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31 July 2015
Convicted Felons Face Life in Federal Prison after Federal Jury Convicts Them on Hobbs Act and Firearms OffensesRead the Press Release
DALLAS – Two men from Duncanville and Mesquite, both convicted felons, were convicted yesterday by a federal jury on an array of federal charges stemming from their armed robberies of several fast-food restaurants in the Dallas area in early 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Jesse Lee Bell, 32, and Deundrae Lyndell Miller, 24, were each convicted on four counts of interference with commerce by robbery, one count of attempted interference with commerce by robbery; five counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence, and one count of being a felon in possession of a firearm.
The government presented evidence at trial that the defendants committed the following armed robberies in North Texas:
June 2, 2014 Whataburger, 501 E. Highway 67, Duncanville
June 4, 2014 Whataburger, 961 W. Beltline Rd., DeSoto
June 7, 2014 Whataburger, 3200 N. Town East Blvd., Mesquite
June 19, 2014 Jack-In-The-Box, 1020 W. Davis, Dallas
June 24, 2014 Whataburger, 2943 N. Galloway Avenue, Mesquite
In addition, the government presented evidence that the defendants, both convicted felons, each possessed a firearm on June 24, 2014.
Each defendant faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine for each robbery conviction. Each of the firearm offenses carries a maximum statutory penalty of life in federal prison and a $250,000 fine. The felon in possession count carries a statutory maximum sentence of 10 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Duncanville, DeSoto, Mesquite and Dallas Police Departments.
Assistant U.S. Attorneys Andrew Wirmani and John Kull are prosecuting the case.
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Collinsville Resident Pleads Guilty to Mail Fraud and Aggravated Identity TheftRead the Press Release
Jeffrey C. Brown, 35, of Collinsville, Illinois, entered pleas of guilty to Conspiracy to Commit Mail Fraud (in a scheme to obtain money and property through the use of unauthorized access devices through the commission of identity theft) and to Aggravated Identity Theft, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Brown faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving his sentence, as well as mandatory restitution for the offense of Conspiracy to Commit Mail Fraud. Brown faces a mandatory consecutive two year prison sentence for the offense of Aggravated Identity Theft. Sentencing has been scheduled for November 17, 2015.
As part of the plea, Brown admitted stealing mail out of mailboxes. The stolen mail mater contained means of identification of other persons that included names, dates of birth and Social Security numbers. As part of the conspiracy, Brown and a co-conspirator used that information to apply for and obtain credit cards of other persons without authorization. The credit cards were then used to make purchases. Some of the fraudulently obtained items were then shipped or mailed to the residence of Brown and/or the co-conspirator.
Because Brown previously violated conditions of pretrial release by cutting off a GPS tracking device and not returning home, he has been detained, that is, held without bond since his arrest.
The prosecution is the result of an investigation conducted by the Collinsville Police Department, the Postal Inspection Service, the Internal Revenue Service/Criminal Investigations, and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Chicago Man Sentenced for Drug ConspiracyRead the Press Release
Allen J. Redmond, 51, of Chicago, Illinois, was sentenced on July 30, 2015, to a total of 84 months in prison on one count of a four-count indictment charging him with Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Following his prison sentence, Redmond will be on federal supervised release for 5 years and was ordered to pay a fine of $500, as well as a $100 special assessment. An Order for forfeiture was entered in the amount of $500,000.
Evidence in Court showed that between approximately January 2010 and January 2013, Redmond was involved in an organization which engaged in a conspiracy to distribute and possess with the intent to distribute cocaine.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations.
This case was investigated by the Drug Enforcement Administration, MEGSI, and the Illinois State Police, and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Centralia Couple Plead Guilty to Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Franklin J. Johnson, 32, and his wife, Deanna A. Johnson, both of Centralia, Illinois, pled guilty on July 30, 2015, to all charges brought against them in an indictment returned by a Federal Grand Jury in November 2014. The Johnsons were both charged with Conspiracy to Manufacture and Distribute Methamphetamine (Count 1), Distribution of Methamphetamine (Counts 2 and 3 for Franklin, and Count 3 for Deanna), and Possession of Chemicals, Products and Materials with the Intent to Manufacture Methamphetamine (Count 4). The Conspiracy operated from January 2014, through August 13, 2014, in Clinton and Marion Counties. The remaining crimes took place in Marion County.
Count 1 carries a penalty of not less than 5 years, and up to 40 years in federal prison, not more than a $5 million fine, and at least 4 years’ supervised release to follow imprisonment. Counts 2 and 3 carry a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. Count 4 carries a maximum penalty of 20 years in prison, a $250,000 fine, and 3 years’ supervised release. All counts require an assessment of $100.
Information leading to the charges against Franklin and Deanna Johnson was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department. The Marion County State’s Attorney’s Office supported the investigation and prosecution. The case is being handled by Assistant United States Attorney Kit Morrissey.
Buncombe Co. Man Sentenced to More Than 10 Years in Prison on Armed Robbery and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Anthony Lamont Hill, 31, of Fletcher, N.C., was sentenced today to 121 months in prison for his role in the 2013 armed robbery of a Dollar General store in Woodfin, N.C., announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Senior U.S. District Judge Graham Mullen also sentenced Hill to three years of supervised release and ordered him to pay $4,750 as restitution.
Acting U.S. Attorney Rose is joined in making today’s announcement by Dewey “Craig” Chillcott, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Brett Holloman of the Woodfin Police Department.
According to filed court documents and today’s sentencing hearing, in August 2013, Hill robbed at gunpoint a Dollar General store located in Woodfin. Court records show that Hill and his accomplice entered the store right before closing time. According to court records, Hill and his conspirator ordered two store employees to remove most of their clothing and proceeded to tie them up. Hill and his accomplice attempted to destroy the store’s security system, before fleeing with approximately $2,500 in cash they had taken from the store’s register, court records show. Hill pleaded guilty in December 2014 to one count of Hobbs Act robbery and one count of possessing and brandishing a firearm during and in relation to a crime of violence.
Hill remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and the Woodfin Police Department. The prosecution for the government was handled by Assistant U.S. Attorney John D. Pritchard of the U.S. Attorney’s Office in Asheville.
Boyd County Woman Convicted of Defrauding Social Security Administration Out of $280,000Read the Press Release
ASHLAND — An Ashland, Ky., couple has been convicted by a jury of crimes related to a scheme to defraud the Social Security Administration (SSA) and the Kentucky Medicaid Program, out of hundreds of thousands of dollars over the course of 15 years.
Diana Lynn Ball, 57, was convicted on Wednesday of one count of Supplemental Security Income (SSI) fraud, one count of Medicaid fraud, one count of theft of government property and one count of making a false statement. Her husband, Lawrence Ball, was convicted of one count of making a false statement.
Evidence at the trial established that, from 1996 until December of 2013, Diana Ball intentionally concealed her true living arrangement from the SSA, in order to fraudulently collect SSI and Medicaid benefits.
According to testimony, Ball repeatedly told the SSA she had separated from her husband and was not sharing living expenses. In reality, Ball had been living with her husband and was receiving financial support from him. Had the SSA been aware of the true living arrangement, Ball would not have been eligible to receive approximately $280,000 in benefits. Diana Ball claimed an insanity defense at trial.
SSI is an income assistance program designed to provide financial assistance to elderly and disabled individuals who meet the program’s eligibility requirements. Kentuckians who are eligible for SSI also qualify for benefits under the Kentucky Medicaid Program.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Guy P. Fallen, Special Agent in Charge, Social Security Administration, Office of Inspector General, jointly announced the conviction.
The investigation was conducted by the SSA, Office of Inspector General. Assistant U.S. Attorney Laura K. Voorhees is prosecuting this case on behalf of the federal government.
Sentencing for the defendant is scheduled for November. The charges carry a maximum of five years in prison. However, the court must consider the U.S. Sentencing Guidelines and the federal statutes before imposing a sentence.
Baraga Man Sentenced to 70 Months in Federal Prison for Distribution of CocaineRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced that James Frederick Shelifoe, 43, of Baraga, Michigan, was sentenced in U.S. District Court to 70 months’ imprisonment for distribution of cocaine. In addition to the prison term, Shelifoe was also ordered to serve three years of supervised release upon the completion of his term of incarceration.
In 2014, the Safe Trails Taskforce, which is comprised of the Federal Bureau of Investigation, the Michigan State Police, and the Bureau of Indian Affairs, initiated an investigation into drug activity in the area of Baraga, Michigan. The investigation identified Shelifoe as a major cocaine dealer and established that during the preceding seven years he had distributed approximately 23 kilograms of cocaine in the western Upper Peninsula. He was indicted in December 2014 and pled guilty on February 19, 2015. In imposing the sentence, U.S. District Judge R. Allan Edgar emphasized the need to protect the public and to deter others from emulating Shelifoe’s criminal behavior.
The Keweenaw Bay Indian Community Tribal Police and the Safe Trails Taskforce investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
Adams County Man Sentenced to 15 Months Imprisonment for Submitting False Tax Refund Claims to IRSRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mitchell Orewiler, age 34, of Adams County, was sentenced yesterday in U.S. District Court in Harrisburg to 15 months’ imprisonment by United States District Court Judge Sylvia H. Rambo for filing false claims with the Internal Revenue Service (IRS) relating to refunds.
According to United States Attorney Peter Smith, in April 2009, Orewiler filed an amended 2006 and 2007 Federal Income Tax return and a 2008 Federal Income Tax return. Based on false 1099 forms, Orewiler attached to these three returns, Orewiler made a claim to a refund amount of approximately $506,000. As a result, he received approximately $324,000 from the IRS to which he was not entitled. In addition to the prison term, Judge Rambo ordered Orewiler to pay restitution in the amount of $324,000.
Orewiler was indicted by a federal grand jury in March 2014, as a result of an investigation by the Internal Revenue Service, Criminal Investigation. He pleaded guilty to the charges in April 2015.
The case was prosecuted by Assistant U.S. Attorney Joseph J. Terz.
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30 July 2015
Utah Man Sentenced in Chinese Magnesium SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul Jr. announced today that Eldon Bott, 67, of Bringham City, UT, who pleaded guilty conspiracy to commit money laundering, was sentenced to two years probation by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to forfeit $55,660.00 and pay a $5,000 fine.Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant and Gregory Magness arranged to become a source of supply for magnesium used in the production of countermeasure flares. Bott thereafter entered into an agreement with ESM Group, Inc., whereby he was compensated based on the amount of magnesium ESM sold for the production of countermeasure flares.
Between December 2003 and continuing through October 2006, the defendant sold magnesium powder used in the production of countermeasure flares for the United States Department of Defense. During this time period, the Department of Defense had a restriction that the magnesium used to produce countermeasure flares for the Department of Defense could not be from a foreign source. Aware of this restriction, the defendant knew that the magnesium blend that had been and continued to be sold for use in the production of countermeasure flares for the DoD contained atomized magnesium from China. Bott prepared certificates, relied on by the DoD, that misrepresented the supplied magnesium.
In April 2010, Gregory Magness, Justin Magness, William Nehill, Charles Wright, and Eldon Bott were charged with participating in a conspiracy to import Chinese magnesium into the United States. All defendants now stand convicted.
The sentencing is the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of J. Michael Kennedy, Acting Special Agent in Charge, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, and the Department of Defense Criminal Investigative Service, under the direction of Edward T. Bradley, Special Agent in Charge, Northeast Field Office.
United Kingdom Man Sentenced to Prison for Two Separate Fraud ConspiraciesRead the Press Release
HOUSTON - Marc T. Duchesne, 53, of London, was sentenced today to 97 months in federal prison on federal charges stemming from separate schemes involving financial fraud in Texas and the District of Columbia, announced Kenneth Magidson, U.S. Attorney for the Southern District of Texas, and Vincent H. Cohen Jr., Acting U.S. Attorney for the District of Columbia.
Duchesne pleaded guilty May 11, 2015, to one count of conspiracy to commit wire fraud in the in Texas case and one count of conspiracy to commit securities fraud and wire fraud in the unrelated case that had originated District of Columbia. Duchesne entered both pleas before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia.
The plea, which was contingent upon the court’s approval, called for a prison sentence of 91 to 97 months. Judge Walton accepted the plea and sentenced Duchesne accordingly. In addition, as part of the plea agreement, Duchesne is to pay a total of $4,543,261 ($2,455,531 and $2,087,730 in the Texas and District of Columbia cases, respectively).
According to the government’s evidence in the Texas case, Duchesne and his co-conspirators engaged in a scheme from 2000 to 2005 that involved the selling of fraudulent liability insurance policies to apartment complexes, condominium associations, bars, restaurants and other businesses throughout the United States and Caribbean. One company that purchased the insurance was Shoreline Cruises Inc. which operated a 40-foot tour boat called the Ethan Allen on Lake George, N.Y. The tour boat operator discovered its insurance policy was fictitious after the Ethan Allen sank on Oct. 2, 2005, in a tragic accident that claimed the lives of 20 elderly tourists. The total loss was $2,455,531.
Four others have also been convicted in that case. Christopher Purser pleaded guilty to conspiracy to commit wire fraud, while Edmund Benton, Malchus Irvin Boncamper and Robert Steve Mills pleaded to conspiracy to launder money. Purser received a sentence of 188 months, while Boncamper is serving a 97-month-term. Benton and Mills were both ordered to serve 120 months of federal imprisonment.
In the District of Columbia case, Duchesne engaged in a conspiracy from May 2002 through October 2002 to defraud investors by fraudulently creating Nationwide Capital Corporation (publicly traded as NCCN), and then artificially driving up its stock price. Unbeknownst to the U.S. Securities and Exchange Commission (SEC) or investors, Duchesne and his co-conspirators owned and controlled vast amounts of the stock. They employed tactics such as bid manipulation, false SEC filings and false press releases to effectuate their scheme. The National Association of Securities Dealers estimated losses to investors to be in excess of $2 million.
The case in Texas was investigated by Internal Revenue Service - Criminal Investigation with assistance from Homeland Security Investigations and the Texas, New York and California Departments of Insurance. During this four-year investigation, the U.S. government also received extensive and valuable assistance from the governments of St. Kitts and Nevis and also St. Vincent and the Grenadines. Investigators also received valuable assistance from the governments of The Bahamas, Nicaragua, The Philippines and Australia. Assistant U.S. Attorneys John Lewis and Belinda Beek prosecuted the case.
The case in the District of Columbia was investigated by the FBI’s Washington Field Office and the SEC. Assistant U.S. Attorneys Mervin A. Bourne Jr. and Lionel André prosecuted that case. Assistance was provided by Paralegal Specialists Corinne Kleinman and Krishawn Graham.
United Kingdom Man Sentenced to 97 Months in Prison for Two Separate Fraud ConspiraciesRead the Press Release
WASHINGTON – Marc T. Duchesne, 53, of London, England, was sentenced today to 97 months in prison on federal charges stemming from separate schemes involving financial fraud in the District of Columbia and Texas, announced Vincent H. Cohen, Jr., Acting U.S. Attorney for the District of Columbia, and Kenneth Magidson, U.S. Attorney for the Southern District of Texas.
Duchesne pled guilty on May 11, 2015, to one count of conspiracy to commit securities fraud and wire fraud in the District of Columbia case and one count of conspiracy to commit wire fraud in the unrelated case that had originated in Texas. Duchesne entered both pleas before the Honorable Reggie B. Walton in the United States District Court for the District of Columbia.
The plea, which was contingent upon the court’s approval, called for a prison sentence of 91 to 97 months. Judge Walton accepted the plea and sentenced Duchesne accordingly. In addition, as part of the plea agreement, Duchesne is to pay a total of $4,543,261 ($2,087,730 and $2,455,531 in the District of Columbia and Texas cases, respectively). Following completion of his prison term, Duchesne is to be placed on three years of supervised release.
According to the government’s evidence, in the District of Columbia case, Duchesne engaged in a conspiracy from May 2002 through October 2002 to defraud investors by fraudulently creating Nationwide Capital Corporation (publicly traded as NCCN), and then artificially driving up its stock price. Unbeknownst to the U.S. Securities and Exchange Commission (SEC) or investors, Duchesne and his co-conspirators owned and controlled vast amounts of the stock. They employed tactics such as bid manipulation, false SEC filings, and false press releases to effectuate their scheme. The National Association of Securities Dealers estimated losses to investors to be in excess of $2 million.
In the Texas case, Duchesne and his co-conspirators engaged in a scheme from 2000 to 2005 that involved the selling of fraudulent liability insurance policies to apartment complexes, condominium associations, bars, restaurants and other businesses throughout the United States and Caribbean. One company that purchased the insurance was Shoreline Cruises Inc. which operated a 40-foot tour boat called the Ethan Allen on Lake George, N.Y. The tour boat operator discovered its insurance policy was fictitious after the Ethan Allen sank on Oct. 2, 2005, in a tragic accident that claimed the lives of 20 elderly tourists. The total loss was $2,455,531.
Four others have also been convicted in the Texas matter. Christopher Purser pled guilty to conspiracy to commit wire fraud, while Edmund Benton, Malchus Irvin Boncamper and Robert Steve Mills pled guilty to conspiracy to launder money. Purser received a sentence of 188 months, while Boncamper is serving a 97-month-term. Benton and Mills were both ordered to serve 120 months of federal imprisonment.
The case in the District of Columbia was investigated by the FBI’s Washington Field Office and the SEC. Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Lionel André prosecuted that case. Assistance was provided by Paralegal Specialists Corinne Kleinman and Krishawn Graham.
The case in Texas was investigated by Internal Revenue Service - Criminal Investigation with assistance from Homeland Security Investigations and the Texas, New York and California Departments of Insurance. During this four-year investigation, the U.S. government also received extensive and valuable assistance from the governments of St. Kitts and Nevis and also St. Vincent and the Grenadines. Investigators also received valuable assistance from the governments of The Bahamas, Nicaragua, The Philippines and Australia. Assistant U.S. Attorneys John Lewis and Belinda Beek prosecuted the case.
Two more charged in $54 million stock fraud caseRead the Press Release
Two criminal informations were filed charging Kieran Kuhn, 33, of Port Washington, N.Y., and Kona Jones Barbera, 35, of Asheville, N.C, each with one count of conspiracy to commit securities fraud and wire fraud, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Kuhn and Barbera conspired with Zirk de Maison and others to defraud investors and potential investors in several public issuers, including Kensington Leasing, Ltd., Casablanca Mining, Ltd., Lustros, Inc., and Gepco Ltd., (the manipulated companies), by issuing millions of shares to themselves at little or no cost and then artificially controlling the price and volume of traded shares by, among other means, paying undisclosed commissions to brokers, former brokers, and boiler-room operators and promoters such as Kuhn and Barbera, for soliciting investors to make investments in, and fraudulently concealing the ownership interests of, the manipulated companies. This took place between April 26, 2011, and September 18, 2014, according to the information.
Little or no portion of the investments went to fund the operations of the manipulated companies. Rather, de Maison, Kuhn, Barbera and their co-conspirators used most of the investments to enrich themselves, according to the information.
For each of the manipulated companies, de Maison and other co-conspirators controlled a substantial number of outstanding shares through their personal companies, co-conspirators, and associates over which they had influence and control. Kuhn owned and operated a boiler room called Small Cap Resources in New York City, where he employed promoters such as Barbera to cold call and solicit potential investors to purchase shares of the manipulated companies. Zirk de Maison and others dictated what stocks Kuhn and Barbera pushed. The cold calls to potential investors typically coincided with favorable press releases or other information that Zirk de Maison caused to be released, according to the information.
Kuhn and Barbera touted the manipulated companies using high-pressure sales tactics and misrepresentations about the value of the companies and their stock. The boiler room promoters did not disclose that Zirk de Maison and other co-conspirators paid them commissions on the sale of Zirk de Maison’s and other co-conspirator’s stock to the investors, either on the open market or through private placements, according to the information.
de Maison and his co-conspirators caused more than $54 million to be invested in the purchase of stock in the manipulated companies and caused a loss to investors in the amount of approximately $27 million from the scheme. de Maison profited through the fraudulent scheme relating to the companies’ stocks. de Maison received and embezzled approximately $30 million in investor monies. Kuhn received and embezzled approximately $2.6 million. Barbera received and embezzled approximately $251,920, according to the information.
The informations were filed by Assistant U.S. Attorneys Christos N. Georgalis and Adam Hollingsworth after an investigation by agents of the Federal Bureau of Investigation.
If convicted, the defendants’ sentences will be determined by the Court after a review of factors unique to the cases, including the defendant's prior criminal record, if any, the defendant's role in the offenses, and the characteristics of the violations. In all cases the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Texas Men Sentenced to Prison for Roles in Organized Crime Racketeering ConspiracyRead the Press Release
CAMDEN, N.J. – Two Texas men who were convicted along with a member and an associate of the Lucchese organized crime family of La Cosa Nostra (LCN) were sentenced today to prison terms for their respective roles in a racketeering conspiracy and related offenses, U.S. Attorney Paul J. Fishman announced.
William Maxwell, 56, of Houston, Texas, was sentenced to 20 years in prison; his brother, John Maxwell, 63, of Dallas, Texas, was sentenced to 10 years in prison. The Maxwells, along with Nicodemo S. Scarfo, 50, of Galloway, New Jersey, and Salvatore Pelullo, 48, of Philadelphia, were convicted in July 2014 of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before U.S. District Judge Robert B. Kugler, who imposed the sentences today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Since 1989, Scarfo has been a member of the Lucchese family. As a member, he was required to earn money and participate in the affairs of the Lucchese family. Pelullo was an associate of the Lucchese family.
In April 2007, Scarfo, Pelullo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with people beholden to Scarfo and Pelullo, including the Maxwell brothers. Once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel $12 million to themselves, Scarfo and Pelullo through fraudulent legal services and consulting agreements.
The indictment also named as conspirators Scarfo’s father, Nicodemo D. Scarfo (Scarfo Sr.) the imprisoned former boss of the Philadelphia LCN family; and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.
In addition to the prison term, Judge Kugler sentenced each of the Maxwells to three years of supervised release and ordered them to pay restitution $14 million each. Scarfo and Pelullo were each sentenced to 30 years in prison earlier this week.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.
Defense counsel:
William Maxwell: Michael N. Huff Esq., Philadelphia
John Maxwell: Mark W. Catanzaro Esq., Mount Holly, New Jersey
Two Plead Guilty to Operating Cranston, R.I., Meth LabRead the Press Release
PROVIDENCE, R.I. – Nicholas Selser, 33, and Michael Fortes, 48, of Cranston, R.I., have pleaded guilty in federal court to charges related to the manufacture of methamphetamine (meth) inside a residence at the D’Evan Manor housing complex in Cranston, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Michael Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
Selser and Fortes pleaded guilty as charged in a grand jury indictment returned in March 2015, to one count each of conspiracy, knowingly manufacturing methamphetamine, possession of pseudoephedrine with the intent to manufacture methamphetamine and possessing equipment to manufacture methamphetamine.
Fortes, who entered his guilty plea on Wednesday, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on October 9, 2015. Selser, who pleaded guilty on June 29, 2015, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 18, 2015.
According to court documents and information presented to the court, Cranston Police, the R.I. DEA Drug Task Force and a DEA Clandestine Laboratory Enforcement Team executed a court authorized search of the D’Evan Manor apartment on February 18, 2015, and seized various chemicals, supplies and items used in the manufacture of meth.
Evidence was seized which indicated that the defendants had manufactured meth inside the apartment of the densely populated complex approximately eleven times on prior occasions. The defendants admitted to the court that they used the “one pot” method to manufacture meth, a simple but potentially dangerous method of manufacturing meth in approximately one hour. The manufacture of methamphetamine is often times a dangerous process which may result in explosion or fire.
Selser and Fortes have been detained in federal custody since their arrest on February 18, 2015.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Plead Guilty to Drug Conspiracy in LaconiaRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced today that Roger Perkins, 31, of Methuen, Massachusetts and Windyann Plunkett, 32, of Laconia, New Hampshire pleaded guilty to conspiracy to possess with the intent to distribute and to distribute 28 grams or more of cocaine base (“crack”) and quantities of cocaine. Perkins was additionally charged with being a prohibited person in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. Perkins and Plunkett appeared before United States District Court Judge Landya B. McCafferty to enter their guilty pleas.
According to documents that were filed in United States District Court, beginning on or around January 1, 2014, Perkins conspired with Plunkett and others to distribute narcotics from a residence he maintained with Plunkett located at 23 Gale Avenue, Laconia, New Hampshire. During the conspiracy, Plunkett would distribute the narcotics from the residence when Perkins was unavailable. On March 25, 2014, Perkins was arrested by the Laconia Police Department after he was located outside of 23 Gale Avenue and found to be in possession of crack cocaine and cocaine. A subsequent search of the residence resulted in the seizure of additional quantities of crack cocaine, cocaine, currency, and four firearms, all but one which were loaded, from in and around a safe stored in a bedroom closet. As a result of a prior 2005 felony drug conviction, Perkins is prohibited for life under federal firearm laws from possessing firearms.
Perkins’ sentencing hearing has been scheduled for November 2, 2015. Perkins’ plea agreement calls for a joint recommendation of 147 months of imprisonment. Plunkett’s sentencing hearing has been scheduled for March 6, 2015. Both face up to 40 years imprisonment. Plunkett’s sentence will be determined by the advisory sentencing guidelines which will likely generate a sentencing range far below the maximum penalty.
The case was investigated by the Laconia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Jennifer Davis.
Two People Charged in Scheme to Steal 94,000 Debit and Credit Cards from Michaels’ Stores in 19 StatesRead the Press Release
NEWARK, N.J. – Two people were charged today for allegedly participating in a large-scale conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores in 19 states and then use that information to make fraudulent withdrawals from the customers’ bank accounts.
Angel Angulo, 25, of Riverside, California, and Crystal Banuelos, 28, of Bloomington, California, are each charged by indictment with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Agnulo was arrested in California and was scheduled to appear before U.S. Magistrate Judge David Bristow in Riverside federal court. Banuelos remains at large.
According to the indictment:
Angulo, Banuelos, and others allegedly installed on point of sale (POS) terminals at Michaels devices that acquired customers’ bank account and personal identification number (PIN) information. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.
The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.
From April 2011 to May 2011, Angulo, Banuelos and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money from automated teller machines (ATMs) from hundreds of bank accounts. On May 14, 2011, Angulo and Banuelos possessed 179 counterfeit cards in New Jersey. They allegedly stole more than $420,000 from financial institutions and attempted to obtain at least $129,000 more.
The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory penalty of two years in prison served consecutively to any other sentence.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David Beach in Philadelphia for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless proven guilty.
Two Miami-Dade County Residents Pled Guilty to Possessing Stolen Personal Identification Information at Fort Lauderdale-Hollywood International AirportRead the Press Release
Two Miami-Dade County residents pled guilty today for their participation in a stolen identity tax fraud scheme based on information discovered while they were boarding a flight at the Fort Lauderdale-Hollywood International Airport.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Godfrey Teekah, Jr., 28, and Phillip Collins, 29, both of Miami Gardens, each pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) and 2.
According to court documents, the defendants were stopped while attempting to board a flight at Fort Lauderdale-Hollywood International Airport in February 2013. Teekah was found in possession of nine debit cards embossed with names other than his own, and $4,365 in U.S. currency. Collins was in possession of one debit card in someone else’s name. Two computers were also found in the defendants’ possession. A search of Teekah’s computer revealed photographs of handwritten notes containing personal identification information (PII), IRS employer identification numbers, and IRS website access logs. A search of Collins’ computer revealed temporary internet files for “get my prepaid card,” “irs.gov” and “gfx-prepaid-cards.” A search of Teekah’s bag produced three additional debit cards, along with manila envelopes containing hundreds of individuals’ PII including names, dates of birth and Social Security numbers. In total, the defendants unlawfully possessed PII belonging to over three hundred individuals. Both Teekah and Collins were aware that false tax returns would be filed using the PII and that the debit cards were used to obtain the fraudulent tax refunds.
Sentencing for both defendants is scheduled for October 9, 2015 at 9:00 a.m. before United States District Judge James I. Cohn. The defendants face a maximum statutory sentence of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the BSO. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Men Charged with Engaging in Eastern Seaboard Outlet Store Burglary SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on July 28, 2015, a federal grand jury in New Haven returned an indictment charging ALIONIS PEREZ, 39, a citizen of Cuba last residing in New Jersey, and YOANDRYS CUE, 29, a citizen of Cuba last residing in Florida, with engaging in a conspiracy to burglarize outlet stores in six states between August and November 2013.
As alleged in the indictment:
On August 2, 2013, PEREZ, CUE and others traveled from New Jersey to Connecticut. On August 3, 2013, PEREZ and CUE broke into the Fossil store located in Clinton, Connecticut, disabled the alarm system and stole more than $5,000 in property. Following the burglary, PEREZ, CUE and others returned to New Jersey with the stolen merchandise.
On August 18, 2013, PEREZ and others attempted to break into the Movado store located in Kittery, Maine.
On September 19, 2013, PEREZ and CUE broke into the Fossil store located in Miramar Beach, Florida, and stole more than $5,000 in watches.
On October 4, 2013, PEREZ and CUE broke into the Fossil store located in Hagerstown, Maryland, and stole more than $5,000 in watches.
On October 24, 2013, PEREZ and CUE broke into the Fossil store located in Grove City, Pennsylvania, and stole more than $5,000 in watches.
On November 22, 2013, PEREZ, CUE and others traveled from New Jersey to Massachusetts and stole a van. On November 23, 2013, PEREZ, CUE and another individual broke into the Michael Kors store in Lee, Massachusetts, disabled the alarm system and stole more than $5,000 in watches and bags. The conspirators then traveled from Massachusetts, disposed of the stolen van in Staten Island, New York, and returned to New Jersey with the stolen merchandise.
The indictment charges PEREZ and CUE with one count of conspiracy, which carries a maximum term of imprisonment of five years and a fine of up to $250,000, and one count of interstate transportation of stolen property, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000
PEREZ has been detained in federal custody since August 2014 after his arrest in Tennessee on a separate charge of interstate transportation of stolen property.
CUE is currently incarcerated in New Jersey.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Clinton (Conn.) Police Department, Kittery (Maine) Police Department, Walton County (Fla.) Sheriff’s Office, Washington County (Md.) Sheriff’s Office, Pennsylvania State Police, Lee (Mass.) Police Department and Berkshire County (Mass.) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Heather Cherry.
This matter is assigned to U.S. District Judge Michael P. Shea in Hartford.
Twenty Individuals Charged with Narcotics Trafficking Involving Firearms in the BronxRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging 20 defendants with participating in a conspiracy to distribute large quantities of heroin and crack cocaine in the vicinity of Hoe Avenue and Aldus Street in the Bronx. Six of the 20 defendants were also charged with possessing firearms in furtherance of the narcotics trafficking conspiracy. Several of the defendants charged in the Indictment were involved in a recent shooting in which a member of the conspiracy used a handgun to fire shots at two individuals – who luckily were not struck by the gunfire – in front of an apartment building on Aldus Street. Fifteen of the defendants named in the Indictment are in federal custody and are expected to be arraigned in Manhattan federal court before U.S. Magistrate Judge Henry Pitman. Fourteen of those defendants were taken into federal custody today, and one was already in federal custody on a separate criminal case pending in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the twenty defendants charged today were part of a dangerous drug trafficking crew that terrorized a Bronx neighborhood by peddling heroin and crack cocaine in apartment buildings with families and children, just a block from a public school. As the indictment alleges, this crew protected its turf with guns, not afraid to shoot at people in front of a Bronx apartment building, as one of the defendants is alleged to have done in May. Thanks to the outstanding work of the FBI and the NYPD, the residents of that Bronx neighborhood are safer today.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The FBI remains committed to protecting our community by targeting and removing violent drug distributors and their guns from our neighborhoods. As alleged herein, the defendants committed their illegal acts near a school and surrounded by families. With no regard for innocent lives, they brazenly carried and fired their weapons on crowded New York City streets. We thank the New York City Police Department and the United States Attorney's Office for sharing our commitment through solid partnerships and strong joint investigations.”
NYPD Commissioner Bratton said: “There is no place in our communities for narcotics trafficking and the violence associated with this criminal enterprise. I would like to commend the NYPD investigators, the agents of the FBI, and the prosecutors of the U.S. Attorney’s Office whose work in this investigation brought these individuals to justice.”
As alleged in the Indictment and other court documents unsealed today in Manhattan federal court***:
From May 2014 through July 2015, the twenty defendants named in the Indictment – specifically, RAFAEL OJEDA, 51, CALVIN OJEDA, 24, JONATHAN OJEDA, 22, SERVANDO JOSE GOMEZ, 41, HECTOR TIRADO, 22, TRAVIS PROFIT, 28, ANGEL SEPULVEDA, 35, EDUARDO VAZQUEZ, 23, JASON PEREZ, 24, TREVIS BOWENS, 25, JHOVY DIONIZIO, 27, CHRISTIAN DUMES, 33, CHRISTIAN RAMOS, 26, PAQUITO RODRIGUEZ, 56, GISETTE RIVERA, 56, SAMUEL PALMER, 20, JOSE COLON, 48, ANTOINE HENDERSON, 28, ADRIEL PONCE, 25, and CHRISTOPHER RICHARDSON, 22 – participated in a conspiracy to sell controlled substances, including heroin and crack cocaine, in the vicinity of Hoe Avenue in the Bronx. Specifically, the Indictment charges these twenty defendants with conspiring to distribute and possess with intent to distribute at least one kilogram of mixtures and substances containing a detectable amount of heroin and an unspecified quantity of mixtures and substances containing cocaine base in a form commonly known as “crack.” Six of the twenty defendants – namely, CALVIN OJEDA, JONATHAN OJEDA, GOMEZ, PROFIT, VAZQUEZ and PEREZ – are also charged with possessing firearms in furtherance of the narcotics trafficking conspiracy.
During the time period charged in the Indictment, members of the conspiracy sold large quantities of heroin and crack in the vicinity of Hoe Avenue in the Bronx, about one city block from a public school. Members of the conspiracy sold heroin and crack from stairwells and other common areas in apartment buildings where families with children reside, and in private apartments that have been converted into drug stash houses in such buildings, among other locations. Multiple members of the conspiracy used firearms in connection with their narcotics trafficking. On or about May 29, 2015, several of the defendants charged in the Indictment were involved in a shooting in which one of the defendants used a handgun to fire shots at two people in front of an apartment building on Aldus Street.
* * *
Of the twenty defendants named in the Indictment, the fourteen defendants charged only with participating in the narcotics trafficking conspiracy face mandatory minimum prison terms of 10 years and maximum prison terms of life. The remaining six defendants, who are charged both with participating in the narcotics trafficking conspiracy and also with possession of firearms in furtherance of that conspiracy, face mandatory minimum prison terms of fifteen years and maximum prison terms of life. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of the FBI and NYPD.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Samson Enzer and Jared Lenow are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
###
15 Cr. 487 (GBD).
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin, and an unspecified quantity of crack cocaine
All twenty of the defendants named in the Indictment:
RAFAEL OJEDA
CALVIN OJEDA
JONATHAN OJEDA
SERVANDO JOSE GOMEZ
HECTOR TIRADO
TRAVIS PROFIT
ANGEL SEPULVEDA
EDUARDO VAZQUEZ
JASON PEREZ
TREVIS BOWENS
JHOVY DIONIZIO
CHRISTIAN DUMES
CHRISTIAN RAMOS
PAQUITO RODRIGUEZ
GISETTE RIVERA
SAMUEL PALMER
JOSE COLON
ANTOINE HENDERSON
ADRIEL PONCE
CHRISTOPHER RICHARDSON
Life in prison
Mandatory minimum: 10 years in prison
Possession of firearms in furtherance of the above-referenced narcotics conspiracy
Six of the twenty defendants named in the Indictment:
CALVIN OJEDA
JONATHAN OJEDA
SERVANDO JOSE GOMEZ
TRAVIS PROFIT
EDUARDO VAZQUEZ
JASON PEREZ
Life in prison
Mandatory minimum: 5 years in prison, to be imposed consecutively to any other sentence
***As the introductory phrase signifies, the text of the Indictment and other court papers referenced herein, and the description of those materials set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Topeka Man Indicted on Federal Firearm ChargeRead the Press Release
TOPEKA, KAN. - A Topeka man was indicted Wednesday on a federal firearms charge, U.S. Attorney Barry Grissom said.
Royelle Lamont Miller, 35, Topeka, Kan., is charged with one count of unlawful possession of a firearm. The crime is alleged to have occurred July 17, 2015, in Topeka, Kan. The indictment alleges Miller possessed a Ruger nine millimeter pistol even though he was prohibited from doing so because of felony convictions in 2012 (flee/attempt to elude police), 2006 (attempted sale of a narcotic) and 1997 (aggravated battery).
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
OTHER INDICTMENTS
Dante Rovon Peppers, 37, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 18, 2015, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Daimon Sentrell Jackson, 26, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 25, 2015, in Topeka, 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 Duston Slinkard is prosecuting.
Santos Benjamin Ramos-Valdez, 28, who is in custody in the Dickinson County Jail, is charged with one count of possession with intent to distribute powder cocaine. The crime is alleged to have occurred July 6, 2015, in Dickinson County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Dickinson County Sheriff and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
Jose Antonio Nunez-Aguilar, 24, Kansas City, KS, and Gerardo Rene Garcia-Rodrigues, 39, Kansas City, KS, are charged with one count of conspiring to distribute methamphetamine. The crime is alleged to have occurred from January through June 29, 2015 in the Kansas City metropolitan area.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three convicted on heroin related chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three defendants from last month’s 41-person Baltimore-to-West Virginia heroin trafficking indictment were convicted in federal court.
Craig Rhodes, 46, of Chambersburg, PA, James Wesley Faircloth, 35, of Martinsburg, WV, and Roma Michelle Bland, 37, also of Martinsburg, WV, each pled guilty on Wednesday to heroin distribution charges, United States Attorney William J. Ihlenfeld, II, announced.
Rhodes admitted that he conspired to distribute heroin in West Virginia, Maryland, and Pennsylvania from November 2014 through February 2015. Faircloth and Bland each admitted to traveling from West Virginia to Baltimore, Maryland to purchase heroin and then returning to West Virginia to sell the heroin they obtained.
Rhodes faces up to 20 years in prison for “Conspiracy to Distribute Heroin.” Faircloth and Bland each face up to 5 years in prison for “Aiding and Abetting Interstate Travel in Aid of Racketeering.” Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government. The matters were investigated by the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
U.S. Magistrate Judge Robert W. Trumble presided.
Three Swiss Banks Reach Resolutions under Justice Department's Swiss Bank ProgramRead the Press Release
Banks Will Collectively Pay Penalties of More than $8.4 Million and Continue to Cooperate with Department
The Department of Justice announced today that PKB Privatbank AG, Falcon Private Bank AG and Credito Privato Commerciale in liquidazione SA (CPC) have reached resolutions under the department’s Swiss Bank Program.
“Swiss banks continue to lift the veil of secrecy that for decades has assisted U.S. individuals in willfully evading their U.S. tax obligations, often through the use of sham structures and trusts established in foreign jurisdictions,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “The department’s prosecutors and the IRS are actively following these leads to countries across the globe.”
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:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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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.
PKB Privatbank AG was founded in 1958 and has its head office in Lugano, Switzerland. It also maintained offices in Bellinzona, Zurich, Geneva and Lausanne, Switzerland. PKB was aware that some U.S. taxpayers who had opened and maintained accounts at PKB were not complying with their U.S. income tax and reporting obligations. PKB offered a variety of traditional Swiss banking services that it knew would, and in certain instances did, assist U.S. clients in concealing assets and income from the Internal Revenue Service (IRS). These services included code name or numbered accounts and hold mail services, pursuant to which PKB would hold all mail correspondence for a particular client. These services allowed U.S. clients to conceal their identities and minimize the paper trail associated with the undeclared assets and income they held at PKB in Switzerland.
PKB also employed a variety of other means or conduct that it knew or should have known would assist U.S. taxpayers in concealing their PKB accounts, including:
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referring U.S. taxpayers to an outside service provider to establish an offshore structure for purposes of holding an undeclared account at PKB;
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assisting U.S. taxpayers in transferring assets from accounts being closed at PKB to other PKB accounts held by a non-U.S. relative or other non-U.S. parties;
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assisting U.S. beneficial owners in transferring assets from accounts being closed at PKB to accounts at other banks in Switzerland;
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opening accounts for U.S. taxpayers who had left other banks being investigated by the department, including UBS; and
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providing credit cards or debit cards linked to undeclared accounts held in the name of an offshore trust, foundation or company that was beneficially owned by one or more U.S. taxpayers.
In certain cases, U.S. clients of PKB, with the assistance of their advisors, would create an entity, such as a Liechtenstein foundation, a Panamanian corporation or a British Virgin Islands corporation, and pay a fee to third parties to act as corporate directors. Those third parties, at the direction of the U.S. client, would then open a bank account at PKB in the name of the entity or transfer assets from an account at another Swiss or other foreign bank. In such cases involving a non-U.S. entity, PKB was aware that a U.S. client was the true beneficial owner of the account. Despite this, PKB would obtain from the entity’s directors an IRS Form W-8BEN or equivalent bank document that falsely declared that the beneficial owner of the PKB account was not a U.S. taxpayer. In some cases, the U.S. client or a related party also held a power of attorney or other signature authority with respect to the PKB account, thereby permitting the U.S. client to act directly with respect to the account and assets held therein, notwithstanding the corporate form of the accountholder. Ultimately, the use of such offshore structures by U.S. taxpayer clients provided an additional layer of confidentiality and further assisted them in concealing their beneficial ownership of their PKB accounts and evading their U.S. tax and information reporting obligations.
Since Aug. 1, 2008, PKB had 244 U.S.-related accounts, both declared and undeclared, with an aggregate maximum balance of approximately $328.8 million. PKB will pay a penalty of $6.328 million.
Falcon Private Bank AG was founded in 1965 by American International Group Inc. (AIG), and is headquartered in Zurich. Falcon has branches in Geneva, Hong Kong and Singapore, and representative offices in Abu Dhabi, Dubai and London. Since April 2009, Falcon has been owned by aabar Investments. The majority shareholder of aabar is the International Petroleum Investment Company, a sovereign wealth fund owned by the government of Abu Dhabi.
Through its managers, employees and others, Falcon knew that some U.S. taxpayers who had opened and maintained accounts at Falcon were not complying with their U.S. income tax and reporting obligations. Falcon offered a variety of standard Swiss banking services, including hold mail and code name or numbered account services, which it knew could assist, and did assist, its U.S. clients in the concealment of assets and income from the IRS.
The majority of Falcon’s U.S.-related accounts held since Aug. 1, 2008, were held in the names of entities or structures. Those accounts were almost entirely held by non-U.S. structures, such as offshore corporations or trusts. Typically, the beneficial owners of these structures created a legal entity, such as a Panamanian corporation, and paid third parties to act as the corporate “directors.” Those third parties would then open a bank account at Falcon in the name of the entity, allowing clients the ability to conceal their undeclared accounts from the IRS.
Falcon also:
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accepted instructions in connection with one U.S.-related account not to invest in U.S. securities and not to disclose the names of U.S. taxpayer-clients to U.S. tax authorities, including the IRS;
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issued checks, including series of checks, in amounts of less than $10,000, in seven cases, that were drawn on accounts of U.S. taxpayers or structures even though Falcon knew or had reason to know that the withdrawals were made to avoid triggering scrutiny; and
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provided cash (310,000 Swiss francs and $250,000) at account closure in July 2011 to a U.S. citizen with signatory authority over an account held in the name of a British Virgin Island nominee company.
Falcon maintained accounts for four British Virgin Islands nominee companies and two Panamanian nominee companies when Falcon knew or should have known that the Forms W-8BEN and Forms A associated with those accounts were contradictory, that the beneficial owners were U.S. citizens or residents, and that the structures were used by the U.S. taxpayer-clients to help conceal their identities from the IRS.
Since Aug. 1, 2008, Falcon also maintained three insurance segregated accounts for which it was aware that the policy holder or premium payer was a U.S. person. By placing and maintaining their assets in accounts held in the names of insurance companies and not the actual beneficial owner of the funds (a procedure known colloquially as an “insurance wrapper”), Falcon was aware that by operation of Swiss bank secrecy laws, the U.S. client’s ownership would not be disclosed to U.S. authorities, including the IRS.
Since Aug. 1, 2008, Falcon maintained a total of 84 U.S.-related accounts with an aggregate value of approximately $134 million. Falcon will pay a penalty of $1.806 million.
CPC is located in Lugano. It was established in 1973 as a trust company and received its Swiss banking license in 2004. On June 8, 2012, CPC’s Italian parent decided to exit the banking industry in Switzerland for reasons unrelated to U.S. tax issues and entered CPC into voluntary liquidation. Ernst & Young AG, Zurich (Ernst & Young) was appointed as liquidator. As of that date, with the assistance of three administrative personnel, Ernst & Young has engaged solely in carrying out the liquidation of CPC, including closing client accounts and disposing of assets pursuant to client instructions.
CPC offered a variety of traditional Swiss banking services, including numbered accounts and hold mail service. CPC also employed other means to assist U.S. taxpayers in concealing their undeclared accounts, including:
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opening an account for a U.S. taxpayer who had left UBS, which was being investigated by the department;
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opening an account for two U.S. taxpayers who had left a bank in Luxembourg because, according to their later voluntary disclosures, their external asset manager was concerned about bank secrecy in Luxembourg and indicated it would be safer to maintain an undeclared account in Switzerland; and
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providing a cash card linked to an undeclared account.
After March 13, 2012, and considering the implementation of the U.S. Foreign Account Tax Compliance Act (FATCA), CPC decided to discontinue all of its relationships with its U.S. customers and closed its last U.S.-related account in April 2013.
In the period between Aug. 1, 2008, and CPC’s liquidation, CPC had 16 U.S.-related accounts with an aggregate maximum balance of approximately $71 million. CPC will pay a penalty of $348,900.
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 agreement underscores the partnerships forged in this new era of international collaboration and further demonstrates IRS-CI’s commitment to pursuing offshore tax compliance,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “In today’s world, criminals can no longer hide assets behind a foreign border and assume that they will not be caught. You can be certain that IRS-CI will use the information we are gathering through these partnerships to vigorously pursue tax cheats around the world, no matter how remote the location.”
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 Mark W. Kotila, Carl D. Wasserman and John E. Sullivan, 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.
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Three Arrests Made in Kearney Credit Union RobberyRead the Press Release
United States Attorney Deborah R. Gilg announces the arrests of three men believed to be responsible for the October 17, 2014, robbery of the Kearney Eaton Employees Credit Union.
At approximately 9:15 a.m., two men wearing work clothes and white hardhats entered the credit union, located at 2600 East Highway 30. As one of the suspects produced what tellers believed to be a handgun, both suspects jumped the teller counter, moved the tellers and other employees into a nearby office, and forced them to lie on the office floor. The suspects then bound the tellers’ and employees’ hands, went to the vault, and removed approximately $122,891.15 in currency, and left the building.
Two of the suspects, Patrick Wigley (age 29) and Thomas Dunlap (age 28), were arrested in Chicago, Illinois, on Tuesday, July 28, 2015, and will be transported to Lincoln by the United States Marshal’s Office. The third suspect, Clifton Hudson (age 28), was arrested in Kearney, Nebraska, and will be taken to Lincoln on Thursday, July 30, 2015, for his initial appearance and arraignment.
The charges against the three defendants carry a term of imprisonment up to 25 years, a fine up to $250,000, up to to 3 years of supervised release, and a $100 special assessment.
This case was investigated by the Kearney Police Department, Buffalo County Sheriff’s Office, Nebraska State Patrol, and the Federal Bureau of Investigation.
Thirteen U.S. Soldiers Sentenced for Roles in Fraudulent Military Recruiting Bonus SchemeRead the Press Release
Thirteen members of the Texas Guard have received their sentences for their roles in wide-ranging bribery and fraud schemes that caused more than $170,000 in losses to the United States. Seven of those members were sentenced this past week in Houston.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
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Jammie Martin, 38, of Katy, Texas, and Michelle Davis, 34, of Houston, were convicted in February of this year after a five-day trial of conspiracy, bribery, wire fraud and aggravated identity theft. Martin was sentenced to serve 102 months in prison and Davis was sentenced to serve 57 months in prison.
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Vanessa Phillips, 37, of Houston, pleaded guilty to one count of conspiracy and one count of bribery and was sentenced to three years probation.
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Zaunmine “Orlando” Duncan, 39, of Douglasville, Georgia, pleaded guilty to one count of conspiracy, one count of bribery and one count of aggravated identity theft. He was sentenced to serve 70 months in prison.
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Annika Chambers, 29, of Houston, and Lashae Hawkins, 29, of San Antonio, pleaded guilty to one count of conspiracy and one count of bribery. Chambers was sentenced to serve six months in prison. Hawkins received one year and one day in prison.
- Christopher Renfro, 27, of Houston, pleaded guilty to one count of conspiracy, one count of bribery, one count of aggravated identity theft and two counts of wire fraud. He was sentenced to serve 36 months in prison.
In June, six other members of the Texas Guard were sentenced for their roles in the scheme.
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Michael Rambaran, 52, of Pearland, Texas, pleaded guilty to one count of conspiracy, one count of bribery and one count of aggravated identity theft. He was sentenced to serve 60 months in prison.
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Edia Antoine, 29, and Ernest A. Millien III, 51, both of Houston, and Melanie Moraida, 35, of Pearland, pleaded guilty to one count of conspiracy and one count of bribery. Each received 12 months and one day in prison.
Elisha Ceja, 28, of Barboursville, West Virginia, and Kimberly Hartgraves, 30, of League City, Texas, pleaded guilty to one count of conspiracy and one count of bribery. Ceja was sentenced to serve nine months in prison and Hartgraves received probation.
U.S. District Judge Lee H. Rosenthal in the Southern District of Texas imposed the prison terms and also ordered all 13 defendants to pay restitution. One remaining defendant, Danielle Applin 29, of Harker Heights, Texas, who previously pleaded guilty to one count of conspiracy and one count of bribery, is scheduled to be sentenced on Sept. 2, 2015, in Houston.
In approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. to administer the Guard Recruiting Assistance Program (G-RAP). Through this program, a participating soldier, known as a recruiting assistant, could receive bonus payments for referring another individual to join the National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, recruiting assistants were required to create online accounts.
According to the evidence presented at trial and in connection with various guilty pleas, Phillips and Davis, both of whom participated in the G-RAP as recruiting assistants, conspired with Martin, a recruiter, to defraud the program by falsely claiming that they were responsible for referring potential soldiers to join the National Guard. The trial evidence showed that Martin used his position to obtain the names and Social Security numbers of potential soldiers which he provided to recruiting assistants so that they could use the information to obtain fraudulent recruiting referral bonuses. The evidence at trial showed that, in exchange for the information, Martin, who organized and led the scheme, personally received approximately $15,000 in payments from the recruiting assistants. This scheme resulted in more than $30,000 in losses to the National Guard Bureau.
In a separate scheme that resulted in an additional $70,000 in losses, recruiting assistants Antoine, Millien, Moraida and Renfro admitted to paying Rambaran, a recruiter who organized and led the scheme, for the personal information of potential soldiers. They then used that information to obtain fraudulent bonuses by falsely claiming they referred those individuals to join the National Guard. Rambaran admitted that, in exchange for the recruit information, he personally received a total of approximately $29,000 in payments from the recruiting assistants.
In connection with his guilty plea in a scheme he organized and led, Duncan, a recruiter, admitted he personally received approximately $24,000 in payments from recruiting assistants in exchange for personal information of potential soldiers. Those recruiting assistants – Ceja, Chambers, Hartgraves and Hawkins – admitted to paying Duncan for the information and using it to obtain fraudulent bonuses by falsely claiming they referred those individuals to join the National Guard. This scheme resulted in another $70,000 in losses to the National Guard Bureau.
The cases were investigated by the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. These cases are being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
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Thirteen U.S. Soldiers Sentenced for Roles in Fraudulent Military Recruiting Bonus SchemeRead the Press Release
HOUSTON - Thirteen members of the U.S. National Guard Bureau have received their sentences for their roles in wide-ranging bribery and fraud schemes that caused more than $170,000 in losses to the United States. Seven of those members were sentenced this past week in Houston.
U.S. Attorney Kenneth Magidson of the Southern District of Texas and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
- Jammie Martin, 38, of Katy, and Michelle Davis, 34, of Houston, were convicted in February of this year after a five-day trial of conspiracy, bribery, wire fraud and aggravated identity theft. Martin was sentenced to serve 102 months in prison, while Davis received 57 months.
- Vanessa Phillips, 37, of Houston, pleaded guilty to one count of conspiracy and one count of bribery and was sentenced to three years of probation.
- Zaunmine “Orlando” Duncan, 39, of Douglasville, Georgia, pleaded guilty to one count of conspiracy, one count of bribery and one count of aggravated identity theft. He was sentenced to serve 70 months in prison.
- Annika Chambers, 29, of Houston, and Lashae Hawkins, 29, of San Antonio, pleaded guilty to one count of conspiracy and one count of bribery. Chambers was sentenced to serve six months in prison. Hawkins received one year and one day in prison.
- Christopher Renfro, 27, of Houston, pleaded guilty to one count of conspiracy, one count of bribery, one count of aggravated identity theft and two counts of wire fraud. He was sentenced to serve 36 months in prison.
In June, six other members of the National Guard were sentenced for their roles in the scheme.
- Michael Rambaran, 52, of Pearland, pleaded guilty to one count of conspiracy, one count of bribery and one count of aggravated identity theft. He was sentenced to serve 60 months in prison.
- Edia Antoine, 29, and Ernest A. Millien III, 51, both of Houston, and Melanie Moraida, 35, of Pearland, pleaded guilty to one count of conspiracy and one count of bribery. Each received 12 months and one day in prison.
- Elisha Ceja, 28, of Barboursville, West Virginia, and Kimberly Hartgraves, 30, of League City, pleaded guilty to one count of conspiracy and one count of bribery. Ceja was sentenced to serve nine months in prison and Hartgraves received probation.
U.S. District Judge Lee H. Rosenthal in the Southern District of Texas imposed the prison terms and also ordered all 13 defendants to pay restitution. One remaining defendant, Danielle Applin 29, of Harker Heights, who previously pleaded guilty to one count of conspiracy and one count of bribery, is scheduled to be sentenced on Sept. 2, 2015, in Houston.
In approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. to administer the Guard Recruiting Assistance Program (G-RAP). Through this program, a participating soldier, known as a recruiting assistant, could receive bonus payments for referring another individual to join the National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, recruiting assistants were required to create online accounts.
According to the evidence presented at trial and in connection with various guilty pleas, Phillips and Davis, both of whom participated in the G-RAP as recruiting assistants, conspired with Martin, a recruiter, to defraud the program by falsely claiming that they were responsible for referring potential soldiers to join the National Guard. The trial evidence showed that Martin used his position to obtain the names and Social Security numbers of potential soldiers which he provided to recruiting assistants so that they could use the information to obtain fraudulent recruiting referral bonuses. The evidence at trial showed that, in exchange for the information, Martin, who organized and led the scheme, personally received approximately $15,000 in payments from the recruiting assistants. This scheme resulted in more than $30,000 in losses to the National Guard Bureau.
In a separate scheme that resulted in an additional $70,000 in losses, recruiting assistants Antoine, Millien, Moraida and Renfro admitted to paying Rambaran, a recruiter who organized and led the scheme, for the personal information of potential soldiers. They then used that information to obtain fraudulent bonuses by falsely claiming they referred those individuals to join the National Guard. Rambaran admitted that, in exchange for the recruit information, he personally received a total of approximately $29,000 in payments from the recruiting assistants.
In connection with his guilty plea in a scheme he organized and led, Duncan, a recruiter, admitted he personally received approximately $24,000 in payments from recruiting assistants in exchange for personal information of potential soldiers. Those recruiting assistants – Ceja, Chambers, Hartgraves and Hawkins – admitted to paying Duncan for the information and using it to obtain fraudulent bonuses by falsely claiming they referred those individuals to join the National Guard. This scheme resulted in another $70,000 in losses to the National Guard Bureau.
The cases were investigated by the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. These cases are being prosecuted by Assistant U.S. Attorney John Pearson of the Southern District of Texas and Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.
- Jammie Martin, 38, of Katy, and Michelle Davis, 34, of Houston, were convicted in February of this year after a five-day trial of conspiracy, bribery, wire fraud and aggravated identity theft. Martin was sentenced to serve 102 months in prison, while Davis received 57 months.
Tax Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
PHILADELPHIA – David Nixon, 50, of Philadelphia, PA, was sentenced today to 15 months in prison for preparing fraudulent income tax returns. U.S. District Court Judge Mary McLaughlin handed down the sentence for Nixon’s conviction, by a federal jury, on 63 counts of fraud. In addition to the prison term, Nixon must also serve six months of house arrest, followed by one year of supervised release, and must pay a $6,300 special assessment.
Evidence presented during the trial showed that Nixon, as the owner of Economy Tax Services at 3731 Stanton Street in Philadelphia, prepared materially false federal income tax returns for his clients for tax years 2007 through 2009. The fraudulent returns included credits for children, earned income credit, tuition and fees, residential energy efficiency credits, incorrect filing status, and false or falsely inflated Form 1040 Schedule A deductions for charitable contributions and employee business expenses. As a result of the false and fraudulent income tax returns prepared by Nixon, the government contended that the IRS was defrauded of more than $200,000 in fraudulently obtained refunds.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.
Seventh Defendant Indicted for Jewelry Store Heist that Included a Home Invasion Robbery, Carjacking and KidnappingRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment that adds a seventh defendant to the six already charged in connection with a conspiracy to rob a jewelry store. The superseding indictment also adds a home invasion robbery to the carjacking and kidnapping charges included in the original indictment. The superseding indictment was returned on July 28, 2015 and unsealed today.
The following individuals are charged in the superseding indictment:
Stanislav (Steven) Yelizarov, age 25, of Pikesville, Maryland
Alexsey (Losha) Sosonko, age 34, of Owings Mills, Maryland; Igor Yasinov, age 25, of Baltimore; Grigoriy (Greg) Zilberman, age 24, of Owings Mills; Peter Magnis, age 27, of Hydes, Maryland; Marat (Mike) Yelizarov, age 26, of Pikesville; and
Sorhib Omonov, age 27, of Baltimore (new defendant).The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to the six count superseding indictment, from November 2012, through February 2, 2013, the defendants planned and organized the robbery of an Owings Mills jewelry store, in order to sell the stolen goods for cash.
The superseding indictment alleges that on July 22, 2012, S. Yelizarov, Sosonko, Zilberman, M. Yelizarov, and others committed an armed home invasion robbery and stole 10 firearms for use in future criminal activity. During the robbery, the victim was bound and beaten with a handgun. On December 25, 2012, S. Yelizarov, Yasinov and others broke into a residence and stole two guns which they planned to use in the robbery of the jewelry store. Prior to the robbery, the defendants gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. According to the indictment, on January 16, 2013, as the employee was driving from Zilberman’s home, S. Yelizarov, Sosonko, Yasinov, and Magnis drove a rented SUV and used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms, the defendants allegedly removed the employee from his car. S.Yelizarov, Sosonko, Yasinov, and Magnis forcibly bound and blindfolded the employee, put him into the trunk of his own car and drove him to a predetermined location. According to the indictment, once at the location, S.Yelizarov, Sosonko, Yasinov, and Magnis brandished firearms and robbed the employee of the keys to the jewelry store and demanded the code to the jewelry store’s alarm system. The defendants threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. During the abduction and robbery the defendants allegedly wore masks and gloves to conceal their identities.
At approximately 3:52 a.m., the indictment alleges that S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, where M. Yelizarov and Omonov were stationed nearby to act as “look-outs.” S. Yelizarov and Sosonko allegedly used the employee’s key and the alarm code forcibly obtained from the employee to enter the jewelry store, where they stole jewelry, stones, and watches, valued at about $500,000.
The indictment alleges that over the next few days, S. Yelizarov sold a portion of the items stolen from the jewelry store, both in Maryland and in Brooklyn, New York, receiving in excess of $129,000 in cash, which S. Yelizarov divided among the conspirators and others. According to the indictment, at the direction of S. Yelizarov, M. Yelizarov, Sosonko, and others removed guns and other evidence of the crimes from S. Yelizarov’s residence.
The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and the kidnapping and for carrying and brandishing a firearm in relation to a crime of violence. The defendants each face 15 years in prison for the carjacking; and 20 years in prison for the robbery conspiracy and for the robbery. An initial appearance was held today for Omonov in U.S. District Court in Baltimore and he was detained pending a detention hearing scheduled for July 31, 2015, at 2:30 p.m. before U.S. Magistrate Judge Timothy Sullivan. No court appearance on the superseding indictment has been scheduled for the remaining defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Spencer Rogers, 51, of Buffalo, pleaded guilty to conspiracy to distribute more than five kilograms of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and $10,000,000 fine.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Rogers purchased cocaine from a source and distributed the cocaine to Antwan Steward, Michael Robertson and others for re-distribution in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Rogers was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. To date, 10 of the defendants have been convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately. In July 2015, a 28th defendant was also arrested.
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.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Rogers will be sentenced on November 2, 2015 at 1:00 p.m. before Judge Arcara.
Salina Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
WICHITA, KAN. - A Salina man was sentenced Wednesday to 10 years in federal prison for possessing child pornography, U.S. Attorney Barry Grissom said.
Cory Dale McQuillan, 37, Salina, pleaded guilty to one count of possession of child pornography. He had a prior conviction for aggravated indecent liberties with a child in a 1999 case in Dickinson County, Kan.
In his plea, he admitted that while he was on parole in 2013 he used a cell phone to receive images of child pornography, which he would keep for a short period of time before deleting. Investigators found child pornography on McQuillan’s laptop computer.
Grissom commended the Kansas Department of Corrections, Immigration and Customs Enforcement and Assistant U.S. Attorney Jason Hart for their work on the case.
Registered Child Sex Offender Sentenced to 262 Months for Trafficking in Child PornographyRead the Press Release
WILMINGTON, Del. – Rogelio “Roger” Cordero, age 58, of New Castle, Delaware, was sentenced today by United States District Judge Sue L. Robinson to 262 months in federal prison for Receipt of Child Pornography, in violation of federal law. Cordero also was sentenced to a life term of supervised release following his prison sentence. He also will be required to continue to register as a sex offender in any jurisdiction in which he lives, works, or attends school.
Cordero was previously convicted in Delaware of Unlawful Sexual Intercourse, Unlawful Sexual Penetration and Unlawful Sexual Contact Second Degree in 1992. Those crimes involved Cordero’s sexual abuse of two female minors over an 18-month period. He was sentenced to 18 years in Delaware state prison, and 5 years of probation following his release. He was also ordered to undergo approximately 85 months of sex offender treatment. He was released from custody in December 2006, and committed the offenses at issue in the current case while on state probation.
According to statements made and documents filed in court, Cordero came to the attention of the Delaware Child Predator Task Force (the “Task Force”) after it began an investigation into two other registered child sex offenders living in Delaware. That investigation began in October 2012, after the Task Force received a cybertip from the National Center for Missing and Exploited Children (NCMEC). The cybertip reported that an AOL user, subsequently identified as Cordero, had transmitted numerous emails containing child pornography using AOL’s email service.
On December 20, 2012, Task Force officers executed a search warrant at Roger Cordero’s New Castle residence, where they found computers, smartphones and other digital devices containing thousands of images of child pornography featuring mostly prepubescent and adolescent children. They also found that Cordero had been trading child pornography with David Pennington, another registered child sex offender whom Cordero had met while both were incarcerated in the Smyrna Correctional Institution for child sex offenses. The men shared the images of child pornography by mailing digital photographs saved to thumb drives back and forth to one another. They also found a small, concealable “pen” camera that Cordero had used to record explicit footage of a minor child changing clothes.
Later on the day of December 20, 2012, Task Force officers executed a state search warrant at Pennington’s Georgetown residence. Pennington, who was then wearing an electronic monitoring device due to a state probation violation, was present for the search. During the search, Task Force members recovered evidence relating to the mailing of USB “thumb drives” containing child pornography and handwritten child sexual abuse stories between Pennington and Cordero. Pennington also informed the officers that he would view child pornography mailed to him by Cordero with another registered sex offender, William Zimmerman, of Georgetown, Delaware.
On January 8, 2013, Task Force officers executed a state search warrant at Zimmerman’s Georgetown residence. They recovered several pieces of computer equipment found to contain hundreds of images of child pornography. The images featured children ranging in age from infancy to mid-teen being posed or engaged in sexual acts with adult males.
Cordero is now the third member of the group to be sentenced for child exploitation crimes. On October 11, 2013, David Pennington was sentenced to 28 years in prison by Delaware Superior Court Judge T. Henley Graves after pleading guilty to Dealing in Child Pornography, in violation of Delaware law. On April 22, 2014, William Zimmerman was sentenced to the mandatory minimum term of 15 years in federal prison by United States District Judge Gregory M. Sleet after pleading guilty to Receipt of Child Pornography.
Following the sentencing hearing, United States Attorney Charles M. Oberly III said: “Cases like this are all too prevalent today. Mr. Cordero’s sentence should prevent him from ever exploiting another child. To those who are following in Cordero’s path, law enforcement is closing in on you, and when caught you should expect to be successfully prosecuted and sentenced to lengthy prison terms.”
“Homeland Security Investigations and our Delaware law enforcement partners stand vigilant against those who commit such heinous crimes," said John Kelleghan, HSI Philadelphia special agent in charge. "It’s also another example of the extraordinary collaborative efforts among law enforcement in Delaware to protect the most vulnerable among us."
Col. Nathaniel McQueen, Jr., Delaware State Police superintendent stated, "The Delaware law enforcement community was utilized in bringing these three child predators to justice. This case revealed the most horrific images and videos of child sexcual exploitation. This investigation encompassed areas from New Castle County to Sussex County. Without the complete collaborative effort from the law enforcement community, this investigation would not have seen the successful service of justice that was issued against each child predator in this case."
This case, as well as those of Pennington and Zimmerman, was investigated by the Delaware State Police and the United States Department of Homeland Security, Homeland Security Investigations. All three cases were prosecuted by Assistant United States Attorney Edward J. McAndrew.
Public meeting Monday about applying for Community Police CommissionRead the Press Release
The Selection Panel for the Community Police Commission appointed by Mayor Frank G. Jackson will hold its second public meeting, Monday, August 3, 2015 at 6:00 pm at the offices of Hispanic Alliance, 3110 w. 25th St. Cleveland, OH 44109. The public meeting will consist of a brief presentation on the responsibilities of the Cleveland Community Police Commission and the application process. Members of the panel will respond to questions and comments from meeting participants regarding applicant eligibility, and the skills and areas of expertise the community would like to see represented on the Commission.
Application materials for the Cleveland Community Police Commission were released online on July 21, 2015 and are available on the Selection Panel website, https://www.clecpc.org. The Selection Panel website also contains background information about the Commission’s roles and responsibilities and a list of frequently asked questions pertaining to the application process. Links to the application are also available via the websites of the City of Cleveland and the U.S. Attorney’s Office for the Northern District of Ohio. The Selection Panel has made paper copies of the application available for pickup at Cleveland City Hall and all branches of the Cleveland Public Library. The Selection Panel is also working with community groups and faith-based organizations to facilitate the distribution of applications. Completed applications for the Commission must be submitted to the Selection Panel by August 6. Applications can be submitted online via https://www.clecpc.org, by email, U.S. postal mail, or in person to a secure drop-off box that is available at City Hall for the delivery of paper copies.
In addition to the 10 members recommended by the Selection Panel, the Commission will also include a member appointed by each of the three local police associations: the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield.
The appointed Community Police Commission will work to bring forward recommendations to the Mayor and Cleveland Division of Police on policies and practices that can help strengthen relations between the Cleveland police and the communities they serve. The commission will also issue progress updates to the community.
Prominent Basketball Trainer Sentenced to 4+ Years in Prison for FraudRead the Press Release
A 62-year-old Redmond, Washington man who trained high profile basketball players and at one time worked for the Seattle Supersonics was sentenced today in U.S. District Court in Seattle to 50 months in prison for fraud, announced U.S. Attorney Annette L. Hayes. STEPHEN BRUCE GORDON pleaded guilty in April 2015, admitting he defrauded approximately thirty victims of more than $4 million through a variety of interrelated schemes, each of which was based on lies. At the sentencing hearing U.S. District Judge Ricardo S. Martinez acknowledged Gordon’s contributions to the basketball community but said, “he used the game and his connections to people in it to take money from his victims…in his wake, he left financial ruin.”
“This defendant spun a web of lies, going so far as to have an associate impersonate government officials and a wealthy businessman to lull his victims,” said U.S. Attorney Annette L. Hayes. “Mr. Gordon traded on a well of goodwill in the community, but he poisoned that well with his lies and now has to live with the consequences of his actions.”
According to the plea agreement and other records filed in the case, between 2007 and 2013, GORDON solicited investments for a variety of schemes ranging from bringing an NBA franchise to Seattle, to supporting an Australian basketball league, to investing in Section 8 housing in the Southeast United States. GORDON employed a variety of lies to make his schemes seem legitimate and traded on his relationship with a prominent tech billionaire, and other respected professionals to make it appear he had significant backing for his proposed businesses. When investors started to get nervous about the money they had placed with GORDON, he paid an associate $29,000 to make telephone calls to various investors pretending to be a wealthy technology company executive, former Treasury Secretary Timothy Geithner and even former Attorney General Eric Holder. The calls were designed to “put off” or “lull” investors whose investments had been used to repay prior investors as part of the defendant’s Ponzi scheme.
In their sentencing memo prosecutors noted that GORDON’s “schemes all preyed on the relationships and trust that Gordon had meticulously established with his victims. The defendant may not have set out to create a scheme to get rich. He simply started telling small lies when early investments failed. At any point, he could have stopped the fraud. He never did. Small lies became big lies, and tens of thousands of dollars in losses became millions.”
Judge Martinez ordered GORDON into custody to immediately begin serving his sentence. GORDON is responsible for $4,009,143 in restitution to his victims.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Matthew Diggs.
Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
Peggy Holmes, 48, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for her mother, after her mother’s death in December 2010 until March 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $33,952.
If convicted, the defendant faces a term of imprisonment, a three‑year period of supervised release, restitution to the government of $33,952, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Indicted for Passing $17,900 in Counterfeit MoneyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Philadelphia man was indicted late yesterday by a federal grand jury in Harrisburg on a charge of allegedly passing counterfeit $100 bills in four central Pennsylvania counties between October 2014 and March 2015.
According to United States Attorney Peter Smith, Harvey Blake, age 46, of Philadelphia, Pennsylvania was charged in a one count indictment with passing $17,900 in counterfeit $100 bills in Dauphin, Franklin, York and Cumberland Counties. The bills were allegedly used to purchase merchandise at Home Depot, Lowes and Walmart stores in the four counties.
The case was investigated by the Harrisburg office of the United States Secret Service, and the police departments of Lower Paxton Township, Swatara Township, and Hampden Township, as well as the loss prevention personnel for the affected stores. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pembroke Man Pleads Guilty to Tax Evasion ChargesRead the Press Release
BOSTON – A Pembroke, Mass., man pleaded guilty today in U.S. District Court to tax charges related to his failure to pay taxes on more than $1.1 million he earned as a carpenter from 1998 through 2006.
Theodore Hammond, Jr., 61, pleaded guilty to two counts of tax evasion and seven counts of filing false tax returns. U.S. District Judge F. Dennis Saylor IV scheduled sentencing for Oct. 21, 2015.
Hammond was a self-employed carpenter for many years and, between 1998 and 2006, earned $1.1 million. During that same period, Hammond failed to timely file federal income tax returns and, when he did file, he reported zero income. As a result, Hammond owes taxes of $406,458, not including interest and penalties.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing false tax returns provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Robert E. O’Malley, Special Agent in Charge of the Treasury Inspector General for Tax Administration, New York Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sandra S. Bower of Ortiz’s Economic Crimes Unit and Christine Wichers of Ortiz’s Civil Division.
Operation to Take Down Montana-Canadian Drug Smuggling Organization Wins National AwardRead the Press Release
HELENA – The United States Attorney’s Office announces today that members of the White Rhino drug operation team are the recipients of a prestigious national award from the U.S. Department of Justice Organized Crime Drug Enforcement Task Forces (OCDETF) Program. The award, known as the National OCDETF Outstanding Investigation Award, is for Operation White Rhino, which involved the investigation of a large scale cocaine and ecstasy smuggling organization that trafficked drugs across the United States-Canadian border. The investigation resulted in the seizure of 441 kilograms of cocaine, 29 kilograms of ecstasy, approximately $380,000, 12 vehicles, and the arrest of 17 individuals both in the United States and Canada.
“Operation White Rhino is an outstanding example of achieving the goals of OCDETF’s mission,” said OCDETF Director Bruce Ohr, “The bringing together of so many federal, state, local and international law enforcement partners with the U.S. Attorney’s Office in a concerted effort to take down a major cross border drug trafficking business produced the kind of impact that no agency working alone could hope to achieve. In making this award, OCDETF recognizes the enormous amount of work performed and true cooperative spirit shown by the honorees. Their efforts have made the citizens of the U.S. and Canada safer from the ravages of drug trafficking and transnational organized crime.”
“The law enforcement professionals investigating and prosecuting this multi-agency international drug smuggling case overcame numerous operational challenges by maintaining a spirit of cooperation,” said U.S. Immigration and Customs Enforcement Director Sarah R. Saldaña. “Their flexibility allowed us to shut down a major drug trafficking organization that would otherwise still be in operation today. This should serve as a warning to other transnational criminal organizations that we will never let red tape stand in the way of justice.”
“We are pleased to announce this award and the diligent work it represents,” said Mike Cotter, U.S. Attorney for the District of Montana. “This was truly a significant effort that took down a prolific and transnational drug trafficking organization. This was a particularly dynamic investigation that can serve as a model for how to investigate and prosecute transnational crime. This project was an example of open communication, cooperation and collaboration demonstrating the ability to work together to resolve complex, sensitive cross-border law enforcement issues.”
The investigation involved more than 100 law enforcement officers working in Canada and America, specifically Los Angeles, California, Great Falls, Montana, Las Vegas, Nevada, Vancouver, British Columbia, and the Interior of British Columbia and South Western Saskatchewan. Twenty-five of the law enforcement officers who were at the core of the operation were honored with the award. Joseph Thaggard, Criminal Chief and Assistant U.S. Attorney in the Montana U.S. Attorney’s Office received the award, as well as law enforcement from Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the Public Prosecution Services of Canada, and the Canada Border Services Agency.
Six members of the drug smuggling organization, based in Vancouver, British Columbia, were indicted by a Federal Grand Jury in the United States for their role in a conspiracy to smuggle over 1,000 kilograms of cocaine from the U.S. into Canada. The drug smuggling operation was believed to have been responsible for smuggling the drugs using remote border crossing locations between designated ports of entry in Montana. Investigators and prosecutors in the U.S. and Canada faced numerous challenges in this operation, including the vastness and remoteness of the borders, coordinating numerous agencies within multiple jurisdictions, encryption methods used by subjects, and handling cross border undercover operations, witnesses and evidence.
Ohio Man Indicted for Receiving Grenade Fuzes in Blount CountyRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted an Ohio man for illegally receiving about 1,340 M228 grenade fuzes in Blount County last year, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
A one-count indictment filed in U.S. District Court charges JAMES WILLIAM COPLEY, 54, of Akron, Ohio, with knowingly receiving explosive materials on Oct. 22.
The M228 grenade fuzes are igniting fuzes meant for training grenades, which are not intended to project shrapnel. The fuzes, however, can be used with improvised grenades and explosive devices. ATF regulates M228 fuzes as low explosives and anyone selling or buying them is required to have a Federal Explosive License.
"Tight regulations on transactions involving any explosive material are required in order to protect public safety," Vance said. "That safety is threatened when anyone who has not obtained the proper federal license possesses explosives. We will actively pursue prosecution of those individuals," she said.
A Hayden man, Matthew Joseph Smith, pleaded guilty in federal court in June to selling about 1,340 M228 grenade fuses in October to someone who was not licensed to possess them. Smith owns Whispertech, an explosives materials dealer and training company.
The maximum penalty for receiving explosive material without a proper license is 10 years in prison and a $250,000 fine.
The ATF investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
New Orleans Man Sentenced in Marijuana and Firearm CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BILLY WASHINGTON, age 34, of New Orleans, was sentenced today after previously pleading guilty to a Bill of Information charging possession with intent to distribute marijuana and possession of a firearm by a convicted felon.
U.S. District Judge Nannette Jolivette Brown sentenced WASHINGTON to a term of imprisonment of twelve months and a day, to be followed by three years of supervised release, and a $200 special assessment.
According to court documents, Drug Enforcement Administration (“DEA”) agents executed a search warrant at WASHINGTON’s residence, a convicted felon, and recovered a semi-automatic pistol and approximately three-quarters of a pound of marijuana.
Court records revealed that WASHINGTON was convicted on May 19, 2003, of possession of heroin in Orleans Parish Criminal District Court. As such, he was prohibited from possessing firearms by both state and federal law.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Monroeville Man Guilty of Trafficking DrugsRead the Press Release
The United States Attorney, Kenyen R. Brown, announces that Frederick Miller was found guilty after a jury trial in Federal Court. The jury returned a guilty verdict on all charged counts, namely, Conspiracy to possess and distribution of more than 500 grams of Cocaine, 300 grams of Crack Cocaine and 100 pounds of Marijuana, Possession of Cocaine, Crack Cocaine and Marijuana. Miller was also convicted of possessing three firearms in furtherance of a drug trafficking crime in violation of 18 United States Code, Section 924(c)
Mr. Miller must immediately forfeit $28,417.00 cash.
This case was investigated by the 35th Judicial Circuit Task Force and the Federal Bureau of Investigation. This case was prosecuted Assistant U.S. Attorney Gregory A. Bordenkircher.
Miami -Dade County Resident Charged with Robbery of Postal Letter CarrierRead the Press Release
A Miami-Dade County resident was charged with robbery of a U.S. Postal Letter Carrier.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Yunior Blanco, 19, of Miami-Dade, was charged by criminal complaint with robbery of a postal employee, in violation of Title 18, United States Code, Section 2114(a).
According to allegations contained in the criminal complaint, Blanco robbed a U.S. Postal Letter Carrier of his arrow key while the carrier was delivering mail. Blanco then attempted to flee the crime scene. After a brief foot chase, Blanco was stopped by the postal carrier and several nearby bystanders who witnessed the pursuit.
“Letter carriers are government representatives who perform an important public service. The U.S. Attorneys’ Office is committed to working alongside federal and local law enforcement agencies, in our effort to identify and prosecute those who target and steal from government employees,” stated U.S. Attorney Wifredo A. Ferrer.
“Earlier this year, we asked South Florida residents to help us in keeping our letter carriers safe by taking a moment to look around when they see them” said U.S. Postal Inspector in Charge in Miami Ronald Verrochio, “it was just this kind of vigilance that helped apprehend this subject.”
U.S. Attorney Ferrer commended the efforts of the USPIS and the City of Miami Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan Kobrinski.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Device Manufacturer NuVasive Inc. to Pay $13.5 Million to Settle False Claims Act AllegationsRead the Press Release
California-based medical device manufacturer NuVasive Inc. has agreed to pay the United States $13.5 million to resolve allegations that the company caused health care providers to submit false claims to Medicare and other federal health care programs for spine surgeries by marketing the company’s CoRoent System for surgical uses that were not approved by the U.S. Food and Drug Administration (FDA), the Justice Department announced today. The settlement further resolves allegations that NuVasive caused false claims by paying kickbacks to induce physicians to use the company’s CoRoent System.
“The Justice Department is committed to holding medical device manufacturers accountable, which includes requiring that they follow all laws designed to ensure that medical devices are safe and effective,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is also imperative that manufacturers not improperly influence the selection of medical devices in order to ensure that these decisions are based on the needs and interests of patients, not on a physician’s own financial interests.”
The United States alleged that between 2008 and 2013, NuVasive promoted the use of the CoRoent System for surgical uses that were not approved or cleared by the FDA, including for use in treating two complex spine deformities, severe scoliosis and severe spondylolisthesis. As a result of this conduct, the United States alleged that NuVasive caused physicians and hospitals to submit false claims to federal health care programs for certain spine surgeries that were not eligible for reimbursement.
The settlement agreement also resolves allegations that NuVasive knowingly offered and paid illegal remuneration to certain physicians to induce them to use the CoRoent System in spine fusion surgeries, in violation of the federal Anti-Kickback Statute. The illegal remuneration consisted of promotional speaker fees, honoraria and expenses relating to physicians’ attendance at events sponsored by a group known as the Society of Lateral Access Surgery (SOLAS). SOLAS was allegedly created, funded and operated solely by NuVasive, despite its outward appearance of independence.
“Health care providers need to be free to make medical decisions without improper influence by material or incentives from manufacturers,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland. “A medical device manufacturer violates the law if it knowingly causes physicians to use its products for purposes that are not medically reasonable and necessary and to bill federal health insurance programs.”
“Defrauding Medicare and Medicaid by paying kickbacks to physicians and promoting uses not covered by Federal health care programs will not be tolerated,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG). “Settlements such as the one entered into today by NuVasive send a message to the medical device industry that such practices will be closely monitored.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Kevin Ryan, a former NuVasive sales representative. The act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Mr. Ryan will receive approximately $2.2 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with NuVasive was the result of a coordinated effort among the U.S. Attorney’s Office of the District of Maryland, the Civil Division’s Commercial Litigation Branch and the National Association of Medicaid Fraud Control Units. This matter was investigated by HHS-OIG, the Department of Defense’s Office of the Inspector General and the Office of Personnel Management’s Office of Inspector General, with assistance from the FDA’s Office of Chief Counsel and Office of Criminal Investigations.
The federal share of the civil settlement is $12,583,413.84, and the state Medicaid share of the civil settlement is $916,586.16. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States ex rel. Kevin Ryan v. NuVasive, Inc. (D. Md.).
Medical Device Manufacturer NuVasive Inc. to Pay $13.5 Million to Settle False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – California-based medical device manufacturer NuVasive Inc. has agreed to pay the United States $13.5 million to resolve allegations that the company caused health care providers to submit false claims to Medicare and other federal health care programs for spine surgeries by marketing the company’s CoRoent System for surgical uses that were not approved by the U.S. Food and Drug Administration (FDA). The settlement further resolves allegations that NuVasive caused false claims by paying kickbacks to induce physicians to use the company’s CoRoent System.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General Benjamin C. Mizer, of the Justice Department’s Civil Division; and Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Inspector General Jon Rymer of the U.S. Department of Defense, Office of Inspector General; and Inspector General Patrick E. McFarland of the Office of Personnel Management – Office of Inspector General.
“Health care providers need to be free to make medical decisions without improper influence by material or incentives from manufacturers,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland. “A medical device manufacturer violates the law if it knowingly causes physicians to use its products for purposes that are not medically reasonable and necessary and to bill federal health insurance programs.”
“The Justice Department is committed to holding medical device manufacturers accountable, which includes requiring that they follow all laws designed to ensure that medical devices are safe and effective,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is also imperative that manufacturers not improperly influence the selection of medical devices in order to ensure that these decisions are based on the needs and interests of patients, not on a physician’s own financial interests.”
“Defrauding Medicare and Medicaid by paying kickbacks to physicians and promoting uses not covered by Federal health care programs will not be tolerated,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Settlements such as the one entered into today by NuVasive send a message to the medical device industry that such practices will be closely monitored.”
The United States alleged that between 2008 and 2013, NuVasive promoted the use of the CoRoent System for surgical uses that were not approved or cleared by the FDA, including for use in treating two complex spine deformities, severe scoliosis and severe spondylolisthesis. As a result of this conduct, the United States alleged that NuVasive caused physicians and hospitals to submit false claims to federal health care programs for certain spine surgeries that were not eligible for reimbursement.
The settlement agreement also resolves allegations that NuVasive knowingly offered and paid illegal remuneration to certain physicians to induce them to use the CoRoent System in spine fusion surgeries, in violation of the federal Anti-Kickback Statute. The illegal remuneration consisted of promotional speaker fees, honoraria and expenses relating to physicians’ attendance at events sponsored by a group known as the Society of Lateral Access Surgery (SOLAS). SOLAS was allegedly created, funded and operated solely by NuVasive, despite its outward appearance of independence.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Kevin Ryan, a former NuVasive sales representative (United States ex rel. Kevin Ryan v. NuVasive, Inc. (D. Md.). The act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Mr. Ryan will receive approximately $2.2 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.8 billion through False Claims Act cases, with more than $15.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The federal share of the civil settlement is $12,583,413.84, and the state Medicaid share of the civil settlement is $916,586.16. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney Rod J. Rosenstein commended HHS-OIG, the Department of Defense’s Office of the Inspector General and the Office of Personnel Management’s Office of Inspector General, for their work in the investigation and thanked the FDA’s Office of Chief Counsel and Office of Criminal Investigations for their assistance. Mr. Rosenstein also recognized the work of the Civil Division’s Commercial Litigation Branch and the National Association of Medicaid Fraud Control Units in reaching this settlement. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas H. Barnard, Thomas F. Corcoran and Jason D. Medinger, and Senior Trial Counsel Colin Huntley of the U.S. Department of Justice’s Civil Division, who handled this matter.
Master of Cargo Vessel Charged with Operating Under InfluenceRead the Press Release
A master of a cargo vessel was charged with operating the boat while under the influence of alcohol.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Rear Admiral Scott Buschman, United States Coast Guard, District 7, made the announcement.
Anatoli Slepov, 50, a citizen of Lithuania, was charged in a criminal complaint filed in Ft. Lauderdale, with operating the vessel as it approached Port Everglades, in U.S. waters, while under the influence of alcohol, that is, while having a blood alcohol concentration of .04 or greater, in violation of Title 46, United States Code, Section 2302(c).
According to court records, Slepov was a master of the Wasaborg cargo vessel and as such had operational control of the ship when it was boarded by United States Coast Guard personnel for purposes of a port state control examination. During the examination, Coast Guard personnel observed Slepov behaving in an agitated manner, with glazed eyes, slurred speech, and a strong odor of alcohol coming from his person. Coast Guard personnel administered two blood alcohol tests to the defendant via breathalyzer. The first reading registered a content of .104, while the second reading registered a content of .108.
Following his initial appearance today before United States Magistrate Judge Patrick Hunt in Ft. Lauderdale, Slepov was ordered held in pre-trial detention pending a bond hearing that has been scheduled for August 4, 2015 at 11:00 a.m.
Mr. Ferrer commended the investigative efforts of the United States Coast Guard and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). The case is being prosecuted by Special Assistant U.S. Attorney Jeremy McCall.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Who Robbed Las Vegas Mini-Mart Convicted by JuryRead the Press Release
LAS VEGAS, Nev. – A convicted felon who robbed a Las Vegas mini-mart in July 2011 using a long-barreled shotgun, was convicted by a federal jury today of robbery and firearm counts and faces up to 34 years in prison, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Following a four-day jury trial, Tracey Brown, 40, of North Las Vegas, Nev., was convicted of one count of interference with commerce by robbery, one count of brandishing a firearm in relation to a crime of violence, and one count of felon in possession of a firearm. Brown is scheduled to be sentenced by U.S. District Judge Andrew P. Gordon on Wednesday, Oct. 28, 2015. A co-defendant, Teshae Gallon, pleaded guilty in 2013 to brandishing a firearm in furtherance of a crime of violence, and was sentenced to three years in prison.
“There are strong penalties in the federal system for felons who are convicted of possessing and using firearms in crimes of violence and for drug trafficking,” said U.S. Attorney Bogden. “Through our Project Safe Neighborhood initiative, we meet with local law enforcement regularly to review the cases involving repeat violent offenders to determine if they are more appropriately handled in the federal system, where there is no parole.”
According to court records and trial testimony, on July 26, 2011, Brown, armed with a long-barrel shotgun, robbed a gas station mini-mart located on S. Rainbow Boulevard in Las Vegas. After robbing the store, Brown got into a getaway car driven by Gallon. Their vehicle was stopped a short while later, and Brown fled. Brown was apprehended when a canine dog found him hiding under a bush.
Brown has six prior violent felony convictions in Nevada. In 1994, he was convicted of burglary and grand larceny auto while possessing a shotgun. In 2000, he was convicted of burglary with a deadly weapon and robbery with a deadly weapon, as well as conspiracy to commit robbery. In 2010, he was convicted of robbery. In 2015, he was convicted of multiple counts of first degree kidnapping, burglary with a deadly weapon, robbery with a deadly weapon, burglary and robbery.
This case was investigated by the FBI, the Las Vegas Metropolitan Police Department, and the Las Vegas Deputy City Marshal Unit as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorneys Daniel J. Cowhig and Crane M. Pomerantz.
Loomis Man and Corporation Plead Guilty to Conducting an Illegal Gambling BusinessRead the Press Release
SACRAMENTO, Calif. — Capital Sweepstakes Systems Inc., a corporation headquartered in Loomis, and Kevin Freels, 41, of Loomis, pleaded guilty today to conducting an illegal gambling business related to Internet sweepstakes cafés, United States Attorney Benjamin B. Wagner announced. As part of its plea agreement, Capital Sweepstakes agreed to forfeit over $1.5 million in profits generated through its illegal gambling business. These funds were previously seized by the United States in a related proceeding.[1]
“California and the federal government have enacted laws intended to regulate the gambling industry and protect the public,” said U.S. Attorney Wagner. “Today’s pleas are the result of Capital Sweepstakes’ attempt to avoid those laws while building a sprawling and lucrative enterprise based upon a purported sweepstakes game that was in fact the functional equivalent of a slot machine.”
“As exemplified by the elaborate and illegal fictions used by Capital Sweepstakes Systems, the FBI will investigate efforts to subvert lawful gambling regulations,” said Special Agent in Charge Monica Miller of the FBI’s Sacramento field office. “Thanks to a strong partnership between the FBI, the Internal Revenue Service – Criminal Investigation, and the California Bureau of Gambling Control, we were able to stop this criminal activity and deter others from circumventing the law.”
“Capital Sweepstakes profited by targeting low-income communities, misrepresenting their unregulated slot-machine style operations as legal enterprises and creating magnets for crime,” said Attorney General Kamala D. Harris. “My office is dedicated to combatting and dismantling illegal gambling operations statewide. I thank our Gambling Task Force and the Bureau of Gambling Control for their investigative work.”
According to court documents, from January 2013 to September 2014, Capital Sweepstakes provided software and hardware systems for Internet sweepstakes cafés throughout California. Freels had an office at the Capital Sweepstakes headquarters, was the president of the software company that provided the sweepstakes software, and received a significant portion of the revenues generated by Capital Sweepstakes. Freels assisted in overseeing operations and financial dealings at Capital Sweepstakes.
At Internet sweepstakes cafés, customers purchased sweepstakes entries, which were often loaded onto plastic cards with magnetic strips. The customers could then swipe the cards at specially programmed computer terminals inside the cafes and play a variety of gambling-themed games, with names such as Hot Luck Keno, Tropical Treasures, Dreamcatcher, Lucky Puppy, and Luck of the Irish. These games looked and sounded like casino-styled slot machines, and the results of the games revealed whether or not the customer “won” the sweepstakes. Customers were eligible to win cash prizes from the sweepstakes, which were paid at the location of play. The sweepstakes results were not actually dependent upon the outcome of the games, but were predetermined through the Capital Sweepstakes software. Capital Sweepstakes would later send an invoice to the location to receive a previously agreed upon percentage of its profits. Capital Sweepstakes was able to do this because it tracked the sweepstakes activity on its servers remotely. This type of online gaming was conducted entirely outside the state gambling regulatory scheme. In a decision issued last month, the California Supreme Court confirmed that such games are illegal.[2]
Many Internet sweepstakes cafés in Sacramento, West Sacramento, and Stockton used Capital Sweepstakes software. Based on bank records, Capital Sweepstakes also had operations in other states, including Hawaii and Texas.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Agents from the California Bureau of Gambling Control also provided assistance. Assistant United States Attorneys Jared Dolan, Christopher Hales, and Kevin Khasigian are prosecuting the case.
As part of a parallel civil settlement with the California Attorney General’s Office, Capital Sweepstakes Systems entered into a stipulated judgment of $700,000.
Kevin Freels and Capital Sweepstakes Systems Inc. are scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on November 5, 2015. Capital Sweepstakes faces a maximum statutory penalty of five years’ probation and a $500,000 fine. Freels faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
[1] 2:14-mc-00134-MCE
[2] People ex rel. Green v. Grewal, 61 Cal. 4th 544 (2015)
Long Island Man Sentenced to 55 Months for Stealing More Than $31 Million Dollars in A Wire Fraud Scheme Involving Sub-Prime MortgagesRead the Press Release
Earlier today, defendant Thomas Donovan, 67, was sentenced to 55 months of incarceration for his guilty plea to wire fraud conspiracy on May 31, 2013. The District Court also entered an order directing Donovan to forfeit more than $31 million that he received and to pay more than $31 million in restitution.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings and facts presented during the sentencing proceeding, Donovan was the co-owner of Private Capital Group that invested in sub-prime mortgages. Private Capital Group’s main investor was Ficus Investments, Inc., which invested more than $300 million. Rather than investing those funds as agreed upon, the owners of Private Capital Group, Thomas Donovan and Lawrence Cline, took more than $31 million for themselves and concealed that theft by providing his investors with false and misleading financial reports. Cline and Private Capital Group’s chief financial officer, Christopher Chalavoutis, previously pleaded guilty and have been sentenced.
“Under the guise of rehabilitating and reselling distressed mortgages, Donovan lied to his investors and stole their money. Donovan took advantage of the residential mortgage crisis for his personal financial gain, and he has now been held to account,” stated Acting United States Attorney Currie. Mr. Currie extended his grateful appreciation to the FBI, who led the government’s investigation.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Christopher Ott is in charge of the prosecution.
The sentence was imposed by the Honorable Joanna Seybert at the federal courthouse in Central Islip, New York.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
Thomas DONOVAN
Age: 67
Huntington, NYE.D.N.Y. Docket No. 12-CR-196
Leader and Members of Major Portsmouth Heroin Trafficking Organization Plead GuiltyRead the Press Release
NORFOLK, Va. – Alonzo Outten, 35, and Jermaine Jones, 38, of Portsmouth; Garnett Brown, 34, of Chesapeake; and Latina Jackson, 27, of Suffolk, Virginia, pleaded guilty this week for their involvement in a massive heroin trafficking operation. Outten faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison when he is sentenced on November 2, 2015.
Alonzo Outten, the head of the Outten organization, and six of his co-conspirators were indicted by a grand jury on July 8, 2015. In the early morning hours of July 14, 2015, search warrants were executed simultaneously on 14 properties in Portsmouth, Chesapeake and Suffolk by more than 250 law enforcement officials from three states and the District of Columbia. Nearly two weeks later, Outten and several of his co-conspirators pleaded guilty for conspiracy to manufacture, distribute, and possess with intent to distribute in excess of one kilogram of heroin.
According to the statement of facts in Outten’s case, he was the leader of an organization from November 2013 to July 2015 that managed the manufacture and distribution of between 30 and 90 kilograms of heroin (an estimated street value between $1.5 and $4.5 million dollars). Outten managed six mid-level drug operatives, who in turn managed approximately a dozen other individuals that either directly assisted or facilitated the trafficking and distribution of heroin.
Alonzo Outten supplied kilogram amounts of heroin to at least two Bloods gang sets: the Imperial Gangsta Bloods led by “godfather” Chris Smith a/k/a “Killa,” who pleaded guilty Tuesday, and the Gorilla Mafia Piru gang led by “godfather” Theodore Vann a/k/a “Flatline,” who pleaded guilty on June 25, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the pleas were accepted by U.S. District Judge Mark S. Davis.
This case was investigated by the FBI’s Norfolk Field Office and the Chesapeake Police Department with the assistance of the Portsmouth Police Department, the Virginia State Police, and the Naval Criminal Investigative Service. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-80 (Outten, et. al.); 2:15-cr-93 (Jackson); 2:15-cr-7 (Smith); and 2:15-cr-60 (Vann).
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Jacksonville Man Arrested and Charged with Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Jason Dean Barnes (39, Jacksonville) has been arrested and charged by a federal criminal complaint with receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison. His detention hearing is scheduled for August 3, 2015.
According to the criminal complaint, on July 29, 2015, FBI agents and other law enforcement officers executed a federal search warrant at Barnes’s residence in Jacksonville. During an interview, Barnes admitted to searching for, downloading, and viewing child pornography, and that he has struggled with this addiction for a number of years. A forensic examination of Barnes’s laptop revealed images depicting minors engaged in sexually explicit conduct that had been downloaded earlier that day.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Insurance Firm Operator Sentenced for Fraud and Tax EvasionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was sentenced today in U.S. District Court in Wilkes-Barre to 63 months’ imprisonment by United States District Judge A. Richard Caputo for wire fraud and income tax evasion.
According to United States Attorney Peter Smith, Joseph S. Hyduk, age 55, pleaded guilty to the charges in November 2014. Hyduk was indicted in August 2014.
Hyduk did business as BNA Financial Services, an insurance company which he operated from his home. During 2010 through 2012, Hyduk fraudulently diverted approximately $1 million dollars from his clients’ accounts to himself for his own personal use.
In addition to the prison term, Hyduk will be supervised by a probation officer for three years following his release from prison and will be required to pay restitution. A court order for restitution will be finalized within the next 60 days. Hyduk was ordered to report on August 17, 2015 to a federal prison to be designated later. As part of the case, the government also sought forfeiture of cash, real property and vehicles owned by Hyduk.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Michelle Olshefski.
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Hudson County, New Jersey, Man Charged with Sexually Exploiting Girl, Taking Pictures of the AbuseRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man is charged today with coercing a minor family member to engage in sexually explicit conduct while he photographed the abuse, U.S. Attorney Paul J. Fishman announced.
Felix Restitullo, 40, is charged by complaint with one count of sexual exploitation of a child and one count of possession of child pornography. He appeared this afternoon before U.S. Magistrate Steven C. Mannion in Newark federal court and remains in custody.
According to the criminal complaint:
Restitullo resided with his mother, who acted as caregiver to children, including a girl who is a member of Restitullo’s family. On March 13, 2014, as a result of an ongoing investigation into the sexual abuse of minor children, law enforcement officers interviewed the girl. During the interview, she told the officers that Restitullo had engaged her in sexual acts on prior occasions, which he photographed using a camera.
On March 13, 2014, Restitullo was arrested by the Hudson County Prosecutor’s Office for, among other things, aggravated sexual assault and endangering the welfare of the girl. After the arrest, officers lawfully obtained a camera, multiple computers and electronic storage media belonging to Restitullo from his bedroom. Approximately 13 images of child pornography, believed to be images of the girl’s sexual assault, were found on the storage media. Overall, officers found more than 1,500 images and 200 videos of child pornography, including images of child sexual abuse.
The sexual exploitation of children charge carries a maximum potential penalty of 30 years in prison, a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS), under the direction of Acting Special Agent in Charge Kevin Kelly, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Melissa M. Wangenheim of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Mario Blanch Esq., West New York, New Jersey