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Wednesday 27 May 2015
Decatur Woman, Melissa Sue Stamp, Sentenced on Bankruptcy FraudRead the Press Release
Former Apple Queen Pageant Winner hid hundreds of thousands of dollars.
GRAND RAPIDS, MICHIGAN — Melissa Sue Stamp, of Decatur, Michigan, was sentenced for bankruptcy fraud today by U.S. District Court Judge Gordon J. Quist. U.S. Attorney Patrick Miles was joined in the announcement by Special Agent in Charge Jarod J. Koopman, IRS Criminal Investigation, Special Agent in Charge Jeffrey Frost, U.S. Secret Service and Special Agent in Charge Anthony Mohatt, U.S. Department of Agriculture, Office of Inspector General.
Melissa Stamp, a former Apple Queen Pageant winner, was sentenced to serve twenty months in prison followed by twenty months of supervised release and $184,500 in restitution. As part her plea agreement, Melissa Stamp agreed to forfeit $151,915 that represents the proceeds of the bankruptcy fraud.
According to court records, in 2012, Michael David Stamp owned Stamp Farms, LLC and Northstar Grain LLC, two agri-businesses located in Decatur, Michigan. In late 2011, Michael David Stamp secured financing of more than $60 Million from Wells Fargo Bank for these businesses. The financing was secured by agreements and mortgages given by the companies as well as by personal guarantees of Michael David Stamp and Melissa Stamp. By the fall of 2012, the companies had defaulted on the loans and in November 2012, filed bankruptcy. Michael Stamp filed personal bankruptcy on the same day.
At the time of her guilty plea, Melissa Stamp admitted giving $75,000 to her brother and approximately $90,000 to her father to conceal the money from a bankruptcy case that was filed one month later by her husband, Michael David Stamp. Ms. Stamp also admitted concealing $50,000 of U.S. currency in a safe in her home. None of this money was disclosed to the bankruptcy court.
"Bankruptcy can be a haven for those in need of its protection. Individuals that abuse the bankruptcy process by concealing assets threaten the integrity of the system. The IRS will continue to work with the U.S. Attorney’s Office and our other law enforcement partners to ensure the public’s continued confidence in the system," said Jarod J. Koopman, Special Agent in Charge, IRS Criminal Investigation.
"The United States urges anyone holding grains, crops, cash, farm equipment or other assets related to the Stamp Farms or Michael Stamp bankruptcy cases to contact the U.S. Attorney’s Office at 616-808-2144. Persons who knowingly conceal assets belonging to a bankruptcy case are subject to criminal prosecution. Persons who voluntarily surrender concealed bankruptcy assets may avoid criminal charges," said Assistant U.S. Attorney Michael A. MacDonald.
This case was investigated by the U.S. Bankruptcy Trustee’s Office, the IRS Criminal Investigation, U.S. Secret Service and the USDA Office of Inspector General. Assistant U.S. Attorney Michael A. MacDonald is prosecuting the case.
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Dallas Man Admits Role in March 2014 Heroin Overdose Death of Dallas TeenagerRead the Press Release
DALLAS — A 28-year-old Dallas man appeared in federal court yesterday before U.S. Magistrate Judge David L. Horan and pleaded guilty to a felony drug offense stemming from his role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Hannah Lashley, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Glen William Brunton, 28, pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin. He faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Brunton is the second of four defendants charged in the case to plead guilty. In March, Cierra Allyn Rounds, 27, pleaded guilty to the same offense. Brunton is scheduled to be sentenced by U.S. District Judge Sam A. Lindsay on October 5, 2015; Rounds is set for sentencing on September 8, 2015. Both remain in federal custody.
“The statistics are staggering – in 2013 more than 680,000 Americans used heroin; more than 8,200 Americans died of a heroin overdose; and more than 160,000 Americans tried heroin for the first time, including more than 20,000 children between ages 12 and 17,” said Acting U.S. Attorney Parker. “That’s why, in an effort to develop a coordinated response to this crisis, the Department of Justice created the Attorney General’s Heroin Task Force to bring together experts from law enforcement, medicine, public health, and education to create a strategic plan outlining national, regional and local efforts to reduce both the supply and demand for heroin,” Parker continued.
The two other defendants charged in the case, Kathryn Grace Dirks, a/k/a “Kat,” 25, and Jimison Erik Coleman, a/k/a “Jaymo,” 36, are each charged in a superseding indictment with one count of conspiracy to possess with the intent to distribute heroin; one count of possession of heroin with the intent to distribute, the use of said substance resulting in the death and serious bodily injury of Rian Hannah Lashley; and one count of distribution of heroin, the use of said substance resulting in the death and serious bodily injury of Rian Hannah Lashley. Both Dirks and Coleman were arrested in California and remain in federal custody. Their trial date has not yet been set.
According to documents filed in the case, during the early morning hours of March 25, 2014, Brunton and Rounds traveled from a residence in Dallas to an IHOP restaurant in Plano, Texas. After arriving at the restaurant, Brunton and Rounds joined co-defendants Dirks and Coleman (a local heroin distributor who was involved with Dirks) and Lashley at a booth, and the group ate breakfast together. While sitting in the booth, Rounds and the others became aware that Lashley possessed a large sum of money, approximately $3,000, a cell phone and an iPad.
Brunton and Rounds admitted that later that morning, in the IHOP parking lot, Coleman gave Brunton five baggies of “China White” heroin and directed him to deliver it to Dirks, who was with Lashley and Rounds in Lashley’s vehicle in a nearby parking lot. At Coleman’s direction, Brunton distributed the heroin to Dirks in exchange for $100 cash that he subsequently turned over to Coleman. After acquiring the heroin, Rounds, Dirks and Lashley left the parking lot in Lashley’s vehicle and traveled to a residence in Dallas where Rounds was living. Brunton and Coleman departed the IHOP’s parking lot in a separate vehicle.
According to Brunton’s filed plea documents, the parties stipulate that Brunton’s role in the offense is minor, as defined in the U.S. Sentencing Guidelines.
While traveling to the Dallas residence, Rounds used Lashley's cell phone to send a series of text messages to Coleman, including their proximity to the residence and a text message advising Coleman that “…I figured ud want me on this money.” Rounds admitted that when she sent this message to Coleman she was notifying him that she understood that she was to attempt to steal the money Lashley possessed and turn it over to him. As Rounds and the others arrived at the Dallas residence, Rounds sent another text message to Coleman asking if she should take Lashley and Dirks inside. Coleman responded with a text message that read, “Don’t leave don’t let them leave.” Rounds understood the message to mean to take Lashley into the residence and to keep her there.
Once inside the residence, Rounds and Dirks, aided and abetted by each other, and at Lashley’s request, took possession of the heroin that was originally supplied by Coleman and used a syringe to inject heroin into Lashley three times. Shortly before those heroin injections were administered, Rounds sent a text message to Coleman stating “…ima bout to shoot her up for her first time.” Rounds admitted that she hoped the heroin injection would incapacitate Lashley in such a way to allow Rounds to steal the money that Lashley possessed.
According to an affidavit in Coleman’s case, Dirks turned over a portion or all of Lashley’s money to Coleman later that evening at a hotel in Dallas.
Later that afternoon, Lashley began showing signs of distress, and Rounds and Dirks placed Lashley in a bathtub of ice water in an attempt to reverse the effects of the heroin. After Lashley was removed from the tub, Lashley was placed on a couch and appeared to go to sleep.
Lashley died later that evening as a direct result of the heroin that was administered to her. An autopsy performed at the Southwestern Institute of Forensic Sciences on March 26, 2014, concluded that Lashley died as a result of the toxic effects of heroin.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty.
The Dallas Police Department, the FBI, the U.S. Marshals Service and the Buena Park Police Department are investigating. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy are prosecuting.
Columbia Man Sentenced to 12.5 Years on Federal Drug ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Raheem Majeed, a/k/a “Mitch,” age 30, of Columbia, South Carolina was sentenced yesterday to 151 months (12.5 years) imprisonment along with 8 years of supervised release to follow. Majeed plead guilty in February to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Senior United States District Judge Cameron McGowan Currie imposed the sentence.
Evidence presented at the change of plea hearing established that beginning at least in or around June 2006, and continuing to up and including October 2009, Majeed and others conspired to possess with intent to distribute and to distribute cocaine and crack cocaine in the Columbia, South Carolina area. The indictment stemmed from a large investigation by the Federal Bureau of Investigation (FBI) in which over 120 defendants were charged following a series of court-authorized, FBI-monitored wiretaps over dozens of telephones in the Columbia area. The evidence showed that Majeed distributed over 500 grams of cocaine and over 28 grams of crack cocaine while a member of this conspiracy. Majeed was charged, along with a number of co-defendants, in 2011 and remained a fugitive until his arrest in 2014. Majeed has prior state convictions for robbery with a deadly weapon, possession of marijuana 2nd offense, and possession with intent to distribute marijuana.
The case was investigated by the FBI Columbia Violent Gang Task Force. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Cincinnati Man Sentenced to 120 Months for Heroin Distribution in CovingtonRead the Press Release
COVINGTON — A federal judge sentenced a Cincinnati man, who has a lengthy criminal history, to 120 months in federal prison for distributing over 500 grams of heroin in Covington, Ky.
Willie A. Robinson, 50, of Cincinnati, admitted to selling over 250 grams of heroin on three occasions in July 2014 and to possessing over 300 grams of heroin, which he intended to sell when arrested on September 2, 2014.
Robinson was indicted on December 11, 2014 and entered a guilty plea on February 24, 2015.
Robinson was previously convicted of felony marijuana trafficking in 2002 and federal fraud offenses in 2007.
Under federal law, Robinson must serve at least 85 percent of his prison sentence, and he will be on supervised release for 10 years following his prison term.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Joseph P. Reagan, Special Agent in Charge, Detroit Field Division, Drug Enforcement Administration, jointly made the announcement today.
The investigation was conducted by the Drug Enforcement Administration and the Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the federal government.
Chicago Area Psychologist Pleads in Nationwide Medicare Fraud Strike Force TakedownRead the Press Release
CHICAGO — An area psychologist pled guilty today to engaging in a health care fraud scheme to defraud the Medicare program, federal law enforcement officials announced today. SHARON A. RINALDI, a licensed psychologist, was charged in a five-count indictment returned in October 2012 with defrauding Medicare by submitting thousands of false claims for providing psychotherapy services to Medicare beneficiaries residing in skilled nursing homes in the Chicago area. Rinaldi submitted false claims to Medicare seeking a total reimbursement of approximately $1.1 million and as a result of those false claims, Medicare paid Rinaldi at least $447,155 in funds to which she was not entitled. Rinaldi, 60, of Inverness, pled to one count of health care fraud before U.S. District Court Judge Robert M. Dow. Rinaldi also has agreed to forfeit of more than $100,000 that was seized from her home and a personal bank account in September 2012.
According to the plea, between December 2008 and August 2012, Rinaldi claimed that she provided services to Medicare beneficiaries who were deceased at the time; that she provided services on certain dates when she was in other locations, such as Las Vegas and San Diego; and she inflated the number of hours that she had provided services on particular dates, often exceeding 24 hours in a single day.
Health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. Upon a conviction, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The plea was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation Chicago; and ; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG.
The government is represented by Assistant U.S. Attorney Paul Tzur.
Plea Agreement
Chicago Area Men Charged with Altering ATM Settings to Disperse More Cash Than ReportedRead the Press Release
CHICAGO ― Two men were indicted on April 29, 2015, by a federal grand jury in an indictment unsealed today for allegedly intending to defraud ATMs in and around Chicago by altering the settings of the ATMs so that the actual amounts disbursed far exceeded the withdrawal requests as well as the balance of the accounts from which the withdrawal requests were made. The funds that were fraudulently obtained totaled approximately $185,000. The defendants, Trent Ratliff and Fredrick Lee, were charged in a 10-count indictment. Both defendants were charged with one count of conspiracy to commit computer access fraud as well as separate counts of computer access fraud, corresponding to specific ATM withdrawals.
The charges were announced 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.
Ratfliff, 52, of Chicago, and Lee, 60, of Chicago, were arraigned today before the Honorable Gary Feinerman and were released on a $4,500 bond. Both defendants have a status date on August 24, 2015. The indictment seeks forfeiture of approximately $185,000. According to the indictment, Ratliff and Lee, using debit cards that were registered in their own names from various banks or using debit cards that were registered in the names of several other individuals, deposited, or caused to be deposited, nominal sums of money on these debit cards. Between September 2010 and January 2011, using these debit cards, Ratliff and Lee accessed the management function of various ATMs in and around Chicago, without authorization from the owners of the ATMs, and altered the settings so that the ATMs falsely recorded, incorrectly reported, and transmitted debit amounts that exceeded the balance of the debit card accounts. In many cases, Ratliff and Lee altered the ATM settings so that account debits were recorded and reported by the ATM as one-twentieth of the actual funds that the ATM disbursed. In other words, a request for $100 from an altered ATM resulted in the disbursement of $2,000. Following the withdrawal of money from these ATMs, Ratliff and Lee again accessed the management function of the ATMs and changed the settings back so that subsequent account debits from that ATM were recorded and reported as being equal to the actual funds disbursed.
Each count of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorney Naana Frimpong.
The public is reminded that an indictment contains only charges 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.
Indictment
Checotah Man Sentenced to 281 Months, $1.4 Million for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MICHAEL A. METZKER, a/k/a Lurch, age 37, of Checotah, Oklahoma was sentenced to 281 months imprisonment, followed by 5 years of supervised release for Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Grams Or More Of Methamphetamine, in violation of Title 21, United States Code, Sections 846, 8411(a)(1) and 841(b)(1)(A). A money judgment totaling $1,400,000.00 was also assessed.
METZKER was indicted in June 2014, along with MICHAEL W. METZKER, a/k/a Chic, age 59, of Checotah, Oklahoma, LACEY RENEE PARK, age 29, of Checotah, Oklahoma, DEREK PARK, age 31, of Checotah, Oklahoma, MARGARET CASEY, age 45, of Checotah, Oklahoma, SHAWNA VANZANT, age 33, of Henryetta, Oklahoma, JACKIE DALE BRUMLEY, age 44, of Noble, Oklahoma, CORNELL TYLEIZ HARVEY, age 29, of Oklahoma City, Oklahoma, SCOTT WESLEY DUNCAN, age 38, of Oklahoma City, Oklahoma, SUNNY ANN MARTINEK, age 38, of Norman, Oklahoma and STEVEN D. CARR, age 43, formerly of Checotah, Oklahoma. All have previously pled guilty and are awaiting sentencing.
The Indictment alleged that from in or about April 2003 to on or about April 15, 2014, within the Eastern District of Oklahoma and elsewhere, the defendants, knowingly conspired to possess with the intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
Michael A. Metzker, a member of the Universal Aryan Brotherhood (UAB), was incarcerated in the Oklahoma Department of Corrections from December 24, 2009, until January 8, 2014. Beginning in or before April 2013, up to an including January 8, 2014, Michael A. Metzker utilized cellular telephones, illegally smuggled into the prison, to coordinate the acquisition and distribution of methamphetamine in Eastern Oklahoma. Upon release from incarceration up to and including April 14, 2014, Michael A. Metzker and his co-conspirators continued to acquire and distribute methamphetamine within Eastern Oklahoma.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Cedar Crest Man Sentenced to Federal Prison for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Elliot Sanchez, 46, of Cedar Crest, N.M., was sentenced today in federal court in Albuquerque, N.M., to 34 months in prison followed by three years of supervised release for violating the federal firearms laws.
Sanchez was arrested on June 17, 2014, on an indictment charging him with being a felon in possession of a firearm and ammunition on Feb. 1, 2014, in Bernalillo County, N.M.
On Feb. 27, 2015, Sanchez pled guilty to the indictment and admitted that on Feb. 1, 2014 he possessed a .45 caliber pistol and .45 caliber ammunition. Sanchez admitted that at the time he was not supposed to be in possession of firearms or ammunition because he previously had been convicted of a felony.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case.
Car Dealer Sentenced for Money LaunderingRead 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 Jerry Robbins, 45, of Cheektowaga, NY, who was convicted following a jury trial of money laundering and failure to report cash transactions of $10,000 or more, was sentenced to 63 months in prison by U.S. District Court Judge Thomas J. McAvoy.
Assistant U.S. Attorneys Joel L. Violanti and Edward H. White, who handled the prosecution of the case, stated that Robbins, owner of Finish Line Auto on Bailey Avenue in Buffalo, helped drug dealers launder proceeds of their illicit business by purchasing high end used cars. During these sales, the drug dealers would pay the defendant cash for cars ranging in price from $10,500 to $45,000. Robbins used the name of another person in sales and title paperwork to disguise the true purchaser and source of the money.
In addition, in an effort to conceal the amount of money received for the sale of the car, Robbins listed that only a small deposit was received from the third party nominee, when, in fact, the drug dealers had paid cash in full for the car. For each of these types of transactions, Robbins also failed to file the proper forms with the Internal Revenue Service indicating the receipt of over $10,000 cash for the sale of the car, as required by law.The sentencing is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Federal Bureau of Investigation, and the New York State Department of Motor Vehicles, under the direction of Commissioner Barbara J. Fiala.
California Woman Sentenced for Wire Fraud and Aggravated Identity Theft for Retail Fraud SchemeRead the Press Release
BOISE – Arleen Cifuentes, 32, of Riverside, California, was sentenced to 71 months in federal prison for wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Cifuentes to serve three years of supervised release, to pay $107,538.19 in restitution, and to forfeit $26,777.13 in cash proceeds of the charged offenses. Cifuentes pleaded guilty on January 27, 2015.
According to the plea agreement, Cifuentes engaged in a retail scheme between July 2013 and July 2014, whereby she defrauded retail stores by applying for, and obtaining, credit accounts in the identities of unknowing third party victims. Cifuentes then used the credit accounts to fraudulently purchase merchandise and gift cards. Cifuentes admitted to obtaining personal identifying information from a third party, running a credit report on the potential victims to determine their suitability for credit accounts, and then obtaining false California drivers' licenses in the victim's identity containing photos of Cifuentes or her co-defendants. Cifuentes admitted that she and her co-defendants executed the scheme on at least fifteen occasions in the District of Idaho. Cifuentes and co-defendant Rocio Contreras-Loya were arrested shortly after executing the scheme at the Boise Town Square Mall on July 24, 2014.
Co-defendant Contreras-Loya was sentenced by Chief U.S. District Judge B. Lynn Winmill on April 27, 2015, to 24 months in prison for one count of wire fraud and one count of aggravated identity theft. Co-defendant Ivan Fonseca remains a fugitive.
The case was investigated by the United States Secret Service and the Boise Police Department.
California Supplier of Oxycodone and Boise Heroin and Oxycodone Dealer Sentenced in Federal CourtRead the Press Release
BOISE – Ajellon Dedeaux, 27, of Rancho Cordova, California, was sentenced yesterday to 144 months in federal prison for distributing tens of thousands of oxycodone pills to Boise in a large scale drug trafficking conspiracy, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Dedeaux to pay a $1000 fine, serve five years of supervised release, and to forfeit $1,750,000 in drug proceeds. At his sentencing hearing, Judge Lodge determined that Dedeaux was a manager and supervisor of an extensive criminal organization and that he used violence against others during the conspiracy. This morning, Judge Lodge sentenced Andrew Colwell, 24, of Boise, Idaho, to 30 months in prison, followed by three years of supervised release, and to pay a $1,000 fine. Judge Lodge also ordered Colwell to forfeit $440,000 in drug proceeds. Dedeaux and Colwell are the latest members of a large scale oxycodone and heroin distribution ring to be sentenced to federal prison.
Others who have been sentenced are:
•Tyler Goodwin, 28, of Shelton, Washington, was sentenced on November 17, 2014, to 10 months in prison followed by three years of supervised release for distributing oxycodone. He was also ordered to forfeit $3,000 in cash proceeds.
•Jordan Grainger, 24, of Meridian, Idaho, was sentenced on November 24, 2014, to 48 months in prison followed by three years of supervised release for conspiracy to distribute oxycodone and heroin. He was also ordered to forfeit $100,000 in cash proceeds.
•Kevin Daniels, 19, of Boise, Idaho, was sentenced on November 25, 2014, to three years of probation for distributing oxycodone. He was also ordered to forfeit $7,500 in cash proceeds.
•Ellen McDaniel, 44, of Boise, Idaho, was sentenced on November 25, 2014, to 30 months in prison followed by three years of supervised release, and 80 hours of community service for conspiracy to distribute oxycodone. She was also ordered to forfeit $20,000 in cash proceeds.
•Jeffery Manchester Jr., 28, of Renton, Washington, was sentenced on December 18, 2014, to 37 months in prison followed by three years of supervised release, and 100 hours of community service for conspiracy to distribute oxycodone and heroin. He was also ordered to forfeit $32,000 in cash proceeds.
•Jared Hicks, 22, of Caldwell, Idaho, was sentenced on January 13, 2015, to 18 months in prison followed by three years of supervise release, and 100 hours of community service for conspiracy to distribute oxycodone. He was also ordered to forfeit $40,000 in cash proceeds.
•Kekai Wachi, 20, of Boise, Idaho, was sentenced on January 13, 2015, to 21 months in prison followed by three years of supervised release, and 100 hours of community service for conspiracy to distribute oxycodone. She was also ordered to forfeit $60,000 in cash proceeds.
•Christopher Deleongurro Snyder, 24, of Boise, Idaho, was sentenced on January 14, 2015, to 87 months in prison followed by five years of supervised release for conspiracy to distribute oxycodone. He was also ordered to forfeit $1,000,000 in cash proceeds.
•Jordan Baptista, 19, of Boise, Idaho was sentenced on March 9, 2015, to three years of probation. He was also ordered to forfeit $75,000 in cash proceeds.
•Travis Fraser, 19, of Boise, Idaho, was sentenced on April 6, 2015, to twelve months in prison for conspiracy to distribute oxycodone and heroin, followed by three years of supervised release. He was also ordered to forfeit $40,000 in cash proceeds.
• James Acarregui, 29, of Boise, Idaho, was sentenced on April 6, 2015, to three years in prison for conspiracy to distribute oxycodone, followed by five years of supervised release. He was also ordered to forfeit $125,000 in cash proceeds.
One remaining defendant, Austin Serb, 20, of Boise, Idaho, pleaded guilty on February 13, 2015, and is awaiting sentencing on one count of conspiracy to distribute oxycodone and heroin.
“Prescription drug abuse is a growing and significant community health problem,” said Olson. “Where individuals choose to unlawfully distribute prescription medications and other illegal drugs, we will work closely with all of our law enforcement partners to investigate, prosecute and convict those responsible.”
The case was initiated and investigated by the Boise Police Department, and the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
California Man Sentenced in Missoula to 7 Years for Online Child Pornography CrimeRead the Press Release
MISSOULA – Richard Pitts, 27, of Cathedral City, California, was sentenced today to seven years in federal prison, followed by 15 years of supervised release, for conspiracy to distribute child pornography. Pitts was also required to forfeit his computer and hard drive. Chief U.S. District Court Judge Dana Christensen sentenced Pitts following a January 27, 2015, change of plea hearing, in which Pitts pleaded guilty to the offense.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have shown that Pitts became a member of an invitation-only online bulletin board referred to as Dark Moon. Pitts distributed images of child pornography while on Dark Moon in 2012. The Dark Moon bulletin board allowed members to advertise and exchange images of child pornography. The bulletin board was created on or about September 28, 2011.
Eight defendants have been indicted who were involved in the Dark Moon Bulletin Board. This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Assistant United States Attorney Cyndee Peterson prosecuted this case along with Maureen Cain, of the U.S. Department of Justice Child Exploitation & Obscenity Section. Because there is no parole in the federal system, Pitts will have to serve at least 85% of his sentence before he is released from prison.
Burnet County Man Sentenced to Federal Prison on Firearms and Drug Trafficking ChargesRead the Press Release
In Austin yesterday, 44-year-old Bertram, TX, resident Jimmy Don Hardin was sentenced to a total of 360-months in federal prison on firearms and drug trafficking charges announced Acting United States Attorney Richard L. Durbin, Jr. and Texas Department of Public Safety Director Steve McCraw.
United States District Judge Lee Yeakel sentenced Hardin to 300-months imprisonment on conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. Hardin also received two 120-month sentences (to run concurrent with the 300-month sentence) on charges of possession of a stolen firearm and possession of a firearm by a felon. In addition, Judge Yeakel sentenced Hardin to 60-months imprisonment on possession of a firearm in furtherance of a drug crime to run consecutive to the other sentences.
In February, a jury convicted Hardin of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, possession of a firearm during a drug trafficking crime, possession of a stolen firearm and possession of a firearm by a convicted felon. Evidence presented during trial revealed that from May 2013 to December 2013, Hardin conspired with others to distribute methamphetamine throughout Burnet, Llano, Lampasas, Travis and Williamson counties. Authorities arrested Hardin on December 4, 2013, during the execution of a search warrant at his residence. At the time, Hardin was in possession of a stolen .45 caliber pistol as well as nine other firearms. Hardin’s criminal history revealed multiple convictions for manufacture of methamphetamine in Burnet County, TX.
Two co-defendants – 57-year-old Guillermo Naranjo Reyna, an illegal alien residing in Austin, and 60-year-old Nebes Montemayor of Austin – pleaded guilty to the drug conspiracy charge prior to trial. On March 10, 2015, Judge Yeakel sentenced Reyna to five years imprisonment followed by three years of supervised release. Montemayor is scheduled to be sentenced on August 7, 2015.
This case was investigated by the Texas Department of Public Safety, Burnet County Sheriff’s Office, Burnet County District Attorney’s Office, Llano County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, Austin Police Department, and the Cedar Park Police Department together with the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Doug Gardner and Matt Harding prosecuted this case on behalf of the Government.
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Broussard man pleads guilty to attempting to illegally ship guns, ammunition to LebanonRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Broussard man pleaded guilty to trying to illegally ship firearms, ammunition and other military grade items to Lebanon.
Joe Ali Youssef, 54, of Broussard, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of delivery of firearms to common carrier for interstate and foreign shipment without notification. According to evidence presented at the guilty plea, U.S. Customs and Border Protection officers conducted a random examination of two containers on April 17, 2014. Upon further inspection, agents found four pistols, two rifles, a shotgun, more than 8,000 rounds of various caliber ammunition, body armor, military items and other firearms accessories hidden inside secret compartments within household furniture. Records showed that the containers were to be shipped to an address near Beirut, Lebanon. Youssef is a naturalized citizen of the United States, originally born in Beirut, Lebanon. Youssef had an airline ticket booked to travel around the time the shipment was scheduled to arrive in Lebanon. Youssef provided the shipping company with a detailed list of the contents of the containers to be shipped, but the list did not include the hidden firearms, ammo and military items. The containers were set to export from the port in Houston, Texas, and the shipping company never received notification that the shipment contained firearms, ammunition and military items. Agents searched Youssef’s Broussard home and found more firearms and ammunition as well as records between himself and the shipping company.
Youssef faces up to five years in prison, three years supervised release, a $250,000 fine and forfeiture of the items seized during the investigation. A sentencing date was not set.
U.S. Customs and Border Protection, Homeland Security Investigations, FBI and ATF conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Bridgeport Man Sentenced to 5 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MOYAN FORBES, 23, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin and crack cocaine 24-hours a day, seven days a week. FORBES supplied Hanks with cocaine, which Hanks “cooked” into crack.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition. One of the firearms was an assault-type rifle and four of the firearms were stolen.
FORBES was arrested on December 5, 2013. On that date, a search of his residence revealed a Beretta handgun in the kitchen next to a loaded magazine. Investigators also seized approximately $1,000 from FORBES’s pants pocket, as well as one round of ammunition that matched the ammunition in the seized firearm.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging Hanks, FORBES and 12 other individuals with a variety of narcotics and firearms trafficking offenses.
FORBES has been detained since his arrest. On August 14, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.
Hanks pleaded guilty and, on February 25, 2015, was sentenced to 17 years of imprisonment.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
Bribe-Taker Ellis McCoy, Former City of Portland Smart Parking Meter Manager, Sentenced to 24 Months in PrisonRead the Press Release
PORTLAND, Ore. – Ellis McCoy, former Manager of Portland’s Parking Operations Division, was sentenced today by U.S. District Court Judge Marco Hernandez to 24 months in prison after his conviction for taking almost $200,000 in bribes from two city contractors from 2002 to mid-2011.
In August 2012, a year after FBI and IRS agents executed search warrants at McCoy’s office and home, McCoy pleaded guilty to conspiring to accept bribes, accepting bribes, and filing false tax returns on which he did not report a substantial amount of the bribe income. McCoy admitted he gave favorable treatment to the city contractors in return for $164,567 in checks and currency plus the value of travel, meals, lodging, and other expenses of an undetermined amount.
During its investigation, the government proved McCoy created a phony consulting company and submitted invoices for fictitious consulting work so he and the contractors could disguise some of the bribe payments as payments for consulting work. The government also proved McCoy accepted about $70,000 of the bribe payments in cash and that the contractors paid for some or all of his meals, travel, and entertainment expenses on about 60 trips for business and pleasure.
“The citizens of Portland are entitled to an honest day’s work from every City employee and they did not get that from Ellis McCoy,” said Acting U.S. Attorney Billy J. Williams. “Instead, McCoy broke trust with Portland and its citizens and rigged the contracting for smart parking meters in favor of those who bribed him. The U.S. Attorney’s Office, the FBI, and the IRS will always make it a priority to aggressively investigate and prosecute those involved in public corruption of any kind.”
George Levey, former president of Cale Parking Systems USA, Inc. and one of the contractors who bribed McCoy, pleaded guilty on April 29, 2015, and is scheduled to be sentenced on August 11, 2015.
This case was investigated by the FBI and the Criminal Investigation Division of the Internal Revenue Service. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
Bradenton Man Sentenced to More Than Twelve Years for Possession and Receipt of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Stacy Lynn Ivey (38, Bradenton) to 12 years and 7 months in federal prison for receiving and possessing child pornography. The court also ordered him to forfeit the electronic media on which the images and videos of child pornography had been found. Ivey pleaded guilty on March 4, 2015.
According to court documents, on July 25, 2014, an FBI Task Force Agent determined that someone using a computer with a specific Internet Protocol (IP) address was sharing suspected child pornography through a peer-to-peer file sharing program. Further investigation revealed that the computer was located at a residence in Bradenton. Agents subsequently executed a federal search warrant at that house, finding it to be Ivey’s friend’s house. The friend ultimately led the agents to Ivey’s home, where they found computers and other storage devices. In addition, a child pornography video file was paused on his laptop. During an interview with agents, Ivey admitted that he had downloaded child pornography, and that he had moved child pornography from his laptop computer to CDs due to storage issues. A forensic examination of the computers and storage devices revealed 175 images and more than 200 videos of child pornography.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Unit and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Adam M. Saltzman.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals’ who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Baltimore Warehouse Owners Sentenced in Scheme to Steal $1 Million of Nickel Imported into the Port of BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Gregg Lee Purbaugh, age 53, of Baltimore, and his business partner, Kenneth Trainum, age 46, also of Baltimore, today to 18 months in prison and a year and a day in prison, respectively, each followed by three years of supervised release, for conspiring to transport stolen nickel briquettes, which had been imported through the Port of Baltimore. Judge Quarles also ordered each man to pay restitution of $1 million.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to their plea agreements, Purbaugh and Trainum opened Bear Creek Warehouse Company in 2006. Their primary customer was an international mining company that shipped cargo containers of nickel to the Port of Baltimore from its mines outside the United States, then stored the nickel in the Bear Creek Warehouse. Beginning in 2006, Purbaugh and Trainum began removing the mining company’s nickel from the warehouse, setting it aside to sell later. In June 2006, Purbaugh approached a co-conspirator to sell the nickel in Pittsburgh, Pennsylvania. The co-conspirator contacted the owner of a Pittsburgh scrap metal company who agreed to purchase the nickel from the co-conspirator.
Purbaugh sold the co-conspirator a total of 80,000 pounds of nickel worth approximately $1 million, for the scrap metal price of $8 per pound. Purbaugh arranged the delivery of the nickel with the co-conspirator and the scrap metal dealer. Purbaugh then arranged for his driver, who lives near Pittsburgh, to drive a truck to the warehouse, which Trainum then loaded with the stolen nickel. Each load typically contained 6,000 pounds of nickel and the shipments took place at least twice a year. The co-conspirator paid Purbaugh in cash, which he divided with Trainum.
On November 2, 2011, agents from Homeland Security Investigations saw the driver enter the Bear Creek Warehouse parking lot. Purbaugh unlocked a shipping container adjacent to the warehouse that contained unmarked sacks of nickel briquettes. Trainum removed one of the sacks of nickel with a fork lift and loaded it onto the truck. While Trainum was transferring a second bag of nickel, HSI agents intervened and secured the stolen nickel. During the subsequent search, agents recovered 15 bags containing approximately 30,000 pounds of nickel which had been diverted from the mining company’s shipments.
United States Attorney Rod J. Rosenstein commended HSI Baltimore for its work in the investigation and thanked Assistant United States Attorneys Gregory R. Bockin and Martin J. Clarke, who prosecuted the case.
Baltimore Man Sentenced to over 31 Years in Prison for Attempted Home Invasion Robbery in Cherry Hill and Related Gun CountsRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kenneth Ray Graham, age 38, of Baltimore, today to 382 months in prison, followed by five years of supervised release, for attempting to commit an armed robbery, possessing and discharging a weapon in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Graham was convicted by a federal jury on February 12, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to evidence presented at Graham’s three day trial, on September 17, 2013, Graham attempted to force his way into a home in the Cherry Hill neighborhood of Baltimore and demanded money. Witnesses testified that Graham fired three shots into the living room during the attempted robbery. One of those bullets struck a nine year old boy. Graham was previously convicted of a felony and as a result was prohibited from possessing a firearm.
Trial evidence included a shoe containing Graham’s DNA left at the robbery location and a matching shoe also containing his DNA along the escape route. At the time of his arrest, Graham also had gunshot residue on his hand.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Kenneth S. Clark, who prosecuted the case.
Augusta, Georgia Man Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
AUGUSTA, GA – Leon Nathan Davis, 37, from Augusta, Georgia, pled guilty earlier today in federal court before United States District Judge J. Randal Hall to an Information charging him with attempting to provide material support to a designated foreign terrorist organization, namely, the Islamic State of Iraq and the Levant (ISIL).
According to the testimony presented in Court during the guilty plea proceeding, an FBI-led team investigated for over a year Davis’ attempts to join an overseas designated foreign terrorist organization. Davis was arrested at the Atlanta Hartsfield Airport in October 2014 on a parole violation, after he had purchased a ticket to fly to Turkey and then traveled from Augusta to the Atlanta Airport. Davis has been in custody since his October 2014 arrest.
Providing material support to a designated foreign terrorist organization is a crime punishable by up to 15 years in prison, a lifetime of supervised release, and a $250,000 fine. A sentencing hearing will be conducted after the United States Probation Office conducts a presentence investigation.
U.S. Attorney Tarver commended the FBI-led Joint Terrorism Task Force, the ATF, and the Georgia Board of Pardons and Paroles for their work on this case. Mr. Tarver also expressed his gratitude to the U.S. Customs and Border Protection Service and the Atlanta Police Department for their contributions to the investigation.
The case is being prosecuted by attorneys with the United States Attorney’s Office for the Southern District of Georgia and the Justice Department’s National Security Division.
Attorney Convicted for Role in Securities Fraud Conspiracy Involving ConnectAJet.comRead the Press Release
DALLAS — Following a six-day trial before U.S. District Judge Ed Kinkeade, a federal jury has found the former CEO of Connect-a-Jet, Martin Cantu, guilty on both counts of an indictment charging felony offenses stemming from his role in a conspiracy to deceive potential investors about the business of Connect-a-Jet, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, the jury found Cantu, 58, of Round Rock, Texas, guilty on one count of conspiracy to commit securities fraud and one count of securities fraud. The maximum statutory penalty for the conspiracy count is five years in federal prison and a $250,000 fine, and 20 years in federal prison and a $250,000 fine for the securities fraud count. Restitution may be ordered. Sentencing is set for September 9, 2015, before Judge Kinkeade.
Cantu’s co-defendant, stock promoter Jason Wynn, 32, of Lantana, Texas, pleaded guilty on April 30, 2015, to the conspiracy offense. He has not yet been sentenced.
Connect-a-Jet (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, founded the company and began its development. By the time Cantu became involved with the business, Wynn and Cantu had abandoned plans to turn the company into a legitimate business and instead focused on pumping and dumping the stock of Connect-a-Jet. Connect-a-Jet was traded on an exchange known as the Pink Sheets and had tens of thousands of public investors. Cantu, who is a licensed attorney with the state of Texas, owned the majority of shares of CAJT.
The government presented evidence at trial that from approximately May to October 2007, Cantu and Wynn conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements, including ads in USA Today and commercials on CNBC, to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept and design stage. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices. As part of the conspiracy, Cantu engaged in a cover-up of his crimes including providing false testimony to the Securities and Exchange Commission.
The indictment also named co-conspirator Ryan Reynolds, a former stockbroker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
Over the course of fifteen days in the fall of 2007, Cantu realized $552,341 in profits from the sale of 250,000 CAJT shares he controlled, which represented 83% of his total number of shares. Cantu sold these shares through an account in the name of his father. From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI investigated the case. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch prosecuted.
Alderman’s Former Chief of Staff Sentenced to 15 Months for Accepting $7,500 BribeRead the Press Release
CHICAGO — A former chief of staff for a Chicago alderman was sentenced today to 15 months in prison for accepting a $7,500 cash bribe in exchange for obtaining the alderman’s letter of support for a license to sell alcohol in the alderman’s ward. The defendant, CURTIS V. THOMPSON, JR., 63, of Chicago, pled guilty in December 2014 to federal program bribery, in accepting a bribe from an individual who claimed he wanted to open a convenience store but was actually a cooperating witness in an FBI undercover investigation. U.S. District Court Judge Samuel Der-Yeghiayan also sentenced Thompson to one year of supervision after his release and to forfeit $7,500, the amount of the bribe. Thompson was ordered to surrender to the U.S. Bureau of Prisons on September 1, 2015.
According to court documents, Thompson accepted 75 $100 bills in a Christmas card that the cooperating witness gave him at the alderman’s holiday party in December 2013. Thompson admitted that he used the money he received to pay personal expenses.
“Over the years, time and time again, officials have demonstrated their greed,” said Judge Der-Yeghiayan while imposing sentence. “His job was to serve the citizens of Chicago, and he did not.”
“He (Thompson) readily joined the ranks of corrupt public officials who have chosen to line their pockets at the public’s expense,” argued Assistant U.S. Attorney Megan Church in the government’s sentencing memorandum. “He gave the residents of Chicago one more reason to doubt its leaders and public officials; one more reason to question the legitimacy of their municipal government; and one more reason to give into the cynicism of a “where’s mine?”
The sentence was announced 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.
The government was represented by Assistant U.S. Attorneys Megan Church and Bethany Biesenthal.
Tuesday 26 May 2015
Watertown Man Convicted of Armed RobberyRead the Press Release
SYRACUSE, NEW YORK – On Friday, May 22, 2015, after a five day jury trial, a jury in the Northern District of New York convicted Yarbrough Latulas (30, of Watertown, NY) of armed robbery, according to U.S. Attorney Richard S. Hartunian. After hearing all of the evidence, the jury found Yarbrough Latulas guilty of the following felony offenses as charged in the three-count superseding indictment: count one, conspiracy to interfere with interstate commerce by robbery; count two, interfere with interstate commerce by robbery; and count three, using and carrying sawed-off shotgun during and in relation to a crime of violence.
As a result of the conviction, the defendant is facing a statutory maximum term of imprisonment of life, a mandatory minimum term of imprisonment of 10 years, and a maximum fine of $250,000.00 per count of conviction. Sentencing is scheduled for October 2, 2015 at 10:30 a.m. in front of U.S. District Judge Glenn T. Suddaby.
The evidence at trial showed that on July 31, 2013, Yarbrough Latulas and Robert Williams, who previously pled guilty to participating in the armed robbery, entered the Sunoco mini-mart located at 1222 Washington Street, Watertown, New York intending to commit a robbery. After entering the Sunoco, Yarbrough Latulas stole money and tobacco products while Robert Williams pointed a sawed-off 12 gauge shotgun at the store clerk.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorneys Ransom P. Reynolds and Nicolas Commandeur. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Utah Man Sentenced to Prison for Filing $1.5 Million in False Claims for Tax Refunds and Presenting Fictitious Financial Instruments to the U.S. GovernmentRead the Press Release
A Sandy, Utah, resident was sentenced today in U.S. District Court in Salt Lake City, Utah, to serve two years in prison for tax evasion, filing false claims for federal income tax refunds, and filing fictitious financial obligations with the U.S. government, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Paul Ben Zaccardi was also ordered to pay restitution to the Internal Revenue Service (IRS) and to serve a four-year term of supervised release upon his release from prison.
“Pursuing and prosecuting individuals who refuse to comply with our nation’s tax laws and take affirmative steps to evade their obligations remains a top priority of the Tax Division,” said Acting Assistant Attorney General Ciraolo. “Today’s sentence reflects what awaits those who engage in such criminal conduct.”
“Today’s sentencing of Paul Zaccardi again emphasizes the Internal Revenue Service and DOJ Tax Division’s aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation’s tax system,” said Special Agent in Charge John Collins of the IRS Criminal Investigation’s Las Vegas Field Office. “Honest taxpayers have been reassured today that no one is above the law–especially when the integrity of the tax administration is at stake.”
On Oct. 29, 2014, Zaccardi pleaded guilty to the offenses charged in the superseding indictment, including one count of tax evasion, five counts of filing false claims for income tax refunds and three counts of filing fictitious obligations. According to the superseding indictment and court documents, in April 2004, Zaccardi embarked on a scheme to evade the payment of his federal income taxes. As part of that scheme and to avoid federal tax levies, Zaccardi transferred title to his residence to a nominee entity that he formed called Saved by Grace Christian Fellowship and caused his business receipts to be deposited into his wife’s bank account.
Zaccardi also presented five separate false tax returns to the IRS falsely claiming tax refunds totaling more than $1.5 million. In addition, from June 2008 to October 2011, Zaccardi presented three separate fictitious financial instruments to the IRS, U.S. Department of the Treasury and the U.S. District Court of the District of Utah for a combined total of $605 million, to purportedly pay his federal income tax liabilities.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Stuart Wexler and Ryan Raybould of the Tax Division, who prosecuted the case. She also thanked the U.S. Attorney’s Office of the District of Utah for their substantial assistance.
Additional information about the Tax Division’s national Tax Defier Initiative and its enforcements efforts in this area may be found on the division’s website.
Additional information about tax fraud schemes to watch out for may be found on the IRS Criminal Investigation Web site at http://www.ustreas.gov/irs/ci/.
U.S. Attorney's Office, Department of Justice, and McPal, Inc. D/B/A McDonald’s agree to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with McPal, Inc., a franchisee of McDonald’s, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by failing to allow the use of a service dog by a person with a disability.
“This settlement agreement ensures that those who are assisted by service animals will enjoy the same service as all citizens, and we hope it ensures that the same will occur at other restaurants as well,” said Acting U.S. Attorney John A. Horn.
The investigation in this matter was initiated by a complaint filed with the United States, alleging that the complainant’s son is an individual with a disability who uses a service dog for assistance. The complainant and her family visited a McDonald’s restaurant in Canton, Georgia and were met by a restaurant manager who refused to allow the service animal into the establishment. Despite the complainant’s explanation that the dog was a service animal, the manager insisted that the animal could not remain in the facility.
Under the settlement agreement that the government has reached with McPal, the McDonald’s franchisee agreed that it will provide at least one hour of training regarding the ADA to its customer service employees and that it will also provide each employee a copy of its Service Animal Policy. All new employees will also receive this training.
The ADA defines a service animal as any guide dog, signal dog, or other animal individually trained to provide assistance to an individual with a disability. Under the ADA, privately owned businesses that serve the public are prohibited from discriminating against individuals with disabilities. The ADA requires these private businesses, such as restaurants, to allow service animals to accompany people with disabilities in all areas of the facility where the public is normally allowed to go.
Assistant United States Attorneys Aileen Bell Hughes and Cynthia B. Smith represented the United States in this matter.
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 is http://www.justice.gov/usao-ndga.U.S. Attorney and South Alabama Veterans Council Announce Town Hall Outreach on Veterans' Employment RightsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that two Town Hall meetings will be held on June 6, 2015, to educate Military Veterans on their post-service employment rights. One Town Hall will be held in Mobile County at 10 a.m. at Tilman’s County Senior Center, 5863 Nevius Road, and one in Baldwin County at 2 p.m. at VFW Post 5660, 950 Nichols Avenue, Fairhope. Mobile County Magistrate Edward C. Blount, Jr. will provide opening remarks in Mobile County. Judge Michelle Thomason, presiding judge of the new Baldwin County Veterans Court, will open the Town Hall in Baldwin County.
U.S. Attorney Kenyen Brown: “Many returning veterans, some with disabilities earned in the service of their country, face discrimination on top of the tough job market. Some find their former jobs are not waiting for them; some find employers unwilling to hire them if they have service-related disabilities. Our office vigorously fights employment discrimination based on military service.” Representatives from federal and state agencies and veterans groups will provide information about veterans’ rights and how to enforce them under the ADA and the Uniformed Services Employment & Re-employment Rights Act (USERRA). Investigators will be present to take complaints.
“The Servicemembers and Veterans Initiative was created to ensure the Department of Justice uses every tool we can to guarantee the legal rights of the men and women who protect our country,” said Acting Associate Attorney General Stuart F. Delery. “I’m hopeful that this will be the first of many Town Halls as we continue to build a strong collaborative relationship between the Department of Justice and our partners in the federal and state government toward the common goal of supporting servicemembers, veterans, and their families.”
The sponsoring agencies are:
The United States Attorney’s Office (USAO);
The Depratment of Justice’s Servicemembers and Veterans Initiative (USAO);
United States Department of Justice, Disability Rights Section (DOJ);
The Equal Employment Opportunity Commission (EEOC);
Employer Support of the Guard and Reserve (ESGR) of the Department of Defense;
State of Alabama Career Center;
Alabama Vocational Rehabilitation Services.Click here to download the Town Hall Flyer. (736.85 KB)
Two Wetzel County residents convicted of oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Trevor Cortez Vossen, 23, of New Martinsville, West Virginia, and Katie Ora Ingold, 29, of Proctor, West Virginia, were convicted of oxycodone trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Vossen and Ingold collaborated to possess and distribute oxycodone in Marshall and Wetzel Counties throughout 2014 and early 2015.
The defendants each pled guilty today to one count of “Drug Conspiracy - Oxycodone.” They each face up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The West Virginia State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Two Mexican Nationals Sentenced to 24 Years, 20 Years for Smuggling Cocaine into KC AreaRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that five Mexican nationals were sentenced in federal court today for their roles in a Mexico-based drug-trafficking organization that smuggled large amounts of cocaine and methamphetamine from Mexico to distribute in the Kansas City, Mo., area.
Alejandro Valencia, 32, Eric Octavio Rangel-Ortega, 33, and Alfredo Avitia, 34, all of whom are citizens of Mexico residing in Kansas City, Mo., and Juan Rodriguez-Ponce, 62, and his son, Juan Carlos Rodriguez-Maynez, 36, both of Mexico, were sentenced by U.S. District Judge Dean Whipple.
Valencia was sentenced to 24 years and four months in federal prison without parole. Octavio Rangel-Ortega was sentenced to 20 years in federal prison without parole. The court also ordered Valencia and Rangel-Ortega to forfeit to the government $376,000 that was seized by law enforcement officers and represents the proceeds of illegal drug trafficking, and a 2001 Silverado that was used to commit the offenses.
Avitia was sentenced to three years and four months in federal prison without parole. Rodriguez-Maynez and Rodriguez-Ponce were each sentenced to nine years in federal prison without parole. The court also ordered them to forfeit to the government a 2002 Honda Odyssey van.
Law enforcement officers initially purchased methamphetamine from Rangel-Ortega on five separate occasions from October 2012 to January 2013 during an undercover storefront operation. On three occasions, those transactions occurred near the Mores Early Childhood Center and Elementary School in Kansas City, Kan. The undercover officer purchased a total of 256.9 grams of methamphetamine from Rangel-Ortega during this time period, until Rangel-Ortega left the United States and returned to Mexico. Rangel-Ortega then told the undercover officer that his cousin, Valencia, would continue to sell methamphetamine.
The undercover officer purchased a total of 345.4 grams of methamphetamine from Valencia on five separate occasions from February to April 2013. The undercover officer contacted Rangel-Ortega before every deal and Rangel-Ortega made contact with Valencia to ensure he would sell to the undercover officer. After one of the buys, Valencia told the undercover officer that he sent Rangel-Ortega the money while he was in Mexico.
Investigators learned of additional members of the drug-trafficking conspiracy. Investigators also learned that Valencia was expecting a shipment of cocaine from Mexico to Kansas City, Mo., and planned to ship $330,000 in cash back to Mexico.
Investigators conducted surveillance and on April 19, 2013, saw Valencia meet with Rodriguez-Maynea and Rodriguez-Ponce, who had driven their vehicle across the border from Mexico a few days earlier.
After observing the transaction between Valencia and the other men, law enforcement officers later stopped the Honda Odyssey driven by Rodriguez-Maynez and Rodriguez-Ponce. Officers found 33 bundles of cash, each containing $10,000 for a total of $330,000, stashed in a hidden compartment.
On the same day, officers executed a search warrant at Valencia’s residence and seized approximately five kilograms of cocaine, $20,400 and Valencia’s truck.
On Aug. 22, 2013, a confidential informant working under the direction of law enforcement arranged to purchase one ounce of cocaine from Avitia for $1,000. On Aug. 27, 2013, the same confidential informant again working under the direction of law enforcement arranged to purchase two ounces of cocaine from Avitia. This transaction did not occur after it appeared that Avitia had observed law enforcement surveillance.
Valencia pleaded guilty to his role in a conspiracy to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine from Sept. 1, 2012, to April 19, 2013. Valencia also pleaded guilty to bulk cash smuggling, to participating in a conspiracy to import five kilograms or more of cocaine and to participating in a money-laundering conspiracy.
Rangel-Ortega pleaded guilty to his role in the conspiracy to distribute methamphetamine, to distributing methamphetamine and to his role in the money-laundering conspiracy.
Avitia pleaded guilty to his role in the conspiracy to distribute cocaine and to participating in the money-laundering conspiracy.
Rodriguez-Maynez and Rodriguez-Ponce both pleaded guilty to bulk cash smuggling and to their roles in a conspiracy to import cocaine.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Kansas State Highway Patrol.
Two Charged in Fraud Scheme on Local UniversityRead the Press Release
PHILADELPHIA - Kenneth Kapikian, 57, of Wayne, Pennsylvania, and Dennis Gagliardi, 60, of Chester Springs, Pennsylvania, were charged today by Information with a scheme to defraud the University of Pennsylvania. The defendants are each charged with seven counts of wire fraud and one count of conspiracy to commit money laundering, announced United States Attorney Zane David Memeger.
According to the Information, the defendants, engaged in a scheme to fraudulently obtain monies from the University of Pennsylvania by falsely billing the University for services the defendants never provided to the Sheraton University City Hotel. The Information further alleges the defendants directed vendors of the Sheraton University City Hotel to inflate their invoices submitted to the hotel and then pay them the fraudulently inflated amounts as kickbacks.
If convicted, each defendant faces a maximum possible sentence of 160 years in prison, a three-year period of supervised release, a fine of up to $500,000, and an $800 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Orlando Residents Charged with Identity Theft and Tax Refund FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Shantrell Sharae Stephenson, Lori Ann Dilworth, and Richard Damarick Mitchell with conspiracy, submitting false claims to the Internal Revenue Service (IRS), theft of government property, and aggravated identity theft. If convicted, they face a maximum penalty of 10 years in federal prison for each conspiracy and theft of government property count, 5 years’ imprisonment for each false claims count, and a mandatory minimum term of 2 years in prison for the aggravated identity theft count. Trial is scheduled for the July 2015 trial term.
According to the indictment, Dilworth worked at the Orange County Jail. Mitchell solicited Dilworth to steal the personal identification information of jail inmates for the purpose of providing that information to be used by Stephenson and other co-conspirators in filing false tax returns. In total, the conspirators used stolen personal information to submit over $200,000 in fraudulent tax returns to the IRS.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Texas Resident Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
A criminal complaint has been unsealed in the Southern District of Texas following the arrest of a Spring, Texas, man on allegations he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division made the announcement.
Asher Abid Khan, 20, was taken into custody this morning without incident. He is expected to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas today.
The criminal complaint alleges that Khan and a friend devised a plan to travel to Turkey and on to Syria for the purpose of joining and waging jihad on behalf of ISIL. Khan had allegedly asked a Turkish-based foreign terrorist fighter facilitator that “I wana join ISIS can you help?” He also told someone else that “I wana die as a Shaheed [martyr],” according to the allegations.
Khan’s friend allegedly made it to Syria and ISIL with the assistance of Khan and the foreign terrorist fighter facilitator. Khan had been living in Australia with a relative and made it to Istanbul, Turkey, where he was to meet up with his friend in their quest to join ISIL, according to the complaint. However, Khan’s family sent him false information regarding his mother’s health and he was deceived into returning home to Texas.
If convicted, he faces up to 15 years in federal prison. A conviction also carries a possible $250,000 fine.
A complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case was investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Carolyn Ferko and Alamdar Hamdani of the Southern District of Texas, as well as Trial Attorneys Josh Parecki and Keith Parrella of the National Security Division’s Counterterrorism Section.
Khan Criminal Complaint
Texas Resident Charged with Conspiracy to Provide Material Support to ISILRead the Press Release
HOUSTON - A criminal complaint has been unsealed in the Southern District of Texas following the arrest of a Spring man on allegations he conspired to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. United States Attorney Kenneth Magidson made the announcement along with Assistant Attorney General for National Security John P. Carlin and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division.
Asher Abid Khan, 20, was taken into custody this morning without incident. He is expected to make his initial appearance before U.S. Magistrate Judge Frances Stacy in Houston at 2:00 p.m. today.
The criminal complaint alleges Khan and a friend devised a plan to travel to Turkey and on to Syria for the purpose of joining and waging jihad on behalf of ISIL. Khan had allegedly asked a Turkish-based foreign terrorist fighter facilitator that “I wana join ISIS can you help?” He also told someone else that “I wana die as a Shaheed [martyr],” according to the allegations.
Khan’s friend allegedly made it to Syria and ISIL with the assistance of Khan and the foreign terrorist fighter facilitator. Khan had been living in Australia with a relative and made it to Istanbul, Turkey, where he was to meet up with his friend in their quest to join ISIL, according to the complaint. However, Khan’s family sent him false information regarding his mother’s health and he was deceived into returning home to Texas.If convicted, he faces up to 15 years in federal prison. A conviction also carries a possible $250,000 fine.
This case was investigated by the FBI Joint Terrorism Task Force. Assistant U.S. Attorneys Carolyn Ferko and Alamdar Hamdani are prosecuting the case along with Trial Attorneys Josh Parecki and Keith Parrella of the National Security Division’s Counterterrorism Section.A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Summary of settlement agreement between the Justice Department and City of Cleveland regarding the Cleveland Division of PoliceRead the Press Release
INTRODUCTION
The Department of Justice (DOJ) and the City of Cleveland (City) have reached a Settlement Agreement (Agreement) to reform the Cleveland Division of Police (CDP). The Agreement is intended to resolve DOJ’s findings that CDP engages in a pattern or practice of using unreasonable force in violation of the Fourth Amendment.
PROVISIONS OF THE SETTLEMENT AGREEMENT
The Settlement Agreement contains the following important mechanisms:
Community engagement with CDP:
- Development of formal and informal mechanisms to ensure greater community engagement with CDP.
- Creation of a Community Police Commission that represents Cleveland’s many communities. Provides input on CDP’s policies, training, civilian oversight system, and bias-free policing and community engagement strategies.
- Implementation of a comprehensive community and problem-oriented policing model to strengthen partnerships with the community and ensure collaborative problem-solving.
Search and seizure practices and bias-free policing:
- Revision of policies and training to ensure that all stops and searches are conducted in accordance with the Constitution and in a manner that takes into account community values.
- Significantly more supervision of officers’ search and arrest practices.
- Development of a bias-free policing policy that makes clear that biased policing, including deciding to detain someone based solely on racial stereotypes, is prohibited. Includes training on cultural competency and implicit bias.
- Tracking and analysis of interactions between the police and residents, including the race, ethnicity, age, and gender of people who are stopped and against whom force was used.
- Community input into comprehensive training related to bias-free policing.
- Development of a recruiting plan that will include specific strategies for attracting a diverse group of applicants.
Use of force:
- Revision of force policies and improved training and guidance on when and how officers may use force, including an emphasis on de-escalation of incidents.
- Strengthening of the systems for reviewing and investigating uses of force.
- Creation of a Force Review Board to review serious uses of force, including the circumstances leading up to the use of force, officers’ tactical decisions, the adequacy of supervision and equipment, and CDP’s medical response.
Crisis intervention:
- Development of a Mental Health Response Advisory Committee to foster relationships and build support between police, the community and mental health providers.
- Development of a plan to ensure that specialized officers who have received advanced training in responding to individuals in crisis respond to calls related to those in mental-health crisis.
Accountability:
- Revised systems to ensure that all allegations of officer misconduct are investigated fully, fairly, and efficiently, and that officers who engage in misconduct are held accountable.
- Placement of a civilian at the head of Internal Affairs and improved training of Internal Affairs investigators.
- Substantial changes to the Office of Professional Standards and the Police Review Board to ensure that all civilian complaints of police misconduct are thoroughly and effectively investigated.
Transparency and oversight:
- Creation of a civilian Police Inspector General to review policies and practices; analyze trends; review investigations conducted by the Office of Professional Standards; and review all discipline imposed.
- Broad data collection regarding many of CDP’s activities, including its use of force and stop and search practices, and public reporting of that data.
Officer assistance and support:
- Implementation of an effective employee assistance program that provides officers ready access to the mental health and support resources.
- Development of a comprehensive equipment and resource study to assess current needs and priorities to perform the functions necessary for CDP to fulfill its mission, and submission of plan to the independent monitor.
Implementation and Termination:
- Filed in federal Court and operates as a federal court order once approved by a judge.
- Overseen by an independent monitor, chosen by the Parties for an initial term of five years, to assess and report on whether the requirements of this Agreement have been implemented.
- Termination of the Agreement when the city has demonstrated to a judge that it been in substantial and effective compliance for two consecutive years for most requirements of the Agreement, one year for the search and seizure requirements.
Statement by U.S. Attorney Damon P. Martinez on the Fatal Shooting of Rio Rancho Police Officer Gregg BennerRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez released the following statement today regarding the fatal shooting of Gregg Benner, 49, a Police Officer with the Rio Rancho Police Department:
“The fatal shooting of Officer Gregg Benner strikes at the very core of the values we hold dear. Officer Benner was a committed and courageous public servant, dedicated to our community and was devoted to our security. He exemplified the very best that our Country has to offer in the performance of his duties. The thoughts and prayers of the law enforcement community are with Officer Benner’s family and loved ones throughout this difficult time. As we go forward, the Department of Justice intends to honor his service and sacrifice by continuing to fight for our shared values, and defending the American people he proudly served.
“The murder of this man is a devastating reminder that the work our brave police officers perform every day is extremely dangerous, profoundly heroic, and deeply deserving of our unequivocal support. All Americans owe these courageous public servants a debt of gratitude.”
Springfield Woman Sentenced to Nearly Four Years in Prison for Embezzling More Than $400,000 from Former EmployerRead the Press Release
Springfield, Ill. – In court this morning, U.S. District Judge Sue E. Myerscough sentenced a Springfield, Ill., woman, Alice M. Foss, 53, to serve 46 months in federal prison for embezzling more than $400,000 from her former employer, a Springfield consulting and lobbying firm. During a jury trial in January 2015, Foss pled guilty to the charges against her: mail fraud (five counts), wire fraud (seven counts), and access device fraud (one count.)
Foss was ordered to pay restitution in the amount of $464,925. Foss was ordered to report to begin serving her prison term on a date to be determined by the federal Bureau of Prisons.
At her plea hearing, on Jan. 20, 2015, Foss admitted that she embezzled money from Don Moss and Associates from May 1997 to October 2009. At the time of the fraud, Foss was employed as the firm’s chief financial officer and in that capacity, had check-signing authority and control over the firm’s bank account and was responsible for paying the firm’s business expenses.
As part of the fraud scheme, Foss admitted that she repeatedly wrote fraudulent bonus checks to herself as well as checks she falsely represented were reimbursements for business expenses, when, in fact, the false expenses were simply one of the means she used to conceal her embezzlement. Foss admitted that she repeatedly used DMA’s bank account and credit card account to pay personal expenses, including personal car payments, donations to a private school, and payments to personal credit cards. Foss also used the DMA credit card to pay for personal expenses including payments for clothing, groceries, gas, car washes and rentals, hotel rooms, hair salon and spa expenses, and veterinary bills.
The charges were investigated by the U.S. Postal Inspection Service and the FBI. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.
Smithfield Resident Sentenced for Money Laundering and Harboring a FugitiveRead the Press Release
Defendant aided his brother after he fled the country
NEWPORT NEWS, Va. – Danish Syed, 19, of Smithfield, Va., was sentenced today to eighteen months in prison, followed by three years of supervised release, following his convictions for Conspiracy to Commit Money Laundering and Harboring a Fugitive. He was also ordered to pay $35,618.28 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and John S. Adams, Special Agent in Charge of the FBI’s, Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Danish Syed pled guilty on February 24, 2015. According to the statement of facts filed with his plea agreement, Danish Syed is the half-brother of Mehdi Syed, who was charged, in March, 2014, with an account take over and identity theft scheme. As alleged in the indictment, Mehdi, under the guise of a legitimate company sought to obtain thousands of dollars from customers of SunTrust Bank by fraudulently transferring funds from individual accounts to nominee checking accounts established by Mehdi in the names of aliases and purported business entities. In April, 2014, Mehdi was located in North Carolina and agreed to surrender to authorities. Mehdi relocated his family from North Carolina to Smithfield, Virginia; the home of his mother, his step-father and his half-brother, Danish. After Mehdi failed to turn himself in, authorities interviewed his family members and they each claimed they did not know his whereabouts. The next day Mehdi’s mother, “NS,” contacted authorities and admitted they had lied to the FBI and that they did know Mehdi’s location as Danish Syed drove Mehdi to a hotel on the Eastern Shore of Virginia. Mehdi was arrested and on May 28, 2014 was released on bond and electronic monitoring. In June, 2014, Mehdi opened several bank accounts with FirstView in the names of aliases. On July 9, 2014 Mehdi’s electronic monitoring bracelet was located in a wooded area off of Mercury Blvd. in Hampton, Virginia, and on the same day a warrant was issued for his arrest.
One of the customers whose account was fraudulently accessed was “DS.” Beginning in August, 2014 Mehdi caused “DS’s” account to be accessed without her permission. Through third party payroll services thousands of dollars were transferred out of “DS’s” account and into the Firstview accounts Mehdi had created while on pre-trial release. Firstview closed several of the accounts they suspected were opened on suspicion of fraud and the funds were mailed to the address on record; Danish Syed’s home in Smithfield. Thereafter Danish Syed communicated with Mehdi Syed about the funds. On or about October 14, 2014 through October 16, 2014, Danish Syed deposited the FirstView checks, which represented fraudulent funds, into an account accessible by Mehdi. From October 15, 2014 through October 30, 2014 Mehdi withdrew nearly all of the funds that Danish had deposited into the account from ATM machines located in Lahore, Pakistan.
This case was investigated by IRS-CI and FBI. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin Gratton are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR72.
Shreveport man sentenced for failing to update his sex offender registration after moving to TexasRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 24 months in prison for failing to update his sex offender registration when he moved.
Justin Ray Merritt, 33, of Shreveport, was sentenced by U.S. District Judge Donald E. Walter on one count of failure to update his sex offender registration. He was also sentenced to five years of supervised release. According to evidence presented at the February 26, 2015 guilty plea, Merritt reported his residence to be in Shreveport in December 17, 2013 as required by the Sex Offender Registration and Notification Act. Merritt was discovered living in Texarkana, Texas, on August 14, 2014. He admitted to not updating his sex offender registration information when moving to Texarkana and to have been living there since November of 2013. He was convicted in 2004 of felony carnal knowledge of a juvenile in Caddo Parish, which requires 15 years of sex offender registration.
The U.S. Marshals Service and Louisiana Probation and Parole conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Shipping Company Sentenced to Pay $800K for Dumping OilRead the Press Release
Anchorage, Alaska – AML Ship Management GMBH, a German company, was sentenced in federal court today to pay a total of $800,000 in fines and community service payments for violating the Clean Water Act and the Act to Prevent Pollution from Ships by intentionally discharging 4,500 gallons of oily bilge water into the ocean off the coast of Alaska and then presenting false records to the U.S. Coast Guard.
AML was also ordered to implement a comprehensive Environmental Compliance Plan and was placed on probation for three years. During the term of probation, AML will be subject to a heightened level of scrutiny, including warrantless searches of its vessels and places of business based upon a reasonable suspicion that it is violating the law. Of the total payment, AML will pay $675,000 in criminal fines and $125,000 in community restitution. The community restitution payment will go to the Alaska SeaLife Center to be used for projects and research that have a nexus to the Clean Water Act oil pollution crime committed.
Chief Engineer Nicolas Sassin was sentenced in Oregon last Friday to serve five months of home confinement followed by five years of probation for his role in these offenses. The Court in Oregon found the Chief Engineer Sassin used a special skill due to his engineering abilities to commit his Clean Water Act crime.
Defendant AML is the operator of the Motor Vessel City of Tokyo. The M/V City of Tokyo is a vehicle carrier vessel that operates under the flag of the Republic of Liberia. It was built in 1987, weighs approximately 42,247 gross tons, and is 603 feet long. Defendant Nicolas Sassin worked as the Chief Engineer of the M/V City of Tokyo between May 28, 2014 and September 6, 2014, when the vessel arrived in Oregon and was contacted by the United States Coast Guard.
On August 22, 2014, the M/V City of Tokyo departed South Korea and thereafter travelled through the Exclusive Economic Zone (EEZ) of the United States off the coast of Alaska arriving in Canada on September 2, 2014. The vessel departed Canada on September 3, 2014. The M/V City of Tokyo arrived in Tacoma, Washington on September 4, 2014, and remained there until departing for Portland, Oregon. The M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
As the operator of the M/V City of Tokyo, AML was responsible for operating the Oil Water Separator (OWS) and maintaining an accurate Oil Record Book (ORB). As the Chief Engineer, Nicolas Sassin was responsible for the pollution control equipment in the M/V City of Tokyo’s engine room, including running the OWS and for maintaining the Oil Record Book (ORB).
On or about August 29, 2014, AML knowingly discharged oily bilge water into the United States’ Exclusive Economic Zone off the coast of Alaska which may have affected natural resources belonging to, appertaining to, and under the exclusive management authority of the United States and in a quantity that may be harmful.
AML admitted that while the M/V City of Tokyo was approximately 165 nautical miles south of the Aleutian Islands, specifically Sanak Island, Alaska, the Chief Engineer used an illegal pump system to knowingly discharge approximately 4,500 gallons of oily bilge water directly overboard. The illegal pump system consisted of a fabricated flanged fitting that connected the overboard discharge valve and pipe to a pneumatic Wilden pump. The pump’s suction was connected to a hose that was fed down the sounding tube for the bilge holding tank. The illegal pump system allowed the vessel’s crew to discharge oily bilge water from the bilge holding tank directly overboard without processing it through the required pollution prevention equipment (OWS and oil content meter). The overboard discharge created a sheen in the water off the stern of the vessel, and this was witnessed by crewmembers aboard the M/V City of Tokyo. The illegal pump system was dismantled prior to the vessel’s arrival in Portland.
AML knowingly failed to maintain an accurate ORB as required by the Act to Prevent Pollution from Ships (APPS).
Chief Engineer Sassin and AML also failed to record this discharge of oil into the sea by way of the illegal pump system and overboard discharge valve in the M/V City of Tokyo’s ORB, and knowingly presented and/or had available for inspection by the United States Coast Guard a false and fictitious ORB when the M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
AML and Chief Engineer Sassin were charged in separate cases filed in both the District of Alaska and the District of Oregon. The Oregon charges against AML were transferred to Alaska, and the Alaska charges against Mr. Sassin were transferred to Oregon. No charges were dismissed.
“The year is 2015, and unfortunately oil pollution from ships continues to be a worldwide problem,” noted First Assistant United States Attorney Kevin Feldis. “AML and Mr. Sassin failed to uphold their obligations to protect our environment when they knowingly discharged oily water into the ocean within the Exclusive Economic Zone off the Coast of Alaska. The criminal fine, Environmental Compliance Plan, community service payment and probationary conditions ordered by the Court are all appropriate sanctions and remedies, and will hopefully serve to prevent future crimes.”
The M/V City of Tokyo was initially inspected and detained in Portland, Oregon by the United States Coast Guard marine inspectors. These cases were investigated by the U.S. Coast Guard Investigative Service and prosecuted jointly by the United States Attorney’s Office for the District of Alaska, the United States Attorney’s Office for the District of Oregon, and the Department of Justice’s Environmental Crimes Section.
Senior Member of Al-Qaeda Pleads Guilty to Conspiring to Kill U.S. Soldiers in Iraq and Afghanistan and Providing Material Support to Al-QaedaRead the Press Release
Defendant Tried to Lure American Solders to a Compound in Afghanistan that Was Rigged with Explosives; Also Facilitated the Entry of an American Citizen into Al-Qaeda
Earlier today, Saddiq al-Abbadi, 40, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, providing and conspiring to provide material support to al-Qaeda and using a machine gun in furtherance of those crimes.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office. Today’s guilty plea proceeding took place before U.S. District Court Judge Nicholas G. Garaufis of the Eastern District of New York. At sentencing, al-Abbadi faces a maximum of life imprisonment.
“With the guilty plea entered today, Saddiq al-Abbadi will be held accountable for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division.”
“The defendant was a high-level al-Qaeda operative with ties to the terrorist group’s senior leadership in both Pakistan and Yemen,” said Acting U.S. Attorney Currie. “He fought in battles against U.S. troops in Iraq and Afghanistan, tried to kill U.S. troops in Afghanistan by luring them to a compound rigged with explosives, and helped an American citizen gain entry to al-Qaeda. We stand resolute in our commitment to bring to justice those who would try to harm members of our military or who assist al-Qaeda’s efforts to kill Americans at home or abroad.”
“With today’s guilty plea, Al-Abbadi admitted to directly supporting the mission of a designated terrorist organization through planning an operation designed to kill U.S. forces and for engaging in recruitment efforts on behalf of al-Qaeda,” said Assistant Director in Charge McCabe. “This plea is due in no small part to the many FBI Special Agents, intelligence analysts, and linguists from the Washington and New York Field Offices as well as our interagency and international partners who spent countless hours investigating terrorism actors and al-Abbadi’s actions. The FBI will not rest until we find and hold accountable those who provide support to terrorist groups and ensure that they are brought to justice.”
According to court filings, al-Abbadi traveled from his home country of Yemen to Iraq where, from approximately late 2005 through early 2007, he fought alongside al-Qaeda affiliated battalions against U.S. troops stationed in Iraq.
In early 2008, al-Abbadi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan in order to fight for al-Qaeda in Pakistan and Afghanistan. While in the FATA, al-Abbadi – who had longstanding ties to senior members of al-Qaeda’s Yemen-based affiliate known as al-Qaeda in the Arabian Peninsula (AQAP) – engaged directly with senior al-Qaeda leadership in Pakistan, including Sheikh Saeed al-Masri, the then-third ranking member of al-Qaeda.
During the late spring and summer of 2008, Al-Abbadi crossed from Pakistan into Afghanistan for the purpose of fighting and killing members of the U.S. military stationed in Afghanistan. In June 2008, he planned an operation designed to lure U.S. forces to a compound in Ghazni, Afghanistan, that was rigged with explosives set to detonate upon their entry. When U.S. forces arrived at the compound, they found rocket-propelled grenades and artillery rounds littered about. One soldier observed wiring running from the exterior gate to the inside of the compound and recognized the trap. The military evacuated and subsequently leveled the compound.
In addition to fighting against the U.S. military, al-Abbadi used his connections with al-Qaeda’s leadership to help U.S. citizen Bryant Neal Vinas gain entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island, New York, in the hopes of joining al-Qaeda and fighting against U.S. military forces in Afghanistan. As a result of al-Abbadi’s assistance, Vinas was allowed to join al-Qaeda. After participating in al-Qaeda’s military training program, Vinas developed a plan with senior al-Qaeda external operations leadership to conduct an attack on the Long Island Railroad in New York. Vinas was arrested before he could carry out this attack.
Assistant Attorney General Carlin extended his grateful appreciation to the FBI. The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section and by the Office of International Affairs.
Senior Member of Al-Qaeda Pleads Guilty to Conspiring to Kill U.S. Soldiers in Iraq and Afghanistan and Providing Material Support to Al-QaedaRead the Press Release
Earlier today, Saddiq al-Abbadi, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, providing and conspiring to provide material support to al-Qaeda, and using a machine gun in furtherance of those crimes. The guilty plea proceeding took place before United States District Judge Nicholas G. Garaufis. At sentencing, al-Abbadi faces a maximum of life imprisonment.
The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
“The defendant was a high-level al-Qaeda operative with ties to the terrorist group’s senior leadership in both Pakistan and Yemen. He fought in battles against U.S. troops in Iraq and Afghanistan, tried to kill U.S. troops in Afghanistan by luring them to a compound rigged with explosives, and helped an American citizen gain entry to al-Qaeda,” stated Acting United States Attorney Currie. “We stand resolute in our commitment to bring to justice those who would try to harm members of our military or who assist al-Qaeda’s efforts to kill Americans at home or abroad.”
“With the guilty plea entered today, Saddiq al-Abbadi will be held accountable for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division.”
“With today’s guilty plea, Al-Abbadi admitted to directly supporting the mission of a designated terrorist organization through planning an operation designed to kill U.S. forces and for engaging in recruitment efforts on behalf of al-Qaeda,” said FBI Assistant Director in Charge McCabe. “This plea is due in no small part to the many FBI Special Agents, intelligence analysts, and linguists from the Washington and New York Field Offices as well as our interagency and international partners who spent countless hours investigating terrorism actors and al-Abbadi’s actions. The FBI will not rest until we find and hold accountable those who provide support to terrorist groups and ensure that they are brought to justice.”
According to court filings, al-Abbadi traveled from his home country of Yemen to Iraq where, from approximately late 2005 through early 2007, he fought alongside al-Qaeda affiliated battalions against U.S. troops stationed in Iraq.
In early 2008, al-Abbadi traveled to the Federally Administered Tribal Areas (“FATA”) of Pakistan in order to fight for al-Qaeda in Pakistan and Afghanistan. While in the FATA, al-Abbadi – who had longstanding ties to senior members of al-Qaeda’s Yemen-based affiliate, known as al-Qaeda in the Arabian Peninsula or AQAP – engaged directly with senior al-Qaeda leadership in Pakistan, including Sheikh Saeed al-Masri, at the time the third-ranking member of al-Qaeda.
During late spring and summer 2008, Al-Abbadi crossed from Pakistan into Afghanistan for the purpose of fighting and killing members of the United States military stationed in Afghanistan. In June 2008, he planned an operation designed to lure U.S. forces to a compound in Ghazni, Afghanistan, that was rigged with explosives set to detonate upon their entry. When U.S. forces arrived at the compound, they found rocket-propelled grenades and artillery rounds littered about. One soldier observed wiring running from the exterior gate to the inside of the compound and recognized the trap. The military evacuated and subsequently leveled the compound.
In addition to fighting against the U.S. military, al-Abbadi used his connections with al-Qaeda’s leadership to help U.S. citizen Bryant Neal Vinas gain entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island in the hopes of joining al-Qaeda and fighting against U.S. military forces in Afghanistan. As a result of al-Abbadi’s assistance, Vinas was allowed to join al-Qaeda. After participating in al-Qaeda’s military training program, Vinas developed a plan with senior al-Qaeda external operations leadership to conduct an attack on the Long Island Railroad in New York. Vinas was arrested before he could carry out this attack.
The case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad, Michael P. Canty, and Douglas M. Pravda, are in charge of the prosecution, with assistance provided by Trial Attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.
The Defendant:
SADDIQ AL-ABBADI
Age: 40
Nationality: Yemeni
E.D.N.Y. Docket No. 15-CR-124 (NGG)
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead 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 Antwan Garner, 30, of Buffalo, NY, pleaded guilty to conspiracy 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 George C. Burgasser, who is handling the case, stated that as an associate of the Schuele Boys Gang, the defendant purchased cocaine from co-defendants Michael Robertson and Antwon Steward. Garner then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Garner was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the fifth to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Pyramid Scheme Promoter Arrested on Visa Fraud ChargesRead the Press Release
BOSTON – A Florida man involved in several pyramid schemes was arrested on visa fraud charges after entering the United States from a trip abroad.
Sanderley Rodrigues De Vasconcelos, 43, of Davenport, Fla., was charged in U.S. District Court in Boston on Saturday, May 16, 2015, with fraud and misuse of visas, permits, and other documents. He made an initial appearance in Newark, NJ on May 18th, and was detained pending meeting conditions of release set by a federal magistrate judge there.
According to the charging documents, Rodrigues presented his green card to Customs and Border Protection Officers on May 3, 2015, at Logan Airport, knowing that he obtained that document based upon false statements to immigration officials. Rodrigues was arrested at Newark International Airport when he returned to the United States from Israel on May 16, 2015, after a trip abroad. Following a detention hearing on Thursday, May 21, 2015, in Newark, NJ, Rodrigues was released on conditions, including the surrender of his passport and the passports belonging to his family members, a $200,000 secured bond, 24-hour electronic monitoring, and home confinement.
In 2006, Rodrigues first came to the attention of federal authorities when the Securities and Exchange Commission (SEC) sued him for owning and operating Universo Fone Club and defrauding investors of millions of dollars. More recently, Rodrigues was cited by the SEC for his role in promoting TelexFree, a pyramid scheme that purported to sell a voice over Internet service. In July 2014, the owners of TelexFree, James Merrill and Carlos Wanzeler, were charged with conspiracy to commit wire fraud and several counts of wire fraud.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburg Bay Point Resident Sentenced to 41 Months for Tax Fraud SchemeRead the Press Release
OAKLAND – Charles S. Moore was sentenced to 41 months in prison and ordered to pay restitution of $78,353 to the United States for his role in a false tax refund scheme, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Moore, of Pittsburg Bay Point, Calif., pleaded guilty on January 16, 2015, to aiding and assisting in the preparation of false tax returns, in violation of 26 U.S.C. § 7206(2). In his plea agreement, Moore admitted that while he was a resident at a drug and alcohol rehabilitation facility, another resident asked him to assist with filing false tax returns. As payment for teaching him the false tax refund scheme, Moore paid the resident with coffee and cigarettes.
Moore realized that if he completed the Form 1040EZ a certain way, he would maximize a fraudulent tax refund, regardless of whether the people for whom the form was prepared earned money or paid taxes. After Moore successfully implemented the scheme once with his nephew, he began preparing false tax returns for people who had no reported income, no student loans, or unpaid child support. Moore usually took a portion of the fraudulent tax refunds as a fee. He prepared and filed no less than 242 tax returns for acquaintances and friends for the 2007 through 2010 tax years, claiming refunds of $166,462. The 41-month sentence was imposed by Judge Jon S. Tigar. Moore is currently in custody.
Assistant U.S. Attorneys Thomas Moore and Jose A. Olivera prosecuted this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Pharmacist's Drug Conviction Results in 63 Month Prison TermRead the Press Release
PHILADELPHIA - Bevis Vanterpool, 37, of Philadelphia, was sentenced today to 63 months in prison for conspiring to distribute oxycodone, a Schedule II narcotic controlled substance, and money laundering. Between May 2010 and December 19, 2011, Vanterpool owned and operated TraceMark Pharmacy at 4839 North Broad Street in Philadelphia, where he was the sole pharmacist. During that period, Vanterpool accepted and filled nearly 5,000 fraudulent prescriptions for at least 447,761 mg. of oxycodone. Vanterpool knew that the prescriptions were forged and fraudulent, as they had not been written by physicians. Vanterpool laundered at least $1,180,000 in proceeds from his illegal activity.
In addition to the prison term, U.S. District Court Judge Mary A. McLaughlin ordered a fine of $1,000, a special assessment of $200, and three years of supervised release to follow imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration Diversion Unit, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Mary E. Crawley.
Passaic County, New Jersey, Man Sentenced to 78 Months in Prison for Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Wayne, New Jersey, man was sentenced today to 78 months in prison for sharing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Manuel Fernandez, 34, previously pleaded guilty before U.S. District Judge Jose L. Linares to one count of an indictment charging him with distributing images of child pornography over the Internet. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Fernandez admitted that between March 2011 and January 2012, he was a member of an online peer-to-peer file sharing network. Fernandez also admitted he made images and videos of child pornography available for other members to download from his “shared” folder. On March 24, 2011, an undercover law enforcement agent successfully downloaded multiple images and videos of child sexual abuse from Fernandez’s computer.
On Jan. 25, 2012, federal law enforcement agents executed a search warrant at Fernandez’s residence. The agents recovered a 1-terabyte hard drive and a 250-gigabyte computer tower, both of which contained numerous images and videos of minor children being sexually abused.
As part of his guilty plea, Fernandez agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
In addition to the prison term, Judge Linares sentenced Fernandez to serve five years of supervised release.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Chris Adams Esq. Holmdel, New JerseyOwner of Los Angeles Medical Supply Company Sentenced to Seven Years in Prison for $3.3 Million Medicare Fraud SchemeRead the Press Release
The former owner of a Los Angeles-based medical supply company was sentenced today to seven years in prison for his role in a fraud scheme that resulted in $3.3 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office made the announcement.
Hakop Gambaryan, 55, of East Hollywood, California, was convicted following a jury trial on March 20, 2015, of four counts of health care fraud. In addition to the prison sentence, U.S. District Court Judge Otis D. Wright II of the Central District of California ordered Gambaryan to pay $1,740,009 in restitution.
At trial, the evidence showed that Gambaryan, the former owner of a durable medical equipment supply company, fraudulently billed more than $3 million to Medicare for durable medical equipment, such as expensive power wheel chairs, that was not medically necessary. Medicare paid approximately $1.7 million on those fraudulent claims.
The evidence demonstrated that between March 2006 and December 2012, Gambaryan paid cash kickbacks to medical clinics for fraudulent prescriptions for durable medical equipment, which the patients did not need. Gambaryan then used these prescriptions to bill Medicare for the unnecessary equipment.
According to evidence presented at trial, Gambaryan personally delivered power wheelchairs to many beneficiaries who were able to walk without assistance. In one instance, Gambaryan carried a power wheelchair up a flight of stairs for a woman who lived in a second floor apartment with no elevator. In another instance, the power wheelchair would not fit inside the beneficiary’s home, so Gambaryan put it in the beneficiary’s garage.
The evidence also demonstrated that Gambaryan generated false documentation to support the fraudulent claims, including fake home assessments when no home assessments actually occurred. In addition, Gambaryan photocopied beneficiaries’ signatures hundreds of times to create the appearance that the beneficiaries consented to ongoing equipment rentals, when they did not. Indeed, at least two of the beneficiaries had passed away prior to the date they supposedly signed the rental agreements.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. The case was prosecuted by Trial Attorneys Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Opelousas man sentenced to 15 months in prison for leaving Lake Charles halfway houseRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that an Opelousas man pleaded guilty and was sentenced to 15 months in prison for leaving a halfway house without permission.
Christopher James Courvelle, 45, of Opelousas, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of escape from custody. He was also sentenced to three years of supervised release. According to the guilty plea, Courvelle left a federally-approved halfway house in Lake Charles on March 3, 2015 without notifying those in charge. The U.S. Marshals Service was notified and began an investigation. Courvelle was located at a bus depot near the Road King truck stop in Lake Charles and was arrested on March 4, 2015. He had been placed in the halfway house after being convicted in June of 2012 for failing to update his registration pursuant to the Sex Offender Registration Act. He had also previously been convicted of simple rape, which requires a lifetime of sex offender registration.
The U.S. Marshals Service and U.S. Bureau of Prisons investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Howard C. Parker prosecuted the case.
New York Securities Lawyer and Owner of Registered Broker-Dealer Sentenced to 18 Months in Prison for Orchestrating Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – A New York corporate and securities lawyer was sentenced today to 18 months in prison for orchestrating a stock market manipulation scheme designed to artificially inflate the stock price of two publicly traded companies through manipulative trading and other fraudulent means, U.S. Attorney Paul J. Fishman announced.
Adam S. Gottbetter, 46, of New York and Boca Raton, Florida, pleaded guilty on Sept. 3, 2014, before U.S. District Judge Jose L. Linares to conspiracy to commit securities and mail fraud. Judge Linares imposed the sentence today in Newark federal court.
Two other men, Kenneth David Stevenson, 55, and Mitchell G. Adam, 47, both of Vancouver, Canada, have also been charged for their roles in the scheme. Stevenson pleaded guilty before Judge Linares on Dec. 9, 2013, to conspiracy to commit securities and mail fraud. He is scheduled to be sentenced on May 28, 2015 at 10 a.m. Adam was charged by criminal complaint on May 15, 2015, with conspiracy to commit securities, mail and wire fraud. He was arrested on May 20, 2015, at the Houston George Bush Intercontinental Airport in Texas.
According to the documents filed in these cases and statements made in court:
Gottbetter was a licensed attorney and the managing partner of Gottbetter & Partners LLC, a New York-based securities and corporate law firm, which he founded. Gottbetter marketed himself as an expert in taking private companies public through a reverse merger process, which he referred to as an “Alternative Public Offering,” or his trademarked “Gottbetter Public Offering.” Gottbetter owned Gottbetter Capital Markets LLC, a registered broker-dealer, and Gottbetter Capital Group Inc., a firm which provided a variety of corporate transactional services to its clients.
Between June 2012 and November 2013, Gottbetter directed a scheme to manipulate the price and trading volume of Dynastar Holdings Inc. (DYNA), a social media company headquartered in Louisville, Kentucky, and HBP Energy Corp. (HBPE), a developmental stage company based in Houston, Texas, to create the false appearance of market interest in, and to artificially inflate the value of, both securities. Gottbetter conspired with others to manipulate the price and volume of these securities to, among other things, make the companies more attractive to potential investors in various private offerings that Gottbetter would broker and which would generate substantial fees and other illicit gains to Gottbetter, his law firm and his broker-dealer, and to sell the stocks at the fraudulently inflated prices to the investing public for a profit.
Gottbetter and his conspirators obtained and concealed control of a significant portion of free-trading shares of DYNA and HBPE stock, agreed to fraudulently inflate the price and trading volume of the stocks through a variety of means – including disseminating false or misleading promotional materials to the investing public and engaging in manipulative trading of the stocks to create the appearance of market interest – and planned to sell the stocks at the fraudulently inflated prices or use the fraudulently inflated value of the companies to solicit private investments, thereby profiting at the expense of the investing public.
To assist in manipulating the stock of DNYA and HBPE, Gottbetter recruited a stock promoter and trader who owned a broker-dealer in New York and who claimed to have experience in various manipulative and fraudulent trading strategies. Unbeknownst to Gottbetter, however, this individual (“the CW”) was cooperating with law enforcement. During the DYNA manipulation, Gottbetter instructed the CW to create “volume” in DYNA’s stock so that the stock would eventually trade “on its own.” Gottbetter agreed that the CW would trade DYNA stock among various accounts that the CW controlled to “build a chart” for DYNA stock – in other words, to create the fake appearance of legitimate trading activity, which would be touted as “market” activity to unsuspecting investors in a later promotional mailer. Gottbetter reviewed a draft of a promotion that the CW created in connection with the DNYA scheme. The mailer contained numerous materially false and misleading statements and material omissions. During a meeting with the CW, Gottbetter was offered a copy of the mailer, but refused to keep it, stating that he “never saw it.”
Later in the scheme, the CW informed Gottbetter that the CW had developed an algorithmic trading system, or black box, for the purpose of manipulating the price of stocks. The CW controlled 32 online brokerage accounts that were opened in the names of foreign nominees, and that a computer program that the CW created and controlled could trade between those accounts to create the appearance of massive volume in any stock. Gottbetter directed the CW to use the black box in connection with the DYNA scheme
In July 2013, before Gottbetter and the CW had launched the DYNA promotional campaign and completed the manipulative trading of DYNA’s stock, Gottbetter recruited the CW to participate with him, Stevenson and Adam in another, more profitable and elaborate market manipulation scheme involving HBPE. Like DYNA, Gottbetter and others conspired to manipulate the price and volume of HBPE’s stock through a variety of fraudulent means, including manipulative trading through the CW’s black box. Gottbetter, Stevenson and Adam also planned an elaborate promotional campaign that would take place after HBPE’s stock was manipulated to a certain level, including international “call rooms,” listing HBPE’s stock on foreign exchanges, a “road show” and other activities. Law enforcement intervened before the HBPE promotion could take place.
Nonetheless, Gottbetter, Stevenson and Adam expected to realize significant profits by selling HBPE stock at fraudulently inflated prices. Gottbetter also anticipated generating substantial fees to his law firm and broker-dealer in connection with financing deals that he would close for HBPE after the stock price had been artificially inflated to certain levels. In one consensually recorded conversation with the CW, Gottbetter commented that the only other way to make as much money as he and his conspirators expected to make manipulating HBPE’s stock would be by “robbing a bank.”
In addition to the prison term, Judge Linares sentenced Gottbetter to one year of supervised release, fined him $60,000 and ordered him to forfeit $344,967. Gottbetter also forfeited $4,595,333 to the U.S. Securities and Exchange Commission.
The conspiracy counts with which Adam and Stevenson are charged each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentence and the related charges against Stevenson and Adam. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Andrew Calamari.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
The charges and allegations contained in the complaint against Adam are merely accusations, and he is presumed innocent unless and until proven guilty.
New Orleans Man Sentenced for Bank RobberiesRead the Press Release
In Austin today, a federal judge sentenced 39-year-old Derrick Terrill Nix of New Orleans, LA, to two six-year prison terms to run concurrent for an attempted bank robbery and a bank robbery in North Austin, announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
In addition to the prison terms, U. S. District Judge Lee Yeakel ordered that Nix pay $5,262 restitution and be placed on supervised release for a period of three years after completing his prison term.
On February 20, 2015, Nix pleaded guilty to one count of attempted bank robbery and one count of bank robbery. By pleading guilty, Nix admitted that on May 12, 2014, he attempted to rob a Capital One Bank at 9602 N. Lamar Blvd. Nix pulled a handgun from a backpack and demanded money. When Nix realized the teller was behind bullet proof glass, Nix fled by vehicle. On that same day, Nix committed the second robbery at a Chase Bank located at 4601 N. Lamar Blvd. Nix ordered everyone in the bank to get on the floor and demanded money while holding guns in each of his hands. Nix fled with $5,262 in stolen money.
The case resulted from a joint investigation by the FBI, Austin Police Department, and the Brenham Police Department. Assistant United States Attorney Elizabeth Cottingham prosecuted this case on behalf of the Government.
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Montgomery County Man Pleads Guilty to Deceptive Telemarketing Fraud Scheme that Defrauded Clients of $2.9 MillionRead the Press Release
Greenbelt, Maryland - Richard A. Brennan, age 42, of Clarksburg, Maryland, pleaded guilty today to two counts of mail fraud, and to making a false statement on a tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement, until January 2009, Brennan was a licensed attorney in Maryland. In late 2005 or early 2006, Brennan established the Law Offices of Richard A. Brennan (LORAB) to perform debt settlement services. “Debt settlement” differed from “debt management” services. In debt management, debtors continue to make payments on accounts on negotiated terms, while debt settlement involves allowing debt accounts to go delinquent and making a lump sum offer to settle the account. While debt management services – and the fees that could be charged customers – were closely regulated in Maryland, debt settlement services were not.
The Maryland Attorney General’s Office and the Maryland Attorney Grievance Commission both received a high number of complaints from Brennan’s customers reporting that they were deceived by telemarketers who convinced them of the high probability of success by engaging Brennan and his debt settlement program, but who reported seeing little success in having their debts resolved. When the clients complained to LORAB, their calls frequently went unreturned and they were typically told their payments would not be refunded as they constituted Brennan’s attorney fees.
In October 2007, Brennan agreed with the Maryland Attorney General’s Office to cease engaging in a number of business practices, including misuse and commingling of his clients’ funds. Despite this agreement, Brennan continued to recruit new clients without making the disclosures required under the agreement with the Attorney General’s office, and omitting any mention of his restrictions under the agreement, which included a requirement that he maintain a surety bond in order to continue to provide debt settlement services.
To evade the restrictions in the agreement, Brennan changed his business entity name several times in quick succession, to include doing business for a few months as the Capital Law Group, then the Frederick Law Group and later as theMetro Law Group. Brennan did so in an effort to keep new clients from researching the large numbers of complaints posted online about his practices, and also instructed telemarketers working for him to deny the new entities’ relationship with Richard Brennan.
In January 2009, Brennan surrendered his license to practice law by signing a joint petition with the Attorney Grievance commission. In that document, Brennan admitted that he had used client trust money for purposes other than its intended use. In June, 2009, Brennan appeared before the Circuit Court of Frederick County and acknowledged that he continued to debit funds from client bank accounts even after his surety bond had been revoked. Brennan was ordered to pay a $2.58 million money judgment in restitution to clients from whom he collected money up until October 2007. The Court also briefly jailed Brennan for contempt after he failed to provide the Attorney General’s Office a list of clients or accounting for funds as he had promised.
Even after losing his license to practice and this judgment, Brennan continued to attempt to defraud debt clients. On November 6, 2009, Brennan mailed an existing Frederick Law Group client a letter under the business entity name “International Debt Solutions.” In that letter, Brennan acknowledged that Frederick Law Group’s “web site and call center have been closed” “[d]ue to unforeseen circumstances” and attempted to dissociate himself with that firm by claiming that that “[Frederick Law Group] has forwarded us your information.” Brennan asked the client to fill out a new representation agreement, power of attorney, and electronic funds transfer authorization, which the victim returned by mail to an address two houses away from Brennan’s.
Brennan’s debt management fraud scheme caused the loss of approximately $2.9 million to his clients between October 18, 2007, and 2010, and involved more than 250 victims.
Brennan also admitted that he filed false tax returns in 2006 and 2007, underreporting his income in both years. For example, in 2007, Brennan reported an adjusted gross income of negative $576,273.10 when he had unreported business receipts that year of at least $9,229,802. Additionally, Brennan received a total of $5,387 in tax refunds based on his knowingly false returns submitted for 2006 and 2007. Brennan filed no tax returns for the tax year 2008, despite receiving over $6 million into business bank accounts he controlled. The total approximate tax loss to the United States is $297,087.
Further, Brennan knowingly possessed unregistered machineguns and short-barreled rifles and also engaged in the unlicensed manufacture of the machineguns. Specifically, in February 2011, a search warrant executed at Brennan’s home in Clarksburg, Maryland, yielded evidence that Brennan unlawfully converted 10 semiautomatic rifles into fully automatic weapons, and modified another rifle so that it had a barrel length of less than six inches. Brennan failed to register those modified weapons, as required by law.
Brennan faces a maximum sentence of 20 years in prison for mail fraud and a maximum of three years in prison for the tax charge. U.S. District Judge Theodore Chuang has scheduled sentencing for September 3, 2015, at 10:15 a.m.
United States Attorney Rod J. Rosenstein praised ATF, U.S. Postal Inspection Service, IRS-Criminal Investigation, and the Maryland Attorney General’s Office for their work in the investigation and thanked the Maryland Attorney Grievance Commission for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and Joseph R. Baldwin, who are prosecuting the case.