Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
6 August 2015
Two Twin Cities' Restauranteurs Sentenced for Hiring Undocumented WorkersRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MING GUO, 46, owner of two Twin Cities restaurants, both named Hibachi Grill and Supreme Buffet, and BIJIAN WENG, a/k/a “Wilson,” 28, manager of the restaurants, to federal prison sentences for employing unlawful aliens. GUO and WENG were charged on January 26, 2015, with one count each of Knowingly Hiring Ten or More Unlawful Aliens. GUO and WENG pleaded guilty on March 20, 2015, and were sentenced yesterday by U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
“Hiring illegal aliens is not a victimless crime. It gives an unfair advantage to a business, forces competitors out of business, and results in lost tax revenue for the community,” said Acting Special Agent in Charge, William Lowder of HSI St. Paul. “Harboring illegal aliens is a very real crime with very real victims. HSI will remain vigilant in protecting American businesses and keeping the playing field level. ”
“These defendants created a successful restaurant business on the backs of undocumented workers,” said Assistant U.S. Attorney Julie E. Allyn. “They forced the victims to work 12-hour shifts, six days per week, by housing them and isolating them without the means and access to build a life. Guo and Weng did not simply hire illegal aliens – they took sustained steps to harbor and transport these workers in violation of U.S. law.”
According to the defendants’ guilty pleas and documents filed in court, from September 30, 2013 through September 30, 2014, GUO and WENG knowingly hired and employed at least 17 individuals who were not authorized to be employed or lawfully admitted for permanent residence in the United States. On September 30, 2014, HSI agents executed search warrants at the restaurants in Spring Lake Park and West St. Paul, Minnesota. They identified 17 undocumented workers working in the restaurants.
According to the defendants’ guilty pleas and documents filed in court, GUO and WENG were aware that the employees were not authorized to work in the United States. Moreover, the defendants did not ask the employees to fill out paperwork, including I-9 Employment Eligibility Verification forms. GUO and WENG also failed to report the unauthorized workers to the Minnesota Department of Economic Development. The employees were paid in cash “off the books.”
According to the defendants’ guilty pleas and documents filed in court, in addition to hiring illegal aliens, GUO and WENG took additional sustained steps to harbor and transport the victims. The defendants housed the victims and transported them to and from work each day. With no cars and limited family (if any) nearby, these employees were left with no choice but working at the restaurants. This allowed the defendants to profit by exploiting and using the employees to work endless hours six days each week.
This case is the result of an investigation conducted by Homeland Security Investigations.
Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino are prosecuting this case.
Defendant Information:
BIJIAN WENG, a/k/a “Wilson,” 28
Spring Lake Park, Minn.
Convicted:
- Knowingly Hiring Ten or More Unlawful Aliens, 1 count
Sentenced:
- Six months in prison
- Six months location monitoring
- Two years supervised release
- 100 hours of community service
- $304,827.75 money judgment and criminal fine
MING GUO, 46
North Miami Beach, Fla.
Convicted:
- Knowingly Hiring Ten or More Unlawful Aliens, 1 count
Sentenced:
- Five months in prison
- Seven months location monitoring
- Two years supervised release
- 50 hours of community service
- $304,827.75 money judgment and criminal fine
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two Men Indicted for Growing Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Macedonio Madrigal-Herrera (Madrigal), 44, and Ezequiel Armas-Ortiz (Armas), 49, both of Mexico, charging them with conspiring to cultivate, distribute and possess with intent to distribute marijuana; cultivating and possessing with intent to distribute marijuana; and damaging public land and natural resources as a result of the large-scale marijuana cultivation operation, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 30, 2015, Madrigal and Armas were found at the cultivation site in the Brush Creek drainage in the Sequoia National Forest in Tulare County during the execution of a federal search warrant. Agents removed 2,719 marijuana plants from the site and found toxic chemicals, fertilizer, and trash strewn throughout. The cultivation activities caused extensive damage to the land and natural resources. Trees and plants, newly generated following the 2002 McNally Fire, were cut down to make room for the marijuana. Water was diverted from a nearby stream that supports trout.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California National Guard, California Department of Fish and Wildlife, and Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Armas and Madrigal were previously ordered detained as a flight risk and danger to the community and are scheduled for arraignment on the indictment on August 12, 2015, in federal court in Fresno. If convicted of the drug offenses, they face a maximum statutory penalty of 20 years in prison and a $1 million fine as to each count. If convicted of the environmental crime, the defendants face a maximum statutory penalty of 10 years in prison, a $250,000 fine, and restitution. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tree Thieves and Mill Owner Indicted for Theft of Big Leaf Maples from National ForestRead the Press Release
Three southwest Washington timber cutters and a Winlock, Washington wood buyer and his lumber mill have been indicted on theft and environmental crimes for cutting Big Leaf Maple trees on national forest land, announced U.S. Attorney Annette L. Hayes. Wood buyer HAROLD CLAUSE KUPERS, 48, and his company J & L TONEWOODS are charged with receipt of stolen property and seven violations of the Lacey Act, which prohibits trafficking in “illegal” wildlife, fish, and plants. The three tree cutters are charged with theft of government property and damaging government property for illegally harvesting the maple trees in the Gifford Pinchot National Forest in November and December 2011 and May 2012. RYAN JUSTICE, 28, of Randle, Washington, JAMES MILLER, 36, of Morton, Washington are in custody pending detention hearings. KEVIN MULLINS, 56, of Packwood, Washington has not yet made his initial appearance on the indictment.
“The trees in our national forests belong to all Americans and should not be chopped up to enrich a few,” said U.S. Attorney Annette L. Hayes. “In this case a beautiful and valued resource that is home to endangered species, was felled with some parts just discarded on the forest floor. We are prosecuting not only the tree cutters, but also the mill owner who created a market for the sale of this stolen property.”
According to the indictment, in November and December 2011, the three tree cutters received training and assistance from KUPERS in illegal harvesting of Big Leaf Maples from various sites in the Gifford Pinchot National Forest. The men would seek out “figured maple” which is particularly valuable for musical instruments. Between October 2011 and March of 2012 the tree cutters made approximately fifty sales of illegally-harvested maple wood to KUPERS and J & L TONEWOODS. The wood cutters would bring pieces of the trees to J & L TONEWOODS, where it was cut into salable blocks called “billets.” The indictment alleges KUPERS and J & L TONEWOODS purchased the maple knowing it was stolen and then sold it to out of state companies for more than $800,000.
Violations of the Lacey Act are punishable by up to five years in prison and a $250,000 fine. The other charges in the indictment are punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Forest Service. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Three Swiss Banks Reach Resolutions under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Privatbank Reichmuth & Co., Banque Cantonale du Jura SA and Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA have reached resolutions under the department’s Swiss Bank Program.
“The department is acquiring detailed information regarding the many ways in which U.S. taxpayers attempt to hide foreign assets, including through the use of sham trusts and insurance policies wrapped around foreign bank accounts to shroud the identity of U.S. beneficial owners,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “The department is dismantling these structures, unwrapping these policies, and pursuing and prosecuting those involved in this fraudulent conduct.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
-
Make a complete disclosure of their cross-border activities;
-
Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
-
Cooperate in treaty requests for account information;
-
Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
-
Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
-
Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Privatbank Reichmuth & Co. was founded in 1996 as an external asset management firm. It is now a private bank headquartered in Lucerne, Switzerland. Reichmuth knew that it was likely that certain U.S. customers who maintained accounts there were not complying with their U.S. income tax and reporting obligations.
Reichmuth opened and maintained undeclared numbered or code name accounts for individual U.S. customers and held statements and other mail at its offices in Switzerland. In the period since Aug. 1, 2008, Reichmuth opened at least 14 undeclared U.S.-related accounts that came from UBS or another bank under investigation by the department.
In 2001, Reichmuth entered into a Qualified Intermediary (QI) Agreement with the Internal Revenue Service (IRS). The QI Agreement took account of the fact that Reichmuth, like other Swiss banks, was prohibited by Swiss law from disclosing the identity of an accountholder. In general, if an accountholder wanted to trade in U.S. securities and avoid mandatory U.S. tax withholding, the QI Agreement required Reichmuth to obtain the consent of the accountholder to disclose the client’s identity to the IRS.
Reichmuth’s position was that it could assist U.S. accountholders that it knew or had reason to believe were engaged in tax evasion so long as its accountholders were prohibited from trading in U.S.-based securities or the account was nominally structured in the name of a non-U.S. based entity. In the latter circumstance, U.S. accountholders, with the assistance of their advisors, would create an entity, such as a Liechtenstein or Panama foundation, and pay a fee to third parties to act as directors. Those third parties, at the direction of the U.S. accountholder, would then open a bank account at Reichmuth in the name of the entity or transfer a pre-existing Swiss bank account from another Swiss bank. Reichmuth made no effort to determine whether such an entity was valid for U.S. tax purposes.
Since Aug. 1, 2008, Reichmuth permitted U.S. customers to open and maintain at least 18 undeclared accounts held in the name of non-U.S. corporations, foundations, trusts or other legal entities. Of these structures, seven were domiciled in Liechtenstein, five in Panama, five in St. Vincent and the Grenadines and one in the British Virgin Islands. Even though Reichmuth was aware that U.S. persons were the beneficial owners of those accounts, Reichmuth obtained documents from the nominal accountholders that falsely declared they were not U.S. taxpayers.
In connection with one structured account, Reichmuth agreed to open an “insurance wrapped” account for the U.S. beneficial owner, whereby the beneficial owner funded an insurance policy with assets held in an undeclared account at Reichmuth. While the insurance-wrapped account was held in the name of a Panamanian structure and Reichmuth was not named as a party to the insurance contract, the assets held in the account were provided by the beneficial owner, held for his benefit and controlled by him. Reichmuth was aware that the account consisted of assets supplied by the beneficial owner and retained for his benefit. By accepting this account, Reichmuth knowingly enabled the beneficial owner in the evasion of his U.S. tax liabilities and concealment of his assets.
Since Aug. 1, 2008, Reichmuth maintained and serviced 103 U.S.-related accounts with an aggregate value of approximately $281 million, including both declared and undeclared accounts. Reichmuth will pay a penalty of $2.592 million.
Banque Cantonale du Jura SA (BCJ) was formed in 1979 and is headquartered in Porrentruy, Switzerland. BCJ opened and maintained undeclared accounts for certain U.S. client taxpayers knowing or having reason to know that by doing so, BCJ likely helped these U.S. taxpayers evade their U.S. tax obligations. BCJ was aware, or should have been aware, that this conduct violated U.S. law.
BCJ provided traditional Swiss banking services that it knew could assist, and that did in fact assist, certain U.S. taxpayers to evade their U.S. tax obligations, file false federal tax returns with the IRS and otherwise hide accounts held at BCJ from the IRS. Those services included opening accounts identified solely by pseudonyms, rather than by the names of the accountholders, and hold mail service. In at least two instances, BCJ permitted U.S. persons to transfer funds from accounts held at banks under investigation by the department into pre-existing accounts at BCJ. It also processed cash withdrawals for U.S. accountholders in sums below $10,000 on numerous occasions and, in at least two cases, withdrawing larger sums of cash when closing their accounts.
Due in part to the assistance of BCJ and its personnel, and with the knowledge that Swiss banking secrecy laws would prevent BCJ from disclosing their identities to the IRS, some of BCJ’s U.S. clients filed false and fraudulent U.S. Individual Income Tax Returns (IRS Forms 1040) which failed to report their respective interests in their undeclared accounts and the related income. Some of BCJ’s U.S. clients also failed to file and otherwise report their undeclared accounts on Reports of Foreign Bank and Financial Accounts (FBARs).
As part of its cooperation throughout the Swiss Bank Program, BCJ has provided certain account information related to U.S. taxpayers that may assist the government in making requests under the 1996 Convention between the United States and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income for, among other things, the identities of U.S. accountholders.
Since Aug. 1, 2008, BCJ had 18 U.S. clients with a total of 118 U.S.-related accounts. The aggregate amount of assets under management of all accounts associated with U.S. taxpayers at BCJ was approximately $10 million. BCJ will pay a penalty of $970,000.
Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA (BIM Suisse) was established in 2001 and is located in Lugano, Switzerland. BIM Suisse opened and maintained undeclared accounts for some U.S. taxpayers with the knowledge that by doing so, BIM Suisse was helping these U.S. taxpayers violate their legal duties. BIM Suisse agreed to hold bank statements and other mail relating to the accounts at BIM Suisse, rather than send them to U.S. taxpayers located in the United States, to ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
In January 2002, BIM Suisse entered into a QI Agreement with the IRS. BIM Suisse subverted the terms of that agreement by failing to fully comply with both its withholding and reporting obligations to the IRS, thus enabling U.S. accountholders to avoid reporting their accounts to the U.S. authorities.
Between Aug. 1, 2008, and May 2015, BIM Suisse closed 13 of its 16 U.S.-related accounts. As of July 2015, BIM Suisse maintains only three U.S.-related accounts, and none of those accounts remain undisclosed to the U.S. tax authorities. Under the terms of the agreement signed today, BIM Suisse will not pay a penalty.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s announcement emphasizes the strength and stamina of the Swiss Bank Program,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “Taxpayers with offshore accounts continue to come forth voluntarily to make things right with the IRS. Time is running out for those offshore accountholders who have not yet have taken that step. Through the Swiss Bank Program and the tremendous volume of information these banks are providing, the IRS will continue to identify and bring to justice those who would evade U.S. tax laws.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business and International Division for their substantial assistance. Ciraolo also thanked Michael N. Wilcove, Gregory S. Seador, Sean P. Beaty and Kimberle E. Dodd, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
-
Three Individuals Charged in Manhattan Federal Court with Participating in Student Financial Aid Fraud Scheme to Lower Student Loan Default Rate of For-Profit SchoolRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian M. Hickey, the Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Northeastern Regional Office (“ED-OIG”), announced charges today against three individuals for their participation in a scheme to fraudulently lower the student loan default rate of the for-profit school in whose Loan Management Department they were employed during the scheme. Defendants DIANNA SALAZAR, ALEKSANDRA CHOLEWICKA, and SHAYNA POLITE are charged with conspiracy to commit federal student financial aid fraud and make false statements, attempted federal student financial aid fraud, making false statements, and wire fraud. All of the defendants surrendered to law enforcement today and were presented before U.S. Magistrate Judge Andrew J. Peck in Manhattan federal court this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Student financial aid fraud depletes federal funds meant to fuel the dreams of an affordable higher education for countless Americans. The defendants charged today are alleged to have lied to lower their for-profit school’s student loan default rate in order to receive more such financial aid.”
ED-OIG Special Agent-in-Charge Brian Hickey said: “Federal student aid exists so that individuals can make their dream of a higher education a reality, it’s not a slush fund for unscrupulous school officials. As the law enforcement arm of the U.S. Department of Education, we are committed to fighting student aid fraud and ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions.”
According to the Complaint unsealed today in Manhattan federal court[1]:
Each of the defendants was associated with a for-profit educational institution (the “For-Profit School”) that was located in New York, New York during the scheme and specializes in preparing students for employment in a technical career after graduation. DIANNA SALAZAR was the manager of the School’s Loan Management Department. ALEKSANDRA CHOLEWICKA and SHAYNA POLITE worked as loan advisors in the Loan Management Department.
The named defendants are charged with preparing and submitting fraudulent applications for deferment or forbearance of student loans administered by the United States Department of Education (“ED”) in order to fraudulently lower the student loan default rate of the For-Profit School so that it would continue to be eligible to receive federal student aid.
The ED administers and provides loans to eligible students and families to help cover the cost of higher education through Title IV Federal Student Assistance Programs authorized by the Higher Education Act of 1965, as amended. If a school’s student loan default rate, which is a measurement of the percentage of students who entered repayment on their loans and defaulted within a specific period, is 30 percent or higher in three consecutive years, the school loses its eligibility to receive certain federal student aid for its students. A student that has entered repayment on his or her loan and has been granted a deferment or forbearance is relieved of making loan payments for a specified time period and is not considered in default.
The defendants submitted fraudulent deferment and forbearance applications to the ED and other loan holders in two ways. First, the defendants manually altered dates on previously submitted deferment and forbearance applications using liquid paper and resubmitted the applications in order to extend the deferment or forbearance period. Second, the defendants copied authentic student signatures from old deferment and forbearance documents and manually cut and pasted those signatures on new deferment and forbearance applications that were submitted with current dates. By falsifying dates and forging student signatures, the defendants misrepresented to the ED and other loan holders that the For-Profit School’s students were eligible for a deferment or forbearance and that the student had certified that the information provided in the forms was true and correct.
* * *
Attached are charts containing the charges against the defendants and the maximum penalties they face, as well as the defendants’ ages and residences. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of ED-OIG.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Taos Pueblo Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE—Julian Concha, 26, a member and resident of Taos Pueblo, N.M., pleaded guilty this morning in Albuquerque, N.M., to federal assault charges. Under the terms of his plea agreement, he will be sentenced to 37 months in prison followed by a term of supervised release to be determined by the court.
Concha was arrested on Feb. 13, 2015, on an indictment charging him assault resulting in serious bodily injury and two counts of assault with a dangerous weapon. The indictment alleged that the crimes were committed on Jan 15, 2013, in Taos Pueblo in Taos County, N.M.
During today’s proceedings, Concha pled guilty to a felony information charging him with assault resulting in serious bodily injury and assault by striking, beating or wounding. Concha admitted that on Jan. 15, 2013, he assaulted a woman by striking her on the face and head resulting in permanent damage to her left eye, and he assaulted a man by striking, beating and wounding the man’s face and head.
A sentencing hearing has yet to be scheduled.
This case was investigated by Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Police Department. Assistant U.S. Attorneys Kristopher N. Houghton and Niki Tapia-Brito are prosecuting the case.
The case was brought pursuant to 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.
Tahlequah Man Sentenced to 37 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DARRELL DEWAYNE PERRY, age 55, of Tahlequah, Oklahoma, was sentenced to 37 months imprisonment, followed by 5 years of supervised release for FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge is a result of an investigation by the United States Marshal Service. The defendant was indicted in December, 2014.
The Indictment alleged that from in or about October 2014 until on or about November 20th, 2014, in the Eastern District of Oklahoma, and elsewhere, DARRELL DEWAYNE PERRY, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received felony convictions from the State of Oklahoma, Muskogee County, on or about September 14, 1998, for the offenses of Rape First Degree, Rape by Instrumentation and Sodomy, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility in which he will serve his nonparolable sentence.
Assistant United States Attorney Edward Snow represented the United States.
St. Petersburg Real Estate Agent Indicted on Conspiracy and Bank Fraud ChargesRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Gary Blankenship (44, St. Petersburg, Florida) with conspiracy, wire fraud, and bank fraud. He faces a maximum penalty of 30 years’ imprisonment for each charge. The indictment also notifies him that the United States is seeking a money judgment for the proceeds of the charged criminal conduct.
According to the indictment and court proceedings, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners then engaged in a plan to convert the complex from rental apartment units to condominium units.
Blankenship’s co-conspirator, Brenden Bolger, aided the developers in the sale of numerous condominium units through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase The Arbors units, Bolger created an addendum to the purchase contract offering buyers various incentives such as rental supplements, money to defray maintenance costs, and a design credit to upgrade the units’ amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid them a kickback from his company’s bank account for the amount of the design credit. Blankenship’s role in the conspiracy as a realtor consisted of marketing The Arbors units by promising buyers that they would not be required to provide any money at closing, actually providing cash for borrowers to close on the units, facilitating the payment of kickbacks to his clients via Capital Management Guarantee, and facilitating the submission of false loan applications to FDIC-insured financial institutions, or their subsidiaries. In this manner, Bolger, Blankenship, and other co-conspirators failed to disclose material facts to the buyers’ mortgage lenders about the financing of the condominium sales.
Bolger previously pleaded guilty his role in the conspiracy. His sentencing is scheduled for September 18, 2015.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency - Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
Sorrento Councilman and Wife Indicted for Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has indicted RANDY ANNY (ANNY), age 51, and BARBARA FALGOUST ANNY (FALGOUST), age 51, both of Sorrento, Louisiana, with conspiracy and wire fraud in connection with a claim made to the Gulf Coast Claims Facility in the aftermath of the Deepwater Horizon Oil Spill. If convicted, each defendant faces incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from in or about November 2010 through in or about June 2011, ANNY and FALGOUST engaged in a scheme to profit from a fraudulent claim submitted to the Gulf Coast Claims Facility or “GCCF,” an administrative entity that BP Exploration and Production, Inc. established to process damage claims resulting from the Deepwater Horizon Oil Spill in the Gulf of Mexico.
According to the allegations contained in the Indictment, between November and December 2010, ANNY and FALGOUST submitted a fraudulent claim to the GCCF which represented that ANNY’s 26 foot boat had been damaged by the Oil Spill while located in Grand Isle, Louisiana. In support of the claim, ANNY and FALGOUST submitted a repair invoice which fraudulently reflected that ANNY had paid a company $7,800 in cash to repair specific items on his boat and boat trailer. As a result of the fraudulent claim, the GCCF wired $7,800 to a bank account controlled by ANNY and FALGOUST in June 2011.
This ongoing investigation and prosecution is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, and the Ascension Parish Sherriff’s Office. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Alan Stevens, who serve as Deputy Chiefs of the Criminal Division.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes, and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected].
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Shreveport resident sentenced to 33 months in prison for failing to update his sex offender registrationRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport resident was sentenced to 33 months in prison for failing to register his correct address for his sex offender identification.
Joseph Kelly Parson, 31, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of failure to update his sex offender registration. He was also sentenced to five years of supervised release. According to evidence presented at the April 6, 2015 guilty plea, Parson did not update his sex offender registration when living at a Shreveport address from October 8, 2013 until November 12, 2014. Parson originally pleaded guilty to two counts of statutory rape in Liberty County, Ga., in 2004. Upon release from prison, he was informed that he was required to register as a sex offender. He was later found living in Texas in 2010 and served a term of imprisonment for failure to register as a sex offender in Texas. After his release, Parson later moved to Shreveport but did not register in Louisiana as a sex offender.
The U.S. Marshals Service and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Seventeen Arrested in Connection with Lengthy Drug Trafficking InvestigationRead the Press Release
A lengthy drug trafficking investigation of a criminal group with ties to California and Mexico has resulted in seventeen arrests and the seizure of pound quantities of methamphetamine and heroin, announced U.S. Attorney Annette L. Hayes. Over the last 36 hours, teams of local, state and federal law enforcement agents searched twenty locations across the Puget Sound region in the culmination of an 18 month investigation involving court authorized wire-taps and extensive surveillance of members of the criminal group. Some of those arrested made their initial appearances on the indictments yesterday in U.S. District Court in Seattle. One additional defendant is appearing at 2:00 today.
“Heroin, and methamphetamine continue to wreak havoc in our communities,” said U.S. Attorney Annette L. Hayes. “I commend the law enforcement professionals who investigated this drug trafficking organization, taking large loads of drugs off the street, while also gathering key evidence to make these arrests and prosecutions possible.”
Beginning early yesterday morning, federal state and local law enforcement officers served search warrants on seventeen residences, three storage facilities and more than a dozen vehicles tied to the criminal group. Search warrants were executed in: Auburn, Bellevue, SeaTac, Seattle, Tukwila, Renton, Kent, Port Orchard, and Everett, Washington. An indictment and criminal complaints have been filed charging 22 defendants with conspiracy to distribute controlled substances including methamphetamine and heroin. Some of the defendants are charged with conspiracy to commit money laundering. During the course of the investigation law enforcement seized more than 29 pounds of meth, more than 18 pounds of heroin, 6 pounds of cocaine, approximately $178,000 in cash and sixteen firearms, including five assault rifles.
Those arrested include:
VERONICA ACEVES SANTILLANO, 28, of Renton, Washington
EDIBERTO ASEVEZ SANTILLANO, 36, of Renton, Washington
BRIAN CHRISTENSEN, 39, of Port Orchard, Washington
WILL EDWARD BRAMBILA, 26, of Kent, Washington
SANDRO CRIOLLO, 22, of Seattle
SENDHY AMAIRANY FELIX ACEVEZ, 21, of SeaTac, Washington
FRANCISCO FLORES PENUELAS, 43, of Kent, Washington
JOSE GONZALEZ MEDINA, 35, of Everett, Washington
EDUARDO GUZMAN VALENZUELA, 23, of Kent, Washington
MARICARMEN HERNANDEZ, 34, of Renton, Washington
HANZEL KNIGHT, 42, of Auburn, Washington
HERIBERTO PACHECO JUAREZ, 22, of Kent, Washington
RUBEN RODRIGUEZ RODRIGUEZ, 23, of Renton, Washington
RICARDO TOPETE, 24, of Seattle
RAMON ZAVALA ZAZUETA, 44, of Kent, Washington
JESUS GASTELUM-PAYAN, 20, of Kent, Washington
ALFONSO LEOS VILLASENOR, 20, of Kent, Washington
“This investigation is a great example of law enforcement collaboration,” said Seattle Police Chief Kathleen O’Toole. “The Seattle Police Department will continue to work closely with our federal, state and local partners to eliminate the flow of deadly drugs, such as heroin and methamphetamine to our region.”
Due to the drug quantities involved, some of the defendants face mandatory minimum sentences of ten years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. All of the defendants appearing on indictments yesterday entered pleas of “not guilty.” Trial was set for September 28, 2015 in front of Chief U.S. District Judge Marsha J. Pechman.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration, the FBI and the Seattle Police Department. The searches and arrests involved agents and officers from: Homeland Security Investigations – Seattle, Port of Seattle Police Department, Washington State Patrol, Snohomish County Sheriff’s Office, Snohomish Regional Drug And Gang Task Force, King County Sheriff’s Office, Kitsap County Sheriff’s Office, Lynnwood Police Department, Kent Police Department, Renton Police Department, Auburn Police Department, Tukwila Police Department, Federal Way Police Department, and the Pierce County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Thomas Woods.
Settlement Agent Sentenced to Six Years in Prison in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
WASHINGTON – Edward Dacy, 77, most recently of West Melbourne, Fla., was sentenced today to six years in prison on charges stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
Dacy was found guilty on March 25, 2015, following a trial in the U.S. District Court for the District of Columbia, of 10 counts of conspiracy, bank fraud, and mail fraud. He was sentenced by the Honorable Reggie B. Walton. His conviction completes a three-year investigation relating to this mortgage fraud scheme. A total of nine individuals have admitted their guilt through guilty pleas or were found guilty after trial. Upon completion of his prison term, Dacy will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $2,730,345 in restitution and an identical amount as a forfeiture money judgment.
The government’s evidence at trial included testimony from conspirators who were involved in the scheme to defraud banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, and ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.
The trial evidence included information about conspirators who purchased properties in the names of general partnerships. They then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, according to the evidence, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns and letters from a Certified Public Accountant, and fraudulent deeds conveying title to the nominee buyers.
According to the trial evidence, Dacy handled the settlements of the real estate transactions. The settlement company received the funding from the mortgage lenders and should have collected the buyers’ cash contributions; it was under the obligation to disburse the money only if all of the mortgage lenders’ conditions were met and the buyers’ financial contributions collected. Only then would the settlement company be authorized to release the lenders’ money, and pay the costs of the closing, the debts of the property or seller, and any other authorized expenses as set forth on the Settlement Statement. According to the evidence, Dacy joined the multi-million dollar fraud conspiracy by managing and overseeing the straw buyers’ settlements of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
In announcing the sentence, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Special Agent in Charge Rubenstein, and Assistant Director in Charge McCabe commended the work of the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales and Assistant U.S. Attorneys Anthony Saler, Thomas Swanton, and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys David A. Last and Virginia Cheatham, who prosecuted the case.
Second of Three Co-Defendants Pleads Guilty to Wire Fraud and Possession of Counterfeit Credit CardsRead the Press Release
BOISE – Irving Gonzalez-Bocanegra, 25, of Hermosillo, Mexico, pleaded guilty today in federal court to one count of wire fraud and one count of possession of fifteen or more counterfeit credit cards, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Gonzalez-Bocanegra and his co-defendants, Javier Miranda-Molina and Rafael Perez, were present and traveling together in Boise on March 31, 2015, for the purpose of using counterfeit credit cards to make fraudulent purchases of merchandise and gift cards. The defendants engaged in a number of transactions, at a variety of stores, using credit cards the defendants knew to be counterfeit. The defendants fraudulently obtained merchandise valued at approximately $5,117.63.
Prior to arriving in Boise, on March 29 and 30, 2015, the defendants engaged in similar fraudulent transactions in Montana and obtained merchandise valued at approximately $8,184.01.
When arrested in Boise, the defendants were working together to package and ship a variety of merchandise purchased with counterfeit credit cards, such as GoPro Hero 4 Cameras, Samsung Galaxy Nooks, and video game systems. They had in their joint possession a number of counterfeit credit cards. These included: approximately eighty-four counterfeit credit cards taped into the pages of a magazine; three counterfeit credit cards recovered from the trash, and three counterfeit credit cards found in the driver’s side door pocket of their rental car. Each of these counterfeit cards contained one of the defendant’s names embossed on the front of the card and a real but unauthorized account number encoded to the magnetic strip on the back of the card. Gonzalez-Bocanegra agreed to the forfeiture of, and to abandon any interest in, all credit cards, gift cards, merchandise, and other items seized at his arrest.
The defendants were charged with wire fraud because all of the described transactions resulted in wire communications that were foreseeable to the defendants, in particular, interstate transmissions by wire of information from the point of sale terminals in the stores to the credit card payment processers and to the account-issuing banks located in different states.
“This case demonstrates how federal and local law enforcement cooperate with Idaho businesses to protect business integrity and consumer confidence from the costs and victimization imposed by fraud,” said Olson.
Wire fraud is punishable by a term of imprisonment of up to twenty years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100. Possession of 15 or more counterfeit and unauthorized access devices is punishable by a term of imprisonment of up to ten years, a term of supervised release of not more than three years, a maximum fine of $250,000.00, and a special assessment of $100.
Gonzalez-Bocanegra’s sentencing is set before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise on October 27, 2015.
Co-defendant Rafael Perez, 31, of Guaymas, Mexico, is set for a plea hearing on August 11, 2015. Co-defendant Javier Miranda-Molina, 22 of Sonora, Mexico, pleaded guilty on August 4, 2015 and is set for a sentencing hearing on October 14, 2015.
The case was investigated by the United States Secret Service and the Boise Police Department.
Rwandan Native Indicted on Charges of Making False Statements and Lying to Government AgentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a two-count indictment charging Peter Kalimu, 48, of Buffalo, NY, with making false statements both in his application for naturalization as a United States Citizen and to Special Agents of the Department of Homeland Security. The charges carry a maximum penalty of 15 years in prison, a fine of $250,000 or both. Kalimu also faces automatic revocation of his U.S. citizenship if convicted of making a false statement on his application for naturalization.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that according to the indictment, the defendant, a native of Rwanda, concealed the fact that he previously used the name “Fidele Twizere.” An individual named “Fidele Twizere” has been identified as an alleged member of the majority Hutu tribe who participated in the genocidal atrocities perpetrated against the minority Tutsis. This followed the April 6, 1994 assassination of Juvenal Habyarimana, the president of Rwanda at the time.
The indictment states that Kalimu answered “none” to the question on his naturalization petition that asked “If you have even been known by any other names, provide them below.” In November 2014, the defendant provided a letter to Homeland Security agents claiming that he had never used another name (other than Peter Kalimu) and that he did not use any other name (other than Peter Kalimu) in Rwanda. These statements prevented the Department of Homeland Security, which is responsible for determining if foreign nationals are qualified to become U.S. citizens, from fully investigating the defendant’s background to determine if he was the “Fidele Twizere” that was allegedly involved in the 1994 Rwandan genocide.
The defendant will be arraigned on August 12, 2015 at 10:30 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The Indictment is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rochester Man Sentenced in Plot to Murder A Witness in Sex Trafficking CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert J. Palermo, 31, of Rochester, NY, who was convicted of conspiracy to murder a witness, was sentenced to 135 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Tiffany H. Lee and Robert A. Marangola, who handled the case, stated that Palermo, who was in jail on pending federal charges of conspiracy to commit sex trafficking and sex trafficking of a minor, attempted to obtain a hitman to murder the 15 year-old female sex trafficking victim. Over the telephone and in letters, the defendant spoke to multiple individuals about his plot to have a hitman murder the victim in order to prevent her from testifying against him.
To bring the murder plot to fruition, Palermo provided the victim’s name, description and directions to an address as well as the phone number for a person outside of jail for the hitman to contact on behalf of Palermo. Law enforcement officers learned of the plot before any harm came to the victim.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, and Special Agents of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Riceville Man Charged with Receipt and PossessionRead the Press Release
Adam Haacke, age 26, of Riceville, Iowa, has been charged with one count of receipt of child pornography and two counts of possession of child pornography. The charges are contained in an Indictment unsealed on August 3, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2014 and May 2015, Haacke received and possessed child pornography.
If convicted, Haacke faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of sixty years’ imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Haacke appeared for a detention hearing on June 5, 2015, in federal court in Cedar Rapids and was released on bond. Haacke’s next appearance for trial is set for October 5, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Hancock County Sheriff’s Office, the Mitchell County Sheriff’s Office, and the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2029.
Follow us on Twitter @USAO_NDIA.
Plato Man Sentenced to 20 Years in Prison for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Plato, Mo., man who initially confessed during a pre-employment polygraph examination when he applied for employment at the Missouri State Highway Patrol was sentenced in federal court today for producing child pornography.
Cedric Lovejoy, 29, of Plato, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. The court also ordered Lovejoy to spend the rest of his life on supervised release following incarceration. Lovejoy pleaded guilty on Dec. 2, 2014.
Lovejoy participated in a pre-employment polygraph interview and examination conducted by the Missouri State Highway Patrol on Nov. 9, 2012. During the interview, Lovejoy confessed that he had taken video footage of himself receiving oral sex from the then-14-year-old victim. State troopers executed a search warrant at Lovejoy’s residence and seized his computers, which contained the child pornography video Lovejoy had taken with his cell phone.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pike County Ill., Man Charged with Transportation of a Minor with Intent to Engage in Illegal Sexual ActivityRead the Press Release
Springfield, Ill. - A federal grand jury today returned an indictment that charges Ralph David Hathaway, 46, of New Canton, Ill., with transportation of a minor with the intent to engage in illegal sexual activity and two counts of travel with intent to engage in illicit sexual conduct. Hathaway was previously charged in a criminal complaint filed in the Central District of Illinois. The complaint remained under seal pending Hathaway’s arrest.
On July 27, Hathaway was arrested in Troy, Mo., and appeared before U.S. Magistrate Judge Shirley P. Mensah in St. Louis. Hathaway has remained in the custody of the U.S. Marshals Service and will be transported to Springfield, Ill., for arraignment.
The indictment alleges that Hathaway transported a minor from the state of South Carolina to Missouri on June 6, 2015, for the purpose of engaging in illegal sexual activity. It also alleges that, in October 2013 and April 2014, Hathaway traveled from Illinois to South Carolina for the purpose of engaging in illicit sexual conduct with a person under 18 years of age.
If convicted, the statutory penalty is no less than 10 years in prison and up to life in prison.
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield, Ill., San Francisco, Calif., Charleston, S.C., and St. Louis, Mo. divisions; the Pike County Illinois Sheriff’s Office; St. Charles County (Mo.) Cyber Crime Task Force; the Lincoln County (Mo.) Sheriff’s Office; Horry County (S.C.) Police Department; San Mateo (Calif.) Police Department; and Daly City (Calif.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Victor Yanz.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Philadelphia Man Charged with Bank Robbery and Attempted RobberiesRead the Press Release
PHILADELPHIA - Andre S. Lewis, 26, of Philadelphia, was charged today by indictment with bank robbery and attempted bank robbery, announced United States Attorney Zane David Memeger. According to the indictment, on June 15, 2015, Lewis robbed the Wells Fargo Bank located at 2843 N. Broad Street, Philadelphia, PA, and, on June 25, 2015 and July 14, 2015, he attempted to rob the Wells Fargo Bank located at 601 W. Erie Avenue, Philadelphia, PA.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a fine of $750,000, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney=s Office, and is being prosecuted by Assistant United States Attorney Jessica Natali.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Woman Sentenced for Possesion, Sale and Transprortation of A Stolen FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr, announced today that Ciera Leann Bennett, 23, of Lawrenceville, Pennsylvania, who was convicted of possession and sale of a stolen firearm and transportation of a stolen firearm over state lines, was sentenced to 16 months in prison by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that Bennett was arrested after an investigation by the Pennsylvania State Police into the theft of a .38 caliber revolver from owner, Peggy Bennett, who lived in Tioga, Pennsylvania. On April 26, 2012, Bennett and co-defendant Danelle Wilson transported the stolen .38 caliber revolver from Tioga, Pennsylvania, to Elmira, NY, and sold it in order to buy drugs.On December 31, 2012, the firearm was recovered in Ithaca, NY. Ballistic testing concluded that the firearm had been used in an officer-related shooting in October of 2012 which seriously injured an Ithaca police officer.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Pennsylvania Man Sentenced to 7 Years in Prison for Traveling to Baltimore to Have Sex with a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Ryan C. Anton, age 42, of Elverson, Pennsylvania, today to seven years in prison followed by 10 years of supervised release for travel with intent to engage in illicit sexual conduct. Judge Bennett ordered that upon his release from prison, Anton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Interim Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, in July, 2014, as part of an investigation of individuals who were targeting minors online for sexual exploitation, an undercover Baltimore City Police detective placed an ad on the internet. On July 23, 2014, Anton initiated text messaging with the undercover detective. Anton believed that the detective was a 14 year old, hearing-impaired girl named Heidi who was in the 10th grade. After a series of exchanges of sexually-explicit text messages over a period of weeks, including the solicitation of pornographic images from “Heidi,” Anton relayed that he was on a bus to Baltimore, provided the bus number and attempted to convince “Heidi” to board the bus.
Baltimore City Police detectives assisted by HSI agents boarded the bus and arrested Anton. Anton admitted that the plan was for “Heidi” to get on the bus with him to travel to Washington, D.C. where he had booked a hotel room to have sex.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Aaron S. J. Zelinsky, who prosecuted the case.
Parties to Restore Significant Habitat in Washington State River to Resolve Natural Resource Damage Liability at the Thea Foss WaterwayRead the Press Release
More than 56 parties have agreed to restore key salmon habitat on the White River, which flows through King and Pierce Counties in Washington State, to resolve their liability for natural resource damages caused by hazardous substances released into the Thea Foss and Wheeler-Osgood Waterways in Tacoma’s Commencement Bay, the Justice Department, National Oceanic and Atmospheric Administration (NOAA) and Department of the Interior announced today.
The habitat project will reopen 121 acres of historic floodplain for salmon, and reduces future flood risk to nearby homes and businesses. The project results from the collaborative efforts of settling parties and natural resource trustees: NOAA, the Department of the Interior, the Washington State Department of Ecology, the Puyallup Tribe of Indians, and the Muckleshoot Indian Tribe.
Under a settlement filed in federal district court in Tacoma, the parties will fund the Countyline Levee Setback Project, which will restore and provide off-channel rearing habitat for salmon and steelhead on the Lower White River in the vicinity of Pacific, Auburn and Sumner, Wash. The White River is one of the Puget Sounds’s most important watersheds for imperiled salmon and steelhead. The project will also help reduce the risk of flood damage for more than 200 nearby homes and businesses by allowing floodwaters more room to flow without damage.
The parties will monitor and adaptively manage the project under a 10-year plan that ensures at least 32.5 acres of the site are inundated by the river and thus accessible to fish. The parties also will pay more than $1 million towards the natural resource trustees’ assessment, oversight and the long-term stewardship costs maintaining the environmental value of the project over the next 100 years and beyond.
“This settlement is an important step toward repairing damaged natural resources from pollution in Commencement Bay, restoring critical salmon habitat in the area watershed, and reducing flooding for residents,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Through this settlement, we are again demonstrating our commitment to protecting and restoring vital natural resources in the Northwest, which will result in lasting benefits to people and their environment.”
The settling parties consist of companies, individuals, and government entities who are past or current owners and/or operators of or successors to facilities that released hazardous substances to the waterways. For many decades, the Thea Foss and Wheeler Osgood waterways received discharges of wastewater, chemical wastes, sludges, and miscellaneous industrial waste from a variety of industrial sources and sewers. The contaminants discharged to the waterways include PCBs, PAHs, cadmium, lead and zinc. Bis-2-ethyl hexylphthalate also was discovered to be widespread throughout the Thea Foss waterway at significant levels associated with biological effects.
This is the 20th natural resources settlement related to pollution in Commencement Bay, long the industrial heart of Tacoma. Through these settlements, more than 350 acres of salmon habitat will have been restored to offset the injuries to salmon and other fish from pollution of Commencement Bay.
“This is a great example of how providing sound habitat for our special salmon species provides benefits for people as well,” said General Counsel Lois Schiffer, NOAA. “These approaches improve the resilience of Northwest Communities.”
The settlement resolves the natural resource trustees’ claims against the settling parties, which are contained in a complaint filed with the consent decree. The complaint asserts claims for natural resource damages in Commencement Bay under the Superfund statute, the Clean Water Act, the Oil Pollution Act, and Washington’s Model Toxics Control Act.
The consent decree, lodged in the U.S. District Court for the Western District of Washington, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Justice Department website at www.justice.gov/enrd/Consent_Decrees.html.
Owner of Regional Healthcare, Llc Sentenced to Federal Prison for $5 Million Employment Tax Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge Shelly D. Dick sentenced CHARLES A. LANPHIER, age 69, of Lafayette, Louisiana, to 4 years in federal prison for his role in a lengthy employment tax scheme that defrauded the United States Treasury out of nearly $6 million. LANPHIER was immediately remanded into custody to begin serving his sentence. Following his release from prison, LANPHIER will be required to serve a 2-year term of supervised release. LANPHIER was also ordered to make restitution to the United States in the amount of $5,981,405.
On December 1, 2014, LANPHIER pled guilty to failing to truthfully account for and pay over taxes, in violation of Title 26, United States Code, Section 7202. As LANPHIER admitted at the time, at all times relevant to the investigation, he owned and controlled Regional Healthcare, LLC (“Regional”), a health care company with operations throughout Louisiana and Florida. As he withheld employment tax contributions from his employees, however, LANPHIER failed to file quarterly employment tax returns and failed to forward the taxes he had collected to the Internal Revenue Service (“IRS”). As LANPHIER previously admitted, his scheme lasted from 2008 through 2011 and caused a loss of more than $2.5 million. At today’s sentencing, the Court found that the defendant’s relevant conduct stretched back to 2005 and caused a loss of more than $5.9 million.
U.S. Attorney Walt Green stated: “My office is dedicated to working with the IRS-CI to pursue those who engage in complex financial crimes regardless of whether they work in the mail room or the corner office. Honest business owners deserve a level playing field, not one in which the corrupt get rich without consequence. My hope is that today’s sentence will illustrate the harsh reality awaiting those who defraud the taxpayers.”
Jerome R. McDuffie, Special Agent in Charge, IRS – Criminal Investigation, stated, “We are pleased with the sentence handed down by the Court in this matter. Charles Lanphier willfully failed to pay over employment taxes withheld from employee wages. He used his business, Regional Healthcare, to commit a fraud that ultimately resulted in the loss of tax revenue to the United States government and the loss of future social security and Medicare benefits for the affected employees. It is especially important to all of the hardworking taxpayers that Mr. Lanphier was held accountable for the widespread harm he caused.”
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the New Orleans Office of the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief in the Criminal Division.
Owner and Director of Eden Prairie Daycare Center Sentenced for Theft of Public MoneyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of KHADRA ABDISAFAD HIRSI, 47, to one year and one day in federal prison for stealing money in the form of child care subsidies from the U.S. Department of Health and Human Services and the State of Minnesota. HIRSI was charged on January 23, 2015, and pleaded guilty on February 4, 2015, to one count of theft of public money. The defendant was sentenced today before Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
According to her guilty plea and documents filed in court, HIRSI was the director and co-owner of Ace DayCare Center, Inc. (Ace DayCare) in Eden Prairie, Minn. Many of the families for whom Ace DayCare provided childcare services participated in the Child Care Assistance Program, which provides low-income families with childcare assistance. HIRSI was responsible for submitting truthful and accurate billing forms for childcare services provided by Ace DayCare to families participating in the Child Care Assistance Program. Under the Child Care Assistance Program, child-daycare providers submit billing forms for reimbursement directly to the counties where qualifying families reside.
According to documents filed in court, from at least November 2011 through May 2013, HIRSI knowingly submitted Child Care Assistance Program billing forms that falsely inflated the number of children who received childcare services provided by Ace DayCare. As a result, HIRSI defrauded the U.S. Department of Health and Human Services and the State of Minnesota out of $300,000.
“When people steal from this program, children are deprived of quality child care and all Minnesotans suffer,” said Jerry Kerber, Minnesota Department of Human Services inspector general. “The sentence imposed today recognizes the seriousness of this crime and should deter others from committing fraud against this important public program. DHS is grateful for the cooperation and hard work of the many agencies in this case and we will continue to work together to aggressively target fraud in public programs.”
This case resulted from an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General.
U.S. Attorney Luger thanked the Minnesota Department of Human Services for their assistance.
This case was prosecuted by Assistant U.S. Attorney John E. Kokkinen.
Defendant Information:
KHADRA ABDISAFAD HIRSI, 47
Eden Prairie, Minn.
Convicted:
- Theft of Public Money, 1 count
Sentenced:
- 1 year and 1 day in prison
- Two years supervised release
- $300,000 in restitution
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Norristown Man Charged with Possession of Child PornographyRead the Press Release
PHILADELPHIA - William Keller III, 60, of Norristown Borough, PA, was charged today by indictment with receipt and possession of child pornography, announced United States Attorney Zane David Memeger. The indictment charges Keller with five counts of receiving child pornography and one count of possessing child pornography.
If convicted, the defendant faces a mandatory minimum five years in prison up to a maximum possible statutory sentence of 110 years in prison, a fine of up to $1.5 million, and up to a lifetime of supervised release.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Paul W. Kaufman.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nifty Fifty's Accountant Sentenced for Tax Fraud SchemeRead the Press Release
PHILADELPHIA - William J. Frio, 59, of Springfield Township, PA, was sentenced today to 60 months in prison for his role in a tax evasion scheme involving the Nifty Fifty’s restaurant chain as well as evasion of his own taxes, structuring of funds he embezzled from the organization, and loan fraud. Frio, who is an accountant and income tax preparer, provided services to the Nifty Fifty’s organization dating back to 1986. He pleaded guilty on January 26, 2015, to conspiracy to commit tax evasion, four counts of filing false tax returns, loan fraud and aggravated structuring of financial transactions. In addition to the prison term, U.S. District Court Judge Mary McLaughlin ordered $1.7 million restitution, a special assessment of $700, and four years of supervised release.
Frio and five others, including the restaurant chain’s owners and managers, participated in a long-running scheme to avoid paying millions of dollars in personal and employment taxes. The scheme defrauded the Internal Revenue Service by failing to properly account for more than $15 million in gross receipts. Frio and the owners and principals of Nifty Fifty’s conspired in a scheme to use skimmed cash to pay themselves and people and businesses who supplied goods and services to the Nifty Fifty’s restaurants, providing those persons and businesses with the opportunity to evade the payment of their own taxes. In 2008, Frio submitted a false loan application to Sovereign Bank, for a $417,000 mortgage for his personal residence. Frio submitted to the bank bogus federal income tax returns for 2006 and 2007, and bogus Forms W-2, falsely representing he had earned substantial income from Tanfasia, Inc., when, as the defendant knew, the 2006 and 2007 tax returns that he had actually submitted to the Internal Revenue Service showed far less income than the false returns supplied to Sovereign Bank, and that the defendant had not been employed by Tanfasia, Inc. in 2006 or 2007. Between January 2009 and November 2009, Frio knowingly structured transactions with Sovereign Bank, totaling more than $2.6 million, as part of a pattern of illegal activity involving transactions of more than $100,000 in a 12-month period. Frio used his position as the Nifty Fifty’s accountant to embezzle millions of dollars that belonged to the organization.
The case was investigated by IRS-Criminal Investigation and the FBI. It was prosecuted by Assistant United States Attorneys Paul G. Shapiro and Nancy E. Potts.
New York City Men Plead Guilty to Drug Conspiracy and Gun ChargesRead the Press Release
PLATTSBURGH, NEW YORK – On August 5 and 6, 2015, Patrick Lloyd, 27, and Michael Spencer, 27, pled guilty to conspiracy to possess with intent to distribute and to distribute controlled substances, as wells possession of firearms in furtherance of a drug trafficking crime, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Resident Agent in Charge Russell Linstad.
"I commend the excellent work of the federal, state and local law enforcement agencies in dismantling this drug trafficking organization," said United States Attorney Richard S. Hartunian. "This case serves as a strong message that we will vigorously pursue and prosecute all those who endanger our neighborhoods though the distribution of illegal drugs and illegal firearm activity."
"This plea is the result of the collaboration between law enforcement agencies, which was instrumental in successfully dismantling a major violent narcotics smuggling organization in this area," said Russell Linstad, Resident Agent in Charge of Homeland Security Investigations (HSI). "HSI will continue to utilize its broad authorities to aggressively target and take down groups who are distributing narcotics and posing a threat in our communities."
"The Massena Police Department is extremely pleased with the resolution of these cases and would like to thank our state and local partners, Homeland Security Investigations Border Enforcement Security Task Force, and the United States Attorney’s Office for their hard work," said Senior Investigator Joseph Brown of the Massena Police Department.
As a result of their drug conspiracy convictions, Lloyd and Spencer respectively face 20 and 10 year mandatory minimum sentences of imprisonment, and up to life imprisonment. The firearms convictions carry mandatory minimum sentences of 5 years imprisonment and up to life, which must be imposed to run consecutively to the sentence on the drug conspiracy convictions. As a result, Lloyd faces a 25 year mandatory minimum sentence and Spencer faces a 15 year mandatory minimum sentence of imprisonment. Lloyd’s sentencing is scheduled for December 2, 2015 at 11:00 a.m. and Spencer’s sentencing is scheduled for December 14, 2015 at 1:30 p.m., both in United States District Court in Albany, New York.
The investigation resulted in the conviction of 13 members of this conspiracy and revealed that the organization utilized suppliers in New York City to obtain large quantities of cocaine, heroin, and crack for redistribution in the Massena, New York area. Couriers were used to transport drugs from New York City to Massena, where the organization’s distribution network sold ounce and gram quantities to drug users and other wholesale drug dealers.
Homeland Security Investigations (HSI), the Massena Police Department (MPD), the Saint Lawrence County Sheriff’s Department and the New York State Police (NYSP) led the investigation.
The District Attorneys of Clinton, Franklin and St. Lawrence Counties, the Saint Regis Mohawk Tribal Police Department, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police and the Customs and Border Protection United States Border Patrol assisted in the investigation.
This case was prosecuted by Assistant U.S. Attorney Katherine Kopita and Assistant U.S. Attorney Cyrus Rieck.
Nampa Woman Sentenced to 90 Months in Prison for Using Interstate Commerce Facilities to Hire Someone to Kill Her HusbandRead the Press Release
BOISE – Monique Christine Martinez, 33, of Nampa, Idaho, was sentenced yesterday to 90 months in prison for use of interstate commerce facilities in the commission of murder-for-hire, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Martinez to serve three years of supervised release upon completion of her prison sentence, and ordered that she have no contact with documented gang members or possess gang paraphernalia. Martinez pleaded guilty to the charge on May 12, 2015.
According to court documents, Martinez contacted an individual by Facebook in California in order to hire someone to kill her current boyfriend’s ex-girlfriend. Several days later, Martinez changed her mind and decided to hire a hit man to kill her husband. On October 17, 2014, Martinez met with an undercover FBI employee, whom she believed was a hit man. Martinez advised the undercover employee that she wanted her husband dead and provided $350 in U.S. currency and promised additional payment later in the week. She provided the undercover employee with a hand written note, which contained her husband’s name, the address of his employment and the address of his mother’s home, where he was recently living. Martinez showed the undercover employee photographs of her husband on her smartphone, provided his work schedule, described his tattoos, and described the vehicle he drove. Martinez suggested that the best time to kill her husband was either as he got off work or when he was leaving his gym. Martinez was arrested on October 22, 2014, at her residence in Nampa.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
Nampa Man Sentenced for Selling MethamphetamineRead the Press Release
BOISE – Michael Bradshaw, 31, of Nampa, Idaho, was sentenced today to 66 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Bradshaw to serve three years of supervised release following his prison term, during which Bradshaw may not have contact with documented gang members. Bradshaw pleaded guilty to the charge on May 26, 2015.
According to the plea agreement, Bradshaw admitted to selling methamphetamine to a police informant on September 16, 2013, and on October 9, 2013, in Nampa, Idaho.
This case and other related cases are the result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. In addition to Bradshaw, six other defendants have been sentenced. Guadalupe Serrano, 35, of Caldwell, was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Nicole Danelle Nieto, 31, of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. Jose Manuel Menchaca, 35, of Nampa, was sentenced May 28, 2015, to 60 months in prison for distributing methamphetamine. On June 17, 2015, Brandi Larrea, 31, of Nampa, was sentenced to 48 months in prison for distributing methamphetamine and Tara Noelle Rivera, 30, of Nampa, was sentenced to 24 months in prison for distributing methamphetamine. Johnny Lee Martinez, 33, of Nampa, was sentenced on July 20, 2015, to 57 months in prison for distributing methamphetamine. Two others have pleaded guilty and are awaiting sentencing. Kenny P. Breedlove, 35, from California, is scheduled to be sentenced on October 15, 2015, and Guillermo Farias Jr., 29, from Nampa, is scheduled to be sentenced on August 20, 2015. Three others are scheduled for trial including Richard Lobato, 51, Jose Enrique Olvera Jr., 51, both from Nampa, and Isaac Bright, 21, from Caldwell. Two other defendants have outstanding warrants, including Ruben Rodriguez, 36, and Veronica Cantu, 26, both from Nampa.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskogee Man Sentenced to 70 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JOHNATHAN LOCKE DAVIS, age 35, of Muskogee, Oklahoma, was sentenced to 70 months imprisonment, followed by 36 months of supervised release for FELON IN POSSESSION OF A FIREARM, in violation of Title 18, United States Code, Section 922(g)(1).
Charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation Violent Crime Task Force. The defendant was indicted in February, 2015 and pled guilty in March, 2015.
The Indictment alleged that on or about November 2, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility in which he will serve his nonparolable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Mississippi man sentenced to 12 months in prison for assault at Fort PolkRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a man from Mississippi was sentenced to 12 months and one day in prison for assaulting his ex-wife and striking a man in the head with a baseball bat on the Fort Polk military installation.
Justin Corey Thurston, 23, of McLain, Miss., was sentenced by U.S. District Judge Patricia Minaldi on one count of assault with a dangerous weapon. He was also sentenced to three years of supervised release. According to evidence presented at the April 30, 2015, guilty plea, Thurston visited the home of his estranged wife on September 6, 2014 at the Fort Polk military base to collect his personal belongings. While there, he and his wife engaged in an altercation leading to Thurston’s assault of his wife after she refused to give him her cellular telephone. He then exited the house, and the caller, who had heard the altercation on the phone, confronted Thurston. During the course of the confrontation, Thurston struck the caller in the head with a baseball bat, thereby causing him bodily injury.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. Assistant U.S. Attorneys David C. Joseph and Joseph T. Mickel prosecuted the case.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS RAMIREZ-VASQUEZ, age 38, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced CARLOS RAMIREZ-VASQUEZ to time served, and a $100 special assessment. RAMIREZ-VASQUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about March 29, 2015, CARLOS RAMIREZ-VASQUEZ was found in the United States after having been officially deported and removed on or about April 17, 2000.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Manhattan U.S. Attorney and FBI Announce Return of Stolen Stradivarius Violin to Heirs of Musician Roman TotenbergRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return of a 1734 Stradivarius violin to the heirs of deceased violinist Roman Totenberg today at a ceremony at the United States Attorney’s Office in Manhattan. The violin was stolen from Mr. Totenberg in 1980. It was recently recovered by the FBI, following a tip to a New York City Police Department (“NYPD”) detective’s source about the stolen violin. The detective exercised due diligence and conducted an initial assessment before passing the case along to the FBI’s Art Crime Team.
Manhattan U.S. Attorney Preet Bharara said: “Today, we return to its rightful owners the centuries-old Ames Stradivarius, stolen thirty five years ago from renowned violinist Roman Totenberg. This is a remarkable story of a quick-witted violin appraiser who recognized the long-lost Ames Stradivarius and immediately called law enforcement. Thanks to the violin appraiser’s good citizenship and law enforcement’s prompt response, today we celebrate the Totenberg family’s reunion with a priceless family heirloom, thought for decades to have been lost forever – a joyful ending to an amazing story.”
Assistant Director-in-Charge Diego Rodriguez said: “Today’s ceremony is just one example of our commitment to restore significant arts and antiquities to their rightful owners. We will continue to provide investigative support to address these criminal matters. Many thanks to our partners at the U.S. Attorney’s Office for the Southern District of New York and the New York City Police Department for their continued partnership in this and so many investigations. I’d like to remind the public that two antique bows were stolen along with the Ames Stradivarius. We ask anyone with information to please contact the FBI’s Art Crime Team in New York at (212) 384-2100 as we work to return this stolen property to the Totenberg family.”
According to court filings and other publically available information:
The violin, known as the “Ames” Stradivarius after violinist George Ames, the owner of the violin in the late 19th Century, was made in 1734 by Antonio Stradivari, a luthier based in Cremona, Italy. Between 1666 and 1737, Stradivari created over 1,000 instruments, including approximately 400 violins that are known to exist today. Stradivari’s violins are widely considered to be of the highest quality of craftsmanship.
In 1980, the Ames Stradivarius was owned by Roman Totenberg, a Polish-born violinist who immigrated to the United States in 1938. Totenberg enjoyed a long and distinguished career as a performer and a teacher. He was chair of the strings department at Boston University from 1961 to 1978; the director of the Longy School of Music in Cambridge, Massachusetts, from 1978 to 1985; an instructor at various conservatories across the country; and co-chairman of the Boston University strings department for a second time beginning in 1994. Mr. Totenberg passed away in 2012.
In May 1980, following a concert at the Longy School, the Ames Stradivarius was stolen, along with two antique bows also belonging to Totenberg.
On June 26, 2015, after having been missing for over 35 years, the Ames Stradivarius surfaced at a hotel in Manhattan, where it was being presented for appraisal by an individual who had received the violin from a former spouse. After being contacted by the appraiser, the FBI approached the individual, who voluntarily relinquished the Ames Stradivarius to a special agent assigned to the FBI’s Art Crime Team. After contacting the heirs of Roman Totenberg, the U.S. Attorney’s Office and the FBI have arranged for the return of the Ames Stradivarius to the Totenberg family.
The return today to Mr. Totenberg’s three daughters is being made pursuant to stipulated agreements that have been entered between the relevant parties and also so ordered by the Honorable Lorna G. Schofield, United States District Court Judge for the Southern District of New York.
Mr. Bharara thanked the FBI and the NYPD for their outstanding work on this matter.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the case.
Lynn Man Indicted on Charges of Naturalization, Passport, and Social Security FraudRead the Press Release
BOSTON – A Lynn man was arrested yesterday in connection with federal immigration and social security violations.
Princehakeem Awolesi was indicted on Tuesday, Aug. 4, 2015 on one count of illegally obtaining U.S. citizenship; two counts of making false statements in a passport application; two counts of using a passport that had been issued by reason of false statements; and one count of using a falsely obtained social security account number.
According to the indictment, Awolesi obtained United States citizenship by making false statements in connection with his application for naturalization. In so doing, Awolesi concealed his past use of different names, a prior criminal conviction, and a previous application for relief from removal. In addition, the indictment alleges that Awolesi falsely stated that he had never given false information to any government official while applying for any immigration benefit or to prevent deportation, exclusion, or removal.
According to the indictment, Awolesi also made false statements on two applications for U.S. passports, and later used those passports. The indictment also charges Awolesi with using a social security number that was obtained on the basis of false information.
The charges of illegally obtaining U.S. citizenship and passport fraud provide a sentence of no greater than ten years in prison, three years of supervised release, and a fine of $250,000. Awolesi may also be stripped of United States citizenship. The charge of using a falsely obtained social security account number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Lunas Man Charged with Federal Production and Possession of Child Pornography OffensesRead the Press Release
ALBUQUERQUE – Martin Perea, 35, of Los Lunas, N.M., was arrested yesterday by the FBI on a criminal complaint charging him with production and possession of visual depictions of minors engaged in sexually explicit conduct. During proceedings in federal court in Albuquerque, N.M., this morning, a U.S. Magistrate Judge ordered Perea detained pending trial.
According to the criminal complaint charges, the FBI began an investigation into Perea on July 24, 2015, when the Valencia County Sheriff’s Office reported receiving information from the Spokane (Washington) Police Department alleging that Perea sexually abused an eight-year-old child and produced child pornography.
The complaint alleges that on July 1, 2015, the victim’s mother discovered pornographic images and videos of Perea and the victim on a memory card she took from Perea’s cellular telephone. The mother allegedly confronted Perea, her former boyfriend, about the pornographic photographs and videos later that day. Two days later, the mother fled with the victim to Spokane, Wash., after Perea allegedly threatened to burn her and her home if she did not return the memory card to him. Once in Spokane, the mother contacted local law enforcement authorities to file a complaint against Perea.
After the memory card was transferred from the Spokane Police Department to the Valencia County Sheriff’s Office, the FBI obtained a federal search warrant for the card. On July 28, 2015, the search warrant was executed at the New Mexico Regional Computer Forensic Laboratory where the contents of the memory card were downloaded. The complaint alleges that the memory card contained approximately 111 video files and more than 980 image files, including multiple videos and images which allegedly contained child pornography.
If convicted on the production of child pornography charge, Perea faces a prison sentence of not less than five years and not more than 20 years. If convicted on the possession charge, he faces a federal prison term of up to ten years. Perea also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the Valencia County Sheriff’s Office and the New Mexico Computer Forensic Laboratory with assistance from the Spokane Police Department.
The case is being prosecuted by Assistant U.S. Attorney Shammara H. Henderson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Local Organized Crime Drug Prosecutor Promoted in Army Reserve to Major GeneralRead the Press Release
CEDAR RAPIDS, IOWA – This week Assistant United States Patrick J. Reinert, 54, from Cedar Rapids, Iowa, was confirmed by the United States Senate to be promoted in the Army Reserve to the rank of Major General.
Later this year after his formal promotion, Major General Reinert will assume command of the 88th Regional Support Command headquartered at Fort McCoy, Wisconsin. The Command provides services and base operations support to all Army Reserve soldiers, families and civilians serving across 19 states in the northern U.S. from the Ohio River Valley to the Pacific Coast.
United States Attorney Kevin Techau stated, “The Department of Justice, and in particular, the Northern District of Iowa United States Attorney's Office, is very proud of General Reinert. Pat is a tremendous individual. This promotion is a great honor for both him and his family. The 1994 Uniformed Services Employment and Reemployment Rights Act (USERRA) is a great way for our country to maximize service to our country through military service.”
In previous military assignments Reinert has deployed twice and has served as a Military Judge, Commander of the U.S. Army Reserve Legal Command, Commanding General of the Rule of Law Field Force, and later the Joint InterAgency Task Force 435, both assignments in Afghanistan.
In his civilian capacity, Reinert is the lead Organized Crime Drug Enforcement Task Force Attorney for the United States Attorney’s Office in Cedar Rapids, and has been with the United States Attorney’s Office for over 25 years.
Follow us on Twitter @USAO_NDIA.
Leader of Large Heroin and Marijuana Conspiracy in Northern Kentucky and Ohio Sentenced to 353 MonthsRead the Press Release
COVINGTON - The leader of a large drug trafficking operation, that distributed large quantities of heroin and marijuana in northern Kentucky and southern Ohio, has been sentenced to 353 months in federal prison.
Today, U.S. District Judge Amul R. Thapar sentenced Alberto Lara-Chavez, 45, of Pasadena, Calif., for conspiracy to distribute 100 grams or more of heroin and 100 kilograms or more of marijuana, distribution of heroin, distribution of marijuana, possession of a firearm in furtherance of drug trafficking, possession of a firearm by an illegal alien, conspiracy to launder money, and engaging in a continuing criminal enterprise. Judge Thapar also sentenced Lara-Chavez’s son, Jose Alberto Lara, 23, of Planada, Calif., to 60 months in prison for conspiracy to distribute 100 kilograms or more of marijuana. Under federal law both defendants must serve at least 85 percent of their prison sentences.
Those two, along with Felix Agundiz-Montes, were convicted in March of 2015, following a nine-day jury trial. The evidence at trial established that, from October 2012 through May 16, 2014, Lara-Chavez led a group of 19 individuals who conspired to distribute heroin and marijuana in Kenton, Boone, Campbell, Gallatin, and Grant Counties in Kentucky, as well as Hamilton, Brown, and Clermont Counties in Ohio.
The evidence at trial also established that the group shipped marijuana, from Texas and California, to locations in Ohio and Kentucky; the group operated a large marijuana field in Sardinia, Ohio; and brought heroin, from Columbus, Ohio, to northern Kentucky for distribution.
Court records and evidence further showed that, during the course of the conspiracy, many of the conspirators were not legally present in the United States and had been brought here, by other conspirators, to sell narcotics; many illegally possessed firearms to protect the drugs and drug proceeds; and the leaders conspired to launder funds from the operation through bank deposits, wire transfers, and casino activity. Several of the conspirators also claimed they were associated with a Mexican drug cartel.
Lara-Chavez was the leader of the group and directed its local activities. All of his co-conspirators have been convicted and sentenced for their roles.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Joseph Reagan, Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, jointly made the announcement.
The investigation was conducted by the Drug Enforcement Administration, the United States Postal Investigation Service, the Internal Revenue Service, and the Northern Kentucky Drug Strike Force. The United States was represented in this case by Assistant United States Attorney Tony Bracke.
Latvian Couple Sentenced for Wire Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Janis Tonis, 32, and Veronika Krutova, 26, of Latvia, who were convicted of conspiracy to commit wire fraud, were sentenced to time served (seven months) by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that the defendants, along with other co-conspirators, defrauded financial institutions and victim businesses by sending false wire transfer requests. Participants in the scheme used stationary from victim businesses to authorize wire transfer requests at the financial institutions. The defendants attempted to defraud a total of $80, 928 from the financial institutions.
The defendants also defrauded online purchasers of motor vehicles by posting cars for sale online, the defendants instructed the buyers to send money to bank accounts they controlled and then took the money and disappeared without ever delivering a vehicle. The loss amounts total $32,300.
The sentencings are the culmination of an investigation on the part of Special Agents of Immigrations and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Justice Department Files Brief to Address the Criminalization of HomelessnessRead the Press Release
The Department of Justice filed a statement of interest today arguing that making it a crime for people who are homeless to sleep in public places, when there is insufficient shelter space in a city, unconstitutionally punishes them for being homeless. The statement of interest was filed in federal district court in Idaho in Bell v. City of Boise et al., a case brought by homeless plaintiffs who were convicted under Boise ordinances that criminalize sleeping or camping in public.
As stated by the Justice Department in its filing, “[i]t should be uncontroversial that punishing conduct that is a universal and unavoidable consequence of being human violates the Eighth Amendment. . . Sleeping is a life-sustaining activity—i.e., it must occur at some time in some place. If a person literally has nowhere else to go, then enforcement of the anti-camping ordinance against that person criminalizes her for being homeless.”
“Many homeless individuals are unable to secure shelter space because city shelters are over capacity or inaccessible to people with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Criminally prosecuting those individuals for something as innocent as sleeping, when they have no safe, legal place to go, violates their constitutional rights. Moreover, enforcing these ordinances is poor public policy. Needlessly pushing homeless individuals into the criminal justice system does nothing to break the cycle of poverty or prevent homelessness in the future. Instead, it imposes further burdens on scarce judicial and correctional resources, and it can have long-lasting and devastating effects on individuals’ lives.”
“No one wants people to sleep on sidewalks or in parks, particularly not our veterans, or young people, or people with mental illness,” said Director Lisa Foster of the Office for Access to Justice. “But the answer is not to criminalize homelessness. Instead, we need to work with our local government partners to provide the services people need, including legal services, to obtain permanent and stable housing.”
In this case, the plaintiffs allege that enforcement of the city of Boise ordinances prohibiting sleeping or camping in public outdoor places, on nights when there is insufficient shelter space in Boise to accommodate the homeless population, amounts to cruel and unusual punishment in violation of the Eighth Amendment. In its filing, the United States does not take a position on the factual accuracy of the plaintiffs’ claims, but instead addresses the appropriate legal framework for analyzing their claims. The statement of interest advocates for the application of the analysis set forth in Jones v. City of Los Angeles, a Ninth Circuit decision that was subsequently vacated pursuant to a settlement. In Jones, the court considered whether the city of Los Angeles provided sufficient shelter space to accommodate the homeless population. The court found that, on nights when individuals are unable to secure shelter space, enforcement of anti-camping ordinances violated their constitutional rights. The parties in Bell v. City of Boise disagree about whether the Jones court’s analysis was correct, reflecting the longstanding disagreement among courts analyzing the constitutionality of anti-camping ordinances. The statement of interest was filed to address this currently unsettled area of the law.
Bell v. City of Boise et al. was filed in the District of Idaho in 2009.
Judge Sentences Bus Passenger for Smuggling HeroinRead the Press Release
LAREDO, Texas – A 29-year-old Laredo man has been ordered to federal prison following his conviction of conspiracy and possession with the intent to distribute more than one kilogram of methamphetamine, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Altagracia Guadalupe Vargas, 29, of Laredo, in March 2015 following a two-day trial.
Today, U.S. District Court Judge Diana Saldana ordered Vargas to serve a total of 121 months in federal prison to be immediately followed by five years of supervised release.
On Dec. 12, 2014, Vargas took part in a conspiracy to smuggle heroin through the U.S. Border Patrol (BP) checkpoint on interstate 35, while traveling as a passenger on a Turimex bus. Upon investigation, authorities discovered Vargas was carrying 3.5 kilograms of black-tar heroin, concealed in the inner linings of two carry-on bags. Vargas was questioned and gave multiple inconsistent statements.
At trial, the jury heard testimony from a variety of federal agents who described the discovery of heroin. Chemists with the Drug Enforcement Administration (DEA) and drug value experts also explained the confiscated drug was, in fact, heroin and had a value at more than $100,000.
Vargas testified and attempted to convince the jury that she believed the bags contained computer tools and were concealed to prevent theft. She said the bags belonged to a man named “Don Tono,” which contradicted her earlier statement that the bag belonged to her sister. Vargas also testified she received $50 from Don Tono for this trip. However, the government demonstrated that she had actually paid $75 of her own money for the bus ticket, which would have resulted in a $25 loss.
Vargas has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to charges was conducted by BP, Customs and Border Protection and DEA. Assistant U.S. Attorney Alfredo De La Rosa prosecuted the case.
Iowa Man Pleads Guilty to Making Threats Against Boston-Based Islamic CenterRead the Press Release
BOSTON – An Iowa man pleaded guilty today on charges of threatening to shoot and kill Muslims by posting threats on the Facebook page of an Islamic organization in Boston.
Gerald Wayne Ledford, 57, of Clinton, Iowa, pleaded guilty to one count of transmitting in interstate commerce a communication containing a threat to injure. Ledford was charged in the District of Massachusetts. In June 2015, Ledford was arrested in Iowa and he pleaded guilty in a federal court in the Southern District of Iowa. He is scheduled to be sentenced on Nov. 13, 2015 in Iowa.
Ledford admitted that on or about Oct. 19, 2014, he threatened the Islamic Society of Boston Cultural Center (ISBCC), a cultural center that offers a mosque and a variety of educational, spiritual, and social services to Muslims in New England. Ledford posted two threats on the ISBCC’s Facebook page. One post threatened, “Mohamed was a child rapist .a murderer and molester.you all will go to hell with you’re father satan..we will destroy you here and in your’re s**t hole countrys.” The second post consisted of a photograph of a man bearing a long gun with the caption, “This is for you.followers of the piece of s**t Mohamed …” At the plea hearing, Ledford admitted that he knew that these messages would be viewed as threats.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; United States Attorney for the Southern District of Iowa Nicholas A. Klinefeldt; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Scott L. Garland of Ortiz’s Civil Rights Enforcement Team and Richard D. Westphal of the U.S. Attorney’s Office for the Southern District of Iowa.
Indictment: Prison Guard Took Bribes to Smuggle Tobacco into Leavenworth PenitentiaryRead the Press Release
KANSAS CITY, KAN. - A prison guard was indicted Wednesday on a federal charge of accepting bribes to smuggle tobacco to inmates at the U.S. Penitentiary in Leavenworth, U.S. Attorney Barry Grissom said today.
Michael Harston, 52, Kansas City, Mo., was charged with one count of conspiracy to commit bribery and four counts of accepting bribes. The indictment alleges that from October 2013 to August 2014 Harston took bribes to carry tobacco, which is contraband, into the penitentiary.
The indictment alleges payment was made via wire transfers from inmates’ relatives. Harston was caught on video surveillance in the process of distributing tobacco to inmates.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on the conspiracy charge, and a maximum penalty of 15 years and a fine up to $250,000 on each of the bribery counts.
The FBI investigated. Special Assistant U.S. Attorney Leena Ramana is prosecuting.
OTHER GRAND JURY INDICTMENTS
Justin A. Jacks, 26, Wichita, Kan., is charged with two counts of distributing child pornography and one count of possession of child pornography. The crimes are alleged to have occurred in May and July 2015, in Wichita.
If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on each distribution county, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. Homeland Security Investigations and the Wichita Police Department’s Internet Crimes Against Children (ICAC) Task Force investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Cruz Lopez-Perez, 39, a citizen of Guatemala, is charged with one count of unlawfully re-entering the United States after being deported. He was found July 26, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. The Kansas Department of Revenue and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Luis Antonio Garcia-Gomez, 25, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found July 28, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. The Kansas Department of Revenue and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Cortez I. Mumford, 41, Kansas City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 20, 2015, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges Three in July 2015 Bank RobberyRead the Press Release
PHILADELPHIA – Three people were charged today by indictment in an armed bank robbery in Philadelphia, PA, announced United States Attorney Zane David Memeger. David Thomas, a/k/a David Thompson, 22, Shymeka Miller, a/k/a Shymeka Wright, 24, and Heather Lane, 26, all of Philadelphia, PA, were each charged with armed bank robbery and a related firearm charge for the July 15, 2015 armed robbery of the TD Bank at 5501 Ridge Avenue, Philadelphia. Thomas is also charged with being a convicted felon in possession of a firearm.
If convicted of the charges, each defendant faces a mandatory minimum sentenced of seven years in prison with a maximum sentence of life, up to five years of supervised release, possible fines, restitution, special assessments, and forfeiture of the firearm and ammunition.
This case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Horseheads Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Daniel Sayre, 31, of Horseheads, NY, pleaded guilty to production of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a minimum sentence of 15 years in prison, a maximum of 30 years and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between January 2014 and February 2015, the defendant produced a sexually explicit video and still images of a minor related to him who was under the age of 12. The defendant used a computer and a Samsung camera to produce these images.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the New York State Police, under the direction of Major Craig Hanesworth, and the Chemung County District Attorney’s Office, under the direction of Weedon Wetmore.Sentencing is scheduled for November 4, 2015 at 10:00 a.m. before Judge Siragusa.
Historic Footage Connected to Gardner Museum Burglary Released - Public Assistance SoughtRead the Press Release
BOSTON – Twenty-five years after the notorious burglary of the Isabella Stewart Gardner Museum in Boston, law enforcement officials are seeking the public’s assistance in identifying an unauthorized visitor to the museum the night before the theft. That person entered the museum through the same door as the thieves in the middle of the night, 24 hours before the theft.
“Over many months we have engaged in an exhaustive re-examination of the original evidence in this case. Our aim has been to ensure that all avenues have been explored in the continuing quest to recover these artworks,” said United States Attorney Carmen Ortiz. “Today we are releasing video images from the night before the theft -- images which have not previously been seen by the public -- with the hope of identifying an unauthorized visitor to the museum. With the public’s help, we may be able to develop new information that could lead to the recovery of these invaluable works of art.”
The video footage released today, captured by Museum security cameras 24 hours before the Gardner heist, shows an automobile pull up next to a rear entrance of the Museum. The car matches the general description of a vehicle that was reported to have been parked outside the Museum moments prior to the theft on March 18, 1990.
The video also shows an unidentified man exiting the automobile and then being allowed inside the Museum, against Museum policy, by a security guard. That event occurred at 12:49 a.m. on March 17, 1990, almost exactly 24 hours before the thieves entered the museum through the same door.
While the images of both the vehicle and the unidentified man are low resolution, law enforcement officials hope that releasing the footage will assist with identifying the man or the vehicle in the video.
Anyone with information regarding the video should call the FBI at 617-742-5533 or the Isabella Gardner Museum at 617-278-5114.
Vincent Lisi, Special Agent in Charge of the FBI in Boston said, “This latest request for the public’s assistance illustrates the FBI’s continued commitment to the Gardner investigation. By releasing this video, we hope to generate meaningful leads and ultimately recover the stolen artwork.”
A $5 million reward has been offered by the Museum for information that leads directly to the recovery of all of the stolen items in good condition. The recovery of an individual object will result in a portion of the reward, based upon the object’s market value relative to the other stolen objects.
“We remain committed to one goal: the return of all 13 works to their rightful place, which is here at the Isabella Stewart Gardner Museum. To that end, we support the efforts that the United States Attorney and the Federal Bureau of Investigation are making to uncover any and all information related to the theft of our artwork. We believe that no stone should be left unturned,” said Anthony Amore, Director of Security at the Gardner Museum.
In the early morning hours of March 18, 1990, two white males dressed in Boston Police uniforms gained entrance to the Gardner Museum by advising the security guard at the watch desk that they were responding to a report of a disturbance within the compound. Against Museum policy, the guard allowed the thieves into the facility. Upon entry the two thieves subdued the on-duty security personnel, handcuffed them, and secured both guards in separate remote areas of the Museum’s basement. The suspects did not brandish weapons, nor were any weapons seen during the heist. No panic button was activated and no Boston Police notification was made during the robbery. The video surveillance film from the evening of the robbery was seized by the thieves prior to departure. They did not take the video footage from the night before.
The combined value of the 13 works of art stolen during the Gardner theft is at least $500 million, though they are considered priceless within the art community. The following objects were stolen during the burglary and have been missing for the past 25 years:
1) Vermeer's "The Concert"
2) Rembrandt's "A Lady and Gentleman in Black"
3) Rembrandt's "The Storm on the Sea of Galilee"
4) Rembrandt's "Self Portrait"
5) Govaert Flinck's "Landscape with an Obelisk"
6) A Shang Dynasty Chinese Bronze Beaker from 1200-1100 BC
7) Degas's "La Sortie du Pelage"
8) Degas's "Cortege Aux Environs de Florence"
9) Degas's "Three Mounted Jockeys"
10) Degas's "Program for an Artistic Soiree" charcoal on white paper
11) Degas's "Program for an Artistic Soiree" less finished charcoal on buff paper
12) Manet's "Chez Tortoni"
13) Napoleonic Eagle Finial
The video is available at: http://www.justice.gov/usao-ma/gardner-museum-theft
Heroin Dealer Goes to Federal PrisonRead the Press Release
PITTSBURGH - On August 5, 2015, a Pittsburgh resident was sentenced in federal court to 50 months in prison followed by multiple years of supervision by the United States Probation Office as a result of his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Germal McCray, age 40. In sentencing a defendant, federal law requires the court to first examine the extent of McCray’s criminal history as well as the seriousness of his crimes in order to determine an advisory guideline range. The court must consider this non-mandatory guideline range in order to avoid unwarranted sentencing disparities between similarly situated defendants, but the law permits the court to consider a wide range of factors in determining the ultimate sentence appropriate to a specific defendant. In this matter, Judge Hornak found McCray’s advisory guideline range to be 57 to 71 months of incarceration and then provided the defendant with a small variance from the guidelines as a result of his difficult childhood and other mitigating factors in order to reach the 50-month sentence. Judge Hornak emphasized the serious effect heroin dealing has on the entire community and stated that spending more than four years in federal prison was sufficient but not greater than necessary since McCray’s previous convictions occurred more than 10 years ago.
According to information presented to the court, multiple federal, state and local law enforcement officers worked together in an effort to investigate heroin activities in Pittsburgh. These efforts culminated in police catching McCray and others actively engaged in the process of packaging heroin for later sale to heroin users. Law enforcement officers also seized the drug money and other drug-related items located as a result of the investigation. The forfeiture of these items will preclude their later use by other drug dealers and makes criminals help pay for the investigation of other drug crimes. McCray was handcuffed in the courtroom at the conclusion of the sentencing hearing and taken into custody by Deputy United States Marshals, in order to begin his sentence.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton specifically commended the Drug Enforcement Administration and the Pittsburgh Bureau of Police for their part in the investigation leading to the successful prosecution of Germal McCray and his associates.
Grand Jury Indicts Decatur Man on Charges of Murder and Hobbs Act RobberyRead the Press Release
Springfield, Ill. – A federal grand jury today returned a five-count indictment that charges Kelton Snyder, of Decatur, Ill., in the April 3, 2015, armed robbery of the Circle K convenience store and the April 5, 2015, murder of Paige Mars, also of Decatur. Snyder, 23, is charged with conspiring to commit the armed robbery and commission of the robbery in interference with commerce, known as the Hobbs Act; murder; brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a felon.
The indictment alleges that from April 2 to April 6, 2015, Snyder conspired to commit the armed robbery, obtained and possessed firearms, and used masks and firearms to commit the robbery on April 3. On or about April 5, the indictment alleges conspirators met to discuss the possibility that Mars may alert law enforcement about the robbery and on April 5, conspirators killed Mars. According to the indictment, Mars served as the driver while Snyder and his co-conspirator, Matthew Vogt, committed the robbery of the Circle K.
U.S. Attorney Jim Lewis and Macon County State’s Attorney Jay Scott announced the federal indictment. The case is being prosecuted in federal court by Assistant U.S. Attorneys Katherine Boyle and Jason Bohm. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Snyder was previously charged in Macon County and is now in the custody of the U.S. Marshals Service. He will be arraigned in federal court in Urbana on a date to be determined by the U.S. Clerk of the Court.
If convicted, the penalty for use of a firearm resulting in murder is life in prison unless the U.S. Attorney General directs the U.S. Attorney to seek the death penalty, in which case the maximum statutory penalty for the murder is death. Brandishing a firearm during and in relation to a violent crime carries a mandatory minimum of 10 years in prison and up to life, to be served consecutive to any term of imprisonment ordered for the underlying crime of violence. The statutory penalty for conspiracy to commit Hobbs Act Robbery and commission of the Hobbs Act offense is up to 20 years in prison for each charge.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Garland, Texas, Man Faces 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Jeffrey David Mitchell, 51, of Garland, Texas, appeared in federal court before U.S. Magistrate Irma C. Ramirez and pleaded guilty to one count of transportation of child pornography. Mitchell, who has been in federal custody since his arrest in May 2015 on related charges, faces a maximum statutory penalty of not less than five years and up to 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release. A sentencing date was not set. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case, the investigation began in late April 2015 resulting from a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding the upload of images depicting child pornography to an electronic group and to various email accounts. The investigation led law enforcement to secure and execute a search warrant on Mitchell’s home on April 29, 2015; Mitchell and his parents were home during the search.
Mitchell admitted he possessed child pornography and that he sent and received child pornography via his email account. He confirmed that he created and used multiple email accounts to trade the child pornography, and that images of child pornography were on his desktop computer located in his bedroom.
Law enforcement seized several media items from the residence, and a forensic analysis and review of Mitchell’s email accounts revealed approximately 750 images and 100 videos of child pornography. Some of those images and videos depict sadistic/and/or violent content, and some of the files depict infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI, Collin County Sheriff’s Office and Garland Police Department are investigating the case. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
# # #
Franklinton Man Charged with Structuring over $100,000 in Financial Transactions to Avoid Federal Reporting RequirementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERRY COX, age 72, of Franklinton, was charged in a one-count Bill of Information with structuring financial transactions to avoid federal reporting requirements.
According to the Bill of Information, in September 2011, COX made, and caused to be made, a series of cash withdrawals from Citizens Savings Bank and Resource Bank that were designed to evade certain reporting requirements under federal law. COX did so as part of a pattern of activity involving more than $100,000 in a twelve-month period. Specifically, COX caused a series of seven withdrawals between September 20, 2011 and October 11, 2011, in amounts between $7,650 and $9,500.
If convicted, COX faces a maximum term of not more than ten years in prison, followed by up to three years of supervised release, and a $250,000 fine.
U.S. Attorney Polite reiterated that the Bill of Information 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 Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Four Odessans Sentenced to Life in Federal Prison in Connection with a HomicideRead the Press Release
In Midland this morning, United States District Judge Robert A. Junell sentenced four Odessa residents to life in federal prison for their role in a Permian Basin drug distribution scheme involving firearms and resulting in 2014 murder of Sean Michael Lamb announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist and Odessa Police Chief Timothy Burton.
On April 10, 2015, jurors convicted 40-year-old Raymond Hernandez Olgin, Jr., 34–year-old Rudolfo Romero Parades, 40-year-old Stacey Louise Castillo and 32–year-old Anthony Ryan Gonzales of conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.
Liz Sanchez Hernandez, age 35, and her 18-year-old son, Brian Adan Hernandez, co-defendants who pleaded guilty to related federal charges prior to jury selection, are currently serving federal prison terms. On July 2, 2015, Liz Hernandez was sentenced to 20 years in federal prison for murder during the course of a drug trafficking crime. On the same day, Brian Adan Hernandez was sentenced to 41 months in federal prison after pleading guilty to the drug conspiracy charge. Judge Junell also ordered all of the defendants to jointly and severally pay $5,861 restitution.
Evidence presented at trial revealed that the defendants were involved in the abduction and murder of Sean Michael Lamb because they suspected that Lamb and others had stolen a large amount of “crystal” methamphetamine from Liz Hernandez and her brother, 34-year-old Ruben James Hernandez.
On May 13, 2014, Odessa Police responded to a “shots fired” call in the alley behind #30 Neta Place in Odessa. There they discovered Lamb’s body with multiple gunshot wounds to the head and torso. Evidence presented during trial revealed that 35–year-old Noe Garcia Galan, accompanied by Olgin and Paredes, shot and killed Lamb for stealing the crystal methamphetamine. Jurors found this act to be a first degree premeditated murder.
Testimony during trial revealed that Castillo not only participated in the drug distribution operation as well as the murder of Lamb, but on the evening of May 14, 2014, she and Gonzales drove Ruben Hernandez to the international border in Presidio, TX, so he could escape into Mexico in exchange for an introduction to a narcotics supplier she could use in the future.
“The senseless murder of 22-year-old Sean Lamb over a dispute about methamphetamine was the product of depraved thinking, completely out of proportion to his suspected transgression. These defendants are fully deserving of the sentences. Such anti-social conduct is unacceptable,” stated United States Attorney Richard L. Durbin, Jr.
Noe Galan and Ruben Hernandez remain fugitives. They are charged by indictment with conspiracy to possess with intent to distribute a controlled substance, possession of a firearm in relation to a drug trafficking crime, and murder during the course of a drug trafficking crime.
“This case serves as an example of cooperative, professional law enforcement. I would like to thank our Federal and State law enforcement partners for their vital assistance. These convictions send the message that violent crime in our City will not be tolerated. Special thanks to the U.S. Attorney’s Office for the tireless effort in seeking justice,” stated Odessa Police Chief Timothy Burton.
This indictment resulted from an investigation conducted by the Odessa Police Department and the FBI with assistance from Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS), Texas Rangers, and the U.S. Border Patrol. Assistant United States Attorney William F. Lewis, Jr., and former Assistant United States Attorney John Klassen prosecuted this case on behalf of the Government.