Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
2 July 2015
Baltimore Man Charged with Arson of CVS PharmacyRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Raymon Carter, age 24, of Baltimore, Maryland, with the arson of the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore, on April 27, 2015.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.
“To paraphrase Winston Churchill, civilized people cannot remain impartial between the firefighter and the arsonist,” said U.S. Attorney Rod J. Rosenstein. “There is no excuse for callously destroying property, endangering peoples’ lives and damaging their livelihood. We must never confuse peaceful protests with riots. Many honorable Baltimore residents are stepping up to hold vandals accountable and protect the city.”
“Those committing arson took advantage of our city when we were most vulnerable. Carter’s alleged actions caused over $1 million of damage to this community,” said Commissioner Anthony Batts of the Baltimore Police Department. “Thanks to the hard work of the ATF and our detectives our hope is that we will never have to do this again. We owe a tremendous debt to the community that helped us to identify him. Thank you to our residents.”
On April 27, 2015, the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned. On May 22, 2015, ATF released two still photographs of a suspect in the arson to the media and announced a $10,000 reward for information leading to the suspect’s identification, arrest and conviction. According to the affidavit filed in support of the criminal complaint, tips to the ATF Arson Hotline revealed that the suspect was Raymon Carter.
The criminal complaint was filed on June 25, 2015, and on June 29, 2015, the ATF released a “wanted” poster asking the community for information leading to the location and apprehension of Carter. Carter was arrested yesterday and the complaint was unsealed today.
According to the affidavit, surveillance video from inside the store shows the looters running around the store in a frenzy to steal merchandise. Unlike the looters, Carter is seen on surveillance video going to and from the southeast corner of the sales floor – which is the area of the origin of the fire - three separate times between 6:15 p.m. and 6:19 p.m. The third time Carter is seen going to that corner of the store, he moves out of camera view, behind the shelves. The time on the video is 6:19:34 p.m. At 6:19:57 p.m. a flash of light can be seen on the video, which is believed to be the ignition of the fire. After the flash of light, Carter reappears on the surveillance video from behind the shelves and at 6:20:06 p.m. is seen running away from the area toward the CVS exit. No other individual is seen on the surveillance video in the area of the fire from the time of the flash of light until Carter exits the store. At 6:22:05 Carter is seen back in the store. Flames in the southeast corner of the store become visible on the surveillance video at 6:22:19 p.m. Fourteen seconds later Carter is seen walking towards the exit while looking back at the fire, and the looters are seen running toward the exit. The Baltimore Fire Department was dispatched to the scene at 6:28 p.m. According to the affidavit, two still photographs of Carter were extracted from video taken outside the CVS and were used in the reward flyer.
According to the affidavit, the CVS sustained approximately $1.3 million in damages.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
Carter faces a mandatory minimum sentence of five years in prison, and a maximum of 20 years in prison for arson. An initial appearance was held today in U.S. District Court in Baltimore. Carter was detained pending a detention hearing before U.S. Magistrate Judge Stephanie A. Gallagher on Tuesday, July 7, 2015 at 2:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson, who is prosecuting the case.
Baltimore City Landfill Employee Admits to Accepting Bribes from Trash HaulersRead the Press Release
Baltimore, Maryland – Former Baltimore City Department of Public Works (DPW) employee Tamara Oliver Washington, age 55, of Baltimore, pleaded guilty today to conspiracy and to solicitation of bribes in connection with a 14 year scheme in which DPW employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Quarantine Road Landfill (Landfill) without paying the required disposal fees.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“Corrupt public employees rip off the taxpayers and undermine everyone’s faith in government,” said U.S. Attorney Rod J. Rosenstein.
The DPW’s Bureau of Solid Waste is responsible for managing Baltimore City’s waste management services, including overseeing citizen drop-off centers, such as the Northwest Transfer Station (NWTS) and the Landfill. Baltimore City’s waste management system generates revenue for the City by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities. The City contracts with private salvage companies to purchase and remove scrap metal from its trash collection facilities. DPW employees at the Landfill and NWTS are required to place the recyclable scrap metal in separate bins provided by the salvage companies. The salvage companies regularly pick up the scrap metal and, based on predetermined prices per ton, the salvage companies pay the City for the value of the scrap metal.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located further within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
According to Washington’s plea agreement, Washington was a DPW employee assigned to the scale house at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. To activate the system and record a particular transaction, DPW employees must enter the tag number of the truck and a corresponding billing code. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
Beginning in 2001, about three months after getting hired as a scale house operator at the Landfill, Washington started accepting bribe payments from small haulers in lieu of charging them the full disposal fee for using the Landfill. Beginning in 2002, about one year after being hired, Washington started accepting bribe payments from large haulers of trash in lieu of charging them the full disposal fee for using the Landfill. Washington and other scale house employees accepted $100 bribe payments from some haulers for each truckload of trash dumped at the Landfill. Washington participated in the bribery scheme for more than fourteen years, up until her arrest in May 2015.
Washington and others concealed the bribery scheme by not entering a truck’s registration number into the computerized scale system, which meant the transaction was not recorded. Consequently, the transaction would not appear on the scale house’s daily logs and the commercial hauler would not be billed for using the Landfill on that particular occasion. To maintain the pretense that the trucks had been weighed and the disposal fee paid, Washington and others would hand the truck drivers fake or blank receipts when they crossed the outbound scale. In return, the commercial haulers either paid the $100 bribe through the outbound window at the scale house or met with the Defendant or another scale house operator at an off-site location to pay a week’s worth of bribes or more. The commercial haulers always paid the $100 bribes in cash.
By paying the $100 bribes in lieu of the disposal fees, these haulers saved their businesses thousands of dollars each month, which, in turn, cost the City of Baltimore more than $6 million in revenue. From July 1, 2014 through May 1, 2015 alone, Washington accepted on her own behalf, and on behalf of other DPW employees, more than $40,000 in bribe payments from one individual in return for not charging the individual or his company the required waste disposal fees, which totaled approximately $120,000 during that period of time.
Washington has agreed to pay restitution of $6 million.
Washington faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for bribery. U.S. District Judge Marvin J. Garbis has scheduled sentencing for October 20, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General, and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Gregory R. Bockin, who are prosecuting the case.
Army Sergeant Pleads Guilty to Conspiracy in Afghanistan Bribery SchemeRead the Press Release
A Fort Campbell Army Sergeant pleaded guilty today to conspiracy to commit bribery in connection with contracting for supplies while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI) made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, pleaded guilty before U.S. District Judge Thomas B. Russell of the Western District of Kentucky to a one-count information charging him with conspiracy to commit bribery. Pena’s sentencing hearing is scheduled for Oct. 15, 2015.
From January 2008 through September 2009, Pena worked as a U.S. Army Sergeant First Class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. Pena and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies necessary to support humanitarian relief in Afghanistan. On behalf of the Army, between June 2008 and March 2009, Pena and Dennis entered into approximately 217 such contracts for approximately $30,760,255.
In connection with his guilty plea, Pena admitted that he received money and jewelry from the vendors – primarily through Dennis – in return for Pena and Dennis taking action favorable to the vendors in connection with the HA Yard contracts. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch in addition to $100,000 in bribe payments, which he received in approximately six installments.
Pena admitted that he sent some of the cash to his family in Kentucky, which he dispersed throughout numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the U.S., and to purchase a Harley Davidson motorcycle.
In May 2014, Dennis pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments. In January 2015, Dennis was sentenced to serve 41 months in prison and was ordered to forfeit $115,000.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, CID, DCIS and OSI. This case is being prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nute A. Bonner of the Western District of Kentucky.
Army Sergeant Pleads Guilty to Conspiracy in Afghanistan Bribery SchemeRead the Press Release
PADUCAH, KY – A Fort Campbell Army Sergeant pleaded guilty today to conspiracy to commit bribery in connection with contracting for supplies while serving in Afghanistan.
Acting U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI) made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, pleaded guilty before U.S. District Judge Thomas B. Russell of the Western District of Kentucky to a one-count information charging him with conspiracy to commit bribery. Sentencing has been scheduled for October 15, 2015.
From January 2008 through September 2009, Pena worked as a U.S. Army Sergeant First Class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. Pena and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies necessary to support humanitarian relief in Afghanistan. On behalf of the Army, between June 2008 and March 2009, Pena and Dennis entered into approximately 217 such contracts for approximately $30,760,255.
In connection with his guilty plea, Pena admitted that they received money and jewelry from the vendors in return for Pena and Dennis taking action favorable to the vendors in connection with the HA Yard contracts. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch in addition to $100,000 in bribe payments.
Pena admitted that he sent some of the cash to his family in Kentucky, which he dispersed throughout numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the U.S., and to purchase a Harley Davidson motorcycle.
In May 2014, Dennis pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments. In January 2015, Dennis was sentenced to serve 41 months in prison and was ordered to forfeit $115,000.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, CID, DCIS and OSI. This case is being prosecuted by Assistant U.S. Attorney Nute A. Bonner of the Western District of Kentucky and Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section.
Arizona man sentenced to life without parole following drug conspiracy trialRead the Press Release
Over 50 pounds of methamphetamine couriered to Evansville from Arizona
EVANSVILLE - United States Attorney Josh J. Minkler announced today that Matthew Elder, 44, of Litchfield Park, Arizona, was sentenced to life without parole in federal prison by U.S. District Court Chief Judge Richard L. Young following a three-day jury trial in Evansville. The case resulted from a 2013-2014 investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Evansville Vanderburgh County Joint Task Force, Posey County Sheriff's Department, Texas Drug Enforcement Administration, and Texas Department of Public Safety into the distribution of methamphetamine from Arizona into southwestern Indiana.
“Mr. Elder made a living peddling drugs to individuals in the Evansville area, “said Minkler. “He will spend the rest of his life in a federal prison and my hope is, others like him get the message that we will not tolerate this type of criminal behavior in Indiana.”
On April 1, 2015, a federal jury found Matthew Elder guilty of conspiracy to distribute methamphetamine along with co-defendant, William Elder. During court testimony, it was learned that Matthew Elder was the source of methamphetamine in Arizona, which brought over 50 pounds of meth to the Evansville-area in a six month period. Elder arranged for the methamphetamine to be couriered to Evansville by various individuals for redistribution near Evansville. Matthew Elder faced mandatory life without parole based on having two prior drug convictions in Arizona and one in Evansville.
Matthew Elder’s co-defendant, William Elder (his father), was also convicted in April and faces sentencing later this month.
According to Assistant U.S. Attorney Lauren Wheatley, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release on Elder if he is ever released from prison. During that time, Elder must submit to regular drug testing and treatment.
Allegany County Man Convicted for Production and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – A federal jury convicted Richard Alan Blank, Jr., age 44, of LaVale, Maryland, today for two counts of sexually abusing a minor to produce child pornography, and for possession of child pornography.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Allegany County State’s Attorney Michael O. Twigg; Colonel William M. Pallozzi, Superintendent of the Maryland State Police, Allegany County Sheriff Craig Robertson, Cumberland Police Chief Charles H. Hinnant, Frostburg Police Chief Royce C. Douty, Frostburg University Chief of Police Cindy R. Smith, as part of the Allegany County Combined Criminal Investigations Task Force (C3I).
According to evidence presented at Blank’s four-day trial, on May 30, 2014, Blank used a minor to engage in sexually explicit conduct in order to produce images documenting the sexual abuse of the minor. A search conducted by law enforcement on June 2, 2014 revealed that Blank possessed images documenting the sexual abuse of the minor female on his cellular phone.
As a result of his conviction, Blank will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Blank faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison, followed by up to lifetime of supervised release, for each of the two counts of production of child pornography, and a maximum of 10 years in prison for possession of child pornography. U.S. District Judge William D. Quarles has scheduled sentencing for October 1, 2015, at 1:00 p.m. Blank remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore and the Allegany County Combined Criminal Investigations Task Force (C3I), comprised of the Maryland State Police, Cumberland Police Department, Allegany County Sheriff’s Office, Frostburg Police Department, Frostburg University Police Department and Allegany County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Aaron S. J. Zelinsky, who are prosecuting the case.
15 Sentenced in Investigation Initially Targeting Street GangRead the Press Release
HOUSTON – With the sentencing of two more defendants today, 15 criminals have now been brought to justice for their respective roles in either a cocaine trafficking conspiracy or an alien smuggling/marijuana trafficking conspiracy, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Brian M. Moskowitz of Homeland Security Investigations (HSI) in Houston.
Aldo Teyes-Sanchez, a 32-year-old from El Salvador, and Antonio Rivas-Vargas, a 31-year-old Mexican national, pleaded guilty Aug. 30, 2013, and Sept. 5, 2014, respectively. They were charged in a conspiracy to traffic cocaine.
Today, U.S. District Judge Melinda Harmon ordered Teyes-Sanchez to serve a total of 70 months in federal prison, while Rivas-Vargas will serve a 41-month-term. Not U.S. citizens, both are expected to face deportation proceedings following their release from prison. During sentencing, Judge Harmon noted that each defendant was part of a group of individuals who sold multi-ounce quantities of cocaine over a period of several years and that they distributed drugs for the Southwest Cholos gang, Glenmont clique. The group was also involved in the sale and use of firearms as a part of their drug trade.
“Those who come to this country and choose the lifestyle of a criminal street gang member should understand that they will be investigated, prosecuted, and as in this case, convicted and sentenced to federal prison,” said Moskowitz. “ICE is committed to working with our partners to disrupt the myriad of illicit activities that criminal street gangs thrive on as a way to make our communities safer for all.”
With the exception of one defendant - Eulogio Alanis - who has not yet been sentenced, today’s proceedings bring a conclusion to an operation conducted by HSI which initially targeted the Southwest Cholo street gang. Although not all were involved in gang activity, the resulting investigation led to indictments against 16 defendants. Four were charged with a cocaine conspiracy, while the other 12 faced marijuana and alien smuggling charges.
Those involved in alien smuggling would smuggle undocumented aliens across the United States-Mexico border. The illegal aliens were required to pay a fee or transport narcotics into the country to satisfy their smuggling debt. To date, all 16 defendants have been convicted and 15 are now headed to or are in federal prison.
HSI investigated along with the Houston Police Department. Assistant United States Attorney Mark E. Donnelly prosecuted the cases.
1 July 2015
Williamsville Man Sentenced on Tax Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Carlo J. Marinello, Jr., 69, of Williamsville, NY, who was convicted after a jury trial of one count of obstructing and impeding the due administration of the Internal Revenue Code, four counts of failing to file personal income tax returns, and four counts of failing to file corporate tax returns with the Internal Revenue Service, was sentenced to 36 months in prison by Senior U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay $351,763.08 in unpaid taxes.Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Marinello was the manager and owner of Express Courier Group/Buffalo Inc. (“Express Courier”), a corporation formed to commercially transport letters and documentation between businesses in New York and businesses in Canada. The business earned hundreds of thousands of dollars in revenues but the defendant failed to file tax returns for the company or personal tax returns for earned income.
According to the Government’s evidence, Marinello hid the income and obstructed and impeded the due administration of the Internal Revenue Code by: (1) failing to maintain corporate books and records for Express Courier; (2) failing to provide his accountant with complete and accurate information related to the defendant’s personal income and the income of Express Courier; (3) destroying, shredding and discarding business records of Express Courier; (4) cashing business checks received by Express Courier for services rendered; (5) hiding income earned by Express Courier in personal and other non-business bank accounts; (6) transferring assets to a nominee; (7) paying employees of Express Courier with cash; and (8) using business receipts and money from business accounts to pay personal expenses, including the mortgage for the residence in which the defendant resided and expenses related to care for Marinello’s mother care at a senior living center.Although required to do so, Marinello failed to file personal income tax and corporate tax returns for tax years 2005, 2006, 2007 and 2008.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, New York Field Office.
Virginia Resident Sentenced to Prison in Connection with Lottery Scheme Based in JamaicaRead the Press Release
A Jamaican citizen residing in Virginia was sentenced to prison today for his role in an international lottery scam, the Justice Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) announced.
Carlos O’Brien Ricketts, 32, was sentenced by U.S. District Court Judge Michael F. Urbanski of the Western District of Virginia to serve 10 months in prison to be followed by three years of supervised release, and ordered him to pay $74,450 in restitution to his victims.
Ricketts was indicted on Nov. 6, 2014, by a federal grand jury in Harrisonburg, Virginia, in connection with a fraudulent lottery scheme based in Jamaica that induced elderly victims to send thousands of dollars to cover fees for lottery winnings that the victims had not in fact won. On March 24, Ricketts pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.
“The masterminds of lottery fraud from Jamaica use co-conspirators in the United States not only to help collect money from innocent victims, but also to make their scheme appear less suspicious,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute those who direct or facilitate these international lottery schemes.”
As part of his guilty plea, Ricketts acknowledged that, had the case gone to trial, the government would have proved beyond a reasonable doubt that from May 2010 through April 2011, he was a middleman in the United States for a fictitious sweepstakes operating from Jamaica. According to the indictment, a co-conspirator induced elderly victims in the United States to send thousands of dollars to Ricketts to cover fees for purported lottery winnings that, in fact, the victims had not won.
This case is part of the government’s crackdown on international fraudulent lottery schemes that target elderly individuals in the United States. The indictment alleged that the co-conspirator instructed the victims to send their payments to Ricketts in the form of cash and checks via mail and as wire transfers.
As part of his guilty plea, Ricketts acknowledged that, had the case gone to trial, the government would have proved beyond a reasonable doubt that he received payments at his home address in Stephens City, Virginia, and at another address in Winchester, Virginia, sometimes using his own name and at other times used the name “Kevin Brown” to receive the money. Ricketts further acknowledged that had the case gone to trial, the government would have proved that he kept part of the money for himself and then sent the remainder of the money in wire transfers to Jamaica, sometimes using the “Kevin Brown” name and addresses other than his own in order to evade detection.
“Fraud schemes like this one that prey on senior citizens will not be tolerated,” said Acting U.S. Attorney Anthony P. Giorno of the Western District of Virginia. “Our office will provide whatever resources and assistance may be required in order to identify and bring these criminals to justice.”
“Homeland Security Investigations is committed to disrupting and combatting these international lottery schemes,” said Special Agent in Charge Clark E. Settles of HSI Washington, D.C., which oversees the agency’s Harrisonburg office. “While fraudulent schemes of any kind are despicable, targeting vulnerable populations is especially depraved and will not be tolerated.”
Principal Deputy Assistant Attorney General Mizer and Acting U.S. Attorney Giorno commended HSI’s investigative efforts. The case was prosecuted by Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Grayson Hoffman of the Western District of Virginia.
Virgin Islands Man Sentenced on Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr., announced today that Kevin Liburd, 41, of St. Thomas, Virgin Islands, who was convicted of conspiracy to defraud the United States, was sentenced to time served (eight months) by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on January 27, 2011, the defendant, along with co-defendants Mica Donadelle and James Phillips, conspired to avoid the detection of $162,300 at the Buffalo Niagara International Airport. Phillips, an airport employee at the time, bypassed screening procedures and stored the money in an airport bathroom which was later picked up by Liburd.
Phillips has been convicted and is awaiting sentencing. Charges are still pending against Donadelle. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.The sentencing is the culmination of an investigation on the part of the Safe Streets Task Force of the Federal Bureau of Investigation.
Violent “Goon Squad” and Others Sentenced on Drug Trafficking and Robbery Conspiracy ConvictionsRead the Press Release
DALLAS — Ten defendants who were convicted on federal felony offenses stemming from their roles in a drug distribution and robbery conspiracy have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
On Thursday, June 25, 2015, Elva Sofia Ibarra, 37, of Dallas, was sentenced to 135 months in federal prison, and the following day, June 26, 2015, Quinton Walker was sentenced to 87 months. Others were sentenced as follows:
Cesar Ibarra, aka “Bling,” 40, of Mansfield, Texas — 235 months
Hilberto Ibarra, aka “Gilberto,” 30, of Mansfield, Texas — 235 months
Cesar Ibarra, Jr., aka “Chicho,” 22, of Dallas, Texas — 8 months
Lauro Reyes-Serrano, aka “Wicho” and “Gordo,” 30, of Dallas — 57 months
Nicholas Manriquez, 29, of Dallas, Texas — 87 months
Andres Garcia, aka “Mentiras,” 31, of Dallas, Texas — 12 months and 1 day
Victor Anderson, aka “Old School,” 52, of Dallas, Texas — 21 months
Mark Anthony Nolasco, 23 of Dallas, Texas and Mansfield, Texas — 57 months
Most were arrested in June 2014 following a law enforcement operation conducted by special agents with the Federal Bureau of Investigation and officers with the Dallas Police Department.
According to documents filed in the case, Cesar Ibarra and his brother, Hilberto Ibarra, and their sister, Elva Sofia Ibarra (the Ibarra siblings) conspired with each other and others to commit illegal narcotics-trafficking offenses and criminal offenses in furtherance of their drug-trafficking activities, including the commission or planned commission of burglaries, robberies and other acts of violence. The Ibarra siblings and certain other co-conspirators called themselves the “Goon Squad,” and while Cesar and Hilberto Ibarra led the Goon Squad, the Ibarra siblings involved other family members, including Cesar Ibarra, Jr., in their cocaine, methamphetamine and marijuana trafficking activities.
The Goon Squad targeted individuals known, or believed, to be drug dealers for burglary, robbery or other acts of violence, because those individuals were likely to possess large quantities of illegal narcotics, U.S. currency or firearms, and would not be likely to report any offenses by the Goon Squad. They performed surveillance and reconnaissance on their potential victims. They also attempted to perform similar surveillance on members of law enforcement they believed were investigating their illicit activities by taking photographs and recording vehicle-specific information.
Assistant U.S. Attorney P. J. Meitl prosecuted.
Veterans’ Cemetery Worker to Plead Guilty to Stealing GravestonesRead the Press Release
PROVIDENCE, R.I. – Kevin Maynard, 59, of Charlestown, R.I., an employee at the Rhode Island Veteran’s Memorial Cemetery in Exeter, R.I., has agreed to plead guilty in federal court to stealing granite gravestones and other items from the Veterans’ Memorial Cemetery for use at his home as garage and shed flooring, announced United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General (VA OIG), Northeast Field Office; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to court documents, it is alleged that over a lengthy period of time Maynard removed worn or broken grave markers from the cemetery and brought them to his Charlestown residence. On April 23, 2015, a VA-OIG agent and Rhode Island State Police detective accompanied Maynard to his home where investigators discovered at least 150 veterans’ grave markers being used as flooring for a shed and two make-shift garages. Investigators also located additional markers on the property and a box of American flags allegedly stolen from the Veterans' Cemetery.
According to Government regulations, all Government-furnished headstones/markers/ medallions remain the property of the United States Government in perpetuity and that the “destruction, mutilation, defacement, injury, or removal of any monument, gravestone, or other structure within the limits of any national cemetery is prohibited.”
According to court documents, Maynard will plead guilty as charged by way of an information with theft of government property. Maynard is scheduled to be arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan on July 13, 2015.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Rochester Men Arrested on Child Exploitation ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Matthew DiFlorio, 28, and Faycal Taouzinet, 26, both of Rochester, N.Y., were arrested and charged by criminal complaint with enticement of a minor using a means and facility of interstate commerce. The charge carries a minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine. Taouzinet is also charged with production of child pornography which carries a minimum penalty of 15 years in prison, a maximum of 30, and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, in June 2015, the mother of a 13 year-old minor advised the Rochester Police Department that her child had been communicating with two men. According to the mother, DiFlorio was working as a Lifetouch school photographer and the mother had, at one point, attempted to communicate with DiFlorio to tell him to stay away from her child. According to the minor, the minor had communicated with the defendant using the application “Kik” and ended up meeting him in February 2015.
After taking over the minor’s phone, law enforcement officers received a text message from DiFlorio on June 22, 2015. Assuming the minor’s identity, an officer engaged in texts with the defendant and arranged for a meeting to occur on June 23, 2015, at a local fast food restaurant. DiFlorio arrived at the meeting and was confronted by law enforcement officers.
As to defendant Taouzinet, the mother told law enforcement officers that Taouzinet worked as a clerk at a local store. Officers reviewed the minor’s phone and uncovered texts between the minor and the defendant to include sexually explicit chats. Some chats involved the minor sending sexually explicit pictures to Taouzinet.
An officer, assuming the minor’s identity once again, engaged in texts with Taouzinet and arranged for a meeting on June 22, 2015. The defendant did not show up at the arranged time but texted later and asked to meet. Taouzinet was observed by law enforcement officers later on that date and was arrested.
DiFlorio and Taouzinet made an initial appearance today before U.S. Magistrate Judge Marian W. Payson. They are being held pending a detention hearing on July 2, 2015 at 11:00 a.m. and 2:00 p.m. respectively.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations with additional assistance provided by the Greece Police Department and the Monroe County District Attorney’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Men Sentenced for Burglarizing San Point Post OfficeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen Loeffler announced today that two men were each sentenced by U.S. District Court Judge Timothy M. Burgess to serve 21 months in federal prison for burglarizing the post office in Sand Point, Alaska.
Sheldon Wilson Shuravloff, 21, and Keith Lee Wilson, Jr., 19, both of Sand Point, Alaska, previously pled guilty to burglarizing the Sand Point post office in the early morning hours of December 28, 2014. The burglary caused more than $15,000 in damage to the post office and shut down the facility for a week while the investigation and repairs were completed.
In shutting down the post office, Shuravloff and Wilson forced Sand Point residents to go without certain essentials for that time, including medicines, baby formula, and household items. A statement sent to the court by the Sand Point postmaster also noted that Shuravloff and Wilson’s actions caused delay in the delivery of fishing permits and fishing gear essential to the operation of the Sand Point fishing fleet – the main source of income in the small community.
Upon release from prison, both Shuravloff and Wilson will remain under court supervision for three years. During that time, both men will be required to complete 250 hours of community service and pay restitution to the United States Postal Service in the amount of $15,779.92.
In sentencing the men, Judge Burgess called the burglary an extremely serious crime that had a tremendous impact on the Sand Point community as a whole. Judge Burgess specifically noted the intangible harms suffered by the community as a result of the Shuravloff and Wilson’s actions. Finally, Judge Burgess cited the need to protect the public from future crimes of both defendants, noting that both men had amassed lengthy criminal records that stretched back to their early teens.
In announcing the sentence, U.S. Attorney Loeffler praised the United States Postal Inspection Service, the Sand Point Police Department, and the Alaska State Troopers for their investigation of the case.
Two Labor Union Officers and One Former Labor Union Officer Indicted in Manhattan Federal Court for Accepting More Than One Million Dollars in Kickbacks and Embezzling Union FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Cheryl Garcia, the Special Agent-in-Charge of the New York Regional Office of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (“DOL-OIG”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of charges against ROCCO MIRANTI, the business manager of the International Union of Allied Novelty and Production Workers, Local 223 (“Local 223”), JOHNNIE MIRANTI, the recording secretary-treasurer of Local 223, and LOUIS SMITH, the former president of the International Brotherhood of Teamsters, Local 810 (“Local 810”), for allegedly accepting more than one million dollars in kickback payments and embezzling money from Local 223 and Local 810. ROCCO MIRANTI, JOHNNIE MIRANTI, and SMITH were arrested today and arraigned in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “Rocco Miranti, Johnnie Miranti, and Louis Smith, by allegedly accepting more than a million dollars in bribes and embezzling union funds, put their self-interest above the interests of the union members they were supposed to represent. Rank-and-file union members are entitled to leadership that is supportive, not criminally exploitive, as alleged here.”
FBI Assistant Director Diego Rodriguez said: “Union leaders are supposed to represent workers for fair wages, benefits, and working conditions, not take kickback payments. As alleged, the defendants received more than $1 million in payments over 10 years. The FBI will continue to investigate those who seek to use their organization and their position as a way to personally profit illegally.”
DOL-OIG SAC Cheryl Garcia said: “The Office of Inspector General will continue to work cooperatively with our law enforcement partners to investigate these types of allegations.”
NYPD Commissioner William J. Bratton said: “As alleged, the defendants betrayed their union colleagues by using their influence within the health care plan to gain more than a million dollars in kickbacks. The NYPD has no tolerance for corruption at any level. I want to thank all of the investigators, agents and prosecutors involved in this case for weeding out this criminal behavior.”
According to the allegations in the Indictment filed in Manhattan federal court on Monday, June 29, 2015[1]:
Local 223 is headquartered in Manhattan and represents factory workers. Local 810 is headquartered in Long Island City and represents workers in many industries, including freight drivers and warehouse workers.
From at least 2004 up to and including the present, ROCCO MIRANTI and JOHNNIE MIRANTI were both officers of Local 223. From at least 2000 through 2013, SMITH was the president of Local 810; from 2013 through December 2014, SMITH was a trustee of Local 810. While they were officers of their respective unions, ROCCO MIRANTI, JOHNNIE MIRANTI, and SMITH were trustees of the unions’ health care benefit programs. In that capacity, they owed fiduciary duties to Local 223 and Local 810, respectively.
Claims for the Local 223 and Local 810 health care benefit programs were processed by Business-1, a third-party administrator. The president of Business-1, who is cooperating with the Government (the “CW”), told the Government that ROCCO MIRANTI, JOHNNIE MIRANTI, and SMITH demanded monthly kickback payments in exchange for Local 223 and Local 810 doing business with Business-1. At first, the CW made kickback payments solely to ROCCO MIRANTI; in or about 2005, ROCCO MIRANTI arranged for Business-1 to become the third-party administrator for Local 810, in exchange for kickback payments to SMITH. Initially, the kickback payments to ROCCO MIRANTI and SMITH were approximately five percent of the fees paid by Local 223 and Local 810, respectively, to Business-1; in or about 2006, ROCCO MIRANTI and SMITH increased the kickback payments that they required from the CW to approximately 10 percent of the fees paid by Local 223 and Local 810, respectively, to Business-1.
Beginning in or about October 2014, ROCCO MIRANTI, JOHNNIE MIRANTI, and SMITH each had conversations and meetings, which were recorded by the FBI, with the CW about the monthly kickback payments. During some of these meetings, the CW made kickback payments to ROCCO MIRANTI, JOHNNIE MIRANTI, and SMITH, including, in December 2014, a $10,000 cash payment to ROCCO MIRANTI and JOHNNIE MIRANTI and a $12,000 cash payment to SMITH.
In total, the kickback payments for the Local 223 account have exceeded $500,000, as have the kickback payments for the Local 810 account.
* * *
ROCCO MIRANTI, 70, of Howard Beach, New York, JOHNNIE MIRANTI, 39, of Rockville Centre, New York, and SMITH, 73, of Pearl River, New York, are each charged with one count of conspiring to solicit and receive kickbacks to influence the operation of an employee benefit plan, one count of conspiring to embezzle from an employee benefit plan, and one count of conspiring to commit theft or embezzlement in connection with a health care benefit program, each of which carries a maximum term of five years in prison. The Indictment also seeks forfeiture of crime proceeds. U.S. v. Rocco Miranti et al. Indictment (562.41 KB)
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, the U.S. Department of Labor’s Office of Labor-Management Standards, and the New York City Police Department’s Organized Crime Investigation Division.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Jessica Lonergan is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Indianapolis men sentenced for string of armed business robberiesRead the Press Release
Serial robbers responsible for at least thirteen armed robberies in Central Indiana, receive 25 year sentence from U.S. District Judge Jane Magnus-Stinson
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the convictions of Armand R. Fuller, 22, and Darian T. Dowdell, 23, both of Indianapolis, for their role in a string of armed robberies in Indianapolis and neighboring counties. Following their pleas of guilty today, U.S. District Judge Jane Magnus–Stinson sentenced Fuller and Dowdell to 25 years each in federal prison.
“These two men are violent offenders who deserve to spend the next 25 years of their lives in federal prison,” said Minkler. “They made a living robbing local businesses and now are being held accountable.”
During today’s proceedings, Judge Stinson heard evidence that between November of 2013 and February of 2014, Fuller, Dowdell, and a third Indianapolis man, Fletcher A. Greer, 22, robbed some thirteen commercial establishments in the Indianapolis area at gunpoint. Those robberies included four Speedway gas stations, five McDonald's restaurants, a Jack in the Box, a Starbucks, and a Little Caesar’s pizza business. In at least one robbery, members of the trio pointed a gun at the head of a pregnant business employee and demanded cash and the employee’s personal cell phone. In another robbery, the trio pointed guns at customers of the business and demanded the customers turn over personal items, including cell phones and a laptop computer.
Based on surveillance footage from security cameras at the various businesses, the FBI and IMPD linked common elements among all the robberies, to include distinctive clothing worn by the perpetrators, and distinctive weapons the perpetrators carried, and determined that the robberies were all connected.
On February 18, 2014, Fuller, Dowdell, and Greer Greer, robbed a Steak ‘n Shake restaurant in Brownsburg, and then led responding units from the Brownsburg Police Department, IMPD, and the FBI Safe Streets Task Force on a high-speed chase over snow-covered roads in Hendricks County. The trio was apprehended after the vehicle they were driving failed to negotiate a turn and crashed into a drainage ditch. At the time of their arrest, Fuller, Dowdell, and Greer were found in possession of the distinctive clothing and firearms which linked them to the earlier robberies. All totaled, law enforcement officials recovered five firearms, two Tech 22, .22 caliber handguns, a .38 caliber revolver, a .357 caliber revolver, and a stolen .40 caliber semi-automatic handgun, that had been used in the robbery spree.
Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI stated, “violent crime remains a significant priority for the FBI and our Safe Streets Task Force is committed to investigating those most dangerous to our communities.”
According to Assistant United States Attorney Mathew J. Rinka, who prosecuted the case for the government, Judge Magnus-Stinson ordered Fuller and Dowdell to serve five years of supervised release following completion of their federal prison sentence, and ordered them to pay more than $18,000 in restitution to the various business and individuals they robbed.
Judge Magnus-Stinson sentenced Fletcher A. Greer in April of this year to 15 years in prison, followed by three years of supervised release, for his role in the robberies.
Two Associated with Dallas County Commissioner’s Public Corruption Investigation Plead Guilty to Federal OffensesRead the Press Release
DALLAS — Two individuals associated with the public corruption investigation of Dallas County Commissioner John Wiley Price, one of whom was indicted last July with Commissioner Price, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney this morning, through plea agreements and factual resumes, to federal offenses, announced John Parker, Acting U.S. Attorney for the Northern District of Texas
Christian Lloyd Campbell, 45, of Oklahoma, a consultant who, through his company, Christian Consulting Group, provided consulting services for businesses pursuing public and private sector contracts, pleaded guilty to one count of conspiracy to commit bribery concerning a local government receiving federal benefits, as was charged in the indictment. Campbell faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. However, according to the plea agreement filed, if the Court accepts the plea, the parties agree that the maximum term of imprisonment shall be no more than 36 months.
Karen Manning, who owned the Millennium 2000 art gallery in Dallas, which among other things, according to the factual resume filed, sold African art for Commissioner Price, pleaded guilty to an Information filed today charging one count of subscribing to a false and fraudulent U.S. individual income tax return. She faces a maximum statutory penalty of three years in federal prison and a $250,000 fine.
A factual resume is a statement of facts that support a defendant’s guilty plea. All persons named in Campbell and Manning’s factual resumes are entitled to the presumption of innocence until proven guilty.
Sentencing dates were not set.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are conducting the investigation. Assistant U.S. Attorneys Walt M. Junker and J. Nicholas Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller are prosecuting.
Tonawanda Woman Sentenced for Defrauding Elderly VeteranRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kathy Oertelt, 32, of Tonawanda, NY, who was convicted of mail fraud, was sentenced to 18 months in prison by Senior U.S. District Judge William M. Skretny, to mail fraud.Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that between April and October 2013, Oertelt, who was employed as a health care provider for an 87-year old legally blind veteran, used the veteran’s signature stamp without his knowledge or permission to issue checks to herself totaling approximately $20,000. The defendant also obtained blank checks from an account the veteran had at the Navy Federal Credit Union in Vienna, Virginia. Oertelt wrote checks to herself on that account totaling approximately $54,000, and used the funds to purchase a 2008 Ford Expedition and a 2001 Suzuki SSXR motorcycle and to fund her gambling habit.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Veterans Administration, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent in Charge Jeffrey G. Hughes, and the United States Secret Service, under the direction Special Agent in Charge C. Todd Laster.Tonawanda Woman Sentenced for Defrauding Elderly VeteranRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kathy Oertelt, 32, of Tonawanda, NY, who was convicted of mail fraud, was sentenced to 18 months in prison by Senior U.S. District Judge William M. Skretny, to mail fraud.Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that between April and October 2013, Oertelt, who was employed as a health care provider for an 87-year old legally blind veteran, used the veteran’s signature stamp without his knowledge or permission to issue checks to herself totaling approximately $20,000. The defendant also obtained blank checks from an account the veteran had at the Navy Federal Credit Union in Vienna, Virginia. Oertelt wrote checks to herself on that account totaling approximately $54,000, and used the funds to purchase a 2008 Ford Expedition and a 2001 Suzuki SSXR motorcycle and to fund her gambling habit.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Veterans Administration, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent in Charge Jeffrey G. Hughes, and the United States Secret Service, under the direction Special Agent in Charge C. Todd Laster.Tonawanda Man Sentenced for Cocaine and Marijuana TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Richard Himbury, 43, of Tonawanda, NY, who was convicted of conspiring to distribute over 15 kilograms of cocaine and 450 kilograms of marijuana, was sentenced to 121 months in prison by District Judge Richard J. Arcara.Assistant U.S. Attorney Edward H. White, who handled the case, stated that between January 2010 and December 9, 2011, the defendant conspired with James Leon, Ricardo Garza, Daniel Garza and others, to distribute cocaine and marijuana. Ricardo Garza supplied the drugs to James Leon who then redistributed them to Himbury and others.
On November 15, 2011, the Drug Enforcement Administration seized approximately eight kilograms of cocaine and 100 pounds of marijuana from Himbury’s residence on St. Amelia Drive in Tonawanda. The seizure followed a vehicle pursuit of Himbury by federal agents on Route 20-A in Wales, NY. There, agents recovered four ounces of cocaine which Himbury threw out his car window during the chase.
James Leon, Ricardo Garza, and Daniel Garza have been convicted.
The sentencing is the result of a joint and continuing investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, Investigators from the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lockport Police Department, under the direction of Chief Lawrence Eggert, the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, the Amherst Police Department, under the direction of Chief John Askey, the Erie County Sherriff’s Department, under the direction of Sheriff Timothy Howard, the Lancaster Police Department, under the direction of Chief Gerald Gill, the Cattaraugus County Sherriff’s Department, under the direction of Sheriff Timothy Whitcomb and the Southern Tier Regional Drug Task Force.
Toledo man charged with robbing same bank on back-to-back daysRead the Press Release
An indictment was filed charging John Lee Robinson, 53, of Toledo, with two counts of bank robbery.
Robinson is accused of robbing the Citizens Bank at 4260 Monroe Street in Toledo on June 3 and the same bank the following day.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Sentenced on Bribery Charges in Connection with Gulf Coast Community Action AgencyRead the Press Release
Gulfport, Miss – Linda Harvey-Irvin, 62, of Jackson, Donald Walton, 51, of Vicksburg, and Markuntala Croom, 45, of Columbia, were sentenced today by U.S. District Judge Sul Ozerden for bribery involving the Gulf Coast Community Action Agency, a non-profit organization, partially funded by federal grants, which runs the Head Start Preschool in Gulfport, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, Special Agent in Charge Jerome R. McDuffie with IRS – Criminal Investigation, and Mississippi State Auditor Stacey Pickering.
Linda Harvey-Irvin was sentenced to 85 months in federal prison followed by two years of supervised release. She was also ordered to pay $531,236 in restitution and perform 100 hours of community service.
Donald Walton was sentenced to 37 months in federal prison followed by two years of supervised release. He was also ordered to pay a $10,000 fine and a forfeiture judgment in the amount of $31,000 was entered.
Markuntala Croom was sentenced to 57 months in federal prison followed by two years of supervised release. He was also ordered to pay $531,236 in restitution and perform 100 hours of community service.
Harvey-Irvin was the deputy director of the Mississippi Gulf Coast Community Action Agency, located in Gulfport. She accepted bribes from Walton, owner and operator of Walton Construction, in exchange for construction contracts worth more than $400,000. Harvey-Irvin was also charged in a second indictment with accepting bribes from Markuntala Croom, owner and operator of Croom Consulting, in exchange for awarding over $520,502 in consulting work to Croom. Walton paid Harvey-Irvin $31,000 in kickbacks as a reward for his contracts, and Croom paid Harvey-Irvin $69,911.49 in kickbacks as a reward for her contracts.
U.S. Attorney Gregory K. Davis praised the efforts of the federal and state investigative agencies who worked on this case. "The sentences handed down today are fitting for the violations committed by these defendants, said U.S. Attorney Davis. "This office will continue to work with our federal and state law enforcement partners to prosecute those who choose to violate federal laws.
"Fraud of this kind diverts precious taxpayer dollars and jeopardizes the strength of a program that serves the most vulnerable members of our society," stated Donald Alway, Special Agent in Charge of the FBI in Mississippi. "However, as this case demonstrates, the FBI and our law enforcement partners are aggressively fighting back to protect the U.S. taxpayer and the integrity of our federal assistance programs."
Special Agent in Charge Jerome R. McDuffie, IRS – Criminal Investigation, stated: "We are pleased with the sentences handed down by the court in this matter. It should send a strong message to Mississippians and federal taxpayers that the theft of taxpayer dollars will not be tolerated. Linda Harvey- Irvin and her co-conspirators also represent an example to others who are engaged in the acceptance of kickbacks, that public servants, and/or the individuals who bribe them, are not above the law. In fact, they are held to the highest legal and ethical standards. IRS- Criminal Investigation is proud to have been a partner in this very important investigation, and is committed to continuing to work with our law enforcement partners to help put an end to public corruption."
Mississippi State Auditor Stacey Pickering stated: "By April 2010, an investigation was launched by the State Auditor’s Office into the use of funds awarded to the Mississippi Gulf Coast Community Action Agency (GCCAA). It is very sad that the money intended to serve as an economic stimulus for that community turned into a slush fund for personal gain." "The funds mishandled by GCCAA is an example of the importance of state and federal officials working together. One public dollar taken illegally is one too many," Pickering said. "The sentences handed down today show that my office, the U.S. Attorney’s Office, the FBI, and the IRS, will not tolerate this type of behavior by those entrusted with taxpayer funds."
This case was investigated by the Mississippi State Auditor’s Office, the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation and U.S. Department of Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorney Scott Gilbert.
Three Plead Guilty to Trafficking Heroin from Mill & Stash HouseRead the Press Release
PROVIDENCE, R.I. – Michael Santana Guilermo, 33, of Cranston, R.I., Carlos Ramos Rosa, 37, and Felix Fuentes Perez, 35, of Boston, Mass., pleaded guilty in federal court in Providence today to operating a heroin mill & stash house in West Warwick, R.I., where they cut and packaged for sale large quantities of high-purity heroin.
Appearing before U.S. District Court Judge Mary M. Lisi, the three men pleaded guilty to conspiring to distribute and possess with the intent to distribute one kilogram or more of heroin.
The guilty pleas are announced by United States Attorney Peter F. Neronha, Michael Ferguson, Special Agent in Charge of the DEA’s New England Field Division, Cranston Police Chief Colonel Michael J. Winquist and West Warwick Police Chief Colonel Richard G. Silva.
A fourth individual, Yhoel Pujols Morel, 25, of Providence, an alleged member of the heroin trafficking conspiracy, is detained in federal custody and awaiting trial.
According to court documents and information presented to the court, an investigation by the Rhode Island DEA Drug Task Force determined that during 2014, packages containing one or more kilograms of heroin were repeatedly shipped into Rhode Island via common carrier parcel delivery services. After receipt of the heroin, members of a drug trafficking conspiracy processed the high-purity heroin for further distribution, by breaking apart the kilograms, mixing in adulterants and then repackaging the heroin for redistribution.
Based on information developed by members of the Drug Task Force, law enforcement determined that a conspiracy to process, package and distribute the heroin was being operated out of a heroin mill & stash house in West Warwick. As a result of evidence developed during the investigation, including the use of electronic surveillance, on November 10, 2014, shortly after Yhoel Pujols Morel allegedly exited the stash house carrying a white bag and drove away from the area, a member of the Cranston Police Department working with the Drug Task Force conducted a traffic stop of the Pujols’ vehicle. A subsequent search of the vehicle revealed a non-factory installed concealed compartment within the driver's side door of the vehicle which allegedly contained approximately 653 grams of heroin.
The following day, Felix Fuentes Perez and Carlos Ramos Rosa exited the West Warwick residence and entered one vehicle while Michael Santana Guilermo exited the residence and entered a second vehicle. Shortly after driving away from the residence, a Cranston Police officer working with the Drug Task Force conducted a motor vehicle stop of Perez and Rosa’s vehicle. A search of the vehicle yielded 1,111.4 grams of heroin concealed inside a hidden compartment under the rear seat.
Guilermo was arrested on March 4, 2015, by DEA and DEA Drug Task Force agents.
Carlos Ramos Rosa and Michael Santana Guilermo are scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on September 18, 2015. Felix Fuentes Perez is scheduled to be sentenced on October 1, 2015.
Conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin is punishable by statutory penalties of between 10 years to life imprisonment to be followed by between 5 years to lifetime supervised release, and a fine of up to $10,000,000.
The cases are being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The DEA Drug Task Force is comprised of law enforcement agents and officers from DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
Pawtucket Police detectives assisted in the investigation of this matter.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Three Mercer County men sentenced in federal court in BluefieldRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced that three Mercer County men were sentenced today in federal court in Bluefield. Lamar Baxter, 39, of Princeton, was sentenced to 27 months in federal prison for using a communication facility to facilitate a felony. Baxter pled guilty in March of 2015, admitting that on November 11, 2014, he used a telephone in Princeton to set up a drug deal with a confidential informant, and shortly thereafter distributed seven 30mg oxycodone pills to the informant. Baxter admitted distributing a total of about 100 30mg oxycodone pills and about 100 hydromorphone pills over a period of time.
Joshua Blevins, 31, of Bluefield, was sentenced to 16 months in federal prison for use of a communication facility to facilitate a felony. Blevins guilty in February of 2015, admitting that on November 21, 2014, he used a telephone in or near Bluewell to set up a drug deal with a confidential informant. Shortly after that telephone call, Blevins distributed one oxymorphone pill to the informant. Blevins admitted to distributing a total of four oxymorphone pills to the informant.
Carl E. Howard, 62, of Princeton, was sentenced to 11 months in federal prison for distributing hydromorphone. Howard pled guilty in February of 2015, and admitted that on July 8, 2014, he distributed two hydromorphone pills to a confidential informant in Princeton. He further admitted that he distributed a total of 13 hydromorphone pills and small quantities of cocaine base and heroin.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. Assistant United States Attorney John File prosecuted these cases.
Teamster Pleads Guilty to Mail FraudRead the Press Release
BOSTON – A member of the Boston Teamsters Local 82 pleaded guilty on Monday, June 29, 2015 in U.S. District Court in Boston in connection with stealing unemployment insurance benefits.
Thomas Flaherty, 52, of Braintree pleaded guilty to three counts of mail fraud for defrauding the Massachusetts Department of Workforce Development, Division of Unemployment Assistance of unemployment insurance benefits. U.S. District Court Judge Denise Jefferson Casper scheduled sentencing for Sept. 24, 2015.
From March 2010 to December 2011, while working for Local 82, Flaherty’s gross earnings were $49,890; however, Flaherty made several misrepresentations so that he could collect unemployment insurance benefits. Specifically, Flaherty falsely reported to the Department of Unemployment Insurance that during the same time period he earned only $10,102. Flaherty failed to report his weekly earnings or significantly under-reported his earnings so that it appeared to the Department of Unemployment Insurance that he was eligible to receive full or at least partial unemployment insurance when, in fact, he was employed nearly full time and was not eligible. In total, Flaherty collected $21,093 in unemployment insurance benefits.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 on each count, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott S. Dahl, Inspector General of the U.S. Department of Labor, Office of Inspector General; Mark J. Neylon, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration; and Boston Police Commissioner William Evans, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit and Susan G. Winkler of Ortiz’s Narcotics and Money Laundering Unit.
Taos Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Nathan Mondragon, 29, a member and resident of Taos Pueblo, N.M., was sentenced this afternoon in Albuquerque, N.M., to 84 months in federal prison followed by three years of supervised release for his assault conviction.
Mondragon was arrested on Sept. 23, 2014, on a criminal complaint charging him with assault with a deadly weapon and assault resulting in serious bodily injury. According to the complaint, Mondragon assaulted another Taos Pueblo member on Sept. 14, 2014, in Taos County, N.M., on land owned by Taos Pueblo. The complaint alleges that Mondragon stabbed the victim multiple times before fleeing the crime scene. Mondragon was subsequently indicted on Oct. 21, 2014, and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
On Dec. 23, 2014, Mondragon pled guilty to an assault resulting in serious bodily injury charge. Mondragon admitted that on Sept. 14, 2014, he assaulted the victim by stabbing him with a knife at a location within Taos Pueblo.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Pueblo Tribal Police Department. Assistant U.S. Attorney David Adams prosecuted the case.
Statements by Head of the Civil Rights Division Vanita Gupta and U.S. Attorney Preet Bharara of the Southern District of New York on the Filing of the Proposed Settlement Agreement Regarding Rikers IslandRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, Head of the Civil Rights Division, issued the following statement today in connection with the filing of the proposed settlement agreement among the parties in Nunez v. City of New York:
“The unprecedented reforms announced today further the Civil Rights Division’s goals of protecting youth from unconstitutional conditions of confinement, whether in the juvenile or criminal justice system. This proposed consent judgment is unprecedented in the detail and comprehensiveness of its use of force remedies. Those remedies are highly appropriate, given the breadth of Rikers Island’s operations and the culture of excessive use of force that we found there. In addition, the prohibitions restricting the use of isolation and reforming the disciplinary system for inmates under the age of 19 provide essential protections for the complicated, and often underserved, population of youth charged in the adult criminal justice system.”
U.S. Attorney Preet Bharara of the Southern District of New York issued the following statement today:
“Today marks another important step toward meaningful and lasting reform at Rikers Island. The parties have executed, and we have submitted for the court’s approval, a 63-page agreement establishing a detailed and comprehensive framework of practices, systems and policies designed to reduce violence in the jails and to keep inmates and correction officers safe. This agreement reflects the commitment of all involved to dismantle the culture of violence that has for too long denied those at Rikers Island the protections of the Constitution. We look forward to the court’s approval of this landmark agreement, and through its vigilant enforcement, ensuring that the city lives up to its promises.”
Statements of Manhattan U.S. Attorney Preet Bharara and Head of the Civil Rights Division Vanita Gupta on the Filing of the Proposed Settlement Agreement Regarding Rikers IslandRead the Press Release
Manhattan U.S. Attorney Preet Bharara issued the following statement today in connection with the filing of the proposed settlement agreement among the parties in Nunez v. City of New York:
“Today marks another important step toward meaningful and lasting reform at Rikers Island. The parties have executed, and we have submitted for the Court’s approval, a 63-page agreement establishing a detailed and comprehensive framework of practices, systems and policies designed to reduce violence in the jails and to keep inmates and correction officers safe. This agreement reflects the commitment of all involved to dismantle the culture of violence that has for too long denied those at Rikers Island the protections of the Constitution. We look forward to the Court’s approval of this landmark agreement, and through its vigilant enforcement, ensuring that the City lives up to its promises.”
Principal Deputy Assistant Attorney General Vanita Gupta, Head of the Civil Rights Division, issued the following statement today:
“The unprecedented reforms announced today further the Civil Rights Division's goals of protecting youth from unconstitutional conditions of confinement, whether in the juvenile or criminal justice system. This proposed Consent Judgment is unprecedented in the detail and comprehensiveness of its use of force remedies. Those remedies are highly appropriate, given the breadth of Rikers Island's operations and the culture of excessive use of force that we found there. In addition, the prohibitions restricting the use of isolation and reforming the disciplinary system for inmates under the age of 19 provide essential protections for the complicated, and often underserved, population of youth charged in the adult criminal justice system.”
Statement of ConscienceRead the Press Release
Our hearts are saddened by the massacre at Mother Emanuel AME Church in Charleston, South Carolina, and we extend our deepest sympathies to the families and friends of the victims. We choose to not be silent at this moment in our nation's history, but to be clear about where we stand. We condemn all acts of violence and are especially sensitive to violence motivated by racial hatred. We commend the people of Emanuel and Charleston for their inspiring response to this tragedy.
As we stand in solidarity with Mother Emanuel and Charleston, we know that many of our friends and neighbors worry whether such events could take place in New Haven. Although we cannot prevent all acts of violence, members of the African American clergy, the larger New Haven faith community, the New Haven Police Department, the United States Attorney’s Office for the District of Connecticut, the Federal Bureau of Investigation, the New Haven State’s Attorney’s Office and Project Longevity remain committed to working together to promote the safety of all our residents and to create an environment of trust that recognizes the humanity and dignity of every member of our community.
Over the last three years, the New Haven Police Department’s reinstitution of community policing, the U.S. Attorney’s Office’s outreach efforts, and initiatives of the African American clergy have strengthened the ties between the local community and its law enforcement partners. We are committed to deepening those ties.
At the same time, we recognize that recent events have brought into stark relief the unhealed wounds created by our nation’s tortuous history of slavery and racism. We recognize, as the United States House of Representatives acknowledged in its 2008 apology for slavery, that “African-Americans continue to suffer from the complex interplay between slavery and Jim Crow. . . through enormous damage and loss, both tangible and intangible, including the loss of human dignity, the frustration of careers and professional lives, and the long-term loss of income and opportunity.”
We live in a nation with a history of racism and none of us can escape that legacy. But we can deepen our understanding of that history and work to heal from it. We commit to doing our part to promote that vital healing. We commit to work together to foster a continuing community conversation that will help us all look with fresh eyes at our history and its impact on our lives today -- to look at how stereotypes created four hundred years ago to justify the enslavement of Black people still shape public and private perceptions and actions.
We will ensure that racial violence will never be accepted in New Haven or the rest of Connecticut. We will foster an environment of trust and respect, and we will boldly create opportunities to promote racial healing and reconciliation that will lead to genuine racial and economic justice. We cannot bring back the nine lives lost in Charleston, but we will honor their memories by working together to prevent such tragedies from befalling other families.
DEIRDRE M. DALY
UNITED STATES ATTORNEYPATRICIA FERRICK
SPECIAL AGENT IN CHARGE, FEDERAL BUREAU OF INVESTIGATIONTONI HARP
MAYOR, NEW HAVENDEAN M. ESSERMAN
CHIEF, NEW HAVEN POLICE DEPARTMENTMICHAEL DEARINGTON
STATE’S ATTORNEY, NEW HAVENBRENT PETERKIN
PROJECT LONGEVITYSTACY R. SPELL
PROJECT LONGEVITYREV. JAMES NEWMAN
NEW FREEDOM CHURCH
PRESIDENT, GREATER NEW HAVEN CLERGY ASSOCIATIONREV. MARY ANDERSON
THE CITY OF MINISTRY REFUGEREV. J. SCOTT BARBER
CHURCH OF GOD & SAINTS OF CHRISTELDER ALTON BARNES
HOLY TRINITY CHURCH OF GOD IN CHRISTBISHOP H. D. BORDEAUX
CHURCH OF GOD IN CHRISTADMIN. ASSIST. THOMAS J. BORDEAUX
CHURCH OF GOD IN CHRISTREV. EDDIE CHERRY
GREATER MT. CARMEL PENTECOSTALREV. STEVE COUSIN, JR.
BETHEL A.M.E. CHURCHREV. GEORGE KAVOOR
ST. JOHN'S EPISCOPAL CHURCHDR. REV. BOISE KIMBER
FIRST CALVARY BAPTIST CHURCHREV. KEITH KING
CHRISTIAN TABERNACLE BAPTIST CHURCHREV. RICHARD D. MEADOWS
ST. LUKE’S EPISCOPAL CHURCHREV. DOROTHY MEWBORN
FIRST CALVARY BAPTIST CHURCHREV. AARON MOODY
FIRST CALVARY BAPTIST CHURCHDR. LUCILLE MOORING-WINSTON
SAFELY PLACED OUTREACH MINISTRYPASTOR CAROLYN OHERE
FAITH TEMPLE REVIVAL CENTERREV. BELINDA ROBERTS-BURNETT
P.W.A.P. MINISTRIESBISHOP ERELL SKYERS
SHILOH APOSTOLIC CHURCH OF CHRISTBISHOP VICENT SMITH
MORNINGSTAR DELIVERANCE MINISTRIESBISHOP ROBERT H. STALLINGS
CHURCH OF GOD AND SAINTS OF CHRISTREV. HOWARD TAYLOR
FAITH CENTER CHURCHPROPHET RICHARD TRENT
AT LARGEREV. ROGER WILKINS
MLCM CHURCH OF GOD IN CHRISTScotland County, North Carolina, Public Housing Agency and Two Former Employees to Pay over $2.7 Million to Settle Sexual Harassment LawsuitsRead the Press Release
The Justice Department today announced that Southeastern Community and Family Services Inc. (SCFS), a public housing agency that administers the Section 8 voucher program in Scotland County, North Carolina, and two of SCFS’ former employees have agreed to pay more than $2.7 million in monetary damages and civil penalties to settle consolidated Fair Housing Act lawsuits brought by the Justice Department and private plaintiffs. SCFS was formerly known as Four-County Community Services Inc. The suits allege that Wesley, SCFS’s former Section 8 housing coordinator, and Pender, SCFS’s former housing inspector, sexually harassed female voucher program participants and applicants. This represents the largest monetary settlement ever agreed to in a sexual harassment case brought by the Justice Department under the Fair Housing Act.
“It is deeply offensive and illegal to sexually harass women who are seeking housing for themselves and their families,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “This settlement sends a strong message to those who would exploit their positions of power that their egregious conduct will not be tolerated and that the Civil Rights Division will aggressively pursue those who engage in it.”
“The conduct of these defendants was reprehensible, and we are pleased with the outcome in this case,” said U.S. Attorney Ripley Rand of the Middle District of North Carolina. “We will continue to do everything we can to vindicate the rights of those who are subject to sexual harassment and hold accountable those who seek to prey upon others.”
“No one who provides much-needed housing or housing benefits to low-income women has the right to demand sexual favors in exchange for that housing,” said Assistant Secretary Gustavo Velasquez of the Department of Housing and Urban Development (HUD). “It’s wrong and it’s illegal. Today’s settlement reaffirms the Justice Department’s and HUD’s commitment to protecting the rights of women to live safely in their homes, without harassment.”
The department’s complaint, filed in the U.S. District Court for the Middle District of North Carolina, alleges, among other things, that Wesley and Pender subjected voucher program participants and applicants to unwanted sexual comments, sexual touching and other sexual acts, conditioned or offered Section 8 benefits in exchange for sexual acts and took adverse housing actions against those who rebuffed their sexual advances. As alleged in the complaint, Wesley and Pender engaged in this conduct while exercising their authority as employees of SCFS, and SCFS failed to take reasonable preventive or corrective measures. SCFS terminated the employment of Wesley and Pender after the department filed its lawsuit.
The consent decree, which is subject to approval by the U.S. District Court, requires the defendants to pay $2,700,000 in monetary damages to victims of their discriminatory conduct, including fifteen victims who filed a private lawsuit and their attorneys, and any additional individuals who are identified by the United States through a process established in the consent decree. Individuals who believe they were subjected to sexual harassment by Wesley or Pender should contact the Justice Department at 1-800-896-7743, option 94, or e-mail the department at [email protected]. In addition, the defendants must pay $27,500 to the United States as a civil penalty.
The consent decree also prohibits the defendants from engaging in discrimination and requires SCFS to establish a non-discrimination policy and grievance procedure and to hire an independent manager for the Section 8 Voucher program. SCFS officials are required to participate in fair-housing training to prevent such conduct in the future. The decree bars Wesley and Pender from participating in the management of any Section 8 Voucher program and any residential rental properties in the future. The department’s lawsuit began after Legal Aid of North Carolina Inc.’s Fair Housing Project brought the matter to the department’s attention. HUD also referred to the department a complaint against the defendants. The department then conducted an independent investigation and filed suit.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination elsewhere can contact the Justice Department at 1-800-896-7743, or e-mail [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777.
Santa Fe Physician Arraigned on Federal Indictment Alleging Scheme to Defraud Medicare and Other Health Care Benefit ProgramsRead the Press Release
ALBUQUERQUE – Roy G. Heilbron, 51, a cardiologist in Santa Fe, N.M., was arraigned in federal court in Albuquerque, N.M., on a 24-count indictment charging him with health care fraud and wire fraud, announced Damon P. Martinez and Special Agent Carol K.O. Lee of the FBI’s Albuquerque Division. Heilbron entered a not guilty plea and was released on his own recognizance
The indictment alleges that Heilbron, a physician licensed to practice medicine in New Mexico who specializes in cardiology, executed a scheme to defraud Medicare and other health care benefit programs between Jan. 2010 and May 2011 by submitting false and fraudulent claims. According to the indictment, Heilbron allegedly executed his fraudulent scheme by:
- Performing and billing for a wide array of unnecessary tests on every new patient and submitting false diagnoses with the billing claims to justify the tests to the insurance plans;
- Inserting false symptoms, observations, and diagnoses into patients’ medical charts to provide written support for the tests he ordered or performed;
- Inserting photocopied clinical notes, diagnostic test results, and ultrasound images in patients’ medical charts to create a written record of procedures that were either not performed or that had not been sufficiently documented to support the billing;
- Submitting the photocopied notes, results, and images to the insurance plans when the plans requested documentation to support the claims submitted;
- Submitting claims to health plans for procedures that were never performed;
- Submitting claims for procedures performed on two consecutive dates to increase the amount paid for services that were actually rendered together on one single date; and
- Misusing billing codes and modifiers in order to increase his rate of reimbursement.
Counts 1 through 9 of the indictment allege that Heilbron committed health care fraud by submitting false claims for medical services rendered to health care benefit programs on nine dates between July 13, 2010 and Feb. 10, 2011. Counts 10-21 allege that Heilbron committed health care fraud by submitting falsified medical records for medical services to health care benefit programs on twelve occasions between Jan. 20, 2010 and May 5, 2011. Counts 22 through 24 allege that Heilbron committed wire fraud by using wire communications to obtain payments from health care benefit programs.
The indictment includes forfeiture provisions that seek forfeiture of any property derived from the proceeds of the crimes charged in the indictment.
If convicted on the health care fraud charges, Heilbron faces a statutory maximum penalty of ten years in prison. If convicted on the wire fraud charges, Heilbron faces a statutory maximum penalty of 20 years in prison. Maximum potential sentences are prescribed by Congress and are provided for informational purposes only. The sentence to be imposed on a defendant is determined by the court.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
heilbron_indictment.pdf (609.73 KB)
Sacramento Man Sentenced to 5 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — Humberto Lozano III, 27, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced. Lozano was ordered to begin serving his sentence on September 2, 2015. On release, he will be required to register as a sex offender.
According to court documents, in March 2013, America Online shut down Lozano’s email account because it had been used to distribute child pornography. AOL reported the account to law enforcement. When law enforcement obtained a search warrant for the email account, a total of 1360 images and 21 videos of child pornography were found. After his account was shut down, Lozano opened an new email account, this time at Yahoo!. He used that account to solicit images of child pornography. Between March 11, 2013, and July 1, 2013, approximately 1,300 images and 30 videos of child pornography were received. Investigators recovered a hard drive in Lozano’s possession and applied computer forensic tools to recover 4,000 deleted images of child pornography and child erotica.
According to the plea agreement, a child was rescued as a result of this investigation. One of the 4,000 deleted images still contained location data. It was of a child subject to sexual abuse in the Netherlands. That information was passed to Dutch law enforcement, who used it to find the child and rescue her from ongoing abuse.
In sentencing, Judge Mueller stated: “They are real victims even if there is no physical contact. There is ongoing trauma by virtue of knowing that the images are out there.”
This case was the product of FBI Child Exploitation Task Force/Innocent Images National Initiative in partnership with the Sacramento Sheriff's Office Internet Crimes Against Children Task Force. Assistant United States Attorney Matthew D. Segal prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
Summer camps are legally required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Wifredo A. Ferrer announced today.
To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Southern District of Florida reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“Summer camps represent a cherished pastime where children are given tremendous growth opportunities to learn independence, try novel activities while simultaneously building self-confidence,” Ferrer said. “The law requires camps to provide equal opportunities to disabled children whose needs can be reasonably accommodated.”
Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Coordinator (305) 961-9327.
St. Croix Man Sentenced to Four Years of Probation for Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis, today, sentenced Luke Lubrin, 46, of St. Croix, to four years of probation for manufacturing marijuana, United States Attorney Ronald W. Sharpe announced.
In February, Lubrin pleaded guilty to one count of manufacture of marijuana. As part of his plea, Lubrin admitted to growing marijuana on his property in Frederiksted, St. Croix. On June 26, 2014, a total of 58 marijuana plants were found on Lubrin’s property by special agents with the United States Drug Enforcement Administration (DEA).
As part of the term of probation, Lubrin was sentenced to serve six months of home confinement and pay a $1,000 fine.
The case was investigated by DEA and was prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Alphonso Andrews.
Rockville Man Sentenced to 15 Years in Prison for “Sextortion”Read the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Marc Joseph Punzalan, age 21, of Rockville, Maryland, today to 15 years in prison followed by a lifetime of supervised release for producing child pornography in connection with a scheme in which he met young girls through social media and internet chat rooms and convinced them to send him sexually explicit photographs of themselves. When the girls told him they no longer wanted to send the increasingly graphic images he requested, Punzalan threatened to post the images online and/or tell the girls’ friends and families.
Judge Motz also ordered that Punzulan pay restitution of $10,000, and that upon his release from prison, Punzalan must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Punzalan’s plea agreement, from January 2012 through January 2014, he contacted four minor female victims between 12 and 16 years of age, and persuaded them to send him sexually explicit photographs of themselves, using cell phone applications, and internet social media and chat messaging sites. Punzalan assumed the identity of at least one minor victim and used that victim’s identity to convince other minor females to send him sexually explicit images.
Each of the victims informed Punzalan at different points that she no longer wished to send him sexually explicit images. Punzalan responded to each girl by threatening to send the images to the victim’s family and friends or publicly post the images if the victim did not send him more images depicting increasingly graphic sexual conduct. Punzalan created social media accounts in the victims’ names and posted images he had received of the victims on those accounts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Robber Admits Dragging Employee by Hair During Bank Robbery in Overland ParkRead the Press Release
TOPEKA, KAN. - A Kansas City man pleaded guilty Tuesday to a federal bank robbery charge and admitted threatening employees with a gun and dragging a woman by her hair, U.S. Attorney Barry Grissom said.
Clifton B. Cloyd, 54, Kansas City, Mo., pleaded guilty to one count of bank robbery and one count of brandishing a firearm during the robbery. On Oct. 29, 2014, he and another man robbed the Bank of America at 9500 Mission in Overland Park, Kan. In his plea, Cloyd admitted:
- He and his accomplice held five bank employees and one customer at gunpoint.
- Cloyd, who was carrying a handgun, grabbed one of the bank employees and pulled her by the hair and scarf to the teller station. He struck her in the face with a handgun.
- Cloyd struck a customer so hard her glasses flew off and she was knocked to the floor.
- Cloyd struck a male bank employee with such force that his head started bleeding.
Sentencing is set for Sept. 14. He faces a penalty of not less than 10 years and not more than 25 years in federal prison and a fine up to $250,000 on the bank robbery charge, and a penalty of not less than seven years and a fine up to $250,000 on the firearm charge.
Co-defendant Steve A. Watts, 55, Mo., is awaiting trial.
Grissom commended the Overland Park Police Department, the Prairie Village Police Department, the Leawood Police Department, the FBI and Assistant U.S. Attorney David Zabel for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Richmond Men Sentenced to Prison for Roles in EZ Mart ShootoutRead the Press Release
RICHMOND, Va. – Deandre Yellardy, 24, of Richmond, was sentenced today to 120 months in prison, followed by three years of supervised release for possession of a firearm by a convicted felon. William Bell, 30, also of Richmond, was sentenced yesterday to 84 months in prison, followed by three years of supervised release for possession of a firearm by a convicted felon and possession with the intent to distribute cocaine base. Both charges stem from a June 12, 2014, shootout in the parking lot of the EZ Mart convenience store in Southside Richmond.
Yellardy plead guilty on March 20, 2015, and Bell pleaded guilty on March 31, 2015. According to court documents, on June 12, 2014, a masked gunman later identified as Yellardy fired multiple shots into a vehicle occupied by Bell in the parking lot of the South Richmond EZ Mart convenience store. Both Bell and his passenger were wounded. Bell returned fire with a .40 caliber pistol, but failed to hit Yellardy. Richmond Police officers stopped Yellardy in a vehicle as he was fleeing the scene and recovered both a 9mm firearm and mask in his possession. Bell fled the scene and failed to report the incident to police. Shell casings from the EZ Mart shooting scene were later matched to the gun recovered from Yellardy. At the time of the shooting, Yellardy was a convicted felon, and as a result, was prohibited from possessing a firearm.
On Sept. 22, 2014, Bell refused to stop for a Virginia State Police Trooper in Richmond related to a traffic offense. During the ensuing pursuit, Bell threw a .40 caliber pistol and approximately 13 grams of cocaine base from his vehicle. The firearm and cocaine were later recovered. Shell casings from the EZ Mart shooting scene were later forensically matched to the gun recovered from Bell. At the time of both incidents, Bell was a convicted felon, and as a result, was prohibited from possessing a firearm.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
This case was investigated by the ATF’s Washington Field Division, the Richmond Police Department, and the Virginia State Police. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case.
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.’s 3:15-cr-19 and 3:15cr20.
###
Readout of Attorney General Lynch's Visits to Raleigh-Durham, North CarolinaRead the Press Release
On her first official visit to her home state of North Carolina, Attorney General Loretta E. Lynch traveled today to Durham and Raleigh to attend meetings with civil rights leaders and individuals combatting human trafficking.
In Durham, the Attorney General held a civil rights roundtable meeting with law enforcement, local officials, community leaders, students and faith leaders. The topics discussed at the roundtable, which was held at the North Carolina Central University the School of Law, included hate crimes, voting rights and community-police relations.
During the roundtable, the Attorney General noted recent events in the South have brought back painful memories of the past for many.
“These are in fact challenging times as we all know,” the Attorney General told those assembled. “You’ve alluded to the recent events that have traumatized many of our houses of worship. There have also been events traumatizing many of our individuals of color. Also, of course, the events just a few weeks ago in Charleston highlight days that I think many of us thought were behind us.”
The Attorney General also noted that the Justice Department continues to investigate the heartbreaking church shooting in Charleston, reiterating that the investigation will explore “all angles, be it hate crime or domestic terrorism.”
She also spoke about the recent spate of church fires in southern states, saying that the department does not yet have all the details but that those incidents “have our full attention.”
“This is a serious issue that we will be addressing with the appropriate care and we will see where those matters lead us,” she said.
The Attorney General also emphasized her commitment to pursuing the justice in the face of hate crimes and civil rights abuses.
“While we cannot guarantee the absence of hate, we can guarantee the presence of justice. We could do that. And I am committed, as Attorney General, to making good on that guarantee,” the Attorney General said. “And I know that everyone in this room has spent most of their lives working towards living up to that guarantee and I’m so happy to count you as partners in this fight because it’s a fight that will cover all types of issues -- the traditional ones that we’ve seen here as well as the new threats that our newest citizens face, all of the things that make this country great. Sometimes people are looking to push back on that. But I want you to know that the Department of Justice and this Attorney General is committed to working with you in this fight.”
While in Raleigh, the Attorney General met with the North Carolina Coalition Against Human Trafficking and lauded their “cooperative and innovative approach,” including their efforts to bring together state and local leaders, law enforcement officials and legal and social service organizations. She highlighted the importance of having law enforcement team up with direct service agencies and first responders as a way to ensure that traffickers are brought to justice and survivors receive the support they need.
“One of my top priorities as Attorney General is to bring human traffickers to justice, assist trafficking survivors and secure the rights and dignity of anyone unable to do so for themselves,” the Attorney General said. “But as the people in this room are all too aware, responding to a crime as complex and as devastating as human trafficking is neither easy nor straightforward. Such crimes must be fought persistently and aggressively, while drawing on ingenuity and collaboration across many disciplines, organizations and professions.”
The Attorney General also praised the work of U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and U.S. Attorney Ripley Rand of the Middle District of North Carolina, whose offices have had recent successes in holding traffickers accountable. The Attorney General highlighted the Justice Department’s recent announcement on the success of an interagency Anti-Trafficking Coordination Team Initiative – or ACTeam Initiative – and the expansion of those efforts to other parts of the country.
The Attorney General also met with local officers from the Durham Police Department to thank them for their service and for being on the front lines to advance public safety. The Attorney General also stressed the importance of improving relationships, trust and respect between law enforcement and the communities they serve.
The Attorney General was joined on her visits in Durham and Raleigh by U.S. Attorney Walker and U.S. Attorney Rand.
Participants in the Durham civil rights roundtable included:
-
Attorney General Loretta E. Lynch, Office of the Attorney General
-
U.S. Attorney Thomas G. Walker, United States Attorney’s Office for the Eastern District of North Carolina
-
Mayor William “Bill” Bell, City of Durham
-
U.S. Representative G.K. Butterfield
-
District Liaison Sonia Price, Office of U.S. Representative David Price
-
Professor James Coleman, Duke Law School
-
Chancellor Debra Saunders-White, North Carolina Central University
-
Dean Phyliss Craig Taylor, North Carolina Central University School of Law
-
Professor Irving Joyner, North Carolina Central School of Law
-
President Everett Ward, St. Augustine’s University
-
President-Elect Tashni Dubroy, Shaw University
-
Chief Cassandra Deck-Brown, Raleigh Police Department
-
Chief Jose Lopez, Durham Police Department
-
Chief Chris Blue, Chapel Hill Police
-
Reverend Lorenzo Lynch
-
Reverend Marion Robinson, St. Matthews AME Church
-
Reverend Earl Johnson, President, Raleigh-Wake Citizens Association; Martin Street Baptist Church
-
Reverend Nancy Petty, Pullen Memorial Baptist Church
-
Reverend Paul Anderson, President of Raleigh Ministerial Alliance
-
Reverend William Everett, President of Interdenominational Ministers Alliance of Durham
-
Imam Adeel Zeb, Director of Muslim Life at Duke University
-
Imam Oliver Mohammed, Chaplain at Butner Federal Correctional Complex and As Salaam Islamic Center
-
Zainab Baloch, North Carolina State Muslim Association
-
Hamzu Butler, UNC-Chapel Hill Muslim Association
-
Rabbi Lucy Dinner, Temple Beth Or
-
Rabbi Larry Bach, Judea Reform Congregation
-
Bhupinder Singh, Sihk Gurdwara of North Carolina
-
President William Barber, North Carolina NAACP
-
President Fred Foster, North Carolina NAACP (Durham)
-
President Ralph Hunt Sr., Durham Committee on the Affairs of Black People
-
Chris Sgro, Executive Director of Equality NC
-
Helena Cragg, LGBT Center of Durham
-
Civic Engagement Manager Juliana Cabrales, National Association of Latino Elected and Appointed Officials
-
Executive Director Angeline Echevarria, El Pueblo Inc.
-
President Pilar Rocha-Goldberg, El Centro Hispano
-
Janice McKenzie Cole, Cole Immigration Law Center
-
Quality Egg Manager Sentenced in Connection with Conspiracy to Bribe U.S. Department of Agriculture Egg InspectorRead the Press Release
SIOUX CITY – A former marketing manager at egg production and processing facilities who participated in a conspiracy to bribe a U.S. Department of Agriculture (USDA) inspector, to sell restricted eggs with intent to defraud, and to introduce misbranded food into interstate commerce with intent to defraud and mislead was sentenced yesterday in federal district court in Sioux City, Iowa, the U.S. Attorney’s Office of the Northern District of Iowa announced.
Tony Wasmund, 64, of Willmar, Minnesota, the head of marketing at Quality Egg LLC of Galt, Iowa, was sentenced to four years’ probation by U.S. District Court Judge Mark W. Bennett in the Northern District of Iowa.
Quality Egg LLC pleaded guilty to paying at least two cash bribes to a USDA inspector, who is now deceased, to procure the release of shell eggs that had been retained for quality issues. The USDA inspector’s job responsibilities included inspecting shell eggs at one or more of Quality Egg’s production facilities in Iowa, and the inspector had retained or “red tagged” several thousand dozens of eggs for failing to meet minimum USDA quality grade standards.
Wasmund admitted at his September 2012 plea hearing that he conspired with at least one other person to bribe the inspector, sell restricted eggs with intent to defraud, and introduce misbranded food into interstate commerce with intent to defraud and mislead. Wasmund described how, on or about April 12, 2010, as part of the conspiracy, he authorized the disbursement of $300 in petty cash from Quality Egg knowing the cash was to be used to bribe a USDA inspector. After the bribe was paid, the eggs were released, labeled as meeting minimum USDA quality grade standards, and sold and shipped to customers in several states.
The case was prosecuted by Assistant U.S. Attorney Peter Deegan of the Northern District of Iowa and Trial Attorneys Lisa Hsiao and Christopher Parisi of the Civil Division’s Consumer Protection Branch. They were assisted by Associate Chief Counsel Michael Varrone of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the USDA’s Office of Inspector General and the FBI.
Fighting public corruption is a Department of Justice priority. The public is encouraged to report any known instances of public corruption to the FBI's Public Corruption Tip Line at 844-4PC-TIPS. Information can also be sent via e-mail to [email protected].
Court file information: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-CR-3041.
Follow us on Twitter @USAO_NDIA.
Portales Man Sentenced to Eight Years for Federal Narcotics Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Justin Thomas Shipley, 31, of Portales, N.M., was sentenced today in federal court in Las Cruces, N.M., to eight years in prison for his methamphetamine trafficking and firearms conviction. Shipley will be on supervised release for three years after completing his prison sentence.
Shipley and co-defendant, Brandon William Wood, 36, also of Portales, N.M., were arrested on April 24, 2014, in Otero County, N.M., on a criminal complaint charging them with methamphetamine trafficking charges. They subsequently were indicted on methamphetamine trafficking and firearms charges in a six-count indictment filed on July 16, 2014.
The indictment alleged that in April 2014, in Otero County, Shipley and Wood participated in a conspiracy to distribute large quantities of methamphetamine, and also charged the two men with possession of methamphetamine with intent to distribute. The indictment further charged Wood and Shipley with using and carrying firearms in relation to a drug trafficking crime and Wood with being a felon in possession of firearms and ammunition.
In July 2014, Wood was prohibited from possessing firearms and ammunition because he had been convicted of several felony offenses, including conspiracy to sell controlled substances, manufacturing, sale and possession of controlled substances, conspiracy to cultivate marijuana, and driving while intoxicated.
On Dec. 12, 2014, Shipley pled guilty to a felony information charging him with participation in a methamphetamine trafficking conspiracy, distribution of methamphetamine; and using and carrying a firearm in relation to a drug trafficking crime. In entering his guilty plea, Shipley admitted that beginning on April 18, 2014, he conspired with Wood to sell 80 grams of methamphetamine which was to be distributed in Portales. Shipley admitted that they obtained the methamphetamine in Arizona on April 22, 2014. Shipley and Wood were transporting the drugs from Arizona to Portales on April 24, 2014, when they were arrested at the U.S. Border Patrol Checkpoint near Alamogordo, N.M., after Border Patrol agents found approximately 80 grams of methamphetamine, a shotgun and a handgun in Shipley’s vehicle during a routine vehicle inspection.
On April 1, 2015, Wood also pled guilty to a felony information charging him with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, using and carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm and ammunition. Wood admitted to having a gun and ammunition because he was transporting methamphetamine even though he knew that he was not allowed to possess the firearms and ammunition because he had been convicted of at least four felonies. Wood was sentenced on June 23, 2015, to ten years in federal prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the DEA and the Alamogordo Station of the U.S. Border Patrol. Assistant U.S. Attorney Anna Wright of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Phoenix Man Sentenced to 144 Months in Prison for Defrauding Arizona InvestorsRead the Press Release
PHOENIX – On June 29, 2015, Vernon Smith, 53, of Phoenix, Ariz. was sentenced by U.S. District Judge Susan R. Bolton to 144 months in federal prison on fraud charges and ordered to pay restitution to the victims. Earlier this year, Smith pleaded guilty to committing wire fraud by defrauding six Arizona investors out of approximately $229,000 in a variety of investment scams. When Smith committed these crimes, he was on supervised release in a second federal fraud case prosecuted in Oregon and on probation for a third fraud case prosecuted by the State of Arizona.
“The U.S. Attorney’s Office is committed to protecting the investing public from fraud, particularly from serial financial predators like Vernon Smith. This lengthy sentence should serve as a strong deterrent to others who would defraud the public,” stated United States Attorney John Leonardo. Mr. Leonardo thanked the FBI for their hard work and dedication through the course of the investigation and prosecution. “The number of victims and losses would have increased exponentially if the FBI hadn’t detected the criminal activity and acted quickly to end it,” stated Mr. Leonardo.
From October of 2013 to June of 2014, Smith – then a two-time convicted felon with no legitimate financial education or experience – posed as a wealthy, retired investment banker, residing in a 10,000 square foot Scottsdale home and driving an Aston Martin Vantage. He convinced six Phoenix-area victims to invest in either an African gold-mine venture or foreign bonds, both bogus investments. He used the victims’ money to support his lavish lifestyle and, at times, he used later victims’ money to make payments to earlier victims. Smith ultimately attempted to defraud an FBI undercover operative, and he was indicted and arrested in August of 2014. After serving his 144-month and 7-month federal prison sentences, Smith faces probation revocation proceedings and prison time in state court arising out of a state court conviction for fraud he committed in 2002.
The investigation in this case was conducted by the Phoenix Division of the Federal Bureau of Investigation. The prosecution was handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-01108-PHX
RELEASE NUMBER: 2015-050_Smith
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pennsylvania Man Charged with Robbing the Same Atlantic City, New Jersey, Bank He Robbed in 2010Read the Press Release
CAMDEN, N.J. - A Philadelphia man will appear in federal court today to face charges that while on supervised release, he robbed the same Cape Bank in Atlantic City, New Jersey, that he admitted robbing in 2010, U.S. Attorney Paul J. Fishman announced.
Keith Ney, 54, is charged by complaint with one count of bank robbery. He is currently in state custody on related charges. He will appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to the complaint:
Ney was previously convicted of two counts of bank robbery on Sept. 16, 2011, and later sentenced to a term of 57 months in prison. During his plea hearing, he admitted robbing the Cape Bank at 1501 Pacific Avenue in Atlantic City and the Citizens Bank at 1234 Market Street in Philadelphia in 2010.
On April 23, 2015, Ney, who had recently finished his prison term and was on supervised release, allegedly entered the same Cape Bank in Atlantic City, approached a teller and produced a demand note that read, “I have a gun give money no one will get shot.” Ney, who was not wearing a mask or disguise, was allegedly captured on the bank’s surveillance system.
After taking the cash, Ney fled the bank on foot. A bank employee exited the bank, approached an Atlantic City police officer who was working a traffic detail and told the officer that the bank had just been robbed. Nay was immediately spotted and taken into custody. After being apprehended, Ney allegedly admitted his involvement in the April 23, 2015 Cape Bank robbery.
The bank robbery count with which Ney is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Ney also faces two additional years in prison as a result of violating the terms of his supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Edward W. Hanko in Philadelphia; the Atlantic City Police Department under the direction of Chief Henry White; and the Atlantic County Prosecutor’s Office under the direction of Prosecutor James P. McClain with the investigation leading to the charges.
The charge in the complaint is merely an accusation, and Ney is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Edward F. Borden Jr. Esq., Cherry Hill, New Jersey
Owner of Charlotte-Area Metal & Salvage Business Pleads Guilty to Tax EvasionRead the Press Release
CHARLOTTE, N.C. – The owner of Charlotte-area metal and salvage business pleaded guilty to tax evasion today, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Sammie Marks a/k/a Sammy Marks, 41, of Matthews, N.C., appeared before U.S. Magistrate Judge David Keesler and admitted to concealing from the Internal Revenue Service (IRS) personal earnings derived from his businesses, “Marks Metal & Salvage.”
According to the filed court documents and today’s plea hearing, between tax years 2009 and 2013, Marks deposited checks and cash receipts from his businesses and its customers totaling over $1.1 million into his personal bank account, which he did not include in income reported to IRS. Court records show that, during the relevant time period, Marks failed to disclose or provide records of his bank account and other information about his income to his tax return preparer. Furthermore, court records indicate Marks failed to report the additional income on his individual tax returns filed with the IRS. As a result of the unreported gross receipts, Marks had additional taxable income of $158,614.
Marks pleaded guilty to one count of tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine. As part of today’s plea agreement, Marks has agreed to pay restitution, the amount of which will be determined by the Court at Marks’ sentencing hearing, which has not been scheduled yet. Marks was released on bond following today’s court appearance.
* * *
In a separate case, on Tuesday, June 30, 2015, Jeremy Curtis Anderson, 34, of Charlotte, pleaded guilty to two counts of making a false statement on a loan application. Anderson, who was formerly employed by Wells Fargo Bank as a loan documentation specialist and a consumer loan underwriter, appeared before Judge Keesler and admitted that between 2009 and 2012, he used false information, such as a false security number, false address and false employment information, on loan applications to obtained a car loan and a personal loan from a federally-insured credit union.
Anderson was released on bond following the plea hearing. The maximum penalty for the false statement on a loan application is 30 years in prison and a $1,000,000 fine per count. A sentencing hearing for Anderson has not been set yet.
Acting U.S. Attorney Rose thanked the Internal Revenue Service, Criminal Investigation Division (IRS-CI) under the direction of Special Agent in Charge Thomas J. Holloman, III, Special Agent in Charge, for the investigation of both cases. Ms. Rose also thanked Martin Mulholland, Acting Special Agent in Charge of the U.S. Secret Service in Charlotte, for his agency’s assistance with Anderson’s investigation.
Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution of both cases.
Orange County, Texas Man Guilty of Possessing Child PornographyRead the Press Release
BEAUMONT, Texas – A 28-year-old Orange, Texas man pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jonathan Michael Swearingen pleaded guilty to possession of child pornography today before U.S. Magistrate Judge Zachary J. Hawthorn.
According to information presented in court, on Sep. 4, 2013, federal agents executed a search warrant at Swearingen’s residence in Orange, Texas, after authorities identified a computer Internet Protocol (IP) address belonging to Swearingen, possessing and offering images of child pornography via file sharing programs. A personal computer and digital storage devices were seized during the search. A review of the items revealed approximately 308 images and 25 videos of child pornography. Swearingen was indicted by a federal grand jury on Oct. 1, 2014 and charged with child exploitation violations.
Swearingen faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by Homeland Security Investigations (HSI), the Beaumont Police Department, the West Orange Police Department, and the Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
####
Northwest Indiana Carnival Worker ChargedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a criminal complaint was filed against Brendan Theodore Coetzee, 27, of Johannesburg, South Africa for travel with intent to engage in illicit sexual conduct with a minor.
According to documents filed in the case, Coetzee, a carnival worker, met a female under the age of 14 at a carnival in Wisconsin over this past Memorial Day weekend. Coetzee and the minor maintained some contact thereafter via social media. On June 22, 2015, Coetzee, who was then in Northwest Indiana, arranged for the minor to meet him at a motel in Lansing, Illinois, where he allegedly had sexual intercourse with the minor.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Lansing, Illinois and Munster, Indiana Police Departments. The case is being prosecuted by Assistant United States Attorney Toi D. Houston.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
New Jersey U.S. Attorney’s Office Seeks Forfeiture of Taxidermied Tiger Imported into the United StatesRead the Press Release
NEWARK, N.J. – The New Jersey U.S. Attorney’s Office today announced the filing of a civil asset forfeiture action seeking the forfeiture of a full mount taxidermied female tiger (panthera tigris), which the government alleges was imported into the United States in violation of the Endangered Species Act and without a valid importation permit, U.S. Attorney Paul J. Fishman announced.
The tiger — according to the forfeiture complaint, a captive-bred female, born on Sept. 26, 2000 — was seized at the Port of Newark by wildlife inspectors with the United States Fish and Wildlife Service (“USFWS”) when its owner attempted to import the tiger into the United States as part of a household move from France.
According to the complaint filed in Newark federal court:
Tigers (panthera tigris), the largest wild cat in the world, are carnivorous mammals of prehistoric origin characterized by their coat of reddish-orange fur, which is marked by dark stripes. Trophy hunting (until it was banned), and a market for tiger rugs and coats, threatened tigers’ survival. Today, habitat destruction, human population growth, and a demand for tiger parts threaten their survival. For over 27 years, all species of tigers have been classified as endangered under U.S law and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). This classification represents the most highly protected species of wildlife, and includes those species that are threatened with extinction or whose survival is or may be affected by trade.
The importation or exportation of endangered species (alive or dead) for any purpose — including non-commercial shipment — is authorized only in exceptional circumstances, and requires an export permit from the originating country and an import permit from USFWS, one of the federal agencies responsible for enforcing the Endangered Species Act.
On Nov. 24, 2014, the tiger was included in a cargo shipment of household goods exported from the Port of Le Havre, in France. The shipment arrived in the United States at the Port of Newark on or about Dec. 3, 2014. The customs broker filed the USFWS declaration form required for the international shipment of wildlife to or from the United States and included a CITES certificate issued by the European Union. The CITES certificate, however, permitted the tiger to be transported only within the European Union and specifically stated that it was “not for use outside the European Community.”
Import and export permits for endangered species of wildlife can be obtained only if the CITES Scientific Authority of the importing country has made a determination that trade in this specimen will not be detrimental to the survival of the species and that the imported wildlife will not be used for commercial purposes. In the United States, the agency authorized to grant or deny a certificate authorizing the import of such wildlife is the USFWS’s Division of Management Authority.
The Endangered Species Act authorizes USFWS to seize any specimen that is illegally imported or exported. On Jan. 2, 2015, USFWS formally refused the shipment of the tiger. On Jan. 9, 2015, the USFWS sent notice of the seizure and its intent to forfeit the tiger to its owner, who now resides in New York City. On April 1, 2015, the owner filed a claim with USFWS contesting the forfeiture. The filing of the claim triggered the government’s obligation to either release the property or bring the forfeiture action in court, where the owner may contest it.
Civil forfeiture cases are “in rem” proceedings — or proceedings against things. In this case, the complaint is brought against the taxidermied tiger, not its owner or any other person.
U.S. Attorney Fishman credited the wildlife inspectors of the U.S. Department of the Interior’s Fish and Wildlife Service for initiating the investigation and detention of the tiger at the Port of Newark.
The government is represented by Special Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit and Assistant U.S. Attorney Kathleen P. O’Leary of the office’s Healthcare and Government Fraud Unit in Newark.
Modesto Man Pleads Guilty to Stealing More Than $316,000 of Government Property from the Tracy DLA DepotRead the Press Release
SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, pleaded guilty Tuesday to three counts of theft of government property for taking Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.
Shaffer was an employee at the Department of Defense (DoD) Logistics Agency, San Joaquin Distribution Center, in Tracy, (Tracy DLA Depot). Shaffer regularly came into contact with new goods delivered by venders to the DoD and the United States General Services Administration that were stored at the Tracy DLA Depot before being shipped to military bases in the Pacific Ocean region and elsewhere.
According to court documents, between February 27, 2011, and January 3, 2015, Shaffer sold more than 620 items of stolen government property through approximately 325 auctions on a popular online auction website. He also completed more than 40 private sales of stolen government property to customers who paid Shaffer via an online payment system. Shaffer’s scheme generated approximately $238,000 in illicit revenue. The approximate replacement value of the property exceeds $316,000. Among other items, Shaffer admitted to stealing a GE Video Borescope kit, valued at $10,674; three Cisco TelePresence 8-inch LCD Touch Panels, total value of $4,700; and four Cisco Ethernet switches and a Panasonic Memory Card Drive with a replacement value of $5,000.
This case is the product of an investigation by the General Services Administration, Office of Inspector General; the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and the Department of Defense, Defense Criminal Investigative Service. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Shaffer is scheduled to appear before U.S. District Judge John A. Mendez on October 6, 2015, for sentencing. The maximum statutory penalty for a violation of theft of government property is 10 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Who Robbed Armored Vehicle Guard at Las Vegas Casino Sentenced to 14 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A man who was part of a crew that robbed an armored vehicle security guard outside a Las Vegas casino in December 2009, has been sentenced to 14 years in prison, five years of supervised release, and ordered to pay $36,320 in restitution, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Arquarius Robertson, 31, of Las Vegas, was sentenced on Tuesday, June 30, by U.S. District Judge Jennifer A. Dorsey. Robertson pleaded guilty in March to one count of conspiracy to interfere with commerce by robbery and one count of using and carrying a firearm during and in relation to a crime of violence. Two co-defendants, Williams Morrow and Cortaz Robertson, also pleaded guilty and are scheduled for sentencing in July.
“Congress created strong federal penalties for persons convicted of using a firearm to commit a robbery,” said U.S. Attorney Bogden. “We work with our local law enforcement partners on a regular basis to review these violent crimes, and have made it a top priority to use federal laws to prosecute these violent criminals when possible.”
According to the plea agreement, on Dec. 14, 2009, at about 8:45 a.m., Robertson and his co-conspirators stole approximately $36,320 from an armored security guard who had just exited the Las Vegas casino with money and checks from the casino’s cashier cage and was headed toward an armored vehicle. Robertson, who was brandishing a firearm and was disguised in make-up, a wig, a fake belly, gloves, and sunglasses, approached the security guard and ordered the guard to turn over the money. Another co-conspirator, who was also carrying a firearm and wearing a disguise, arrived on the scene in a stolen getaway vehicle and was behind Robertson as he received the money. Robertson fired a warning shot from his firearm as he got into the getaway vehicle with the co-conspirator and drove off. Other co-conspirators acted as look-outs during the robbery. The conspirators exchanged vehicles at an abandoned house about one-half mile away and met up later to divide up the money.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. The case was prosecuted by Assistant U.S. Attorneys Nicholas D. Dickinson, Cristina D. Silva, and Lisa Cartier-Giroux.
Man Sentenced to 17.5 Years in Prison for Methamphetamine Trafficking on MauiRead the Press Release
HONOLULU – Ruben Settle, 38, was sentenced on June 29 by Chief District Judge Susan Oki Mollway to 210 months imprisonment for his aggravated role in a plan to distribute methamphetamine on the island of Maui. Settle had previously pled guilty on March 12, 2015 to possessing, with intent to distribute 500 grams or more of methamphetamine.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the evidence presented in court showed that Settle recruited other individuals to assist him in distributing methamphetamine on Maui including approximately 700 grams of "ice" seized from Settle by Maui Police on December 17, 2014.
At the sentencing hearing, the court found that Settle, a citizen of Mexico without legal authority to be in the United States, was a threat to the public safety based on the large amount of methamphetamine involved and Settle’s long criminal history including prior drug convictions. After completing his sentence, Settle will be deported to Mexico for the second time.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations and the Maui Police Department. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Luzerne County Woman Sentenced to Three Years in Prison for Conspiracy to Distribute Bath SaltsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tiffany Pradel, age 31, of Dupont, Pennsylvania, was sentenced to 36 months’ imprisonment by United States District Court Judge Malachy E. Mannion for participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Peter Smith, Pradel pleaded guilty in January 2015 to her involvement in the conspiracy which was responsible for distributing large quantities of alpha-pvp, a controlled substance analogue, to others during 2011 through 2013.
Pradel was indicted by a federal grand jury in August 2014, following an investigation by Department of Homeland Security agents, the Pennsylvania State Police, and West Pittston Police.
Judge Mannion also ordered Pradel to serve three years on supervised release following her prison sentence, and to pay a special assessment of $100.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
# # #