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Friday 29 May 2015
Two New Jersey Men Convicted on Drug Distributions ChargesRead the Press Release
TRENTON, N.J. – Two New Jersey men were convicted today for their roles in a drug-dealing business involving the sale of cocaine, marijuana, ecstasy and methylone, U.S. Attorney Paul J. Fishman announced.
Luke Atwell, 34, of Hamilton, New Jersey, and Christopher Castelluzzo, 30, of Bayonne, New Jersey, were convicted of conspiracy to distribute or possess with intent to distribute methylone, cocaine, MDMA, and marijuana following a two-week trial before U.S. District Judge Freda L. Wolfson. The jury deliberated for two hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Atwell and Castelluzzo were partners in a drug dealing conspiracy that spanned 29 months. In March 2013, the Drug Enforcement Administration (DEA) conducted an investigation resulting in the seizure of more than six kilograms of methylone at a drug mill in East Orange, New Jersey, that was tied to Atwell and Castelluzzo. About a month later, in April 2013, agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), seized 2.9 kilograms of methylone that Atwell intended to pick up at the Manville, New Jersey, Post Office. Agents replaced the package with a dummy package, which Atwell picked up and placed in the car he occupied with Castelluzzo. Following the arrest of both defendants outside the Manville Post Office, agents searched various electronic devices of the defendants and uncovered email communications establishing a drug distribution conspiracy dating back to 2010.
The drug charges on which Atwell and Castelluzzo were convicted carry a maximum potential penalty of 20 years in prison. Sentencing for both defendants is scheduled for Sept. 3, 2015.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Acting Special Agent in Charge Kevin Kelly; and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorneys Courtney A. Howard and Thomas S. Kearney of the Criminal Division in Newark.
Defense counsel:
Castelluzzo: Dawn M. Florio Esq., New York
Atwell: Pasquale F. Giannetta Esq., WayneTwo Men Plead Guilty to Crack Cocaine Distribution ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Russell Gordon, 31, of Ansonia, Connecticut and Robert Joiner, Jr., 30, of Detroit, Michigan pleaded guilty today in U.S. District Court to conspiring to distribute 28 grams or more of cocaine base, often referred to as crack cocaine. Gordon also pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base and Joiner pleaded guilty to one count of distribution of cocaine base.
Court records reveal that between December 2013 and January 2015, Gordon and Joiner conspired with each other and with others to sell crack cocaine in Portland, Maine. Gordon would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors who would sell the drugs in the Portland area, and then return the cash proceeds to Gordon. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from Joiner and from other members of the conspiracy. Gordon was arrested on January 9, 2015 at 66 Smith Street in Portland. At the time of his arrest, officers found in close proximity to him a bag containing 89 net grams of cocaine base and over $9,000 in cash.
Russell Gordon faces between five and 40 years in prison and a $5,000,000 fine on each count of conviction. Joiner faces up to 40 years in prison and $5,000,000 fine on the conspiracy count and up to 20 years in prison and a $1,000,000 fine on the distribution count. Both will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation, the Portland Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The Biddeford and Lewiston Police Departments, the Maine Drug Enforcement Agency, and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Two Former Will County Bank Officials Sentenced in Concealing Loan Delinquencies of Two Customers Causing $1.1 Million LossRead the Press Release
CHICAGO — A former director and a former officer of First Community Bank and Trust in Will County were sentenced for fraudulently making false entries in the bank’s records which generated reports falsely representing that loans were current, when, in fact they were delinquent. MARTIN E. SCHMIDT, JR., 56, of Beecher, was sentenced to 8 months of imprisonment by U.S. District Court Judge Charles Kocoras. DONNA M. BARBER, 53, also of Beecher, was sentenced by U.S. District Court Judge Jorge L. Alonso to one year of supervised release, with the first six months to be served as home confinement. Schmidt and Barber were ordered to pay restitution in the amounts of $1,183,374 and $684,938, respectively. Schmidt must report to the Bureau of Prisons on June 2, 2015. As a result of their convictions, both defendants are also barred from associating with or being employed by a financial institution for ten years.
The defendants together concealed that loans totaling approximately $2.8 million where delinquent, and caused the bank to lose more than $1.1 million. Schmidt was senior vice president for lending and a member of the board of directors of First Community Bank and Trust, which operates in Beecher and Peotone, and co-defendant Barber was vice president for mortgage lending.
Schmidt and Barber were charged together in October 2014 in a criminal information with making false bank reports with intent to defraud. Schmidt pled guilty in November 2014, and Barber pled guilty in December 2014.
“Both defendants were long-time trusted employees of the bank,” argued Assistant U.S. Attorney Brian P. Netols in the government’s sentencing memoranda, “In committing the offense, [they] repeatedly betrayed and violated that trust.”
Schmidt and Barber admitted that they caused and made false entries in the bank’s past due accounts report for September 2009 by intentionally omitting to disclose as past due two customers’ loans and advances in the total principal amount of approximately $2.5 million.
According to court documents, Schmidt was the point of contact for Customer K, and Barber was the point of contact for Customer M, and their compensation was based, in part, on the performance of the loans for which they were each responsible. By September 2008, Schmidt and Barber each knew that Customers K and M were unable to make payments to the bank on their various loans. They agreed that they needed to take action to prevent the delinquent accounts from appearing on the bank’s reports and began concealing their past due nature. The false entries extended from September 2008 until October 2009.
Barber, with Schmidt’s knowledge and approval, and Schmidt made and caused false entries in loan records allowing Customer M to skip payments without paying the interest due and extending notes without interest payments being current. Some false entries were made on a retroactive basis so the actual condition of the loans would not appear on the bank’s current monthly records. With these serious delinquencies concealed, the bank made additional loans to Customer M totaling $708,274, on which he subsequently defaulted.
At Schmidt’s request, Barber also made false entries in the Bank’s records relating to Customer K which allowed loan payments to be improperly skipped and overrode restrictions on additional advances. Schmidt then approved $269,038 in loans to Customer K after Schmidt knew that Customer K was then unable to repay. Schmidt also made unauthorized undocumented advances to Customer K totaling $105,562, paid $22,500 of Customer K’s overdrafts, and issued an unauthorized letter of credit to Customer K in the amount of $80,000.
Finally, Schmidt deceived the bank’s board of directors by leading them to believe that he and Barber were properly managing the bank’s loans, when they were actually fraudulently creating reports that made it appear that the loan portfolio was in better shape than it was.
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Two Additional Men Charged in Federal Drug ConspiracyRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles today announced the indictment and arrest of Shane Henderson, 41, and Christopher Trent Glover, 42, for conspiracy to possess with intent to distribute and to distribute methamphetamine. Henderson and Glover were indicted along with eleven individuals who had previously been indicted for conspiracy to traffic methamphetamine and heroin. Several of the defendants have also been charged with conspiracy to launder money.
The case was investigated by Special Agents with the Drug Enforcement Administration, as well as agents and officers from the State Law Enforcement Division, City of Charleston Police Department, South Carolina Highway Patrol, Spartanburg County Sheriff’s Office and Anderson County Sheriff’s Office.
Assistant United States Attorney Nick Bianchi of the Charleston office is prosecuting the case.
The United States Attorney stated that the charges alleged in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Tonawanda Woman Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Gail Bishop, 44, of Tonawanda, NY, pleaded guilty to attempt to possess with intent to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that on February 3, 2013, the defendant arranged to purchase cocaine from a confidential source (CS) working with the Drug Enforcement Administration at a local coffee shop in Buffalo, NY. Bishop was arrested on February 4, 2013 after providing the CS with $5,000 in United States currency.
Officers subsequently conducted a search of the defendant’s residence and recovered nearly 80 grams of cocaine and items used to cut and package cocaine. Bishop co-owned the residence with her husband Anthony Bishop who was, at the time, and remains in jail for an October 2013 conviction on drug trafficking charges.
The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Sentencing is scheduled for September 10, 2015 at 1:00 p.m. before Judge Arcara.
Three Men Indicted on Multiple Counts of Fraud and Aggravated Identity TheftRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Joe Eugene Loving (46) and John Thomas Humphreys (41), both of Conroe, Texas, and Paul Corbin Pennington, Jr. (27, Orange Park) with aggravated identity theft, bank fraud, false representation of a Social Security number, and manufacturing and passing counterfeit Federal Reserve notes. Each faces up to 30 years in federal prison on the bank fraud charge, 20 years on the charges of manufacturing and passing counterfeit Federal Reserve notes, 5 years for false representation of a Social Security number, and a 2-year mandatory term of imprisonment for the aggravated identity theft charge.
According to the indictment, in January 2015, Loving, Humphreys, and Pennington obtained the personal identification information of various individuals from Texas and used the information to commit bank fraud in Florida. The three also manufactured and passed counterfeit Federal Reserve notes throughout Clay County.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Clay County Sheriff’s Office, the Green Cove Springs Police Department, and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Three Members of ‘Dirty Block’ Atlantic City, New Jersey, Gang Admit Roles in Drug Distribution and Money Laundering ConspiraciesRead the Press Release
TRENTON, N.J. – Two Atlantic City, New Jersey, men and a Millville, New Jersey, woman today admitted their roles in a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Franklin Simms, a/k/a “Fat Boy,” 31, pleaded guilty to a superseding information charging him with one count of conspiring to distribute, and to possess with intent to distribute, 100 grams or more of heroin. Rayshell Strong, a/k/a “Big Truck,” 34, pleaded guilty to a superseding information charging him with one count of conspiring to distribute a detectable amount of heroin. Latasha Cherry, a/k/a “Tasha,” 31, pleaded guilty to a superseding information charging her with one count of conspiring to engage in money laundering. All three defendants entered their pleas today before U.S. District Judge Anne E. Thompson in Trenton federal court.
All three were members of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village and Schoolhouse Apartments. To date, 23 of the 34 defendants charged in this matter have been convicted, either through guilty pleas or following trial.
According to documents filed in this case and statements made in court:
Simms and Strong admitted distributing heroin on behalf of one of the gang’s alleged leaders, Tyrone Ellis, a/k/a “Rome,” 33, of Galloway, New Jersey, who was among the 34 defendants charged in May 2013. Simms and Strong admitted that from October 2012 through March 2013, they conspired to distribute between 400 and 700 grams of heroin. Cherry admitted she conspired with Ellis and others to launder the proceeds by transferring cash onto reloadable prepaid debit cards.
The charges against Ellis are merely allegations, and he is considered innocent unless and until proven guilty.
The drug conspiracy charge to which Simms pleaded guilty carries a maximum potential penalty of 40 years in prison and a $5 million fine. The drug distribution conspiracy charge to which Strong pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. The money laundering charge to which Cherry pleaded guilty carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing for all three defendants is scheduled for Sept. 21, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel:
Simms: Troy A. Archie Esq., Cinnaminson, New Jersey
Strong: J. Michael Farrell Esq., Philadelphia
Cherry: Richard Sparaco Esq., Cherry Hill, New JerseyThree Individuals Indicted and Arrested for False Statements in Loan ApplicationsRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned a three-count indictment charging Alejandro Enrique Mayendía-Blanco, Nell N. Blanco-Casanovas (mother of Alejandro) and Orlando Mayendía-Díaz (father of Alejandro) for false statements in loan applications, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) is in charge of the investigation. The indictment was unsealed today and the defendants were arrested.
These charges stem from schemes used by Alejandro Mayendía-Blanco and his co-defendants to obtain money from mortgage lending institutions. The settlement statements for the loans charged all indicate that the buyers (the parents) provided a payment on the day of the closing. However, per the bank records, Mayendía-Blanco refunded his parents either the same day of the transaction or the following day, using the funds obtained from the bank as seller’s proceeds. Mayendía-Blanco’s parents defaulted on the charged loans.
On or about May 24, 2007, the defendants herein and others known and unknown to the Grand Jury, aiding and abetting each other, knowingly made material false statements to First Equity Mortgage Bankers, Inc. (FEMBI), in connection with a loan application to obtain a mortgage loan in the amount of $1,320,000.00, which was to be assigned, sold, and transferred to First Bank of Puerto Rico, a federally insured financial institution.
The false statements include, but are not limited to the following: the HUD Settlement Statement Form states that Nell N. Blanco-Casasnovas (the borrower) provided $314,267.27 as cash from borrower, when in truth and in fact, as the defendants well knew, such statement was false in that Alejandro E. Mayendía-Blanco (seller), refunded Nell N. Blanco-Casasnovas on or about May 25, 2007, with the funds he obtained as the seller’s proceeds, thus making the loan proceeds the true source of the funds.
Counts two and three of the indictment charge Mayendía-Blanco and his father Mayendía-Díaz with false statements in loan applications for two loans in the amount of $140,000.00 and $148,000.00. They used the same scheme described above.
The case is being investigated by ICE-HSI and prosecuted by Assistant United States Attorney Mariana E. Bauzá-Almonte. If found guilty, defendants are facing a maximum penalty of 30 years in prison.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigations are ongoing.
Tennessee Man Pleads Guilty to Conspiracy to Defraud Cornerstone Community Bank in Dalton, GeorgiaRead the Press Release
ROME, Ga. - Grady Wayne Fricks has pleaded guilty to conspiracy charges arising out of a scheme to defraud Cornerstone Community Bank in Dalton, Georgia.
“This defendant used his connection with a bank insider to obtain a fraudulently inflated loan,” said Acting U.S. Attorney John Horn. “Fricks’ ability to manipulate people to further his scheme left the bank and its stockholders shouldering the loss.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Bank fraud is not a victimless crime. With this guilty plea, Mr. Fricks will be held accountable for his criminal actions and a clear message sent to others considering such greed based fraudulent acts that this is a serious crime with serious consequences.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In November 2004, Fricks contacted a senior vice president at Cornerstone Community Bank and stated that he needed an $850,000 loan to purchase property in Ringgold, Georgia. Fricks did not reveal that he had already signed a contract to purchase the property for only $425,000. Fricks had done business with that senior vice president for many years before this, both at Cornerstone and at the bank where the employee had worked before joining Cornerstone. And Fricks had allowed the bank employee free use of his condominium at a beach in Florida, five to ten times.
The senior vice president violated Cornerstone’s policies and procedures by not obtaining a copy of the sales contract between Fricks and the seller of the property to verify the contract price. The senior vice president also allowed Fricks to select an appraiser to appraise the property. Fricks paid the appraiser $1,000 to inflate the appraised value of the property so that Cornerstone would approve the $850,000 loan Fricks was seeking. In addition, Fricks gave the appraiser $100 in cash as a “tip.” The appraiser provided Fricks with a fraudulently inflated appraisal report, which stated that the market value of the property was $1,010,000.
Prior to the loan closing, Fricks contacted the senior vice president at Cornerstone and asked, “Do you care if I get some money back at closing?” The senior vice president responded, “What the bank cares about is that the HUD-1 settlement statement shows a sales price of $850,000.”
At the direction of Fricks, a real estate closing agent created two HUD-l settlement statements: a correct one that listed the purchase price of the property as $425,000, and a fraudulent one that listed the purchase price of the property as $850,000. Fricks forged or caused someone else to forge the seller’s signature on the fraudulent HUD-l settlement statement and then caused the fraudulent HUD-1 settlement statement and the fraudulent appraisal report to be submitted to Cornerstone. Cornerstone relied upon the false information provided by Fricks and loaned Fricks $850,000 to purchase the property. Fricks used only half of the loan proceeds for the purpose intended and used the remainder for purposes that were not authorized or approved by Cornerstone.
Approximately two years later, in October 2006, Fricks contacted the same senior vice president at Cornerstone and stated that he wanted to borrow more money against the property. Fricks paid the same appraiser $1,000 to re-appraise the property and once again directed the appraiser to fraudulently inflate its appraised value. Fricks also gave the appraiser another $100 tip. The appraiser provided Fricks with a new appraisal report, which fraudulently stated that the market value of the property was $1,433,000. Fricks caused the new appraisal report to be sent to Cornerstone, knowing that it was fraudulent. The new appraisal was more than 40% higher than the previous appraisal conducted by the same appraiser just two years earlier. As a result of this new appraisal, Cornerstone released the additional collateral pledged by Fricks when the loan was originated in 2004, consisting of five real properties and the guaranty of Fricks Properties, a company owned by Fricks.
In November 2006, in reliance upon the false and misleading information and documents provided by Fricks and his unindicted co-conspirators, Cornerstone loaned Fricks an additional $177,000. Fricks did not repay the loans, and the bank foreclosed on the property.
Fricks, 65, of Nashville, Tennessee, pleaded guilty before U.S. District Court Judge Harold L. Murphy. Sentencing for Fricks will be August 14, 2015, at 1:30 p.m.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Assistant United States Attorney Russell Phillips is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.
Tampa Man Pleads Guilty to Firearms and Theft of Government Property OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Jarvos Leonard White (25, Tampa) today pleaded guilty to possessing a firearm and ammunition after a felony conviction and theft of government property. He faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been set.
According to court documents, on December 15, 2014, a customer saw White drop a handgun on the floor at the Citrus Park Town Center shopping mall in Tampa. Shortly after, White was arrested as he attempted to leave the mall. In his back pocket, he had pistol with a round chambered. Ten days later, on Christmas morning, several vehicles were burglarized in the Boyette Springs subdivision in Riverview. One of the burglarized vehicles was an FBI vehicle. Among the items stolen were three firearms, ammunition, and body armor. A blood stain from within the vehicle was subsequently determined to match White’s DNA.
This case was investigated by the FBI and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Tallahassee Man Sentenced to Prison for Use of Bogus Court OrderRead the Press Release
TALLAHASSEE, FLORIDA – Frank William Johannissohn, 67, of Tallahassee, was sentenced late yesterday by United States District Judge Robert L. Hinkle to 25 months in federal prison for mail fraud and aggravated identity theft. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
In July 2013, Johannissohn mailed a fraudulent “Redress of Alimony” order bearing the forged signatures of a Wakulla County circuit court judge and a deputy clerk of the court to the United States Office of Personnel Management. The fraudulent “Redress of Alimony” purported to order the termination of Johannissohn’s obligations to provide health insurance, survivor benefits, and alimony for his former spouse. Johannissohn mailed the fraudulent document in an attempt to remove his former spouse as the surviving beneficiary of his federal retirement annuity.
The case was investigated by the United States Office of Personnel Management’s Office of Inspector General with the assistance of the Wakulla County Sheriff’s Office and the Leon County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Jason Beaton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tacoma Woman Who Led Tax Fraud and ID Theft Scheme Sentenced to 30 Months in PrisonRead the Press Release
A Tacoma, Washington woman who used a prison pen pal program to obtain other peoples’ personally identifying information was sentenced today in U.S. District Court in Tacoma to 30 months in prison for wire fraud and aggravated identity theft, announced U.S. Attorney Annette L. Hayes. SHANNON HENDERSON, 45, filed more than 150 fraudulent tax returns between 2013 and 2014, seeking more than $170,000 in tax refunds. Some $56,000 in tax refunds were sent to HENDERSON at the addresses of friends and family members before the scheme was discovered. At the sentencing hearing U.S. District Judge Ronald B. Leighton said identity theft victimizes people “for no reason other than greed.”
According to the plea agreement, between 2007 and 2009, while incarcerated at the Washington Women’s Correctional Center at Purdy, Washington, HENDERSON became pen pals with various inmates across the country and obtained the names and identifying information of real people from these inmates. HENDERSON also purchased the personal information of people who were employed in Washington State by ABM Janitorial Services from a co-conspirator in order to use these names to file false and fraudulent U.S. Individual Income Tax Returns. HENDERSON used both the names provided by inmates and the names purchased from the co-conspirator to file the fraudulent returns. HENDERSON had the fraudulently claimed refunds loaded onto prepaid debit cards and had the cards mailed to her using the addresses of friends and relatives.
Writing to the court prosecutors explained how the identity theft had damaged victims, such as those working for the janitorial service. One victim wrote in his impact statement that his credit score was affected and as a result he was denied credit and job opportunities. Judge Leighton ordered HENDERSON to pay $56,605 in restitution to the IRS.
The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Rebecca Cohen.
Suquamish Tribal Member Sentenced to 18 Months in Prison for Domestic Violence AssaultsRead the Press Release
An enrolled member of the Suquamish Indian Tribe was sentenced today in U.S. District Court in Tacoma to 18 months in prison for two counts of assault resulting in substantial bodily injury, announced U.S. Attorney Annette L. Hayes. WADE WILLIAMS, 43, of Suquamish, Washington admitted assaulting his domestic partner in February 2013 and in May 2014. Originally charged for the February 2013 assault in Suquamish Tribal Court, the case was later charged federally when the pattern of abuse continued and culminated with an additional serious assault in May 2014. At the sentencing hearing U.S. District Judge Ronald B. Leighton said, “I was taught to treat women not as chattel or as property, but as equals ... As partners. How have we gotten so depraved that we tolerate this conduct for so long?”
According to records filed in the case, in February 2013, WILLIAMS assaulted his then girlfriend, spitting in her face, breaking her cell phone to prevent her from calling the police, and pushing her to the floor where she fell on other items bruising her hands, arms and legs. The victim sought medical attention, and WILLIAMS was charged in Tribal Court. WILLIAMS later violated a Tribal Court-issued No Contact Order and at the urging of WILLIAMS and his family, the victim recanted her statement to police and reconciled with WILLIAMS. As a result he Tribal Court charges were dismissed. On May 5, 2014, WILLIAMS repeatedly beat the victim with a broom, and grabbed her and held her so tightly she could not breathe and lost consciousness. The victim fell and hit her head on stone steps, creating permanent vision problems that ultimately required surgery.
WILLIAMS pleaded guilty to these two federal assault crimes in March 2015.
The case was investigated by the Suquamish Tribal Police Department and the FBI. The case is being prosecuted by Assistant United States Attorneys Ye-Ting Woo and Amy Jaquette.
Because the Suquamish Indian Reservation is a federal-jurisdiction reservation, certain violent crimes occurring on that Reservation are investigated by the FBI in conjunction with the Suquamish Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women. The U.S. Attorney’s Office in this District coordinates the engagement and action relative to public safety in tribal communities, including enhanced efforts to investigate and prosecute violent crimes against Indian and non-Indian women and children on federal-jurisdiction reservations under the Justice Department’s Tribal Safety program. To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
Sixteen Arrested in Cocaine and Crack Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Sixteen defendants have been charged in a federal indictment, partially unsealed yesterday, with felony offenses stemming from their role in a cocaine and crack cocaine distribution conspiracy, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
The defendants, most from north Texas and Oklahoma, were arrested Wednesday in a joint operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI – Violent Gang Safe Streets Task Force. Each made his initial appearance in federal court yesterday. Some were released on bond, and others are scheduled for detention hearings today and early next week.
The indictment charges each of the below-listed defendants with one count of conspiracy to distribute cocaine base (crack cocaine) and one count of conspiracy to distribute cocaine.
Acacedric Rashod Ware, a/k/a “CD,” 37
Al Torrell Beasley, a/k/a “Rody,” 38
Alondo Wheeler, a/k/a “Lil Dude,” 34
Chester Brown, a/k/a “Baldy,” 40
Christopher Johnson, a/k/a “1800,” 43
Frederick Glennard Brown, a/k/a “Phillip Edwards,” “Moe Curly,” and “Chester Brown,” 39
Jalisa Camille Shields, 27
Maurice Demon Bagley, a/k/a “Money Bags,” 31
Michael Seamster, a/k/a “Little Wanky,” 42
Norberta Annette Ramsey, 43
Omar Sharif Cole, a/k/a “Baby Loc,” 38
Quincy Deon Denby, 33
Raul Alvarado, 34
Roger Deundrea Jackson, a/k/a “Boo-Cat” and “Cat,” 40
Sherman Grant, a/k/a “Tank,” 45
Shirley Delois Young, a/k/a “Shirley Bird,” 45
Count One of the indictment alleges that since approximately January 2013, the defendants conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of cocaine base (crack cocaine).
Count Two of the indictment alleges that during the same period, the defendants conspired together and with others to possess with the intent to distribute and to distribute a mixture or substance containing a detectable amount of cocaine, its salt, optical and geometric isomers, and salts of isomers.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Assistant U.S. Attorney Phelesa Guy is prosecuting.
Second Individual Convicted, and Another Charged, in Wide-Ranging Investigation into Multi-Million Dollar Fraud Scheme Involving U.S. Treasury ChecksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of a second defendant, and the unsealing of an indictment against a third defendant, in an ongoing investigation into various check cashing businesses in Baton Rouge that cashed nearly $4 million in fraudulently-obtained U.S. Treasury checks during 2012 and 2013.
In one case, ALBELK REYES SERRATA, age 26, of Allentown, Pennsylvania, has pled guilty to conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371. As SERRATA acknowledged in Court in connection with his guilty plea before Chief U.S. District Judge Brian A. Jackson yesterday, he participated in a scheme to fraudulently obtain United States Treasury checks and have them cashed by an associate who operated a money service business on Florida Boulevard in Baton Rouge. From April 2012 through April 2013, SERRATA and his co-conspirators fraudulently obtained and cashed approximately 370 Treasury checks, having a total face value of approximately $2.2 million. After the checks were received and cashed in Baton Rouge, SERRATA’s co-conspirator would retain a percentage of the funds for herself, withdraw the remainder of the funds in cash, and then transmit the funds to SERRATA and others. As a result of his role in the scheme, SERRATA faces significant incarceration, fines, restitution, and supervised release following imprisonment.
In another case, CARLOS L. LINARES, age 55, of Baton Rouge, Louisiana, has been charged by a federal grand jury with failing to maintain an effective anti-money laundering program, in violation of Title 31, United States Code, Sections 5318 and 5322. The Indictment was returned by the grand jury on May 20, 2015 and unsealed in Court yesterday. According to the Indictment, LINARES owned, operated, and managed a separate business, also on Florida Boulevard in Baton Rouge, named Latinos Supermarket, LLC. The Indictment alleges that, from March 2012 through May 2013, LINARES took in and deposited more than 270 Treasury checks, totaling $1.6 million, the vast majority of which were addressed to individuals with out-of-state addresses, and most of which had been obtained through fraud. According to the Indictment, LINARES failed to follow the requirements placed on him as a registered money service business and failed to prevent his store from being used to facilitate criminal activity and launder money. If convicted, LINARES also faces significant incarceration, fines, restitution, and supervised release following imprisonment.
U.S. Attorney Green stated: “My office takes these types of offenses very seriously. These crimes put millions of taxpayer dollars at stake, make it more difficult for taxpayers to properly file their own taxes, and threaten the public’s confidence in the Internal Revenue Service. In the case of Mr. Linares’ alleged failure to maintain an effective anti-money laundering program, his alleged conduct invited criminals to come to Baton Rouge and allowed the criminals to line their pockets with the proceeds of fraudulent activity. My office appreciates IRS-CI’s commitment to working with us to root out this type of criminal activity.”
IRS Criminal Investigation Special Agent-in-Charge Jerome R. McDuffie stated: “IRS Criminal Investigation is proud to utilize our forensic accounting skills in cooperation with the U.S. Attorney’s Office to put a stop to bank fraud. The Indictment against Mr. Linares reflects that we will vigorously pursue those who willfully assist in the negotiation of fraudulently-obtained refund checks and fail to comply with federal reporting requirements. Identity Theft, and the prosecution of all involved parties, remains one of our agency’s top priorities.”
This ongoing investigation is being handled by the Internal Revenue Service—Criminal Investigation Division, with assistance from the Louisiana Office of Financial Institutions. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Roswell Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Albert Johnny Mondragon, 38, of Roswell, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 84 months in prison followed by four years of supervised release for trafficking methamphetamine in Lea County, N.M.
Mondragon was arrested on federal charges in Roswell on May 27, 2014, based on a criminal complaint charging him with possession of methamphetamine with intent to distribute. According to the complaint, Mondragon committed the offense on March 7, 2014, in Hobbs, N.M.
Mondragon subsequently was charged on Oct. 7, 2014, in a two-count indictment with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition.
On Jan. 14, 2015, Mondragon pled guilty to possession of methamphetamine with intent to distribute. In entering the guilty plea, Mondragon admitted that he was stopped by officers in Hobbs on March 7, 2014, and the officers found approximately 222.98 grams of methamphetamine in the back of his vehicle.
This case was investigated by the Las Cruces offices of the DEA and the Bureau of Alcohol, Tobacco and Firearms and the Lea County Drug Task Force, with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted this case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Ross Ulbricht, A/K/A “Dread Pirate Roberts,” Sentenced in Manhattan Federal Court to Life in PrisonRead the Press Release
Convicted of Multiple Counts for Creating and Operating the “Silk Road" Website, Used by More than 100,000 Users to Buy and Sell More Than $200 Million Worth of Illegal Drugs and Other Unlawful Goods and Services
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROSS ULBRICHT, a/k/a “Dread Pirate Roberts,” was sentenced today in Manhattan federal court to life in prison in connection with his operation and ownership of Silk Road, a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement between January 2011 and October 2013. ULBRICHT was found guilty of each of the seven charges he faced on February 5, 2015, following a four-week jury trial. U.S. District Judge Katherine B. Forrest imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Make no mistake: Ulbricht was a drug dealer and criminal profiteer who exploited people’s addictions and contributed to the deaths of at least six young people. Ulbricht went from hiding his cybercrime identity to becoming the face of cybercrime and as today’s sentence proves, no one is above the law.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
ULBRICHT created Silk Road in January 2011, and owned and operated the underground website until it was shut down by law enforcement authorities in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet, serving as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually all varieties, were bought and sold regularly by the site’s users. While in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to more than 100,000 buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
ULBRICHT deliberately operated Silk Road as an online criminal marketplace intended to enable its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. ULBRICHT sought to anonymize transactions on Silk Road in two principal ways. First, ULBRICHT operated Silk Road on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the networks’ users. Second, ULBRICHT designed Silk Road to include a Bitcoin-based payment system that served to facilitate the illegal commerce conducted on the site, including by concealing the identities and locations of the users transmitting and receiving funds through the site.
The vast majority of items for sale on Silk Road were illegal drugs, which were openly advertised as such on the site. As of September 23, 2013, the Silk Road home page displayed nearly 13,000 listings for controlled substances, listed under such categories as “Cannabis,” “Dissociatives,” “Ecstasy,” “Intoxicants,” “Opioids,” “Precursors,” “Prescription,” “Psychedelics,” and “Stimulants.” From November 2011 to September 2013, law enforcement agents made more than 60 individual undercover purchases of controlled substances from Silk Road vendors. These purchases included heroin, cocaine, ecstasy, and LSD, among other illegal drugs, and were filled by vendors believed to be located in more than ten different countries, including the United States, Germany, the Netherlands, Canada, the United Kingdom, Spain, Ireland, Italy, Austria, and France.
The narcotics distributed on Silk Road have been linked to at least six overdose deaths across the world. These overdose deaths included Jordan M., a 27-year old Microsoft employee who was found unresponsive in front of his computer, which was logged onto Silk Road at the time, and died as a result of heroin and other prescription drugs that he had ordered from Silk Road. Preston B., from Perth, Australia, and Alejandro N., from Camino, California, both 16 years old, died as a result of taking 25i-NBOMe, a powerful synthetic drug designed to mimic LSD (commonly referred to as “N-Bomb”), which was purchased from Silk Road. Additional victims included Bryan B., a 25-year old from Boston, Massachussetts, and Scott W., a 36-year old from Australia, who both died as a result of heroin purchased from Silk Road, and Jacob B., a 22-year old from Australia, who died from health complications that were aggravated by the use of drugs purchased from Silk Road.
In addition to illegal narcotics, other illicit goods and services were openly bought and sold on Silk Road. For example, as of September 23, 2013, there were: 159 listings under the category “Services,” most of which offered computer hacking services, such as a listing by a vendor offering to hack into social networking accounts of the customer’s choosing; 801 listings under the category “Digital goods,” including malicious software, hacked accounts at various online services, and pirated media content; and 169 listings under the category “Forgeries,” including offers to produce fake driver’s licenses, passports, Social Security cards, utility bills, credit card statements, car insurance records, and other forms of false identification documents.
Using the online moniker “Dread Pirate Roberts,” or “DPR,” ULBRICHT controlled and oversaw every aspect of Silk Road, and managed a staff of paid, online administrators and computer programmers who assisted with the day-to-day operation of the site. Through his ownership and operation of Silk Road, ULBRICHT reaped commissions worth more than $13 million generated from the illicit sales conducted through the site. ULBRICHT also demonstrated a willingness to use violence to protect his criminal enterprise and the anonymity of its users, soliciting six murders-for-hire in connection with operating the site, although there is no evidence that these murders were actually carried out.
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ULBRICHT, 31, of San Francisco, California, was convicted of seven offenses after a four-week jury trial: distributing narcotics, distributing narcotics by means of the Internet, conspiring to distribute narcotics, engaging in a continuing criminal enterprise, conspiring to commit computer hacking, conspiring to traffic in false identity documents, and conspiring to commit money laundering.
In addition to the life sentence prison term, ULBRICHT was ordered to forfeit $183,961,921.
In imposing today’s sentence, Judge Forrest said: “There must be no doubt that lawlessness will not be tolerated. There must be no doubt that no one is above the law - no matter one’s education or privileges. All stand equal before the law. There must be no doubt that you cannot run a massive criminal enterprise and because it occurred over the Internet minimize the crime committed on that basis.”
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, as well as the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the IRS, the New York City Police Department, U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and NY Department of Taxation. Mr. Bharara also thanked the ICE-HSI Chicago-O’Hare office for its assistance and support, as well as the Department of Justice’s Computer Crime and Intellectual Property Section and Office of International Affairs. Additionally, Mr. Bharara praised the foreign law enforcement partners whose contributions to the success of the investigation and prosecution have been invaluable, namely, the Reykjavik Metropolitan Police of the Republic of Iceland, and the French Republic’s Central Office for the Fight Against Crime Linked to Information Technology and Communication.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Serrin Turner and Timothy T. Howard are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
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Rockford Man Charged in Federal Court with Drug OffenseRead the Press Release
ROCKFORD — A Rockford, Ill. man was charged yesterday in federal court with possessing with the intent to distribute narcotic drugs. ANTHONY ROSS, 34, of Rockford, Ill., was charged with possessing with the intent to distribute cocaine, cocaine base (crack cocaine), and heroin on May 28, 2015. According to the complaint, Ross was taken into custody outside an apartment on 23rd Street in Rockford. When law enforcement officers went into the apartment to execute a search warrant, they found $1,205 in cash, two loaded semi-automatic pistols, and numerous packages of cocaine, cocaine base and heroin. When law enforcement officers went to a second location that day, a residence on Orchard Avenue in Rockford, they found over a kilogram of cocaine and 214 grams of heroin.
ROSS was brought before U.S. Magistrate Judge Iain D. Johnston yesterday for an initial appearance. He was ordered to be held pending a detention hearing and a preliminary hearing on June 2, 2015, at 2:30 p.m.
Possession with the intent to distribute of the charged narcotic drug Controlled Substances carries a maximum potential penalty of up to 20 years in prison, at least 3 years of supervised release following imprisonment, and a fine of up to $1,000,000. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; CARL VASILKO, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives; JOSEPH P. BRUSCATO, Winnebago County State’s Attorney; and GARY CARUANA, Winnebago County Sheriff. Officers of the Rockford Police Department assisted in the investigation.
The government is being represented by Assistant U.S. Attorney John G. McKenzie.
Complaint
Rochester Man Indicted on Robbery and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned an indictment charging Aaron L. Rucker, 38, of Rochester, NY, with attempted Hobbs Act robbery and use of a firearm during a crime of violence. The charges carry a mandatory minimum penalty of seven years in prison and a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Frank H. Sherman, who is handling the case, stated that according to the indictment, on November 4, 2014, the defendant is accused of attempting and conspiring to rob money and controlled substances from an individual engaged in the unlawful distribution and possession of controlled substances, including heroin and marijuana. Rucker is also accused of brandishing a firearm in furtherance of the crime.
Rucker was arraigned this afternoon before U.S. Magistrate Judge Johnathan W. Feldman. He is being held pending a detention hearing on June 4, 2015 at 4:00 p.m.
The indictment is the culmination of an investigation on the part of the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rapid City Man Sentenced to Life for Drug ConspiracyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine, Possession of Firearms During a Drug Trafficking Crime, Felon and Fugitive in Possession of Firearms, Possession of Methamphetamine with the Intent to Distribute, and Distribution of Methamphetamine was sentenced on May 27, 2015, by Chief Judge Jeffrey L. Viken, U.S. District Court. The convictions were the result of an eight-day federal jury trial in Rapid City in December of 2014.
Luis Olivares, age 43, was sentenced to life imprisonment without the possibility of release, and ordered to pay $600 in special assessments to the Federal Crime Victims Fund.
The convictions stem from a conspiracy led by Olivares, involving the recruitment of many other participants, including minors, to illegally distribute approximately 5 to 15 kilograms of methamphetamine in South Dakota and elsewhere. The conspiracy began in 2008 and concluded in late 2010 after Olivares and 15 others were indicted for various drug and firearms offenses.
While involved in this conspiracy, Olivares engaged law enforcement in a high-speed chase, which ended in him crashing his vehicle, which had approximately two pounds of methamphetamine inside. During the pursuit by law enforcement, Olivares threw a pound of methamphetamine out the car window. After the crash, he fled on foot and hid an additional pound of methamphetamine under a rock in a field.
Olivares has two previous drug felony convictions out of Colorado, which contributed to his enhanced sentence. All of the 15 co-defendants pleaded guilty to at least one federal felony offense. The methamphetamine that Olivares led the others in distributing was distributed primarily in Rapid City and on the Pine Ridge Indian Reservation.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Drug Enforcement Administration, the Unified Narcotics Enforcement Team, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the South Dakota Highway Patrol. Assistant U.S. Attorneys Kathryn N. Rich and Jay Miller prosecuted the case.
Olivares was immediately returned to the custody of the U.S. Marshals Service.
Pharr Woman Pleads Guilty in Liquid Silicone Injection CaseRead the Press Release
McALLEN, Texas – Maribel Quintero, 39, has entered a guilty plea to violating the U.S. Food, Drug and Cosmetics Act, announced U.S. Attorney Kenneth Magidson.
Quintero, of Pharr, admitted administering injections of liquid silicone into individuals who wanted to enhance the structure of their buttocks. These injections were not approved by the Food and Drug Administration (FDA). Quintero also falsely represented to customers to whom she administered the liquid silicone that they were safe when, in fact, they were not.
On Sept. 9, 2014, she possessed an adulterated device - liquid silicone - and was about to use it on a male customer. She admitted that she intended to mislead him by not disclosing that she had knowledge of previous complications due to the use of the liquid silicone.
U.S. District Judge Randy Crane accepted the plea and has set sentencing for Aug. 10, 2015. At that time, she faces up to three years in prison and a possible $250,000 fine.
The investigation into this case began in August 2014 after law enforcement received information that Quintero was involved with providing liquid silicone to women to effect the structure and function of their bodies.
The charges are the result of an investigation by the FDA - Office of Criminal Investigations, FDA - Forensic Chemistry Center, Hidalgo County Sheriff's Office and the FBI. Assistant U.S. Attorneys Kimberly Ann Leo and Alex Benavides are prosecuting the case.
New York State Residents Sentenced for Roles in Mail and Wire Fraud Conspiracy Relating to Life InsuranceRead the Press Release
CONCORD – Two New York City men, who previously pled guilty to conspiracy to commit mail and wire fraud in connection with a scheme to fraudulently obtain high value life insurance policies for the purpose of selling those policies to third party investors, have been sentenced to 18 months in federal prison. The scheme, which related to Stranger Originated Life Insurance (“STOLI”) policies, allowed the defendants to earn substantial commissions from the insurance companies issuing the policies based on the false information provided by the defendants.
According to documents filed in the United States District Court and other documents in the public record, Robert Wertheim and Abraham Kirschenbaum, both of New York, admitted that they conspired with others to identify elderly individuals interested in purchasing high value life insurance policies at no cost. Wertheim and Kirschenbaum conspired with others to provide false information on multi-million dollar life insurance policies to induce insurance companies to issue the policies, including but not limited to materially false information as to the assets held by and net worth of the insureds, whether or not the insureds intended to finance the cost of the substantial premiums associated with such policies, and whether the insureds intended to assign the beneficial interest in the policy to third parties. Some of the policies issued based upon the false representations were issued by a New Hampshire insurance company, Lincoln National Life Insurance Company.
Kirschenbaum and Wertheim, who faced a maximum prison sentence of 5 years in federal prison, were both sentenced to 18 months based on their substantial assistance to the government in its ongoing investigation of others. Additionally, Kirschenbaum was ordered to forfeit $1,000,000.
“Fraudulent life insurance procurement schemes pervert the market for life insurance policies,” said Acting United States Attorney Donald Feith. “By conspiring with others to infect the life insurance market with these fraudulently obtained policies, the defendant skewed the normal operation of life insurance and put insurers at substantial risk from the losses that could be incurred relating to such policies. Our office’s investigation of this practice is ongoing.”
The United States Secret Service, the United States Postal Inspection Service and the Federal Bureau of Investigation led the investigation of this case.
New Jersey Developer to Pay Civil Penalty for Stormwater Violations and Preserve WetlandsRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced that it have reached an agreement with Garden Homes and its affiliated companies to settle their alleged failure to control stormwater discharges. These failures potentially resulted in pollutant discharges to the Passaic, Hackensack, Rahway, Raritan, Saddle and Delaware River watersheds. The agreement requires Garden Homes to pay a $225,000 penalty and implement measures to improve the company’s stormwater practices. In addition, the company has agreed to provide 108 acres of land for preservation within the Highlands Preservation Area in Morris County, New Jersey, protecting it from possible future development. This land contains approximately 23 acres of wetlands adjacent to the Berkshire Valley Wildlife Management Area and in the Highlands Preservation Area—a critical drinking water protection area for the state of New Jersey.
“Today’s settlement will help protect New Jersey waterways from the harmful pollutants contained in stormwater runoff from Garden Homes’ construction sites and also preserve valuable wetlands and wildlife habitat,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “One of the important parts of the settlement is the requirement that Garden Homes develop a corporate-wide stormwater management program which may stimulate better management practices throughout the construction business.”
“Stormwater often carries pollution and sediment into local waterways that can damage water quality,” said Regional Administrator Judith A. Enck for EPA. “Large quantities of stormwater can run off of construction sites and it is critically important that stormwater be controlled. The EPA takes these violations seriously and this legal settlement not only holds the company accountable, but also includes measures to preserve 108 acres of land that contains vital wetlands near a wildlife area.”
Under the federal Clean Water Act, developers and contractors responsible for operations at construction sites one acre or larger are required to implement stormwater pollution prevention plans to keep soil and contaminants from running off into nearby waterways. These plans can include measures such as the establishment of sediment barriers, the implementation of controls to hinder stormwater flowing onto the construction site and the protection of slopes. Water carries soil and contaminants off of construction sites at a rate typically 10 to 20 times greater than that from agricultural lands and 1,000 to 2,000 times greater than that from forested lands.
Under the settlement, Garden Homes will undertake a corporate-wide evaluation of its existing stormwater practices and develop a corporate-wide stormwater management program. In addition, Garden Homes will designate one of its employees as its company stormwater manager, who will be responsible for preparing all stormwater pollution prevention plans, developing and overseeing stormwater compliance training and conducting unannounced site inspections, among other responsibilities. The company will also designate individual site stormwater managers for its various sites. EPA estimates the value of these measures to be $539,000 for the first year and approximately $380,057 annually thereafter.
The complaint alleged that Garden Homes violated numerous stormwater requirements at ten of the company’s sites in New Jersey by failing to conduct and document weekly inspections; failing to install perimeter silt fencing along the perimeter of construction sites; failing to maintain a spill kit on-site; and allowing fuel to spill on the ground uphill from an unprotected catch basin, among other allegations. The violations at issue in this case were found at multiple construction sites owned and/or operated by Garden Homes through their affiliates. These repetitive violations continued to persist despite two administrative penalty actions taken by Region 2 against affiliates of Garden Homes.
Under the terms of the proposed settlement, Garden Homes will donate land within the Highlands Preservation Area as a supplemental environmental project. This donation of land will further aid in the recovery of threatened and endangered species, particularly the Indiana Bat and bog turtle, which have a known presence in the vicinity.
The proposed consent decree has been lodged in the U.S. District Court for the state of New Jersey and is subject to a 30-day public comment period and final court approval. A copy is available on the Department of Justice website at: http://justice.gov/enrd/Consent_Decrees.html
For more information about requirements of the Clean Water Act and how EPA protects the nation’s water, visit http://water.epa.gov/
Follow EPA Region 2 on Twitter at http://twitter.com/eparegion2 and Facebook at http://facebook.com/eparegion2
Mulga Mother and Sons Indicted on Prescription Pill Distribution ChargesRead the Press Release
BIRMINGHAM -- A federal grand jury on Thursday indicted a Mulga woman and her two sons in connection with the illegal distribution of prescription painkillers, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
A three-count indictment filed in U.S. District Court charges SUSAN ROBERTSON HICKS, 49, JONATHAN CODY HICKS, 26, and DUSTIN WADE COX, 33, with conspiring to possess, with the intent to distribute, oxycodone between January and May in Jefferson County. The indictment also charges Susan Hicks and son, Jonathan Hicks, with possessing and distributing the opioid painkiller on March 30, and charges the mother and son, Dustin Cox, with possessing and distributing oxycodone on April 27.
The three defendants were arrested on a federal complaint May 1. According to the sworn affidavit supporting the complaint, DEA agents, using a confidential source, bought 20 oxycodone tablets from Susan and Cody Hicks at their Birmingport Road home on March 30. On April 27, the same confidential source, under DEA surveillance, went to Hicks' home and bought 20 oxycodone pills from Dustin Cox, five of which Cox took from a prescription pill bottle bearing Susan Hicks' name, according to the affidavit.
The maximum penalty for the distribution charges is 20 years in prison and a $5 million fine.
The DEA investigated the case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting.
Federal complaints and indictments contain charges. Defendants are presumed innocent unless and until proven guilty.
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Moorpark Man Who Pleaded Guilty to Producing Child Pornography in ‘Sextortion’ Case Sentenced to 15 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Moorpark man who used social networking websites to trick, extort or threaten more than a dozen girls and boys into sending him naked photos and videos was sentenced today to 15 years in federal prison for producing child pornography.
Jeremy Brendan Sears, 24, was sentenced this morning by United States District Judge John F. Walter.
Once Sears finishes his prison term, Judge Walter ordered that he will be on supervised released for the rest of his life.
Sears pleaded guilty in January to one count of production of child pornography in a binding plea agreement that called for a sentence of at least 15 years.
According to court documents, Sears set up fake profiles on Facebook, Meetme, and other social networking websites that appeared to be from teenage boys and girls. Sears allegedly used the bogus profiles to communicate with real-life teenagers, sometimes beginning online romantic relationships with the real-life teens and then encouraging them to send him sexually explicit videos and photos of themselves. Sears “used false online identities to persuade teenage victims to send defendant sexually explicit photos or to engage in sexually explicit video webchats that defendant recorded,” prosecutors wrote in a sentencing memorandum filed with the court.
In some cases, Sears threatened to harm the real-life teens or their loved-ones unless they sent him naked images. In some cases, after receiving the images of the underage victims, Sears would distribute those images, along with the victims’ names and personal information, to other members of his online social networking groups or to publicly accessible websites.
“Other times, [Sears] would make physical threats against his minor victims, threatening that the victims would be raped, tortured, or killed if they did not give defendant a thing of value — namely, nude and sexually explicit images of themselves,” Sears admitted in his plea agreement.
Sears approached some of his victims after finding them active in social-networking groups for fans of music acts popular with young teenagers, such as Justin Bieber or One Direction. Sears harassed victims by making online accusations about their sexual activity, insulting them, or repeatedly insulting people the victims liked, according to the plea agreement filed in this case. “Defendant would then offer to stop the harassment if his victims would send him sexually explicit images or would transmit to him live depictions of themselves engaging in sexually explicit conduct.”
The investigation was conducted by the Federal Bureau of Investigation and the Ventura County Sheriff’s Office.
Release No. 15-054
Mississippi sheriff’s office employee indicted for using stolen identities to file fraudulent tax returns sent to Louisiana post office boxes in Tallulah, La.Read the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted a Mississippi woman for being part of a scheme to file fraudulent income tax returns using stolen identities and causing the refunds to be mailed to post office boxes in Louisiana.
Shannon A. Brumfield, 48, of Byram, Miss., was indicted on one count of conspiracy to commit mail fraud, 11 counts of mail fraud and 10 counts of aggravated identity theft. According to the indictment, Brumfield used her position as a lieutenant at Hinds County Detention Center to access the Hinds County Jail Management System and steal names and Social Security numbers of inmates and other individuals. Brumfield and other members of the conspiracy not named in the indictment used the stolen identities to file fictitious IRS tax returns from May 2011 until December 2012. Based on the fraudulent returns, the IRS issued tax refunds and mailed them to U.S. Post Office boxes in Tallulah, La.
Brumfield faces up to 20 years in prison and a $250,000 fine for the conspiracy count and each mail fraud count. She faces a mandatory term of imprisonment of two years for the aggravated identity theft counts, which must run consecutive to any other term of imprisonment. She also faces up to three years of supervised release and possible forfeiture of property derived from the proceeds of the offenses.
Indictment_US_v._Brumfield.pdf (266.71 KB)
The IRS – Criminal Investigation Division conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Miami Dade College Student Sentenced for Her Involvement in a Stolen Identity Tax Refund Fraud Scheme Involving Her Student Financial Services AccountRead the Press Release
A Miami Dade College student was sentenced to 21 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $63,000, for her involvement in a stolen identity tax refund fraud scheme involving her student financial services account.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
A federal jury previously convicted Laquisha Q. Johnson, 24, of Opa Locka, Florida, for her involvement in a stolen identity tax refund fraud scheme that utilized her student Higher One financial services account. Johnson was convicted of three counts of receiving stolen government property.
As shown at trial, Johnson was a student at Miami Dade College. During her time as a student, Johnson opened a bank account serviced by Higher One, Inc., which provides financial services to colleges and universities throughout the United States, including Miami Dade College in Florida. After opening this account, tax refunds issued to three different victim-taxpayers were direct deposited into Johnson’s account. This included a tax refund of $61,000 that had been issued to a victim-taxpayer with the initials E.R.L. An aggregate amount of tax refunds in the amount of $63,000 was deposited into Johnson’s account.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case is being prosecuted by Assistant U.S. Attorneys John Byrne and John Gonsoulin.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Man Guilty of Illegally Reentering the United States After Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Carlos Gomez-Lopez, of Mexico, pled guilty to a one-count indictment alleging that he illegally reentered the United States after having been previously deported, announced Acting United States Attorney Donald Feith. He was sentenced immediately and will be deported.
The Nashua Police Department arrested Gomez-Lopez in January 2015 for operating without a license. At the time of his arrest, Gomez-Lopez identified himself as Esau Gomez-Lopez. The Nashua Police submitted Gomez-Lopez’s fingerprints for analysis and the fingerprint matched Department of Homeland Security records for Carlos Gomez-Lopez. The records maintained by DHS established that Gomez-Lopez had been deported from the United States to Mexico on five previous occasions – June 2004, September 2004, November 2012, and twice in December 2012.
Gomez-Lopez was arrested in Nashua by DHS agents on March 11, 2015. He was indicted in by a grand jury for the District of New Hampshire on March 25, 2015. Gomez-Lopez pled guilty to knowingly reentering the United States after having previously having been deported to his native Mexico and was sentenced to time served since his arrest on March 30, 2015. He is in the custody of immigration officials and will be deported.
The case was investigated by the Nashua Police Department and agents from the Department of Homeland Security. The case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
Mescalero Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Clay Samson Geronimo, 27, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 30 months in federal prison followed by three years of supervised release for his federal assault conviction. Geronimo was also ordered to pay $1,216.00 in restitution to cover medical expenses for the victim of his crime.
Geronimo was arrested on Feb. 21, 2014, on a criminal complaint alleging that he assaulted a Mescalero Apache woman on Jan. 12, 2014, on the Mescalero Apache Reservation in Otero County, N.M., and caused her to suffer serious bodily injuries. Geronimo was indicted on May 14, 2014, and charged with assault resulting in serious bodily injury.
Court filings reflect that on Jan. 12, 2014, Geronimo assaulted the victim by striking her in the face with his fists. As a result of the assault, the victim sustained a fractured eye socket and fractured nasal bones, which required surgical treatment. Geronimo was arrested on tribal charges on Jan. 12, 2014, and entered a no contest plea in Mescalero Tribal Court.
Geronimo pled guilty to the indictment on Oct. 10, 2014, without the benefit of a plea agreement.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Medford Woman Indicted for Disclosing Social Security NumbersRead the Press Release
BOSTON – A Medford woman was arrested today for unlawfully disclosing Social Security numbers.
Lynrolte Cezaire, 27, was indicted on unlawful disclosure of Social Security numbers between July 2011 and April 2014.
The statute provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. 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; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts; and Medford Police Chief Leo Sacco, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns, or information regarding this case should email [email protected].
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 21 Months in Federal Prison for Sending Obscene Material to A Lubbock Police Officer Posing Online as A 13 Year-Old Female in an Undercover OperationRead the Press Release
LUBBOCK, Texas — A 53-year-old League City, Texas, man, Nilanjan Brahma, was sentenced today by U.S. District Judge Sam R. Cummings to 21 months in federal prison, following his guilty plea in October 2014 to one count of attempted transfer of obscene materials to a minor, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Brahma must surrender to the Bureau of Prisons on July 6, 2015.
According to plea documents filed in the case, from approximately April 25, 2011, through February 19, 2012, Brahma engaged in a series of communications, via messaging, texting, and telephone, with a person he believed to be a 13-year-old female, “Jane Doe,” who represented that she lived in Lubbock, Texas. In fact, Jane Doe was an undercover officer with the Lubbock Police Department.
On April 25, 2011, Brahma chatted with Jane Doe and sent her nine photographs. Five of those photographs depict an adult male engaged in sexually explicit conduct and are considered obscene.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department, the FBI, and the League City Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Man Arrested for Illegally Exporting Assault Rifle and Pistol PartsRead the Press Release
BOSTON – A Massachusetts man was arrested this morning on charges that he illegally shipped hundreds of firearm parts to 22 different countries, including Finland where parts allegedly ended up in the hands of the Cannonballs Outlaw Motorcycle Gang.
David L. Maricola, 59, of Southbridge, Mass., was arrested on a 32-count federal indictment on charges of conspiracy, illegally exporting defense articles, making false statements on customs forms and money laundering. He is scheduled to appear in U.S. District Court in Boston at 12:00p.m. today before Chief Magistrate Judge Jennifer C. Boal.
The indictment, which was unsealed today, alleges that between December 2010 and March 2012, Maricola exported and attempted to export hundreds of assault rifle and firearm components, including parts for M16, M4, and AR-15 assault rifles and UZI submachine guns. Additionally, it is alleged that between November 2010 and March 2012, Maricola conspired with Arto Laatikainen, a Finnish citizen, to illegally export firearm parts from the U.S. to Finland and that Maricola shipped Laatikainen more than $100,000 worth of firearm components. Laatikainen procured firearms and firearm components and sold them to criminal organizations in Finland, including the Cannonballs Outlaw Motorcycle Gang.Laatikainen, 31,is also charged in the Indictment.
According to the indictment, Maricola obtained many of the parts he illegally exported from gunbroker.com, an auction-type website, instructed his foreign buyers to send him money using PayPal and told them, “DO NOT MENTION GUN PARTS.” Maricola exported hundreds of firearm parts overseas using the U.S. Postal Service. In order to ship his packages, Maricola lied on customs documents about the contents and value of the articles he was sending overseas. For instance, he repeatedly falsely described parts for AR-15 assault rifles as aluminum sculptures.
The statuatory penalty for each illegal export and monely laundering count is up to 20 years in prison and up to five years in prison on the conspiracy and false statement counts. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations in Boston; Defense Criminal Investigative Service; and Department of Commerce, Office of Export Enforcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Postal Service, Office of Inspector General, provided substantial assistance during the investigation. The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Largest Drug Trafficker from Shuttered Underground Silk Road Website Sentenced to 10 Years in PrisonRead the Press Release
Chicago --- A drug trafficker who used the illicit website “Silk Road” for worldwide drug sales was sentenced yesterday to 10 years’ imprisonment for selling millions of dollars’ worth of illegal drugs for bitcoins. The defendant, Cornelis Jan Slomp, 23, of Woerden, the Netherlands, pled guilty in April 2014 to conspiracy to import and distribute various controlled substances worldwide. Slomp was also ordered to forfeit $3,030,000 in illegal drug proceeds from his criminal enterprise. Slomp has been in federal custody since his arrest in August 2013.
"The crime is an extraordinarily serious one given the amounts involved, there's no question about that," said U.S. District Court Judge Matthew F. Kennelly said in imposing the sentence.
Slomp, who operated under the username “SuperTrips,” conducted more than 10,000 illegal online drug transactions and received approximately 385,000 in bitcoins as payment for his illegal drug sales. By his own admissions and as confirmed by law enforcement’s examination of the data retrieved from the Silk Road server, Slomp was the world’s largest drug trafficker on Silk Road.
Shortly before law enforcement agents shut down the Silk Road web site in August 2013, Chicago Homeland Security Investigations (HSI) agents arrested Slomp when he traveled from the Netherlands to Miami, Florida. At the time, Slomp had arranged to spin off his United States illegal drug trafficking business to his largest U.S.-based wholesale re-distributor of illegal drugs, Angel William Quinones, of Largo, Florida. Quinones, who was later arrested, has since pleaded guilty in federal court in Tampa and has been sentenced to 70 months’ imprisonment for his role in Silk Road drug trafficking activity.
According to court documents, for an eighteen-month period from March 2012 through about August 2013, Slomp distributed worldwide approximately: 104 kilograms of powder 3,4-methylenedioxy-N-methylamphetamine (MDMA); 566,000 ecstasy pills containing MDMA; four kilograms of cocaine; three kilograms of Benzodiazepine; and substantial quantities of amphetamine, lysergic acid diethylamide (LSD), and marijuana, in addition to allowing for substantial quantities of methamphetamine, ketamine, and Xanax to be distributed on his SuperTrips Silk Road vendor account.
“The public is harmed when illegal drugs are sold in the United States as well as in this district. This harm to the public is magnified when drug traffickers such as the defendant use sophisticated modern technology to reach larger segments of the population as well as to further conceal their identities and criminal activity. Here, the defendant used one of the most sophisticated dark websites of its time to sell enormous quantities of illegal drugs to wholesale redistributors, retailers, and users of drugs across the country – indeed, throughout the world – in more than 10,000 transactions,” argued Assistant United States Attorney Andrew S. Boutros in the government’s sentencing memorandum.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of HSI Chicago.
The case was prosecuted by Assistant U.S. Attorney Andrew S. Boutros.
Lake Tapps Sex Offender, Who Volunteered to Babysit Neighborhood Children, Pleads Guilty to Producing Videos of Child RapeRead the Press Release
A repeat offender who was convicted of child pornography offenses in Florida, pleaded guilty today in U.S. District Court in Tacoma to production, possession and distribution of child pornography, announced U.S. Attorney Annette L. Hayes. CALEB DEAN ECCLES, 32, also went by the name “Caleb Eckoles” in order to avoid detection of his sex offender registration status. When sentenced on August 14, 2015, ECCLES faces a mandatory minimum 25 years in prison.
According to the statement of facts in the plea agreement, ECCLES was convicted in Florida in 2002 of sixty three child pornography offenses and was sentenced to ten years of probation. He was required to register as a sex offender. ECCLES relocated to the Lake Tapps area and held his name out to be ‘Eckoles’ to avoid any linkage to his sex offender registration. Using that name, ECCLES volunteered to babysit for families in his neighborhood. ECCLES admits in his plea agreement that he sought to have access to young boys so that he could sexually abuse them and record the sexual abuse using his phone and other electronic devices.
In October 2013, ECCLES created an account at a website known for trading child pornography. Between October 2013 and March 2014 ECCLES uploaded sexually explicit images of a 10-year-old boy. On two different dates in February 2014, ECCLES made videos of his sexual molestation of the young boy.
ECCLES came to the attention of law enforcement due to an investigation of the website used to trade child pornography.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Kate Vaughan.
Jamestown Mancharged with Making False Statements to the FbiRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tyrell Fuqua-Hayes, 38, of Jamestown, NY, was arrested and charged by criminal complaint with making false statements and representations. The charge carries a maximum penalty of five years and a $250,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, in January 2015, Hayes alleged that he met a man who was arrested in another federal case while they were in custody together at the same jail. The defendant claimed that the man provided him with contact information and advised Hayes that he would be reaching out to him.
The complaint further states that in May 2015, Hayes advised the Federal Bureau of Investigation that he was receiving text messages from the man he met in jail indicating that the man wanted to pay the defendant $5000 to kill witnesses in that man’s case. The complaint also states that Hayes later admitted he created the text messages himself and that lied about the recent conversations between the man and himself.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and is being held pending a detention hearing.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Rochester Police Department, the Monroe County Sheriff’s office and Immigration and Customs Enforcement, Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Illegal Alien Indicted for Illegal Gun Possession and Distributing "Ice"Read the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Mexican man living in Brighton on charges of illegal gun possession and distributing high-purity methamphetamine known as "ice," announced U.S. Attorney Joyce White Vance, Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge David Hyche and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
An indictment filed in U.S. District Court charges SERAFIN “Primo” JARAMILLO-ECHEVERRA, 27, possessed with intent to distribute methamphetamine on April 8 in Jefferson County, and that he possessed with intent to distribute more than 50 grams of "ice" at two separate locations in Jefferson County on April 10. Federal sentencing guidelines define "ice" as a substance containing at least 80 percent methamphetamine.
The indictment also charges Jaramillo-Echeverra carried a Hi-Point .45-caliber semi-automatic pistol in relation to a drug-trafficking crime on April 10, and that he was an illegal alien in possession of a firearm.
The maximum penalty for possession with intent to distribute methamphetamine is 20 years in prison and a $1 million fine. Possession with intent to distribute more than 50 grams of "ice" carries a minimum prison sentence of 10 years and a maximum $10 million fine. The maximum sentence for carrying a firearm during a drug-trafficking crime is five years in prison, which must be served after completion of any other sentence imposed for the crime, and a $250,000 fine. The maximum penalty for being an illegal alien in possession of a firearm is 10 years in prison and a $250,000 fine.
ATF and DEA investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Idaho Falls Man Indicted for Sexual Exploitation of Minor ChildRead the Press Release
POCATELLO - Justin Dixson, 41, of Idaho Falls, Idaho, was indicted on May 27, 2015, by a federal grand jury sitting in Pocatello for five counts of sexual exploitation of a minor child and one count of possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Dixson is currently in custody on local criminal charges.
The indictment alleges that between January 1, 2006, and January 1, 2013, Dixson used an underage girl to produce sexually explicit images of the girl engaging in sexually explicit conduct. The indictment further alleges that Dixson produced at least five “series” of such images. Additionally, Dixson is charged with possessing images of child pornography, including sexually explicit images of minors under the age of 12.
The charge of sexual exploitation of a minor child is punishable by up to 30 years in prison, a maximum fine of $250,000.00, and up to a lifetime of supervised release. The charge of possession of sexually explicit images of minors is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to a lifetime of supervised release.
A trial will be scheduled for a later date at the federal courthouse in Pocatello.
The case is being investigated by the Idaho Internet Crimes Against Children Task Force (ICAC), with the assistance of the Idaho Falls Police, Boise Police, Garden City Police, Ada County Sheriff’s Office, U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Marshals Service (USMS).
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.”
High Desert Woman Charged with Stealing Identities from Elderly Victims as Part of Unemployment Insurance Fraud SchemeRead the Press Release
Victims Gave Personal Data in Hopes of Being Cast in Remakes of Movies
LOS ANGELES, California – A federal grand jury this afternoon charged an Antelope Valley woman in an identity theft scheme that used personal data from elderly victims to defraud California’s unemployment insurance program out of hundreds of thousands of dollars.
Dena Peterman, 32, of Littlerock, was named in an eight-count indictment that charges her with conspiracy, aggravated identity theft and six counts of mail fraud.
Over the course of two years, Peterman and her co-conspirators allegedly stole social security numbers and other personal identifying information that was used to commit unemployment insurance fraud. According to court documents, Peterman and her co-conspirators targeted senior citizens as part of the scam, obtaining social security numbers and other personal data from the elderly victims in Oregon and California by telling them that they had an opportunity to be cast in remakes of the 1985 movie “Cocoon” and the 1981 film “On Golden Pond.”
Once they had obtained the personal information, Peterman and her co-conspirators allegedly created bogus companies supposedly related to the movie industry, submitted false wage information for the elderly victims and other individuals whom they falsely claimed worked for these companies, and submitted bogus unemployment insurance claims in the names of these individuals. The California Employment Development Department (EDD) subsequently provided unemployment insurance benefits in the names of these individuals through debit cards that were mailed to addresses that Peterman or her co-conspirators controlled.
As a result of this scheme, investigators believe that the EDD suffered losses of approximately $500,000.
Peterman was arrested on May 18 pursuant to a criminal complaint that had been filed in federal court. A United States Magistrate Judge ordered the Peterman be held without bond. She is scheduled to be arraigned on the indictment on June 5.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charges in the indictment, Peterman would face a statutory maximum penalty of five years in federal prison on the conspiracy, up to 20 years for each mail fraud count, and a mandatory consecutive two-year sentence for the identity theft count.
This case is the result of a joint investigation by the U.S. Department of Labor - Office of Inspector General and the California Employment Development Department.
Release No. 15-055
Helotes Woman Sentenced to Federal Prison for Conspiracy to Import Crystal MethamphetamineRead the Press Release
In Del Rio yesterday, Maria Landin, age 48, of Helotes, TX, was sentenced to 194 months in federal prison for her role in a scheme to smuggle into the United States 878.2 grams of pure crystal methamphetamine, announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.
On November 20, 2013, jurors convicted Landin of one count of conspiracy to import a controlled substance. Evidence and testimony presented during trial revealed that on November 11, 2012, Landin hired two individuals—Paul Edward McKinney and Anthony Wayne Cole, both of Corpus Christi, TX--to pick up the crystal methamphetamine in Piedras Negras, Mexico, and deliver it to her residence in Helotes, Texas, for distribution in the San Antonio area. On November 12, 2012, McKinney and Cole were apprehended at the Eagle Pass Port of Entry, Bridge #2, while in possession of the crystal methamphetamine.
Testimony further revealed that the co-conspirators met at Landin’s residence in Helotes, where McKinney and Cole were given a cellular phone, cash, and instructions on how to make contact in Mexico with the source of the methamphetamine. Landin also instructed the two couriers to conceal the drugs on their bodies using tape. After retrieving the methamphetamine, Cole and McKinney became lost in Mexico. Landin assisted Cole and McKinney by providing them with directions back to the Port of Entry. Inspection at the port revealed two bundles of methamphetamine taped to Cole’s legs. The methamphetamine had a street value of approximately $100,000.
Cole and McKinney previously pleaded guilty to the conspiracy charge. On December 17, 2103, McKinney was sentenced to 151 months in federal prison to be followed by a five year supervised term of release. Cole, who remains in federal custody, awaits sentencing on November 16, 2015.
This investigation was conducted by Special Agents from Homeland Security Investigations (HSI), and U.S. Customs and Border Protection (CBP). The case was prosecuted by Assistant United States Attorneys Patrick Burke and Katherine Nielsen.
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Hartford Man Admits Armed Robbery of Windsor BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ODAIN J. JOHNSON, 22, of Hartford, pleaded guilty today in Hartford federal court to committing the armed robbery of the First Niagara Bank in Windsor in January.
According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men vaulted the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took $81,530 from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers. One of the masked men pointed a gun at a customer who entered the bank during the robbery, ordered him to the ground and told him not to look up. After exiting the bank, the masked men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
In pleading guilty, JOHNSON admitted that he participated in the bank robbery, and that he brandished a firearm during the offense.
JOHNSON was arrested on January 17, 2015, in Lewiston, Maine, and has been detained since his arrest.
JOHNSON pleaded guilty to one count of bank robbery. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 31, 2015, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
Granite City Man Pleads Guilty to Meth Distribution ChargeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Billy Joe Merchant, age 42, pled guilty on Thursday, May 28, 2015 to a one-count federal indictment charging him with Possession of Methamphetamine with Intent to Distribute.
Merchant’s sentencing hearing is scheduled for September 24, 2015 at 1:30 p.m. in U.S. District Court in East St. Louis, Illinois. Merchant faces a maximum possible sentence of no more than 20 years imprisonment.
At Merchant’s change of plea hearing on May 28, Merchant admitted that he had possessed 34 grams of methamphetamine (approximately 1¼ ounces) at a mobile home trailer park near Granite City, Illinois on February 6, 2015. Merchant also admitted that the methamphetamine seized from him had been packaged for sale in 22 individual plastic baggies, and that Merchant had intended to distribute this methamphetamine in the Granite City area.
Merchant’s arrest and conviction are part of an ongoing DEA investigation into methamphetamine trafficking in Granite City. To date, a dozen meth dealers have been convicted as a result of the police operation.
Merchant has been confined in federal custody since March 3, 2015, and he will remain in custody until his sentence hearing.
The investigation which resulted in Merchant’s arrest and conviction was conducted by the Granite City Police Department; the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI); and by the Drug Enforcement Administration (DEA).
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Four Men Charged with Distributing Heroin, Fentanyl and Vicodin, Resulting in Three DeathsRead the Press Release
Four men have been charged with distributing drugs that resulted in the overdose deaths of three people, U.S. Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Joseph P. Reagan of the U.S. Drug Enforcement Administration and Oakland County Sheriff Michael Bouchard. The charges are in response to the ongoing epidemic of heroin and prescription pill abuse in the United States and in southeast Michigan. Heroin overdose deaths in the United States have tripled from 2010 to 2013. Since January 1, more than 60 people have died by overdose of heroin and fentanyl in Wayne and Washtenaw counties. Fentanyl is a synthetic opioid pain medication that is 15 to 20 times more potent than heroin. The number of heroin overdose deaths in Oakland County doubled from 2013 to 2014. The men charged include: - Zachary R. Burdette, 29, of Ypsilanti, - Roy Edward Brownlee, 49, of Ypsilanti’ - Kenyatta Akili McConico, 36, of Detroit, and - Charlie Stevens, 24, of Beverly Hills. Burdette was charged in a criminal complaint with distributing a deadly mix of heroin and fentanyl to a 27 year old Ypsilanti Township man who died on April 5. The man died of a heroin/fentanyl overdose, and he was found by his mother in his home slumped over on his bed with a syringe in his hand. Burdette had supplied the man with a tenth of a gram of heroin laced with fentanyl. Brownlee was charged in a separate but related indictment. The indictment charged Brownlee with supplying the heroin/fentanyl mix to Burdette that was subsequently sold to the overdose victim. In addition, Brownlee is charged with possessing and supplying an assault rifle and a 9mm semi-automatic pistol. Another indictment from a separate investigation charged McConico with distributing heroin that resulted in the March 19overdose death of a 35-year-old woman from Redford Township. A third indictment charged Stevens with distributing Vicodin pills to an 18-year-old man from Franklin. The man died of an overdose from the Vicodin on June 25, 2011, when he was discovered in his home by his family. Burdette, Brownlee and McConico face up to life in prison and a $1 million fine because of their roles in the heroin overdose deaths. Stevens faces up to 15 years in prison and a $500,000 fine for distributing Vicodin that resulted in death. Indictments and complaints are only charges, and defendants are presumed innocent until proven guilty at trial. Sentences are determined by the judges assigned to the cases based on sentencing guidelines, relevant sentencing statutes and other factors. United States Attorney McQuade said, “We have made it a priority to prosecute the distribution of heroin resulting in death. Heroin is poison, and overdose deaths are foreseeable to the criminals who sell it. These charges send a strong message that heroin traffickers face severe consequences for the real harm that they inflict on our residents and our families.” DEA Special Agent in Charge Reagan said, “DEA will continue to focus our resources on the drug violators such as these, who prey on our communities.” "Due to the excellent police work and investigations that were conducted, these dealers are no longer afflicting harm on our communities," said Sheriff Michael J. Bouchard. "This is an excellent example of the great partnerships between the federal and local level that has resulted in getting these criminals off the streets, and can no longer contribute to the continuing heroin and opioid epidemic in Southeast Michigan." These cases were investigated by agents, officers, and investigators from the U.S. Drug Enforcement Administration, the Oakland County Sheriff’s Office, the Office of the Oakland County Medical Examiner, the Redford Township Police Department, and the Office of the Wayne County Medical Examiner. These cases are being prosecuted by Assistant United States Attorneys William Sauget, Kenneth Chadwell, and Andrea Hutting.Four El Reno Residents Convicted of Conspiracy in Fraudulent Vehicle Cash-Back Rebate SchemeRead the Press Release
Oklahoma City, Oklahoma – On Thursday, May 28, 2015, a jury returned guilty verdicts against ROBERT W. ARNOLD, 25, of El Reno, Oklahoma, on charges of conspiracy and wire fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Three co-defendants—RICHARD M. ARNOLD SR. (a/k/a/ “Rick Arnold”), 61, RICHARD M. ARNOLD II, (a/k/a/ “Ricky Arnold”), 29, and ROBYN R. ARNOLD, 56, all of El Reno—pled guilty to conspiracy before trial. All were charged with conspiring to defraud new car purchasers out of cash rebates based on false representations that a charitable trust would make all of the victims’ monthly car payments.
The evidence at trial showed that from May of 2013 through April of 2014, the defendants informed their acquaintances, family members, and friends that they could become beneficiaries of a program operated by a charitable trust designed to help working people acquire new cars. The defendants claimed that “CECU Trust” financed the program, which was also called the “United Auto Buyers Co-op Association.”
Rick Arnold, Ricky Arnold, and Robert Arnold met car purchasers interested in the program at various car dealerships and arranged for purchases on credit that would include cash rebates to the buyers from $4,000 to $12,000 per car. In some instances, defendants caused victims’ loan applications to include fraudulently inflated income. Defendants told the car buyers that the rebate money would have to be given to the defendants for deposit into CECU Trust, which would then pay the buyers’ car loans in their entirety.
After the car purchases were complete, one or more of the defendants met the car buyers in a public place, such as a coffee shop or a bank, to receive the proceeds of the cash-back finance transactions. That money was deposited into bank accounts controlled by Robyn Arnold. Much of the money was used for personal expenses. Defendants also asked buyers to sign powers of attorney as well as proposed agreements advising the buyers that the association’s success depended on the buyers referring new participants to the program.
When various lenders notified buyers of potential defaults, defendants either assured the buyers that the payments would be made or stated that the trust would be unable to make further payments unless the buyers recruited additional participants.
A federal grand jury indicted all four defendants on December 3, 2014. On March 24, 2015, Ricky Arnold pled guilty to conspiracy. Rick Arnold and Robyn Arnold pled guilty to conspiracy on May 11, 2015; Rick Arnold also entered a guilty plea to one count of wire fraud. A jury convicted Robert Arnold of conspiracy and wire fraud after hearing more than two days of testimony.
The maximum penalty for the convictions against Rick Arnold, Ricky Arnold, and Robyn Arnold is thirty years in prison, five years of supervised release, and a fine of $1,000,000. The maximum penalty for the convictions against Robert Arnold is twenty years in prison, three years of supervised release, and a fine of $250,000. All four defendants will be required to pay restitution to victims and to forfeit property up to the value of the proceeds of the offenses. Sentencings will take place in approximately 90 days.
Reference is made to court filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and the Public Protection Unit of the Oklahoma Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Kate Holey.
Former Worcester Paramedic Pleads Guilty to Tampering with Fentanyl VialsRead the Press Release
BOSTON – A former paramedic pleaded guilty in U.S. District Court in Worcester today to tampering with vials of Fentanyl, a Schedule II controlled substance.
Teresa Torres, 42, who moved from Worcester to Sebring, Fla. after the offense, pleaded guilty to tampering with a consumer product, specifically vials containing the Schedule II controlled substance Fentanyl after being indicted in September 2014. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept.11, 2015.
From November 2012 until February 2013, Torres worked as a paramedic for Vital Emergency Services in Worcester. Beginning around Nov. 19, 2012, and continuing through Jan. 26, 2013, Torres tampered with vials of Fentanyl by removing the narcotic from vials kept in the ambulances used by Vital Emergency Services and replacing it with another liquid. In total, Torres tampered with approximately 25 vials of Fentanyl. Fentanyl is commonly administered for pain relief. During the course of the plea hearing, the government alleged that Torres was initially suspended from her paramedic job after diverting morphine from ambulance supplies. The Fentanyl diversion was discovered after she had been suspended.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Jeffrey J. Ebersole, Acting Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Former Serra Nissan Sales Manager Sentenced to Two and Half Years in Prison for Fraud ConspiracyRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a former sales manager at Serra Nissan in Birmingham to two and a half years in prison for his role in a scheme at the car dealership to falsify auto loan documents, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Virginia Emerson Hopkins sentenced ABDUL ISLAM MUGHAL, 49, of Trussville, on two counts of fraud at the Nissan dealership. Mughal pleaded guilty in July 2014 to one count of conspiring with others, including Serra Nissan salesmen, general managers, sales managers and finance managers, to falsify loan documents in order to defraud customers and financial institutions in order to sell more cars. He also pleaded guilty to one count of bank fraud for submitting falsified loan documents to financial institutions, including Capital One Auto Finance, between January 2012 and October 2013.
The judge granted the government's motion for forfeiture in the case and set a July 2 hearing to determine the amount that must be forfeited, along with the amount of restitution Mughal must pay to victims. He must report to prison July 28.
"This defendant championed the use of predatory lending practices while he worked as a car dealership sales manager," Vance said. "He defrauded customers and the lenders that trusted the dealership to present truthful information during the financing process," she said. "Growing fraud and other deceptive practices in auto sales and financing are important issues affecting consumers, and my office is committed to working with law enforcement agencies and the Federal Trade Commission to prevent fraud during the auto lending process and to prosecute those who commit the crime."
"Financial fraud like Mr. Mughal engaged in undermines the trust we must have when making major financial decisions, like purchasing a vehicle, that carry serious consequences -- consequences that cost all of us, such as increased business costs, to say nothing of the harm to the victims themselves," Stanton said. "The sentence handed down today is appropriate given the many victims left in the wake of Mr. Mughal’s fraud.”
“Abdul Mughal and his co-conspirators orchestrated a scheme driven by deception and deceit. They defrauded financial institutions and deceived customers of Serra Nissan with the intent to increase profits and enrich themselves. Their criminal actions are unacceptable,” Hyman-Pillot said. “The sentencing of Mughal will serve as an example that Internal Revenue Service-Criminal Investigation and our law enforcement partners will work together to uncover similar schemes and recommend prosecution to the fullest extent of the law.”
According to Mughal's guilty plea, while he was the dealership's general sales manager, "there was a pervasive scheme throughout Serra Nissan ... that if a customer did not qualify for a car loan for some reason, the salesman, finance managers, sales managers, or GSM were to falsify information or documents that would ensure the customer was funded."
His plea agreement with the government listed ways that Mughal and others falsified loan documents including, but not limited to:
- Inflating the income information of prospective car buyers, a process participants sometimes referred to as “fluffing.”
- Creating or altering documents to submit to financial institutions that required proof of the prospective buyer's income or residency.
- Listing accessories not actually included on a vehicle so a financial institution would increase its loan amount, a process participants sometimes called “power booking.” Mughal and others had a financial incentive to power book a deal, because if the profit on a transaction were high enough, the dealership would pay the employees on the deal something above their normal commission.
- Presenting straw buyers, who could qualify for a loan, to financial institutions when the actual buyer could not qualify because of poor credit or insufficient income.
In his plea, Mughal acknowledged one incident in which he told a salesman that a specific sale “could not be funded until they created a ‘legal lie’ for the bank” that showed the buyer, identified as J.T., made $5,000 per month.
J.T. bought a vehicle from Serra Nissan on Oct. 16, 2012. J.T. submitted a bank statement to Serra Nissan showing an ending account balance of $11.03, but the loan application the dealership submitted to Capital One Auto Finance included a fraudulent bank statement showing J.T. had monthly deposits of $6,179, according to court records.
In a second vehicle purchase on Oct. 16, 2012, a customer identified as W.K. submitted only a Social Security letter as proof of income. Serra Nissan, however, submitted a loan application to Capital One on W.K.'s behalf that also included a fraudulent bank statement, a claim of $2,973 in monthly Veterans Administration benefits -- although W.K. is not a veteran -- and false information that W.K. was retired from the State of Alabama and made $4,500 a month, according to court records.
The FBI and IRS-CI investigated the case, which Assistant U.S. Attorney Amanda Schlager Wick and Robin Beardsley Mark are prosecuting.
Former Saints Player Pleads Guilty to Drug Distribution ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite, announced that DARREN SHARPER, age 40, formerly of New Orleans, pled guilty today to Conspiracy to Distribute Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape. The maximum punishments for these offenses are as follows:
COUNT
CHARGE
MAXIMUM PENALTIES
4
21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
5
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
6
21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence
20 Years, $250,000 Fine, NLT 1 Year Supervised Release.
SHARPER is a former member of the New Orleans Saints and is presently in custody. He has previously pled guilty to similar charges in Los Angeles and Phoenix. He is also charged in Orleans Parish District Court. His plea today was part of a global resolution of the charges against him. In the factual basis filed during the guilty pleas, SHARPER admitted that he and others distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated. He also admitted that he conspired with other persons in committing these offenses. U.S. District Judge Jane Triche Milazzo set sentencing in this matter for August 20, 2015 at 10:00 a.m.
Former St Bernard Sheriff’s Deputy Brandon Licciardi is awaiting trial on the same charges as well as charges of Witness Tampering and Impeding an Official Proceeding.
U.S. Attorney Polite thanked the victims for their courage and willingness to come forward.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked District Attorney Leon Cannizzaro and Orleans Parish District Attorney’s Office for their invaluable assistance. The Los Angeles County District Attorney’s Office also assisted in this case. Assistant United States Attorneys Mark A. Miller and Michael E. McMahon are in charge of the prosecution.
Former FedEx Employee Pleads Guilty to Defrauding CorporationRead the Press Release
Memphis, TN - A former government sales representative at FedEx Corporation has pled guilty to defrauding the company of nearly half-a-million dollars during a two-year scheme.
Between 2009 and 2011, Anthony Caruso, 48, used his New Jersey-based shipping and logistics company, CSA Group, to execute a re-billing fraud. Re-billing fraud occurs when a package shipped under a particular FedEx account number is transferred to a different account that may have more favorable terms and conditions, according to the indictment.
CSA Group had negotiated a discount shipping rate with FedEx — a benefit the corporation typically provided to customers that shipped large volumes of materials. Instead of using the CSA Group account rate to provide shipping services, Caruso would re-bill his customers’ packages. He was able to execute his scheme by illegally moving the packages from his account to accounts that belonged to the U.S. Department of Defense. Like CSA Group, the Department of Defense had a FedEx account. But due to it shipping at a significantly higher volume, the Department of Defense, along with the federal government sub-accounts linked to it, received a larger discount for shipments than CSA Group.
Caruso gave his customers a shipping discount through CSA Group, but then re-billed their packages to dormant Department of Defense sub-accounts to take advantage of the larger discount rates. Caruso also changed the contact information for the government accounts, so that all invoices would be sent to him instead of the Department of Defense.
By doing so, he was able to keep the financial difference between the discount he offered his customers and the government discount he unlawfully accessed. The government estimated the loss to FedEx at between $200,000 and $400,000.
Wednesday afternoon, Caruso pled guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of access device fraud. He faces a maximum sentence of up to 20 years in prison on each of the wire fraud counts and 10 years on the access device fraud count. Caruso also faces fines of up to $750,000 and a three-year term of supervised release.
Caruso is scheduled to be sentenced Friday, August 28, 2015, at 9:30am before Judge Sheryl H. Lipman.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Deb Ireland is representing the government in this case.
Former Employee of the U.S. Postal Service and Co-Defendant Sentenced for Identity Theft Tax Refund Fraud SchemeRead the Press Release
Two individuals, including a former employee of the U.S. Postal Service, have been sentenced for their participation in an identity theft tax refund fraud scheme. Shawn Hawes, 34, of Miami, was sentenced yesterday to 62 months in prison, followed by three years of supervised release. Kelly Urseles Roberts, 39, of Miami, was sentenced on May 19, 2015 to 28 months in prison, followed by three years of supervised release.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Both defendants previously pled guilty to one count of aggravated identity theft. In addition, Hawes pled guilty to one count of possession of fifteen or more unauthorized access devices and Roberts pled guilty to one count of theft of government property.
According to court documents, law enforcement executed a search warrant at a storage unit used by Hawes. During a search of the unit, law enforcement found, among other things, notebooks containing handwritten personal identifying information, including the social security numbers of approximately 600 individuals. In addition, law enforcement found equipment capable of creating false identification documents and credit/debit cards, and actual false identification documents and credit/debit cards. Inside one of the notebooks was the social security number of an individual who had a tax return fraudulently filed on his behalf in 2014. The refund associated with this return had been direct deposited into Hawes’s bank account. This individual did not authorize Hawes to possess or use his personally identifiable information.
Defendant Hawes was arrested for, among other things, possession of stolen tax refund checks issued by the United States Treasury Department. Following Hawes’s arrest, law enforcement began focusing on who provided the treasury checks to Hawes. Law enforcement suspected that this source was a mail carrier because Hawes had referred to the source as the “postman.” Ultimately, Roberts, who at that time was an employee of the U.S. Postal Service, met with a source on three separate occasions and sold him a total of nine treasury checks.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI, USPIS, and United States Postal Service Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Former Countryside Police Chief, Kankakee County Sheriff’s Deputy Sentenced to More Than Two Years in Prison for Mail Fraud, Money Laundering, Tax EvasionRead the Press Release
Peoria, Ill. - Chief U.S. District Judge James E. Shadid today sentenced Timothy J. Swanson, former Countryside Chief of Police and deputy with the Kankakee County Sheriff’s Office, to prison. Swanson, 56, of Bourbonnais, Ill., was ordered to serve 27 months in federal prison, to be followed by a three-year term of supervised release. Swanson was ordered to pay restitution to victims in the amount of $229,128 as well as $55,140 in back taxes. Swanson was ordered to report on Aug. 11, 2015, to the federal Bureau of Prisons to begin serving his sentence.
On Jan. 27, 2015, Swanson entered open pleas of guilty to all seven charged counts in the indictment: two counts of mail fraud, one count of money laundering, two counts of tax evasion, and two counts of filing a false tax return. During the change of plea proceeding, the government provided the following factual basis to the Court in support of the defendant’s open plea of guilty:
Swanson was employed as the City of Countryside, Ill., Chief of Police in 2005 and 2006. After leaving the police department, in 2009, Swanson joined the Kankakee County Sheriff’s Office. During 2005 and 2006, Swanson obtained the use of two U.S. Department of Defense helicopters to be used for law enforcement activities. To obtain funds to operate the helicopters, Swanson established the Illinois Regional Air Support Service (IRASS) as a tax-exempt organization. No officer or director was to profit from its operation.
From at least 2005 through 2012, Swanson solicited police departments, corporations and individuals to make contributions to IRASS. From 2006 to 2010, Swanson used a credit card in the name of IRASS to make personal purchases and used money donated or awarded to IRASS to make payments on the credit card. Swanson also used this money to purchase Rotors & Wings, LLC., a business that he operated.
The charges resulted from an investigation by the U.S. Department of Defense, Defense Criminal Investigative Service; the Federal Deposit Insurance Corporation Office of Inspector General; and Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Florida Man Sentenced for Telemarketing FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Nathan Christian, 31, of Boynton Beach, FL, was sentenced in the United States District Court in East St. Louis, Illinois on his conviction for conspiracy to commit mail and wire fraud in connection with telemarketing, in violation of Title 18, United States Code, Section 1349. Christian was sentenced to a year and a day in prison, to be followed by one year of supervised release. The court also ordered Christian to pay a $1,000 fine and a $100 special assessment.
Christian was a "Closer" at C&G Marketing Associates, LLC, also known as Premier Timeshare Solutions (PTS). Closers are telemarketers who "close the deals" with the victims. The PTS closers earned commissions that were based upon the volume of sales made.
PTS operated out of offices located in southern Florida. The company targeted owners of timeshares throughout the United States and Canada who wished to sell their timeshares. By falsely representing that PTS had located buyers who were interested in purchasing the victims’ timeshares, the closers convinced the victims to pay upfront fees of approximately $2,000 to PTS. During the lifespan of the scam, PTS defrauded over 7,000 people out of approximately $14.5 million. Victims were located throughout the United States and Canada.
This prosecution is one of more than 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. Both the Florida Attorney General’s Office and the Florida Department of Agriculture have assisted in the investigation. The case is being prosecuted by Assistant United States Attorneys Scott Verseman and Michael Hallock.