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Tuesday 19 May 2015
Methamphetamine Distribution Conspirators SentencedRead the Press Release
EUGENE, Ore. – Raymundo Felix-Rodriguez, 42, of Lane County, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to serve 97 months in prison for conspiracy to distribute 50 grams or more of methamphetamine. Following his release from prison, Felix-Rodriguez will be on supervised release for five years. On December 18, 2014, co-conspirator Samuel Sanchez-Campa was sentenced to 57 months in prison, and on September 4, 2014, co-conspirator Angela Luna-Guillen was sentenced to 24 months in prison.
A long-term investigation by the DEA revealed that Felix-Rodriguez sold methamphetamine to Sanchez-Campa and others, who then resold the methamphetamine. Luna-Guillen facilitated the conspiracy by storing methamphetamine and transferring drug proceeds. In 2011, a DEA undercover agent purchased methamphetamine from Felix-Rodriguez on multiple occasions, and ultimately determined that Felix-Rodriguez bought methamphetamine in California and drove it back to Oregon.
On January 8, 2012, Felix-Rodriguez was driving to Oregon when he was stopped in Redding, California. The vehicle was searched and approximately three pounds of methamphetamine were located, leading to his arrest. Sanchez-Campa and Luna-Guillen were later charged and arrested.
This case was investigated by the Eugene Resident Office of the DEA. Assistant U.S. Attorneys Jeffrey Sweet and Amy Potter prosecuted the case.
Michael Nash Sentenced to 72 Months ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Michael Nash, 40, of Gary, Indiana was sentenced today for conspiracy to defraud the United States in respect to filing false federal tax returns claims and aggravated identity theft.
Nash was sentenced to 6 years (72 months) imprisonment, 3 years of supervised release and ordered to pay $739,305.00 in restitution.
According to documents filed in this case, Nash filed almost 200 false tax returns for the year 2009 by claiming a larger earned income credit for his clients. This caused the IRS to issue larger refunds than should have been paid. Nash then prepared 87 tax returns for the year 2008 using many of his clients’ personal information without their knowledge. Nash defrauded the IRS in the total amount of $739,305.00.
This case was investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant United States Attorney Gary T. Bell.
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Logan County man pleads guilty to mailing threatening lettersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Kelly Gerald Crosby, 32, from Logan County, West Virginia, pleaded guilty in federal court in Charleston to mailing threatening communications. On September 8, 2014, Crosby was incarcerated at the Southwestern Regional Jail on a state charge related to using minors to film sexually explicit conduct. While incarcerated, Crosby mailed a letter delivered to the Logan County Courthouse, in which Crosby made threats to workers, public officials and others in the Logan County area. The letter included threats to “kill, rape and make suffer” the individuals he identified in the letter.
Crosby faces up to 5 years in federal prison. He is scheduled to be sentenced on August 19, 2015.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
The investigation is being conducted by the United States Postal Inspection Service, United States Secret Service, and Logan County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
Jury Recommends Death Sentence for Boston Marathon BomberRead the Press Release
Boston – After deliberating for 14 hours over three days, a federal jury in Boston recommended that Dzhokhar A. Tsarnaev be sentenced to death on Friday, May 15, 2015, for his role in using weapons of mass destruction at the 2013 Boston Marathon. By law, the judge must follow the jury’s recommendation and sentence Tsarnaev to death. A sentencing date has not yet been set.
The jury recommended that Tsarnaev, 21, a U.S. citizen formerly residing in Cambridge, Mass., be sentenced to death on six of the seventeen capital counts in the indictment. On April 8, 2015, the same jury convicted Tsarnaev on all 30 counts of the indictment, which charged him with use of a weapon of mass destruction resulting in death and conspiracy; bombing of a place of public use resulting in death and conspiracy; malicious destruction of property resulting in death and conspiracy; use of a firearm during and in relation to a crime of violence; use of a firearm during and in relation to a crime of violence causing death; carjacking resulting in serious bodily injury; interference with commerce by threats or violence; and aiding and abetting. The counts on which the jury recommended a death sentence all relate to the pressure cooker bomb Tsarnaev planted and detonated in front of the Forum restaurant, killing Lingzi Lu and Martin Richard.
Beginning no later than February 2013, Tsarnaev and his brother, Tamerlan Tsarnaev, conspired to detonate improvised explosive devices (IEDs), bomb places of public use, and destroy property. On April 15, 2013, during the 117th running of the Boston Marathon, the brothers placed two pressure cooker bombs filled with shrapnel among the crowds of spectators on Boylston Street and then detonated the bombs seconds apart, killing three people, maiming 17, and injuring hundreds more. The brothers fled the scene in the chaos of the destruction. Three days later, on April 18, Tsarnaev and his brother, armed with five IEDs and a Ruger semiautomatic pistol that Tsarnaev had borrowed from a friend, drove to the MIT campus where they shot and killed MIT Police Officer Sean Collier and attempted to steal his service weapon. Approximately 20 minutes later, they carjacked a Mercedes SUV, kidnapped the driver, and forced him to drive to a gas station, robbing him of $800 along the way. After the driver managed to escape, the brothers drove to Laurel Street and Dexter Avenue in Watertown, where they exploded additional IEDs and engaged in a firefight with Watertown police officers. During the stand-off, Tsarnaev drove the carjacked vehicle at three officers, attempting to kill them, and ran over his brother as he escaped. Tsarnaev hid in a winterized boat in a Watertown backyard until his apprehension and arrest the following night. His brother died at the scene.
United States Attorney Carmen M. Ortiz; John Carlin, Assistant Attorney General of the Justice Department’s National Security Division; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement.
This investigation was conducted by the FBI’s Boston Division, Boston Police Department, Massachusetts State Police, Department of Justice’s National Security Division, and member agencies of the Boston Joint Terrorism Task Force, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, U.S. Marshals Service, Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the MIT Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case is being prosecuted by Assistant U.S. Attorneys William Weinreb, Aloke Chakravarty, and Nadine Pellegrini of the U.S. Attorney’s Office for the District of Massachusetts's Anti-Terrorism and National Security Unit, and Trial Attorney Steve Mellin of the Justice Department’s Capital Case Section. Vital assistance was also provided by attorneys from the National Security Division’s Counterterrorism Section and the Criminal Division’s Capital Case Section.
Jury Finds Defendant Guilty in $11.25 Million Investor Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal jury found Troy Stratos, 49, formerly of Los Angeles, guilty today of four counts of wire fraud and two counts of money laundering, in a scheme to defraud, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, beginning in December 2010 and continuing through February 2012, Stratos engaged in a scheme to defraud a financial manager in Pennsylvania of approximately $11,250,000. Tim Burns was in the market to buy Facebook stock, pre-IPO (initial public offering), for some of his clients in 2011. Stratos, who used the alias “Ken Dennis,” because his own name had numerous negative postings on the Internet, told Burns that he represented Carlos Slim, one of the wealthiest individuals in the world. Stratos claimed that Carlos Slim was in the process of purchasing a large block of Facebook shares, and Stratos offered to sell to Burns favorably priced Facebook shares that were in excess of what Carlos Slim was purchasing. Stratos also claimed to be connected with insiders at Facebook, including Mark Zuckerberg, and Facebook’s CFO. Stratos promised increasingly larger amounts of Facebook stock starting at approximately two million shares and up to 40 million shares. Based on the representations by Stratos, Burns sent three wire transfers totaling $11,250,000 to purchase the Facebook stock. The first wire transfer was sent to the client-trust account at Venable LLP, which was the law firm that Stratos had retained. The subsequent wire transfers were sent to bank accounts that Stratos controlled.
Throughout the scheme, Stratos assured Burns that the deal would close at any moment, often promising that the “papers” were about to be signed. Alternatively, Stratos offered to refund to Burns his deposit, even within a few days, but warned Burns that he would regret missing the opportunity to make money.
On December 20, 2011, the Federal Bureau of Investigation arrested Stratos in Los Angeles for a separate fraud scheme. Stratos, through text messages and a telephone call, continued to tell Burns that the deal was real and that he could refund Burns’s money. By this time, Stratos had spent nearly all of the $11.25 million.
The maximum statutory penalty for mail and wire fraud is 20 years in prison and a fine of up to twice the gain or loss from the fraud. The maximum statutory penalty for money laundering is 10 years in prison and a $10,000 fine or twice the value of the criminally derived property. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stratos is scheduled for trial for a separate scheme on October 5, 2015. According to the charges relating to the separate scheme, Stratos allegedly defrauded a woman of at least $7 million by convincing her that he would manage the proceeds of her divorce by investing them overseas where they would earn a high rate of return. These remaining charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Todd Pickles and Jared Dolan are prosecuting the case.
Indianapolis man charged in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today an Indianapolis man was charged with mail fraud in a scheme where over $1 million was stolen from a local business. Ryan M. King, 43, Indianapolis, was charged by an Information today with wire fraud in an investigation conducted by the Federal Bureau of Investigation.
“Financial crimes affect us all,” said Minkler. “They remove billions of dollars from investors and often negatively impact our economy. Mr. King will no longer be lining his pocket with others people’s money.”
King was employed as an accounting manager with the Carrier Corporation, a subsidiary of United Technologies Corporation (UTC). The Carrier Company operates its offices on West Morris Street in Indianapolis. From February 2013, through February 2015, King was entrusted to oversee UTC’s financial transactions including cost accounting, payroll and financial statements. In June 2013, King opened an unauthorized personal checking account in the name of “Carrier Services” at Bank One.
King communicated with several UTC vendors using his business email account, instructing them to write checks for outstanding invoices to Carrier Services. King would then deposit the checks into his personal account making the vendor think their payment was going to UTC. He further communicated with other vendors by sending inflated invoices through facsimile transmissions instructing them to wire transfer payment directly into the Carrier Services account. The government alleges that in total, the scheme defrauded victim companies of over $1,095,000.
W. Jay Abbott, Special Agent in Charge, stated, “The FBI will aggressively pursue those who commit financial fraud. It is a priority to the Bureau to protect the American public from these types of crimes. Those who contemplate conducting such criminal activity should know it will be vigorously investigated by the FBI.”
According to Assistant United States Attorney Cynthia J. Ridgeway, who is prosecuting this case for the government, King faces up to 20 years if convicted.
An Information is only a charge. All defendants are presumed innocent until proven guilty in federal court.
Independence Man Sentenced to 60 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for using a child victim to produce child pornography.
Morgan Littleton, 33, of Independence, was sentenced by U.S. District Judge Gary A. Fenner to 60 years in federal prison without parole, which is the maximum statutory penalty. The court also ordered Littleton to pay $5,350 in restitution to his victim.
On Jan. 5, 2015, Littleton pleaded guilty to two counts of using a 12-year-old victim to produce child pornography on two separate occasions in January 2013.
On April 29, 2013, an Independence police officer responded to a call related to a domestic assault. The officer contacted a woman who told him Littleton had grabbed and squeezed her throat, slammed her against the wall, and slapped her three times in the face because there was no sugar for his coffee. She also told the officer that several hours before the assault she had accidentally discovered evidence that Littleton was having a sexual relationship with a 12-year-old female, identified as Jane Doe.
The woman reported that she found several SD memory cards in a black canvas bag that belonged to Littleton. One of the cards contained a video of Littleton engaged in illicit sexual activity with the child victim. She did not report this immediately because Littleton did not allow her to use the phone or leave the residence. After the domestic assault, she convinced Littleton to allow her to walk to the store for more sugar. He agreed to let her go and she took Jane Doe with her to a convenience store. Once at the store she asked the store manager to contact the police.
Police officers executed a search warrant at Littleton’s residence, where he resided with three adult women, who referred to him as “Master,” in a polygamous BDSM relationship, as well as with Jane Doe and another minor female. Officers seized computers, cameras and digital media. They found 12 video segments on a memory card, some of which appeared to have been filmed in a hotel room between Jan. 18 and March 25, 2013. The videos depicted Littleton engaging in illicit sexual activity with Jane Doe.
In a forensic interview, the child victim reported that Littleton had been molesting her once or twice a week since November 2012. He sometimes promised her food if, or would not allow her to see her friends unless, she engaged in illicit sexual activity.
Littleton has been charged in Jackson County Circuit Court with four counts of deviate sexual intercourse with a person less than 14 years old, two counts of sexual exploitation of a minor and four counts of domestic assault.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Illinois Man Sentenced to Ten Years for Weapons OffenseRead the Press Release
A felon who possessed a firearm and ammunition was sentenced May 14, 2015 to ten years in federal prison.
Blake Maurer, age 24, of Freeport, Illinois, received the sentence after a February 6, 2015 guilty plea to one count of possession of a firearm and ammunition by a felon. At the guilty plea hearing, Maurer admitted that, on August 24, 2014, in Dubuque, Iowa, he possessed a firearm and ammunition. Maurer also admitted he was a convicted felon.
Maurer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Maurer was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a three-year term of supervised release.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque Police Department.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-1021.
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Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A woman who distributed heroin from her Huntington apartment pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Patricia Lynn Petrie, 51, entered a guilty plea in federal court in Huntington to maintaining a residence for the purpose of distributing heroin.
In August of 2012, agents with the Huntington FBI Drug Task Force observed Petrie on multiple occasions engaging in what appeared to be drug deals near her apartment at 1112 9th Street, Apartment 4 in Huntington. Agents stopped Petrie outside her apartment on August 23, 2012 and recovered a small quantity of heroin. Agents subsequently searched her apartment and recovered 33 individually wrapped bags of heroin. Petrie admitted as part of her plea that she intended to distribute the heroin seized by the task force agents.
Petrie faces up to 20 years in federal prison, and is scheduled to be sentenced on August 17, 2015.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Hampton Man Pleads Guilty to Receiving Child Pornography and Obstructing JusticeRead the Press Release
NEWPORT NEWS, Va. – Edward David Herbert, III, 34, of Hampton, Virginia, pleaded guilty today to charges of Receiving Child Pornography and Obstruction of Justice - Concealing Evidence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by District Court Judge Arenda Wright Allen.
Herbert, III, was indicted by a federal grand jury on March 9, 2015, in an eleven count indictment. Herbert faces a maximum penalty of 40 years in prison when sentenced. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, agents were able to determine that someone using a particular internet protocol address was sharing files. That online activity was then linked to Herbert’s residence. Agents executed a search warrant on Herbert’s home in Hampton, Virginia on December 4, 2014. However, Herbert had just moved to the Richmond, Virginia area and had taken his computer equipment with him. Herbert’s wife, still at the home in Hampton gave the agents written consent to search the new residence in the Richmond area. The agents travelled to his new address and found that his computer equipment was no longer in the residence. Herbert had been alerted to the fact that the FBI was searching for his computer and gave his computer to a relative to hide. In January 2015, that relative and their attorney turned the computer over to the FBI. The hard drive contained more than 14,000 images of child pornography
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Lisa R. McKeel is 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. 4:14cr68.
###Georgia Real Estate Investor Pleads Guilty to Bid Rigging and Fraud Conspiracies at Public Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges against Eric Hulsman were filed on March 27, 2015, in the U.S. District Court of the Northern District of Georgia in Atlanta. According to court documents, from at least as early March 6, 2007, and continuing at least until Dec. 6, 2011, in Fulton County, Georgia, and from at least as early as Jan. 2, 2007, and continuing at least until Jan. 1, 2008, in DeKalb County, Georgia, Hulsman conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions. Hulsman was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Fulton and DeKalb properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Homeowners and lenders in Fulton and DeKalb counties deserved free and fair public real estate foreclosure auctions,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “The defendant conspired with others to keep for themselves money that should have gone to those homeowners and lenders. The division remains committed to rooting out this kind of anticompetitive conduct at foreclosure auctions.”
The primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Fulton and DeKalb county public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and in some cases, the defaulting homeowner.
“Today’s guilty plea of another real estate investor engaged in unfair bidding practices is further evidence of the FBI’s support for the U.S. Department of Justice’s Antitrust Division in ensuring that public foreclosure auctions remain a level playing field for all,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “Anyone with information regarding such criminal activities as seen in this case should promptly call their nearest FBI field office.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine in an amount equal to the greatest of $250,000, twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.
Including Hulsman, eight cases have been filed as a result of the ongoing investigation being conducted by Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in Georgia should contact Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
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’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Georgia Man Sentenced in Securities Fraud SchemeRead the Press Release
CINCINNATI, Ohio - Charles H. Sheehan III a/k/a “Duke Sheehan,” 69, of Cumming, Georgia was sentenced to 36 months in prison for his role in a securities fraud scheme, in which a Cincinnati company lost $1 million in investment funds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down by Judge Timothy S. Black.
According to court documents, Sheehan represented himself to be the President and CEO of a purported charity called the Southern Foundation for the Advancement of Arts and Education, Inc., based in Georgia. Sheehan promised a Cincinnati-based real estate development group that he would invest $1 million from the group along with funds from the Southern Foundation in a series of purported investments. However, rather than investing the $1 million that had been wired to the defendant, Sheehan distributed the funds to himself and others.
Sheehan pleaded guilty in November 2014 to defrauding investors with respect to the Southern Foundation and the use of the investor funds. He was ordered to pay restitution in the amount of $1 million.
U.S. Attorney Stewart commended the investigation by the FBI, as well as Assistant United States Attorney Timothy Mangan, who represented the United States in this case.
Gates, N.Y., Man Sentenced to 69 Months in Prison for Four Bank RobberiesRead the Press Release
ERIE, Pa. - A former resident of Gates, New York, has been sentenced in federal court to 69 months in jail and ordered to make restitution of $16,370 on his convictions for bank robbery, United States Attorney David J. Hickton announced today.
United States District Judge Elizabeth A.Wolford of the Western District of New York imposed the sentence on Christopher Mancuso, 43.
According to information presented to the court, on Nov. 6, 2012, Mancuso robbed $10,060 from the M&T Bank at 1282 Long Pond Road, Greece, New York. On Dec. 18, 2013, Mancuso robbed $3,200 from the Chase Bank, located at 3917 Lake Avenue, Rochester, New York. On Jan. 17, 2014, Mancuso acted as the getaway driver during a robbery of Chase Bank, located at 2900 Dewey Avenue, Rochester, New York. Finally, on Jan. 31, 2014, Mancuso again acted as the getaway driver during a robbery at First Niagara Bank located at 12 Spencerport Road, Rochester, New York.
Prior to imposing sentence, Judge Wolfrod noted that Mancuso was on parole during each of the four bank robberies. Judge Wolford also took into account Mancuso’s lengthy criminal history dating back to his teenage years.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge Brian P. Boetig, the Gates Police Department, under the direction of Chief James VanBrederode, the Greece Police Department, under the direction of Chief Patrick Phelan, and the Rochester Police Department, under the direction Chief Michael Ciminelli for the investigation leading to the successful prosecution of Mancuso.
Former Worcester Day Care Provider Pleads Guilty to Lying in Connection to Investigation into Son’s Contact with Children in her CareRead the Press Release
BOSTON – A Worcester woman pleaded guilty yesterday in U.S. District Court in Worcester to making false statements to federal agents investigating federal child exploitation offenses.
Donna Bellanger, 49, pleaded guilty to making materially false, fictitious, or fraudulent statements or representations to federal agents.
On Feb. 7, 2014, Bellanger was interviewed by federal agents in connection with the arrest of her son, Brian Bellanger, on federal charges that he had, through online communications, enticed a minor to produce child pornography. Specifically, during the course of the execution of a federal search warrant, which uncovered evidence of her son’s crimes, federal agents interviewed Donna Bellanger about her knowledge of her son’s prior sexual assaults against children and whether her son had been allowed unsupervised contact with the children attending her in-home day care center.
In response to questions concerning prior allegations of sexual assault, Donna Bellanger truthfully informed agents that the in-home day care business had closed in June 2012 after allegations had arisen that her son had sexually assaulted a child attending the day care. Donna Bellanger failed to disclose to agents, however, that Brian had sexually assaulted a six-year-old neighbor in 2005. Further investigation revealed that Donna was well aware of that incident, that she and the mother of the child had spoken about the incident, and that the two had agreed that the matter would not be reported to police if Donna secured mental health counselling for her son.
In response to questioning, during two separate interviews, about whether Brian ever had unsupervised contact with the children in the day care before it closed in 2012, Donna Bellanger adamantly denied that her son ever had unsupervised access to the children. Donna Bellanger ultimately admitted in a third interview that the children would sometimes be allowed to play video games with Brian in his bedroom without supervision.
In interviews of former day care employees and acquaintances, agents developed evidence that Brian had been allowed to have unsupervised contact with the children attending the day care up and until its closure in 2012.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief Gary J. Gemme of the Worcester Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Grady of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Vice President at Traffic Safety Equipment Company Sentenced to 33 Months in Prison for Tax EvasionRead the Press Release
NEWARK, N.J. – A former vice president at a South Plainfield, New Jersey, traffic safety equipment business was sentenced today to 33 months in prison for evading income taxes on more than $2 million in withdrawals he made from the business for his own use, U.S. Attorney Paul J. Fishman announced.
Anthony R. Pecoraro, 52, of Colts Neck, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of tax evasion. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Pecoraro worked in 2008 and 2009 at Traffic Safety Service LLC, which provided traffic safety equipment and other traffic related services to local and state municipalities and private businesses. In connection with his position as a vice president, he had access to the company’s business account.
During his guilty plea proceeding, Pecoraro admitted he wrote checks for unauthorized cash withdrawals for a total of approximately $2,126,200 between June 2008 and December 2009, which he took for personal use. Pecoraro acknowledged he failed to report this money as taxable income for calendar years 2008 and 2009 in the amounts of $563,800 and $1,562,400, respectively, and that if he had reported the additional cash on his income tax returns he would have owed the government approximately $733,970.
In addition to the prison term, Judge Walls sentenced Pecocaro to serve three years of supervised release and ordered him to pay $1,241,604.91in restitution to the IRS.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly; and special agents with IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: John McDonald Esq., Somerville, New Jersey
Former Comptroller of Albuquerque Construction Company Pleads Guilty to Federal Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, announced today that Stephanie Pyle, 40, of Albuquerque, N.M., pleaded guilty to federal fraud and identity theft charges.
Pyle was charged on Feb. 10, 2015, in a 12-count indictment alleging that between Jan. 2010 and May 2014, Pyle used credit cards and account numbers in the name of a construction company without authorization and with the intent to defraud the company. Counts 1 through 6 of the indictment charged Pyle with defrauding the company of approximately $1,531,124.00 during a five-year period. Counts 6 through 12 of the indictment charged Pyle with using the identity of another person to commit the fraudulent acts charged in Counts 1 through 6. At the time of the offenses charged in the indictment, Pyle was employed as the comptroller for the Albuquerque-based construction company that was the victim of Pyle’s criminal conduct.
Today Pyle pled guilty to Counts 1 and 7 of the indictment. In her plea agreement, Pyle admitted that while working as the comptroller for the company that was the victim of her criminal conduct, she obtained a credit card in her name that was linked to a credit card account in the name of one of the co-owners of the company. Pyle changed the address on the account to reflect her home address so that her employer would not see the statements of expenditures made on the credit card. Using her position as comptroller, Pyle arranged for the company to pay off the credit card balances on a frequent basis. Pyle admitted making thousands of personal charges and purchases on the credit card that she was not authorized to make. She also admitted using the name and credit card account of her employer without authorization to facilitate her criminal conduct.
At sentencing, Pyle faces a statutory maximum penalty of ten years in prison for her conviction on Count 1 of the indictment, an access device fraud charge. She also faces a mandatory two years in prison that must be served consecutive to any sentence imposed on Count 1 for her conviction on Count 7, an aggravated identity theft charge. Pyle also will be required to pay restitution in an amount to be determined by the court which is currently estimated at $2,409,910.00.
The case was investigated by the Albuquerque office of HSI and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
Former Alabama State Employee Sentenced to Prison for Stealing Identities Used to Request over $7 Million in Tax RefundsRead the Press Release
A Phenix City, Alabama, resident and former state employee was sentenced to serve more than seven years in prison for her role in a stolen identity tax refund fraud ring, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Tamika Floyd was sentenced by U.S. District Court Judge W. Keith Watkins to serve 87 months in prison, three years of supervised release and ordered to pay $3,092,885 in restitution. Floyd pleaded guilty on Oct. 2, 2014, to one count of conspiracy to file false claims and one count of aggravated identity theft. Floyd’s co-conspirators, including Keisha Lanier, Tracy Mitchell, Latasha Mitchell, Talarious Paige and others, pleaded guilty on April 1 and are scheduled to be sentenced on Aug. 7.
According to court documents, between 2006 and 2014, Tamika Floyd worked at two Alabama state agencies located in Opelika, Alabama: the Department of Public Health and the Department of Human Resources. In both positions, she had access to the personal identifying information of individuals. Beginning in 2012, Floyd was approached by co-conspirator Lanier. As part of the scheme, Floyd stole names and personal information from the state agencies and provided the information to Lanier to be used to file false federal income tax returns. Most of the stolen identifying information consisted of names of teenagers. Lanier then provided the stolen information to co-conspirators Tracy Mitchell, Latasha Mitchell, Paige and others to use to file false tax returns. These co-conspirators filed more than 3,000 fraudulent federal income tax returns claiming more than $7.5 million in tax refunds using the stolen information provided by Floyd.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of Internal Revenue Service (IRS)-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Jury Finds Hartford Man Guilty of Crack Cocaine Trafficking OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on May 18, a federal jury in Bridgeport found TYSHAWN McDADE, also known as “S Dot” and “S Diddy,” 30, of Hartford, guilty of crack cocaine trafficking offenses.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the West Hell street gang who, along with his associates, distributed crack cocaine in the Westland Street area of Hartford.
The evidence at trial proved that McDADE conspired with Scott and others to distribute crack cocaine. On March 3, 2014, McDADE sold a quantity of crack to an individual working with law enforcement.
The jury found McDADE guilty of one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base. When he is sentenced by U.S. District Judge Jeffrey A. Meyer, McDADE faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life
Twenty-five individuals were charged as a result of the investigation. Scott and 22 other defendants previously pleaded guilty to various offenses. One defendant was shot and killed while his case was pending.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Federal Jury Convicts Bank Branch Manager of Armored Truck RobberyRead the Press Release
Greenbelt, Maryland – A federal jury convicted Valentina Elebesunu, age 49, of Temple Hills, Maryland late yesterday of conspiracy to commit an armed robbery, and robbery, of an armored truck.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
Elebesunu was the branch manager at a Bank of America located at 3413 Kenilworth Avenue in Hyattsville, Maryland. According to evidence presented at the five day trial, between mid-November and November 21, 2012, Elebesunu conspired with Damione Lewis – a security guard at the bank, Delacey Brown, Taurian Miller, Adriane Baldwin and Barrington Turner to rob an armored truck that serviced the bank branch. Trial evidence showed that Elebesunu had provided Lewis with inside information about the precise amount of funds scheduled to be picked up by the armored truck. Lewis, in turn, provided that information to the other co-conspirators.
On November 21, 2012, an armored car employee picked up $272,956.17 from the bank. Elebesunu and Lewis were working their respective jobs at the bank at the time. Elebesunu’s co-conspirators were in vans outside the bank. As the employee was taking the money from the bank to the armored truck, Elebesunu’s co-conspirators approached the employee brandishing firearms, took the money bags to their vans and drove away. The robbery proceeds were later divided between Elebesunu and her co-conspirators.
Elebesunu faces a maximum sentence of 20 years in prison for the conspiracy and the robbery counts. U.S. District Judge George J. Hazel has scheduled sentencing for August 25, 2015 at 10:00 a.m.
Damione Lewis, age 36, of New Carrolton, Maryland; Delacey Kinte Brown, age 38, of Landover, Maryland; and Taurian Devon Miller, age 30, and Adrian Baldwin, age 29, both of Washington, DC; and Barrington Turner, age 35, of Forestville, Maryland; have all pleaded guilty to their roles in the robbery. Lewis is scheduled to be sentenced on June 25, 2015 and the remaining four defendants have been sentenced to between 51 and 96 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department and other members of the Cross Border Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys William D. Moomau and Bryan E. Foreman, who are prosecuting the case.
East St. Louis Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
Duncan Lewis, 54, of East St. Louis, IL, was sentenced today in the United States District Court for the Southern District of Illinois to 18 months incarceration, followed by 5 years of supervised release on one count of Failure to Register as a Sex Offender, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Evidence showed that Lewis was convicted of Aggravated Criminal Sexual Assault and Home Invasion in Sangamon County, Illinois, in 1991, sentenced to prison, and released on mandatory supervised release in 2010. Upon release, Lewis was required to register as a sex offender due to the Aggravated Criminal Sexual Assault conviction. Lewis last registered as a sex offender on December 31, 2012 in the state of Missouri, but then moved to East St. Louis, Illinois and failed to register as a sex offender once in Illinois. On June 5, 2014, he was apprehended in East St. Louis, Illinois.
The case was investigated by the U.S. Marshals Service. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Drug Trafficking Organization Distributor Sentenced to 46 Months in Prison for Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A Brick, New Jersey, member of a large-scale drug trafficking organization was sentenced today to 46 months in prison for distributing heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Richard Durham, 28, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiring to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
In March 2014, 19 other alleged members of the drug trafficking organization of which Durham was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those 19 individuals, 14 have pleaded guilty.
According to documents filed in this case and statements made in court:
From November 2013 through March 2014, Durham conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. At his plea hearing, Durham admitted he possessed and distributed between 60 and 80 grams of heroin.
In addition to the prison term, Judge Sheridan sentenced Durham to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Scott Krasny Esq., West Trenton, New Jersey
Detroit man sentenced for heroin possessionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Steven Adams, age 47, of Detroit, Michigan, was sentenced today by United States District Court Judge Thomas E. Johnston to five months in federal prison, followed by three years of supervised release with the first five months of supervised release to be on home confinement. Adams previously pled guilty in February of 2015, admitting that heroin found in his possession at the Greyhound Bus Station in Charleston, West Virginia on June 16, 2014, was his and that he intended to transport it from Charleston to Detroit for distribution. Members of the Metropolitan Drug Enforcement Network Team (MDENT), conducting surveillance at the bus station on that date, discovered the heroin during a conversation with Adams.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Defendant Charged with Robbing Four Banks in One WeekRead the Press Release
PHILADELPHIA – Richard Cooper, 37, of Philadelphia, was indicted today on four counts of bank robbery, announced United States Attorney Zane David Memeger. The indictment alleges that Cooper robbed a TD Bank, located at 6635 Frankford Avenue, on April 11, 2015; alleges he robbed a Citizens Bank, located at 7327 Frankford Avenue, on April 13, 2015; alleges he robbed a TD Bank, located at 2267 East Butler Street, on April 15, 2015; and alleges he robbed TD Bank, located at 6635 Frankford Avenue, on April 17, 2015. The defendant faces a maximum possible sentence of up to 80 years in prison, up to 3 years of supervised release, up to $1,000,000 in fines, and $400 in special assessments.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jason Bologna.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Contractor and Bookkeeper Both Sentenced to Prison for Mortgage FraudRead the Press Release
PHOENIX – Yesterday, Paxton Jeffrey Anderson, 44, of Montevideo, Minn., and Joseph John Plany, 42, of Hutto, Texas, were sentenced by U.S. District Court Judge Susan R. Bolton to eight years and four years in prison, respectively, and ordered to pay $3,270,425 in restitution. Anderson and Planey were convicted of multiple counts of bank fraud in June, 2014, after a three-week jury trial.
“This is yet another reminder of the damage that mortgage fraud has caused to our community,” said U.S. Attorney John Leonardo. The defendants committed fraud at the expense of other homeowners and lenders, all in the name of greed.”
“The defendants orchestrated a multi-million mortgage fraud scheme that caused severe financial and emotional harm to numerous victim investors. Anderson was the mastermind who diverted hundreds of thousands of dollars to finance his love for horse racing and gambling, while Plany supervised the day-to-day details of the fraud and failed to alert unsuspecting borrowers to the illegal diversion of funds” said Dawn Mertz, Special Agent in Charge, Internal Revenue Service Criminal Investigation.
According to the evidence presented at trial, Anderson worked as a Phoenix-based general contractor between 2004-2007. During that time, and with the assistance of his bookkeeper Plany, Anderson made false representations to lenders to obtain construction loans for borrowers. Anderson used some of his friends and family as the borrowers for these fraudulently acquired loans. Unbeknownst to the borrowers, Anderson and Plany forged and altered draw requests, and other documents, to withdraw money from the construction loans. Anderson and Plany would use the monetary draws for their own personal expenses instead of using the funds to construct homes for the borrowers. Some of these personal expenses included the purchase of racehorses and trips to the Kentucky Derby. As a result of the fraud, many borrowers were forced into bankruptcy because their homes were never completed and were foreclosed upon by lenders.
The investigation in this case was conducted by the Internal Revenue Service Criminal Investigation, U.S. Postal Inspection Service, and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Kevin M. Rapp and Monica B. Klapper.
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Continuance Ordered in U.S. V. Baroni and KellyRead the Press Release
NEWARK, N.J. – Upon the joint application of the government and defense counsel, U.S. District Judge Susan D. Wigenton today issued a continuance order in the case of U.S. v. William E. Baroni Jr. and Bridget Anne Kelly.
The order sets a new trial date of Nov. 16, 2015, and sets out a schedule for pretrial motions. The order is attached.
baroni_-_kelly_continuance_order.pdf (106.23 KB)
Chinese Professors Among Six Defendants Charged with Economic Espionage and Theft of Trade Secrets for Benefit of People’s Republic of ChinaRead the Press Release
Chinese Professors Alleged to Have Stolen Valuable Technology from Avago Technologies and Skyworks Solutions to Benefit a PRC University
On May 16, 2015, Tianjin University Professor Hao Zhang was arrested upon entry into the United States from the People’s Republic of China (PRC) in connection with a recent superseding indictment in the Northern District of California, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Melinda Haag of the Northern District of California and Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division.
The 32-count indictment, which had previously been sealed, charges a total of six individuals with economic espionage and theft of trade secrets for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of universities and companies controlled by the PRC government.
“According to the charges in the indictment, the defendants leveraged their access to and knowledge of sensitive U.S. technologies to illegally obtain and share U.S. trade secrets with the PRC for economic advantage,” said Assistant Attorney General Carlin. “Economic espionage imposes great costs on American businesses, weakens the global marketplace and ultimately harms U.S. interests worldwide. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders wherever the evidence leads. I would like to thank all the agents, analysts and prosecutors who are responsible for this indictment.”
“As today’s case demonstrates, sensitive technology developed by U.S. companies in Silicon Valley and throughout California continues to be vulnerable to coordinated and complex efforts sponsored by foreign governments to steal that technology,” said U.S. Attorney Haag. “Combating economic espionage and trade secret theft remains one of the top priorities of this Office.”
“The conduct alleged in this superseding indictment reveals a methodical and relentless effort by foreign interests to obtain and exploit sensitive and valuable U.S. technology through the use of individuals operating within the United States,” said Special Agent in Charge Johnson. “Complex foreign-government sponsored schemes, such as the activity identified here, inflict irreversible damage to the economy of the United States and undercut our national security. The FBI is committed to rooting out industrial espionage that puts U.S. companies at a disadvantage in the global market.”
According to the indictment, PRC nationals Wei Pang and Hao Zhang met at a U.S. university in Southern California during their doctoral studies in electrical engineering. While there, Pang and Zhang conducted research and development on thin-film bulk acoustic resonator (FBAR) technology under funding from U.S. Defense Advanced Research Projects Agency (DARPA). After earning their doctorate in approximately 2005, Pang accepted employment as an FBAR engineer with Avago Technologies (Avago) in Colorado and Zhang accepted employment as an FBAR engineer with Skyworks Solutions Inc. (Skyworks) in Massachusetts. The stolen trade secrets alleged in the indictment belong to Avago or Skyworks.
Avago is a designer, developer and global supplier of FBAR technology, which is a specific type of radio frequency (RF) filter. Throughout Zhang’s employment, Skyworks was also a designer and developer of FBAR technology. FBAR technology is primarily used in mobile devices like cellular telephones, tablets and GPS devices. FBAR technology filters incoming and outgoing wireless signals so that a user only receives and transmits the specific communications intended by the user. Apart from consumer applications, FBAR technology has numerous applications for a variety of military and defense communications technologies.
According to the indictment, in 2006 and 2007, Pang, Zhang and other co-conspirators prepared a business plan and began soliciting PRC universities and others, seeking opportunities to start manufacturing FBAR technology in China. Through efforts outlined in the superseding indictment, Pang, Zhang and others established relationships with officials from Tianjin University. Tianjin University is a leading PRC Ministry of Education University located in the PRC and one of the oldest universities in China.
As set forth in the indictment, in 2008, officials from Tianjin University flew to San Jose, California, to meet with Pang, Zhang and other co-conspirators. Shortly thereafter, Tianjin University agreed to support Pang, Zhang and others in establishing an FBAR fabrication facility in the PRC. Pang and Zhang continued to work for Avago and Skyworks in close coordination with Tianjin University. In mid-2009, both Pang and Zhang simultaneously resigned from the U.S. companies and accepted positions as full professors at Tianjin University. Tianjin University later formed a joint venture with Pang, Zhang and others under the company name ROFS Microsystem intending to mass produce FBARs.
The indictment alleges that Pang, Zhang and other co-conspirators stole recipes, source code, specifications, presentations, design layouts and other documents marked as confidential and proprietary from the victim companies and shared the information with one another and with individuals working for Tianjin University.
According to the indictment, the stolen trade secrets enabled Tianjin University to construct and equip a state-of-the-art FBAR fabrication facility, to open ROFS Microsystems, a joint venture located in PRC state-sponsored Tianjin Economic Development Area (TEDA), and to obtain contracts for providing FBARs to commercial and military entities.
The six indicted defendants include:
- Hao Zhang, 36, a citizen of the PRC, is a former Skyworks employee and a full professor at Tianjin University. Zhang is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets. Zhang was arrested upon entry into the United States on May 16, 2015.
- Wei Pang, 35, a citizen of the PRC, is a former Avago employee and a full professor at Tianjin University. Pang is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets.
- Jinping Chen, 41, a citizen of the PRC, is a professor at Tianjin University and a member of the board of directors for ROFS Microsystems. Chen is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
- Huisui Zhang (Huisui), 34, a citizen of the PRC, studied with Pang and Zhang at a U.S. university in Southern California and received a Master’s Degree in Electrical Engineering in 2006. Huisui is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
- Chong Zhou, 26, a citizen of the PRC, is a Tianjin University graduate student and a design engineer at ROFS Microsystem. Zhou studied under Pang and Zhang, and is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets.
- Zhao Gang, 39, a citizen of the PRC, is the General Manager of ROFS Microsystems. Gang is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
The maximum statutory penalty for each of the charges alleged in the superseding indictment is as follows:
- Count One: conspiracy to commit economic espionage: 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Count Two: conspiracy to commit theft of trade secrets: 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Three Through Seventeen: economic espionage; aiding and abetting: 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Eighteen Through Thirty-Two: theft of trade secrets; aiding and abetting: 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
Zhang was arrested on May 16, 2015, upon landing at the Los Angeles International Airport on a flight from the PRC. He made his initial appearance yesterday afternoon in Los Angeles before the U.S. Magistrate Judge Alicia G. Rosenberg of the Central District of California, who ordered the defendant transported in custody to San Jose for further proceedings. His next scheduled appearance will be before the U.S. District Judge Edward J. Davila of the Northern District of California, at a date to be determined.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The investigation is being conducted by the FBI’s Palo Alto Resident Agency/San Francisco Division. The case is being prosecuted by Assistant U.S. Attorneys Matt Parrella and Dave Callaway of the Northern District of California, in consultation with the National Security Division’s Counterespionage Section.
Zhang Superseding Indictment
Chinese Professors Among Six Defendants Charged with Economic Espionage and Theft of Trade Secrets for Benefit of People’s Republic of ChinaRead the Press Release
SAN FRANCISCO – United States Attorney Melinda Haag, Assistant Attorney General for National Security John Carlin, and FBI Special Agent-in-Charge David Johnson announced today that on May 16, 2015, Tianjin University Professor Hao Zhang was arrested upon entry into the United States from the People’s Republic of China (PRC) in connection with a recent superseding indictment in the Northern District of California. The thirty-two count indictment, which had previously been sealed, charged a total of six individuals with Economic Espionage and Theft of Trade Secrets for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of universities and companies controlled by the PRC government.
According to the indictment, PRC nationals Wei Pang and Hao Zhang met at a university in Southern California during their doctoral studies in electrical engineering. While there, Pang and Zhang conducted research and development on thin-film bulk acoustic resonator (FBAR) technology under funding from United States Defense Advanced Research Projects Agency (DARPA). After earning their doctorates in approximately 2005, Pang accepted employment as an FBAR engineer with Avago Technologies (Avago) in Colorado, and Zhang accepted employment as an FBAR engineer with Skyworks Solutions, Inc. (Skyworks) in Massachusetts. The stolen trade secrets alleged in the indictment belong to Avago and Skyworks.
Avago is a designer, developer and global supplier of FBAR technology, which is a specific type of radio frequency (RF) filter. While Zhang was employed there, Skyworks also designed and developed FBAR technology. FBAR technology is primarily used in mobile devices like cellular telephones, tablets, and GPS devices. FBAR technology filters incoming and outgoing wireless signals so that a user only receives and transmits the specific communications intended by the user. Apart from consumer applications, FBAR technology has numerous applications for a variety of military and defense communications technologies.
According to the indictment, in 2006 and 2007, Pang, Zhang, and other co-conspirators prepared a business plan and began soliciting PRC universities and others, seeking opportunities to start manufacturing FBAR technology in China. Through efforts outlined in the indictment, Pang, Zhang, and others established relationships with officials from Tianjin University. Tianjin University is a leading PRC Ministry of Education University located in Tianjin, PRC, and one of the oldest universities in China.
As set forth in the indictment, in 2008, officials from the Tianjin University flew to San Jose, California, to meet with Pang, Zhang, and other co-conspirators. Shortly thereafter, Tianjin University agreed to support Pang, Zhang, and others in establishing an FBAR fabrication facility in China. Pang and Zhang continued to work for Avago and Skyworks in close coordination with Tianjin University. In mid-2009, both Pang and Zhang simultaneously resigned from the U.S. companies and accepted positions as full professors at Tianjin University. Tianjin University later formed a joint venture with Pang, Zhang, and others under the company name ROFS Microsystem, intending to mass produce FBARs.
The indictment alleges that Pang, Zhang, and other co-conspirators stole recipes, source code, specifications, presentations, design layouts, and other documents marked as confidential and proprietary from the victim companies and shared the information with one another and with individuals working for Tianjin University.
According to the indictment, the stolen trade secrets enabled Tianjin University to construct and equip a state-of-the-art FBAR fabrication facility, to open ROFS Microsystems, a joint venture located in PRC state-sponsored Tianjin Economic Development Area (TEDA), and to obtain contracts for providing FBARs to commercial and military entities.
United States Attorney Melinda Haag stated, “As this case demonstrates, sensitive technology developed by U.S. companies in Silicon Valley and throughout California continues to be vulnerable to coordinated and complex efforts sponsored by foreign governments to steal that technology. Combating economic espionage and trade secret theft remains one of the top priorities of this Office.”
FBI San Francisco Special Agent-in-Charge David Johnson stated, “The conduct alleged in this superseding indictment reveals a methodical and relentless effort by foreign interests to obtain and exploit sensitive and valuable U.S. technology through the use of individuals operating within the United States. Complex foreign-government sponsored schemes, such as the activity identified here, inflict irreversible damage to the economy of the United States and undercut our national security. The FBI is committed to rooting out industrial espionage that puts U.S. companies at a disadvantage in the global market.”
“According to the charges in the indictment, the defendants leveraged their access to and knowledge of sensitive U.S. technologies to illegally obtain and share U.S. trade secrets with the PRC for economic advantage,” said Assistant Attorney General Carlin. “Economic espionage imposes great costs on American businesses, weakens the global marketplace and ultimately harms U.S. interests worldwide. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders wherever the evidence leads. I would like to thank all the agents, analysts and prosecutors who are responsible for this indictment.”
The six indicted defendants include:
- Hao Zhang, 36, a citizen of the PRC. Zhang is a former Skyworks employee and a full professor at Tianjin University. Zhang is charged with Conspiracy to Commit Economic Espionage, Conspiracy to Commit Theft of Trade Secrets, Economic Espionage, and Theft of Trade Secrets. Zhang was arrested upon entry into the United States on May 16, 2015.
- Wei Pang, 35, a citizen of the PRC. Pang is a former Avago employee and a full professor at Tianjin University. Pang is charged with Conspiracy to Commit Economic Espionage, Conspiracy to Commit Theft of Trade Secrets, Economic Espionage, and Theft of Trade Secrets.
- Jinping Chen, 41, a citizen of the PRC. Chen is a professor at Tianjin University and a member of the board of directors for ROFS Microsystems. Chen is charged with Conspiracy to Commit Economic Espionage and Conspiracy to Commit Theft of Trade Secrets.
- Huisui Zhang (Huisui), 34, a citizen of the PRC. Huisui studied with Pang and Zhang at a U.S. university and received a master’s degree in electrical engineering in 2006. Huisui is charged with Conspiracy to Commit Economic Espionage and Conspiracy to Commit Theft of Trade Secrets.
- Chong Zhou, 26, a citizen of the PRC. A Tianjin University graduate student and a design engineer at ROFS Microsystem, Zhou studied under Pang and Zhang. Zhou is charged with Conspiracy to Commit Economic Espionage, Conspiracy to Commit Theft of Trade Secrets, Economic Espionage, and Theft of Trade Secrets.
- Zhao Gang, 39, a citizen of the PRC. Gang is the General Manager of ROFS Microsystems. Gang is charged with Conspiracy to Commit Economic Espionage and Conspiracy to Commit Theft of Trade Secrets.
The maximum statutory penalty for each of the charges alleged in the Superseding Indictment is as follows:
- Count One: Conspiracy to Commit Economic Espionage, in violation of 18 U.S.C. § 1831(a)(5): 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Count Two: Conspiracy to Commit Theft of Trade Secrets, in violation of 18 U.S.C. § 1832(a)(5): 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Three Through Seventeen: Economic Espionage; Aiding and Abetting, in violation of 18 U.S.C. § 1831(a)(1),(2),(3), & 2: 15 years imprisonment; $500,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
- Counts Eighteen Through Thirty-Two: Theft of Trade Secrets; Aiding and Abetting, in violation of 18 U.S.C. § 1832(a)(1),(2),(3), & 2: 10 years imprisonment; $250,000 fine or twice the gross gain/loss; three years’ supervised release; and $100 special assessment.
The defendant was arrested on May 16, 2015, upon landing at the Los Angeles International Airport on a flight from the PRC. He made his initial appearance yesterday afternoon in Los Angeles before The Honorable Alicia G. Rosenberg, United States Magistrate Judge, who ordered the defendant transported in custody to San Jose for further proceedings. His next scheduled appearance will be before The Honorable Edward J. Davila, United States District Judge, at a date to be determined.
The case is being prosecuted by Assistant United States Attorneys Matthew Parrella and David Callaway of the Computer Hacking and Intellectual Property Unit of the U.S. Attorney’s Office in San Francisco, in consultation with the Counterespionage Section of the U.S. Department of Justice in Washington, D.C. The investigation is being conducted by the Palo Alto Resident Agency/San Francisco Division of the Federal Bureau of Investigation.
Please note, an indictment contains only allegations and, as in all cases, the defendants must be presumed innocent unless and until proven guilty.
California Financing Consultant Convicted in Kickback Scheme StingRead the Press Release
Boston – A California-based business consultant was convicted on Friday, May 15, 2015, for his role in a fraudulent scheme to pay kickbacks to an undercover agent posing as a corrupt hedge fund manager in order to obtain financing for small, publicly traded companies.
Sandip Shah, 41, of Chino, Calif., was convicted following a five-day jury trial on nine counts of wire fraud. Shah was indicted in May 2014, and is scheduled to be sentenced on August 11, 2015.
Shah was involved in a scheme to pay secret kickbacks to a purported investment fund representative who had agreed to use the fund’s money to buy stock in three companies that had hired Shah to help them raise capital. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. Shah and the company executives were unaware that the purported investment fund representative was actually an undercover agent with the Federal Bureau of Investigation.
The conviction followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Micro-cap companies are small publicly traded companies whose stock often trades at pennies a share. Fraud in the micro-cap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about micro-cap stocks may be difficult for the average investor to find, since many micro-cap companies do not file financial reports with the Securities Exchange Commission.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the Federal Bureau of Investigation undercover operation, cooperated with criminal authorities in bringing charges against Shah and 20 other defendants who participated in the kickback scheme. All but one of those defendants has been convicted, either after trial or by way of guilty pleas, on charges arising out of their involvement in the scheme. The sole remaining defendant is currently a fugitive.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Stephen E. Frank, Chief and Deputy Chief, respectively, of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Cabell County man pleads guilty to failing to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. - A 60-year old Cabell County man faces up to 10 years in prison after pleading guilty today to failing to register as a sex offender, U.S. Attorney Booth Goodwin announced. Ronnie Alvin Howard, of Huntington, West Virginia, entered a guilty plea before Chief District Court Judge Robert C. Chambers.
Howard was convicted in 2007 in Michigan of two counts of Assault with Intent to Commit Second Degree Sexual Assault involving minor victims. These convictions require Howard to register as a sex offender. Howard was also convicted of Second Degree Sexual Assault in 1980 in Michigan. In August of 2012, Howard moved to Huntington, West Virginia, and did not register as a sex offender despite knowing it was required by law. He continued to reside and work in Huntington without registering until his arrest on February 18, 2015.
The court scheduled sentencing for Howard for August 17, 2015, in Huntington, West Virginia.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Buffalo Man Pleads Guilty to Tax Fraud SchemeRead 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 James Chatmon, 36, of Buffalo, NY, pleaded guilty today to conspiracy to defraud the Internal Revenue Service by making false claims for income tax refunds before U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that Chatmon gathered biographical information from more than a dozen individuals which he then used to generate false W-2 forms. The individuals then used the forms to file false Federal and New York State income tax returns. Claims for refunds and credits were made on 17 tax returns, even though the persons filing the returns were not entitled to any refunds.
Proceeds totaling $105,088 were divided between Chatmon and the tax-return filers during the scheme, which took place between January 2010 and April 2013. The defendant will be required to pay restitution of $102,149 to the IRS, and $2,939 to the New York State Department of Finance. The total attempted loss figure exceeds $120,000, as some of the false returns did not result in refunds.
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for September 3, 2015 before Judge Arcara.
Bridgeport Man Sentenced to 28 Years in Federal Prison for MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TRUMAINE HEARST, also known as “Man,” 21, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 336 months of imprisonment, followed by five years of supervised release, for his involvement in the October 2012 murder of Dawayne Cobb in Bridgeport.
According to court documents and statements made in court, on October 10, 2012, at approximately 6:20 p.m., Dawayne Cobb was discovered in the driver seat of an idling vehicle in the vicinity of 220 Sunshine Circle in Bridgeport. Cobb had gunshot wounds in his shoulder and abdomen.
HEARST has admitted that, on that date, he and Johnnie Jefferson, also known as “Jeezy,” planned to rob Cobb of marijuana. HEARST and Jefferson then drove to Sunshine Circle to meet Cobb, murdered him and stole from him a jar containing approximately two ounces of marijuana. HEARST and Jefferson transported the stolen marijuana to a Bridgeport residence and subsequently distributed it amongst themselves and others.
On November 10, 2014, HEARST pleaded guilty to one count of causing the death of Dawayne Cobb through the use of a firearm.
Jefferson pleaded guilty to the same charge on November 3, 2014, and awaits sentencing.
HEARST and Jefferson have been detained since July 16, 2013.
U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This matter was investigated by Bridgeport Police Department and the FBI’s Bridgeport Safe Streets Task Force. The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Rahul Kale.
Attorney Sentenced to Prison in New York Federal Court for Subscribing to False Federal Income Tax ReturnsRead the Press Release
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Preet Bharara of the Southern District of New York announced that a Glen Ridge, New Jersey, man was sentenced yesterday to serve six months in prison for failing to report income on his tax returns for the 2007, 2008 and 2009 tax years.
Matthew Libous, 37, was convicted at a bench trial in White Plains, New York, in January 2015. U.S. District Judge Vincent L. Briccetti imposed yesterday’s sentence.
According to the superseding indictment and the evidence presented at trial:
Libous engaged in the practice of law from 2006 through 2008. Libous deposited the fees he received into his personal bank account but never reported them on his tax return. In 2008, Libous became a minority partner and manager of Wireless Construction Solutions LLC (WCS), a company that maintained cellular telephone towers. Libous caused WCS to pay thousands of dollars in his personal expenses on his behalf from 2008 to 2011. Judge Briccetti found today that Libous failed to report more than $97,000 in income, leading to a tax loss of more than $38,000.
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In addition to the prison sentence, Libous was sentenced to one year of supervised release, a $25,000 fine, 100 hours of community service and costs of prosecution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bharara thanked Internal Revenue Service-Criminal Investigation and the investigators from the U.S. Attorney's Office for the Southern District of New York, who investigated the case, and Assistant U.S. Attorney James McMahon and Tax Division Trial Attorney and Special Assistant U.S. Attorney Andrew Kameros of the Southern District of New York-White Plains Division, who prosecuted the case.
Attorney Sentenced in White Plains Federal Court to Federal Prison for Subscribing to False Federal Income Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Caroline D. Ciraolo, Acting Assistant Attorney General for the U.S. Department of Justice’s Tax Division, announced that MATTHEW LIBOUS was sentenced yesterday to six months in prison for failing to report income on his tax returns for the 2007, 2008, and 2009 tax years. LIBOUS was convicted at a bench trial in January 2015. United States District Judge Vincent L. Briccetti imposed yesterday’s sentence.
According to the Superseding Indictment and the evidence presented at trial:
LIBOUS engaged in the practice of law from 2006 through 2008. LIBOUS deposited the fees he received into his personal bank account but never reported them on his tax return. In 2008, LIBOUS became a minority partner and manager of Wireless Construction Solutions, LLC ("WCS"), a company that maintained cellular telephone towers. LIBOUS caused WCS to pay thousands of dollars in his personal expenses on his behalf from 2008 to 2011. Judge Briccetti found today that LIBOUS failed to report more than $97,000 in income, leading to a tax loss of more than $38,000.
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In addition to the prison sentence, LIBOUS, 37, of Glen Ridge, New Jersey, was sentenced to one year of supervised release, a $25,000 fine, 100 hours of community service, and costs of prosecution.
Mr. Bharara praised the outstanding investigative work of the Internal Revenue Service - Criminal Investigation and the investigators from the U.S. Attorney's Office for the Southern District of New York.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon and Special Assistant U.S. Attorney Andrew Kameros are in charge of the prosecution.
Arizona Man Sentenced to 67 Months Imprisonment for Two CVS RobberiesRead the Press Release
PHOENIX– On May 18, 2015, Darrell Lee Jenkins, Jr., 35, of Tucson, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 67 months’ imprisonment. Jenkins previously pleaded guilty to one count of robbery involving controlled substances and one count of interference with commerce by robbery (a Hobbs Act violation).
On March 13, 2014, Jenkins robbed a CVS pharmacy in Reno, Nev., of over $10,000 in OxyContin. On April 4, 2014, Jenkins again robbed a CVS pharmacy, this time in Flagstaff, Ariz., taking multiple bottles of Oxycodone.
The investigation in this case was conducted by the Flagstaff Police Department, the Reno, Nevada Police Department, and the Federal Bureau of Investigation. The prosecution was handled by Dimitra H. Sampson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-8090-PCT-GMS and 15-0162-GMS
RELEASE NUMBER: 2015-038_Jenkins
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Arizona Man Sentenced to 30 Years Imprisonment for the Sexual Exploitation of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 27, of Tucson, Arizona, was sentenced yesterday by District of Arizona Chief Judge Raner C. Collins to thirty years’ incarceration for his part in two federal child pornography cases. GONZALEZ’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions and the requirement that he register as a sex offender.
In the first case, which arose in Arizona, GONZALEZ-CASTILLO was charged with distribution, receipt, and possession of child pornography after a 2009 investigation by the Federal Bureau of Investigation (FBI) revealed GONZALEZ-CASTILLO’s large-scale trading and distribution of graphic and sadistic child pornography.
In the second case, as a result of a nationwide child exploitation investigation, special agents with the New Orleans Office of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”), determined that GONZALEZ-CASTILLO was responsible for producing videos depicting the sexual exploitation of children. According to court documents, beginning in 2012, and continuing until January 2013, GONZALEZ-CASTILLO conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet. On January 24, 2014, GONZALEZ-CASTILLO was charged with conspiracy to produce child pornography for his part in producing a series of videos depicting a minor engaging in sexually explicit conduct in 2012 and 2013.
GONZALEZ-CASTILLO entered guilty pleas in both cases on November 12, 2014, after the Louisiana matter was transferred to the District of Arizona.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in Louisiana, Arizona, and California, as well as the U.S. Postal Inspection Service in Louisiana, and the Federal Bureau of Investigation in Tucson, Arizona, Birmingham, Alabama, and Albany, New York in investigating this matter. Assistant U.S. Attorney Carin C. Duryee of the District of Arizona and Assistant U.S. Attorney Brian M. Klebba of the Eastern District of Louisiana were in charge of the prosecution.
Alabama State Parks Agree to Permit Motorized Vehicles for People with DisabilitiesRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama and the State of Alabama Department of Conservation and Natural Resources (Department) announced today that their offices have reached an agreement to permit people with mobility disabilities to use their motorized wheelchairs and other power-driven mobility devices on the roads in all state parks and recreation areas. Previously, state regulations did not specifically allow such devices on roads, even when no sidewalks or alternate routes existed for them. The Department enacted a new state regulation to ensure the rights of park visitors with disabilities under the Americans with Disabilities Act of 1990, see below.
This agreement resulted from a complaint filed with the U.S. Attorney’s Office by a paraplegic man who could not stay at the public campground at Alabama Gulf State Park in Gulf Shores because park personnel banned use of the golf cart he uses for mobility on roads in the park. This prohibition and the lack of sidewalks in the park meant he could not access the park’s attractions and amenities.
"Ensuring that Alabama’s beautiful parks and recreation areas are accessible to everyone, including individuals with disabilities, is a win-win result," said U.S. Attorney Kenyen R. Brown. "ADA compliant facilities aid the disabled and make our communities more welcoming and business friendly. We commend Commissioner Gunter Guy, Jr. for his commitment to seeing that Alabama’s Great Outdoors can be shared by all, regardless of disability."
The new regulation reads:
220-5-.04(10) Notwithstanding any provision above, individuals with a mobility disability may use any motorized vehicle or other power-driven mobility device to access the parks’ amenities as provided in and subject to the provisions of the Americans with
Disabilities Act of 1990, as amended, and 28 C.F.R. § 35.137 (2014) [complete text of the regulation is attached].
Additional Sex Trafficking Charges Filed Against Allentown ManRead the Press Release
PHILADELPHIA - A superseding indictment was filed May 14, 2015 charging Corderro Cody, 27, of Allentown, PA, four additional counts, three additional counts of sex trafficking by force, fraud, or coercion, or attempt, and one count of sex trafficking of a minor. Cody was originally indicted on October 30, 2014, on charges of conspiracy to commit sex trafficking by force, fraud, or coercion, four counts of sex trafficking by force, fraud, or coercion, and conspiracy to transport individuals both intrastate and interstate for the purpose of prostitution.
The superseding indictment alleges that Cody recruited women to work as prostitutes, referred to his prostitution business as the “program,” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts, and used physical force in the form of beatings when the women did not adhere to the “program,” and to maintain the women performing commercial sexual acts.
If convicted, the defendant faces a a mandatory minimum prison term of 15 years up to a maximum of life, a fine of up to $2.5 million, a mandatory minimum five years supervised release up to lifetime supervised release, and a $1,000 special assessment.
The case was investigated by Homeland Security Investigations and the Allentown Police Department. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan, and Trial Attorney Anita Channapati of the Civil Rights Division of the Department of Justice.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Adams County Correctional Center Inmate Pleads Guilty to RiotingRead the Press Release
Jackson, Miss. - Juan Geraldo Arredondo, 35, originally from Chihuahua, Mexico, pled guilty today before Senior U.S. District Judge David C. Bramlette III, to one count of rioting in a federal correctional facility, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
The prison riot occurred on May 20, 2012 at the Adams County Correctional Center. During the riot, several correctional officers were assaulted and one correctional officer died as a result of injuries he received during these assaults. Other correctional officers were taken captive and held hostage for several hours by participants in the riot. Total damage to ACCC was estimated to be $1,305,142.00.
Arredondo will be sentenced on August 7, 2015 by U.S. District Judge David C. Bramlette III and faces a maximum penalty of ten years in federal prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Patrick Lemon.
Monday 18 May 2015
Zachary Woman Pleads Guilty to Embezzling More Than $80,000 from the Social Security AdministrationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of RUBY C. DUNN, age 63, of Baton Rouge, Louisiana, who pled guilty today before U.S. District Judge Shelly D. Dick to theft of government property, in violation of Title 18, United States Code, Section 641, and admitted to forfeiture allegations contained in the Bill of Information.
According to the factual basis presented to the Court in connection with her plea, DUNN began receiving Social Security Administration (SSA) Survivor’s Benefits in or around 1993. However, in 1999, DUNN re-married and became ineligible for such benefits. In order to continue receiving these benefits, DUNN failed to report her marital status and knowingly made misrepresentations to the SSA, on numerous occasions, intending to conceal her marital status. On one occasion, for instance, when asked about her husband, DUNN falsely represented that he was only a “cousin” who happened to live at the same address. On another occasion, DUNN admitted that she had obtained a marriage license but claimed that she and her husband had not gone through with the marriage. As DUNN admitted in Court today, her scheme continued over a fourteen-year period, during which time she fraudulently obtained more than $80,000 in SSA benefits.
U.S. Attorney Green stated: “This kind of criminal conduct is an affront to all those who dutifully pay into the Social Security system and only receive benefits when it is legal and appropriate for them to receive such benefits. We appreciate the SSA-OIG’s efforts to identify this type of fraudulent conduct and bring it to this Office’s attention so that we may take action.”
This investigation is being conducted by the Social Security Administration’s Office of Inspector General. The matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Two Mexican Nationals Arrested in New Mexico on Federal Cocaine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two Mexican nationals were arrested on May 15, 2015, after U.S. Border Patrol agents allegedly found large quantities of cocaine in their vehicles during separate routine inspections at the U.S. Border Patrol Checkpoint on Interstate 25 north of Las Cruces, N.M. J. Cesar Magallanes-Trejo, 46, and Roberto Rodriguez-Ponce, 28, made their initial appearances in Las Cruces federal court earlier today on separate criminal complaints charging them with possession of cocaine with intent to distribute. Both men remain in custody pending detention hearings which have yet to be scheduled.
The criminal complaint charging Magallanes-Trejo alleges that U.S. Border Patrol agents found approximately 11 kilograms (24 pounds) of cocaine concealed in his vehicle during a routine checkpoint inspection. According to a separate criminal complaint, Rodriguez-Ponce was arrested after U.S. Border Patrol agents found approximately 4.8 kilograms (ten and a half pounds) of cocaine concealed in a hidden compartment in his vehicle.
If convicted of the charge in his criminal complaint, Magallanes-Trejo faces a statutory mandatory minimum of ten years and a maximum of life imprisonment. If convicted of the charge against him, Rodriguez-Ponce faces a statutory mandatory minimum of five years and a maximum of 40 years in prison. Charges in complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Both cases were investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. The two cases are being prosecuted by the U.S. Attorney’s Las Cruces Branch Office; the Magallanes-Trejo case is being prosecuted by Assistant U.S. Attorney Luis A. Martinez and the Rodriguez-Ponce case is being prosecuted by Special Assistant U.S. Attorney Clara Nevarez Cobos.
Two Maries County People Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – TIMOTHY JAMES and STARLA DUDENHOEFFER were sentenced to 63 months in prison and 28 months in prison, respectively, involving their distribution of large quantities of methamphetamine in Maries County.
James and Dudenhoeffe, both of Vienna, Missouri, previously pled guilty to one felony count each of conspiracy to distribute methamphetamine. Dudenhoeffer appeared today for sentencing before United States District Judge Henry Autrey. James was sentenced in March.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney’s Office.
Tulare County District Attorney’s Investigator Receives Award for His Contribution to the Mission of the Department of JusticeRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Investigator in the Fresno Division. This award is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal state and local law enforcement in addressing public safety issues in this region.
The 2014 Fresno Division’s Outstanding Law Enforcement Investigator Award goes to Dwayne Johnson of the Tulare County Office of the District Attorney’s Bureau of Investigations for his work with the San Joaquin Valley Mortgage Fraud Task Force (MFTF). In this capacity, Investigator Johnson has worked closely with the Fresno U.S. Attorney’s Office and its partner federal law enforcement agencies in leading several mortgage fraud-related investigations and prosecutions that have targeted large-scale fraud schemes, yielded significant guilty pleas and vindicated the rights of countless victims.
In May 2013, Investigator Johnson was the lead investigator in a fraudulent foreclosure rescue business case. On the basis of a single complaint, Johnson commenced a long-term investigation that ultimately uncovered a fraud scheme that victimized dozens of homeowners in numerous counties, many of whom eventually lost their houses in foreclosure. Johnson prepared and undertook the execution of several search warrants, reviewed thousands of pages of documents, conducted dozens of witness interviews and planned and executed various undercover operations. Juan Ramon Curiel and Santiago Palacios-Hernandez (Case No. 1:13-cr-188 LJO), pleaded guilty in December 2014 and admitted that they had caused more than $2.5 million in losses to more than 50 vulnerable homeowners and financial institutions.
"The financial crisis hit our communities particularly hard and over the past six years our office has taken a leading role in prosecuting those who engaged in mortgage fraud to enrich themselves while harming our economy and driving down the value of our neighborhoods," said U.S. Attorney Wagner. "Our success was only possible because of dedicated, hard-working law enforcement officers like Investigator Johnson. My office, the Eastern District, and Tulare County all owe a great debt to Investigator Johnson and his many skilled and dedicated colleagues in local law enforcement who do the heavy lifting in protecting our communities."
Earlier this year, three of the 2014 awards were presented to the Tehama County Sheriff’s Office and the Fresno County Sheriff’s Office for their outstanding work in cooperation with the U.S. Attorney’s Office. Last week the 2014 award for Outstanding Investigator in the Sacramento Division was presented to Sacramento Police Department’s Detective Derek Stigerts for his work investigating crimes involving the sex trafficking of minors.
Tucson Man Sentenced to 30 Years for Child Pornography OffensesRead the Press Release
TUCSON, Ariz. – Today, Tucson resident Vittorio Francesco Castillo-Gonzalez, 27, was sentenced by Chief U.S. District Judge Raner C. Collins to 30 years’ incarceration for his part in two federal child pornography cases. In the first case, which arose in Arizona, the defendant was charged with distribution, receipt, and possession of child pornography after a 2009 investigation by the Federal Bureau of Investigation (FBI) revealed Gonzalez’s large-scale trading and distribution of graphic and sadistic child pornography. In the second case, which arose from an investigation by Homeland Security Investigations Agents out of Louisiana, the defendant was charged with conspiracy to produce child pornography for his part in producing a series of videos depicting a minor engaging in sexually explicit conduct in 2012 and 2013. The defendant entered guilty pleas in both cases on Nov. 12, 2015, after the Louisiana matter was transferred to the District of Arizona. Gonzalez’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions and the requirement that he register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims of child sexual abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigations in these cases were conducted by the Federal Bureau of Investigation in Tucson, Ariz., Birmingham, Ala., and Albany, N.Y., and Homeland Security Investigations in Louisiana, Arizona, and California, as well as by the U.S. Postal Inspection Service in Louisiana. The prosecutions were handled by Assistant U.S. Attorneys Carin C. Duryee, District of Arizona, Tucson, and Brian M. Klebba, Eastern District of Louisiana.
CASE NUMBERS: CR 13-0195-RCC; CR 14-1831-RCC
RELEASE NUMBER: 2015-037_Gonzalez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Three Life Sentences Imposed on Man Following Convictions for Drug Trafficking, Kidnapping, Using Firearms and HIPAA ViolationsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that United States District Court Judge, Ralph R. Beistline, sentenced an Anchorage man, Stuart T. Seugasala, a.k.a. “Tone,” age 40, to three terms of life imprisonment following his January 2015 convictions on drug trafficking conspiracy and two kidnapping charges. Judge Beistline imposed a consecutive seven year sentence on firearms violations, as well as concurrent ten year terms of convictions for unauthorized access to private health information (HIPAA). There is no parole in the federal penal system. Seugasala will spend the rest of his natural life in custody.
According to Assistant U.S. Attorneys Stephan A. Collins and Frank V. Russo, who tried the case, Seugasala had previously been convicted of drug trafficking in 2000 and served over nine years in prison. Following his release, Seugasala returned to Anchorage, Alaska where he opened and operated a video gaming place that catered to youths called “Friendly Fire.” Seugasala also returned to drug trafficking. In late 2012 to early 2013, Seugasala became associated with Phosavan Khamnivong,a.k.a. “P.K,” a convicted murder who served eight years of a 20 year sentence. The men started bringing nearly pure methamphetamine, as well as other drugs, into Alaska from California. On March 13, 2013, Seugasala, Khaminvong, Timothy Miller, a.k.a. “Lil Tone,” and Anoai Sialofi, a.k.a. “A-Loc,” kidnapped, tortured, and sexually assaulted two men because one of the men owed Khamnivong a past due heroin debt. At Seugasala’s direction, the sexual assault of one of the victims was videotaped so that he could intimidate others that owed the group money. The victims were released after over three hours, and only after one of the victims agreed to repay the drug debt.
One of the victims was so severely injured that that he was admitted to Providence Hospital. On March 15, 2013, Seugasala became so upset at other patrons dining at the Denny’s Restaurant on Benson, in Anchorage, that he followed them while they drove south on the Seward Highway and shot several times at their moving car, hitting it several times. The driver of the target car suffered a neck grazing bullet wound and a severed fingertip wound. The driver also admitted himself to Providence Hospital. On or about March 17, 2013, Seugasala called Stacy Laulu, a friend of his who worked at Providence Hospital, to find out if the victims of his crimes had reported him to the police. Laulu accessed the private electronic medical files of the victims and reported back to Seugasala. Laulu went to trial with Seugasala in January and was convicted of violating the privacy rights of the victims. She is due to be sentence on May 29, and faces up to ten years of imprisonment. Judge Beistline previously sentenced Timothy Miller to a term of 12 years imprisonment and Anoai Sialofi to a term of 235 months imprisonment. Khamnivong is due to be sentenced on June 10, 2015.
In imposing the life sentences on Seugasala, Judge Beistline stated, “You enjoyed being a drug kingpin, you seemed to enjoy the misery that you created, and you enjoyed your criminal posse,” who Seugasala directed to commit home invasion robberies to steal money and/or drugs.
Judge Beistline specifically condemned the video of the sexual assault, which was introduced into evidence at trial, on which Seugasala can be heard and seen torturing one of the victims. “This video is who you are. You enjoyed the drama, the power, the torture, and the sex assault. You were the one that asked that it be created, so you could re-live the excitement, to brag, and to use it for intimidation.” Judge Beistline openly wondered “how a human gets to the point where he treats other people in such an inhumane way.” Judge Beistline described Seugasala’s actions as “so far beyond the pale it is difficult to describe the revulsion the community feels for these crimes.”
Seugasala received maximum ten-year sentences on the HIPAA convictions, the first in the history of Alaska and one of few such cases prosecuted in the country. Judge Beistline noted that in committing these violations, which involved obtaining the victims’ private medical information, Seugasala “disrespected the victims again.”
Judge Beistline noted that life imprisonment was appropriate because Seugasala “cannot be deterred, so the public needs to be protected from you.” The fact that Seugasala committed these crimes while on supervised release for prior drug felonies also demonstrated that he could not be adequately supervised.” Judge Beistine also imposed a seven year sentence on firearms violations, to run consecutively to the life sentences, as mandated by federal law.
Ms. Loeffler commends the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Anchorage Police Department, the Alaska State Troopers, and the Valdez Police Department for the investigation that led to the convictions in this case.
Telemarketer Convicted in Timeshare Resale FraudRead the Press Release
HOUSTON – The final defendant in connection with telemarketing fraud and money laundering scheme spanning nearly five years has been convicted of conspiracies to commit wire/mail/telemarketing fraud, announced U.S. Attorney Kenneth Magidson. James Assi Jariv, 64, of Las Vegas, Nev., entered a guilty plea this afternoon before U.S. District Judge Lynn H. Hughes.
Jariv’s son Alexander, 27, his wife Jiwon, 35, his ex-wife Varda, 74, all of Las Vegas, and four others - Ronald Frank Muise, 52, his son Michael Derek Muise, 30, and Thresa Lloyd, 44, all of Las Vegas, Nev.; and Leon Avedikian, 46, of Los Angeles, Calif. - previously pleaded guilty for their roles in the scheme.
Between December 2007 and Feb. 24, 2012, the defendants victimized approximately 1000 victims living in Canada and throughout the United States, including the Southern District of Texas.
The Jarivs and the others used a number of different named companies to conduct their telemarketing timeshare resale scheme targeting timeshare owners throughout the United States and Canada. The timeshare owners were solicited to pay advance fees in exchange for the promise that The Jariv Companies had willing buyers for the timeshare properties or points. However, The Jariv Companies did not have buyers for the timeshare owners’ interests and did not market or sell the property.
The Jariv companies were registered in various states, including Texas, Nevada, California, Illinois and Washington and conducted business at multiple addresses in Houston, Las Vegas, Los Angeles, Chicago and Seattle.
The defendants used mailing addresses or “virtual office suites” in Las Vegas, Houston, Chicago and Seattle for receiving monies from timeshare owners via U.S. Mail or commercial interstate carriers like Fed Ex, all the while maintaining call center offices in Las Vegas, Houston, Chicago and the greater Los Angeles-area from which the defendants, using telephones and email, contacted and communicated with timeshare owners in a scheme to defraud the timeshare owners of money.
The defendants and their employees falsely represented that they had buyers for the timeshare owners interests (either timeshare weeks or points) and solicited fees, ranging from hundreds of dollars to several thousand dollars from each timeshare owner. The defendants falsely represented that the fees were fully refundable at closing and were used to secure the owners’ place in an acquisition involving corporate buyers, as well as to pay for legal expenses such as title searches, estoppel letters and closing costs.
However, closings were not scheduled, purported sales did not occur and no payments were made to timeshare owners for the sale of their property, nor have there been payments by corporations (or other buyers) to The Jariv companies for the purchase of timeshare properties.
The defendants and employees of the Jariv companies did not devote their resources to marketing the timeshare owners’ properties and simply pocketed the advanced fees paid by the timeshare owners with a sizeable percentage of the money used to pay telemarketers. Jariv and his family members kept the balance of advance fees to be deposited into bank accounts controlled by them and frequently transferred it to personal bank accounts or other unrelated corporate bank accounts.
Between Feb. 1, 2011, and Jan. 31, 2012, the defendants deposited into eight bank accounts approximately $6,925,137.04 in fraudulently-obtained timeshare owner funds. Some victims reversed the charges or withdrawals, leaving approximately $5,945,433.04 in victim funds in possession of, and subsequently transferred into, other accounts controlled by the defendants. The funds in the eight victim deposit accounts were all traceable to payments received from victims.
As a result of pleas from all charged defendants, the U.S. has recovered more than $2 million for restitution to victims, many of whom are more than 55 years of age. Money judgments in both the civil forfeiture action and the criminal cases have been obtained to assist the United States in recovering the balance of the $5,945,433.04 restitution that is expected to be a part of the sentences.
The fraud conspiracy conviction carries a maximum imprisonment of 20 years in federal prison. However, because the wire/mail fraud involved telemarketing that involved 10 or more victims older than 55, federal law provides for an additional 10-year-sentence after the one imposed for the underlying conviction. Jariv also faces up to 20 years imprisonment for the money laundering conspiracy.
James Jariv is set for sentencing July 27, 2015, while the co-defendants are set for Aug. 17, 2015. Originally on bond, James Jariv was taken into custody following an arrest for an unrelated fraud scheme in Nevada. He will remain in federal custody pending sentencing.
The convictions are the result of an investigation conducted by the Houston Division of U.S. Secret Service (USSS) and Internal Revenue Service – Criminal Investigation with assistance by Las Vegas USSS, FBI and San Francisco Environmental Protection Agency. Assistant U.S. Attorneys Martha Minnis and Katherine Haden are prosecuting the case.
St. Louis Woman Sentenced to Nearly Six Years in Federal Prison for Role in Two Bank RobberiesRead the Press Release
Annalise McGhee, 28, of St. Louis, Missouri, was sentenced today in the U.S. District Court to 70 months in prison on one count of Conspiracy to Commit Bank Robbery and two counts of Bank Robbery in connection with the robbery of Laclede Community Credit Union in Alton, IL, on February 11, 2013, and the robbery of People’s Bank and Trust in Altamont, IL, on February 26, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois has announced. Following her prison sentence, McGhee will be on federal supervised release for 3 years. McGhee was also ordered to pay restitution in the amount of $5,684. McGhee has been in custody since February 26, 2013.
Documents filed in U.S. District Court establish that on February 11, 2013, McGhee drove her male co-defendant, Altonio Graves, to the Laclede Community Credit Union in Alton, Illinois to commit a robbery. Graves entered the credit union wearing a long black women’s wig, a black hat, and a black trench coat to disguise his appearance. Graves told the teller he had a gun, handed her a plastic grocery bag and a note demanding money. The teller placed $5,684 in the bag and Graves left the credit union with the money. Graves then entered the getaway vehicle being driven by McGhee and the two fled the area and escaped capture at that time.
On February 26, 2013, McGhee drove Graves to the People’s Bank and Trust in Altamont, Illinois to commit a robbery. Graves entered the bank wearing a long black women’s wig, a dark trench coat and a black hat with earflaps to disguise his appearance. Graves handed the teller a plastic grocery bag and a note which stated: "This is a robbery, I have a gun and I will use it." The teller placed $7,390 in the bag and Graves left the bank with the money. Graves then entered the getaway vehicle being driven by McGhee and the two fled the area. Illinois State Police officers located the suspect vehicle on the interstate and attempted a traffic stop. McGhee refused to stop the vehicle and fled from the officers at speeds in excess of 120 mph until she lost control of the vehicle and crashed into a ditch. During a search of Graves and the vehicle, officers located the $7,390 in United States currency taken from the bank. Also during the search of the vehicle, officers recovered a loaded .45 caliber semi-automatic pistol behind the glove box.
Altonio Graves, 39, of St. Louis, Missouri has also pleaded guilty and was sentenced on April 17, 2015 to 10 years in prison for the two bank robberies.
The case was investigated by the Alton Police Department, Altamont Police Department, the Illinois State Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Southampton Man Charged with Wire FraudRead the Press Release
PHILADELPHIA - Thomas Luther, 49 of Southampton, Pennsylvania was charged today by Information with wire fraud, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 20 years in prison, a three-year period of supervised release, a fine of up to $250,000, and a $100 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.
Silver Spring Man Pleads Guilty to Two Bank RobberiesRead the Press Release
Baltimore, Maryland – Paul Milton Laney, age 61, of Silver Spring, Maryland pleaded guilty today to committing two bank robberies within three days.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to Laney’s plea agreement, on February 18, 2014, Laney entered a bank in the 13000 block of Georgia Avenue in Silver Spring and demanded that the teller put money in a plastic bag that he threw over the counter. The victim teller was frightened and didn’t immediately comply. Laney then leapt up onto the counter, took money directly from the register and stuffed the money into the plastic bag, stealing approximately $2,920. As Laney was leaving, a bank employee approached Laney and attempted to stop him. Laney stated, “If you take another step closer, I’ll blow your head off.” The employee stepped away and allowed Laney to exit the bank.
On February 21, 2014, Laney entered a bank in the 8700 block of Georgia Avenue in Silver Spring, approached one of the tellers, threw a plastic bag over the counter and stated, “This is an armed robbery. I want all your $100s and $50s.” The teller was frightened and was slow to put money in the bag. Laney leaned over the counter and revealed a large kitchen knife inside his jacket and threated to kill the teller. The teller then removed approximately $999 from the register, placed the cash in the bag and handed it to Laney, who exited the bank.
Laney faces a maximum sentence of 20 years in prison for each of the two counts of bank robbery. U.S. District Judge Peter J. Messitte has scheduled sentencing for August 19, 2015 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who is prosecuting the case.
Shafter Man Sentenced to over 17 Years in Prison for Methamphetamine TraffickingRead the Press Release
FRESNO, Calif. —Santos Acevedo Gutierrez, 41, of Shafter, was sentenced today by United States District Judge Lawrence J. O’Neil to 17 years and six months in prison and the forfeiture of $10,123 for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on April 30, 2014, law enforcement officers executed a search warrant at Gutierrez’s home in Shafter and seized approximately four pounds of methamphetamine as well as a digital scale, packaging materials and over $10,000 in United States Currency. Gutierrez was on federal supervised release after serving a prison sentence for a previous federal drug felony conviction at the time of the search.
“As this sentence makes clear, trafficking methamphetamine is a serious offense that will be punished with the fullest extent of the law,” said Michael Toms, resident agent in charge of HSI Bakersfield. “Left unchecked, this highly dangerous substance destroys lives and wreaks havoc on entire communities. HSI, together with its local law enforcement partners, is committed to using every tool and authority at its disposal to combat the menace posed by meth.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Serial Counterfeit Check Fraudster Sentenced to Six Years in PrisonRead the Press Release
ROME, Ga. - Taurus Centaur has been sentenced to six years in prison for engaging in a counterfeit check scheme through which he purchased thousands of dollars in jewelry and consumer goods with counterfeit checks.
“The defendant traveled from state to state, using a stolen identity to pass bad checks to purchase luxury items,” said Acting U.S. Attorney John Horn. “This case serves as a reminder that in this day of sophisticated cybercrime and Internet-based identity theft, there are still traditional, paper-using fraudsters and counterfeiters who prey on unsuspecting citizens and businesses.”
“This case validates the impact of identity theft and check fraud on our communities. Today’s sentence should serve as a reminder that criminals will not get away with taking advantage of unsuspecting victims without bearing the consequences,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From October 2011 until April 2014, Centaur traveled in states along the East coast of the United States—Georgia, South Carolina, Tennessee, North Carolina, West Virginia, Pennsylvania, Maryland, and New Jersey—purchasing jewelry and other consumer goods with counterfeit checks and, in some instances, pawning the purchased items for cash.
In executing this scheme, Centaur assumed the identity of an individual in custody with the Virginia Department of Corrections and presented checks bearing that individual’s name at various stores. To assume the name, Centaur forged a “Release Certificate” in the name of the prisoner, used that forged document to obtain a legitimate copy of the prisoner’s birth certificate from the Maryland Division of Vital Records, and then used that birth certificate to request a Social Security card in the name of the prisoner.
Centaur’s spending spree came to an end on April 12, 2014, when he was arrested by the Cartersville, Georgia, Police Department during a traffic stop related to active warrants for his arrest. Inside Centaur’s vehicle, law enforcement found, among other things: a check embossing machine, a typewriter, and counterfeit cashier’s checks.
Taurus Centaur, 48, of Dallas, Texas, was sentenced to a term of imprisonment of six years and ordered to pay restitution in the amount of $172,465.10. He was also ordered to serve three years of supervised release, and the court imposed special conditions of supervised release, including that Centaur may not possess any device-making materials which could be used to manufacture counterfeit instruments, such as computers and printers, without permission of the United States Probation Officer.
This case was investigated by the United States Secret Service.
Assistant United States Attorney Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Rome Division is http://www.justice.gov/usao-ndga.