleading guilty, Beth Campbell admitted that she sold medical devices from her home in Utah over the Internet, and in December of 2014, she offered to sell an undercover agent a medical device without a prescription, to treat a condition for which the device was not approved for use. Campbell acknowledged that she sold the device for $3,495, knowing that a prescription was required and that the agent had no prescription.
Campbell stated that she told the undercover agent that the device required a prescription, which could be easily obtained from a chiropractor, or one could enroll as a distributor with her and then buy the device without a prescription. Campbell advised the agent that it was not necessary to sell the machines to be a distributor, but only to enroll as one to purchase the machine. Campbell admitted that when the agent expressed discomfort over the distributorship agreement, she offered to personally order a machine herself and then ship it to the agent, without a prescription or distributorship agreement.
Campbell admitted that she acted with the intent to defraud by attempting to make it appear that this transaction was a legitimate sale of a prescription medical device by ordering it herself, and falsely representing that it was a display model for a distributor.
The device, the Wellness Pro, is a prescription medical device approved by the FDA for use to treat pain, and not to treat cancer, as she claimed. The Wellness Plus device sold in this transaction was misbranded because it lacked adequate directions for use in that it was a prescription device sold to a layperson who was not under the supervision of a licensed practitioner.
Campbell is scheduled to be sentenced on November 2, 2005, at 9:00 a.m. before the Honorable Roger T. Benitez.
DEFENDANT Criminal Case No. 15cr0360-BEN
Beth Campbell Age: 54 Salt Lake City, Utah
SUMMARY OF CHARGE
Misbranding– Title 21, U.S.C., Sections 331(a) and 333(a)(2)
Maximum penalty: Three years in prison and $250,000 fineAGENCIES
Food and Drug Administration, Office of Criminal Investigations
Homeland Security Investigations
Postal Inspection ServiceUnion County, New Jersey, Man Admits Robbing Multiple New Jersey Banks at GunpointRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man today admitted robbing seven New Jersey banks at gunpoint and attempting to rob an eighth bank at the time of his arrest on July 30, 2012, U.S. Attorney Paul J. Fishman announced.
Claude Williams, 63, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count One, Count Fourteen and Count Fifteen of an indictment charging him with conspiracy to commit bank robbery, bank robbery and using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
Williams admitted that, between Sept. 26, 2011 and July 30, 2012, he robbed seven banks and attempted to rob an eighth bank, all at gunpoint. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweatshirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.
Williams admitted robbing, or attempting to rob, the following New Jersey banks:
Date
Bank
Location
Sept. 26, 2011
Financial Resources Federal Credit Union
Somerset
Nov. 21, 2011
Somerset Savings Bank
Somerville
Feb. 27, 2012
Provident Bank
Piscataway
April 17, 2012
Provident Bank
Clifton
May 22, 2012
Provident Bank
Piscataway
June 20, 2012
Fulton Bank
Metuchen
July 12, 2012
Unity Bank
Middlesex
July 30, 2012
Unity Bank
North Plainfield
Prior to the July 12, 2012 robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car and crouch down to hide. After noting the license plate number, the officer followed the car. During today’s hearing, Williams admitted that he exited the getaway car, walked toward the officer’s car and pointed his firearm at the officer, forcing the officer to leave the scene.On July 30, 2012, Williams was arrested after law enforcement observed him driving in the vicinity of the Unity Bank in North Plainfield on July 27, 2012 and July 28, 2012. He admitted today that he planned to rob the bank at gunpoint.
The conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The armed bank robbery charge carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. Sentencing is scheduled for Nov. 16, 2015.
Andrea Dorsey, 56, of Plainfield New Jersey, who admitted that she served as a lookout and getaway driver for three of the robberies, was sentenced to 87 months in prison on March 13, 2014. Teresa Webb, 45, of Plainfield, who admitted that she was the getaway driver for one of the robberies, was sentenced to 54 months in prison on May 30, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s plea. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their roles.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Courtney M. Oliva of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., Irvington
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