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21 July 2015
Springfield Man Sentenced to 84 Months in Prison for Heroin and Cocaine DistributionRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in U.S. District Court in Worcester for selling heroin and cocaine to a cooperating witness and an undercover federal agent.
Alberto Correa-Martinez, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to 84 months in prison, five years of supervised release, and a special assessment of $500. In February 2015, Correa-Martinez pleaded guilty to conspiracy to distribute cocaine, distribution of cocaine and distribution of heroin.
According to court documents, on three occasions between July 23 and Aug. 6, 2013, Correa-Martinez sold heroin and cocaine to an undercover federal agent. The last of these exchanges took place only yards from the state courthouse on Main Street in Springfield. All three of the aforementioned drug purchases were captured on video.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Assistant United States Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Rosebud Man Sentenced for Assaulting, Resisting, or Impeding a Federal OfficerRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, or Impeding a Federal Officer was sentenced on July 13, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Anthony One Star, age 27, was sentenced to 11 months of custody, followed by 1 year of supervised release, and a special assessment of $25 to the Federal Crime Victims Fund.
One Star was indicted by a federal grand jury on January 14, 2015. He pled guilty on June 2, 2015.
The conviction stems from an incident on November 25, 2014, when One Star went to a friend’s house and would not leave the residence. One Star, while intoxicated, was being disrespectful and spitting on the kitchen floor. A police officer was summoned to remove One Star from the home, who refused to leave, and a struggle ensued between the officer and One Star, who kicked at the officer, as well as spat on him.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Rock Hill Gang Member Sentenced on Federal Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that DeMario Ontrey Ware, age 27, of Rock Hill, South Carolina was sentenced today in federal court to 46 months imprisonment with 3 years of supervised release to follow. The sentence is to be served consecutive to the 12 year state sentence Ware is currently serving for armed robbery, burglary 2nd degree, and possession of a firearm in the commission of a violent crime. In February of this year, Ware plead guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Senior United States District Judge Cameron McGowan Currie imposed the sentence and ran it consecutive to the current state sentence in light of Ware’s criminal history.
Evidence presented at the earlier change of plea hearing established that on the morning of May 22, 2014, officers with the Rock Hill Police Department Violent Crimes Unit were patrolling when they noticed Ware, a known gang member, on the front porch of a residence on Hickory Lane. Officers knew that Ware had an outstanding warrant for criminal domestic violence, so they approached him and placed him under arrest for that warrant. During a search incident of Ware incident to his arrest, officers located a loaded Bryco .380 caliber handgun in his front pocket. Ware is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for armed bank robbery and his prior state convictions for discharging a firearm into a dwelling, and criminal conspiracy to commit assault and battery 1st degree.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rock Hill Police Department, and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Robber Sentenced to Nine Years in Prison for Two Store RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Willie Jones, age 31, of Towson, Maryland, today to nine years in prison, followed by five years of supervised release, for two commercial robberies and for using and brandishing a firearm during a crime of violence. Judge Hollander also ordered Jones to pay $750 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on November 2, 2013, Jones and co-conspirator Donte Johnson robbed a grocery on Claremont Avenue in Baltimore. Jones stood inside the door of the store as a look-out while Johnson held a shotgun to the store owner’s head and demanded money. The robbers took between $600 and $700.
On November 25, 2013, Jones and Johnson robbed a convenience store, located on Philadelphia Road in Baltimore. Specifically, two employees were working at the counter area of the store and two men approached the counter. Johnson pointed a shotgun at both employees and demanded that they open the registers. In fear for their lives, the clerks complied. Johnson reached over the counter and obtained money from one register. Jones, who admitted that he knew Johnson would be using a gun during the robbery, walked behind the counter and retrieved money from another register. The total loss to the store was $153.
Donte Johnson continued to rob the store’s customers. As this was happening, a customer was able to leave the store and get into his vehicle, which was parked in the store’s parking lot. He called 911 and waited for the robbers to exit. The customer saw the robbers run across Philadelphia Road to the parking lot of a bar across the street, and enter a dark green Honda Civic. The customer followed Jones and Johnson so he would be able to give directions to the police. Once the robbers turned onto Square Ridge Road, the car stopped, and Donte Johnson fired one round from a shotgun at the customer in his vehicle.
Baltimore County Police detectives were able to locate the shotgun used in the convenience store robbery. The shotgun had two unfired shotgun shells lying on the ground next to it and one fired shotgun shell casing loaded in the action of the gun.
Donte Maurice Johnson, age 30, previously pleaded guilty and is scheduled to be sentenced September 2, 2015 at 2:15 p.m. Jones and Johnson remain detained.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore County and Baltimore City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Rio Rancho Man Sentenced to Federal Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Joseph Raymond, 33, of Rio Rancho, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 39 months in prison followed by two years of supervised release for being a felon in possession of firearms and ammunition.
Raymond was arrested on Feb. 7, 2014, based on a criminal complaint alleging that he unlawfully possessed firearms and ammunition on Feb. 5, 2014, in Bernalillo County, N.M. Raymond was subsequently indicted on Feb. 26, 2014, and charged with unlawfully possessing a rifle and multiple rounds of ammunition. At the time, Raymond was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery in the state of Nevada.
On March 2, 2015, Raymond entered a guilty plea to the indictment, and admitted that on Feb. 5, 2014, a search warrant was executed as his residence where agents from the United States Postal Inspectors Service (USPIS) found a rifle and multiple rounds of ammunition. Raymond also admitted that USPIS agent also located evidence that he was involved in possession of stolen mail, and that from Dec. 2013 through Feb. 2014, he conspired with others to steal mail from mail receptacles to obtain checks, debit cards and other mail that might benefit Raymond and his co-conspirators.
This case was investigated by the USPIS and the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Linda Mott.
Ringleader of Large-Scale Stolen Identity Refund Fraud Scheme Sentenced to Seven Years in PrisonRead the Press Release
NEWARK, N.J. – The leader of an extensive scheme to obtain millions of dollars through fraudulently obtained tax refund checks issued by the U.S. Treasury was sentenced today to 84 months in prison, U.S. Attorney Paul J. Fishman announced.
Julio C. Concepcion, 50, of Passaic, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to steal government funds and one count of theft of government funds. Concepcion also pleaded guilty to a separate information charging him with one count of conspiracy to commit wire fraud in connection with his involvement in a separate mortgage fraud scheme. Judge McNulty imposed the sentence today in Newark federal court.
Concerning the Stolen Identity Refund Fraud (SIRF) scheme, according to documents filed in this case and statements made in court:
Members of the conspiracy, from at least October 2009 through May 2013, obtained the personal identifying information, including the names and Social Security numbers, of other individuals, including residents of Puerto Rico. Conspirators filed with the IRS false and fraudulent income tax returns using the stolen identity information, which generated income tax refund checks to which the members of the conspiracy were not entitled. The funds from these refund checks were then routinely transferred between bank accounts controlled by members of the conspiracy. The SIRF scheme resulted in more than $2.5 million in losses to the U.S. Treasury.
Julio C. Concepcion admitted to obtaining these fraudulent refund checks and recruiting others to open bank accounts and deposit the checks, sometimes providing them with false identification in order to do so. Concepcion’s two sons, Angel Concepcion-Vasquez, 31, and Julio Concepcion-Vasquez, 32, both of Passaic, and two other defendants, Jose Zapata, 67, of Passaic, and Romy Quezada, 24, of Paterson, New Jersey, each admitted to opening bank accounts into which these fraudulently obtained refund checks were deposited. Reyes Flores-Perez, 33, of Passaic, provided fraudulent identification documents to members of the scheme to further the conspiracy.
Angel Concepcion-Vasquez and Julio Concepcion-Vasquez were each sentenced to 16 months in prison on June 24, 2015. Zapata and Quezada were sentenced to three and two years of probation, respectively, on June 25, 2015. Flores-Perez was sentenced to 26 months in prison on June 29, 2015.
Concerning the mortgage fraud information, according to filed documents and statement made in court:
From January 2008 through March 2010, Concepcion conspired with others to commit wire fraud, specifically mortgage fraud. Once a conspirator purchased properties in New Jersey. Concepcion and others caused people to purchase the homes and receive mortgages for the homes either by using false identification documents or without the intent to live in the homes or pay off the mortgages.
Concepcion and others were able to cause parties to issue mortgages for the properties in reliance on fraudulent documents and material misrepresentations. The Federal Housing Administration (FHA) insured some of these mortgages.
As a result of these actions, the FHA and parties who approved the mortgages have lost more than $2.5 million.
In addition to the prison term, Judge McNulty ordered Concepcion to serve three years of supervised release and pay restitution of $5,643,695.46.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigations leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the Economic Crimes Unit and Cari Fais and Melissa Wangenheim of the General Crimes Unit.
Defense counsel: Genesis Peduto Esq. North Bergen, North Jersey.
Rhode Island Family Charged with Defrauding ImmigrantsRead the Press Release
BOSTON – A Rhode Island woman and her two daughters have been charged with federal wire fraud charges in connection with a scheme to defraud immigrants of hundreds of thousands of dollars over several years.
The indictment, which was unsealed this morning, charges Patria Zuniga, 53, Alba Peña, 24, and Indranis Rocheford, 27, all of Woonsocket, Rhode Island, with eight separate counts of wire fraud. Zuniga was initially charged with one count of wire fraud in May, and has been in custody since May 13, 2015. Peña and Rocheford were arrested at their homes in Rhode Island this morning. They are scheduled to appear before U.S. Magistrate Judge David H. Hennessy today at 2 p.m.
According to court documents, it is alleged that from 2010 through 2012, Zuniga, Peña, and Rocheford targeted immigrant victims with either no lawful status or temporary legal status in the United States. Victims were told that Zuniga worked for immigration authorities and could assist them in obtaining lawful immigration status documents. Zuniga’s services were initially offered to immigrant victims for $8,000 to $14,000; however, after the victims made the payments, Zuniga demanded additional funds, and threatened to have them deported if they refused to pay. Payments were initially made in cash, but later Zuniga, Peña, and Rocheford accepted money via cash deposits made directly into designated bank accounts (including accounts owned by Peña and Rocheford), money orders, and bank and Western Union wire transfers. It is alleged that Zuniga, Peña, and Rocheford received more $800,000 from immigrant victims over the course of the fraud.
“Dreams of a better life and a way out of the shadows make the immigrant community particularly susceptible to abusive immigration services scams like this one,” said U.S. Attorney Carmen M. Ortiz. “The defendants are alleged to have illegally enriched themselves by exploiting the vulnerability of immigrants and their families. This indictment should serve as a stern warning to other fraudsters that preying on the most vulnerable among us is illegal and will be prosecuted.”
The charging statutes provide for a maximum sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Michael Shea, Acting Special Agent in Charge of Homeland Security Investigation in Boston and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. The case is being prosecuted by Jordi de Llano of Ortiz’s Major Crimes Unit.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Revere Man Charged with Stealing from the Postal ServiceRead the Press Release
BOSTON – A mail theft charge against a longtime United States Postal Service employee was unsealed yesterday in U.S. District Court.
Carmelo J. Santisi, 47, was arrested yesterday after being charged with stealing cash and gift cards from the mail.
Santisi faces a maximum sentence of five years in prison, three years of supervised release, a fine of up to $250,000 and a special assessment of $100. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney for the District of Massachusetts Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the Northeast Area Field Office of the United States Postal Service Office of Inspector General, made the announcement today. The Revere Police Department assisted with the case.
The case is being prosecuted by Assistant United States Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Postal Employee Pleads Guilty to Mail TheftRead the Press Release
PITTSBURGH - A resident of Westmoreland County, Pennsylvania, has pleaded guilty in federal court in Pittsburgh on a charge of theft of mail matter by postal service employee, United States Attorney David J. Hickton announced today.
Frank J. Rysz, 49, of Latrobe, PA, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Rysz, while employed as a mail carrier in Mt. Pleasant, Pa., engaged in the theft of three first class letters and their valuable contents from the U.S. mails. Rysz also took one department store advertisement from the U.S. mails.
Judge Fischer scheduled the sentencing for Nov. 12, 2015 at 9 a.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Postal Service-Office of Inspector General conducted the investigation that led to the prosecution of Frank J. Rysz.
Philadelphia Woman Charged with Receiving Dead Mother's BenefitsRead the Press Release
PHILADELPHIA - Johnsie Boone-Brown, 47, of Philadelphia, PA, was charged by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her mother, after her mother’s death in May 2009 until her fraud was discovered in April 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $22,569.86.
If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $22,569.86, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Philadelphia Man Indicted on Gun ChargeRead the Press Release
PHILADELPHIA – Rashion Michaels, 24, of Philadelphia, was charged today by indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on May 20, 2014, Michaels was in possession of a Lorcin, Model L32, .32 caliber semi-automatic pistol, with an obliterated serial number that was restored to read: 006347, and a magazine loaded with 6 live rounds of .32 caliber ammunition.
If convicted, Michaels faces a maximum term of ten-years in prison, up to three-years of supervised release, a maximum fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Eric A. Boden.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Royalton man sentenced to nearly three years in prison for mortgage-relief scamRead the Press Release
A North Royalton man was sentenced to nearly three years in prison for operating a loan-modification scheme in which he defrauded more than 90 homeowners struggling to make their mortgage payments out of $286,000, 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.
Robert Walker, age 44, was sentenced ot 33 months in prison after previously pleading guilty to five counts of fraud.
Walker convinced homeowners on the verge of foreclosure to pay himself and his company an up-front fee of at least $1,995 but then did little or no work to get a loan modification for customers. He also promised customers that, if not modification was obtained, 80 percent of the fee would be reimbursed. But Walker never intended to reimburse those fees and when he failed to obtain a loan modification, he regularly refused the promised reimbursement, according to court documents.
According to court documents:
Walker incorporated and owned The Modification Group, or TMG, where he supervised and directed the employees. TMG did business under various names, including The Modification Group 4, U.S. Modification Group and Loan Modification Group, among others. It had offices at various times in Broadview Heights, Middleburg Heights, Bedford, Parma Heights, Ravenna and Cleveland.
TMG solicited people who were struggling to pay their home mortgages or that were pending foreclosure and offered to help improve their financial situation and avoid foreclosure by interceding on their behalf with the lending institution and obtaining a loan modification. TMG advertised itself – using direct mailings, telephone calls, a website and Internet and radio advertisements – as “specializ(ing) in loan modifications, debt settlements, credit repair, and financial planning services” and having “experienced negotiators that will secure your home with the lowest fixed rate available.” TMG claimed it “will eliminate or reposition all late payments back into your loan, bringing the account current, while also lowering your interest rate or payment, making it easier for you to afford.”
From 2009 through 2011, Walker devised a scheme to defraud by making representations that he knew TMG could not keep and had no intention of keeping, including: “”Are You In A Loan You Can’t Afford? We Will Modify It. Guaranteed.” Or “What [TMG] Can Do To Help: Lower interest rates (2-5.5 percent fixed) giving you a reduction in monthly payments; eliminate or shorten 2nd Lien, and/or lowering overall principle balance; Position yourself out of an interested only or adjustable rate mortgage and into a fixed 30 or 40 year payment.”
Walker, through TMG, required consumers to pay $1,995 or 1 percent of the mortgage balance, whichever was greater, up front, before TMG worked on obtaining a loan modification.
Walker directed his employees at TMG to solicit and accept clients for whom he knew TMG would not be able to obtain loan modifications on terms that that customers could realistically afford. Through TMG, he required customers to enter into written service agreements that were substantially one-sided, in favor of TMG. He also directed employees to tell potential customers that TMG would refund 80 percent of the fee paid if TMG failed to obtain a loan modification, when Walker had no intention of refunding the fee.
Walker, through TMG, prohibited customers from contacting their lending institution and directed customers to send any and all correspondence from their lenders to TMG.
TMG often failed to obtain any loan modification for the customer. In some cases, TMG never contacted its customer’s lending institution to discuss a modification even though the customer had paid substantial monies to Walker and TMG to do so.
Walker and his employees at TMG often created illegitimate reasons that they claimed voided TMG’s contract to avoid refunding customer’s fees. For example, TMG often told customers that they had not provided requested documents quickly enough, and terminated their contracts without a refund.
Walker, through TMG, told customers who attempted to cancel their contracts that doing so was a breach that voided their right to a refund. He often refused to issue a refund for customers for whom TMG had failed to obtain a loan modification unless the customer filed a complaint with a consumer protection agency.
Defrauded customers include residents in Lakewood, Cleveland, Eastlake, Streetsboro and North Ridgeville, as well as North Carolina, Virginia, Connecticut, Indiana and elsewhere, according to the court documents.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation and the Ohio Attorney General’s Office, Consumer Protection Section.
New Jersey Man Sentenced for Submitting False Documents to City of PhiladelphiaRead the Press Release
PHILADELPHIA - Ronen Bakshi, 54, of Voorhees, New Jersey, was sentenced today to one year and one day in prison for falsifying records to obstruct a matter within the jurisdiction of the United States Environmental Protection Agency (EPA) and wire fraud. Bakshi submitted false documents to the City of Philadelphia’s Air Management Services office in connection with a project for removal of asbestos-containing material from a former church located at 1133 Spring Garden Street in Philadelphia, and billed the non-profit owner of the property for work he did not perform. He pleaded guilty on March 18, 2015 to both counts of the indictment.
United States District Court Judge Paul S. Diamond ordered that the defendant begin serving his sentence immediately. In addition to the prison term, Judge Diamond imposed a $30,000 fine, a $200 special assessment, and a year of supervised release to follow imprisonment.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the City of Philadelphia’s Air Management Services office. The case is being prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller of EPA.
Nevada City Woman Pleads Guilty to Marijuana Cultivation and Structuring Currency Transactions on First Day of TrialRead the Press Release
SACRAMENTO, Calif. — Patricia Jane Albright, 64, of Nevada City, pleaded guilty on Monday to conspiring to manufacture marijuana, manufacturing marijuana, and structuring currency transactions to evade federal reporting requirements, United States Attorney Benjamin B. Wagner announced.
On September 18, 2014, Albright’s son and co-conspirator, Jordan Wirtz, pleaded guilty to federal firearms charges. On February 26, 2015, the Honorable Troy L. Nunley sentenced Wirtz to five years in prison.
According to court documents, between 2008 and September 2010, Albright and others worked together to manufacture marijuana on two properties she owned near Nevada City and Georgetown. Marijuana from Albright’s operation was regularly shipped out of state under fake names and addresses. At the time of her arrest on September 28, 2010, investigators found marijuana plants, cash, processed marijuana, and two firearms.
When Albright purchased the property near Georgetown in 2008 for growing marijuana, she structured 21 cash transactions at six different financial institutions over three days so she could avoid federal reporting requirements related to cash deposits.
Albright is scheduled to be sentenced by Judge Nunley on December 3, 2015. The plea agreement contemplates a sentence of five years and five months in prison. The actual sentence, however, will be determined at the discretion of the court at the hearing.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation; the U.S. Drug Enforcement Administration; the California Department of Justice; and the sheriff’s offices of Nevada County, Placer County, and El Dorado County. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
During the course of the investigation which involved the execution of 16 search warrants in three different counties, law enforcement seized over 4,100 marijuana plants, over 200 pounds of processed marijuana, and numerous firearms. A number of the defendants were armed at the time of their arrest, and several of the defendants had prior felony convictions for narcotics offenses. One defendant was arrested in a marijuana grow with a firearm while on pretrial release from an earlier arrest. He was facing charges for manufacturing marijuana in Southern California in 2009. Documents and items found at a number of the search locations show hundreds of thousands of dollars in financial transactions, and the interstate shipment of cash and narcotics.
Nampa Gang Member Sentenced for Selling MethamphetamineRead the Press Release
BOISE – Johnny Lee Martinez, 33, of Nampa, Idaho, was sentenced yesterday to 57 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Martinez to serve four years of supervised release following his prison term, during which Martinez may not have contact with documented gang members. Martinez pleaded guilty to the charge on May 5, 2015.
According to the plea agreement, Martinez admitted to selling methamphetamine to a police informant on October 24, 2013, and on February 12, 2014, in Nampa, Idaho.
This case and other related cases are the result of an investigation by the Treasure Valley Metro Violent Crimes Task Force, which focused on the “Norteno” Northside gang that is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation. In addition to Martinez, five other defendants have been sentenced. Guadalupe Serrano, 35, of Caldwell, was sentenced on April 21, 2015, to 75 months in prison for possession of methamphetamine with intent to distribute and for possessing firearms in furtherance of the drug trafficking crime. Nicole Danelle Nieto, 31, of Nampa, was sentenced on May 26, 2015, to 41 months in prison for distributing methamphetamine. Jose Manuel Menchaca, 35, of Nampa, was sentenced May 28, 2015, to 60 months in prison for distributing methamphetamine. On June 17, 2015, Brandi Larrea, 31, of Nampa, was sentenced to 48 months in prison for distributing methamphetamine and Tara Noelle Rivera, 30, of Nampa, was sentenced to 24 months in prison for distributing methamphetamine. Three others have pleaded guilty and are awaiting sentencing including Guillermo Farias Jr., 29, and Michael Bradshaw, 31, both from Nampa, and Kenny P. Breedlove, 35, from California. Three others are scheduled for trial including Richard Lobato, 51, Jose Enrique Olvera Jr., 51, both from Nampa, and Isaac Bright, 21, from Caldwell. Two other defendants have outstanding warrants, including Ruben Rodriguez, 36, and Veronica Cantu, 26, both from Nampa.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Milwaukee Man Sentenced for Transportation for ProstitutionRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Milwaukee, Wisconsin, man convicted of Transportation for Prostitution was sentenced on July 16, 2015, by U.S. District Judge Karen E. Schreier.
Jaquon Duckworth, age 23, was sentenced to 10 months in custody, followed by 2 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.
Duckworth was indicted on the charge by a federal grand jury on July 8, 2014. He pled guilty on to the Indictment on April 22, 2015.
Sioux Falls Police detectives on the Street Crimes Unit became aware of prostitution activity occurring at a local hotel on June 22, 2014. Further investigation led to the defendant, Jaquon Duckworth, who was posting advertisements on line and accepting phone calls to arrange meetings for commercial sexual activity. Duckworth later admitted that he traveled from Milwaukee, Wisconsin, to Sioux Falls with a woman for the purpose of having her engage in prostitution activity.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Duckworth was immediately turned over to the custody of the U.S. Marshals Service.
Milwaukee Man Indicted for Sex TraffickingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Milwaukee, Wisconsin, man has been indicted by a federal grand jury for Sex Trafficking by Force, Fraud, or Coercion.
Justin Damon Keith, age 30, was indicted on July 7, 2015. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 14, 2015, and pled not guilty to the Indictment.
The charge carries a mandatory minimum penalty upon conviction of 15 years in prison, with a maximum of life in prison, and/or a $250,000 fine, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Between July 2014 and May 2015, the defendant allegedly recruited, enticed, harbored, transported, provided, obtained, and maintained a person, knowingly and recklessly disregarding that means of force, threats of force, fraud, and coercion would be used to cause the victim to engage in a commercial sex act.
The charge is merely an accusation and Keith is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department, U.S. Department of Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Keith was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Middleton Mortgage Broker Convicted of Bank FraudRead the Press Release
BOSTON – A mortgage broker from Middleton was convicted today of attempted bank fraud in federal court.
Michael P. O’Donnell, 53, was convicted of one count of bank fraud after a three-day bench trial before the Honorable Douglas P. Woodlock, United States District Judge. Judge Woodlock scheduled sentencing for Oct. 20, 2015.
O’Donnell, through his company AMEX Home Mortgage, knowingly engaged in a scheme to submit false loan applications to lenders to obtain mortgage loans on behalf of borrowers seeking to purchase or refinance real estate. The trial focused on O’Donnell’s submission of fraudulent information and documents on behalf of a Salem homeowner for two loans totaling nearly $400,000 to re-finance existing loans. O’Donnell represented to lenders that the Salem homeowner had income of $10,000 a month, when in fact the homeowner earned only about $1,200 a month. O’Donnell prepared and submitted to the lenders bogus bank account statements which reflected the homeowner as having more than $50,000 in savings. In reality, no such account actually existed, and she had far less in actual savings. Additionally, O’Donnell submitted bogus letters from an accountant representing that he had prepared tax returns for the Salem homeowner’s business for the prior two years; however, the homeowner did not even know the accountant and had no business.
Judge Woodlock found O’Donnell guilty of attempting to fraudulently obtain a $44,000 loan on behalf of the Salem homeowner from the now-defunct Countrywide Bank, FSB. O’Donnell collected fees totaling more than $15,000 from the two loans.
O’Donnell faces a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1,000,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Veronica M. Lei of Ortiz’s Asset Forfeiture Unit and Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Mashpee Resident, Former New York Pediatrician Sentenced for Distribution and Possession of Child PornographyRead the Press Release
BOSTON - A former New York pediatrician and resident of Mashpee was sentenced today for distribution and possession of child pornography.
Daniel J. O’Hern, 65, was sentenced today by U.S. District Court Denise J. Casper to 63 months in prison to be followed by five years of supervised release and a fine of $12,500. O’Hern pleaded guilty in April to distribution and possession of child pornography. Following the completion of his sentence, O’Hern will be required to register as a sex offender with the Sex Offender Registration Board.
In May 2014, law enforcement discovered that O’Hern was distributing child pornography when he utilized a public file sharing program to post pictures and videos of minors, between the ages of five and 12 years old, engaged in sexually explicit conduct with adults. In June 2014, federal agents executed a search warrant at O’Hern’s residence and seized multiple computers, external hard drives, hundreds of DVDs and other media storage devices which contained an extensive collection of images and videos depicting children being sexually assaulted by adults. O’Hern was arrested following the execution of the search warrant and has been held in federal custody since that time.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Masphee Police Chief Rodney Collins; and Barnstable Police Chief Paul MacDonald made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys Offices and the Criminal Divisions CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Marietta Industrial Enterprises, Inc. Pleads Guilty to Causing Oil Spill on Ohio RiverRead the Press Release
COLUMBUS, OHIO -- Marietta Industrial Enterprises, Inc. (MIE) pleaded guilty today in U.S. District Court in Columbus to charges related to an oil spill on the Ohio River caused by MIE on October 2, 2013.
Carter Stewart, U.S. Attorney for the Southern District of Ohio, Jason D. Wimer, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS), Ohio Attorney General Mike DeWine, and Justin A. Oesterreich, Acting Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA) announced the guilty plea today by MIE in front of U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, MIE owned and operated a barge which was located on the Ohio River, near the MIE facility in Marietta, Ohio. On October 1, 2013, an MIE employee pumped out the ballast tanks of the barge which contained a significant amount of oil, without first checking the tanks. By 11:00 a.m. on the day of the spill, an oil sheen could be seen on the Ohio River approximately 75 feet downstream of the barge.
In the first count of the information, MIE is charged with violating the Oil Pollution Act for negligently causing an oil spill on the Ohio River. Also related to the oil spill, in the second count, MIE is charged with violating the Refuse Act, which prohibits the discharge of oil or oily wastewater from a barge into navigable waters of the United States.
A plea agreement, which has been submitted for the Court’s approval, provides that MIE will be fined $35,000, implement a compliance program, and be placed on probation for one year. In addition, the plea agreement provides that $7,500 of the fine will be paid to the individual who reported the spill to the Coast Guard, and that MIE will make a community service payment of $1,000 to an organization to be named at the time of sentencing.
This case was jointly investigated by the Coast Guard and the U.S. EPA Criminal Investigation Division, all members of the Central Ohio Environmental Crimes Task Force, and is being prosecuted by Senior Trial Attorney Christopher J. Costantini, Special Assistant U.S. Attorney Brad Beeson and Assistant U.S. Attorney J. Michael Marous.
Manhattan U.S. Attorney Announces Charges Against Two Florida Men for Operating an Underground Bitcoin ExchangeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Robert Sica, Special Agent-in-Charge of the New York Field Office of the United States Secret Service, announced today the unsealing of criminal complaints charging ANTHONY R. MURGIO and YURI LEBEDEV with running an unlicensed Internet Bitcoin exchange, which they operated through a phony front-company and, at times, a federal credit union that MURGIO acquired for purposes of the scheme. The defendants were arrested today at their residences in Florida, and are expected to be presented today in federal court in the Middle District of Florida.
According to the allegations contained in the criminal complaints unsealed today in Manhattan federal court[1]:
Since at least late 2013, MURGIO, LEBEDEV, and their co-conspirators have knowingly operated Coin.mx, a Bitcoin exchange service, in violation of federal anti-money laundering (“AML”) laws and regulations, including those requiring money services businesses like Coin.mx to meet registration and reporting requirements set forth by the United States Treasury Department. Through Coin.mx, MURGIO, LEBEDEV, and their co-conspirators enabled their customers to exchange cash for Bitcoins, charging a fee for their service. In doing so, they knowingly exchanged cash for people whom they believed may be engaging in criminal activity. MURGIO and his co-conspirators have also knowingly exchanged cash for Bitcoins for victims of “ransomware” attacks, that is, cyberattacks in which criminals (here, distributors of the ransomware known as “Cryptowall”) electronically block access to a victim’s computer system until a sum of “ransom” money, typically in Bitcoins, is paid to them. In doing so, MURGIO, and his co-conspirators knowingly enabled the criminals responsible for those attacks to receive the proceeds of their crimes, yet, in violation of federal anti-money laundering laws, MURGIO never filed any suspicious activity reports regarding any of the transactions.
In total, between approximately October 2013 and January 2015, Coin.mx exchanged at least $1.8 million for Bitcoins on behalf of tens of thousands of customers. In addition, in the course of the scheme, MURGIO transferred hundreds of thousands of dollars to bank accounts in Cyprus, Hong Kong, and Eastern Europe, and received hundreds of thousands of dollars from bank accounts in Cyprus and the British Virgin Islands, in furtherance of the operations of his unlawful business.
MURGIO, LEBEDEV, and their co-conspirators engaged in substantial efforts to evade detection of their scheme by operating through a phony front-company, “Collectables Club,” and maintaining a corresponding phony “Collectables Club” website. In doing so, they sought to trick the major financial institutions through which they operated into believing that their unlawful Bitcoin exchange business was simply a members-only association of individuals who discussed, bought, and sold collectable items, such as sports memorabilia.
More recently, in an effort to evade potential scrutiny from these institutions and others, MURGIO obtained beneficial control of a New Jersey-based federal credit union (the “Credit Union”) which served primarily low-income local residents. MURGIO then installed LEBEDEV and others on the Credit Union’s Board of Directors, and transferred Coin.mx’s banking operations to the Credit Union, which MURGIO, LEBEDEV and other co-conspirators operated, at least until early 2015, as a captive bank for their unlawful business. At that time, after discovering that substantial payment processing activity was being conducted through the Credit Union, the National Credit Union Administration forced the Credit Union to cease engaging in such activity, and MURGIO thereafter found new, overseas payment processing channels for his unlawful business.
***
MURGIO, 31, of Tampa, Florida, and LEBEDEV, 37, of Jacksonville, Florida, are each charged with one count of conspiracy to operate an unlicensed money transmitting business, and one count of operating an unlicensed money transmitting business, each of which carries a maximum sentence of five years in prison. MURGIO is also charged with one count of money laundering, which carries a maximum sentence of 20 years in prison and one count of willful failure to file a suspicious activity report, which carries a maximum sentence of five years in prison.The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the Secret Service. He also thanked the National Credit Union Administration for their assistance with the investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Nicole Friedlander, Sarah Lai, and Eun Young Choi are in charge of the prosecution.Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the criminal complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the complaints, and the description of the complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Charges Against Three Defendants in Multimillion-Dollar StockRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Robert J. Sica, Special Agent in Charge of the US Secret Service New York Field Office (“USSS”) announced today the unsealing of an indictment charging GERY SHALON, JOSHUA SAMUEL AARON, and ZIV ORENSTEIN with orchestrating a scheme to manipulate the price and volume of traded shares in numerous publicly traded stocks by means of deceptive and misleading email campaigns, and manipulative, prearranged stock trading. SHALON and ORENSTEIN were arrested today in Israel by the Israel Police. The United States Attorney's Office will seek their extradition to stand trial in the United States. AARON remains at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants manipulated trading in U.S. securities from overseas, using fake identities to funnel millions of dollars in unlawful proceeds through a web of international shell companies. Using false and misleading spam emails sent to millions of people, these defendants allegedly directed their pump-and-dump scheme from their computers halfway around the world.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Crimes, such as the ones alleged herein, are multinational and complex in nature. The defendants are alleged to have profited in the millions of dollars and defrauded innocent investors for their own gain. The FBI is committed to working with our partners, both foreign and domestic, to ensure the integrity of our markets and protect our communities from fraud and deception, regardless of the scheme, means, or medium.”
USSS Special Agent in Charge Robert J. Sica said: “This case highlights the Secret Service’s investigative skills and our commitment to collaborate with our partners in detecting and dismantling highly sophisticated transnational criminal enterprises targeting the United States. These crimes can have a detrimental impact to our nation’s critical financial infrastructure. The Secret Service, in conjunction with its many law enforcement partners across the United States and around the world, is committed to deploying cutting edge investigative practices and technology in order to bring these offenders to justice.”
In a separate action, the United States Securities and Exchange Commission (“SEC”) announced civil charges against SHALON, AARON and ORENSTEIN.
According to the allegations contained in the indictment unsealed today in Manhattan federal court[1]:
Since 2011, SHALON, AARON, ORENSTEIN, and their co-conspirators have orchestrated multi-million dollar stock manipulation -- or “pump and dump” -- schemes to manipulate the price and trading volume of numerous publicly traded microcap stocks (“penny stocks”) in order to enable members of the conspiracy to sell their holdings in those stocks at artificially inflated prices. In furtherance of the conspiracy, SHALON and AARON partnered with “promoters” who identified the companies whose stock would be targeted for manipulation. In doing so, AARON acted as the scheme’s “front-man,” using the alias “Mike Shields” (including false identification and a Social Security Number belonging to another person) to communicate with the promoters and others at SHALON’s direction. In some instances, at the time SHALON and AARON partnered with the promoters, the targeted companies were already publicly traded, and in other instances, SHALON and AARON worked with the promoters to cause the companies to become publicly traded in furtherance of the scheme. In either case, upon partnering with the promoters, SHALON, AARON and the promoters agreed upon the compensation SHALON and AARON would receive for their role in the scheme, which typically amounted to either hundreds of thousands of dollars, or to shares in the targeted stock that SHALON and AARON typically sold for hundreds of thousands or millions of dollars in profits in the course of the scheme.
Also in furtherance of the conspiracy, the promoters -- along with, at certain times, SHALON and AARON -- acquired control over all or substantially all of the free-trading shares of the targeted stock, that is, shares that the owner could trade without restriction on a national stock exchange or in the over-the-counter market. At certain times, in furtherance of the scheme, when they acquired such free-trading shares, SHALON and AARON held the shares in brokerage accounts in the United States, which were opened in the names of shell companies (the “Brokerage Accounts”) and managed in part at SHALON’s direction by ORENSTEIN under aliases that ORENSTEIN supported with false and fraudulent passports and other false personal identification information.
As a further part of the scheme to defraud, after members of the conspiracy acquired control of a substantial portion of the free-trading shares of the targeted stock, SHALON, AARON, and their co-conspirators artificially inflated the stock’s price and trading volume through two fraudulent and deceptive means. First, certain members of the conspiracy typically executed pre-arranged manipulative trades to cause the stock’s price to rise small amounts on successive days. Second, in connection with that trading, SHALON and AARON began disseminating materially misleading, unsolicited (“spam”) emails – emailing up to millions of recipients per day – that falsely touted the stock in order to trick others into buying it. As orchestrated by SHALON and AARON, these emails contained materially false and fraudulent statements including, for example, (i) that the stock’s recent trading activity reflected legitimate demand for the stock (when in fact, and as AARON and SHALON well knew, the trading activity was caused in whole or in part by the manipulative trading of their co-conspirators) and (ii) that the emails were being distributed and financed by certain third parties when, in fact, and as AARON and SHALON well knew, the emails were being distributed and financed by SHALON, AARON, and their co-conspirators, who controlled all or nearly all of the free-trading shares of the stock.
After causing the stock’s price and trading volume to increase artificially during the days or weeks of the email promotional campaign, members of the conspiracy (including, when they owned shares, SHALON and AARON) began dumping, or selling, their shares in a coordinated fashion, often resulting in huge profits to members of the conspiracy. SHALON and AARON alone earned millions of dollars in illicit profits this way, selling shares of manipulated stocks from the Brokerage Accounts in coordination with their email promotional campaigns and co-conspirators. The co-conspirators’ massive coordinated sales typically placed downward pressure on the stock’s price and caused its trading volume to plummet, exposing unsuspecting investors to significant losses. SHALON and AARON then laundered their criminal proceeds overseas, directing millions of dollars of their criminal profits to a shell company bank account in Cyprus for further distribution in part to another Cyprus-based shell company account owned and controlled by AARON, and to other overseas shell company accounts beneficially owned and controlled by SHALON and other members of the conspiracy.
***
For this alleged conduct, SHALON, AARON, and ORENSTEIN are charged with the following offenses, which carry the maximum prison terms listed below:
Count
Defendants
Charge
Maximum Prison Term
One
SHALON, AARON, and ORENSTEIN
Conspiracy to commit securities fraud
Five years
Two
SHALON, AARON, and ORENSTEIN
Conspiracy to commit wire fraud
20 years
Three
SHALON, AARON, and ORENSTEIN
Securities fraud
20 years
Four
SHALON and AARON
Securities fraud
20 years
Five
SHALON and AARON
Securities fraud
20 years
Six
SHALON and AARON
Securities fraud
20 years
Seven
SHALON, AARON, and ORENSTEIN
Securities fraud
10 years
Eight
SHALON, AARON, and ORENSTEIN
Wire fraud
20 years
Nine
SHALON, AARON, and ORENSTEIN
Conspiracy to commit identification document fraud
15 years
Ten
SHALON and AARON
Aggravated Identity Theft
Mandatory two years
Eleven
SHALON and AARON
Conspiracy to commit money laundering
20 years
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
SHALON, 31, of Savyon, Israel, and ORENSTEIN, 40, of Bat Hefer, Israel, are Israeli nationals, and were arrested earlier today at their residences. AARON, 31, a U.S. citizen who resides in Moscow, Russia, and Tel Aviv, Israel, remains at large.
Mr. Bharara praised the investigative work of the FBI, the USSS, and expressed his sincere gratitude to the Israel Police and the Israel Ministry of Justice for their support and assistance with the investigation. He also thanked the SEC.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Nicole Friedlander, Sarah Lai, and Eun Young Choi are in charge of the prosecution.Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the indictment and the description of the indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Charged in District Court with Firearm OffensesRead the Press Release
St. Thomas, USVI – Achille Heywood, 32, made his initial appearance Monday before U.S. Magistrate Judge Ruth Miller after being charged in a four-count Information with Possession of a Firearm by a Convicted Felon, Possession of Ammunition by a Convicted Felon, Possession with Intent to Distribute Narcotics and Use of a Firearm During the Commission of Drug Trafficking, United States Attorney Ronald W. Sharpe announced. Heywood was released after posting 10% of a $35,000 bond.
According to the Information, which was filed June 16 in District Court on St. Thomas, Heywood was found in possession of a firearm and ammunition after he was convicted in the Superior Court of unauthorized possession of a firearm.
If convicted of Possession of a Firearm by a Convicted Felon or Possession of Ammunition by a Convicted Felon, Heywood faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of Possession with intent to Distribute Narcotics, he faces a maximum sentence of 20 years in prison and $1million fine. For Use of a Firearm during the Commission of Drug Trafficking, Heywood faces a mandatory consecutive sentence of five years in prison.
United States Attorney Sharpe reminds the public that an Information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Louisville Man Sentenced to 24 Months in Prison for Defrauding Two Churches and Several BusinessesRead the Press Release
Ordered to pay $114,018 restitution to the victims
BOWLING GREEN, Ky. – A Louisville man who admitted to defrauding two churches and several businesses was sentenced Thursday, by U.S. District Judge Greg N. Stivers, to 24 months in prison and ordered to pay restitution to the victims in the amount of $114,018 announced United States Attorney John E. Kuhn, Jr.
Timothy Ray Hatler, 59, was charged in a federal indictment on April 16, 2014 with three counts of mail fraud and one count of wire fraud and pleaded guilty to the charges on November 14, 2014.
According to the plea agreement, between March 18, 2011 and September 17, 2013, Hatler falsely represented to the public, through websites and internet postings, that he manufactured and sold light-emitting diode (LED) signs.
Hatler designed a scheme by doing business under various names including SignTech Manufacturing, SkyTech Signs, and Digital View Marketing. Hatler would inform individuals interested in purchasing LED signs that if they provided him with payment by mail or wire, he would provide signs made to their specifications. Hatler opened two bank accounts for the scheme and used a mailbox drop service in Atlanta to forward mail to two Louisville addresses and an address in Scottsville, Kentucky.
On a few occasions, Hatler ordered LED signs from other companies such as Olive LED and Soulphase, shipped the products to his customers, then requested that those customers serve as references for potential future customers. Most customers did not receive the signs they ordered and Hatler admitted to using the money for his personal use and benefit.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the U.S. Federal Bureau of Investigation (FBI).
Laguna Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Anthony Riley, 38, pleaded guilty this morning in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge. Under the terms of his plea agreement, Riley will be sentenced to a federal prison term within the range of 13 to 18 months followed by a term of supervised release to be determined by the court.
Riley, a member and resident of Laguna Pueblo, N.M., was arrested on May 1, 2015, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on March 4, 2015, in Indian Country in Cibola County, N.M. According to the criminal complaint, Riley was charged as a habitual offender based on his two prior domestic violence convictions in Laguna Tribal Court. Laguna Tribal Court records reflect that Riley’s prior convictions occurred in 2005 and 2009, and that the victim was also an intimate partner.
Riley was subsequently indicted on the same charge on May 28, 2015.
During today’s proceedings, Riley pled guilty to the indictment and admitted that on March 4, 2015, he assaulted the victim, his intimate partner by striking her in the head and face with his fists. He also acknowledged his prior tribal court convictions. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kamiah Woman Sentenced for Resisting and Impeding a FBI AgentRead the Press Release
COEUR D'ALENE - Pennie Sue Moffett, 41, of Kamiah, Idaho, was sentenced yesterday to ten months in prison to be followed by three years supervised release for resisting and impeding an officer of the United States, U.S. Attorney Wendy J. Olson announced. Moffett pleaded guilty on April 28, 2015.
According to the plea agreement, on March 27, 2014, Moffett obstructed, resisted and impeded an FBI agent who was engaged in his official duties by kicking the agent as he assisted in a tribal arrest. The plea agreement states the FBI agent did not suffer bodily harm during the incident.
The case was investigated by the Federal Bureau of Investigation (FBI) and Nez Perce Tribal Police.
Justice Department Will Not Challenge AT&T's Acquisition of DirecTVRead the Press Release
The Department of Justice’s Antitrust Division announced today that it will close its investigation into AT&T’s proposed $48 billion acquisition of DirecTV.
This announcement follows a statement by FCC Chairman Tom Wheeler that a final order approving the transaction has been circulated to the Commission.
“After an extensive investigation, we concluded that the combination of AT&T’s land-based internet and video business with DirecTV’s satellite-based video business does not pose a significant risk to competition,” said Assistant Attorney General Bill Baer of the Antitrust Division. “Our investigation benefitted from the Division’s close and constructive working relationship with the FCC. The commitments that the proposed FCC order includes, if adopted, will provide significant benefits to millions of subscribers.”
Johnson County Man Arrested and Detained on Federal Complaint Charging Production of Child PornographyRead the Press Release
WICHITA FALLS, Texas — Ryan Anthony Winner of Olney, Texas, remains in federal custody following his arrest on a federal complaint charging production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Winner, 33, was arrested Monday and made his initial appearance today in federal court in Wichita Falls, Texas, where U.S. Magistrate Judge Robert K. Roach ordered that he remain in federal custody pending a probable cause and detention hearing set for July 28, 2015.
According to the filed complaint, law enforcement learned that an individual, later identified as Winner, had created albums containing images of a minor male on a website that is used by persons interested in exchanging child pornography in order to meet and become trading partners.
Further investigation revealed that Winner had created an account to which he had uploaded files containing suspected child pornography. On July 16, 2015, a search warrant was executed by law enforcement at two residences in Olney – one belonging to Winner and the other to his father.
Winner, according to the affidavit filed with the complaint, advised he had taken photos of MV1 (Minor Victim 1), a minor male in his Sunday school class, and that agents would locate files on his computer depicting sexual encounters between him and MV1. Winner advised that he did not have internet access at his residence and used the internet at his father’s residence. Law enforcement seized Winner’s laptop and files depicting the sexual abuse of a prepubescent minor male were discovered.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the case to a grand jury for indictment. The maximum statutory penalty for the offense as charged is not less than 15 years, or more than 30 years, in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), is investigating, with assistance from the Texas Department of Public Safety and the Young County Sheriff’s Office.
Anyone who may have been victimized related to this case should contact the toll-free tip line to Homeland Security Investigations (HSI) at 1-866-347-2423.
Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Indictment: Eight Defendants Trafficked $1.7 Million Worth of Cocaine in Topeka AreaRead the Press Release
TOPEKA, KAN. - Eight defendants, including six from Topeka, were indicted Tuesday on federal charges of trafficking $1.7 million worth of powder cocaine in the Topeka area, U.S. Attorney Barry Grissom said.
Charged are:
Booker Zachery Johnson, III, 38, Topeka, Kan.
Quinton “Ron” Warner, 39, Houston, Texas.
Huey James Love, 57, Grandview, Mo.
Shanae Ransom, 30, Topeka, Kan.
Christopher McMillon, 32, Topeka, Kan.
Frederick Brooks, 35, Topeka, Kan.
Brannon Smith, 37, Topeka, Kan.
Trena L. Talbert, 48, Topeka, Kan.
All the defendants are charged with one count of conspiracy to distribute more than five kilograms of cocaine. The conspiracy is alleged to have existed from October 2014 to July 9, 2015, in Topeka and elsewhere. In addition, Johnson and Warner each are charged with one count of possession with intent to distribute cocaine.
The indictment seeks the forfeiture of more than $73,000 in cash seized on July 9, 2015, and asks the court for a money judgment of $1.7 million against the defendants, which represents the proceeds of the crime.
If convicted, the defendants face a penalty of not less than 10 years in federal prison and a fine up to $10 million on the conspiracy charge. The possession charges carry a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Topeka Police Department, the Shawnee County Sheriff’s Office, the Lawrence Police Department, the Kansas Highway Patrol, the Drug Enforcement Administration, the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard and Assistant U.S. Attorney Jared Maag are prosecuting.
OTHER GRAND JURY INDICTMENTS
Ignacio Lopez-Gonzalez, 28, Fontana, Calif., is charged with one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute fentanyl and one count of possession with intent to distribute cocaine. The crimes are alleged to have occurred Dec. 8, 2014, in Ellis County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison on each count. The Kansas Highway Patrol investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Gary Matthew Andrus, 43, formerly of Carmichael, Calif., is charged with one count of failing to register as required by the federal Sex Offender Registration and Notification Act. The crime is alleged to have occurred from Feb. 10, 2014, to April 8, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Juan A. Garcia, 32, Exeter, Calif., is charged with one count of distributing methamphetamine. The crime is alleged to have occurred from May 8 to May 18, 2015 in Liberal, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Daniel Vega, 37, Dodge City, Kan., is charged with one count of possession with intent to distribute approximately one pound of methamphetamine, and one count of unlawful possession of an unregistered sawed off shotgun. The crimes are alleged to have occurred July 13, 2015, in Dodge City, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million on the methamphetamine count, and a maximum penalty of 10 years and a fine up to $10,000 on the firearm count. The Dodge City Police Department, the Kansas Highway Patrol, the Kansas Highway Patrol, the Wichita Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Humphrey Ezekiel Etenyi, 31, a citizen of Kenya, is charged with one count of possessing wrongfully obtained documents, one count of unlawful production of an identification document, one count of aggravated identity theft, one count of unlawfully interfering with his removal from the United States, and one count of making a false statement to the government. The crimes are alleged to have occurred in 2015 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Wrongfully obtained documents: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful production of an identification document: A maximum penalty of 15 years and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence.
Unlawful interference with removal: A maximum penalty of four years and a fine up to $250,000.
Making a false statement to the government: A maximum penalty of five years and a fine up to $250,000.
Immigration and Custom Enforcement – Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Kalpeshkumar “Bobby” Patel, 39, is charged with making a false statement to an agent of the U.S. Department of Homeland Security. The crime is alleged to have occurred July 29, 2014, in McPherson, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Domingo Reynoso-Ren, 37, a citizen of Guatemala, and Antonio Pastor-Larios, 24, a citizen of Guatemala, are charged with one count of document fraud, two counts of aggravated identity theft and one count of sale of a Social Security card. The crimes are alleged to have occurred Feb. 6, 2015, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Document fraud: A maximum penalty of 15 years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence.
Sale of a Social Security card: A maximum penalty of five years and a fine up to $250,000.
Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hartville Man Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hartville, Mo., man was charged with an additional count of child sexual exploitation in a federal indictment today.
Edward Penn, 31, of Hartville, Mo., was charged in a two-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a Dec. 9, 2014, federal indictment and adds one count. Penn has been in federal custody since his arrest on Dec. 10, 2014.
Today’s indictment alleges that Penn used a minor, identified as Jane Doe #1, to produce child pornography from Jan. 1, 2013, to Oct. 3, 2014. The indictment contains the original charge of receiving and distributing child pornography over the Internet from Jan. 1, 2013, to Oct. 3, 2014.
The indictment also contains a forfeiture allegation, which would require Penn to forfeit to the government any property used to commit the alleged offense, including his cell phone.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrime Task Force and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Furniture Company Owner Admits Role Running International “Fish” Smuggling OperationRead the Press Release
A Los Angeles-based furniture business, Kaven Company, Inc. (“Kaven”) and its owner, Kam Wing Chan, pled guilty today on charges related to the smuggling of endangered abalone and Totoaba that could have been sold for millions of dollars in China.
The charging documents allege that Chan used Kaven, which was ostensibly an importer of Asian furniture, to purchase endangered fish in Mexico, import them into the United States, and then export them to Asia. For example, in entering guilty pleas, Chan admitted that on one occasion on October 9, 2013, he smuggled into the United States 37 pounds of dried abalone (including the endangered white and black abalone) and 58 Totoaba swim bladders, which had been purchased in violation of Mexican law. The seafood was then illegally exported to companies owned by one of Chan’s relatives in China. Both abalone and Totoaba are prized in Asia where they are considered "culinary delicacies," and often adorn the buffets of festival meals and are served at formal dinners.
As part of their plea agreements, the defendants agreed to forfeit the smuggled wildlife and make restitution to the government of Mexico in the total amount of $55,000 for the loss of the natural resource, and pay fines totaling $14,500.
Background on Totoaba: Totoaba macdonaldi, also known as Cynoscion macdonaldi, is a species of marine fish. It can grow to more than 6½ feet in length, weigh up to 220 pounds, and live up to 25 years. This marine fish is the largest species within the scaienidae family. It is endemic only to the Gulf of California, the narrow inlet between Baja California and the Mexico’s mainland (also called the Sea of Cortez). During the Totoaba’s spawning season, which runs from approximately March to May each year, Totoaba fish travel to the shallower waters at the mouth of the Colorado River, making them vulnerable to commercial and sport fishermen.
Totoaba fish have internal air bladders that help them control their buoyancy in water. These air bladders, also called swim bladders, are highly prized in Asia for a variety of uses: as an ingredient in a specialty soup, for perceived therapeutic and medicinal purposes, and to improve the complexion. Swim bladders from the endangered Totoaba fish can be identified by distinctive tubes that are attached to the bladders. Totoaba fish are protected as an endangered species under the Endangered Species Act (16 U.S.C. § 1531, et seq.) (“ESA”), the Lacey Act (16 U.S.C. § 3731, et seq.), and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). These laws generally prohibit the taking, possessing, transporting, importing, sale, and trade of Totoaba fish.
Based on information law enforcement officers have developed from conversations with researchers in Mexico and Totoaba fish smugglers, the value of Totoaba swim bladders in Mexico is approximately $1,500-$1,800 each. Once imported into the United States, the value increases to $5,000 each. They can be resold for $10,000 to $20,000 apiece in the overseas market.
As it is not legal to fish for Totoaba in Mexico, a poacher cannot risk being caught in possession of the easily-identified body of the endangered fish. It is much simpler to transport only the bladder, which is lighter, smaller, and much more valuable. As a result, PROFEPA (the Mexican federal agency tasked with the protection of endangered species) reports encountering Totoaba taken from the Colorado River, carved open so their swim bladders can be removed, and left to die on the shores.
Background on White Abalone: White abalone (Haliotis sorenseni) are herbivorous gastropods (the same taxonomic class as snails and slugs) that live in rocky ocean waters. Their shell is oval-shaped and very thin. The bottom of their feet is orange, and the epipodium (a sensory extension of their foot that has tentacles) is a mottled orange-tan. They are generally 5-8 inches (13-20 cm) long, but can grow to as big as 10 inches (25 cm). They weigh about 1.7 pounds (0.8 kg) on average. They were the first marine invertebrate to be listed as endangered under the ESA.
Due mainly to overfishing, there has been a 99% reduction in white abalone density since the 1970’s. Once occurring in numbers as high as 1 per square meter of suitable habitat, recent surveys show that densities average 1 per hectare (10,000 square meters) in the Channel Islands off southern California. Although historically there have been millions of white abalone off our coast, recent studies suggest that the current population is approximately 1,600-2,500 individuals. Unfortunately, adults do not occur in high enough densities to successfully reproduce, contributing to repeated recruitment failure and an effective population size near 0.
Background on Black Abalone: Black abalone (Haliotis cracherodii) are large marine gastropod mollusks found in rocky intertidal and subtidal habitats. Both their "mantle" and "foot" are black. They have 5-9 open respiratory pores along the left sides of their shell and spiral growth lines on the rear. Their tentacles (surrounding their foot and extending out of their shell) sense food and predators. Black abalone are herbivores. They primarily eat giant kelp and feather boa kelp in southern California (i.e., south of Point Conception) habitats, and bull kelp in central and northern California habitats.
Black abalone commercial fishing peaked in 1973 at 868 metric tons (nearly 2 million pounds). By 1993, both commercial and recreational fisheries for black abalone closed. Black abalone have experienced significant declines in abundance and have gone locally extinct in most locations south of Point Conception, CA.
Increasing distance among spawning males and females has led to reproductive failure as population density decreases. In addition to disease, black abalone face challenges due to elevated water temperature caused by the thermal discharge of power plants. Other factors responsible for the decline of black abalone are illegal harvest and habitat destruction. Natural predation by a variety of predators (sea stars, the southern sea otter, and striped shore crab) as well as competition with purple and red sea urchins for space also threaten their survival.
DEFENDANTS Case Number: 14-CR-3662-AJB Kaven Company Los Angeles, California Kam Wing Chan Age; 61 Monterey Park, California CHARGESCounts 3 and 6
Smuggling/Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: 20 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Forfeiture in violation of Title 16, United States Code, Section 3374 and Title 18, United States Code, Section 981.
INVESTIGATING AGENCIESNational Oceanic and Atmospheric Administration, Office of Law Enforcement
U.S. Fish and Wildlife Service, Office of Law EnforcementFour Defendants Sentenced After Cooperation in Pinson RICO TrialRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
COLUMBIA, SOUTH CAROLINA –Lance Wright, age 49, of Columbia, South Carolina; Michael Bartley, age 51, of Orangeburg, South Carolina; Robert Anthony Williams, age 57, of Tampa, Florida; and Phillip Mims, age 46, of Columbia, South Carolina, were sentenced today in federal court by United States District Judge David C. Norton. The court heard motions by the government for reduced sentences which detailed the defendants’ cooperation and assistance in the prosecution of United States v. Jonathon Pinson, and then imposed the following reduced sentences:
Wright, Williams and Mims: sentenced to 3 years probation, 3 months in a half-way house, ordered to pay $993,777.65 in restitution and a $200 special assessment.
Bartley: sentenced to 3 years probation, 100 hours of community service and a $100 special assessment.
Wright, Bartley, Williams and Mims had previously pled guilty to the following charges:
Bartley: One count of conspiring to use his influence as Chief of Police of South Carolina State University to promote the sale of property to SCSU in exchange for a gratuity, in violation of Title 18, United States Code, Section 371.
Wright, Williams and Mims: One count of conspiring to steal and convert public funds in violation of Title 18, United States Code, Section 371 and one count of bank fraud in violation of Title 18, United States Code, Section 1344.
The charges in these cases were the result of a joint investigation conducted by the Federal Bureau of Investigation, the U.S. Internal Revenue Service – Criminal Investigations, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the South Carolina Law Enforcement Division. Assistant United States Attorneys Nancy Wicker, Jane Taylor, J.D. Rowell and Dewayne Pearson of the Columbia office prosecuted the case.
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Former Prison Nurse Sentenced for Smuggling Contraband into FCI YazooRead the Press Release
Jackson, Miss - Lavonne Boose, 43, of Benton, a former nurse at the Federal Correctional Institution in Yazoo City, MS, was sentenced today by U.S. Magistrate Judge Linda R. Anderson to 60 days in federal prison followed by one year of supervised release for smuggling a cell phone into the prison, U.S. Attorney Gregory K. Davis announced. Boose was also ordered to pay a $1,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Patrick Lemon.
Former Hopkins County Teacher Indicted on Child Sexual Exploitation ViolationsRead the Press Release
TYLER, Texas – A 38-year-old former Hopkins County school teacher has been indicted for child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lucas R. Hill, formerly of Sulphur Springs, Texas, has been named in a three-count indictment returned by a federal grand jury on July 15, 2015 charging him with producing child pornography, enticing and coercing a minor, and transferring obscene matter to a child younger than 16 years of age.
The indictment was unsealed today and Hill is scheduled to make his initial appearance before U.S. Magistrate Judge Don D. Bush on July 22, 2015.
According to the indictment and information presented in court, earlier this year, law enforcement officials were notified by a family who had discovered that an unknown individual had created an account on the social media site, Facebook, using images of their minor son. An investigation revealed that an individual accessed the account from Hill’s residence in Sulphur Springs, Texas. At the time, Hill was a teacher with the Cumby Independent School District. Hill is alleged to have created the Facebook account under the fictitious name, “Aaron Cage,” and posed as a teenage boy by utilizing photographs of another minor male, without that minor’s knowledge or consent. From at least October 2013, Hill is alleged to have contacted a number of minor females, including children who may have attended Cumby schools, through the fictitious “Aaron Cage” Facebook page. Hill chatted with the females and persuaded them to engage in sexually explicit conduct, including producing images and videos of themselves engaged in sexual activity.
If convicted, Hill faces a minimum of 10 years and up to life in federal prison.
Any minors who may have had contact with “Aaron Cage” are urged to contact Victim-Witness Coordinator Judy Daigle at the U.S. Attorney’s Office at 1-800-804-3547. The U.S. Attorney’s Office will take the necessary steps to protect all minors’ identities and confidential information.
This case is being prosecuted 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 is being investigated by the U.S. Secret Service, the Hopkins County Sheriff’s Office, and the Sulphur Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Marisa J. Miller.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Former CEO of Bristol Virginia Utilities Authority Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno, along with representatives from the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigations, announced today the latest conviction in the ongoing investigation into corruption at the Bristol Virginia Utilities Authority (BVU).
Today in the United States District Court for the Western District of Virginia, Wes Rosenbalm, 45, of Johnson City, Tennessee, the former CEO at BVU, waived his right to be indicted and pled guilty to a one count Information charging him with conspiracy to defraud the Internal Revenue Service and conspiracy to commit Federal Program Fraud.
“It’s unfortunate when we see people in positions of power abuse those positions for personal financial gains,” Acting United States Attorney Anthony P. Giorno said today. “Their abuses have consequences not only for them, but their families as well. This case demonstrates that the US Attorney’s office and our law enforcement partners will be on the lookout for abuses of power and we will hold accountable those who violate the public trust.”
“Individuals such as Mr. Rosenbalm, that take advantage of the public to line their own pockets will be held accountable," said Assistant Special Agent in Charge Kathryn Montemorra on the Internal Revenue Service- Criminal Investigations. “Abusing positions of trust, is a blight on any community and Mr. Rosenbalm's contributions to this scheme were extensive. Today's plea should be a warning to those involved in criminal activities that they will be held accountable for their actions.”
“Mr. Rosenbalm's solicitation and acceptance of such extravagant "gifts" at the expense of clients demonstrates the unfortunate need for consumers to be aware of and report public corruption at any government level. Public corruption remains our top criminal priority,” said Special Agent in Charge Adam S. Lee of the FBI’s Richmond Division.
According to evidence presented today by Assistant United States Attorney Zachary Lee, Rosenbalm was the CEO at BVU and between January 1, 2003 and January 1, 2014, he and others conspired to defraud the Internal Revenue Service by willfully evading income taxes and conspired to corruptly solicit things of value as a reward for the awarding of contracts to vendors of Bristol Virginia Utilities Authority.
In a statement of facts agreed to by both parties and filed with the court during today’s guilty plea hearing, Rosenbalm admitted to soliciting, and using others to solicit gifts and monetary payments from a variety of vendors that did business with BVU while BVU was receiving federal grant funds. These vendors felt the gifts and other payments they were being asked to provide to BVU had to be provided in order to continue to do business with BVU. Rosenbalm has admitted to soliciting gifts and monetary payments that include, but are not limited to: tickets to University of Kentucky basketball games; $663 for alcohol purchases at a BVU customer appreciation event; $2,850 for a Thanksgiving lunch for BVU employees; $15,000 for the BVU Christmas dinner; $5,500 for the BVU Children’s Christmas party; and $4,125 for a scorer’s table at the school one of Rosenbalm’s children attended. Rosenbalm has agreed to pay $50,000 forfeiture to account for this conduct.
In addition, Rosenbalm admitted to defrauding the IRS by failing to truthfully report income and benefits received by himself and other BVU employees. This unreported compensation and benefits included country club memberships, personal use of BVU vehicles, bonuses paid in cash to employees, and bonuses paid to employees using gift cards. Rosenbalm has agreed, as part of his plea agreement, to pay $150,000 in restitution to BVU for taxes and penalties owed by BVU as a result of his conduct. He also faces a maximum possible sentence of five years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
Former 171st Air Refueling Wing Commander Caught in Scheme to Defraud the U.S.Read the Press Release
PITTSBURGH – A former Guardsmen officer at the 171st Air Refueling Wing in Coraopolis, Pa., has pleaded guilty to conspiring to defraud the United States Air Force and the Air National Guard of tens of thousands of dollars in military pay and benefits, United States Attorney David J. Hickton announced today.
Gerard J. Mangis, 60, of Glenshaw, Pa., pleaded guilty to one count of conspiracy to defraud the U.S. before Senior U.S. District Judge Gustave Diamond.
According to information presented to the Court, Mangis, a Colonel and former Mission Support Group Commander at the 171st Air Refueling Wing, conspired with Robert St. Clair, a contract employee at the National Guard Bureau and former tech sergeant at the 171st, to defraud the United States Air Force in false claims for military pay between 2002 and 2011. In 2002, Mangis appointed St. Clair to a position at the 171st where Mangis arranged for St. Clair to be enlisted at the 171st in a “no show” position, and enable him to avoid performing required guardsman duties such as drill weekends and physical tests, while earning valuable military pay and benefits. In exchange, using his authority at National Guard Bureau at Andrews AFB, St. Clair issued streams of military “workdays” to Mangis, which he used to accumulate excessive active and inactive duty military pay between 2006 and 2011. The estimated loss to the government is up to $70,000.
U.S. Attorney Hickton said, “Pursuing and prosecuting fraud against the government is a priority of the U.S. Attorney’s Office and the FBI, and we remain steadfast in our shared commitment to protect the public trust through the elimination of corruption.”
Judge Diamond scheduled sentencing for Nov. 17, 2015, at 10 a.m. The law allows for a maximum total sentence of five years in prison, a fine of $250,000, or both. Robert St. Clair, who pleaded guilty on April 14, 2014, to a one-count information charging conspiracy to defraud the United States, is scheduled to be sentenced on Sept. 25, 2015 before U.S. District Judge Arthur J. Schwab.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Air Force Office of Special Investigations and the Federal Bureau of Investigation conducted the investigation leading to prosecution of this case.
Florida Man Charged in Manhattan Federal Court with Concealing an Offshore Bank Account in Liechtenstein Worth More Than $1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service’s Criminal Investigation Division (“IRS”), announced today the unsealing of an indictment (the “Indictment”) charging HARRY FALTERBAUER, a United States citizen and resident of Florida, for failing to disclose a bank account worth more than $1 million that he maintained in Liechtenstein, and for lying to federal agents who questioned him about this offshore account. FALTERBAUER was arrested this morning at his residence in Coconut Creek, Florida, and was presented in federal court in Fort Lauderdale, Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, in order to evade taxes, Harry Falterbauer hid from the U.S. authorities a million-dollar offshore bank account he maintained in Liechtenstein. The indictment unsealed today is part of our ongoing efforts, with our partners at the IRS, to ensure that taxpayers do not use a foreign country’s bank-secrecy laws to avoid their tax obligations.”
IRS-CI Special Agent-in-Charge Shantelle P. Kitchen said: “The Internal Revenue Service has made the investigation of individuals who allegedly conceal assets in offshore accounts and who willfully fail to report the income that those accounts generate a priority. Such actions undermine our nation’s tax system and essentially make law abiding taxpayers pay more than their fair share. In a similar way, individuals who allegedly lie to government investigators undermine our nation’s justice system. As a law enforcement agency, IRS-CI will pursue the prosecution of anyone who lies to a Special Agent during the course of a criminal investigation.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court[1]:
From approximately 1988 to 2008, FALTERBAUER maintained an undeclared bank account at Liechtensteinische Landesbank AG, a bank based in Vaduz, Liechtenstein (“LLB-Vaduz”). FALTERBAUER opened the account in his own name, presenting his United States passport so LLB-Vaduz could verify his identity. To conceal the connection to FALTERBAUER, the bank then referred to the account exclusively by its account number. In an affidavit provided to the bank in 2003, FALTERBAUER declared that he was a United States citizen and that he was not authorizing LLB-Vaduz to disclose his name to U.S. tax authorities.
The undeclared account generated capital gains and losses from investments. It reached a high balance of more than $1.5 million in approximately 2007, and had a balance of more than $1.1 million before its closure in 2008.
For the calendar year 2008, FALTERBAUER willfully failed to disclose on his tax returns both his interest in the offshore account and the income that account generated. For the same year, FALTERBAUER also willfully failed to file with the IRS a Report of Foreign Bank and Financial Accounts, or FBAR, as the law required him to do.
In 2012, Liechtenstein amended its laws to permit banks to produce documents relating to certain United States taxpayers to the Department of Justice. LLB-Vaduz subsequently provided files from undeclared accounts, including FALTERBAUER’s, to this Office.
IRS Special Agents from Manhattan interviewed FALTERBAUER about the undeclared account in or about April 2013. During that interview, FALTERBAUER falsely stated that he had not opened an account at LLB-Vaduz. After being shown documents indicating otherwise, FALTERBAUER falsely stated that he never reported the account to the IRS because he had opened it for another person whose identity he did not know.
* * *
FALTERBAUER, 59, of Coconut Creek, Florida, is charged with willful failure to disclose an offshore bank account for the calendar year 2008, and with making false statements to IRS Special Agents. Each charge carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of IRS-CI. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for its assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah Paul and David Abramowicz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Federal Inmate Indicted for Assaulting OfficerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., was indicted by a federal grand jury today for assaulting a federal officer.
Paulino Aparicio, 51, an inmate at the U.S. Medical Center for Federal Prisoners, was charged in an indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Aparicio assaulted a corrections officer at the medical center on April 10, 2015. According to the indictment, Aparicio struck the officer in the face with his fist, fracturing the officer’s nose.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the U.S. Bureau of Prisons.
Federal Inmate Charged with Relatives in Theft SchemeRead the Press Release
PHILADELPHIA – Kenneth Hampton, 54, an inmate of a federal prison, was charged by indictment, unsealed today, with masterminding a scheme under which he and his coconspirators defrauded the City of Philadelphia, the State of Pennsylvania, and innocent owners and purchasers of Philadelphia real estate. The indictment charges one count of conspiracy, eleven counts of wire fraud, and two counts of aggravated identity theft. Charged with Hampton are his son Terrell Hampton, 34, of Philadelphia, PA, and his brother Ellis, 56, of Darby, PA, and fiancée Roxanne Mason, 33, of Philadelphia, both of whom were arrested this morning.
According to the indictment, during the time he was a federal inmate, Hampton led a scheme to file false and fraudulent deeds for residential properties in Philadelphia. Using the prison telephones Hampton would direct other members of the scheme to locate houses, prepare and file false deeds, reside in the properties, and then eventually sell the properties for a profit.
If convicted, the defendants face mandatory minimum terms of two years in prison with a possible advisory sentencing guideline range of between 24 months and 102 months in prison.
The case was investigated by the United States Secret Service and the Office of the Philadelphia Inspector General. It is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Employer Indicted for Failing to Hand over Payroll Taxes to IRSRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., was indicted by a federal grand jury in Pittsburgh on charges of willful failure to remit employment taxes, United States Attorney David J. Hickton announced today.
The eleven-count indictment named John H. Johnson, 53.
According to the indictment presented to the court, from July 1, 2013 until December 31, 2014, Johnson failed to remit to the Internal Revenue Service (IRS) the payroll taxes he collected from his employees at Central Anesthesia and Johnny on the Spot, totaling $710,514 in delinquent payroll taxes due and owing by Johnson to the IRS.
The law provides for a maximum total sentence of 55 years in prison and a fine of $110,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to 46 Months in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Michael Centanni, 49, of Washington, D.C., has been sentenced to 46 months in prison for possession of child pornography, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
Centanni pled guilty in January 2015, in the U.S. District Court for the District of Columbia. He was sentenced on July 20, 2015, by the Honorable Senior Judge Thomas F. Hogan. Upon completion of his prison term, Centanni will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a minimum of 15 years.
Centanni was arrested on Oct. 30, 2014 following an investigation by HSI. According to a statement of offense signed by the defendant as well as the government, the investigation determined that Centanni had been using the Internet to obtain child pornography files.
Law enforcement searched Centanni’s residence on Oct. 14, 2014 and seized hard drives and other electronic media. A subsequent examination identified more than 3,000 images and 267 videos depicting child pornography. Centanni has been in custody since his arrest. In an interview with law enforcement, he admitted obtaining images and videos depicting child pornography and storing it on the electronic devices seized during the search.
In announcing the sentence, Acting U.S. Attorney Cohen and Special Agent in Charge Settles commended the work of the HSI Special Agents who investigated the case and expressed appreciation for the assistance of the Metropolitan Police Department (MPD). They also expressed appreciation for the efforts of Assistant U.S. Attorneys Cassidy Kesler Pinegar and Andrea L. Hertzfeld, who prosecuted the case, and Assistant U.S. Attorney Ari Redbord, who assisted in the investigation.
Department of Justice Gives Grant to Utah to Support Substance Abuse Treatment for PrisonersRead the Press Release
SALT LAKE CITY – The U.S. Department of Justice’s Office of Justice Programs has awarded a $72,125 grant to the Utah Commission on Criminal and Juvenile Justice to support substance abuse treatment programs for prisoners.
The funding comes from the Residential Substance Abuse Treatment for State Prisoners Program. This program assists states and local governments in developing and implementing substance abuse treatment programs in state and local correctional and detention facilities and to create and maintain community-based aftercare services for offenders. The goal of the program is to break the cycle of drugs and violence by reducing the demand for, use, and trafficking of illegal drugs.
According to grant documents, Utah will use the funds to implement up to three types of programs, including residential, jail-based, and aftercare. At least 10 percent of the total state allocation this year will be made available to local correctional and detention facilities.
Criminal Complaint Filed Against Jasmine McMichaelRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that Jasmine McMichael, 22 of East Chicago, Indiana was charged with using the threat of force against a witness.
According to documents filed in the case, McMichael, the sister of Anton Lamont James, used threat of physical force against a witness. McMichael, along with her mother Dalia Guerrero, confronted a witness after James was arrested and allegedly made threatening statements to the witness. Dalia Guerrero was indicted on July 16, 2015 for her participation in the same confrontation.
Anton Lamont James was indicted last week for murder in aid of racketeering and was arrested for that offense on the morning of July 16.
United States Attorney David Capp stated, “Witness intimidation in any manner by any person will not be tolerated.”
This case is being investigated by the Federal Bureau of Investigation and Hammond Police Department. The case is being handled by Assistant United States Attorney David J. Nozick.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Conspirator Pleads Guilty to $3.8 Million Mortgage Fraud SchemeRead the Press Release
Baltimore, Maryland –Alberic Okou Agodio, age 30, of Bethesda, Maryland, pleaded guilty today to conspiracy, wire fraud, and aggravated identity theft, arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information, to obtain approximately $3.8 million in home mortgage loans to buy approximately three dozen row houses in Baltimore, all of which are in default or foreclosure.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Olga Acevedo of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“When we are made aware of individuals whose criminal conduct causes financial harm to the public and unnecessary risks to the FHA Insurance Fund we commit whatever resources are necessary to bring these individuals to justice and have them debarred from participation in government programs,” said Special Agent in Charge Cary Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General. “Mortgage fraud investigations can be very labor intensive and we would like to thank our law enforcement partners for their collaborative efforts.”
According to his plea agreement, Agodio agreed to purchase row houses in Baltimore City from co-conspirator Kevin Campbell, who had acquired the houses as part of his real estate business. Agodio purchased the houses at prices far in excess of their actual market value. In return, Campbell kicked back a substantial portion of the purchase price to Agodio, which Agodio used to pay for the down payments and closing costs for most of the properties; to pay a commission to the individuals whom he persuaded to allow him to use their names to purchase the properties (“the straw purchasers”); to pay referral fees to individuals who referred other straw purchasers to him; and to compensate himself for his participation in the scheme. In all, from June 2009 to November 2010, Agodio purchased 35 row houses from Campbell. The financing received on these transactions totaled approximately $3.8 million and Agodio received commission payments from Campbell in excess of $1.2 million.
To perpetrate the scheme, Agodio persuaded approximately three dozen immigrants and students to purchase the row houses under their names. Although none of these “straw purchasers” had any experience in real estate transactions, nor the funds needed to buy the properties, Agodio told each straw purchaser that he would prepare the loan application; manage the property after its purchase by finding renters, collecting the rent and paying the mortgage; and would pay the straw purchaser $7,000 to $8,000 after the transaction closed. He further promised to sell the property in three years and give the individual up to 80% of the sale proceeds. Agodio also paid thousands of dollars in additional commissions to those straw purchasers who referred other individuals to him as potential buyers for similar transactions.
Agodio admitted that he falsely represented in the loan applications the straw purchasers’ assets and earnings, and that the property would be the primary residence of the purchaser. Agodio also provided fraudulent earnings and bank statements for the purchasers, to document the false information provided in the loan application. Agodio provided the necessary funds for the down payment and the buyer’s share of the closing costs, causing the settlement statement form to inaccurately reflect that the down payments and closing costs had been paid by the straw purchasers.
Following the closings, Agodio retained the keys to each property and assumed the responsibility for finding renters and making the required monthly mortgage payments. The named purchasers never lived in the properties. Agodio eventually allowed all of the mortgages to go into default.
After a fire occurred at one of the row house properties purchased through a straw purchaser Agodio falsely identified himself as the straw purchaser to the insurance company in order to collect $106,500 in insurance paid for the repair the property. Agodio cashed the check, which was made out to the straw purchaser and the bank holding the mortgage, and used the funds for his own purposes. Agodio did not notify the bank that the funds to make the repairs to the property had been received, nor did he arrange to make or pay for any repairs to the property.
Kevin Campbell, age 52, of Baltimore, previously pleaded guilty and is scheduled to be sentenced on September 11, 2015 at 9:15 a.m.
Agodio faces a maximum sentence of 30 years in prison for conspiracy and for wire fraud; and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. U.S. District Judge James K. Bredar has scheduled sentencing for October 22, 2015 at 11:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended HUD- OIG, FDIC – OIG, FHFA - OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
Cleveland woman charged with theft of government fundsRead the Press Release
A federal grand jury indicted Selina Scott, 52 of Cleveland today for theft of government funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Scott fraudulently received Social Security Title XVI Supplemental Security Income benefits from March 2006 until May 2014, taking approximately $62,249 to which she was not entitled.
The Social Security Administration Office of Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cincinnati Man Sentenced to Three Years Imprisonment for His Role in Multi-Million Dollar Fraud Scheme in KentuckyRead the Press Release
FRANKFORT — A Cincinnati man has been sentenced to three years in federal prison after pleading guilty to his role in a Kentucky oil investment scheme that defrauded over 200 victims nationwide out of more than $3,000,000.
On Monday, U.S. District Judge Gregory F. Van Tatenhove sentenced Michael Hicks for mail fraud. As Hicks admitted, and as shown by evidence at the trials of Hicks’s co-defendants, from 2012 to 2014, Hicks was part of a scheme that used high-pressure telephone calls to sell investments in oil wells, located in in Barren, Monroe, and Cumberland Counties in Kentucky, to victims around the country.
These sales presentations included fraudulently guaranteed and exaggerated oil production numbers, and failed to disclose material facts and risks about the investments. Members of the scheme avoided detection by using false names when communicating with investors, repeatedly changing their company’s name, and shifting addresses between Bowling Green, Louisville, Covington, Nashville, and Los Angeles. Every investor lost all or nearly all of their investment.
As part of his guilty plea agreement, Hicks admitted that he willingly joined the scheme, opened bank accounts in various names, operated mailing addresses in various names, cashed or deposited investor checks made out to various company names, and then withdrew and mailed the victims’ money to his co-defendants in California.
Hicks also agreed to testify against his co-defendants John Westine and Henry Ramer, who were each convicted of mail fraud, securities fraud, and money laundering conspiracy, in separate jury trials in January 2015 and May 2015. Westine, Hicks’s half-brother and a resident of Malibu, Calif., was a leader of the scheme. Ramer, another leader of the scheme, worked as a salesman and manager of two Los Angeles-based telemarketing sales operations. A fourth member of the scheme, Mark Cornell, a local Kentucky oil well operator who assisted the conspiracy by exaggerating his oil production numbers, pleaded guilty to securities fraud in March 2015. These three other defendants will be sentenced by the samejudge in August and September.
Under federal law, Hicks must serve at least 85 percent of his prison sentence. Hicks will be placed under the supervision of the U.S. Probation Office for an additional three years after his prison sentence, and was also ordered to pay over $3,000,000 in restitution to his victims.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Dugan Wong, Inspector in Charge of the U. S. Postal Inspection Service; and Charles Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly announced the sentence.
The investigation started when investors submitted complaints to the Kentucky Department of Financial Institutions, Division of Securities. The investigation was conducted by the U.S. Postal Inspection Service, including Postal Inspector Roberta Bottoms, and the Kentucky Department of Financial Institutions, Division of Securities.
Assistant U.S. Attorneys Ken Taylor and Neeraj Gupta prosecuted these cases on behalf of the federal government.
Canton man charged with bank robberyRead the Press Release
A federal grand jury returned a one-count indictment charging Thomas Lee Jones, 25, of Canton, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on June 16, 2012, Jones robbed the PNC Bank located at 2800 Whipple Avenue, NW, Canton, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Stark County Sheriff’s Office and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Fugitive Who Shot at Swat Agents Sentenced to over 18 Years in Federal PrisonRead the Press Release
LAS VEGAS, Nev. – A California fugitive who shot multiple times at federal agents as they were attempting to serve an arrest warrant on him at an apartment in Las Vegas in May 2013, was sentenced today to 225 months in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and FBI Assistant Special Agent in Charge for Nevada Patrick Brodsky.
Rene Alexander Dendaas, 39, of West Covina, Calif., was sentenced by U.S. District Judge Andrew P. Gordon. Dendaas pleaded guilty on Jan. 21 to one count of assault on a federal officer and one count of use of a firearm during and in relation to a crime of violence.
“This case demonstrates the danger that law enforcement agents and officers face each and every day in doing their jobs,” said U.S. Attorney Bogden. “Fortunately, the defendant was arrested, and despite the many shots he fired at law enforcement, the situation was resolved with no one being seriously injured or killed.”
According to the plea agreement, on May 21, 2013, four FBI SWAT Team Agents in Las Vegas went to an apartment on East Karen Avenue in Las Vegas to arrest Dendaas, who was wanted on homicide charges in San Bernardino. As the agents announced their presence at the door of the apartment and attempted to gain entry, Dendaas fired eight or nine gunshot rounds through the door at the agents, who were using ballistic shields. The SWAT agents again announced their presence, and Dendaas fired at them again through the door. One SWAT agent returned fire, and Dendaas fired again, with several of his rounds entering other apartments in his building and in an adjacent building. The four SWAT agents then escaped the area. One of the agents suffered minor injuries from Dendaas’ gunshots. Negotiators talked with Dendaas throughout the night, and at about 2:00 a.m., they introduced tear gas into the apartment and Dendaas exited and was taken into custody.
“This sentence demonstrates the importance and effectiveness of the FBI SWAT team and the FBI-led Criminal Apprehension Team (CAT), and more broadly, of law enforcement coordination and collaboration in apprehending and prosecuting violent fugitives,” said Assistant Special Agent in Charge Brodsky. “The FBI will continue to work with our partners to ensure these violent criminals are captured and brought to justice.”
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.
Baltimore Man Sentenced to 10 Years in Prison for Three Armed Robberies Committed in Less than a MonthRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Rodney Smith, age 51, of Baltimore, Maryland, today to 10 years in prison, followed by three years of supervised release, for conspiring to commit three armed robberies and using and brandishing a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Smith’s plea agreement, from September 2013 through October 11, 2013, Smith conspired with Derek Roberts to commit armed robberies at a fast food restaurant, a drug store and a gas station.
According to their plea agreements, on the morning of September 15, 2013, Smith and Roberts went to a fast food restaurant in Rosedale, Maryland, and waited for an employee to arrive. When the employee arrived to open the store Smith and Roberts approached him. Roberts pointed a loaded gun at the employee and pushed him into the store. Roberts tied up the victim and demanded money from the cash register. Roberts and Smith stole approximately $200 from the restaurant. On September 27, 2013, Smith and Roberts robbed a drug store in Havre de Grace. When two employees began closing the store, Roberts pointed a loaded gun at the employees and forced them into the store, where he and Smith tied up the victims and demanded money. One of the victims opened the store safe and Smith took money from the safe. Smith and Roberts stole $3,400 from the store, several cartons of cigarettes and a purse belonging to one of the victims. On October 3, 2013, Smith and Roberts drove from Maryland to a gas station in Fredericksburg, Virginia. An employee let Smith and Roberts into the store and Roberts pointed a loaded gun at the victim. Roberts instructed the victim to go to a back room and lay on the ground, and demanded money. Smith and Roberts stole approximately $200, cartons of cigarettes and beer from the gas station.
Derek Roberts, age 45, of Baltimore, pleaded guilty to his role in the robberies and was sentenced to 19 years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and thanked Cecil County State’s Attorney Ellis Rollins, Baltimore City State’s Attorney Marilyn J. Mosby, and their offices for their assistance in the prosecution. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Bakersfield Man Indicted for Laser Strikes on Police Helicopter and Possessing 7 BombsRead the Press Release
FRESNO, Calif. — Earlier today an indictment was unsealed charging Pablo Cesar Sahagun, 26, of Bakersfield, in connection with laser strikes of a police helicopter and possessing seven bombs, United States Attorney Benjamin B. Wagner announced. The indictment was returned by a federal grand jury on July 16, 2015.
Sahagun was charged with aiming the beam of a green laser pointer at Air-1, a Kern County Sheriff’s Office helicopter. According to court documents, the laser pointer was key‑activated and was labeled a Laser 301, a device which purports to have strong burning capabilities. Sahagun was also found to be in possession of seven CO2 cartridge or cricket bombs. Cricket bombs are improvised explosive devices which can kill or seriously injure people.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration received 3,894 reports of incidents of laser strikes on aircraft. In the Eastern District of California, there were 150 reported incidents last year, with the majority in Bakersfield, Fresno, and Modesto. Lasers can incapacitate pilots, endangering their crew members, passengers and people on the ground.
This case being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Sahagun is scheduled for an initial appearance on the indictment today before U.S. Magistrate Judge Jennifer L. Thurston in Bakersfield. He faces a prison term of five years and a fine of up to $250,000, if convicted of aiming the beam of a laser pointer at an aircraft. If convicted of the bomb charge, Sahagun faces an additional 10 years in prison and a fine of up to $10,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If you have information about a lasing incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.