Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 11 June 2015
Department of Justice Announces 50 States and Territories Have Committed to Ending Prison RapeRead the Press Release
In the second year of the implementation of the standards set forth in the Prison Rape Elimination Act (PREA), 50 jurisdictions submitted statements of compliance or assurances that they commit to spend 5 percent of certain Department of Justice grant funds to come into compliance. In FY 2015, 10 states certified that they are in full compliance with the PREA standards. These states are Iowa, Maine, Mississippi, Missouri, New Hampshire, New Jersey, North Dakota, Oregon, Tennessee and Washington. In FY 2015, 40 jurisdictions submitted an assurance. In FY 2014, the first year of implementation of the PREA standards, 48 of the 56 jurisdictions subject to PREA were either in compliance or submitted assurances to spend 5 percent of certain grant funds to come into compliance. The department saw a significant increase in states that have attained full compliance this year. In FY2014 two states submitted certifications.
“The very hard work of implementing new policies and practices, and transforming cultures in confinement agencies and facilities in ways that promote the sexual safety of inmates, residents and detainees, is well underway,” said Assistant Attorney General Karol V. Mason of the Office of Justice Programs. “The large number of jurisdictions that submitted certifications and assurances this year to the Department of Justice, the significant numbers of agencies and facilities that are conducting PREA audits and the increasing support for PREA in the law enforcement and corrections fields suggest a building momentum. We are committed to increasing this momentum, and working with the remaining five states and the one territory that did not respond.”
Certifications, assurances and related documentation were submitted to the Bureau of Justice Assistance (BJA), a component of Department of Justice’s Office of Justice Programs (OJP), and are available at https://www.bja.gov/Programs/15PREA-AssurancesCertifications.pdf.
The PREA statute, which was passed in 2003 with unanimous support from both chambers of Congress, required the establishment of the national PREA standards for the detection, prevention, reduction and punishment of prison rape. The standards took effect on Aug. 20, 2012, and apply to federal, state and local confinement facilities which includes adult prisons and jails, juvenile facilities, lockups and community confinement facilities.
Understanding that the standards could take a number of years to fully implement, the PREA statute allows a governor whose state or territory is not yet in full compliance to submit an assurance to the Department of Justice that not less than 5 percent of certain Department of Justice grant funds will be used solely for the purpose of enabling the jurisdiction to achieve and certify full compliance with the standards in future years. A total of 56 jurisdictions are subject to PREA – 50 states, five territories and the District of Columbia. The six jurisdictions that are unwilling to commit department grant funds to implement the national PREA standards are subject to the loss of 5 percent of certain Department of Justice grant funds they would otherwise receive. In FY2014, eight jurisdictions were unwilling to commit department grant funds to implement the standards.
Information about grant funds impacted by PREA in FY 2014 and FY 2015 is available in the PREA section of BJA’s web page. This information includes lists of FY 2014 department grant reductions (in jurisdictions that submitted neither an assurance nor a certification) and reallocations (in jurisdictions that submitted an assurance) amounts by state and territory, and a summary of PREA implementation activities supported by FY 2014 Department of Justice reallocation grants. Department grant reduction and reallocation amounts for FY 2015, along with a summary of activities supported by reallocation grants, will be posted on BJA’s web page as soon as they are finalized.
To assist states and localities with implementation, BJA has funded the National PREA Resource Center to provide training and technical assistance for those in the field who are working to come into compliance with the standards. These resources are available at www.prearesourcecenter.org.
About the Office of Justice Programs (OJP)
OJP, headed by Assistant Attorney General Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: BJA, the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. To learn more about OJP, visit www.ojp.gov.
Couple Arrested for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Alfred Dasilva, 46, of Greece, NY and Sharon Sexton, 45, of Gates, NY, were arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the investigation began when a school resource officer employed by the Gates Police Department was informed by a school official that Sexton was taking nude photos of a female student. The ensuing investigation determined that Sexton sent these photos to her boyfriend, Alfred Dasilva. Sexton was interviewed by law enforcement and admitted to both taking the photos and then sending them to Dasilva. She told officers that she took the photos and sent them to Dasilva because he asked her to, and that Dasilva used the naked photos to “fantasize.”The complaint also states that federal investigators examined Dasilva’s cellphone and also located a video of a child performing oral sex on Dasilva. The complaint identifies Sexton as the person who took the video. Several online chats were also recovered from the cellphone in which Sexton and Dasilva graphically discussed engaging in sexual conduct with children.
One of the text messages from Dasilva to Sexton referred to “kids at school.” At the time, Sexton was employed as a daycare worker at a local child care facility. Dasilva is also being prosecuted by the Monroe County District Attorney’s Office for sexual acts involving a minor. Anyone with information regarding Dasilva or Sexton’s contact or attempted contact with minors should call the Federal Bureau of Investigation in Rochester at 585-546-2220.
The defendants made an initial appearance this afternoon before U.S. District Judge Charles J. Siragusa and are being detained. A detention hearing is scheduled for June 15, 2015 at 10:00 a.m. before U.S. Magistrate Judge Marian W. Payson.
The criminal complaint is the culmination of a joint investigation by the Gates Police Department and the Federal Bureau of Investigation Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
The fact that the defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Convicted Felon Sentenced to 10 Years in Federal Prison for Possessing FirearmRead the Press Release
ABILENE, Texas — A convicted felon from Abilene, Texas, who pleaded guilty to a federal firearm offense, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Brandon Joseph Cormier, 26, was sentenced to 120 months in federal prison by Chief U.S. District Judge Jorge A. Solis. Cormier pleaded guilty in February 2015 to an indictment charging one count of being a felon in possession of a firearm.
According to documents filed in the case and information presented during court hearings, Cormier admitted that he is a convicted felon and that on September 10, 2014, he knowingly possessed a Bersa, 380 Plus, .380 caliber semi-automatic pistol. That same day, Cormier was allegedly involved in a shooting following a traffic stop by a Texas Department of Public Safety (DPS) officer in Nolan County. During that stop, Cormier allegedly retrieved a firearm from his vehicle and fired shots at the DPS officer.
The Texas Ranger Division of the Texas DPS and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Juanita Fielden prosecuted.
Conspirator Sentenced to over Five Years in Prison in Car Dealership Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Juan Carlos Willis, age 41, of Hyattsville, Maryland late yesterday to 61 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft in connection with a scheme to use the stolen identity of others to purchase expensive cars.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge James Murray of the United States Secret Service B Washington Field Office; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, Willis, Kenneth Watford, Flinton Newton and others obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, then posed as those individuals at automotive dealerships in order to apply for vehicle financing.Willis and his coconspirators filled out credit applications and obtained loans in the names of the identity theft victims to purchase, or attempt to purchase, expensive cars from dealers in Maryland and Virginia.They intended to either use the luxury vehicles themselves, or rent or sell them.
On June 23, 2012, Willis, Watford and a coconspirator used the identity of another person to complete and submit a credit application for $77,450 in financing at BMW of Silver Spring, Maryland, to purchase a 2011 BMW 750. On July 26, 2012, Watford was arrested while driving the BMW in Bowie, Maryland. Inside the BMW were the victim’s credit reports from three credit bureaus.
On July 19, 2012, Willis and Newton went to Capitol Cadillac in Greenbelt.Newton posed as another person whose identity he had fraudulently obtained, to apply for $80,663 in financing to purchase a 2013 Cadillac Escalade in the victim’s name.Willis used online access to an insurance policy written on Watford’s business to obtain proof of insurance in support of the vehicle purchase.
Later that evening, Willis and Newton drove to Mercedes-Benz of Silver Spring where Newton again posed as the victim.The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056.They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit.Willis again presented the auto insurance policy in Watford’s business name in support of the vehicle purchases.
The dealership manager saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Willis and Newton. Willis acknowledged that his role in the scheme was to locate vehicles and provide insurance information.
The total attempted loss as a result of the fraudulent scheme was between $400,000 and $1 million.
Flinton Newton, age 34, of Bartlett, Tennessee previously pleaded guilty in connection with the scheme and was sentenced to 42 months in prison.Following a six day trial, Kenneth Watford, age 55, of Bowie, was convicted by a federal jury on April 16, 2015 of conspiring to commit wire fraud, three counts of wire fraud, attempting to commit wire fraud, four counts of aggravated identity theft, possessing a firearm by a convicted felon, credit card fraud and two counts of attempted credit card fraud.Watford is scheduled to be sentenced on July 28, 2015 at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’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. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service, U.S. Postal Inspection Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake and Special Assistant United States Attorney James I. Pearce, who prosecuted the case.
Clinton Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that that James Senior, 39, of Clinton, Maine pleaded guilty today in U.S. District Court to pharmacy robbery.Court records show that on March 31, 2015, Senior entered the Rite Aid Pharmacy in Newport, Maine, approached the pharmacy counter, presented a note that demanded oxycodone and threatened that employees would be harmed if they did not comply. While Senior waited, he told the employees to “hurry up” and “get moving.” He absconded with three bottles of oxycodone and hydrocodone-ibuprofen pills.
Law enforcement officers released a video of the robbery. After receiving a tip, they confirmed that Senior was the robber by comparing the video footage to a known photograph of Senior. Officers also recovered the three pill bottles that Senior had discarded a short distance from the pharmacy. The next day, Senior surrendered to the Waterville Police Department and admitted that he was the robber.Senior faces a maximum sentence of 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Newport Police Department, the Maine State Police, the Waterville Police Department, and the Federal Bureau of Investigation.
Charlotte Man Charged with Tax Evasion for Using Shell Companies to Hide IncomeRead the Press Release
CHARLOTTE, N.C. – A criminal bill of information was filed today in federal court charging Chris Yung Le, 63, of Charlotte, with tax evasion, for using shell companies to hide his and others’ income, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) joins Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents, Le was the owner and operator of two companies, Columbia General Services Corp. (Columbia General) and Comprehensive Administrative Services Corp. (CAS). Court documents show that Le maintained separate bank accounts for each company, but had listed for both businesses the same address as his Charlotte residence. According to documents filed with the court, from about 2007 to about 2013, the two companies primarily served as shell entities for income generated by other businesses, and Le used the companies’ bank accounts to conceal his and other individuals’ personal earnings from the IRS. Court records reflect a series of bank transactions Le conducted in order to hide personal income. Also, court records indicate that Le did not report income of at least $469,000 on his personal tax returns for tax year 2013. The additional tax due on this unreported income is approximately $131,322.
A signed plea agreement was also filed today and Chris Le is expected to appear before a U.S. Magistrate Judge in the coming days to formally accept the plea. The tax evasion charge carries a maximum penalty of five years in prison and a $100,000 fine. As part of his plea agreement, Chris Le has agreed to pay restitution, the amount of which will be determined by the Court.
In a related prosecution, Mark Tuan Le, an internal medicine physician and former owner of Northcross Medical Center, previously pleaded guilty to health care fraud conspiracy in connection with a healthcare fraud scheme that billed health insurers for services that were not provided, and for evading over $800,000 in taxes in 2009 and 2010 by funneling money to companies and bank accounts controlled by Mark Le and others. In parallel civil proceedings, Mark Le has also agreed to pay $6.2 million to the United States to settle related civil fraud allegations. Mark Le currently awaits sentencing.
The investigation into Chris Le was handled IRS-CI. The criminal prosecution is handled by Assistant U.S. Attorney Kelli Ferry.
Charge of "Causing A Death" Added to Indictment Against Main Line DoctorRead the Press Release
PHILADELPHIA – A superseding indictment was filed today against Dr. Jeffrey Bado, 59, of Philadelphia, PA, charging him with distribution of a controlled substance resulting in death and 82 additional counts of distribution of controlled substances. Bado, a doctor of Osteopathic Medicine, was first indicted on February 4, 2015 for the alleged illegal distribution of pain medications from his Philadelphia and Bryn Mawr medical offices. The superseding indictment also contains the original two counts of maintaining a drug-involved premises, 200 counts of illegally distributing oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and for no legitimate medical purpose, 33 counts of health care fraud, and four counts of making false statements to federal agents.
According to the superseding indictment, on January 24, 2011, Bado knowingly and intentionally distributed pills containing oxycodone to J.A.-1, and the death of J.A.-1 resulted from the use of those substances. The indictment alleges that Bado had been writing prescriptions for J.A.-1 despite the fact that, when tested at Bado’s office, the victim tested positive for illegal street drugs. Bado allegedly gave prescriptions for large numbers of oxycodone pills to “patients” who paid in cash for an “office visit” during which the “patient” would receive, at most, a cursory physical examination and little other medical care or treatment. The superseding indictment alleges that Bado’s prescribing mirrored the needs of drug addicts and drug traffickers. Bado would allegedly comply with patient requests for pills with specific concentrations of oxycodone, and Bado would allegedly switch patients to pills with a higher street value even though there was no medical justification for the switch. Bado allegedly continued to prescribe high amounts of oxycodone even when he knew that his patients were addicted to oxycodone, were using illegal drugs, or were not even taking the oxycodone pills as prescribed.
If convicted of all charges, Bado faces an estimated sentencing guideline range of at least 24 years in prison with a mandatory minimum sentence of 20 years in prison up to life in prison, a special assessment of $32,200, substantial fines, criminal forfeiture, and supervised release.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, the Haverford Township Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorneys Nancy Beam Winter and Andrew J. Schell.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Career Criminal Gets More Than 15 Years in PrisonRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi man has been handed a significant sentence following his conviction of possession of a firearm by a convicted felon, announced U.S. Attorney Kenneth Magidson. John Eric Garcia, 27, entered a plea of guilty Thursday, Feb. 5, 2015.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Garcia to a 200-month-term which will be followed by five years of supervised release. In handing down the sentence, Judge Ramos further noted that Garcia’s criminal history was extensive and very serious.
At the time of his guilty plea, Garcia admitted that on July 18, 2014, he had seven firearms in the bedroom of the Corpus Christi home he shared with his mother, one of which had been reported stolen. Garcia also admitted having more than 100 rounds of ammunition. Garcia has previous convictions out of Nueces County for possession of a weapon on school premises, deadly conduct, aggravated assault and escape. As such, he his prohibited by federal law of possessing firearms or ammunition.
Law enforcement officers had discovered the firearms while executing a search warrant at Garcia’s house, which was obtained as the result of an undercover drug-trafficking investigation targeting Garcia.
Garcia has been in custody since his arrest on July 18, 2014, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sam Brown IV is prosecuting the case.
CPA Sentenced for Embezzling $2.8 Million from EmployerRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL SAPERA, age 55, a resident of Mandeville, was sentenced today after previously pleading guilty to a four-count Bill of Information charging him with bank fraud, aggravated identity theft, and wire fraud. These charges related to his embezzlement of approximately $2.8 million from his employer over a 19-year period.
U.S. District Judge Eldon E. Fallon sentenced SAPERA to a total of 82 months in prison, composed of a term of 58 months as to the charges of bank fraud and wire fraud plus a consecutive term of 24 months for the charge of aggravated identity theft. In addition, the defendant was order to pay restitution in the total amount of $2,847,752, including $2,541,752 to victim Perlis, Inc. SAPERA was further sentenced to a three-year term of supervised release following his release from prison, and a $400 special assessment.
According to court documents, SAPERA, a Certified Public Accountant, was employed at Perlis, Inc., a retail clothing business headquartered in New Orleans, beginning in 1990. SAPERA most recently functioned as the Chief Financial Officer and Director of Information Technology for the company and thereby had access to various corporate bank accounts. As a part of his embezzlement scheme, SAPERA forged the signature of his employer on approximately 430 stolen corporate checks totaling $2,192,500, and then endorsed the checks to himself. SAPERA then deposited the stolen checks into his personal bank account. SAPERA also conducted 45 fraudulent wire transfers, totaling $582,080, from the company’s corporate bank account to his personal account without authorization, consent, or knowledge by the owners of the company. More recently, SAPERA also transferred $35,000 from the company’s corporate PayPal account to his personal PayPal account without authorization, consent, or knowledge by the owners of the company. In all, SAPERA’S criminal conduct resulted in an illegal gain to him in the amount of $2,809,580, and caused the company to incur a total loss for restitution purposes of $2,847,752.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Broward Resident Sentenced for Stealing Personally Identifiable Information of Magazine Subscription CustomersRead the Press Release
A Broward resident was sentenced to 34 months in prison, followed by three years of supervised release, for her participation in an identity theft fraud scheme involving the personally identifiable information (PII) of magazine subscription customers.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Eartha Ann Worthy, 29, previously pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft.
According to court documents, law enforcement agents executed a search warrant at a residence and found the PII belonging to 36 individuals, including their names, addresses, credit card information, dates of birth or social security numbers, on order sheets (taken from a direct call telemarketing center) related to magazine subscriptions. The owner of the residence explained that Worthy was employed as a supervisor with a company that sells magazine subscriptions and that Worthy was the source of the PII.
Worthy admitted to providing information to the residence’s owner and stated that she knew that the information she was providing was being used for fraudulent purposes. Worthy stated that the residence’s owner used the stolen credit card information to pay bills and make small purchases. Worthy also provided PII to another individual, who was involved in a tax refund fraud scheme.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Bellevue Man Sentenced to 30 Years for Producing and Transporting Child PornographyRead the Press Release
Christopher D. Brackett, 37, was sentenced in federal court in Omaha, Nebraska, for producing, transporting, and possessing child pornography. Brackett was convicted after a jury trial on all three charges. The Honorable Lyle E. Strom, Senior United States District Court Judge, sentenced Brackett to a term of imprisonment of 360 months for producing child pornography, 360 months for transporting child pornography, and 240 months for possessing child pornography. The sentences were ordered to run concurrently. There is no parole in the federal prison system. After his release from prison, Brackett will begin a 20-year term of supervised release.
Brackett was previously convicted in Des Moines County, Iowa, for sexual exploitation of a minor. He photographed a 15-year-old female engaged in sexually explicit conduct. As a result of this prior conviction, he was subject to a 25-year mandatory minimum sentence for producing child pornography.
Brackett traveled from Nebraska to Ohio on two occasions between May and August, 2013, where he photographed a 16-year-old girl engaged in sexually explicit conduct. He transported the images back to Nebraska. He met the girl online and began a relationship with her. He requested more sexually explicit images from her and, when she declined, he exerted pressure on her. When she attempted to end the relationship, he threatened to, and ultimately did, post advertisements on Craigslist purporting to be from the 16-year-old girl. The advertisements listed the girl’s telephone number and address and encouraged others to call or stop by the house to engage in sexual relations. She began receiving numerous texts from interested individuals.
The girl confided in her parents and was brought to her local police department. On September 17, 2013, officers with the Bellevue Police Department in Nebraska executed a search warrant upon Brackett’s residence. Sexually explicit photos of the 16-year-old were found on a Sony laptop computer and Dell desktop computer in the residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Bellevue Police Department and the Nebraska Internet Crimes Against Children Task Force.
Beaver Falls Man Admits Travelling to North Carolina with Teen for SexRead the Press Release
PITTSBURGH - A Beaver County resident pleaded guilty in federal court to a charge of travel with intent to engage in illicit sexual conduct, United States Attorney David J. Hickton announced today.
Donald L. Starkey, 57, of Beaver Falls, Pa., pleaded guilty to one count before United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that on June 4, 2012, Starkey, then 54 years of age, transported a 15-year-old female from Pennsylvania to North Carolina and engaged in sexual intercourse en route and while in North Carolina. A bystander observed Starkey and the minor female playing pool at a truck stop in Guilford County, North Carolina, and reported them to local authorities.
Judge Cohill scheduled sentencing for Sept. 10, 2015, at 11 a.m. The law provides for a maximum total sentence of not less than 15 years in prison or more than life, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The court detained Starkey pending his sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Beaver County District Attorney’s Office conducted the investigation that led to the prosecution of Donald L. Starkey.
Beaumont Federal Inmate Sentenced for Drug Transaction during VisitationRead the Press Release
BEAUMONT, Texas – A 37-year-old federal inmate has been sentenced for receiving contraband in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Donald James Bratton, Jr., of Little Rock, AR, pleaded guilty on Jan. 6, 2015, to attempting to obtain a prohibited object by a federal inmate and was sentenced to 37 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 1, 2012, Bratton, Jr., was visited by his father, Donald James Bratton, Sr., at the U.S. Penitentiary in the Federal Correctional Complex in Beaumont. During the visitation, officers using surveillance equipment observed Bratton Jr. obtain an object from the waistband of his father. Officers responded to the visitation room and separated the Brattons. The item contained 12.25 grams of heroin. The father and son were indicted by a federal grand jury on Oct. 1, 2013. Bratton Sr. was sentenced to 3 years of probation on May 12, 2015.
Bratton Jr. was convicted of being a felon in possession of a firearm in the Western District of Arkansas on Mar. 31, 2010, and sentenced to 211 months in federal prison. He must serve his 37 month sentence from this conviction following the conclusion of his current prison sentence.
This case was investigated by the Drug Enforcement Administration and Bureau of Prisons, Special Investigations and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Anderson County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 45-year-old Palestine, Texas man has been sentenced to federal prison for distributing methamphetamine, announced U.S. Attorney John M. Bales today.
Edwin William Pacheco pleaded guilty on Feb. 11, 2015, to possession of methamphetamine with the intent to distribute and was sentenced to 21 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Aug. 29, 2014, Pacheco delivered approximately 3.5 grams of methamphetamine to another person in Palestine, Texas. From Aug. 29, 2014 to Oct. 24, 2014, Pacheco distributed at least 10 grams of methamphetamine in Palestine receiving about $2,500. On Sep. 3, 2014, a search warrant was executed at Pacheco’s residence located on W. Debard Street in Palestine. During the search, the officers recovered a .380 caliber pistol, loaded with four bullets, from above a ceiling tile in the hallway of the residence. The officers also recovered numerous rounds of assorted ammunition from a shed on the premises.
Pacheco is a citizen of El Salvador and will face deportation upon his release from prison.
This case was investigated by the Palestine Police Department, the Anderson County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Alton Man Pleads Guilty to Federal Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jason Edwards, 28, of Alton, Illinois, pled guilty today to all charges against him in the indictment returned by a Federal Grand Jury in December 2014. All offenses relate to the distribution of cocaine. Specifically, Edwards pled guilty to distribution of cocaine on or about February 20, 2014 in Madison County (Count 1); and distribution of cocaine on or about September 5, 2014 in Madison County (Count 2). All offenses are violations of the Federal Controlled Substances Act.
Count 1 and 2 carry a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. All counts require an assessment of $100.
Information leading to the charges against Edwards was obtaining in an investigation conducted by the Alton Police Department. This case is being handled by Special Assistant United States Attorney Vanessa T. Lu.
Albuquerque Woman Sentenced to Prison for Federal Oxycodone Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Crystal Staggs, 53, of Albuquerque, N.M., was sentenced today in federal court to 63 months in federal prison followed by three years of supervised release for her Oxycodone trafficking conviction.
Staggs was arrested on Aug. 28, 2012, on a criminal complaint charging her with distributing and attempting to distribute Oxycodone to an undercover DEA agent on four occasions from June 13, 2012 through Aug. 28, 2012, in Bernalillo County, N.M. According to the complaint, Staggs sold Oxycodone to the undercover agent as follows: 48 30-mg Oxycodone pills and four 15-mg Oxycodone pills for $1,000.00 on June 13, 2012; 100 30-mg Oxycodone pills for $1,800.00 on June 27, 2012; and 87 30-mg Oxycodone pills and six 15-mg Oxycodone pills for $1,800.00. Staggs was arrested on Aug. 28, 2012, when she attempted to sell 100 30-mg Oxycodone pills to the undercover agent; the pills were in her possession when she was arrested.
In Sept. 2012, Staggs was indicted and charged with three counts of distribution of Oxycodone and one count of possession of Oxycodone with intent to distribute.
On April 8, 2015, Staggs pled guilty to the four-count indictment and admitted to distributing an aggregate of 10.2 grams of Oxycodone to an undercover DEA agent from June 13, 2012 through Aug. 28, 2012.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office and was prosecuted by Assistant U.S. Attorney Shammara Henderson. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Albuquerque Man Sentenced to Fifteen Years for Federal Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Manuel Chavez, 33, of Albuquerque, N.M., was sentenced this afternoon in federal court to 180 months in prison followed by four years of supervised release for his methamphetamine trafficking and firearms conviction.
The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Chief Gorden Eden, Jr., of the Albuquerque Police Department, and Bernalillo County Sheriff Manuel Gonzales III.
U.S. Attorney Martinez said that Chavez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Chavez was arrested on April 29, 2014, on a four-count indictment charging him with two counts of being a felon in possession of a firearm and ammunition, one count of possession of methamphetamine with intent to distribute, and one count of using a firearm in relation to a drug trafficking crime. The indictment alleged that Chavez committed the crimes on Sept. 30, 2013 and Oct. 24, 2013, in Bernalillo County, N.M. According to court filings, Chavez was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including conspiracy to possess methamphetamine with intent to distribute, contributing to the delinquency of a minor, aggravated assault against a household member, possession of a controlled substance, attempting to bring contraband into a prison, and aggravated fleeing from a law enforcement officer.
On Dec. 19, 2014, Chavez pled guilty to possession of methamphetamine with intent to distribute and carrying a firearm in furtherance of a drug trafficking crime. In entering his guilty plea, Chavez admitted that on Oct. 24, 2013, he possessed more than 50 grams of methamphetamine with intent to distribute. Chavez also admitted that on the same day, he used and carried two semiautomatic pistols and a semiautomatic rifle in furtherance of a drug trafficking crime.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Brawley and Sarah Jane Mease prosecuted the case.
2010 Congressional Candidate and Campaign Manager for His Opponent Jointly Pled Guilty to Committing Election ViolationsRead the Press Release
A 2010 Congressional candidate for Florida’s 25th Congressional District, along with the campaign manager for an opposing candidate from a different party pled guilty today to violating federal election laws, in violation of Title 18, United States Code, Section 371.
Benjamin G. Greenberg, First Assistant United States Attorney, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Jeffrey Garcia, 42, and Jose Rolando Arrojo, 41, of Miami, pled guilty to conspiring to make and accept excessive contributions to the 2010 Roly Arrojo for Congress Committee, in violation of the Federal Election Campaign Act of 1971. In 2010, the Federal Election Campaign Act of 1971, as amended, established a $2,400 per election limit on contributions from any individual to a federal candidates’ authorized campaign committee. Therefore, because the contributions did not exceed the permissible amount by more than $25,000, Garcia and Arrojo face a maximum possible sentence of one year in prison. Sentencing is scheduled for Garcia and Arrojo on August 27, 2015 at 1:30 p.m. and 2:00 p.m., respectively, before United States District Judge Jose E. Martinez.
According to court documents and information presented in court, during the 2010 election cycle, Garcia was the campaign manager for a candidate (“Candidate A”) opposing Arrojo in the general election. The objective of the conspiracy was to benefit Candidate A by splitting the general election votes of his opponents, by causing and funding the existence of Arrojo’s campaign. The conspirators used third party checks to conceal the contributions. A $12,000 check signed by Garcia, and drawn from the campaign account of Candidate A, was made payable to Palm Media, LLC, a company that was also owned and operated by Garcia. Garcia then signed two checks, made payable to cash in the amounts of $5,000 and $5,500, drawn from the Palm Media, LLC account. These checks were deposited by Arrojo into a personal account. Arrojo subsequently wrote a $10,500 check from the personal account made payable to “Roly Arrojo for Congress” which was deposited into the bank account for the Roly Arrojo for Congress Committee. Arrojo then caused a $10,440 check to issue from the Committee’s account to the Department of State, in order to cover his filing fee expenses. Arrojo submitted this check, along with an Oath of Candidate form, to the Department of State in order to be placed on the ballot in 2010 for Florida’s 25th Congressional District.
Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Kimberly A. Selmore.
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.
"Local Fulcrum" of Cocaine Organization Gets 20 YearsRead the Press Release
PITTSBURGH - A former resident of the Duquesne and Pitcairn suburbs of Pittsburgh, Pennsylvania, has been sentenced in federal court upon his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed a sentence of 20 years imprisonment followed by five years supervised release on Robert Russell Spence, aka “Little Russ” and “Slick”, 40.
The IRS Criminal Investigations section joined the DEA as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. The investigation revealed a major drug distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010. The evidence at trial established that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every man, woman and child current resident of Pennsylvania to have their own $20 rock of crack cocaine and is believed to be one of the largest cocaine prosecutions ever in the Pittsburgh area.
Prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California for recipients, such as Spence in Pittsburgh. Documents and evidence revealed the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007 Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850.00 intended for a co-defendant.
The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 200 airline flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 co-defendant Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and it was found to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh. On Aug. 8, 2009, over $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.
During other times, the conspiracy arranged transportation of cocaine and/or money by means such as chartered private flights and vehicles including tractor trailers. Indicted individuals have performed many different roles within the conspiracy. Some conspirators were suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of tasks such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports. The evidence showed that Spence was the main recipient of the cocaine that came to Pittsburgh and was personally responsible for more than 1500 kilograms of cocaine. Judge Cercone called Spence the “local fulcrum” of this large drug trafficking organization.
Federal agents obtained search warrants and simultaneously executed them in multiple locations in Pittsburgh and California, including a warehouse in a Pittsburgh suburb that Spence had rented under a false name. There, police located a significant stash of drug-processing items and also seized Spence’s vehicles and other assets. Experts testified that a drug dealer can substantially increase their profits by opening the packaged cocaine kilograms, grind the cocaine into a powder and mix in a diluent such as inositol. One of the items located in the warehouse was a hydraulic press which is utilized by drug dealers to forcefully press the now-diluted cocaine back into kilogram size packages in order to maintain the appearance that it is still “pure” and therefore more valuable. This process, sometimes called “re-rocking,” could turn two kilograms into three.
Spence conspired to launder his drug money in multiple ways including obtaining vehicles, prepaid credit cards, hotel reservations, houses, flights, drug processing materials and businesses in the names of other people. Spence also deposited cash in amounts below $10,000 in order to avoid federal laws requiring banks and others to report such transactions. The staggering amounts of money involved were proven by financial documents obtained by federal agents and acknowledged by cooperating witnesses. One witness, for example, testified to being sent to count one million dollars in drug cash for Spence and a separate witness testified to possessing $750,000 in drug cash for Spence on another date.
During his sentencing, Spence stated that he has been known as “a drug dealer all my life” and asked the Court for mercy. Despite his numerous previous convictions, Spence told the Court that “I can change.” Spence alleged that any illegal activities that he had committed were done simply in order to help his children financially, although the trial evidence showed Spence throwing extravagant parties (including those specifically for other drug dealers) and his purchase of expensive vehicles, jewelry and the like for himself. Spence even procured the regular services of a photographer he nicknamed “Paparazzi,” in order to document his lavish lifestyle.
The prosecution countered that Spence had, in person and in writing, threatened multiple prosecution witnesses, including forming the shape of a gun with his fingers while a witness was on the stand, testified falsely under oath and had filed numerous spurious motions in order to obstruct the legal process. The government also noted that Spence has arrests for burglary, drugs, fraud and weapon offenses in addition to more violent offenses like Aggravated Assault and Sexual Assault. The Court was advised that, in addition to a family member being shot to death, Spence’s chosen lifestyle has resulted in him being both shot and stabbed in the past.
Spence was released from prison and was on state parole for a previous conviction at the time he committed the federal charges. As a result, Spence faces the possibility of consecutive prison time from the Pennsylvania Board of Probation and Parole, and also has a pending significant heroin dealing charge in the Cleveland, Ohio area.
Assistant United States Attorneys Ross E. Lenhardt, Michael L. Ivory and Gregory J. Nescott prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service – Criminal Investigations, Drug Enforcement Administration, Pennsylvania Attorney General and many other federal, state and local law enforcement agencies for the investigation leading to the successful prosecution of Spence and the drug trafficking organization.
Wednesday 10 June 2015
Zimmerman Man Found Guilty After Trial of Distribution of Child PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced the conviction after a jury trial of LEVI WAYNE BURNS, 40, for distribution of child pornography. BURNS pleaded on guilty on June 5, 2015, to possession of child pornography in the same case. The defendant was charged by indictment on November 20, 2014, with one count of possession and one count of distribution of child pornography. BURNS was convicted in 2005 in Sherburne County, Minn., for criminal sexual conduct in the third degree for engaging in sexual acts with a 15-year-old female child. A sentencing date on the federal conviction has not yet been determined.
According to the defendant’s guilty plea and as proven at trial, in January 2014, BURNS shared electronically several files containing images and videos of child pornography, including a video depicting two female children between the ages of 10 and 14 engaged in sexual acts. BURNS, who lived in the basement of his parents’ home in Sherburne County, operated a large number of computers and related equipment. In fact, BURNS was using so much computer power that he and his parents were using the heat generated by the defendant’s computers to heat their house that winter, which was one of the coldest in recent Minnesota history.
According to the defendant’s guilty plea and as proven at trial, BURNS was operating a specially built computer with several hard drives, at least one of which was dedicated to storing and sharing child pornography over the internet. The defendant also saved thousands of files of child pornography on a separate external hard drive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, Sherburne County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorneys Katharine T. Buzicky and Sarah E. Hudleston are prosecuting the case.Defendant Information:
LEVI WAYNE BURNS, 40
Zimmerman, Minn.
Convicted:
- Distribution of child pornography, 1 count
- Possession of child pornography, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Woman Indicted and Arrested for Defrauding the Internal Revenue ServiceRead the Press Release
Defendant Faces a Forfeiture Allegation of $227,653.22
On June 3, 2015, a federal grand jury returned a 46-count indictment charging Mariely Malavet-Rivera for wire fraud, theft of public money and aggravated identity theft announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. Internal Revenue Service, Criminal Investigation (IRS-CI) is in charge of the investigation. The indictment was unsealed today as the defendant was arrested.
These charges stem from a scheme utilized by Malavet-Rivera to submit false federal tax returns seeking the additional child tax credit (ACTC) in order to obtain fraudulent refunds from the IRS via check or direct deposit. Personal identification information including individuals’ name, date of birth and social security number were utilized without the knowledge or consent of the individual in order to request and obtain the fraudulent refund. In some instances, defendant obtained this information by preparing the individual’s Puerto Rico tax return for a nominal fee.
The false federal tax returns contained defendant’s own postal address and bank account information so that the fraudulent refunds would be deposited via wire to bank accounts she controlled and the physical checks would be mailed to her address. Defendant then used a means of identification of another person without lawful authority to cash the fraudulent refund checks through an intermediary company.
“Refunds are issued to taxpayers who are entitled to them,” said U.S. Attorney Rodríguez-Vélez. “The U.S. Attorney’s Office will continue to aggressively pursue those who prepare false claims for refunds for the purpose of enriching themselves and depleting the U.S. Treasury.”
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the United States Treasury,” said Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation’s Miami Field Office. “This indictment is another example of our commitment to work with the U.S. Attorney’s Office to vigorously pursue those individuals who steal Puerto Rican identities and file false tax returns for their own personal gain.”
The indictment alleges 30 counts of wire fraud, related to 30 fraudulent refunds paid via direct deposit from 2010 through 2013 to bank accounts controlled by the defendant; eight counts of theft of public money, related to eight fraudulent refund checks received and converted to the defendant’s use; and eight counts of aggravated identity theft, related to the possession and use without lawful authority of a means of identification in relation to theft of public money charged in the indictment. The fraudulent tax refund scheme had a total value of approximately $227,653.22.
The case is being investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Seth A. Erbe. If found guilty, the defendant is facing a maximum penalty of 36 years in prison.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Woman Indicted and Arrested for Defrauding the Internal Revenue ServiceRead the Press Release
SAN JUAN, P.R. – On June 3, 2015, a Federal grand jury returned a forty six-count indictment charging Mariely Malavet-Rivera for wire fraud, theft of public money, and aggravated identity theft announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Internal Revenue Service, Criminal Investigation (IRS-CI) is in charge of the investigation. The indictment was unsealed today as the defendant was arrested.
These charges stem from a scheme utilized by Mariely Malavet-Rivera to submit false Federal tax returns seeking the additional child tax credit (ACTC) in order to obtain fraudulent refunds from the Internal Revenue Service via check or direct deposit. Personal identification information including individuals’ name, date of birth, and social security number were utilized without the knowledge or consent of the individual in order to request and obtain the fraudulent refund. In some instances, defendant obtained this information by preparing the individual’s Puerto Rico tax return for a nominal fee.
The false Federal tax returns contained defendant’s own postal address and bank account information so that the fraudulent refunds would be deposited via wire to bank accounts she controlled and the physical checks would be mailed to her address. Defendant then used a means of identification of another person without lawful authority to cash the fraudulent refund checks through an intermediary company.
“Refunds are issued to taxpayers who are entitled to them,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to aggressively pursue those who prepare false claims for refunds for the purpose of enriching themselves and depleting the U.S. Treasury.”
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the United States Treasury. This indictment is another example of our commitment to work with the U.S. Attorney’s Office to vigorously pursue those individuals who steal Puerto Rican identities and file false tax returns for their own personal gain,” stated Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, Miami Field Office.
The indictment alleges thirty-counts of wire fraud, a violation of Title 18, United States Code, Section 1343, related to thirty fraudulent refunds paid via direct deposit from 2010 - 2013 to bank accounts controlled by defendant, eight counts of theft of public money, a violation of Title 18, United States Code, Section 641, related to eight fraudulent refund checks received and converted to defendant’s use, and eight counts of aggravated identity theft, a violation of Title 18, United States Code, Section 1028A(a)(1), related to the possession and use without lawful authority of a means of identification in relation to theft of public money charged in the indictment. The fraudulent tax refund scheme had a total value of approximately $227,653.22.
The case is being investigated by IRS-CI and prosecuted by Assistant United States Attorney Seth A. Erbe. If found guilty, defendant is facing a maximum penalty of thirty-six years in prison.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Waterloo Felon Sent to Prison for Ten Years for Possessing a Firearm and AmmunitionRead the Press Release
A twice-convicted felon who possessed a firearm and ammunition on the streets of Waterloo last Halloween evening was sentenced yesterday to 10 years in federal prison, the statutory maximum sentence possible for his crime.
Deshawn Brown, age 23, from Waterloo, Iowa, received the prison term after a March 2, 2015, guilty plea to one count of possessing a firearm and ammunition as a felon.
At the guilty plea hearing, Brown admitted that he knowingly possessed a Sig Sauer pistol and .40 caliber ammunition on Halloween in 2014. Defendant learned that an associate’s residence was subjected to a drive-by shooting. In response, Brown went to a local store, purchased ammunition, and then fired several shots near the 1200 block of Willow Street in retaliation for the prior shooting. When police attempted to stop Brown’s car, he failed to stop and fled through a residential neighborhood. Brown only stopped because his car crashed into a garage. At the plea hearing, he also admitted to prior felony convictions in state court for possessing marijuana with intent to deliver and intimidation with a dangerous weapon.
Brown was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa Williams and investigated by the Waterloo Police Department.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-2001.
Follow us on Twitter @USAO_NDIA.
Washington Man Sentenced to Six Years in Custody for Theft of 22 Handguns from Newberg Fred MeyerRead the Press Release
PORTLAND, Ore. – Mark Anthony Reyna, 26, from Skagit County, WA was sentenced today by U.S. District Judge Garr M. King to six years in federal prison, following his pleas of guilty to the theft of firearms from a federally-licensed firearms dealer and felon in possession of firearms.
On June 18, 2014, Reyna broke into a locked firearms display located at the Newberg Fred Meyer. The store was open to the public at the time of the theft. Reyna took 22 firearms with a value of over $12,000. Three days after the theft, Reyna was observed by a police officer in Mount Vernon, WA, operating a vehicle; the officer knew that Reyna had an unrelated arrest warrant on file and attempted to stop the vehicle. Following a brief police chase and struggle with the officers, Reyna was arrested. One of the stolen firearms from Fred Meyer, a .40 caliber loaded Ruger pistol, was located in Reyna’s vehicle. During a subsequent police investigation, six of the other stolen firearms were located and seized; 15 stolen firearms are currently unaccounted for.
Several charges are pending against Reyna in Skagit County, WA. He will be transported to that jurisdiction and will receive a sentence concurrent to the federal sentence. The pending charges include the related attempt to elude a pursuing police vehicle and unlawful possession of a stolen firearm. Reyna was prohibited from possessing firearms by virtue of his Skagit County 2014 conviction for disarming a law enforcement officer of his taser.
This case was prosecuted by the Newberg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and by the Mount Vernon Police Department. It was prosecuted by AUSA Fred Weinhouse.
Washington Couple Admit Role in Scheme to Extort Money from Mother While Holding Her ChildrenRead the Press Release
SAN JOSE—Patricia Delatorre and Jesus Salinas pleaded guilty in federal court in San Jose yesterday to conspiracy to commit extortion for their role in a scheme involving the transportation of two minor children across the U.S.-Mexico border, announced United States Attorney Melinda Haag and FBI Special Agent in Charge Dave Johnson.
In pleading guilty, Delatorre and Salinas admitted that between June 2011 and December 2012, they knowingly participated in executing a scheme to extort money from a woman who had asked Salinas for assistance in bringing her minor U.S. citizen children to the United States from Mexico. After Salinas picked up the children in Mexico in July 2011, and after the mother had paid him approximately $1,800, he did not bring the children to the United States as he had promised. After a failed border crossing, Salinas instead brought the children to the residence of Delatorre’s mother, Maria Guadalupe Valenzuela Castaneda, in Juarez, Mexico. Salinas and Delatorre refused to tell the children’s mother the precise address where her children were located. The children resided in Juarez for many months, during which time the mother was permitted periodic contact with the children. For months, the mother sent payments to Delatorre, Salinas, and Valenzuela Castaneda, but the children were never returned. Salinas and Delatorre told the mother on numerous occasions that she owed additional money to them, and she needed to pay the money before the children could be returned to her. Delatorre also threatened to report the mother to immigration authorities as an illegal alien if she stopped making payments.
On December 11, 2012, the FBI, together with Mexican law enforcement, located the children in Juarez, Mexico, in the custody of Castaneda and placed the children into the temporary care of Mexican social services. In March 2013, the children, through the work of the FBI, the Watsonville Police Department, the National Center for Missing and Exploited Children, and the United States Department of State, were repatriated from Mexico to the United States, and reunited with their mother in California.
Delatorre, 28, and Salinas, 35, both of Mount Vernon, Washington, were indicted by a federal Grand Jury on December 19, 2012. Each pleaded guilty to a single count of conspiracy to commit extortion in violation of 18 U.S.C. § 371. Delatorre and Salinas were both ordered detained in a prior pretrial hearing and are in custody pending sentencing. An arrest warrant remains pending for Maria Guadalupe Valenzuela Castaneda.
The sentencing hearing for both Delatorre and Salinas is scheduled for October 5, 2015 at 1:30 p.m. before the Honorable Edward J. Davila, U.S. District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 371 is five years imprisonment and a fine of $250,000, plus restitution as determined by the Court. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Nedrow, Jeff Schenk, and Daniel Kaleba are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Susan Kreider, Laurie Worthen, and Elise Etter. The prosecution is the result of an investigation by the FBI, the Watsonville Police Department, the Department of Homeland Security Customs and Border Protection, and the United States Department of State.
Two Sisters-In-Law and Former Tax Return Preparers Sentenced to Prison for Conspiring to Defraud the United StatesRead the Press Release
WASHINGTON – Two Georgia sisters-in-law were sentenced today in the U.S. District Court in Macon, Georgia, for their involvement in a conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Angela Miller, 48, of Milledgeville, Georgia, and Lee Lynwood, 47, of Eatonton, Georgia, were each sentenced to serve 12 months and one day in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $44,214.62. On Feb. 10, Miller and Lynwood pleaded guilty to conspiracy to defraud the United States.
According to court documents, from at least January 2008 through at least March 2010, Miller and Lynwood operated a tax return preparation business and conspired to inflate their clients’ federal tax refunds by manipulating the tax returns to reflect false business income or loss amounts and to claim deductions and credits, such as the First-Time Homebuyer Credit, that the clients were not entitled to receive.
Miller and Lynwood also took steps to continue their scheme by impeding the Internal Revenue Service’s (IRS) efforts to shut down their ability to electronically file tax returns. In May 2008, the IRS notified Miller and Lynwood that their Electronic Filing Number (EFIN) for filing electronic returns at their tax preparation business, A&L Tax Services, was being revoked. Miller and Lynwood then had an acquaintance apply for another EFIN in her name, which Miller and Lynwood used to continue to file fraudulent tax returns and conceal their preparation from the IRS. Further, Miller and Lynwood changed the name of their business to B&F Tax Services and caused a bank account for the B&F Tax Services to be opened in the acquaintance’s name as a nominee.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance, as well as Trial Attorneys Alexander R. Effendi and Hayden M. Brockett of the Tax Division, who prosecuted the case.
Two Georgia Sisters-in-Law and Former Tax Return Preparers Sentenced to Prison for Conspiring to Defraud the United StatesRead the Press Release
Two Georgia sisters-in-law were sentenced today in the U.S. District Court in Macon, Georgia, for their involvement in a conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Angela Miller, 48, of Milledgeville, Georgia, and Lee Lynwood, 47, of Eatonton, Georgia, were each sentenced to serve 12 months and one day in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $44,214.62. On Feb. 10, Miller and Lynwood pleaded guilty to conspiracy to defraud the United States.
According to court documents, from at least January 2008 through at least March 2010, Miller and Lynwood operated a tax return preparation business and conspired to inflate their clients’ federal tax refunds by manipulating the tax returns to reflect false business income or loss amounts and to claim deductions and credits, such as the First-Time Homebuyer Credit, that the clients were not entitled to receive.
Miller and Lynwood also took steps to continue their scheme by impeding the Internal Revenue Service’s (IRS) efforts to shut down their ability to electronically file tax returns. In May 2008, the IRS notified Miller and Lynwood that their Electronic Filing Number (EFIN) for filing electronic returns at their tax preparation business, A&L Tax Services, was being revoked. Miller and Lynwood then had an acquaintance apply for another EFIN in her name, which Miller and Lynwood used to continue to file fraudulent tax returns and conceal their preparation from the IRS. Further, Miller and Lynwood changed the name of their business to B&F Tax Services and caused a bank account for the B&F Tax Services to be opened in the acquaintance’s name as a nominee.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance, as well as Trial Attorneys Alexander R. Effendi and Hayden M. Brockett of the Tax Division, who prosecuted the case.
Trumbull County man sentenced to nearly four years in prison for making threatsRead the Press Release
An Ohio man was sentenced to nearly four years in prison for mailing threatening communications and threatening to damage or destroy a building with an explosive, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Charles James Reighard, 67, of Burghill, was sentenced by U.S. District Judge Sara Lioi to to 46 months in prison, with mental health counseling, and ordered to pay $3,788 in repayment to first-responders
Reighard previously pleaded guilty to two counts. Reighard sent communications to his victim with the intent to extort money from him and which contained a threat to injure him and/or his family. This occurred between September 4, 2014, to on or about October 17, 2014. On October 16, 2014, Reighard engaged in conduct with the intent to convey false or misleading information that the offices at 6630 Seville Drive, in Canfield, Ohio, would be damaged or destroyed by an explosive, according to court documents.
The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould, following an investigation by the Federal Bureau of Investigations of Youngstown, and the Mahoning County Sheriff’s Department.
Trafficker Sentenced for Cocaine and Money Laundering ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced FABIO HIROCHI INOUE, 40,of Anaheim, California, to 51 months in prison and 5 years of supervised release for conspiracy to distribute and possess 5 kilograms or more of cocaine and conspiracy to launder monetary instruments. INOUE previously pled guilty to these charges on May 13, 2014.
The investigation revealed that between April 2013 and September 22, 2013, INOUE flew to North Carolina and Florida to deliver cocaine and collect drug proceeds for a drug trafficking organization operating out of Mexico and California. INOUE made several trips during this time period to meet with traffickers in the Johnston County, N.C., area. During these trips he delivered multiple kilograms of cocaine and collected approximately $185,745 in drug proceeds. INOUE laundered some of the drug proceeds by depositing portions into a bank account in the name of a real estate business located in California. Based on the investigation, the United States Drug Enforcement Administration discovered that INOUE would be flying to the Raleigh Durham International Airport with several kilograms of cocaine on September 22, 2013. Agents found INOUE at the airport and seized his luggage which contained 3,891 grams of cocaine. In total, INOUE was found to be responsible for trafficking 12.7 kilograms of cocaine.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office and the Internal Revenue Service-Criminal Investigation Division. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission
Topeka Jewelry Store Owner Pleads Guilty to Purchasing Stolen JewelryRead the Press Release
TOPEKA, KAN. - The owner of a Topeka jewelry store pleaded guilty Wednesday to knowingly buying jewelry that had been stolen in home invasions, U.S. Attorney Barry Grissom said.
John O. Dasher, 53, Silver Lake, Kan., pleaded guilty in U.S. District Court in Topeka to one count of transporting stolen goods. In his plea, he admitted the crimes occurred from 2010 to 2013 while he owned The Diamond House, 1801 S.W. Gage in Topeka. He knowingly purchased stolen jewelry taken in home invasions.
Dasher paid a fraction of the actual value of the jewelry, which he melted down to form scrap gold. He mailed the gold scrap via the U.S. Postal Service to gold wholesalers Pop Gems International, Gold Empire and Coinex, Inc., in Los Angeles, Calif.
Sentencing will be set for a later date. Both parties have agreed to recommend a sentence of 12 months and a day followed by two years on supervised release and a forfeiture money judgment against Dasher of $130,000
Grissom commended the Topeka Police Department, the FBI, the Shawnee County District Attorney’s Office and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Milwaukee Area Persons Indicted for Wire, Mail, and Credit Card FraudRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on June 9, 2015, a federal grand jury in Milwaukee returned an indictment charging three persons: Vladimir Sonin of Bayside, Wisconsin (age 50); Natalya Sonina of Bayside, Wisconsin (age 47); and Irina Tinney of Milwaukee, Wisconsin (age 47). Each defendant is charged with thirteen counts of wire, mail, and credit card fraud in violation of Title 18, United States Code, Sections 1029(a)(2), (a)(3), 1341, and 1343. Mr. Sonin and Ms. Sonina are also charged in an additional count of credit card fraud and two counts of aggravated identity theft in violation of Title 18, United States Code, Sections 1028A.
The indictment alleges that during the period from approximately January 1, 2013 until May 13, 2015, the defendants carried out a scheme to defraud and steal money from the IRS and various state treasuries through electronically filed fraudulent tax returns claiming tax refunds in the names of identity theft victims. The indictment further charges that as part of the scheme, the defendants received unauthorized access devices issued by financial institutions in the names of identity theft victims and then caused the IRS and various state treasuries to electronically place stolen refunds onto those unauthorized access devices. Finally, the indictment charges that as part of the scheme, the defendants used the unauthorized access devices at ATMs and then transferred more than $1 million in scheme proceeds to individuals in Ukraine.
Each of the ten mail or wire fraud charges contained in the indictment carries a maximum possible penalty of up to twenty years in prison and a fine of up to $250,000, or both. Each of the four credit card fraud charges contained in the indictment carries a maximum possible penalty of up to ten years in prison and a fine of up to $250,000, or both. Each of the two aggravated identity theft charges contained in the indictment carries a maximum possible penalty of a mandatory two years in prison consecutive to any other sentence and a fine of up to $250,000 or both.
According to United States Attorney James L. Santelle, "Today's charges are the result of collaborative efforts by many federal investigative agencies to dismantle a scheme that was defrauding both federal and state governments in addition to victimizing individuals. These charges reflect our continued commitment to investigate and prosecute criminal conduct such as identity theft that directly impacts the citizenry, including identity theft through which fraudulent claims for tax refunds are made." United States Attorney Santelle specifically commended the participating agencies for their hard work on the joint investigation, which was conducted by Special Agents from the Internal Revenue Service Criminal Investigations Division, the Postal Inspection Service, and the Federal Bureau of Investigation.
“IRS Criminal investigation is committed to rigorously pursuing identity thieves who steal from American taxpayers,” said IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office. “Today’s indictment should serve as a warning to identity thieves that we, along with our law enforcement partners and the United States Attorney's Office, will pursue those criminals who prey on innocent victims and bring them to justice.”
This case is assigned to Assistant United States Attorney Stephen A. Ingraham for prosecution.
The public is cautioned that an indictment is merely the formal method of presenting charges in federal court and does not constitute evidence of the defendant’s guilt. The defendant is presumed innocent until such time, if ever, as the government establishes her guilt beyond a reasonable doubt.
# # # #
Three Men Indicted on Sex Trafficking ChargesRead the Press Release
BOSTON – Three men were indicted yesterday on charges related to the interstate sex trafficking of a minor and several other women.
Tyrell Gorham, a/k/a Sheek, 30, of Lewiston, Maine; Chelanjei Greene, a/k/a Young, 32, of Brockton; and Lee Young, a/k/a Chop, 32, of Brockton, were indicted for sex trafficking of a minor, interstate transportation of a minor for purpose of prostitution, and sex trafficking through force, fraud, or coercion. The defendants were initially arrested and charged in a criminal complaint on May 5, 2015, and have since been held in federal custody.
According to a criminal complaint, an undercover law enforcement operation conducted in February 2013 identified three adult women and one minor woman as victims of a sex trafficking ring. The investigation revealed that Gorham allegedly used social media to identify and target vulnerable women living in the Portland, Maine area, and then either lured or transported them to the Greater Boston area where Gorham, Greene, and Young would force them to work as prostitutes, posting advertisements for their services on backpage.com. The defendants required the victims to have sex with 10 to 15 customers per day and turn over their earnings to them.
The charges of sex trafficking of a minor and interstate transportation of a minor for the purpose of prostitution provide a minimum mandatory sentence of 10 years and no greater than a lifetime in prison, three years of supervised release, and a fine of $250,000. The charge of sex trafficking through force, fraud, or coercion provides a minimum mandatory sentence of 15 years and no greater than a lifetime in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation’s Boston Child Exploitation Task Force (CETF). Significant investigative assistance was provided by the FBI; the Boston Police Department Child Abuse and Human Trafficking Units; the Arlington, Malden, Norwood, Revere, Saugus, Woburn, and Brockton Police Departments; the Massachusetts State Police; and the Massachusetts State Police Human Trafficking Unit of the Massachusetts Attorney General’s Office.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Emily Cummings and Timothy Moran of Ortiz’s Civil Rights Enforcement Team.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Santa Fe Man Pleads Guilty to Unlawfully Trafficking “Suboxone”Read the Press Release
ALBUQUERQUE – James Barela, 41, of Santa Fe, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to participating in a conspiracy to distribute Buprenorphine, more commonly known as “Suboxone,” in violation of the federal narcotics laws. Under the terms of his plea agreement, Barela will be sentenced to 12 months and one day in federal prison followed by at least two years of supervised release.
Barela was arrested on March 12, 2015, on an indictment charging him and co-defendant Edward Owens, 20, also of Santa Fe, with conspiracy and possession of Suboxone with intent to distribute. According to the indictment, Barela and Owens committed these crimes between Aug. 6, 2014 and Aug. 12, 2014, in Santa Fe County, N.M. During the period charged in the indictment, Owens was employed as a corrections officer at the Santa Fe County Adult Correctional Facility.
During today’s change of plea hearing, Barela pled guilty to Count 1 of the indictment, charging him with participating in a Suboxone trafficking conspiracy. In entering the guilty plea, Barela admitted that from Aug. 4, 2014 through Aug. 12, 2014, while he was incarcerated in a correctional facility in Santa Fe County, he conspired with Owens to distribute Suboxone to inmates in the correctional facility.
Barela remains in custody pending a sentencing hearing which has yet to be scheduled. At sentencing, Barela faces a statutory maximum sentence of five years imprisonment.
Owens has entered a plea of not guilty to the indictment. Charges in indictments are merely accusations, and defendants are presumed innocent unless proven guilty.
This case was investigated by the Albuquerque office of the FBI, the Santa Fe County Sheriff’s Office, and the Santa Fe Corrections Department. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
San Francisco Man Sentenced to 15 Months for Importing and Selling Counterfeit DVDsRead the Press Release
SAN JOSE – Christopher Breejen was sentenced yesterday to 15 months in prison and ordered to pay $117,439.50 in restitution for criminal copyright infringement, announced United States Attorney Melinda Haag and Homeland Security Investigations Acting Special Agent in Charge, Tatum King.
Breejen, 43, of San Francisco, pleaded guilty on November 18, 2014, to one count of criminal copyright infringement, in violation of 17 U.S.C. § 506(a)(1)(A) and 18 U.S.C. § 2319(b)(1). According to the plea agreement, Breejen admitted to importing counterfeit DVD’s and then selling them on the eBay website. Between 2011 and August 2014, he sold approximately 20,000 counterfeit DVDs nationwide. Breejen was charged on September 26, 2014.
Prior to Breejen being charged, agents from the United States Customers and Border Protection (CBP) seized 16 separate shipments of counterfeit DVDs sent to Breejen from Asia. Breejen was notified about the counterfeit goods in each of these shipments by CBP. Despite these seizures and notifications, Breejen continued to import and sell counterfeit DVDs until agents from Homeland Security Investigations executed a search warrant at his residence in San Francisco, where they seized additional counterfeit DVDs.
The investigation began with a tip from the Motion Picture Association of America.
The sentence was handed down by the Honorable Beth L. Freeman, U.S. District Court Judge. Judge Freeman also sentenced the defendant to a three year period of supervised release. The defendant will begin serving the sentence on August 8, 2015.
Hanley Chew is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by Homeland Security Investigations.
Safe Streets Task Force Investigation Leads to Drug Charges Against Duquesne ManRead the Press Release
PITTSBURGH – A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute and distribution of heroin, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on June 9 and unsealed today, named Brandon Gibson, 38, of Duquesne, PA.
According to the indictment, on four separate occasions during the months of August and September, 2013, Gibson distributed heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both, for each of the four counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, and members of the Federal Bureau of Investigation Safe Street Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Providence Felon Sentenced to Federal Prison on Firearm Charge, Violating Supervised ReleaseRead the Press Release
PROVIDENCE, R.I. – Sarunn N. Phan, 28, of Providence, was sentenced today to 45 months in federal prison for being a felon in possession of a firearm and for violating the terms of federal supervised release on a previous conviction on a federal firearm charge, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge Mary M. Lisi sentenced Phan to 30 months imprisonment to be followed by 3 years supervised release for being a felon in possession of a firearm; and a consecutive sentence of 15 months in prison for violating the terms of federal supervised release on a previous federal firearm conviction. In June 2009, Phan was sentenced to 24 months in federal prison to be followed by 3 years supervised release for being a felon in possession of a firearm.
Phan will begin serving his federal sentence after completing a two-year sentence that he is currently serving at the Rhode Island Department of Corrections for violating the terms of his state probation on a 2006 conviction for receiving stolen property over $1,500.
According to information presented to the court, late in the evening of April 9, 2014, Providence Police responded to shots fired in the vicinity of Oakland and Dickens Street. Responding officers found eleven .9mm shell casings on the ground and noticed a Jeep Grand Cherokee in the vicinity. About an hour later, officers observed the same vehicle at Douglas Avenue and Eaton Street. The officers affected a traffic stop after observing a traffic violation.
While pulling in behind the vehicle, officers observed an individual in a rear passenger seat toss a large black box into the rear cargo area. Upon arriving at the vehicle, the officers observed an open box with a firearm inside in the rear cargo area. Upon further inspection, officers discovered a .9mm handgun with an empty magazine. They also located a black plastic bag with ten .380mm rounds and a Glock 40 caliber magazine with 8 rounds of ammunition.
According to information presented to the court, Phan admitted to the police that the weapon was his, and he told officers, “It was self-defense.” Phan claimed to police that he had been shot at earlier in the evening.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Plainview Man Sentenced for Assault on A Federal OfficerRead the Press Release
United States Attorney Deborah R. Gilg announced today that Chief United States District Court Judge Laurie Smith Camp sentenced Matthew Moniz, Jr., age 27, of Plainview, Nebraska upon his conviction for assaulting a federal officer. Moniz was sentenced to 24 months imprisonment to be followed by three years of supervised release.
On April 5, 2014, Moniz, an enrolled member of the Omaha Tribe of Nebraska, was a passenger in a vehicle being driven on the Winnebago Indian Reservation when a Winnebago Police officer conducted a traffic stop of the vehicle. The officer identified Moniz and determined he had outstanding tribal and state arrest warrants. Moniz resisted arrest when the officer attempted to handcuff him and attempted to flee. When the officer caught Moniz, a struggle ensued and the officer sustained minor bodily injuries.
The Winnebago Officer is employed by the Bureau of Indian Affairs Office of Justice Services.
This case was investigated by the Bureau of Indian Affairs.
Pittsburgh Man Indicted on Heroin Possession ChargeRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of possession with the intent to distribute heroin, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on June 9 and unsealed today named Carloto Neal, Jr., 20.
The indictment charges that on or about March 17, 2015, in the Western District of Pennsylvania, Neal possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of 20 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and members of the Federal Bureau of Investigation Safe Street Task Force, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of New Jersey Hedge Fund Charged for Defrauding Investors of $4 MillionRead the Press Release
NEWARK, N.J. – The owner and manager of a New Jersey hedge fund was arrested today and charged with allegedly orchestrating an advance fee scheme that defrauded investors of $4 million, U.S. Attorney Paul J. Fishman announced.
Nicholas Lattanzio, 58, of Montclair, New Jersey, is charged by complaint with three counts of wire fraud and two counts of securities fraud. FBI agents arrested Lattanzio at a residence in West Orange, New Jersey, this morning. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the complaint unsealed today:
From June 2013 through November 2014, Lattanzio allegedly orchestrated a large-scale advance fee scheme through which he, his hedge fund, the Black Diamond Capital Appreciation Fund L.P. (BD Fund), and several other related entities collected millions of dollars in upfront fees from unsuspecting investors in exchange for the promise of future loans or investment opportunities that did not materialize. Instead of investing the victims’ money and providing the loans as promised, Lattanzio allegedly stole the majority of the funds and used them for personal expenses, including the purchase of a $1 million home, a luxury vehicle, expensive jewelry and the payment of thousands of dollars in credit card debt that he incurred for other personal expenses. The credit card expenditures included more than $24,000 for a family trip to Hawaii, more than $50,000 for tickets to the New York Yankees, and thousands of dollars in clothes, restaurants, jewelry and furniture. Lattanzio did not disclose this spending to his victims, but instead mislead them into believing that their investments were safe.
In June 2013, a company engaged in the business of oil and gas operations, production, development and acquisition (Company A) began seeking external funding to develop its existing assets and acquire new assets. Company A was introduced to an individual (Individual 1) affiliated with International Lending Services, an entity that purported to market financing opportunities, including those allegedly provided by the related Black Diamond entities. Company A was told that it had to deposit $2 million with the Black Diamond entities as a prerequisite for a $20 million lending facility through a third party lender.
Prior to any exchange of funds, Lattanzio and others acting at his direction made numerous misrepresentations to Company A to induce it to transfer the $2 million deposit to the Black Diamond entities, including telling the company that the financing was all but guaranteed, but that if it failed to close within 120 days, Company A’s $2 million could be returned; the $2 million deposit would be invested with the Black Diamond entities and would entitle Company A to a limited partnership interest in the BD Fund, a successful hedge fund managed by Lattanzio; and that Company A would be one of many investors in the BD Fund, which had a five-year track record of steady earnings.
Based on these misrepresentations, on Dec. 20, 2013, Company A caused $2 million to be wired to an account controlled by Lattanzio. The funds were not held as an escrowed deposit/investment in the BD Fund. Rather, Lattanzio allegedly converted the majority of the funds to his own use. He wired approximately $124,000 to the bank account of a Land Rover dealership for the purpose of purchasing a luxury car and spent $102,185 at a luxury jewelry store in Hackensack, New Jersey, to purchase a platinum and diamond ring that included a bezel set with three separate brilliant cut diamonds that each weighed over one carat. Over the next several months, Lattanzio continued to mislead Company A it into believing that its money was secure and that the financing was still imminent. Ultimately, when it became clear that the financing would not be provided, Company A requested the return of its $2 million per the terms of its agreement with Lattanzio. To date, however, Company A has not received any of its $2 million deposit or interest earned in connection with the deposit. Bank records confirm that Lattanzio converted the majority of Company A’s $2 million to his own benefit, including using the funds to pay private school tuition fees, golf club membership dues, credit card bills, and to purchase a luxury vehicle.
In 2014, a second company (Company B) was seeking financing to develop a hotel project in Georgia. Company B was introduced to Lattanzio and Individual A and presented with a financing package and structure similar to that presented to Company A, including a requirement that Company B deposit a substantial amount of money with the Black Diamond entities and representations that the deposit could be returned if the financing did not close. Company B wired $1.95 million to an account controlled by Lattanzio and the BD Fund as a deposit purportedly required to secure close to $10 million in financing by a third party. Lattanzio immediately converted the funds to his own use, including by purchasing a home in Montclair for more than $1 million.
Over subsequent months following Company B’s deposit, Lattanzio employed a number of delay tactics and made additional misrepresentations to Company B to conceal his actions with respect to its deposit funds. When it became apparent to Company B that there was no funding forthcoming, it demanded the return of its escrow deposit, which Lattanzio refused.
The wire and securities fraud counts with which Lattanzio is charged each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The complaint also seeks forfeiture of the home Lattanzio purchased in Montclair, New Jersey, a 2013 BMW 650 and various pieces of jewelry.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s arrest. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, and the N.J. Bureau of Securities, within the State Attorney General’s Division of Consumer Affairs, under the direction of Acting Attorney General John J. Hoffman.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, and Assistant U.S. Attorney Peter Gaeta of the Office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Out of State Resident Pleads Guilty to Firearms ChargesRead the Press Release
David Robert Sutton, 55, who has connections to Wisconsin and New Jersey, pled guilty today to charges of possessing, receiving, and importing unregistered machine guns, in violation of Title 26, United States Code, Sections 5861(d), (j), and (k).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Sentencing for Sutton is scheduled for August 18, 2015 before United States District Judge Robin L. Rosenberg in Fort Pierce. At sentencing, Sutton faces a maximum statutory sentence of ten years in prison on each of the three counts.
According to statements made in court and documents filed in the case, Sutton is a collector of firearms and is familiar with the requirements for registration and tax payment in order to lawfully possess certain types of firearms. This includes knowledge of automatic firearms, which are classified as machine guns and are therefore subject to the National Firearms Act, codified at Title 26 of the United States Code. The statute treats parts of firearms the same as fully assembled firearms. In September 2014, Sutton contacted a German friend by email and asked the individual to purchase him three lower receivers (the part of the firearm frame, with the trigger grip and magazine well, that houses the operating parts such as the bolt assembly) for Colt M16A1 automatic rifles which were advertised for sale in a website link. When the German asked if the purchase of the receivers was illegal, Sutton dismissed his concerns and the German proceeded to buy and ship the firearms to Sutton in the United States. Sutton directed the German to mislabel the package as “aluminum castings for use on boat,” falsely identify the United States of America as the country of origin, and address the delivery to the captain of a boat. The investigation revealed that Sutton was living on the addressee boat that was docked at a marina in Martin County, Florida. Sutton further advised his German contact “not to remember” to whom he sent the package, or otherwise respond to inquiries if law enforcement officers should ask about the firearms.
U.S. Customs and Border Protection Officer discovered the firearms upon inspection of the package when it arrived in the United States and transferred the package to HSI agents for investigation. A joint ATF and HSI investigation into the ownership of the addressee boat led agents to identify Sutton as the intended recipient of the package. When Sutton returned to the marina he contacted the management office to inquire about his package. An undercover ATF agent, acting as a marina employee, directed Sutton to the package. After Sutton took possession of the package and returned to his boat, he and a companion were stopped by HSI and ATF Special Agents and members of the Martin County Sheriff’s Office marine unit. Following consent by Sutton, the agents searched the boat and found the package containing the three lower receivers, that had been opened and reclosed by Sutton. Sutton admitted to ordering the firearms and acknowledged that they were not registered as required by federal law.
Mr. Ferrer commended the investigative efforts of ATF, HSI and the Martin County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
New Haven Man Sentenced to 4 Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS CARR, also known as “Tommy Love,” 27, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine. CARR also was ordered to perform 100 hours of community service.
CARR is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.
According to court documents and statements made in court, the investigation revealed that James Bowman, also known as “Jimmy-Jam,” operated a large-scale cocaine and crack cocaine trafficking operation in the greater New Haven area. CARR ran Bowman’s drug-selling location in the Fair Haven section of New Haven.
CARR was arrested on May 17, 2012. On January 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”). CARR has been detained since April 17, 2014, when his bond was revoked.
Bowman pleaded guilty and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
Montana U.S. Attorney's Office Receives National Award for Guardians ProjectRead the Press Release
WASHINGTON, D.C. – Department of Health and Human Services Inspector General Daniel R. Levinson recognized Montana’s U.S. Attorney, Mike Cotter, with the agency’s prestigious Inspector General's Award for Excellence for his efforts and the efforts of his office in combating corruption in federal grants and contracts with the Guardians Project. The Guardians Project involves a multi-agency strike force led by the agents of the Offices of Inspector General for Interior and Health and Human Services, the FBI and the IRS. Other law enforcement agencies that have contributed to the success of the Guardians Project include agents from the Offices for Inspector General from Education, Housing and Urban Development, Agriculture, Homeland Security, Justice, the Environmental Protection Agency and investigators from various tribal governments. U.S. Attorney Cotter received the award at the Cohen Federal Building in Washington, D.C. on Tuesday, June 9.
In accepting the award, U. S. Attorney Cotter was quick to acknowledge and applaud the hard work and talent of those attached to the Guardians Project. “All the honor belongs to the investigators and prosecutors who have trudged through the muck and mire of corrupt officials, greedy contractors, and opportunistic government employees,” he said. “Agents are on the road for weeks and away from their homes and families to root out corruption in Montana and to make the homes and families of our tribal communities better. They make the sacrifice and it is they that should receive the awards, the acknowledgement, and the gratitude for a job truly well done.”
"Our office is proud to present this award to the U.S. Attorney for this unique and successful partnership,” said Gerald Roy, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Kansas City Region. “The dedicated public servants of the Guardians Project have worked tirelessly to keep our federal programs solvent and bring those who steal from them to justice. I commend their diligent work.”
Agents working for the Inspectors General specialize in the investigation of fraud and corruption, and other forms of abuse of taxpayer monies, and possess specialized knowledge of federal programs. U.S. Attorney Mike Cotter supported the program, which was designed and launched by his Economic Crimes Unit attorneys in 2011, “as a way to do more than hold a particular defendant accountable, but also as a way to find errors in oversight and management of federal tax dollars that could lead to better government on the front end of the grants and contracts process.”
Since the Guardians Project began obtaining indictments from the federal grand jury in late 2012, thirty eight indictments and two informations have been filed charging 81 defendants and resulting in over 100 felony convictions for crimes including conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering, blackmail, and tax evasion. The Guardians Project created a partnership that merged the expertise and oversight responsibilities of the various Inspectors General with the resources and traditional public corruption investigation responsibility of the Federal Bureau of Investigation and the Internal Revenue Service.
Notable Guardians prosecutions are the convictions of six defendants associated with the Po’Ka Program for disadvantaged youth on the Blackfeet reservation, the prosecution and conviction of Tony Belcourt, Chief Executive Officer of the Chippewa Cree Construction Corporation, and former tribal Chairmen John Chance Houle and Bruce Sunchild of the Rocky Boy’s reservation. Eight members of the Dale Old Horn family were convicted in 2012 and 2013 for their role in a scheme to defraud the Crow Tribe using positions with the Crow Tribe Historic Preservation Office. The former Chief Executive Officer of the Rocky Boy Health Clinic, Fawn Tadios, and former Clinic Finance Manager Theodora Morsette were convicted by juries in 2014 and 2015, respectively. Another Health Clinic CEO, Tim Rosette, has been indicted on an assortment of bribery and theft charges, and the most recent acting CEO, Darrin Miller, has been indicted for tax evasion. Agents of the Guardians Project uncovered a $300,000 embezzlement in the Blackfeet Tribe’s TANF Program, and secured welfare fraud convictions of two employees of the Fort Belknap Tribe’s public assistance office. Agents also secured the conviction at a jury trial earlier this year of John Lyon, the State Director of the Bureau of Land Management for the Eastern States Region for paying his Deputy Director for eight months—about $112,000—even though that deputy had left his BLM job in July 2012 and began working for the Chippewa Cree Tribe in Montana. That former Deputy Director, Larry Denny, was also convicted for taking a federal paycheck through March of 2013 when the scheme was discovered.
Missouri Resident Charged with Federal Lacey Act ViolationsRead the Press Release
St Louis, MO – CHARLES "SAM" JAMES, Columbia, Missouri, was charged in a one-count federal indictment for violations of the Lacey Act for engaging in conduct that involved the sale of white-tailed deer transported in violation of Missouri and Florida law.
According to the indictment, in October 2013, Charles “Sam” James, co-owner of Timber Hollow Whitetails, transported eleven live white-tailed deer in interstate commerce in violation of state and federal laws from Missouri to a white-tailed deer farm in Florida. The transportation of these animals took place after a Florida state law took effect banning the importation of captive white-tailed deer. The defendant allegedly transported the deer from Timber Hollow Whitetails near Mexico, Missouri, in a rented utility box trailer, to a deer farm near Laurel Hills, Florida.
Federal law makes it unlawful to transport live white-tailed deer out of the State of Missouri or into the State of Florida without proper documentation of the animals and without required animal health records. These health records include certifying that captive-bred animals are free from diseases like chronic wasting disease, tuberculosis and brucellosis.
Chronic wasting disease is the chief threat to wild deer and elk populations in North America. The disease, which ultimately ends in the death of infected animals, is a transmissible neurological disease that produces small lesions in the brain of deer and elk and is characterized by loss of body condition and behavioral abnormalities.
If convicted, this charge carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by agents from the U.S. Fish and Wildlife Service, the Missouri Department of Conservation and the Florida Fish and Wildlife Conservation Commission. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Missouri Man Pleads Guilty to Illinois Bank RobberyRead the Press Release
On June 9, 2015, Jonathon M. Ford, a thirty-eight year old Fenton, Missouri, man pled guilty in federal district court, in East St. Louis, to Bank Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ford is scheduled for sentencing on September 29, 2015, at 10:30 a.m., at which time he faces a prison term of up to 20 years, a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Court proceedings revealed that on March 19, 2015, Ford entered Regions Bank in Smithton, Illinois, wearing a dark-colored hooded zip up jacket and black face mask. Ford approached a bank teller, pointed a BB gun at the teller, and then stated, "I need all of your money." The teller immediately removed $3,872 in United States currency from the drawer and handed it to Ford, who then fled from the bank. Shortly thereafter, Ford was captured by law enforcement officials and all of the stolen money was recovered.
This case was investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Miami Dade College Student Sentenced to 5 Years in Prison for His Involvement in a Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
A Miami Dade College student was sentenced to 5 years in prison, followed by three years of supervised release, and was ordered to pay restitution of $63,419.30 for his involvement in a stolen identity tax refund fraud scheme involving student financial services accounts.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Ronald Dumond, Jr., a/k/a “Swaggabankz,” a/k/a “Carltin Swagga Banks,” a/k/a “Junior,” 23, of Miami, Florida previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, one count of theft of government money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United State Code, Section 1028A(a)(1).
Court documents state that from August 8, 2011 to September 23, 2013, Dumond, Jr. participated in a tax fraud scheme with Bianca Noel, 22, of Miami, Florida, Mistie Faustin, 23, of Miami, Florida, and others where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. (HOI) accounts. Higher One provided financial services to colleges and universities throughout the United States, including Miami Dade College in Florida.
Dumond, Jr. recruited Noel, Faustin, and other MDC students to participate in the tax fraud scheme by offering them a chance to make money if they would allow stolen tax refunds to be deposited into their HOI accounts. Noel, Faustin and other MDC students agreed and provided Dumond, Jr. with their HOI account numbers and log-in information.
Dumond, Jr. submitted to the U.S. Department of Treasury 35 fraudulent tax returns claiming $186,223 in tax refunds and directed these refunds to be deposited into Noel's HOI account; submitted 26 fraudulent tax returns claiming $73,735 in tax refunds and directed these refunds to be deposited into Faustin's HOI account; and submitted 8 fraudulent tax returns claiming $27,602 in tax refunds and directed these refunds to be deposited into Dumond, Jr.’s HOI account. From April 1, 2012 through May 30, 2012, Dumond, Jr.’s HOI account received $3,417.00 in proceeds from stolen tax refunds from other MDC students' HOI accounts. Dumond, Jr. paid Noel, Faustin and other MDC students for allowing their HOI accounts to receive stolen tax refunds.
During a search warrant of Dumond, Jr.'s residence, federal agents found 4,250 names and social security numbers of real people on electronic devices (computers, CDs, and hard drives) and loose leaf papers. Law enforcement found files on CDs which contained lists of the MDC students and their HOI account information such as Noel and Faustin who participated in the tax fraud scheme. These files also contained lists with the names and social security numbers of victims who had fraudulent tax returns filed using their names and social security numbers and the HOI accounts and other debit cards in which the stolen tax refunds were deposited. IRS-CI determined that the names and social security numbers found were used to file fraudulent tax returns for the tax years 2011, 2012, and 2013.
Co-defendant Noel was sentenced on June 1, 2015 to 30 days in prison, followed by three years of supervised release, and was ordered to pay restitution of $32,586. Noel previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.
Co-defendant Faustin was sentenced on April 14, 2015 to two years of probation and was ordered to pay $20,819 in restitution. Faustin previously pled guilty to theft of government property, in violation of Title 18, United States Code, Sections 641 and 2.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
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.
Maryland Man Pleads Guilty to Involuntary Manslaughter in Traffic Fatality in Washington, D.C.Read the Press Release
WASHINGTON – Momodui I. Bello, 36, of Fort Washington, Md., pled guilty today to involuntary manslaughter and driving under the influence of alcohol, stemming from a recent traffic fatality in Washington, D.C., Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Bello entered the plea in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Sept. 4, 2015. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence between three and five years in prison.
According to the government’s evidence, on Sunday, March 22, 2015, at about 3:15 a.m., Bello was driving a Volkswagen Passat on Eastern Avenue with the victim, Nancy Tinoza, in the front seat, and a rear seat passenger. The group was coming from Mango Café in Bladensburg, Md., where Bello drank several alcoholic beverages. While driving in the 3400 block of Eastern Avenue NE, in the District of Columbia, Bello failed to maintain his lane or to reduce his speed and crashed the Volkswagen into the rear of a tractor-trailer combination truck that was parked in the curbside lane of Eastern Avenue. The passenger side of Bello’s Volkswagen struck the back of the truck, went under the truck, and came to a rest when it slammed into the truck’s rear wheels. The crash killed Ms. Tinoza, 26.
The evidence indicated that, at the time of the crash, Bello was traveling at 45 mph in the 25 mph zone, and that he did not apply his brakes or take any action to avoid the collision. While at a hospital after the crash, Bello submitted a urine sample which indicated the presence of alcohol with a concentration of .24 percent. A concentration of .10 percent of alcohol in urine is considered to be driving under the influence in the District of Columbia.
In announcing the plea, Acting U.S. Attorney Cohen commended the work of those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Investigations Unit and the Fifth District. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Jim Brennan. Finally, he commended the efforts of Assistant U.S. Attorney Edward A. O’Connell, who is prosecuting the matter.
Marshall County woman convicted of stealing from local non-profitRead the Press Release
WHEELING, WEST VIRGINIA – Richelle D. Blair, 37, of Glen Dale, West Virginia, was convicted today of embezzling money from a local non-profit organization, United States Attorney William J. Ihlenfeld, II, announced.
Blair was formerly employed by Marshall County Starting Points Center, Inc., a non-profit social services organization in Marshall County, West Virginia. Starting Points receives federal grants from the United States Department of Health and Human Services. Blair repeatedly utilized the organization’s funds to purchase items for her own personal use.
Blair pled guilty today to a criminal Information charging her with one count of “Theft from an Organization Receiving Federal Funds.” She faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge James E. Seibert presided.
Marion man arrested and charged, suspected of distributing "blue drop" heroinRead the Press Release
A Marion man was arrested on federal heroin and firearms charges, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Eric L. Creagh, 32, was charged in U.S. District Court with one count of possession with intent to distribute heroin and one count of being a felon in possession of a firearm.
"We hope today's arrest puts a dent in the heroin epidemic we've seen in Marion," Dettelbach said. "Our office remains committed to working with law enforcement and others to stem the heroin and opioid problem we see in all corners of our state."
According to a federal affidavit filed in the case:
A confidential informant purchased more than 20 grams of "blue drop" heroin from Creagh on five separate occassions between May 30 and June 8.
Based on this and other information, members of the Drug Enforcement Administration, the Marion Metro Drug Enforcement Unit (MARMET), the Marion Police Department and the Marion County Sheriff's Office executed search warrants at two homes owned by Creagh on June 10. Creagh was arrested as law enforcement agents recovered two firearms, approximately one kilogram of a heroin/fentantyl mixture, blue fabric dye, a face mask with a filtration system and rubber gloves, two hydraulic presses and approximately $60,000 in cash.
It is believed the equipment was used to dye the heroin and prepare if for distribution, according to the affidavit.
Creagh appeared in U.S. District Court in Toledo and was ordered detained.
This case is being prosecuted by Assistant U.S. Attorneys Thomas Weldon and Michael Freeman following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
Manhattan U.S. Attorney and FBI Announce Charges Against Three Correction Officers in Beating Death of Inmate at Rikers IslandRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of criminal charges against three New York City Correction Officers in the death of Ronald Spear, a pre-trial detainee at Rikers Island. BRIAN COLL, then a correction officer on Rikers Island, was charged with repeatedly kicking Mr. Spear in the head while he was fully restrained and lying prone on the floor, in violation of his rights under the United States Constitution. The two other officers involved in the incident, BYRON TAYLOR and ANTHONY TORRES, are, together with COLL, charged with obstruction of justice related offenses for covering up COLL’s assault, which resulted in the death of Mr. Spear. COLL and TAYLOR were arrested this morning on charges contained in a Criminal Complaint and are expected to be presented in federal court later today. TORRES ultimately disclosed the attempted cover-up to federal investigators and pled guilty earlier this week to a Criminal Information charging obstruction of justice offenses, pursuant to a cooperation agreement with the Government.
Manhattan U.S. Attorney Preet Bharara said: “Today, we announce more sad news out of Rikers Island. Specifically, we unseal charges against three correction officers alleging a killing and a cover-up. Both relate to the untimely death of Ronald Spear, a Rikers Island inmate who died in the early morning hours of December 19, 2012, after receiving a brutal beating. As I have said before, Rikers inmates, although walled off from the rest of society, are not walled off from the protections of our Constitution.”
Assistant Director-in-Charge Diego Rodriguez said: “The vast majority of law enforcement officials serve their communities with honor and integrity. But when an officer’s conduct exceeds the permissible use of force and violates a person’s civil rights, the foundation of our democracy is threatened. Today, we hear the call of Spear and other victims whose constitutionally protected rights have been abused and violated. We remember their collective plea for justice. And we vow never to forget our obligation to remove from the criminal justice system those who do not uphold the tenets of the legal system.”
According to the Complaint[1] and Information unsealed today in Manhattan federal court:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Ronald Spear was a pretrial detainee incarcerated on Rikers Island in the North Infirmary Command, a facility housing detainees who have serious or chronic medical needs. Mr. Spear was suffering from end-stage renal disease, which required him to receive dialysis treatments. Mr. Spear wore a bracelet indicating that he was at “Risk of Fall” and typically walked with a cane.
The Assault
In the early morning hours of December 19, 2012, Mr. Spear left the housing area in the infirmary unit in an attempt to see the on-duty doctor. Mr. Spear was stopped outside the doctor’s office by COLL. When Mr. Spear was informed that the doctor was not available to see him at that time, an altercation ensued. COLL punched Mr. Spear several times in the face and stomach, and Mr. Spear was then restrained by two other correction officers, ANTHONY TORRES and BYRON TAYLOR. While Mr. Spear was lying prone on the ground and was still restrained, COLL repeatedly kicked Spear in the head, even after TORRES attempted to shield the inmate’s head with his hand and shouted to COLL to stop. After COLL stopped kicking Mr. Spear, COLL lifted Mr. Spear’s head up, told him in substance not to forget who had done this to him, and then dropped Spear’s head to the ground. Mr. Spear was pronounced dead at the scene shortly after the assault.
Spear’s autopsy was conducted at the Bronx Office of the Chief Medical Examiner. The autopsy revealed that Spear had three recent contusions on his head. At least two of those contusions were what the Medical Examiner described as “above the hat line,” and were thus inconsistent with being sustained as part of a fall. One of the contusions involved what the Medical Examiner described as a “brain bleed” caused by the blunt force of the impact. The Medical Examiner confirmed that the placement of Spear’s head injuries was consistent with Spear being kicked in the head while he was lying prone on the ground.
The Cover-Up
After Spear’s death, COLL, TAYLOR, TORRES, and others covered up the true cause of Mr. Spear’s death by concocting a false story that turned Mr. Spear into the aggressor. Specifically, COLL falsely claimed that Mr. Spear had attacked him with a cane, and TORRES and an additional correction officer referred to in the Complaint as CW-1 agreed to support this false version of events and not to tell investigators of evidence that COLL had repeatedly kicked Mr. Spear in the head. Additionally – at the request of TAYLOR – COLL, TORRES, and CW-1 agreed to falsely claim that TAYLOR was not present for the incident. Consistent with their agreement, the conspirators filed false use of force reports with the Department of Correction and lied repeatedly to Department of Correction investigators, to the Bronx District Attorney, and, in TAYLOR’s case, to a federal grand jury.
The conspirators propagated this false version of events after being repeatedly advised by a Rikers captain and by representatives of the correction officers’ union to be “consistent” in the use of force reports the officers were required to submit following Spear’s death. The first draft of a use of force report by CW-1 was rejected by a captain because it did not match the version of events contained in reports by COLL and TORRES, and CW-1 was required to submit a revised report that was “consistent.” Additionally, when no cane was recovered from the crime scene – potentially calling into doubt COLL’s claim that Mr. Spear had attacked him with a cane – a Rikers captain simply directed a correction officer to take a cane from the supply area and pass it off to investigators as the cane used in the incident.
In his guilty plea yesterday before the Honorable Chief Judge Loretta A. Preska to obstruction of justice offenses, TORRES admitted that he had conspired with others to cover up the facts surrounding the death of Mr. Spear. TORRES was not charged with violating the civil rights of Mr. Spear and at one point sought to shield Mr. Spear from the attack.
* * *
BRIAN COLL, 45, of Smithtown, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum penalty of 10 years in prison, one count of conspiracy to obstruct justice, which carries a maximum penalty of 20 years in prison, one count of obstruction of justice, which carries a maximum penalty of 20 years in prison, one count of filing false forms, which carries a maximum penalty of 20 years in prison, and one count of conspiracy to file false forms, which carries a maximum sentence of five years in prison.
BYRON TAYLOR, 31, of Brentwood, New York, is charged with one count of obstruction of justice by lying to a federal grand jury, which carries a maximum sentence of 20 years in prison, one count of conspiracy to obstruct justice, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to file false forms, which carries a maximum sentence of five years in prison.
ANTHONY TORRES, 49, of New Rochelle, New York, pled guilty to one count of conspiracy to obstruct justice and file false reports, which carries a maximum penalty of five years in prison, and one count of filing a false report, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the Criminal Investigators at the United States Attorney’s Office. Mr. Bharara also thanked the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation, which remains ongoing.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Brooke E. Cucinella and Jeannette A. Vargas are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and COLL and TAYLOR are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.
Manchester Man Pleads Guilty to Conspiracy to Distribute Heroin and Conspiracy to Unlawfully Possess Cocaine with the Intent to DistributeRead the Press Release
CONCORD –Roberto Gracia, 41, of Manchester, pled guilty in United States District Court for the District of New Hampshire to conspiracy to distribute heroin and conspiracy to unlawfully possess cocaine with the intent to distribute, announced Acting United States Attorney Donald Feith.
Between May 5, 2014 and June 11, 2014, the FBI’s Safe Streets Gang Task Force, utilizing a cooperating source, made a series of six heroin purchases from the defendant or a co-conspirator at Gracia’s former residence located at 173 Belmont Street, Manchester. The total amount of heroin sold was in excess of 100 grams.
Gracia also pleaded guilty to conspiring to possess with the intent to distribute cocaine. During the investigation, Gracia conspired with another individual to purchase approximately ten kilograms of cocaine for $37,000 per kilogram from undercover FBI agents who posed as large scale cocaine traffickers from Miami, Florida. Gracia was arrested in Manchester on July 2, 2014 after he and his co-conspirator met with the undercover agents in a hotel parking lot in Manchester to take possession of the cocaine from the rear of an undercover FBI vehicle. Subsequently, approximately $115,000 in cash was located in a vehicle utilized by Gracia and his co-conspirator during the transaction.
A sentencing hearing has been scheduled for September 29, 2015. Gracia faces a mandatory minimum term of five years in prison on the heroin conspiracy and a maximum sentence of life in prison on the cocaine conspiracy.
The FBI’s New Hampshire Safe Streets Gangs Task Force is comprised of members of the FBI, Manchester Police Department, Hudson Police Department, Nashua Police Department, New Hampshire State Police, and the New Hampshire Department of Corrections Probation and Parole. Assistant United States Attorney Jennifer Cole Davis is prosecuting this case.