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2 July 2015
Two Additional Defendants Charged in Kidnapping of Jewelry Store EmployeeRead the Press Release
PHILADELPHIA - Salahudin Shaheed, 34, Khayree Gay, 31, and Basil Buie, 23, all of Philadelphia, PA, were charged today by superseding indictment with conspiracy, kidnapping, and attempted Hobbs Act robbery, announced United States Attorney Zane David Memeger. The superseding indictment adds the conspiracy charge to the existing indictment that charged Gay with attempted Hobbs Act robbery and kidnapping, and adds defendants Shaheed and Buie.
According to the indictment, Shaheed recruited defendants Gay and Buie, a/k/a “Basil Tucker,” to rob National Watch and Diamond Exchange, at 101 S. 8th Street in Philadelphia, to obtain luxury watches, jewelry, and money which Shaheed said could be found there. It is further alleged that the defendants conducted surveillance of National Watch and its employees from a parking lot at 733 Chestnut Street, to identify and then, in disguise, abduct an employee from whom they would forcibly obtain keys, security codes, and the code to the company’s safe from which the robbers would steal luxury watches, jewelry, and money.
On April 3, 2015, Shaheed identified the employee to target but postponed the robbery when the victim entered the parking lot accompanied by other persons. The next day, the defendants returned. Upon seeing the employee enter the garage and approach her car, Shaheed and Buie, wearing masks, gloves, and sunglasses, confronted the victim, Shaheed assaulted her with a Taser, and they kidnapped her.
If convicted, each of the defendants face a maximum possible statutory sentence of life in prison, five years of supervised release, a fine of up to $750,000, and a $300 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tory Hughes Sentenced to 71 Months in Prison for Defrauding Elderly Victims in Coin Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of TORY EVAN HUGHES, 45, to 71 months in federal prison for stealing more than $700,000 through a gold and coin investment scheme. HUGHES was indicted on August 6, 2014, and pleaded guilty on October 8, 2014. He was sentenced today before United States District Court Judge Richard Kyle.
According to the defendant’s guilty plea and documents filed in court, from August 2009 through September 2010, the defendant owned and operated Reputable Rare Coins, LLC (“RRC”), located in Roseville, Minnesota. HUGHES claimed to buy, sell and trade gold, silver and other coins. To generate business, the defendant made unsolicited phone calls primarily to elderly individuals in an effort to encourage them to purchase or exchange coins at RRC.
According to the defendant’s guilty plea and documents filed in court, HUGHES received more than $600,000 in coins and cash from at least nine victims in Minnesota and elsewhere, including one victim who mailed $50,000 to RRC. However, instead of reimbursing the victims—some of whom had sent him their life’s savings—HUGHES told his customers that he was having ongoing issues with coin suppliers and instead used the victim’s money to fuel his gambling addiction and pay for personal expenses.
According to the defendant’s guilty plea and documents filed in court, in May 2013 HUGHES incorporated a new business, U.S. Collectables, in Gilbert, Arizona. Between May 2013 and May 2014, HUGHES used U.S. Collectables to defraud more than $100,000 from at least six victims who expected to receive money or coins from HUGHES.
“These victims have suffered immeasurably as a result of HUGHES’ callous behavior,” said Assistant U.S. Attorney Karen B. Schommer. “HUGHES lied to them, gave them false hope and gambled away their life’s savings. I hope that the victims find some measure of comfort in today’s sentence.”
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Roseville Police Department.
This case was prosecuted by Assistant U.S. Attorney Karen B. Schommer.
Defendant Information:
TORY EVAN HUGHES, 45
Minneapolis, Minn.
Convicted:
- Mail fraud, 1 count
Sentenced
- 71 months in prison
- $753,203.83 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three charged with forcing immigrant minors to work at Ohio egg farmsRead the Press Release
In an indictment unsealed today, a federal grand jury charged three people with smuggling Guatemalan minors into the United States and forcing them to work at egg farms in Ohio, law enforcement officials said.
A fourth defendant was charged with harboring illegal aliens as part of a 15-count superseding indictment.
The indictments were announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office, and Marlon Miller, Special Agent in Charge for HSI Detroit, which covers Michigan and Ohio.
The defendants and their associates smuggled workers as young as 14 or 15 from Guatemala to the United States, falsely promising them that they would be able to attend school in the United States. The defendants transported the minors to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens, and vaccinating chickens, according to the indictment.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. The indictment lists eight victims under the age of 18 and two adult victims.
Indicted are: Aroldo Castillo-Serrano, 33, of Pecos, Texas; Conrado Salgado Soto, 52, of Raymond, Ohio; Ana Angelica Pedro, 21, of Columbus and Juan Pablo Duran Jr., 23, of Marysville, Ohio.
Aroldo Castillo-Serrano, Conrado Salgado Soto, and Ana Angelica Pedro Juan are charged with a labor-trafficking conspiracy. Castillo-Serrano is also charged with 10 individual counts of forced labor; Salgado Soto and Pedro Juan are charged in eight of those 10 counts. Castillo-Serrano and Salgado Soto are also charged with harboring illegal aliens, as is an additional defendant, Pablo Duran Jr.
Castillo-Serrano and Pedro Juan are charged with witness tampering for trying to persuade another person to give false information to the FBI. Pedro Juan herself is also charged with lying to the FBI.
“This indictment charges the defendants with putting profits ahead of common decency,” Dettelbach said. “Human beings are not commodities like farm products. Those who are somehow confused about that difference need to learn that lesson.”
“These defendants preyed upon vulnerable children and families,” Anthony said. “This investigation revealed how they used threats, humiliation, deprivation and other means to keep these minors working and enriching the defendants.”
“Human trafficking and forced labor are forms of modern-day slavery,” Miller said. “Criminal organizations involved in human trafficking truly damage their victims and undermine basic human decency. HSI, FBI, U.S. Border Patrol as well as our state and local law enforcement partners will continue to aggressively combat human trafficking and forced labor in all its forms.”
Each of the 11 trafficking counts and the witness tampering count carries a sentence of up to 20 years. Each count of harboring illegal aliens and lying to the FBI carries a sentence of up to 5 years.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty. The investigation is ongoing.
This case is being investigated by the Federal Bureau of Investigation’s Cleveland Office, Mansfield Resident Agency; and the Department of Homeland Security. The case is being jointly prosecuted by Civil Rights Division Trial Attorney Dana Mulhauser and Assistant U.S. Attorney Chelsea Rice.
Three Defendants Charged with Operating Forced Labor Scheme That Exploited Guatemalan Migrants at Ohio Egg FarmsRead the Press Release
Victims Included Minors as Young as 14 or 15 Years Old
Today, a federal court in the Northern District of Ohio unsealed a 15-count superseding indictment charging three defendants with luring Guatemalan minors and adults into the United States on false pretenses, then using threats of physical harm to compel their labor at egg farms in Ohio. The indictment was announced by Head of the CIvil Rights Division, Vanita Gupta, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio. A fourth defendant was charged with related immigration offenses.
Aroldo Castillo-Serrano, 33, Ana Angelica Pedro Juan, 21, both of Guatemala, and Conrado Salgado Soto, 52, of Mexico, are charged with labor trafficking conspiracy. Castillo-Serrano is also charged with 10 counts of forced labor, and Salgado Soto and Pedro Juan are charged in 8 of those 10 counts. Castillo-Serrano and Salgado Soto are also charged with related immigration offenses, along with a fourth defendant, Pablo Duran Jr., 23, an American citizen.
According to the indictment, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens.
The defendants threatened workers with physical harm and withheld their paychecks in order to compel them to work. Eight minors and two adults are identified in the indictment as victims of the forced labor scheme.
Castillo-Serrano and Pedro Juan are also charged with witness tampering, and Pedro Juan is further charged with making false statements to law enforcement.
Each of the 11 forced labor and forced labor conspiracy counts carries a statutory maximum sentence of 20 years in prison. The charges involving immigration violations, witness tampering and false statements carry statutory maximum sentences of five years in prison.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty. The investigation is ongoing.
This case is being investigated by the FBI Cleveland Office’s Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Tax Preparer Charged with Filing False Claims with the IRSRead the Press Release
Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, was charged by indictment with ten counts of filing false claims with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287. Owanikin had his initial appearance and arraignment today in Fort Lauderdale before United States Magistrate Judge Patrick M. Hunt. He pled not guilty.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County. The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals. Owanikin knowingly filed false and fraudulent claims, that is, false 2008 individual United States income tax returns and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming tax refunds of $7,500 per return.
If convicted, the defendant faces up to 50 years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tampa Woman Sentenced to 11 Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced Eneshia Carlyle to 11 years and 6 months in federal prison for wire fraud and aggravated identity theft. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $1,820,759 and an order of restitution in the same amount. Carlyle pleaded guilty on November 26, 2014.
According to court documents, Carlyle conspired with others to use the stolen personal identifying information of more than 7,000 individuals to file false tax returns and open pre-paid debit cards. From an unknown date in 2011, and continuing through November 2013, Carlyle, her husband James Cobb, and others, filed false tax returns claiming approximately $5 million in refunds.
During the execution of a search warrant at the home of Carlyle and Cobb, law enforcement officers recovered lists and medical records containing the names, dates of birth, and Social Security numbers of more than 7,000 victims. The search also recovered more than 300 pre-paid debit cards opened in the names of those victims, as well as documents and computer files containing information on the filing of false tax returns. Many of the victims had their identities stolen from healthcare facilities, including from the James A. Haley VA hospital; the Florida Hospital (formerly known as University Community Hospital); ambulance services in Virginia, Georgia, and Texas; a local medical billing company; and court records. In addition, a number of deceased victims’ names were obtained from genealogy websites.
James Cobb previously pleaded guilty for his role in this scheme. On June 19, 2015, he was sentenced to 27 years in federal prison.
This case was investigated by the Tampa Police Department, the Internal Revenue Service - Criminal Investigation, the U.S. Department of Veterans Affairs - Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the members of the Tampa Bay Identity Theft Alliance, including the Hillsborough County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Thomas N. Palermo and U.S. Department of Justice Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Swiss Bank Reaches Resolution under Justice Department's Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Privatbank Von Graffenried AG has reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Von Graffenried agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute Von Graffenried for tax-related criminal offenses. Von Graffenried also has provided certain account information related to U.S. taxpayers that will enable the government to make requests under the 1996 Convention between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income for, among other things, the identities of U.S. accountholders.
Von Graffenried is a private bank founded in 1992 and based in Bern, Switzerland. Starting in at least July 1998, Von Graffenried, through certain practices, assisted U.S. taxpayer-clients in evading their U.S. tax obligations, filing false federal tax returns with the Internal Revenue Service (IRS) and otherwise hiding assets maintained overseas from the IRS.
Von Graffenried opened and maintained undeclared accounts for U.S. taxpayers when it knew or should have known that, by doing so, it was helping these U.S. taxpayers violate their legal duties. Von Graffenried offered a variety of traditional Swiss banking services that it knew could assist, and that did assist, U.S. clients in the concealment of assets and income from the IRS. For example, Von Graffenried would hold all mail correspondence, including periodic statements and written communications for client review, thereby keeping documents reflecting the existence of the accounts outside the United States. Von Graffenried also offered numbered account services, replacing the accountholder’s identity with a number on bank statements and other documentation that was sent to the client.
In late 2008 and early 2009, Von Graffenried accepted accounts from two European nationals residing in the United States who had been forced to leave UBS and Credit Suisse, respectively. At the time it accepted the accounts, Von Graffenried knew that UBS was the target of an investigation by the Department of Justice. It also knew that both individuals had been forced to leave their respective banks because the banks were closing their accounts, and that both individuals had U.S. tax obligations and did not want the accounts disclosed to U.S. authorities. Senior management at Von Graffenried approved the opening of these accounts.
When Von Graffenried compliance personnel sought to obtain an IRS Form 8802, Application for U.S. Residency Certification, from one of the accountholders, that accountholder replied that completing the form would be problematic for him and that he believed the relationship manager knew why. The beneficial owner of the second account was referred by an external fiduciary, who handled the account at Credit Suisse. The fiduciary told a Von Graffenried relationship manager that Credit Suisse was attempting to exit its U.S. offshore clients to other banks if the clients would not sign an IRS Form W-9. The relationship manager agreed to take on the account, which was held by a Liechtenstein “stiftung,” or foundation, with the beneficial owner as the primary beneficiary and U.S. citizens as other beneficiaries.
Between July 1998 and July 2000, Von Graffenried accepted approximately two dozen accounts from a specific external asset manager. Von Graffenried was aware that the external asset manager seemed to be targeting U.S. clientele. Sixteen of the accounts were beneficially owned by individuals with U.S. tax and reporting obligations, and most of those accounts were held by U.S. citizens residing in the United States. At the time, Von Graffenried did not have a policy in place that required U.S. clients to show tax compliance. Consequently, Von Graffenried accepted these accounts without obtaining IRS Forms W-9 or assurances that the accounts were in fact tax compliant. By early 2009, Von Graffenried determined that some of the external asset manager’s accountholders likely were attempting to evade U.S. tax requirements. In 2010, Von Graffenried began to close the existing U.S.-related accounts that originated with the external asset manager. Von Graffenried did not complete the exit process for these accounts until late 2012.
Since Aug. 1, 2008, Von Graffenried held a total of 58 U.S.-related accounts with approximately $459 million in assets. Von Graffenried will pay a penalty of $287,000.
In accordance with the terms of the Swiss Bank Program, Von Graffenried mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at Von Graffenried who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Von Graffenried must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business and International Division for their substantial assistance, Kathleen E. Lyon, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Statement of United States Attorney James L. Santelle on His Retirement from Government ServiceRead the Press Release
The United States Attorney for the Eastern District of Wisconsin, James L. Santelle, today released the following remarks:
“This Sunday, July 5, 2015, marks my 30th anniversary of employment with the United States Department of Justice and nearly 35 years of public service in the United States Government.
At this important milestone, I have decided that this is the right time to conclude my five and one-half years as the United States Attorney for the people of Eastern Wisconsin. I expect to spend many of the days of this month in my present position, completing a number of projects and initiatives—related to the litigation, community, and administrative functions of my office—that have been and remain important to our goals and missions.
I am exceptionally mindful and supremely appreciative of the many, enriching and strengthening opportunities that the United States of America, including the United States Department of Justice, has extended to me and in which it has supported me unfailingly.
Following my graduation in 1983 from the University of Chicago Law School, the Honorable Robert W. Warren, United States District Judge for the Eastern District of Wisconsin, brought me home to Milwaukee for a two-year term as one of his judicial law clerks. It was in that position that I not only began my legal career but also came to understand with greater depth the importance of litigation—both criminal and civil—as a mechanism to promote the interests of our citizens, to ensure due process and equal protection, and to accomplish justice in furtherance of the principles on which our nation was founded.
Two years later, the Honorable J.P. Stadtmueller, then serving as the United States Attorney, extended to me the opportunity to pursue those goals further as an Assistant United States Attorney. He, like all of the other United States Attorneys who followed him, encouraged and sustained my growth as a litigator for the federal government. Throughout many of the past 30 years, it has been my supreme honor to prosecute a wide variety of criminal cases with the purpose of promoting the safety and security of our community and ensuring the protection of victims. I have also been privileged to litigate a broad spectrum of civil cases, defending the interests of the United States in some and affirmative seeking remedial relief on behalf of its citizens in others.
Along the way, my supervisors and colleagues have vested in me various special responsibilities and tasks—including work as a Senior Litigation Counsel, as an Executive Assistant United States Attorney, and, arguably with most case- and court-related focus, as the Civil Division Chief for this district and for the Western District of Michigan. In all of these litigation assignments—and in various opportunities to provide training to colleagues both locally and nationally—I have benefited immeasurably from the counsel, the direction, the wisdom, and the judgment of my many outstanding colleagues throughout the United States Department of Justice—including Assistant United States Attorneys, Litigating Division Attorneys, and equally skilled and highly experienced professional staff.
That same Justice Department, led by distinguished and committed Attorneys General and Deputy Attorneys General, has further permitted me the professionally transformative and personally enriching opportunities to serve in other special roles—including two years of work with the Iraqi people, their leadership, and their nation in developing the institutions of good government and the rule of law in areas throughout that still-emerging nation, including Baghdad and the United States Mission there. And for some 2-1/2 years, I was specially honored to serve in a leadership position of the Executive Office for United States Attorneys at the Robert F. Kennedy Main Justice Building in Washington, D.C.—working in collaboration with lawyers and others there and throughout the nation on issues, cases, challenges, and projects critical to the work of the Offices of United States Attorneys nationwide and other vital litigation units of the Department.
Since January of 2010, Attorneys General Eric H. Holder, Jr. and Loretta E. Lynch have not only supported, encouraged, and inspired me and my cherished colleagues of United States Attorneys nationwide in the pursuit of our assigned roles as chief federal law enforcement officers but they, along with their exceptionally engaged staffs, have also given to me and others the mechanisms, the discretion, the capacity, and the vision to do what the Department was initially and remains to this day commissioned to do—that is, serve our nation and its people in abiding, focused pursuit of an achievable aspiration—justice. I extend my deep thanks to Attorneys General Holder and Lynch for doing just that—and I communicate with equal spirit and sincerity my unqualified appreciation to and admiration of the many Assistant United States Attorneys, professional staff members, and the tireless, brave, and honorable law enforcement officers here in Eastern Wisconsin and in every state of our Union—who every day live up to and exceed our country’s expectations for the delivery of balanced justice, fair treatment, and thoughtful humanity, even in the midst of dramatic challenges and compelling human tragedy.
Because the job of United States Attorney typically concludes at or about the time that a new President is sworn in, and because I have been privileged already to have worked in the federal government for over three decades, I have long considered options for my next, suitable engagements with the community I so cherish and whose leadership representatives—in social service agencies, advocacy and victim support groups, health care and educational units, faith and familial associations, and many other industrious and productive non-governmental organizations—are assets of terrific depth and immeasurable scope. As my time with the United States Department of Justice nears a conclusion, I am looking forward to those continued, exhilarating engagements in this place—my home—and perhaps beyond. Among other pursuits, I hope to do some long-delayed writing about my life experiences, some teaching to those who may benefit from those modest perspectives, and perhaps even some renewed traveling to places where people—our fellow women and men—seek with hope and are committed to achieving the lives and livelihoods of the sort that we enjoy with imperfection but abundance here in America.
It has been and will always remain my honor to have served our nation and our citizenry, and I am appreciative beyond words for the opportunities for that that have been bestowed generously and graciously on me to engage in this work. To the people of Wisconsin and of our nation—to all of you who have animated and breathed life into mine—I extend, as I have in other farewell settings, this adopted commission: “More Life. The Great Work Begins.”
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Statement by Justice Department Spokesperson on Recent Church Fires Across Five StatesRead the Press Release
The following statement is attributable to Justice Department spokesperson Melanie Newman regarding recent church fires across five states:
“The federal law enforcement team of ATF, FBI, the Civil Rights Division and U.S. Attorneys’ Offices are actively investigating several church fires across five states that have occurred over the past two weeks. Preliminary investigations indicate that two of the fires were started by natural causes and one was the result of an electrical fire. All of the fires remain under active investigation and federal law enforcement continues to work to determine the cause of all of the fires. To date the investigations have not revealed any potential links between the fires.
“If in fact there is evidence to support hate crime charges in any one of these cases, the FBI, in coordination with the ATF and local authorities, will work closely with the Civil Rights Division and the U.S. Attorneys’ Offices to bring those forward.”
Statement by Attorney General Loretta E. Lynch on the Agreement in Principle with BP to Settle Civil Claims for the Deepwater Horizon Oil SpillRead the Press Release
Today, BP disclosed that it has reached agreements in principle with the United States, state, and local governments for a settlement of civil claims arising from the April 20, 2010, Deepwater Horizon oil spill in the Gulf of Mexico. The Attorney General made the following statement:
“Since the Deepwater Horizon oil spill – the largest environmental disaster in our nation’s history – the Justice Department has been fully committed to holding BP accountable, to achieving justice for the American people and to restoring the environment and the economy of the Gulf region at the expense of those responsible and not the American taxpayer. In December 2010, my predecessor, Attorney General Eric Holder, announced a civil lawsuit against BP and its co-defendants. Since that time, the Deepwater trial team has fought aggressively in federal court for an outcome that would achieve this mission, proving along the way that BP’s gross negligence resulted in the Deepwater disaster.
“Today, I am pleased to say that after productive discussions with BP over the previous several weeks, we have reached an agreement in principle that would justly and comprehensively address outstanding federal and state claims, including Clean Water Act civil penalties and natural resource damages. BP is also resolving significant economic claims with the impacted state and local governments. We will work diligently during the next several months to incorporate the agreement in principle into a consent decree, which would then undergo public comment before court approval. If approved by the court, this settlement would be the largest settlement with a single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come.
“I am so very grateful to the Deepwater civil trial team, made up of men and women from the department’s Environment and Natural Resources Division and Civil Division, as well as the incredible response, investigative and supporting efforts of the Departments of Homeland Security, Interior, Commerce and Agriculture and the Environmental Protection Agency, whose efforts have made this important step possible. I also appreciate the extraordinary effort of the many state leaders and environmental professionals who collaborated to advance this agreement in principle.”
Six Charged with Running Lottery ScamRead the Press Release
PHILADELPHIA – An indictment was filed today charging six people with running a “Jamaican lottery” scam in the United States between January 2012 and March 2015, announced United States Attorney Zane David Memeger and Homeland Security Investigations Special Agent-in-Charge John P. Kelleghan.Maurice Simmonds, were charged with conspiring to commit mail, bank and wire fraud in a scheme that obtained more than $200,000 from mostly elderly victims with diminished mental capacity.Simmonds, the organizer and leader of the conspirators, and some of the other members of the conspiracy were also charged with wire fraud and travel fraud as the result of specifically defrauding an elderly resident of Drexel Hill, Pennsylvania.
According to the indictment, the victims were informed that they had won the “Jamaican lottery” but that in order to claim their winnings they first needed to pay tens of thousands of dollars for certain “fees.” The victims were repeatedly coerced to provide the conspirators with cash, checks, and property but never received any winnings from the purported lottery.
If convicted, each defendant faces a substantial prison term, possible fines, special assessments, and supervised release.
The case was investigated by Homeland Security Investigations, the Delaware County District Attorney's Criminal Investigation Division Senior Exploitation Unit, and the Delaware County Office of Services for the Aging. It is being prosecuted by Assistant United States Attorney Anita Eve.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sentencings for June 29 - June 30, 2015Read the Press Release
Ricardo Miranda, aka “Pee-Wee”, 28, of Springhill, Florida, was sentenced by Federal District Court Judge Alan B. Johnson on June 30, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Miranda was arrested in Cheyenne, Wyoming. He received 100 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Steven Henry Kichelmann, 41, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 30, 2015, for conspiracy to distribute at least 200 grams of a mixture or substance containing a detectable amount of methamphetamine. Kichelmann was arrested in Salt Lake City, Utah. He received 130 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Casey Piburn, 29, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 30, 2015, for conspiracy to distribute no less than 350 grams of a mixture or substance containing a detectable amount of methamphetamine. Piburn was arrested in Rock Springs, Wyoming. He received 78 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 fine and a $200.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Fred Thomas Lowery, 62, of Alpine, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 29, 2015, for possession of child pornography. Lowery was arrested in Alpine, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment, a $400.00 fine, and restitution in the amount of $3,500.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
San Antonio Man Pleads Guilty to Bank Robberies Along I-35Read the Press Release
In Austin today, Willie James Cleveland, age 34, plead guilty to bank robberies he committed earlier this year along the Interstate 35 corridor between Austin and San Antonio announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
Appearing before United States Magistrate Judge Andrew W. Austin, Cleveland pleaded guilty to two counts of bank robbery with a dangerous weapon. By pleading guilty, Cleveland admitted he robbed nine banks between February 2015 and the end of April 2015. According to court records, Cleveland is responsible for the following bank robberies:
- February 12, 2015 – Woodforest National Bank – 1500 block of N. Loop 1604 East in San Antonio;
- February 18, 2015 – Woodforest National Bank – 9300 block of IH-35 South in Austin;
- February 26, 2015 – Wells Fargo Bank – 1000 block of Texas Highway 80 in San Marcos;
- March 14, 2015 – Wells Fargo Bank – 1200 block IH-35 South in New Braunfels;
- March 16, 2015 – Chase Bank – 5400 block of IH-35 North in Austin;
- March 26, 2015 and April 7, 2015 – Air Force Credit Union – 3100 block of Wurzbach in San Antonio;
- April 16, 2015 – BBVA Compass Bank – 7500 block of Wurzbach in San Antonio; and,
- April 18, 2015 – BBVA Compass Bank – 5700 block of Cameron Road in Austin.
The total amount stolen from all nine bank robberies was in excess of $50,000.00
Cleveland has remained in federal custody since his arrest by San Antonio Police Department Robbery detectives on April 20, 2015. By pleading guilty, Cleveland agrees to pay restitution for all nine bank robberies as well as restitution for a separate theft of $1,000. Cleveland faces up to 25 years in federal prison and a $250,000 fine on each of the two bank robbery counts.
The case resulted from a joint investigation by the FBI, San Antonio Police Department, Austin Police Department, San Marcos Police Department and the New Braunfels Police Department. This case is being prosecuted by Assistant United States Attorneys Michael Galdo and Grant Sparks.
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Ring Leaders Plead Guilty in $20 Million WIC & Food Stamp Fraud ConspiracyRead the Press Release
88 Defendants Have Now Pled Guilty In One Of The Largest
Food-Benefit Fraud Cases Ever Prosecuted
SAVANNAH, GEORGIA- Brandon and Kimberly Sapp, husband and wife from Atlanta, Georgia, pled guilty last week before United States District Judge William T. Moore, Jr. to running a criminal organization that defrauded the WIC and Food Stamp programs of approximately $20 million. The Sapps initially exercised their rights to a jury trial. However, after 2 days of testimony, they changed their pleas to guilty and the jury was dismissed. The Sapps are currently awaiting sentencing.
In June of 2014, The Sapps were indicted along with 86 other defendants in one of the largest WIC and Food-Stamp frauds ever prosecuted in the United States. To date, all 88 defendants have pled guilty.
Georgia’s Women, Infants and Children Program (WIC) provides healthy foods to low-income pregnant and postpartum women, and to infants and children up to age 5 who are nutritionally at risk. Participants in the WIC program receive 3-month supplies of WIC vouchers, which they can exchange at authorized stores for the healthy foods listed on the vouchers. The Food Stamp program, now known as the Supplemental Nutrition Assistance Program (SNAP), provides “Food Stamp” benefits to low-income families through Electronic Benefit Transfer (EBT) cards, which are similar to debit cards. It is unlawful to exchange WIC or Food Stamp benefits for cash. Both the WIC and Food Stamp programs are administered through the United States Department of Agriculture (USDA), and paid for by federal tax dollars.
According to evidence presented during the trial and numerous guilty plea hearings, the Sapps conspired with numerous others to open 14 phony grocery stores in Savannah, Macon, Atlanta, Garden City, Lithonia, LaGrange, Stone Mountain, Riverdale, and elsewhere for the purpose of buying WIC and Food Stamp benefits for cash. Once the stores were opened and stocked with enough prop foods to pass WIC and SNAP inspections, many of the defendants canvassed low-income neighborhoods and solicited WIC and Food Stamp participants to illegally exchange their benefits not for food, but for cash. The defendants purchased the WIC and Food Stamp benefits for cash at a fraction of the amount they received from the USDA by redeeming the benefits they had purchased. Typically, the conspirators would buy Food-Stamp benefits from participants for 50 cents on the dollar. The conspirators would buy WIC vouchers for even less, sometimes as low as 15 cents on the dollar.
54 defendants, including the Sapps, were charged together for their roles in organizing, running and operating the phony grocery stores set up throughout the state. The Sapps created a sophisticated criminal enterprise, which included district managers, who were in charge of getting cash to the stores each day for the purpose of buying WIC vouchers and Food Stamp benefits; store managers, who were in charge of taking orders and making sure enough prop foods stayed in the stores to pass inspections; and, drivers, who would take cash to WIC and Food Stamp participants in exchange for their benefits. During the course of the conspiracy, which lasted over 2 years, the criminal enterprise received over $30,000 each day in fraudulently obtained money from the USDA. The Sapps, who paid their coconspirators in weekly salary checks, were the beneficiaries of a large portion of the ill-gotten gains. They bought expensive cars, rang up over $1 million in credit card charges, withdrew over $3 million in cash from various accounts, and brazenly set up a record label named “We In Control,” the acronym of which is WIC. A listing of the 54 defendants convicted for their roles in the Sapps’ criminal enterprise is attached.
In addition to those responsible for owning or operating the phony grocery stores across the State, 34 recipients residing in the Southern District of Georgia who sold their WIC and Food Stamp benefits for cash to the Sapps’ organization were also charged. The number of recipients charged represents a small fraction of those who sold their food-program benefits for cash to the Sapps’ organization. Indeed, the number of WIC recipients whose vouchers were fraudulently purchased by the Sapp conspiracy exceeded 45,000. A significant percentage of the 45,000 individual WIC recipients were the children whose parents or guardians that chose 15 cents on the dollar over healthy foods for their children. Each of the 34 WIC and Food-Stamp recipients indicted either had a significant criminal history and/or traded significant amounts of food-program benefits. Each of the 34 recipient-defendants pled guilty to stealing from the United States. A listing of these defendants is attached.
United States Attorney Edward Tarver said, “This prosecution, one of the largest federal food programs fraud prosecutions in history, was a complete success. Within one year, all of the 88 defendants charged have been convicted. Justice was swift and those convicted have been held accountable for stealing millions of dollars in federal tax dollars intended to feed the most needy families and children in our state. No matter how complex the scheme to steal tax payer dollars, this United States Attorney’s Office and its law enforcement partners will work tirelessly to bring those responsible to justice.”
Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations, stated, “The USDA-OIG conducts hundreds of investigations nationwide on a yearly basis regarding EBT fraud. In 2010, we became aware of a large number of Georgia WIC vendors redeeming tremendous dollar amounts from the alleged sale of WIC items. These small establishments were, on average, redeeming more in WIC sales than chain stores such as Kroger and Wal-Mart. From 2010 through the present, USDA-OIG conducted 16 separate WIC investigations, primarily in the Southern District of Georgia, with the assistance of DOJ, the Georgia Department of Public Health, and other federal and state law enforcement agencies. One of those investigations determined that a criminal organization, led by Brandon and Kimberly Sapp, operated phony grocery stores across the State for the sole purpose of defrauding the WIC and EBT programs. The investigation of the Sapps netted the largest WIC fraud in the history of USDA. The U.S. Attorney’s Office, Southern District of Georgia, in a bold and unprecedented move, indicted 88 individuals, including 34 WIC and EBT recipients, for their roles in the criminal enterprise. The Sapp prosecution netted a perfect score for the taxpayers, with all 88 defendants pleading guilty to various charges. So far, the total restitution ordered in the Sapp investigation stands at $61,249,279. Brandon and Kimberly Sapp will be sentenced later this summer to what surely will sit as the steepest number of years in prison. By indicting and convicting WIC and EBT recipients, the U. S. Attorney’s Office has set a new precedent that basically says, ‘You will suffer the same consequences for selling benefits as those who purchase those benefits.’ It is with much gratitude that we applaud and commend DOJ and all of our federal, state, and local law enforcement partners in this joint effort.”
“Fraud of any kind against WIC will not be tolerated, and offenders will be prosecuted and convicted,” said Brenda Fitzgerald, M.D., Commissioner of the Georgia Department of Public Health. “I applaud the U.S. Department of Justice, all of our federal and state partners, and our own Inspector General's office for taking action to send a strong message to those who plan to defraud American taxpayers and harm a program that many Georgians rely on to provide high quality, nutritious food for their children and families.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "The Sapps’ convictions mark the conclusion of a lengthy and complex fraud investigation whose subjects were targeting federal government programs intended for those in need. These defendants, working together to illegally profit from federal food based assistance programs, showed a complete disregard for those who were truly in need. The FBI is pleased with the role that it played in ensuring that these individuals are being held accountable for their greed based criminal conduct."
The investigation of this case was led by Special Agents with the United States Department of Agriculture, Office of Inspector General; Investigators with the Georgia Department of Health and Human Services and Georgia Department of Public Health, Office of Inspector General; and forensic auditors with the United States Attorney’s Office and the FBI. Assistant United States Attorney E. Greg Gilluly, First Assistant United States Attorney, James D. Durham and, both with the U. S. Attorney’s Office for the Southern District of Georgia, prosecuted the cases for the United States.
Defendants Convicted in 54-Defendant Indictment
Brandon Sapp, a/k/a “B,” 38, Austell, Georgia, awaiting sentencing.
Kimberly Sapp, a/k/a “The Money Wizard,” 35, Austell, Georgia, awaiting sentencing.
Calvin Williams, a/k/a “Slick,” 40, Atlanta, Georgia; sentenced to 78 months in prison and ordered to pay $1,529,951.04 in restitution.
Isaac Martin, a/k/a “Ike,” 38, Jonesboro, Georgia; sentenced to 48 months in prison and ordered to pay $1,169,962.56 in restitution.
John P. Jones, a/k/a “JP,” 40, Ellenwood, Georgia; sentenced to 46 months in prison and ordered to pay $1,079,965.44 in restitution.
Wayne Jackson, a/k/a “J5,” 33, Atlanta, Georgia; sentenced to 54 months in prison and ordered to pay $1,124,964.00 in restitution.
Gregory Thomas, a/k/a “Rich Gregg,” 38, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $1,402,465.31 in restitution.
Kerry Adams, a/k/a “Big Skreed,” a/k/a “Scrump,” 39, Atlanta, Georgia; sentenced to 60 months in prison and ordered to pay $1,402,465.31 in restitution.
Brian Lockhart, a/k/a “Lock,” 48, Atlanta, Georgia; sentenced to 40 months in prison and ordered to pay $989,968.32 in restitution.
Henry Ward, a/k/a “Tye,” 33, Savannah, Georgia; sentenced to 60 months in prison and ordered to pay $1,259,959.68 in restitution.
Vincent Harper, 41, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $1,304,598.24 in restitution.
Ostrando S. Brock, a/k/a “Shawn,” 33, Mableton, Georgia; sentenced to 38 months in prison and ordered to pay $1,214,961.12 in restitution.
Jesse McCoy, a/k/a “Jay Mac,” 43, Ellenwood, Georgia; sentenced to 36 months in prison and ordered to pay $944,969.76 in restitution.
Terence Cosby, a/k/a “Me Gold,” 34, Savannah, Georgia; sentenced to 30 months in prison and order to pay $1,124,959.68 in restitution.
Raymond Hargrove, 28, Savannah, Georgia; sentenced to 48 months in prison and ordered to pay $1,484,952.48 in restitution.
Jacqueline Beauchamp, a/k/a “Jackie,” 26, Pooler, Georgia; sentenced to 40 months in prison and ordered to pay $989,968.32 in restitution.
Elizabeth Beauchamp, 29, Pooler, Georgia; sentenced to 30 months in prison and ordered to pay $404,987.04 in restitution.
Gerald Patilla, a/k/a “PT,” 31, Savannah, Georgia; sentenced to 36 months in prison and ordered to pay $989,968.32 in restitution.
Clayton Talley, 32, Pooler, Georgia; sentenced to 30 months in prison and ordered to pay $224,992.80 in restitution.
Ebony Jacobs, 28, Savannah, Georgia; sentenced to 30 months in prison and ordered to pay $359,988.48 in restitution.
Olajawon Simmons, a/k/a “Wan,” a/k/a “Won,” 28, Savannah, Georgia; sentenced to 40 months in prison and ordered to pay $629,979.84 in restitution.
Reginald Simmons, a/k/a “Reggie,” 29, Savannah, Georgia; sentenced to 30 months in prison and ordered to pay $764,975.52 in restitution.
Gary Grier, a/k/a “Bundee,” a/k/a “Dee,” 38, Atlanta, Georgia; sentenced to 34 months in prison and ordered to pay $1,124,964.00 in restitution.
Magregor Warner, a/k/a “KB,” 41, Atlanta, Georgia; sentenced to 40 months in prison and ordered to pay $1,124,964.00 in restitution.
Benjamin Tookes, a/k/a “B,” a/k/a “Ben,” 41, Atlanta, Georgia; sentenced to 42 months in prison and ordered to pay $719,976.96 in restitution.
Carlos Davis, a/k/a “Lo,” 39, Atlanta, Georgia; sentenced to 30 months in prison and ordered to pay $1,034,966.88 in restitution.
Raymond Hixon, a/k/a “Dre,” 39, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $809,974.08 in restitution.
Thomas Thorton, a/k/a “Big Bo,” 28, Atlanta, Georgia; sentenced to 40 months in prison and ordered to pay $1,394,955.30 in restitution.
Branden Jordan, 33, Atlanta, Georgia; sentenced to 30 months in prison and ordered to pay $130,489.71 in restitution.
Mark White, 39, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $674,978.40 in restitution.
Tobias Render, a/k/a “Tee,” a/k/a “Toby,” 34, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $764,975.52 in restitution.
Eric Burkes, a/k/a “E,” 26, Atlanta, Georgia, sentenced to 3 years of probation and ordered to pay $217,482.85 in restitution.
Aryay Strong, 32, Atlanta, Georgia; sentenced to 30 months in prison and ordered to pay $179,994.24 in restitution.
Marshall Sears, 39, Atlanta, Georgia; sentenced to 42 months in prison and ordered to pay $1,349,956.80 in restitution.
Suleyma Arreola, 22, Marietta, Georgia; sentenced to 24 months in prison and ordered to pay $449,985.60 in restitution.
Emory White, 33, Marietta, Georgia; sentenced to 60 months in prison and ordered to pay $899,971.20 in restitution.
Obryan Moore, a/k/a “OB,” 30, Powder Springs, Georgia; sentenced to 46 in prison and ordered to pay $449,985.60 in restitution.
Terry Mitchell, Jr., 44, LaGrange, Georgia; sentenced to 30 months in prison and ordered to pay $674,978.40 in restitution.
Corey Mitchell, a/k/a “Stick,” 40, Atlanta, Georgia; sentenced to 42 months in prison and ordered to pay $1,034,966.86 in restitution.
Luquoise Clay, a/k/a “Qui,” 31, Atlanta, Georgia; sentenced to 4 years of probation and ordered to pay $539,982.72 in restitution.
Jessica Cameron, a/k/a “Keta,” 31, Grantville, Georgia; sentenced to 5 years of probation and ordered to pay $539,982.72 in restitution.
Joshua Dunlap, 39, Monticello, Georgia; sentenced to 24 months in prison and ordered to pay $494,984.16 in restitution.
Maurice Fudge, a/k/a “Reese,” 40, Macon, Georgia; sentenced to 25 months in prison and ordered to pay $314,989.92 in restitution.
Quinton Matthews, a/k/a “Q,” a/k/a “Chuck Matthews,” 40, Macon, Georgia; sentenced to 24 months in prison and ordered to pay $629,979.84 in restitution.
Charles Jackson, a/k/a “Cooley Slim,” a/k/a “Corey,” 36 Lithia Springs, Georgia; sentenced to 42 months in prison and ordered to pay $539,982.72 in restitution.
Ronnie Zachary, a/k/a “City,” 30, Byron, Georgia; sentenced to 38 months in prison and ordered to pay $584,981.28 in restitution.
Porsha Drewery, a/k/a “Parsha,” 38, Macon, Georgia; sentenced to 38 months in prison and ordered to pay $1,619,948.10 in restitution.
Taquilla Johnson, a/k/a “Quilla,” 36, Macon, Georgia; sentenced to 30 months in prison and ordered to pay $478,462.27 in restitution.
Raheem Waller, 30, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $629,979.84 in restitution.
Travis Rich, 36, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $1,259,959.68 in restitution.
Marlon Dobbins, 30, Atlanta, Georgia; sentenced to 36 months in prison and ordered to pay $1,079,965.44 in restitution.
Derrick Heard, a/k/a “Da Man,” a/k/a “Heard,” 44, Atlanta, Georgia; sentenced to 48 months in prison and ordered to pay $18,515,977.21 in restitution.
Roderick Turner, a/k/a “Rah Rah,” 37, Rockmart, Georgia; sentenced to 19 months in prison and ordered to pay $391,463.13 in restitution.
Antonio Dorsey, a/k/a “Bear,” 35, East Point, Georgia; awaiting sentencing.
List of Recipient-Defendants Charged in Separate Indictments
Chiquita Armstead, 41, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $3,008.71 in restitution.
Yontalay Bennett, 29, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $5,092.24 in restitution.
Precious T. Bevins, 25, Garden City, Georgia; sentenced to 2 years of probation and ordered to pay $4,407.18 in restitution.
Shanika C. Blige, 23, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $7,336.95 in restitution.
Deanna W. Boles, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $4,663.33 in restitution.
Candice Bostick, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,353.15 in restitution.
Danitra Bostick, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,060.71 in restitution.
Tia Bowers, 26, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,761.28 in restitution.
Tonya Clark, 42, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $6,963.34 in restitution.
Jocelyn Easterling, 49, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $10,233.97 in restitution.
Ebony Ellison, 28, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $5393.11 in restitution.
Deonka Ellison, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $6,079.69 in restitution.
Joanne Ferguson, 43, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $7,027.83 in restitution.
Fanchon Hill, 27, Jesup, Georgia; sentenced to 2 years of probation and ordered to pay $3,974.84 in restitution.
Shaquanna Hooper, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,332.58 in restitution.
Tameshia N. Jackson, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $3683.13 in restitution.
Koneshia N. Jenkins, 27, Pembroke, Georgia; sentenced to 2 years of probation and ordered to pay $5,931.47 in restitution.
Latisha V. Jones, 31, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $6124.88 in restitution.
Jameise’ Mayberry, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $10,460.00 in restitution.
Quinta Meggett-Mike, 38, Garden City, Georgia; sentenced to 2 years of probation and ordered to pay $9,228.34 in restitution.
Ebony Roberson, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,246.97 in restitution.
Shakeila D. Roberts, 23, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,215.98 in restitution.
Jasmine Sammuel, a/k/a “Jazmi Beasley,” a/k/a “Jazmi Smith,” 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $4,256,66 in restitution.
Deanna K. Scott, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $1,991.76 in restitution.
Whitney Denise Stokes, 26, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $7174.01 in restitution.
Regina C. Styles, 22, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,261.13 in restitution.
Hope Taylor, 34, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,651.06 in restitution.
Ebonilaestei Tremble, 35, Savannah, Georgia; sentenced to 4 years of probation and ordered to pay $27,458.95 in restitution.
Linda J. Walker, 23, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,596.64 in restitution.
Tiera L. Walthour, 24, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $4,063.37 in restitution.
Alexis Washington, 27, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $2,231.79 in restitution.
Rhonda Washington, 32, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $9,948.59 in restitution.
Amber Shaniqua Wilson, 24, Savannah, Georgia; sentenced to 6 months in prison, 12 months of supervised release and ordered to pay $2817.30 in restitution.
Ke’Airra Young, 25, Savannah, Georgia; sentenced to 2 years of probation and ordered to pay $14,039.35 in restitution.
Previously Convicted Drug Felon Sentenced for Methamphetamine ChargesRead the Press Release
A man found in possession of methamphetamine was sentenced July 1, 2015, to more than 17 years in federal prison.
Mackenzie Everett Servantez, 26, from Mason City, Iowa, received the prison term after a February 13, 2015, guilty plea to possession more than 5 grams of methamphetamine. Servantez was previously convicted of a felony drug offense in 2007.
In a plea agreement, Servantez admitted on October 15, 2014, he was in possession of more than 5 grams of actual (pure) methamphetamine. Servantez was stopped by law enforcement after a car chase which turned into a foot pursuit. Servantez was found in possession of 19.82 grams of pure methamphetamine, at least some of which he intended to distribute. Officers also found a scale, a meth pipe and two cellular phones. Approximately $1227 cash was recovered from Servantez.
Servantez was sentenced in Cedar Rapids, Iowa, by United States District Court Chief Judge Linda R. Reade. Schroeder was sentenced to 210 months’ imprisonment. A special assessment of $100 was imposed. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system. Servantez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office; Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3070.
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Pensacola Man Sentenced to 21 Months for Wire FraudRead the Press Release
PENSACOLA, FLORIDA – Kevin D. Webster, 44, of Pensacola, Florida, was sentenced today to 21 months in prison for wire fraud. Restitution was ordered in the amount of $144,229.07. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his guilty plea in February 2015, Webster admitted that, between 2008 and 2012, as an insurance agent registered in Florida and other states, he knowingly defrauded NFL and NBA player clients by falsely representing that he had used the clients’ money to obtain umbrella insurance policies, with coverage amounts ranging from $5 million to $1 million, from United States Liability Insurance Group. Instead, Webster stole approximately $140,000 in client payments meant for policy premiums.
The case was investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney Alicia H. Kim.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Owners of Popular Ocean City, New Jersey, Pizza Restaurants Admit Tax Evasion, Structuring Crimes and Making False StatementsRead the Press Release
CAMDEN, N.J. – The owners of popular Ocean City, New Jersey, restaurant chain Manco & Manco Pizza today admitted evading taxes, structuring cash payments to avoid reporting requirements and lying to IRS special agents, U.S. Attorney Paul J. Fishman announced.
Charles Bangle, 55, of Somers Point, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 5 of an indictment charging him with evading taxes with respect to his 2010 personal tax returns and Count 30 charging him with structuring financial transactions in 2011 to avoid reporting requirements. Mary Bangle, 54, also of Somers Point, pleaded guilty to Count 7 of the same indictment, which charges her with knowingly making materially false statements to IRS special agents.
According to the documents filed in this case and statements made in court:
Manco & Manco Pizza – formerly Mack & Manco – is an iconic restaurant located in the heart of Ocean City’s Boardwalk and maintains three stores on the Boardwalk and one store in Somers Point. Charles and Mary Bangle were employees of Mack & Manco Pizza until they purchased a controlling interest in 2011. Charles Bangle handled the day-to-day operations of the business and Mary Bangle was responsible for handling cash and payroll.
Charles Bangle admitted to substantially underreporting his income on his 2010 U.S. individual income tax return, specifically, failing to report additional taxable income that he deposited in cash into his bank account during that year. According to the indictment, by only reporting $127,955 in 2010 and omitting an additional $263,113 in taxable income, Charles Bangle avoided $91,577 in taxes. Charles Bangle also admitted to making cash deposits into his TD Bank account in February of 2011 in increments of less than $10,000 in order to prevent TD Bank from filing a Currency Transaction Report with the U.S. Department of Treasury.
Mary Bangle admitted that she was interviewed by IRS special agents on May 30, 2012 at which time she was asked questions about her personal bank account. Mary Bangle falsely stated that, when cash receipts came into the business, she only retained enough to pay that week’s payroll and some bills, when in fact she retained cash receipts for her personal use. Mary Bangle also lied to agents about the amount of cash deposited into her personal banking account, which was substantially more that the net pay listed on her W-2 forms issued by Manco and Manco Pizza.
The tax evasion count to which Charles Bangle pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss arising out of the offense. The structuring count to which Charles Bangle pleaded guilty carries a maximum potential penalty of ten years in prison and a $250,000 fine or twice the gain or loss from the offense.
The false statements charge to which Mary Bangle pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for both defendants is scheduled for Oct. 8, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel:
Charles Bangle: Vincent Sarubbi Esq., Haddonfield, New Jersey; Laurence S. Shtasel Esq., Philadelphia
Mary Bangle: Rocco Cipparone Esq., Haddon Heights, New Jersey
Operation Third World Results in Federal Indictment Against 39 DefendantsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a 58 page federal indictment charging 39 defendants in Operation Third World, an extensive investigation aimed at dismantling a violent drug trafficking network primarily operating out of Baton Rouge and Ascension Parish.
The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges, including allegations of a murder plot, threats to use a hatchet to cut off fingers, use of a daycare to distribute and store cocaine and proceeds from cocaine sales, and using a child to help transport 18 kilograms of cocaine. When the defendants were recently arrested pursuant to the indictment, agents seized cocaine, a stolen AR-15, a shotgun, three handguns, and substantial amounts of cash believed to be drug proceeds. On a previous occasion, agents seized 6 firearms and over $150,000 in cash as part of this operation.
The charged defendants are listed below. They face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity, although one of the charged defendants was killed on the day of the indictment.
- Kelly D. Williams, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of 28 grams or more of crack cocaine; distribution of oxycodone; conspiracy to acquire controlled substances by fraud; felon in possession of a firearm; unlawful use of communications facilities; and forfeiture.
- Charles C. London, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of MDMC and BZP; distribution of 28 grams or more of crack cocaine; distribution of cocaine, MDMC and 4-FMC; distribution of cocaine and BZP; distribution of cocaine; possession with intent to distribute BZP; felon in possession of a firearm; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of communications facilities; and forfeiture.
- C’Prien C. Nicholas, age 30, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful travel in aid of a racketeering enterprise; unlawful use of communications facilities; and forfeiture.
- Demitoris C. Alexander, age 49, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful use of communications facilities; and forfeiture.
- Tachi J. Williams, age 29, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Artey D. Foulcard, age 36, of Franklin, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Sylvester S. Smith, age 35, of Houston, Texas, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Myron Chevelle Hart, age 37, of Baker, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of 28 grams or more of crack cocaine; unlawful use of communications facilities; and forfeiture.
- Donald Sanders, Jr., age 38, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Derrick D. Hilliard, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Willie C. Lewis, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Sekari Davis Washington, age 37, of Zachary, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; conspiracy to acquire controlled substances by fraud; unlawful use of communications facilities; and forfeiture.
- Christopher Montrell Cooper, age 21, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Clarence White, age 51, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Vernon A. Powell, age 34, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Devon D. Foster, age 36, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Kenneth W. Gardner, age 57, of Zachary, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Eric O’Neal Selders, age 43, of Independence, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- James Edward Allen, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Colin Y. Knox, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Dwan M. Delavallade, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Kelvin Ronelle Johnson, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine, MDMC and 4-FMC; unlawful use of communications facilities; and forfeiture.
- Demarcus D. Norris, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Gerry Earl Griffin, age 44, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of oxycodone; unlawful use of communications facilities; and forfeiture.
- Kimberly Ann London, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Gregory C. Walker, age 51, of Donaldsonville, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- D’Andre Tavis Smith, deceased.
- Jeremy James Washington, age 36, of Donaldsonville, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Rudy McVay Cain, II, age 28, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Myron Derell Mills, age 35, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Johnny C. Alexander, age 34, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with intent to distribute 5 kilograms or more of cocaine; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Andrea Rose Rumore, age 33, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; unlawful use of communications facilities, and forfeiture.
- Stephanie A. Zeringue, age 28, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful use of communications facilities; and forfeiture.
- Susan Lynn Zeringue, age 32, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Ashley H. Hebert, age 26, of Thibodaux, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; unlawful travel in aid of a racketeering enterprise; and forfeiture.
- Joseph D. Sergent, age 34, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute MDMA and forfeiture.
- Keeyon Mondrell Sanders, age 33, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute MDMA and forfeiture.
- Jerron Albritton, age 20, of Baton Rouge, Louisiana, is charged with possession with intent to distribute marijuana and forfeiture.
- Barbara Deyatta Jordon, age 25, of Baton Rouge, Louisiana, is charged with misprision of a felony and forfeiture.
U.S. Attorney Green stated: “This indictment, which contains chilling allegations of a murder plot and other violence, is aimed squarely at the heart of a violent drug trafficking organization allegedly responsible for spreading significant amounts of crack cocaine, powder cocaine, MDMA, and other illegal drugs throughout our district. Every community and every person deserves peace, security, and freedom from the tyranny of violent drug traffickers. This indictment seeks to advance that goal. The combined federal, state, and local effort, which resulted in the indictment, reflects once again the unified front against crime in this district. I greatly appreciate the tremendous dedication and hard work by the agents and prosecutors working on this important matter.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “The benchmark for the success of any operation lies in the ties that bind the brotherhood of law enforcement officers who put their lives on the line each and every day to rid our communities of dangerous drugs. DEA’s complex Operation Third World did exactly that. With the Middle District U.S. Attorney’s Office leading the charge, DEA Baton Rouge and our area partners dealt a significant blow to a violent poly drug trafficking organization once thought to be untouchable. Today’s efforts prove that with investigative grit and community involvement, all drug dealers can be touched. This is only the beginning.”
East Baton Rouge Parish Sheriff Sid Gautreaux stated: “I am honored that the East Baton Rouge Sheriff’s Office was part of this important operation. I will continue to dedicate our resources and personnel to fight illegal drug and gun trafficking. We will work with our local, state, and federal counterparts to aggressively combat crime that plagues our community.”
Ascension Parish Sheriff Jeff Wiley stated: “This is the culmination of weeks and months of hard, dangerous work by a team of agents from federal and local agencies. The fruits of this effort are in the arrests of major drug dealers in and around Ascension Parish. It is evidence, once again, that joint operations are the key to success and we look forward to timely prosecution and significant jail sentences for these high level drug dealers.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter, Cam Le, and Adam Ptashkin, with assistance from Assistant United States Attorneys Robert Piedrahita, Kevin Sanchez, and Jamie Flowers.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Niagara Falls Man Pleads Guilty to Child Pornography Charge and Violating Supervised ReleaseRead 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 Michael Weaver, 39, of Niagara Falls, NY, pleaded guilty to possession of child pornography before U.S. District Judge Richard J. Arcara. The defendant also pleaded guilty to violating the terms of his supervised release. The charges carry a minimum penalty of 10 years in prison, a maximum of 20, and a $250,000 fine.
Assistant U.S. Attorney Carol G. Bridge, who is handling the case, stated that Weaver was previously convicted in October 2007 of possession of child pornography for being in possession of approximately 16,000 images and 153 videos of child pornography. The defendant was sentenced to 78 months and five years supervised release. Weaver was released and placed on supervised release on August 30, 2013.One condition of his supervised release prevented the defendant from possessing cellular telephones without the authorization of the U.S. Probation Department. On December 16, 2014, during a routine visit, probation officers found Weaver had two unauthorized cellular telephones. The defendant admitted that he got the phones in order to download images of child pornography. A forensic examination found that the phones contained 1500 images and 20 videos of child pornography. Many of the images were of prepubescent children under the age of 12 that depicted violence between adults and the children.
The plea is the result of an investigation by United States Probation Department, under the direction of Anthony SanGiacomo and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
Sentencing is scheduled for October 14, 2015 at 12:30 p.m. before Judge Arcara.
New York Man Sentenced to 10 Years in Prison for Cross-Country Drug Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A Long Island City, New York, man was sentenced today to 120 months in prison for his role in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Paul J. Fishman announced.
Robert Crawford, 40, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Crawford, Melvin Feliz, 48, of Englewood Cliffs, New Jersey, and Irving Olivero-Pena, 42, of Edgewater, New Jersey admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.
In addition to the prison term, Judge McNulty sentenced Crawford to serve five of supervised release. Feliz and Olivero-Pena also pleaded guilty to their roles in the scheme and await sentencing.
U.S. Attorney Fishman credited special agents from the Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Brian L. Urbano of the U.S. Attorney’s Office Criminal Division and Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division in Newark.
Defense counsel: Rubin Sinins Esq., Springfield, New Jersey
New Jersey Man Sentenced for Passport FraudRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced that Robert Codjoe, 54, of Piscataway, New Jersey, was sentenced today to one year of probation, six months of home confinement, and a $2,000 fine for committing passport fraud.
In November 1998, Codjoe applied for and was issued a U.S. passport in the name “Robert Codjoe.” In November 2000, he applied for and was issued a U.S. passport in the name “Robert Codjoe Nii.” Consequently, for many years, Codjoe maintained two United States passports each bearing his photograph, but issued under different names, different social security numbers, and different dates of birth. In July 2009, Codjoe renewed the passport issued in the name “Robert Codjoe” by filing a passport renewal application with the National Passport Center located in Portsmouth, N.H. In June 2011, he attempted to renew the passport issued in the name “Robert Codjoe Nii” by filing a passport renewal application with the National Passport Center. That application contained several false statements, including Codjoe’s name and date of birth.
The National Passport Center referred Codjoe’s renewal application for investigation. The investigation uncovered Condjoe’s fraud and resulted in a federal grand jury indicting him for passport fraud in March 2014. Codjoe pleaded guilty on February 25, 2015.
This case was investigated by Diplomatic Security Service of the U.S. State Department. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman.
Michael Ray Mangum Sentenced to 120 Months on a-PVP ChargesRead the Press Release
GREENEVILLE, Tenn. – Michael Ray Mangum, 43, of Kingsport, Tenn., was sentenced on July 2, 2015, by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 120 months in federal prison for his role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in and around the Sullivan County area. A-PVP is a synthetic drug which is commonly referred to on the street as “gravel” or “flakka.”
Mangum’s federal prison sentence was ordered to run consecutively to a number of sentences in Sullivan and Greene County General Sessions Court and Washington County Criminal Court.
According to the plea agreement on file with the U.S. District Court Clerk, Mangum admitted that during 2013 and 2014 he conspired to distribute, and was accountable for a conservative estimate of 4,000 grams of a-PVP. He made repeated trips to out of state suppliers in North Carolina to obtain a-PVP and brought it back to the sell in the Sullivan County area, often out of motels. He also agreed that he supplied a-PVP to another individual in exchange for allowing him to sell a-PVP from that person’s residence. Mangum admitted to being a user of a-PVP, but he told law enforcement officers that he was in it for the money.
Others who have been previously sentenced in this a-PVP trafficking investigation include Austin Michael Stallard, Johnny Michael Stallard, Phillip Wayne Mullins, Johnny White and Evelyn Vickers, who were sentenced to 121 months, 180 months, 151 months, 120 months and 110 months in federal prison respectively.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Michael Ray Mangum and his co-defendants include the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; Sullivan County Sheriff’s Office; Kingsport Police Department; Hawkins County Sheriff’s Department; Johnson City Police Department; Greeneville Police Department; Hendersonville, North Carolina Police Department; and, Scott County, Virginia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Miami-Dade County Man Sentenced to 300 Months for Receiving and Possessing Child PornographyRead the Press Release
A Miami-Dade County resident was sentenced to a term of imprisonment of 300 months for receipt of child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Neil Melofchik, Acting Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), and Daniel J. Oates, Chief, Miami Beach Police Department (MBPD).
Juan Roman, 57, of Miami, was sentenced today by United States District Judge James Lawrence King to 300 months in prison, to be followed by a lifetime of supervised release. Roman was also ordered to register as a sex offender upon his release from prison. Roman previously pled guilty to receiving and possessing visual depictions of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2) and (a)(4).
According to court documents and information provided in court, on August 28, 2014, law enforcement officers executed a search warrant at Roman’s home after receiving information that a computer user at the residence was downloading child pornography. While executing the search warrant, agents found Roman’s laptop and hard drives. A forensic examination of the devices revealed that they contained videos and images of child pornography. According to court records, Roman, a retired officer from the City of Miami Police Department, produced some of the videos depicting the sexual exploitation of minors and also downloaded multiple files of child pornography from the internet.
Mr. Ferrer commended the investigative efforts of ICE-HSI, USSS, MDPD, and MBPD. This case was prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Members and Associates of Violent Yonkers Street Gang Charged in White Plains Federal Court with Racketeering Offenses, Including May 2014 Murder in Greenacres, FloridaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department, announced the unsealing yesterday of a Second Superseding Indictment charging 11 members and associates of a Yonkers-based street gang, “Cruddy 650,” with participation in a racketeering conspiracy, murder in aid of racketeering, Hobbs Act robbery conspiracy, bank robbery, firearms offenses, and witness tampering. The original Indictment, filed in November 2014, charged four Cruddy 650 affiliates with Hobbs Act robbery conspiracy, bank robbery, and witness tampering. The First Superseding Indictment, filed in February 2015, charged eight Cruddy 650 affiliates with Hobbs Act robbery conspiracy, bank robbery, firearms offenses, and witness tampering. Yesterday’s Superseding Indictment charges three additional Cruddy 650 members and associates (as well as the eight defendants previously charged) and adds racketeering charges, including charges relating to the murder of Andre Folsom, who was shot through the head in the parking lot of a Walmart store in Greenacres, Florida, on May 26, 2014.
Nine of the eleven defendants charged in the Superseding Indictment unsealed yesterday were previously in state or federal custody. PAUL NEGRIN was arrested yesterday in Hollywood, Florida, and was presented in federal court in Ft. Lauderdale, Florida. JAMES MORRIS was arrested yesterday in Yonkers and was presented in White Plains federal court. The case is assigned to U.S. District Judge Vincent Briccetti.
U.S. Attorney Preet Bharara said: “As alleged, members of the Cruddy 650 gang terrorized the streets and businesses of southwest Yonkers with countless robberies and other acts of violence. Members of the gang also allegedly took their criminal activities on the road, traveling to Florida, leading to tragic consequences for murder victim Andre Folsom and his family. I want to commend and thank the FBI and the Yonkers Police Department on their outstanding investigation.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “We now have all 11, herein identified, members of the Cruddy 650 enterprise in custody where they can answer for the full extent of their alleged criminal activities. The FBI thanks all its law enforcement partners, with whom we worked tirelessly, not only in the New York area, but up and down the East Coast. We will continue to protect our communities from senseless violence, such as that alleged in the indictments, which serves only to promote illegal operations and terrify anyone who threatens their activities.”
Yonkers Police Commissioner Charles Gardner stated: “This group of individuals recklessly engaged in numerous violent crimes against our residents. These indictments will remove these violent gang members from our community and make our city a safer place. Ongoing investigations with our federal law enforcement partners will continue to target those persons who choose to engage in this type of activity. I would like to thank the US Attorney’s Office for the Southern District of New York and the FBI Violent Crimes Task force for their tireless efforts in this investigation.”
According to the allegations in the Second Superseding Indictment and other documents in the public record[1]:
Cruddy 650 is a criminal enterprise operating principally in and around the City of Yonkers, New York. Cruddy 650 was founded in 2013 as the result of an alliance between gang members hailing from various parts of Yonkers, including Riverdale Avenue, Woodworth Avenue, Warburton Avenue, and Cottage Place Gardens. Even after the alliance, members of the gang hailing from Cottage Place Gardens continued to identify primarily as “Cruddy,” while members of the gang hailing from Riverdale Avenue identified primarily as “650.”
Cruddy 650 members and associates protected and promoted the gang’s power and territory, and sought to enrich its members, through acts of violence, intimidation, and the sale of illegal drugs. During the time period relevant to the Superseding Indictment, members and associates of Cruddy 650 were responsible for multiple shootings and attempted murders, street robberies, robberies of banks and other businesses, bank fraud, witness tampering, and the distribution of narcotics, including crack cocaine and marijuana. Victims of the shootings and other acts of violence perpetrated by members of Cruddy 650 included both rival gang members and innocent bystanders.
The violence of the Cruddy 650 enterprise and its members spread from Yonkers, New York, to Florida. On or about May 26, 2014, KEVIN WILTSHIRE murdered Andre Folsom in Greenacres, Florida, shooting him in the head during a dispute in the parking lot of a Walmart store. The Second Superseding Indictment alleges that WILTSHIRE committed the murder in order to maintain and increase his position in Cruddy 650.
* * *
Counts One and Two of the Second Superseding Indictment charge DIONDRE CARLISLE, MYKAI DAVIS, RAKEEM FLOWERS, TYRONE SMITH, WILTSHIRE, SAUDY GUERRERO, DARNELL KIDD, JAMES MORRIS, and PAUL NEGRIN with racketeering conspiracy and firearms offenses in connection with that conspiracy. As alleged, various combinations of those defendants committed at least four shootings, and 11 robberies or attempted robberies, six of which were armed, in furtherance of the conspiracy. Counts Three and Four of the Second Superseding Indictment charge WILTSHIRE with murder in aid of racketeering activity and a related firearms offense. Count Five charges CARLISLE, DAVIS, FLOWERS, CESAR MUNGUIA, ISAIAH WASHINGTON, WILTSHIRE, GUERRERO, KIDD, and MORRIS with Hobbs Act robbery conspiracy. Count Six charges CARLISLE, DAVIS, FLOWERS, CESAR MUNGUIA, WILTSHIRE, GUERRERO, KIDD, and MORRIS with a firearms offense related to the Hobbs Act robbery conspiracy. As in the initial Indictment, CARLISLE, WASHINGTON, and WILTSHIRE are charged with bank robbery in connection with the October 27, 2014, robbery of a Citibank branch in Yonkers; CARLISLE is charged with attempted bank robbery in connection with the November 3, 2014, attempted robbery of a Chase Bank branch in Yonkers; and FLOWERS and TYRONE SMITH, are charged with witness tampering in connection with their threats against an individual who provided information to law enforcement relating to the November 3 attempted robbery of the Chase Bank branch.
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, the City of Yonkers Police Department, the Westchester County Police, the Westchester County District Attorney’s Office, and the City of Peekskill Police Department. He also thanked the FBI’s Miami Division and the Greenacres Department of Public Safety for their assistance.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Scott Hartman, George Turner, and Jessica Feinstein are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-168 ###
United States v. Diondre Carlisle, et al., S2 14 Cr. 768 (VB)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy, 18 U.S.C. § 1962(d)
DIONDRE CARLISLE
MYKAI DAVIS
RAKEEM FLOWERS
TYRONE SMITH
KEVIN WILTSHIRE
SAUDY GUERRERO
DARNELL KIDD
JAMES MORRIS
PAUL NEGRIN
20 years in prison
2
Using or carrying a firearm during and in relation to a crime of violence and drug trafficking crime,
18 U.S.C. § 924(c)
DIONDRE CARLISLE
MYKAI DAVIS
RAKEEM FLOWERS
KEVIN WILTSHIRE
SAUDY GUERRERO
DARNELL KIDD
JAMES MORRIS
PAUL NEGRIN
Life in prison
Mandatory minim of seven years in prison (brandishing), or mandatory minimum 10 years in prison (shooting) consecutive to any other sentence on the first offense; or mandatory 25 years consecutive on the second offense.
3
Murder in aid of racketeering activity, 18 USC 1959(a)(1)
KEVIN WILTSHIRE
Mandatory life in prison or death
4
Carrying and using firearms during and in relation to and possessing firearms in furtherance of a crime of violence resulting in the death of another, 18 U.S.C. § 924(j)
KEVIN WILTSHIRE
Life in prison or death
Mandatory minimum of 25 years
5
Conspiracy to commit Hobbs Act robbery
18 U.S.C. § 1951
DIONDRE CARLISLE
RAKEEM FLOWERS
MYKAI DAVIS
CESAR MUNGUIA
KEVIN WILTSHIRE
DARNELL KIDD
SAUDY GUERRERO
JAMES MORRIS
20 years in prison
6
Brandishing a firearm during and in relation to a crime of violence
18 U.S.C. § 924(c)
DIONDRE CARLISLE
RAKEEM FLOWERS
MYKAI DAVIS
CESAR MUNGUIA
KEVIN WILTSHIRE
DARNELL KIDD
SAUDY GUERRERO
JAMES MORRIS
Life in prison
Mandatory minimum of seven years in prison, consecutive to any other sentence
7
Bank robbery
18 U.S.C. § 2113(a)
DIONDRE CARLISLE
ISAIAH WASHINGTON
KEVIN WILTSHIRE
20 years in prison
8
Attempted bank robbery
18 U.S.C. § 2113(a)
DIONDRE CARLISLE
20 years in prison
9
Witness tampering
18 U.S.C. § 1513(b)
RAKEEM FLOWERS
TYRONE SMITH
20 years in prison
Defendant
Age
Residence
DIONDRE CARLISLE
18
Yonkers, NY
MYKAI DAVIS
19
Yonkers, NY
RAKEEM FLOWERS
19
Yonkers, NY
CESAR MUNGUIA
20
Yonkers, NY
TYRONE SMITH
24
Yonkers, NY
ISAIAH WASHINGTON
19
Yonkers, NY
KEVIN WILTSHIRE
19
Yonkers, NY
SAUDY GUERRERO
20
Yonkers, NY
DARNELL KIDD
23
Yonkers, NY
JAMES MORRIS
24
Yonkers, NY
PAUL NEGRIN
22
Hollywood, FL
[1] As the introductory phrase signifies, the entirety of the text of the Second Superseding Indictment, and the description of the Second Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
McAlester Man Sentenced to 188 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that EDDIE A. BROWN, age 42, of McAlester, Oklahoma, was sentenced to 188 months imprisonment and 5 years supervised release for Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charge is a result of an investigation by the District 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The defendant was indicted in September, 2014 and pled guilty in November, 2014.
The Indictment alleged that on or about March 20, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally distribute 50 grams or more of methamphetamine (actual), a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Mason City Man Sentenced to Federal Prison for Involvement in Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced July 1, 2015, to more than 7 years in federal prison.
William Allan Odell II, 43, from Mason City, Iowa, received the prison term after an April 13, 2015, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Odell admitted to his involvement from June 2014 through December 2014 in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine. On November 26, 2014, Odell was arrested on an outstanding warrant. Odell was searched, and several used syringes as well as a bag of unused ones were located in his coat pockets. Odell was also found in possession of 9.38 grams of methamphetamine, which was located on the passenger side of the car, along with a digital scale and two empty baggies. Odell admitted to selling ½ ounce amounts during the time period of the conspiracy.
Odell was sentenced in Cedar Rapids, Iowa, by United States District Court Chief Judge Linda R. Reade. Odell was sentenced to 90 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Odell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office; Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-3010.
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Maryland Man Pleads Guilty to Assault ChargesRead the Press Release
WASHINGTON – William Nelson, 52, of Morningside, Md., pled guilty today to charges of felony assault and misdemeanor assault for attacking two people after an argument on a Metro train, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Ron Pavlik, Chief of the Metro Transit Police.
Nelson entered the guilty plea in the Superior Court of the District of Columbia. The Honorable Yvonne M. Williams scheduled sentencing for Sept. 8, 2015. Nelson faces a statutory maximum of three years in prison for felony assault and up to 180 days of incarceration for misdemeanor assault, as well as potential financial penalties.
“This brutal beating was a shocking attack on two innocent people who were simply using Metro to travel throughout the city,” said Acting U.S. Attorney Cohen. “This level of outrageous violence is entirely unacceptable and will not be tolerated.”
“On behalf of all Metro riders, I want to extend our thanks to the U.S. Attorney's Office for their support in this case that led to today's plea,” said Chief Pavlik. “I also want to commend the responding Transit officers and detectives who helped to ensure that justice was served today. Any assault is unsettling, but when it involves juvenile victims and when it occurs within the confined space of a railcar, that makes the crime all the more disturbing.”
According to a factual proffer presented at today’s plea hearing, on June 7, 2015, at about 1 a.m., Nelson was seated in front of two juveniles, 16 and 17, on a Metro train headed toward the Anacostia station of the Green Line. Nelson appeared to be asleep. The juveniles placed their feet on a window partition between their seat and Nelson’s seat, and he woke up. Nelson then stated, “Can you stop kicking the glass before I smack one of y’all?” A verbal argument ensued between Nelson and one of the juveniles, and both juveniles moved away from Nelson to another part of the train. Nelson, however, followed and continued arguing. Then he turned, walked toward the second juvenile, and punched him in the face.
As the juveniles moved through the train to get into a different car, a 46-year-old man approached Nelson and told him that he shouldn’t be acting that way. Nelson then confronted the man and punched him in the face multiple times, causing him to fall into a seat on the train.
As the man was still in the seat, Nelson stood over him and continued to punch him repeatedly in the face, even though the man’s hands were at his sides. After Nelson walked away, the man got up and exchanged words with him. Nelson then walked back over to the man, raised his hands, in a fighting stance, and punched him again. The man was knocked to the floor, and began bleeding from his face.
Both the man and the juvenile identified Nelson as the individual that who assaulted them. As a result of the altercation, the man sustained a fractured jaw and cheekbone and needed several stitches for lacerations to his lips. Additionally, he was informed by doctors that he needed to undergo surgery and have a plate inserted. The felony charge involves his attack.
In announcing the plea, Acting U.S. Attorney Cohen and Chief Pavlik commended the work of those who investigated the case from the Metro Transit Police. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Lindsey Merikas, who investigated and prosecuted the case.
Marijuana Dealer Convicted in Manhattan Federal Court of Two 1996 MurdersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSE ISMAEL VENTURA was found guilty yesterday of murder in connection with a marijuana distribution conspiracy, conspiracy to commit murder-for-hire, and murder-for-hire. The verdict came following a 13-day jury trial in Manhattan federal court before U.S. District Judge John G. Koeltl.
According to the Indictment and the evidence at trial:
From the 1980s through the mid-1990s, JOSE ISMAEL VENTURA owned and operated a marijuana distribution business in the vicinity of 207th Street and Sherman Avenue in northern Manhattan. In the fall of 1995, VENTURA placed his nephew, Eugene Garrido, in charge of the day-to-day operations of the marijuana business while VENTURA’s son, Kevin Ventura, who had previously managed the business, was on home detention for a pending murder charge. In the spring of 1996, Kevin Ventura’s murder charge was dismissed by state authorities and VENTURA told his nephew Eugene Garrido that his services were no longer needed. Garrido refused to give up his management role, and instead began efforts to take over the entire marijuana business from VENTURA. Because of this dispute over VENTURA’s marijuana business, in the summer of 1996, VENTURA ordered the murder of Garrido. On VENTURA’s order, his son Kevin Ventura hired two brothers to kill Garrido in exchange for $10,000, derived from the VENTURA marijuana business. On August 19, 1996, one of the two brothers shot and killed Garrido in the lobby of his apartment building in northern Manhattan. A bystander, Carlos Penzo, who attempted to stop the fleeing shooter, was also shot and died a week later of his injuries.
Kevin Ventura was convicted of these murders, as well as one additional murder, following a jury trial in Manhattan federal court in December 2013.
The two brothers who were hired to commit the Garrido murder, Jorge Lafontaine and Jose Lafontaine, have both been charged federally and have entered pleas of guilty to their roles in the Garrido and Penzo murders. They have not yet been sentenced.
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JOSE ISMAEL VENTURA, 62, of Manhattan, faces a mandatory sentence of life in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. A sentencing hearing has been scheduled for October 2, 2015, at 3:00 p.m. before Judge Koeltl.
Mr. Bharara praised the investigative work of the Homeland Security Investigations Division of Immigration and Customs Enforcement, and the New York City Police Department.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Margaret Garnett and Micah W.J. Smith are in charge of the prosecution.
Manhattan U.S. Attorney Announces Arrest of Postal Carrier for Theft of over $1 Million in Tax Refund ChecksRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, Eileen Neff, Special Agent-in-Charge of the Northeast Area Field Office of the U.S. Postal Service, Office of Inspector General (“USPS-OIG”), Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and Shantelle P. Kitchen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service’s Criminal Investigation Division (“IRS”), announced today the arrest of OSCAR LOPEZ in connection with a conspiracy to obtain over $1 million in fraudulently-issued tax refund checks from his U.S. Postal Service (“USPS”) delivery route. The defendant, a USPS mail carrier, was arrested this morning and is expected to be presented later today in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Oscar Lopez used his position as a U.S. Postal Service mail carrier to steal over $1 million in taxpayer funds. The exemplary investigative work of the Postal Service Inspector General’s Office, the Postal Inspection Service, and the IRS put an end to Lopez’s alleged involvement in this scheme.”
USPS-OIG Special Agent in Charge said: “The U.S. Postal Service Office of Inspector General aggressively investigates Postal Service employees who would abuse their position of trust. We value our law enforcement partners who work closely with us in matters like these.”
USPIS Inspector in Charge Philip R. Bartlett said: “As a taxpayer and a United States Postal Service employee, I find the allegations against the defendant disturbing. I have little tolerance for those who would use their position of public trust to facilitate criminal activity, as is alleged in this investigation. Postal Inspectors and their law enforcement partners will put a stop to crime wherever it exists; keeping the mail safe and secure for its employees and customers.”
IRS-CI Special Agent-in-Charge Shantelle P. Kitchen said: “A fraudulent tax refund scheme is, essentially, the use of false pretenses to steal money from the U.S Treasury. Yet, despite this simple description, fraudulent tax refund fraud schemes can involve a web of co-conspirators who obtain taxpayer information, file the tax returns and secure and negotiate the refund checks. IRS-Criminal Investigation is responsible for investigating the abusers of our nation’s tax system, with the goals of safeguarding public funds and maintaining public confidence in the system.”
According to the allegations contained in the Complaint filed today in Manhattan federal court[1]:
From at least June 2010 to May 2012, LOPEZ typically delivered mail on an assigned route in ZIP code 10460 in the Bronx. LOPEZ obtained fraudulently-issued tax refund checks that had been mailed by the IRS to addresses along his delivery route. He then provided those checks to his co-conspirators, who returned a portion of the value of the checks to him. In total, over $1 million in fraudulently-issued tax refund checks that were mailed to LOPEZ’s delivery route ended up being negotiated against, or deposited into, a bank account associated with one of LOPEZ’s co-conspirators.
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LOPEZ, 36, of Brooklyn, New York, is charged with one count of conspiring to steal government funds, which carries a maximum term of five years in prison, and one count of theft of government funds, which carries a maximum term of ten years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding work of the USPS-OIG, the USPIS, and the IRS in the investigation.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Drew Johnson-Skinner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Local Woman Pleads Guilty to Wire Fraud for Embezzling Church FundsRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Juliet Ellis (45, Tampa) today pleaded guilty to one count of wire fraud in connection with embezzling funds from a local church. She faces a maximum penalty of 20 years in federal prison. As part of the agreement, Ellis has agreed to pay restitution to the church in the total amount of $82,838.00. Her sentencing date has not yet been set.
According to the plea agreement, Ellis began working as a financial secretary at Palma Ceia United Methodist Church in February 2007. She was later promoted to business manager. In that capacity, Ellis was responsible for preparing the payroll for the church’s employees and administering the employee’s health and short-term disability insurance benefits programs. In performing these duties, Ellis manipulated the church’s payroll by falsely increasing the amount directly deposited to her account for her paycheck, and by failing to deduct her own health and disability insurance co-payments. She also failed to fully pay her child’s tuition at the church’s day school.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
L.A. Man Who Hacked into Email Accounts and Obtained Nude Photos for ‘Revenge Porn’ Website Pleads Guilty in Hacking SchemeRead the Press Release
LOS ANGELES – A San Fernando Valley man who hacked into e-mail accounts to steal nude photos that were later posted on a notorious “revenge porn” website has pleaded guilty to federal computer crime and identity theft charges.
Charles Evens, 26, of Studio City, pleaded guilty late Wednesday afternoon to one count of unauthorized access to a protected computer to obtain information for purposes of private financial gain and one count of aggravated identity theft.
Appearing before United States District Judge Dolly M. Gee, Evens pleaded guilty to the two felony charges and admitted that he obtained nude pictures that were posted on the revenge porn website, http://isanyoneup.com. The operator of that website – Hunter Moore, 29, of Woodland, California – pleaded guilty in February to the same two offenses that Evens admitted to yesterday.
On his website, Moore posted nude and sexually explicit photos that had been submitted without the permission of victims. To obtain more photos for the website, Evens gained unauthorized access – in other words, hacked into – Google e-mail accounts. Moore sent payments to Evens in exchange for nude photos unlawfully obtained from the victims’ accounts. Moore then posted the illegally obtained photos on his website, without the victims’ consent, as both men have now admitted in court.
In late 2011, Moore sent an email to Evens that stated Moore would like as many nude pictures from hacked emails accounts as possible. In response, Evens accessed a victim’s e-mail account without authorization and obtained pictures. Evens provided the pictures to Moore, and Moore paid $145.70. One of the photos – a topless picture of a female victim – was posted on isanyoneup.com on December 29, 2011.
When he pleaded guilty yesterday, Evens admitted that he hacked into email accounts belonging to hundreds of victims.
As a result of the guilty pleas entered yesterday, Evens faces a statutory maximum sentence of seven years in federal prison, which includes a mandatory two-year term for the aggravated identity theft charge.
Evens is scheduled to be sentenced by Judge Gee on November 16.
Judge Gee is scheduled to sentence Moore on August 12, at which time he also faces a maximum possible penalty of seven years in federal prison, and a mandatory minimum sentence of two years.
The investigation in this case was conducted by the Federal Bureau of Investigation.
Justice Department Settles Lawsuit Against Pima Community College for Violating the Employment Rights of Arizona Army National GuardsmanRead the Press Release
The Justice Department announced today it has reached a settlement agreement with Pima Community College (PCC) that, if approved by the U.S. District Court of the District of Arizona, will resolve allegations that PCC violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by discriminating against Army National Guardsman Timothy Stoner. USERRA prohibits employment discrimination based on a service member’s past, current or future military status, service or obligation. Stoner, a PCC police officer, is a veteran of active duty military deployments in Afghanistan and Iraq with 22 years of total military service. He is currently a Sergeant First Class in the Army National Guard.
The department’s complaint alleges that PCC violated USERRA by failing to promote Stoner to the position of police corporal in 2010 and in 2013. According to the department’s complaint, PCC created the supervisory position of police corporal in 2010. Before that position was created, Stoner was effectively performing comparable duties in his position as a lead police officer. The lead police officer assignment was abolished by PCC when it created the supervisory police corporal job. In 2010 and 2013, Stoner applied for promotion to police corporal, but both times he was not selected. As alleged in the lawsuit, Stoner’s military service was a motivating factor in PCC’s decision to deny him promotion on both occasions. As the complaint alleges, the former police chief, who was one of the selecting officials, demonstrated military animus toward Stoner by making anti-military statements to Stoner before and during the corporal selection process. Under the terms of the settlement, PCC must provide Stoner the back pay that he lost due to its failure to promote him and PCC must place him in a regular police corporal position. In addition, PCC must amend its written personnel policies to advise its employees of their rights and obligations under USERRA.
“The men and women who serve in the National Guard makes a tremendous sacrifice to protect our nation,” said Acting Associate Attorney General Stuart F. Delery. “We are dedicated to enforcing the laws ensuring that guard members do not have to sacrifice even more in their civilian careers.”
“This lawsuit and settlement reinforces the commitment of the Department of Justice to requiring employers to comply with their legal obligations under USERRA so that members of our military who sacrifice to serve this country are considered fairly for promotions and other employment opportunities,” said Vanita Gupta, Head of the Civil Rights Division. “The Department of Justice will continue to vigorously enforce USERRA so that the rights of our uniformed service members are protected from unlawful discrimination in the workplace based on their military service obligations.”
Stoner initially filed a complaint with the U.S. Labor Department’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department. The department’s Civil Rights Division, through its Employment Litigation Section, then filed suit on Stoner’s behalf. The Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at http://www.usdoj.gov/crt/emp and http://www.servicemembers.gov, as well as on the Labor Department’s website at http://www.dol.gov/vets/programs/userra/main.htm.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on July 2, 2015, and entering pleas of Not Guilty were:
- KYLE BIGBACK, a 32-year-old resident of Busby, appeared on charges of sexual abuse of a minor. If convicted of the charge contained in the indictment, BIGBACK faces 15 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. PACER Case Reference. 15-54
Appearing before U.S. Magistrate Lynch in Missoula on June 29, 2015, and entering pleas of Not Guilty were:
- CATHLEEN ROSELYN CANTLON, a 56-year-old resident of Troy, appeared on charges of interstate mailing of a firearm and ammunition and possession of a firearm and ammunition by a person who has been committed to a mental institution. If convicted of the most serious charge contained in the indictment, CANTLON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-12
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hunt County Man Sentenced to 60 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 32-year-old Hunt County man, Stephen Walker, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 60 years in federal prison, following his guilty plea in February 2015 to two counts of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Walker recently resided in Quinlan and Rowlett, Texas.
According to documents filed in the case, in September 2006, Walker enticed Jane Doe #2, a seven-year-old female child, to engage in sexually explicit conduct that he photographed.
Then, in November 2010, Walker enticed Jane Doe #1, a three-year-old female child, to engage in sexually explicit conduct that he video-recorded
The investigation began in November 2014 when a memory card, containing images of child pornography, was turned in to the Marion County Sheriff’s Office. That memory card had been found at a deer lease in a hunting club in Marion County; the deer lease had been used by Walker.
A search warrant of the memory card revealed it contained multiple sexually explicit videos of prepubescent child pornography taken at a Walker’s previous residence in Rowlett.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI, Rowlett Police Department and Marion County Sheriff’s Office investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DANIEL FIGUEROA-MUNGUIA, age 30, a citizen of Honduras, pled guilty today to a one-count Bill of Information charging him with illegal re-entry into the United States.
According to the court documents, FIGUEROA-MUNGUIA was found on March 30, 2015, in the United States after having been deported on April 29, 2011.
U.S. District Judge Nannette Jolivette Brown set sentencing for August 13, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Daniel Figueroa-Munguia Factual Basis.pdf (177.34 KB)
Henryetta Man Sentenced to 188 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TRAVIS L. SMITH age 32, of Henryetta, Oklahoma, was sentenced to 188 months imprisonment and 4 years supervised release for Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge arose from an investigation by the Oklahoma Bureau of Narcotics.
The Indictment alleged that on or about October 22, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility in which he will serve his nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Government Settles False Claims Act Allegations Against American Access Care Holdings, LLCRead the Press Release
American Access Care Holdings, LLC, which operated a vascular access center in Miami, has agreed to pay $1.2 million to resolve allegations that it violated the False Claims Act by billing Medicare for medically unnecessary percutaneous transluminal angioplasties (PTAs) and thrombectomies and by billing for more PTAs per patient encounter than permitted. Former American Access Care (AAC) facilities, including the one in Miami, are now operated by Fresenius Vascular Care, Inc. The conduct addressed by the settlement agreement took place prior to the merger between the two entities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
“Health care providers that bill for medically unnecessary procedures put their own financial self-interest over their duty to their patients’ well-being,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida. “We will hold providers accountable for this type of fraud and abuse that plagues the Medicare program and increases the cost of health care for all.”
“Jeopardizing patient care in order to steal taxpayer dollars is deeply troubling,” said Shimon R. Richmond, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Actions like these only strengthen our resolve to protect the American public and hold accountable those who would compromise our health care system.”
The United States alleged that a substantial percentage of the PTAs and thrombectomies billed by the AAC facility in Miami were unnecessary, based on a medical review of patient records. Patients at the facility were routinely brought back for follow-up visits that were not justified by the patients’ condition and that simply provided more opportunities to bill for procedures the patients did not need. The United States also alleged that AAC billed for multiple PTAs performed during one patient encounter, even though it knew that such procedures were not reimbursable.
The settlement announced today resolves allegations originally brought by Dennis Souza, a registered nurse who worked at American Access Care of Miami, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigating them, as the United States did here. Souza’s share of the settlement has not yet been determined.
The investigation of this matter reflects a coordinated effort between the U.S. Attorney’s Office for the Southern District of Florida and HHS-OIG. The case was handled by Assistant U.S. Attorney Susan Torres.
The case is captioned United States ex rel. Souza v. American Access Care of Miami, LLC, No. 11-22686-Civ-Lenard (S.D. Fla.). The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Franklin County Resident Sentenced for Heroin OffenseRead the Press Release
On July 1, 2015, George A. Mayo, 34, of West Frankfort, Illinois, was sentenced for his involvement in a heroin conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Mayo, who had previously pled guilty to an indictment charging conspiracy to distribute heroin, was sentenced to 90 months in federal prison, to be followed by 3 years’ supervised release. Johnson was fined $300.00. Evidence at the plea and sentencing hearings established that Mayo and co-defendant Frank Johnson, a/k/a "Moe," were involved together in the distribution of heroin in the Elkville and West Frankfort areas between 2012 and January 2014. At sentencing, the district court determined that Mayo was responsible for the distribution of approximately 309 grams of heroin. Johnson was previously sentenced to 108 months in prison for his role in the heroin conspiracy.
The investigation was conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Jackson County Sheriff’s Office, West Frankfort Police Department, and Jackson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Four Miami Area Residents Sentenced for Mann Act and Money Laundering OffensesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that on July 1, 2015, United States District Judge Cecilia M. Altonaga sentenced Istvan Kaszab, 38, and Andrea Avram, 25, of Aventura, Florida, to 27 months’ and 11 months’ imprisonment, respectively, for Mann Act and money laundering offenses, in violation of Title 18, United States Code, Sections 2421 and 1956. Judge Altonaga sentenced defendant Szabina Balazs, 21, of Hallandale, Florida to time served (approximately five months’ imprisonment) for violating the Mann Act. As part of the same case, on July 2, 2015, Judge Altonaga sentenced Christian Fiorenza, 51, of Ft. Lauderdale, Florida, to 37 months’ imprisonment for Mann Act and money laundering violations. Judge Altonaga said that the sentence imposed was necessary to promote respect for the law and deter the defendant and others from engaging in this type of criminal activity. All defendants pled guilty to the charges at issue.
Between May 2012 and September 2014, the defendants participated in the operation of an escort agency, that is, the Fort Lauderdale Escort Services (“FLES”). FLES recruited adult women from Eastern Europe, predominantly Hungary, to engage in prostitution in the United States. The women were recruited through various advertisements and other means. FLES would assist the women in petitioning for travel to the United States through the Electronic System for Travel Authorization (“ESTA”) program. ESTA is an automated system that determines the eligibility of visitors to travel to the United States under the Visa Waiver Program (“VWP”).
Once the women were admitted into in the United States, they would immediately begin working as prostitutes for FLES, both locally in South Florida, as well as nationally.FLES would advertise each prostitute’s “services” on FLES’ website.
FLES would arrange the prostitutes’ travel and housing needs in the United States.Each prostitute stayed in the United States, on average, between three months to a year.However, many overstayed their visas.
Each of the defendants played a different role in the conspiracy.Fiorenza was listed as the President of FLES, according to publicly available information on the Florida Division of Corporation’s website sunbiz.org.He also maintained FLES’ website.Kaszab recruited most of the prostitutes from Hungary.
Avram and Balazs began their affiliation with FLES as prostitutes.Avram then began assisting Kaszab in recruiting women from Hungary, arranging client meetings and travel, and facilitating money transfers from her bank account to Hungary, knowing the money came from prostitution earnings.Balazs began assisting Fiorenza with FLES’ operations.Specifically, she would assist in the maintenance of the website, book client meetings and travel, and facilitate money transfers to and from her bank accounts, knowing that the money came from prostitution earnings.
The defendants received a portion, or “cut,” of the monies earned by the prostitutes.Fiorenza received the largest cut, followed by KaszabAvram and Balazs would receive their cut from their male codefendants’ share.
Kaszab and Avram wired funds from the United States to Hungary on a regular basis and purchased several luxurious items from proceeds earned from prostitution, such as Mercedes Benz vehicles and a Breitling timepiece.
Mr. Ferrer commends the investigative efforts of ICE-HSI for their work on this case. The case was prosecuted by Assistant U.S. Attorneys Vanessa S. Johannes and Elina A. Rubin-Smith.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former MPD Detective Sentenced to Prison on Money Laundering Charge Involving Purchases Made with Proceeds of Drug ConspiracyRead the Press Release
WASHINGTON – Stephanie Ellison, 51, a former Metropolitan Police Department (MPD) detective, was sentenced today to 15 months in prison on a money laundering charge stemming from the purchase and financing of two cars and a motorcycle with money that came from a drug conspiracy. In a related matter, Raymond Proctor, 47, was sentenced April 29, 2015, to a prison term of 63 months on drug conspiracy and money laundering charges.
The sentences were announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Charles E. Smith, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Troy D. Berry, Sheriff of Charles County, Md.
Ellison and Proctor pled guilty on March 31, 2015, in the U.S. District Court for the District of Columbia. Ellison pled guilty to one count of conspiracy to launder monetary instruments. Proctor, of Washington, D.C., pled guilty to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and one count of conspiracy to launder monetary instruments. Both were sentenced by the Honorable James E. Boasberg.
In addition to the prison term, Proctor was ordered to pay a money judgment of $47,835 as forfeiture for the money laundering conspiracy and $41,800 for the narcotics conspiracy. As part of her plea agreement, Ellison agreed to the forfeiture of her interest in various items of jewelry; $5,000 in cash found on Dec. 11, 2012, inside a safe at her residence; a 2006 Maserati automobile; a 2007 Harley Davidson Night Rod motorcycle; and a 2009 750LI BMW automobile, and entry of the forfeiture money judgment in the amount of $47,835.
According to the proffers of evidence filed with the Court, in 2010 the ATF, the MPD and the Charles County Sheriff’s Department began this joint investigation. During that investigation, Proctor sold a total of approximately 418 grams of heroin during several controlled purchases to multiple undercover agents in exchange for cash and export-only cigarettes.
During the course of this narcotics conspiracy, Proctor and Ellison conspired to launder monetary instruments. As part of this conspiracy, Proctor and Ellison purchased a 2006 Maserati, a 2007 Harley Davidson Night Rod, and a 2009 750LI BMW. Proctor and Ellison purchased these vehicles by commingling Proctor’s illegal proceeds with funds obtained from Ellison. Proctor and Ellison titled these vehicles in Ellison’s name; however, the vehicles were purchased for Proctor’s use. These vehicles were purchased to conceal and disguise the nature, source, and ownership of the narcotics proceeds, and hide the true ownership of the vehicles. According to the government’s evidence, Ellison knew that the property involved in these financial transactions represented the proceeds of some unlawful activity.
Ellison joined the MPD in 1986. The guilty pleas include consent orders of forfeiture for a money judgment which represent the proceeds of the crimes.
In announcing the sentences, Acting U.S. Attorney Cohen, Special Agent in Charge Smith, Chief Lanier, and Sheriff Berry commended the actions of the ATF Special Agents, Metropolitan Police Department officers, and members of the Charles County Sheriff’s Office who worked on the investigation and prosecution of this case. They also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Catherine O’Neal, Kim Hall, Teesha Tobias, and Rosalind Pressley; Legal Assistant LaToya Wade, and former Legal Assistant Priscilla Hutson.
Finally, they expressed appreciation for the efforts of Assistant U.S. Attorneys Karla-Dee Clark and Zia Faruqui, who investigated and prosecuted these cases.
Former Chelsea Housing Authority Executive and Former Public Housing Inspector Sentenced for Rigging Inspection ProcessRead the Press Release
BOSTON – A former executive of the Chelsea Housing Authority (CHA) and a former public housing inspector were sentenced today for their roles in rigging the inspection process of federally funded housing units.
James Fitzpatrick, 63, of Acton, Mass., and Bernard Morosco, 50, of Utica, NY, were sentenced by U.S. District Court Judge Douglas P. Woodlock to three months and six months in prison, respectively, and one year of supervised release. The two were convicted in April 2015 of conspiring to defraud the U.S. Department of Housing and Urban Development (HUD) by impairing, impeding, and defeating the proper operation of HUD’s inspection process.
Pursuant to federal regulations, to determine whether a public housing authority is meeting the standard for its residents of conditions that are “decent, safe, sanitary, and in good repair,” HUD’s Real Estate Assessment Center (REAC) is required to “provide for an independent physical inspection of a public housing authority’s property or properties that includes, at a minimum, a statistically valid sample of the units in the CHA’s public housing portfolio to determine the extent of compliance with the standard.” REAC inspections are conducted by independent contractors who have received training from REAC on the inspection protocol and applicable regulations, and have been certified by HUD. Once certified, an inspector is given an inspector number, and with a password, can access the secure REAC server, which contains data on all public housing authorities and also later enable the inspector to generate a random sample of units to inspect on the scheduled date of the inspection.
Before the REAC inspections of the CHA in 2007, 2009, and 2011, Morosco gave Fitzpatrick, the Assistant Director of the CHA, an advance list that revealed which units at the CHA would be inspected. During those years, Morosco, who was a REAC-certified inspector, worked for the CHA as a consultant, advising the CHA about how to get better scores on its REAC inspections.
One or two months before each REAC inspection, using information provided by Fitzpatrick, Morosco accessed HUD’s secure database and downloaded information to which he was not entitled. That information enabled him to use his REAC software to generate, in advance, the random sample that would later be generated by the assigned REAC inspector. Morosco then gave the samples to Fitzpatrick who, in turn, provided it to the CHA’s Executive Director, Michael McLaughlin.
McLaughlin divided CHA employees into pairs, calling each pair a “SWAT team,” and sent them to inspect the units identified by Morosco. For the month before each inspection, the “SWAT teams” visited several apartments a day, inspecting and re-inspecting them as maintenance crews visited the units to make repairs, fumigate, and exterminate. When the REAC inspectors conducted the inspections, the units that were selected were the same as the ones provided in advance by Morosco.
McLaughlin, the former Executive Director of the CHA, was previously sentenced to serve an additional 12 months in prison for this offense after having already been sentenced to 36 months for other illegal conduct involving the CHA.
United States Attorney Carmen M. Ortiz and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys S. Theodore Merritt of Ortiz’s Public Corruption and Special Prosecutions Unit and Brian Pérez-Daple of Ortiz’s Economic Crimes Unit.
Federal jury finds Ethiopian national guilty of resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a federal jury found an Ethiopian national guilty Wednesday of refusing to leave the country twice after being ordered to depart.
Henok Dejene Retta, 30, of Ethiopia, was found guilty of two counts of failure to depart. United States District Judge Dee D. Drell presided over the trial. The defendant’s trial started Tuesday and ended Wednesday with the jury returning the guilty verdict after deliberating for 45 minutes. Evidence admitted at trial revealed that on two occasions U.S. Immigration Enforcement Agents attempted to remove Retta from the country via the Alexandria International Airport by putting him on a commercial flight. The defendant hampered agents’ ability to remove him by verbally and physically resisting agents on November 19, 2013. The defendant also hampered attempts to put him on a commercial flight at the airport on January 7, 2014, when he told those present that he had terrorist ties in Africa and would have the plane attacked should he be put on the plane. These incidents prevented him from boarding the flights because of airline and Transportation Security Administration safety policies.
Retta faces four years in prison, three years of supervised release and a $250,000 fine for each count. Sentencing has been set for October 13, 2015.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Robert F. Moore and Howard C. Parker are prosecuting the case.
Federal Jury Convicts Portsmouth Man on Drug Conspiracy and Gun ChargesRead the Press Release
NORFOLK, Va. – Jason Marvin Saunders, 33, of Portsmouth, Virginia, was convicted today on narcotics conspiracy and gun charges, including conspiracy to distribute heroin, cocaine, and cocaine base, and possession of a firearm in furtherance of a drug trafficking crime. Saunders’ twin brother and co-conspirator, Jeremy Lynn Saunders, previously pleaded guilty to drug conspiracy and firearms charges, and was sentenced to 25 years in prison on June 25, 2015.
Saunders was indicted on January 7, 2015. According to court records and evidence at trial, from January 2012 to about August 2014, the Saunders brothers jointly distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that they managed and used firearms to protect. On August 23, 2014, Saunders and his brother were involved in an exchange of gunfire with a rival drug organization at another location they operated at Appomattox Avenue in Portsmouth. In response to that incident, Saunders possessed a Taurus PT 145 Millennium Pro .45 Caliber pistol with 8 cartridges and a Ruger P85 9MM pistol. During the execution of a search warrant on February 6, 2014, at a different location, Saunders was found in possession of approximately 125 grams of cocaine powder, 50 grams of heroin, 16 grams of crack cocaine, scales, packaging materials, cutting agents, a Makarov Special Edition .380 Caliber semi-automatic pistol with 8 cartridges, a Rohm RG10 .22 Caliber revolver, and approximately $10,274 in U.S. currency.
Saunders faces a maximum penalty of life in prison when sentenced on October 14, 2015. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Office, made the announcement after the verdicts were taken by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Joseph DePadilla and Andrew Bosse prosecuted the case.
The case was investigated by the DEA’s Washington Office with the assistance of the Portsmouth Police Department as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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. 2:15cr2.
Federal Grand Jury Indicts Church Staff Member for Producing, Receiving and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury last week indicted a Shelby County man on multiple charges of producing, receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A four-count indictment filed in U.S. District Court charges JASON MICHAEL HANKINS, 34, with the production, receipt and possession of child pornography in 2013. Hankins found at least one of his victims by seeking out a single mother on a Christian dating website. Hankins worked at Shades Crest Baptist Church as part of the Family Life Center staff, assisting in the planning and coordinating of recreational activities.
The maximum penalty for producing child pornography is 30 years in prison and a $250,000 fine, per count. The maximum penalty for each count of receiving and possessing child pornography is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
East St. Louis Man Sentenced to 77 Months in Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Reginald L. Beck, 39, of East St. Louis, Illinois, was sentenced in federal district court in East St. Louis for the crime of Possession of a Firearm by a Convicted Felon.
Beck was sentenced to 77 months in federal prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $300, following his plea of guilty on March 12, 2015. The charges relate to an incident that occurred on January 1, 2015, in Centreville, Illinois, where police officers attempted to stop Beck for speeding. Beck sped off, abandoned his car, and fled on foot. The officers saw Beck throw something into some nearby weeds as he ran. After apprehending Beck, officers found two loaded firearms in the weeds – a Bryco .38 caliber semi-automatic pistol and a Taurus .357 magnum revolver; Beck admitted to the officers that he possessed the guns and threw them into the weeds.
Beck was previously convicted of possession of firearm by a felon in the Southern District of Illinois, on June 27, 2002. Beck is currently serving a sentence in the Illinois Department of Corrections for Aggravated Criminal Sexual Assault. The sentence imposed today in federal court runs consecutive (in addition) to Beck’s state conviction. The sentencing judge also ordered forfeiture of the firearm and the ammunition contained therein.
The case was investigated by members of the Centreville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and was prosecuted by Assistant United States Attorney Donald Boyce.
Chicago Investment Fund Manager Sentenced to 72 Months in Federal Prison for Defrauding Investors of over $9 MillionRead the Press Release
CHICAGO — A Chicago investment manager who fraudulently obtained millions of dollars from investors in a sophisticated Ponzi scheme to fund his extravagant lifestyle was sentenced today to 72 months in federal prison.
The defendant, NEAL GOYAL, 34, of Chicago, who was the sole managing member and founder of Blue Horizon Asset Management, LLC, and Caldera Advisors, LLC, was also ordered to pay more than $9.2 million in restitution by U.S. District Judge Matthew F. Kennelly. Goyal, who pleaded guilty in February to one count of wire fraud, was ordered to surrender to begin serving his sentence on September 17, 2015.
“Goyal was running a Ponzi scheme and he stole much of his investors’ money to prop up his extravagant lifestyle,” Assistant U.S. Attorney Kenneth Yeadon argued in a government sentencing memorandum. “There is no justification for the crimes that Goyal committed other than his own desire to place his own self-interests in front of the interests of his investors.”
From 2006 to 2014, Goyal perpetrated the scheme by setting up a fake trading shop on Michigan Avenue in Chicago in order to fool his investors into believing that his trading strategy generated market-beating returns. Goyal concealed his scheme by using existing investor money to repay investors, and by creating and distributing false account statements. Many of the duped investors were Goyal’s friends and family members.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. They commended the assistance of the U.S. Securities and Exchange Commission.
Central Coast Real Estate Developer Sentenced to 14 Years in Federal Prison for Scam that Cost Victims Millions in Lost InvestmentsRead the Press Release
LOS ANGELES – A former Central Coast real estate developer was sentenced this morning to 168 months in federal prison for his conviction on fraud and money laundering charges after bilking investors who put millions of dollars into Central Coast real estate projects.
Kelly Gearhart, 54, who previously lived in Atascadero and currently resides in Wadsworth, Ohio, was sentenced today by United States District Judge Otis D. Wright II. Gearhart was remanded into custody at the close of the sentencing hearing.
Gearhart, who was named Atascadero’s “Citizen of the Year” in 2006, pleaded guilty last year to two counts of wire fraud and one count of money laundering. When he pleaded guilty, Gearhart admitted that he knowingly and intentionally made misrepresentations and omissions relating to his Vista Del Hombre real estate development project to induce victims to part with their money. Gearhart admitted that he sold lots that were part of the Vista Del Hombre project in Paso Robles, even though those lots were being used to secure others’ loans. Gearhart admitted that he then used those same lots to obtain bank loans.
At sentencing, prosecutors introduced evidence that Gearhart also told investors that their investments – which he called “loans,” promising repayment with interest – would be used to develop the Vista Del Hombre project.
Judge Wright is scheduled to hold a restitution hearing on October 20. The plea agreement permits prosecutors to seek restitution for victims of the Vista Del Hombre real estate development project, as well as any other fraudulent conduct in which Gearhart may have been involved – a figure that may be as high as $20 million. However, it is unclear if there is any money available to repay victims.
The case against Gearhart is related to a case against James Hurst Miller Jr., the former president of the Atascadero-based Hurst Financial Corporation. Miller, who previously pleaded guilty to fraud and money laundering charges, is scheduled to be sentenced by Judge Wright on October 19.
The cases against Gearhart and Miller are the result of an investigation by the Federal Bureau of Investigation and IRS - Criminal Investigation. The San Luis County District Attorney’s Office provided assistance in the investigation.
Catherine McKinney Pleads Not Guilty to Large Law Firm EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Catherine McKinney, 61, of Hartland, pleaded not guilty today in United States District Court in Burlington to federal fraud charges. U.S. Magistrate Judge John M. Conroy released McKinney on conditions pending trial, which has not been scheduled. According to court records, on June 17, 2015, a federal grand jury in Rutland returned a three-count indictment charging McKinney with mail and wire fraud and interstate transportation of stolen money. The indictment alleges that, beginning no later than 2008 and continuing until early 2015, McKinney embezzled at least $690,000 from her employer, Myers Associates PLLC, a law firm in Lebanon which represents clients in both Vermont and New Hampshire. According to the indictment, McKinney wrote law firm checks to herself and to her creditors on which she forged the signature of her attorney employer. She deposited more than $90,000 in forged checks into her Vermont bank account. McKinney allegedly also caused electronic transfers of firm funds to pay her obligations, including large credit card bills. The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty. If convicted, McKinney faces up to 20 years of imprisonment and a fine of more than $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines. This case was investigated by the United States Secret Service.
Bronson Man Pleads Guilty to Firearm ChargesRead the Press Release
GAINESVILLE, FLORIDA – Jamie Vincent Ward, 38, of Bronson, Florida, pled guilty today to two charges of possession of a firearm by a convicted felon. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
According to documents filed in the case, Ward was convicted in Georgia for the felony offenses of Escape, Theft by Taking, First Degree Arson, and Possession of Methamphetamine. Ward is the leader or “Grand Dragon” of the Florida-Georgia chapter (“Klavern”) of the Traditionalist American Knights of the Ku Klux Klan (TAKKKK). In 2014 and 2015, Ward discussed his possession of firearms with another member of the TAKKKK. On March 2, 2015, Ward transferred a German Sports Gun .22 caliber rifle to that person, asking that it be converted to a fully automatic weapon.
Law enforcement agents served search and arrest warrants at Ward’s Bronson residence on April 2, 2015. Ward was arrested as he attempted to flee. A loaded Hi-Point nine-millimeter pistol and an assortment of ammunition were found within his residence.
Ward is scheduled for sentencing on September 23, 2015, at 12:30 p.m. in Gainesville. He faces a maximum of 10 years’ imprisonment on each count.
The case was investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement Homeland Security Investigations, and the Office of Statewide Prosecution, whose joint investigation led to the convictions in this case. This case is being prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Broken Arrow Woman Sentenced to 60 Months Probation, 8 Months Home Arrest, $45,000 Restitution for Bank EmbezzlementRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CAROL ANNE DYE, age 55, of Broken Arrow, Oklahoma, was sentenced to 5 years probation with 8 months of house arrest for Bank Theft, Embezzlement and Misapplication, in violation of Title 18, United States Code, Section 656. The Defendant was also ordered to pay $45,464.60 in restitution.
The charge arose from an investigation by the Broken Arrow Police Department and the United States Secret Service. The defendant was indicted in January, 2015 and pled guilty in February, 2015.
The Indictment alleged that from in or about 2011, until on or about August 22, 2014, in the Eastern District of Oklahoma, defendant, CAROL ANNE DYE, being an officer, director, agent, or employee of, or connected in a capacity with, The First National Bank of Broken Arrow, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said The First National Bank of Broken Arrow, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of The First National Bank of Broken Arrow, Oklahoma, in that the defendant withdrew cash from the vault and teller drawers of the said bank and misapplied, embezzled, abstracted and purloined the funds for her own use or benefit.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.